ESPAÑA: La Junta autoriza a Cosmos a extraer 41 millones de toneladas de caliza en Corullón

La empresa cementera Cosmos tiene desde ayer permiso para extraer las reservas de 41 millones de toneladas de caliza de en su cantera de Corullón durante los próximos 30 años. Así lo establece la autorización que ha obtenido de la Junta de Castilla y León para ampliar la explotación Cosmos I Val de la Cal hasta las 41 hectáreas y que ayer apareció publicada en el Bolentín Oficial de la comunidad autonómca (Bocyl). La empresa, que podría extraer una media de 1,3 millones de toneladas de árdiso al año, ya sólo espera la licencia municipal que ha solicitado para comenzar a explotar en la nueva zona, según confirmaron ayer fuentes de Cosmos.

La resolución del Servicio Territorial de Industria, Comercio y Turismo de León garantiza de esta forma la continuidad de la fabricación de cemento en la planta de Cosmos en Toral de los Vados, después de que la empresa haya visto como el Tribunal Superior de Justicia de Castilla y León frenaba sus planes para rentabilizar las instalaciones incinerando residuos.

Comos ya obtuvo una declaración de impacto ambiental favorable para la ampliación de la cantera el pasado año, aunque contó con las alegaciones en contra del Ayuntamiento de Corullón y de colectivos ecologistas. Cosmos debe cumplir ahora las medidas correctoras incluidas en la declaración de impacto ambiental como son la protección del yacimiento arqueológico de El Castro, que se encuentra dentro de la concesión, pero fuera de la cantera y la señalización de posibles explotaciones mineras de la época romana.

La empresa de la multinacional brasileña Vorotantim también deberá realizar una prospección de la zona donde ampliará la cantera para localizar nidos de aves, lugares de cría o puesta de las especies catalogadas como vulnerables, así como respetar la disponibilidad de agua para especies cinegéticas y crear si fuera necesario nuevos puntos de abastecimiento, ya sean balsas o beederos.

Cosmos confirmó ayer que comenzará a extraer caliza de la nueva zona en cuanto reciba el visto bueno del Ayuntamiento de Corullón, último trámite pendiente.

ALGERIA: Clash of the cement giants

A clash of the giants is imminent between PPC Ltd and Nigeria’s Dangote in the cement industry in SA, as the new player gears up to challenge PPC Ltd in both the local and the rest of Africa’s cement trade.

Yesterday, PPC Ltd announced that it would gain a 49% stake in the Hodna Cement Company pla-cing its foot firm on the door of the cement industry in Algeria.

The company plans to construct a $350m plant in the country in a deal which will be funded on a project finance basis.

According to PPC Ltd’s announcement, 80% of the debt funding of this deal will be obtained from local Algerian banks.

This was another step in realising the company’s ambitions to be a significant player in emerging markets throughout Africa. However, Dangote Cement, through its subsidiary, Sephaku Cement, also has plans to open its 3m ton per year integrated cement plant at Aganang, North West province in early 2014, said Global Cement in a statement.

According to figures from Global Cement, “it will be the first time the Nigerian cement giant will be producing cement in the same country as its competitor in sub-Saharan Africa. The encounter will set the tone for the producers’ next clash when they both open cement plants in Ethiopia in 2015,” said the organisation.

PPC Ltd has a strong presence in Botswana, Zimbabwe and Mozambique. Both companies are looking to make inroads into Ethiopia, the DRC and Rwanda as cement plants are being rapidly constructed in these areas.

Azola Lowan, an executive for strategy and investor relations at PPC Ltd said the goal was to increase emerging market contribution towards revenue to 40% by 2017. That target would be achievable by becoming the leading player in emerging markets. Currently, the rest of Africa contributed 24% towards revenue at PPC Ltd, explained Lowan.

“Our Rest of Africa Strategy is on track to achieve our initial target to grow revenue outside of SA from 20-40%. We have increased our stake to 30% in Habesha Cement, in Ethiopia and acquired a 51% stake in CIMERWA, in Rwanda. We also have over R2bn invested in operating efficiencies and our 2013 cash flow generated from operations increased by 26%.”

Jean Pierre Verster an equity analyst at 36ONE Asset Management said the key to Dangote’s successful entry into SA would be its strategy on pricing which comes down to how much the company would cut their cement selling prices below those of competitors to entice buyers. Dangote owns 64% of Sephaku Cement, which has recently started cement production at their new Delmas plant and will bring their second plant online in the second quarter of this year, said Verster.

“With Dangote Cement coming south, PPC is going north and doing what comes naturally when a company’s core market is under pressure – look for new markets. There are very few other producers in the rest of Africa and PPC is an established player with over 100 years of experience in the industry. Locally, Sephaku is a new entrant, with their Aganang plant only starting to generate revenue later this year, so their initial pricing strategy is critical in securing a slice of the market,” he said.

LIBYA: Subsea Cranes, Cement Unloader Orders

Cargotec's MacGregor has secured a new IHC Merwede order for subsea cranes, and in Libya Cargotec is to supply a Turkish company with a mobile cement unloader to work ports along the coast.

Subsea crane order

MacGregor, part of Cargotec, has won an order worth around EUR 23 million for six active heave-compensated (AHC) subsea cranes from the Dutch IHC Merwede. The cranes will be installed on three pipe-laying ships destined for the UK headquartered global offshore specialist, Subsea 7. Delivery of the cranes is scheduled between June and December 2015. 


The new series builds on others under construction at the IHC Merwede yard for Subsea 7, including the 146m vessel, Seven Waves, which will also be fitted with a MacGregor subsea crane and is scheduled for delivery this year. 
 
The latest vessels, hulls 731, 733 and 735, will each be fitted with one 100-tonne SWL and one 25-tonne MacGregor AHC subsea cranes, designed to operate at depths of 3,500m and 3,000m respectively. 

Mobile cement unloader for Libya

A Turkish construction services company, Mussa Insaat Dis Ticaret Ltd of Istanbul, placed an order with Cargotec for a standard road-mobile Siwertell 10 000 S cement unloader. The trailer based, diesel powered unit will have a rated discharge capacity of 300t/h and is scheduled for delivery in mid-May 2014.

"While the unloader's primary location will be in the western part of Libya, our customer is planning to use it for cement unloading operations at several sites along the Libyan coast," said Jörgen Ojeda, Sales Director for Siwertell mobile unloaders. "This demonstrates the significant commercial and operational advantages of our road mobile systems. It is easy to move them from one port to another and, once at the new location, one man can have the unloader ready for operation within an hour."

The new unloader will be equipped with a double bellows system and dust filter, which deliver consistently high levels of efficiency and environmental protection.

HONDURAS: Congelan el precio de bolsa de cemento por 30 días más en Honduras

El Gobierno de Honduras y las cementeras acordaron que el precio del producto se mantendrá en L160 hasta el próximo 11 de marzo. Después viene aumento progresivo

Mediante previo acuerdo con las empresas cementeras del país, el Gobierno resolvió ayer prorrogar el congelamiento del precio a la bolsa de cemento en L160 por un lapso de 30 días más.

El 11 de enero pasado el Poder Ejecutivo dio un plazo de un mes para mantener el costo, debido a las fuertes alzas unilaterales aplicadas a este producto de la construcción por las cementeras y los ferreteros.

“Se va a prolongar por un mes más el precio del cemento en L160 y durante ese período de 30 días vamos a mantener un diálogo permanente con la empresa Argos, con el fin de profundizar en su estructura de precios”, dijo Alden Rivera, ministro de Inversiones.

En este sentido, indicó que esa cementera pretendía un aumento de L15 más a la bolsa de cemento, por lo que se hizo un acuerdo en el marco de la figura de “progresividad”, para no elevar el valor de forma drástica.

“Le garantizamos al consumidor que no habrá un cambio abrupto de precios de L160 a L175. La progresividad va a ser asumida por la empresa, que en un acto de solidaridad y responsabilidad ha tomado en consideración de no aplicar de una sola vez el precio sino de acompañar al Gobierno para que no afecte de una manera drástica las economías de las familias”, explicó Rivera.

Causas

La decisión de definir un techo de precio a la bolsa de cemento fue producto de una resolución emitida por la Comisión para la Defensa y Promoción de la Competencia (CDPC) que estableció la existencia de oligopolios en el rubro del cemento, refirió el funcionario.

“Pero es de mutuo acuerdo con ambas empresas extender conversaciones y llegar a una conclusión que sea de mutuo acuerdo para el país, ya que no podemos darle seguimiento perpetuo a esta condición de congelamiento al precio del cemento”, agregó el ministro.

Dentro de ese contexto, aseguró que este sería el último congelamiento de precios a este producto y que durante este tiempo se harán los análisis necesarios para definir el nuevo valor de este producto.

“Este es el último congelamiento que vamos hacer. Durante este período de congelamiento vamos a hacer los análisis necesarios”, manifestó.

Reducción de inversiones

Tras conocerse la decisión oficial, Alejandro Álvarez, presidente de la Cámara Hondureña de la Industria de la Construcción (Chico), opinó que los congelamientos de precios provocan a largo plazo una reducción de las inversiones en el país.

“Como Cámara siempre apoyamos la posición del Consejo Hondureño de la Empresa Privada (Cohep) en que los congelamientos de precios a largo plazo lo que traen es reducción de las inversiones futuras y no va a poder suplir las demandas futuras”, indicó Álvarez.

Según el empresario, en este momento las dos cementeras tienen la capacidad para enfrentar la demanda del producto durante 10 a 15 años.

“Eso significa que si no mantenemos una actitud sabia e inteligente en cuanto a congelamiento de precios y entrar a negociar Gobierno, consumidores, Cámara de la Construcción y las cementeras podemos alcanzar elementos como hasta ahora, tener el precio más bajo de Centroamérica”, exteriorizó.

Con la nueva disposición, reconoció que existe un oligopolio en el caso de las cementeras y otros productos, por lo que consideró que es mejor que el Gobierno utilice ese mecanismo de la concertación de precios.

“Es una burla”

Jacobo Bertrand, presidente del Colegio de Arquitectos de Honduras (CAH), catalogó como una burla el tiempo de prórroga del congelamiento al precio del cemento.

“La verdad que creo que es una burla porque solo es un mes, es muy poco tiempo, no lo veo positivo, es una burla para la población”, apuntó.

Ante esa situación, indicó que después del mes de suspensión a aumentos de precios, habrá de nuevo recesión en la actividad de la construcción.

“Volveremos a caer a una recesión en la actividad, porque vendrá a encarecer la construcción de viviendas en todos los sentidos. La gente no podrá tener fácil acceso a una vivienda”, concluyó Bertrand.

ALGERIA: PPC has ‘advanced plans’ in place to enter Algerian cement market

CEMENT company PPC said on Monday that "advanced plans" were in place for it to enter the Algerian cement market through a partnership that would see it own 49% of Hodna Cement Company.

The company is already on an African expansion drive, with cement plants being constructed in Ethiopia, Rwanda and the Democratic Republic of Congo.

CEO Ketso Gordhan said the Algerian partnership, with a consortium of private-sector investors who would own the remaining stake in Hodna "gives us confidence that by 2017, 40% of PPC revenue will be earned outside of South Africa".

The company currently derives about 22% of its sales from Africa, outside of South Africa.

The company said its partners in Algeria "have experience in construction and related sectors, and fulfil one of PPC’s key requirements — to partner with local shareholders when investing in a new country".

Hodna will be constructing a 2-million-ton-a-year plant for $350m in the Hodna area, about 300km east of Algiers and close to the university and technology-focused town of Setif.

PPC will acquire a 49% stake of Hodna and assume management control — which allows for the consolidation of the financial results of this project into the PPC group accounts.

The transaction would be funded on a project finance basis, with 80% debt funding from local Algerian banks, PPC said.

"The Algerian cement market is very attractive as consumption exceeds local production by approximately 3-million tons of cement per annum.

"Moreover the Algerian government has committed itself to large-scale capital spending programmes, including the $6bn New City Hassi Messaoud project, which will see the roll-out of thousands of housing units," Mr Gordhan said.

This would boost cement demand in this country, he added.

PPC said that once the feasibility study had been concluded, construction of the plant would take up to 30 months, and commissioning was anticipated by the fourth quarter of 2016.

As with its other expansion projects, PPC said it intended using China’s Sinoma International Engineering as the contractor to supply and build the plant, with support from India’s Holtec Consulting.

Cement selling prices in Algeria range between $80 and $120 a ton, with favourable production costs due to affordable gas prices.

"The factory site is well located with the necessary raw materials in close proximity. The well-developed road and rail network also assist in managing the cost of logistics," PPC said.

With a population of close to 40-million people, of which 74% live in urban areas and a "relatively high" gross domestic product per capita of $5,582, Algeria still requires the construction of 225,000 housing units a year to meet demand, PPC said.

"The national housing shortage in Algeria is estimated at 1.2-million units."

TURKEY: IFC is providing a debt facility to Turkey’s major cement firms

IFC, a member of the World Bank Group, is providing a long-term financing package to Cimko, one of Turkey’s major cement firms and a joint venture between Sanko Group in Turkey and Italy’s Cementerie Aldo Barbetti SPA, to invest in the ready mix concrete (RMC) segment and in energy efficiency.´

 

The debt facility includes a $40 million loan for IFC’s own account and a syndicated loan of €18 million from BNP Paribas Fortis SA/NV mobilized by IFC. 

The project is expected to strengthen Cimko’s competitiveness and increase employment in the Southeast Anatolia region of Turkey, where Cimko is based. The deal will give the company sizeable energy savings and reduce its greenhouse gas emissions. 

Cimko will be able to supply more top-quality cement to the domestic market and export more to the MENA region, where cement demands are growing due to major infrastructure and housing investments. 

“Sanko Holding’s partnership with IFC goes back to 1989,” said Sanko Holding Chairman Abdulkadir Konukoglu. “We value our relationship with IFC and see IFC as a long term partner. In addition to financial support, IFC’s deep industry expertise contributed a lot to Cimko’s success.” 

IFC’s guidance on installation of energy-efficient, environmentally and socially friendly processes will also contribute to the company’s sustainable development programs. 

“Cement is critical for the construction sector, the world’s largest industry, and a shortage of supply could hinder the industry’s growth. This project will help Cimko increase its productivity efficiently,” said Guy Ellena, IFC Director for Manufacturing, Agribusiness, and Services in Europe, the Middle East, and North Africa. “We are looking forward to cooperate further with our long-term client Sanko.” IFC has been investing in Turkey’s private sector for nearly 50 years. In the 2013 fiscal year, IFC delivered a record $985 million in 20 projects supporting exports, smaller businesses, renewable energy, and the healthcare, education, and infrastructure sectors.

PERU: CEMENTERA CHILENA BÍO BÍO SE RETIRARÍA DEL PERÚ AL NO CONSEGUIR FINANCIAMIENTO

Tal parece que el próximo lunes 27 de enero no solo habrá noticia por el tema del fallo de La Haya. Para ese mismo día se ha convocado a una junta de accionistas de Cementos Portland S.A., controlada por el gigante brasileño Votorantim y la cementera chilena Bío Bío, en la que se anunciaría la disolución de esta alianza empresarial que se constituyó en 2011 con el propósito de construir una planta de US$160 millones en Manchay (Lima).

De acuerdo a la convocatoria publicada en dos diarios, el gigante brasileño Votorantim y la cementera chilena Bío Bío se retirarían del proyecto de Cementos Portland en Manchay al no haberse conseguido el financiamiento bancario para la construcción de la fábrica de cemento.

Ese día también encargarán “a los auditores externos de la sociedad que procedan a determinar los montos de los aportes efectuados por los accionistas que no se hubiesen invertido, gastado o comprometido al 30 de noviembre de 2013, fecha en la cual venció el plazo para obtener el financiamiento del proyecto”. De acuerdo al ‘pacto de accionistas’, el compromiso de las partes, especialmente de Votorantim Cimentos y Cementos Bío Bío, era conseguir un crédito de 90 millones 601 mil 824 dólares.

Ante este incumplimiento, se procederá a la reducción de capital de las dos compañías extranjeras en la proporción del dinero no utilizado en el proyecto, convirtiéndose lo que ya fue usado en acciones representativas del capital de Cementos Portland, teniendo Inversiones Portland y la española World Cement Group la opción de comprarlas dos años después de cerrada esta obligación; en consecuencia, Votorantim y Bío Bío están obligados a vender de manera forzosa estas acciones.

Asimismo, según fuentes informadas, se reducirá el capital de Cementos Portland, con lo cual el protagonista del proyecto, la peruana Inversiones Portland, recuperará la mayoría y el control de las acciones.

En la actualidad, Cementos Bío Bío, Votorantim Cimentos y World Cement Group han hecho aportes a la sociedad, los mismos que no han sido utilizados. Estas compañías tienen derecho a la restitución de estos aportes, para ello el auditor externo de Cementos Portland (Pricewaterhouse Coopers) tendrá que informar a los socios sobre los montos que se están hablando. Evidentemente esta operación supone para Inversiones Portland retomar el control de Cementos Portland.

En 2013, la demanda en el cemento creció por más de 7% con respecto al año anterior. Será interesante ver cómo este nuevo acontecimiento afectará el mercado del cemento, ya que varias multinacionales del cemento han manifestado últimamente su interés en ingresar al Perú.

EL DATO

En la nueva composición accionaria, Votorantim Cimentos y Cementos Bío Bío pierden el control de la junta de accionistas, del directorio y de la gerencia.

Participación accionaria de la empresa Cementos Portland SA:

Votorantim Cimentos: 29.5% (Brasil)

Cementos Bío Bío SA: 29.5% (Chile)

Inversiones Portland SA: 20.5% (Perú)

World Cement Group SL: 20.5% (España)

JAMAICA: Carib Cement - Says Cement Is Better Than Asphalt

The Caribbean Cement Company Limited is seeking to improve take-up of cement for use in the construction of roads, with plans to double sales in this market this year.

While revenue earned to date, J$17 million, is relatively small from a limited number of projects done, Anthony Haynes, managing director of Carib Cement, said that with cement roads lasting twice as long as asphalt surfaces, project managers and the Government may soon see the advantage of switching to the sturdier material.

Demand is also increasing from private companies Haynes said. "The cement-based roads, which are more durable and have a substantially lower life-cycle cost, are being implemented at various companies' roadway entrances and parking lots in place of asphalt surfaces so as to lower maintenance costs."

Haynes, in response to Sunday Business queries, said that since 2011, approximately 1,845 metres of concrete pavement have been constructed locally. This translates to approximately J$17 million of cement at today's value. Some projects have also been done in the Eastern Caribbean and Carib Cement is also targeting improved sales in that region.

"We do not have the exact data for all the cement used in road construction in countries we export to. However, we are aware of several concrete roads that have been done in St Lucia, St Kitts and Belize," Haynes said.

He admitted that, generally, the cost of a concrete pavement when compared to an equivalent asphaltic surface can be approximately 10 per cent higher. "However, the life-cycle cost of concrete pavements over 20 years is significantly less than the life-cycle cost of an asphaltic pavement - as much as 200 per cent less," he said.

Haynes is projecting a doubling of revenue for the current year from the construction of roads."We would want to increase this business to a minimum of 2,000 metres of concrete roadway per annum. This would translate into an additional J$17 in revenue per annum."

He noted that "Last year, we've had a lot of buy-in from the private sector. For example, the Jamaica Social Investment Fund has installed concrete roads at one of their projects in Flankers, Montego Bay, and they have found it more economical to do so. We've even had cinema owners in Kingston who, instead of using asphalt pavements, are making plans to use concrete."

BENEFITS OF CONCRETE

Carib Cement said the benefits of concrete roadways include resistance to erosion from torrential rains and a longer pavement life, "more than three times that of an asphalt roadway."

In research material provided, Carib Cement said that "concrete roads are also more environmentally friendly. Whereas asphalt roads produce more heat and harmful greenhouse gases, and tend to leach into limestone, cement-based roadways do not. Also, at the end of the concrete road's life cycle, its components can be recycled and used to make aggregate. Concrete roads have a reduced urban heat effect."

It added that "concrete's light-textured nature also allows for less petroleum usage since it requires about 30 per cent less power to illuminate the roadways with adequate street lighting. Other benefits include longer tyre life and less fuel usage for drivers, as well as a shorter and safer braking distance."

EGYPT: Lafarge plans to use fuel coke curbed

The French company Lafarge has been ordered by the Ministry of State for Environmental Affairs (MSEA) to halt its preparations to build storage units for fuel coke, according to a statement by the ministry on Tuesday.

The MSEA expects the French cement manufacturer in Egypt to wait for a final decision on the use of coke as fuel in industrial operations.

Coke is a solid fuel derived from coal after removing volatile material. 

Lafarge–the largest cement producer in the world–submitted a study to MSEA on the environmental impact of fuel coke in May 2013 and awaits a government decision on its use.

The MSEA does not allow cement factories to import coal, citing hazards to the environment and the economy.

The cement industry consumes nine percent of the total amount of natural gas produced in Egypt, coming in third place after the electricity and fertiliser sectors.

The switch to coal was first suggested as an alternative to gas when the government announced plans to gradually remove gas subsidies.

“Coke is different from coal,” Samar Raouf, communications director at Lafarge Egypt, told Ahram Online.

“Lafarge has an international obligation to gradually transfer to environmentally friendly sources of energy. We have been taking steps towards fulfilling our obligations to the environment since 2010,” Raouf said.

INDIA: India Cements posts a net profit in Q3, surpasses estimates

India Cements Ltd on Monday posted a small profit for the fiscal third quarter, beating estimates by analysts who had predicted a loss, helped by better price realizations.

The Chennai-based cement maker reported a profit of Rs.42 lakh for the three months ended 31 December, compared to a profit of Rs.43 crore a year ago. The company had been expected to report a loss of Rs.5.84 crore in the period, according to a survey of analysts by Bloomberg.

The company, which owns the Indian Premier League cricket franchise Chennai Super Kings, posted a drop in revenue to Rs.1,036 crore fromRs.1,082 crore a year ago. Revenue was a tad lower than the estimate ofRs.1,043.6 crore in the Bloomberg survey.

Demand for cement continues to be sluggish, but prices have improved, said N. Srinivasan, executive chairman of India Cements. Net price realization was Rs.3,466.6 per tonne, up from Rs.3,090 per tonne in the preceding three months.

India Cements shares fell after the announcement of the results, ending Wednesday 3.03% lower at Rs.52.85, as BSE’s benchmark Sensex fell 0.2% to 20,334.27 points.

PAKISTAN: Cement exports increase by 7.6pc in January

The cement sale in local market rises by 1.9 per cent and the export increase by 7.6 per cent during the last month, Our Sources reported.

The cement sale in local market rises by 1.9 per cent and the export increase by 7.6 per cent during the last month, Our Sources reported.

Chairman of All Pakistan Cement Manufacturers Association (APCMA), Muhammad Ali Tabba said that sale of cement influenced much because of putting cement in third schedule of sales tax.

According to him the export of cement to Afghanistan was recorded at the lowest level as compare to the last six months.

"The main reason behind decline of cement import in Afghanistan is due to lack of development projects in their country and uncertain condition regarding the withdrawal of NATO forces", he added.

Chairman APMCA said that cement export to India can be increased by 3-5 million tones, if the some of their concerns resolved including non-tariff restrictions.

Muhammad Ali Tabba further suggested to increase banking facilities of both sides. He said that containers and trucks should be allowed till Amritsar.

LIBERIA: Africa's Richest Man Identifies Land for Cement Plant

Africa's richest man, billionaire Alhaji Aliko Dangote, paid a courtesy call, Thursday, on President Ellen Johnson Sirleaf at her Foreign Ministry Office, where he briefed her on the progress of his investment in Liberia.

According to an Executive Mansion release, the two discussed ongoing arrangements for a cement plant which the billionaire's company, Dangote Cement Liberia Ltd., intends to commence building in Liberia shortly, as well as plans for a coal-based power plant that would greatly reduce the cost of, and access to, electricity in the country.

Mr. Dangote, a Nigerian, is ranked by Forbes Magazine as the 43rd richest person in the world, and the richest man in Africa.

Concerning the cement processing plant, Mr. Dangote informed the President that seven acres of land have been identified at the Freeport of Monrovia for its construction and a jetty. After a three-year delay, it was time to move ahead with the project, he said. He assured the President that the limestone needed for the cement - which Liberia does not produce - would be brought in, and crushed and ground for the manufacture of cement locally.

As for electricity, Mr. Dangote said that his proposed coal-burning power plant would produce some 20 megawatts of power, but his operations would require only 1.2 megawatts. The excess could be sold to the government at no more than12 cents per kilowatt hour. "Tell us what you need, and we will produce it," he said of the power-generation capacity of the plant, which he said could be operational in 15 months. Approximately 30 acres of land are needed for such a facility, which includes huge boilers and cooling plants, along with access to a source of sweet water - where the water table is high.

Mr. Dangote pointed out that throughout Africa, the major issue is power. "No power, no growth," he declared. Any economy will climb to double digits, once there is power at the right price, he said. With affordable power people will produce products locally, will gravitate to the private sector, leading to the creation of a middle class. He recommended coal-based power plants, noting that there is plenty of coal in South Africa, Mozambique and Guinea, and that with today's technology, emissions of coal dust is at zero level.

Responding, President Sirleaf agreed that it was time to go forward and fast-track the cement project, assuring Mr. Dangote that the land would be turned over by February 16.

Concerning electricity, she spoke of the 54 cents Liberians pay per kilowatt hour, and said that three heavy fuel oil (HFO) power plants will soon come on stream. She pointed out that hydro represents the best form of power generation for Liberia, because of the abundance of rainfall and the many rivers, although other sources would be needed in the dry season. This, she said, could be addressed through an upstream dam producing some 1,000 megawatts of power. To determine exactly how much power the country would need, she said, the experts would need to study ongoing systems as well as those coming on stream. She invited Mr. Dangote to send his engineers to study the feasibility of building the coal-based power plant.

Among other topics discussed at the meeting were: the need for a Schengen-type visa in Africa, to facilitate travel between countries, particularly for business people; Liberia's harmonization of tariffs in keeping with ECOWAS protocols; and the production of basic commodities such as rice, sugar and other consumables.

Accompanying Mr. Dangote were: Mrs. Medina Wesseh, the International Law Group's Legal Consultant; and Mr. Bairappa Kashinath, Chief Engineer.

President Sirleaf's team included: Dr. Edward B. McClain, Jr., Minister of State for Presidential Affairs; Mr. Michael Wotorson, Chairman of the National Investment Commission; and Ms. Ciatta Bishop, outgoing Executive Director of the NIC, who will shortly assume her new position as Director-General of the National Bureau of Concessions.