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Press release from Ionics
Ionics Selected By Algerian Energy Company For
200,000 Cubic Meter Per Day Seawater Desalination Water Supply Contract
WATERTOWN, Mass., October 21, 2003
Ionics, Incorporated (NYSE-ION) announced today that on October 18, 2003 the Algerian Energy Company (AEC) publicly declared Ionics as the selected bidder for a twenty-five (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 US$225 million capital investment will be financed by a combination of equity and non-recourse debt. The initial water tariff will be US$0.8182 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 (53 million gallons 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 6 to 8 months.
Commenting on the selection, Douglas Brown, Ionics' CEO stated, "This selection reaffirms Ionics as a world leader in membrane-based desalination, and our employees are proud to be associated with this landmark project. Ionics has been supplying water systems to Algeria for almost 40 years. We are pleased to be an important part of helping Algeria solve its long-term water issues."
About Ionics
Ionics is a global separations technology company 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. Over a period of more than 50 years, Ionics has built more desalination plants than any other company in the world. Ionics is a leader in the supply of world-class ultrapure water systems for the power and microelectronics industries, zero liquid discharge systems and in the measurement and analysis of both total organic carbon and boron. For additional information, please visit http://www.ionics.com.
For more information, contact:
Theodore G. Papastavros,
Executive Vice President and Treasurer
Ionics, Incorporated
Tel: (617) 673-4221
tpapastavros@ionics.com
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