Total backlog of approximately US$56 million positions Insituform
for growth in India’s rapidly expanding
infrastructure market
Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU) has
won two new sewer rehabilitation contracts in Delhi, India, totaling
$21.1 million.
The work will be performed by Insituform Pipeline Rehabilitation Private
Limited, an Indian company and joint venture between Insituform
Technologies and Subhash Projects & Marketing Limited (SPML) (Bombay
Stock Exchange: SUBH). SPML is one of India's largest water, waste and
power infrastructure companies. The joint venture company combines the
technical expertise and globally acclaimed cured-in-place pipe (CIPP)
technologies of Insituform with the execution and marketing capabilities
of SPML.
As part of the plan to spend in excess of $1 billion to rehabilitate a
sewer system that serves a population of approximately 14 million
people, the Delhi Jal Board (DJB) issued letters of intent for the
contracts to Insituform's Indian joint venture on September 12, 2008.
Insituform is currently working with DJB on two existing projects valued
at $35.1 million that previously were awarded to Insituform.
“Insituform has and will continue to make
significant operational investments in India to safely and profitably
service both our $56 million in backlog as well as the many new projects
to be released by the DJB and other major Indian municipalities,”
said Daniel E. Cowan, Vice President, Strategic Business Initiatives for
Insituform. “Insituform is also actively
working to expand its product offerings in India so that we can
participate in a larger portion of each program.”
Combined, the new contracts involve rehabilitating 13,435 meters (8.35
miles) of medium- and large-diameter sewer lines with Insituform’s
cured-in-place pipe (CIPP), along with other trenchless and
non-trenchless work. CIPP is a jointless pipe-within-a-pipe used to
rehabilitate sewers with virtually no digging. The work will begin in
2009 and is scheduled to be completed within 24 months.
"The recent addition of substantial backlog in New Delhi is part of
Insituform’s long-term growth strategy for the
Asia-Pacific region,” said J. Joseph Burgess,
Insituform’s President and CEO.
