ACWA Power has acquired Shuaibah Water and Electricity Company (SWEC) for $225,000,000. This corporate transaction involves ACWA Power purchasing the entirety of SWEC, a significant independent water and power project in the Kingdom of Saudi Arabia. SWEC, established by Royal Decree No. M/43, is responsible for the construction, commissioning, and operation of a plant producing 900MW of power and 880,000m3/day of desalinated water.
SWEC's facilities are notable for being the first IWPP in KSA and for utilizing advanced environmental technologies such as Flue Gas Desulphurization (FGD), low NOx burners, and Electrostatic Precipitators (ESP) to meet World Bank emission requirements. The company plays a critical role as the primary source of desalinated water to the Makkah Province, with its two desalination plants contributing 48% of the Western Area’s water supply. Its operations are especially vital during the Holy Months of Ramadhan and Hajj, ensuring continuous power and water supply to the Makkah Mukarramah Region.
The acquisition is a strategic move for ACWA Power to expand its operational footprint and solidify its position as a leading developer, investor, and operator of power generation and desalinated water production plants. By acquiring SWEC, ACWA Power gains a crucial asset with proven capacity and environmental compliance standards. This purchase is distinct from any funding rounds and represents a direct corporate takeover, integrating SWEC’s established infrastructure and expertise into ACWA Power’s broader portfolio.
Expected synergies include enhanced operational efficiencies and a consolidated approach to delivering essential utilities. The combination of ACWA Power's extensive experience and SWEC's vital regional assets is set to bolster reliable power and water supply across key areas. This strategic acquisition reinforces ACWA Power's commitment to supporting the Kingdom's infrastructure development and its leadership in the sustainable utility sector.