These are the first contracts the company has won in Algeria, after receiving work from Iraq and Gabon, according to ZF information.
“There is money for construction [projects] in countries like Algeria, where a liter of gas costs 10 cents. I don’t know whether it’s better or worse in Algeria economy-wise than it was five years ago when the crisis started, but it surely is not as bad as in Europe (as far as construction investments are concerned i.e.),” Diaconu said.
The public housing contracts are worth some EUR70 million together and Delta ACM 93 is also supposed to build the necessary infrastructure (streets, sewage, water supply systems etc.) for which it should collect another 20% or 30% of the contract value or EUR15 million to EUR20 million, according to ZF calculations.
Each public housing apartment that Delta ACM will build will cover 60 to 70 square meters, which means cost per square meter should stand at EUR360 to EUR420, ZF has calculated.
Gross construction cost (which does not include permit securing, design and land costs etc.) in the housing sector in Romania stands at EUR430 to EUR480 per square meter, according to project and cost management firm Vitalis Consulting. The data for Romania do not take into account the type of apartment built and only show the average price.
Delta ACM 93 is one of the companies that has chosen to expand abroad in the last few years driven by the about 40% decline of the local construction sector during the crisis.
(English version by Loredana Fratila-Cristescu)