LONDON, Dec. 26, 2000 (PRNewswire) PSEG Global and Marubeni Corporation announced today that they have bought Sithe’s interest in Carthage Power Company, the Tunisian special purpose company set up to develop, own and operate the 471 MW combined-cycle generation plant in Rades, Tunisia.
Following the purchase of such interest, PSEG Global increased its ownership in Carthage Power from 35 percent to 60 percent and Marubeni increased its shareholding from 32.5 percent to 40 percent.
In addition, PSEG Global is assuming Sithe’s contract rights and obligations for management of construction and ongoing operation and maintenance of the plant.
“PSEG Global is increasingly interested in managing the day-to-day operations of our assets,” said Michael Thomson, president of PSEG Global. “We have seen greater return and more efficient operations in assets we control than in ones where we simply are a minority partner. This is part of a larger strategy to increase our ownership in select projects around the world.”
“PSEG Global is excited to be assuming the lead management role in the Rades II plant,” said Matthew McGrath, Vice President in charge of PSEG Global’s Europe, Middle East and Africa Region. “Tunisia’s welcoming environment to U.S. foreign investment and the professionalism and high degree of cooperation we have encountered at every level of the Tunisian Government have encouraged us to increase our exposure to the country.”
Masumi Kakinoki, Senior Vice-President of Marubeni Europower Ltd, the London based subsidiary of Marubeni Corporation, and the entity responsible for Marubeni investments in the European, Middle East and African region said, “With this move Marubeni is further strengthening its potential for energy business and to have a balanced electricity investment portfolio worldwide. A significant shareholding by Marubeni in the Rades II in Tunisia is an important step towards Marubeni’s longer term goals of increased IPP business and asset acquisitions in the Middle East and African region.”
The plant is scheduled for operation in third quarter of 2001. Alstom is the EPC contractor for the plant and Societe Tunisienne d’Electricite et du Gaz (STEG) will be the fuel supplier for the plant and off-taker for the power from the plant.
Financial terms of the sale were not released.
PSEG Global develops, acquires, owns and operates electric generation and distribution facilities and engages in power production and distribution, including wholesale and retail sales of electricity in selected U.S. and international markets. PSEG Global has ownership interests in 22 operating generation projects totaling 2,136 MW (576 MW net) located in the United States, Argentina, China and Venezuela. PSEG Global has ownership interests in 16 projects totaling 4,918 MW (2,291 MW net) in construction or advanced development that are located in the United States, Argentina, Venezuela, India, Tunisia, China, Italy and Poland. PSEG Global provides electricity to approximately 2.8 million customers in Argentina, Brazil, Chile and Peru through its interests in six distribution companies. PSEG Global is a direct subsidiary of PSEG Energy Holdings and an indirect subsidiary of Public Service Enterprise Group (PSEG) (NYSE: PEG – news). To learn more about PSEG or PSEG Global visit www.pseg.com .
Marubeni Corporation and Marubeni Europower are involved in all aspects of IPP and EPC business with a specific focus on asset optimization through acquisitions, exchange or sale of assets, stock of energy related companies or value added assets. They are also active as a pure financial and strategic investor and in EPC-wrap options and construction management services. The EPC business was established in the 1960’s and the IPP business in the 1980’s. Currently, in IPP projects, there are a total of 3,599 MW in operation, 3,199MW under construction and 4,417 MW under development. Over 20 IPP projects have been realized by Marubeni, including four in the Philippines, four in the U.S., and two in Australia. Besides these, there are realized projects in Colombia, China, Taiwan, India, Thailand and Costa Rica. To learn more about Marubeni Corporation or Marubeni Europower visit www.marubeni.co.jp or www.marubeni-europower.co.uk .