Serba Dinamik-Junaco JV to Build, Operate in Tanzania

KUALA LUMPUR, Oct 10 (Bernama) -- Serba Dinamik Holdings Bhd’s wholly-owned subsidiary, Serba Dinamik International Ltd (SDIL), has entered into a joint venture agreement (JVA) with Junaco (T) Limited (JTL) to build and operate a 45-metric tonne per day Chlorine Skid Mounted Chlor-Alkali plant in Tanzania. JTL and SDIL would establish a new special purpose vehicle in Dubai which shall ultimately hold 100 per cent shareholding in the project, Serba Dinamik said in a filing to Bursa Malaysia Monday. The JVA sets out the understanding of the project pending the execution of the definitive agreements, which will include the Shareholders’ Agreement; 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 said an industrial land of approximately 15,787 square metres had been identified in Msufini Area, Mlandizi Ward, Kibaha District Coast Region, Tanzania for the project. The JVA would create an opportunity for SDIL to be awarded the EPCC contract, valued approximately at RM295.26 million, it added. Apart from the EPCC contract, as part of the JVA, SDIL would also be appointed as the operation and maintenance (O&M) operator under the O&M Agreement for 10 years, plus additional five years which would enable SDIL to benefit from a steady income flow in the long term. SDIL may also reap benefits in the form of dividends and track record, this being its first foray into Africa, the group said. The JVA is expected to be completed by the first quarter of 2018. -- BERNAMA