Souk Tleta Desalination Plant

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In January 2008, the 25 year BOT Souk Tleta seawater 200,000 m3/day desalination plant project reached financial closure. The plant was to be located in Tlemcen, on the Mediterranean coast. The project was awarded in October 2006 by the government of Algeria to Almiyah Attilemcania SpA, a Special Purpose Company (SPC) composed by the private consortium Tlemcen Desalination Investment Company SAS (51%) and by the State Owned Enterprise Algerian Energy Company (49%). Tlemcen Desalination Investment Company SAS (TDIC) was a joint venture between MenaSpring Utility (S) Pte Limited (20%), a wholly owned subsidiary of Hyflux and Malakoff AlDjazair Desal Sdn Bhd (80%), an indirect wholly-owned subsidiary of Malakoff Bhd. The award followed a competitive bidding process between four tenders. The consortium was selected for proposing the lowest tariff. The three other bidders were: GE Infrastructure Water & Process Technologies, Geida and Inima/Aqualia/SPA. Under the term of the agreement, the SPC Almiyah Attilemcania SpA 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 Tlemcen Desalination Investment Company SAS (TDIC) an EPC contract for the construction of the plant and a 25-year operation and management contract. Investment commitment for the construction of the plant represented US$213 million. The project was 80% debt financed by Banque Nationale d’Algerie (State owned bank) and the other 20% through equity by the shareholders of the SPC Almiyah Attilemcania SpA: Tlemcen Desalination Investment Company SAS and Algerian Energy Company. The project was expected to be operational by January 2010.