Afcons Infrastructure Limited has secured a major road infrastructure project in Uganda, marking another significant achievement in its African expansion strategy. The company announced this development through a regulatory filing under Regulation 30.

Project Details

The strategic road infrastructure project in Uganda is valued at €100 million (₹1080 crores), representing a substantial addition to the company's order book. Key aspects of this project include:

Strategic Significance

This project award reinforces Afcons Infrastructure's export-led growth strategy and underscores the company's commitment to supporting regional economic development through high-quality, sustainable infrastructure. The project represents a significant milestone in the company's continued expansion across the African continent.

The road infrastructure project aligns with Afcons' focus on international markets and demonstrates the company's capability to secure large-scale projects funded by multilateral development agencies. This achievement highlights the company's strong positioning in the African infrastructure development sector.

Company Profile

Afcons Infrastructure Limited serves as the flagship infrastructure engineering and construction company of the Shapoorji Pallonji Group. The company brings over six decades of legacy with a strong track record of executing numerous technologically complex EPC projects both within India and internationally.

According to the latest ENR survey, Afcons holds notable global rankings:

These rankings reflect the company's technical expertise and execution capabilities across diverse infrastructure segments, positioning it well for continued growth in international markets.

Afcons Infrastructure Limited has informed stock exchanges about the invocation of surety bonds worth EUR 17.85 million by its client SOCIÉTÉ AUTOROUTIÈRE DU GABON (SAG) in connection with a road construction project in Gabon. The company received communications from Lombard Insurance Company Limited regarding the bond invocation related to an EPC contract executed on September 10, 2020.

Project Details and Current Status

The project involves the design, construction, rehabilitation, and upgradation of National Road NR1 from PK 24+000 to PK 105+000, covering approximately 117 kilometers. SAG, an investment arm of Meridiam (France), was awarded a 30-year public-private partnership concession by the Republic of Gabon for rehabilitation, construction, financing, and operation of the Transgabonaise national road.

Major portions of the project have been completed and opened to traffic, with approximately 93.47% completion achieved as of December 31, 2025.

Contractual Disputes and Arbitration

Differences have emerged between Afcons Infrastructure and SAG regarding the certification of certain balance works and release of corresponding payments. The company has initiated arbitration proceedings under the International Chamber of Commerce (ICC) rules to address delays and additional costs incurred during project execution.

Afcons Infrastructure believes that the invocation of bonds by SAG is inconsistent with the contractual terms and spirit of the contract. The company continues to pursue its contractual and legal remedies while the matter remains under arbitration and is sub judice.

Financial Impact Assessment

The company has evaluated the financial exposure arising from the bond invocation and has made appropriate provisions and disclosures in accordance with applicable Accounting Standards. Afcons Infrastructure stated that the invocation is not expected to have any material adverse impact on several key areas:

• Company's liquidity position
• Ongoing operations
• Execution of other projects
• Overall order book
• Operational capability
• Business outlook

The dispute is characterized as project-specific and does not impact the company's broader business operations. Afcons Infrastructure has committed to keeping stock exchanges informed of any material developments in the matter as the arbitration proceedings continue.