PETALING JAYA: Serba Dinamik Holdings Bhd will set up and
operate a chlor-alkali plant in Tanzania in partneArship with Junaco (T) Ltd
(JTL).
The energy engineering solutions provider, which has also
adopted an asset ownership model for further growth, said its wholly owned
subsidiary Serba Dinamik International Ltd (SDIL) had inked a joint-venture
(JV) agreement with JTL to develop the chlorine skid mounted chlor-alkali
plant, which has a capacity of 45 tonnes per day, in Mlandizi ward, Kibaha
District’s coast region.
The plant is expected to be developed on 15,787 square
metres of industrial land in the Msufini area, Serba Dinamik said in a filing
with Bursa Malaysia yesterday.
JTL is a leading supplier of water-related solutions
supplying its products and services, mainly water meters, water pumps, water
treatment chemicals, pipes and fittings to water utilities, manufacturers,
re-sellers and non-profit organisations.
The company is also involved in the importation and
installation of firefighting equipment for the Tanzanian market.
SDIL and JTL will, either directly or through affiliates,
form a special-purpose vehicle in Dubai, which will ultimately hold 100%
shareholding in the project.
SDIL will hold a 25% stake in the JV company, to be named
Msufini LLC. Msufini LLC will, in turn, hold a 100% stake in Msufini Chlor
Tanzania Ltd, which will be the direct owner of the plant.
The JV agreement that was signed last Friday sets out the
understanding with regards to the project pending the execution of the
definitive agreements, which will include the shareholders’ agreement; the
engineering, procurement, construction and commissioning (EPCC) contract; the
operation and maintenance (O&M) agreement; deed of adherence and any other
agreements as may be determined by the parties.
Serba Dinamik will provide structure local content
provision in all aspects and phases of the JV agreement, including
sub-contractors, manpower, raw materials, consumables, housing, fabrication,
and installation.
JTL will, however, have the first right of refusal to
supply or subcontract such works where possible, excluding original equipment,
propriety technology, methodology and installation.
SDIL will be the appointed O&M contractor for a
period of 10 years plus an additional five years. A price agreement structure
will be in place throughout the tenure of the O&M agreement.
On the rationale for the JV agreement, Serba Dinamik said
it would create an opportunity for SDIL to secure the EPCC contract, valued at
US$69.8mil (RM295.4mil).
“Apart from the EPCC contract and as part of the JV
agreement, SDIL will be appointed as the O&M operator... which will enable
SDIL to benefit from a steady income flow in the long term,” it said.
“In addition, as a shareholder of the JV company, SDIL
may also reap benefits in the form of dividends and track record, being its
first foray into Africa.”
Serba Dinamik said the JV agreement is expected to be
completed by the first quarter of next year,
Serba Dinamik first launched its asset-management model
with a compressed natural gas plant in Muaro Jambi, Sumatra, in Indonesia
Source: the Star Malaysia
Photo: Source