Riyadh – Mubasher: ACWA Power Company penned a share purchase agreement (SPA) on 14 September 2022 to sell a large stake in the 1,500 megawatts (MW) Sirdarya combined cycle gas turbine (CCGT) plant in Uzbekistan to Silk Road Fund for $130 million.
Under the deal, ACWA Power will hold 51% equity, while China’s Silk Road Fund will own the remaining 49% of the Sirdarya facility, the Saudi company announced.
The agreement, which marks the two entities' first strategic partnership in Uzbekistan and Central Asia, is expected to be concluded by the fourth quarter (Q4) of 2022.
Located in the Uzbek city of Shirin, the project will start operating in early 2024, with plans to displace 2 million tonnes of carbon emissions annually.
The Sirdarya facility will represent 8% of Uzbekistan’s total power capacity once completed in two years to meet 15% of the country’s power demand across industry and households.
Being the contractor of the joint project, China Energy Engineering Corporation started the construction work at the beginning of 2021. Meanwhile, the National Electric Grid of Uzbekistan (NEGU) will function as the sole offtaker of the plant for 25 years.
In line with its capital recycling strategy, the Saudi company will use the proceeds of the transaction for general corporate purposes.
Furthermore, the Tadawul-listed firm expected that the agreement will not have any material impact on its income statements or operations.
ZHU Jun, Chairwoman of Silk Road Fund, said: “The Sirdarya project symbolises the cooperation under the Belt and Road Initiative among China, Saudi Arabia, and Uzbekistan.”
She added: “Silk Road Fund will partner with ACWA Power to bring cleaner power in a more efficient way to local people.”
In December 2021, ACWA Power Wind Karatau, an affiliate of ACWA Power, inked a power purchase agreement (PPA) with NEGU for the 100-megawatt Nukus wind farm which is valued at $108 million.
During the first six months (6M) of 2022, ACWA Power recorded a 21.22% surge in net profit after Zakat and tax to SAR 541.72 million, versus SAR 446.88 million in the year-ago period.
