Power generation and water desalination developer Acwa Power has completed a transaction to introduce Silk Road Fund as a partner and 49% shareholder in Acwa Power Renewable Energy Holding.
Acwa Power Renewable Energy Holding is Acwa Power’s renewable energy platform that currently owns a number of projects in the United Arab Emirates (UAE), South Africa, Jordan, Egypt and Morocco, yielding an aggregate power capacity of 1 668 MW.
The platform capitalises on the rapidly growing potential for renewable energy in emerging markets.
“After announcing the agreement last year, we are pleased to have completed the transaction on May 12. Our partnership with the Silk Road Fund is testament to the robust relations between Saudi Arabia and China.
"Our collaboration will enhance Acwa Power’s growth plans in the renewables sector in Africa, Asia, Central Asia and the Middle East and North Africa region,” says Acwa CEO Paddy Padmanathan.
Acwa chief investment officer Rajit Nanda adds that having the Silk Road Fund as a partner is a strategic step for the company in supporting the economic transformation envisioned by the Belt and Road initiative, as well as Saudi Arabia’s forward-looking Vision 2030.
“This partnership reaffirms Acwa’s strong commitment to contributing to the green development of the regions with its reliable financial stability, cementing the company’s position as an attractive investment partner to stakeholders, locally and globally,” Nanda notes.
This transaction marked the third successful collaboration between the company and the Silk Road Fund. Previously, both companies invested in two flagship UAE-based projects, including the 2 400 MW Hassyan clean coal power plant.
The Silk Road Fund is a State-owned investment fund of the Chinese government.