International Company for Water & Power Projects (ACWA Power) and Arab Petroleum Investments Corporation (APICORP) announced Monday the signing of a co-investment initiative.

According to the initiative, both parties will join hands with APICORP co-investing with ACWA Power in its various projects in the power generation and water desalination space and across the various core geographies of ACWA Power.

The initiative will encompass both conventionally fired power generation facilities as also investments within the renewable energy space.

This path-breaking initiative brings together the major Saudi private developer and operator with an expanding geographic footprint and a class leading multilateral financial institution with a presence across the Arab world and possessing best in class capabilities in project evaluation and execution.

In effect, the initiative endeavors to draw upon business synergies and deepen institutional relationship and cooperation.

Paddy Padmanathan, president and CEO of ACWA Power, said: “The co-investment initiative with such a strong financial partner like APICORP will strengthen our capacity to fund our growth plans of doubling our power generation portfolio from 15.7 GW to 39 GW of electricity generation and 2.4 million m3/day to 5 million m3/day of desalinated water production by the year 2018.”

Ahmed Al-Nuaimi, GM & CE of APICORP, said: “The co-investment initiative with ACWA Power goes very well with the new investment strategy and guidelines as per the board of directors of APICORP. It will enhance the diversification of investments and achieve strategic benefits through the creation of investment opportunities in the Gulf region in particular and the Arab region in general. Also, it will mark APICORP’s entry into another important market sector. This investment will enhance the value to the shareholders of APICORP.”

Thamer Al-Sharhan, MD, ACWA Power, said “This partnership capitalizes on the alignment of the business objectives of both APICORP and ACWA Power.”