The Algerian Energy Company (AEC) has selected separations technology company Ionics for a 25-year seawater desalination build-own-operate (BOO) project. Ionics and AEC will form a joint project company to finance, build and operate the plant, with Ionics owning a majority interest.
The projected $225 million capital investment will be financed by a combination of equity and non-recourse debt. The initial water tariff will be $0.818 per cubic meter, subject to adjustment pending completion of debt financing. The take-or-pay water supply contract will be guaranteed by Sonatrach, the national energy company.
The desalination plant, to be located near Algiers, will have a capacity of 200,000 cubic meters per day of drinking water. Construction will take approximately two years after completion of debt financing. The plant will be the largest membrane desalination facility in Africa and one of the largest in the world.
Ionics will design and supply the seawater reverse osmosis (RO) desalination system, and operate the facility over the 25-year contract period. In accordance with company policy, the project will not be booked into backlog until a firm commitment for debt financing is obtained and the final water sales contract is completed. These activities are expected to take approximately six to eight months.
US-based Ionics is involved in the manufacture and sale of membranes, equipment, systems and services for the purification, disinfection, concentration and analysis of water, wastewater and ultrapure water. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
