Malakoff buys stake in Hidd Power Company
International Power-GDF Suez sell share of Bahrain power plant
Malaysia’s Malakoff International has acquired a 40% stake in Hidd Power Company, a power and water plant located on Bahrain’s North East coast. The deal allows a consortium comprising International power and GDF Suez Energy to comply with Bahrain market concentration limits by reducing their share in the plant. The two companies previously exceeded the regulatory limit of controlling more than 30% of the country’s installed power capacity.
Under the deal, Malakoff will take a 40% stake, International Power-GDF Suez will hold 30%, with the remainder held by Sumtomo.
The plant has a total power generation capacity of 929 MW, and was sold by the Government of Bahrain to International Power, GDF Suez and Sumitomo back in 2006. The project is amongst the largest in the Kingdom, and supplies around 39% of its current power needs.
Speaking on the deal, Shankar Krishnamoorthy, president of the International Power-GDF Suez consortium said, “Bahrain’s power and water sector is governed by well-structured regulations. By reducing our ownership in Hidd Power Company, we have now met the market concentration requirements.”
Malakoff has stated that the deal fits in with its plans to expand its global operations. The company is already active in Saudi Arabia and Algeria, and has previously completed projects in Oman and Jordan.