Beni Saf Water Company SpA

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Beni Saf Water Company SpA (BSWC) was awarded a 25 year build-own-operate (BOO) contract by the Government of Algeria to develop a seawater desalination plant near the city of Oran, in western Algeria. The plant was expected to supply 150,000 cubic meters per day (1.74 cubic meters per second) of potable water to approximately 750,000 people. The contract was part of the Government of Algeria’s effort to encourage private sector participation in the development of large scale desalination plants to alleviate the country’s water shortage. The Ministry of Water Resources (Government of Algeria) planned to develop 28 desalination plants (combined capacity of 1,950,000 cubic meters per day) with private sector participation. BSWC was a joint venture between the state owned Algerian Energy Company (AEC) (49%) and Geida Consortium (51%) of Spain. Geida Consortium won the rights to participate in the joint venture by bidding the lowest price (US $0.70 per cubic meter of water desalinated) in an international competitive tender conducted by AEC in May 2004. Geida consortium was composed of four Spanish companies - Abengoa’s Befesa and Codesa, AbenCobra-Tedagua of ACS group, and Sadyt of Sacyr Vallehermoso. Each of these companies held 25% of Geida’s capital. The total cost of the Beni Saf desalination plant was estimated at US$160 million. The project reached financial closure in September 2005, with a debt equity ratio of 70:30. Four banks, led by Banque Exterieure d’Algerie (BEA), Credit Populaire d’Algerie, Banque Nationale d’Algerie and Banque de l'Agriculture et du Developpement Rural arranged the loan. ADS signed a 25 year take or pay water purchase agreement (WPA) with Algerienne des Eaux (ADE), the national water service authority of Algeria. The WPA was guaranteed by the state owned energy company, Sonatrach. Construction of the desalination plant began in December, 2005, and was expected to be completed in 24 months.