BRI: China's Silk Road Fund acquires significant minority stake in Saudi-based ACWA Power RenewCo

ACWA Power RenewCo is holding company for ACWA Power's renewable energy projects totalling 1,668 megawatts

  
Saudi Acwa Power-generating windmills are pictured in Jbel Sendouq, on the outskirts of Tangier, Morocco, June 29, 2018. Image for illustrative purposes.

Saudi Acwa Power-generating windmills are pictured in Jbel Sendouq, on the outskirts of Tangier, Morocco, June 29, 2018. Image for illustrative purposes.

REUTERS/Youssef Boudlal

ACWA Power, the Saudi-based developer, owner, and operator of power generation and water desalination plants, announced on Sunday the completion of transaction involving the acquisition of 49 percent shareholding in ACWA Power Renewable Energy Holding (ACWA Power RenewCo) by China's Silk Road Fund.

ACWA Power RenewCo is the holding platform for the company's existing renewable energy projects including concentrated solar power (CSP), photovoltaic (PV) solar, and wind assets across the United Arab Emirates, South Africa, Jordan, Egypt and Morocco with aggregate power capacity of 1,668 megawatts (MW).

ACWA Power CEO Paddy Padmanathan said the collaboration will enhance the company's ambitious growth plans in the renewables sector in MENA, Africa, Asia and Central Asia.

Chief Investment Officer Rajit Nanda added that the partnership with Silk Road Fund would support the economic transformation envisioned by the Belt and Road Initiative as well as Saudi Arabia's forward-looking Vision 2030.

Previously, both companies invested in two UAE-based projects: 2400MW Hassyan clean coal power plant; and the 950MW Hybrid CSP and PV fourth phase of MBR Solar Park, both in Dubai.

The state-owned Silk Road Fund was established in 2014 as a development and investment fund for trade and economic cooperation and connectivity under the BRI, according to the fund's website.

(Writing by Madhura Deulgaonkar; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

#Saudi Arabia #Acwa Power #Silk Road Fund #Renewable energy #Belt and Road Initiative

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