Acwa Power bags $400m water project in Azerbaijan

Acwa Power will develop the first large-scale seawater reverse osmosis (SWRO) desalination plant in Azerbaijan through a public-private partnership (PPP) agreement.

The project will cost SAR1.5 billion ($400 million), the Saudi-listed renewables company said in a statement.

The contract to design, construct, finance, own, operate, and maintain the Caspian sea water desalination plant is valued at SAR1.5 billion ($400 million) and was signed with the Azerbaijan State Water Resources Agency, the Saudi-listed renewables company said in a statement.

The desalination plant will be wholly owned by Caspian Sea Azerbaijan Project Company, a special-purpose vehicle set up by Acwa Power.

The contract will run for 27.5 years, including the construction period.

In January, an Acwa Power-led consortium was selected as the preferred bidder for the Caspian desalination project, which has a daily capacity of 300,000 cubic metres.

The company secured $238 million in funding in November 2024 to support the Absheron-Khizi 240-megawatt wind farm in Azerbaijan.

The Absheron-Khizi wind farm is Azerbaijan’s first independent, foreign-invested wind power project. It is expected to commence operations in the first half of 2026 and involves a 25-year power purchase agreement with the state-run national electrical power company, Azerenerji.

Saudi Arabia’s Public Investment Fund owns 44 percent of Acwa Power. The stock closed at SAR182 on Sunday, down 53 percent in the last year.