Kingdom Electricity Signs Agreement to Finalize Acquisition of 100% of Electricity Distribution Company and 55.4% of Irbid District Electricity Company

Amman, July 2008 – The agreement to sell 100% of the government’s shares in the Electricity Distribution Company (EDCO) and 55.4% of Irbid District Electricity Company (IDECO) to Kingdom Electricity Company at a total value of $104 million was concluded yesterday.

Kingdom Electricity, a company established by JD Energy & Infrastructure (JDE&I) in partnership with Privatization Holding Company (PHC, Kuwait) and United Arab Investors, participated in a competitive bidding process through which it won the right to purchase the government’s shares in EDCO and IDECO in 2007.
Commenting on this achievement, HE Samir Z. Al-Rifai, Chairman of Kingdom Electricity Company, said, “We are proud that Kingdom Electricity has concluded the purchase of these two electricity distribution companies in a step that reflects our dedication for pressing ahead with our plans to develop the electricity sector, we aim to improve both companies and support their 2000 employees, in accordance with the directions of His Majesty King Abdullah II and the government’s vision to privatize the sector and capitalize on the skills and expertise of the private sector in building on the experiences and successes that have been achieved so far in creating partnerships that serve the Kingdom and its people.” He further added: “We value the government's efforts to foster the favorable investment environment including the supportive laws and legislations, which have contributed to our achievement of this unique acquisition.  We also wish to commend the roles of the Ministry of Energy and Mineral Resources, the Ministry of Finance and the Executive Privatization Commission, and highly value the efforts of the Electricity Regulatory Commission, represented by its President HE Dr. Hisham Al-Khatib and all its members for their positive support of the Kingdom’s programs and initiatives towards the privatization of this sector, and the completion of this agreement in particular as it strives to ensure universal electricity coverage for the whole Kingdom according to the highest international standards, and for allowing the private sector to be part of this success.”

Mr. Saad Abu Odeh, Kingdom Electricity CEO, expressed his pride with this success and said, “With this agreement we are heralding a new phase of achievement and success that reflects our plans and aspirations to participate in building a strong economy and a bright future worthy of Jordan by playing a positive role in bolstering the country’s infrastructure, especially the electricity distribution sector. We are proud of the human capital of the two companies and reiterate our intent to support and further develop its capabilities.”
The vision of Kingdom Electricity as a Jordanian company is to invest in the electricity distribution sector in Jordan and develop the internal qualifications of both companies to become on par with world standards. It aims at becoming a center of excellence for the management of distribution networks across the region with the support of the government’s economic policies that encourage the spirit of enterprise for the purpose of the country’s development.

Three companies currently cover electricity distribution in Jordan. EDCO operates as the sole electricity distribution company in the East and South of the Kingdom and the Jordan Valley. The company was fully owned by the government of Jordan. IDECO operates in the northern part of the Kingdom (Irbid, Ajloun, Jerash and Mafraq). 55.4% of the company’s shares were owned by the government. Lastly, the Jordanian Electric Power Company (JEPCO) covers the Middle region, including Amman, Zarqa, Madaba and Balqa, with the exception of the Middle Jordan Valley. JEPCO is  a publicly listed company.

The Jordanian government had successfully concluded the privatization of the Central Electricity Generating Company CEGCO last September by selling 51% of CEGCO’s share to ENARA, a company established by JDE&I, the energy investment arm of Jordan Dubai Capital.