ACWA Power Company (acwa) led consortium signs an Energy Conversion and Water Purchase Agreement for Az-Zour North Phase 2 & 3 IWPP in Kuwait.
The value of the contract is approximately USD 4.1 Billion.
Az Zour North 2&3 Project is a Combined Cycle Gas Turbine (CCGT) plant with a power capacity of 2,700 Megawatts (MW). Furthermore, the Project will comprise a desalination component that will utilize Seawater Reverse Osmosis (SWRO) technology to produce c. 545.5 thousand m3/day.
The Project will be developed on a Build, Operate and Transfer (BOT) basis under a 25-year Energy Conversion and Water Purchase Agreement (ECWPA) with Ministry of Electricity, Water and Renewable Energy “MEWRE” under which MEWRE will purchase the entire Power and Water Capacity of the Plant.
The ECWPA was signed between MEWRE and Gulf Alliance for Power and Water (K.S.C.P), which is owned by Kuwait Authority for Partnership Projects (“KAPP”), acwa, and Gulf Investment Corporation (“GIC”). acwa’s effective share in the project is 24%.
The project is located approximately 100 kilometers south of Kuwait City, adjacent to the existing Az-Zour North Phase 1 facility, along the southeastern coastline of the State of Kuwait near the Kuwaiti-Saudi border. It will comprise a combined cycle gas turbine (CCGT) power plant fueled by natural gas, with gasoil back-up, alongside a seawater reverse osmosis (RO) desalination facility.
The project company will be jointly owned by Acwa and GIC with a combined 40% stake, while the Kuwait Authority for Partnership Projects (KAPP) will hold the remaining 60%. Fifty percent of total shares will be offered for public subscription to Kuwaiti citizens once the project becomes fully operational and is listed on the Kuwait Stock Exchange.
Under the ECWPA, MEWRE will purchase the entire net dependable power capacity and net dependable water capacity of the plant, supporting the State of Kuwait’s long-term plans to meet growing electricity and water demand through large-scale, efficient and reliable infrastructure projects.
The project will be executed by an international and local EPC consortium led by SEPCO-III, and the project’s gas turbines will be supplied and serviced by GE Vernova, while Acwa Operations will be responsible for the long-term operation and maintenance of the project throughout its 25-year term.
Read Also: Kuwait Short-listed the Bidders for 4.5GW Az-Zour North and Al-Khairan IWPP Projects
Earlier, during August 2025, the consortium signs the Letter of Agreement for the project. (read more)
