Conduit Capital Partners has acquired a power generation portfolio from Basic Energy, including Jamaica Energy Partners (which Conduit sold to Basic in 2007) and a 55% share in Pedregal Power Company. No financial terms were disclosed.
Conduit Capital Partners LLC, a private equity investment firm focused on infrastructure investment and development in Latin America and the Caribbean, today announced that it has completed the acquisition of a power generation portfolio from Basic Energy. Included in the purchase was a 100% interest in Jamaica Energy Partners (“JEP”), a 55% share in Pedregal Power Company, and the right to interests in two other development opportunities in the region.
Jamaica Energy Partners operates eleven barge-mounted, diesel-fired generating units. The combined capacity of 125 MW represents roughly 20% of the electricity consumed on the island. The plant is located in Old Harbour Bay, which is approximately 60 miles west of the capital, Kingston. As part of the transaction, Conduit has also acquired the right to add 60 MW of generation capacity to JEP, which it expects to begin constructing this year. Conduit’s Latin Power I, II, and III funds were all previous investors in JEP, with the Conduit funds reaching 100% ownership of the asset in 2006. Conduit sold the asset to Basic Energy in 2007 for $92.5 million.
“The changing market conditions gave us an opportunity to acquire strong operating assets in markets we know well and with first-class management teams,” said Juan Paez, partner at Conduit.
“We are very pleased to acquire such a strong combination of assets,” said J. Scott Swensen, Chairman of Conduit. “The pipeline of power generation assets for purchase in the Caribbean and Central America is exceptionally strong for our firm, and we look to today’s purchase as the foundation of an exciting regional power platform.”
The Pedregal Power Company thermal generating facility is one of the most efficient generators in the Panamanian system. Located about 21 miles east of Panama City, the plant has an installed capacity of 55 MW.
“Panama has long been on our list of countries that are attractive for investment for many reasons, including the stable political environment and the government’s willingness to work with investors to improve infrastructure,” continued Mr. Paez. “We are pleased to establish a foothold in such an exciting market.”
About Conduit Capital Partners
Based in New York City, Conduit Capital Partners, LLC is a private investment firm focused exclusively on infrastructure investment and development in Latin America and the Caribbean. Through its management of the Latin Power Funds, Conduit has made investments in Mexico, Chile, Peru, Brazil, Argentina, Colombia, Jamaica, Honduras and Guatemala. Founded in 1993, Latin Power I was the first private equity fund exclusively dedicated to infrastructure investments. Conduit is presently investing its $392 million Latin Power III fund.