China: Abengoa will sell Qingdao desalination plant for Euro 53 mn
China: Abengoa will sell Qingdao desalination plant for Euro 53 mn
Abengoa has reached a preliminary agreement to sell its shares of Qingdao BCTA Desalination Co, Ltd. The project company had been created to manage the DBOOT desalination project in the northeastern region of China, Qingdao. The shares will be sold to one of the partner in the venture, Qingdao Water Group, a state-owned company engaging in water business in Qingdao. The transaction is worth Euro 53 million. The plant, which has a capacity to desalinate 100,000 m3/day of sea water, has been in operation since early 2013 and employs reverse osmosis technology. Abengoa has been responsible for the technology, design, and construction of the project and currently has a 25-year operation and maintenance contract for the plant. The agreement that was signed by both Abengoa and Qingdao Water Group is a binding document and serves to define the price for the sale of Abengoa shares of the project company. The company currently owns 92.6 % of the company, which will be transferred to Qingdao Water Group. Both companies are now working on the definitive sales agreement and its implementation, which is expected to be completed soon.