The Israeli construction firm Shikun & Binui (TASE: SKBN) is continuing to move its infrastructure-related operations to the USA. The Pennsylvania Department of Transportation has given permission to a development group that includes Shikun & Binui to construct 6 bridges across the state. The project’s overall cost is close to $2.25 billion.
The group is 40% owned by Shikun & Binui. According to the company, the project’s profitability rate will be 10%, or about par with that of ventures in a related industry. Additionally, one of the project’s bridges will be built at a cost of $250 million by the subsidiary Infrastructure & Industrial Constructors USA, which manages Shikun & Binui’s activities in the field of infrastructure and civil engineering in the USA.
According to estimates, the project will bring approximately 1.5B dollars in direct revenue for the construction company, with Shikun and Binui receiving 50% of this total. The concessionaire company will take care of the bridges’ maintenance and operation for 30 years in exchange for annual payments covering the cost of the project’s funding and construction.