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Saudi Arabia’s Diriyah Company Signs $2 Billion Development Contract

The joint venture contractors include Saudi Arabia-based El Seif Engineering Contracting (ESEC) and China State Construction Engineering Corporation (CSCEC). (Photo: Asharq Al-Awsat)
The joint venture contractors include Saudi Arabia-based El Seif Engineering Contracting (ESEC) and China State Construction Engineering Corporation (CSCEC). (Photo: Asharq Al-Awsat)
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Saudi Arabia’s Diriyah Company Signs $2 Billion Development Contract

The joint venture contractors include Saudi Arabia-based El Seif Engineering Contracting (ESEC) and China State Construction Engineering Corporation (CSCEC). (Photo: Asharq Al-Awsat)
The joint venture contractors include Saudi Arabia-based El Seif Engineering Contracting (ESEC) and China State Construction Engineering Corporation (CSCEC). (Photo: Asharq Al-Awsat)

The Diriyah Company, which is affiliated with the Saudi Public Investment Fund (PIF), announced on Wednesday the signing of the largest construction contracts awarded in the history of the region, with a value exceeding SAR7.8 billion ($2 billion).
The joint venture contractors include Saudi Arabia-based El Seif Engineering Contracting (ESEC) and China State Construction Engineering Corporation (CSCEC), the company said in a statement.
It added that the project includes building a mixed-use district with advanced educational institutions, cultural sites, modern offices, and a luxury hotel, within the framework of the Diriyah Development, which represents the Kingdom’s most important historical and cultural destination, and one of the most prominent projects of Vision 2030.
Jerry Inzerillo, Diriyah Company Group CEO, said: “We are thrilled to announce the award of this major contract to build the exciting mixed-use district in the north of Diriyah. This represents a major step in our accelerating development strategy and commitment to making Diriyah a place for the world to be able to learn, absorb culture, and experience a vibrant and welcoming visitor destination.”
He continued: “The agreement with CSCEC is a further example of the ever-closer economic ties and constructive business partnerships that are being built between Saudi Arabia and China.”
For his part, Ahmed Al Bassam, CEO of ESEC, said: “We are enormously proud to continue our strategic partnership with the Diriyah Company and to be entrusted with a project of such importance in developing some of the highest profile assets within the Diriyah development area, and indeed across the Kingdom.”
In turn, Chuanhai Wei, Vice President of CSCEC Middle East General Manager at CSCEC KSA Branch, stated: “This contract marks another landmark opportunity for CSCEC to work once again with our strategic partners at El Seif Engineering Contracting Company and the Diriyah Company in building an extraordinary new city on the outskirts of Riyadh. We are delighted to be working on such a large-scale and ambitious project once more.”

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ACWA Power Signs Sale Deal with Chinese Company on Renewable Energy Project

The  transaction represents the first co-investment transaction between ACWA Power and China Southern Power Grid for a large-scale renewable energy project in Central Asia. - SPA
The  transaction represents the first co-investment transaction between ACWA Power and China Southern Power Grid for a large-scale renewable energy project in Central Asia. - SPA
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ACWA Power Signs Sale Deal with Chinese Company on Renewable Energy Project

The  transaction represents the first co-investment transaction between ACWA Power and China Southern Power Grid for a large-scale renewable energy project in Central Asia. - SPA
The  transaction represents the first co-investment transaction between ACWA Power and China Southern Power Grid for a large-scale renewable energy project in Central Asia. - SPA

Saudi-listed ACWA Power, the world's largest private water desalination company, announced in a press release on Wednesday the completion of a Sale and Purchase Agreement to sell 35% of its shareholding in ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company Limited to China Southern Power Grid International (HK) Co. Ltd (CSGIHK), the global investment and development arm of China Southern Power Grid (CSG).
Following the successful completion of the conditions precedent, a closing ceremony was held in Tashkent to mark the transaction's completion, SPA reported.
The transaction represents the first co-investment transaction between ACWA Power and China Southern Power Grid for a large-scale renewable energy project in Central Asia. This milestone follows framework agreements signed in December 2022 between ACWA Power and Chinese companies that lay the ground for financing, investment, and construction of ACWA Power's global clean and renewable energy projects in Saudi Arabia and Belt and Road Initiative countries.
ACWA Power's CEO expressed enthusiasm about the collaboration, emphasizing the importance of international cooperation in delivering sustainable solutions.

"Through strategic collaboration with China Southern Power Grid International, we are proud to announce a significant milestone in our journey towards sustainable energy solutions. The agreement in relation to our Bash and Dzhankeldy wind projects in Uzbekistan not only enhances ACWA Power's global presence but also strengthens ties between two industry leaders from different regions. This historic partnership underlines our commitment to driving innovation and progress in the renewable energy sector," he said.
The ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company Limited hold 100% stakes in ACWA Power Bash Wind LLC ("Bash") and ACWA Power Dzhankeldy LLC ("Dzhankeldy"), respectively, representing a combined 1GW of capacity with an investment cost of over USD 1.3 billion.
Upon completion, the Bash and Dzhankeldy wind power plants are set to become some of Central Asia's largest renewable energy projects. Uzbekistan is ACWA Power's second-largest market in terms of investment cost, underscoring the company's long-standing commitment to the country, the release said.