Saudi SWCC said to hire BNP to advise on power plant sale

Saudi Arabia’s Saline Water Conversion Corp. (SWCC) has picked BNP Paribas SA to advise on the privatization of its $7.2 billion power plant, Bloomberg reported on Thursday, citing unnamed sources with knowledge of the matter.

SWCC is working with the France-based banking group to find a potential buyer for the Ras Al Khair desalination and power plant, as part of the Saudi government plan to privatize the water sector and raise money from state assets so as to reduce pressure on capital spending and transform the economy away from oil.

The plant commenced operations in 2014 and produces 2,600 megawatts of power and 1,025 million cubic meter of desalinated water.

In early August, SWCC received bids from several banks to advise on the privatisation of the power plant, Argaam reported.

Saudi Arabia had earlier approved privatization of SWCC and converting it into a publicly traded holding company, which will remain state-owned.