Shikun & Binui Ltd (Housing & Construction), a global construction and infrastructure company headquartered in Israel, announced its first major project win in the United States – an $800 million Public Private Partnership (PPP) project to design, build, finance, operate and maintain toll lanes on SH-288 in Harris County in Texas with the Texas Department of Transportation (TxDOT).
The project was won by a consortium in the name of Blueridge Transportation Group, comprising of three global developers (Shikun & Binui, ACS and InfraRed Capital Partners). The project is estimated at more than $1 billion, with construction costs of approximately $800 million.
Shikun & Binui is a 50% member of the construction joint venture and its expected share in the construction revenues is approximately $400 million.
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Upon project award, the consortium will proceed to execute the concession agreement with TxDOT and to secure the financing for the Project. The consortium will design, build, operate and maintain the toll lanes along 10.3 miles of State Highway 288 in Harris County, Texas (near the city of Houston) during the 52-years concession period and will collect tolls from the toll lanes users.
The design and construction works will include 4-lane express (tolled) lanes in the median of the existing highway, the reconstruction of a major interchange and multiple bridges and the installation of an electronic tolling system. The duration of the construction phase is expected to be approximately three years.
CEO of Shikun & Binui, Ofer Kotler commented, “A couple of years ago, we identified the United States as a target country for the expansion of our global activities, and I am pleased that today we were able to realize this vision. I am confident that this project will be the first of many more to come, and that we will continue to grow our business in the United States with further project wins under the leadership of our team.”
Revenues from this project as well as previous projects won will add to the Company’s revenue from infrastructure projects and construction internationally. During the first three quarters of 2014, international revenues in this segment amounted to $2 billion, constituting 45% of the total revenues of the Group. As of September 30, 2014, the Group’s backlog amounted to NIS 9.7 billion (approximately $2.4 billion), of which NIS 6.8 billion (approximately $1.7 billion) or 70%, was from international operations.