Combined Cycle

AES begins full operation of 1,200 MW plant in Spain

6 December 2006 — The AES Corp. announced the start of full commercial operation of AES Cartagena, the company’s first power plant in Spain. The 1,200 MW combined cycle gas turbine (CCGT) plant is located on Spain’s southeastern coast and has the capacity to generate enough energy to power approximately 300,000 homes in the country. AES Cartagena buys gas from and sells power to GDF International (GDFI), a subsidiary of Gaz de France, under a 21-year energy agreement.

The $920 million project is the largest non-recourse financed power investment in Spain. AES owns 71 percent of the Cartagena project. AES’s partners in the project include Gaz de France (GDF), which owns 26 percent, and Mitsubishi Heavy Industries, Ltd. (MHI), which owns 3 percent.

“Spain has one of the fastest growing economies in Europe, and demand for new power capacity in the country is expected to grow significantly during the next several years. AES Cartagena will be instrumental in fueling that expansion,” said John McLaren, AES President of Europe, CIS and Africa. “The gas-fired facility also will help diversify Spain’s power sector, providing a reliable source of energy for the country.”

AES Cartagena was constructed under the terms of a turnkey contract with a consortium formed by Mitsubishi Corporation, MC Power Project Management, SL, and Initec Energia, S. A. (Initec).

Non-recourse financing for the project was provided by a syndicate of European banks including Societe Generale, Calyon and ABN AMRO BANK NV as lead arrangers, as well as a subordinated debt facility provided by Societe Generale and Calyon. The financing structure was recognized regionally by Euromoney as “European IPP of the Year 2003.”