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BSBIOS Paraguay signs MoU with Spanish “epecistor” contractor

BSBIOS Paraguay, an ECB Group company, has announced that it has signed a Memorandum of Understanding (MoU) with one of the world's largest construction companies to take on the role of "epecistor" of the Omega Green biorefinery and take a stake in the project.

BSBIOS Paraguay, an ECB Group company, has signed a Memorandum of Understanding (MoU) with Spain-headed Cobra Group one of the world’s largest construction companies to take on the role of “epecistor” (EPC contractor) of Omega Green biorefinery and take a stake in the project (image courtesy ECB Group).

The MoU was signed on January 28, 2022, with the Spain-headed Cobra Group. Under the agreement, which includes a Letter of Intent (LoI) defining the participation of the Spanish company in the Omega Green project, Cobra will be responsible for building the biorefinery, assuming the role of “epecista”.

In addition, Cobra Group will become a shareholder in the project that is being built in Paraguay by the Brazilian holding company ECB Group, owner of BSBIOS Paraguay.

The concept of “epecista” comes from the English term Engineering – Procurement – Construction (EPC), which encompasses in a single contract the phases of engineering, management of contracts from other suppliers, and the construction of the project.

In other words, the “epecista” company is responsible for planning the construction, performing the activities related to procurement processes, and executing the project.

Counting on the partnership, experience, and qualification of a business group such as the Cobra Group in the construction and enterprise management of the Omega Green project gives us the security to achieve the level of excellence we have planned for this unprecedented advanced biofuels project in the Southern Hemisphere. This is a very important moment for the project and we are very happy to also have the Cobra Group as a shareholder. Now, this is not only a commitment of BSBIOS, but also of large multinational companies that join our venture for a more sustainable future and for the production of cleaner fuel, said Erasmo Carlos Battistella, CEO of BSBIOS Paraguay, and President of ECB Group.

The structuring of the negotiation with the Cobra Group was conducted by financial advisors. Representing BSBIOS were Banco Barclays, Banco Santander, Banco UBSBB, Eng. Luiz Miguel Fernandes and Martinelli Atria.

Site preparation underway

The infrastructure works for the mega-complex with an estimated investment of US$1 billion started in November 2021, with the definition of internal and access roads, as well as all the fencing of the area that will host the project.

A base is also under construction for the installation of the workshop and deposits of the company responsible for preparing the land for the start of construction. The operation of the biorefinery is planned for 2025.

In addition to Cobra joining the project’s group of shareholders, on January 25, 2022, BSBIOS Paraguay also signed an MoU to this effect with the leading Paraguayan fuel distribution group, Copetrol.

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