Middle East

Kuwait’s project activity accelerated in the fourth quarter of 2021

Kuwait: According to MEED Projects, the total amount of project awards in Kuwait has skyrocketed to 556 million KD (+ 265% q / q; + 279% y / y). As a result, the total amount of the 2021 awards will increase by 13% compared to 2020 to 1.5 billion KD. This figure is below the previously predicted 2.4 billion KD. This may be the result of reduced capital investment and government bid delays related to pandemics. Supply chain constraints.

The surge in project awards in the fourth quarter of 2009 was due to the oil and gas category, but overall, the construction category accounted for almost 50% of all awards, followed by the oil and gas category with 32%. rice field. MEED Projects expects its activities to accelerate in 2022 and will be awarded projects worth approximately 3 billion KD.

The project award in the construction category reached 128 million KD in the fourth quarter of 2009. Most of the awards came from the Hessah Al-Mubarak-Low Rise Commercial Buildings project (42 million KD) and the KOC-KERP: Soil Remediation project (36 million KD). Meanwhile, the total prize money of the construction sector in 2021 reached 705 million won, an increase of 89% from 2020. In 2022, a similar construction contract amount (723 million won) will be awarded. These include the development of four sites at CMGS-Shake Javert Al Ahmad Al Saba Causeway (165 million KD) and KOC’s Kuwait excavation, transportation and restoration project (150 million KD), whichever Is currently scheduled for 2Q22.

Project activity in the electricity and water sector slowed again in the fourth quarter of 2009, with prizes down 5% q / q to 45 million KD. Several small projects were awarded in the previous quarter. This includes two of PAHW’s Feeder Transformer Station Cable Projects worth 30 million KD. However, activity in the electricity and water sector will recover in 2022 and the project pipeline should include approximately 798 million KD. Several major water projects are expected in the first half of 2022, including MPW’s wastewater treatment plant (173 million KD) and MEW’s Doha desalination plant Phase 2 (130 million KD). ..

In the transportation sector, the project was not awarded in the fourth quarter of 2009. This is the third consecutive quarter of minimal activity, following the result of only 5 million KD in 2Q21. In the future, it will recover if 1.1 billion KD worth of transportation projects, including PAHW’s South Sabaal Ahmed Township (300 million KD) and MPW’s Regional South Road (130 million KD) projects, are awarded in the first half of the year. May be imminent.

Activity in the oil and gas sector recovered in the fourth quarter of 2009, after a few relatively restrained quarters. Oil and gas awards were 383 million won in the fourth quarter of 2009, accounting for nearly 70% of all awards this quarter. This was primarily KOC’s JPF4 and 5 off-plot work and production facilities (246 million KD) and 11 pattern well hookup (123 million KD) projects. In 2022, there is a possibility that awards worth 315 million won will be realized, including several KOC-related oil projects (150 million won).
Project activity in Kuwait’s chemistry sector, which has been relatively quiet since 2011, is not expected until 2023, when KIPIC’s Al-Zour Petrochemical Complex (2.85 billion KD) contract is expected to be signed.

https://www.kuwaittimes.com/kuwait-project-activity-gathered-pace-in-fourth-quarter-of-2021/ Kuwait’s project activity accelerated in the fourth quarter of 2021

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