Kuwait has opened bids for the first phase of the 1.8 GW Al Khairan power and water project, which will be located 100 km south of Kuwait City along the Gulf coast, reported Reuters, citing the Kuwait Authority for Partnership Projects (KAPP).

Pre-qualified international consortia were invited to submit bids for the Al Khairan Phase One Independent Water and Power Producer project, which will also produce 125 million imperial gallons of water a day, it stated.

Three consortia were invited to submit proposals: one led by Abu Dhabi National Energy Company (Taqa); the second by Saudi utility major Acwa Power; and the third led by China Power International Holding. The other qualified companies are Qatar-based Nebras Power and Japanese group Sumitomo Corporation.

The project will be developed under a public-private partnership model and will involve the “financing, design, construction, operation, maintenance and transfer” of the plant.

Under the PPP framework, companies are set up to carry out projects managed by a strategic partner. The partner, who can be Kuwaiti, foreign or a consortium of investors, is allocated 26 per cent to 44 per cent of the company’s shares.

A 50 per cent stake is offered to Kuwaiti citizens and the remainder retained by the government, said the Reuters report.

The winning bidder will form a project company to sign a 25-year deal to sell power and water to the government, it added.

KAPP in August had signed over $3.27 billion worth of contracts with Acwa Power and Gulf Investment for Al Zour North phases II and III.