Bid & Tender
Project Summary
Project Name: KAPP's Al-Zour North IWPP - Phase II & III
Facility Type: Power & Desalination Plant
Client: Kuwait Authority for Partnership Projects (KAPP)
Budget (US $): 4,200,000,000
Project Initiation: Not Given
Project Completion:: Sep 10, 2029
Location: Al Zour
Project Current Status

The developer’s consortium – Acwa Power of Saudi Arabia and Gulf Investment Corporation of Kuwait – has signed a 25-year Energy Conversion Agreement (ECA) and Water Purchase Agreement (WPA) worth $4.1 billion with Kuwait’s Ministry of Electricity, Water and Renewable Energy for the Az-Zour North Phase 2 and 3 IWPP. The project will have a net power generation capacity of 2,700 MW and net desalination capacity of 545,500 m3/day. The construction contract was awarded to a consortium led by SEPCO-III, and the combined-cycle gas turbines are being supplied by GE Vernova. (February 2026)

Project History
  • PTB has invited expressions of interest (EoI) for the second phase of its independent water and power project (IWPP) at Al-Zour North. Companies have time until 27 June to submit documents. (April 2013)
  • The client and advisers, met companies, banks and export credit agencies (ECAs) to test market appetite for the project. Request for pre-qualification is expected to be issued later this year. (May 2014)
  • PTB is in process of preparing tender documents for the project; it will then seek to invite pre-qualification and proposals. (June 2014)
  • Tenders are likely to be issued for the main contract in H1 2015. (November 2014)
  • The pre-qualification entries have been submitted for the IWPP project. (April 2015)
  • Ground works to issue tender for the phase II IWPP have been completed. Tender is expected to be issued in July month. List of pre-qualifiers expected imminently. (July 2015)
  • PTB pre-qualifies seven groups for the IWPP development contract. (August 2015)
  • PTB has issued tenders to the pre-qualified companies for the development of IWPP. (September 2015)
  • Bids are due to be submitted in January 2016 for the contract to develop phase 2 IWPP at Al-Zour North. (October 2015)
  • KAPP has extended the bid submission deadline for the 4th time for the project. Bids are now due on 10 May. (March 2016)
  • KAPP has again extended the bid submission deadline. Bids are now due on 21 June. (May 2016)
  • KAPP has imposed restrictions, ruling out refinancing and equity bridge loans, this will raise the project development costs. (May 2016)
  • Bids have been submitted for the main contract of the IWPP project. The bidders are Acwa Power of Saudi Arabia / Mitsui of Japan / Al-Mulla Group Holding of Kuwait, Marubeni Corporation of Japan / Fouad al-Ghanim & Sons of Kuwait, and Sumitomo Corporation of Japan / Osaka Gas Company of Japan / National Industries Holding Group of Kuwait. (June 2016)  
  • Client is still assessing bids. (August 2016)
  • Client is still evaluating technical bids for the project contract. (September 2016)
  • Two bidders have been invited for clarification meeting for the planned IWPP. They are Marubeni Corporation of Japan / Fouad al-Ghanim & Sonsof Kuwait, and Sumitomo Corporation of Japan / Osaka Gas Company of Japan / National Industries Holding Group of Kuwait. (October 2016)  
  • Client is set to open the financial bids for the contract to develop the IWPP in the first half of February. (February 2017)
  • The commercial proposals are expected to be opened in the first two weeks of March. (February 2017)
  • Two groups remain in the running for second IWPP. (June 2017)
  • Client asks remaining bidders to extend bonds for second time. (July 2017)
  • 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)

  • 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)

  • 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 retendered shortly after amending the tender documents. (October 2019)
  • 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-Zour North phase 2&3 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-Zour North phase 2&3 independent water and power project (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-Zour North phase 2&3 Independent Water and Power Project (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 re-issue the request for qualifications for its planned Al-Zour North phase 2&3 Independent Water and Power Project (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)
  • 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)
  • KAPP has invited bids by 30 June, 2024 for the development of its planned Al-Zour North Phase 2&3 Independent Water and Power Project (IWPP). The bidders pre-qualified to submit bid 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 (April 2024)
  • The Ministry of Electricity, Water and Renewable Energy (MEWRE) of Kuwait has extended bids submission to 12 May, 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. (April 2024)
  • MEWRE of Kuwait has extended the bids submission deadline to 11 June, 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. (May 2024)
  • MEWRE of Kuwait has extended the bids submission deadline to 16 July, 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. (June 2024)
  • MEWRE of Kuwait has extended the bids submission deadline to 18 August, 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. (August 2024)
  • MEWRE of Kuwait has extended the bids submission deadline to 8 September, 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. (August 2024)
  • KAPP has extended the bids submission deadline to 30 September, 2024 for a contract to develop and operate the planned Al-Zour North Phase 2&3 Independent Water and Power Project (IWPP). (August 2024)
  • MEWRE of Kuwait has extended the bids submission deadline to 8 September 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. (August 2024)
  • KAPP has extended the bids submission deadline to 30 December, 2024 for a contract to develop and operate the planned Al-Zour North Phase 2&3 Independent Water and Power Project (IWPP). (November 2024)
  • KAPP has received a bid for the contract to develop and operate the planned Al-Zour North Phase 2&3 IWPP. The only bidder who submitted a bid is the consortium of Acwa Power of Saudi Arabia and Gulf Investment Corporation of Kuwait. (January 2025)
  • KAPP has opened the financial envelopes for the Az-Zour North Phases 2&3 IWPP. The session was attended by representatives of the qualified bidder. The only bidder who submitted a bid is the consortium of Acwa Power of Saudi Arabia and Gulf Investment Corporation of Kuwait. (May 2025)
  • The developer’s consortium comprising Acwa Power of Saudi Arabia and Gulf Investment Corporation of Kuwait has partnered with Shandong Tiejun Electric Power Company (Sepco 3) of China for the EPC contract for Az-Zour North Phases 2&3 Independent Water and Power Project (IWPP). (June 2025)
  • The developer’s consortium comprising Acwa Power of Saudi Arabia and Gulf Investment Corporation of Kuwait has signed the Letter of Agreement with the KAPP and the Ministry of Electricity & Water & Renewable Energy (MEWRE). Under a 25-year offtake agreement, the Acwa Power-led consortium will design, finance, build, operate, maintain and transfer the plant and its associated facilities under a build, operate and transfer model. The consortium and Kapp will establish a project company in which the former will a hold 40% stake and Kapp will retain the other 60% share capital. The total investment cost in the project exceeds $4 billion. (August 2025)
  • Kuwait has officially established a new public joint stock company, the Gulf Alliance for Power & Water Company, to manage phases two and three of the Al-Zour North IWPP project, which includes a 2,700 MW power plant and a 120 million imperial gallons per day (MIGD) desalination plant, with a total value of approximately $4 billion. The company will be responsible for the construction, implementation, management, operation and maintenance for the IWPP. The authorized share capital amounts to 197 million Kuwaiti dinars ($639 million). This capital is divided into 1.97 billion shares, each with a nominal value of 100 fils. The paid-up capital at the time of establishment is KD 49.2mn. (October 2025)
  • The MEWRE of Kuwait has awarded a contract worth KWD 57.2 million (USD 186.2 million) to Heavy Engineering Industries and Shipbuilding Company (HEISCO) of Kuwait 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 power plant and developing the infrastructure for the fuel receiving systems for the Al-Zour Plant. (November 2025)
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
  • Sumitomo Corporation of Japan
  • Sepco III of China
  • Nebras Power of Qatar
  • 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
  • ACWA Power / Gulf Investment Corporation (GIC)
  • Sepco III of China
  • ACWA Power / Gulf Investment Corporation (GIC)(Project Development Contract)
  • Sepco III of China(EPC Contract)
Related Projects
Kuwait PTB s Al Zour North IWPP  Desalination Supply Unit
Kuwait PTB’s Al Zour North IWPP – Phase I
KAPP's Khirran Independent Power and Water Project - Phase I
KAPP’s Al-Zour North IWPP – Phase III
Project Schedule

August 2015: Shortlisting of firms for the main contract
September 2015: Invitation to bid for the main contract

June 2016: Bids Submission EPC

2017: Tender for the EPC contract has been cancelled

July 2018: Companies invited to express interest in bidding for the main contract

November 2018: EoIs have been submitted

November 2020: Bids Submission for Advisory Role

June 2023: The request for qualifications is reissued

December 2023: Firms Shortlisted for EPC

April 2024: Invitation to Bid for EPC of Al-Zour North Phase 2&3 IWPP

January 2025: Bid Submission EPC

May 2025: Contract Awarded for the Development of Al-Zour North Phase 2&3 IWPP

June 2025: Contract Awarded EPC

Q3, 2029: Expected Start-up and Commissioning

Project Scope

The project scope comprises building phase II of an independent water and power project (IWPP) at the Al-Zour North Site on the Arabian Gulf coast approximately 100 km south of Kuwait City.

 

The Al-Zour Phase 2&3 IWPP will merge the previously planned second and third phases, and will have a generation capacity of 2,700 MW and a desalination capacity of 165 million imperial gallons a day (MIGD).

 

The scope of work involves the development, design, engineering, construction, ownership, operation and maintenance.

 

The project will use natural gas as its main fuel and gas oil as back-up fuel. Gas and gas oil will be provided by the Electricity and Water Ministry. The desalination plant will use either a 100 per cent thermal process or a hybrid process. In the case of a hybrid solution, the capacity of the reverse osmosis plant is not to exceed 25 per cent of the total desalination capacity. 
Az-Zour North site is a complex of power generation and water production which is expected to be developed in five phases.

 

The fuel natural gas will be delivered 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).

Project Structure:
KAPP, Kuwait's public-private partnership (PPP) body which was formerly called the Partnerships Technical Bureau (PTB), is overseeing the development of the scheme in partnership with the Ministry of Electricity & Water (MEW). KAPP will oversee the creation of a joint stock company, which will build, operate and transfer (BOT) the project for an investment period of 25 years. The project company will sign an Energy Conversion and Power Purchase Agreement (ECPA) with the MEW.
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