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01.27.2005

Befesa awarded the enlargement, modernization and consolidation contract for the Irrigation Area of the Sur-Andévalo User Community, in Huelva

Madrid, January 27, 2005. - Befesa Medio Ambiente, Abengoa’s lead company in the Environmental Services sector, has, through its subsidiary Construcción y Tecnología Ambiental, been awarded the 24-million euro contract for the enlargement, modernization and consolidation works for irrigation area of the Sur-Andévalo User Community.

The current irrigated surface area of the Sur-Andévalo User Community exceeds 5,000 hectares, with 375 plots. The enlargement of the irrigation area will enable the irrigation of a further 4,000 hectares on which there will be another 205 plots. The entire irrigation comprises the municipal districts of Castillejos, Gibraleon, Cartaya and San Bartolome de la Torre, in the province of Huelva.

The object of the project is to build the infrastructure required to rationally carry out the 4,000-hectare enlargement, maintaining the community’s existing exploitation and functional system, as well as its interconnection with the current irrigation area to achieve a totally homogenous area with the same functioning and exploitation characteristics.

Moreover, the intention is to consolidate current irrigation by improving some installations to reduce energy consumption and increase the area’s overall security as regards water reserves, pumping alternatives and the interconnection of reservoirs.

For this purpose, among other things, more than 45 kilometers of 400 to 1,300 mm diameter piping will be installed for the primary and secondary networks, and seven new storage reservoirs, with a total capacity of 746,000 m3, and three pumping stations will be built.

According to Befesa’s chairman, Javier Molina, "this project is to achieve the socio-economic consolidation of, what was up until recently, a very poor region and which is now a model to be copied by other depressed areas of Andalusia".

Befesa will also commission the infrastructure required to centralize command and control of the entire irrigation area, whose current degree of automation is very low, which results in the risk of the loss of irrigation hours, water or improper functioning and which, therefore, is more costly to operate.

"Through these works to optimize water use and management, we are guaranteeing considerable water saving which is essential for agriculture to be competitive. Moreover, this contract consolidates Befesa’s traditional leadership in irrigation activities", said Mr. Molina.

Befesa, Abengoa’s listed Environmental Services, provides environmental services for industry and the construction of environmental infrastructures. Befesa closed 2004 with share capital in excess of 393 million euro.

Abengoa, a listed industrial and technology company with share capital in excess of 657 million euro (31/12/2004), provides solutions for Sustainable Development, the Information and Knowledge Society, and the Creation of Infrastructures. It currently operates in four large activity sectors: Bioenergy, where it is the world’s no. 2 bioethanol producer; Environmental Services, where it is European leader in segments of the industrial waste market; Information Technologies, where it is one of the main role players at international level, with operations in Europe, America and Asia; and Industrial Engineering and Construction, where it is leader in Spain and Latin America. (www.abengoa.com).