Decree allows local and foreign private firms to build power plants

By B Izzak

KUWAIT: Rapporteur of the National Assembly budgets committee MP Osama Al-Zaid said on Sunday that the state budget for the fiscal year 2022/2023, which ended on March 31, posted a surplus of KD 6.5 billion, the first windfall since the2014/2015 fiscal year. The lawmaker said the final accounts of the fiscal year show revenues were KD 28.8 billion, while spending was at KD 22.3 billion. Most of the revenues came from oil income, as oil prices averaged $97 a barrel throughout the fiscal year.

Non-oil revenuesstood at KD 2.1 billion, just 7.3 percent of total public revenues, while oilincome was KD 26.7 billion or 92.7 percent of revenues. The outcome showsKuwait needs more efforts to diversify its sources of income away from oil.Kuwait had last posted a surplus of KD 2.7 billion in the 2014/2015 fiscalyear, after which oil prices crashed. MP Zaid said wages accounted for KD 12.9billion of spending, while subsidies were KD 4.9 billion.

Meanwhile, MPAbdulwahab Al-Essa said on Sunday that an Amiri decree was published in theofficial gazette allowing local and foreign private firms to build power plantsfor the first time. All existing power plants in Kuwait were built at theexpense of the government through multibillion-dollar contracts with foreignfirms. Based on the decree, the government will purchase the producedelectricity for use by consumers.

Essa said that he had drawn the attention of the government four months ago that it was difficult for the government to build power plants to meet rising demand and the only solution was to allow private firms to build the plants. Essa recalled that based on official statistics, power shortage in Kuwait is expected to reach1,600 MW by 2025. The country is already experiencing a shortage and is compensating it through the Gulf power grid.