Kuwait is moving forward with the Az-Zour North Independent Water and Power Project (IWPP) Phases 2 and 3, a major oil and gas infrastructure development that will add 2,700 megawatts (MW) of power and 120 million imperial gallons per day (MIGD) of desalinated water to the country’s capacity. The Kuwait Authority for Partnership Projects (KAPP) recently held a public session to open financial bids, attended by representatives of all qualified bidders.
The upcoming facility will be powered primarily by liquefied natural gas and high-pressure natural gas, with gas oil as a backup. It will connect to the national grid through a 400 kV transmission substation and is expected to significantly boost Kuwait’s energy and water security.
According to KAPP, the project will be developed under a Public-Private Partnership (PPP) model over a 27-year, 8-month investment period. The winning bidder will sign a 25-year Energy Conversion and Water Purchase Agreement (ECWPA) with the Ministry of Electricity, Water & Renewable Energy (MEWRE) starting from the project’s commercial launch.
The estimated investment stands at 1.2 billion Kuwaiti dinars (around $3.9 billion). The plant will be built next to the existing Az-Zour North Phase 1 and Az-Zour South complexes, roughly 100 kilometers south of Kuwait City.
Qualified bidders include:
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A consortium led by Abu Dhabi’s TAQA, with A.H. Al Sagar & Brothers Co. and Japan’s JERA
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Saudi Arabia’s ACWA Power in partnership with Gulf Investment Corporation
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China Power International Holding with Malaysia’s Malakoff International and Abdul Aziz Al Ajlan Sons Co.
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Additionally, Nebras Power (Qatar) and Sumitomo Corporation (Japan) also qualified individually.
The tendering process began with an Expression of Interest in July 2018, with final RFPs issued in March 2024. KAPP and MEWRE are advised by Ernst & Young (financial), Addleshaw Goddard (legal), and Atkins (technical and environmental).