PPPA, MEW seek local, foreign bidding in two energy projects in Kuwait

PHOTO

The Public-Private Partnership Authority (PPPA), in collaboration with the Ministry of Electricity, Water, and Renewable Energy, has extended invitations to both international and local companies and alliances to participate in a bidding process. This initiative pertains to the design, financing, construction, operation, maintenance, and transformation of the Al-Dabdaba Electrical Power Generation Project and Al-Shaqaya Renewable Energy Project – Phase Three, reports Al-Qabas daily. The project entails the establishment of a renewable energy production station with a net capacity of 1,100 megawatts, to export the generated energy to Kuwait’s electricity network.

This will be facilitated through a power purchase agreement with the Ministry of Electricity, Water, and Renewable Energy for 30 years. The PPP revealed that a consortium of companies, spearheaded by Ernst & Young as the main financial advisor, DLA Piper as the legal advisor, and DNV Company serving as the technical and environmental advisor, has been appointed to provide support to the Public-Private Partnership Projects Authority and the Ministry of Electricity, Water, and Renewable Energy in preparing the project documents and procedures for its launch. By offering this project, the Public-Private Partnership Authority and the Ministry of Electricity, Water, and Renewable Energy aim to achieve the following goals:
■ Attracting private sector expertise in the field of renewable energy.
■ Reducing the financial and operational burden on the Ministry of Electricity, Water, and Renewable Energy.
■ Reducing local dependence on fuel.
■ Reducing the total costs incurred by Kuwait for providing energy generation.
■ Increasing the capacity of renewable energy within the country’s energy mix.

The Authority stated that the invitation is to all local and international companies, including companies listed on the Kuwait Stock Exchange, indicating several criteria that must be met, all or some of, which are:
■ A statement of the applicant’s financial capacity, as the company or alliance leader must have a net asset value of $150 million (or its equivalent) as a minimum for at least one of the last three financial years.
■ A statement of the applicant’s financial capacity, as the coalition members must possess an asset value of $50 million (or its equivalent) as a minimum for at least one of the last three financial years.
■ A statement of technical and financial experience in the field of project development, which includes financing projects, managing or implementing contracting contracts, and managing or implementing operation and maintenance contracts, through previous work on projects.
■ The experience must cover at least operation and maintenance for one year months after the date of commencement of operation. In the event of allying, the alliance leader must pledge to retain, throughout the period stipulated in the request for proposals, no less than 30% of the shares in the alliance. The alliance leader must also have explicit administrative control over the alliance, and be authorized by the other alliance members.

To represent the coalition and act on their behalf.
■ Alliance members, excluding the Alliance Leader, must own at least 10% of the shares in the Alliance for the period stipulated in the RFP.

<p>The post PPPA, MEW seek local, foreign bidding in two energy projects first appeared on ARAB TIMES - KUWAIT NEWS.</p>