Latest news with #GulfInvestmentCorporation
Zawya
2 days ago
- Business
- Zawya
ACWA Power-led consortium signs 25-year PPA for $4bln Az-Zour North 2 & 3 IWPP in Kuwait
The Saudi-Kuwaiti consortium of ACWA Power and Gulf Investment Corporation has signed a 25-year power and water purchase agreement (PWPA) with Kuwait Authority for Partnership Projects (KAPP) and the Ministry of Electricity, Water and Renewable Energy for the $4 billion Az-Zour North 2 and 3 Independent Water and Power Project (IWPP). Located in Al-Zour, south of Kuwait, the project will provide a net power generation capacity of 2,700 megawatts (MW) and net desalination capacity of 120 million imperial gallons per day (MIGD), according to a press statement by the Saudi-listed ACWA Power. The ACWA Power-led consortium will design, finance, build, operate, and maintain the plant under a Build–Operate–Transfer (BOT) model. KAPP will hold a 60 percent stake in the project company to be established for the project. Fifty percent of KAPP's share will later be offered to Kuwaiti citizens through a public subscription after the plant becomes operational and the company is listed on the Kuwait Stock Exchange, according to the statement. (Writing by Deva Palanisamy; Editing by Anoop Menon) (
Zawya
2 days ago
- Business
- Zawya
Kuwait signs contracts for $3.27bln power plant project
KUWAIT: The Kuwait Authority for Partnership Projects (KAPP) signed contracts on Sunday with Saudi's ACWA Power and the Gulf Investment Corporation for phases two and three of the Al-Zour North power plant. The value of these phases of the power plant exceeds 1 billion Kuwaiti dinars ($3.27 billion), the Kuwaiti authority's director general told Reuters. Asmaa Al-Mousa said that the investors, not the government, will bear the cost. The signing ceremony on Sunday sets in motion one of the country's biggest electricity projects as it seeks to address severe electricity shortages. Once completed, the Al-Zour North project will produce 2.7 gigawatts (GW) of power and 120 million gallons of water daily using combined-cycle technology, with construction set to take three years. Kuwait expects a significant improvement in electricity services once several major projects come online, including a large-scale venture with China, Adel Al-Zamel, the undersecretary of the Ministry of Electricity, Water and Renewable Energy said during the signing event. Since last year, the government has resorted to planned power cuts in some areas to reduce the load. "If (the projects) go according to plan, by 2028 our situation will be much better," Al-Zamel told reporters. Kuwait hopes to sign an implementation agreement with China in the first quarter of 2026 for phases three and four of the Shagaya renewable energy project, with a combined capacity of 3.2 gigawatts (GW), Al-Zamel said. ($1 = 0.3054 Kuwaiti dinars) (Reporting by Ahmed Hagagy Writing by Jaidaa Taha and Menna Alaa El-Din Editing by David Goodman, Elaine Hardcastle)
Zawya
2 days ago
- Business
- Zawya
Kuwait signs $3.27bln contracts for Al-Zour North power plant
The Kuwait Authority for Partnership Projects (KAPP) has signed contracts with Saudi Arabia's Acwa Power and the Gulf Investment Corporation for the second and third phases of the Al-Zour North power plant. The total cost for these phases exceeds 1 billion Kuwaiti dinars ($3.27 billion), according to Asmaa Al-Mousa, Director General of KAPP, who spoke with Reuters. Al-Mousa stated that the investors, not the government, will bear the cost. This signing marks the beginning of one of the largest electricity projects in Kuwait, aimed at tackling significant electricity shortages. Upon completion, the Al-Zour North project is expected to generate 2.7GW of power and supply 120 million gallons of water daily through combined-cycle technology, with construction anticipated to take three years. Kuwait anticipates a marked enhancement in electricity services as several major projects come online, including a substantial collaboration with China, as noted by Adel Al-Zamel, Undersecretary of the Ministry of Electricity, Water, and Renewable Energy, during the signing ceremony. Since last year, the government has implemented planned power cuts in certain areas to manage the load. "If these projects go according to plan, by 2028 our situation will be much better," Al-Zamel informed reporters. Furthermore, Kuwait aims to secure an implementation agreement with China in the first quarter of 2026 for phases three and four of the Shagaya renewable energy project, which boasts a combined capacity of 3.2GW, Al-Zamel added.
The National
2 days ago
- Business
- The National
Acwa Power leads consortium to develop $4bn Kuwait power and water project
Saudi Arabia's utility developer Acwa Power and its partner Gulf Investment Corporation have signed an agreement with Kuwait to develop two phases of Az-Zour North water and power plant with total investment of $4 billion. The agreement, signed on Sunday with the Kuwait Authority for Partnership Projects (KAPP), is intended to help the country address severe electricity shortages. The phases two and three of the Az-Zour North project will have a net power generating capacity of at least 2.7 gigawatts and a desalination capacity of 120 million gallons of water daily, Acwa Power and GIC said in a statement on Sunday. Under a 25-year agreement, the Acwa Power-led consortium will design, finance, build, operate, maintain and transfer the plant and its associated facilities. 'This investment highlights our commitment to Kuwait's growth vision,' Raad Al-Saady, managing director and vice chairman of Acwa Power, said. Electricity shortages The deal is in line with Kuwait's push to boost its electricity generating capacity and further build its water infrastructure. Kuwait, in the recent past, had to implement temporary power cuts in select industrial and agricultural areas as demand surged beyond the available capacity. This is not the first time Kuwait has grappled with electricity supply issues. Last summer, it resorted to rare scheduled power cuts as temperatures soared. Experts have long warned of an impending electricity crisis in Kuwait, citing indecision over the construction of power stations to meet rising demand. Additionally, much of the country's power infrastructure is outdated and requires frequent maintenance. Another key challenge in addressing the crisis is Kuwait's subsidy-driven energy model. The government provides heavily subsidised electricity to residents, leading to high consumption as customers have little financial incentive to reduce their consumption. Kuwait has set a target of generating 15 per cent of its electricity from renewable sources by 2030. Capital structure The Acwa Power-led consortium and KAPP will establish a project company, where the consortium will hold 40 per cent and KAPP will retain 60 per cent of the company's share capital, according to the statement. KAPP will then allocate 50 per cent of the company's capital for public subscription by Kuwaiti citizens after the project becomes fully operational by 2029 and is listed on the Kuwait Stock Exchange, the statement said. Kuwait-based GIC is equally owned by the six member states in the Gulf Co-operation Council. It has developed and owns 10 infrastructure projects in the region and has vast experience in the power and water and utilities sector in the Gulf. '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,' Ibrahim Al-Qadhi, chief executive of GIC, said. Acwa Power, backed by Saudi Arabia's sovereign wealth fund, the Public Investment Fund, is one of the largest renewable energy developers in the Middle East. It currently has operations in 15 countries across the Middle East, Africa, and Central and South-east Asia. It is an investor in and operator of 109 power generating and water desalination projects in operation, construction and advanced development with an overall portfolio size of about $117 billion.
Asharq Al-Awsat
2 days ago
- Business
- Asharq Al-Awsat
Kuwait Signs Contracts for Al-Zour North Power Plant Project
The Kuwait Authority for Partnership Projects (KAPP) signed contracts on Sunday with Saudi's ACWA Power and the Gulf Investment Corporation for phases two and three of the Al-Zour North power plant. The value of the phases of the power plant project exceeds 1 billion Kuwaiti dinars ($3.27 billion), the Kuwaiti authority's director general told Reuters. He said the investors, not the government, will bear the cost. The signing ceremony on Sunday sets in motion one of the biggest electricity projects in the Gulf country as it seeks to address severe electricity shortages. Once completed, the Al-Zour North project will produce 2.7 gigawatts (GW) of power and 120 million gallons of water daily using combined-cycle technology, with construction set to take three years.
