Shamal Azzour Al-Oula K.S.C

Shamal Azzour Al-Oula K.S.C is the joint stock company founded for the development of Az-Zour North One Power and Water Plant.

In 2008, Kuwait has implemented the Public Private Partnerships (PPP law), aiming to promote public infrastructure development, including power, by engaging the private sector in the development process. A second law followed in June 2010, the Independent Power and Water Project (IWPP) law, which establishes Kuwaiti Joint Stock Companies to undertake the building and performance of electric power and water desalination stations in excess of 500 MW implemented under the PPP Law.

With the Az-Zour North One Plant falling under IWPP law, Kuwait’s first public-private partnership in the development of a public infrastructure project was signed, and Shamal Azzour Al-Oula was established.

Shamal Azzour Al-Oula is 40% owned by a private consortium comprising ENGIE (formerly GDF SUEZ), Sumitomo Corporation, and A.H. Al Sagar & Brothers. The remaining 60%, owned by the Government of Kuwait, through the Kuwait Investment Authority (KIA: 5%), the Public Institution for Social Security (PIFSS: 5%) and Kuwait Authority for Partnership Projects (KAPP: 50%). The Government of Kuwait is mandated to distribute 50% of the total ownership through a distribution process to Kuwaiti citizens after construction is completed, leaving it with a 10% stake following the distribution.

This milestone partnership responds to a projected rapid increase in electricity demand, which is expected to increase at a high rate per annum

Az-Zour North One Power and Water Plant was awarded under the IWPP law and implemented through a process managed by the Kuwait Authority for Partnership Projects. The Plant forms part of an overall IWPP located in the Az-Zour area. The overall IWPP is expected to be developed over five phases, for a total capacity of 4,800 MW of electricity and approximately 280 MIGD of desalinated water to be tendered over a period of four to six years.

Contractors

The engineering, procurement and construction (EPC) contractor for the power plant is Hyundai Heavy Industries (HHI), Korea, while the EPC contractor for the water desalination plant is Sidem, a subsidiary of Veolia, France.

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