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Befesa to construct the first Spanish desalination plant in China

December 20, 2006

Madrid, December 20, 2006. – Today, Befesa, the parent company of Abengoa’s Environmental Services business unit, and the Municipality of Qingdao, in China, have established a joint venture in which the participation will be 70 and 30 percent, respectively, to design, construct and operate a seawater desalination plant to be located in the aforementioned city. The desalination plant, utilizing reverse osmosis technology, will be capable of producing, during a first phase, 30,000 cubic meters of industrial and potable water per day. This could be upped to 100,000 cubic meters in a second phase. Befesa will be exclusively responsible for plant construction, valued at around 54 million euro, as well as the operation thereof for twenty-five years.

The city of Qingdao, with a population of around eight million, located to the extreme south of the Shandong Peninsula, on the banks of the China Sea, is the main destination for home tourism and will host the 2008 Olympic Games Sailing Competition. Its aim is to become an "excellent" water management city and it has therefore constructed an oceanographic center, a first class yacht club and now, thanks to Befesa, the first seawater desalination plant.

According to Befesa’s chairman, Javier Molina, "this contract is an important milestone for Befesa, not only because of it being Befesa’s first contract in China, but because, in addition, it is going to signify the construction of the first Spanish desalination plant in said country."

Abengoa is permanently established in Peking since 1997 and has executed projects in Chinese regions since its implantation more than seventeen years ago, when it began by providing information technology solutions. This project will mean the company’s commencement of new activities in the area; in this case, in the desalination sector.

Befesa specializes in the design, construction, operation and maintenance of large environmental facilities in the desalination sector. This is an activity it has been conducting for more than twenty years and its overall installed capacity exceeds a million cubic meters of water per day, which enables water supply to a population of more than 4.8 million. Befesa is the leading company on the home market in this field and a noteworthy reference on the international market. It is a listed company and closed the 2005 financial year with treasury stock of more than 397 million euro and sales of 402.4 million euro. (

Abengoa is a technology company that applies innovative solutions for sustainable development in the infrastructures, environment and energy sectors. It is a listed company with treasury stock of 2,061 million euro (19/12/2006) and is present in more than seventy countries where it operates through its five Business Units; Solar, Bioenergy, Environmental Services, Information Technologies, and Industrial Engineering and Construction. (

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