Shikun & Binui Holdings Ltd. (TASE: SKBN) has won its first ever contract in the US. The company, controlled by the Arison Group, reported today that it was part of a consortium that won a BOT contract to build a toll road in Harris County, Texas.
Texas Transportation Commission has announced that it has conditionally awarded Blueridge Transportation Group, of which Shikun & Binui is a member, to enter a Design, Build, Finance and Maintain agreement for the SH 288 Toll Lanes Project in Harris County.
The value of the project is estimated at $1 billion, with the construction costs alone amounting to $800 million. Shikun & Binui's revenue share in the construction contract is expected to amount to some $400 million. Two large Spanish infrastructures companies also bid for the project.
The tender win means that the consortium can proceed to financial closing, and then construct and operate the road over a period of 52 years. The ten mile stretch of road will connect Harris County to Houston. The project includes construction of bridges and interchanges and a toll collection system. Construction is expected to take three years.
This is the latest in a series of international infrastructure projects that Shikun & Binui has won in the past year, among them a toll road that is part of a ring road around Bogota in Colombia, a contract worth $550 million.
Shikun & Binui CEP Ofer Kotler said, "I am sure that this project is only a start, and that our people will prove capable of extending our penetration of the US will further projects."
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015