Sun, Jul 12, 2020
News Summary Report EXTERNAL RELATIONS
Clarification Statement from Incheon International Airports Corporation T4 at Kuwait International Airport is a world model that achieved KD 20 million revenues in 2019, and more than 7 million passengers have enjoyed its distinguished services
Regarding what has been published by Al-Rai newspaper in its edition no.
(14898) issued on 02/07/2020 regarding the contract inked by Incheon International Airports Corporation and the DGCA dated May 08, 2018, Incheon would like to clarify the following:
1- Incheon International Airports Corporation was awarded the contract of operation, management, training, maintenance, improvement and development of the services of T4 at Kuwait International Airport at a global tender, where Incheon provided the best and least prices.
2- The modern approach for approving the model of the global airports operator will contribute to optimizing the country’s economy and sustainable development, and this will contribute to develop sources of income and diversify non-oil sources of revenues for the State of Kuwait. This modern approach is matching world specifications with a recommendation from the World Bank.
3- The contract of T4 with the global operator (Incheon International Airports Corp.) has contributed to enforce the modern approach approved globally in managing and operating airports in the State of Kuwait, and to optimize performance levels. Further, it contributes to qualifying Kuwaiti young people by developing Kuwaiti staff and conveying experiences to them in the field of operating and managing modern airports as the contract includes training of (125)
Kuwaiti employee from the DGCA annually with a total of (625) employees within 5 years in the various technical specialties in managing airports as part of the contract’s expenses.
4- The financial revenues for T4 shall be immediately deposited at the State’s treasury, which are estimated to be 3 times its operational cost as they reached in 2019 KD 20 million. All revenues are deposited directly and immediately to the State’s treasury, and no fils of such revenues is referred to the account of Incheon International Airports.
5- When the contract with Incheon International Airports terminates after five years, the financial revenues of T4 will cover the cost of its construction and operation, and further, they will add huge revenues to the state’s treasury contributing to the country’s economy and development.
6- Incheon International Airports Corporation is awarded the first position all over 13 years according to ACI. Further, it occupied the first rank for more than 10 years in Global Airport award from Skytrax organization, and this ensures professionalism of Incheon International Airports staff.
7- The monthly average cost of the contract of the global operator to T4 is 800 KD including Korean and Kuwaiti managers and technicians, and also maintenance, supporting security services and cleaning staff.
Currently, the global operator recruits more than 80 employees above what is stated at the contract without any additional cost in order to optimize the operational and security performance, which will optimize the rating of T4 as per global standards.
Position No.
CEOs, Administrators, Technical managers, IT and PR 46 Specialists in operational processes 86
Security employee 236 Technical Engineer at Maintenance Works 63
Cleaning employee 142
Total 573
8- The global operator of T4 is committed to performing the highest levels of maintenance on T4, its systems, devices and equipment, and it is in charge of ensuring validity of guarantees all during the term of the contract, and as part of its expenses.
9- The global operator of T4 is responsible for all procedures and supporting security services, and it provides supporting security services as per the highest international levels as part of the contract’s cost. It has been subject to international security auditing and TSA auditing and it records 100% free from remarks results.
10- Incheon International Airport Corporation keeps all its legal rights and all effects that may result from the fallacies and incorrect information in the news published in Al-Rai newspaper.
Al-Seyassa
Profits of T4 Contribute to Kuwaiti’s Well-Fare
Incheon International Airports Corporation stressed that it exerts its utmost efforts to maintain a long-term friendly relation between Korea and Kuwait through the contract of operation of T4 at Kuwait International Airport.
The corporation sent a response to Al-Rai to clarify what is included in the report that was published on the contract concluded between Incheon and the DGCA.
This is the details of the response:
Travelers using T4 commend fast departure procedures and the cleanliness of the building’s facilities. The average time from weighing luggage till reaching the
gate at T4 is nearly 20 minutes, which is much faster than IATA’s recommended standard of (40 minutes).
Incheon International Airports Corporation is a global airports operator with a global rating as it was awarded No.1 airport in the world for 12 successive years by the ACI. Moreover, it occupied the first rank for more than 10 years in international airports award by Skytrax”. Further, it was awarded the prize of the best airport in the world and the best transport airport in the world in 2020.
More than 70 million passengers used the airport last year. The best global services have been provided.
Based on this practical experience and stable operation all over the two past years, Incheon Airports Corporation aims to make 2021 the first year to focus on services with global standard in T4.
Further, Incheon Global Airports has contributed to financing the Kuwaiti Government through all profits and revenues that have been achieved due to the successful operation of T4. This is based on experience in operation as it is considered the best airport in the world. It is expected that revenues from T4 will cover all construction costs of T4 within the coming two years, and achieve continuous profits for the Kuwaiti government.
Incheon Global Airports exerts its utmost efforts, however, no single Kuwaiti dinar is deposited to it from the commercial revenues that it achieves in order to maintain a long-term friendly relation between Korea and Kuwait. The two countries have maintain a strong bilateral relationship by partnering in building projects and key factories in Kuwait. In order to maintain stronger cooperation between the two countries, false news, which is being currently published, has to be corrected, otherwise a strict and strong legal procedure shall be taken in order to compensate for the brand image of Incheon Global Airport that has been harmed.
Therefore, we request to correct the false news that has been published at Al-Rai newspaper articles as follows:
1- The cost of the personnel of the Korean Corporation is KD 1300 on a monthly basis, and most of them lack experience.
The above-mentioned cost is totally wrong. The average cost mentioned above is just calculation by dividing the cost of one year (KD 7.7 million) on 491 employees. This is totally wrong information. If we spend 1300 KD for each employee on a monthly basis as a salary, then how could we operate T4 without any expenses or costs ?
390 out of 491 employees, subject to the contract, work at the departments of security and cleaning, where it is difficult to recruit Kuwaitis. Therefore, the majority of employees are from foreign nationalities. The percentage of employment of Kuwaitis meet the contractual provisions. All staff are qualified and approved by global standards, and make good performance.
2- The Korean company deducts a percentage from the funds collected for commercial purposes without any restrictions or tender regulations?
All revenues collected from operation of T4 are referred to the Kuwaiti Government. No one Kuwaiti dinar is deposited at our account. Incheon International Airports Corporation only collects lease fees on behalf of the DGCA subject to the contract concluded between us and the DGCA, and the revenues collected from the successful tenders due to the successful operation of T4 by Incheon will cover the construction costs within few years.
Incheon International Airports manages No. 1 free market store at Incheon International Airport. Based on its experience and knowledge, Incheon International Airports Corporation has increased revenues by providing a new tendering system, and the successful commercial tenders of T4 will continuously contribute to the welfare of Kuwaiti people.
Franchise agreements set forth that 10% of the lease fees must be provided in the form of a bank guarantee (guarantee deposit) to deduct deferred lease fees and also the harm that might be caused by the franchisor, and it is refunded to the franchisor at the end of the contract pursuant to the contract.
3- The Korean Corporation didn’t provide any employees at maintenance, security or cleaning departments as is required pursuant to the contract Pursuant to the agreement of operation and maintenance, Incheon International Airports undertakes all operation and maintenance services. The work scope in the contract covers operation processes (like airport operation center), passengers’ services, security services and cleaning services, mechanical and electrical maintenance, IT, telecom, civil and architectural engineering. No works at the scope of the contract has not implemented by Incheon International Airports Corporation till now.
4- Kuwait Airport uses its national experience to operate all facilities and ground services at the terminal on its costs.
This is totally different from the fact that Kuwait Airways cover all ground services on its own expense. Kuwait Airways only undertakes ground handling services ( luggage weight, boarding, loading and discharge of luggage, fuel..etc.) at T4, and this is considered one of the key jobs undertaken by airlines in other places of the world. Therefore, Kuwait Airways doesn’t participate altogether in operating the airport or maintenance in general.
Incheon International Airports Corporation undertakes contractual missions, including the processes of operation of the airport, management, training, maintenance works and improvement as set forth in the contract:
5- the MOI undertook security training to Korean employees
Incheon International Airports Corporation appointed experienced Korean security personnel, and their key role is to supervise the new employees and instruct them.
At the beginning, it was essential to train all security personnel and to approve them by the MOI pursuant to the Kuwaiti national security program prior to distributing them.
However, after establishing a training center on aviation security, which is related to Incheon International Airport at T4, we have trained all security personnel on a regular basis, and all the 230 employees have qualified certificates.
Due to the contribution of Korean security personnel, the security processes at T4 have shown excellent performance in comparison to T1. This has been proven through the inspection done by IATA, which is considered historical in Kuwait International Airport. Besides T4 security is approved by 3 main international organizations, including ICAO, DFT and TSA.
Al-Rai
ECONOMY
Kuwait Resumes Raising Prices of Crude Oil to Asia in August
For the fourth consecutive month, prices document shows that Kuwait has raised formal selling prices of crude degrees that it sells to Asian refineries in August.
Extra $1.05 pb above the average price of Oman’s crude in Dubai Energy Boursa is determined for Kuwaiti crude export for August.
Further, it determined the formal price of light excellent crude for August at
$ 1.20 above the average of Oman crude at Dubai stock exchange for energy.
Al-Jareeda
Replacing Public Reserve Assets with “Future Generations’ Cash”
Informed sources disclosed that some investments assets shall be transferred from the public reserve fund to the future generations fund, remarking that such assets will be easy to liquidate shares in order to get monetary liquidity that could cover the deficit of the country’s budget deficit.
Sources told Al-Jareeda newspaper that these assets are shares in the Middle East region, which are known as MENA Rating, remarking that the Public Authority for Investment has completed the process of asset assessment and it is expected to show this file to its board of directors to take a decision soon.
It added that the volume of assets that need to be transferred reach nearly KD 2 billion, remarking that the board of directors will soon hold a meeting to take a final decision regarding the purchase process and transfer of those assets’
possession, and also determining their final value.
Al-Jareeda
Squandering of KD 50 Million in KOC
High oil sources expressed their great concern from the conditions in KOC and the consequential squandering of public money by spending more than KD 50
million on primary designs for projects, which were withdrawn and deleted suddenly, and the excuse is that “there is no need for them”.
Sources that that the company’s confusion in taking right decisions regarding the new projects costed the country and the public funds tens of millions of KDs.
Sources asked auditory authorities in charge of intensifying their procedures and following-up the mechanism of approving projects as well as reasons for the company’s withdrawal.
Al-Qabas
DOMESTIC AFFAIRS
I fear that they make me a scapegoat: Hamad Ali Al-Wazzan
Hamad Ali Al-Wazaan, who is charged in the Malaysian Fund lawsuit expressed his concern to be a scapegoat, and he stressed that he is not an agent for the business of Jho Low in Kuwait.
Sarawack website said that the words of Al-Wazan came via his e-mail hours prior to his arrest as he emphasized that he didn’t take any percentage from the suspected transactions related to the lawsuit, and that he rejected a bank check from Bashar Kiwan.
Al-Qabas
Adan’s ECMO Center Wins International Excellence Award
ECMO department at Kuwait’s Adan hospital has won the Gold Level Center of Excellence Award, provided by the Extracorporeal Life Support Organization (ELSO), in recognition of its life support application.
Extracorporeal membrane oxygenation (ECMO) is one of the top new technologies in ICU units, said Minister of Health Sheikh Dr. Basel Al-Sabah in a statement on Saturday.
He added that this technology is aimed at improving the condition of patients suffering heart and respiratory system failure, by providing sufficient levels of oxygen in the bloodstream.
KUNA
Sources:
KUNA: http://www.kuna.net.kw/Default.aspx?language=en
Al Rai: http://www.alraimedia.com/
Kuwait Times: http:/36Y5/www.news.kuwaittimes.net/website/
Arab Times: http://www.arabtimesonline.com/news/
MEED: http://www.meed.com/
Al Anbaa: http://www.alanba.com.kw/newspaper
Al-Seyassa : http://al-seyassah.com/
Al-Anbaa: https://www.alanba.com.kw/newspaper/
77777 Al-Jareeda: http://www.aljarida.com/
