Kuwait Signs $3.27 Billion Deal to Expand Al-Zour Power Plant
Kuwait’s Authority for Partnership Projects (KAPP) announced on Sunday that it has signed an agreement with ACWA Power and the Gulf Investment Corporation (GIC) to work on the second and third phases of the Al-Zour North Power Plant. The project is said to be worth more than $3.27 billion (KWD 1 billion).
The deal comes before the launch of a new public joint-stock company that will design, finance, build, operate, maintain, and later transfer the power and water desalination plant.
The agreement was signed by KAPP Director General Asma Al-Mousa, Electricity and Water Undersecretary Adel Al-Zamil, ACWA Power Vice Chairman Raad Al-Saadi, and GIC CEO Ibrahim Al-Qadi. Al-Mousa said the cost will be paid by investors, not the government.
When completed in three years, the plant will use combined-cycle technology to produce 2.7 gigawatts of power and 120 million gallons of water each day, helping ease Kuwait’s electricity shortages.
Other Related Deals
In February, ACWA Power bought power and desalination assets in Kuwait and Bahrain from a unit of French company Engie SA for $693 million. This included gas-fired power plants, water desalination facilities, and stakes in several plants—such as an 18% share in Al-Zour North and shares in three plants in Bahrain.
Electricity Shortages in Kuwait
Kuwait has been facing power shortages due to a growing population, more urban development, hotter weather, and delays in plant maintenance. In April, the country cut electricity to some industrial and farming areas during peak heat. In 2024, it used programmed power cuts for the first time in years. KAPP says new projects should help improve the situation, with one contract to be awarded soon.
Published: 11th August 2025
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