Founded in 2008, the company is incorporated in the Kingdom of Saudi Arabia and has a paid-up capital of over USD 1.4 billion. The company is owned by eight Saudi business conglomerates and Saudi state-owned entities mentioned below. Arabian Company for Water and Power Development Holding (Acwa Holding) and the MADA Group for Industrial and Commercial Investment (MADA), respectively, currently have 48.5% and 23.9% shareholding in the company. Acwa Holding is equally owned by the Abunayyan Group and the Al-Muhaidib Group. As of January 2013, Sanabil Direct Investments Company, a subsidiary of the Public Investment Fund of Saudi Arabia, and the Saudi Public Pension Agency, have also joined as shareholders in the company, and currently have 11.8% and 4.9% share ownership, respectively. Other investors in the company include: Al Mutlaq Group Company, Omar Kassem Alesayi Marketing Company, Badad International Company for Trading and Construction, Al Toukhi Commercial Group and the Future Industrial Investments Company.

The proposed IFC equity investment is for up to US$100 million equivalent for IFC’s own account. The company will use the proceeds of IFC’s investment for the development of renewable energy projects in its markets, and non-coal based thermal power generation and desalination projects outside of the Gulf Cooperation Council (GCC) countries.

99.99 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	99.99

* These investment figures are indicative

The company’s headquarter is located in Riyadh, Saudi Arabia whereas its business operations (projects or development offices) are currently spread across MENA (Saudi Arabia, Oman, Jordan and Morocco), Bulgaria, Turkey, China and the southern region of Africa (Mozambique and South Africa). The company will use the proceeds of IFC’s investment for the development of renewable energy projects in its markets, and non-coal based thermal power generation and desalination projects outside of the GCC countries.

The project is expected to have the following development benefits: (i) by supporting the significant scaling-up of renewable energy projects in the company''s markets, help mitigate climate change impacts; (ii) increase power generation and desalination services to meet growing power and water demand in the MENA region and in other emerging countries; (iii) support South-South foreign direct investments to promote economic growth and development in non-GCC developing countries; and (iv) generate direct and indirect employment opportunities through the greenfield projects developed by the company.

IFC has invested or is considering investing with the company in its power projects in Bulgaria, Jordan, Morocco and Turkey, and the proposed investment in the company builds on the successful relationship between IFC and the company. IFC''s additionality in the project will include: (i) IFC will be the sole international shareholder of the company and as the company continues to expand in emerging markets, IFC can help the company''s entry into such markets; (ii) IFC could be an important partner in helping the company to assess and put mitigation measures against political and regulatory uncertainties in developing markets where such risks are heightened; and (iii) IFC''s investment in the company would help ensure the Company''s compliance with IFC Performance Standards.

This is a category A project primarily due to the likelihood that potentially significant and diverse environmental and social impacts could be associated with some of the company’s prospective business activities, particularly the development and operation of large-scale greenfield thermal power plants, water desalination plants, and renewable (wind, solar) power plants.

The key environmental, social, health and safety risks and issues associated with this proposed investment include: the company’s management capacity to acquire or develop power and water desalination projects, including how environmental and social consequences (including cumulative impacts as appropriate) are taken in account in planning, design, construction and operation; air emissions from thermal power generation; effluent discharge from water desalination, thermal discharge from once-through cooling systems of thermal power plants located on the coast, avian impacts imposed by solar / wind turbine operation; greenhouse gas emissions from fossil fuel combustion, stakeholder engagement; land acquisition and compensation associated with all project elements; potential E&S impacts from associated transmission lines; fuels/hazardous materials storage and handling; emergency response planning and preparedness; and labor and working conditions, including employee retrenchment and occupational health and safety. IFC’s appraisal considered the company’s environmental and social management systems and gaps, if any, between its systems and IFC requirements. Where necessary, corrective measures intended to close these gaps within a reasonable period of time, are summarized in the agreed Environmental and Social Action Plan (ESAP). Through implementation of this management system and ESAP, the company is expected to operate its facilities in accordance with Performance Standards objectives.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.