The Islamic Development Bank’s (IDB) Infrastructure Fund is set to dispose of its 23.3 per cent stake in Amman East, Jordan’s first independent power project (IPP).

The 370MW combined cycle gas-fired power plant is currently owned by the US’ AES Corporation, the IDB Infrastructure Fund and Japan’s Mitsui.

Only the Islamic Development Bank will sell its share in the Amman East power plant stake auction

The project was originally to be sold off along with two plants in Pakistan and one in Oman belonging to AES Oasis, a joint venture comprising AES and the IDB Infrastructure Fund.

Saudi Arabia’s ACWA Power bought out the Omani plant, the Barka 1 independent water and power project (IWPP), while the local Nishat Mills bought out its stake in the Pakistani project.

The decision was taken to exempt the Amman East project from the sale in summer 2009, due to issues with the non-AES stakeholders.

Only the IDB will sell its share in the Amman East power plant stake auction, which will conclude by January or February 2011, according to sources close to the sale. The decision to sell the stake was taken as the fund is approaching the end of its life. AES and Mitsui will retain their ownership shares.

Companies have been approached and the information memorandum will be sent to prospective buyers within weeks.

The UK’s Rothschild is financial adviser to the IDB Infrastructure Fund, while Linklaters and PricewaterhouseCoopers, both of the UK, are the IDB’s legal and tax advisers respectively.

The project, the first of its kind in Jordan, was launched in 2007 and entered commercial operations in 2009. Jordan is currently tendering its third IPP, which will also be built near the capital.