Kuwait to create postal services company with EY help
OPEC producer Kuwait intends to hire the UK's EY consultancy firm to help in the establishment of its first postal services company, the official gazette reports.
The Communications Ministry has formally asked the Gulf state's Central Agency for Public Tenders (CAPT) to contract with EY (formerly known as Ernst & Young) to chalk out a study on the project and pre-qualify bidders.
The gazette reported that the 'Kuwait Post Company' could be created as a state enterprise or a joint venture between the public and private sectors.
The Arabic language daily Al-Anba said a cabinet decision is needed for CAPT to finalise a contract with the UK firm to undertake that project.
'According to the plan by the Communications Ministry, EY will conduct a study on the project to create the Kuwait Post Company...the contract will include updating a preliminary study prepared in 2013,' the report said.
'It will also include pre-qualification of companies and consortia for the project and undertaking procedures for tendering the project and then awarding it,' it added.
Kuwait, one of the wealthiest Middle Eatern nations, does not currently have an autonomous post company as postal services are run by the Communications Ministry.
In late 2023, the cabinet approved plans for an autonomous post company to be under the Ministry's authority and which could later float shares to the public.
The Ministry's Undersecretary Ahmed Al-Mogren said after the cabinet decision that the new company could initially be a Kuwaiti public shareholding company with a capital of 50 million Kuwaiti dinars ($165 million).
"It will enjoy an independent legal status. It will be managed on a commercial and investment basis and supervised by the relevant minister…" he said.
(Writing by Nadim Kawach; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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