Saudi Arabia’s ACWA Power has secured SAR 2.07 billion ($553 million) in financing for its Ras Mahisan Independent Water Desalination Project through a consortium of local and international banks, strengthening its presence in the Kingdom’s water sector, according to a disclosure published on the Saudi Stock Exchange (Tadawul) website on Thursday.
The banks participating in the financing are Banque Saudi Fransi, Riyad Bank, Saudi Investment Bank, and Standard Chartered. The company owns a 45% stake in the Ras Mahisan 1 desalination plant project, located on the Red Sea coast in the western region of the Kingdom, approximately 300 kilometers south of Mecca.
ACWA Power invests in multiple renewable energy projects, power generation plants, and water desalination and treatment plants in Saudi Arabia and several other countries, including Egypt, Turkey, Morocco, Indonesia, and other Asian and African countries.
ACWA Power plans to invest $2 billion annually
The Saudi Public Investment Fund is the largest shareholder of ACWA Power, with a stake of approximately 44.16% of its capital, while the company’s market value is estimated at around 180 billion riyals.
The company plans to invest between $2 billion and $2.5 billion annually in new projects during the period from 2024 to 2030, compared to an average of $1 billion to $1.3 billion in previous years, according to the company’s Chief Financial Officer, Abdulhameed Al-Muhaidib, in statements to Al-Eqtisadiah newspaper last July.
The new project includes the construction of a water desalination plant using reverse osmosis technology with a production capacity of up to 300,000 cubic meters per day, along with supporting infrastructure including tanks with a capacity of 600,000 cubic meters, in a move that expands the company’s investments in the water sector and supports vital infrastructure projects in Saudi Arabia.
