The governments of South Korea and Kuwait will jointly build a new city - The South Saad Al Abdullah New City - 40 km west of the centre of Kuwait at an estimated cost of $4 billon, said a report.
The city, which will be spread over an area of 59 sq km, is set to house 25,000 residential units.
The Kuwaiti government will also purchase unsold land and houses once the city is completed, and the two parties will ensure government-level cooperation in mapping out new city policies and exchange of know-how and experience, said the report.
Kang Ho-in, Minister of South Korea’s Land, Infrastructure and Transport (MOLIT), and Yasser Hassan Abul, the Kuwaiti Minister of State for Housing Affairs, signed a memorandum of understanding (MoU) to cooperate on the development of the new smart city.
Besides this, Korea Land and Housing Corporation (LH) inked another agreement with the Public Authority for Housing Welfare (PAHW) of Kuwait in connection with the project.
Under the deal, LH will draw up a comprehensive plan and conduct a feasibility analysis in creating the city and, together with PAHW, set up a special-purpose vehicle (SPV) to jointly invest and build the development.
The SPV company will be in charge of designing, construction and operation of the city, it added.