ACWA Power, the world’s largest private water desalination company, and a leader in energy transition and first mover into green hydrogen, together with its consortium partner Gulf Investment Corporation GSC (GIC), today announced the signing of the Letter Agreement with the Kuwait Authority for Partnership Projects Authority (KAPP) and the Ministry of Electricity, Water and Renewable Energy (MEWRE) to develop Az-Zour North Phase 2 & 3 Independent Water and Power Project (IWPP) in Southern Kuwait.
With total investment cost exceeding USD 4 billion, the megaproject will have a net power generation capacity of at least 2,700 megawatts (MW) and a net desalinated water production capacity of at least 120 million Imperial Gallons per Day (MIGD). This project will greatly support Kuwait’s electricity generation and water security infrastructure, while creating employment opportunities for Kuwaiti talent during both construction and operational phases.
Under a 25-year offtake agreement, the consortium led by ACWA Power will design, finance, build, operate, maintain and transfer the plant and its associated facilities under a BOT (Build-Operate-Transfer) model. The consortium and KAPP will establish a project company, where the consortium will hold 40% and KAPP will retain 60% of the company’s share capital. KAPP will then allocate 50% of the company’s capital for public subscription by Kuwaiti citizens after the project becomes fully operational by 2029 and is listed on the Kuwait Stock Exchange.
Ibrahim Ali Al-Qadhi, CEO of Gulf Investment Corporation, commented: “We are proud to contribute to the development of strategic infrastructure projects in Kuwait through Az-Zour North Phase 2 & 3 IWPP. This project represents a landmark investment in GIC portfolio, utilising the latest technologies and highest global standards in power generation and water desalination. GIC is committed to ensuring the provision of sustainable electricity and water resources at competitive economic costs to support Kuwait’s social and economic prosperity.”
GIC is considered a pioneer in Public-Private Partnership (PPP) infrastructure projects in the region where it successfully developed and owns 10 infrastructure projects in the Gulf.
Raad Al-Saady, Managing Director and Vice Chairman of ACWA Power, said: “This landmark agreement for the Az-Zour North Phase 2 & 3 IWPP reflects ACWA Power’s commitment to supporting Kuwait’s ambitious development agenda through a project of strategic national importance. This investment highlights our commitment to Kuwait’s growth vision. We look forward to bringing our experience from a diverse portfolio of projects worldwide and applying our expertise in the Build-Operate-Transfer model in close partnership with our counterparts in Kuwait. Together, we will work to enhance the reliable and sustainable delivery of power and water in Kuwait, further strengthening our shared efforts towards energy transition and water security.”