Kuwait invites advisers for second IWPP

08 February 2012

Consultants to submit expressions of interest by 1 March

Kuwait’s Partnerships Technical Bureau (PTB) has invited expressions of interest from consultants to advise on the development of an independent water and power project (IWPP) at Khirran.

The winning firm or group of firms will assist the PTB in structuring, procuring and negotiating the transaction. In addition to advising PTB at the tender stage, the advisers will be responsible for carrying out environmental impact studies for the project.

Consultants have until 1 March to notify the PTB of their intention to bid. A request for proposals will be issued on 4 March.

The Khirran thermal power plant will have a capacity of 2,500MW of power and 125MIGD of water. It will be located to the south of the existing Al-Zour South power and water project and is to include a 400kV substation.

Low-sulphur fuel oil, gas oil, crude oil and/or natural gas will be used to fire the plant. The desalination component will use multi-stage flash, multiple-effect distillation and/or reverse osmosis technology.

A special purpose vehicle (SPV) will be established to design, build, finance, operate and maintain the IWPP. The SPV will sign an energy conversion agreement together with a power and water purchase agreement with the Ministry of Electricity and Water.

Khirran South power and water project was originally planned as an engineering, procurement and construction project under the Ministry of Electricity and Water. The plant was to have a capacity of 500MW of power and 50MIGD.

The original scheme was to comprise two steam turbines and the water facility will use multi-stage flash (MSF) technology. Contractors were to be prequalified in September 2011, which would be followed by an invitation to bid in November 2011. Tenders for several additional 500MW phases were planned to follow.

However, the scope of the plant was adjusted in mid-2011 and the plans were transferred to the PTB (MEED 25:8:12). According to Kuwaiti law, all projects in excess of 500MW must be developed by the private sector as I(W)PPs.

The Khirran plant will be the country’s second IWPP. Financial bids for Kuwait’s first IWPP opened on 5 February (MEED 5:2:12). The first project will be built at Al-Zour North and is to have a capacity of 1,500MW of power and 102-107 million g/d.

Several more phases are planned for Al-Zour North. Phase two is to have the same capacity in power and water as phase one. Phase three will add 800MW in power capacity and 50 million g/d, phase four will add 1,000MW and phase five will add 25 million g/d of water capacity to the site. Phases one and two are expected to be fired on natural gas with gas oil as a back-up fuel.

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