Edifer Consortium Wins First Contract Award in Algeria
2007.12.17
This building contract worth 165 million euros is our first award in the Algerian market.
On last Saturday, 15th December, the first Algerian market building contract agreement was signed for the construction of a block in the Oran city, the second largest Algerian city, located approximately 400 kilometres from the capital Alger.
This important Project is developed by a local promoter, the Groupe des Entreprises Hasnaoui, SARL, and the contract was signed with the GPCA – Grupo Português de Construção Argélia, participated in 50% by EDIFER.
The Project worth 165 million Euros refers to the Quartier El Ryad – Bir El Bjir building, in Oran, consisting of 2103 dwelllings in 6 to 8-floor buildings, 456 houses, several commercial and administrative spaces, several pathways and respective gardening, technical networks and the land modelling itself. The new block will occupy a 42-hectare land area, and the building area is distributed as follows:
Collective Buildings |
192.820,00 m2 |
Houses |
203.925,00 m2 |
Commercial Areas |
8.000,00 m2 |
| Shopping Centre |
1.000,00 m2 |
The GPCA Chairman and Edifer Director, Fernando Matos, at the contract signing made reference to the importance of these Works, whether by the value they represent or by the fact that they constitute the first award to GPCE..
Fernando Matos was quite satisfied with this contract award, and also confident on GPCA technical and productive capacity which will bring success to the present contract, as well as to the ones being presently negotiated within this market.
He still revealed that contacts are being established with Algerian authorities and investors who have been quite receptive as to the GPCA bids and working methods, and therefore other awards are expected to be confirmed soon.
The announcement of this contract award was quite highlighted by the Algerian press, as it coincided with the Portuguese Prime Minister’s visit to the country.
ALGERIAN MARKET ENTRY STRATEGY
As referred before, EDIFER has adopted a partnership (with Opca and Sopol) strategy to enter the Algerian market, the ideal business model for a structured market entry approach, and for reduction of risk naturally inherent to internationalization dynamic processes. The consortium is participated in 50% by Edifer (presently chairing it), and the remaining by the above referred companies, with which an agreement was made to establish a firm under the Algerian law, which will happen before the end of 2007.
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