The Concession

The Concession Agreement for the Olmos Irrigation Project was executed on June 11, 2010, including:

• 38,000 ha of new land are property of GRL.
•  5,500 ha of Olmos' Valle Viejo and the Rural Community.

H2Olmos S.A. (the concessionaire company part of Odebrecht Group) will be in charge of construction, operation and maintenance of:

• Major hydraulic irrigation infrastructure.
• Access roads and power transmission lines in the new agricultural development.

The phases of the Irrigation Project Concession are:

Concessionaire Financing Phase involving, in the first place, the transfer in trust of the concession properties (land and easements, among other things) owned by the Lambayeque Regional Government to a Trust that will eventually transfer the lands to their end owner following an auction process. The auction is scheduled for the fourth quarter of 2010, which will be followed by the concession financing process.

The Work Construction Phase, defined as the construction period, comprises 24 months of works including the testing period.

The Operation and Maintenance Phase, defined as the operation period, involves the operation and maintenance of the water uptake, conduction and distribution system and will start upon issuance of a startup certificate to be valid until the 25th anniversary of agreement execution.