target business in 2015 worth EGP 1bn with 9 operations: REDCON Chairman

REDCON allies with Chant and Osiga to establish solar plants with capacity of 100 MW and wind farms with capacity of 50 MW By Ahmed Samir REDCON Construction Company aims to achieve EGP 1bn worth of business by the end of 2015 with nine operations, compared to last year, where volume reached EGP 600m through six operations. Engineer Tarek El-Gammal, chairman of REDCON’s board of directors, told Daily News Egypt the company will sign a Memorandum of Understanding (MoU) to cooperate with real estate company, Emaar Misr. REDCON will act as a general contractor for a number of luxurious residential projects in New Cairo and Moqattam, with a business volume worth EGP 800m. New projects include the implementation of two new phases in the Mivida and Uptown projects, with a total of 500 multi-residential models. He pointed out that REDCON contracted with Palm Hills Construction to implement infrastructure work. These include water systems, sanitation, electricity and paving roads for 208 villas in the Fifth Settlement, making total business volume assigned to the company EGP 180m. El-Gammal added the project is established on an area of 65,000 sqm, and that the company is implementing expansions in the American International School in the Fifth Settlement for the benefit of Al-Futtaim Real Estate. El-Gammal confirmed the company is targeting new kinds of projects, including industrial projects through implementing giant projects for the benefit of others. The company is currently studying the construction of a food products factory in the 6th of October City’s industrial zone, working with a big Italian food company. He assured that the company provided the first Uptime Certified Tier IV guaranteeing 99.9% uninterrupted service throughout the year in favour of US-company GPX that works in communications and IT. El-Gammal clarified that REDCON Construction finished implementing construction works of building L84, the biggest administrative building in New Cairo’s Road 90. It is expected to finish works in the next month. The building consists of two towers with two separate entrances on an area estimated by 35,000sqm, he added. Each building has seven upper floors and three basements, with a garage large enough for approximately 381 cars. The building recently acquired Platinum level certification of qualification and registration from the US Green Building Council (USGBC), which is considered the highest level of evaluation of green buildings worldwide. He confirmed the company is currently in negotiations with a financial consulting firm to handle proposing a share of its stocks on the Egyptian Stock Exchange during 2016. Since its establishment as a company, REDCON has implemented over 125 projects for major companies, including Emaar, Al-Futtaim, Palm Hills, Al-Kharafi, Zayed Bin Sultan Al-Nahyan Charitable and Humanitarian Foundation, and Almarai for Dairy. El-Gammal also confirmed the company has completed the launch of a new department specialised in renewable energy services and sustainable development. The department provides technical support in the implementation, procurement, installation, operation, maintenance and monitoring of solar energy projects. Moreover, it will also provide technical consultation, whilst implementing environmental and sustainable development studies and overseeing the implementation of green buildings. He disclosed the company’s current studies on eight solar energy projects at a cost of EGP 30m in partnership with both the public and the private sectors. The projects include two water desalination stations using solar energy in Halayeb and Shalatin, and four electricity generation stations using solar energy in the Fifth Settlement and Minya, with a total capacity at 1,350kW. He added that the company has negotiated with and entered into agreements with several companies from Italy, Spain, Japan, India and China, which recently qualified to compete for solar energy stations in Egypt. The companies will undertake all contracting works for the stations, whilst also transmitting the renewable energy from the solar energy stations. The company will also do the civil and electricity works for the stations. El-Gammal confirmed the new department also specialises in the stations’ supply, installation and operation, adding that the department joined the Chint group and SGC in a joint venture. It will work as a contractor on studies and implement the solar energy station with a power of 100 MW, as well as wind farms with a power of 50 MW. A cooperation and non-disclosure agreement has been signed with a major Indian company, assigned by the Ministry of Electricity and Renewable Energy to implement the Kom Ombo station to generate solar power at 50 MW, according to El-Gammal. An agreement with R&D Technology Center for engineering designs has been signed to establish two mobile water desalination stations that would help develop Halaib and Shelatin project. REDCON will also participate in energy station studies and will supply, install, operate and do maintenance work on the mobile solar energy stations to be established for the first time in Egypt. The new station is now being registered in the International TUV Organization to receive a patent for the station. El-Gammal added that the total capacity of each station will reach 10 KW per hour. Redcon and R&D Technology Center will do the advisory and design work for the projects. This comes in addition to offering prices for supply, installation, maintenance work and operation for the new station after signing an agreement of mutual cooperation. He added that the centre has local and international experience in technology transfer of new and renewable energy. El-Gammal also said that his company is expecting a leap in the Egyptian market throughout 2015, compared to 2014, due to the amount of projects announced lately, and which will be raised in the next period. He said REDCON Constructions is negotiating with three international companies to establish new companies to compete for all the wind station’s tenders. These will be raised by the New and Renewable Energy Authority (NREA), the next stage, in the Oil Mountain, in the Red Sea governorate. There are currently negotiations with NREA, to recognise the most highlighted projects, which will be raised by the authority soon. He declared that the cost of establishing only one wind station varies between $200m to $260m. The company concluded a contract for partnership with one of the three companies, but he refused to announce its name, El-Gammal confirmed, with partnership negotiations with the two other companies to conclude soon. Concerning REDCON, El-Gammal said the company is now investigating in developing three commercial and administrative buildings in New Cairo, with the coast of EGP 1bn. He added that the administrative and the commercial buildings include, two commercial malls in the Fifth Settlement, the first one covering 200,000 sqm, the others covering 40,000 sqm, in addition to an administrative building covering 60,000 sqm. He said the construction of the three projects will start in the second half of 2015, and the implementation period will take 30 months, from the start date. El-Gammal confirmed the company finished its owned Administrative Financial Building L140, in Road 90, New Cairo, which was rented by international companies, including Electrolux, Hill International, LEO Pharma, GBX and ReGas.