Saudi Arabia’s ACWA Power has confirmed a $400 million public-private partnership with the Azerbaijan State Water Resources Agency (ADSEA) to deliver the country’s first large-scale seawater reverse osmosis desalination facility on the Caspian Sea.
According to the company’s filing on Saudi bourse Tadawul, the agreement covers the design, construction, financing, ownership, operation and maintenance of the Caspian Sea Water Desalination Plant.
The project will be carried out with ADSEA as the public partner and Caspian Sea Azerbaijan Project Company as the project vehicle, with ACWA Power holding a 100% stake in the company responsible for delivery.
ACWA Power said the scheme supports its broader growth strategy as it builds its position in renewable energy, water desalination and green hydrogen through major developments in Saudi Arabia and overseas. The contract period will run for 27.5 years, including the construction phase.
On financial impact, the company noted that contracted revenues are expected to be recognised after the early commercial operation date, which will be disclosed at financial close.
ACWA Power describes itself as a developer, investor and operator of power generation and desalinated water plants, with 110 assets in operation, construction or advanced development across 15 countries. The group employs more than 4,000 people, with 58.7% local employment. Its portfolio, valued at USD 114.6 billion, has the capacity to generate 93 GW of power and produce 9.3 million m3/day of desalinated water.
