Kuwait floats 50% of Shamal Azzour Al-Oula Power and Water Co
The Government of Kuwait was mandated to float its 50% stake in the utilities developer post-construction completion
Kuwait Authority for Partnership Projects (Kapp) will invite subscriptions for 50% of its Shamal Azzour Al-Oula Power and Water Company’s shares on 1 October, 2019, with Kuwaiti citizens whose names are registered with Kuwait’s Public Authority for Civil Information (Paci) by 15 September, 2019, to be eligible for the share-purchasing activity.
Shamal Azzour Al-Oula Power and Water Company is touted as becoming the first private-sector utilities entity in Kuwait following Kapp's floatation of its stake, and specialises in power generation and water desalination.
The firm is a joint stock company founded for the development of Az-Zour North One Power and Water Plant and was formed after Kuwait implemented the Public-Private Partnerships (PPP) Law in 2008 with the aim of promoting public infrastructure development, including in the power sector, 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 allows Kuwaiti joint stock companies to carry out the construction and operations of electric power and water desalination stations in excess of 500MW that were implemented under the PPP Law.
With the Az-Zour North One Plant falling under IWPP law, Kuwait’s first PPP in the development of a public infrastructure project was signed, and Shamal Azzour Al-Oula was established.
According to its website, 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% is owned by the Government of Kuwait through Kuwait Investment Authority (5%), Public Institution for Social Security (5%), and Kapp (50%).
The Government of Kuwait was mandated to float 50% of the firm's total ownership among Kuwaiti citizens after construction completion, leaving it with a 10% stake following the distribution, the company's website explains.
The engineering, procurement, and construction (EPC) contractor for the power plant was South Korea's Hyundai Heavy Industries, while the EPC contractor for the water desalination plant was Sidem, a subsidiary of French giant Veolia.
Shamal Azzour Al-Oula's gas-fired Az-Zour North Power Plant has a capacity of 1,539.2MW, while the Az-Zour North Water Desalination Plant features net water output of 107 million imperial gallons per day.
Kapp has urged Kuwaiti citizens interested in purchasing Shamal Az-Zour Al-Oula Power and Water Company’s stake to check the validity of their civil IDs and complete family data by 15 September to ensure their eligibility.