International Power, Consortium Preferred Bidder For AZ Zour Project

Independent electricity generating company International Power PLC (IPR.LN) and GDF SUEZ S.A (GSZ.FR), said Tuesday they have received preferred bidder notification, together with their consortium partners, from Kuwait's Partnerships Technical Bureau for the construction and operation of the Az Zour North Independent Water & Power Project.

MAIN FACTS:

-Following financial close, the consortium will construct a gas-fired combined cycle power plant of at least 1,500MW and an associated water desalination plant with a capacity of 102 to 107 MIGD--464 to 486 thousand m(3)/day.

-All of the plant's output will be purchased by the Kuwait Ministry of Electricity and Water under a 40-year long-term Energy Conversion and Water Purchase Agreement (ECWPA). The plant is expected to start commercial operation in 2015.

-The project is expected to be owned 10% by Kuwaiti public entities, 50% by Kuwaiti nationals, via an Initial Public Offering and 40% by the consortium, which is made up of International Power--17.5%, Sumitomo--17.5% and A.H. Al Sagar & Brothers--5%.

-The total project cost will be funded by a mix of project finance debt and equity in an 80:20 ratio.

-In addition, International Power and Sumitomo anticipate establishing on a 50:50 basis the operation & maintenance company for the Az Zour plant.

-The EPC contractors will be Hyundai Heavy Industries and SIDEM.

-International Power is 70% owned by GDF SUEZ

-International Power shares at 1406 GMT down 3 pence, or 0.7%, at 363 pence, valuing the company at GBP18.65 billion.

-By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; [e-mail]