Diaconu said he plans to invest around EUR40 million in a residential compund in southern Bucharest together with businessman Alessio Karkhi. The compound will consist of 24 blocks of apartments and 100 commercial spaces. This comes at a time when there are increasingly few construction contracts on the Romanian market.
“In Romania there aren’t a lot of investments made by the state anymore, so we have started to come up with our own projects. With the residential project we mainly address the middle class, so the homes will be cheaper,” says Florea Diaconu, who adds that the investment will be done from his own funds, “basically from the profit” of Delta ACM 93. The company last year had a net profit of EUR3.4 million.
While the Romanian construction market could see a decline this year, the rise of Delta ACM 93’s turnover will mainly come from the company’s contracts abroad, in countries such as Iraq and Gabon.
“We expect a 5% turnover increase against last year, thanks mainly to work done outside Romania. Abroad we have separate companies for the projects, but we have also helped them through Delta ACM 93,” Diaconu told ZF.
Delta ACM 93 is currently working abroad on a highway in Iraq, with the contract being worth around $66.7 million (EUR47.8 million). Delta ACM 93 also won a contract to build roads in Chisinau, the Republic of Moldova, worth around EUR6 million and this year it won an around EUR10 million contract in Gabon to build infrastructure in a residential district.
Among the contracts that Delta ACM 93 has on the Romanian market are the rehabilitation of national road DN 56 Craiova-Calafat, build the prefab part for the new subway line in Drumul Taberei district of Bucharest and an aquatic complex in Craiova, southern Romania.
Delta ACM has over the course of time won a set of contracts with the state, being a favorite for infrastructure contracts in Bucharest’s third district in 2007-2010. The contracts were awarded through negotiation, not following a tender.
(English version by Daniela Stoican)