Creative Energy Resources acquires a strategic stake in Gas fired Power plant in Pakistan

CER is a regional power company owned by Swicorp Joussour Company (Saudi Arabia) that will build, acquire, own and operate power generation, transmission and distribution facilities in the Middle East, North Africa, and South Asia (MENASA) region.

The generation projects will be based on conventional, thermal, as well as renewable energy. CER intends to partner with key players in the region to develop these facilities and today's announcement is in line with this strategy.

The Uch Power Limited (UPL) plant is a 586MW combined cycle thermal power plant that generates electricity, using low British Thermal Unit (BTU) gas from the indigenous Uch gas field, which is supplied under a long-term agreement by the Oil and Gas Development Corporation, majority owned by the Government of Pakistan.

The plant's output is sold to WAPDA, the national utility owned by the Government of Pakistan, under a long-term contract. The plant is the lowest cost source of thermal power generation in Pakistan.

UPL is well placed to leverage the plentiful reserves of the Uch gas field by converting the low BTU gas into electricity at the plant.

Generation of power using clean fuel presents a compelling opportunity for CER, in a country where rapidly increasing demand for power has led to severe shortfalls of supply.

Shahid Khan, Investment Director, Swicorp Joussour Company said:

"Power is an important asset class for our investors, and we are pleased with the addition of Uch power to the CER power platform. We are confident that the Uch investment offers our investors access to high quality, risk-adjusted returns. We look forward to continuing to work with the CER management team to develop and acquire further power related projects in the MENASA region where the growing economies and population levels have led to acute shortages of power that we hope to address".

Commenting on the announcement, Shahzad Qasim, Founder and CEO of CER stated: "The closing of this transaction is an important milestone for CER. We are excited about expanding the generation capacity at Uch to help meet the growing power demand in the country. We are pleased to partner with International Power plc, Hawkins International, Inc. and Hasan Associates and look forward to developing a fruitful relationship going forward. We would like to express our gratitude for the trust and confidence the Government of Pakistan and other stakeholders in the plant have placed in CER.

The Swicorp Joussour Company is a private equity vehicle that is structured as a Saudi Joint Stock Company, and is focused on petrochemicals, energy-intensive industries, gas & oil, and infrastructure investments in the MENASA region.

The company is managed by Swicorp, a diversified financial services firm operating through an extensive network of offices in the Middle East and North Africa.

Founded in 1987 and licensed by the Capital Market Authority of the Kingdom of Saudi Arabia, Swicorp has an extensive track record of pioneering transactions across the MENA region over the last 20 years.

Swicorp's offices in Riyadh, Jeddah, Tunis, Dubai and Algiers provide in-depth local knowledge, plus its Geneva presence (offering financial advisory services) and proximity to major European financial centers provides access to international corporations and leading edge expertise.