Larsen & Toubro is poised to bag a Rs1,500-crore ($274m) road project in Abu Dhabi with a local partner as part of its push for overseas project work.
India’s Economic Times reported that a joint venture between L&T and the UAE’s Delma Engineering had emerged the best bidder for the Abu Dhabi Department of Transport’s project for widening of Mafraq to Al Ghweifat highway, citing a senior Delma executive.
“We are well placed in the bid for the project, but we don’t want to speculate until we officially get the project,” added SN Subrahmanyan, director & senior executive vice-president (construction) at L&T in comments published by the paper.
If successful, the road contract would follow L&T’s deal from Abu Dhabi Airports Company to develop the Midfield Terminal Complex – an airside construction project which was announced earlier this week and is worth about $275m.
“We are currently executing the Salalah airport expansion project in Abu Dhabi and see more prospects in the Middle East,” Subrahmanyan was quoted as saying.
The paper added that officials may award the road project in the next 45 days, and the project would be executed over 30 months. The L&T Delma JV is bidding for two more road projects in Abu Dhabi.
To beat the slowdown in domestic infrastructure sector, L&T has increased its thrust on overseas business, particularly in the Middle East.
The $13.5bn conglomerate currently derives over 80 percent of its sales from the domestic market. Middle East, its key international market, accounts for around 15 percent of the total sales.
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