Saar Bracha, CEO of Tahal Group: "Winning the project in Georgia is a part of our strategy to penetrate other markets in Eastern Europe. In recent years, we have won significant planning and execution projects in Romania, Russia and Serbia, and now we are also registering success in Georgia. "
The group announced today that it has won a project to build and upgrade the sewage system in Poti, Georgia, near the Black Sea, for $26.3 M
The project to be implemented for the Georgian water company is expected to include the installation of 112 km of sewage pipes, renovation of 7 km of existing pipes and removal of 30 km of old pipes in the city; construction of two new and renovation of 26 existing pumping stations. The construction period is scheduled to be completed within 30 months and afterwards a 12-months inspection period will commence.
The total compensation for the project is approximately USD 26.3 million. The payment terms are linked to agreed performance milestones throughout the duration of the project.
This is the second time during the past month that Tahal wins out, after being awarded a construction of a water supply system for Nagercoil in India tender last week, valued $ 29 million.
Saar Bracha, CEO of Tahal Group, said: "Winning the project in Georgia is part of our strategy to penetrate additional markets in Eastern Europe. In recent years, we have won significant planning and execution projects in Romania, Russia and Serbia, and now we are also winning out in Georgia. The government of Georgia has announced a national plan for the water and sewage infrastructure development that includes deployment of new infrastructure for water conveyance, treatment and distribution to the cities and villages, sewage conveyance and treatment as well as upgrading the existing infrastructure. The program is funded international development banks as well as significant local budgets. "
The expansion in Eastern Europe follows a significant expansion of operations in India and Africa. In 2017 Tahal has won four projects for the design and construction of water treatment and supply systems in India, totaling approximately $140M. The company also signed four large contracts in Africa in recent months: together with its partner in Angola and Zambia, ZRB, TAHAL signed three agreements for the development and construction of three agricultural development projects in three regions in Angola, totaling approximately $291 million. In addition, together with ZRB TAHAL signed an agreement to set up a similar project for Zambian government for $ 176 million.