EFFICIENT PRACTICES
Successfully completing two years of commercial operations, Shamal Az-zour continues employ the strengths of its international and local partners to produce the cheapest energy in Kuwait with lower emissions.
BIOGRAPHY
Paul Frain is the CEO and executive member of the board directors of Shamal Az-Zour. He graduated with a bachelor’s degree in integrated engineering systems from Manchester Metropolitan University and has a master’s of science degree in energy from Heriot Watt University in Edinburgh. He has over 25 years’ experience in worldwide power generation and water production projects. He has a background in design, project management, business development, and operations and has worked for consultants, EPC contractors, and equipment manufacturers throughout Europe the Middle East, Africa, and Asia Pacific.What advantages does the PPP model bring?
The private sector brings high levels of efficiency and latest business practices, and Kuwait benefits from the partnering and collaboration with the international associates, ENGIE, and Sumitomo. Partnering with the private sector also provides a profit-oriented approach whilst emphasizing and implementing the highest levels of safety. Therefore, inviting foreign investors helps Kuwait to raise the bar in many aspects. On this project, our contract lasts for 40 years, making us an integral part of the Kuwaiti infrastructure. We built, operate, and will eventually hand over the plant to the state. We intend to provide power and water to Kuwait as well as value to our shareholders before the plant is transferred. Shamal is not just a commercial investment; we have approached Kuwait Institute for Scientific Research (KISR) and Kuwait University to sponsor urban greenery projects and marine ecology projects. The new plant is certainly beneficial for the country as it uses modern technology and is extremely efficient and reliable. The plant was constructed on time and under budget, which is exceptional in the region. We have completed two years of successful commercial operations and recently finished the warranty period. We produce the cheapest energy in Kuwait. Shamal Az-Zour uses gas, which we consume more efficiently and with significantly lower emissions.
What collaboration between your shareholders guarantees the success of Shamal Az-Zour?
Firstly, we have the strength and depth of ENGIE, which has interests in more than 23 power and water production facilities in the region. This brings to the consortium a shareholder with a proven construction and operational track record. Second, Sumitomo also has a number of assets throughout the UAE and internationally. In addition, the company has a strong financial capability and brings the JBIC financing. There is an excellent track record of Sumitomo and ENGIE working together on other plants in the Gulf, so the relationship and understanding between both organizations has always been positive. There is also the strength of the local partner, Al Sagar, a well-known engineering company. It is, therefore, the perfect mix of a strong local partner and two experienced international utility companies.
How do you lower your costs of generation while reducing emissions?
In the power industry, as in many industries there are economies of scale. The plant itself provides over 1,500MW of power and over 100 million gallons of water per day. Operating and maintaining the plant in a professional manner using the latest control technology ensures that we sustain high levels of efficiency and availability. We have efficient combustion systems using the latest technology from General Electric, which reduces our CO2 emissions. The private sector manages cost by having highly trained and skilled engineers and utilizing synergies in procurement activities. We ask our teams to work within an operational excellence framework and promote an innovation culture. We have 120 staff for 1,530MW and 107 million gallons of water per day. The equivalent public-owned assets would have five times that number of people. In the winter, we currently provide 27% of Kuwait's power and 20% of Kuwait's water. This demonstrates the trust the Ministry of Electricity and Water has in us in terms of reliability and availability.
What are your expectations for the year ahead?
Within Kuwait and particularly the utility sector, I am extremely positive. Hopefully, the Phase II and Phase III tenders will be issued, as we are keen to be involved. We recently completed the winter period of maintenance outages in advance of the summer period. Demand in Kuwait increases dramatically from 5,000MW in winter to over 18,000MW in the summer. The plant has been performing well and is in an optimum condition, so I look forward to a positive seven months of summer operations. We intend to continue to remain the most reliable and the cheapest form of power and water for the Ministry of Electricity and Water.
EFFICIENT PRACTICES
TABLE OF CONTENTS
Interview
Adel Abdul Wahab Al-Majed , Chairman, Kuwait Banking Association (KBA)
Through a broad array of information, specialized committees, staff expertise, and other resources, KBA supports Kuwait's banks as they perform their critical role in energizing the economy and helping communities thrive.
read articleInterview
Sheikh Dr. Meshaal Jaber Al-Ahmed Al-Sabah, Director General, Kuwait Direct Investment Promotion Authority (KDIPA)
KDIPA adopts a proactive approach to attract value-added direct investments supported by an integrated promotional strategy serving Kuwait's developmental goals in line with its National Vision 2035.
read articleCommuniqué
Legal Reform and Infrastructure Projects Spell Opportunity for Foreign Investors
Along with the introduction and modernization of new laws and regulations, the vision of His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah to transform Kuwait into an international center for commerce and industry by 2035 is already being implemented through Kuwait's National Development Plan. Coupled with the promulgation of progressive FDI regulations, these new opportunities spell positive news for foreign companies looking to conduct business in Kuwait.
read articleFocus: Developing connectivity
Connecting the Dots
Today, connectivity is hardly indispensible for individuals and the companies where they work. Kuwait's smart cities, considered elsewhere in the book, will thrive on it, and meanwhile the nation continues to register notable business deals from the informatics sector.
read articleInterview
Khalid Abbas , Country Manager-Kuwait, Unilever
Contributing to the improved health and wellbeing of communities and reducing environmental footprint are key priorities for Unilever, which is committed to improving the health and wellbeing of up to 1 billion people globally by 2020.
read articleInterview
Mohammed Yousif Soud Al-Sabah , Board Chairman & Director, Public Authority of Agriculture Affairs and Fish Resources (PAAAFR)
PAAAFR has adapted a package of policies to face challenges inherent to deserts, hot climate, and water scarcity, bringing Kuwait closer to achieving national food security, one step at a time.
read articleInterview
Yang Chunsen, Vice President/ Chief Representative, China State Construction Engineering Corporation Middle East (CSCME) Kuwait
CSCME is a technology-driven company that leverages its R&D and long-standing partnership with the government to increase its participation in the future development of Kuwait.
read article
