PROJECTS: ACWA Power inks $1.45bln agreements to expand Africa footprint
Saudi Arabia’s ACWA Power has signed $1.45 billion in agreements with the International Finance Corporation (IFC) to enhance clean energy and water projects in Africa. The agreements include a $1 billion framework for financing and advisory services and a non-binding agreement for an equity investment platform targeting renewable energy projects in Sub-Saharan Africa. Additionally, ACWA Power has partnered with the OPEC Fund for International Development for financing support and signed a Memorandum of Understanding with Chariot Limited to develop a utility-scale energy platform for the Southern African Power Pool.
Majda Muhsen
Saudi Arabia’s ACWA Power has deepened its collaboration with the International Finance Corporation (IFC) through two new framework agreements to accelerate clean energy and water infrastructure projects in Africa, the company said.
The agreements were signed at the ninth edition of the Future Investment Initiative (FII9) in Riyadh.
The first framework, valued at up to $1 billion, covers project and corporate financing, capacity building, and advisory services for ACWA Power’s growing portfolio across the continent.
A second, non-binding agreement will explore the creation of an equity investment platform to channel private capital into late-stage renewable energy independent power producers (IPPs) and small-scale IPP and desalination projects, particularly in Sub-Saharan Africa, under the Mission 300 programme.
Mission 300 is an ambitious initiative led by the World Bank and African Development Bank to connect 300 million people to electricity in the region by 2030
ACWA Power also signed a Cooperation Agreement with the OPEC Fund for International Development (OPEC Fund) to expand financing and equity support for its ventures in Africa and other emerging markets. The OPEC Fund may extend project financing, equity bridge loans, as well as equity investments support with $450 million as the initial target.
In a separate deal, ACWA Power signed a Memorandum of Understanding with Chariot Limited to co-develop a utility-scale energy platform for the Southern African Power Pool (SAPP). The initiative will focus on renewable energy, battery storage, gas-to-power, and energy trading to enhance regional power security and industrial growth.
The SAPP is an international power pool created with the primary aim to provide reliable and economical electricity supply to each of the 22 SAPP members through an interconnected grid and a common electricity market.
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