42 MW plant marks major milestone for TAQA Arabia's power-generation business while securing vital energy source for state-of-the-art Sudanese cement plant
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, company officials announced today.
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 kilometers west of Fahalb on the west bank of the River Nile. The new venture will be in operation next month.
“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. We will continue to look for attractive regional investment opportunities going forward. I would like to extend special thanks and appreciation to the Sudanese government for its assistance.”
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 TAQA Arabia’s power arm, added, “Fifty-one percent 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% 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 US$ 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 TAQA Arabia 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.
Citadel Capital is the leading private equity firm focusing on building regional platform investments throughout the Middle East and Africa in selected industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 18 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has generated more than US$ 2.4 billion in cash returns to co-investors and shareholders, more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2004-2009, as ranked by Private Equity International). For more information, visit www.citadelcapital.com.
TAQA Arabia is a full-service energy solutions group operating in six countries in the region, with activities ranging from energy distribution, engineering and contracting to operation and maintenance. With 22 companies and 3400 employees TAQA Arabia is delivering quality services via three distinct operating arms; the storage and marketing of fuel products, power generation and transmission and gas distribution and transmission.. TAQA Arabia now has operations in Egypt, Libya, Qatar, the United Arab Emirates, Syria Jordan and Sudan.
ASEC Cement is Citadel Capital’s platform investment for cement production in the emerging cement markets of the Middle East and Africa. Created by Citadel Capital and a group of leading co-investors, ASEC Cement is growing into a leading regional cement production group that will have a combined production capacity of approximately 12 million tons per annum in 2012 spanning six countries from Algeria to Iraq-Kurdistan. ASEC Cement is a portfolio company of ASEC Holding.
For more information, please contact:
Ms. Ghada Hammouda
Head of Corporate Communications,
Citadel Capital (S.A.E.)
g...@qalaaholdings.com (click to reveal this email)
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