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Kuwait undertaking process amassed tempo in fourth quarter of 2021

KUWAIT: The overall price of undertaking awards in Kuwait surged to KD 556 million (+265 p.c q/q; +279 p.c y/y), in keeping with MEED Tasks. This brings the full price of awards in 2021 to KD 1.5 billion, up 13 p.c on 2020. The determine falls wanting the KD 2.4 billion that used to be forecast previous, a most probably consequence of presidency tendering delays amid cutbacks in capital spending and pandemic-linked provide chain constraints.

The surge in undertaking awards in 4Q21 stemmed from the oil and fuel sectors, whilst, for the 12 months as a complete, the development sector accounted for nearly 50 p.c of all awards, adopted through the oil and fuel sector with 32 p.c. MEED Tasks anticipates process accelerating in 2022, with about KD 3.0 billion price of initiatives set to be awarded.

Mission awards within the development sector amounted to KD 128 million in 4Q21. The majority of awards got here from the Hessah Al-Mubarak-Low Upward thrust Industrial Structures undertaking (KD 42 million) and the KOC-KERP: Soil Remediation undertaking (KD 36 million). In the meantime, general 2021 development sector awards reached KD 705 million, up 89 p.c from 2020. In 2022, a an identical price of development contracts are anticipated to be awarded (KD 723 million). Those come with the CMGS-Building of 4 Websites at Sheikh Jaber Al-Ahmad Al-Sabah Causeway (KD 165 million) and KOC’s Kuwait Excavation, Transportation, and Remediation Mission (KD 150 million), each lately scheduled for 2Q22.

Mission process within the energy and water sectors bogged down once more in 4Q21, with awards falling 5 p.c q/q to KD 45 million. A number of small-scale initiatives had been awarded remaining quarter, together with two of PAHW’s Feeding Major Transformer Stations cables initiatives valued at KD 30 million. Job within the energy and water sectors must, alternatively, pick out up in 2022, with about KD 798 million within the undertaking pipeline. A number of large-scale water initiatives are anticipated within the first part of 2022, together with MPW’s Wastewater Remedy Plant (KD 173 million) and segment 2 of MEW’s Doha Desalination Plant (KD 130 million).

The delivery sector noticed no initiatives awarded in 4Q21. That is the 3rd consecutive quarter of minimum process, following 2Q21’s outturn of handiest KD 5 million. Taking a look forward, a restoration may well be across the nook if the KD 1.1 billion price of transportation initiatives, together with PAHW’s South Sabah Al-Ahmed Township (KD 300 million) and MPW’s Regional South Street (KD 130 million) initiatives are awarded in 1H22.

Oil and fuel sector process recovered in 4Q21, after a number of quarters during which it used to be fairly subdued. Oil and fuel awards got here in at KD 383 million in 4Q21, accounting for just about 70 p.c of all awards within the quarter. This used to be principally KOC’s JPF4 & 5 Off-Plot Works & Manufacturing Amenities (KD 246 million) and 11 Patterns Neatly Hook-Up (KD 123 million) initiatives. In 2022, KD 315 million price of awards may materialize, together with a number of KOC-related oil initiatives (KD 150 million).
Mission process in Kuwait’s chemical sector, which has been fairly quiet since 2011, isn’t anticipated till 2023, when the contract for KIPIC’s Al-Zour Petrochemical Complicated (KD 2.85 billion) is anticipated to be awarded.

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