US$4bn Az-Zour North Phase 2 & 3 Project Earmarked for Start-Up in 2029
By Simon West
ACWA Power and consortium partner Gulf Investment Cooperation (GIC) have signed a letter of agreement to develop the Az-Zour North Phase 2 & 3 Independent Water and Power Project (IWPP) in southern Kuwait.
The US$4 billion project is set to be Kuwait’s largest integrated power and water facility, with a net power generation capacity of at least 2,700 megawatts (MW) and a net desalinated water production capacity of 120 million imperial gallons per day.
Saudi-based ACWA Power said the project would greatly support Kuwait’s electricity generation and water security infrastructure and create employment opportunities for Kuwaiti talent during both construction and operational phases.
The letter agreement was inked with the Kuwait Authority for Partnership Projects Authority (KAPP) and the Ministry of Electricity, Water and Renewable Energy.
“This landmark agreement for the Az-Zour North Phase 2 & 3 IWPP reflects ACWA Power’s commitment to supporting Kuwait’s ambitious development agenda through a project of strategic national importance,” said Raad Al Saady, vice chairman and managing director of ACWA Power. “This investment highlights our commitment to Kuwait’s growth vision.”
According to ACWA Power, the facility will be developed under a 25-year build-operate-transfer (BOT) agreement, with the consortium designing, financing, building, operating and maintaining the plant before transferring ownership to the government.
The consortium will hold 40% of the project company, while KAPP will retain 60% of the share capital, half of which will be offered for public subscription by Kuwaiti citizens after the project becomes operational in 2029, the Saudi firm said.
“This project represents a landmark investment in GIC portfolio, utilizing the latest technologies and highest global standards in power generation and water desalination. GIC is committed to ensuring the provision of sustainable electricity and water resources at competitive economic costs to support Kuwait’s social and economic prosperity,” said Ibrahim Ali Al-Qadhi, CEO of Kuwait-based GIC.
ACWA Power is a member of the Breakbulk Global Shipper Network, a worldwide network of companies involved in the engineering, manufacturing and production of project cargo. The next in-person meet-up for BGSN members will be at Breakbulk Americas 2025.