, NAIROBI, Kenya, Jul 3 – Fountain Technologies Limited has entered into a strategic business agreement with Ferri Group, which will see the two companies jointly bid and tender for industrial and electrical projects.
The partnership will be done under a profit share agreement on a project by project basis for any amounts up to $100 million, equivalent to Sh10.3 billion per transaction.
It also gives Ferri Group the option of acquiring minority equity stake of about 30 per cent in Fountain Technologies Limited, a subsidiary of FEP Holdings, within two years time.
FEP Holdings CEO Maurice Korir says that with the Ferri Group partnership, the company is projecting additional yearly revenues for Fountain Technologies of up to $10 million by 2020.
“Through this alliance, we intend to capitalise on existing sales networks and marketing for the distribution of Ferri Group and FTL product lines, as well as increase access to International lines of credit with reputable, global financial services providers,” said Korir.
The CEO of Ferri Group, Roberto Ferri said that the agreement was designed to delight clients through support in improved product and service offering, financing and building human capital in various industrial and energy solutions.
He added that Fountain Technologies would help to reinforce Ferri Group’s brand reliability through consistent, innovative and differentiated services in all African countries where it exists.
The project has been deemed as a win-win strategy for both firms as Fountain Technologies Limited will acquire both the core and strategic capabilities required to compete effectively within the African energy and power infrastructure sector whilst Luxembourg-based company will be on a solid path to initially acquiring new clients and subsequently deepening their presence in the sector.
Fountain Technologies is presently implementing energy and telecoms infrastructure projects across the region worth over Sh2 billion.
These include Rural Electrification Authority contracts under which it was contracted to extend electricity supply to 591 public facilities and 35,460 households in 16 countries under the BADEA project. The remaining 80 per cent of the project was awarded to international companies.
The company has also secured tower strengthening projects in Tanzania worth Sh70 million and a Sh92 million project for construction of a diesel power station in Kakuma town.
Going forward, Korir revealed that Fountain Technologies Limited’s next big frontier is renewable energy in off-grid areas.