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Az-Zour North IWPP (Phase 2)

Az-Zour North site is a complex of power generation and water production which is expected to be developed in five phases. The Partner...
 

Az-Zour North site is a complex of power generation and water production which is expected to be developed in five phases.

The Partnerships Technical Bureau in collaboration with Ministry of Electricity and Water is in the process of executing the second phase of Az-Zour North Complex Independent Water and Power Producer (“IWPP”) project  (the “Project”) involves the development, design, engineering, construction, operation, maintenance and transfer of a power and desalination plant with a capacity of at least 1,500 MW and 102 MIGD. The Project also includes the sale and purchase of associated power and water by the Ministry of Electricity and Water  pursuant to an Energy Conversion and Water Purchase Agreement (ECWPA) for a term of no more than 40 years in accordance with laws 39/2010, 28/2012 and 7/2008.

Other significant agreements include a Land Lease Agreement for the use of the site and a Shareholders Agreement for the establishment and management of the Project Company.

The project will be located at the Az-Zour North Site on the Arabian Gulf coast approximately 100 KM south of Kuwait City.

It is expected that the project will apply Combined Cycle Gas Turbine technology and an open source desalination technology as per the tendering documents requirements.

The net contracted capacity shall be at least 1,500 MW and the net contracted water capacity shall be at least between 102.

The distillate water will be re-carbonated prior to delivery to the AZ-ZOUR WDC reservoir through 4 new pipelines (1600) constructed by MEW.  The project developer shall be responsible to construct a 400 KV substation to evacuate the generated power.

The plant will be fired with fuel (natural gas) as main fuel and with fuel oil (gas oil) as back-up fuel.

The fuel natural gas will be delivered by the MEW through one new pipeline (40”) constructed by KPC/KOC. As for the gas oil it will be delivered by MEW through one new pipeline (16”) branched from new pipeline (24”) constructed by KPC/KOC.

Shared facilities for all phases in AZ-ZOUR North complex will be operated and maintained by a company. The Project company for phase-2 will be transferred shares from the shared facilities company. The SPV for phase-2 will be granted the right to use and to remain connected to the shared facilities (Gas oil fuel facility, product water common header, outlet culverts and outfall, connection to 400 KV substation).



  • Q2

    2013
    Appointment of Transaction Advisory
Email: a.alhedaib@ptb.gov.kw
 


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Main Contact
azn2@ptb.gov.kw
Public Entity

Ministry of Electricity & Water

http://www.mew.gov.kw

Timeline

  • Q2

    2013
    Appointment of Transaction Advisory
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