Kuwait's Central Bidding Committee has agreed to award the deal advisory contract for the planned privatization of the Northern Shuaiba Hydropower Plant (NSPP) to a consortium led by British consultancy Deloitte, it was reported recently. The consortium also includes US-based Sargent & Lundy as technical advisor, Canadian law firm Gowling as legal advisor and Kuwaiti investment advisory firm Markaz as investment bank.
It is reported that the proposed privatization plan will be divided into three phases: the first phase includes the establishment of a Kuwaiti joint stock company with NSPP assets, the valuation of the company and its assets by the selected transaction consultants, and the drafting of the equity company with the current Energy conversion and water purchase agreement between the Kuwait Ministry of Water and Electricity, which owns the asset. The second phase will include tendering for shares in equity companies and restoration measures needed to improve plant efficiency. The third phase will involve the transfer of shares to employees and the public. The aforementioned three phases are expected to be completed within 14 months, 29 months and 36 months respectively.
As a privatization pilot project in Kuwait, the North Shuaiba Hydropower Plant has a net generating capacity of 778 megawatts (MW), has three seawater desalination units operating with multi-stage flash (MSF) technology, and has a daily processing capacity of 45 million Imperial Gallon (MIGD). The plant is a dual-fuel plant that operates primarily on natural gas, with liquefied light oil as a backup fuel when natural gas is unavailable or exceeds specified quality or pressure limits.