Kuwait awards PPP deal to build digital telecom network

• Bahrain’s Beyon Group selected
• Expected investment of $2.7bn
• Development of next-generation systems

Kuwait has selected Bahrain’s Beyon Group to develop the country’s fixed telecommunications network through a public-private partnership (PPP).

The project is one of the largest digital infrastructure initiatives in Kuwait, with total investment expected at around KD825 million ($2.7 billion) over the 50-year partnership term, Beyon said in a statement.

The contract was awarded by Kuwait’s communications ministry and the Kuwait Authority for Partnership Projects.

The project includes a comprehensive re-engineering of Kuwait’s national telecommunications network, including the development of next-generation network systems, and the gradual decommissioning of the legacy copper network.

The project will be financed and developed by Beyon and will not impose a financial burden on the state of Kuwait, the statement said.

Minister of state for communication affairs Omar Al Omar said that the investments are aimed at building sustainable and modern digital infrastructure, including cloud computing, artificial intelligence, smart cities and a knowledge-based economy aligned with the 2035 vision.

Mishal Al Zaid, acting undersecretary of the communications ministry, said the project will improve the reliability and capacity of the national network, reduce service disruptions and enable service providers to offer more advanced and efficient digital solutions.

Beyon Group, which trades on the Bahrain stock exchange, was selected following a technical, financial and legal evaluation process that included competition among regional and international specialised companies and consortia.

• Kuwait awards $2.8bn broadband contract to Bahrain’s Beyon
• Kuwait turns to debt markets as Hormuz disruption hits revenue
• Saudi Arabia widens PPP scope to meet infrastructure demands

In January the Kuwait government issued a tender seeking a consultancy to oversee the re-tendering of 23 PPP deals.

Kuwait is seeking to expand private-sector participation as it diversifies its economy away from oil, which accounts for about 90 percent of government revenue and roughly half of GDP.

Bahrain Mumtalakat Holding Company owns 37 percent of Beyon Group.

Its share closed at BHD 0.457 on Friday, down 5 percent so far this year.