O-STA

Contracts for Mindanao Power Project Signed / STEAG is going to build a 232 MW power plant on the Philippine island of Mindanao

Essen, Germany (ots) - STEAG has reached another milestone in its Independent Power Producer (IPP) business: On 1 December 2003, in Manila, representatives of banks, of the Philippine public utility National Power Corporation (NPC/PSALM), and of SITI and STEAG as project developers and investors signed the financing contracts for the Mindanao power plant project. "For STEAG, this is another big step forward," said Management Board member Dr. Heinz Scholtholt in informal talks on occasion of the contract signing ceremony in the capital of the Philippines. Only a few days ago, on 22 November 2003, STEAG had reported commencement of commercial operation of its Iskenderun Power Plant in Turkey.

Construction of the company's new 355 million dollar project Mindanao is planned to take 36 months. The plant is scheduled to go on stream in 2006 and will supply the island's population of 20 million with electricity. The two generating units, with a capacity of 116 MW each, will operate on local and imported hard coal. The plant is designed to meet the high environmental standards of the Government of the Philippines and of the World Bank.

The Mindanao plant will be STEAG's third power plant project abroad, following Termopaipa in Colombia (165 MW) and Iskenderun in Turkey (1,320 MW). In Germany, STEAG operates five power plants in the Rhine/Ruhr region and two other IPP plants in Leuna (158 MW) and in Cologne-Godorf (215 MW).

Mindanao hard coal-fired power plant

Facts and figures

Capital expenditure: USD 355 million

Construction & commissioning period: 36 months

Capacity: 210 MWnet

Commencement of commercial operation: December 2006

Pictures are available at: www.steag.de

ots Original Text Service: STEAG

Internet: http://www.presseportal.de

Contact:

Dr. Peter Rzeznitzeck,

Tel: ++49 (0)201/801-2427

peter.rzeznitzeck@steag.de