The share price of Fluence Corporation Ltd [ASX:FLC] has made significant ground this morning after the company announced it had signed a €165 million contract. At time of writing, the share price is up 4.5 cents to $0.375.
Fluence Corp is provider of decentralised water, wastewater treatment and reuse solutions for both municipal and industrial applications across the world.
Fluence Corp’s share price upon contract details
The wastewater treatment provider announced this morning it had entered into a contract with the Federal Government of Ivory Coast to provide portable water for the country’s largest city, Abidjan.
The commercial agreement is said to be worth €165 million, with the contract expected to support up to US$20 million revenue in 2019, US$80 million in 2020, with the remainder in 2021, subject to financial close and project commencement.
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The agreement will see FLC supply a 150,000 cubic meter per day surface-water treatment plant. The plant will treat water from Lagune Aghien, Ivory Coast’s largest freshwater reserve near Abidjan, to help meet the fresh water needs of the country’s largest city.
The contract is conditional upon the arrangement of export credit financing, which Fluence is in the process of finalising.
Fluence Corp’s contract subject to financial close
Fluence Corp’s new deal hinges on whether the project can obtain appropriate financing. Currently, the company has discussions to arrange third party financing for the Government of Ivory Coast via a loan from Israel Discount Bank.
The project also has the support of the state of Israel through its Export Credit Agency (ASHRA).
Following Financial Close, which is expected to occur during Q3 2019, construction of the Plant will then commence, with completion occurring within 24 months.
The company also stated it had been invited to bid for an operating and maintenance contract, which could provide further recurring revenue but did not disclosure further information.
For Money Morning
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