2nd June 2011

Amman, Jordan [June 2, 2011]:  Jordan Dubai Capital (‘JD Capital’), an investment company based in Amman, whose largest shareholders are Dubai International Capital and the Social Security Corporation of Jordan, today announced the sale of its controlling stake in the Central Electricity Generating Company (‘CEGCO’), the largest power generator in Jordan to ACWA Power International (“ACWA Power”), a major Saudi Arabian developer, owner and operator of privately financed bulk water desalination and power generation projects for a total consideration that values 51% of CEGCO at US$ 144 million.

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 privatized in 2007 when 51% 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% stake after the privatization and the Social Security Corporation which acquired 9% from the Government.

Commenting on the sale David Smoot, Chairman of Jordan Dubai Capital said:  “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.”

“I am very proud of the Company’s success and achievements we remain dedicated to supporting Ismail Tahboub, the CEO, and the members of JD Capital’s senior management, whose skills and capabilities have been instrumental in positioning the Company at the helm of its sector,” he added.

Ismail Tahboub, Chief Executive Officer of Jordan Dubai Capital commenting on the sale process said:  “Under JD Capital’s stewardship CEGGO has transitioned from a state owned company to a successful privately owned commercial enterprise. In securing the highest quality operator to manage the next phase of CEGCO’s development, JD Capital has shown itself to be a regional leader in acquiring managing and successfully exiting highly complex infrastructure assets. It is particularly pleasing to have seen strong foreign investor interest for the asset throughout the sale process; which culminated in the sale of CEGGO to a highly respected Saudi Arabian company. This proves that the Government of Jordan’s strategy for private participation in the power sector has been successful and that the Government continues to be a solid and credit worthy counterparty.  We have secured reasonable return on our original investment, which is in line with the low risk nature of infrastructure assets.”

Mr. Mohammad Abunayyan, Chairman of ACWA Power said “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. This acquisition is another key milestone in our company’s history and is a culmination of a longstanding endeavor to establish a presence in Jordan and contribute to increasing Jordan’s electricity generation capacity to keep pace with its rapidly growing demand, all the while also being mindful of utilizing the scarce fuel resources in the most efficient manner possible.”

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

Jordan Dubai Capital

Jordan Dubai Capital was established as an investment company intended to source and execute investment opportunities solely in Jordan. Jordan Dubai Capital’s investment scope includes; Privatisations, Infrastructure, Projects and Private Equity and Strategic Investments in Publicly Listed Companies. Other assets in the fund include; Kingdom Electricity Company which owns and manages two of three electricity distribution companies in Jordan that collectively cover over 500,000 consumers and 70% of the Kingdom’s geography Jordan Dubai Islamic Bank, which is Jordan’s fastest growing Shariah compliant banking institution; First Insurance, an Islamic insurer and; Jordan Dubai Properties; which is developing major real estate and hospitality and leisure projects throughout Jordan. Jordan Dubai Capital is owned by a group of investors including Dubai International Capital and the Jordan Social Security Corporation and a range of other prominent regional investors.

ACWA Power

ACWA Power is a developer, owner and operator of power generation and desalinated water production plants structured on a concession or utility outsourcing contract model co-funded within a limited recourse, project finance framework. The company, incorporated in the Kingdom of Saudi Arabia, is as a privately owned Joint Stock enterprise with a paid up capital of Saudi Riyal 3.71 Billion. As a principal in its sector, ACWA Power is now growing beyond its core MENA region into international markets.

To date, ACWA Power’s growth strategy has translated into seven mega projects: Rabigh IWSPP, Shuaibah IWPP, Shuaibah Expansion IWP, Marafiq Jubail IWPP, Shuqaiq IWPP and Rabigh IPP all in the Kingdom of Saudi Arabia and Barka 1 IWPP in Oman. This portfolio of projects, some of which are operational, will collectively deliver approximately 6,485 MW of power and 2.31 million cubic metres/day of desalinated water, all representing an asset value of Saudi Riyal 45 billion.

For media enquiries:

Rania M. El-Far
Corporate Communications Supervisor
Jordan Dubai Capital
+962 (6) 592 2900