Mon | Aug 2, 2021

Israeli company buys Jamaica Private Power Company

Published:Wednesday | June 4, 2014 | 12:00 AM
Ingrid Christian-Baker, chief executive officer of Jamaica Private Power Company Limited.
Jamaica Private Power Company Limited.

AEI Power Ltd has sold its shareholding in Jamaica Private Power Company (JPPC) to IC Power, an international subsidiary of Israel Corp Group.

With the transaction, IC Power has increased its holdings in JPPC from 15.5 per cent to a 100 per cent.

Chief executive officer of JPPC, Ingrid Christian-Baker, said the deal "complements IC Power's strategic plan to establish itself as a major player in the power generation business in Central America, the Caribbean, as well as in South America."

IC Power, through its Latin America investments arm, Inkia Energy, has invested in Chile, Bolivia, Peru, Panama, El Salvador, Dominican Republic, Nicaragua, Colombia and Jamaican, said JPPC in a press release on its ownership change.

The acquisition price for JPPC was not disclosed, but according to earlier reports, IC Power acquired stakes in AEI Nicaragua and AEI Jamaica for US$54 million in cash.

AEI owned 84.5 per cent of JPPC. It acquired control in 2007, when it bought CMS Energy's 42.3 per cent interest and followed up with deals to purchase the 24 per cent minority holdings of Atlantic Power Corporation, and Energy Investors Funds' 18 per cent.

Christina-Baker confirmed to Wednesday Business that the price of US$54 million applied to both companies but said she was unable to offer a breakdown.

JPPC owns a 60MW base-load diesel-fired generating facility located on the east side of Kingston. The plant consists of two MAN B&W 9K80MC-5 diesel-powered generators that commenced operations in 1998.

The Jamaican company sells its output to Jamaica Public Service Company under a power purchase agreement (PPA). The current agreement expires in 2018. JPPC also has a fuel supply agreement with Petrojam Limited that runs concurrently with the PPA.

IC Power was founded in 2007. With US$3 billion in assets, it has an installed capacity of approximately 5,300MW in America and Israel, including projects under construction.

Recent acquisitions in the region include Nicaragua (185MW) as well as its latest investments in Colombia (Surpetroil 17MW); Chile (Central Colmito 58MW); Peru (600MW Nodo Energetico del Sur) and Las Flores (193MW plant).

Comparatively, JPPC has less than half the capacity of Jamaica Energy Partners' 124MW operation, but IC Power appears set to expand capacity.

"What I know is they are doing some wind studies for a potential wind farm," said Christian Baker, who adds that IC Power may also be interested in other projects.

She said that IC Power has also "built a solid track record with its focus on local development, with a preference for recruiting experienced local talent, and making the most of domestic and natural resources available".

Staffing at the company and the company's name will remain intact under the new owner, according to the CEO.

"The construct of the company remains as is," she said.

Christian-Baker was appointed the company's CEO in August 2013. She was promoted from within, having previously served as business and administrative manager since 2009.