International Power Expands Tihama Power Sites In Saudi Arabia

Electricity generator International Power PLC (IPR.LN) said Monday that it will expand its Tihama power sites in Saudi Arabia following an award from Saudi Aramco, adding that long-term Energy Conversion Agreements through to 2026 have been signed for the expansion.

MAIN FACTS:

-The expansion will take place at three of the four existing sites and will generate additional capacity of 532MW, or megawatts, and 2,210GJ/h, or gigajoules per hour, of steam.

-Following the expansion, Tihama will have a total capacity of 1,595MW and 8,112GJ/h of steam.

-The ownership structure of the expansion is the same as the existing Tihama project, which is 60% owned by International Power and 40% by Saudi Oger.

-The total project cost for the expansion is estimated to be approximately $430 million which is being funded by a mix of debt and equity in an 80:20 ratio.

-Full financial close of the project is anticipated shortly; the expansion program is expected to complete by 2015.

-Shares closed Friday at 417.3 pence valuing the company at GBP21.26 billion.

-By Rory Gallivan, Dow Jones Newswires; 44-20-7842-9411; [e-mail]