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Saudi Arabia’s ACWA Power targets up to $4.5bn in local tenders

Saudi headquartered water and power developer, ACWA Power is targeting up to $4.5bn in tenders for projects inside Saudi Arabia, a senior official at the company has revealed

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Saudi headquartered water and power developer, ACWA Power is targeting up to $4.5bn in tenders for projects inside Saudi Arabia, a senior official at the company has revealed.

The developer is targeting projects in Morocco and the United Arab Emirates.

ACWA Power has also shortlisted banks to arrange an initial public offering (IPO), CEO Paddy Padmanathan confirmed.

ACWA Power has also shortlisted banks to arrange an initial public offering (IPO), CEO Paddy Padmanathan confirmed. An IPO is expected by the end of the year.

However, Padmanathan did not name the banks or give a timeframe for an IPO. The company is looking to sell a 30 percent stake to investors and list in Riyadh, banking sources have told Reuters.

“We are expecting to see a lot of projects here in Saudi. We are targeting 50 to 60 percent of the total,” Padmanathan told Reuters in an interview at ACWA Power’s headquarters in Riyadh.

Elsewhere, the company expects tenders for around $2.5 billion worth of projects in Morocco and $3.5 billion of projects in the United Arab Emirates, reported Reuters.

Last week, ACWA Power announced that it had won the 300MW Sakaka IPP PV solar project, the first utility scale Renewable Energy plant in Saudi Arabia.

Saudi Arabia wants to diversify its energy mix by using renewables, for example, and by partnering with the private sector. The ministry of energy’s government renewable office plans to tender 3,200 megawatt (MW) of solar photovoltaic projects and 800 MW of wind projects.

ACWA will take part in the tender for a 400 MW wind plant in March, Padmanathan said, and will also tender for the Rabigh 3 desalination plant, which will have a capacity of 600,000 cubic meters and is expected to cost $800 million to $900 million.

Other projects expected to be tendered by the end of this year or early next year are a cogeneration plant for the Marjan oilfield and the Tanajib seawater plant for Saudi Aramco.

ACWA is also looking for M&A deals, despite losing out on the chance to buy a number of power plants in the Philippines.

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