Mumbai, July 3 -- Ashoka Buildcon Ltd has received a Letter of Acceptance from the Central Housing and Planning Authority of Guyana for the construction of a four-lane highway. The contract, awarded by an overseas entity, is valued at GYD 7.46 bn, equivalent to about US$35.42 mn. The company has said the work will be executed on an item-rate basis over a period of 20 months.
The scope covers construction of a four-lane highway from Versailles, West Bank Demerara, to Parika, East Bank Essequibo, designated as Lot eight in Region number three. The project will be undertaken as per the terms in the LoA and is expected to follow standard construction milestones and payment schedules. Ashoka Buildcon has indicated that neither its promoters nor group companies hold any interest in the awarding authority and that the contract does not qualify as a related-party transaction.
Shares of the company closed at Rs131.03 apiece on Thursday, June 25, down 2.51 per cent for the day. This represents the company's second contract win in less than two weeks following a Letter of Acceptance received on June 13 from the Chhattisgarh State Industrial Development Corporation for development of a Gems and Jewellery Park in Raipur under a public-private partnership. The Raipur project is structured under a lease model with a premium payment and an initial lease period of 30 years.
The premium for the Raipur project was reported as Rs1.124 bn, reflecting the conversion from the stated figure in crore. The lease is extendable up to 90 years under the agreement, which the company described as part of its strategic expansion in infrastructure and asset development. The latest order adds to Ashoka Buildcon's order book and underscores its focus on overseas and domestic opportunities.
Published by HT Digital Content Services with permission from Construction World.