Taweelah B IWPP Achieves $2.1 Billion Financial Close

Abu Dhabi, United Arab Emirates (UAE) — April 25, 2005

In a ceremony led and organized by the Abu Dhabi Water and Electricity Authority ("ADWEA"), the Taweelah B independent water and power project ("IWPP") reached financial close on a $2.1 billion financing package today in Abu Dhabi, UAE. The project company, Taweelah Asia Power Company ("TAPCO"), is owned 60% by ADWEA and 40% by an international consortium comprised of Marubeni Corporation and JGC Corporation of Japan, BTU Power Company ("BTU") of the USA and Powertek of Malaysia.

The international consortium was selected by ADWEA as the winning bidder in October 2004, against strong competition. BTU has a 25% equity interest in the consortium and has committed to provide equity funding to the project totaling $75 million. In addition, Qatar National Bank, one of BTU's shareholders, is acting as a sub-underwriter.

TAPCO took over effective ownership and operations of the existing Taweelah B plant, a 928 MW and 92 MIGD power and water plant, at midnight on April 25, 2005. The consortium will proceed to rehabilitate the plant, increasing power and water capacity, and to construct, own and operate a new 1,000 MW and 60 MIGD expansion plant, bringing the total capacity of the Taweelah B plant to approximately 2,000 MW and 160 MIGD. Siemens and Fisia Italimpianti will assume responsibility for engineering, construction and procurement, with a scheduled completion date of July 2008. TAPCO will operate the plant under a long-term contract, alongside its sub-contractors, Fortum and Babcock Borsig.

BTU Group Chief Executive Officer Wael Almazeedi, who attended the ceremony, praised ADWEA, observing that "Abu Dhabi has clearly established itself as a world leader in the privatization of power generation assets, with five well-structured IWPPs involving leading international power developers from the USA, Europe, and Asia." Almazeedi continued, "The Japan Bank for International Cooperation ("JBIC") provided TAPCO with $1.3 billion credit facility, a first for Japan in the Middle East and the largest facility the bank has ever provided to a single project. This has opened the door for additional substantial investment by Japanese corporations in the Gulf Cooperation Council ("GCC") energy sector.

"BTU is committed to developing its business as a strategic investor in power and gas assets in the GCC region," Almazeedi said, "and investment in IWPPs in this region represents a major part of BTU's activities. The Taweelah B project provides the platform for BTU to participate in future IWPP opportunities, not only in the UAE, but across the GCC region."

BTU Power and its affiliates (collectively the "BTU Group") acquire operating assets and develop projects in the mid- and downstream segments of the energy value chain located in the Middle East, North Africa and Asia. The BTU Group's shareholders include leading institutional investors and commercial and investment banks in the GCC countries. The BTU Group can be contacted through its offices in Massachusetts, USA and in Dubai, UAE.