RIYADH: ACWA Power International (ACWA Power), the Saudi-based Water desalination and power generation company, completed its acquisition of a 65 percent controlling stake in Enara Energy Investments PSC (Enara) which in turn owns 51 percent of Jordan's Central Electricity Generating Co. (CEGCO), Jordan's largest electricity producer. In addition, ACWA Power also announced the completion of the sale of a minority stake in Enara to International Finance Corp (IFC), a member of the World Bank Group.
Earlier on June 2, ACWA Power announced that it had entered into a binding agreement with Jordan Dubai Capital to acquire a controlling stake in CEGCO. Later, in July this year, ACWA Power also announced the signing of a binding agreement with IFC for selling a minority stake in Enara. IFC invested circa $10.5 million for the minority stake in Enara. Both the above transactions value 51 percent of CEGCO shareholding at $144 million.
The CEGCO) is described as the largest power generator in Jordan with seven power generation complexes nationwide, totaling CIRCA 1,550MW of installed power capacity of a mixed portfolio of technology and fuel types that meet around 59 percent of the country's current electricity consumption. The acquisition accounts for a culmination of a longstanding endeavor to establish a presence in Jordan and contribute to increasing Jordan's electricity generation capacity to keep pace with its rapidly growing demand, while being mindful of utilizing the scarce fuel resources in the most efficient manner possible.
In line with this vision, ACWA Power also submitted a bid for the circa 650 MW greenfield power project East of Amman (IPP3) and also supported CEGCO (as a majority shareholder) in submitting its bid for a peaking power project of circa 250 MW at one of its existing plant locations. ACWA Power will also be focusing on supporting CEGCO to repower or refurbish its existing power plants, which are close to decommissioning and increase the availability and quality of electricity supply in Jordan. All of the above initiatives reaffirm ACWA Power's support and confidence in the energy sector of Jordan.
ACWA Power currently owns a 65 percent controlling stake in Enara, while Malakoff, the Malaysian electricity company, and the Athens-based Consolidated Contractors Company, will continue to own respective stakes of 25 percent and 10 percent in Enara. CEGCO will continue to be divided in an ownership scheme that sees 40 percent of the company owned by the Jordanian government. The Social Security Corporation of Jordan owns 9 percent, while Enara owns the remaining 51 percent.
Mohammed Abunayyan, chairman of ACWA Power, said: "We believe that Jordan is a stable country politically, economically and socially, and we'll work on improving power delivery in the country. ACWA Power has agreed with IFC to implement an environmental and social action plan which will result in improved operational safety and create an environmentally sustainable platform at CEGCO's 7 power plants in the country."
Francis Gomez, newly appointed head of ACWA Power's operations in Jordan and the CEO of Enara, said: "ACWA Power plans to invest significant additional capital to enhance the performance of the power plant complexes; by improving operational efficiency, upgrading capacity, and replacing and renewing plant units as required. These initiatives are expected to increase the amount of energy that CEGCO generates to ensure that it can respond to the increased electricity needs of the country."
© Arab News 2011
