Kuwait government backs $104b stimulus package
Major backing expected for infrastructure, oil and gas contracts
The Kuwaiti government has approved a $104 billion (KWD30 billion) support package to help revive the national economy and inject confidence in to the oil and gas, and construction industry.
Government officials have yet to discuss how the new funding will be allocated, but it’s envisaged that much of it will be poured in to much needed infrastructural works – including the expansion and modernisation of the current sewerage network.
The government says the funding, which will be overseen by the Central Bank, will be provided either by guaranteeing the funds or providing long-term credit facilities which can help banks to raise the necessary financing.
The government says the average cost of annual investment in any of its oil and natural gas and infrastructural development projects is around $27m (KWD7.7 million).
Sheikh Ahmad Al-Fahad Al-Sabah, the Deputy Prime Minister for Economic Affairs and State Minister for Housing and for Development, is also expected to release details of how the government will detect and deter financially unsound investors from entering in to deals under the support package.
Sabah is also expected to unveil details of where and how the money will be spent. The Kuwaiti government will then discuss the plans before agreeing on how they will be implemented.
Earlier this week, Kuwait revealed plans to build four nuclear power stations to help cater for the nation's growing power demand. Kuwait is looking to boost revenues from oil exports by selling the barrels it is currently using for the operation of its thermal power plants, which will rise to around 20% of the daily crude production.
Last week, it was reported by CW that demand for water in Kuwait is also running dangerously close to its maximum daily production levels. There are plans afoot to solve the nation's growing annual demand for water.