CER acquires stake in Pakistan plant
Riyadh, April 8, 2008
Creative Energy Resources Corporation (CER) has bought a strategic stake in the 586 MW Uch power plant in Pakistan from an affiliate of GE Energy Financial Services.
Financial details of the transaction were not disclosed.
CER is a regional power company owned by Swicorp Joussour Company (Saudi Arabia) that will build, acquire, own and operate power generation, transmission and distribution facilities in the Mena and South Asia region.
The generation projects will be based on conventional, thermal, as well as renewable energy. CER intends to partner with key players in the region to develop these facilities and today’s announcement is in line with this strategy.
The Uch Power Limited (UPL) plant is a 586MW combined cycle thermal power plant that generates electricity, using low British Thermal Unit (BTU) gas from the indigenous Uch gas field, which is supplied under a long-term agreement by the Oil and Gas Development Corporation, majority owned by the Government of Pakistan.
The plant’s output is sold to WAPDA, the national utility owned by the Government of Pakistan, under a long-term contract. The plant is the lowest cost source of thermal power generation in Pakistan.
UPL is well placed to leverage the plentiful reserves of the Uch gas field by converting the low BTU gas into electricity at the plant. Generation of power using clean fuel presents a compelling opportunity for CER, in a country where rapidly increasing demand for power has led to severe shortfalls of supply.
'Power is an important asset class for our investors, and we are pleased with the addition of Uch power to the CER power platform. We are confident that the Uch investment offers our investors access to high quality, risk-adjusted returns,” said investment director, Swicorp Joussour Company, Shahid Khan.
“We look forward to continuing to work with the CER management team to develop and acquire further power related projects in the region where the growing economies and population levels have led to acute shortages of power that we hope to address.'
The Swicorp Joussour Company is a private equity vehicle that is structured as a Saudi Joint Stock Company, and is focused on petrochemicals, energy-intensive industries, gas & oil, and infrastructure investments in the region.
The company is managed by Swicorp, a diversified financial services firm operating through an extensive network of offices in the Middle East and North Africa. Founded in 1987 and licensed by the Capital Market Authority of the Kingdom of Saudi Arabia, Swicorp has an extensive track record of pioneering transactions across the Mena region over the last 20 years.
Swicorp's offices in Riyadh, Jeddah, Tunis, Dubai and Algiers provide in-depth local knowledge, plus its Geneva presence (offering financial advisory services) and proximity to major European financial centers provides access to international corporations and leading edge expertise. – TradeArabia News Service