Acciona Agua

Acciona Agua chosen to design desalination plant in Perth, Australia


Source: Acciona Agua

Following an international tender involving seven bidders, the consortium comprising ACCIONA Agua and its partner, United Utilities Australia, has been shortlisted, with another finalist, for the contract to build and operate a desalination plant in Perth, Australia

Approximate total revenue for the construction and 25-year operation of the plant is between 300-400 million euro; it will supply water to 400,000 people.

ACCIONA Agua and its partner, United Utilities Australia, comprise one of the two consortiums selected by Water Corporation to design the final plans to build and operate the Southern Seawater Desalination Plant (SSDP) in Perth, Australia. The two consortia will sign a contract to design the plant over the next six months, and will then bid for the tender for the construction and 25-year operation of the plant, whose total expected revenue will be between 300 and 400 million euro.

The consortium comprising ACCIONA Agua and its partner United Utilities Australia was selected, along with another finalist, in the international tender in which seven leading groups in the sector participated.

The plant, powered by renewable energy, will have a production capacity of 140,000 m3/day in Phase I, with a possible extension up to 280,000 m3/day in Phase 2. Located in southern Perth, Western Australia, the plant will supply 400,000 people. The project was announced last spring by Water Corporation, and expected revenue totals between 300 and 400 million euro.

According to Jim Gill, CEO of Water Corporation, this tender means 'we will be working with two of the world's leading desalination companies. Both have demonstrated their capability in building and operating desalination plants in Europe, the United States and North Africa.'

Entrance into the Australian market is part of ACCIONA Agua's strategy to raise its international exposure. United Utilities (UK), already operating in Australia with a well-positioned subsidiary in the water treatment and management sector, and ACCIONA Agua reached an agreement last July to undertake desalination projects together.

In addition to the venture in Perth, ACCIONA Agua and United Utilities Australia will bid for a desalination project in Melbourne, where they have joined forced with the construction companies McConnell-Dowell and Abi Group, and the financial partner, Plenary Group. The plant will have an approximate capacity of 400 million litres/day, enough to supply 1.35 million people. The Melbourne plant will also be powered by renewable energy; because of its size, the State of Victoria has not yet decided how it will be financed, although it will foreseeably be a PFI. ACCIONA Agua Australia Pty. Ltd. has offices in Perth and Melbourne.

United Utilities Australia has been operating for more than 15 years in the Australian water treatment market, where it owns and operates drinking water and wastewater treatment plants in New South Wales, Victoria and South Australia.

In the increasingly globalised water treatment business, ACCIONA Agua, now operating on five continents, has attained a leading position by offering comprehensive water management services, including the design, construction and operation of drinking water, sewage treatment and desalination plants.  The projects and contracts executed by the company contribute to treating, processing, reusing, desalinating and managing water for over 50 million people.

ACCIONA is one of Spain's leading corporations, with operations in infrastructure, renewable energy, water, urban & environmental services, logistics & transport services, housing development, hospital management etc., in over thirty different countries in five continents.

In the third quarter of 2007, ACCIONA reported 4.937 billion euro in revenues (an 8% increase), 715 million euro in EBITDA and 401 million euro in attributable net profit (+25.3%). Capital expenditure totalled 1.105 billion euro. ACCIONA is included in Spain's blue-chip Ibex 35 index (ticker: ANA.MC) and has a market capitalisation of over 11 billion euro.

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