KUWAIT May 26 Kuwaiti lawmakers have called for
the scrapping of a contract to build a gas-fired power and
seawater treatment plant, a newspaper said, putting pressure on
an important project in the Gulf state's development plan.
Lawmakers and the government have often clashed over the
awarding of large infrastructure contracts, and political
infighting has held up investment and economic reforms in the
major oil producer.
In January the government signed a deal with a consortium
led by France's GDF-Suez, and including Sumitomo Corp
of Japan, to build the 1,500 megawatt Az Zour plant -
part of plans to diversify the oil-reliant economy.
Some lawmakers criticised the tender process as not being
A parliamentary investigation commission recommended the
contract be scrapped, al-Rai newspaper reported on Sunday on its
website without giving details.
Al-Rai said the panel, however, had no objections to another
project - a $2.6 billion causeway which is set to be built by
South Korea's Hyundai Engineering and Construction Co
according to a contract signed in November.
A more stable political climate in Kuwait since the start of
the year raised hopes that delayed projects in a 30 billion
dinar ($108 billion) economic development plan announced in late
2010 may now go ahead.
In recent weeks however tensions have escalated between
elected lawmakers and the government, which is picked by a prime
minister selected by the ruling emir.
The development plan, which also includes building a new
airport terminal and hospitals, is aimed at creating jobs
outside of the oil sector and attracting foreign investment.