ACWA Power International, a Saudi water and power developer, owner and operator, has entered into a definite agreement with a subsidiary of Sumitomo Corporation to acquire its 20% stake in Shuweihat CMS International Power Company PJSC (SCIPCO), which owns the Shuweihat S1 Power and Desalination Plant and its 50% equity interest in the Shuweihat O&M Ltd. Partnership, the company that operates and maintains the asset.

The project began its commercial operation in 2005 under a 20-year off take agreement from the Abu Dhabi Water & Electricity Company (ADWEC). The S1 Plant, constructed by Siemens AG, Germany and Fisia Italimpianti, Italy SCIPCO, has a net production capacity of 1,500 megawatt electricity and 100 million imperial gallon desalinated water a day.

The plant is 60 % owned by Abu Dhabi National Energy Company (TAQA) and its parent company, ADWEA. The remaining 40 percent in SCIPCO was equally owned between Sumitomo and International Power/GDF Suez.

Mohammad Abunayyan, ACWA Power chairman, stated:

This marks ACWA Power's entry into yet another important market in the GCC after our significant positions in Saudi Arabia and Oman.

The transaction is expected to close in March 2014, subject to closing conditions. Citigroup acted as sole financial advisors to ACWA Power.