RIYADH, SAUDI ARABIA – The National Development Fund (NDF) on Sunday said it will contribute US$453 million (SAR1.7 billion) to the US$2.2 billion (SAR8.3 billion), 2.6 GW Al Shuaibah solar project that is to be carried out by the National Infrastructure Fund (under establishment).
This is one of the world’s largest renewable energy projects, developed through joint venture by Saudi Aramco, Badeel (PIF’s fully-owned energy and water platform) and ACWA Power.
Total financing for the project was achieved on Sunday through NDF’s contribution; the National Infrastructure Fund’s participation in it will accelerate the delivery of the infrastructure critical to the success of Vision 2030.
NDF’s US$453 million (SAR1.7 billion) financing commitment has attracted large local and international banking groups, consistent with the National Infrastructure Fund’s objective of increasing FDI and private sector investment in the Kingdom’s high-growth infrastructure market.
The project is testimony to NDF’s, through the National Infrastructure Fund to be established, ongoing commitment to the Saudi Green Initiative and delivery of large-scale infrastructure needed for the transition to green energy.
The landmark Aramco-sponsored project is the first financed by NDF’s National Infrastructure Fund, which lends support to this first investment by Badeel, PIF’s owned energy and water platform.
The project is the Kingdom’s largest renewable energy undertaking.
It is expected to start commercial operations in 2025 and will provide over 2.6 GW of green electricity to more than 450,000 families.
The National Infrastructure Fund’s support for projects with such positive socio-economic impact is bound to increase the attractiveness of national industries, stimulate job creation and drive the growth of domestic and foreign investments.