Nextcom wins the tender of the Accountant General’s Division at the Ministry of Finance to build communication infrastructure for government ministries and institutional bodies with an estimated projected revenue of NIS 175 million
In the company’s estimation, based on the Accountant General’s Division assessment and past data, the contract is expected to generate Nextcom annual revenues of approximately NIS 25 million; The works will begin immediately.
The strategic tender win creates a long-term business horizon for continued growth in the communications sector for the coming years.
Nextcom Group, which specializes in the planning, construction and maintenance of infrastructure and solutions for the communications and renewable energy sector, announced it has been awarded the tender by the Accountant General’s Division for the establishment of passive communications infrastructure for government ministries, including the Prime Minister’s Office. The strategic win carries a revenue potential of approximately NIS 175 million over the next few years.
In the company’s estimation, based on past data from tenders published by the Accountant General’s Division in the field of passive communication infrastructure, the expected annual income for the company from the provision of services is approximately 25 million shekels. With the main preconditions having been met, works will commence immediately.
According to the agreement, Nextcom will be responsible for the purchase, supply, and installation of passive communication equipment in government offices, governmental institutions, and Institutional Bodies. In this framework, Nextcom will carry out work for a long list of institutional entities including hospitals, the Israeli Tax Authority, and the National Insurance Institute, among others.
The duration of the contract is three years, with an option for the Accountant General’s Division to extend it by another four years. Historically, winners of the tender for the Accountant General’s Division have been offered to exercise the extended option period. Thus, the company anticipates it will perform all the work within the agreement’s framework over a 7-year period.
In addition to the systems and services it will provide, the Accountant General’s Division of the Ministry of Finance may also procure from Nextcom warranty services for the systems it purchases, for a period not exceeding 6 years from the date of installation of the relevant system at the customer’s premises.
NextCom’s activity in the communication sector has shown revenue growth of approximately 7% in the first nine months of 2022, due mainly to an increase in the scope of projects for fiber-optic cable installation. At the same time, the company continues to focus on increasing its activities in renewable energy through the initiation and implementation of significant large-scale solar projects. Within this framework, in recent years, its subsidiary Nextcom Energy has been involved in the construction of solar roofs, and multi-million shekel solar farms and floating farms on behalf of entrepreneurs in the energy market.