RPP Infra Projects Ltd on Monday announced that it had received in-principle approval from two banks in Republic of Gabon and Congo, to fund its Rs 1,500-crore (Euro 250 million) mass housing contract in Gabon.
Ecobank of Libreville, Gabon, and BDEAC Bank, Brazaville (Congo), have approved the funding for the Gabon Housing project, said a company announcement. Out of this, Ecobank has already sanctioned Rs 170 crore for the project, as funding for the first phase.
Negotiations are on with BDEAC Bank and the approval is expected to be completed in a month, the company said.
The Design, Build, Finance and Transfer (DBFT) model contract is to construct and deliver 10,000 houses over 36 months over various phases. It would set up 1,500 housing units in the Phase I, spread over 70 hectares at an estimated value of Rs 200 crore.
Arul Sundaram, chairman and managing director, RPP Infra Projects Ltd, said, "This funding will help us in mobilising resources and to speed up the project and to complete the project in time. The funding is sufficient to take care of the Phase I of the project."
The government of Gabon has also offered various incentives including tax sops, duty-free import of machinery, tools, construction materials and plant.
The company's total order book has touched Rs 2,150 crore, as on August 1, 2011, which is to be executed over next 36 months.
It has so far completed around 200 civil projects in India, mainly in Karnataka, Andhra Pradesh, Tamil Nadu and in Andaman and Nicobar Islands. It has also forayed into Sri Lanka for railway project.
