Kuwait, Learn From UAE Power Plans

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Since the abysmal summer water and electricity crisis we keep hearing of Ministry of Energy tenders, rejected bids, companies withdrawing from the tender, disorganization, corruption within the Ministry and so forth.

Forget the Tender Committee, forget the Ministry of Energy, forget the local agents and representatives, forget the bureaucracy and corruption. We need the government of Kuwait to follow what Dubai is doing concerning upgrading its power needs and we need the government of Kuwait to hire the best people and make the deal.

We need leadership now. Not committees, discussion and kick-backs.


shuweihat.jpg

Shuweihat Power Plant - Abu Dhabi, UAE.

From the Reuters report:

International companies which have pre-qualified to bid for one of the largest independent water and power projects in the United Arab Emirates have nominated their contractors for the plan, a magazine reported. Abu Dhabi, the largest emirate in the UAE federation, which is building the $3 billion project known as Fujairah 2, pre-qualified at least 20 international developers in November for the bids which are due on March 29. "All the prospective developer bidders have now nominated their contractors for the 2,000 megawatt power island and 130 million gallons per day desalination plant, although several have still to confirm their bank groups," the Middle East Economic Digest (MEED) reported in its latest edition. MEED said Belgium's Suez Energy International had nominated Germany's Siemens and Italy's Fisia Italimpianti as its nominated contractors. Singapore's SembCorp had selected GE Energy of the Unites States and South Korea's Doosan Heavy Industries & Construction. The developer group of Dubai-based AES Oasis and Japan's Sumitomo Corp had nominated South Korea's Hyundai Heavy Industries Co and Japan's Hitachi Zosen Corporation. The team of Britain's International Power and Japan's Marubeni Corporation had picked Paris-based Alstom Power and France's Sidem.
Compare the above Reuters report with the following KUNA article:

The Cabinet assigned Ministry of Finance and the Ministry of Energy on Sunday to take necessary measures for building new electrical power plants to cover the country's demand.

In their regular weekly meeting presided by His Highness the Prime Minister Sheikh Nasser Al-Mohammad Al-Ahmad Al-Sabah, ministers reviewed a report prepared by the ministerial economic committee on the country's demand for electricity in the summers of 2007 and 2008 and necessary precautions and emergency procedures that needed to be taken in this regard.

They also reviewed steps taken for implementing these recommendations as well as how to overcome obstacles that were faced during the process.

I would like you to note the words in the article: reviewed, assigned, committee, necessary precautions etc. Not exactly assertive words are they?

It's January 2007 now. There are three Months left before the expected Kuwaiti heatwave hits us. Now whose opinion would you respect? The Tender Committee? The Kuwaiti Cabinet? The Ministry of Energy? They'd pick the cheapest tender and overall worse deal for the country.

I'll take the opinion of Britain's International Power or Suez Energy International or the other specialized entities in determining what is the best, most effective technology to suit our power needs, not some Kuwaiti biased entity with an eye on some 'pay off' down the road (don't tell me I'm overtly negative or exaggerating; after all, according to the Kuwait Audit Bureau, we just lost track of One Billion Kuwaiti Dinars in oil revenue, but that's another story).

HH The Prime Minister - based on what I hear and on my gut feeling (and I do trust my instincts) - is a reformer; the man wants to make a positive difference, but the problem here is the system: our antiquated, bureaucratic, slow as molasses, corrupt, gridlocked cobweb of civil affairs hell.

The UAE almost always picks the best and rarely cut corners. They do the research. They bring in the expertise. They make the decision. They then build it. And most of all, they maintain it. I respect that. Kuwait is too busy attending insipid Arab and Third World conferences concerning the Environment, IT, Water and Power etc, signing memorandums of understanding that will never benefit us: the blind leading the blind, indeed.

7 Comments

Marubeni - I am impressed. They are not going for the lowest bidder, they are going for RESULTS.

Brave post, my friend, and a forthright analysis of the paralysis we are seeing here. We know it can be broken, but how? It will take men of great courage and persistence to slog through the slough of bureaucracy and get the government MOVING.

Good post and I agree about the dysfunctional method Kuwait has for planning and upgrading.
infrastructure and development projects.

Let us hope the powers that be are aware of them as well.

Keep writing man, maybe someone up there will get the message :)

The difference between Kuwait and the Emirates (in terms of planning) is a lack of Parliament. or at least a Parliament that is more concerned getting the most welfare from the State now, instead of looking to a future beyond the next session. A benevolent dictatorship will always "produce" more that a small-minded Parliament.

Why is this?

We have as much if not more funds/GDP than the Emirates (i.e. Abu Dhabi), we are supposed to be more financially sophisticated that our GCC cousins. We have had a longer history of education. Is the answer just simply; ignorant greed? aahhhh.

Sorry for the rant again.

Great post. The side by side comparison of Emirates' fact filled press release versus Kuwait's "we havn't got clue what we are going to do" press release is priceless.

Thanks friends.

I realize the Parliament has been confrontational when it came to infrastructure projects or upgrading our oil sector (i.e. Project Kuwait) but even while the Parliament had been suspended for the years (1986-90) and replaced by a National Council (controlled by the govt) it still failed to institute or herald any developmental projects.

I think Leaders should lead. They need to push legislation if there isn't any already on the table. People need a vision.

For example, what our late Emir Sheik Jaber did during the late 90s when he sent over 70 decrees to Parliament - direct investment laws, privatization, the right of women to vote and run for elections etc - was a bold step in the right direction.


What we need is SOLAR POWER.
Kuwait is a desert country... PLENTY of sun to go around.
Why not take advantage of it?
Yes, it might be expensive, but on the long run, we wont have to pay the electricity bills..
Plus, no more pollution, and this is the main reason of y we need solar panels.
THE EARTH IS DYING.

we need e- mail address of ministry of planning state of kuwait for incoming the tender power plant projects in KUWAIT.

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This page contains a single entry by Hilaliya published on January 15, 2007 2:51 PM.

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