Afcons Infrastructure announced that its private client in Gabon, SOCIÉTÉ AUTOROUTIERE DU GABON (“SAG”), has issued a formal notice to terminate the EPC contract for the rehabilitation of National Road NR1. This contract, valued at approximately EUR 113.03 million, is nearly 93.47% complete as of December 31, 2025. Afcons maintains the termination is inconsistent with the contract terms and intends to pursue all legal remedies, asserting the dispute will not materially impact its overall business outlook.
Client Issues Termination Notice for Gabon Road Project
Afcons Infrastructure Limited has formally disclosed the issuance of a termination notice by its private client, SOCIÉTÉ AUTOROUTIERE DU GABON (“SAG”), concerning the EPC contract for the design, construction, rehabilitation, and upgradation of National Road NR1 in Gabon. This project, covering approximately 117 km, was originally valued at around EUR 113.03 million.
Project Status and Completion Level
The company highlighted significant progress on the project, noting that major portions, totaling approximately 93.47% as of December 31, 2025, have already been completed and opened to traffic nearly two years prior. The remaining work is currently limited to certain balance portions that are awaiting necessary land handover procedures.
Company Stance and Business Impact
Afcons firmly believes that the Client’s termination action is inconsistent with the contractual terms and applicable law. Consequently, the Company confirms it will continue to pursue all available contractual and legal remedies to resolve the dispute. Crucially, management asserts that this project-specific dispute will not impact the Company’s overall order book, operational capability, or future business outlook. The termination is not expected to cause any material adverse effect on ongoing operations or the execution of other active projects.
Afcons assures the stock exchanges that it will provide updates on any material developments regarding this matter going forward.
Source: BSE
