Kuwait Signs $3.27B Deal for Al-Zour North Power, Water Expansion

Kuwait has signed a major $3.2 billion deal with Saudi's ACWA Power and Gulf Investment Corporation to develop the second and third phases of the Al-Zour North power and water plant, aiming to significantly boost the country's electricity and water production capacities. The expanded facility will generate 2.7 gigawatts of electricity and produce 120 million gallons of desalinated water daily using combined-cycle technology, making it the largest power plant project in Kuwait's history. Under a 25-year public-private partnership agreement, the consortium will design, finance, build, operate, and maintain the plant, with the government retaining a 60% stake and 50% of shares planned for public subscription by Kuwaiti citizens once operational. The project is expected to alleviate ongoing power shortages, support Kuwait's national power network, and create jobs for Kuwaiti workers throughout its development and operational phases. The financial burden will be entirely carried by investors, with no direct cost to the government, reflecting Kuwait's strategy to leverage private sector expertise and foreign investment for infrastructure development. Construction is expected to take approximately three years.