Jordan Dubai Capital (JD Capital) has sold its 51 per cent stake in the Central Electricity Generating Company (CEGCO), to Saudi firm ACWA Power for $144 million.

ACWA Power is a major owner and operator of privately financed bulk water desalination and power generation projects.

CEGCO is the largest power generator in Jordan with seven power generation sites across the country totalling circa 1700MW of installed capacity from a mixed portfolio by technology and fuel type. CEGCO was privatised in 2007 when 51 per cent of CEGCO was acquired by Energy Arabia (ENARA), which was established in 2006 by Jordan Dubai Energy & Infrastructure - a wholly owned subsidiary of JD Capital - in partnership with Malakoff and Consolidated Contractors Company (CCC) to meet the growing demand for power generation investment and services in the region.

The other shareholders in CEGCO are the Government of Jordan which maintained a 40 per cent stake after the privatisation and the Social Security Corporation which acquired 9 per cent from the government.

“After four years, JD Capital has come to the end of its natural hold period for an asset of this type. JD Capital will continue to concentrate on the development of its portfolio as well as look for future growth areas in Jordan in which to invest based on our belief that Jordan remains an attractive destination for regional and international investment,” said David Smoot, chairman of JD Capital.

“We are excited about this acquisition, which marks our entry into the second country outside our home market of Saudi Arabia, following last year’s successful acquisition of Barka I IWPP in the Sultanate of Oman,” added Mohammad Abunayyan, chairman of ACWA Power.

JD Capital was advised on the transaction by Bank of America Merrill Lynch and Allen & Overy.-TradeArabia News Service