Dubai firm oils up in South Sudan
Dubai-based Emirates Capital, a European merchant bank has reached an agreement with GPS3 Investments to finance the development of major projects in partnership with the Republic of South Sudan, through a first of its kind strategic development fund.
The fund has been initiated by GPS3 Investments as general partner to the country and is managed by The Emirates Capital.
Edward Abyei Lino Wuor, the chairman of the Oversight Committee and of SPLM Abyei together with Dr Gilles Assouline, the president & CEO of GPS3 Investments handed a letter from the Ministry of Finance and Economic Planning to Erik Essiger, the chairman and CEO of The Emirates Capital confirming the agreement given to GPS3 Investments to leverage on the proceeds from a long term oil allocation worth $25 billion in the aggregate over the period and use it as seed investment in the fund.
Emirates Capital said along with partners it will raise the remaining $30 billion from the international community in the form of direct investment in order to finance the five-year development plan for the first phase of the projects which is estimated to cost $55 billion.
This plan has been designed by GPS3 Investment to be implemented in partnership with / and active support of the Republic of South Sudan and the Abyei Administrative Area, said the merchant bank being regulated by the Dubai Financial Services Authority (DFSA).
It includes the creation of a Hub for Africa and relies on a multiple strategies umbrella development fund with sub-funds for Infrastructure (airports and free zone, roads, bridges, rail, pipelines, housing, hospitals and schools), Agriculture, Energy (Oil & Gas, refineries, solar and hydro power plants and grid), and Mining (Copper, iron ore, Nickel and Gold). South Sudan is rich in several natural resources.
Emirates Capital said this supreme development program will help create significant jobs, knowledge transfer, economic growth and wealth for the country and the future generations.
As a DFSA-regulated institution, Emirates Capital will make sure that the fund meets all international standards for a fully transparent and corruption free management.
Mosaf Al Otaibi, a wealth fund manager, acted as a catalyst by bringing all parties together, with the active contribution of George Edde and Gérard Caro, the co-founders of GPS3 Investments, Steen Vedel- Jorgensen from Denmark and TransSadara (Saudi Arabia) presided by Nile D. Al-Rushaid as advisors.
“This project demonstrates an unparalleled example for co-operation between Europe, US, Africa and the Middle East that will soon benefit the people of South Sudan,” said Kosti Manibe, the minister of finance and economic planning of South Sudan.