AES to construct $425 million Barka power and desal plant in Oman

ARLINGTON, Va., Nov 27, 2000 (BUSINESS WIRE) à‚– The AES Corporation (NYSE:AES) announced today that AES Barka (SAOC) has been awarded the Barka Power and Desalination Project – Phase I in the Sultanate of Oman.

The natural gas-fired, combined-cycle, $425 million facility is expected to supply 427 MW (net) of electricity and 20 million gallons per day (mgd) of water. Natural gas will be supplied by the Oman Ministry of Gas under a 15 year contract. Electric power and water will be sold to Ministry of Electricity and Water under a 15-year contract.

AES submitted a bid for the project to the Tender Board of the Government of Oman in September 2000 and project agreements with the Ministry of Electricity and Water were signed yesterday. Commencement of construction is targeted for April 2001. AES will own 90 percent of the project company and also operate the plants.

Bahwan group, a leading local business, will hold the remaining 10 percent. Under the terms of the bid, by the end of first year of operation, AES intends to divest 39% of equity in the project to the general public.

The facility will be constructed for AES at a site near the town of Barka (30 km from Seeb International Airport) by Enelpower of Italy and Hitachi Zosen of Japan under a turnkey engineering, procurement and construction (EPC) contract. The plant is expected to achieve commercial operations in April 2003. Successful completion of the project is subject to the receipt of certain governmental approvals.

Mr. Surender Singh, Project Director of AES Oasis for Barka Project said, “Barka Phase I will be one of the first privately developed combined power and water projects in the world under the build, own and operate (BOO) model. We are happy that the Government of Oman gave us this opportunity to serve the people of this country with electricity and water. This business will be an important addition to the businesses of the AES Oasis Group and a great break-through in our efforts to serve the people in the Middle-East. In addition, this will be the first major water supply business for AES in the world.”

Mr. Dennis W. Bakke, President and Chief Executive Officer of AES stated, “We are delighted to have this opportunity to serve the people of Oman. A progressive country, Oman has an investment grade rating and a strong commitment to privatized electricity businesses.”

Business development milestones in 2000 include the following:

à‚– In November, AES made an offer to acquire all outstanding Gener S.A. ADSs in exchange for AES common stock having a value of US$16 per ADS and that it had commenced in Chile an offer to acquire 3,466,600,000 Gener shares at the Chilean Peso equivalent of US$0.235294118 per share in cash.

à‚– In September, AES entered the Bolivian telecom market with the purchase of 100% of Redibol, a Competitive Access Provider based in La Paz, for $2.5 million.

à‚– In September, AES and EDF International S.A. announced they have entered into an agreement to jointly acquire the 11.68% interest in Light Servicos de Eletricidade S.A. owned by two subsidiaries of Reliant Energy for $430 million.

à‚– In September, AES began construction on a $340 million electric power plant and liquefied natural gas importing facility located in the Dominican Republic.

à‚– In August, AES completed the acquisition of a 59% stake in the 1,000 MW hydroelectric facility of Hidroelectrica Alicura S.A. in Argentina from Southern Energy, Inc. and its partners.

à‚– In August, AES and REI announced that they have entered into an agreement whereby a subsidiary of AES will acquire Reliant Energy International’s interest in El Salvador Energy

Holdings, S.A. which owns three distribution companies in El Salvador.

à‚– In August, subsidiaries of AES issued approximately $1 billion of non-recourse project bonds to refinance outstanding debt at the Drax Power Station, located in North Yorkshire, England.

à‚– In August, a subsidiary of AES entered into an agreement whereby AES will acquire the 49% interest held by TransCanada PipeLines Limited in the Songo Songo Gas-to-Electricity Project in Tanzania.

à‚– In July, AES and IPALCO Enterprises Inc. announced that they entered an agreement whereby AES will acquire IPALCO Enterprises, Inc.

à‚– In June, AES acquired approximately 87% of the stock of C.A. La Electricidad de Caracas, an integrated electricity company serving Caracas, Venezuela.

à‚– In June, a subsidiary of AES completed an $815 million non-recourse financing for a circulating fluidized bed coal-fired facility currently being built on the south coast

of Puerto Rico.

à‚– In May, a subsidiary of AES acquired 100% of Tractebel Power Ltd., from Tractebel S.A. With this transaction, AES owns approximately 92% of NIGEN’s common stock.

à‚– In May, AES announced that it won a bid to purchase a 70% interest in the 1,580 MW Mohave Generating Station in Laughlin, Nevada for approximately $667 million.

à‚– In April, AES announced it intends to launch a tender offer to acquire all outstanding common and preference shares of Brazilian generation company Compania de Geracao de Energia Eletrica Tiete.

à‚– In March, a subsidiary of AES acquired for $8 million, GeoUtilities Inc., an internet-based superstore for energy, telecom and other vital services.

à‚– In March, a subsidiary of AES completed a financing associated with 823 MW of generating facilities in the Republic of Georgia. The financing included the acquisition of the 600 MW Gardabani thermal plant and the establishment of 25-year concessions for the Khrami I and II hydro stations, which have a combined capacity of 223 MW.

à‚– In March, a subsidiary of AES completed a $440 million non-recourse project financing for AES Red Oak, an 832 MW natural gas-fired combined cycle plant in Sayerville, New Jersey.

à‚– In February, AES announced that a subsidiary had reached an agreement with the Bulgarian state-owned electric utility NEK, that will allow AES to build, own, operate and transfer a $750 million lignite-fired power plant.

à‚– In January, a subsidiary of AES agreed to acquire 59% of the outstanding preferred (non-voting) shares of Eletropaulo S.A.

à‚– In January, a subsidiary of AES and Caterpillar Inc. reached a service agreement for multiple energy products that will result in the construction of a 45 MW cogeneration plant in Mossville, Illinois.

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Canada, China, Dominican Republic, El Salvador, Georgia, Hungary, India, Kazakhstan, the Netherlands, Mexico, Pakistan, Panama, Sri Lanka, the United Kingdom, the United States and Venezuela.

The company’s generating assets include interests in one hundred and thirty seven facilities totaling over 49 gigawatts of capacity. AES’s electricity distribution network has over 920,000 km of conductor and associated rights of way and sells over 126,000 gigawatt hours per year to over 17 million end-use customers. In addition, through its various retail electricity supply businesses, the company sells electricity to over 154,000 end-use customers. For more general information visit our web site at www.aesc.com.

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