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Abengoa, ACS and Sacyr attain financial closure for their third desalination plant in Algeria

In Algeria, on May 5, the Spanish Groups, Abengoa, ACS and Sacyr Vallehermoso, operating under the Geida consortium, signed the financing contract with Credit Populaire d’Algerie (CPA) to develop the construction project for the third seawater desalination plant they are to build and operate in Algeria.

The investment required to develop the Tlemcem Honaine plant, to be built in the vicinity of the city of Oran, in the western region of the North Africa country and very close to the border with Morocco, is 230 million dollars. It is the third finance project to be arranged in Algeria with a local bank. The construction works will be completed in the final quarter of 2009.

Back in 2005, the GEIDA consortium formed by the companies Befesa, from Abengoa; Cobra Tedagua, from ACS; and Sadyt, from Sacyr Vallehermoso, was awarded the construction and twenty-five year operation concession contract for the Tlemcem Honaine desalination plant that will, through the utilization of a reverse osmosis system, produce 200,000 cubic meters of drinking water a day and supply a population of 750,000.

In 2004, this same consortium was awarded the construction and operation contracts for two desalination plants located in Skikda and Oran. Both plants are currently under construction. Upon completion, these facilities will be Algeria’s largest desalination plants and will also be among the world’s largest reverse osmosis system production capacity plants.

With the three desalination plants, that represent a global 475 million dollar investment, the Spanish consortium’s overall installed production capacity in Algeria will be 500,000 cubic meters a day, which will serve to provide drinking water for a population of three million.

Over its twenty-five year operation, revenue for water sales from the Tlemcem Honaine plant is expected to be more than 800 million dollars, while sales from the Skikda and Oran plants will near the 1,340 million dollar figure. The Algeria government is developing an ambitious desalination plan to mitigate water scarcity in the country. Its short term objective is to reach one million cubic meters of desalinated water a day.