Saudi Arabia’s Public Investment Fund increases stake in Acwa Power to 50 per cent
Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) increased its ownership stake in local developer Acwa Power from 33.6 per cent to 50 per cent.
Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) increased its ownership stake in local developer Acwa Power from 33.6 per cent to 50 per cent.
The investment is part of PIF’s plans to diversify its holdings into renewable energy.
Acwa Power is the largest developer, investor and operator of power generation and desalination plants in the Middle East. The group 58 assets in operation, construction or advanced development across 12 countries.
By the end of 2019, the value of the group’s portfolio was valued at $47.9bn, which included stakes in power generation projects with a capacity of 30.9GW and desalination projects which can produce a total of 5.3 million cubic metres a day.
Approximately 74 per cent of Acwa Power’s power generation holdings are in clean-energy projects.
A consortium led by Acwa Power was recently awarded a public-private partnership (PPP) contract by the Red Sea Tourism Development Company (TRSDC) to develop the utilities and related infrastructure for the Red Sea Tourism project in the Saudi Arabia.
The PPP contract will include the provision of power and water production, sewage treatment and solid waste treatment. The Red Sea Development Company is owned by sovereign wealth vehicle Public Investment Fund (PIF), and the PIF will provide the guarantee for the 25-year offtake agreement.
In a released statement following the increase of its holding in Acwa Power, PIF said:
“PIF’s increased stake is an endorsement of ACWA Power’s ambition and progress. PIF is a long-term investor and is committed to actively enable the development of key economic sectors, such as Renewables, in Saudi Arabia. We believe that Acwa Power will play a significant role in both driving and diversifying economic growth in the future – while also providing enduring commercial return for the people of the Kingdom. We are proud to be part of this company’s long-term development.”
PIF’s initial investments in Acwa Power were made in 2013, when Sanabil, a fully-owned subsidiary of PIF, acquired a stake in the developer. PIF made its first direct investment in Acwa Power in 2018.
The PIF is set to oversee the development of 70 per cent of Saudi Arabia’s ambitious target to develop 58.7GW of clean energy projects over the next decade.
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