Kuwait has invited bids for the first phase of the 1.8 gigawatt Al Khairan power and water project, which is designed to help address the nation's power shortages, reports Reuters.
Pre-qualified international consortia have been invited to submit proposals for the Al Khairan Phase 1 Independent Water and Power Producer project, which will also produce 125 million imperial gallons of water per day, according to the Kuwait Authority for Partnership Projects (KAPP).
Kuwait, an OPEC member and major oil producer, has been struggling with a significant power shortage caused by rapid population growth, urban expansion, rising temperatures, and maintenance delays at some plants. These issues have led the government to implement planned power cuts in certain areas since last year.
Three consortia have been invited to submit bids: one led by Abu Dhabi National Energy Company (TAQA), another led by Saudi Arabia's ACWA Power, and a third led by China Power International Holding. Other qualified companies include Nebras Power and Sumitomo Corporation.
The winning bidder will form a project company to sign a 25-year agreement to sell power and water to the government, KAPP confirmed
The project will be developed under a public-private partnership (PPP) model, involving the "financing, design, construction, operation, maintenance, and transfer" of the plant. The facility will be located 100 kilometers (approximately 62 miles) south of Kuwait City along the Gulf coast, as noted in an announcement by KAPP published on Sunday by Al-Rai newspaper.
The winning bidder will form a project company to sign a 25-year agreement to sell power and water to the government, KAPP confirmed.
Under the PPP framework, companies are established to carry out projects managed by a strategic partner. The partner, which may be Kuwaiti, foreign, or a consortium of investors, is allocated 26% to 44% of the company's shares.
A 50% stake will be offered to Kuwaiti citizens, with the remainder held by the government.
In August, KAPP signed contracts worth over $3.27 billion with ACWA Power and Gulf Investment for the Al-Zour North phases 2 and 3 projects.
