Brazil’s Odebrecht and Angolan Sonangol inititate sugar and energy investment in Angola

27 August 2009

Luanda, Angola, 27 Aug – Brazilian group Odebrecht announced Wednesday in Luanda the official start of a US$220 million investment, through the Biocom consortium which includes Sonangol, in the production of sugar and energy in Malange, Angola.

The contract for sugar and electricity production in Malange was signed at the start of the week by the chairman of the National Agency for Private Investment (ANIP), Aguinaldo Jaime, and by Rui Gourgel, from the Angolan Bio-energy Company (Biocom).

Gourgel, Biocom’s CEO, said that the investment was estimated at US$220 million and expected annual production during the first phase of 268,000 tons of sugar and 45 megawatts of electricity, from the extraction of ethanol.

Over the next few years, the amount of sugar produced should double, alleviating the consumption needs of the country which annually imports around 400 tonnes.

Biocom is a consortium between Odebrecht (40 percent), Angolan oil company Sonangol and Damer, a private Angolan group.

The consortium was initially aiming for 2012 to get the project up and running and in January announced that it would be speeding up work.

Biocom is the first direct investment by the Brazilian group in Angola in agricultural and energy production.

Odebrecht is also involved in oil exploration in Angola, via its gas and oil division, which recently announced a discovery of oil reserves on the Angolan coast, in an exploration well operated by Maersk Oil (with 50 percent). (macauhub)