27th Apr 2005 07:02
Aggreko PLC27 April 2005 Aggreko Signs US$160m Contract for Temporary Power Station in Uganda Following our statement of 22nd March 2005 that we had received a letter of award for a Power Purchase Agreement from the Government of Uganda, Aggreko plc is pleased to announce that it has now signed the definitive agreement with the customer. The Agreement is with the Uganda Electricity Transmission Company Limited to install and operate a 50MW temporary power plant in Kampala for a period of three years. At an estimated value over the three years of $160m, including fuel, this is the largest contract in Aggreko's history and our first in Uganda. The Aggreko power plant will support the economic development of the area by supplementing the grid supply and alleviating the power shortage in the region. This shortfall of power is a consequence of economic growth driving increased demand, and low rainfall in recent months which has reduced the country's hydro-power generating capacity. Underlining Aggreko's unique ability to rapidly deploy large amounts of generating capacity anywhere in the world, first power will be available within a week, and the full 50MW within four weeks. Based on today's fuel price, and the customer's expectations of power demand, we estimate that the total value of the contract over the three-year period will be in the order of $160m. Of this amount, approximately $120m is expected to relate to fuel, which Aggreko will provide in partnership with local companies. The fuel will be provided on a pass-through basis, with only a small administrative charge, and consequently Aggreko will highlight the fuel element on this contract in its results, as it is likely to have a material impact on the headline levels of revenue and margin. Commenting on the award of the contract, Rupert Soames, Chief Executive of Aggreko said "This contract, which is the largest in Aggreko's history, is another example of our success in expanding and broadening our customer-base. This was a key component of our strategy announced in March 2004; Uganda is the sixth new country in which Aggreko has won business since the start of the year". EndsEnquiries to :Rupert Soames / Angus CockburnAggreko plcTel. 0141 225 5900 Fiona PiperThe Maitland ConsultancyTel: 07808 727 500 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
AGK.L