Financial Releases
Aggreko signs power-generation contracts worth an estimated $70 million - First major contract for new gas-powered generators
26 Jul 2006
Aggreko plc, the world leader in the provision of temporary power, temperature control and oil-free compressed air solutions, has been awarded contracts for the provision of temporary power generation in both Uganda and Tanzania. Together, these two contracts call for 90 MW of generating capacity and are likely to be worth in excess of $70 million over the next two years.
The contract in Tanzania has been awarded by The Tanzanian Electric Supply Company (TANESCO), and is for the supply for two years of 40 MW of gas-powered generation. The plant will be installed in Dar es Salaam and will be supplied with natural gas from the offshore Songo Songo gas field.
The Ugandan contract, which is also for two years, has been awarded by the Government of Uganda and a Power Purchase Agreement has been entered into with Uganda Electrical Transmission Company Ltd (UETCL). This contract, which is for 50 MW of generation capacity, is in addition to the 50 MW installed by Aggreko in 2005, and means that the Aggreko will be supplying an estimated 40% of the country’s total grid capacity. In addition to the power generation contract, Aggreko will be providing fuel on a pass-through basis for the contract, which is likely to be worth approximately $120m at current prices.
Both these contracts have arisen as a consequence of the severe lack of rainfall in East Africa, where many countries are dependent on hydro-power for their electricity supply. Low water-levels in the region’s major dams have lead to significantly reduced power output, and Aggreko is now supplementing grid supplies in Kenya, Rwanda, Tanzania, and Uganda.
Rupert Soames, Chief Executive of Aggreko, said:
“We are extremely pleased to have won these contracts. The Tanzanian contract is a vindication of the step-out investment we made last year into gas-powered generation. Gas represents an important new market opportunity for Aggreko, and is a particularly good solution in countries, like Tanzania, which have abundant gas reserves.
“The additional Ugandan contract is testimony to the success of the existing Aggreko power plant in Kampala, and we are delighted to be able to provide additional support to meet the power generation requirements of the country.”
As is usual in such projects, implementation will start, and the contracts become effective, once associated bonds and guarantees are in place.
Ends
Enquiries to:
| Rupert Soames / Angus Cockburn |
Aggreko plc |
Tel: 0141 225 5900 |
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| Wendy Timmons |
Maitland |
Tel: 020 7379 5151 |
Notes to Editors:
About Aggreko
Aggreko plc is the global leader in the rental of power, temperature control and oil-free compressed air systems. We help customers in many different industries to improve and safeguard their operations by solving problems, creating opportunities and reducing risk. Aggreko provides 24/7 availability and service support with more than 2,200 employees operating from over 100 locations in 28 countries. In 2005, we served customers in 80 countries, and had revenues of £417m. For more information, please access the company website at http://www.aggreko.com/.