Shikun & Binui Holdings Ltd., controlled by Shari Arison and managed by Yuval Dagim, will build a new airport in Uganda. The company today reported to the Tel Aviv Stock Exchange (TASE) that an agreement between its SBI subsidiary, which is responsible for the group's contracting activity, and the Ugandan government has entered into effect.
Construction of the airport, which is being built in order to support development of the oil industry in the region, is scheduled to take three years in rural territory in the oil drilling area near the city of Hoima and Lake Albert in northwestern Uganda.
The price for the project is estimated at $309 million, and is designated for payment during the construction period. UK ministerial department UK Export Finance (UKEF) and a commercial bank are financing the project. SBI has received an advance amounting to 10% of the project's price.
Work on the project includes building 3.5 kilometers of takeoff and landing runways, development and drainage work, asphalt, concrete, electromechanical work, navigation and communications systems, construction of a terminal building for cargo, a control tower, and other residential and service buildings.
Shikun & Binui adds, "To the best of the company's knowledge, the Ugandan government is planning to qualify the airport as an international airport serving passengers that will be the country's second largest airport."
Most of Shikun & Binui's activity in Africa takes place in Nigeria, where there has been great upheaval since 2015, following the steep downturn in oil prices that caused a share devaluation in the local currency, the naira, and a halt in projects in the country for a prolonged period.