Rurelec Regulatory News (RUR)

29 Aug 2006 17:07

Rurelec PLC29 August 2006 The following replaces the Bolivia Update announcement released today at 9.30 a.m. under RNS number 1689I. The stated dividend policy within the last paragraph of the announcement has been amended. The full amended announcement follows. Bolivian Expansion on Track for Rurelec's Empresa Guaracachi SA ("Guaracachi") DATE: 29 August, 2006 Rurelec plc, the AIM-quoted power developer and owner of power plants in LatinAmerica, today announces that its Guaracachi subsidiary has successfullycommissioned its new 8 MW addition to its Aranjuez power plant in Sucre, thefederal capital of Bolivia. At the same time the Guaracachi's 71 MW expansion ofcapacity under construction in Santa Cruz in the east of Bolivia remains ontrack for commissioning in November of this year. Together the two new powerfacilities represent some 10 per cent. of the peak demand of Bolivia. Rurelec acquired control of Guaracachi in January 2006. By the end of the year,Guaracachi's installed capacity in Bolivia will have increased by 22 per cent.from 360 MW to 440 MW. Guaracachi is Bolivia's largest power generation company.At the same time as completing its current new power capacity, Guaracachi hasbeen working on two further expansion projects. The first consists of 120 MW of power capacity to be based in Yacuiba inBolivia's Department of Tarija close to the border with Argentina. This capacityis intended to stimulate economic growth to the south of Bolivia where thenational transmission grid has not yet been extended. This plant will also beinterconnected to the northern grid system of Argentina which currently suffersfrom power shortages. Guaracachi is in negotiation with the Bolivian nationaloil and gas company, YPFB, for a long term gas supply for its new plant. Apreliminary agreement for the sale of electricity has already been signed withCEMSA, the Argentine power trading subsidiary of Endesa of Spain. The second project is the 80 MW combined cycle gas turbine ("CCGT") expansionproject which consists of the conversion in Santa Cruz of two existing GeneralElectric 6FA gas turbines to combined cycle operation. This project has alreadybeen submitted for approval as Bolivia's first carbon credit power generationproject under the Kyoto Protocol. The new capacity is due to be brought intoservice at the end of 2007 and will meet Bolivia's growing demand for new powercapacity to match its 6 per cent. growth in GDP, the highest level of economicgrowth that Bolivia has experienced in a decade. Guaracachi continues to trade well in line with its 2005 results and remainscommitted to a high level of dividend payout in early 2007 based on its 2006financial results consistent with its policy of distributing profits toshareholders. Rurelec in turn intends to maximize the payout to its ownshareholders of dividends received from Rurelec subsidiaries. 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