The Kuwait Authority for Private Partnerships (KAPP) will issue a request for proposals for Al-Zour North 2 and al-Khiran independent power and water projects (IWPPs) at the end of Ramadan, in July, according to Nayef al-Haddad, engineering specialist, KAPP, speaking at MEEDs Mena Power conference.
The list of prequalified developers is currently waiting for approval from the Council of Ministers. KAPP hopes to issue the list in the next few days.
On 7 May Al-Zour North 1 IWPP produced its first megawatt within 18 months of financial closure, and early commercial operations are expected to begin in June 2015, says Al-Haddad. With this project we have gained back the trust and interest of international developers, and the framework will be duplicated for next project.
The deadline for Al-Zour North 2 will be slightly before Al-Khiran to stagger bids for developers.
Al-Abdaliyya integrated solar combined cycle power plant will also be tendered along the same timeframe, as it is a smaller project. KAPP hopes developers will participate in all three projects, despite the challenges for the latter.
Developers have expressed concern on timing all at once, but you have seen how much power demand is increasing, says Al-Haddad. We at KAPP among the public authorities facing a lot of challenges from other agencies to meet our obligations and release tenders. Energy is the main infrastructure point for all projects, for example with housing, people cant move in if it is not connected. The list of prequalified developers in impressive and we have good interest.
KAPP would also like to see more involvement from local banks on the financing side. However, smaller local banks will need to form consortiums and be supported by the Central Bank of Kuwait for currency hedging.