KUWAIT CITY, Jan 27:  Dr. Mahmoud Boushehri, Minister of Electricity, Water, and Renewable Energy, (MEW) signed a Memorandum of Understanding (MoU) on Monday with ABC Transco Limited to establish a power generation station and its related infrastructure, in line with the directives of the political leadership.

In a press statement following the signing, Boushehri explained that this MoU is part of the government's strategic vision and efforts to engage the private sector in development projects, particularly in power generation, under the independent supplier system.

He noted that ABC Transco Limited, in partnership with General Electric Vernova as a developer, operator, and investor, presented a proposal to the ministry to build a power generation station with a total capacity of 3,000 megawatts, utilizing gas turbines. This project will include all the necessary infrastructure for the power station, such as the main conversion station for delivering electricity to the transmission networks, along with the required water pipelines, fuel lines, and other essential elements deemed necessary for the success of the project.

Boushehri emphasized that this MoU is part of ongoing efforts to boost Kuwait’s electrical energy production capacity and implement decisions made by the Council of Ministers.

Dr. Adel Al-Zamel, Undersecretary of the Ministry of Electricity, Water, and Renewable Energy, also commented on the MoU, stating that the company will be responsible for preparing all the technical and financial studies for the project. These studies will adhere to the Ministry’s approved codes, specifications, and international standards for designing, constructing, and operating power generation stations, including the necessary infrastructure requirements.

Al-Zamel further explained that if the ministry approves the technical and financial studies, coordination will take place between all involved parties to obtain the necessary approvals from relevant authorities to establish the project. Once the ministry completes the required procedures, it will finalize an agreement to purchase the energy produced by the power station once it is constructed, based on the ministry’s needs and after obtaining all necessary regulatory approvals.

Bader Al-Razihan, CEO of ABC Transco Limited Energy, added that following the signing of the MoU, a Kuwaiti closed shareholding company will be established, headquartered in Kuwait. This company will focus on building, implementing, operating, managing, and maintaining the power generation station. Al-Razihan highlighted that the new company may offer a portion of its ownership to the government and its affiliates after its establishment, as well as make shares available for public subscription by Kuwaiti citizens once the station is operational.

He also emphasized that the company would prioritize employing Kuwaiti workers in accordance with the Public Authority for Manpower’s guidelines on nationalization and job quotas. The company will also apply modern technologies to reduce carbon emissions and greenhouse gases, aligning with global environmental standards.