UK firm submits lowest bid for Kuwait IWPP advisory role

2 Nov 2020
UK firm submits lowest bid for Kuwait IWPP advisory role

A consortium led by the UK’s EY submitted the lowest bid for the advisory roles on the planned Al-Zour North phase 2&3 independent water and power producer (IWPP) and Al-Khiran IWPP projects

 

A consortium led by the UK’s EY submitted the lowest bid for the advisory roles on the planned Al-Zour North phase 2&3 independent water and power producer (IWPP) and Al-Khiran IWPP projects.

The consortium’s proposal of $3.9m was significantly lower than the $5.2m proposal submitted by a consortium led by KPMG, the second lowest bidder.

Energy & Utilities reported in July that bids were submitted by advisory teams on 23 July for the transaction advisory services contracts.

KAPP announced that bids from the following consortiums had been accepted:

  • EY (UK), Atkins, Addleshaw
  • KPMG (Netherlands), DLA Piper (UK), ILF (Austria)
  • Rodl Middle East (Kuwait), Egis Engineering (France)

 KAPP revealed that it rejected a proposal submitted by UK-based PwC.

The thermal power generation Al-Zour North 2&3 IWPP is planned to have a capacity of 2,700MW and a water desalination capacity of up to 165 million imperial gallons a day (MIGD). The combined second and third phases will be located adjacent to the Al-Zour 1 IWPP, Kuwait’s only IWPP to date, which was commissioned in 2016.

The thermal power generation Al-Khiran IWPP will have a power generation capacity of 1,800MW and a desalination capacity of 125MIGD. The Al-Khiran site will be located near the Al-Zour site, approximately 100km south of Kuwait City on the Arabian coast.

Kuwait’s IWPP programme has suffered a number of setbacks since it awarded the contracts for the country's first IWPP in 2013.

In August 2017, KAPP cancelled the tender for the second planned IWPP at Al-Zour had been cancelled, 14 months after developers had submitted proposals. Following the announcement that it had cancelled the tender for the Al-Zour North 2 IWPP, KAPP revealed it would be integrating plans for the previously planned Al-Zour North 2 and Al-Zour North 3 IWPPS into one project.

In July 2018, KAPP restarted the procurement process for its next planned IWPP projects, inviting developers to submit expression of interest (EOI) for both the Al-Zour North 2&3 and Al-Khiran 1 IWPP schemes.

In December 2018, the client invited consultants to submit proposals for the advisory roles on the Al-Zour North project. KAPP received proposals from three consortiums for the advisory roles on the planned project in April 2019. However, in October 2019 the advisory tender was cancelled.

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