CAIRO: Egypt’s Orascom Construction (OCI), the country’s biggest listed firm, said on Wednesday its Saudi Arabian subsidiary was awarded infrastructure work there worth $450 million.
Protests that toppled Egypt’s Hosni Mubarak and inspired unrest across the Middle East have delayed the launch of several public private partnership projects (PPP) in Egypt and other construction work.
But the company has said it was confident about demand in Abu Dhabi, Saudi Arabia, Qatar and Morocco, which have avoided the turmoil that has hit other parts of the region.
OCI made about 43 percent of its revenue from the Middle East and North Africa in the first quarter.
"This contract marks a major step forward in establishing OCI in Saudi Arabia and positions us for further opportunities in the future," OCI’s Chief Operating Officer Osama Bishai said in a statement.
The work will include civil, mechanical and electrical works including 2.1 million square meters of roads, walkways, and the supply and installation of 146 km of piping for the storm water, waste and potable water systems. Construction will take two years to complete, OCI said.
"We are confident that 2011 will see significant growth in our Saudi Arabian business," Bishai added.
OCI reported a 77 percent jump in 2011 first-quarter net profit and has said it is well positioned to pick up regional infrastructure projects in 2011.
The company said this week the World Bank’s International Finance Corporation (IFC) was considering debt and equity investments in the company worth $350 million.
