IDB Fund to sell Jordan power plant stake

The fund, which is managed by private equity firm EMP Global, is to sell its interest in the Amman East independent power plant to The Qatar Electricity and Water Co. The deal is expected to conclude in the first quarter of this year.

The Qatar Electricity and Water Co (QEWC) has entered an agreement to acquire IDB Infrastructure Fund’s 38.9 percent interest in AES Oasis. AES Oasis owns a 60 percent stake in AES Jordan HoldCo, which in turn owns the entire issued share capital of AES Jordan PSC, owner of the 370-megawatt (MW) Amman East independent power plant (IPP) in Jordan.

The Amman East power plant is a combined cycle gas-fired power plant in Al Manakher, Jordan, and is the first IPP in the country. Construction on the $300 million plant started in 2007 and it was commissioned in 2009.

The terms of the deal – which is subject to approvals and expected to be completed during the first quarter of this year – were not disclosed.

In a statement, QEWC general manager Fahad Hamad Al-Mohannadi said the deal was the firm’s first cross-border M&A transaction and was part of its commitment to expand outside Qatar in a “measured, conservative manner while sticking to its core areas of expertise”.

The statement said that RBS Corporate Finance was providing financial advice to QEWC on the deal, while legal advice is being given by Norton Rose and Jordan-based Khalifeh & Partners.

Formed in 1990, QEWC is an owner and manager of power and desalination companies, with more than 5.7 gigawatts of power capacity and 258 MIGD (million imperial gallons per day) of potable water capacity. The firm is part of a consortium building the 2,000MW Sur IPP in Oman.

The IDB Infrastructure Fund is a $730 million private equity fund focused on infrastructure in Islamic countries. It is managed by EMP Bahrain, a subsidiary of EMP Global, the Washington D.C.-based emerging markets private equity firm.