ACWA moves beyond Saudi with Oman purchase
Saudi power company buys 58 percent stake in Barka 1 IWPP.
ACWA Power International, a Saudi developer, owner and operator of power and water projects, on Monday announced its purchase of a majority stake of the Barka 1 independent water and power project (IWPP) in Oman had been given regulatory approval. The acquisition is part of the company’s strategy to expand beyond Saudi Arabia borders, ACWA said in a statement.
ACWA is buying a 58 percent share from the AES Corporation, the IDB Infrastructure Fund and their subsidiaries. The remaining stake in Barka 1 is owned by Multitech LLC at 7 percent, while the other 35 percent is floated on the Muscat stock exchange.
The deal had been agreed to last December, and had been awaiting regulatory approval.
Barka 1 is part of the ACWA’s growth strategy and ambition to expand internationally.
“We are delighted to add this asset into our portfolio and to take the first step beyond our home country,” said Paddy Padmanathan, ACWA’s CEO.
"Barka 1 IWPP will be important to our ambitious but well defined target of growing the asset base to 30,000 MW gross contracted capacity of power and 5 million cubic meters per day of gross desalinated water by the year 2014," he added.
The Barka 1 IWPP has a capacity of 456MW and 91,000 cubic meters per day of desalinated water. Located 60 kilometres northwest of Muscat, the plant feeds into the North Oman grid. The sole off-taker of both power and water is the Oman Power & Water Procurement Company (OPWPC).