Silk Road Investment Fund Is Taking the Ownership of 49% of Saudi’s ACWA Power Renewco
Public Investment Fund-backed ACWA Power, the independent Saudi Arabian wealth vehicle, has lately signed a deed with China’s Silk Road Fund (SRF) for investment that pronounced SRF as a 49% shareholder in ACWA Power Renewco.
ACWA Power Renewco or ACWA Power Renewable Energy Holding is a subsidiary that has the ownership of a minority of the project related to renewable energy.
It has been decided that the portfolio of ACWA will include CSP (concentrated solar power) of the parent company in addition to PV (photovoltaic) and wind assets in countries like Morocco, South Africa, Egypt, UAE, and Jordan with the aggregate capacity of these totaling at 1668 MW.
Both ACWA Power and Silk Road Fund have been co-investors in the 2,400 MW Hassyan Clean Coal Power Plant and the 950 MQ Hybrid CSP-PV Phase 4 of MBR Solar Park, the two notable projects in the UAE.
The Silk Road Fund is a Chinese entity that was built under the Asian country’s framework for the multi-trillion-dollar Belt and Road Initiative meant for longstanding development and investment. This project was initiated by Xi Jinping, the Chinese President.
While remarking on the transaction of SRF based on routine agreements, the president of ACWA Power Paddy Padmanathan regarded the partnership as “a mirror image of the robust and strategic ties between Saudi Arabia and China.”
Padmanathan further said:
“It is our pleasure to welcome Silk Road Fund as a shareholder in Renewco to jointly bring in the finest expertise and promising investment to our portfolio of projects; and together, help progress the world to a cleaner, greener, and more sustainable home.”
At another instance, the Chief Investment Officer of ACWA Power, Rajit Nanda 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. Our continual achievements with Silk Road Fund set an example of building strategic business ties, and making the best use of the competitive advantages of both companies.”