Acwa Power secures USD 100 mn credit facility from China Construction Bank to scale up operations

Acwa Power is getting a helping hand from the Chinese: Saudi renewables giant Acwa Power has secured a USD 100 mn revolving credit facility (RCF) from Chinese state-owned lender China Construction Bank, according to a statement released last Tuesday. The RCF will allow Acwa Power to boost its power and water generation portfolio across the Middle East and the Belt & Road countries in which it operates including Uzbekistan and Kazakhstan, the statement notes.

Not the first time: The Saudi renewables giant and the Chinese bank have been cooperating since 2016, with the bank financing several projects including the2.4 GW Hassyan power plant in the UAE and the 485 MW Zarqa gas power plantin Jordan. It has also provided financing for Uzbekistan’s 1.5 GW Sirdarya CCGT power plant.

And not the only Chinese lender: Chinese lenders have contributed a total of USD 10 bn across Acwa Power’s global project portfolio since 2009 and have participated — along with Chinese EPC contractors and suppliers — in 47 of the company’s projects, the statement notes.

Belt & Road countries in the spotlight: The company signed an engineering, procurement and construction (EPC) agreement with the Energy China Group Corporation company for its 400 MW solar energy project in Uzbekistan's Tashkent in June and signed a roadmap agreement with Kazakhstan’s Energy Ministry and the country’s sovereign wealth fund, Samruk-Kazyna, for the 1 GW wind energy and battery storage facility in the same month. Acwa has already poured in a total of USD 5 bn to fund five projects it owns and operates in Uzbekistan — including onshore wind energy plants. Acwa plans to invest a total of USD 10 bn in Uzbekistan’s renewables projects over the next five years, and signed an agreement in May to establish a USD 100 mn green hydrogen plant in Tashkent which will have a 3k ton annual capacity once operational in June 2024. The company also inked financing agreements that same month worth USD 120 mn for the 100 MW Karatau wind farm — formerly known as Nukus Wind IPP, which will become operational in February 2025.