Aqualia Capital

completed

The Project involves an IFC equity investment in Aqualia Capital (the “Company”), an investment holding company which the Sponsor intends to incorporate to acquire, build, own and operate water treatment and transmission and wastewater treatment projects across emerging markets. Subject to the proposed IFC investment and after obtaining relevant approvals, Aqualia S.A., a leading Spanish water production and management company and the key shareholder in Aqualia Capital, will contribute the two desalination plants it currently owns in Algeria (one which has started operations recently, Mostagenem, and another in Cap Djinet – which is under construction); two water treatment and transmission projects in Mexico (Queretaro II which recently began operations and one near Sao Luis de Potosi which will soon begin construction); and one sanitary wastewater treatment plant under construction near the city of New Cairo, Egypt.The Company is expected to continue to leverage the Sponsor’s resources for the development of water projects, including in relation to all environmental and social aspects of the projects, until the time that each project reaches financial close, at which point it will be transferred to the Company. Given Aqualia’s expertise in the construction and operation of water projects, it is expected that the Company will largely contract these activities for each project with Aqualia itself or affiliates of the Company. Therefore, the review of Aqualia’s E&S performance is relevant, not only as providing insight into the track record of the projects to be contributed to the Company but also because the Company will continue to use the Sponsor’s E&S resources and will apply Aqualia’s E&S policies and procedures, as relevant to each project.