Riyadh – Mubasher: Acwa, a leading Saudi developer and operator of power generation and desalinated water plants, has entered into a long-term public-private partnership (PPP) and power purchase agreement for the N’diago power project in Mauritania.
The project, which involves the development of a 230 MW Combined Cycle Gas Turbine (CCGT) plant, represents a total investment value of approximately $700 million. This strategic move marks a significant expansion of ACWA Power’s operational footprint in the West African energy sector.
The agreement was formalized through Acwa’s subsidiary, N’diago Energy Company, which will serve as the project vehicle. Under the terms of the deal, ACWA Power holds a 60% effective stake in the venture.
The contractual framework consists of two primary components: a PPP agreement signed with the Government of Mauritania and a Gas-to-Power (CCE) conversion agreement signed with the Mauritanian Electricity Company (SOMELEC).
The scope of the contract encompasses the comprehensive design, financing, construction, operation, and maintenance of the N’diago CCGT facility.
Utilizing combined cycle technology, the plant is designed to optimize fuel efficiency and provide a stable power supply to the Mauritanian grid.
The facility will operate under a 25-year government payment scheme as part of the PPP framework, ensuring a long-term revenue stream for the project company.
Furthermore, the 25-year Gas-to-Power agreement with SOMELEC functions as a tolling arrangement. In this structure, the utility provider typically supplies the fuel necessary for generation, while the project company manages the conversion process into electricity.
According to the disclosure, the PPP agreement and the CCE agreement constitute an indivisible contractual package, both of which were executed simultaneously to ensure the integrated development of the project.
Regarding the financial impact, Acwa noted that the specific effects on its financial statements will be determined and announced following the achievement of financial close. The company also confirmed that there are no related parties involved in this transaction, underscoring the arm’s length nature of the negotiations with the Mauritanian government and the national utility provider.
The Tadawul-listed company logged net profits attributable to shareholders valued at SAR 344.75 million at the end of March 2026, an annual drop of 19.28% from SAR 427.15 million.
