RUR.L Regulatory News (RUR)

29 Aug 2006 17:07

Rurelec PLC29 August 2006 The following replaces the Argentina Update announcement released today at 9.30 a.m. under RNS number 1688I. The stated dividend policy within the last paragraph of the announcement has been amended. The full amended announcement follows. Argentina CCGT Expansion for Rurelec's Energia del Sur SA ("EdS") DATE: 29 August, 2006 Rurelec plc, the AIM-quoted power developer and owner of power plants in LatinAmerica, today announces that it has begun construction on the 60 MW combinedcycle expansion of its Energia del Sur 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"). For some time the shareholders in PEL have been examining the feasibility ofadding a steam turbine and heat recovery steam generator to the two open cycleGeneral Electric 6B gas-fired turbines of EdS. PEL has now acquired a suitablesteam turbine and air cooling system at very favourable prices for the combinedcycle conversion, which is expected to be eligible for carbon credits under theKyoto Protocol. The steam turbine and cooling system are currently beingtransported to Patagonia from the United States. When completed in the secondhalf of 2007, the plant conversion will add some 60 MW of new capacity in thesouth of Argentina where demand growth has out-stripped reserve capacity in thesouthern power grid. Rurelec's EdS expects to qualify for carbon credits underthe Clean Development Mechanism of the Kyoto Protocol. In the 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. EdS continues to trade well and remains committed to maximizing cash payments toits shareholders. Rurelec in turn intends to maximize the payout to its ownshareholders of cash receipts from Rurelec subsidiaries such as EdS. For further information please contact: Peter Earl, Managing Director, Rurelec PLC: +44 20 7793 7676 Liz Shaw, Finance Director, Rurelec PLC +44 20 7793 7676 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 Exchange