AES sells interest in Barka desalination plant
Global power company AES is selling its interest in the 91,000 m³/d Barka desalination plant in Oman as part of an agreement announced on 15 December 2009 with ACWA Power International, the Saudi Arabian company.AES Oasis, a joint venture of AES Corp and IDB Infrastructure Fund, has also agreed to sell the company's interests in the 456 MW Barka combined-cycle gas plant and associated technical service companies.
The transaction, which includes two Pakistani power plants, is subject to regulatory approvals and is expected to close during the first half of 2010. It involves the transfer of US$ 276 million of non-recourse debt.
Barka employs approximately 50 people and provide power and desalinated water to the Omani Power & Water Procurement Company (OPWPC) under a 15-year power and water purchase agreement that will end in 2018. The acquisition will be the first by ACWA Power International in the region and follows the company's success in winning similar projects in Saudi Arabia.