ACWA Power, Saudi Arabia and Kuwait-based financial institution Gulf Investment Corporation (GIC), Kuwait Consortium has secured greenfield Az Zour North Phase 2 & 3 Independent Water and Power Project (IWPP) in Kuwait.

The Letter of Agreement was Signed with the Kuwait Authority for Partnership Projects (KAPP), in collaboration with the Ministry of Electricity & Water & Renewable Energy of the State of Kuwait (MEWRE).

Az Zour North Phase 2 & 3 will be Kuwait’s largest power and water plant with a net power generation capacity of at least 2,700 MW, a net desalinated water production capacity of at least 120 MIGD .

The total investment cost exceeds USD 4 billion.

The Project includes the financing, design, construction, operation, maintenance, and transfer of the Az-Zour North IWPP project Phase 2 & 3, a power and water desalination plant with a minimum capacity of 2,700 MW of power and no less than 120 million imperial gallons per day (MIGD) of desalinated water. The Project will run on a combination of liquified natural gas and high-pressure natural gas with gas oil as backup fuel.

The Project is located at the Az-Zour North site adjacent to the western border of the Az-Zour North IWPP (Phase 1) which is currently in operation on the northern border of the existing Az-Zour South power complex, approximately 100 kilometers south of Kuwait City on the Arabian Gulf coast.

The consortium and Kapp will establish a project company in which the former will a hold 40% stake and Kapp will retain the other 60% 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.