The construction teams of Shamal Azzour Al-Oula KSC, Hyundai Heavy Industries (HHI) and Societe Internationale De Dessalement (SIDEM) on Tuesday commissioned the final power generation unit for Kuwait's first independently owned power and water facility, Azzour North One (Phase I of the country's IWPP project).
"Team members from all companies involved in the project are very proud of their achievements," Shamal Azzour CEO Andy Biffen said in a press statement. "While this is a very modern and complicated facility, the project has progressed without delays, overspend or technical difficulties, reflecting the skills, efficient organization and expertise of all those involved."
The statement pointed out that the construction of the USD1.7 billion facility has progressed swiftly since that start in January 2014. The facility generated the first megawatt of power in May 2015 and within 18 months, its power capacity had reached 40 percent of its total 1,539.2 MW.
In June 2015, just 78 weeks after construction started, the first gas turbine began early commercial operation. Since then, work has continued at a relentless pace, with the project expected to start full commercial operation by the end of November 2016 as previously announced.
When fully operational, the project will represent 10 percent of Kuwait Power peak capacity (1,539MW) and 20 percent of water generation (107 million gallons per days).
The project will be fueled from a blend of local gas and imported LNG. The combined facility of power and water generation represents Kuwait's cleanest and most efficient source of electricity.
Shamal Azzour Al-Oula is 40 percent owned by a private consortium comprising ENGIE (formerly GDF SUEZ), Sumitomo Corporation, and A.H. Al Sagar & Brothers.
The remaining 60 percent, owned by the Government of Kuwait, through the Kuwait Investment Authority (KIA: 5 percent), the Public Institution for Social Security (PIFSS: 5 percent) and Kuwait Authority for Partnership Projects (KAPP: 50 percent).
The Government of Kuwait is mandated to sell 50 percent of the total ownership through an Initial Public Offering (IPO) to Kuwaiti citizens after construction is completed. The government will retain 10 percent stake following the IPO.