Kuwait City, Asharq Al-Awsat—Kuwait’s National Assembly has passed a key law to bolster partnership between public and private sectors.
The new bill is an amendment of the 2008 Build, Operate and Transfer (B.O.T) law which aimed at attracting foreign investment.
The bill was passed with 28 MPs voting in favor, 18 against and two abstained from voting.
The assembly called the new law to be more comprehensive and flexible, according to Chairman of the Financial and Economic Affairs Committee Faisal Al-Shayeh.
According to Shayeh, the new law requires the attachment of a technical body tasked to study the development projects to the public body affiliated with the Ministry of Finance.
The technical body will be tasked with the establishment of companies, preparation of legal drafts of partnership contracts and terms of reference, laying down a mechanism to present projects, evaluation and floating of tenders.
Shayeh suggested that—given their need for huge financing and advanced technological expertise—infrastructure be included in the projects to be carried out by the PPP law.
The revised law will exempt investors from the value of land and will only require them to pay for the usage of land throughout the duration of contract.
The PPP law extends the period for using state properties from 40 to 50 years.