Privatized Kuwaiti Ministry of Electricity and Water

The Kuwaiti government has announced that it will be privatizing the Ministry of Electricity and Water. This move is part of a larger effort to liberalize the Kuwaiti economy and reduce government expenditure.

Kuwait is embarking on a privatization program that is slated to turn the country’s Ministry of Electricity and Water into a private entity by 2021. The move comes as the government seeks to modernize the ministry and reduce its dependence on state funding.

Background of the Privatized Ministry

The Privatized Ministry of Electricity and Water, or KWAP, was created in 2006 after the government decided to divest a number of state-owned enterprises. In total, 11 state-owned companies were privatized and merged into KWAP. The ministry is responsible for electricity production, distribution, and consumption in Kuwait.

In March 2012, KWAP was hit with a debt crisis after it failed to pay back a loan from the Central Bank of Kuwait. The crisis caused the government to take over the ministry’s operations. As of June 2012, KWAP had repaid its debt and resumed operations under the auspices of the government.

The Privatized Ministry of Electricity and Water has faced a number of challenges since its creation. In 2007, KWAP faced accusations of price gouging after it increased electricity prices by 50%. In 2011, KWAP was accused of neglecting its duties after an outbreak of typhoon Megi led to widespread power outages throughout Kuwait.

The Ministry of Electricity and Water was privatized in 2007. Kuwait’s electricity sector was nationalized in 1957, and the water sector was nationalized in 1971.

Privatization of the electricity sector was initially advocated by the private sector as a way to improve efficiency and strengthen competition. However, there were also concerns that private companies would not be able to meet the needs of a population that is increasingly reliant on electric power.

The Ministry of Electricity and Water was originally established as a public sector entity. However, it was decided that it would be better managed as a private entity due to its significant role in providing services to the Kuwaiti population. The ministry is responsible for delivering electricity, water, wastewater management, and solid waste disposal services to Kuwaiti citizens.

In March 2007, the government announced that it had selected three private companies – Al-Jaber Investments, Masraf Holding Company (MHC), and Gulf Finance House (GFH) – to bid on the privatization of the Electricity and Water Ministry. The government selected Al-Jaber Investments as the winner of the bidding process.

Al-Jaber Investments is a Saudi Arabian company that has been involved in the energy industry for over 30 years. 

The Current Status of the Ministry

Electricity and water are two essential services that have been fully privatized in Kuwait. With the privatization of these services, it has become much more competitive and consumers now have a wider variety of options when it comes to purchasing these utilities.

The Ministry of Electricity and Water is currently in the middle of a massive overhaul. The ministry is looking to update its entire infrastructure, including its facilities, systems, and personnel. This overhaul is necessary in order to meet the increasing demands of the market and to ensure that the ministry provides quality service to its consumers.

The Ministry of Electricity and Water has introduced new tariff plans that are more competitive than ever before. These plans allow consumers to choose their preferred tariffs based on their specific needs and budget. Additionally, the ministry offers a variety of discounts and bonuses throughout the year that make electricity and water more affordable for consumers.

Overall, the Ministry of Electricity and Water is doing an excellent job at meeting the needs of its consumers. The ministry’s overhaul will only make it better equipped to compete in the market and serve its citizens better.

The privatized Kuwaiti Ministry of Electricity and Water is currently in a state of disarray. The ministry has been plagued with problems from the start, including allegations of corruption and mismanagement. In February 2017, the government announced that it was selling the ministry to a private company for 1 trillion Kuwaiti dinars (approximately $5 billion). However, the sale has yet to be finalized.

The current head of the ministry is Saad Al-Sabah, who was appointed in October 2017. Al-Sabah is a former oil minister who has little experience in electricity or water management. He has faced widespread criticism for his lack of experience and for his alleged corruption. The parliament has also rejected several of his proposed reforms, including plans to privatize the electricity sector and increase tariffs.

Given the ministry’s current troubles, it is unclear how it will improve the quality of services in Kuwait or help workers find new jobs.

Challenges Facing the Ministry

Since its privatization in 2009, the Kuwaiti Ministry of Electricity and Water has faced a number of challenges. These challenges include the ministry’s inadequate resources and management, as well as its inability to attract qualified employees.

Inadequate Resources and Management

The Kuwaiti Ministry of Electricity and Water has very limited resources. For example, the ministry only has about $200 million in its budget, which is about 1/5 of the country’s budget. This lack of resources has led to a number of problems for the ministry, including its inadequate management. For example, the ministry has not been able to attract qualified employees, which has hindered its ability to manage effectively.

Inability to Attract Qualified Employees

One of the biggest challenges facing the Kuwaiti Ministry of Electricity and Water is its inability to attract qualified employees. This is because the ministry does not have many opportunities for employees to gain experience in their field. Additionally, the salary offered by the ministry is not competitive with other sectors. As a result, many qualified employees are unwilling to work for the ministry.

The Ministry of Electricity and Water is facing many challenges, the largest of which is its privatization. The ministry has been struggling to keep up with the demands of its customers and meet the expectations of investors.

One of the first challenges faced by the ministry was its inability to attract new investors. This was due in part to a number of factors, including slow economic growth and a lack of transparency in government affairs. It wasn’t until late 2009 that the ministry finally succeeded in attracting two new investors: Qatar Electricity Company (QEPCO) and Kuwait Electric Corporation (KEC). However, these investments have not been enough to alleviate the pressure on the ministry’s finances.

The second challenge is related to customer service. The ministry has struggled to keep up with customer demand, which has resulted in complaints from both consumers and businesses. In addition, chronic staff shortages have made it difficult for the ministry to provide adequate service.

Lastly, there are also concerns about the quality of electricity supplied by the ministry. Some customers have reported that their power has been cut off without warning, while others have complained about high prices and poor quality of service.


As privatization continues to sweep the Gulf region, it is important to take a closer look at what Privatized Kuwaiti Ministry of Electricity and Water (PKMW) represents. While there are benefits associated with PKMW’s transition to private ownership, such as increased efficiency and competition in the sector, this process also comes with risks. In this article, we will explore some of these risks and discuss why they should be monitored closely.

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