Acwa Power sells 30% stake in Rabigh utility project for $225mln

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Saudi Arabia - Acwa Power, a global utility projects developer, has reached an agreement to sell 30% of its stake in Rabigh Arabian Water & Electricity Company (Rawec) IWSPP to Hassana Investment Company, the investment manager of Saudi Arabia's social security and pension fund GOSI, for SAR 844 million ($225 million).

The deal was inked with Arabian Company for Water and Power Projects (Rawec), Oasis Power One Conventional Energy and Water Company and Gosi Investment Ventures Limited, said Acwa Power in its filing to Saudi bourse Tadawul.

Rabigh IWSPP is owned and operated by Rawec, a joint venture between Acwa Power, Marubeni Corp, JGC Corporation, and Petro Rabigh.

The project was constructed under an EPC contract by Mitsubishi Heavy Industries and consists of a conventional thermal power with five 118MW steam turbines, nine 470 t/hr steam generators, three wet limestone Flue Gas Desulphurization (FGD) units and sixteen 504 m3/hr Reverse Osmosis (RO) trains.

Rawec is an independent water, steam and power producer, supplying essential utilities on a captive basis to Petro Rabigh Company.

Acwa Power said the sale was part of its capital recycling strategy. The Saudi utility giant till now had 99% shareholding in the project.

The company said it expects to have a gain on this divestment. The divestment gain will be calculated on the closing date of transaction.

Additionally, Rawec’s contribution to the group net income will proportionately reduce in line with the divestment, it added.