ACWA Power Jordan

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IFC is considering an equity investment alongside International Company for Water and Power Projects (trade name ACWA Power International (“ACWA Power”)) to collectively acquire a 65% stake in ENARA, 51% owner of the Central Electricity Generating Company (“CEGCO”). CEGCO is Jordan’s largest power generation company with a total installed capacity of around 1,500 MW representing circa 59% of Jordan’s installed capacity. It owns and operates seven power plants across Jordan playing a critical role in securing Jordan’s electricity supply capitalizing on the assets’ fuel flexibility. CEGCO’s power plants currently sell power to the National Electricity Power Company, government owned transmission company and single buyer under the Power Purchase Agreements (“PPAs”). The acquisition of the 65% stake in ENARA will be subject to several conditions precedent, as is customary in a transaction of this nature, including a consent from the Government of Jordan.In addition to running CEGCO’s plants in accordance with the existing PPAs, ACWA Power plans to improve overall assets’ efficiency whilst extending the terms of the existing PPAs. It will further contemplate re-powering selected plants based on the technical and environmental feasibility adding capacity at a relatively lower cost than a Greenfield power plant.