A subsidiary of Orascom Construction signs agreement with Supply Ministry to implement a warehouse

Fatma Salah
2 Min Read

Orascom Construction PLC revealed that its subsidiary — Orascom Construction — signed an agreement with the Internal Trade Development Authority of the Ministry of Supply on Wednesday.

The company explained that the agreement included the implementation of a strategic warehouse for basic commodities on a build-own-operate system in Fayoum.

It also emphasised that the project will play an important role in providing logistical services to cover the needs of local and future consumption of basic commodities in Egypt.

Furthermore, it announced that construction work is scheduled to start after the provision of funding and for a period of up to 15 months.

Sources revealed to Daily News Egypt that the company has started negotiations with several banks to obtain a credit facility to finance several projects.

The projects under implementation of the consolidated Orascom Construction PLC amounted to about $9bn during the first half (1H) of this year.

The value of the new contracts increased by increasing the group’s stake by 21.9% to reach $3.2bn.

In the Middle East and Africa, the group signed new contracts worth $1.6bn in Egypt, $1.2bn of which were added in the second quarter (2Q) of 2022.

Meanwhile, subsidiaries in the US signed new contracts worth $1.817bn, $526m of which were added in 2Q 2022.

The group also maintained a strong level of new contracts that emerged last year and increased the value of projects in progress in the US by 34% y-o-y.

The new contracts in 2Q 2022 included important projects in the data centre sector.

Since 2017, the group has continued to expand in this sector, as the group was able to complete the implementation of six advanced data centres in the US and is currently building three others.

New contracts in 2Q 2022 included projects in the transportation, water, and commercial real estate sectors.

Share This Article