Electricity Minister signs contract for Al-Subiya station’s expansion project

Kuwait: Minister of Electricity, Water, and Renewable Energy Dr Mahmoud Bushehri on Tuesday signed a contract for the expansion project of Al-Subiya Power Plant with a production capacity of up to 250 megawatts (MW) with Alghanim International Company at a total value of about KD 118 million (about $384 million). Minister Bushehri said in a press statement that this project represents the first steps to enhance and develop the electrical system in Kuwait after obtaining all necessary approvals from regulatory authorities.

Minister Bushehri added that the Ministry is currently in the process of floating the tender for the expansion project of Al-Subiya Power Plant (Phase IV) with a production capacity of up to 900 MW. He pointed out that the tender for the construction of the North Al-Zour station (second and third phases) with a production capacity of 2,700 megawatts is being finalized, as the bids of qualified companies have been received by the Public-Private Partnership Authority in preparation for awarding it to the winner.

The Ministry, in cooperation with the Partnership Authority, is also in the process of finalizing the tender documents for the Al-Khairat station, which has a production capacity of 1,800 megawatts. Regarding renewable energy, Minister Bushehri said that six companies were recently qualified to establish the Shaqaya station project (second and third phases) with a production capacity of 1,700 megawatts by the Ministry and Partnership Authority teams.

Minister Bushehri pointed out that the Ministry is also working in cooperation with the Ministries of Foreign Affairs and Finance to conclude a long-term partnership agreement with China to establish the Abdaliyah station and the Shaqaya station (fourth and fifth) for renewable energy, which have a production capacity of 3,400 megawatts. He stated that the Minister of Electricity, in cooperation with the Ministry of Finance and the Kuwait Direct Investment Promotion Authority, is currently working on fulfilling the legal requirements to establish two power generation stations based on the future producer (supplier) system in the Abdali and Nuwaiseeb areas with a production capacity of up to 6,600 megawatts.

He explained that the expected electricity production capacity to be added successively over the next five years amounts to 17,350 megawatts, of which renewable energy represents 30 percent, with total financial investments estimated at about KD 5 billion (about $16.5 billion), with the private sector’s contribution exceeding 90 percent. He pointed out that with the start of the new power generation stations, some existing stations will be gradually dispensed with due to the end of their useful life and the high costs of their operation and maintenance, which makes them economically unfeasible.