Press Releases
15/08/2001
International Power And CMS Energy Sign Power And Water Purchase Agreement For Abu Dhabis Largest Power And Desalination Project
(London – 15 August 2001) International Power and CMS Energy Corporation announce that the two companies have signed a 20-year power and water purchase agreement with the Abu Dhabi Water and Electricity Authority (ADWEA) for the $1.6 billion Shuweihat S-1 power and desalination project. International Power and CMS Energy will together own 40% of the project on a 50/50 basis. The total investment for each company will be around US$ 80 million.
The Shuweihat project, which will be Abu Dhabi’s largest independent water and power plant, includes a gas-fueled 1,500 megawatt combined cycle power plant and a large water desalination facility with a capacity of 100 million imperial gallons per day. It will be built on a greenfield site close to Jebel Dhanna, 250 kilometers west of the city of Abu Dhabi. ADWEA will hold the remaining 60 percent ownership interest in the project.
On completion of construction, the facility will be jointly operated by International Power and CMS Energy under a 20-year operations and maintenance agreement. Fuel will be supplied by Abu Dhabi National Oil Company and the fuel cost will be passed through.
“We are pleased to have this opportunity to contribute to the expansion of Abu Dhabi’s infrastructure, providing a large and reliable new source of affordable power and clean water”, said International Power CEO Peter Giller. “The Shuweihat project is an important step in further strengthening our position in the key Middle East region."
“The success of CMS Energy in this third major energy privatization in United Arab Emirates further demonstrates our commitment to the Middle East and positions CMS for future strategic opportunities in the region. We look forward to working productively with our partners, Abu Dhabi Water and Electricity Authority and International Power, to achieve timely commercial operation of the project,” said Joseph P. Tomasik, vice president and managing director of CMS Energy, U.K.
Construction on the site will begin in the spring of 2002, with commercial operation expected by mid-2004. An engineering, procurement and construction contract to build the plant has been awarded to a consortium of Siemens and Fisia Italimpianti. The financing for the project is being arranged by Barclays Capital, Citibank, N.A., Abu Dhabi Investment Company, Bank of Tokyo-Mitsubishi, Kreditanstalt fur Wiederaufbau, National Bank of Abu Dhabi and Royal Bank of Scotland. Financial closing is scheduled for November 2001.
For further information please contact:
| International Power | |
| Media/Investor contact: (Europe) |
Aarti Singhal +44 (0)20-7320-8681 |
| Media & Investor contact: (United States) | Paul Parshley +1 508-922-3124 |
CMS Energy
For more information on CMS Energy, please visit our web site at: www.cmsenergy.com.
CMS Energy Media Contacts: Kelly M. Farr, 313/436-9253
or
John P. Barnett, 713/989-7556
Investment Analysts Contact: CMS Energy Investor Relations, 517/788-2590
Notes to Editors
International Power is one of the world’s leading independent electric generating companies with over 8,850 MW (net) installed capacity in operation, 2,350 MW (net) under construction and approximately 8,000 MW (net) in advanced development. Among the countries where International Power has operating facilities are Australia, the United States, the United Kingdom, the Czech Republic, Portugal, Turkey, Malaysia, Pakistan, and Thailand. International Power was created from the demerger of National Power, and its shares began trading independently on the London Stock Exchange and as ADRs on the New York Stock Exchange on 2 October 2000. The ticker symbol on both stock exchanges is “IPR”.
CMS Energy
The Shuweihat project is CMS Energy’s second entry into Abu Dhabi, following the 710 megawatt, 50 million imperial gallon per day Al Taweelah A2 power and desalination plant, located on the coast of the Arabian Gulf approximately 65 kilometers northeast of Abu Dhabi, in which CMS holds a 40 percent ownership interest. The Al Taweelah A-2 power facility is now in operation and the desalination units are expected to be completed and fully operational by September of this year.
CMS Energy has 11,592 megawatts (net) of electric generating capacity in operation and 1,890 megawatts (net) in construction or advanced development.
CMS Energy Corporation has annual sales of $14 billion and assets of nearly $19 billion throughout the U.S. and in selected foreign markets with businesses in electric and natural gas utility operations; independent power production; natural gas pipelines, gathering, processing and storage; oil and gas exploration and production; LNG importation; and energy marketing, services and trading.
