The International Finance Corporation (IFC), a member of the World Bank, is investing in Creative Energy Resources (CER) to help the company supply power to some of the most challenging markets in the Middle East, North Africa and South Asia. This initiative will help improve energy reliability and address growing electricity demand in the region, said a statement released by the organization. IFC's equity investment of up to $50 million will help CER develop and build power projects valued at $1.5 billion in its target markets. CER is a newly formed holding company promoted by Swicorp Joussour, which has committed up to 100 million dollars to the group. It will develop, acquire, own and operate a range of thermal and renewable power generation projects. It has already acquired its first investment, a 20.14 percent equity stake in a 585-megawatt gas-fired combined cycle power project in Pakistan. “We are pleased that IFC has made an equity investment in CER which will help us mobilize additional private investment,” said Shahzad Qasim, CEO and founder of CER. “We look forward to working with regional and international investors to improve power supply in the region.” While the power sector in the company's target countries has significant investment needs, the conditions for private investment in these markets remain difficult, said the IFC, noting the situation has been exacerbated by the current global financial crisis. IFC's involvement will help promote intraregional investments, as a significant portion of CER's share capital is expected to come from Gulf investors. Nabil Triki, head of Swicorp Private Equity, said “IFC's equity participation in CER is an endorsement of the company's business plan and management team. Soaring electricity demand and new laws promoting private sector investment have created many power sector opportunities.”
