Kuwait invites bidders for PPP power and water plants
Opening up the market to private stakeholders may reduce the public sector cost of scaling up power and desalination plants, improve production reliability, and bolster competition in Kuwait's energy market
Kuwait wants private sector firms to submit construction proposals for power and water desalination plants in a bid to reduce state costs and boost competition.
The Kuwait Authority for Partnership Projects (KAPP) has invited local, national, and international companies to issue an expression of interest (EOI) for up to two water and power projects: Al-Khairan Phase 1 and Az-Zour North 2 and 3.
The projects will be procured under a public-private partnership (PPP) model.
Using a PPP structure could bring the efficiencies and capital of the private sector to Kuwait's water and energy industry, which has traditionally been state-controlled.
Opening up the market to private stakeholders may reduce the public sector cost of scaling up power and desalination plants, improve production reliability, and bolster competition in Kuwait's energy market at a time when power demand is rising fast, KAPP said.
Scope of the work for Al-Khairan Phase 1 includes the design, build, finance, operation and transfer of a power generation and water desalination plant in Al-Khairan, about 100km south of Kuwait City.
The combined-cycle power plant will need to boast a net power capacity of 1,800MW, with a net water capacity of 125 million imperial gallons per day (MIGD).
Work for the Az-Zour North 2 and 3 will be the same as the scope required for the Al-Khairan Phase 1 project. However, the former will boast 2,700MW and 165MIGD.
It is Phase 2 of the Az-Zour North project, and will be located on the Az-Zour North site near the coast of the Arabian Gulf.
KAPP will accept EOIs on the two projects until 18 November, 2018.
Kuwaiti efforts to increase its reliable supply of energy and water comes amid rising power demand in the country. The oil-rich country is exploring various solutions to meet burgeoning power consumption and reduce its dependence on using oil to meet nationwide energy needs.
As part of this long-term ambition, Kuwait's Ministry of Electricity and Water wants renewable energy sources, such as solar and wind, to meet 15% of the country's energy demand by 2030.