Chadbourne & Parke has successfully advised the State of Kuwait and the Partnerships Technical Bureau (PTB) on the competitive procurement of Kuwait’s first independent water and power project, Az-Zour North Phase I. The project agreements were signed in Kuwait this week, the firm announced.
According to Chadbourne, the Az-Zour North Phase I project is the first project to have been successfully procured by the Partnerships Technical Bureau of the State of Kuwait as a part of Kuwait’s PPP programme and includes the construction and operation of a gas-fired combined cycle power and seawater desalination plant with a capacity of approximately 1,500 MW and 102-107 MIGD. Chadbourne was part of an advisory consortium, including BNP Paribas and Lahmeyer International.
The $2 billion project was awarded to a GDF SUEZ-led consortium including Sumitomo Corporation and Abdullah Hamad Al Sagar and Brothers who together hold 40 percent of the shares in the project company, with 10 percent held by Kuwait’s sovereign wealth funds Kuwait Investment Authority and the Public Institution for Social Security. The remaining 50 percent of the shares have been the subject of an initial public offering that was fully subscribed and will be distributed to Kuwaiti citizens once the plant is fully operational.
The Chadbourne lawyers advising on the project were drawn from the firm’s Dubai and London offices. The team was led by project finance partner Sohail Barkatali in Dubai and senior associate Derek Kirton in Dubai. The project was also supported by a team from Chadbourne’s London office headed by project finance partner Magnus Rodrigues.
“We are pleased to have played a very active part in this pioneering project in Kuwait. This project received significant interest within Kuwait and internationally. In signing this deal, Kuwait has shown that it offers the right environment for its projects with interest from strong developers and international lenders, including ECAs,” Barkatali said. “It has also demonstrated that its procurement process is open, fair and transparent. It is important to recognise the unequivocal and unwavering support that this project received from the Government of the State of Kuwait and its various institutions and the commitment, dedication, hard work and drive of the team from Partnerships Technical Bureau in reaching this significant milestone today. Kuwait now has a blueprint for similar projects in the future. We look forward to continuing our work with PTB, the Ministry of Electricity and Water and the State of Kuwait.”
