Construction arm to build power plant with Abu Dhabi support
The company is preparing to separate its engineering and construction group from OCI NV and it will be listed on the two exchanges in the first quarter of 2015, subject to regulatory approval.
The firm is one of the first to take advantage of the new dual listing regulations set up between the two countries.
The new entity is to be called Orascom Construction, according to a statement from OCI NV.
It will include all the construction assets and subsidiaries of OCI NV, as well as its 50 per cent stake in Belgiums Besix Group.
OCIs fertiliser and chemicals group will remain listed on the Euronext Amsterdam index.
The announcement follows news that Orascom Construction will be developing a 2,000MW-3,000MW coal-fired power plant initiative in Egypt in conjunction with Abu Dhabi-based International Petroleum Investment Company (Ipic).
The project is being developed near the El-Hamarawein port on the Red Sea coast and will help meet Egypt rising demand for electricity.
Orascom Construction Industries (OCI) was moved to Holland last year from Egypt. The company had been embroiled in a now-settled tax dispute under the former Muslim Brotherhood-supported Egyptian government led by President Mohamed Mursi.
OCI NV announced on 4 November that The Egyptian Tax Authoritys Independent Appeals Committee has ruled in OCIs favour regarding the tax dispute.
This is not only a victory for the company and all its stakeholders, but also for the rule of law and the general investment climate in Egypt. The outlook for Egypt is very promising, and we continue to be committed to channelling resources towards growth and new investments in the country, said the companys CEO, Nassef Sawiris in an official statement.
The construction companys close cooperation with the UAE is reflective of the wider ties between the two countries.
The UAE has been a strong supporter of the current government lead by ex-army chief Abdul Fattah al-Sisi.
Along with other Gulf states, the UAE has poured billions of dollars of financial aid in the North African country following last years revolution.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.