A consortium including ACWA Power, the largest private sector water and power company in Saudi Arabia and Taekwang Power Holdings Company Limited of Korea, announced that they signed a joint development agreement to develop Nam Dinh 1 IPP Project, 1200 MW (first phase) coal fired power project, located in Hai Hau District, Nam Dinh Province, 150 Km Southeast of Hanoi, Vietnam.
Nam Dinh1 IPP Project is a Greenfield Independent Power Project (IPP) to be developed on a Build, Own, Transfer (BOT) basis with a total investment cost of more than US$ 2 billion. The plant is to be equipped with new application of clean technologies for coal utilization - Circulating Fluidized Bed Combustion (CFBC) as an alternative to Pulverized Coal Combustion (PCC) for power generation with the coal supplied by Vinacomin, a government owned coal mined company.
The off-taker for the Project will be Electricity of Vietnam (EVN), the government owned national utility. The operation and maintenance of the Project will be undertaken by the consortium with a leading role by NOMAC, a subsidiary of ACWA Power. POSCO E&C from Korea has been selected as a preferred bidder for the Engineering, Procurement and Construction (EPC) of the Project.
Paddy Padmanathan, President & CEO of ACWA Power stated “This project is yet another milestone in ACWA Power’s strategic growth story, and its first foray into South East Asian power sector”.
Thamer Al-Sharhan, MD of ACWA Power, stressed that, “the Project will aid the local economy and contribute to significant economic value retention within Vietnam”.
Rajit Nanda, ACWA Power’s Chief Investment Officer said “this Project in Vietnam is really meaningful to ACWA Power; in fact, this will offer a stepping stone for ACWA Power to eventually expand into its strategic markets of Philippines and Indonesia which have similar cultures and market structures” ”
Since inception in October 2004, ACWA Power has been a trailblazer by establishing an enviable track record of consistently exceeding expectations in the MENA Power and Water landscape. This is on the back of its core values of ingenuity, innovativeness and a “can do” spirit as the company reliably delivers on its mission of being the lowest cost producer of water and power for its clients. This success is evidenced by the strong steady growth of its portfolio which today is of USD 22.9 billion in value comprising 26 assets with a capacity of 16,000 MW of electricity generation capacity in addition to 2.4 Mn m3 per day of desalinated water production capability, all in just under ten years.
ACWA Power’s extraordinary success has also not gone unnoticed by the industry attracting a steady stream of top accolades which included the much coveted PFI’s Global Sponsor of the Year (2011) award. The year 2013 was no exception and with ACWA Power’s successful foray into the Renewables sector with the financial closing of watershed projects in Morocco and South Africa; both becoming well recognized. Similarly on the conventional fuel front, the 2,060 MW gas fired Rabigh 2 IPP which set a new benchmark for thermal efficiency was also well lauded. The awards received by these projects include;
Middle East Solar Industry Association’s (MESIA) “the Utility Company of the Year” and “Project of the Year” awards for ACWA Power’s NOOR1 CSP IPP project in Morocco.
Project Finance International; a Thomson Reuters publication has awarded the ACWA Power led Bokpoort CSP IPP project the “African Renewable Deal of the Year” and “Solar Deal of the year 2013” by World Finance Magazine; a leading financial magazine. In its appraisal, World Finance recognized Bokpoort CSP IPP 's scale, scope and complexity in reaching 21,000 homes as South Africa's first renewable technology at commercial scale to provide for the country's daily peak demand; and for having the largest thermal storage ever adopted for a solar plant as supporting arguments for the award.
NOOR1 CSP IPP and Rabigh2 IPP were also named “African Solar Deal of the Year” and “Middle East Deal of the Year” respectively by the Project Finance Magazine. EMEA magazine has also awarded Rabigh2 IPP “Best Financing Deal of the Year”.
But well beyond these awards for specific projects, it is the MEED Angus Hindley Award “for Project Excellence” and the “Fund Awards” as Energy Investment Firm of the year and the “M&A Awards” as Infrastructure Industry Fundraising Team of the year by Acquisition International Magazine, published by AI Global Media Ltd, which has reinvigorated corporate finance news and reporting that gives due recognition to the scale and breadth of ACWA Power’s achievements
Paddy Padmanathan, President & CEO of ACWA Power noted that "No honor is more valuable than one that is bestowed on one by one’s peers and I dedicate each and every one of these awards to the professionals at ACWA Power who are all individually and collectively committed to making a difference by pushing through preconceived barriers to deliver step change with a single minded focus on the mission of the company of reliably providing electricity and desalinated water at the lowest possible cost by consistently selecting the optimal technical solution, partnering with the most efficient engineering, procurement and construction (EPC) service provider; implementing an optimum operation and maintenance strategy; and formulating business cases to structure the most competitive equity and debt financing”
Rajit Nanda, Chief Investment Officer of ACWA Power added that “These awards, none of which we take for granted, play an important role in fuelling entrepreneurial spirit amongst individual businesses and encourage them to take on greater challenges. A related benefit is that the ensuing public dissemination of transaction details adds to the industry’s knowledge base and promotes best practices”.
International Company for Water & Power Projects (“ACWA Power”) and Arab Petroleum Investments Corporation (“APICORP”) announced today the official signing of a co-investment initiative, wherein both parties will join hands with APICORP co-investing with ACWA Power in its various projects in the power generation and water desalination space and across the various core geographies of ACWA Power. The initiative shall encompass both conventionally fired power generation facilities as also investments within the renewable energy space.
This path breaking initiative brings together the leading Saudi Arabian private developer and operator with an expanding geographic footprint and a class leading multilateral financial institution with a presence across the Arab world and possessing best in class capabilities in project evaluation and execution. In effect, the initiative endeavors to draw upon business synergies and deepen institutional relationship and cooperation.
Speaking on the occasion, Mr. Paddy Padmanathan, President & CEO of ACWA Power, stated that “the co-investment initiative with such a strong financial partner like APICORP will strengthen our capacity to fund our growth plans of doubling our power generation portfolio from 15.7 GW to 39 GW of electricity generation and 2.4 million m3/day to 5 million m3/day of desalinated water production by the year 2018.”
Speaking on the occasion, Mr. Ahmed –Al-Nuaimi, General Manger & CE of APICORP, stated that “the co-investment initiative with ACWA Power goes very well with the new investment strategy and guidelines as per the Board of Directors of APICORP and will enhance the diversification of investments and achieve strategic benefits through the creation of investment opportunities in the Gulf region in particular and the Arab region in general and will marks APICORP’s entry into yet another important market sector. This investment will enhance the value to the shareholders of APICORP and support its position in the Power Generation and Water Desalination Market in the MENA region. And APICORP is proud to sign the co-investment initiative with ACWA Power.”
Furthermore, Mr. Thamer Al Sharhan, Managing Director of ACWA Power congratulated the ACWA Power and APICORP teams on the signing of the co-investment initiative and said “This partnership capitalizes on the alignment of the business objectives of both APICORP and ACWA Power which is focused on not only delivering to the strong demand for power and water but so doing by ensuring efficiency, lowest cost and reliability and at the same time maximizing the value retention in the countries that we operate in and create local employment opportunities all with an eye on sustainability..”
The co-investment agreement was signed today between ACWA Power and APICORP with ACWA Power committing to make available to APICORP the opportunity to co-invest in all assets being developed by ACWA Power in its core geographies for an initial period of 3 years.
ACWA Power announced today, that on March 3, 2014, their fully owned subsidiary namely Saudi Arabian Water and Electricity Company (“SAWEC”) acquired a 6% indirect shareholding in Shuqaiq Water and Electricity Company (SqWEC) from Mitsubishi Corporation of Japan (“MC”). SqWEC owns an 850 MW power generation and 212,000 cubic meters per day of water desalination capacity IWPP Plant in Shuqaiq on the western shores of Saudi Arabia 130 km north of Jizan. The project started commercial operations in May 2010.
Prior to this acquisition, SqWEC was owned by a group of government and private sector investors. The government ownership was in two parts; 32% by Public Investment Fund (PIF) and 8% by Saudi Electricity Company (SEC). The private sector ownership totals 60% of the project and was in three parts; ACWA Power (through SAWEC) owning 34%, Gulf Investment Corporation (“GIC”) owning 20% and MC owning 6%. The three private sector investors had invested in SqWEC through their holding company Shuqaiq International Water and Electricity Company (“SIWEC”).
The 6% indirect stake of MC in SqWEC was acquired by ACWA Power (through SAWEC) by purchasing all of MC’s shares in SIWEC. ACWA Power through SAWEC had signed a Share Purchase Agreement for this purpose with MC on July 29, 2013.
Upon completion of the transaction ACWA Power’s indirect stake in SqWEC has increased from 34% to 40%.
Paddy Padmanathan, CEO of ACWA Power, reiterated that “ Acquiring these shares was a part of ACWA Power’s wider strategy to deploy its capital in earnings accretive and value creating transactions. This transaction represented such an opportunity to ACWA Power and furthermore also gave an opportunity to increase its stake in a project which was completed before time and below budget and where ACWA Power is the lead developer. ”
ACWA Power enters UAE Power Generation and Water Desalination Market through a Strategic Acquisition
ACWA Power International (“ACWA Power”), the Saudi Water and Power developer, owner and operator, announces that it has entered into a definite agreement with Summit Global Management VIII B.V. (“Summit Global”), a wholly-owned subsidiary of Sumitomo Corporation (“Sumitomo”), to acquire its 20% stake in Shuweihat CMS International Power Company PJSC (“SCIPCO”), which owns the Shuweihat S1 Power and Desalination Plant (S1 Plant) and its 50% equity interest in the Shuweihat O&M Limited Partnership (“SOMLP”).
The agreement to complete the acquisitions described above is conditional, inter alia, on certain consents being obtained, including those of the lenders to SCIPCO.
The S1 Plant, is a brownfield plant with a net production capacity of 1,500 megawatts of electricity and 100 million imperial gallons of desalinated water a day (454,200 m3/d), located about 250 km southwest of the Emirate of Abu Dhabi and was the third Independent Water and Power Project (“IWPP”) commissioned by Abu Dhabi Water & Electricity Authority (“ADWEA”).The plant began its commercial operation in 2005 under a 20-year off-take agreement from the Abu Dhabi Water & Electricity Company (“ADWEC”). The combined cycle co-generation facility, constructed by Siemens AG, Germany and Fisia Italimpianti, Italy SCIPCO is 60% owned by Abu Dhabi National Energy Company (“TAQA”) and its parent company, ADWEA. The remaining 40% in SCIPCO is equally owned between Sumitomo and International Power / GDF SUEZ. The S1 Plant is managed, operated and maintained by SOMLP (jointly and equally owned by Sumitomo and International Power / GDF SUEZ) pursuant to a 20-year Operations and Maintenance (“O&M”) agreement. The S1 Plant accounts for approx. 12% of the total electricity generation capacity and approx. 11% of the total water production capacity in the Emirate of Abu Dhabi.
Mr. Mohammad Abunayyan, ACWA Power Chairman, stated “This marks ACWA Power’s entry into yet another important market in the GCC, the third country within GCC after our significant positions in Saudi Arabia and Oman. UAE is not only considered to have developed the best IPP/IWPP model across the globe, but also is a matured market and very high investment grade and creditworthy offtake. This investment will enhance the value to the shareholders of ACWA Power and strengthen its position as a major participant in the Power Generation and Water Desalination Market in the MENA region.”
Mr. Paddy Padmanathan, ACWA Power President & CEO, said “The transaction represents a unique prospect for us to participate in the project company and the O&M company of a best-in-class IWPP that represents a strategic asset in Abu Dhabi’s electricity and water infrastructure. It offers ACWA Power an opportunity to add significant capacity to its existing portfolio of power generation and water desalination assets.”
The transaction is expected to close in March 2014, subject to closing conditions. Citigroup is acting as sole financial advisor to ACWA Power.