Kuwait Signs Contracts for $3.27 Billion Power Plant Project

On Sunday, the Kuwait Authority for Partnership Projects (KAPP) signed contracts with Saudi Arabia's ACWA Power and the Gulf Investment Corporation for phases two and three of the Al-Zour North power plant. These phases are valued at over 1 billion Kuwaiti dinars ($3.27 billion), according to KAPP Director General Asmaa Al-Mousa. She emphasized that the financial responsibility lies with the investors, not the government.

This agreement marks the launch of one of Kuwait’s largest electricity projects, aimed at addressing the country’s ongoing electricity shortages. The Al-Zour North project will generate 2.7 gigawatts (GW) of electricity and produce 120 million gallons of water daily through combined-cycle technology. Construction is expected to take three years.

At the signing event, Adel Al-Zamel, Undersecretary of the Ministry of Electricity, Water and Renewable Energy, highlighted the expected improvements in electricity services as several large-scale infrastructure projects come into operation. He pointed to a major collaborative initiative with China as part of the long-term solution to power challenges.

Due to increasing energy demand, Kuwait has implemented planned electricity cuts in certain areas since last year to manage the load. Al-Zamel stated: "If (the projects) go according to plan, by 2028 our situation will be much better."

Looking ahead, Kuwait aims to sign an implementation agreement with China in the first quarter of 2026 for the third and fourth phases of the Shagaya renewable energy project. These phases will add a combined capacity of 3.2 GW to the national grid.