CAIRO: The International Finance Corporation, a member of the World Bank Group, and International Company for Water and Power Projects (ACWA Power), a Saudi power and water desalination firm, are investing in Jordan’s largest electricity producer to improve power delivery in the country, according to a statement.
IFC is investing about $10.5 million to support ACWA Power’s acquisition of Enara Energy Investments PSC, which in turn owns 51 percent of Jordan’s Central Electricity Generating Company (CEGCO).
IFC’s investment will support ACWA Power’s plans to improve the efficiency of CEGCO’s power plants through their repowering, up-rating and rehabilitation and to expand CEGCO’s generating capacity to keep pace with the country’s rapidly growing electricity needs, the statement said.
“This partnership with IFC is yet another key milestone in the history of ACWA Power, as we continue to expand our operations in the GCC region, Jordan, Turkey, Egypt, Morocco and South Africa,” said Paddy Padmanathan, ACWA Power’s president and CEO in the statement.
“Working together with IFC, our focus will be to deliver power in the most sustainable manner at the lowest possible cost.”
As part of its investment, 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 seven power plants in the country.
“IFC understands that infrastructure in the Middle East and North Africa will require significant investments in the coming years to make possible the kind of economic expansion the region needs for its growing population,” said Gulrez Hoda, IFC director for Infrastructure and Natural Resources in Europe, Central Asia, Middle East and North Africa.
ACWA Power and IFC will acquire equity shares in Enara, a holding company created by CEGCO’s current owner Jordan Dubai Capital, which bought CEGCO in 2007. CEGCO is the largest power generator in Jordan, with seven power plants nationwide. Together, these facilities have about 1550 megawatts of installed capacity, or about 59 percent of the country’s total.