KUWAIT CITY, 13 May 2003 — Kuwait is opening its doors to an ambitious multibillion-dollar investment project aimed at transforming Failaka Island into a state-of-the-art tourist attraction.
A government-appointed team presented to potential local and foreign investors yesterday a structural plan to build up the emirate’s most populous island with a five-year build, operate and transfer (BOT) agreement.
“The purpose was also to bring to light the multiple investment opportunities contained in this project, which is considered among the mega projects with attractive and unique investment opportunities,” the team’s statement said.
“The project falls within the context of the state’s interest in a comprehensive development process, and directing this process toward achieving the optimum utilization of Kuwait’s natural characteristics,” it added. It calls for construction of a holiday resort complete with hotels, shops, and restaurants.
Hamed Khajah, Communications Ministry undersecretary and team member, told reporters the project was estimated to cost a minimum of one billion dinars ($3.3 billion, 2.8 billion euros) and that its scale is unprecedented in this small, oil-rich country.
Failaka, the scene of an attack last October when two Kuwaiti gunmen killed a US marine during wargames, lies 20 kilometers (12 miles) east of Kuwait City and is home to Kuwait’s most important archaeological site.
It is 43 square kilometers (27 square miles) in size, boasts 38 kilometers (24 miles) of coastline and is almost completely flat. “We prefer one prime investor who can take over the whole project and have sub-investors,” said Khajah. “Or, we could take a maximum of three investors,” in order for the project to remain financially feasible, he said.
“We have had some response but it’s not up to expectation,” admitted Khajah, adding that the US-led war in Iraq and months of tension in Kuwait beforehand had thwarted progress. An international adviser is currently drafting a “term of reference”, Khajah said.
Team Chairman Jassim Al-Oun however would not reveal a figure for the five-year project’s estimated cost. “It is difficult to evaluate the project. We did not specify a figure so that we keep the door open for investors,” said Oun, a former minister.
Between 2300 BC and 1100 BC, a Bahrain-based maritime trading civilization called the Dilmun dominated the Gulf and had a settlement on Failaka, remains of which can still be seen today. The Greeks arrived in the 4th century BC in the form of a garrison sent by Nearchus, one of Alexander the Great’s admirals, and Failaka became known as Ikaros.
During Iraq’s seven-month occupation of Kuwait from August 1990, the Iraqis turned Failaka into a heavily-fortified base and all Kuwaitis living there moved back to the mainland. Some families have since begun renovating their properties.
After the occupation, the Kuwait government bought up many residences on the island and Kuwaiti armed forces have maintained a major presence there. It is linked by ferries to two man-made harbors and to the capital through four submarine pipelines that provide fresh water and electricity.
