$250m deal for Solel Boneh

Solel Boneh International, a subsidiary of Israel’s largest constructions concern – Housing & Construction Holdings Ltd., has completed talks with Romania’s National Highway and Roads Company (CNADNR) over a $250m contract, for the construction of the Focsani-Ojdula-Targu Secuiesc section of DN2 (National Road 2), according to the Israeli publication The Jerusalem Post.

“Solel Boneh International will be in charge of the design, construction, financing and maintenance of 120 km of road over a period of 14 years. A contract has been signed with the Romanian roads authority (CNADNR, the former AND), pending approval from the Romanian government,” reads the Israeli publication.

Sources with the Romanian Transportation, Constructions and Tourism Ministry specified that the deal is in the stage where “negotiations are about to be concluded and the contract, to be signed by early next year, will then be launched”, with the value of the contract standing at 213.4 million euros (250 million dollars).

“Solel Boneh wants to kick-start works next spring, with the operations to last three years. The works will be carried under a public-private partnership and this is the first road and highway contract the Israeli company has won in Romania,” the above-quoted sources stated.

In this context, the Israeli are to handle the project financing, its construction and secure its maintenance over the concession period. The representatives of Solel Boneh International (SBI) in Romania had issued no comments by the time of going to print.

The company has thus landed its second-largest transaction on the Romanian market, after signing a $220 million contract several years ago, for a water supply project in the rural areas.

Solel Boneh is also interested in the construction of motorways. Thus, it has entered a race that has so far been won by Bechtel US), Vinci (France), Strabag (Austria), Ashtrom-Roichmann (Israel), Astaldi (Italy) and Max Bog (Germany).