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Kuwait has formally established a new public shareholding company to manage the next stages of the Al-Zour North independent water and power plant (IWPP).

The Gulf Alliance for Power & Water Company will be responsible for the construction, implementation, management, operation and maintenance of Al-Zour North IWPP phases two and three.

The Al-Zour North phases two and three IWPP involves constructing a 2,700MW power plant and a 120-million-imperial-gallon-a-day desalination facility. The project’s total estimated value is approximately $4bn.

In August, Saudi Arabia’s Acwa Power and Kuwait-based financial institution Gulf Investment Corporation (GIC) signed a contract to develop the project, which will be the country’s largest IWPP.

The consortium of Acwa Power and GIC will hold 40% of the project company through Al-Zour Kuwaiti Second & Third Holding Company.

The Public-Private Partnership Authority will hold 10% on behalf of government entities, while 50% will be offered to Kuwaiti citizens through a public subscription process.

Al-Zour North IWPP phases two and three is owned by the Kuwait Authority for Partnership Projects (Kapp) and the Ministry of Electricity, Water & Renewable Energy.

It will be developed under a build-operate-transfer model with a 25-year offtake agreement.

Sepco3 is the EPC contractor for the project.

The project company has been set up with an authorised and issued capital of KD197.032m ($639m).

This capital is divided into 1.97 billion shares, each with a nominal value of 100 fils. The paid-up capital at the time of establishment is KD49.2m.