ACWA Power, SEC reach financial close for SAR 10.8B Qurayyah IPP

Saudi Electricity Co. (SEC) and ACWA Power Co. said that Hajar Two Electricity Co., the Project Company, achieved financial close on the 3,010-megawatt (MW) Qurayyah Combined-Cycle Gas Turbine (CCGT) Independent Power Plant (IPP) expansion project in the Eastern Province of Saudi Arabia.

In two separate statements to Tadawul today, Oct.19, both companies said the financing, valued at SAR 10.8 billion ($2.9 billion), has a tenor of approximately 28 years. The facility, secured on Oct. 16, will be used to develop, build, own, and operate a gas-fired CCGT.

The funding was arranged through a consortium of local, regional, and international lenders, including Saudi National Bank (SNB), Saudi Awwal Bank (SAB), Banque Saudi Fransi (BSF), The Saudi Investment Bank (SAIB), Arab National Bank (ANB), Abu Dhabi Commercial Bank (ADCB), HSBC Bank, Boubyan Bank, Commercial Bank of Dubai, Riyad Bank, Standard Chartered Bank, Sumitomo Mitsui Trust Bank, Ajman Bank, National Bank of Kuwait, Korea Development Bank, Alinma Bank, and Eurobank.

The facility’s guarantee is limited to SEC and ACWA Power’s standby equity and reserve account, the statement said.

Both companies and SNB are related parties.

According to data compiled by Argaam, SEC and ACWA Power signed a power purchase agreement (PPA) on Feb. 19, 2025, with the Saudi Power Procurement Co. (SPPC), the principal offtaker, for the Qurayyah CCGT IPP expansion project.

The total value of the PPA is SAR 13.4 billion, with each company holding a 40% stake in the project.