Tomen buys part of Piti

Tomen Corp. of Japan has picked up 50 percent interest in Enron?s power project in Piti, Guam. In September 1996, Enron announced that it had been selected by the Guam Power Authority, an agency of the Guam government, to develop a fast-track project to help alleviate Guam?s current power shortage. Construction on the 80 MW baseload power plant is expected to begin by July, and the plant is expected to be in operation by December 1998.

Under a build-operate-transfer arr-angement, the plant will be transferred to the Guam Power Authority in 20 years. An energy conversion agreement signed in September 1996 stipulates that the Guam Power Authority will provide the fuel and Enron will convert it to electricity.