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ACWA Power announced today, that on March 3, 2014, their fully owned subsidiary namely Saudi Arabian Water and Electricity Company (“SAWEC”) acquired a 6% indirect shareholding in Shuqaiq Water and Electricity Company (SqWEC) from Mitsubishi Corporation of Japan (“MC”). SqWEC owns an 850 MW power generation and 212,000 cubic meters per day of water desalination capacity IWPP Plant in Shuqaiq on the western shores of Saudi Arabia 130 km north of Jizan. The project started commercial operations in May 2010. Prior to this acquisition, SqWEC was owned by a group of government and private sector investors. The government ownership was in two parts; 32% by Public Investment Fund (PIF) and 8% by Saudi Electricity Company (SEC). The private sector ownership totals 60% of the project and was in three parts; ACWA Power (through SAWEC) owning 34%, Gulf Investment Corporation (“GIC”) owning 20% and MC owning 6%. The three private sector investors had invested in SqWEC through their holding company Shuqaiq International Water and Electricity Company (“SIWEC”). The 6% indirect stake of MC in SqWEC was acquired by ACWA Power (through SAWEC) by purchasing all of MC’s shares in SIWEC. ACWA Power through SAWEC had signed a Share Purchase Agreement for this purpose with MC on July 29, 2013. Upon completion of the transaction ACWA Power’s indirect stake in SqWEC has increased from 34% to 40%.  Paddy Padmanathan, CEO of ACWA Power, reiterated that “ Acquiring these shares was a part of ACWA Power’s  wider strategy to deploy its capital in earnings accretive and value creating transactions. This transaction represented such an opportunity to ACWA Power and furthermore also gave an opportunity to increase its stake in a project which was completed before time and below budget and where ACWA Power is the lead developer. ” »
ACWA Power International (“ACWA Power”), the Saudi Water and Power developer, owner and operator, announces that it has entered into a definite agreement with Summit Global Management VIII B.V. (“Summit Global”), a wholly-owned subsidiary of Sumitomo Corporation (“Sumitomo”), to acquire its 20% stake  in Shuweihat CMS International Power Company PJSC (“SCIPCO”), which owns the Shuweihat S1 Power and Desalination Plant (S1 Plant) and its  50% equity interest in the Shuweihat O&M Limited Partnership (“SOMLP”). The agreement to complete the acquisitions described above is conditional, inter alia, on certain consents being obtained, including those of the lenders to SCIPCO. The S1 Plant, is a brownfield plant with a net production capacity of 1,500 megawatts of electricity and 100 million imperial gallons of desalinated water a day (454,200 m3/d), located about 250 km southwest of the Emirate of Abu Dhabi and was the third Independent Water and Power Project (“IWPP”) commissioned by Abu Dhabi Water & Electricity Authority (“ADWEA”).The plant began its commercial operation in 2005 under a 20-year off-take agreement from the Abu Dhabi Water & Electricity Company (“ADWEC”). The combined cycle co-generation facility, constructed by Siemens AG, Germany and Fisia Italimpianti, Italy SCIPCO is 60% owned by Abu Dhabi National Energy Company (“TAQA”) and its parent company, ADWEA. The remaining 40% in SCIPCO is equally owned between Sumitomo and International Power / GDF SUEZ. The S1 Plant is managed, operated and maintained by SOMLP (jointly and equally owned by Sumitomo and International Power / GDF SUEZ) pursuant to a 20-year Operations and Maintenance (“O&M”) agreement. The S1 Plant accounts for approx. 12% of the total electricity generation capacity and approx. 11% of the total water production capacity in the Emirate of Abu Dhabi. Mr. Mohammad Abunayyan, ACWA Power Chairman, stated “This marks ACWA Power’s entry into yet another important market in the GCC, the third country within GCC after our significant positions in Saudi Arabia and Oman.  UAE is not only considered to have developed the best IPP/IWPP model across the globe, but also is a matured market and very high investment grade and creditworthy offtake. This investment will enhance the value to the shareholders of ACWA Power and strengthen its position as a major participant in the Power Generation and Water Desalination Market in the MENA region.”  Mr. Paddy Padmanathan, ACWA Power President & CEO, said “The transaction represents a unique prospect for us to participate in the project company and the O&M company of a best-in-class IWPP that represents a strategic asset in Abu Dhabi’s electricity and water infrastructure. It offers ACWA Power an opportunity to add significant capacity to its existing portfolio of power generation and water desalination assets.” The transaction is expected to close in March 2014, subject to closing conditions. Citigroup is acting as sole financial advisor to ACWA Power. »
On Saturday 30 November 2013, a consortium led by ACWA Power International (“ACWA Power”) which includes Samsung C&T, entered into a Power Purchase Agreement (“PPA”) with the Saudi Electricity Company (“SEC”) for the development, financing, construction, operation and maintenance of the Rabigh 2 Independent Power Project (“R2IPP”). The project, to be developed on a BOO (build, own, operate) basis, will be located in Rabigh, on the western coast of Saudi Arabia, 130 Km north of Jeddah adjacent to the Rabigh 1 IPP and other existing SEC facilities. The Project, the fourth in SEC’s IPP program represents another significant milestone in the Saudi power sector given that this will be the first IPP to utilize combined Cycle Power plant with a gross thermal efficiency of c.58.8 % at Reference Site Conditions at Rabigh. The project company “Al Mourjan For Electricity Production Company” has been established with the winning ACWA Power consortium and SEC owning 50% each. R2IPP is a greenfield independent power project with a net generation capacity of 2060 MW. The project will utilize Natural Gas as main Fuel and Arabian Super Light (ASL) as backup Fuel and with the application of combined Cycle Power plant in a configuration of three groups, each comprised of two gas turbines of enhanced efficiency, two heat recovery steam generators (“HRSG”) and one triple pressure steam turbine which will substantially reduce the fuel consumption, the impact on sea water temperatures and carbon emissions to the environment. R2IPP comprises 3 identical power blocks, each delivering a net output of 686.5 MW. The R2IPP plant will comply with all applicable environmental laws, guidelines, regulations and standards of the World Bank, IFC and the Saudi Presidency of Meteorology and Environment (“PME”). The project will deliver net 2060 MW of electricity to SEC under the PPA which has a term of 20 years from the scheduled commercial operations date of June 2017.  The winning consortium selected Siemens for the gas turbine generator unit and steam turbine generator unit, and Samsung C&T to engineer procure and construct (“EPC”) the project. Once completed, the plant will be operated by the First National Operation & Maintenance Company (“NOMAC”), a subsidiary of ACWA Power, under a long-term Operations & Maintenance (“O&M”) contract. The project agreements and finance agreements were all signed Saturday simultaneously. 74% of the total cost of the project of c. SAR 5.973 billion (USD 1.6 billion) is being funded by senior debt with the balance being provided by the shareholders in the form of equity bridge loans. The bank group contributing the senior debt comprises a mixture of international banks; Standard Chartered Bank (“SCB”), KfW-IPEX Bank (“KfW”) and Mizuho Bank (“Mizuho”) and local banks; Banque Saudi Fransi (“BSF”), Al Rajhi Bank (“ARB”), National Commercial Bank (“NCB”), Samba Financial Group (“Samba”) and Al-Inma Bank (“Al-Inma”). Four Saudi banks; BSF, NCB, Bank Al Jazirah and Bank Al Bilad are also providing equity bridge loans to the project. Mohammad  A. Abunayyan, Chairman of ACWA Power stated: “ACWA Power is proud to be the lead developer of Rabigh 2 IPP not only because it will be the most efficient power plant in the Kingdom and MENA regional as well, but also because we have been able to establish a team of developers, equipment suppliers, EPC Contractor, O&M contractor and international & local lenders who, working together have been able to achieve a competitive tariff for SEC, which in turn will help to deliver value to the economic expansion of the country and at the same time serve the electricity needs of more than 2.5 million people in more than four hundred thousand households.” The signing of these agreements today highlights a series of significant milestones: The fourth IPP launched by SEC. The most efficient power plant in the MENA region in general and Saudi Arabia in particular, which will reduce fuel consumption and maximize operational flexibility. ACWA Power brings the total savings delivered by all of the projects developed by ACWA Power so far, to the Saudi economy and its people, to a total of [SAR 8.656 Billion]. This project led by ACWA Power, the Kingdom’s well established developer and operator of power plants, also  continues to validate the thesis that a local developer leading such transactions puts the interests of the home country as its utmost priority; minimizing capital costs and operating expenses without compromising on reliability of power supplies for the duration of the contracted commitments, all the while ensuring fuel efficiency, reducing environmental impact and providing meaningful employment to the citizens of the country.   »
ACWA Power International (ACWA Power) has been awarded the 2013 “Project of The Year” prize for its Noor1 Concentrated Solar Power project and “Utility Company of The Year” by the Middle East Solar Industry Association Awards (MESIA) at an awards dinner ceremony in Abu Dhabi. The prestigious event was attended by the international solar industry community. Since its establishment in 2004, ACWA Power has made its indelible mark on the competitive landscape of the Power and Water industry in the MENA region, reaping awards from some of the most prestigious publications and industry associations. Earlier this year BOKPOORT (CSP) (IPP) was recognized as the 2013 Solar Deal of the Year by World Finance Magazine; a leading financial magazine. World Finance stated “Throughout the three month appraisal, World Finance cited BOKPOORT's scale, scope and complexity in reaching 21,000 homes as South Africa's first renewable technology at commercial scale to provide for the country's daily peak demand; and for having the largest thermal storage ever adopted for a solar plant”. Over the last nine years, ACWA Power has received numerous distinguished awards for its projects, initiatives, growth, CSR programs, and project financing models from a range of recognizing bodies & publications including SAGIA, Project Finance International, Global Water Intelligence, Euromoney, Thomson Reuters and World Finance. Paddy Padmanathan, President & CEO of ACWA Power said that “We are very proud to receive these prestigious awards from MESIA. These awards recognize our team of multidisciplinary professionals who have completed a large number of similar transactions.  The awards also recognize our ability to consistently select the optimal technical solution, partner with the most efficient engineering, procurement and construction (EPC) service providers and implement an effective operation and maintenance strategy to deliver the lowest possible tariff”. Padmanathan continued “Noor 1 CSP IPP is a milestone project where ACWA Power has again proved our model to be successful by demonstrating the cost at which solar power can be produced, which is significantly lower than what has been achieved to date.  Noor 1CSP IPP brought us closer to achieving our goal of reaching a total power production capacity target of 38,000 MW by the end of 2018 of which, maximum 10% will be from renewable sources”. Rajit NANDA, Chief Investment Officer of ACWA Power said “There is no greater honor than being recognized by one’s own peers, a humbling while at the same time highly motivating experience for our teams, given that we are being judged against well-established international competitors who are extremely active not just within the MENA region but who operate right across the world.” »
ACWA Power announced on Tuesday 8 October 2013 the establishment of an International Advisory Board and the appointment of the Chairman and three members; Dr. Abdullah I. El-Kuwaiz (Chairman), Kim Jong-Yong, Henri Meyers and Rachid Mohamed Rachid. Introducing an added depth to the company’s corporate governance, ACWA Power has created this International Advisory Board to provide an independent contribution to the Company’s strategic vision and expansion plans and to shed more light on specific knowledge on the wider geographic platform across which ACWA Power is already operating. The International Advisory Board will act as mentor and supplements the expertise of the Board of Directors in the wider field of ACWA Power’s operations and be an ambassadorial liaison that could support the operations of the business. Mohammad Abunayyan, ACWA Power Chairman, stated “As the company grows rapidly, we have strengthened the company by recruiting seasoned experienced professionals in the main areas of operation. In assuring best practices in corporate governance and strategic development the Board is now seeking the advice of world renowned experienced professionals in economy, political risk, technology and international markets. We are sure the Advisory Board will contribute to the company overall strategies and mission and play an instrumental role in achieving the company’s next five year strategic objectives.” Abunayyan added “The Advisory Board will advise the Board of Directors on strategies, vision, geographical growth and new market penetration. As ACWA Power expands into new regions and markets the Advisory Board will assist the Board of Directors in assessing the feasibility of new technology and fuel mixes beyond oil and gas to include coal and all forms of renewable energy. Its members will also advise on political risk parameters, market potential and expected economic viability and stability of new markets and expansion in markets where ACWA Power currently operates.” Dr. Abdullah I. El-Kuwaiz, the Chairman of the Advisory Board has over 50 years’ experience and is a well renowned economist. He has held several positions regionally and in the Saudi public and private economic landscape including the position of Deputy Minister for Economic Affairs at the Saudi Ministry of Finance and National Economy of Saudi Arabia, Ambassador of the Kingdom of Saudi Arabia to the Kingdom of Bahrain. For many years he has served as chairman, CEO and a member of the board of regional development institutions such as Islamic Development Bank, Arab Monetary Fund and Arab Fund for Economic Development in addition to other banks and companies. He is currently the vice chairman of both Oxford Institute for Energy Studies and The Arab Energy Club. Kim Jong-Yong, a Korean national, joins the ACWA Power Advisory Board after serving as the Korean Ambassador Extraordinary and Plenipotentiary to the Kingdom of Saudi Arabia. He holds degrees from Hangkuk University, Seoul and the University of Qatar and has a long distinguished career in the area of diplomacy and energy sector where he served as an ambassador of energy and resources in his country, Korea. Henri Meyers, a Belgian national, joins the ACWA Power Advisory Board with forty years of experience in the international power business. He is a former Executive Vice President at GdF-SUEZ Energy International with overall responsibility of business development. Mr. Meyers has significant experience in board representation and in emerging markets in various senior positions. Rachid Mohamed Rachid is a former Minister of Trade and Industry of Egypt. In addition he is a business entrepreneur. His career spans more than two decades in international business holding positions such as President of Unilever North Africa, Middle East, and Turkey and Chairman of the Board and consultant for a number of leading multinational companies based in the United Kingdom. »

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