KUWAIT: Kuwait signed a deal on Sunday to double the production capacity of the North Al-Zour Power and Water Plant by 2028, at a total cost of KD 1 billion. The Kuwait Authority for Partnership Projects (KAPP), which oversees public-private partnership (PPP) projects, announced that the commitment document was signed with a consortium including the Saudi ACWA Power Company and the Gulf Investment Corporation.
The project covers the construction of the second and third phases of the Al-Zour North Plant, which will produce 2,700 megawatts of electricity and 120 million imperial gallons of desalinated water on top of the plant’s current production. This expansion will make it the largest power plant project in Kuwait’s history. KAPP described the venture as a pivotal step in the state’s strategy to meet growing demand for water and electricity, strengthen the national power network, and support future development projects.
Located on the Arabian Gulf coast about 100 kilometers south of Kuwait City, the new plant will occupy roughly 500,000 square meters. It will be adjacent to the western part of the first phase of the Al-Zour North Plant and the northern section of the Al-Zour South Plant.
KUWAIT: The Undersecretary of the Ministry of Electricity, Water and Renewable Energy, Dr Adel Al-Zamil takes a group with other officials after signing the commitment document for the implementation of the second and third phases of the Al-Zour North Power Plant project — KUNA
Dr Adel Al-Zamel, Undersecretary of the Ministry of Electricity, Water, and Renewable Energy, said the project is part of a broader package aimed at enhancing the country’s energy infrastructure. This includes the first phase of the Al-Khairan Power Plant, phases three and four of the Al-Shagaya renewable energy project, and plans to modernize older power plants in Shuaiba, Al-Zour, and Doha.
The ministry emphasized that the plant aims to encourage private sector participation, leveraging its expertise to reduce construction and operating costs, accelerate completion, and optimize natural resource use. Under the agreement, the winning consortium will design, finance, build, operate, and maintain the plant, producing electricity and desalinated water. Public shares will be issued to support execution, aligning with Law 39/2010 on establishing Kuwaiti shareholding companies for power and water projects and its amendments, as well as Law 116/2018 on public-private partnerships.
A group of local and international banks will finance the project with contributions exceeding KD 1 billion (approximately $3.2 billion). The North Al-Zour Plant will be Kuwait’s first privately-owned gas-fired combined cycle power and desalination facility. Its output will be supplied to the national power and water grid under a 40-year Energy Conversion and Water Purchase Agreement (ECWPA) with the Ministry of Electricity and Water. — KUNA
