In what is considered the first privatization in Jordan’s energy market and one of the first transactions of its kind in the region, Energy Arabia (ENARA), a company established by JD Energy, the energy investment arm of JD Capital, announced on Saturday the purchase of 51 per cent of Central Electricity Generating Company (CEGCO).
The transaction gives Enara, which was established in partnership with Malakoff, the Malaysian electricity giant and Consolidated Contractors Company (CCC), a 51% stake; the government will retain 40% and the remaining 9% will be transferred to the Social Security Corporation.
Early last year the Government invited potential investors to submit bids to acquire 51% of the Central Electricity Generating Company, as part of the process of privatizing the Jordanian power sector. The process was a competitive one, under which Enara was selected as the Awardee with the most favorable bid.
The ceremony was also attended by H.E. Dr. Ziad Fariz, Minister of Finance, H.E Mr. Samir Z. Al-Rifai, Chairman of Enara and CEO of Jordan Dubai Capital, H.E. Dr. Mohammed Abu Hammour, Chairman of the Executive Privatization Committee, H.E. Mr. Mohammad Al Gergawi, Executive Chairman of Dubai Holding and Mr. Sameer Al Ansari, Executive Chairman and CEO of Dubai International Capital.
Dubai International Capital LLC, the international investment arm of Dubai Holding had announced the establishment of JDC during the World Economic Forum at the Dead Sea in 2005.
“We are very proud of this announcement, as this is JD Capital’s largest investment venture to date. It is also our first major investment in the energy sector. A vibrant energy market reinforced by committed private sector participation is a cornerstone of any emerging market. For Jordan it is a critical component of our continued growth and prosperity. We also realize the increased need in Jordan and the region for environmentally friendly and sustainable alternative energy resources, which Jordan Dubai Energy aims to provide.”
He added: “Enara is a regional company of international caliber. It is completing the transaction today because of the technical and financial resources of JD Energy, Malakoff and CCC. These significant resources and capabilities of the shareholders will be invested in the future of CEGCO and its employees, who are above all else the most important resource in CEGCO.”
A Jordanian-led entity of the size and caliber of ENARA is the perfect partner for us in CEGCO. Its technical expertise as well as its financial ability will be capable of developing the company in meeting the challenges that lay ahead.”
Energy Arabia is a new regional energy market entrant. The company was established earlier last year by JD Energy, JD Capital’s energy investment arm. The company is Jordan’s first Independent Power Producer and is one of the largest portfolios of power generating assets in the region. As an O&M (Operation and Maintenance) company, Enara will provide technical services for both its own power plants and others across the region, in addition to offering consultancy services to existing and potential investors in the power generation industry.
Malakoff is a leading Malaysian company in the field of electricity generation. It seeks to expand internationally through concentrating on energy projects that fall in line with their investment vision in the Middle East and Asian markets.
CCC ranks 17th in the world in the field of construction, it runs top-tier investment activities and projects in the region, including Gaza Energy Generating Station, of which it owns 40%.
The Central Generating Company CEGCO was established in the late 1930′s; the company generates electricity through different generating plants across the kingdom and sells it to the government at a fixed price. The government in turn sells the generated electricity to companies and consumers. This transaction will not affect the consumer on a price level.
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