Kuwait opens bidding for 1.8-GW power and water project

KUWAIT CITY, September 2, 2025 – Kuwait has invited bids for the first phase of the 1.8-GW Al Khairan power and water project, Reuters reported on Monday.

Three international consortiums have been invited by the Kuwait Authority for Partnership Projects (KAPP) to submit proposals. They are led by Abu Dhabi National Energy Company (TAQA), Saudi Arabia’s ACWA Power and China Power International.

The Al Khairan Phase 1 IWPP will be primarily powered with LNG and high-pressure natural gas, with gas oil as a backup fuel. In addition to generating power, it will produce around 568,000 cubic metres of water per day.

To be located 100 kilometres south of Kuwait City along the Gulf coast, the project will be developed under a PPP scheme covering financing, design, construction, operation, maintenance and transfer. The winning bidder will operate the plant under a 25-year agreement to sell power and water to the government.

Once operational, Al Khairan will help alleviate Kuwait’s power shortages. The country has been struggling to meet increases in electricity demand due to urbanisation and industrial growth, especially during peak times in the summer months.

Under Kuwait’s PPP framework, project partners, be they domestic or foreign, are allocated between 26-44% of the executing project company’s shares. Of the remainder, a 50% stake is offered to Kuwaiti citizens for purchase, and the balance is retained by the government.

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