Since you just returned from a five-day visit to China, what's your appreciation about the different agreements signed with Chinese authorities concerning their investments in Sudan?
As you know the relation between Sudan and China started in old days and we the ministers of energy and mining have been responsible of oil mining and electricity. First, we had fruitful discussions with CMPC, the company handling the oil in Sudan, and we agreed to move forward for more cooperation in the oil industry, in exploration, refining and petro-chemicals. So, we reached a common understanding and we should go ahead in broading the relation and our business in this area. The second area that we stressed in the mission was the electricity, which is priority, looking forward for more development in the Sudan and bearing in mind that our country is full of resources. So we get to know that electricity is the main tool activating the development not in the towns but in the rural areas, and this is why we signed an agreement to invest in the electricity side. We signed an agreement to build a thermal plant with the capacity of 210 MW, and to build a transmission line connecting different areas. We signed contracts to buy a number of things for the electricity generation. Besides, we also plan to invest in solar and wind energy, so these are the main areas we agreed upon in the latest visit to China .
The Ambassador of Malaysia who you met recently, mentioned to us that although some agreements had been already signed in the field of power generation, particularly with some "IPP" under the "P.O.T", they still find some obstacles to persuade investors to finally implement the agreement, particularly due to some guarantees investors are waiting to receive from the Sudanese government. He also added that although the legal framework has changed in a very positive way, implementation of what's stated in that legal framework still needs some push from the government side. Any comment on that issue?
Equally to the relation that I mentioned positively between Sudan and China, we have the same with Malaysia who is involved in the oil sector; so, they come to join us in the electricity side. And as the Ambassador mentioned that it is the Malaysian company that applied to build a thermal plant for the electricity generation and the "IPP" model of cooperation, so we are feeling that the preparation of the agreement is in the latest stages. We feel there is no major issue in reaching an agreement. We are working to finalize the latest details and hopefully by the end of this month the agreement would be signed.
Both Chinese and Malaysian Investors are the forefront of foreign investment in Sudan. Are you looking at other Asian partners for further development of Sudan's unique resources?
We have the Japanese, who sent their application to go to invest in the oil sector and also in power sector, we have application from Indonesia who want to join us. We also have applications from Russia, from India who want to join us especially in the oil sector. So these are the countries that are on the way to join us and also we have Koreans' application mentioning their interest to come and join us in these areas.
Minister, we can not neglect that the oil exploration activity in Sudan is very controversial in some western countries, at least for some sector of the public opinion. A UN expert for human rights in Sudan recently said that the government is to force the location of the local populations, sometimes there is a destruction of villages and of local population. What do you have to say about that statement?
This is the kind of opinion we used to hear from the old days and that is from a hidden agenda of some of the media, but the situation in Sudan is not as it appears in the media. This is why we ask those who want to say something about Sudan to come and see the Sudanese people, and have a chance to ask those in the streets, not only the official people. That is a fair judgement for us if they want to make the truth available for the readers, rather than going to ask the people who are either being distrusted or those who make use of this kind of industry. We are saying that those who are living around the area where we get oil are the first people who benefit there. It is not something we said, it is something real: those who live around the oil area get clean water, electricity, gschools, and a communication network. This is what has been happening in the history of Sudan in the remote area and what we are saying after the development of these area. People come from a very far place and settle in this area. Before the oil there was no settlement at all; nobody lived there, but the oil people came and lived around the oil area, because there is a lot of development, and many people have the chance to work in the industry. So what I am saying is the opposite of what you read from this hidden agenda .
| The truth is that Western companies in general are more sensitive to the criticism in their countries while Asian companies have expressed their full commitment to further develop the economy of the country. Does this imply that the Sudanese government should priorize its relationship with Asian countries?
We don't have only Asian companies around. We have also western companies, we have companies from Canada, Sweden, and Austria that are working with their people doing a good business and making money out of these. So it is not only the Asian people because they have a good relation with Sudanese that they are working there. We have even American companies working in the service sector. We don't have only something for Asian, Sudan is open for those who have experience and money to come and join us. And the slogans like human rights, terrorism and slavery don't suit to any situation here. People there are working well, in addition to local people, and western and eastern companies which are working well, too; we don't destroy any we don't have hazard on any, it is not something covered by the government or company. We have an open situation, and those who are writing in the media did not see the situation there, just wrote about Sudan and said something about Sudan, we know that they are paid to do so.
Could you give us some examples of successful cooperation in the mining sector?
We have Chinese working in the north area of Sudan looking for gold, but we did not get the production yet, it is on the way and the information we have is very successful; the French now are exporting around 60 tons a year of gold; the French have several interests; we have other companies working in the western side of Sudan, hopefully we are expecting the production to come soon; we have new discoveries of oil in different places, so these are available for anyone interested to come in the middle of the country. In addition, in the East we have iron reserves.
As far as oil is concerned, what are your expectations for the coming years?
We have a candidate for gas and oil on the coast, and now in the concession we are negotiating with the Russian for developing that area. We are also preparing the rest of the areas for any investor to come, and we are preparing the information and we hope toward the end of the year we will call for a number of concessions.
Do you agree with the role played by OPEC and the position they have maintained in order to keep oil process at the certain level?
I agree on that because unless we have a level of pricing to look for investment in the oil sector, nobody can come and spend his money unless he gets a good price so that he can recover the money he spent on that. The need for oil consumption is getting higher and higher, we have equal balance on the investment side, and we know that the price on the consumer has been affected by the legal taxes. The government is making money out of this production which is difficult for the consumer in that place. We agree with the position being taken by OPEC so as to balance between the consumption and the investment; this is the proper way for keeping the industry into sustainable growth.
Would you like to give a message to those Asian investors already present in Sudan, but above all to those who are willing to come from countries like Japan and Korea? What are the reasons why they should now be interested in investing in Sudan? What guarantees could the Sudanese government offer to them?
The message I can send through your media, is an invitation for any investors either group, company or individual. We call upon everyone to come in the Sudan, because it is an open place. We say Sudan is full of resources in oil, gas, minerals, agriculture land, animal wealth, etc. Hopefuly, oil sector will be as a backbone, a support for investors who will bring their money in. Our system is an open one, anybody who brings his money in can locate at any place; if he gets his profits, he can transfer it in any time, no restrictions in hard currency. This is an open situation, we feel the economy of Sudan is consolidating, we don't have inflation. For the investors, I think the rate of profit is very high because we have very good technicians to assit you. We are welcoming any company, group or person to come and see how the country and the society look like.
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