Privatization of power projects on the anvil

Kuwait has reportedly drawn up plans to sell up to 44 percent stake in Al Zour and Al Khiran power projects to investors by the middle of 2020 and early 2021 respectively.

“We are in the process of appointing the consultant for the two projects, in cooperation with the Central Agency for Public Tenders,” said Mutlaq Al-Sanei, who heads the Kuwait Authority for Partnership Projects (KAPP) in a recent media interview.

The plan is to sell at least 26 percent of shares in both projects, which could possibly up as high as a 44 percent stake, said Al-Sanei. Neither KAPP nor the government have made clear on how they intend to approach the sale of shares, or even if an initial public offering (IPO) was being planned.

However, during the interview, Al-Sanei did provide a hint of future plans when he disclosed that the government is to begin the first phase of an IPO for selling shares in another power project, the Az-Zour North Independent Water & Power Project.