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Abengoa, ACS and Sacyr Vallehermoso increase the capacity of two desalination plants in Algeria

June 8, 2006

Madrid, June 8, 2006. - The Spanish Groups Abengoa, ACS and Sacyr Vallehermoso have signed the financing contract for the design, construction, financing and 25-year operation of the Beni Saf seawater desalination plant, in Algeria. The 150,000 cubic meters per day production capacity project had originally been awarded to the consortium in 2004. Last April, the enlargement of the plant to 200,000 cubic meters per day was agreed following negotiations with the Algerian Government and over the last few days, the project and operation financing contracts have been signed.

In addition, the consortium has also successfully negotiated the enlargement of the Temclem-Hounaine desalination plant from 150,000 cubic meters per day to 200,000 cubic meters per day. The financing contract for this project is expected to be signed in September.

Back in 2004, the Geida Consortium, formed by Befesa and Codesa, both from the Abengoa Group; Cobra-Tedagua, from ACS; and Sadyt, from Sacyr Vallehermoso, was awarded the construction and 25-year operation contract for another desalination plant at Skikda, in Algeria. This plant is currently under construction.

Once the three desalination plants, representing an overall investment of 460 million dollars, are operative, the Spanish consortium’s installed desalinated water production capacity in Algeria will be 500,000 cubic meters per day, to be used to provide water to a population of more than 2,500,000.

Earnings from water sales from the three plants over the 25-year operation thereof are expected to be in excess of 2,850 million dollars. The Algeria Government has an ambitious desalination program established to alleviate the country’s water shortage. The short-term objective is to reach one million cubic meters of desalinated water per day, of which Geida will produce half.

The company Expansión Exterior, in which the ICEX and the BBVA have an interest, is acting as financial adviser in the three operations.

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