By: Utilities Middle east

ACWA Power earlier this week signed a Letter Agreement with its consortium partner Gulf Investment Corporation (GIC), the Kuwait Authority for Partnership Projects (KAPP) and the Ministry of Electricity, Water and Renewable Energy (MEWRE) to develop the Az-Zour North Phase 2 & 3 Independent Water and Power Project (IWPP) in southern Kuwait.

According to a report by ESG MENA, valued at over USD 4 billion, the project will provide at least 2,700 megawatts (MW) of power generation capacity and 120 million Imperial Gallons per Day (MIGD) of desalinated water. It is expected to significantly strengthen Kuwait’s electricity and water security while creating employment opportunities for Kuwaiti nationals during construction and operation.

According to the report, the 25-year offtake agreement will see the ACWA Power-led consortium design, finance, build, operate, maintain and transfer the facility under a Build-Operate-Transfer (BOT) model. A project company will be established, with the consortium holding 40% and KAPP retaining 60% of share capital. Half of KAPP’s stake will be offered for public subscription to Kuwaiti citizens once the project is operational in 2029 and listed on the Kuwait Stock Exchange.

GIC CEO Ibrahim Ali Al-Qadhi said the development would deliver sustainable power and water at competitive costs, in line with Kuwait’s economic and social objectives. ACWA Power Managing Director and Vice Chairman Raad Al-Saady described the agreement as a “landmark” that aligns with Kuwait’s growth vision, underscoring the company’s commitment to energy transition and water security.