Partial sale of Hidd Power allows International Power to comply with Bahrain's regulatory requirements.

Acquisition of stake in Bahraini plant widens Malakoff's footprint in the MENA region and solidifies its position as Malaysia's leading power & water company.

Dubai, 13 May 2012 - International Power (owned 70% by GDF SUEZ) and Malakoff International Ltd., a wholly owned subsidiary of Malakoff Corporation Berhad ('Malakoff'), today announce completion of the sale of 40% of Hidd Power Company (HPC) in Bahrain from International Power to Malakoff.

Hidd Power Company is a 'Build, Own and Operate' power generation and water desalination plant with a total contracted capacity of 929 MW power and 90 MIGD of desalinated water located on the North East coast of Bahrain. In 2006, HPC was sold by the Government of Bahrain, via public tender, to a consortium of International Power plc, GDF SUEZ Energy International and Sumitomo Corporation.  HPC is amongst the largest independent water and power projects in Bahrain, providing approximately 39% and 62% of the Kingdom's current power and water supply respectively. The entire power and water output of HPC is contracted until 2027 under a Power and Water Purchase Agreement with the Electricity and Water Authority of Bahrain.

As a result of the Combination of International Power plc and GDF SUEZ Energy International in February 2011, the combined holdings of the two entities exceeded the Bahraini market concentration limits, i.e. 30% of Bahrain's installed generation capacity. This partial sale of Hidd Power Company allows the combined International Power-GDF SUEZ entity to comply with the Kingdom's regulatory requirements.

Following this sale, HPC will be 40% owned by Malakoff, 30% by International Power and 30% by Sumitomo.

Shankar Krishnamoorthy, President and CEO of International Power-GDF SUEZ Middle East, Turkey & Africa commented: "Bahrain's power and water sector is governed by well-structured regulations. By reducing our ownership in Hidd Power Company, we have now met the market concentration requirements. We thank our existing partner Sumitomo for their support throughout the process and welcome our new partner, Malakoff, in Hidd Power Company. Together we remain fully committed to providing Bahrain's citizens with the supply of power and water they need."

For Malakoff, the acquisition is in line with its strategy to further expand its operations globally. Malakoff has already won and implemented projects in Saudi Arabia and Algeria, and before that also in Oman and Jordan, and the current move to expand it presence into Bahrain will further solidify its position as a leading independent power and water producer.

Zainal Abidin Jalil, the CEO of Malakoff said: "Malakoff is very proud to have won this bid. This is indeed a corporate milestone for Malakoff. It represents not just another phase of growth for the Company but is a testimony of Malakoff's strong position in the international power and water producing sectors. We look forward to working with the other substantial shareholders namely International Power and Sumitomo Corporation. Together with these international and reputable players in power generation, we are confident that we will be able to create more value for the partnership in the longer term." 

About IPR-GDF SUEZ Middle East, Turkey & Africa
In the Middle East, Turkey & Africa region (META), International Power (owned 70% by GDF SUEZ) has a direct equity interest in more than 26 GW power capacity and almost 4.8 million m³/day of desalination capacity in operation and under construction. In the GCC, it is the leading operating independent power and desalinated water producer, with over 15 years of experience. In Bahrain, beside its 30% share in Al Hidd, International Power also has interests in two other assets:  a 45% shareholding in Al Ezzel, a 954 MW gas-fired power plant, and 45% in Al Dur, a 1,234 MW power and 48 MIGD desalination plant, which was inaugurated on 30 April 2012.

In Turkey, International Power has two plants in operation with a total capacity of 1.2 GW, and runs a natural gas distribution and retail company, IZGAZ, with over 200,000 subscribers east of Istanbul. In Africa, International Power is actively pursuing a number of projects, specifically in Morocco and South Africa.

www.iprplc-gdfsuez-meta.com

About Malakoff Corporation Berhad
Malakoff is a leading Independent Water and Power Producer (IWPP) with core focus on power generation, water desalination and operations & maintenance services. Malakoff is Malaysia's largest independent power producer with net generating capacity of 5,020 MW from its six power stations. It has also recently won the competitive bid to expand its Tanjong Bin coal-fired power plant by another 1,000MW As part of its global expansion plans, Malakoff has power and water ventures in Saudi Arabia, Algeria and Kuwait. The company is also making inroads into the fast growing South-East Asian markets. Malakoff believes in working together with all stakeholders in productive partnerships. As such, the Company takes pride in being a responsible operator and a good corporate citizen in the communities where it operates. Malakoff Corporation Berhad is a subsidiary of MMC Corporation Berhad.

www.malakoff.com.my

For more information please contact:
IPR-GDF SUEZ Middle East, Turkey & Africa
Brigitte Dierckx
+971 4 45 70 721
Brigitte.dierckx@iprplc-gdfsuez.com       

Malakoff
Yusop Abdul Rashid
+6012 3401 082
yusop.rashid@malakoff.com.my 

© Press Release 2012