CDC gives double boost to the Dominican Republic's power industry
6 December 2001
CDC Capital Partners is delighted to mark its major contribution to the development of power generation in the Dominican Republic, following the announcement, within the last week, of the commissioning of two new power plants, both located at San Pedro de Macorís.
CDC, a leading risk capital investor in the emerging markets, is a key investor in each of the two companies behind the plants:
- local utility Empresa Generadora de Electricidad Haina SA (Haina) has commissioned one of the world's largest, most efficient and environmentally-sound power barges. It will provide an additional 150MW to Haina's existing generating capacity of 450MW;
- La Compañía de Electricidad de San Pedro de Macorís (CESPM), owned by the consortium of CDC and Cogentrix, has developed the country's largest single power generator, a 298MW combined cycle power plant.
CDC Capital Partners first became involved in the Dominican Republic's power industry in 1995, through its investment in one of the country's first private plants, in partnership with Coastal Power (now El Paso). More recently, CDC has been able to further develop its power portfolio in the country, following the privatisation in 1999 of the Haina company, formerly part of the thermal power generation assets of the state-owned Corporación Dominicana de Electricidad (CDE).
As one of the largest investors in Haina, CDC was instrumental in bringing the deal successfully to completion. It is part of the consortium which owns 50% of Haina and manages the company as well. In 2000, CDC also helped Haina add 100MW of new generating capacity, which was commissioned ahead of schedule.
CDC became the largest shareholder in the consortium, building its stake to over 40%, following the buy-out of Enron's stake in 2000.
In parallel with the Haina success, CDC's key role as co-developer and investor in CESPM, has its origins in the early stages of the deregulation of the Dominican Republic's power sector. CDC has since built its stake in the business to 35%. CESPM is responsible for the development, construction and operation of the plant at San Pedro.
Andrew Aldridge, CDC's Director of Power, added: "The commissioning of these two plants will lead to substantial benefits to the DR power sector, through the supply of additional, cost-effective energy to the system, from state-of-the-art plants."
CDC is creating a new international power company, headed up by Robert C. Hart, President and CEO of Hart Energy International (HEI). The new company will seek to grow CDC's existing power portfolio by taking advantage of the many opportunities that exist in the international power sector. CDC has launched an equity offering for the new company.
