ACWA steps up Jordan power industry stakeholding
KSA firm ups stake in Jordan's CEGCO taking on Malakoff's 25% interest
ACWA Power International, a Saudi firm specialized in developing privately owned and financed power generation and desalinated water production plants, announced today that it has completed the acquisition of a further shareholding in Jordan’s Central Electricity Generating Company (CEGCO) from Malakoff Corporation Bhd (Malakoff) of Malaysia. Malakoff owns a 25% stake in ENARA Energy Investment PSC (ENARA), which in turn holds 51% ownership of CEGCO. ACWA Power International has acquired this 25% stake in ENARA from Malakoff.
CEGCO is the largest power generator in Jordan, with seven power generation complexes nationwide totaling circa 1700 MW of installed power capacity from a mixed portfolio of technology and fuel types meeting around 51% of the country’s current market share.
Paddy Padmanathan, President and CEO of ACWA Power explained that ACWA Power is increasing its investment in CEGCO by acquiring the 25% stake in ENARA from Malakoff because the company is committed to strengthening the power sector of Jordan and increasing its involvement.
The company firmly believes that the most economical way of adding new electricity generation capacity is by repowering the aging and inefficient portfolio of existing power plants and by moving to gas power generation and renewable energy. The company's prime objective is to remain focused on reducing the cost of producing power and desalinated water and as such in Jordan, ACWA Power will support the government’s initiatives to improve efficiency, diversify fuel sources to include renewable energy and expand capacity.
ACWA Power will leverage on its own capability, capacity and credibility to help the Jordanian government in spurring and sustaining the development of Jordan as envisaged in their 2020 energy strategy.
In July 2011, ACWA Power had acquired a 65% stake in ENARA from Jordan Dubai Capital, in partnership with International Finance Corporation (a member of the World Bank Group). Upon completion of this acquisition from Malakoff, ACWA Power’s affiliates will own a 90% controlling stake in ENARA, while the Athens-based Consolidated Contractors Company (CCC) will continue to maintain its 10% ownership. CEGCO is owned 40% by the Government of the Hashemite Kingdom of Jordan, 9% by the Social Security Corporation and 51% by ENARA.