Kuwait qualifies independent utility package bidders

4 December 2023

Kuwait’s Electricity, Water & Renewable Energy Ministry (MEWRE) is understood to have qualified companies that can bid for the contracts to develop and operate the country's next independent water and power producer (IWPP) projects.

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

According to industry sources, the companies that have been qualified to bid for the contracts include:

  • Abu Dhabi National Energy (Taqa) / A.H Al-Sager & Brothers Company (local) / Jera (Japan)
  • Acwa Power (local) / Gulf Investment Corporation (Kuwait) 
  • China Power International Holding (China) / Malakoff International (Malaysia) / Abdulaziz al-Ajlan & Sons (local)
  • Nebras Power (Qatar)
  • Sumitomo Corporation (Japan)
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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