Oran Management Contract

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In November 2007, Sociedad General de Aguas de Barcelona SA (AGBAR) signed a 5.5 year management contract with Algeria’s Ministry for Water Resources, Algerienne des Eaux, to supply water and sewerage services to the city Oran’s 600 km network. Oran had a population of 1.5 million at the time of contract signing. AGBAR was to offer a continuous supply of potable water as well as new management technologies and methodologies during the contract period. The assets belonged to a state owned enterprise comprised in equal parts by the Algerian government ministries Algérienne des Eaux and the Office Nacional de l’Assainissement. The initial tender was held in December 2006, and only Agbar and Saur qualified for the bid. The contract was awarded to Agbar on June 18, 2007 after six months of competitive negotiation with the Algerian government. Sociedad General de Aguas de Barcelona SA (Agbar) was to receive $US 43.9 million (Euro 30 million) for its services. Agbar was primarily owned by the private water companies Suez Environnement, SA 28.7 % and Criteria Caixa Corp., SA 27.6%. Financing for the project was provided entirely by the Algerian government.