As part of its expansion plan on the African continent, Portugal’s biggest construction firm, Mota-Engil, said it plans to invest $1.8 billion in the Nigerian construction market.
Manuel Antonio Mota, Chief Executive Officer of Mota’s Africa unit, disclosed this during an interview with Bloomberg. He noted that the timing to enter Nigeria was “just right”, citing higher demand for building projects as increase in oil prices bolsters the state coffers of oil producers in Africa.
In his words:
“The projects in Nigeria that are currently on the table vary between 20 million euros to 1.5 billion euros”.
Under this new venture, Mota-Engil will hold 51 percent of Mota-Engil Nigeria Ltd. while the Shoreline Group, will hold the remaining stake.
Mota-Engil announced earlier that it planned to enter new markets in Africa including Ghana, Kenya, Uganda, and Zambia. It said it is seeking $5 billion of contracts on the continent. The company recently announced plans to invest $36 million in Zambia.
Mota-Engil has halted plans for its initial public offering, following a failed attempt in 2014 due to deteriorating market conditions. Previously it had revealed plans to float at least 25 percent of its share capital in a public offering on the London Stock Exchange.
Shoreline group is an indigenous power solutions company with Power Generation and Power equipment manufacturing activities.
The company is one of several Nigerian producers that bought fields in the oil-rich Niger-Delta after international producers including Royal Dutch Shell withdrew amid persistent attacks on infrastructure. The company didn’t pump oil for a year following the closure of the Forcados terminal in February 2016. Flows resumed after the link was reopened in June last year.
Mota-Engil is a Portuguese group in the sectors of civil construction, public works, port operations, waste, water, and logistics.
The group comprises of 228 companies within three major business areas – Engineering and construction, Environment and Services and Transport concessions – operating in 21 countries through its branches and subsidiaries.