Baran Secures $480 Million African Water Project After Deal Reversal
Baran signed an agreement for the $480 million Phase A of a massive water carrier project in Africa, reversing a recent cancellation that caused its stock to drop 14%.
Infrastructure firm Baran has signed an agreement to execute the first phase of a massive water infrastructure project in Africa, valued at approximately $480 million, following a dramatic reversal of a cancellation notice that had previously caused its stock to plunge.
The project entails constructing a 2,000-kilometer national water carrier system in an arid African nation, designed to transport water from the Chobe River in the south to drought-stricken regions to foster economic and agricultural development. The Chobe River flows through seven countries bound by a water-sharing agreement, and the host nation currently fails to utilize its full water quota due to a lack of transmission infrastructure.
The deal's revival follows a turbulent period. Baran had previously reported a cancellation of the agreement, triggering a 14% drop in its share price. However, following meetings between company representatives and local government officials last week, the authorities rescinded the cancellation.
Phase A of the mega-project spans 110 kilometers and is valued at about $480 million. This initial stage includes securing the project's financing package, which Baran states has already been guaranteed. The engineering plan involves transporting water through a combination of pipelines and tunnels, requiring the construction of a massive river pumping station, intermediate pumping stations, and water reservoirs.
To manage logistics efficiently, Baran will establish local manufacturing plants for cement and pipes near the worksite due to the prohibitive cost of importing raw materials. Phase A is slated for completion within 24 to 30 months, though Baran noted this contract covers only the first phase, with subsequent stages yet to be secured. The entire multi-phase project is expected to take over a decade to complete.
Baran, valued at approximately NIS 382 million on the Tel Aviv Stock Exchange, is controlled by Avichay Stolero and Meir Dor. The group operates extensively in Israel across communications, transportation, and water treatment sectors, while its international subsidiary, Baran International, specializes in turnkey project management from financing to handover.
