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March

Abengoa strengthens the Itahue-San Fernando power transmission line in Chile

March 22, 2006

Seville, March 22, 2006. - Abengoa Chile has been awarded a contract by the company Transelec Chile to strengthen the 73 kilometer, 154 kV Itahue-San Fernando voltage transmission line. The line interconnects the Itahue substation, in the Maule region and the San Fernando substation in the locality of Libertador Bernardo O’Higgins.

This new project valued at more than 8.5 million euro and scheduled for execution in more than one year and half, is part of a global plan that is being developed in Chile to normalize and ensure the electricity supply, and under which Abengoa Chile is already collaborating in the management of another two power lines.

Abengoa will strengthen the power line by installing structural reinforcements on the towers – required to increase the power of the line – the installation of provisional supports, the replacement of the 154 kV insulating system on the sections that are in bad condition, among other steps that will be taken to strengthen the line. This strenghten will allow an increase of the capacity of the line and will guarantee the electrical provision of these Chilean regions.

Noteworthy among the projects since Abengoa’s establishment in Chile in 1987 is the consortium agreement recently signed with GE Energy for the acquisition of power transmission lines. In addition, it has executed other projects for Transelec, such as the high voltage 220 kV Polpaico-Qillota line or the construction of the Charrua-Chillan line. Furthermore, it is currently constructing the static reactive compensation (STC) line at Puerto Montt substation in consortium with Abb Chile, for Transelec.

Transelec, a company in which Hydro-Quebec – Canada’s largest electric services company and one of the largest in North America – has an interest, is the owner and operator of most of the power transmission installations in Chile’s Central Interconnected System and the Interconnected North Grand System (SING), with more than 8,500 kilometers of single and double circuit power lines ranging from 66 kV to 500 kV.

Abengoa has been operating in Latin America for more than thirty years now. It is a market in which it earns 30 percent of its sales figure, with a current workforce of 4,000 and a sizeable participation in energy, installations, telecommunications and marketing, and industrial manufacturing activities in countries such as Uruguay, Venezuela, Brazil, Mexico, Peru, Puerto Rico, Paraguay, Chile and Bolivia.

Abengoa is a technology company applying innovative solutions for sustainable development in the infrastructures, environment and energy sectors. Listed with a market capitalization in excess of 1,800 million euro, Abengoa is present in over 70 countries, operating through its five business units: Solar, Bioenergy, Environmental Services, Information Technologies, and Industrial Engineering and Construction. (www.abengoa.com).



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