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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.

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Saudi Arabia Has Most Stable Inflation Rate Compared to G20 Countries

A supermarket in Saudi Arabia (Asharq Al-Awsat)
A supermarket in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Has Most Stable Inflation Rate Compared to G20 Countries

A supermarket in Saudi Arabia (Asharq Al-Awsat)
A supermarket in Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia has managed to control inflation in recent months, recording 1.5 percent in June, on an annual basis. This shows that the Kingdom is one of the most stable countries in the G20, with an inflation rate that remains inferior to the global target of 2 percent.

Data issued by the General Authority for Statistics (GASTAT) on Tuesday revealed that residential rents had the biggest influence on inflation in June, compared to the same month last year, as they rose by 10.1 percent.

On a monthly basis, the inflation rate decreased in June, reaching 1.5 percent, compared to 1.6 percent the previous month.

Experts told Asharq Al-Awsat that the rate shows the efficiency of Saudi Arabia’s economic management and liquidity to ensure a balance between growth and inflation. They said the government is making great efforts to adopt the adequate procedures and measures in order to confront the wave of inflation and rising prices that has recently swept the world.

Economic policy analyst Ahmed Al-Shehri told Asharq Al-Awsat that the inflation rate in Saudi Arabia is still under control, and below the global target, noting that it has decreased to 1.5 percent last June, after witnessing slight increases over the past months.

According to Al-Shehri, the annual inflation rate reaching 1.5 percent is mainly due to the increase in housing rental prices by 10.1 percent.

He said the cash supply in Saudi Arabia reached SAR2.9 trillion ($778.1 billion), in parallel with the slowdown in annual inflation to record 1.5 percent in June, which reflects the efficiency of economic management and liquidity to ensure a balance between growth and inflation.

For his part, legal advisor and professor of commercial law, Dr. Osama Al-Obaidy, told Asharq Al-Awsat that the government has resorted to early precautionary measures that helped avoid the inflation crisis.

The stability of the inflation rate highlights the success of the Kingdom’s financial policies and its support for the private sector, in order to raise manufacturing productivity and increase strategic reserves of basic materials and ensure their availability, he said.