IFC Investment to Help Boost Energy Reliability in Middle East and North Africa
In Washington, D.C.:
Zibu Sibanda, IFC
Phone: 202-473-0605
E-mail: zsibanda@ifc.org
In Cairo:
Riham Mustafa, IFC
Phone: + 20 24619149 ext 306
E-mail: rmustafa@ifc.org
Washington, D.C., December 8, 2008—IFC,
a member of the World Bank Group, is investing in Creative Energy Resources
to help the company supply power to some of the most challenging markets
in the Middle East, North Africa and South Asia. This initiative will help
improve energy reliability and address growing electricity demand in the
region.
IFC’s equity investment of up to $50
million will help CER develop and build power projects valued at $1.5 billion
in its target markets. CER is a newly formed holding company promoted by
Swicorp Joussour, which has committed up to $100 million to the group.
It will develop, acquire, own and operate a range of thermal and renewable
power generation projects. The company has already acquired its first investment,
a 20.14 percent equity stake in a 585-megawatt gas-fired combined cycle
power project in Pakistan.
“We are pleased that IFC has made an
equity investment in CER which will help us mobilize additional private
investment,” said Shahzad Qasim, CEO and Founder of CER. “We look forward
to working with regional and international investors to improve power supply
in the region.”
While the power sector in the company’s
target countries has significant investment needs, the conditions for private
investment in these markets remain difficult. The situation has been exacerbated
by the current global financial crisis. IFC’s involvement will help promote
intraregional investments, as a significant portion of CER’s share capital
is expected to come from Gulf Cooperation Council country investors.
Nabil Triki, Head of Swicorp Private
Equity, said, “IFC’s equity participation in CER is an endorsement of
the company’s business plan and management team. Soaring electricity demand
and new laws promoting private sector investment have created many power
sector opportunities.”
Anita Marangoly George, IFC Director
for Infrastructure, said, “IFC is pleased to invest in a promising regional
player and to lend our support for CER’s efforts in providing power to
an underserved part of the world. We expect the company to play a significant
role in increasing private participation in the development of power projects
within the region.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34% increase over the previous year. For more
information, visit www.ifc.org.
About Swicorp
Swicorp is a financial advisory, private
equity, and principal investment firm licensed by the Capital Markets Authority
of Saudi Arabia to provide a comprehensive range of services to domestic
and international businesses in the Middle East and North Africa. Founded
in Switzerland in 1987, Swicorp’s headquarters is in Riyadh, with additional
offices in Algiers, Dubai, Geneva, Jeddah, and Tunis. Swicorp (UAE) Ltd
is regulated by the Dubai Financial Services Authority. For more information,
visit www.swicorp.com.
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