Az-zour North 1 IWPP shares to be sold
Located nearly 100 km south of Kuwait City, the $1.7bn gas fired Az-zour North 1 cycle power and desalination plant started commercial operations in November, with a capacity of 1,500MW
Plans are underway by the Kuwaiti government to sell 50% of its shares in Az-Zour North 1 Independent Water & Power Project (IWPP) to the public by mid-2017.
Located nearly 100 km south of Kuwait City, the $1.7bn gas fired Az-zour North 1 cycle power and desalination plant started commercial operations in November, with a capacity of 1,500MW.
It is 40% owned by three partners: France's Engie , Japan's Sumitomo Corporation and Kuwaiti firm AH Al Sagar & Brothers, while the rest of the stake is with Kuwait's sovereign wealth fund KIA, the Public Institution for Social Security, and the PPP body Kuwait Authority for Partnership Projects (KAPP), said Kuna news agency.
Built on the public-private partnership (PPP) model, the Az-Zour North One boasts a daily capacity of about 480,000 tonnes, accounting for 12% of the installed generation capacity and about 23% of the installed desalination capacity in Kuwait.
A long-term 40-year Energy Conversion and Water Purchase Agreement was sealed in 2013 by the government with the partners and the plant was completed on schedule in under three years from the start of construction on November 26.
Under this, all of the power and water generated through the project will be supplied to the Ministry of Electricity and Water of Kuwait.
As per the deal, the government is mandated to sell 50% of its ownership to Kuwaiti citizens, through an IPO. However, it will retain 10% stake following the IPO.