Kuwait PPP Transport Projects

Project Manager: Eng.Fatima AL-Kandari

• Kuwait National Rail Road (KNRR)

• Kuwait Metropolitan Rapid Transit

System(KMRT)

هيئة مشروعات الشراكة بين القطاعين العام والخاص

Kuwait Authority for Partnership Projects

MEED Rail Conference

• PPP Law

• KNRR Project

• KMRT Project

Contents

• Identify potential developmental projects that can be implemented by establishing a partnership between both the relevant public entity and interested parties from the private sector in accordance with the provisions of Law No. 116 of 2014 to regulating all Public Private Partnerships (PPP) projects in the State of Kuwait.

Role of Kuwait Authority for Partnership Projects

• A project to implement an activity through which the state targets to provide a public service of economic , social or service importance or to improve an existing public service or to develop , reduce the costs or increase the efficiency of any such service , procured by the authority in cooperation with the public entity and in accordance with the PPP Model after the approval of the Higher Committee.

The Public Private Partnership Project

New PPP Law (Law # 116 of 2014)

• Under the New PPP Law, Kuwait Authority for Partnership

Projects (KAPP) has replaced the Partnerships Technical Bureau (PTB). • KAPP will establish public joint stock companies for the performance of PPP projects which have a cost over 250 MKD such as KNRR and KMRT projects. • KAPP's Roles include: assessing feasibility studies for PPP projects; developing contract templates; drafting RFPs and PPP agreements; submitting recommendations to the PPP Higher Committee; following up on the implementation of PPP projects; and preparing a new guidebook for PPP projects.

New PPP Law (Law # 116 of 2014)

• The new Kuwait public-private partnership (PPP) law, Law No. 116 of 2014 came into force and effect in March 2015. •The Higher Committee for the PPP projects is the main decision-making body responsible for PPP projects undertaking the powers and functions of the Authority board of directors.

Kuwait National Rail Road

Project (KNRR)

www.ptb.gov.kw

KNRR- Objectives

The KNRR will be developed to the highest industry standards and shall

provide:

• A fast, reliable and safe alternative mode of transportation for freight and passenger services between Kuwait and neighboring countries

• A connection to the Cooperation Council for the Arab States of the Gulf (“GCC”) planned regional rail networks

• A connection between Kuwait City and planned industrial developments and towns

• An intermodal connection to the Kuwait's seaports and airport

KNRR Network •The KNRR network shall measure approximately 574 km

•It shall cross the entire State of Kuwait, from North-to-South and East-to-West and provide connectivity with the GCC Rail network

•The KNRR will cater for both freight and passenger transport needs

•It is composed of a 317 km mainline that will serve the short- to medium-term needs and 257 km of secondary lines that will serve the long-term needs of Kuwait

Technical Profile of the Project

KNRR Network The Mainline of the KNRR network will measure

approximately 317 km, divided between two phases:

• Phase 1 will connect Nuwaiseb (on the border with Saudi Arabia) to the Freight Depot, with a branch to the Passenger Station where KNRR will interface with KMRT.

• Phase 2 will extend the network from the Freight Depot to Umm Qasr (on the border with Iraq), with a branch to the Boubyan Port.

KNRR Network

KNRR Network

KNRR Network

KNRR Network

Summary of the Network

KNRR Network

Preferred Packaging Structure The KNRR project procurement comprised four (4) PPP contract packages:

• Package 1: civil infrastructure for GCC component which will be implemented in a design-build-finance-major maintenance (DBFMM) 30-years

• Package 2: civil infrastructure for Boubyan Port component which will be implemented in a design-build-finance-major maintenance (DBFMM) 30-years

• Package 3: systems and track for the whole network which will be implemented in a design-build-finance-operate-maintain (DBFOM) 30-years

• Package 4: passenger station which will be implemented in a design-build-finance-maintain (DBFM) 30-years

KNRR Network

Preferred Packaging Structure

Infrastructure DBFMM

Package 1 Mainline: GCC Component

Infrastructure DBFMM

Package 2 Mainline: Boubyan Component

Infrastructure DBFM

Package 4 Passenger station

Infrastructure Contracts

Package n Other

Passenger Train Service

Pax Operator

Transport Authority Supported by Program

Management Consultant(PMC)

Lease/Purchase Contract

Pax R/S Provider

Freight Train Service License(s)

Freight Operator(s)

Lease/Purchase Contract

Freight R/S Provider

Systems and Track DBFOM

Package 3 Mainline: GCC & Boubyan Port

Payment

Access Charges

Payment

Access Charges

Availability Payments

License Fees

Support Payment

Availability Payments

Project Guidebook

Inception

Recruitment of

Transaction Advisor

Update Feasibility Study

• Needs Analysis

• Options Analysis

• Financial Assessment

•Alignments approved

Procurement Phase

• EOI

• RFQ

• RFP

• Bidding/Evaluation

• Contract Signing

• Financial Closure

Implementation &

Monitoring

• Delivery of Service

• Performance Monitoring

Handover

to Public

Entity

KNRR-Life Cycle

Agenda

•Feasibility Study is being reviewed and updated.

•Transaction Advisor:EY/Trowers&Hamlins/Arup.

•Procurement to start by Q1 2016

Current Status

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Kuwait Metropolitan Rapid

Transit System (KMRT)

Agenda Technical profile of the Project

• Integrated network - unified fleet and

limited passenger interchange

• 160 km total length

• 16% underground

• 68 stations total with 9 stations in Kuwait

City

• Station spacing determined by population

density and travel times

• 90 kph operation speed, 100 kph

maximum speed – driverless trains

• 24 tph is the currently envisaged

maximum frequency for the central core

• District cooling system to be developed

Agenda

•Feasibility Study is being reviewed and updated.

•Transaction Advisor:EY/Trowers&Hamlins/Arup.

•Procurement to start by Q1 2016

Full Metro Network

Agenda Proposed phasing

Phase Description Length (KM) No. of stations

Phase 1 Salmiya to Kuwait University and Airport Branch 50 28

Phase 2 Messila Beach and UN Roundabout Branches 20 7

Phase 3 Cross City Line 10 9

Phase 4 Central Line 20 10

Phase 5 Jahra West and Al-Khout Extensions 60 15

Total 160 69

Agenda Preferred Packaging Structure

Transport Authority

Agenda

•Feasibility Study is being updated

•Transaction Advisor: EY/Ashurst/Arup

•Procurement to start by Q1 2016

Current Status

Thank You

www.ptb.gov.kw

Kuwait Authority for

Partnership Projects