Signing of a commitment document to implement the North Zour Phases II and III project
KUWAIT CITY, Aug 10: The Kuwait Authority for Partnership Projects (KAPP) has affirmed the signing of a commitment document to implement the North Zour Phases II and III project, in cooperation with the Ministry of Electricity, Water and Renewable Energy, and a consortium comprising of ACWA Power and Gulf Investment Corporation. In a press statement on Sunday, KAPP explained that under this agreement, the winning consortium will be responsible for designing, financing, building, operating, maintaining, and transferring the project – the construction of an integrated power generation and water desalination plant through the establishment of a public shareholding company. KAPP confirmed that the implementation of the project is under Law No. 39/2010 on establishing Kuwaiti joint-stock companies to build power and water desalination plants and its amendment, as well as Law No. 116/2014 on public-private partnership. The authority emphasized that the project is a milestone in the strategy of the State to cover the rising demand for electricity and water, support the stability of the national electricity grid, and ensure its readiness for future development projects.
The project also reflects the commitment of the government to involve the private sector in infrastructure development and benefit from its expertise in design, implementation and operation. This will reduce costs, accelerate completion, optimize the utilization of natural resources, attract foreign investment, and finance major development projects. It is the second of the Zour Power and Desalination Complex projects, with a production capacity of about 2,700 megawatts using combined-cycle technology, along with a desalination capacity of 120 million imperial gallons per day. It is one of the largest projects undertaken by the authority to date, with a production capacity double that of the first phase of the North Zour North project. It is financially supported by a group of local and international banks, at a cost of more than one billion Kuwaiti dinars.
It is a reflection of the high level of confidence enjoyed by the investment and partnership environment in the State of Kuwait. Meanwhile, the Ministry of Electricity, Water and Renewable Energy invited regional and international companies specialized in the design, construction, operation, and maintenance of power and water desalination plants to explore investment opportunities and review the procedures of KAPP in order to participate in the Shagaya Renewable Energy Project-Phases One and Two, with a total production capacity of 1,600 megawatts; and the Khairan Plant Project (Phase One), which will produce 1,800 megawatts of electricity and 33 million imperial gallons of water per day.
The project will be tendered by the authority in September. Undersecretary of the Ministry of Electricity, Water and Renewable Energy Dr. Adel Al-Zamil confirmed that the North Zour Power Plant project (Phases II and III) is the largest in the history of its cooperation with Kuwait Authority for Partnership Projects (KAPP). In a press statement, Al-Zamil pointed out that the project is distinguished by its large size and the long period since a similar project was implemented; hence, it is considered a tremendous success for the energy sector.
He revealed the plant will provide 2,700 megawatts of electricity; making it the largest plant in the history of Kuwait, in addition to the production of 120 million imperial gallons per day of fresh water using the energy-saving reverse osmosis (RO) technology, which will contribute to reducing production costs and positively impact the State budget and future tariffs. He expressed optimism about the new partnership with Saudi Arabia’s ACWA Power, indicating this is the first of several other projects; such as the Khairan Phase One project and Shagaya Phases Three and Four solar and renewable energy projects, which are among the largest in the world.
He revealed that “in the next three years; we will witness the commencement of production from these projects, the expansion of the electricity grid, and the provision of better electricity and water services.” He said the first unit in the North Zour project will be operational in June 2028; followed by an additional 1,000 megawatts two months later. He added work is underway with ACWA Power to expedite the operation of the units and to overcome obstacles. He stated that the energy partnership projects include a roadmap to achieve zero carbon emission; affirming that the North Zour Phase Two and Three are among these projects, as well as the planned solar energy projects.
Regarding the Shagaya project, he said it is currently undergoing technical study by the Chinese side and that the ministry is awaiting its review; hoping to complete it in the coming months, in preparation for its implementation in order to be operational in 2028. He confirmed that Kuwait signed a memorandum of understanding with China on March 17; granting the Chinese side a renewable sixmonth grace period, with the hope of beginning implementation in the first quarter of 2026. Regarding the Khairan Station project-Phase One, he stated that it is currently being tendered; stressing that the group of proposed projects, if implemented according to the timetable, will contribute to improving the country’s energy situation by 2028. He added the year 2029 will witness the operation of the solar energy projects and North Zour, with a plan to modernize older stations like South Shuaiba and East Doha.
