Saudi utility company Acwa Power has announced that it has signed a public-private partnership (PPP) agreement valued at $400 million with the Azerbaijan State Water Resources Agency (ADSEA) to develop Azerbaijan’s first large-scale seawater reverse osmosis (SWRO) desalination plant on the Caspian Sea.
According to a filing by Acwa Power to the Saudi stock exchange Tadawul, the scope of the project includes the design, construction, financing, ownership, operation, and maintenance of the Caspian Sea Water Desalination Plant.
The PPP project will be implemented by the government of Azerbaijan through ADSEA as the public partner, with Caspian Sea Azerbaijan Project Company serving as the project company. Under the agreement, Acwa Power will hold a 100% stake in the project company.
Acwa Power stated that the project is in line with its expansion strategy, which focuses on strengthening its position in renewable energy, water desalination, and green hydrogen through large-scale projects in domestic and international markets.
The total contract duration is 27.5 years, including the construction period, the company said.
Regarding financial impact, Acwa Power noted that contracted revenues are expected to be reflected after the early commercial operation date, which will be announced at the time of financial close.
