Saturday, February 4, 2017

Mota-Engil confirms the award of the contract in Tanzania – Jornal de Negócios – Portugal

The Mota-Engil group has confirmed that it was awarded a contract in Tanzania, such as the international monetary fund has advanced this Thursday, 2 February. “Mota-Engil S. G. P. S., S. A. (“Mota-Engil”) informs about the award of a contract with a total value of approximately 1,030 million dollars in Tanzania, in partnership (50/50) with the group Turkish Yapi Merkezi”, reveals the company in a statement sent to the Commission on the Securities Market (CMVM).

“according To the agreement signed today [Friday, 3 February], the project design & build, will consist in the construction of a stretch of railway line that will connect the country’s capital, Dar Es Salam, the neighboring countries of Rwanda and Burundi. This first section of 202 miles will run for a period of 30 months commencing March,” adds the document.

With the award of this work the company “reiterates the objective of resuming the pace of growth of their business in that region and in the group.”

António Mota, chairman of the construction company, in a statement to Bloomberg said that Mota-Engil is interested in continue to invest in this african country. “We’re very interested in something that is going to start discussing soon with the Government,” he said, referring to the various public competitions that are being launched in Tanzania.

According to the news agency, the african country will launch already in April a new tender for the construction of railway lines in Tanzania. Among the projects, is under study the construction of a line of 2,200 miles to connect Dar es Salaam to Kigali, capital of Rwanda, and other places, as well as other lines to connect several cities in the south of the country. Each of these two projects, according to Bloomberg, is valued at over 16 billion shillings tanzanian, which is equivalent to more than 6 billion euros.

according To the same source, the Government of Tanzania has allocated a budget of one billion shillings tanzanians (405 million euros) in the Budget of the State for the fiscal year that ends in June to finance projects in the area of railways. The remaining funding for these projects will be obtained through financing.

The signature of the contract won by the Mota-Engil group and the Turkish company Yapi was signed this morning. According to the minister of Public Works, the project was awarded to this consortium because it was the only one that presented a final proposal among the more than 40 companies that have shown interest.

Erdem Arioglu, vice president of Yapi, said to Bloomberg that the deal was facilitated by the Turkish president, Recep Tayyip Erdogan, who last month made a visit to Tanzania with the aim of strengthening ties between the two countries.


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