OUTOTEC OYJ STOCK EXCHANGE RELEASE, SEPTEMBER 3, 2007 AT 12.00
Outotec has been awarded a major contract by the Government of Sri Lanka to supply a drinking water supply facility for the Eastern coastal towns of Ampara District in Sri Lanka. The contract is worth USD 100 million (approximately EUR 75 million) and it will become effective upon signing of a loan agreement between the Government of Sri Lanka, the Australia and New Zealand Banking Group Ltd and Export Finance Insurance Corporation of Australia. Outotec has earlier delivered the first two stages of the project.
Outotec's scope of this third stage delivery covers design, supply, construction, installation and commissioning of two water treatment plants, eleven pump stations and associated electromechanical equipment, 115 km of treated water transmission mains and supply of 655 km of distribution piping. The plants will treat approximately 30,000m³ of water daily. Treated pipe-borne drinking water in the Ampara District was non-existent before the commencement of the first stage of this project in 1999. Completion of the third stage is scheduled for late 2010.
"Outotec's delivery will change the lifestyle of some half a million people in Sri Lanka. It is also anticipated that the water treatment facility will give rise to the development of secondary industries in the region. Because of the availability of drinkable water, we have already seen the resettlement of some 25,000 people during the first two stages", explains Tapani Järvinen, President and CEO of Outotec and adds, "This contract is also an example how we are able to expand our business beyond the mining and metallurgical industries to other process industries by applying our technologies and project execution skills. The total value of our three water plant contracts during years 1999 - 2007 in Sri Lanka is approximately USD 250 million".
For further information please contact:
Jari Rosendal, President - Minerals Processing
tel. +358 20 529 2700, mobile +358 40 5951456
Eila Paatela, Vice President - Corporate Communications
tel. +358 20 529 2004, mobile +358 400 817198
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