October 25, 2020 oil and gas

Consultants prepare to bid for Kuwait power plant role

The proposed privatisation of the North Shuaiba Power Plant will have three phases

The Electricity & Water Ministry (MEW) in Kuwait expects to receive bids by the end of October for the consultancy services role in line with the planned privatisation of the $1.26bn North Shuaiba power plant (NSPP).

It is the second package that has been tendered for the scheme.

It is understood MEW in Kuwait received bids for the first contract to undertake power plant asset valuation services in July.

The proposed privatisation programme will have three phases. The initial phase covers the establishment of a Kuwaiti shareholding company, which will own the NSPP assets. The selected contractors will undertake a valuation of the company and its assets and draft the energy conversion and water purchase agreement (ECWPA) between the shareholding company and the Electricity & Water Ministry (MEW), which currently owns the asset.

Phase 2 will cover tendering the shares of the shareholding company, as well as the required rehabilitation measures to improve plant efficiency.

The third phase will cover transferring shares to employees and the public.

The first phase is expected to be completed within 14 months, the second phase in 29 months, and the third phase in 36 months.

Design capacity and performance

Built on an engineering, procurement and construction (EPC) lump-sum turnkey basis in 2010-2012, the North Shuaiba power plant has been selected as the country’s pilot privatisation project.


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