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Mubadala, SNC-Lavalin winning bidder

for $ 900 million Algeria's Hadjret Ennous IPP Abu Dhabi, 26 Dec. 05 (WAM)- Abu Dhabi-based MubadalaDevelopment Company has entered into a Joint Bidding Agreement(JBA) with SNC-Lavalin Inc., the preferred bidder for a projectto build, own and operate a 1,200 Megawatt power generation plantat Hadjret Ennous in western Algeria.

The project's total value is estimated at USD 900 million(approximately AED 3.3 billion).

On December 17, SNC-Lavalin was announced as the winning bidderfor the Independent Power Project (IPP). Following the announcement,a protocol agreement on the terms of the required investmentin the project company was signed with the Algerian Energy Company(AEC) which is equally owned by the state energy company Sonatrachand the state power company Sonelgaz.

Khaldoon Khalifa Al Mubarak, Chief Executive Officer of MubadalaDevelopment, said the investment in Hadjret Ennous IPP is inline with the company?s utilities investment strategy in theemerging markets of North Africa.

"Mubadala Development is extremely bullish on Algeria's fastgrowing energy sector. This is our debut venture in the promisingNorth African utilities sectors and we seek to use it as a steptowards other investment opportunities in Algeria, as it hasalways been a prime focus of our interest," he said.

"We are also very pleased to be partnering with SNC-Lavalinin this project. The JBA with SNC-Lavalin is not only strategicin nature, but also provides several potential opportunitiesfor future cooperation in other markets," added Al Mubarak.

Under the JBA, Mubadala Development and SNC-Lavalin will equallyco- invest to own a 51% stake in the project company. The remaining49% of the project company will be owned by Algerian Governmententities.

Sonelgaz will guarantee the purchase of the power producedby the plant to fuel growing demand for electricity in Algeria,estimated at 4% per annum, and will sign an energy conversionagreement to that effect with the project company.

An estimated $ 650 million of the project's cost will be raisedthrough financing on a non-recourse basis via 70:30 debt to equityratio.

Meanwhile, Mubadala Development and SNC-Lavalin are in theprocess of acquiring a substantial stake in the newly built 800Megawatt combined cycle power plant of Skikda, in eastern Algeria.

The Skikda power plant is being built by SNC-Lavalin, andis scheduled to be commissioned in the first quarter of 2006.

Mubadala Development is a Public Joint Stock company, establishedand wholly owned by the Government of Abu Dhabi with a missionto invest in commercially-viable, strategic, industrial and commercialpartnerships. The company manages a diversified portfolio oflocal, regional, and international investments.

International investments include the Italian luxury sportcar maker Ferrari (5% stake), the Dutch fleet management giantLeasePlan Corporation (25% stake), and a stake in nine oil explorationblocks in Libya.

Locally and regionally, Mubadala Development has investedin, and developed, a number of leading projects including thefirst GCC cross-border natural gas project, Dolphin Energy (51%majority stake), Aldar Properties, National Central Cooling Company,Abu Dhabi Ship Building, Imperial College London Diabetes Centerin Abu Dhabi, Injazat Data Systems, and Tanqia. Mubadala Developmentis also leading the development of the UAE University?s new campusin Al Ain City through a Public-Private Partnership initiative.