ACWA Power signs SPA to sell 49% of Sirdarya project in Uzbekistan

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ACWA Power Co. signed, today, Sept. 14, a sale and purchase agreement (SPA) with a subsidiary of the Silk Road Fund of China – CVXF Inc. to sell its 49% stake in ACWA Power Uzbekistan Project Holding Co. Limited. 

The deal is valued at $130 million (SAR 487.5 million), including the investor’s portion in an equity bridge loan and a subordinated advance form, ACWA Power said in a statement to Tadawul. The asset book value stands at SAR 103 million (SAR 386 million) – the consolidated net assets of the holding company including hedge reserves.

The sale is part of ACWA Power’s capital recycling strategy. The sale proceeds will be used for the company’s general objectives, the Saudi utility said, adding that there are no related parties to the deal.

Further, ACWA Power added that the share transfer is subject to the satisfaction of all terms under the SPA, noting that the deal is not expected to result in any material financial impact for the company.

The project is a 1,500 megawatt (MW)-combined cycle gas-fired power plant in the Sirdarya region of Uzbekistan. It is developed by ACWA Power under a Build, Own, Operate, Transfer (BOOT) framework and financed by multiple development banks and commercial banks.

The project has entered into a 25-year power-purchase agreement with JSC National Electric Grids of Uzbekistan. China Energy Engineering Corporation Limited is the EPC contractor of the project and commenced the construction work in early 2021. The project is scheduled to reach commercial operation in 2024, ACWA Power concluded.