The Ministry of Electricity and Water, as per its responsibilities, signed a memorandum of understanding today, Monday 27/01/2025, with IBC Transko Energy regarding the creation of an electric power plant and its associated infrastructure.
On this occasion, His Excellency the Minister of Electricity, Water and Renewable Energy, Dr. Mahmoud Abdel Aziz Bushehri, stated that this memorandum came based on the directives of the political leadership of the state and in implementation of the government's approach towards involving the private sector in development projects, especially in the field of electric power generation according to the independent supply system.
Dr. Mahmoud Bushehri reported that IBC Transko Limited Energy, in partnership with its strategic partner General Electric Vernova (GE), applied as a developer, operator, and investor in the project by presenting to the ministry a proposal to establish a power generation station with a total capacity of up to 3,000 megawatts using gas turbines (power station) along with all necessary infrastructure, which includes a main conversion station for delivering electric energy to the transport networks, along with water pipelines, fuel lines, and any other requirements that the ministry deems necessary to ensure the success of the project.
The Undersecretary of the Ministry of Electricity, Water and Renewable Energy, Dr. Adel Muhammad Al-Zamil, reported that under this memorandum, IBC Transku Limited Energy will prepare all technical and financial studies for the project. These studies will take into account the codes, specifications, and international standards followed by the ministry regarding the design, construction, and operation of electric power plants, including all infrastructure requirements.
In the event that the Ministry accepts the technical and financial studies, coordination and cooperation will be conducted among all parties to obtain all necessary approvals to establish the project from the relevant authorities.
Then, the ministry will conclude the energy purchase agreement for electricity produced from the generation station after its establishment, according to its needs and upon obtaining approval from all regulatory authorities of the State of Kuwait in accordance with applicable legislation, laws, and regulations.
In the same context, the CEO of IBC Transko Energy, Mr. Badr Fahd Al-Razihan, stated that after the signing of the energy purchase agreement between the parties, a Kuwaiti joint stock company will be established in the State of Kuwait, its primary purpose being to build, implement, operate, manage, and maintain a power generation station.
The new company may offer a percentage of its ownership to the government and its affiliated bodies at the time of establishment, as well as for public subscription by citizens after the actual operation of the station. Additionally, it will focus on employing national workers in the company according to the proportions and numbers specified in the decisions and instructions issued by The Public Authority for the Labor Force regarding job release and the application of modern technologies to reduce carbon emissions and greenhouse gases, in line with global environmental protection standards.
Finally, His Excellency Minister Dr. Mahmoud Bushehri indicated that the Memorandum of Understanding aims to facilitate cooperation between the two parties to enhance the productive capacity of electric energy in the State of Kuwait, as part of the decisions of the esteemed cabinet in this regard.
