Jiblah Holding Co. declared that it will sponsor "Private Sector Role in BOT Development and Infrastructure Projects" Conference to be hosted and organized by Kuwait Commercial Markets Complex Co. for the successive fifth year scheduled to be held from 18 - 19 February 2006 under the patronage of His Highness Minister of Finance, Mr. Bader Al-Humaidhi.

After signing the Sponsorship Contract, CEO of Jiblah Holding Co., Mr. Mahmoud Al-Ja'far, said that the Company has found it very critical to be present at this conference due to the significant impact of these projects on accelerating the economic progress in the State of Kuwait. Jiblah Holding Co. was incorporated in December 2002 for industrial purposes, and then developed to a holding company where Al-Sayer Group owns 76%, to be a specialized company exercising its business in both the industrial and services fields, while giving more attention on carrying out environmentally friendly projects which have a leading role in the urban development, he added.  

Asked about the key projects of Jiblah Holding Co., Al-Ja'far said that the Company has  a 30% share in Kuwait National Lube Oil Company. (Burgan Lubricant Oil), 13% share in Industrial Company for Environment Protection (Solid Waste Project), 15% of Kuwait Slaughter House Co. (K.S.C.C). (Al-Ahmadi Slaughterhouse), 10% of National Slaughter Houses Company (Al-Jahraa Slaughterhouse), 25% of Cement & Rocks Co., and 12% in Al-Ahlia Co. for Industrial Projects (Salt and Chlorine Plant). 

Whenever the Company plans to carry out a BOT project, it experiences an embarrassing position. Like any investor awarded a BOT project, we get shocked that the Industrial Bank does not agree to provide the necessary funding to the Company. Alternatively, the Company resorts to the local banks to get the necessary funding with an interest rate of 8%, given that the interest rate given by the Industrial Bank is 3% only, Al-Ja'far illustrated. In addition, the payback of an industrial project capital takes place within 10 – 12 years, which means that the investor will lean on profits for that purpose. It is clearly defined that the investor will not be able to make any expansion to the project until he pays back the capital, Al-Ja'far added.

Al-Ja'far proposed that either Industrial Bank establishes a separate department to finance such projects or adds new incorporation purposes that help solve the problem. Another option may be the incorporation of a bank dedicated for funding the BOT projects where the Government of Kuwait owns 20% of its capital and remaining shares to be allowed for subscription by the private sector.

He added that the Company is considering entering into a new project on solid waste at a cost of K.D. 5 million, and it is expected to be agreed during one month from now. Moreover, the Company proposes to establish a consulting firm with the existing shareholders, in addition to the idea of establishing brokerage companies in the GCC countries. To put this idea into practice, the Company had a share of 40% in Vision Investment Services Company. which operates its business in Oman Stock Exchange.

Aspirations and hopes are major, and on the same level are the obstacles and challenges, which deserve consideration and concern to overcome, with the view of keeping ahead.