Kuwait's Central Agency for Public Tenders has agreed to award the transaction advisory contract in line with the planned privatization of the North Shuaiba power and water plant (NSPP) to a team led by the UK-headquartered consultancy Deloitte.
The Deloitte-led consortium submitted a low bid of KD1.2mn ($3.9mn) for the transaction advisory contract. The consortium includes Sargent & Lundy as technical adviser, Canada's Gowling as legal adviser, and the local Markaz as an investment bank.
A team led by Ernst & Young (EY), also UK-based, submitted the second-lowest bid of KD1.36mn.
The proposed privatization programme will have three phases, according to the project owner. The initial phase covers establishing a Kuwaiti shareholding company, which will own the NSPP assets. The selected consultants will undertake a valuation of the company and its assets, and draft the energy conversion and water purchase agreement (ECWPA) between the shareholding company and the Electricity & Water Ministry (MEW), which currently owns the asset.
Phase 2 will cover tendering the shares of the shareholding company and the required rehabilitation measures to improve plant efficiency. The third phase will involve transferring shares to employees and the public.
The first phase is expected to be completed within 14 months, the second in 29 months and the third in 36 months.
Built on an engineering, procurement and construction (EPC) lump-sum turnkey basis in 2010-12, the North Shuaiba power and water desalination plant has been selected as the country’s pilot privatization project.
