Through its subsidiary “Malakoff International Limited”, MCB has purchased 40% of HPC, Bahrain’s power and water generation facility that emerged after the acquisition of Al Hidd Power and Water Station by an international consortium in 2006.
The agreements were signed by Shaikh Ahmed bin Mohammed Al Khalifa, the Minister of Finance, Dr. Abdul Hussain bin Ali Mirza, Minister of Energy, and from the consortium Phil Cox, CEO of International Power plc., David Barlow, Regional Chief, Sumitomo, and from Malakoff Corporation Berhad Zainal Abidin Abd Jalil, CEO. The signing ceremony was attended by and Shaikh Nawaf bin Ebrahim Al Khalifa, Electricity and Water Authority CEO.
The Minister of Finance commended the move and said it underlined the confidence attributed to the national economy and its capacity to attract further foreign direct investment, thanks to Bahrain’s status as a preeminent investment location in the region and a leading centre of financial, banking and business services.
“We are totally committed to enhancing the competitiveness of the economy and pursuing the implementation of the privatization strategy in accordance with the guiding principles of Bahrain’s Economic Vision 2030 which identifies the private sector as the engine of economic growth,” he added.
The Minister of Energy praised the achievements of Malakoff Corporation Berhad since its early beginnings in 1975 till being at present Malaysia’s premier power and water producer with an effective capacity of 5020 MW comprising of 6 power stations. He said that the local success soon led the company to expand internationally with interest in projects in a number of countries of the region.
“Through the efforts of our government, Bahrain has become a business friendly country and a destination of choice for investment. Malakoff has recognized this potential, and we in Bahrain welcome its initiative to expand operations into Bahrain,” the Minister. He noted that the energy sector in Bahrain had been open to foreign investment since 2004 in order to support the industrial development of the Kingdom.
Phil Cox said that International Power – GDF SUEZ appreciated the commitment of the Government of Bahrain to create a competitive environment for the Kingdom’s privatized power sector. “Today’s ceremony is a milestone towards completion of this major transaction. We thank the Ministry of Finance and our existing partner Sumitomo for their support throughout the process and we already welcome our new partner, Malakoff, in Hidd Power Company. With both our existing and new partner, we remain fully committed to providing the Kingdom of Bahrain with the supply of power and water it needs for its development,” he added.
Zainal Abidin Abd Jalil said that “Malakoff is very proud to be part in this consortium. We look forward to working with the other substantial shareholders, namely IPR-GDF Suez and Sumitomo Corporation, to create more value for this partnership in the long-term.”
HPC provides almost 25% of the power demand in Bahrain. With a production capacity of 90 million gallons of potable water per day, it meets 50% of the requirements of the country in this domain.