The Kuwait Authority for Partnership Projects (KAPP) conducted a public session to open the financial proposals for the Az-Zour North Independent Water and Power Project (IWPP) Phases 2 and 3.
Phases 2 and 3 of the Az-Zour North IWPP project include the financing, design, construction, operation, maintenance, and transfer of a combined power and desalination facility. The plant is expected to have a minimum capacity of 2,700 megawatts (MW) of electricity and 120 million imperial gallons per day (MIGD) of desalinated water.
The facility will utilise Liquefied Natural Gas and high-pressure natural gas as its primary fuels, with gas oil serving as a backup. It will be connected to the national grid through a 400 kV transmission substation.
The Request for Proposal (RFP) identified three consortia and two companies as qualified to participate in the bidding process. These include:
- A consortium led by Abu Dhabi National Energy Company (TAQA), with participation from Kuwait’s A.H. Al Sagar & Brothers Co. and Japan’s JERA;
- A consortium led by Saudi Arabia’s ACWA Power, in partnership with the Gulf Investment Corporation;
- A consortium led by China Power International Holding, with Malaysia’s Malakoff International and Saudi Arabia’s Abdul Aziz Al Ajlan Sons Co.;
- Additionally, Qatar’s Nebras Power and Japan’s Sumitomo Corporation were listed among the qualified companies.
The selected bidder will execute the project under a Public-Private Partnership (PPP) arrangement, with a total investment period of up to 27 years and 8 months. A 25-year Energy Conversion and Water Purchase Agreement (ECWPA) will be signed with the Ministry of Electricity, Water and Renewable Energy (MEWRE) starting from the commercial operation date.
According to a January 2025 report by Zawya Projects, the estimated cost of the project is approximately 1.2 billion Kuwaiti dinars ($3.9 billion).
The facility will be constructed near the existing Az-Zour North Phase 1 plant and the Az-Zour South power complex, located about 100 kilometers south of Kuwait City.
The project’s tendering process began with an Expression of Interest (EOI) issued in July 2018. Qualified bidders were announced on December 3, 2023, followed by the issuance of the RFP on March 27, 2024.
KAPP and MEWRE are receiving advisory support from Ernst & Young (lead and financial advisor), Addleshaw Goddard (legal advisor), and Atkins (technical and environmental advisor).
