MENA Infrastructure Fund LP has sold its 38.1% stake in Omani utility United Power Company SAOG (“Manah IPP”) to Khaled Juffali Energy and Utilities (“KJEU”), a Saudi Arabian power company which specializes in developing reliable power generation through conventional and renewable energy resources.
The transaction completed on Tuesday 1st of March 2016 following the receipt of all requisite approvals, including from the Authority for Electricity Regulation, Oman.
MENA Infrastructure Fund LP is a $300 million fund managed by MENA Infrastructure, a specialized infrastructure fund manager, established by HSBC, Fajr Capital and Waha Capital. The fund invested in Manah IPP in 2009, becoming the single largest shareholder.
The Manah IPP is a 270 MW open-cycle natural gas fired power plant which is located near Nizwa in Oman on 200 acres of land, approximately 180 kilometres south-west of Muscat. The plant sells power to the Oman Power & Water Procurement Company, the single-buyer in the Oman electricity market.
Khaled Al-Juffali, Chairman of KJEU, said “Our entry into the Oman market is a first step in KJEU’s strategy to internationalize our business. Manah IPP is a high-quality asset managed by a very professional team, including Omani and international power-industry experts”.
H.E. Hussain Al Nowais, Chairman of MENA Infrastructure, said: “Our investment has contributed to the development of the Omani power market. Manah IPP, Oman’s first independent power project, has been an overwhelming success, and will continue to be as KJEU becomes the latest international investor in the Omani power market.”
Bander Allaf, KJEU’s CEO, said: “We have built a strong team capable of assembling a world class portfolio of projects, such as Manah IPP. The plant has demonstrated exceptional reliability and performance, successfully meeting its long-term power purchase agreement.”
Jeronimo Roura, CEO of MENA Infrastructure, said: “This is MENA Infrastructure’s second exit and we are delighted with the result. This transaction demonstrates once again the confidence of foreign investors in the Omani power market. We are proud to bring KJEU to Manah IPP as the new largest shareholder in the company, and we are thankful to the management team of Manah IPP for their continuous exceptional performance.”
About MENA Infrastructure
MENA Infrastructure is a pre-eminent infrastructure equity investor and fund manager focusing on investments in the Middle East, North Africa and Turkey (MENAT) region.
Founded in 2007 and owned by HSBC, Fajr Capital and Waha Capital, MENA Infrastructure currently manages a US$300 million infrastructure fund from its headquarters in the Dubai International Financial Centre. MENA Infrastructure has executed some of the region’s landmark transactions and holds a collection of well-regarded awards which bear testament to its superior performance.
Khaled Juffali Energy and Utilities (KJEU) is engaged to develop, build and then operate conventional and renewable energy facilities across MENA region with intention to maximize local content and know how transfer among the electricity industry.
KJEU remains technology agnostic, selecting whichever is the most appropriate equipment applicable to each individual project specifications, location and environment. The company offers BOT, BOO and EPC contracts together with full Operations & Maintenance servicing post completion.
About Manah IPP
United Power Company (SAOG) was formed and registered as a joint stock company on January 9th, 1995. Prior to the sale of its stake, MENA Infrastructure Fund LP owned 38.1% and the remaining stake is owned by Ministry of Defence Pension Fund (5.5%), MGEC (Oman) Holdings Limited (16.2%), while the other 40% is publicly owned and listed on the Muscat Security Market. Manah IPP owns a 270 MW open-cycle natural gas fired power plant that located near Nizwa in Oman on 200 acres of land, approximately 180 kilometres South-West of Muscat with an elevation of 378 meters above sea level. Manah IPP sells power to the Oman Power & Water Procurement Company, the single-buyer in the Oman electricity market.
For further information:
Chief Executive Officer, MENA Infrastructure
T +971 4 270 6800