Taqa Arabia, Asec Cement in Sudan powergen JV
Cairo, January 17, 2010
Global Energy, the power arm of Taqa Arabia, has concluded an agreement to create a joint venture power-generation operation in Sudan in partnership with Asec Cement and the Sudanese Pension Fund.
The new venture, Berber for Electrical Power, will have a total installed capacity of 42 megawatts and will provide all the electricity needs for Takamol, Asec Cement’s 1.6 million ton per annum greenfield cement plant in Sudan, under a 20-year offtake agreement. Takamol is located 14 kilometres west of Fahalb on the west bank of the River Nile. The new venture will be in operation next month.
The 42 MW plant marks a major milestone for Taqa Arabia’s power-generation business while securing vital energy source for state-of-the-art Sudanese cement plant.
“This agreement is the first major milestone in Global Energy’s regional expansion drive,” noted Taqa Arabia chief executive officer Khaled Abubakr.
“It comes as part of our regional expansion strategy, which has already seen our gas arm establish a footprint across several countries in the Middle East and North Africa.”
Taqa Arabia is Citadel Capital’s Platform Company for investment in the energy distribution sector across the Middle East and Africa, with a focus on gas and electricity distribution as well as the storage and distribution of refined products.
Dr Magdy Saleh, managing director of TaqaArabia’s power arm, added, “Fifty-one per cent of Berber’s equity will be held by Global Energy, which brings in its technical knowhow and management expertise as a licensed company for power generation and distribution. A further 25 per cent will be held by the Sudanese Pension Fund, while Asec Cement will own the balance.”
Under the terms of the joint venture, Berber will build, own, operate and maintain a heavy-fuel-oil-fired captive power plant, which carries an estimated investment cost of $67 million.
“Conclusion of this joint venture is a vital step for Takamol as we speed toward the start of production this year,” noted Asec Cement CEO Giorgio Bodo. “Locking in our energy supply with a trusted partner such as TaqaArabia will allow us to proceed with final kit-out at the site and as we enter operational testing in the coming weeks.”
Asec Cement, a portfolio company of Asec Holding, is Citadel Capital’s platform investment for a leading regional cement production group that will control 12 million tons of cement per annum by 2013 in six countries spanning from Algeria to Iraq-Kurdistan.
Takamol will be the most technologically advanced cement production plant in Sudan when it comes on-stream in 2010 to supply the needs of that nation’s fast-growing market.-TradeArabia News Service