Kuwait sets deadline for Kabd waste PPP

28 July 2016

Five groups have been prequalified to participate in the tender

The Kuwait Authority for Partnership Projects (KAPP) has set a new submission date of 8 September 2016 for the Kabd Municipal Solid Waste Project.

MEED reported in February that KAPP was going to grant extensions to bidders for the planned solid waste project, with the original submission date having been set for 24 March. Bidders had asked for more time due to the complexity of the project.

The waste-to-energy (WTE) scheme will be developed under a design, build, finance, operate and transfer model.

The proposed facility will be located in the Kabd area, about 25 kilometres from Kuwait City, and will occupy an area of about 500,000 square metres. The project is planned to have an initial capacity of 3,275 tonnes a day (t/d) and will treat up to half of the country’s municipal waste.

The five groups prequalified for the project are:

  • Constructions Industrielles de La Mediterranee (CNIM), Gulf Investment Corporation (GIC), Al-Mulla Group (local)
  • EVN Umweltholding and Betriebs (Austria), International Financial Advisors (IFA) (local) / KCC Engineering & Contracting (local) / Steinmuller Babcock Environment (Germany)
  • Urbaser (Spain) / Babcock & Wilson (US) / Veolia Proprete (France) / National Cleaning Company (local)
  • Suez Environnement (France) / Itochu Corporation (Japan) / Kharafi National (local)
  • FCC Medio Ambiente (Spain) / Acwa Power (Saudi Arabia) / Beatona (Saudi Arabia) / Fouad Alghanim & Sons General Trading & Contracting (local)

KAPP, formerly called the Partnerships Technical Bureau (PTB), invited companies to prequalify for the Kabd scheme in May 2015. This was the second time the prequalification process was conducted for the project, with companies originally invited to prequalify for the scheme in March 2014. However, the newly formed KAPP decided to reopen the prequalification process.

Advisory services: In the second quarter of 2013, the PTB awarded the transaction advisory services deal for the project to a consortium led by the UK’s PwC. The contract involves reviewing, updating and finalising the feasibility study for the scheme, and includes a waste composition characterisation study. The adviser will also be in charge of reviewing, updating and finalising tender documents, and providing assistance in all procurement procedures until the financial close of the project.

The electricity generated by the plant will be purchased by the Ministry of Electricity & Water (MEW) through a power purchase agreement (PPA). The PPA is expected to last for 25 years, in addition to four years for design and construction of the scheme.

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