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Independent water and power projects (IWPPs) procurement process in Kuwait to accelerate

  • Independent water and power projects (IWPPs) procurement process in Kuwait to accelerate

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The long procurement process for independent water and power projects (IWPPs) in Kuwait, which at times has tested the persistence of both consultants and investors, may at last be coming to fruition, informs Trade Arabia.

According to recent news by GlobalData, Kuwait has told consultants they have until July 23 to submit advisory bids for the development of two water and power projects, together worth an estimated $7 billion. An important milestone in the project delivery process will be the awarding of a transaction advisory contract.

However, the COVID-19 lockdowns have slowed down the demand growth, adding some uncertainty. Energy & Technology Editor at GlobalData’s MEED Jennifer Aginaldo has said the two IWPPs combined will generate 4.6 GW of electricity and produce 290 million gallons per day of water through desalination. That amounts to an increase in the country’s capacity of over 25%. She noted the $7 billion investment would be the biggest ever opportunity for investors in the history of Kuwait, although delays and uncertainty could get in the way of the delivery of these major projects. For instance, the contract for the Al Zour North 2 and 3 and Al-Khiran projects has been tendered for the second time in its current form.

Aguinaldo pointed out that this time things could be different. Firstly, because the country’s liquified natural gas terminal, located at Al Zour, will soon be completed. And secondly, because the ministry responsible for electricity and water is under pressure to increase the water and power production, and that could fast track the projects through Kuwait’s approvals’ process.

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