Bedisa Group, a Turkish giant established half a century ago, is negotiating to acquire 75 percent of a sugar project in Ethiopia at an outlay of a little over 1 billion USD. The sugar project is Beles Sugar Project, which is found in Amhara State.
The Turkish giant is expected to conclude an agreement with Ethiopian Sugar Corporation at the end of this year. The agreement will let the company to form a joint venture with the Ethiopian Government.
According to Binai Boran, Chairperson of Bedisa Group, the negotiation to form the joint venture took 3 years. “The negotiations are bearing fruits and we are going to take over 75 percent of Beles I and II,” he noted.
Beles I and Beles II are estimated to be worth around 1.4 billion USD. Bedisa Group is expected to invest a little more than 1 billion USD in order to secure the joint venture agreement. The Turkish giant plans to finance part of its investment by its own while it aims at loans from local and international banks for the rest.
The Chairperson has explained the sugar factories are expected to start crashing sugarcanes at the second quarter of the next year. There will be a total of 50,000 hectares of land covered by sugarcane plantation to serve the 2 sugar crashers. Beles River, on the other hand, will be providing water for the plantation and other water requirements by a diversion weir built.
Boran further noted, “We know that the Ethiopia government have challenges to build the sugar factories. They were looking for international partners and that is why we want to form this joint venture”. The Group’s experience in the international market would bring success to the joint venture by targeting export markets, the Chairperson added.
Other than the Beles Project, Bedisa Group intends to reach out to other sectors in Ethiopia.
Source: The Reporter
No comments:
Post a Comment