Al-Zour North IWPP Phase 2 & 3

The Al-Zour North Independent Water and Power Project (IWPP) Phase 2 & 3 is a major infrastructure initiative designed to expand Kuwait’s power generation and water desalination capacity. Located approximately 100 kilometers south of Kuwait City, the project builds on the success of Al-Zour North Phase 1 and is situated adjacent to the Az-Zour South power complex.^{1 2}

It forms part of Kuwait’s broader strategy to enhance energy security and water sustainability through public-private partnerships (PPPs) and the deployment of advanced technologies.³

The project’s vision is “to deliver reliable, efficient, and sustainable energy and water services to meet Kuwait’s growing demand.” It seeks to add 2,700 megawatts (MW) of power generation capacity, produce no less than 120 million imperial gallons per day (MIGD) of desalinated water, and utilize liquefied natural gas and high-pressure natural gas, with gas oil as a backup fuel.^{4 5}

To implement this vision, a master plan was prepared under the Kuwait Authority for Partnership Projects (KAPP) in collaboration with the Ministry of Electricity, Water and Renewable Energy (MEWRE). The plan outlines the financing, design, construction, operation, and maintenance of the IWPP facility, followed by its eventual transfer to KAPP.^{6 7} The master plan includes:⁸

• A 400 kV transmission substation connecting the facility to the national grid
• A 25-year Energy Conversion and Water Purchase Agreement (ECWPA) with MEWRE
• A Public-Private Partnership (PPP) agreement extending up to 27 years and 8 months.

These tools ensure PPP, long-term operational efficiency, and reliable service delivery. Commercial operations are planned to begin following final contract awards and construction, marking a 25-year operational period thereafter.

The lead authorities of Al-Zour North IWPP Phases 2 & 3 are the Kuwait Authority for Partnership Projects (KAPP) and the Ministry of Electricity, Water and Renewable Energy (MEWRE). Consortium partners include TAQA, ACWA Power, China Power International, Nebras Power, and Sumitomo Corporation.^{9 10} Advisory roles are held by Ernst & Young (Financial), Addleshaw Goddard (Legal), and Atkins (Technical and Environmental).¹¹

Project milestones include the launch of Expressions of Interest (EOI) in July 2018, announcement of qualified bidders in December 2023, issuance of the Request for Proposals (RFP) in March 2024, opening of financial bids in May 2025, and a submission deadline of June 30, 2025.^{12 13} Once implemented, the project will significantly increase Kuwait’s energy and water production capacity through a sustainable PPP model.