ACWA Power has announced that Al Morjan Two Electricity Company has successfully achieved financial close for the $2.5 billion Rabigh 2 Independent Power Project (IPP) Expansion in Saudi Arabia. This project, which will feature a combined-cycle power plant with a generation capacity of 2,313.5 MW, is significant for its readiness to incorporate a carbon capture unit, reflecting a commitment to sustainable energy practices.
Al Morjan Two Electricity, the special purpose vehicle behind the Rabigh 2 project, is a joint venture in which ACWA Power holds a 40% stake. The financing for this ambitious project was secured through a consortium of local, regional, and international lenders, including Alinma Bank, Riyad Bank, and the Saudi National Bank, among others. Notably, international banks such as HSBC Bank Middle East and Standard Chartered Bank also participated in the financing, showcasing a diverse funding base.
The financing structure includes a limited guarantee that covers the liquidity reserve and reserve account, ensuring financial stability as the project progresses. ACWA Power disclosed that the financial impact of this project is expected to commence in the second quarter of 2029, marking a significant milestone in the company’s expansion efforts in the region.
This development is part of Saudi Arabia’s broader strategy to enhance its energy infrastructure and diversify its energy sources, aligning with the Kingdom’s Vision 2030 goals. The Rabigh 2 project is poised to play a crucial role in meeting the growing energy demands of the region while also contributing to environmental sustainability through its carbon capture capabilities.
For further details on the financing and project specifics, refer to ME Construction News.
As the real estate and energy sectors continue to evolve, projects like Rabigh 2 highlight the importance of innovative financing solutions and sustainable practices in shaping the future of energy in the Middle East. For more insights into real estate developments in the region, visit our Real Estate section.
