Fouka Desalination Plant

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In June 2008, the 25 year BOT Fouka seawater 120,000 m3/day desalination plant project reached financial closure. The plant was to be located in Fouka, in the province of Tipaza, on the Mediterranean coast. The project was awarded in October 2005 by the government of Algeria to a Special Purpose Company (SPC) Myah Tipaza composed by the private consortium Algerian Water Investment (51%) and by the State Owned Enterprise Algerian Energy Company (49%). Algerian Water Investment was a company formed in equal partnership by SNC-Lavalin and Acciona Agua. The award followed a competitive bidding process between five tenders. SNC-Lavalin/Acciona Agua was selected for proposing the lowest tariff (US$0.7505/m3). The four other bidders were Geida, Enima/Aqualia, Barna/Lemna and GE Ionics, a subsidiary of General Electric. Under the term of the agreement, the SPC Myah Tipaza signed a 25-year "Take or Pay" water purchase and sale contract with Algérienne des eaux, the state-owned national water entity of Algeria and Sonatrach SPA, the national oil company of Algeria. In addition, the SPC awarded to Algerian Water Investment an EPC contract for the construction of the plant and a 25-year operation and management contract. Investment commitment represented about US$180 million. The project was 80% debt financed by the State owned bank Credit Populaire d’Algerie and the other 20% through equity by the shareholders of the SPC: Algerian Water Investment (SNC-Lavalin/Acciona Agua) and Algerian Energy Company. The project was expected to be operational by June 2010.