Manara Wartsila Power (MWP) will develop, sponsor and invest in independent power projects (IPPs) utilizing Wartsila’s reciprocating engine technology. Manara comprises four regional investment groups, who, together with the 3i Group, have sponsored the Manara Infrastructure Fund (MIF), a private equity fund created to invest in infrastructure and infrastructure-related growth opportunities in Islamic countries.
Among the sectors targeted by MIF include power and water, oil and gas, transportation and telecommunications. Manara’s investment in MWP will later be transferred to MIF. MWP is expected to initially have $200 million in equity, out of which $100 million has already been committed by the two shareholders at inception.
Manara is the majority owner of MWP with an initial equity commitment of $80 million. The equity commitment of Wartsila to the joint venture, through its development and financing arm, Wartsila Development & Financial Services (WDFS), will total $20 million.
MWP will develop and invest in power projects with a capacity of between 50MW and 200MW, and will sell electricity to electric utilities, industrial zones and municipalities. MWP will also seek to partner with strong local sponsors, who can provide valuable local knowledge and complementary development capabilities.
MWP will operate from Bahrain and will initially focus its efforts on Pakistan, Saudi Arabia and the United Arab Emirates. MWP has an extensive project pipeline and expects to deploy the initial $100 million equity in a number of IPPs in advanced stages of development in these countries.
