ACWA Power led Consortium Signs US$4.1 billion Az-Zour North Phase 2 & 3 IWPP Contract in Kuwait

The ACWA Power-led consortium has signed an Energy Conversion and Water Purchase Agreement (ECWPA) worth USD 4.1 billion for Az-Zour North Phase 2 & 3 IWPP located approximately 100 km south of Kuwait City, adjacent to the existing Az-Zour North Phase 1 facility, along the southeastern coastline of the State of Kuwait near the Kuwaiti-Saudi border.

Az Zour North 2&3 Project is a Combined Cycle Gas Turbine (CCGT) plant fueled by natural gas with a power capacity of 2,700 MW, with gasoil back-up, alongside a seawater reverse osmosis (RO) desalination facility. The Project will comprise a desalination component that will utilize Seawater Reverse Osmosis (SWRO) technology to produce c. 545.5 thousand m3/day. The Project will be developed on a Build, Operate and Transfer (BOT) basis under a 25-year ECWPA with the Ministry of Electricity, Water and Renewable Energy (MEWRE), under which MEWRE will purchase the entire Power and Water Capacity of the Plant. The ECWPA was executed between Kuwait’s MEWRE and Gulf Alliance for Power and Water (K.S.C.P.), a project company jointly owned by the Kuwait Authority for Partnership Projects (KAPP), ACWA Power, and the Gulf Investment Corporation (GIC). ACWA Power holds an effective stake of 24% in the project. The project company will be jointly owned by Acwa and GIC with a combined 40% stake, while KAPP will hold the remaining 60%. 50% of total shares will be offered for public subscription to Kuwaiti citizens once the project becomes fully operational and is listed on the Kuwait Stock Exchange.

The project will be delivered by a consortium of international and local EPC contractors headed by SEPCO-III. GE Vernova will provide and maintain the gas turbines, while ACWA Operations will oversee the facility’s long-term operation and maintenance for the entire 25-year contract period.