Kuwait: Firms battle for lucrative power plant project

Published September 30th, 2015 - 09:17 GMT

Kuwait's Ministry of Electricity and Water have shortlisted seven teams for the second phase of the Az Zour North Complex Independent Water and Power Producer (IWPP) project.

The ministry move comes following the government approval for a $10-billion spending programme focused primarily on building much-needed new power and desalination plants.

The consortiums which have been jointly selected by the ministry and Kuwait Authority for Partnership Projects (KAPP) include Abengoa; Acwa Power International; Korea Electric Power Corporation; Marubeni Corporation and Fouad AlGhanim & sons Group of Companies; Sumitomo Corporation, Osaka Gas and National Industries Group Holding consortium; Mitsubishi Corporation and Mitsui & Company, said the ministry in a statement.

The scope of work includes development, design, engineering, construction, ownership, operation, maintenance and transfer of the power and desalination plant, it stated.

On completion, the second phase of the gas-fired Az-Zour North power and desalinated water plant will have an initial capacity of 1,800MW.

Meanwhile, the ministry said it would also build the first phase of the Khairan power plant which will boast of 1,500MW of capacity using different types of fuel.

The facility will produce a minimum of 102 million imperial gallons a day (MIGD) of desalinated water.

The ministry, pursuant to a 25-year Energy Conversion and Water Purchase Agreement, will buy associated power and water from the plant for a term of 25 years commencing from the date of full commercial operation.

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