11 Feb

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CR IP TI ON BS SU

TUESDAY, FEBRUARY 11, 2014

Kuwait hosts international meeting on IT audit

Australian trafficker Corby released from prison in Bali

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RABI ALTHANI 11, 1435 AH

‘Power of Life’ at Boushahri Art Gallery

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www.kuwaittimes.net

World warms to Sochi through Lipnitskaya’s elegance

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Kuwait awards $12bn clean fuels project JGC Corp, Fluor and Petrofec bids approved conspiracy theories

Call it a fair deal

By Badrya Darwish

badrya_d@kuwaittimes.net

A

s the nation demands more, the government has woken up to a new system. I love it guys. It could not be more cynical. If we demand something, the government finds a way to buy it for us and to silence us. Instead of serving as a government, they turn into a shopping mall. The latest suggestion that was leaked to the media is that the government is studying an idea to face the demands by parliament to raise the children’s allowance. Currently the allowance is KD 50 per child. Parliamentarians are demanding that it should be at least KD 75 or KD 100. Of course the government’s brilliant and shrewd consultants immediately solved the problem - give them diapers and baby milk. That should settle the problem. Like this those who are just producing kids for the sake of collecting KD 50 or KD 75 or KD100 will get baby milk and diapers. Of course they can sell it later at the traffic lights at a cheaper price with bedoon kid vendors. The nation demands that the KD 70,000 house allowance is insufficient to buy a house. This, in all honesty is not enough. In India you can buy a beautiful house by the lake. In Nepal you can get a castle for a fraction of this amount. In the Middle East and nighbouring countries, you can also buy a decent house with that amount. My dear friends, in Kuwait with KD 70,000 you cannot even build a kitchen. The land alone, and I have said this a hundred times, will cost at least KD 400,000 unless you opt to live on the border near Khafji. You might get if lucky if you find a plot of 300 sq m for KD 100,000. So the government decides to solve the problem by giving KD 30,000 worth of cement and building materials. Do not forget who will be the lucky one who will win the tender to provide these materials. Same is the story with the baby milk and diapers. Which importer will get the tender? Thank God, women are not asking for a raise otherwise the suggestion will be the provision of free tampons and foundation creams for your makeup. The more the nation demands from now on, it will be a trade deal. I think the next thing for the government is to turn into a big shopping mall that will compete with the Avenues. God bless the nation. Have a happy Hala February!

KUWAIT: Kuwait National Petroleum Co said yesterday it has awarded a $12-billion project to British, US and Japanese-led consortia to boost capacity at oil refineries and make production more environmentally friendly. Work on the three-part project for KNPC to upgrade refineries while reducing sulphur and carbon pollutants is expected to start in April and be completed in five years. The Mina Abdullah I project was awarded to a consortium led by Britain’s Petrofac at $3.8 billion, Mina Abdullah II to US Fluor-led consortium for $3.4 billion, while Mina Al-Ahmadi went to Japan’s JGC Corp-led consortium for $4.8 billion, KNPC spokesman Khaled Al-Assousi told AFP. Assousi said he expected the contracts to be signed within the next six weeks and work to commence in April. The current production capacity of the two refineries of Mina Al-Ahmadi and Mina Abdullah is around 730,000 barrels per day, while the capacity of Kuwait’s third refinery at Shuaiba is 200,000 bpd. At the end of the projects, the capacity of the two refineries will be raised to 800,000 bpd, while Kuwait plans to shut the third refinery. Kuwait awarded Foster Wheeler with the management and service contract for the clean fuels project in Dec 2012 in a deal worth around $500 million. Kuwait is soon also expected to award contracts for the stateof-the-art Al-Zour refinery with a capacity of 615,000 bpd expected to come onstream after five years. Kuwait’s refining capacity will reach over 1.4 million bpd from the existing capacity of 930,000 bpd, when all the projects are completed. The plans have been repeatedly delayed because of political disputes between parliament and the government. The project to build a new refinery was scrapped by the government around five years ago, months after five Japanese and South Korean companies were KUWAIT: The Kuwait Petroleum Corporation building is lit up in national colours yesterday. — KUNA awarded contracts. MPs had opposed the plan complaining of a (See Page 3) lack of transparency in the tendering process. —- Agencies

Gulf security pact blasted By B Izzak and A Saleh KUWAIT: The controversial Gulf security pact came under fire yesterday from lawmakers and politicians who insisted the pact breaches the Kuwaiti constitution and called on the National Assembly to reject. The pact was signed by the interior ministers of the six-nation Gulf Cooperation Council (GCC) states in Saudi Arabia over a year ago but Kuwait’s parliament must ratify it to become effective. The Assembly’s foreign relations committee held a meeting last week with the foreign, interior and justice ministers to debate the pact which has so far remained confidential. The charge against the agreement was led by opposition leader and former MP Musallam AlBarrak, who asserted that the pact violates the Kuwaiti constitution which guarantees freedoms. Barrak called on political movements in the country to unite in rejecting the pact and strongly blasted Assembly Speaker Marzouq Al-Ghanem for saying that the pact cannot violate the constitution. The former lawmaker said that the pact requires member states to extradite people, especially expatriates, after any member state accuses them of committing crimes even before the accusations are proven. Ghanem said after last week’s meeting that article Continued on Page 13

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Yemen to become 6-region federation

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UAE to use drones for govt services

Govt faces hard sell as it eyes subsidy cut KUWAIT: Policymakers face the uphill challenge of convincing citizens that despite hefty oil revenues, one of the world’s richest countries per capita needs to reduce spending to avoid a potential damaging budget deficit later this decade. Long a topic of debate, the task has now fallen to new Finance Minister Anas Al-Saleh, who said shortly after his appointment in January that a plan to review the lavish subsidy system should be ready later this year. Thanks to subsidies, it costs as little as KD 5.2 ($18.40) to fill an 80-litre petrol tank. Electricity costs just 2 fils (less than 1 US cent) per kilowatt hour, a fraction of what it costs to produce. Economists say such cheap prices, available to Kuwaitis and foreigners alike, encourage waste. Building managers complain of people leaving their air conditioning on while they are on holiday so that their home is cool when they return. But any marked reduction in subsidies could erode stability since

Max 18º Min 5º High Tide 11:01 & 20:55 Low Tide 04:37 & 15:25

Kuwaitis have a recent history of street protests and industrial action to voice dissatisfaction with the government. “There will be a revolt in Kuwait,” said Abdullah Al-Shayji, political science faculty chief at Kuwait University. “Kuwaitis will cope with anything, but don’t come too close to their wallets and chequebooks. They will really put up a big fight.” In 2012 thousands of Kuwaitis marched against changes to voting rules and voiced anger about slow economic development. Public sector workers went on strike the same year over pay. In a sign of how sensitive the subsidy subject is, Saleh has been on the defensive since announcing his plan, stressing that it will not hurt Kuwaitis with low and middle incomes. “ The government’s behaviour is very provocative for Kuwaitis because they don’t believe it,” said Shayji. “You shouldn’t be touching this with a 10-foot pole at this stage, this is something that Continued on Page 13


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11 Feb by Kuwait Times - Issuu