Saudi Arabia’s ACWA Power has signed strategic agreements with three large Chinese institutions for the development of energy and water projects as part of China’s Belt and Road Initiative.
ACWA Power has been deepening its ties with Chinese groups as it pursues an aggressive expansion of renewable and conventional power capacity.
China’s Silk Road fund is a major shareholder in ACWA Power’s record-breaking $4.4 billion Noor Energy 1 CSP-PV project in Dubai. Chinese banks will provide the majority of international financing for the project and Shanghai Electric is the lead engineering procurement contractor (EPC).
Last year, ACWA Power and major EPC group China Energy Engineering Corporation (CEEC) agreed to explore joint investment opportunities in power generation and water desalination in the Middle East and Asia.
During Belt and Road talks on April 29, ACWA Power entered into an agreement with China Gezhouba Group International Engineering Company (CGGC), lead EPC provider for ACWA Power’s 1.2 GW Nam Dinh 1 Independent Power Project (IPP) in Vietnam.
The $2.4 billion Nam Dinh 1 is being jointly developed by ACWA Power and Korean Taekwang Power.
Within the agreement, CGGC will assist sponsors to obtain project finance from Chinese financial institutions, ACWA Power said.
ACWA Power also signed a memorandum of understanding (MOU) with the General Manager of Bank of China Hochiminh City Branch, covering general financial service agreements for the Nam Dinh 1 project.
The Bank of China is one of the four biggest state-owned commercial banks in China and is the lead financing bank for Nam Dinh 1.
ACWA Power also signed an EPC contract with China’s SEPCO III Electric Power Construction Corporation for its Al Taweelah desalination plant in Dubai. The facility will supply up to 200 million gallons of water per day, making it the world’s largest desalination facility.
China International CSP Conference（CPC2019） is to be held on 10-12,July,in Suzhou, China. During the conference, Global CSP professionals will conduct in-depth exchanges with each other in CSP supply chain.
For more details of the conference, please contact: Catherine@cspplaza.com