Fluence Corporation expands African footprint with ‘landmark’ Ivory Coast Government contract

Wastewater treatment company Fluence Corporation (ASX: FLC) has expanded its footprint in Africa after securing a €165 million contract with the Ivory Coast Government.

In what it describes as a “landmark” deal, Fluence will supply and install a 150,000 cubic metres per day surface water treatment plant near the Ivory Coast’s largest city Abidjan.

Under the turnkey contract, the completed plant will treat Lagune Aghien water, which is Ivory Coast’s largest freshwater reserve.

The water is known to be dense with algae and other contaminants and it is expected the treated material will meet the fresh water needs of Abidjan inhabitants which has a population of 4.7 million.

“This substantial contract award is testament to Fluence’s reputation as a global leader in water treatment technology able to deliver optimal end-to-end custom engineered solutions,” Fluence managing director and chief executive officer Henry Charrabe said.

He added the contract would also enhance the company’s reputation with other world governments as a company that can solve water, wastewater and reuse treatment challenges.

Contract details

The contract with the Ivory Coast Government charges Fluence with water intake, treatment and piping as well as building requisite infrastructure.

According to Fluence, the new plant will include Fluence’s proven technologies and knowledge including separation and membrane systems, advanced oxidation, biological filtration and sludge treatment capabilities.

Abidjan’s growing population is in “urgent need” of reliable and potable water.

“This project is of key importance for the city of Abidjan and the country as a whole,” Ivory Coast’s Minister of Water, the Honourable Laurent Tchagba explained.

“We are pleased with the deep expertise of the Fluence team, not only for developing a solution for this source of water and arranging export credit financing for the project, but also for its capability in executing an infrastructure project of this magnitude that is critical to the future growth of Ivory Coast,” Mr Tchagba added.

As part of the contract, Fluence is in advanced discussions to secure third-party financing on behalf of the Ivory Coast Government via a loan from Israel Discount Bank.

Financing is expected to be bedded down during the third quarter of this year, with the plant pencilled in for completion 24 months after.

Fluence anticipates the contract will add US$20 million to its 2019 revenues, with US$80 million expected in 2020 and the remainder of the contract value to be realised in 2021.

The news sent Fluence’s share price rocketing almost 20% on market open before settling at $0.377 mid-morning – up 14.24%.