Saudi Arabia’s ACWA Power has secured 10.8 billion riyals ($2.9 billion) in financing for the expansion of its Qurayyah independent power producer (IPP) project as the Kingdom expands its gas-fired power capacity and reliability.
The funding, achieved through the company’s affiliate Hajar Two Electricity Company, will support the development, construction, ownership, and operation of a 3,010-megawatt combined-cycle gas turbine (CCGT) plant in the Eastern Province, ACWA Power said in a statement to the Saudi stock exchange on Sunday.
The 28-year tenure financing facility was arranged with a consortium of regional and international lenders, including Abu Dhabi Commercial Bank, Ajman Bank, Alinma Bank, Arab National Bank, Banque Saudi Fransi, Boubyan Bank, Commercial Bank of Dubai, Eurobank, HSBC, National Bank of Kuwait, Riyad Bank, Saudi Awwal Bank, Standard Chartered Bank, Sumitomo Mitsui Trust Bank, Korea Development Bank, Saudi Investment Bank, and Saudi National Bank.
ACWA Power, which holds a 40% equity stake in the project, said its guarantees are limited to standby equity and reserve accounts.
The Qurayyah IPP expansion is part of Saudi Arabia’s broader effort to modernize its power generation mix, replacing older, less efficient plants with high-efficiency CCGT technology.
The project aligns with the government’s Vision 2030 strategy to improve energy efficiency, reduce fuel consumption, and support industrial growth through reliable, lower-emission power generation.
The Saudi Power Procurement Company (SPPC) acts as the offtaker for the project under a long-term power purchase agreement, ensuring stable returns for investors and underpinning Saudi Arabia’s continued commitment to public-private partnerships in the utilities sector.
ACWA Power, which manages a portfolio exceeding $114 billion across 15 countries, remains a key driver of Saudi Arabia’s energy transition. The company’s projects include renewable energy, water desalination, and green hydrogen, in addition to conventional power generation assets like Qurayyah.
