A consortium that includes the company Housing and Construction The Israeli won a government tender from the state of North Dakota in the United States, for the planning, construction, financing of operation and maintenance of a canal to divert floods, about 30 miles (48 km) long and associated infrastructure. The canal is intended to protect the city of Fargo and the Fargo-Moorehead area Adjacent to it in times of extreme floods.
Shikun VeBinui reported today that the bid of the Red River Valley Alliance consortium, in which a wholly owned subsidiary of Shikun VeBinui is a partner, was selected as the winning bid in the tender, published by the Fargo-Moorehead Metro Diversion Authority.
The scope of the project cost (including the cost of setting up the project, financing costs during the construction period and other expenses) is estimated at about $ 1.5 billion. The subsidiary of Shikun VeBinui holds 42.5% of the corporation that will contract with the customer in the franchise contract (the franchisee). In addition, another subsidiary of Shikun VeBinui will hold 35% of the shares of the contracting company that will carry out the construction of the project.
The concession period for the operation and maintenance of the project is 29 years from the end of its construction. The construction period of the project is expected to last about six years and begin in the fourth quarter of 2021.
You are entitled to establishment grants
The realization of winning the project is subject to the signing of a franchise contract with the client and the completion of fundraising for the project and the signing of a system of agreements to finance the project, as well as compliance with additional conditions precedent. In addition, subject to the signing of the franchise agreement and subject to the franchisee’s compliance with its obligations, the franchisee will be entitled to construction grants against milestones throughout the project construction period and availability payments during the operating period.
According to Shikun VeBinui, the consortium’s win in the project was unanimously approved by members of the client’s tender committee. An official announcement regarding the winning of the tender is expected to be delivered to the consortium in the coming days.
According to Tamir Cohen, Chairman and CEO of Shikun VeBinui, “The Group’s ability to compete and win mega projects in the US infrastructure that is in rapid development is a testament to the Group’s international capabilities that will continue to focus on the US market in all areas of the Group’s strategy.” “The strategy is to penetrate the American market in roads, energy and infrastructure, and that the volume of activity in the American market is expected to reach about $ 4 billion this year.”
Housing and construction, under control Nati Saidoff, Is traded on the stock exchange at a value of NIS 8.7 billion. Since the beginning of 2021, the company’s share has risen by 8% and in the last three years has recorded a cumulative adjusted return of 202%.