Kuwait issues RFP for Al-Khairan IWPP Project

The Kuwait Authority for Partnership Projects (KAPP), in collaboration with the Ministry of Electricity & Water & Renewable Energy of the State of Kuwait (MEWRE), issued the Request for Proposal (RFP) for Al-Khairan Phase 1 Independent Water and Power Plant (IWPP) to the qualified bidders. 

The Al-Khairan Phase 1 IWPP is a power and desalination facility designed to deliver at least 1,800 MW of electricity and 33 MIGD of potable water. It represents the first stage of a larger multi-phase complex expected to supply up to 5,400 MW of power and around 125 MIGD of water upon completion. It will operate mainly on liquefied and high-pressure natural gas, with gas oil serving as backup fuel. The plant is planned for a site next to the southern boundary of the Az-Zour South thermal power and desalination complex, around 100 km south of Kuwait City. Its output will be supplied directly to Kuwait’s national electricity grid and water transmission system. The project is being developed with support from Ernst & Young as lead and financial advisor, Addleshaw Goddard as legal advisor, and Atkins as technical and environmental advisor.

The official RFP announcement comes shortly after the signing of a 25-year Power and Water Purchase Agreement (PWPA) between KAPP, the Ministry of Electricity, Water and Renewable Energy, and a Saudi-Kuwaiti consortium led by ACWA Power and the Gulf Investment Corporation (GIC) for the US$4 billion Az-Zour North 2 and 3 IWPP. The Al-Khairan Phase 1 IWPP will be executed on a Build-Own-Operate-Transfer (BOOT) model, reinforcing Kuwait’s strategy of leveraging public-private partnerships to strengthen its power and water security.