Kardan NV (TASE: KRNV;AEX:KARD) subsidiary Tahal Group has signed a €143 million contract with the Angola Ministry of Public Works to build an integrated agricultural and regional development project. Kardan said that this was the largest water infrastructure project in the company's history.
Tahal will build a water supply, sewage and drainage, and irrigation system for the new Quiminha rural settlement of 310 farms, 70 kilometers southeast of the capital Luanda, near the Quiminha Dam on the Bengo River. The project aims to develop fertile land to boost local production of agricultural products.
Tahal will begin the project in the first half of 2010, and it is due to be completed in three years. The company will provide two more years of consultancy services. Work will begin after the financial closing and when Tahal receives a 15% down payment. The Angolan government has already signed an agreement with commercial banks to fund the project.
Tahal is already building a water supply project for seven neighborhoods in Luanda. The company is also building water projects in Ghana, Botswana, and Ethiopia.
Kardan's share closed at €4.37 on the Euronext Amsterdam exchange on Friday. The share rose 3.7% in early trading on the TASE today to NIS 23.80, giving a market cap of NIS 2.57 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2010
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