The Turkish giant, Bedisa Group, is negotiating to take over 75 percent of Beles Sugar Project, which is located at Amhara Regional State, some 576kms from the capital Addis Ababa, by investing USD one billion. Bedisa will sign an agreement with Ethiopian Sugar Corporation at the end of this year enabling the Group to form a joint venture with Ethiopian government on sugar project.
The Chairperson of Bedisa Group, Binai Boran told The Reporter that he was negotiating with the government to form the joint venture for the last three years. “The negotiations are bearing fruits and we are going to take over 75 percent of Beles I and II,” he noted.
The total value of the two projects are estimated to be around USD 1.4 billion and Bedisa will invest a little over one billion of this amount to secure the JV deal. The Group is planning to finance a portion of the investment project by its own while the remainder of the project cost is expected to be paid for by accessing loans from local and international banks.
According to Boran, the agreement between Bedisa and the Ethiopian Sugar Corporation will be signed at the end of this year and the sugar factories will start crashing sugarcanes at the second quarter of the next year. A total area 50,000 hectare is expected to be covered by sugarcane plantation serving the two sugar crashers. Both the plantation and other water requirements are expected to be supplied by Beles River through a diversion weir built on it.