ACWA Power agrees USD 1.3bn loan for green utilities project

Image by The Red Sea Development Company (TRSDC).

February 23 (Renewables Now) - Saudi Arabia’s International Company for Water and Power Projects (TADAWUL:2082), or ACWA Power, has closed a senior debt facility of USD 1.3 billion (EUR 1.14bn) to finance a multi-utilities project on the Red Sea coast that will be powered solely by renewable energy.

The amount of the debt facility was revised from USD 1.33 billion initially and the list of the consortium of financiers was expanded to include Saudi National Bank, ACWA Power said on Wednesday. The other financial institutions in the consortium are Al Rajhi Banking and Investment Corporation, Banque Saudi Fransi, The Saudi British Bank, Arab Petroleum Investment Corporation (APICORP), Standard Chartered Bank and Riyad Bank.

The financing will be used for the Red Sea multi-utilities project that involves the development, construction and operation of the utilities infrastructure for a tourism destination that will be built on Saudi Arabia's Red Sea coast and will be powered solely by renewable energy. A joint venture, in which ACWA Power owns 50%, was awarded an order to build and operate the power, desalination, waste-water treatment, solid waste processing, district cooling plants and communication infrastructure for the project under a 25-year off-take contract.

Solar panels and wind turbines with an initial capacity of 210 MW and a battery storage facility of 1 GWh will power the resort and ensure its supply with green electricity day and night.

The Red Sea Project is part of Saudi Vision 2030 and its first phase includes the construction of 16 hotels, an international airport and infrastructure. Upon completion of the entire project in 2030, the resort will consist of 50 hotels built across 22 islands and six inland sites.

(USD 1 = EUR 0.882)

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