Inbizzy, Kuwait City, Kuwait – ACWA Power, the world’s largest private water desalination company and a leader in renewable energy, along with its consortium partner Gulf Investment Corporation (GIC), has signed a Letter Agreement with 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.
With an investment exceeding USD 4 billion, the project will become Kuwait’s largest integrated power and water facility, delivering at least 2,700 megawatts of net power generation and 120 million imperial gallons per day (MIGD) of desalinated water, significantly enhancing the nation’s energy and water security infrastructure.
BOT Model and 2029 IPO Plan
Under a 25-year offtake agreement, the ACWA Power-led consortium will design, finance, build, operate, maintain, and transfer the plant and its related facilities under a Build-Operate-Transfer (BOT) model.
The consortium and KAPP will establish a project company, with 40% ownership by the consortium and 60% by KAPP. Once the project is fully operational in 2029, KAPP will offer 50% of the company’s shares for public subscription to Kuwaiti citizens and list them on the Kuwait Stock Exchange.
GIC CEO Ibrahim Ali Al-Qadhi stated:
“We are proud to contribute to the development of Kuwait’s strategic infrastructure through the Az-Zour North Phase 2 & 3 IWPP. This project is a landmark investment in GIC’s portfolio, utilizing the latest technologies and the highest global standards in power generation and water desalination. GIC is committed to ensuring sustainable electricity and water resources at competitive economic costs to support Kuwait’s social and economic prosperity.”
ACWA Power Vice Chairman and Managing Director Raad Al Saady added:
“This agreement for Az-Zour North Phase 2 & 3 IWPP reflects ACWA Power’s commitment to supporting Kuwait’s ambitious development agenda. We will bring our global project experience and apply our expertise in the BOT model in close partnership with our Kuwaiti counterparts, enhancing reliable and sustainable delivery of power and water, and advancing energy transition and water security.”
The Az-Zour North Phase 2 & 3 IWPP marks a critical step in Kuwait’s efforts to strengthen its energy and water resilience amid rising domestic demand. Backed by cutting-edge technology, global best practices, and strong public-private collaboration, the project is set to meet electricity and water needs while boosting economic stability, creating jobs, and supporting the country’s shift toward sustainable energy.
