Kuwait tenders Al Zour North IWPP contract

01 April 2024
Bids are due in June for the integrated independent water and power project


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Kuwait’s Electricity, Water & Renewable Energy Ministry (MEWRE) has tendered the contract to develop and operate the country's next independent water and power producer (IWPP) project.

MEWRE, through the Kuwait Authority for Partnership Projects (Kapp), issued the request for proposals to qualified developers for the Al Zour North 2 and 3 IWPP contract on 31 March.

Kapp expects to receive bids by 30 June. 

The Al Zour North 2 and 3 IWPP will merge the previously planned second and third phases. It will have a generation capacity of 2,700MW and a desalination capacity of 120 million imperial gallons a day (MIGD).

Located about 100 kilometres south of Kuwait City, the project will be adjacent to the western border of the first Al Zour North facility for electric power generation and water desalination, which is currently in operation, and on the northern border of the Al Zour South station.

Kapp received statements of qualification earlier this year from utility developers for the contracts to develop the Al Zour North 2 and 3 and Al Khiran 1 IWPP projects.

The contract to develop and operate the Al Khiran 1 IWPP will be tendered later this year, a source close to the project tells MEED.

Industry sources said companies that have been qualified to bid for the contracts include:

  • Abu Dhabi National Energy (Taqa) / AH Al Sager & Brothers Company (local) / Jera (Japan)
  • Acwa Power (local) / Gulf Investment Corporation (Kuwait) 
  • China Power International Holding (China) / Malakoff International (Malaysia) / Abdulaziz Al Ajlan & Sons (Saudi Arabia)
  • Nebras Power (Qatar)
  • Sumitomo Corporation (Japan)
Separate contracts

The Al Zour North 2 and 3 and Al Khiran 1 projects will be developed as two separate IWPP contracts.

 The Al Khiran 1 IWPP will have a power generation capacity of 1,800MW and a desalination capacity of 33MIGD.

The project is located next to the southern boundary of the Al Zour South power and water complex.

Both projects will export their production to the electricity grid and water transmission grid through an energy transfer and water purchase contract agreement with MEWRE for 25 years from the date of operation of the station.

Both plants are expected to run on a mixture of liquefied natural gas and high-pressure natural gas, with gas oil as a reserve fuel. 

MEED understands the selected developer or developers will have the option to use thermal or reverse osmosis technology for the water desalination facility.   

A team comprising UK-headquartered firms EY, Atkins and Addleshaw Goddard won the transaction advisory contract for the two IWPPs in April 2021, two months after Kapp obtained approval from the State Audit Bureau to award the contract.

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