Egypt's Orascom Construction (OCI) announced Wednesday its Saudi Arabian subsidiary has been awarded infrastructure work in the Kingdom worth US$450 million.
Construction work and public private partnership projects (PPP) in Egypt and other Middle East countries have stalled in the wake of regional unrest. But OCI, Egypt's biggest listed company, says it is confident about demand in Abu Dhabi, Saudi Arabia, Qatar and Morocco, which have so far avoided turmoil.
"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 Saudi work will include civil, mechanical and electrical works including 2.1 million square meters of roads, walkways, the supply and installation of 146 kilometers of piping for the storm water, waste and potable water systems. Construction will take two years, OCI said.
OCI reported a 77 per cent jump in 2011 first-quarter net profits and has claimed it is well positioned to pick up regional infrastructure projects in 2011.
The firm recently said the World Bank's International Finance Corporation (IFC) was considering debt and equity investments in the company worth $350 million.