Saudi energy firm ACWA Power recently announced its attainment of a 3-year renewable credit facility agreement with China Construction Bank. This agreement enables Aqua Power to obtain credit facilities worth $100 million.
According to released information, the agreement will be utilized to support ACWA Power's strategic plans, particularly the expansion of its portfolio of power generation and water desalination projects in the Middle East region and countries participating in the Belt and Road Initiative.
“The revolving credit facility by China Construction Bank is an outcome of the ongoing collaboration between ACWA Power and Chinese entities, boosting our near-term liquidity and funding flexibility as we pursue strategic growth opportunities,” said Abdulhameed Al-Muhaidib, the chief financial officer of ACWA Power.
“Most importantly, it goes to show the confidence that financiers have in our business performance and in our ability to deliver large-scale projects of transformative social and economic value,” said Al-Muhaidib.
The renewable credit facilities assist ACWA Power in diversifying its sources of funding and enable the continued development of low-carbon infrastructure for the energy firm’s projects in various operational regions, including the Middle East and Belt and Road Initiative countries such as Uzbekistan and Kazakhstan.
Yuan Shengrui, a senior executive of China Construction Bank at the Dubai International Financial Centre branch, said: “The credit facility is reflective of the branch’s interest to strengthen its strategic partnership with ACWA Power and to promote the development of renewable energy projects in line with the directives of the Belt and Road Initiative.”
“We believe that we can make a meaningful impact in this sector and work with our partners to achieve the desired positive change, in order to create a better future for our planet,” added Shengrui.
“This is done through supporting reputable global institutions like Aqua Power,” he explained.
Both ACWA Power and the China Construction Bank have collaborated in the UAE’s 2,400 megawatts Hassyan power plant, a project jointly developed by a consortium of China’s Harbin Electric International and Dubai Electricity and Water Authority.
Moreover, the 485 MW Zarqa gas power plant in Jordan and the 1,500 MW Sirdarya combined-cycle gas turbine power plant in Uzbekistan were also a result of a collaboration between the two parties.
