KUWAIT: Kuwait signed a deal Sunday to double the production capacity of the North Al-Zour Power and Water Plant by 2028, with a total cost of KD 1 billion.
Kuwait Authority for Partnership Projects, the body that oversees public private partnership (PPP) projects, said on Sunday that the commitment document of the major power plant project was signed with a consortium comprising the Saudi ACWA Power Company and the Gulf Investment Corporation.
The project is to build the second and third phases of Al-Zour North Plant to produce 2,700 megawatts of electricity and 120 million imperial gallons of desalinated water, making it the largest power plant project in Kuwait’s history.
KAPP said in a statement that the venture is a pivotal step as part of the state’s strategy to meet the mounting needs for water and electricity, support the national power network and enable it to cope with future development projects.
Moreover, it mirrors the government’s approach to engage the private sector in overhauling Kuwait’s infrastructure, use its expertise in designing, execution and operation, speed up achievements, attain optimal harnessing of the natural resources, besides luring foreign investments.
According to the deal, the winning consortium will design, fund, build, operate and maintain the station that will produce electricity and desalinate water. Public shares will be floated for its execution. This falls within the framework of Law 39/2010 stipulating the establishment of Kuwaiti shareholding companies for the construction of power and water desalination stations, along with its amendments, as well as Law 116/2018 regarding partnership between the private and public sectors.
A group of local and foreign banks are contributing to the project with a value exceeding KD 1 billion ($ 3.2 billion). The North Al-Zour Power and Water Plant is Kuwait’s first privately-owned gas-fired combined cycle power and water desalination plant. The output is supplied to the country’s national power and water grid under a 40-year long-term Energy Conversion and Water Purchase Agreement (ECWPA) with the Kuwait Ministry of Electricity and Water. – KUNA
