Ashoka Buildcon Limited (ABL) has announced the mutual foreclosure of a significant EPC (Engineering, Procurement, and Construction) project in Ivory Coast, originally valued at €18.50 million. The project involved the construction of 100 drinking water wells and the supply and installation of drinking water units across 35 villages, but has now been terminated by mutual agreement with the main contractor, Serneke International Limited (Sweden).
Project Closure
The foreclosure was formalized through a final agreement executed on September 19, 2025. According to ABL’s filings with stock exchanges, the decision was taken after careful review of the contract terms, project progress, and operational challenges.
Key Reasons for Termination
- Delays in obtaining necessary approvals
- Issues related to land availability for construction work
- Delays in receiving approvals for drawings and designs
Financial Impact
ABL has assured stakeholders that the project foreclosure will not have any adverse financial impact. The settlement between Ashoka Buildcon and Serneke International was concluded with no further obligations on either party, ensuring a clean exit from the project.
Management Statement
Manoj A. Kulkarni, Company Secretary of Ashoka Buildcon, stated:
“The Company and M/s Serneke International Limited have mutually decided to foreclose the project after considering the terms and conditions of the contract and progress made. The final closure was executed on September 19, 2025, with the contract settled and no further obligations on either party.”
Strategic Significance
This decision reflects Ashoka Buildcon’s prudent project management approach, focusing on risk mitigation and portfolio optimization. By terminating a project that faced operational and regulatory hurdles, the company maintains its financial stability while streamlining its international project operations.
Summary
- Project: EPC project for 100 drinking water wells and 35 water supply units in Ivory Coast
- Original Value: €18.50 million
- Closure Date: September 19, 2025
- Reason: Delays in approvals, land issues, and design clearance delays
- Financial Impact: No negative effect; settlement concluded with no further obligations
- Strategic Takeaway: Demonstrates ABL’s commitment to risk management and operational efficiency in its global project portfolio
The foreclosure underscores Ashoka Buildcon’s strategic approach to international projects, prioritizing financial prudence and operational feasibility while mitigating risks in challenging environments.
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