ACWA Power, the Saudi energy behemoth, has finalized an $80 million equity bridge loan with the Bank of China to support its endeavors in Uzbekistan. This milestone agreement, outlined in an official announcement, sees the payment divided evenly between Chinese yuan and US dollars. Notably, it signifies the inaugural loan collaboration between a Chinese bank utilizing its domestic currency and a Saudi-based company, marking a significant step in cross-border financial cooperation.
ACWA Power has stated that the funding will bolster its efforts in advancing the Tashkent solar photovoltaic power plant, totaling 200 megawatts, alongside a 500 MW per hour battery energy storage system project in Uzbekistan. The company emphasized that this transaction is the result of an earlier agreement forged during the 3rd Belt and Road Forum summit in October 2023, where ACWA Power's chairman served as a keynote speaker.
Abdulhameed Al-Muhaidib, ACWA Power's Chief Financial Officer, underscored the importance of this achievement, noting its congruence with Saudi Arabia's Vision 2030 and China's Belt and Road initiative. He said, “We are delighted to deepen our cooperation with the Bank of China to bring renewable energy at competitive tariffs to our key markets, including Uzbekistan”.
ACWA Power has established an enduring partnership with Chinese entities spanning more than 15 years, during which investments from the Asian nation in the company's projects have surpassed $10 billion. The General Manager of the Bank of China, Pan Xinyuan, said, “I believe that the Belt and Road Initiative is in harmony with Saudi Arabia’s Vision 2030. Bank of China will further leverage its strengths to support the cooperation between Saudi enterprises like ACWA Power and their Chinese partners for win-win objectives”.
He added, “Looking ahead, Bank of China will continue to improve financial connectivity to push the Belt and Road economies on a track of sustainable and high-quality development”. ACWA Power has been collaborating with multiple countries to develop its plants.
Earlier in the current month, ACWA Power finalized a $800 million deal with Senegal's Ministry of Water to establish a desalination plant. The company disclosed the signing of a water purchase agreement for the development of the facility in Dakar, Senegal, through a statement on the Saudi stock exchange, Tadawul. ACWA Power assumes responsibility for the infrastructure, design, financing, construction, operation, and maintenance of the Grande Cote seawater desalination plant in this West African nation.