IPSA.L Regulatory News (IPSA)

1 Nov 2005 07:00

IPSA Group PLC01 November 2005 1 November 2005 IPSA Group Plc Progress update (1) Completion of equipment purchase; and (2) Groundbreaking for Newcastle power project in South Africa IPSA Group PLC ("IPSA"), the independent power plant developer in southernAfrica, today announces that it has completed the purchase of an 18MW CHP plantin Bury, East Lancashire and has begun shipment of the plant to South Africa. The CHP plant, costing US$3.85 million, will be used to supply steam andelectricity to Karbochem, a synthetic rubber manufacturer in Newcastle, SouthAfrica. IPSA has already put in place a gas supply agreement with Sasol to fuelthe plant and a steam off-take contract with Karbochem. Reassembly of the 18 MW cogeneration plant is due to begin in January 2006 witha view to producing first revenues in the second half of 2006. In parallel with the completion of the plant purchase, IPSA undertook yesterdaythe official groundbreaking for the plant in Newcastle, KwaZulu Natal, SouthAfrica. This groundbreaking marks the start of construction of South Africa'sfirst privately financed gas-fired power plant. The Newcastle 18 MW cogeneration plant is the first phase of a series of newpower developments being undertaken by IPSA to address the forecast shortage ingenerating capacity in South Africa and the neighbouring countries in the nearfuture. The Government of South Africa is seeking to attract independent powerproducers to address this problem and IPSA intends to establish itself as thepremier private power plant owner operator in southern Africa. For further information please contact: Peter Earl, CEO, IPSA Group Plc 0207 793 7676 Liz Shaw, COO, IPSA Group Plc 0207 793 7676 Adam Westcott, Noble & Company Limited 0131 225 9677 Allan Piper, First City Financial 07736 064982 This information is provided by RNS The company news service from the London Stock Exchange