Kuwait issues RFP for Az-Zour North 2 & 3 utility project

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The Kuwait Authority for Partnership Projects (KAPP) has announced that it has issued request for proposals (RFPs) to all the five qualified bidders for the development of its key utility project of Az-Zour North Phase 2 and 3 IWPP in collaboration with the Ministry of Electricity & Water & Renewable Energy (MEWRE) of the State of Kuwait.

A mega independent water and power plant (IWPP) plant for Kuwait, the Az-Zour North Phase 2 and 3 IWPP will run on a combination of liquified natural gas and high-pressure natural gas with gas oil as backup fuel.

Once completed, it will boast a minimum capacity of 2.7GW of power and no less than 120 million imperial gallons per day (MIGD) of desalinated water.

According to KAPP, the qualified bidders for the Az-Zour North Phase 2 and 3 are consortiums led by:

*Abu Dhabi energy company Taqa with partners AH Al Sagar & Brothers, a Kuwaiti group with interests in power, oil and gas, and petrochemicals and Japanese power company Jera;

*Saudi-based utility major Acwa Power with Kuwai-based Gulf Investment Corporation;

*China Power International Holding with Malaysian group Malakoff International and Saudi-based Abdul aziz Al Ajlan Sons Company

Also in the race are Nebras Power, a Qatar-based power development company, and Sumitomo Corporation, a Japanese trading company engaged in diverse businesses, including construction systems and infrastructure.

The project scope includes finance, design, construction, operation and maintenance services followed by the transfer of the plant to KAPP for its operation.

According to KAPP, the winning bidder will sign the public private parrtnership (PPP) agreements with the related parties, which would extend up to 27 years and 8 months.

The project company will then seal the energy conversion and water purchase agreement with MEWRE to export its production of electricity and water to the MEWRE grid for 25 years from the day of the launch of commercial operations at the plant.

The deadline for submitting the RFPs has been set at June 30.

For the project, Ernst & Young is acting as the Lead and Financial Advisor for KAPP and MEWRE, while Addleshaw Goddard is serving as the Legal Advisor, and Atkins as the Technical & Environmental Advisor.