A newly-formed International Company for Water and Power Projects (ACWA Power International) was formally introduced in Saudi Arabia, which will develop, own and operate seawater desalination and power generation projects worldwide.
Concurrently, ACWA Power International announced that it has acquired ACWA Power Projects, the leading developer and operator of seawater desalination and power generation plants in Saudi Arabia.
This move by ACWA Power International will build on the existing portfolio of plants developed and owned by ACWA Power Projects to produce 4,855 MW and 2.24 million m3 of water per day. With a fully paid up capital of $780m to be increased within the next few months to $1.06bn, ACWA Power International is structured as a joint stock company.
In addition to the original founders and stakeholders, namely, ACWA Power Development and Mada who remain as anchor investors in ACWA Power International, Mohammad and Abdullah Al-Subaiei Co; Abdul-Latif and Mohammad Al-Fouzan Co; Al-Mutlaq Group of Companies; Omar Kassem Al-Esayi Group; and Al Mojel Trading and Contracting all of whom had co-invested at the outset with ACWA Power Projects in some of the individual transactions will all be taking up shareholdings in ACWA Power International, thus expanding our ownership base.
The parent company will utilize a similar operating philosophy as the seed company. ACWA Power International will function as a developer of independent water and power projects structured on a concession or utility outsourcing contract model financed using a limited recourse, project finance framework.
As a lead developer, ACWA Power International will identify global opportunities for which it assembles a consortium of development partners, identify the optimum technical solution, negotiate competitive EPC and O&M Contracts, prepare a sustainable business case and a robust financial model, structure equity and debt financing, and present a responsive offer delivering value for money in the tariff..
It is worth noting that ACWA Power Projects, the seed company, was founded in 2004 and has since participated in the development of a number of water and power projects throughout the Kingdom of Saudi Arabia. These include the Marafiq Jubail IWPP, the Rabigh IWPP, the Shuaibah IWPP and its expansion, the Shuqaiq IWPP, as well as the self-contained, floating desalination plants under the brand name Bowarege. These projects are in various phases of development and are expected to become operational between 2008 and 2010.
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