Announcement
Driver Group plc : Contract Win
RNS Number : 2074Q
Driver Group plc
25 February 2016
Driver Group plc
("Driver" or the "Group")
Contract Win
Driver provides disputes, programme & project management and other consulting services to construction, engineering and industrial markets around the world
Driver confirms the award of a professional services contract with International Power Consortium South Africa (Pty) Ltd (IPCSA) to deliver specific project advisory and project management services for the new privately owned Saldanha gas-fired power plant. The contract is however subject to the procurement of sufficient funding for the project, the first stage of which is the securing of seed capital for the completion of a bankable feasibility study. This is not yet complete.
The project is designed to provide a comprehensive solution to ArcelorMittal Saldanha Steel to sustain its business beyond 2019. IPCSA and ArcelorMittal signed a development agreement in December 2014 in terms of which IPCSA is the project owner. The power plant will be located in Saldanha Bay, approximately 150km north of Cape Town. The Combined Cycle Gas Turbine (CCGT) power station will have an installed capacity of 1500MW with a potential to increase to 3000MW in future if required. The power plant will supply all of the power requirements for Saldanha Steel up to 250MW, while the additional electricity will be made available to support and sustain existing industry and encourage economic growth in Saldanha Bay, the West Coast District Municipality and the Western Cape Province.
Assuming funding is available Driver's services will range from transaction advisory, feasibility, strategic project advice and project management through construction and completion. Securing seed capital for the completion of a bankable feasibility study has already commenced. Initial findings indicate that this study will conclude a positive feasibility for the project's successful execution. The fee for Driver will not be material in the current financial year but subject to funding the benefits will be felt in subsequent financial years.
Dave Webster, CEO of Driver, stated "I am delighted that our South African team have been able to secure the appointment of professional services for such a strategic and high profile project. This appointment further strengthens our credentials in the development and project management of large infrastructure schemes."
Enquiries:
Driver Group plc
Dave Webster, Chief Executive Tel +44(0)1706223999
Damien McDonald, Group Finance Director Tel +44(0)1706223999
Panmure Gordon (UK) Ltd
Dominic Morley / James Greenwood Tel +44(0)2078862500
This information is provided by RNS
The company news service from the London Stock Exchange
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