China’s Silk Road Fund has become a leading partner and shareholder in ACWA Power Renewable Energy Holding (ACWA Power RenewCo) after acquiring a 49% stake in the company.

The Chinese fund reached an agreement with ACWA Power, and the transaction is subject to customary consents, Zawya reported citing a company press release.

The Saudi-based energy firm currently owns a number of renewable energy projects in the UAE, Egypt, South Africa, Jordan, and Morocco, with an aggregate capacity of 1,668 megawatts (MW).

Moreover, ACWA Power and Silk Road Fund have previously cooperated in two UAE-based projects, the 2,400MW Hassyan clean coal power plant, and the 950 MW Hybrid CSP and PV fourth phase of the Mohammed bin Rashid Solar Park to respectively power 1.3 million people and 320,00 residential homes.

The Silk Road Fund is a development and investment fund established in Beijing under the framework of the Belt and Road Initiative.