Engineering, procurement and construction (EPC) group Punj Lloyd has entered into a joint venture with Libya's Public Works Company Tripoli.

Punj Lloyd will hold a majority 60-per cent stake in the joint venture that will execute a Rs1,311- crore contract for the execution of utilities in Souk Al Juma, Tripoli, Libya.

The contract, awarded by Libya's Housing and Infrastructure Board, is scheduled for completion in 40 months.

The scope of the  project includes engineering, procurement, construction and commissioning of infrastructure networks, water-sewerage-storm water mains and branch lines, roads and other facilities for Souk Al Juma.

With 60 per cent of the order values of both these Tripoli infrastructure orders, the order backlog for the Punj Lloyd Group on consolidated basis, as of September 2008, has gone up to Rs23,952 crore.

"Libya is a key market for Punj Lloyd and the group plans to expand its presence in the promising business environment of the country," said Atul Punj, chairman, Punj Lloyd Group.

"Infrastructure renewal, modernisation and development play a large role in Libya's progress and we are proud to be a part of this process. This further establishes our global capabilities," he added.

The new project comes close on the heels of a Rs1,050-crore mega contract the group won early this month to upgrade the infrastructure of Arada, an existing township in Tripoli. 

Punj Lloyd bagged its first contract in Libya in August 2006 for the engineering, construction and procurement of oil and gas projects for the Sirte Oil Company. The $290 million project, the group's single largest order win then, helped the company extend its presence in the African continent.