Silk Road Fund (SRF), a state-owned investment fund of the Chinese government, has reached an agreement with Saudi-based Acwa Power, a leading developer, owner, and operator of power generation and water desalination plants, to buy 49 per cent of the shares in its renewable energy platform - Acwa Power Renewable Energy Holding (Acwa Power RenewCo).

The SRF is a medium-to-long term development and investment fund established in Beijing under the framework of “Belt and Road Initiative”.

Following a philosophy of openness, inclusiveness and mutual benefit, it operates its business based on market principles, international standard and professional excellence.  

Acwa Power said together with the Chinese fund it had previously co-invested in two UAE-based projects, including the 2400MW Hassyan clean coal power plant，and the 950MW Hybrid CSP and PV fourth phase of MBR Solar Park to respectively power 1.3 million people and 320,00 residential homes.

Introducing SRF as a partner and shareholder in Acwa Power’s renewable energy platform that currently owns a number of its existing renewable energy projects, the Saudi group said with this move new doors of collaboration and projects are opening up.

Acwa Power RenewCo acts as a platform that capitalises on the rapidly growing potential for renewable energy in emerging markets. It will own Acwa Power’s CSP, PV, and wind assets across the UAE, South Africa, Jordan, Egypt and Morocco, yielding an aggregate capacity of 1668 MW.

On the strategic deal, President & CEO Paddy Padmanathan said: "Acwa Power and Silk Road Fund’s further collaboration is a mirror image of the robust and strategic ties between Saudi Arabia and China that is strengthened year after year."

"The agreement signed today is a testament of the commendable goals we will achieve with Silk Road Fund that will enhance regional connectivity and embrace a brighter future in renewable energy deployment," he stated.

"It is our pleasure to welcome Silk Road Fund as a shareholder in RenewCo to jointly bring in the finest expertise and promising investment to our portfolio of projects; and together, help progress the world to a cleaner, greener, and more sustainable home," he added.

Chief Investment Officer Rajit Nanda said: "As a leading developer of power and water assets in the region, and being based in a Belt and Road country, welcoming SRF on board as a shareholder further cements our position of being able to support both the economic transformation envisioned by the Belt and Road initiative as well as Saudi Arabia’s forward looking Vision 2030."

"Our continuous achievements with Silk Road Fund set an example of building strategic business ties, and making the best use of the competitive advantages of both companies," he added.-TradeArabia News Service