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.

Afcons Infrastructure Limited, a prominent player in the infrastructure sector, has made significant strides in its international expansion efforts. The company has emerged as the lowest bidder for two major road construction projects in Croatia, with a combined value of approximately €455 million (₹4,535.44 crore).

Project Details

According to a recent disclosure to the stock exchanges, Afcons Infrastructure has been declared the Lowest Bidder (L1) by Croatian Motorways Ltd for two packages of road construction:

1. Package J324/23:

   • Construction of a 9 km road segment
   • Project: CONSTRUCTION OF THE METKOVIĆ – DUBROVNIK SECTOR, SUBSECTION RUDINE – SLANO, A1 MOTORWAY ZAGREB-SPLIT-DUBROVNIK
   • Estimated Value: €240,593,861.40 (₹2,398.00 crore)
   • Completion Period: 42 months

2. Package J325/23:

   • Construction of an 11.5 km road segment
   • Project: CONSTRUCTION OF THE METKOVIĆ – DUBROVNIK SECTOR, SLANO - PUO MRAVINJAC SUBSECTION, A1 MOTORWAY ZAGREB-SPLIT-DUBROVNIK
   • Estimated Value: €214,452,118.69 (₹2,137.44 crore)
   • Completion Period: 42 months

Strategic Importance

This development marks a significant milestone for Afcons Infrastructure, showcasing its competitive edge in the international infrastructure market. The projects are part of the crucial A1 Motorway connecting Zagreb, Split, and Dubrovnik in Croatia, highlighting the strategic importance of these construction endeavors.

Financial Implications

The combined value of these projects represents a substantial addition to Afcons' order book. At current exchange rates (1 Euro = ₹99.67), the total project value translates to approximately ₹4,535.44 crore, potentially boosting the company's revenue and profitability in the coming years.

Execution Timeline

Both projects have a stipulated completion period of 42 months from the commencement date, indicating a long-term engagement for Afcons in Croatia. This extended timeline suggests a steady workflow and potential for sustained revenue generation over the next three and a half years.

Market Response

Investors and market analysts are likely to view this development positively, as it demonstrates Afcons Infrastructure's capability to secure large-scale international projects. The company's success in becoming the lowest bidder for these significant infrastructure projects in Croatia may enhance its global reputation and open doors for more international opportunities.

As Afcons Infrastructure continues to expand its footprint beyond Indian borders, this latest achievement in Croatia underscores the company's growing prominence in the global infrastructure development landscape.