Afcons Infra client terminates EPC contract for road in Gabon over dispute
This story was originally published at 19:11 IST on 24 February 2026
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MUMBAI – Afcons Infrastructure Ltd.'s client Socit Autoroutiere Du Gabon has terminated an engineering, procurement, and construction contract for a national road in Gabon, Africa. It terminated the contract after differences arouse between the two companies over the remaining work and pending payments.
Socit Autoroutiere, an investment subsidiary of France-based Meridiam, had been given a 30-year concession by the Republic of Gabon for the 828-km long national road. Afcons got the contract in 2020 to build 117 km of this road for just over 113 million euros (INR 12.10 billion). Afcons said it had completed nearly 94% of the work by the end of 2025.
"The company believes that the termination by the Client is inconsistent with the contractual terms and applicable law," Afcons said in an exchange filing Tuesday. "The company continues to pursue its contractual and legal remedies."
Due to the dispute, Afcons initiated arbitration proceedings at the International Chamber of Commerce, the company had said in January. Further, Socit had in January invoked bonds of 17.85 million euros related to Gabon project. ICICI Lombard Inusurance had given surety for the bonds on behalf of Afcons.
For the quarter ended December, Afcons reported consolidated net profit of INR 970.90 million on revenue of INR 29.76 billion. Tuesday, its shares closed at INR 308 on the National Stock Exchange, down 1.6%. End
Reported by Anshul Choudhary
Edited by Akul Nishant Akhoury
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