ACWA Power Signs $545 Mn Financing Agreement for Rabigh-4 in Western Saudi Arabia

ACWA Power is developing multiple energy and water desalination projects in Saudi Arabia (Asharq Al-Awsat)
ACWA Power is developing multiple energy and water desalination projects in Saudi Arabia (Asharq Al-Awsat)
TT

ACWA Power Signs $545 Mn Financing Agreement for Rabigh-4 in Western Saudi Arabia

ACWA Power is developing multiple energy and water desalination projects in Saudi Arabia (Asharq Al-Awsat)
ACWA Power is developing multiple energy and water desalination projects in Saudi Arabia (Asharq Al-Awsat)

ACWA Power signed financing and guarantee agreements for Rawabi Water Desalination Company for the Rabigh-4 Independent Water Plant in Yanbu.

Under the agreements, ACWA Power will receive long-term financing worth $545.3 million, according to information released on Sunday.

- Financing alliance

According to a Saudi Stock Exchange (Tadawul) statement, the financing party is represented by a financing alliance consisting of local and international banks, including Standard Chartered, the Saudi National Bank, Riyad Bank, and the Saudi Bank.

- Investment cost

According to the information, the project's total investment cost is $678 million, financed through long-term debt and shareholders' capital.

ACWA Power's share in the project in Rabigh, western Saudi Arabia, is 45 percent.

The Rabigh 4 IWP Project has a 600,000 m3/ day seawater reverse osmosis (SWRO) desalination plant, a PWSF tank of 1,200,000 m3, and a PV capacity of 6.804 MWp.

ACWA Power explained that seawater reverse osmosis is a hot topic in the water treatment industry, with the lowest energy requirements, some of the highest usage rates, and one of the best filtration rates on the market.

- Project award

In July, ACWA Power announced the signing of an engineering, procurement, and construction (EPC) contract with a consortium of Power China, SEPCOIII, and WETICO for the 600,000 m3/day Rabigh 4 Independent Water Plant (IWP) project.

Financial close for the project is expected during the third quarter of 2023.



China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)
TT

China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)

Chinese lawmakers are deliberating a draft of the country's first basic law specifically focused on the development of the private sector, the country’s Xinhua news agency reported.

“The law will be conducive to creating a law-based environment that is favorable to the growth of all economic sectors, including the private sector,” said Justice Minister He Rong, while explaining the draft on Saturday during the ongoing session of the Standing Committee of the National People's Congress, the national legislature.

The draft private sector promotion law covers areas such as fair competition, investment and financing environments, scientific and technological innovation, regulatory guidance, service support, rights and interests protection and legal liabilities.

The draft has incorporated suggestions solicited from representatives of the private sector, experts, scholars and the general public, the minister said.

China left its benchmark lending rates unchanged as expected at the monthly fixing on Friday.

Persistent deflationary pressure and tepid credit demand call for more stimulus to aid the broad economy, but narrowing interest margin on the back of fast falling yields and a weakening yuan limit the scope for immediate monetary easing.

The one-year loan prime rate (LPR) was kept at 3.10%, while the five-year LPR was unchanged at 3.60%.

In a Reuters poll of 27 market participants conducted this week, all respondents expected both rates to stay unchanged.

Morgan Stanley said in a note that the 2025 budget deficit and mix are more positive than expected and suggest Beijing is willing to set a high growth target and record fiscal budget to boost market confidence, but further policy details are unlikely before March.

Last Friday, data released by the country's central bank said total assets of China's financial institutions had risen to 489.15 trillion yuan (about $68.03 trillion) by the end of third quarter this year.

The figure represented a year-on-year increase of 8%, said the People's Bank of China.

Of the total, the assets of the banking sector reached 439.52 trillion yuan, up 7.3% year on year, while the assets of securities institutions rose 8.7% year on year to 14.64 trillion yuan.

The insurance sector's assets jumped 18.3% year on year to 35 trillion yuan, the data showed.

The liabilities of the financial institutions totaled 446.51 trillion yuan, up 8% year on year, according to the central bank.

Separately, data released by the National Energy Administration on Thursday showed that China's electricity consumption, a key barometer of economic activity, rose by 7.1% year on year in the first 11months of the year.

During the period, power consumption of the country's primary industries increased by 6.8% year on year, while that of its secondary and tertiary sectors rose by 5.3% and 10.4%, respectively.

Residential power usage saw strong growth of 11.6% during this period, the administration said.

In November alone, power usage climbed 2.8% from one year earlier, according to the data.