The Kuwait Authority for Partnership Projects (KAPP) has signed a commitment agreement to implement the second and third phases of the North Al-Zour Power and Water Project.
The move comes in collaboration with the Kuwait Ministry of Electricity, Water and Renewable Energy, in line with the country’s strategy to strengthen national infrastructure and meet rising utility demands.
The contract was awarded to a consortium led by ACWA Power and the Gulf Investment Corporation, who will design, finance, construct, operate, and maintain the new facility. The project will be structured as a public-private partnership (PPP), with public shares to be floated during execution.
The second and third phases represent a major milestone in Kuwait’s national development plan, aiming to boost electricity production and water desalination capacity to support future infrastructure and economic expansion.
The project mirrors the government’s strategy to involve the private sector in large-scale infrastructure development, leveraging its expertise to accelerate execution, enhance operational efficiency, and attract foreign direct investment.
It marks a pivotal step in reinforcing Kuwait’s electricity and water supply to meet increasing demand, while also supporting the national grid and future development goals, KAPP stated.
Upon completion of the upcoming phases, the Al-Zour complex will double its current capacity, which stands at 2,700 megawatts of electricity and 120 million imperial gallons of desalinated water per day.
The total value of the new phases exceeds $3.2 billion (KD 1 billion), with participation from a consortium of local and international banks. The financial framework underlines the confidence of global institutions in Kuwait’s PPP model and long-term infrastructure roadmap.
The Al-Zour initiative is part of a broader strategy to diversify energy sources, ensure sustainable water and electricity supplies, and involve the private sector in key national projects under the country’s economic diversification goals.
