Shamal Azzour Al-Oula KSCP public offering by KAPP to launch on October 1, 2019

All Kuwaiti citizens are eligible to take part in the offering of 50% of the shares of Shamal Azzour Al-Oula Power and Water Company.

  
Shamal Azzour Al-Oula KSCP public offering by KAPP to launch on October 1, 2019
  • The transaction is mandated by Kuwait’s Public-Private Partnership (PPP) legal framework, which requires the State to offer 50% of the total ownership of PPP projects to Kuwaiti citizens through a public offering.
  • Shamal Azzour Al-Oula Power and Water Company K.S.C.P. is the owner and operator of Kuwait's first independently owned power and water plant established under the IWPP Law and the country’s first PPP project to be offered for public subscription.

Kuwait City: In a press briefing held today, the Kuwait Authority for Partnership Projects (KAPP) said it is set to launch on October 1, 2019, the public offering of its 50% equity stake in Shamal Azzour Al-Oula KSCP, the owner and operator of the Az-Zour North One Power and Water Plant.

Shamal Azzour Al-Oula KSCP is the first company to be established as a Public-Private Partnership project and the first PPP to be offered for public subscription. The public subscription period will open for 60-days and ends on November 29, 2019.

Once the transaction concludes, and depending on the final level of demand, up to 50% of Shamal Azzour Al-Oula’s shares will be owned by Kuwaiti citizens. The remaining 50% will continue to be owned by current shareholders (40% by a private investor represented by Azour North One Holding Company KSCC owned by a consortium comprising ENGIE (formerly GDF SUEZ), Sumitomo Corporation, A.H. Al Sagar & Brothers, 5% by Kuwait Investment Authority, and 5% by the Public Institution for Social Security).

The public offering is mandated by the IWPP and PPP Laws, which form an integral part of an overarching governmental effort to include citizens in the ownership of megaprojects that are offered to private-sector institutional investors. In addition to providing attractive investment opportunities to citizens, PPP projects empower the private sector to take the lead in growing the national non-oil economy.

Shamal Azzour Al-Oula is Kuwait’s first company established under the IWPP Law. The company is the owner and operator of Az-Zour North One Power and Water Plant, which is the first privately-owned gas-fired combined cycle power and water desalination plant. The facility commenced commercial operations in November 2016 and currently supplies about 10% of Kuwait's installed power generation capacity and about 20% of the country’s installed water desalination capacity.

Power and water produced by the company are entirely supplied to the national power and water grid operated by the Kuwait Ministry of Electricity and Water (MEW) under a 40-year long-term Energy Conversion and Water Purchase Agreement (ECWPA). Shamal Azzour Al-Oula KSCP is the first phase of Kuwait’s Independent Water and Power Project (IWPP), which is a part of MEW’s strategy to increase the country’s capacity to meet electrical and water demand over the coming years.

Transaction Highlights:

  • Stake: 50% of Shamal Azzour Al-Oula Power and Water Company KSCP (Equivalent to 100% of KAPP’s stake in the company’s capital)
  • Subscription Start Date: October 1, 2019
  • Subscription End Date: November 29, 2019
  • Eligibility: Kuwaiti nationals as of September 15, 2019

Project Highlights

  • December 12, 2013: Signing ceremony with MEW, successfully concluding Kuwait’s first PPP RFP process. Construction commences.
  • November 26, 2016:  Construction completed, starts commercial operation (on schedule and on budget)
  • September 11, 2017: NBK Capital appointed as lead advisor for the transfer of shares to the citizens.
  • March 29, 2018: “Completion Date”

- ENDS -

For more information, reporters may contact:

Fawaz Al Sirri - Bensirri Public Relations - Email: fawaz@bensirri.com 

© Press Release 2019

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.

More From Press Releases