Aqua Power Acquires Energy and Water Desalination Assets in Kuwait and Bahrain for SAR 2.6 Billion

Aqua Power has announced the signing of an agreement to acquire a portfolio of energy generation and water desalination assets in both Kuwait and Bahrain, with a total deal value of approximately SAR 2.6 billion (equivalent to USD 693 million). This move aims to strengthen the company's regional presence and support its future cash flows.

According to a disclosure to the Saudi financial market, the deal includes fully operational assets for power generation using a combined cycle system with a total capacity of 4.6 GW, along with water desalination capacity of 1.114 million cubic meters per day, as well as related operation and maintenance companies.

Acquisition Structure

The acquisition will be carried out through new companies that will be established under Aqua Power's umbrella, including:

In Kuwait

• Aqua Power will acquire 18% of the North Zour Power Station, which has a production capacity of 1,520 MW of electricity and 486,000 cubic meters of desalinated water per day.

In Bahrain

• 45% of the Isolator Station (940 MW).

• 45% of the Dur Station (1,220 MW of electricity and 218,000 cubic meters of water per day).

• 30% of the Hidd Station (930 MW of electricity and 409,000 cubic meters of water per day).

The deal also includes the acquisition of operation and maintenance companies, most notably:

• 50% of the operation and maintenance company for the North Zour Station in Kuwait.

• 100% of the operation and maintenance company for the Isolator Station in Bahrain.

Financing and Timeline

The company clarified that the deal will be financed through internal cash sources alongside financing facilities, with ownership transfer expected after fulfilling contractual conditions and obtaining necessary regulatory approvals in both countries.

The agreement was signed on February 18, 2025, with the completion of the deal anticipated following the completion of regulatory procedures.

Strategic Motivations

Aqua Power emphasized that the deal is part of its strategy to strengthen its position as the world's largest company in the field of water desalination and to expand its presence in power generation markets in the Gulf, supporting profitability and free cash flows through operational assets with long-term contracts.

This step marks Aqua Power's first entry into the Kuwaiti market by acquiring a stake in the North Zour Station while continuing to enhance its operational capabilities and expand its operation and maintenance activities in the region.