Identifier
Created
Classification
Origin
06KUWAIT1291
2006-04-12 13:33:00
UNCLASSIFIED
Embassy Kuwait
Cable title:
KUWAIT LAUNCHES NEW OFFSET COMPANY
how-toVZCZCXRO0945 PP RUEHDE DE RUEHKU #1291 1021333 ZNR UUUUU ZZH P 121333Z APR 06 FM AMEMBASSY KUWAIT TO RUEHC/SECSTATE WASHDC PRIORITY 3962 INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
UNCLAS KUWAIT 001291
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: BEXP ECON PGOV KU
SUBJECT: KUWAIT LAUNCHES NEW OFFSET COMPANY
UNCLAS KUWAIT 001291
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: BEXP ECON PGOV KU
SUBJECT: KUWAIT LAUNCHES NEW OFFSET COMPANY
1. On April 11, the Kuwait Investment Authority (KIA)
announced the establishment of the National Offset Company to
manage and implement the GOK's recently re-established offset
program. The company's establishment had previosly been
scheduled for January 2006 but was delayed pending
registration by the Commerce Ministry. (Note: The previous
offset regime was suspended in August 2004 pending a a review
of the program in cooperation with the World Bank. End
note.) The new company is responsible for all aspects of the
offset program, including evaluating project proposals,
applying penalties to companies not in compliance, specifing
and marketing projects that would meet offset requirements,
and issuing certificates indicating that offset obligations
have been either fulfilled or violated.
2. Offset obligations will be in force for military
contracts worth more than $10 million, and civilian contracts
valued above $34 million. Oil and gas exploration and
production contracts are excluded from the program.
Education, health services, and basic industries projects
will receive the highest multiplier (3.5),followed by
communications and transport contracts (2.8). The lowest
multiplier (1.0) will apply to real estate, hotel
construction, and sport/leisure projects.
********************************************
For more Embassy Kuwait reporting, see:
http://www.state.sgov.gov/p/nea/kuwait/cables
Or Visit Embassy Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************
TUELLER
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: BEXP ECON PGOV KU
SUBJECT: KUWAIT LAUNCHES NEW OFFSET COMPANY
1. On April 11, the Kuwait Investment Authority (KIA)
announced the establishment of the National Offset Company to
manage and implement the GOK's recently re-established offset
program. The company's establishment had previosly been
scheduled for January 2006 but was delayed pending
registration by the Commerce Ministry. (Note: The previous
offset regime was suspended in August 2004 pending a a review
of the program in cooperation with the World Bank. End
note.) The new company is responsible for all aspects of the
offset program, including evaluating project proposals,
applying penalties to companies not in compliance, specifing
and marketing projects that would meet offset requirements,
and issuing certificates indicating that offset obligations
have been either fulfilled or violated.
2. Offset obligations will be in force for military
contracts worth more than $10 million, and civilian contracts
valued above $34 million. Oil and gas exploration and
production contracts are excluded from the program.
Education, health services, and basic industries projects
will receive the highest multiplier (3.5),followed by
communications and transport contracts (2.8). The lowest
multiplier (1.0) will apply to real estate, hotel
construction, and sport/leisure projects.
********************************************
For more Embassy Kuwait reporting, see:
http://www.state.sgov.gov/p/nea/kuwait/cables
Or Visit Embassy Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************
TUELLER