Rakiza, a private equity infrastructure fund, has announced the financial close of its first transaction in Saudi Arabia – acquiring a 40% stake in Tihama Power Generation Company, comprising four combined heat and power plants (CHPs) located in the Eastern Province.
A major infrastructure fund, Rakiza is independently co-managed by regulated independent fund manager Oman Infrastructure Investment Management (OIM) and Equitix, a leading investor, developer and fund manager based in UK.
Tihama Power is the fifth asset in Rakiza’s portfolio, which includes a diverse range of investments in transportation (ports), network utilities, data infrastructure and social infrastructure.
The CHPs, located at Ras Tanura, Ju’aymah, Shedgum and Uthmaniyah, to produce 1,600 MW of electrical power and 6.3 million pounds per hour of process steam and have been in operation since 2006.
Output is consumed by Saudi Aramco, through a long-term agreement. Rakiza will partner with Engie on this project: a world-class infrastructure manager and a 60% shareholder in Tihama Power.
By implementing CHP technology, Tihama Power prioritizes energy efficiency by capturing and using heat that would otherwise be wasted, and by avoiding distribution losses.
Rakiza is committed to investing across a range of infrastructure assets in the Sultanate of Oman and the Kingdom of Saudi Arabia, said OIM Founder and CEO Muneer Al Muneeri.
“We’re delighted to be making our first investment into the Kingdom of Saudi Arabia. This transaction underscores our commitment to investing in the market and the Saudi Vision 2030," he stated.
"Our strategy and unique relationships in Saudi Arabia and Oman provide us with a distinct advantage in sourcing and securing deal flow, and being able to deploy capital in attractive infrastructure projects within the region," he added.
