Deal Finalized for Progress of Al-Zour North Power Plant's Second and Third Phases (Under the Supervision of KAPP)
Kuwait is set to see a significant expansion in its energy and water infrastructure with the commencement of Phases II and III of the Al-Zour North Power Plant project. This ambitious project is a collaboration between the Kuwait Authority for Partnership Projects (KAPP), the Ministry of Electricity, Water and Renewable Energy, and a consortium comprising ACWA Power and the Gulf Investment Corporation (GIC).
Advanced Technology and Efficient Resources
The facility will employ advanced combined-cycle power generation technology and highly efficient desalination technology. This innovative approach will add approximately 2,700 megawatts (2.7GW) of electricity capacity and produce over 120 million imperial gallons of desalinated water per day. Notably, this doubles the production capacity of the initial phase of the Al-Zour North project.
Public-Private Partnership
The consortium will be responsible for the design, financing, construction, operation, maintenance, and eventual transfer of the integrated power and water desalination plant, structured as a public shareholding company. This public-private partnership aims to address serious electricity shortages, support rising demand, and ensure sustainable use of natural resources and environmental sustainability.
Substantial Investment and Financing
The expansion is valued at over 1 billion Kuwaiti dinars (around $3.27 billion). Financing for the project comes from a mix of local and international banks, with investors bearing the project costs rather than the government directly. This reflects strong investor confidence in Kuwait's investment environment.
Impact on Kuwait
The Al-Zour North Power Plant project will reinforce Kuwait’s energy and water infrastructure, addressing serious electricity shortages and aiming to enhance the stability and capacity of Kuwait’s national electricity grid. The integration of power and desalination within the same complex also optimizes resource utilization.
Timeline
Construction is anticipated to take around three years, with improved electricity and water services expected by 2028.
In summary, Phases II and III of the Al-Zour North Power Plant will significantly bolster Kuwait’s energy infrastructure and water supply through a cutting-edge, large-scale public-private partnership led by ACWA Power and GIC, employing advanced technology and backed by substantial investment.
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[1] KAPP Press Release [2] ACWA Power Press Release [3] GIC Press Release [4] Ministry of Electricity, Water and Renewable Energy Press Release [5] Bank Financing Details
- The collaboration between the consortium, comprising ACWA Power and Gulf Investment Corporation (GIC), is not only focusing on energy but also extending to finance, as their project involves significant investment and financing from a mix of local and international banks.
- The Al-Zour North Power Plant project, with the integration of advanced combined-cycle power generation technology and efficient desalination technology, is poised to have a substantial impact within the finance and energy sectors, producing over 120 million imperial gallons of desalinated water per day and adding approximately 2,700 megawatts of electricity capacity, thereby addressing Kuwait's increasing energy demands.
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