Uncategorized

PSEG Global reaches financial closing for Elcho project in Chorzow, Poland

LONDON, Nov. 1, 2000 (PRNewswire) — PSEG Global, through its investment in ELCHO Sp z.o.o. has reached financial closing on a 220 MW and 500 MW combined heat and power plant in Chorzow Poland in Upper Silesia.

The new facility will replace one of the country’s oldest established heat and power generators, Elektrownia Chorzow, which will continue to operate during construction. The total cost for the project is estimated at approximately $324 million with commercial operation targeted for 2003.

“Bringing this project to closing has taken a tremendous amount of work and cooperation from a wide range of individuals – from government, from the unions, from lenders and from our partner. We thank them and look forward to continuing to work together to complete this project and to begin to bring the tremendous benefits of this project to the surrounding community,” said John Protasiewicz, Director Project Development, PSEG Global

Dresdner Kleinwort Benson was the sole lead arranger and underwriter for the project financing. Approximately 28% of the project debt is denominated in Polish Zloty. PSEG Global holds a 90% economic interest in ELCHO with Elektrownia Chorzow holding the remaining interest.

It was previously announced that Foster Wheeler had been chosen as EPC (Engineering, Procurement and Construction) Contractor for the project, which will utilize Foster Wheeler’s advanced circulating, fluidized bed boiler technology. It is anticipated that 60% of the EPC Contract value will be spent in Poland. The project construction is expected to create or secure a total of 1150 local jobs.

PSE, the Polish Power Grid Company, has signed a long-term power purchase agreement with ELCHO and it is planned for all of the power to be delivered into the GZE local distribution system. PEC Katowice, the district heating company serving the city of Katowice and its surrounding communities, has committed to purchase ELCHO’s overall 500 MW thermal capacity under a long-term agreement.

PSEG Global develops, acquires, owns and operates electric generation and distribution facilities and engages in power production and distribution, including wholesale and retail sales of electricity in selected US and international markets.

PSEG Global has ownership interests in 22 operating generation projects totaling 2,118 MW (569 MW net) located in the United States, Argentina, China and Venezuela. Global has ownership interests in 16 projects totaling 4,936 MW (2,298 MW net) in construction or advanced development that are located in the United States, Argentina, Venezuela, India, Tunisia, China, Italy and Poland.

The company provides electricity to approximately 2.8 million customers in Argentina, Brazil, Chile and Peru through its interests in six distribution companies. PSEG Global is a direct subsidiary of PSEG Energy Holdings and an indirect subsidiary of Public Service Enterprise Group (PSEG) (NYSE: PEG). To learn more about PSEG or PSEG Global visit http://www.pseg.com.

SOURCE: PSEG Global