Market
Nigeria is one of the largest producers of oil, a resource that accounts for almost the entire production capacity of the country. The drop in crude oil prices engendered a wide-scale economic crisis in the last two years, exasperated by internal strife between different political and tribal fractions, which has limited once again the country’s ability to meet its cash requirements and encourage development.
The following table shows the amounts involved in the main contracts in place at the reporting date:
| Project (Share in millions of Euros) | Residual backlog | Percentage of completion |
|---|---|---|
| Cultural Center | 252.4 | 38.3% |
| District 1 | 204.8 | 13.2% |
| Adiyan | 137.1 | 42.5% |
| Suleja Minna | 97.4 | 33.9% |
| Other | 127.3 | |
| Total | 818.8 |
Nigeria Cultural Centre and Millennium Tower
The project for Nigeria’s capital, Abuja, includes construction of a 183 m-high tower, a cultural centre with an auditorium, museum and hotels, a square with an underground two-storey car park and a large arcade. The customer is the Ministry of Federal Capital Territory.
The contract is worth roughly €415 million and the Group’s share is 100%.
District 1
The project consists of road works and floodwater and wastewater drainage works and the installation of an electricity grid and water network in Abuja’s residential area on behalf of the customer, Ministry of Federal Capital Territory.
The contract is worth roughly €236 million and the Group’s share is 100%.
Adiyan Waterworks Phase II (Adiyan)
The project consists of the construction of a water treatment plant with a capacity of 320,000 cubic metres/day, intended to meet Lagos population’s water needs. The customer is Lagos State.
The contract is worth roughly €238 million and the Group’s share is 100%.
Suleja Minna
The project entails doubling the carriageway of the Suleja Minna road, one of the country’s main motor backbones which connects Abuja to the north west. The customer is the Federal Ministry of Works. The contract is worth approximately €147 million and the Group’s share is 100%.
Outlook for 2016
The projects on which the Group is working in Nigeria are an absolute priority for the country’s infrastructural development and range from road and water works to civil construction. Maintenance work is being carried out on components and parts of the various contracts completed to date, except for the Adiyan project, for which the civil works are slated for completion by year end (more information is available in the paragraph on country risk in the section on the “Key risk factors and uncertainties”).