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07.24.2006

Agua y Gestión awarded a 73 million euro contract to manage the water in Zafra (Badajoz)

July 24, 2006. Agua y Gestión has been awarded the water supply and treatment services contract for the municipality of Zafra. It is a 20-year concession contract that Agua y Gestión will execute under a Joint Venture with the Magenta Group and which was awarded by majority decision at the last meeting of the town council. Billing under the contract over the concession period is expected to be 73 million euro.

Agua y Gestión will be responsible for the domestic drinking water supply for some 17,000 inhabitants and also for the operation and maintenance of the municipality's wastewater treatment works and, therefore, a customer service office fitted with state-of-the-art equipment, and staffed by eleven, to enable work to be executed with the quality and efficiency the service requires, will be opened. Of note is the computerized equipment, implements and tools for installation maintenance and operation, safety and health equipment, etc.

The initial activities include the inspection of the complete supply mains network to detect leaks and minimize water losses. For this purpose, the service will be provided with state-of-the-art leak detection equipment. In addition, sectorization and mathematical modeling of the mains network will be carried out and a Geographic Information System implemented. This, together with the periodic replacing of meters, will enable thorough control of the network and the very best quality service.

The service facilities will be consolidated and improved by increasing the capacity of the Zafra well bore water supply capacity, technological improvements and in the quality of the wastewater treatment service, which will now include tertiary treatment to enable the treated wastewater to be reused for irrigation purposes.

The bid presented by the Agua y Gestión-Magenta joint venture was that which received the highest points in the improvements section, from a technical, environmental and social point of view. Of note as regards the latter are the activities to be carried out to add value to the city wall. For this purpose, the City Tourism Dynamization Plan instructions will be followed and the wall will be left visible at the Arco Cubo city gate and restored and embellished for the benefit of residents and visitors alike.

This contract is an important step forwards in Agua y Gestión's strategy. The company is ever-growing inside and outside Andalusia in the Integral Water Cycle Management sector. It is now providing services, including this municipality, for a population of more than 200,000.

Agua y Gestión, in addition to Integral Water Cycle Management; supply, treatment and purification, conducts other lines of business that, together with the aforementioned, take in all the company's services; of note the Operation and Maintenance of Infrastructures, an area in which it is currently managing several treatment plants and dams.

Agua y Gestión closed the 2005 financial year with consolidated billing of 33.9 million euro and is expected to bill in excess of 42 million euro in 2006, which would be an increase of around 23%.