KUWAIT CITY (Dispatches) – Kuwait has opened bids for the first phase of the 1.8 gigawatt Al Khairan power and water project, aimed at addressing the country’s growing power shortages, the Kuwait Authority for Partnership Projects (KAPP) said.
The Al Khairan Phase 1 Independent Water and Power Producer (IWPP) project will also produce 125 million imperial gallons of water per day, KAPP said, as Kuwait grapples with increasing electricity demand driven by rapid population growth, urban expansion, rising temperatures, and maintenance delays at existing plants.
Pre-qualified international consortia invited to submit bids include a group led by Abu Dhabi National Energy Company (TAQA), another led by Saudi Arabia’s ACWA Power, and a third led by China Power International Holding. Other qualified companies involved are Nebras Power and Sumitomo Corporation.
The project will be developed under a public-private partnership (PPP) model involving the financing, design, construction, operation, maintenance, and eventual transfer of the facility, which will be located about 100 kilometers south of Kuwait City along the Gulf coast.
The winning bidder will establish a project company to sign a 25-year agreement to sell power and water to the Kuwaiti government, KAPP said.
Under the PPP framework, the strategic partner—whether Kuwaiti, foreign, or a consortium—will hold between 26% and 44% of the company’s shares. Kuwaiti citizens will be offered a 50% stake, with the remainder retained by the government.
Separately, in August, KAPP signed contracts worth over $3.27 billion with ACWA Power and Gulf Investment for the development of Al-Zour North phases 2 and 3.