Kuwait Projects to Press Ahead Following PPP Law Publication
Type
E-journal
Date
8 Jan 2015
Jurisdiction
Kuwait
Taxonomy
General Commercial Law, Companies & Corporate Bodies
Copyright
LexisNexis
Relevant company
Latham & Watkins LLP
Legal reference
Kuwait Law No. 116/2014, Kuwait Law No. 7/2008
Analysis
The financial close of the 1500 MW and 105 MIGD Az Zour North independent water and power project (IWPP) in January 2014 served as the trailblazer for the start of the public-private partnership (PPP) programme in Kuwait, representing the first project under the new PPP Law. The development of the Kuwaiti PPP projects market hinges on the publication of the executive regulations to the new PPP law which was published in August 2014. The Director General of the Partnerships Technical Bureau (PTB) suggested that the executive regulations are substantially complete and on schedule for publication in early 2015.
Executive Regulations Target 2015 Launch
The new PPP law provides that the executive regulations should be published within six months of the new PPP law, which suggests a long-stop date of sometime in February 2015. According to Kuwait's National Assembly Financial and Economic Affairs Committee, given Kuwait's need for mega-financing and advanced technology transfer, all new projects are intended to be implemented pursuant to the new law.
Five Considerations of Kuwait's New PPP Law
Project developers and lenders should be aware that Kuwait's new PPP law impacts: