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> September 19, 2005 |
IPSA Signs Memorandum of Co-operation with Government of South Africa for Public-Private Partnership Role at Coega IPSA, the independent power plant developer with operations in southern Africa, is pleased to announce a memorandum of co-operation (the "MOC") with the Central Energy Fund (Pty) Ltd ("CEF"), the wholly owned subsidiary of the Government of South Africa, for a key role as private sector power plant developer to the integrated energy project being developed at the Coega Industrial Development Zone ("IDZ") outside Port Elizabeth. Under the role envisaged for IPSA, the Company plans to install its 521 MW of Fiat Avio 501 D gas turbines (which are in the process of being upgraded from D technology to DU (F Class) technology) in support of the integrated liquid fuel and liquefied natural gas ("LNG") importation project being developed under the auspices of the CEF. This will be one of the first examples of a public-private partnership in South Africa for an integrated LNG to electricity project. CEF acts as the holding company for PetroSA, the state-owned oil company, and iGas, the state-owned gas company. The MOC envisages IPSA proceeding with its proposed 1,600 MW Coega Fast Track Combined Cycle Gas Turbine Project (the "Coega Project") in close collaboration with PetroSA and iGas so as to achieve rapid installation of new privately financed power generation capacity in tandem with the Government of South Africa's plans for Coega to be at the heart of a new energy centre providing liquid fuels and LNG to the industrial tenants of the IDZ. Also under the MOC, a joint working group is to be established, including PetroSA and iGas and the Department of Minerals and Energy ("DME"), to co-ordinate the different parts of what will be a substantial energy development, linking fuel importation with power generation and energy distribution. IPSA and CEF have also agreed to explore further power project expansion in South Africa as part of the DME's policy of encouraging private investment in independent power generation. The MOC envisages that, following the installation of the first 521 MW in open cycle at Coega, IPSA plans to procure a further four gas turbines of similar technology and capacity at a later stage to operate in open cycle pending the switch to combined cycle upon commissioning of the Coega LNG re-gasification terminal after 2010. A combined cycle plant uses the waste heat from its gas turbines to produce extra electricity with very low carbon dioxide emissions. The Coega combined cycle plant will be the most environmentally friendly large scale power plant in South Africa and will be eligible for certified emissions reduction carbon credits under the United Nations Framework Agreement on Climate Change established by the Kyoto Protocol. Speaking today, Peter Earl, Chief Executive Officer of IPSA, said. "We are pleased to have taken these first steps towards making Coega South Africa's first integrated LNG to power project. This is an important diversification away from the dependence on the country's northern coal reserves. We intend to produce electricity locally in Port Elizabeth to permit the development of the strategic metals processing businesses at Coega which will add considerable value to the raw materials currently being exported from South Africa in their basic state." He added. "We are honoured to be working with CEF and with its gas and liquid fuels subsidiaries to provide the power needed for the smelters and processing plant now being developed at Coega. We aim to install our turbines as fast as possible to ensure uninterrupted supply of electricity in the Eastern Cape." IPSA is quoted on AIM and has a secondary listing on ALTx and is a developer of power plants in southern Africa. It is also the owner operator of South Africa's first gas-fired independent power plant at Newcastle, KwaZulu, Natal. For further information contact:
Peter Earl, CEO, IPSA Group PLC 020 7793 5600
John Llewellyn-Lloyd / Jamie Boyd, Noble & Company Limited 020 7763 2200
Sean Lunn, Hichens, Harrison (South Africa) Ltd +2721 950 2711
Allan Piper, First City Financial 020 7242 2666
Jacques de Bie, College Hill (South Africa) +2711 447 3030
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