Taqa Arabia has agreed to form a US$67m joint venture with ASEC Cement, both subsidiaries of Cairo-based Citadel Capital , to generate power for a cement plant in Sudan, Citadel said in a statement.
The Berber for Electrical Power venture, announced on Sunday, will have a capacity of 42 megawatts and supply a 1.6Mta greenfield cement plant near Fahalb.
The cement plant is a subsidiary of ASEC Cement, itself a subsidiary of private equity firm Citadel Capital.
"This agreement is the first major milestone in Global Energy’s regional expansion drive," Khaled Abubakr Taqa Arabia Chief executive officer said in the statement. Global Energy is Taqa’s power arm.
The new venture, which will begin generating power next month, will be owned 51 percent by Taqa Arabia, 25 per cent by the Sudanese Pension Fund and 24 percent by ASEC Cement.
"We will continue to look for attractive regional investment opportunities going forward," Abubakr added.
The cement plant, named Takamol, will come on stream later this year, ASEC Cement Chief Executive Officer Giorgio Bodo said in the statement.