ACWA Power announced the signing of a Share Purchase Agreement (SPA) with the regional subsidiary of French utility developer ENGIE to acquire the latter’s stakes in some of the assets in the region.
The acquisition, estimated at a cost of $693 million, encompasses operating capacities of 4.61GW of gas-fired power generation and 1.11 million cubic meters per day (m3/day) of water desalination facilities, as well as the related operations and maintenance companies in Kuwait and Bahrain.
Under the terms of the agreement, ACWA Power will acquire ENGIE’s shares in the four key operating assets.
This includes an 18 per cent stake in the Az Zour North (IWPP) in Kuwait, alongside 45 per cent stakes in both the Al Ezzel (IPP) and Al Dur (IWPP) projects, as well as a 30 per cent stake in the Al Hidd (IWPP) facility, all situated in Bahrain.
ACWA Power will also acquire a portfolio of companies responsible for the operation and maintenance of the four assets, specifically Az Zour North O&M Company (50 per cent stake) and Al Ezzel O&M Company (100 per cent stake).
Marco Arcelli, Chief Executive Officer of ACWA Power, said the acquisition represents a pivotal milestone for ACWA Power, reinforcing its position as a global leader in water desalination.
“We consolidate our presence in Bahrain where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant,” he said.
Thomas Brostrom, Chief Investment & Development Officer of ACWA Power, said the secured contracted revenue streams from the acquired assets reinforce the company’s broader strategy of tripling its assets under management to $250 billion by 2030.
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