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Kuwait invites bids on 1.8 GW water and power project

Kuwait has opened the bids for phase one of the Al Khairan water and power project. The project is a 1.8-gigawatt energy source that aims to alleviate Kuwait's power shortages.

Kuwait Authority for Partnership Projects invited pre-qualified international consortiums to submit bids for Al Khairan Phase 1 independent water and power producer project. The project will also produce 125 millions imperial gallons per day of water.

Kuwait, a member of OPEC and a major oil producer, is facing a severe electricity shortage because of rapid population growth, urbanization, rising temperatures, and maintenance delays in certain plants. The government has had to impose planned cuts to power in some areas as early as last year.

Three consortiums were invited to submit their proposals. One was led by Abu Dhabi National Energy Company, the other by Saudi Arabia’s ACWA Power and the third by China Power International Holding. Nebras Power, Sumitomo Corporation and other qualified companies include.

KAPP announced in an announcement on Sunday that the project would be developed using a public-private model. It will include "financing and design, construction, operations, maintenance, and transfer" for the plant. The plant will be located about 100 km south of Kuwait City, along the Gulf Coast, according to the newspaper Al-Rai.

KAPP stated that the winning bidder would form a project firm to sign a deal for 25 years to sell water and power to the government.

PPPs allow companies to be set up for the purpose of executing projects that are managed by a partner. The Kuwaiti partner can be a foreign investor or a group of investors.

Kuwaiti citizens are offered a 50% stake, with the remaining being retained by the government.

KAPP signed contracts worth over $3.27billion in August with ACWA Power, Gulf Investment and Al-Zour North Phases 2 and 3. Reporting by Ahmed Hagagy, Kuwait; Editing and proofreading by Ros Russell

(source: Reuters)