Three bidders in the race for power plants in Oman and Pakistan

08 December 2009

Sale to conclude by year end

The US’ AES Corporation and Saudi Arabia’s Islamic Development Bank’s (IBD) infrastructure fund have shortlisted three bidders for the sell off of three power plants in Oman and Pakistan.

Saudi Arabia’s Acwa Power has offered to buy all three plants. Nishat Power, in a consortium with Abu Dhabi Investment Council (Adic), has offered to buy the two plants in Pakistan, and QEWC has made an offer for the Oman plant.

The three plants are currently held in a holding company called AES Oasis. AES Corporation and IDB are currently weighing up whether to sell the three plants together to Acwa, or split the sale between Nishat and QEWC.

A source close to AES Oasis says that the sale will be completed by the year end. “The process is in the last stages and we should be able to sign the deal in the next few weeks,” says the source.

The plants for sale are the Barka plant in Oman, and Lal Pir and Pak Gen, both in Pakistan. Talks with the highest ranked bidders began in late October.

AES Oasis is also selling off its stake in a fourth plant, the Amman East plant in Jordan. That process will begin formally in the New Year once the Pakistan and Oman sale has been concluded.

When the sale was first launched in February all four plant were being offered, however issues with some of the other shareholders in the Jordanian plant led to that process being delayed (MEED 04:09:09).

“We hope to be able to complete the sale of the Jordanian plant in the first quarter of 2010,” adds the source close to AES Oasis.

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