Acwa tightens grip on Kuwait’s power sector: An Acwa Power-led consortium signed a USD 4.1 bn energy conversion and water purchase agreement (ECWPA) with Kuwait’s Electricity Ministry for the second and third phases of Kuwait’s Az-Zour North project, it said in a disclosure to Tadawul. The signing follows initial contracts inked in August.

Who’s in? The 25-year build-operate-transfer agreement was struck between Kuwait’s Electricity, Water, and Renewables Ministry and the Gulf Alliance for Power and Water — a JV of Acwa, the Kuwait Authority for Partnership Projects (Kapp) and the Gulf Investment Corporation. Acwa’s effective stake in the project is 24%.

About the project: The independent water and power project is among Kuwait’s largest, with 2.7 GW of combined-cycle gas turbines and a seawater reverse osmosis desalination unit producing around 545.5k cubic meters per day. It will run on a mix of liquefied and high-pressure natural gas.

Acwa is moving swiftly

Just weeks ago, Acwa finalized the acquisition of Engie’s assets in the region, buying into the 1.5 GW Az-Zour North Phase 1 and taking a 45% stake in Bahrain’s 940 MW Al Ezzel and 1.22 GW Al Dur plants. Securing Phases 2 and 3 ensures a significant percentage of Kuwait’s privatized power and water capacity runs through Acwa’s books.

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