Bid & Tender

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Project Summary
Project Name: KAPP’s Khirran Independent Power and Water Project – Phase I
Facility Type: IWPP - Independent Water and Power Project
Client: Kuwait Authority for Partnership Projects (KAPP)
Budget (US $): Unknown
Project Initiation: Dec 05, 2010
Project Completion:: Not Given
Location: Al Khiran
Project Current Status

The Ministry of Electricity, Water and Renewable Energy (MEWRE) of Kuwait has extended bids submission to 2 April, 2024 for works at its planned Al-Zour North Phase 2&3 Independent Water and Power Project (IWPP) and the Al-Khiran 1 IWPP. The contract scope covers providing, implementing, initial operation and maintenance of the work of constructing the lines feeding the Khiran thermal station and developing the infrastructure for the fuel receiving systems for the Al-Zour station. (March 2024)

Project History
  • PTB has invited developers to express interest in the IWPP. Developers have until 15 March to submit an EoI. The selected developer will establish a joint stock company with the contract scheduled to establish an off-take agreement with Kuwait s Ministry of Electricity and Water .MEW. for a maximum period of 40 years. .December 2013.?
  • The PTB has received EoIs. .March 2014.
  • Kuwait s Ministry of Electricity and Water has planned a new power and water project with capacity 500MW and 50 million gallons per day. The environmental study for the project is set to be completed in about six months. .December 2010.?
  • The contractors to build a power plant at Khirran will be prequalified in September and tenders for the same will be issued in November 2011. .March 2011.
  • The EPC contractors to build a power plant at Khirran will be prequalified in September and tenders for the same will be issued in November 2011. .March 2011.
  • Expressions of interest has been invited from consultants to advise on the development of an IWPP at Khirran. The winning firm will assist the PTB in structuring, procuring and negotiating the transaction. In addition, the advisers will be responsible for carrying out environmental impact studies for the project. Consultants have until 1 March to notify the PTB of their intention to bid. A request for proposals will be issued in March 1st week. .February 2012.
  • Request for proposals .RFP. have been issued for the advisory contract of an independent water and power project .IWPP. at Khirran. Bids are to be submitted by mid-May. .March 2012.
  • Kuwait s PTB has appointed a consortium of the US Chadbourne & Parke, France s BNP Paribas and Germany s Lahmeyer International as its advisors for the development of the project. .March 2013.?
  • PTB, MEW discuss the development strategy for the proposed 3,000MW project. .September 2013.
  • Tenders are likely to be issued for the main contract in H1 2015. (November 2014)
  • List of pre-qualifiers expected imminently. Tender for Kuwait’s Khirran IWPP is expected to be issued in late 2015 or early 2016. (June 2015)
  • The pre-qualified groups have been announced on the project. They are - Abengoa of Spain, Acwa Power of Saudi Arabia, Korea Electric Power Company of South Korea, Marubeni of Japan, Mitsubishi of Japan, Mitsui of Japan, and Sumitomo of Japan / Osaka Gas Company of Japan / National Industries Holding Consortium. (August 2015)
  • The Al-Khiran IWPP will be tendered after Al-Zour North 2 to allow the same pre-qualified developers to prepare bids. (May 2016)
  • KAPP is planning to issue request for proposals (RFPs) to pre-qualified developers by Q1 2017 for the Al-Khiran project (IWPP). (December 2016)
  • Kuwait Authority for Partnership Projects (KAPP) has invited companies to express interest for its long delayed major schemes - the Al-Zour North 2 independent water and power project (IWPP) and the Al-Khiran IWPP – Phase I. Last date to submit Expressions of Interest (EoIs) is 18 November, 2018. (July 2018)
  • Developers have submitted interest in two major cogeneration plants - Al-Zour North Phase 2&3 IWPP and the Al-Khiran 1 IWPP. Tenders for the IWPPs will be issued in a gap of 6 months as contractors are interested in investing in both the projects and to enable financing this gap is important. (November 2018)
  • Firms have been invited to submit proposals for the transaction advisory role on Al-Zour North phase 2&3 IWPP and the Al-Khiran 1 IWPP. A single adviser will be selected for the two major IWPPs. (December 2018)
  • Bids have been submitted for the transaction advisory role on Al-Zour North phase 2&3 IWPP and the Al-Khiran 1 IWPP. The 3 bidding groups, each containing a lead financial adviser, legal adviser and technical adviser competing for the role are: Ernst & Young of UK / CMS of London / Mott Macdonald of UK, PwC of UK / Ashurst of UK / Fichtner of Germany, and SMBC of Japan / DLA Piper of UK / Atkins of UK. (April 2019)
  • Kuwait’s Ministry of Electricity and Water (MEW) has cancelled the advisory tender for the IWPP. It will be re-tendered shortly after amending the tender documents. (October 2019)
  • KAPP sets bids submission deadline as 25 June, 2020 for the advisory role tender on its planned Al-Zour North phase 2&3 independent water and power project (IWPP) and the Al-Khiran 1 IWPP. (June 2020)
  • The process of reissuing advisory tender documents has been put on hold as a result of the government shutdown in Kuwait. Three advisory consortia passed the technical evaluation stage earlier. (March 2020)
  • KAPP sets bids submission deadline as 25 June, 2020 for the advisory role tender on its planned Al-Zour North phase 2&3 independent water and power project (IWPP) and the Al-Khiran 1 IWPP. (June 2020)
  • Bids submission deadline has been extended for the advisory role on the planned Al-Zour North phase 2&3 independent water and power project (IWPP) and the Al-Khiran 1 IWPP. Bids are now due to be submitted by 23 July, 2020, extended from the last deadline of 25 June, 2020. (July 2020)
  • KAPP has received bids for the advisory role on its planned Al-Zour North phase 2&3 independent water and power project (IWPP) and the Al-Khiran 1 IWPP. The bidders are: Ernst & Young of UK, KPMG of Netherland, Pricewater house coopers (PWC) of UK, Rödl Middle East of Kuwait. The assigned advisor or consortium will be responsible to prepare and complete the feasibility studies for each project and the whole tendering process including preparing the request for qualification documents, the evaluation process, preparing the tendering documentation, supervising the technical, financial & legal aspects of the project, assisting the ministry throughout the procurement process until the financial close of the project. (August 2020)
  • KAPP has shortlisted bids for the advisory role on its planned Al-Zour North phase 2&3 independent water and power project (IWPP) and the Al-Khiran 1 IWPP. The shortlisted bidders are: Ernst & Young of UK, KPMG of Netherland, and Rödl Middle East of Kuwait. Pricewater house coopers (PWC) of UK proposal has been excluded from selection. (September 2020)
  • KAPP has announced financial bids for the advisory role on its planned Al-Khiran 1 IWPP. A consortium led by Ernst & Young (EY) of UK has submitted the lowest bid price of $3.9mn. The second lowest bid offer of $5.2mn has been submitted by a consortium led by KPMG. The two consortiums are: EY (finance) / Atkins (technical) / Addleshaw Goddard (legal), all of UK; KPMG Advisory of Kuwait (finance) / DLA Piper of UK (legal) / ILF Consulting of Austria (technical). (November 2020)
  • A consortium led by Ernst & Young (finance) with partners Atkins (technical) and Addleshaw Goddard (legal), all of UK for the transaction advisory role for Al-Khiran 1 IWPP. The assigned advisor or consortium will be responsible to prepare and complete the feasibility studies for project and the whole tendering process including preparing the request for qualification documents, the evaluation process, preparing the tendering documentation, supervising the technical, financial & legal aspects of the project, assisting the ministry throughout the procurement process until the financial close of the project. (February 2021)
  • Director of the PPP authority Fadhilah Al- Hassan said she expects the procedures for rehabilitating the alliances for the projects of the North Al-Zour Station (Phase 2 and 3), the Khairan station, would be resumed during Q4 of this year. (July 2021)
  • KAPP to soon issue the RFQ for its planned Al-Zour North phase 2&3 Independent Water and Power Project (IWPP) and the Al-Khiran 1 IWPP. RFP is set to be issued early next year. (October 2021)
  • KAPP in collaboration with the Ministry of Electricity & Water & Renewable Energy of the State of Kuwait (MEWRE) has issued the Request for Qualifications (RfQ) for its planned Al-Khiran 1 IWPP. The RfQ documents to participate in a tender must be submitted by 16 August, 2022. (August 2022)
  • Developers who submitted a statement of qualifications (SOQ) to develop Al-Zour North 2 & 3 and Al-Khiran 1 IWPP projects, include: Abu Dhabi National Energy (Taqa) of UAE, Acwa Power of Saudi Arabia, Jera of Japan, Kepco of South Korea, Mitsui of Japan, Nebras Power of Qatar, Sumitomo of Japan. (September 2022)
  • Kuwait Authority for Partnership Projects (KAPP) in collaboration with the Ministry of Electricity & Water & Renewable Energy (MEWRE) is set to issue the request for proposals (RFP) in this quarter for its planned Al-Zour North phase 2&3 Independent Water and Power Project (IWPP) and the Al-Khiran 1 IWPP. The contract scope involves the development, financing, design, procurement, engineering, construction, testing, commissioning, operation, maintenance and transfer of the IWPPs. (January 2023)
  • KAPP in collaboration with the Ministry of Electricity & Water & Renewable Energy (MEWRE) is set to reissue the request for qualifications for its planned Al-Khiran 1 IWPP. This would allow more companies to qualify to bid for the contract. The companies that submitted an SOQ earlier for the contract include: Abu Dhabi National Energy (Taqa) of UAE, Acwa Power of Saudi Arabia, Jera of Japan, Kepco of South Korea, Mitsui of Japan, Nebras Power of Qatar, Sumitomo of Japan. (April 2023)
  • KAPP in collaboration with the Ministry of Electricity & Water & Renewable Energy (MEWRE) has reissued the request for qualifications for its planned Al-Zour North phase 2&3 IWPP and the Al-Khiran 1 IWPP. Interested bidders have time until 11 July, 2023 to submit all required RFQ elements. This would allow more companies to qualify to bid for the contract. The companies that submitted an SOQ earlier for the contract include: • Abu Dhabi National Energy (Taqa) of UAE, • Acwa Power of Saudi Arabia, • Jera of Japan, • Kepco of South Korea, • Mitsui of Japan, • Nebras Power of Qatar, • Sumitomo of Japan. (June 2023)
  • KAPP has announced the shortlisted consortiums for the development of its planned Al-Zour North Phase 2&3 Independent Water and Power Project (IWPP) and the Al-Khiran 1 IWPP. The shortlisted bidders are: • Abu Dhabi National Energy (Taqa) of UAE / AH Al Sagar & Brothers of Saudi Arabia / Jera of Japan, • Acwa Power of Saudi Arabia / Gulf Investment Corporation of Kuwait, • China Power International Holding / Malakoff International of Malaysia / Abdul aziz Al Ajlan Sons and Company of Saudi Arabia, • Nebras Power of Qatar / Sumitomo of Japan. (December 2023)
  • The Ministry of Electricity, Water and Renewable Energy (MEWRE) of Kuwait has invited bids by 3 March, 2024 for works at its planned Al-Zour North Phase 2&3 Independent Water and Power Project (IWPP) and the Al-Khiran 1 IWPP. The contract scope covers providing, implementing, initial operation and maintenance of the work of constructing the lines feeding the Khiran thermal station and developing the infrastructure for the fuel receiving systems for the Al-Zour station. (February 2024)
Project Contract Awards - Feed
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
Project Contract Awards - PMC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • No Tendering Process
Project Contract Awards - EPC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • ACWA Power / Gulf Investment Corporation (GIC)
  • Abu Dhabi National Energy (Taqa) of UAE / AH Al Sagar & Brothers of Saudi Arabia / Jera of Japan
  • China Power International Holding / Malakoff International of Malaysia / Abdul aziz Al Ajlan Sons and Company of Saudi Arabia
  • Nebras Power of Qatar / Sumitomo of Japan
Related Projects
KAPP’s Al-Zour North IWPP – Phase II & III
Project Schedule

December 2010: Project Initiation 
August 2015: Shortlisting of bidders for the Main Contract

July 2018: Companies invited to express interest in bidding

November 2018: EoIs have been submitted for the main contract

November 2020: Bis Submission for Advisory Role

June 2023: The request for qualifications is reissued

December 2023: Firms Shortlisted for EPC

Project Scope

The project scope involves the development of an independent water and power project (IWPP) with power capacity of 1,800 MW and desalination capacity of up to 125 MIGD.

 

The Project will be the first phase of a major power generation and water production complex that will be developed over three phases at the Al-Khairan site and that is expected to provide a total capacity of 4,500 MW. It includes the development of shared facilities, including a seawater intake and outfall that will also be used by the subsequent phases.

 

It will be located to the south of the existing Al-Zour South power and water project and is to include a 400kV substation. Low-sulphur fuel oil, gas oil, crude oil and/or natural gas will be used to fire the plant. The desalination component will use multi-stage flash, multiple-effect distillation and/or reverse osmosis technology. 

 

The winning firm or group of firms will assist the PTB in structuring, procuring and negotiating the transaction. In addition to advising PTB at the tender stage, the advisers will be responsible for carrying out environmental impact studies for the project. 

 

A special purpose vehicle (SPV) will be established to design, build, finance, operate and maintain the IWPP. The SPV will sign an energy conversion agreement together with a power and water purchase agreement with the Ministry of Electricity & Water.

Project Structure:
The project client is KAPP, Kuwait’s public-private partnership (PPP) body which was formerly called the Partnerships Technical Bureau (PTB).
AbdulAzizAl Hedaib
Address: Second Floor, Touristic Enterprises Company, Al-Jahra Street, Shuwaikh Administrative Area
Designation: --
Department: Partnerships Technical Bureau
Phone: +965 2-4965-980
Fax: +965 2-4965-901
Email: ahedaib@mof.gov.kw