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5 March 2008 - Independent power producer International Power plc, together with its project partner Endesa, has signed both the offtake and EPC contacts, and successfully completed the financing for the new 830 MW CCGT Elecgas project in Portugal.
The entire output of the new plant will be sold to Endesa Generacion S.A., a subsidiary of Endesa, under a 25-year offtake contract. The EPC agreement has been signed with Siemens.
The plant, which is to be located on a site adjacent to the existing 600 MW Tejo coal fired power plant, will be owned and operated on a 50:50 basis by International Power and Endesa.
The total project cost is estimated to be €580m ($886m), which will be funded by a mix of debt and equity in an 85:15 ratio. For its 50 per cent share, International Power's equity investment will total €44m.
Commenting on the project, Philip Cox, chief executive of IP, said: "This project will strengthen our position in the attractive Portuguese market, add to our long term contracted earnings stream and is a good example of how we can deliver and finance organic growth from within our portfolio at attractive terms".
The facility will be constructed by a consortium led by Siemens under a turnkey EPC contract utilizing the SGT5-4000F turbines in combined-cycle mode with a targeted efficiency rating of over 58 per cent. The full scope of supply encompasses two SGT5-4000F gas turbines, two steam turbines, two hydrogen-cooled generators, and the entire electrical and I&C equipment
Following the start of commercial operation scheduled for 2011, Siemens will also assume responsibility for maintenance of the power train for a period of 25 years. The total value of the order including the long-term service agreement is approximately €600m.
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