Kuwait- The Kuwait Authority for Partnership Projects (KAPP), in conjunction with the Ministry of Electricity & Water & Renewable Energy of the State of Kuwait (MEWRE), has recently issued a Request for Proposals (RFP) to a select group of qualified bidders for the ambitious Az-Zour North Phase 2 & 3 Independent Water and Power Project (IWPP). This initiative is part of a broader effort to strengthen the infrastructure needed to support Kuwait’s growing demand for energy and fresh water, reflecting the country’s commitment to sustainable development and energy diversification.
The Az-Zour North Phase 2 & 3 project, situated approximately 100 kilometers south of Kuwait City along the picturesque Arabian Gulf coast, is designed to be a beacon of modern infrastructure. Nestled adjacent to the existing Az-Zour North IWPP (Phase 1) and the Az-Zour South power complex, the new phase of development is set to significantly enhance the nation’s power generation and water desalination capabilities. With an expected minimum output of 2,700 megawatts of power and 120 million imperial gallons per day of desalinated water, the project underscores Kuwait’s proactive approach to addressing its future energy and water needs.
The project’s innovative design incorporates the use of liquefied natural gas (LNG) and high-pressure natural gas, with gas oil as a backup, highlighting Kuwait’s shift towards more sustainable and reliable energy sources. This strategic choice not only diversifies the country’s energy mix but also aligns with global trends towards cleaner, more environmentally friendly power generation methods.
Among the distinguished shortlisted bidders vying for this lucrative opportunity are notable entities such as the Abu Dhabi National Energy Company (TQAQ), A.H Al Sagar & Brothers Co, and JERA Co, alongside other industry giants like ACWA Power Company, Gulf Investment Corporation, and Sumitomo Corporation. The inclusion of such reputable firms in the bidding process speaks volumes about the project’s significance on the international stage and its potential to set new standards in the field of energy and water production.
The selected winning bidder will enter into a Public-Private Partnership (PPP) agreement extending up to nearly 25 years, underscoring the long-term commitment and collaboration between the public and private sectors. This partnership model is instrumental in leveraging the expertise and resources of both sectors to achieve mutual goals of sustainable development and economic growth.
Furthermore, the project company will sign an Energy Conversion and Water Purchase Agreement (ECWPA) with MEWRE, ensuring the export of electricity and water production to the national grid for a period of 25 years from the commercial operation date. This arrangement not only guarantees a steady supply of essential resources but also contributes to the nation’s economic resilience by providing a reliable revenue stream.
The Az-Zour North 2 & 3 IWPP is more than just an infrastructure project; it’s a testament to Kuwait’s visionary approach to securing its energy and water future. By increasing power generation capacity, diversifying energy sources, and enhancing water desalination capabilities, Kuwait is not only addressing its immediate needs but also laying the groundwork for sustainable growth and prosperity. This project represents a significant milestone in the country’s journey towards energy independence, environmental sustainability, and economic resilience, setting a benchmark for others in the region to follow.