This is a simply massive project (estimated capex ~US$7.5bn for both Phase 1 and Phase 2 - I can't recall LYL ever getting involved in anything bigger), and the prominent role LYL has been appointed to play (coordination of all sub-consultants into the feasibility study) is somewhat of a statement about how LYL's expertise is perceived in the market.
Just the feasibility study and the basic engineering will keep LYL busy for the next 2 years, and then there's the 3-year, Phase 1 construction (preliminary capex estimate = US$4bn), during which LYL is sure to be involved to some extent in an EPCM role.
So this is a major win for LYL, one which will bring in at least the stated $55m for LYL over the next two years, and then very possibly a further $200m or $250m over the subsequent 3 years, in terms of detailed design and EPCM work.
And then after that there's the basic engineering and design work for Phase 2 of the project, as well as the potential construction management revenues that might arise from that
This project alone could very well underwrite LYL's dividends for the next 6 or 7 years.
(Of course, Pakistan is not an easy place to do business these days, so LYL management will do well to make sure they price their work with the required prudential buffering/padding/margin of safety. But I don't think they need me to tell them that.)
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