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01.23.2007

Befesa closes financing arrangements for India's largest desalination plant, in the city of Chennai

Madrid, January 23, 2007. - Befesa, the parent company of Abengoa’s Environmental Services Business Unit, together with its Indian partner IVRCL Infrastructures & Projects, have completed the financing arrangements under the DBOOT (Design, Build, Own, Operate and Transfer) modality, for the design, construction and operation of Minjur seawater desalination plant to supply the city of Chennai in the State of Tamil Nadu (India). The capacity of the plant, for which the contract was awarded in August 2005, will be 100,000 m3/day and it is scheduled to commence water production during the third quarter of 2008. Befesa will be exclusively responsible for the turnkey construction of the plant and the operation thereof over twenty-five years.

The investment for the development of Minjur plant is 91 million euro, of which 77 percent will be non-recourse financed to the shareholders of the consortium by a syndicate of local banks lead by Canara Bank. Estimates are for earnings of more than 600 million euro from the sale of water to the consortium from Minjur plant over its 25 operational years.

According to Befesa’s chairman and CEO, Javier Molina, “this project will enable Befesa to strengthen its presence in the eastern market through the construction of the largest desalination plant in India, which will supply water for a population of more than 500,000, and which is also one of the most important projects of the State of Tamil Nadu”.

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 2006 financial year with treasury stock of more than 693 million euro. (www.befesa.es)

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 2,607.34 million euro (23/01/2007) 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. (www.abengoa.com).