ACWA Power enters UAE through Sumitomo’s stake acquisition in Shuweihat 1 IWPP

ACWA Power International (ACWA Power), a Saudi water and power developer, owner and operator, has entered into a definite agreement with Summit Global Management VIII BV (Summit Global), a wholly-owned subsidiary of Sumitomo Corporation (Sumitomo) to acquire its 20 percent stake in Shuweihat CMS International Power Company PJSC (SCIPCO), which owns the Shuweihat S1 Power and Desalination Plant (S1 Plant) and its 50 percent equity interest in the Shuweihat O&M Ltd. Partnership (SOMLP).
The S1 Plant, is a brownfield plant with a net production capacity of 1,500 megawatt electricity and 100 million imperial gallon desalinated water a day (454,200 m3/d), located about 250 km southwest of Abu Dhabi and was the third Independent Water and Power Project (IWPP) commissioned by Abu Dhabi Water & Electricity Authority (ADWEA).
The plant began its commercial operation in 2005 under a 20-year off take agreement from the Abu Dhabi Water & Electricity Company (ADWEC). The combined cycle co-generation facility, constructed by Siemens AG, Germany and Fisia Italimpianti, Italy SCIPCO is 60 percent owned by Abu Dhabi National Energy Company (TAQA) and its parent company, ADWEA.
The remaining 40 percent in SCIPCO is equally owned between Sumitomo and International Power/GDF SUEZ.
The S1 Plant is managed, operated and maintained by SOMLP (jointly and equally owned by Sumitomo and International Power/GDF SUEZ) pursuant to a 20-year operations and maintenance (O&M) agreement.
Mohammad Abunayyan, ACWA Power chairman, said: “This marks ACWA Power’s entry into yet another important market in the GCC after our significant positions in Saudi Arabia and Oman.”
Paddy Padmanathan, ACWA Power president and CEO, said: “The transaction represents a unique prospect for us to participate in the project company and the O&M company of a best-in-class IWPP.”
The transaction is expected to close in March 2014, subject to closing conditions. Citigroup is acting as sole financial advisors to ACWA Power.