Saudi energy giant ACWA Power has secured an $80 mn equity bridge loan from the Bank of China, marking a significant milestone in its Uzbekistan initiatives. The loan, split equally between Chinese yuan and U.S. dollars, represents the first loan cooperation deal by a bank from China using its native currency involving a company from Saudi Arabia, Arab News reported on April 16.
The funds will bolster ACWA Power's ambitious project in Uzbekistan, specifically the Tashkent 200-megawatt solar photovoltaic power plant and 500 MW per hour battery energy storage system. This development stems from an initial agreement reached during the 3rd Belt and Road Forum summit in October 2023, where ACWA Power was represented by its chairman as a keynote speaker.
Abdulhameed Al-Muhaidib, ACWA Power’s Chief Financial Officer, underscored the significance of this achievement, emphasizing its alignment with Saudi Arabia’s Vision 2030 and China’s Belt and Road initiative. Al-Muhaidib expressed delight in deepening cooperation with the Bank of China to bring renewable energy solutions at competitive tariffs to key markets, including Uzbekistan.
ACWA Power has a longstanding relationship with Chinese entities, spanning over 15 years, with investments from China in the company’s projects exceeding $10 bn. Pan Xinyuan, General Manager of the Bank of China, highlighted the synergy between the Belt and Road Initiative and Saudi Arabia’s Vision 2030. He emphasized the bank's commitment to supporting cooperation between Saudi enterprises like ACWA Power and their Chinese partners for mutual benefit.
Looking ahead, Bank of China aims to enhance financial connectivity to drive sustainable and high-quality development in Belt and Road economies. ACWA Power has been actively collaborating with various countries to develop its projects. Earlier this month, the company signed an $800 mn agreement with Senegal’s Ministry of Water to develop a desalination facility in Dakar, Senegal. ACWA Power will oversee the infrastructure, design, financing, construction, operation, and maintenance of the Grande Cote seawater desalination plant in Senegal.
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