Saudi Arabia’s Acwa Power has increased its stake in Shuqaiq Water and Electricity Company (SqWEC), the project company created to own and operate the Shuqaiq independent water and power project (IWPP) in western Saudi Arabia.

Acwa Power, through its local subsidiary Saudi Arabian Water and Electricity Company (Sawec), has acquired a 6 per cent indirect shareholding in SqWEC from Japan’s Mitsubishi Corporation. The acquisition has increased Acwa Power’s ownership of the firm to 40 per cent.

SqWEC owns the Shuqaiq IWPP, which has a power generation capacity of 850MW and a desalination component of 212,000 cubic metres a day (cm/d). The plant started commercial operations in May 2010 and is located 130 kilometres north of Jizan, on the western coast of the kingdom.

SqWEC is owned by a group of public and private investors. The 40 per cent government ownership is split between the Public Investment Fund, which holds a 32 per cent share, and Saudi Electricity Company (SEC), which holds an 8 per cent stake. The private sector has a 60 per cent stake in the firm. With Acwa Power having acquired all of Mitsubishi’s share, the only other private investor in the scheme is Kuwait-based Gulf Investment Corporation (GIC), which holds the remaining 20 per cent.

In December, Acwa Power signed a power purchase agreement (PPA) with SEC to develop the $1.6bn Rabigh 2 independent power project (IPP), also located on the western coast of the kingdom.