The road agency of the Mozambican government has awarded construction company Basil Read a contract for the rehabilitation of a 244km road between Vanduzi and Changara, Basil Read CEO Albert Bernardo said on Wednesday.
Valued in excess of R150 million, the Administracao Nacional de Estradas contract forms part of the government’s 10-year programme to upgrade the country’s infrastructure.
Basil Read’s JSE share price was unchanged at R1,90 Wednesday afternoon, stochastically overbought, having risen from R1,55 on May 22.
The project will be 90% funded by the African Development Bank with the remaining 10% by the Mozambican government.
Operations on the 20-month contract, awarded to Basil Read after a tender process that started at the end of 2000, will commence this month and involves widening and upgrading the existing EN 102 road and repairing some 51 bridges.
Said Bernardo: ”The EN 102 is a main artery that links Zimbabwe, Mozambique and Malawi and its rehabilitation will have economic benefits for the country.
”This project allows Basil Read to strengthen our local presence there and will provide employment opportunities for the people of Mozambique as well as for qualified staff from South Africa.”
Founded locally in 1952 by Basil Leonard Read, the company is today 70% owned by world-leader, Bouygues Construction, with the remaining 30% in public shares listed on the Johannesburg Stock Exchange. – Sapa