Kuwait invites bids for integrated solar power plant

09 November 2015

Seven groups have been prequalified to participate in tender

  • Plant will have a total capacity of 280MW, including a 60MW solar energy component
  • Facility is being developed as a public-private partnership (PPP) project
  • Project is part of Kuwait’s 15 per cent renewable energy target by 2030

The Kuwait Authority for Partnership Projects (KAPP) has invited prequalified groups to bid for the contract to develop the Al-Abdaliyah integrated solar combined-cycle (ISCC) plant.

KAPP, Kuwait’s public-private partnership (PPP) body which was formerly called the Partnerships Technical Bureau (PTB), is overseeing the development of the scheme in partnership with the Ministry of Electricity & Water (MEW).

Bid close: The PPP body has set a bid submission date of 17 March 2016.

The seven prequalified groups, with lead developer specified, are:

The ISCC facility, which will run on a combination of solar power and gas, will have a total capacity of 280MW. The plant will contain a 60MW solar component. The project will be located in Al-Abdaliyah in southwest Kuwait, and will be located on an area spanning 2 square kilometres.

KAPP, in collaboration with the MEW, will oversee the creation of a joint stock project company that will build, operate and transfer (BOT) the project for an investment period of 25 years. The project company will sign an Energy Conversion and Power Purchase Agreement (ECPA) with the MEW, with the ministry being the offtaker for the electricity generated by the plant.

The UK’s HSBC was appointed as financial consultant for the scheme in September 2013.

As with the other PPP projects planned in Kuwait, the Al-Abdaliyah scheme has faced several delays as the government reformed its PPP implementation body and amended the PPP legislation in 2014.

However, there now appears to be a strong commitment from KAPP and the MEW to push ahead with major utility projects, following the announcement of prequalified groups for the Al-Zour North 2 and Al-Khiran 1 independent water and power projects (IWPPs) earlier in August.

Kuwait’s first IWPP is currently under construction, with the developer contract awarded to a consortium led by GDF Suez in December 2013.

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