CAIRO: Private equity firm Citadel Capital inaugurated a power plant in Sudan through its subsidiaries, Taqa Arabia, an energy firm, and Asec Cement.
The opening of the $67 million plant on the west bank of the River Nile will provide energy for Asec’s major cement Takamol plant in Sudan, which produces 1.6 million tons per year, under a 20 year takeoff agreement. The plant will generate a total of 42 megawatts of power.
Taqa Arabia will own 51 percent of the project, while ASEC will take up 25 percent, with the rest under a Sudanese pension fund, Reuters reported.
The plant is said to be the “most technologically advanced cement production in Sudan and will focus on serving significant un-met demand in that nation’s fast-growing cement market,” Citadel Capital said in a statement.
Citadel Capital has $8.3 billion in investments in the Middle East and Africa.
ASECs partnership with Taqa will ensure that the latter’s technical prowess is lent to the project in addition to its management capabilities in power generation and distribution, the firm said.
Taqa Arabia Chief Executive Officer Khaled Abubakr commented in a written statement that this new project “is an important component of our regional expansion strategy.”
Earlier in the month, Reuters reported that Taqa had announced that it would also begin operations in Yemen for a $140 million, 70-megawatt power generation project, further extending the company’s reach and growth.
It was further reported that the company is seeking to invest in three other power generation projects in Kenya, Uganda and Ethiopia, which would be financed by the World Bank and the African Development Bank.
In fact, it was reported that one of the projects will be a “mega project” with a capacity of 750 megawatts and $800 million to $900 million in investments.
In addition to this latest deal, the firm already has a strong presence in MENA countries thanks to its gas division.
Taqa, established in 2006, is already present in Egypt, the United Arab Emirates, Qatar, Libya, Jordan and Syria, and it specializes in gas and electricity distribution as well as the storage and distribution of refined products. Citadel Capital owns around 35 percent of the firm, while 65 percent is in the hands of Saudi and United Arab Emirates investors.
ASEC Cement CEO Giorgio Bodo stated that the joint venture hopes to bring “the entire plant on stream in June 2010.”
He also said that: “locking in our energy supply … has given us considerable peace of mind, as we have concluded operational testing and begun the commissioning process.”
ASEC, of which Citadel Capital controls 30 percent, is set to control 12 million tons of cement per annum by 2013 in six countries spanning from Algeria to Iraq-Kurdistan, according to the statement.
