AES will receive an estimated $150 million from the deal, which is expected to close in the third quarter of 2003 (see Banking & Finance). Through the fund, AES Oasis will also get a shareholder, the IDB, which has members right across its target market.

The transaction ends months of speculation over what AES intended to do with its regional assets.

AES Oasis is in the final stages of commissioning the Barka IWPP in Oman and is due to complete the Ras Laffan IWPP in Qatar by April 2004. In addition, the company owns two oil-fired power stations in Pakistan.