ACWA Power, the Saudi Arabian leader in power generation and water desalination, has increased its shareholding in Rabigh Arabian Water & Electricity Company (RAWEC) to 74%, reports TradeArabia.
The company announced the completion of the acquisition of shares and debt instruments/ loan notes owned by Marubeni Corporation in RAWEC, as well as shares owned by Marubeni in Rabigh Power Company, RPC (RAWEC’s O&M company).
RAWEC provides utilities (power, water, steam) to Rabigh Refining and Petrochemical Company (Petro Rabigh Corporation), a joint venture between Sumitomo Chemical from Japan and Saudi Aramco that owns, operates and manages the petrochemical complex at Rabigh, in Saudi Arabia.
RAWEC owns and operates a conventional thermal power plant and desalination facility with a capacity of 840 MW power, 6,110 t/h steam and 12,000 t/h water, in the Rabigh complex. It supplies the utilities to Petro Rabigh Corporation under a long-term take or pay water and energy conversion agreement (WECA). RPC is responsible for the O&M of the RAWEC plant.
The purchase was carried out pursuant to certain rights that ACWA Power had with respect to the shares held by other shareholders in RAWEC and RPC. After undergoing regulatory procedures, the securities transfer was finalised on March 13, 2019.
Paddy Padmanathan, ACWA Power’s President and CEO said the purchase shows their confidence in the utility complex and their wish to strengthen even more the partnership with client Petro Rabigh Corporation.