Op­er­a­tions be­gin at Az­zour elec­tric­ity and wa­ter plant

First in­de­pen­dently-owned pro­ject to sell out­put to MEW

Kuwait Times - - FRONT PAGE - By Sara Ahmed

The first in­de­pen­dently-owned power and wa­ter plant in Kuwait, Az­zour North One, launched com­mer­cial op­er­a­tions yes­ter­day. Az­zour North One will gen­er­ate 10 per­cent of Kuwait’s power re­quire­ments (1,539 MW) and 20 per­cent of wa­ter needs (107 mil­lion gal­lons per day). The KD 519 mil­lion ($1.7 bil­lion) pro­ject was de­layed for years due to po­lit­i­cal in­fight­ing but fi­nally started construction in Dec 2013.

The power and wa­ter plant marks the first stage in a lengthy ef­fort by the gov­ern­ment to meet the state’s grow­ing power and wa­ter needs. It also rep­re­sents the first suc­cess­ful test case for the im­ple­men­ta­tion of the gov­ern­ment’s mega in­fra­struc­ture de­vel­op­ment plan and the pub­lic-pri­vate part­ner­ship model. Az­zour North One will be fu­eled by a blend of lo­cal gas and im­ported LNG. In 2015, Kuwait im­ported 3.1 mil­lion met­ric tons of LNG and has awarded a con­sor­tium to build a KD 882 mil­lion ($2.9 bil­lion) LNG im­port and re­gasi­fi­ca­tion ter­mi­nal at Az­zour.

Fall­ing un­der the first phase of the In­de­pen­dent Wa­ter and Power Pro­ject (IWPP), Az­zour North One is owned and op­er­ated by Shamal Az­zour Al-Oula KSC, which is 40 per­cent owned by a pri­vate con­sor­tium com­pris­ing ENGIE (for­merly GDF SUEZ), Su­mit­omo Cor­po­ra­tion, and Kuwait-based AH Al Sa­gar & Broth­ers. The re­main­ing 60 per­cent is owned by the gov­ern­ment of Kuwait, through the Kuwait In­vest­ment Au­thor­ity (5 per­cent), the Pub­lic In­sti­tu­tion for So­cial Se­cu­rity (5 per­cent), and Kuwait Au­thor­ity for Part­ner­ship Projects (50 per­cent).

The gov­ern­ment is man­dated to sell 50 per­cent of the to­tal own­er­ship through an ini­tial pub­lic of­fer­ing (IPO) to Kuwaiti cit­i­zens af­ter construction is com­pleted. The gov­ern­ment will re­tain a 10 per­cent stake fol­low­ing the IPO. All the power and treated wa­ter pro­duced from the plant will be bought by the Min­istry of Elec­tric­ity and Wa­ter (MEW) un­der a 40-year long-term deal.

(See Page 3)

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