Bahrain inks Australia livestock import deal

Bahrain's position as a key destination for livestock export trade has been further boosted with the signing of an agreement with Australia.

The MoU will also further improve animal welfare and includes guidelines for the offloading of Australian animals arriving in the Middle East.

Welfare The agreement was signed by Municipalities and Agriculture Minister Dr Juma Al Ka'abi and Australian Minister for Agriculture, Fisheries and Forestry Tony Burke at the Food and Agriculture Organisation (FAO) World Food Summit in Rome.

'The Kevin Rudd government is committed to working with international partners to continuously improve the welfare standards of the animals in the live export trade,' Burke said in a statement.

'The welfare of animals extends past their destination port to their post arrival and handling and improving these standards is key to our live animal export trade.' Bahrain is Australia's third largest livestock market in the Middle East and is valued in Australia at Australian $65.5 million (BD22.8 million) in 2008-2009.

Australia has signed similar MoUs with the UAE, Kuwait, Saudi Arabia, Qatar, Jordan, Egypt, Libya and Eritrea.

Bahrain Livestock Company (BLC) chairman Ebrahim Zainal welcomed the agreement.

'The business community always welcomes bilateral agreements because they pave the way for more business and smooth relations,' he told our sister newspaper Gulf Daily News.

'As the main company handling livestock in Bahrain, we welcome this and we think it will help trade between the two countries.' Meat and Livestock Australia (MLA) exports manager for Middle East and Asia Michael Finucan told the GDN that the MoU was a means of securing animal welfare and was a support to the export industry.

'The MoU demonstrates the strong relationship between the two countries and on the ground will help the export industry,' he said.

'It is signed to make sure there is an agreement in place and it will strengthen general practice.' However, Finucan said the MoU was unlikely to make a noticeable difference to services on the ground because animal welfare was already a priority.

More than 99 per cent of animals imported into Bahrain from Australia arrived fit and healthy, he added.

'At MLA, we are doing animal welfare practices. In the abattoir, we make sure the infrastructure is right, and that at the ports the discharge ramps that help animals move from the ship to the trucks are in good condition,' he said.

'When trucks come in, we make sure they are in good repair so there are no slippery surfaces and the ramp is good.' Finucan explained that MLA had successfully conducted a year-long animal welfare programme in Bahrain, starting last Eid Al Adha, to ensure live animals were transported in utility vehicles and not in car boots.

'It's been a 100 per cent success and people are turning up with the right transport, such as a utility truck,' he said.

The campaign has proved so successful that it is now being followed in Qatar, added Finucan.

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Qatar, Siam Cement sign $4bn petchem deal

Thailand's largest industrial conglomerate said on Wednesday it had signed a deal with state oil firm Qatar Petroleum International to invest in a Vietnam petrochemical complex worth up to $4 billion.

The project, delayed by the global economic crisis, is part of Siam Cement's drive to become one of Southeast Asia's leading petrochemical producers.

President Kan Trakulhoon said cost of the project could be reduced from a previous estimate of about $3.5-4.0 billion because the economic situation had changed.

'It is likely that it should be reduced,' Kan told reporters on the sidelines of a seminar.

The global economic recovery would also make it easier for Siam Cement and its partners to secure financing, Kan said.

This week, Prime Minister Abhisit Vejjajiva was in Qatar to tighten relations between the two countries and witness the signing ceremony of the deal.

Vietnam state oil monopoly Petrovietnam and Vietnam National Chemical Corp would hold a combined 29 per cent of the project. The rest would be held by non-Vietnamese partners including Siam Cement and Qatar Petroleum.

Kan said it was likely that Siam Cement and Qatar Petroleum would hold 25 per cent each, while Siam Cement subsidiary Thai Plastic and Chemicals would own 16 per cent and a Japanese trading firm would hold 5 per cent.

Qatar Petroleum would provide feedstock for the complex, which includes a 1.4 million tonnes olefins cracker that is highly flexible between gas and naphtha feedstock and will be fully-integrated into downstream products, a Siam statement said.

The investment would also cover infrastructure such as shipping ports, a power plant and storage facilities, it said.

Further details would be released in mid-2010, it added.

The company was in the process of accessing financing for the complex in the southern province of Ba Rai Vung Tao, near a third refinery in Vietnam.

In March, Siam Cement said the project would be delayed for at least two years because the global financial crisis had made it difficult for the company and its partner, Petrovietnam, to finance the project.

Apart from the petrochemical complex in Vietnam, Siam Cement also delayed two cement projects in Indonesia and Cambodia. The first part of the project had been expected to be completed in 2011 and the second in 2013.

On Wednesday, Siam Cement shares closed up 2.8 per cent at 218 baht, in line with a 2.9 per cent rise of the overall market.

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OIC venture wins $1bn water and power project

Oman Investment Corporation (OIC) announced that its JV with Sembcorp Utilities of Singapore has signed a 15-year contract to supply power and water to the state-owned Oman Power and Water Procurement Company.

The joint venture company, Sembcorp Salalah Power & Water Company, will be investing approximately $1 billion to develop, build, own and operate the Salalah Independent Water and Power Plant (Salalah IWPP) in Oman.

Sembcorp Salalah Power & Water Company is 60 per cent owned by Sembcorp, a wholly owned subsidiary of Sembcorp Industries and 40 per cent owned by OIC, whose shareholders are Gulf Investment Corporation, National Investment Funds Company, State General Reserve Fund of the Sultanate of Oman and Bank Muscat.

The project award to the OIC and Sembcorp consortium follows a competitive bidding process which involved other global utilities companies.

Targeted to begin full commercial operations in the first half of 2012, the Salalah IWPP will consist of a gas-fired power plant which will have a net capacity of 445 megawatts and a seawater desalination plant which will employ reverse osmosis technology to produce 15 million imperial gallons per day of water.

Set to be the largest and most energy-efficient power and water plant in the Governorate of Dhofar in Southern Oman, the entire electricity and water output from the facility will be sold under the 15-year power and water purchase agreement.

The new facility will increase the power capacity in the Dhofar region from 321 megawatts to 766 megawatts, where demand is expected to double over the next six years.

Given the power and water demand growth in the region, the plant is expected to continue providing power and water beyond this initial term of 15 years.

In addition, the facility will be operated and maintained by a joint venture company, Sembcorp Salalah O&M Company, which is 70 per cent owned by Sembcorp and 30 per cent by OIC, under a long-term O&M contract for the entire term of the power and water purchase agreement.

Sepco III Electric Power Construction Corporation (Sepco III) of China is the engineering, procurement and construction contractor under a fixed-price, date-certain turnkey contract and Hydrochem, a wholly-owned subsidiary of Hyflux, is the sub-contractor for the seawater desalination plant.

“This project will be creating business opportunities for the local contractors, via sub-contracts as well new employment opportunities during the construction phase and the long term operation and maintenance phase,” stated Kalat G Al Bulooshi, OIC chief.

“The award of the Salalah IWPP project is a major milestone for OIC. This investment is in line with our strategy to grow, diversify our portfolio and to invest in the infrastructure sector in Oman which is projected to have strong growth given the government plans for building new power plants in the country. This investment will provide our shareholders with stable and recurring income.”

The project cost of approximately $1 billion will be 75 per cent funded through 17-year non-recourse project finance loans, and 25 per cent by shareholder loans. The non-recourse project finance loans will be provided by Standard Chartered Bank (also the Financial Advisor), Bank of China, China Development Bank, BankMuscat, KfW, Sumitomo Mitsui Banking Corporation, National Bank of Oman and Bank Sohar.

The loans will be in US dollars, except for those from BankMuscat, National Bank of Oman and Bank Sohar, which will be in Omani Rials. Bank Dhofar and Oman International Bank provided equity bridge finance to OIC.

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Work on world's longest sea crossing to begin in 2010

Work on the proposed Qatar-Bahrain causeway project, tipped to be the world's longest sea crossing, is likely to begin in the first quarter of 2010, a source familiar with the developments told reporters Sunday.

"The consortium of six contractors which includes Vinci from France is negotiating with the management of the Qatar-Bahrain causeway for the final design and cost. It has to be accepted by the board of directors of the Qatar-Bahrain Causeway Foundation before the project can start," William Nevel, Public Affairs Manager for Qatar-Bahrain Causeway Management, Kellogg, Brown & Root International (KBR), said.

He declined to provide an estimated cost for the project. "The cost of the Qatar-Bahrain causeway will be shared by the two countries," Nevel said.

Media reports previously estimated the cost of the two-nation causeway at $2.7 billion (Dh9.9 billion). According to one report, Qatar and Bahrain will contribute $700 million, and the remaining $2 billion will be provided through loans to be taken by the Qatar-Bahrain Causeway Foundation.

The proposed 40-kilometre causeway will be designed to carry passengers and freight by road and rail between Qatar and Bahrain.

The roadway will consist two traffic lanes and an emergency lane in each direction. The rail track will provide two sets of track for freight and high-speed passenger trains.

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Thai PM to stress Qatar’s value to Asean nations

Thai Prime Minister Abhisit Vejjajiva (pictured) will stress on the strategic partnership between Thailand and Qatar and its significance to the Association of South East Asian Nations (ASEAN), China, Japan, Korea and the GCC region during his dinner speech at Four Seasons Hotel on Wednesday.

The Prime Minister would elaborate in his speech the potential partnership on food security, Halal and agro industry, medical tourism, construction and financial products in compliance with Shariah law at the business gathering.

Vejjajiva will be on a three-day state visit to Qatar starting on November 24. The visit is both his first and for a highest Thai government official since the establishment of diplomatic ties between the two countries in August 7, 1980.

The speech is significant since being the recent chairman of ASEAN, Vejjajiva has presented his vision on the recovery measures from the world recession during G20 and Apec summits. He said that more could be done to stimulate and seize the early momentum of sustainable world recovery from the recent economic downturn.

The business meeting is co-organised with Qatar Chamber of Commerce and Industry as part of the major itineraries during his visit.

A Memorandum of Understanding to establish a Joint Business Council is set to be signed once the Thai prime minister holds discussions with his Qatari counterpart H E Sheikh Hamad bin Jassem bin Jabor Al Thani.

Prior to the dinner, the Thai PM would also witness the signing of legal framework agreement between Siam Cement Group (SCG) of Thailand and Qatar Petroleum International for a joint LPG venture in Vietnam.

Members of Qatari Businessmen Association will call on Vejjajiva together with his economic ministers and presidents of Thai private sector associations.

Exchange of visits of the Thai-Qatar business community would be scheduled with the launch of the Joint Business Council activities.

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