RPP Infra bags Rs 1,500 crore housing project in Africa

RPP Infra bags Rs 1,500 crore housing project in Africa
New Delhi: RPP Infra Projects Limited Monday said it has bagged a mass housing contract worth Rs 1,500 crore from the south-western African country of Gabon.

"The contract is awarded to RPP Infra on design, build, finance and transfer model. The objective of the contract would be to construct and deliver 10,000 houses over 36 months over various phases," the company said in a regulatory filing.

RPP Infra has been negotiating with financial institutions for the funding support. In the first phase 1,500 of the 10,000 dwelling units would be constructed across 70 hectares.

The company has so far received in-principle approval from two international banks, including ECOBANK of Libreville, Gabon, and BDEAC Bank, Brazaville, Congo, for funding the project. Of this, ECOBANK has already sanctioned Rs 170 crore for the Rs 1,500 crore project.

The company is in negotiations with BDEAC Bank and expects it to be completed within a month.

"The funding will help us in mobilising resources and to speed up the project and to complete it in time. The funding is sufficient to take care of phase I of the project," said Arul Sundaram, chairman and managing director, RPP Infra.

Meanwhile, the Gabon government has additionally offered the company various incentives such as tax SOPs, duty-free import of machinery, tools, construction materials and plant.

As on Aug 1, the total orders with the company were worth around Rs 2,150 crore, which are to be executed in 36 months.

PTI