RRP Infra Gabon projects gets funding approval from ECOBANK of Libreville and BDEAC Bank

MUMBAI: Infrastructure major RPP Infra Projects on Monday said it has received an in-principle approval from two international banks -- ECOBANK of Libreville, Gabon and BDEAC Bank, Brazaville, Congo -- for funding its Gabon Mass Housing Project.

ECOBANK of Libreville, Gabon has already sanctioned Rs 170 crore for the Rs 1,500 crore project, as funding for the first phase, the company said in a statement issued in Mumbai.

The company is in negotiations with BDEAC and expects it to be completed within a month, it said.

RPP has bagged a contract from the Ministry of Housing of Republic of Gabon for developing 10,000 houses over 36 months, over various phases on design, build, finance and transfer (DBFT) model.

"This funding will help us in mobilising resources and to speed up the project and to complete it in time. The funding is sufficient to take care of phase I of the project," RPP Infra Chairman and Managing Director Arul Sundaram said.

The cost of Phase-I of the project is estimated to be Rs 200 crore.

Meanwhile, the Gabon government has additionally offered the company various incentives such as tax SOPs, duty-free import of machinery, tools, construction materials and plant, the release said.

RPP's total order book on hand as on August 1 is around Rs 2,150 crore, which it plans to execute over the next 36 months.