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DRA Global confirmed as preferred EPCM contractor for Colluli

Highlights:

  • CMSC has confirmed DRA as the preferred EPCM contractor for Colluli
  • DRA is a high quality multi-disciplinary global Project Management and Engineering group with strong African experience and EPCM delivery capability
  • Critical project execution milestone
  • The EPCM contract is a requirement of potential debt providers

Global engineering, project delivery and operations management group, the DRA Group (DRA) has been confirmed as the preferred Engineering, Procurement, Construction & Management (EPCM) provider for the Colluli Potash Project (Colluli, or the Project), subject to completion of detailed contract terms. The Project, located in Eritrea, is owned by the Colluli Mining Share Company (CMSC) on behalf of Danakali Limited (Danakali). The confirmation of DRA as preferred EPCM contractor for Colluli represents another critical milestone for the Project, reinforcing that Colluli is execution ready.

DRA will be responsible for all aspects of design, project management, procurement, construction management and supervision as well as commissioning of the complete process plant and associated infrastructure, including provision of all temporary construction facilities. DRA will also be responsible for awarding major contracts such as early works, earthworks, structural, mechanical, piping, electrical and instrumentation works, laboratory and permanent camp (including life support, freight and logistics).

dra-global-confirmed-as-preferred-epcm-contractor-for-colluli

Overview of the Colluli EPCM phases1

Danakali, on behalf of CMSC, conducted a competitive EPCM tender process and evaluation for the Project based on the Front End Engineering Design study. The tenders were assessed by Danakali and multinational engineering consultants Turner & Townsend against strict, established evaluation criteria. DRA was the standout in a premium field of global engineering groups.

Danakali Executive Chairman and CMSC Director, Seamus Cornelius said: “We are very pleased to confirm DRA as the Project’s preferred EPCM contractor, a global engineering firm of strong repute with extensive experience operating in Africa. We look forward to working with DRA in finalising the last few project sign-off gates and to commence project execution. Danakali and CMSC continue to achieve critical project and corporate milestones on the way to construction, commissioning and production at

Colluli.”

“Awarding the execution of this important Potash project on the African Continent to DRA is testament to DRA’s position as the preferred technical partner for projects in Africa” said Chief Executive Officer of DRA Global, Wray Carvelas. “DRA is honored to have been selected by the Colluli Mining Share Company for the execution of the project. We have put together a very strong team for the successful delivery of the project and both our Project Manager and proposed in-Country Manager have strong experience in delivering projects in Eritrea.”

The EPCM contract is a requirement of potential debt providers and hence is pivotal to the debt fundraising process.

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