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Water treatment player Fluence (ASX:FLC) has got the nod from Ivory Coast’s government to get building a water treatment plant. Shares in the smallcap jumped 2.5% to 8.2cps in turn heading into the second hour of Tuesday trades.
Valued at €48.4 million (A$77.8M), the company received a notice to proceed (NTP) from the Ivory Coast water co-regulator ONEP.
Fluence added the addendum for the plant – called the Lagune D’Aghien Water Treatment Plant (LDWTP) – to an existing contract in recent history, and its that addendum ONEP has effectively signed off on today.
The plant has already been under construction for most of the year; today’s news relates to an NTP given to what is effectively an expansion of the existing scope of works.
(For all intents and purposes, in the Ivory Coast, a NTP is basically a works approval.)
Fluence wrote on Tuesday it can now begin works on that plant immediately, being a “critical next step to ensure increased distribution of water produced by the Plant to Abidjan.”
No commentary was offered around the guarantee of payment, which is perhaps unusual for a company operating in West Africa.
Or, if you can see it the other way, a show of confidence.
FLC last traded at 8.2cps.
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