Kuwait close to award Az-Zour North PPP part two

Kuwait Authority for Partnership Projects (KAPP), in collaboration with the Ministry of Electricity and Water of the State of Kuwait, has invited two bidders into talks for the second phase of its Az-Zour North power generation and desalination project.

In June, we reported that three consortia have been qualified to participate in the Request for Proposals phase of the tender:

• International Company For Water and Power Projects, Al-Mulla Group Holding Company and Mitsui Company Consortium,
• Marubeni Corporation and Fouad Al-Ghanim Sons Group of Companies Consortium,
• Sumitomo Corporation, OSAKA Gas Company and National Industries Group Holding Consortium

The project will be the second phase of the Az-Zour North power generation and water production complex. It involves the development, design, engineering, construction, ownership, operation, maintenance and transfer of a power and desalination plant with a net capacity of at least 1,500 MW of power and at least 102 million imperial gallons per day (MIGD) of desalinated water.

The project also includes the sale and purchase of associated power and water by the Ministry of Electricity and Water pursuant to an Energy Conversion and Water Purchase Agreement (ECWPA) for a term of 25 years commencing from the date of full commercial operation of the plant.

The new facilities will be located at the Az-Zour North Site on the Arabian Gulf coast approximately 100 km south of Kuwait City.

The first phase of the project was opened on 6 December 2015 and sealed the success of the first public-private partnership in Kuwait. The Az Zour North project is 60% owned by the Kuwaiti government. The remaining 40% is owned by a consortium of private owners: ENGIE (17.5%), Sumimoto (17.5%) and A.H. Al Sagar & Brothers (5%).