SNC-Lavalin awarded contract for a new seawater desalination plant in Algeria

    MONTREAL, June 16 /CNW Telbec/ - SNC-Lavalin is pleased to announce that,
in consortium with Acciona Agua, it has signed a contract worth approximately
US$150 million with Myah Tipaza for the engineering, procurement and
construction of a 120,000 m3/day seawater desalination plant in the province
(wilaya) of Tipaza, Algeria. Myah Tipaza is 51% owned by Algerian Water
Investment (a company formed in equal partnership by SNC-Lavalin and Acciona
Agua) and 49% by a publicly-owned Algerian economic enterprise, "Algerian
Energy Company Spa". SNC-Lavalin also signed a joint venture contract with
Acciona Agua to operate and maintain the plant for 25 years once it is built.
    The project will be completed on a "Design, Build, Own, Operate and
Transfer" (DBOOT) basis. Algérienne des eaux, an industrial and commercial
public authority, and Sonatrach, a publicly-owned Algerian economic enterprise
- two companies wholly owned by the Algerian Government - will purchase the
water plant's entire production as part of a 25-year "Take or Pay" water
purchase and sale contract. The project is part of the Algerian Government's
program to provide the city of Algiers and its outlying areas with a secure,
long-term potable water supply.
    "We are very pleased to have this opportunity to apply our recognized
expertise in the water sector to this project for the benefit of Algerians,"
said Riadh Ben Aissa, Executive Vice-President, SNC-Lavalin in charge of
worldwide construction and infrastructure activities. "This new seawater
treatment plant will play a key role in meeting the long term potable water
needs of the region around the city of Algiers."
    Plant construction is underway west of Algiers, and should be completed
in 24 months.
    SNC-Lavalin Capital acted as financial advisor to Myah Tipaza on the
long-term, non-recourse financing, underwritten by Crédit Populaire d'Algérie
(CPA) for 80% of the project's value. Myah Tipaza shareholders will fund the
remainder of the project by investing about US$35 million of the company's
capital stock.

    SNC-Lavalin Group Inc. (TSX:SNC) is one of the world's leading
engineering and construction groups and a major player in infrastructure
ownership and the provision of operations and maintenance services. The
SNC-Lavalin companies have offices across Canada and in over 35 other
countries around the world and are currently working in some 100 countries.

    Acciona Agua is a leading global company in the desalination of seawater
and brackish water by reverse osmosis, and a pioneer in the development of
reverse osmosis desalination plants. 70 major reverse osmosis projects with
the capacity to treat a total of 1.6 million m3/day.

For further information:

For further information: Media: Gillian MacCormack, Vice-President,
Global Public Relations, SNC-Lavalin Group Inc., (514) 393-8000, ext. 7354,; Investors: Denis Jasmin, Vice-President,
Investor Relations, SNC-Lavalin Group Inc., (514) 393-8000, ext. 7553,

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