DUBAI, July 7 International Finance Corp
(IFC), a unit of the World Bank, will invest up to $100
million in Saudi Arabia-based water and power project developer
ACWA Power to boost its funding for renewable energy schemes,
the IFC said on Monday.
The investment will focus on expanding the amount of power
generated in the Middle East and North Africa through green
methods, as energy demands in the region increase rapidly.
Saudi Arabia must spend around 800 billion riyals ($213
billion) on its power and water sectors in the next decade to
cope with soaring demand growth of around 8 percent annually,
the deputy electricity minister said in May, while Egypt is
suffering blackouts due to a dilapidated grid and a lack of
The potential of renewables, most notably solar power, has
long been talked about in the region because of its sunny
weather, and ACWA already has projects on which it is working
with the IFC, including a solar power plant in Morocco.
The IFC, which promotes private sector investment in
emerging economies, is joining Sanabil al-Saudia and the Public
Pension Agency in taking an equity stake in ACWA; in January
2013, the pair of Saudi state-owned funds bought a 19.4 percent
stake for an undisclosed amount.
ACWA aims to complete a stock market flotation in the
kingdom by early 2015, having chosen the investment banking arm
of Banque Saudi Fransi to arrange the listing, an executive
confirmed in May.
($1 = 3.7504 Saudi Riyals)
(Reporting by Nadia Saleem; Editing by David French and Andrew