CDC Globeleq appoints John Grier Head of newly-established South Africa regional office
1 April 2003
CDC Globeleq, the emerging markets power business, announces the appointment of John Grier as Head of CDC Globeleq’s South Africa Regional Office. John is responsible for Kelvin Power, a 600 megawatt coal-fired power station serving the city of Johannesburg, and for the further expansion of CDC Globeleq’s business in South Africa.
Commenting on the appointment, Bob Hart, CEO of CDC Globeleq, said “We are excited by the prospects ahead for Kelvin, and by the work that John and his team are doing in Kelvin’s refurbishment programme. We look forward to further significant expansion of our business in South Africa.”
Kelvin became South Africa’s first substantial independent power producer in 2001, as part of Johannesburg City’s public/private partnership initiative. Global African Power and the City of Johannesburg Municipal Metropolitan retain their interests in Kelvin Power (Pty) Ltd.
The Kelvin power plant in South Africa has been operating at less than 25% of its design capacity of 600 megawatt. CDC Globeleq will complete the US$25 million investment being made to refurbish the plant, significantly improving its environmental performance and enhancing the supply of low price electricity to the 270,000 customers of City Power Johannesburg.
"Kelvin is the first stage of CDC Globeleq’s strategy to become a significant power producer in the region. Opportunities for other acquisitions and expansion in the region will be sought out and considered as part of CDC Globeleq’s regional strategy" said Grier.
CDC Globeleq, 100% owned by risk capital investor CDC Group plc, was established in early 2002 as a commercial power business for emerging markets. Since its creation, CDC Globeleq has announced acquisitions of four power companies in South Africa, Tanzania and Bangladesh, with a total 1,520MW of electricity generating capacity. Through these transactions, CDC Globeleq is establishing itself as a leading power business in the emerging markets. CDC Globeleq expects to be announcing further transactions over the coming months.
NOTES TO EDITORS
CDC Globeleq
CDC Globeleq is becoming a leading emerging markets power business, creating value for its shareholder and co-investors; serving the power needs of people and industry in the emerging markets; and helping to solve a critical constraint to economic development.
CDC Globeleq is actively engaged in acquiring and operating generation assets which are in or close to production. It will also invest in a wider range of projects, including greenfield developments and will work in partnership with relevant Government authorities to develop strategies for efficient ways of bringing badly needed power to consumers.
CDC Globeleq currently holds investments in 22 power assets in 16 developing countries, with a total generating capacity of 1790 MW, based on equity share.
Over the past several months, CDC Globeleq has emerged as an active international power business in the developing world. Last year, CDC Globeleq acquired several assets in South America, including a 24% interest in Edegel S.A., the largest power generation company in Peru with almost 1 GW in hydro capacity. The professional staff of CDC Globeleq more than tripled in size during 2002, a period of significant downsizing for most international power companies. CDC Globeleq is vigorously pursuing new investments in South Asia, Central America and South America, when virtually all other international power companies are seeking to exit those markets. In addition to making further acquisitions in emerging markets, CDC Globeleq will work to mobilise third party capital at the project, regional and global level.
CDC Globeleq is led by an experienced management team. Its Chief Executive Officer is Bob Hart, who has spent the last twenty-five years investing in, developing and operating power projects in emerging markets. From 1994 to 1999 Mr Hart was President and CEO of Coastal Power Company in Houston.
CDC Globeleq is wholly-owned by CDC Group plc, formerly the Commonwealth Development Corporation. CDC is owned 100% by the UK Government through its Department for International Development.
Further details on Kelvin
The Kelvin power plant in South Africa has been operating at less than 25% of its design capacity. The programme now under way involves the installation of bag filters to reduce dust emissions to within World Bank environmental standards and the refurbishment of the generating plant to restore its capacity to close to its designed capacity of 600 MW and allow it to compete effectively to meet around one-third of Johannesburg’s electricity demand.
