RNS Number:2104K
International Power PLC
22 April 2003



International Power led consortium agrees to acquire 40% of the Umm Al Nar power
and water plant, UAE and also signs agreements to expand the plant and sell
entire output to ADWEC under a 23-year agreement



(London - 22 April 2003)  We are pleased to announce that a consortium led by
International Power and including Tokyo Electric Power Company (TEPCO) and
Mitsui & Co. Limited (Mitsui), has agreed to acquire a 40% equity interest in
the Umm Al Nar water and power plant from the Abu Dhabi Electricity and Water
Authority (ADWEA).  The remaining 60% ownership interest in the plant will
continue to be held indirectly by ADWEA.  The consortium has also signed
agreements to expand the plant and sell the entire power and water output to the
Abu Dhabi Water and Electricity Company (ADWEC) under an approximate 23 year
Power and Water Purchase Agreement (PWPA).



International Power will own 50% of the consortium investment vehicle, which
equates to a 20% equity interest in the plant.  International Power's equity
investment will be a maximum of #56 million.



The plant will be operated and maintained by an operating company (which will be
owned 70% by International Power and 30% by TEPCO) under a long-term Operation
and Maintenance contract for the entire term of the PWPA.



"This agreement represents a very good opportunity for us to capitalise on our
strengths in the region, through both the operation of existing plant and the
development and construction of new plant," said David Crane, Chief Executive
Officer of International Power.  "We have been working closely with excellent
partners, namely ADWEA, who are also our partner and customer at our other
project in Abu Dhabi (Shuweihat S1), together with TEPCO and Mitsui, and we
believe this project will be a great success," he added.



Financial Information:



The total project cost (comprising the cost of acquisition and the cost of the
expansion project) is estimated at $2.1 billion (#1.4 billion), which is to be
funded by a mix of non-recourse project finance debt, shareholder equity, and
cash inflow from operating the existing plant.  The mandated lead arrangers for
this financing plan, which comprises both conventional long-term and short-term
debt, include Bank of Tokyo Mitsubishi, HSBC, Gulf International Bank, ING,
Sumitomo Mitsui Banking Corporation, West LB, National Bank of Abu Dhabi and
First Gulf Bank.



Like the Shuweihat S1 project, which was the first power and water project to
use a combined conventional and Islamic financing structure, this project will
also be supported by an Islamic loan facility, which will be arranged by Abu
Dhabi Islamic Bank.  Financial close is expected in June 2003.



The consortium's total equity commitment to the project is estimated at a
maximum of #112 million, which will be shared by the partners in ratio of their
ownership interest.  International Power owns 50% of the consortium investment
company, TEPCO 35% and Mitsui 15%.



Audited information relating to the book value of existing plant, and past
profits attributable to the asset being acquired is not available, as this
acquisition is part of Abu Dhabi's power and water privatisation process.



About the Umm Al Nar Power and Water Plant and its Planned Extension:



Located close to Abu Dhabi city, the gas-fired Umm Al Nar plant has an installed
capacity of 850 MW for power and is capable of producing 162 MIGD (Million
Imperial Gallons per Day) of desalinated water.



Under the terms of the PWPA with ADWEC, the consortium will also develop a new
gas fired power and water plant adjacent to the existing plant.  This new
facility will have an installed power and water capacity of 1,550 MW and 25
MIGD, respectively.



The engineering, procurement and construction contract for the new plant has
been awarded to Mitsui, with Toshiba and Hitachi Zosen as principal
sub-contractors for the power and water plant respectively.  The new plant will
be constructed using GE9FA turbines and Multi-stage Flash desalination
technology.  Construction will commence in the third quarter of 2003 and
commercial operation is expected by mid-2006.



On completion of this new facility, seven of the existing (but relatively new)
desalination units totalling 69.5 MIGD will be integrated with the new water
plant, taking the total water capacity of the new plant to 94.5 MIGD.  In
mid-2008, the remaining existing water and power units will be handed back to
ADWEA for decommissioning, leaving the final size of the Umm Al Nar plant at
1,550MW and 94.5 MIGD.  For a two-year period when the new extension and the
existing power and water plants are running concurrently, the total contracted
capacity at the site will be 2,200 MW power and 143 MIGD water.



The Power and Water Purchase Agreement (PWPA):



The consortium is pleased to have signed an approximate 23-year 'take-or-pay'
Power and Water Purchase Agreement with ADWEC.  This contract, which will cover
805 MW and 157 MIGD of the existing Umm Al Nar plant, will take effect on
completion of acquisition.  Under the terms of the contract, ADWEC will also
purchase the entire output from the new plant when it reaches commercial
operation.



As per the terms of the PWPA, fuel will be procured and paid for by ADWEC.



This acquisition is anticipated to reach completion by June 2003 and is expected
to be immediately earnings accretive for International Power.



For further information please contact: -



Media contact:

Aarti Singhal

+44 (0) 7989 492 447

+44 (0)207-320-8681



Investor contact:

Grant Jones

+ 44 (0)207-320-8619



About International Power:



International Power plc is a leading independent electricity generating company
with 10,890MW (net) in operation and 300MW (net) under construction. Among the
countries where International Power has facilities in operation or under
construction are Australia, the United States, the United Kingdom, the Czech
Republic, the UAE, Portugal, Turkey, Malaysia, Pakistan, and Thailand.
International Power was created from the de-merger of National Power, and its
shares began trading independently on the London Stock Exchange and as ADRs on
the New York Stock Exchange on 2 October 2000. The ticker symbol on both stock
exchanges is "IPR".


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

ACQITMLTMMATMJJ