ACWA Power signs MoU with Silk Road Fund Co., Ltd.
ACWA Power announced the signing of a Memorandum of Understanding (MoU) with China-based Silk Road Fund Co., Ltd. to explore joint investment and power project development opportunities in the UAE, Egypt and across the region.
The framework agreement was signed at a ceremony in the Saudi capital, Riyadh.
Commenting on the announcement, Mohammad Abunayyan, Chairman of ACWA Power said: “This MoU is a milestone, providing us with a framework from which we can work to develop a partnership that will look into potential power generation opportunities across the region.”
“And in this respect, we are delighted to have partnered with a company that shares our core values: chiefly, a vision for more efficient power generation, utilizing a broader mix of fuel resources, all whilst providing cutting edge technologies at a cost competitive approach,” he added.
According to the terms of the MoU, the two partners will jointly use their best efforts to co-operate on projects such as the Hassyan Clean Coal Power Plant project in the United Arab Emirates (initially 1,200MW), as well as the Dairut Combined Cycle Power Project in Egypt (2,250MW)on IPP mode. ACWA Power will agree to pursue the successful implementation and development of the projects, and Silk Road Fund will agree to make equity investments in the projects, and provide the necessary debt financing.
“The Middle East and North Africa is one of the fastest-growing in the world, so we see it as vitally important to support its sustainable economic development by increasing and improving its access to energy. To that end, we’re honoured to be partnering with a company like ACWA Power, which offers proven experience in delivering large scale power plant projects using cutting-edge technologies, whilst maintaining impressive cost-competitiveness. We believe that this partnership can continue to grow, increasing the future participation of Chinese companies in the region,” said Wang Yanzhi, President, Silk Road Fund.