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.