Silk Road Fund move strengthens strategic ties between Saudi Arabia and China
China's Silk Road Fund has taken a 49 percent stake in ACWA Power's renewable energy platform that currently owns a number of its existing renewable energy projects.
ACWA Power RenewCo will own ACWA Power’s CSP, PV, and wind assets across the United Arab Emirates, South Africa, Jordan, Egypt and Morocco, yielding an aggregate capacity of 1668 MW. No financial details of the transaction were released.
Rajit Nanda, chief investment officer at ACWA Power said: “As a leading developer of power and water assets in the region, and being based in a Belt and Road country, welcoming Silk Road Fund on board as a shareholder further cements our position of being able to support both the economic transformation envisioned by the Belt and Road Initiative as well as Saudi Arabia’s forward looking Vision 2030.”
ACWA Power and Silk Road Fund have previously successfully co-invested in two UAE-based projects, including the 2400MW Hassyan clean coal power plant, and the 950MW Hybrid CSP and PV fourth phase of MBR Solar Park to respectively power 1.3 million people and 320,000 residential homes.
The Silk Road Fund is a medium-to-long term development and investment fund established in Beijing under the framework of ‘Belt and Road Initiative’.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.