“IIPL Laos Pte Ltd, Singapore, a wholly-owned subsidiary of the company, has entered into a contract for rehabilitation and development works of National Road No 1 with a length of 165 km in the People’s Democratic Republic of Laos,” said IL&FS Transportation in a filing to the BSE.
The contract has been awarded to a consortium in which IIPL Laos Pte Ltd is the lead manager, having 90 per cent stake, it said in the filing.
The company further informed that consortium period of the project is 42 months at an estimated cost equivalent to USD 165 million.
The payment for the contract is committed from the government of Laos and is payable based on milestones over a period of 7 years of which 60 per cent is payable during the construction period, it added.
Boosted by the development, shares of company were up 3.23 per cent to trade at Rs 119.90 apiece on the BSE at 15:20 hour.