Intergen executes major power purchase agreement with Brazilian utility

SAO PAULO, Brazil, March 28, 2001à‚–InterGen today announced the execution of a Power Purchase Agreement (PPA) with the Brazilian utility Companhia Paulista de Forca e Luz for the development of Carioba II, a 945 MW gas-fired combined cycle generation facility to be located within the municipality of Americana, in the state of Sao Paulo.

The PPA was marked yesterday by a signing ceremony witnessed by various senior Brazilian State and Federal Officials: Afonso Henriques, National Secretary of Energy representing the Minister; Mario Santos, President of National System Operator; Mauro Arce, Secretary of Energy for the State of Sao Paulo. Carioba II is the first of Brazilian Ministry of Mines and Energy classified priority thermal projects to execute a PPA. The Carioba II PPA is also the largest power purchase contract ever executed between private parties in Brazil.

The estimated project cost including construction period costs, will total approximately $650 million dollars. The project is expected to reach financial close in the 4th quarter 2001 and to achieve commercial operations by the second half of 2003. Once completed, Carioba II will be one of the largest gas-fired thermal plants in Latin America and will represent an increase of approximately 9% in the total electricity supply for the greater Sao Paulo region, an area with a population of 17 million people.

The proposed Build, Own, Operate (“BOO”) facility will be fueled by natural gas supplied by Comgas from the Bolivia-Brazil pipeline. The plant will be located adjacent to an existing CPFL facility.

“The execution of the PPA is an important milestone for Carioba II and we look forward to adding critically needed capacity to the Brazilian system. Carioba II will be the lowest cost thermal plant in Brazil. Carioba II will also contribute to the continuing economic vitality of the dynamic Campinas region and aid CPFL in maintaining its tradition of reliable and high quality service,” said John Foster, Senior Vice President, Latin America for InterGen.

InterGen is a global power generation firm. The Company is operating or building a total of seventeen power stations representing 12,230 MW. It also has projects in advanced development representing an additional 5,360 MW, and more than 9,000 MW in early stage development. The Company has projects operating, under construction and/or in advanced development in the United Kingdom, the Philippines, Colombia, Mexico, China, Egypt, Turkey, Brazil, Australia, United States and the Netherlands and is developing projects across the globe. InterGen is a Shell-Bechtel venture.

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