ACWA Power and GIC to Develop USD 4 Billion Az-Zour North Phase 2 & 3 IWPP in Kuwait

ACWA Power along with 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 a total investment exceeding USD 4 billion, the megaproject will deliver at least 2,700 MW of net power generation capacity and 120 million imperial gallons per day (MIGD) of desalinated water. This dual-purpose facility will play a pivotal role in strengthening Kuwait’s power supply and water security, while generating employment opportunities for Kuwaiti professionals during construction and operation.

Under a 25-year offtake agreement, the ACWA Power-led consortium will design, finance, build, operate, maintain, and transfer the facility under a Build-Operate-Transfer (BOT) model. A dedicated project company will be established, with the consortium holding 40% equity and KAPP retaining 60%. Once the project is commissioned in 2029, KAPP will allocate 50% of the company’s shares for public subscription to Kuwaiti citizens, with listing planned on the Kuwait Stock Exchange.