Water desalination company ACWA Power led a consortium on Sunday with Gulf Investment Corporation to sign an agreement, which will see multiple entities in the public and private sector work together to develop a $4 billion energy project in Kuwait, as per an official press release.
To secure the project, both companies had to sign an official agreement with the Kuwait Authority for Partnership Projects Authority and the Ministry of Electricity, Water, and Renewable Energy.
ACWA Power project will contribute Kuwait energy sector
The project is expected to yield a total net power generation capacity of 2,700 MW and water production capacity of 120 million gallons per day.
“This landmark agreement for the Az-Zour North Phase 2 & 3 IWPP reflects ACWA Power’s commitment to supporting Kuwait’s ambitious development agenda through a project of strategic national importance,” said ACWA Power’s Managing Director Raad Al Saady.
ACWA Power’s consortium will be tasked with designing and building the plants in the Southern region of Kuwait, along with maintaining and operating the facilities as part of a 25-year agreement.
“This project represents a landmark investment in GIC portfolio, utilising the latest technologies and highest global standards in power generation and water desalination,” said Gulf Investment Corporation CEO Ibrahim Ali Al-Qadhi
The update comes alongside a flurry of other investments in the energy sector by the Middle Eastern country as it continues to struggle with a power crisis.
As per an Arab Weekly report, Kuwait has blamed cryptocurrency mining as one of the major reasons for the energy deficit, a similar approach adopted by Iran when it faced power outages.
ACWA Power has also been active in the energy sector, signing multiple agreements in July with international partners for renewable energy exports to Europe.
Source: Google Finance