Abu Dhabi National Energy Company PJSC (TAQA) has purchased a 50% equity stake in the existing Caribbean portfolio of Marubeni Corporation (Marubeni), Japan’s largest trading company.

Peter Barker-Homek, Chief Executive Officer of TAQA, said, “The transaction we bring to you today is another endorsement of our strategic objective to deliver profitable growth in multiple markets where we can access stable cash flows, which complement and enhance our existing diversified energy portfolio.

“TAQA shares the same outlook on long-term investment as Marubeni and brings solid experience in power sector and a strong financial position to the joint venture. Together, we have previously delivered successful partnerships in other regions, having jointly invested in power generation and water production globally. Our joint venture in the region will act as a platform to explore multiple opportunities, beyond the downstream segment, which may assist in creating a more sustainable energy environment for Caribbean countries.”

Marubeni’s assets in the region are currently part-owned and operated in conjunction with local and international partners. The purchase will be made under a 50/50 joint venture focused on long-term investments in the energy sector in the region.

The Marubeni Caribbean portfolio consists of equity stakes in power generation and transmission facilities with a combined generation capacity of 2,300MW (gross) in Jamaica, the Bahamas, Trinidad and Tobago and Curaçao, as follows:

• 55.4% equity interest in Grand Bahama Power Company in Grand Bahama

• 80% equity interest in Jamaica Public Service Company in Jamaica, which owns and operates ten generating facilities, including six hydroelectric plants. These plants expand TAQA’s downstream business into this sustainable energy source.

• 39% equity interest in PowerGen which is an IPP that supplies 80% of total electricity demand in Trinidad & Tobago

• 25.5% equity interest in Curacao Utilities Company which supplies electric, steam and water to refinery plant of Petroleos de Venezuela, S.A. in Curacao Island

TAQA’s role will be operational, with its 50% interest represented at board level at each facility and holding key management positions. The transaction is expected to close by the end of Q1 2009, subject to regulatory consents.

Tags: The Abu Dhabi National Energy Company PJSC (TAQA)