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ENRON SIGNS POWER PURCHASE AGREEMENT WITH PALESTINE ENERGY AUTHORITY
FOR IMMEDIATE RELEASE: Friday, June 18, 1999
HOUSTON – Enron International (EI), a wholly owned subsidiary of Enron Corp., today announced that in partnership with the Palestine Electric Company (PEC) it has signed a 20-year power purchase agreement with the Palestine Energy Authority. The agreement is to supply electricity from a 136-megawatt combined-cycle power plant project they are developing in the country. The project will be located south of Gaza City in the Gaza Strip and will be the first major U.S. private infrastructure investment and first independent power project in Palestine. Initially the fuel source will be number two fuel oil with conversion to gas upon availability. The plant is expected to achieve financial close in fall 1999 and to be operational in mid-2000. The approximately US $140 million project is expected to be funded with a combination of debt and equity.
“We are proud to be able to help bring about the first independent power project in Palestine,” said Joseph W. Sutton, Enron International chairman and CEO. “This is a significant development for Enron’s interest in the region. With support from a broad range of interested parties, we are confident of the project’s success.”
PEC, which is a consortium of commercial and institutional investors, is the original co-developer of the project and will be equal partners with Enron. PEC includes as investors Consolidated Contractors Company, an international construction firm based in Athens; the Palestine Development and Investment Corporation; the Arab Bank; the Arab Palestinian Investment Company, an arm of Al Akkad Group; and the Palestinian government. The partners plan to offer to the public shares representing a one-third interest in the project through a local placement.
Enron is one of the world's leading integrated electricity and natural gas companies. The company, which owns approximately $30 billion in energy related assets, produces electricity and natural gas, develops, constructs and operates energy and water facilities worldwide and delivers physical commodities and risk management and financial services to customers around the world. Enron's Internet address is /corp, and the stock is traded under the ticker symbol, "ENE."
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For additional information please contact:
John Ambler
1-713-646-6423
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