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Kuwait reissues tenders for Az-Zour North and Al-Khairan projects

  • Kuwait reissues tenders for Az-Zour North and Al-Khairan projects
  • The Az-Zour North Phase 2 & 3 IWPP project aims to have a net capacity of at least 2,700 MW of power and 120 MIGD of desalinated water. 

About the entity

The Kuwait Authority for Partnership Projects has cancelled the tenders issued for the Az-Zour North Phase 2 and 3 integrated water and power project (IWPP) and the Al-Khairan Phase 1 IWPP. It has also re-issued the qualifying companies/consortia to participate in a tender for the development, financing, design, procurement, engineering, construction, testing, commissioning, operation, maintenance and transfer of the two projects.

Az-Zour North Phase 2 & 3 IWPP Project

The Az-Zour North Phase 2 & 3 IWPP project is a power and water desalination plant with a net capacity of at least 2,700 MW of power and 120 MIGD of desalinated water. It will be situated at the Az-Zour North site adjacent to the west boundary of the Az-Zour North 1 IWPP facility currently under operation and to the north boundary of the existing Az-Zour South power complex, approximately 100 kilometers south of Kuwait City on the Arabian Gulf coast. 

According to a statement released by KAPP (Kuwait Authority for Partnership Projects), “The Project is expected to be run on a mixture of liquified natural gas and high-pressure natural gas with gas oil as backup fuel.

The Project will benefit from an Energy Conversion and Water Purchase Agreement (the “ECWPA”) with MEWRE as the offtaker for a 25-year term. KAPP and MEWRE are assisted by Ernst & Young as Lead & Financial Advisor, Addleshaw Goddard as Legal Advisor and Atkins as Technical & Environmental Advisor.”

Al-Khairan Phase 1 IWPP Project

The Al-Khairan Phase 1 IWPP project is a power and water desalination plant with a net capacity of at least 1,800 MW of power and 33 MIGD of desalinated water. Another statement released by KAPP read: “The Project will benefit from an Energy Conversion and Water Purchase Agreement (the “ECWPA”) with MEWRE as the offtaker for a 25-year term from PCOD. KAPP and MEWRE are assisted by Ernst & Young as Lead & Financial Advisor, Addleshaw Goddard as Legal Advisor and Atkins as Technical & Environmental Advisor.”

The Project is expected to be run on a mixture of liquified natural gas and high-pressure natural gas with gas oil as backup fuel and will be located adjacent to the southern border of the existing Az Zour South conventional thermal power and desalination plant, approximately 100 kilometers south of Kuwait City.

In 2021, Smart Water Magazine reported that the KAPP had signed a contract with a consortium led by Ernst & Young for the transaction advisory services of these two mega infrastructure projects.

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