Amsterdam, June 3, 2015 - Kardan N.V. (‘Kardan’ or ‘the Company’), active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that today its indirectly held subsidiary Tahal Consulting Engineers Ltd. signed an agreement with the government of the State of Karnataka in India to design, build and operate a water supply system to provide treated potable water to approximately 131 villages in the Gadag District (‘the Agreement’ and ‘the Project’, respectively). The total compensation for the Project is approximately EUR 67 million (4.7 billion Rupees). This is the first project of this type and scope carried out by Tahal in India.

The Project, which is a Turn-Key project, comprises 2 phases: the design and construction phase which is expected to last 30 months - which includes the design and construction of a water intake system, a transmission pipeline, a distribution network over 600 km, a water treatment plant and 8 reservoirs - and the operations and maintenance phase which is expected to last 60 months. Over 80% of the compensation will be paid for the first phase of the Project.
The Project is expected to supply potable water to approximately 331,000 inhabitants of the aforementioned nearly 131 villages.

Half of the funding for the Project is provided by the Central Government of India, and the other half by the government of the state of Karnataka.

A down payment of 5% of the total compensation is expected to be paid in the coming month, after which the first phase of the Project will commence.

Tahal Group International B.V. (‘TGI’), Kardan’s water infrastructure company of which it holds 98%, focuses on executing water related projects worldwide mainly through its subsidiary Tahal Group B.V. (‘Tahal’). Tahal engages in EPC (engineering, procurement and construction) and design projects, usually in the field of water supply, desalination, wastewater treatment, water resource planning, solid waste management and agricultural solutions among others.
Tahal Consulting Engineers Ltd., which has signed the Agreement described above, is wholly owned by Tahal Group BV.