The Arison Group, an international consortium that includes the Shikun & Binui Group, has won a $550 million Colombian highway tender, marking the Israeli firm’s first foray into the infrastucture sector in the Latin American country.
The build, operate, transfer (BOT) concession project is under a 25-year agreement where Shikun & Binui will build and operate a section of the major toll highway that encircles the capital city of Bogota, according to a statement.
The $550 million price tag includes expansion of an existing highway and the paving of a new segment, spanning 154 kilometers, the statement said.
Shikun & Binui currently has a 37.5 percent stake in the Arison consortium, and one of its subsidiaries, Shikun & Binui SBI, will take on a share of the project’s construction and operation, it added.
The new project in Colombia will join an orders backlog totaling more than $3 billion, of which close to $2.2 billion relates to projects outside of Israel, according to Shikun & Binui’s first-quarter report.
“Winning our first project in Colombia demonstrates that the group has ability to perform well in the global market, even when contending against other strong companies. We bring to the table excellence, experience, know-how and no less importantly – financial strength and proven managerial capabilities,” director of Shikun & Binui’s concessions division, Ami Landau, said.
Shikun & Binui has built hundreds of roads and completed numerous complex transportation projects throughout the world and in Israel. International projects range from the Benin Shagamu Road and Shagamu-Ibadan Road in Nigeria to the Huehue-Quiche Road in Guatemala, while major projects in Israel include the construction of the country’s first toll road, the Trans-Israel Highway, and its first toll tunnel, the Carmel Tunnel in Haifa.
The group’s companies focus on large-scale projects in the fields of infrastructure, construction, real estate, concessions, renewable energy and water, with special emphasis on implementing the principles of sustainability.