The Kuwait Authority for Partnership Projects (KAPP) has issued requests for proposals (RFPs) to the five qualified bidders for the development of its key utility project of Az-Zour North Phase 2 and 3 IWPP in collaboration with the Ministry of Electricity & Water & Renewable Energy (MEWRE) of the State of Kuwait, reports Trade Arabia.
Operating on a blend of liquefied natural gas and high-pressure natural gas, with gas oil as a backup fuel, the Az-Zour North Phase 2 and 3 Independent Water and Power Plant (IWPP) is expected to deliver a minimum power capacity of 2.7GW and produce no less than 120 million imperial gallons per day (MIGD) of desalinated water upon completion.
The qualified bidders for the Az-Zour North Phase 2 and 3 are consortiums led by:
- Abu Dhabi energy company Taqa with partners AH Al Sagar & Brothers, a Kuwaiti group with interests in power, oil and gas, and petrochemicals and Japanese power company Jera;
- Saudi-based utility major Acwa Power with Kuwai-based Gulf Investment Corporation;
- China Power International Holding with Malaysian group Malakoff International and Saudi-based Abdul aziz Al Ajlan Sons Company
- Nebras Power, a Qatar-based power development company, partnered with Sumitomo Corporation, a Japanese trading company engaged in various sectors, including construction systems and infrastructure.
The selected company/consortium will be responsible for the finance, design, construction, operation, and maintenance services, culminating in the transfer of the plant to KAPP for operational management. The winning bidder will enter into public-private partnership (PPP) agreements with relevant stakeholders, extending up to 27 years and 8 months.
The project company will finalize energy conversion and water purchase agreements with MEWRE. These agreements will enable the export of electricity and water production to the MEWRE grid for 25 years from the commencement of commercial operations at the plant.
The deadline for submitting the RFPs has been set at June 30.
Ernst & Young serves as the Lead and Financial Advisor for KAPP and MEWRE, supported by Addleshaw Goddard as the Legal Advisor and Atkins as the Technical & Environmental Advisor.
