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Kuwait to tender 4.5GW contracts by year-end

16 August 2023

Kuwait’s Electricity, Water & Renewable Energy Ministry (MEWRE) is expected to tender the contracts to develop and operate the country's second and third independent water and power producer (IWPP) projects by year-end, according to two sources close to the project.

MEWRE, through the Kuwait Authority for Partnership Projects (Kapp), recently received statements of qualification (SOQs) from utility developers for the contracts to develop the Al-Zour North 2 & 3 and Al-Khiran 1 IWPP projects.

According to one of the sources, it is likely that the requests for proposals will be issued "much earlier" than the end of 2023. 

Kapp received initial SOQs from at least six utility developers, as MEED reported in September last year, before cancelling and re-issuing a new request.

According to industry sources, the companies that submitted SOQs at the time included:

  • Abu Dhabi National Energy (Taqa, UAE)
  • Acwa Power (Saudi Arabia)
  • Jera (Japan)
  • Kepco (South Korea)
  • Mitsui (Japan)
  • Nebras Power (Qatar)
  • Sumitomo (Japan) 

It is unclear which of these developers resubmitted SOQs, or if additional companies have responded to the latest request for qualifications.

Separate contracts

The Al-Zour North 2 & 3 and Al-Khiran 1 projects will be developed as two separate IWPP contracts.

The Al-Zour North 2 & 3 IWPP will merge the previously planned second and third phases. It will have a generation capacity of 2,700MW and a desalination capacity of 120 million imperial gallons a day (MIGD).

Located about 100 kilometres south of Kuwait City, the project will be adjacent to the western border of the first Al-Zour North facility for electric power generation and water desalination, which is currently in operation, and on the northern border of the Al-Zour South station.

Kapp said that the Al-Khiran 1 IWPP will have a power generation capacity of 1,800MW and a desalination capacity of 33MIGD.

The project is located next to the southern boundary of the Al-Zour South power and water complex.

Both projects will export their production to the electricity grid and water transmission grid through an energy transfer and water purchase contract agreement with MEWRE for 25 years from the date of operation of the station.

Both plants are expected to run on a mixture of liquefied natural gas and high-pressure natural gas, with gas oil as a reserve fuel. 

MEED understands the selected developer or developers will have the option to use thermal or reverse osmosis technology for the water desalination facility.   

A team comprising UK-headquartered firms EY, Atkins and Addleshaw Goddard won the transaction advisory contract for the two IWPPs in April 2021, two months after Kapp obtained approval from the State Audit Bureau to award the contract.

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Jennifer Aguinaldo

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