ACWA Power Signs New Deal With Senegal for Desalination Plant After Cost Review

ACWA Power Signs New Deal With Senegal for Desalination Plant After Cost Review

ACWA Power, a company from Saudi Arabia, has made a new agreement with Senegal to build a water desalination plant after reviewing the costs.

New Agreement After Previous Deal Canceled

Senegal’s President, Bassirou Diomaye Faye, announced the new deal on Thursday in a post on X. This comes after the President canceled the earlier $800 million contract in July 2024 due to high costs, according to Bloomberg.

The new desalination plant, called the Grande Côte plant, will produce 400,000 cubic meters of clean drinking water each day. This will help meet the rising water demand, which the World Bank says could grow by 60% over the next 10 years.

The plant will supply water to the Dakar-Thiès-Mbour area, which uses about 80% of Senegal’s urban water.

Changes in the New Deal

The updated deal lowers the water price from 76 cents (427 CFA francs) to 69 cents (389.8 CFA francs) per cubic meter. It also reduces the government’s yearly payment for the project and doubles the solar energy capacity to 300 megawatts.

The new agreement gives Senegal a bigger share of the profits, better access to low-interest loans, and more support for hiring and training local workers. The total value of the new contract hasn’t been shared yet.

ACWA Power’s Renewable Energy Projects

Earlier this week, ACWA Power and its partners signed deals to build five large solar energy plants and two wind farms in Saudi Arabia. The projects will cost around $8.3 billion and provide 15 gigawatts of electricity—12 GW from solar and 3 GW from wind.

These new projects are expected to be ready between late 2027 and early 2028. With them, ACWA Power now has 21 solar and wind projects in Saudi Arabia and a total of 51.9 GW in renewable energy projects around the world.

Published: 19th July 2025

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