Saudi utility major Acwa Power has announced it has signed a public-private partnership agreement worth $400 million contract with Azerbaijan State Water Resources Agency (ADSEA) to develop the country’s first large-scale water reverse osmosis (SWRO) desalination plant on the Caspian Sea.

The scope of work includes design, construction, finance and ownership as well as operation and maintenance of the Caspian Sea Water Desalination Plant, said Acwa Power in its filing to Saudi bourse Tadawul.

The new PPP project will be implemented by the government of Azerbaijan through ADSEA as the public partner and Caspian Sea Azerbaijan Project Company as the project company. As per the deal, Acwa Power will be  holding a 100% stake in the project company. 

The new project aligns with Acwa Power’s expansion strategy as it seeks to establish itself as a key global player in renewable energy, water desalination, and green hydrogen through a growing portfolio of large-scale projects at home and abroad. 

The contract duration will be 27.5 years including the construction period, it stated.

On the financial impact, Acwa Power said the contracted revenues is expected to be reflected after the early commercial operation date which will be announced at the time of financial close, it added.-TradeArabia News Service