Riyadh: 17 July 2012

ACWA Power International ("ACWA Power") announced on 17 July 2012 that its subsidiary ACWA Power Barka SAOG has been granted a "Letter of Award" by Oman Power and Water Procurement Company SAOC (OPWP) for the expansion of its existing water desalination capacity by 10 MIGD (45,460 m³/day).

The expansion project is an Independent Water Project (IWP) to be developed on a BOO (Build, Own, Operate) basis and will be located at Barka  65 km north of Muscat, the capital of the Sultanate of Oman. The expansion project will be constructed adjacent to ACWA Power Barka's existing plant and will benefit from its synergies. The additional water capacity produced by the expansion project will help in meeting the projected shortfall of Sultanate's water desalination production capacity.

The expansion project is subject to customary approvals by the Board of Directors and shareholders of the company. A new Water Purchase Agreement (WPA) will be executed for the expansion project which will be co-terminus with the existing Power and Water Purchase Agreement (PWPA). The expansion project will be funded by a syndicated loan from local and regional financial institutions. Construction of the expansion project will commence before end of Q3 2012. ACWA Power Barka is targeting to complete this expansion project and start the water production in Q4 2013. NOMAC Oman, a subsidiary of ACWA Power, which is the O & M provider for the existing ACWA Power Barka plant, is intended to be the O&M provider for the expansion project. Ahmed Al Subhi, CEO of NOMAC Oman said "NOMAC Oman is looking forward to contributing to this endeavor by expanding our operational capacity".

Mohammad A. Abunayyan, Chairman of ACWA Power Barka and ACWA Power International said "We are proud that we are able to provide an innovative solution where ACWA Power's main philosophy of "generating electricity and producing desalinated water at the lowest possible tariff" comes to life through creative thinking in financing, design and operations such as using the synergies of existing facilities of ACWA Power Barka.  In the medium to long-term this expansion project will prove to be a well sought solution to balance shortfalls of current desalinated water production capacity in the Sultanate".

Abunayyan went on to say "The expansion project will also contributing to a number of our corporate objectives such as solidifying our position in key target markets such as the Sultanate of Oman and increasing our contracted production capacity in desalination production from the current 2.3 Mm3/day to 5 Mm3/day by 2014".

-Ends-

About ACWA Power
ACWA Power International (ACWA Power) is a developer, investor, co-owner and operator of plants that have a contracted production capacity of 12,000 MW of power and 2.3 Mm3/day of desalinated water with an investment value in excess of USD 15.2 billion and providing employment to more than 2,300 people.

The company, incorporated in the Kingdom of Saudi Arabia, is privately owned with a paid up capital and shareholder loans totaling USD 1.2 Billion. ACWA Power's core business is the delivery of electricity and desalinated water from assets in which the company has a meaningful stake enabling operational control.

A complete team of multidisciplinary professionals at ACWA Power have single handily completed several transactions taking the role of the Lead Developer. The key success factors in ACWA Power's growth has been the ability to consistently select the optimal technical solution, partner with the most efficient engineering, procurement and construction (EPC) service provider and implement an effective operation and maintenance strategy.

Business cases and financial models are twinned with the most competitive equity and debt financing with the primary objective of delivering electricity and desalinated water in a sustainable manner at the lowest possible cost to our customers in our target markets.  

ACWA Power has also established competence in acquiring and integrating existing/brown field assets and staff into the company and increasing value through enhancing operational efficiency and improving asset performance.

The current portfolio of assets and investments delivers 5,000 MW of power and 2.25 Mm3/day in Saudi Arabia; 1,600 MW of power in Jordan; and 456 MW of power and 91,000 m3/day of desalinated water in Oman. An additional 5,200 MW of power generation capacity is under construction in Saudi Arabia and 835 MW of advanced power development in Turkey.  The portfolio includes the world's first two sea going barge mounted, self-contained desalination plants each capable of producing 25,000 m3/day of water. 

From its hub in the MENA region, the company is expanding throughout the GCC, into Jordan, Egypt and further afield into Turkey, Morocco and the Southern Cone of Africa.

For more information please contact:
Hani N. Alsaigh
Corporate Communication Director
Tel:  +966 1 2835544
Mob: +966555231490
Email: halsaigh@acwapower.com

© Press Release 2012