Abengoa has closed a long term non-recourse finance deal with the Infrastructure National Fund, Fonadin, and National Works and Public Services Bank, Banobras, for the construction, operation and maintenance of the El Zapotillo Aqueduct in Mexico.

The total investment in the project is approximately US$640 million. Of this, 48.44 % will be contributed by the National Infrastructure Fund while the remaining 51% will be funded by a US$177 million non-recourse credit and Abengoa's equity participation. The US$487 million financing provided by the Fonadin and Banobras will replace the existing bridge facility of US$296 million included as non recourse debt in process.

The agreement consists of a 25 year concession to provide services for drinking water treatment, transport and water distribution from the El Zapotillo dam to the city of León and various other communities, including the municipalities of Los Altos de Jalisco such as Cañadas de Obregón, Jalostotitlán, San Miguel el Alto, San Julián, Encarnación de Díaz, San Juan de los Lagos, San Diego de Alejandría, Lagos de Moreno, Unión de San Antonio, Valle de Guadalupe and Villa Hidalgo.

This new project will consolidate Abengoa's experience of water pipelines. Similarly, Abengoa keeps investing and consolidating its position in the energy and environment sectors in Mexico.

We have recently reported about the signature of the contract for the development of the Monterrey VI aqueduct PPP project in Mexico. The aqueduct will have a length of 372 km with a design capacity of 5m3/s. The project will be developed on a design, build, operation and transfer (DBOT) basis. The PPP contract includes a total investment of US$1,619 million, a construction period of 3 years and an operation period of 27 years.