Saudi power and water developer Acwa Power has signed a deal with multilateral financial institution Arab Petroleum Investments Corporation (Apicorp) that will strengthen the Saudi firm’s ability to fund new projects.

The agreement will see the two Saudi-based organisations co-invest in projects in the power generation and water desalination sector across the Gulf, North Africa, South Africa, Turkey and Jordan.

Acwa plans to double its power generation portfolio from 15.7gigawatts (GW) to 39GW of electricity and increase its desalinated water production from 2.4 million cubic metres (m3) per day to 5 million m3/day by the year 2018.

The developer is active on a number of projects in the region. As leader of a consortium, it signed a power purchase agreement (PPA) for the 2,060MW Rabigh II independent power project (IPP) with Saudi Electricity Company (SEC) in late November last year. It is also part of the winning consortium for Morocco’s Noor 1 scheme, a concentrated solar power (CSP) independent power plant. The contract was awarded in 2012.

The Saudi company is currently developing the Bokpoort power plant in South Africa.

Acwa is tapping a number of sources to fund planned projects. It raised a SR1.8bn ($475m) five-year revolving fully sharia-compliant corporate financing from a group of Saudi banks towards the end of last year.

The company is planning an initial public offering (IPO) on the Saudi exchange to be launched towards the end of 2014. Acwa is also considering a sukuk issuance, though it could be delayed until after the IPO.