Acwa Power signs agreement with Energy China

18 June 2018
Saudi developer signs agreement with Chinese firm pledging to work together in power and water sectors

Saudi utilities developer Acwa Power has signed a memorandum of understanding (MoU) with China Energy Engineering Corporation (Energy China), signalling the developer’s drive for increased Asian investment in regional and international projects.

The companies have pledged to collaborate on power generation and water desalination projects across the Middle East and Asia.

The MoU was signed by Acwa Power’s chairman, Mohammed Abunayyan, and Energy China’s chairman, Wang Jianping.

Both were accompanied by high-level dignitaries, including several senior officials from the Chinese public sector and professionals from China Gezhouba Group Company, a subsidiary of Energy China.

“With this agreement, we will strengthen the ties between China and the Middle East and unlock new potential power generation in the region,” said Jianping.

The MoU is the latest in a series of agreements between Acwa Power and Chinese firms. The company is leading a consortium with China’s Harbin Electric to construct the 2,400MW Hassyan coal-fired power plant in Dubai.

The majority of the debt in this deal is being raised from Chinese banks, such as the Agriculture Bank of China and the Industrial & Commercial Bank of China (ICBC).

The Riyadh-based firm has also partnered with China’s Shanghai Electric to develop Dubai Electricity & Water Authority's 700MW thermal concentrated solar power plant.

Paddy Padmanathan, president and CEO of Acwa Power, said of the new MoU: “We’re honoured to partner with one of the leading engineering and EPC contracting companies in the world. This MoU further demonstrates our success in bringing the best in the market to the countries in which we operate. We believe this new partnership will allow us both to grow and to strengthen our relationship with China in the region."

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