Saudi Arabia's ACWA Power, which is partly owned by the kingdom's sovereign Public Investment Fund (PIF), has signed a deal to sell more than 40% stake in its power plant project in Uzbekistan to China's Silk Road Fund for $130 million.

Under the share purchase agreement, Silk Road Fund, which is China's sovereign investment body, will own 49% in ACWA Power Uzbekistan Project Holding Company, which is developing the $1 billion combined cycle gas turbine (CCGT) project in Uzbekistan.

ACWA will continue to be the majority shareholder, owning the remaining 51% stake.

The purchase deal was made with CVXF Inc., a subsidiary of the Silk Road Fund, according to a bourse filing on the Saudi Stock Exchange (Tadawul). The transaction is expected to close in the last quarter of 2022.

The Uzbekistan facility, which accounts for 8% of the country's total power capacity, is currently being developed under a build, own, operate, transfer scheme. It is scheduled for completion in early 2024.

With a capacity of 1,500 megawatts, the plant is expected to meet 15% of Uzbekistan's electricity demand.

The project is the first strategic partnership entered by ACWA Power and Silk Road Fund in Uzbekistan and Central Asia.

(Writing by Cleofe Maceda; editing by Seban Scaria)