22nd June 2011
Aggreko signs 100 MW power and fuel supply contract in Tanzania
Aggreko plc, the world leader in the provision of temporary power and temperature control services, has signed a contract with the Tanzania Electric Supply Company (TANESCO) to supply 100 MW of emergency power for twelve months. The contract involves providing two 50 MW diesel-powered plants at Ubungo and Tegeta, as well as managing the fuel supply associated with the power generation. The estimated value of the power contract is $37 million; the pass-through fuel contract is similar to that currently operated by Aggreko in Uganda and in previous years in Sri Lanka, and involves managing the fuel supply to the power plants. The value of the fuel contract will depend on the monthly price of diesel, and the amount of power generated; Aggreko will charge a small fee for managing the fuel supply. The contract will become effective following the completion of a number of conditions precedent, including the delivery of bonds and guarantees customary for a contract of this type.
More than two-thirds of Tanzania's electricity is hydro-powered; the prolonged drought currently besetting East Africa has resulted in a significant reduction in the amount of electricity being generated by hydro plants. The reduced supply of electricity, combined with the rapid growth of the Tanzanian economy and consequent increase in demand for power, means that power rationing has become a regular event.
The addition of 100 MW of power will help stabilise the Tanzanian power supply and reduce load-shedding, and thereby support continued economic growth while TANESCO works to implement long-term solutions to improve power generation and distribution.
Rupert Soames, Chief Executive of Aggreko, said: "Having successfully delivered 40MW of emergency power between 2006 and 2008, we are delighted that, following a competitive tender process, we have once again been selected to be of service to Tanzania." The award of this contract will take Aggreko's order intake in the first six months of 2011 to at least 630MW.
Rupert Soames / Angus Cockburn
Tel: 0141 225 5900
Neil Bennett / Brian Cattell
Tel: 020 7379 5151
Aggreko plc is the world leader in the supply of temporary power and temperature control solutions. Aggreko employs over 4,000 people operating from 148 locations. In 2010 we served customers in about 100 countries, and had revenues of approximately £1.2 bn. Aggreko plc is listed on the London Stock Exchange (AGK.L), is a member of the FTSE-100 index, and is headquartered in Scotland. For more information, please visit the company website at www.aggreko.com.
Aggreko provides power and temperature control solutions to customers who need them either very quickly, or for a short or indeterminate length of time. Examples would be the supply of power to an industrial site which needs to service its permanent power supply, supplying a whole city in times of power shortage, or providing a major sporting event with power and cooling systems. We serve our customers either through our 148 service centres, which we call the Local Business, or globally through our International Power Projects business.
In the Local business, which accounts for about half of our revenues, we hire our equipment to customers, who then operate it for themselves, although we retain responsibility for servicing and maintaining it. In the International Power Projects business, which also accounts for about half of our revenues, we operate as a power producer. We install and operate power plants and we charge our customers both for providing the generating capacity, and for the electricity we produce. We design and manufacture equipment specifically for these requirements in our factory in Dumbarton, Scotland.
Recent customers include the FIFA World Cup in 2010, the Vancouver 2010 Olympics and the power utilities in over 50 countries including the UK, France, Angola, Kenya, Indonesia, Bangladesh, Venezuela, Chile, Brazil and the USA.
For more information, please visit the company website at: www.aggreko.com