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October

Abengoa will develop the El Zapotillo aqueduct project in the States of Jalisco and Guanajato, Mexico, near US$ 566 million

October 18, 2011

Seville, October 18, 2011.- Abengoa, the international company that applies innovative technology solutions for sustainable development in the energy and environment sectors, has been selected by Conagua, the Mexican Water Commission, to develop the El Zapotillo aqueduct project. The “El Zapotillo-Los Altos de Jalisco-León (Guanajuato) Aqueduct” project will carry water from the El Zapotillo dam to the city of León and the municipalities of Los Altos de Jalisco and will supply drinking water to nearly 1.5 million people in an efficient, sustainable and secure way.

The total cost of the project, which is one of the most important carried out by Conagua in recent years, is approximately US$ 566 million. National Infrastructure Fund will provide 49% of the investment, while the remaining 51% will be covered by project financing.

The engineering project that Abengoa will carry out includes the construction of 139 kilometers of large diameter pipes, pumping stations with a total installed capacity of 24,000 kilowatts, a water treatment plant with a 3,800 liter/second capacity, a 100,000 cubic meter storage tank, and a 40 kilometer distribution circuit in the municipality of León. The purpose of all these works is to treat and transport a maximum of 5.6 m3 of water/second (5,600 liters), of which 3.8 m3 (3,800 liters) will be allocated to the city of León, in Guanajuato, and the rest to municipalities in Jalisco State.

Abengoa will be responsible for the engineering project, the construction, the equipment, and the operation and maintenance of the infrastructure. The company will hold the concession for 25 years, three of which will be required to develop and start-up the project and the remaining 22 years to operate and maintain it. Total estimated revenues will exceed US$1,300 million.

Conagua highlighted Abengoa’s capacity to adapt and comply with the financial, technical, environmental and social requirements of the project, which will ensure its success, and which will contribute to the sustainability and recovery of the aquifers in the region that currently supply the adjoining districts.

Manuel Sánchez Ortega, CEO of Abengoa, expressed his appreciation to Conagua for entrusting this major project to the company, which is the “result of hard work by the extraordinary group of professionals at our Mexican subsidiary. This project will strengthen the project portfolio of the Engineering and Construction Division over the next three years and will increase the visibility of our sales in operations and maintenance activities over the next 22 years”.

Abengoa won this contract, one of the largest water projects in the current international market, thanks to more than 60 years of experience in the water sector and constructing complex turn-key projects, consolidating its leadership position in this sector in Latin America.

About Abengoa

Abengoa (MCE: ABG) is an international company that applies innovative technology solutions for sustainable development in the energy and environment sectors, generating electricity from the sun, producing biofuels, desalinating sea water and recycling industrial waste. (www.abengoa.com)

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