Acwa-led consortium signs $4.1B power, water purchase deal in Kuwait

A consortium led by Acwa Co. signed a power and water purchase agreement worth approximately $4.1 billion with the Ministry of Electricity, Water and Renewable Energy (MEWRE) for the Al-Zour North Phase 2 and 3 Independent Water and Power Project (IWPP) in Kuwait.

In a statement to Tadawul today, Feb. 3, Acwa said the Al-Zour North project (Phases 2 and 3) consists of a combined-cycle gas turbine (CCGT) power plant with a generation capacity of 2,700 MW. It also includes a seawater desalination plant using reverse osmosis technology, producing 545,500 cubic meters of desalinated water per day.

The project will be developed under a Build-Operate-Transfer (BOT) model through a 25-year Energy and Water Purchase Agreement (ECWPA) starting from commercial operations, under which the ministry will purchase the full electricity and water output produced by the project throughout the agreement period.

The agreement was signed between the ministry and Gulf Alliance for Energy and Water Co., owned by the Kuwait Authority for Partnership Projects (KAPP), Acwa, and Gulf Investment Corporation (GIC).

The related financial impact will be announced at the financial close stage, the company noted, adding that its stake in the project is 24%.