(MENAFN - Arab News) ACWA Power International, a Saudi firm specialized in developing privately owned and financed power generation and desalinated water production plants, said it had completed the acquisition of a further shareholding in Jordan's Central Electricity Generating Company (CEGCO) from Malakoff Corporation Bhd (Malakoff) of Malaysia.
Malakoff owns a 25 percent stake in ENARA Energy Investment PSC (ENARA), which in turn holds 51 percent ownership of CEGCO.
ACWA Power International has acquired this 25 percent stake in ENARA from Malakoff.
CEGCO is the largest power generator in Jordan, with seven power generation complexes nationwide totaling circa 1,700 MW of installed power capacity from a mixed portfolio of technology and fuel types meeting around 51 percent of the country's current market share.
Paddy Padmanathan, president and CEO of ACWA Power, said ACWA Power is increasing its investment in CEGCO by acquiring the 25 percent stake in ENARA from Malakoff because the company is committed to strengthening the power sector of Jordan and increasing its involvement.
The company's prime objective is to remain focused on reducing the cost of producing power and desalinated water and as such in Jordan, ACWA Power will support the government's initiatives to improve efficiency, diversify fuel sources to include renewable energy and expand capacity.
In July 2011, ACWA Power had acquired a 65 percent stake in ENARA from Jordan Dubai Capital, in partnership with International Finance Corporation (a member of the World Bank Group).
Upon completion of this acquisition from Malakoff, ACWA Power's affiliates will own a 90 percent controlling stake in ENARA, while the Athens-based Consolidated Contractors Company (CCC) will continue to maintain its 10 percent ownership.
CEGCO is owned 40 percent by the Government of the Hashemite Kingdom of Jordan, 9 percent by the Social Security Corporation and 51 percent by ENARA.