RPP Infra Projects Ltd (BSE: 533284), one of the India's leading and fast growing Non Metro / Rural based Infrastructure company, has won a mass housing contract in “Republic of Gabon” (RG) awarded by the Gabon Ministry of Housing. The contract awarded to RPP Infra is on ‘Design and Build and Transfer ' (DBT) model. The contract would be to construct and deliver 10,000 houses in 36 months over various phases. The total contract is valued at Euro 250 million (Rs 1,500 crore). Under this agreement the Gabon government will provide 120 Hectares of free land for the construction of the houses.
With this contract, the Order Book position of the Company has touched Rs 2225 Crore as on February 28, 2011.
As part of the agreement RPP Infra will have the right to develop 20% of the land for its own Residential / Commercial / Institutional complexes and sell it in the market. The Gabon Government will buy from RPP Infra if it is unable to sell it in the market over 36 months from the date of construction. The land parcels have been strategically identified at different locations having high demand across country.
In the first Phase, RPP will build 1500 houses across 120 hectares and hand over to Gabon Government. RPP Infra will deploy cost effective methodologies and technologies , state of the art tools & machinery apart from skilled and un skilled resources to complete the project on time. The value of the phase 1 is estimated at Rs 225 Crs. Other phases are to follow subsequently.
The Government of Gabon has additionally offered RPP Infra various incentives such as Tax Sops, duty free import of Machinery, Tools, Construction materials and plant.
Currently RPP is developing an integrated township project for NTECL (A NTPC & TNEB Joint venture) in Vallur, Northern Chennai.
It is worth noting here that RPP Infra had recently entered the West African markets by winning a Rs 100 crore (Rs one billion) project in Gabon. The Project is a development of Special Economic Zone (SEZ) at KNOK in Gabon where in roads; hotel building and other works are all part of it. It also includes construction of six-lane access roads across the SEZ.
Currently RPP is developing an integrated township project for NTECL (A NTPC & TNEB Joint venture) in Vallur, Northern Chennai.
Commenting on this project, Arul Sundaram, Chairman and Managing Director of RPP Infra Projects Limited said that “We are happy that from a small town in Tamil Nadu we were able to win a multi million euro deal internationally. RPP Infra's vast experience, strong expertise in urban development and on timely execution has been our key to winning this deal.
RPP Infra has proposed a comprehensive, Cost effective approach plan enabling Gabonese Government to construct more dwellings with limited resources. As the demand for Quality housing in Gabon is very high and is increasing with time, this initiative will be immensely welcomed by the people of Gabon. RPP Infra would deploy a combination of domestic and international resources to complete the project on time. “We are confident to attract more such high value projects in Gabon and other neighboring African countries by leveraging our capabilities," he added.
