“ACWA Power has entered into a binding agreement with Jordan Dubai Capital (JDC) to acquire a controlling stake in Jordan’s Central Electricity Generation Company (CEGCO),” Mohammad Abunayyan, chairman of ACWA Power, said following the signing ceremony on Thursday. The transaction puts the value of 51 percent of CEGCO at $144 million.
ACWA Power is specialized in developing privately owned and financed power generation and desalinated water production plants.
JDC owns a 65 percent stake in Enara Energy Investments PSC (“Enara”), which in turn holds 51 percent ownership of CEGCO. ACWA Power will acquire 65 percent of Enara from JDC.
CEGCO is the largest power generator in Jordan, with seven power generation complexes nationwide totaling 1,700 MW of installed power capacity from a mixed portfolio of technology and fuel types meeting around 59 percent of the country’s current electricity consumption.
“We are excited about this acquisition, following the establishment of a strong asset base with a contracted production capacity of about 6,485 MW in Saudi Arabia,” Mohammad Abunayyan said.
“This acquisition marks our entry into the second market in line with our regional expansion plan, following last year’s successful acquisition of Barka I IWPP in the Sultanate of Oman. The stable investment climate of Jordan and its socioeconomic growth potentials give us a perfect platform to build our regional growth ambitions,” he added.
“This acquisition is another key milestone in our company’s history and is 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, all the while also being mindful of utilizing the scarce fuel resources in the most efficient manner possible,” Abunayyan noted.
Thanking King Abdallah for the encouragement offered in the deal, Abunayyan expressed his appreciation to the Jordanian government, the Jordanian Electricity Regulation Commission, the National Electric Power Company, and the new partners for the guidance, encouragement, and trust they have placed in ACWA Power.
