Power generation study underway

Private investments to fund independent producers

A study to establish Independent Power Producers (IPP) has kicked off. The study is part of a bill ratified by the Cabinet in 2010 to generate 2,500 MW of power.

Mott MacDonald, an international management, engineering, and development consultancy firm, was awarded the contract to conduct the study. The Council for Development and Reconstruction had issued the tender on behalf of the Ministry of Energy and Water.

“The Kuwaiti Fund for Arab Economic Development (KFAED) agreed to fund the study that will require around six months for completion,” said Pierre Hnoud, Advisor to the Ministry.

According to him, the study will help determine the best potential locations to build these private-run plants: “The study will assess the technologies to be used in operating the plants, the environmental impact, and possible funding sources.” Hnoud estimated that implementing the plan will require at least $2 billion of private investment.

Some 1,500 MW will be generated as a first phase and an additional 1,000 megawatts will be generated later on.