Saudi ACWA Power has signed a deal with Chinese Silk Road Fund, introducing it as a partner and shareholder in ACWA Power Renewable Energy Holding Ltd (ACWA Power RenewCo), ACWA Power’s renewable energy platform that currently owns a number of its existing renewable energy projects.

Under the deal, Silk Road Fund will acquire a 49% stake in the company, according to ACWA Power’s statement on Sunday.

ACWA Power, the leading developer, owner, and operator of power generation and water desalination plants, noted that the transaction is subject to customary consents.

“ACWA Power and Silk Road Fund’s further collaboration is a mirror image of the robust and strategic ties between Saudi Arabia and China that is strengthened year after year,” Paddy Padmanathan, President and CEO of ACWA Power, commented on the agreement.

Padmanathan added that signing the deal is a testament of the commendable goals that the company will achieve with Silk Road Fund that will enhance regional connectivity and embrace a brighter future in renewable energy deployment.

“As a leading developer of power and water assets in the region, and being based in a Belt and Road country, welcoming Silk Road Fund on board as a shareholder further cements our position of being able to support both the economic transformation envisioned by the Belt and Road initiative as well as Saudi Arabia’s forward-looking Vision 2030,” Rajit Nanda, Chief Investment Officer at ACWA Power, said.

ACWA Power did not give further details regarding the transaction’s total cost.

It is worth noting that the Silk Road Fund is a medium-to-long term development and investment fund established in Beijing under the framework of “Belt and Road Initiative”.