ACWA Equity

completed

International Company for Water and Power Projects (the company, or ACWA Power) is a leading Middle East & North Africa (MENA)-based developer, investor, co-owner and operator of independent water desalination and power generation projects. From its main operations in Saudi Arabia, the company has in recent years expanded its business into other MENA countries (Oman, Jordan and Morocco) and further afield to Bulgaria, Turkey and the southern region of Africa (Mozambique and South Africa).The current portfolio of assets and investments delivers over 6,050 MW of power and around 2.3 million m³/day of desalinated water in Saudi Arabia; over 1,500 MW of power in Jordan; 427 MW of power and 91,000 m³/day of desalinated water in Oman and 60 MWp using photovoltaic technology in its solar plant in Bulgaria. New capacity of 6,100 MW of power generation, 55,000 m3/day of desalinated water and 2,270 tons per hour of steam capacity is under development or construction in Saudi Arabia. The company’s 50 MWe concentrated solar power (CSP) plant in South Africa, 160 MWe CSP plant in Morocco and a 45,000 m³/day of water desalination project in Oman are under construction. In addition, the company is developing (pre-construction phase) an 835 MW gas-fired power plant in Turkey and two captive coal-fired power plants (270MW in Mozambique and 450MW in South Africa). The company plans to continue growing and diversifying its water and power generation portfolio across MENA and beyond in targeted countries through both greenfield developments and strategic acquisitions. A summary description of each asset is provided below:Facilities under operation:Saudi Arabia:- Shuaibah independent water & power project (IWPP), Arabian Light Crude-fired steam plant to generate 900MW electricity and 880,000 m3/day desalinated water (by MSF - Multi-Stage Flash);- Petro-Rabigh IWSPP (independent water, steam & power project), Heavy Fuel Oil-fired steam plant to generate 360MW electricity, 134,000 m3/day desalinated water (by RO - Reverse Osmosis), and 29,520 ton/day steam;- Shuqaiq IWPP, Arabian Heavy Crude-fired steam plant to generate 850MW electricity and 212,000 m3/day desalinated water (by RO);- Marafiq IWPP, Natural Gas-fired combined cycle gas turbine (CCGT) plant to generate 2,743 MW electricity and 800,000 m3/day desalinated water (by MED – Multi-Effect Desalination);- Shuaibah Expansion independent water project (IWP), 150,000 m3/day desalinated water plant (by RO);- Rabigh independent power project (IPP), Heavy Fuel Oil-fired steam plant to generate 1,204 MW electricity;- Bowarege, barge-based RO 2 x 25,000 m3/day desalinated water plant (including diesel fuel-fired 2 x 25MW diesel gen set to run RO);Jordan:- CEGCO (Jordan’s main power generator, with generating capacity of 1,521MW , including Hussein steam power plant, Aqaba steam power plant, Risha simple cycle gas turbine plant, Rehab combined cycle gas turbine plant, Marka simple cycle gas turbine plant, Amman South simple cycle gas turbine plant, Karak simple cycle gas turbine plant, Ibrahimiya wind power plant, Hofa wind power plant);Oman:- Barka 1 IWPP, Natural Gas-fired CCGT plant to generate 427MW electricity and 91,000 m3/day desalinated water (by MSF – Multi-Stage Flash);Bulgaria:- Karadzhalovo Solar PV, 60MWe solar Photo-voltaic power plant.Facilities under construction / development:Saudi Arabia:- Qurrayyah IPP, Natural Gas-fired CCGT plant to generate 3,927 MW electricity, planned to start operation in 2014;- Petro-Rabigh Expansion IWSPP, Heavy Fuel Oil-fired steam plant to generate 160MW electricity, 24,360 m3/day desalinated water (by RO-Reverse Osmosis), and 2,270 ton/hour steam, planned to start operation in 2015;- Rabigh-2 IPP, Natural Gas-fired CCGT plant to generate 2,049MW electricity, planned to start operation in 2017;Oman- Barka 1 IWP Expansion, RO based plant to produce 45,500 m3/day desalinated water, planned to start operation in 2013;Turkey- Kirikkale CCGT IPP, Natural Gas-fired CCGT plant to generate 835MW electricity, planned to start operation in 2016;Morocco- Noor 1 concentrated solar power (CSP) IPP, using parabolic troughs and molten salt thermal energy storage to generate 160MWe electricity (and 3 hours of thermal energy storage), planned to start operation in 2015;South Africa- Bokpoort CSP IPP, Concentrated Solar Power using parabolic troughs with thermal energy storage to generate 50 MWe electricity (and about 9 hours of thermal energy storage);- IPP, Old discard coal-fired Circulating Fluidized Bed Boiler Plant to generate 450MW electricity as a captive power plant for metal operation, planned to start operation in 2015.Mozambique:- IPP, Reject coal (coal otherwise rejected from coal mine)-fired subcritical circulating fluidized bed combustion power plant to generate 270MW electricity.IFC is considering an equity investment in the company to support its growth plan (the project), which includes increasing the share of renewable energy projects to 5-10% of the company’s power generation portfolio and continued expansion of business in emerging markets outside of Saudi Arabia. The proposed IFC equity investment is for up to US$100 million equivalent for IFC’s own account. The company will use the proceeds of IFC’s investment for the development of renewable energy projects in its markets, and non-coal based thermal power generation and desalination projects outside of the Gulf Cooperation Council countries.