The Kuwait Authority for Partnership Projects (KAPP) has signed agreements with Saudi Arabia’s ACWA Power and the Gulf Investment Corporation (GIC) to advance the Al-Zour North power plant’s second and third phases.

The signing involved KAPP’s director general Asmaa Al-Mousa, and Undersecretary at the Ministry of Electricity, Water, and Renewable Energy Adel Al-Zamel.

Representing the investors, Raed Al-Saade from ACWA Power and Ibrahim Al-Qadhi from the GIC committed to the project’s design, financing, construction, operation, maintenance, and eventual transfer.

The investment for these phases is valued at over KWD1bn ($3.27bn), as confirmed by Asmaa Al-Mousa to Reuters, with the financial responsibility falling on the investors rather than the government.

The Al-Zour North development is expected to deliver 2.7GW of electricity and 120 million gallons of desalinated water daily. Construction is projected to take three years, employing combined-cycle technology.

Adel Al-Zamel noted that the completion of several large-scale projects, including a collaboration with China, will improve Kuwait’s electricity services. To manage demand, the government has implemented planned power cuts in some regions since last year.

Al-Zamel said: “If (the projects) go according to plan, by 2028 our situation will be much better,” during the signing ceremony.

Additionally, Kuwait plans to collaborate with China on phases three and four of the Shagaya renewable energy project, targeting a combined capacity of 3.2GW.

Al-Zamel mentioned that an implementation agreement with China is expected in the first quarter of 2026.