AES Barka Power and Water Project in Oman Secures $349 Million Financing; Facility is First AES Business in Middle East.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--May 4, 2001

The AES Corporation (NYSE:AES) announced today that its subsidiary, AES Barka SAOC, has entered into a loan agreement with ANZ Investment Bank and Arab Banking Corporation acting as lead arrangers, securing $348.6 million in bank financing for a plant that will supply 427 MW of power and 20 million imperial gallons per day (MIGD) of desalinated water.

AES holds an 85% interest in the business with Multitech, a local partner holding the remaining interest. Funding is subject to the fulfillment of certain conditions precedent.

The power facility is being designed and built by a consortium of Enelpower SpA of Italy and Hitachi Zosen of Japan. The plant features two model V94.2 gas turbines, a steam turbine and two steam generators supplied by Ansaldo.

Limited notice to proceed was issued to the contractors in December 2000 and final notice to proceed will be issued on June, 1, 2001. Commercial operations are expected in April 2003.

The electrical and water output from the facility will be sold to Ministry of Electricity and Water under a 15 year power and water purchase agreement. Gas will be supplied by the Ministry of Gas under a 15 year natural gas supply agreement.

Mr. Venu Nambiar, Project Director for AES Barka SAOC, commented, "Work by our contractor is on schedule and we now have completed our bank financing. We expect to produce competitively priced power and water in time for the peak summer of 2003. Since Barka will be among the lowest cost producers in Oman, we believe we can serve electric and water customers competitively for decades to come."

Mr. Dennis W. Bakke, President and Chief Executive Officer of AES, stated, "AES Barka represents AES' first entry into the Middle East power and water market. We are very excited about this opportunity to serve Oman and will take additional steps to expand our participation in the significant Middle East power and water markets."

Business development milestones in 2001 include the following:

-- In May AES announced that it won a bid for approximately $23.2 million to
purchase a 75% controlling interest in Rivenoblenergo, the distribution company
that serves the Rivno region, which is about 200 kms from Kiev, the capital
city of the Ukraine.

-- In April, AES announced that it won a bid for approximately $45.9 million to
purchase a 75% controlling interest in Kievoblenergo the distribution company
that serves the region that surrounds Kiev, the capital city of the Ukraine.

-- In April, a subsidiary of AES signed agreements for the financing of its
$300 million, 450 MW combined cycle gas-fired Meghnaghat power plant in
Bangladesh.

-- In April, a subsidiary of AES completed a $180 million financing for its 360
MW gas-fired combined cycle facility Haripur in Bangladesh.

-- In April, AES announced the completion of its acquisition of IPALCO in
Indiana.

-- In March, a subsidiary of AES secured the financing for the 720 MW gas-fired
Granite Ridge project in New Hampshire.

-- In March, a subsidiary of AES acquired from EniChem SpA an oil-fired 140MW
cogeneration facility in the town of Ottana, which is in the province of Nuoro,
Sardinia, Italy.

-- In February, a subsidiary of AES entered an agreement to purchase all of the
energy assets of Thermo Ecotek Corporation, a wholly owned subsidiary of Thermo
Electron Corporation of Waltham, Massachusetts for $195 million.

-- In January, AES announced the start of construction of the $300 million AES
Wolf Hollow power plant at a site in Granbury, Texas.

-- In January, a subsidiary of AES acquired a majority interest in a 290MW
barge-mounted natural-gas-fired electric generating business in Lagos, Nigeria.


-- In January, AES Huntington Beach submitted a proposal to the California
Energy Commission to restart two retired gas-fired units that will add an
additional 450 megawatts of generation in the electricity-strapped state of
California.

-- In January, AES announced the purchase of an additional 39% ownership
interest in Hidroelectrica Alicura, a 1000 MW hydro plant in Argentina.

-- In January, AES announced that it had successfully completed its offer to
exchange all American Depositary Shares of Gener S.A. for AES common stock.

AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses in Argentina, Australia, Bangladesh, Brazil, Canada, Chile, China, Colombia, Dominican Republic, El Salvador, Georgia, Hungary, India, Italy, Kazakhstan, the Netherlands, Nigeria, Mexico, Oman, Pakistan, Panama, Sri Lanka, the Ukraine, the United Kingdom, the United States and Venezuela.

The company's generating assets include interests in one hundred and sixty six facilities totaling over 58 gigawatts of capacity. AES's electricity distribution network has over 920,000 km of conductor and associated rights of way and sells over 126,000 gigawatt hours per year to over 17 million end-use customers.

In addition, through its various retail electricity supply businesses, the company sells electricity to over 154,000 end-use customers.

AES is dedicated to providing electricity worldwide in a socially responsible way.

This news release may include forward-looking statements. Actual events and results may differ materially from those projected. Factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, and readers are encouraged to read those filings to learn more about the risk factors associated with AES's businesses.

For more general information visit our web site at www.aesc.com or contact investor relations at [e-mail]. The list aes-pr-announce is an automated mailing list and can be found on the investing page of our web site. Those who subscribe to this list will receive updates when AES issues a press release.