Citadel Capital Companies Announce Power Generation Joint Venture Inauguration

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Researched by Industrial Info Resources (Sugar Land, Texas)--In a May 24 press release, Middle Eastern private equity company Citadel Capital SAE (Cairo, Egypt) announced that the company's subsidiaries, cement producer ASEC Cement Company (Cairo) and energy solutions group TAQA Arabia (Cairo), have formed a joint venture to inaugurate Berber for Electric Power, a 42-megawatt (MW) power plant in Sudan.

The $67 million power plant has begun contributing to the electricity requirements of Takamol, ASEC Cement's greenfield cement plant, which is 14 kilometers to the west of Fahlab, near the River Nile in Sudan. The cement plant, which has an installed capacity of 1.6 million tons per year, will use the electricity produced by Berber under an offtake agreement spanning 20 years.

TAQA Arabia's power division, Global Energy, owns 51% of the venture, while ASEC Cement holds 25%, and the remaining 24% is owned by the Sudan Pension Fund. According to the release, Global Energy contributed its "technical know-how and management expertise as a licensed company for power generation and distribution" to the project.

"I am very pleased to announce that Global Energy is inaugurating Berber for Electrical Power on time and on budget," said TAQA Arabia Chief Executive Officer Khaled Abubakr in the release. "This is an important component of our regional expansion strategy, and it has been a delight to work with our counterparts at ASEC Cement on this important project. I would like to extend special thanks and appreciation to the Sudanese government for its assistance."

Abubakr also noted that TAQA Arabia has cemented its reputation across several countries in the Middle East and North Africa region through a gas-producing subsidiary. The company currently possesses four gas concessions across 11 governorates in Egypt, as well as other countries such as the United Arab Emirates (UAE), Qatar and Libya, and has a natural gas supply base catering to nearly 750,000 customers.

Meanwhile, Dr. Magdy Saleh, the managing director of Global Energy, observed that the company engineers would continue to be responsible for the operation and maintenance of the heavy fuel oil-fired facility. According to Saleh, Global Energy would continue to scout for promising regional investment opportunities.

CEO Giorgio Bodo of ASEC Cement said in the release: "Our now-operating clinker line is powered by Berber, and we look forward to bringing the entire plant on stream in June 2010. Locking in our energy supply with a trusted partner such as TAQA Arabia has given us considerable peace of mind, as we have concluded operational testing and begun the commissioning process."

ASEC Cement plans on doubling its cement production capacity to breach 12 million tons per year by the end of 2012, across six countries ranging from Algeria to Iraq's Kurdistan region.

TAQA Arabia involves itself in the distribution of energy, engineering services, contracting, maintenance and operations in 22 countries, including Egypt, Qatar, the UAE, Jordan, Syria, Sudan and Libya.

Meanwhile, Citadel Capital continues to be one of the foremost private equity firms in the Middle East and Africa. Its 19 Opportunity-Specific Funds (OSF's) control "Platform Companies" valued at more than $8.3 billion in nearly 14 nations. The company first ventured into Sudan in 2007, and since has made numerous investments amounting to nearly $750 million in the agriculture and logistics sectors, river transportation facilities, and projects involving the cement and mining industries.

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