Firms to bid on sale of regional and Pakistani power plants

01 October 2009

Shortlisted companies to make final offers to AES Oasis by end of October

AES Oasis will receive seven bids by the end of 1 October from parties interested in the sale of three power plants in the Middle East and Pakistan.

According to a source close to the process, all seven shortlisted bidders have indicated to the AES Oasis adviser that they will make bids on the plants. “We are very pleased that all seven bidders have said they will have finished their proposals by the end of the day and we have not had any drop out,” says a source involved in the proposal.

The plants for sale are the Barka plant in Oman, and Lal Pir and Pak Gen, both in Pakistan. Bidders have been asked to suggest prices for either individual assets or all three plants.

Saudi Arabia’s Acwa Power, Abu Dhabi National Energy Company (Taqa), Abu Dhabi Investment Corporation (Adic) and the UK’s International Power will all bid for the three plants. Pakistan’s Nishat Chunian Power will bid for the two Pakistani plants. Oman Oil and Qatar Electricity & Water Company (QEWC) will bid for the Oman plant.

Once the bids have been made, AES Oasis and its advisers will then determine whether to sell the plants individually or as a portfolio, based on which option maximises the sale price.

AES Oasis is a holding company with stakes in four regional plants owned by the US’ AES Corporation and Jeddah’s International Development Bank Infrastructure Fund. Expressions of interest in the fourth plant owned by the company, Amman East in Jordan, are now being solicited from financial investors.

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