ACWA Power signs SAR 1.5B desalination deal in Azerbaijan

ACWA Power Co. signed, on Dec. 27, a public-private partnership (PPP) agreement, along with several related agreements, to develop the first large-scale seawater reverse osmosis (SWRO) desalination plant in the Caspian Sea in Azerbaijan, valued at approximately SAR 1.5 billion ($400 million).

The contract term is 27.5 years, including the construction period, the company said in a statement to Tadawul.

The agreement was signed between the Government of the Republic of Azerbaijan, represented by the Azerbaijan State Water Resources Agency, the public partner, and Caspian Sea Azerbaijan Project Co. in its capacity as the project company.

ACWA Power owns 100% of the project. The contract covers the design, engineering, construction, financing, ownership, operation, and maintenance of the desalination plant, the statement said.

The relevant financial impact is likely to appear after the early commercial operation date (ECOD), which will be announced at the time of financial close.

There are no related parties involved in the deal, the statement added.