GPL shareholder reorganises electricity investments
Specialist staff hired for subsidiary
Stabroek News
October 22, 2002
The UK-based Common-wealth Development Corporation (CDC) has reorganised its global electricity investments into one international power company, called `CDC Globeleq', but there has been no change in the shareholding structure of CDC and ESBI in the local power company.
Responding to a question as to whether the restructuring of the British-based CDC meant a change in the shareholding structure of the CDC/ESBI in the Guyana Power and Light (GPL) company, Managing Director of the Latin America & Caribbean CDC Capital Partners, Jim Romanos yesterday told Stabroek News online that there has been no change in the shareholding structure.
He said that the new CDC Globeleq - fully a part of the CDC - will now manage existing and new power sector investments around the world including in Latin America and the Caribbean.
The CDC restructuring process includes its US$300 million power portfolio, invested across Latin America, Africa and Asia.
"The CDC," Romanos said, "has recruited specialist staff from a number of sources, including Hart Energy International, to complement the CDC existing power team." Bob Hart of Hart Energy International is now a CDC employee and Managing Director/Chief Executive Officer of CDC Globeleq.
The recently-appointed Hart in a release described CDC Globeleq "as being a significant investment in its own right" and an excellent fit for the CDC Latin America portfolio. Current market conditions mean that the CDC Globeleq was able to acquire good quality power assets at attractive prices, he said, adding that "we expect that CDC Globeleq's investment in these power businesses will encourage other private equity investors into the market, providing much needed fiscal support for the underlying economies."
Meanwhile the GPL holding company, the Americas Caribbean Power Limited (ACP), Romanos said, will continue to nominate two representatives to the Board of Directors of GPL which remains 80% owned by CDC and 20% by ESBI (out of Ireland). The CDC/ESBI consortium is the majority shareholder in the local power company.
CDC/ESBI recently changed its two representatives on the board of directors, the two current directors being West Griffin and Murray Rogers. Adam Hedayat of the ACP Ltd is the Board Chairman with the Guyana representatives being past chairman of the privatised Guyana Electricity Corporation (GEC) board Ronald Alli and Head of the Privatisation Unit Winston Brassington.
The CDC/ESBI consortium is responsible for the management of GPL which has a 25-year licence to develop and operate the electricity system throughout the country, with the aim of improving access to power supply as well as its quality.
GPL was officially formed on 1 October 1999, following a transfer of assets and liabilities from the then state-owned Guyana Electricity Company (GEC).
GEC had for years suffered from under-capitalisation and an inability to recruit and reward skilled personnel. The deal included agreements on future system development, tariff mechanisms, performance incentives, staff development and investment protection as part of a comprehensive package to revitalise the country's power supply. (Miranda La Rose)