Osama Bishai-led contractor to work with Arab Contractors on EPC and O&M deal for five million m3 water treatment 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.
According to a stock market missive, the company will work alongside Cairo-headquartered Arab Contractors under a 50:50 joint venture (JV) for the project, which will be the largest treatment plant in Egypt.
Upon operational commencement, the facility – which will have a capacity of five million m3 per day – 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.
Speaking on the contract win, chief executive officer of Orascom Construction, Osama Bishai, said: “We are proud of our involvement in the largest water treatment plant in Egypt.”
In March 2019, Orascom revealed in a stock market filing that its order book comprised various water desalination, wastewater treatment, and water infrastructure projects in Egypt. 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.
“The [latest] project not only reflects our leading position in the water and O&M fields, but also in the infrastructure sector as a whole,” added Bishai.
Net profits at Orascom Construction jumped by 84.3% in 2018, with the construction giant recording profits of $144.7m during the year.
In Q1 2019, the company added $475m to its backlog, with its order book as of 31 March valued at $4.2bn.