29th Aug 2006 09:30
Rurelec PLC29 August 2006 29 August 2006 AIM: RUR Argentina CCGT Expansion for Rurelec's Energia del Sur SA Rurelec plc ("Rurelec" or "the Company"), the AIM-quoted power developer andowner of power plants in Latin America, today announces that it has begunconstruction on the 60 MW combined cycle gas turbine ("CCGT") expansion of itsEnergia del Sur ("EdS") power plant in Patagonia. EdS is the Argentine power generation company which owns and operates one of themost southerly power plants in Argentina, serving the partially isolated powergrid based on Commodoro Rivadavia. Existing capacity is 76 MW and Rurelec ownsan effective 50 per cent. interest in EdS following its July 2005 purchase of a50 per cent. stake in Patagonia Energy Limited ("PEL"). Last week EdS has received initial approvals from the Credit Committee ofStandard Bank, London for a loan of US $18 million for the financing of the newCCGT capacity. Financial close is expected to occur in the third quarter of2006. PEL has for some time been examining the feasibility of adding a steam turbineand heat recovery steam generator to the two open cycle General Electric 6Bgas-fired turbines of EdS. PEL has now acquired a suitable steam turbine and aircooling system at very favourable prices for the combined cycle conversion,which is expected to be eligible for carbon credits under the Kyoto Protocol.The steam turbine and cooling system are currently being transported toPatagonia from the United States. When completed in the second half of 2007, theplant conversion will add some 60 MW of new capacity in the south of Argentinawhere demand growth has out-stripped reserve capacity in the southern powergrid. Rurelec's EdS expects to qualify for carbon credits under the CleanDevelopment Mechanism of the Kyoto Protocol. EdS continues to trade well and remains committed to maximizing cash payments toits shareholders. Rurelec intends to continue with its progressive dividendpolicy. For further information please contact: Peter Earl, Managing Director, Rurelec PLC: +44 (0)20 7793 7676 Paul Shackleton, Daniel Stewart & Co. +44 (0)20 7776 6550 Notes to Editors Rurelec PLC is a British company established to develop rural electrificationand power generation projects in Latin America. It is managed by a team with astrong track record in developing power projects worldwide and with considerableexperience in the electricity sector in Latin America. Rurelec has two principal businesses: • Ownership of power generation facilities in the Southern Cone of Latin America • Management of rural electrification expansion projects funded by the World Bank or multi-lateral development agencies. Rurelec has existing power assets in Argentina and Bolivia. In Argentina it owns a fifty per cent. stake in Energia del Sur, a 76 MW gasfired plant which Rurelec is converting to combined cycle operation to add afurther 50 MW in 2007. In Bolivia, it owns a 50.001 per cent. stake in Guaracachi, Bolivia's largestpower generation company which has a 29 per cent. national market share. In 2006Guaracachi installed capacity will increase from 360 MW nominal capacity to 439MW nominal capacity. In 2007 Guaracachi expects to bring into production 120 MWof dedicated export capacity serving Northern Argentina and 80 MW of combinedcycle capacity serving the Bolivian domestic market. All Guaracachi's powercapacity is gas fired. Rurelec floated on the AIM market of the London Stock Exchange in August 2004.Guaracachi is independently listed on the Bolsa Boliviana de Valores. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
RUR.L