Major infrastructure and PPP projects progress across Kuwait

Kuwait’s infrastructure and utilities sector is entering one of its most active development cycles in recent years.

Particularly notable is the breadth of the current and planned pipeline, specifically in the power generation and water desalination sectors. Major ongoing and recently announced projects include:

Az-Zour North Phase 2 and 3 IWPP
Al-Khairan Phase 1 IWPP
Al-Dibdibah / Al-Shagaya Phase III renewable energy programme
the planned Shagaya and Al-Abdaliya clean-energy projects being pursued under Kuwait’s cooperation framework with China, including SPIC and the Kuwait Investment Authority
Subiya expansion and conversion works
the proposed large-scale gas-fired project being studied with ABC Transko and GE Vernova
KPC’s reported solar generation plans
the Ratqa power-and-steam co-generation initiative, for which a memorandum of understanding (MOU) has been signed between Kuwait Oil Company and the Ministry of Electricity, Water and Renewable Energy (MEWRE)

Taken together, these developments indicate Kuwait is seeking to expand its power generation capacity, diversify its energy mix, strengthen power and water security, and increase private-sector and international developer expertise into strategic infrastructure projects.

Kuwait’s transport, logistics and connectivity pipeline is equally ambitious. Kuwait’s Municipal Council has approved the 85km route corridor for the Kuwaiti section of the planned high-speed railway linking Kuwait with Riyadh. The railway forms part of a broader Saudi-Kuwait rail initiative intended to strengthen regional connectivity between Kuwait City and Riyadh through high-speed passenger services.

Further advancing Kuwait’s digital infrastructure agenda, Beyon was recently selected as the successful bidder for a landmark telecommunications public-private partnership project. It will design, finance, build, operate, maintain, and ultimately transfer a high-speed fiber broadband network across Kuwait, a central part of the country’s digital infrastructure ambitions.

The Mubarak Al-Kabeer Port project on Boubyan Island also represents one of Kuwait’s most consequential long-term infrastructure investments and has regained momentum through strengthened Kuwaiti-Chinese cooperation. The EPC contract for completion of the first phase, led by China Communications Construction Company, is valued at approximately USD 4.1 billion.

Progress also continues on the new Kuwait International Airport project, including the new passenger terminal, parking facilities, road network, and related service structures, as part of Kuwait’s broader transport infrastructure strategy

Meanwhile, the Umm Al-Hayman PPP wastewater treatment plant is already producing approximately 500,000 cubic meters of advanced treated water for agricultural and landscaping use in central and southern Kuwait. The Kuwait Authority for Partnership Projects (KAPP) intends to distribute shares in the project company to Kuwaiti nationals this year.

A number of these projects are being advanced through Kuwait’s PPP and public procurement frameworks, with long-term offtake arrangements and public shareholding company structures continuing to play an important role in the country’s utilities programme. This underscores the continued importance of PPP structures within Kuwait’s long-term infrastructure development strategy.

Among the latest major developments is the Nuwaiseeb Power and Water Desalination Plant. KAPP recently announced a tender for the feasibility study and preparation of tender documentation for Phase One of the project, which is expected to add approximately 3,600 MW of capacity as part of a wider two-phase development expected to deliver approximately 7,200 MW of total capacity.

This is a further indication that Kuwait’s power-sector development programme is continuing to move from policy planning into active procurement and project delivery.

ASAR has played a leading role on every major PPP and infrastructure project undertaken in Kuwait to date and continues to act across the country’s infrastructure, utilities and power sectors.

With multiple major projects now progressing through procurement and implementation stages, Kuwait’s infrastructure sector is expected to remain a key area of activity for sponsors, investors, developers, and lenders in the period ahead.