Saudi ACWA Power secures $80 million loan from Bank of China for Uzbekistan projects
In a groundbreaking move, Saudi energy giant ACWA Power has secured an $80 million equity bridge loan from the Bank of China for its Uzbekistan initiatives. This marks the first loan cooperation deal by a bank from the Asian country using its native currency involving a company from the Kingdom.
Boosting renewable energy in Uzbekistan
The funds will boost ACWA Power’s Tashkent 200 megawatts solar photovoltaic power plant and 500 MW per hour battery energy storage system project in Uzbekistan. The transaction is a result of the initial agreement reached during the 3rd BRF (Belt and Road Forum) summit in October 2023, where ACWA Power was represented by its chairman as a keynote speaker.
Strategic milestone aligning with Vision 2030 and Belt and Road initiative
ACWA Power’s Chief Financial Officer, Abdulhameed Al-Muhaidib, emphasized the significance of this milestone, citing its alignment with Saudi Arabia’s Vision 2030 and China’s Belt and Road initiative. He expressed delight in deepening cooperation with Bank of China to bring renewable energy at competitive tariffs to key markets, including Uzbekistan.
Longstanding relationship with Chinese entities
ACWA Power has a longstanding relationship with Chinese entities, with investments from the Asian country in the company’s projects exceeding $10 billion. The General Manager of the Bank of China, Pan Xinyuan, expressed confidence in the Belt and Road Initiative and its harmony with Saudi Arabia’s Vision 2030.
Expanding global collaborations
ACWA Power has been collaborating with multiple countries to develop its plants. Earlier this month, the company signed a $800 million agreement with Senegal’s Ministry of Water to develop a desalination facility in Dakar, Senegal. ACWA Power will be responsible for the infrastructure, design, financing, construction, operation, and maintenance of the Grande Cote seawater desalination plant in the West African country.