JV wins $739m EPC contract for Egypt water plant
Nasdaq Dubai and Egyptian Stock Exchange listed engineering and construction contractor Orascom Construction has won a $739m engineering, procurement, and construction (EPC) contract to build a water treatment plant in Egypt.
The company will work alongside Cairo headquartered Arab Contractors under a 50:50 JV for the project, which will be the largest treatment plant in Egypt, according to an article construction week online.
Upon operational commencement, the facility will have a capacity of five million m3 per day . It will treat water for irrigation purposes, the company revealed. In addition to delivering EPC services, the JV will operate and maintain the upcoming facility for five years.
Osama Bishai, chief executive officer of Orascom Construction, said, “We are proud of our involvement in the largest water treatment plant in Egypt.”
Orascom revealed in a stock market filing that its order book comprised various water desalination, wastewater treatment, and water infrastructure projects in Egypt, in March 2019. The latest contract win comes as a continuation of the contractor’s expansion in the water sector.
In addition to the EPC deal, the company has also secured operation and maintenance (O&M) contracts spanning one to five years for most of its water projects.
Bishai added, “The project not only reflects our leading position in the water and O&M fields, but also in the infrastructure sector as a whole.”
Net profits at Orascom Construction jumped by 84.3% in 2018, with the construction giant recording profits of $144.7m during the year. In first of quarter 2019, the company added $475m to its backlog, with its order book as of 31 March valued at $4.2bn.
Source: Construction Week Online
Fulya Altunyay/ [email protected]