Afcons Infrastructure Limited , a prominent player in the infrastructure sector, has made significant strides in the international market by emerging as the lowest bidder for a major railway project in Croatia. The project, valued at approximately ₹6,800.00 crore (€677.07 million), marks a substantial opportunity for the company in the European infrastructure landscape.

Project Details

According to a recent disclosure by Afcons Infrastructure to the stock exchanges, the company has been declared the Lowest Bidder (L1) by HŽ INFRASTRUKTURA d.o.o. (HŽ Infrastructure Ltd) for a comprehensive railway line project in the Republic of Croatia. The scope of work includes:

• Reconstruction of the existing track
• Construction of a second track on the Dugo Selo - Novska railway line
• Installation of overhead electrification
• Implementation of signalling and telecommunication works

Financial Aspects

The estimated value of the contract, excluding taxes (VAT), stands at €677,071,899.78, which is equivalent to approximately ₹6,800.00 crore. This valuation is based on an exchange rate of 1 Euro = INR 100.44, as reported by the company.

Project Timeline

The project is slated for completion within 72 months from the commencement date, post-award of the contract. This extended timeline underscores the scale and complexity of the infrastructure development undertaking.

Significance of the Project

This railway project represents a significant international expansion for Afcons Infrastructure. Securing the lowest bid for such a substantial European infrastructure project not only demonstrates the company's competitive edge in the global market but also opens doors for potential future opportunities in the region.

Corporate Disclosure

The information about this project was disclosed by Afcons Infrastructure Limited in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made to both the BSE Limited and the National Stock Exchange of India Ltd, where the company's shares are listed.

This development comes as a positive indicator for Afcons Infrastructure's growth strategy and its capability to compete on an international scale. As the project moves forward, it will be interesting to observe how this venture impacts the company's financial performance and market position in the coming years.

Afcons Infrastructure Limited , a prominent player in the infrastructure sector, has made significant strides in the international market by emerging as the lowest bidder for two major road projects in Croatia. The combined value of these projects is estimated at €455 million (approximately ₹4,535.00 crore).

Project Details

According to the company's disclosure to the stock exchanges, Afcons has been declared the Lowest Bidder (L1) for two separate packages by Croatian Motorways Ltd. These projects are part of the A1 Motorway Zagreb-Split-Dubrovnik construction initiative. The details of the two packages are as follows:

*Exchange rate: 1 Euro = ₹99.67

Project Scope

The projects involve the construction of crucial road segments in Croatia's A1 Motorway, which connects Zagreb to Split and Dubrovnik. This development is expected to significantly enhance the transportation infrastructure in the region, potentially boosting economic activities and connectivity.

Implications for Afcons

Securing the lowest bidder status for these substantial international projects marks a notable achievement for Afcons Infrastructure. It showcases the company's competitive edge in the global infrastructure market and its capability to undertake large-scale road construction projects outside India.

The successful execution of these projects could potentially strengthen Afcons' international portfolio and open doors for more opportunities in the European infrastructure sector.

Next Steps

While being declared the lowest bidder is a significant step, the final award of the contracts is subject to the completion of necessary procedures and approvals from Croatian authorities. Investors and industry observers will be keenly watching the developments in the coming weeks for the official confirmation of the contract awards.

Afcons Infrastructure Limited, headquartered in Mumbai, India, continues to expand its footprint in the global infrastructure space with this latest development in Croatia's road construction sector.