Parties to set up SPV based in Dubai that will eventually hold 100 per cent shareholding in the project
Energy engineering solution provider Serba Dinamik Holdings Bhd, through its wholly owned subsidiary Serba Dinamik International Ltd. (SDIL), has entered into a joint-venture agreement with Junaco (T) Ltd (JTL) to set-up and operate a chlor-alkali plant with a capacity of 45 tones per day in the coastal Kibaha district in Tanzania. The plant will be developed on a 15,787 square meters industrial plot, according to a filing by Serba Dinamik with Bursa Malaysia.
Serba and JTL will float a special-purpose vehicle, to be named Msufini LLC, that will be based in Dubai and will eventually hold 100 per cent shareholding in the project. Msufini LLC will, in turn, hold 100 per cent stake in Msufini Chlor Tanzania Ltd. that will own the plant. The joint venture agreement is expected to be complete by early 2018.
Through the JV agreement, Serba is looking at creating opportunity for SDIL to secure the EPCC contract valued at US $ 69.8 milion. Besides the EPCC contract, SDIL will be appointed O&M contractor for a period of 10 years plus an additional five that SDIL says will benefit it from steady income flow in the long term.
JTL is a Tanzania based company specializing in the distribution of water treatment chemicals, basic industrial and agricultural chemicals, all types of water and flow meters, pipes, fittings and valves.