Saudi’s ACWA Power sells 49% stake in Uzbek’s Sirdarya project

ACWA Power

• China’s Silk Road Fund will now own 49% of the facility
• Agreement is expected to close by Q4 2022

Saudi-listed ACWA Power and China’s Silk Road Fund signed a share purchase agreement for the 1.5 GW Sirdarya combined cycle gas turbine (CCGT) facility in Uzbekistan. 

As per the agreement, ACWA Power will continue to be the majority shareholder in the project, holding a 51 percent stake in the facility. The Silk Road Fund, China’s sovereign investment body that implements the Belt and Road Initiative, will now own 49 percent of the Sirdarya facility. 

The share purchase agreement is expected to close by Q4 2022, ACWA Power said in a statement. 

Uzbekistan’s JSC National Grid will function as the sole off-taker of the project for a period of 25 years. Once completed in early 2024, the project will account for eight percent of the country’s total power capacity and meet 15 percent of the country’s electricity demand across industry and households. 

The Sirdarya facility is ACWA Power and Silk Road Fund’s first strategic partnership in Uzbekistan and Central Asia. 

The Saudi utility services provider has three more projects in Uzbekistan, mainly in the wind energy segment.

Silk Road Fund has invested in the country’s culture, tourism, and oil and gas sectors. 

The project, located in Shirin, southern Uzbekistan, will displace two million tonnes of carbon emissions per year.