KUWAIT CITY, Aug 10:  The Kuwait Authority for Partnership Projects (KAPP) signed contracts on Sunday with Saudi-based ACWA Power and the Gulf Investment Corporation for the second and third phases of the Al-Zour North power and water desalination plant.

The total value of the expansion exceeds 1 billion Kuwaiti dinars (approximately $3.27 billion), according to KAPP Director General Mutlaq Al-Sanei, who told Reuters that the financial burden will be fully carried by the investors, not the government.

Sunday’s signing marks the official launch of one of Kuwait’s largest electricity and water infrastructure undertakings, aimed at alleviating the country’s ongoing power shortages.

Once completed, the expanded Al-Zour North facility will generate 2.7 gigawatts of electricity and produce 120 million gallons of water per day. The plant will utilize combined-cycle technology, and construction is expected to take approximately three years.