Bill Gates Group Invests $1 Billion in Egypt: Orascom Construction
Bill Gates is leading a group of U.S. investors committing $1 billion for a stake in construction and fertilizer company OCI NV in one of Egypt’s largest foreign currency inflows since the 2011 uprising. The company is the first multinational Egyptian corporation, and is one of the core Orascom Group companies.
Orascom Construction is the leading international construction contractor based in Cairo, Egypt. They are the region’s largest corporation with projects and investments across Europe, the Middle East, North America, and North Africa. There Fertilizer Group is a strategic owner and operator of nitrogen fertilizer plants in Egypt, the Netherlands, the United States, and Algeria with an international distribution platform spanning Europe, North and South America, Southeast Asia and Africa.
In the past Orascom Construction was awarded a number of Department of Defense (DoD) for construction of several operational and personnel support facilities to support an air base in Egypt.
Contrack International Inc./Orascom Construction Industries, joint venture, Arlington, Va., is being awarded a $61,484,124 firm-fixed-price contract for a main operating base upgrade, Peace Vector IV, Phase III, Gianaclis, Egypt, to include construction of several additional operational and personnel support facilities to support an air base. Work will be performed in Egypt and is expected to be completed by Feb. 10, 2002. Contract funds will not expire at the end of the current fiscal year. There were 19 bids solicited on Jan. 1, 1998, and six bids were received. The contracting activity is the U.S. Army Corps of Engineers, Winchester, Va. (DACA78-99-C-0007).
Contrack International Inc./Orascom Construction Industries, a joint venture, Arlington, Va., is being awarded a $107,265,391 firm-fixed-price contract for Peace Vector VI, Main Operating Base Upgrade at Fayid, Egypt. This work consists of construction of new utility distribution systems (electric, water and signal) and a collection system (sanitary), as well as construction of a new aircraft maintenance hangar, munitions storage, a water treatment plant, housing, dining, recreation, security fencing and other aircraft maintenance facilities. The contractors will also perform rehabilitation work on airfield pavement, aircraft shelters, and numerous existing facilities; and provide utility service from the new systems to approximately fifty existing facilities. Work will be performed in Fayid, Egypt, and is expected to be completed by Dec. 26, 2003. There were 25 bids solicited on Nov. 15, 2000, and three bids were received. The U.S. Army Corps of Engineers, Winchester, Va., is the contracting activity (DACA78-01-C-0008).
Microsoft Corp. (MSFT) co-founder Gates’ Cascade Investment LLC joins Southeastern Asset Management and Davis Selected Advisers in helping fund expansion in Egyptian infrastructure projects as well as other activities. The Sawiris family and Dubai-based buyout firm Abraaj Group, which together owned 60 percent of Orascom, will take part in the tender.
“The transaction underpins genuine investor appetite to invest in Egypt,” said Nassef Sawiris, who was chief executive of Orascom and will be an executive director of OCI. “Unlike local shareholders who monitor events on a daily basis, sophisticated investors see the evolution of democracy having a long-term positive impact on the economy.”
Laura Berger, a spokeswoman for Davis Selected Advisers, declined to comment on why the firm invested in OCI.
About ORASCOM CONSTRUCTION INDUSTRIES
Orascom a leading international fertilizer producer and construction contractor based in Cairo, Egypt. We are one of the region’s largest corporations with projects and investments across Europe, the Middle East, North America, and North Africa.
Our Fertilizer Group is a strategic owner and operator of nitrogen fertilizer plants in Egypt, the Netherlands, the United States, and Algeria with an international distribution platform spanning Europe, North and South America, Southeast Asia and Africa. Our nitrogen fertilizer operations will reach 7.0 million metric tons of capacity by the end of 2012, positioning OCI among the top global nitrogen-based fertilizer producers. Our operations are also capable of producing a combined total of 1.0 million metric tons of melamine and methanol.
Our Construction Group ranks among the world’s top global contractors and undertakes large industrial, infrastructure and select commercial projects for public and private customers principally in Europe, the Middle East and North Africa.