AES Completes Financing Agreements for $300 Million Meghnaghat Power Plant in Bangladesh; 450 MW Facility Joins 360 MW AES Haripur.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--April 12, 2001

The AES Corporation (NYSE:AES) announced today that its subsidiary, AES Meghnaghat Limited, signed agreements on April 11 with the Asian Development Bank (ADB), Infrastructure Development Company Limited (IDCOL) and ANZ Investment Bank, the investment banking arm of Australia and New Zealand Banking Group Limited (ANZ), for the financing of its $300 million, 450 megawatt combined cycle gas-fired power plant in Bangladesh.

Funding is subject to the satisfaction of certain conditions precedent.

Up to $220 million of the total project cost is being funded through one of the first cross-border, non-recourse debt financing transactions ever completed in Bangladesh.

The financing consists of a $50 million direct loan from the ADB, a $20 million co financing facility arranged under the ADB's Complementary Financing Scheme and a $70 million facility guaranteed by the ADB pursuant to its Partial Risk Guarantee program.

ANZ is acting as the sole arranger and underwriter of both the ADB co financing facility and the ADB guaranteed facility for a total commitment of $90 million. IDCOL, a Government of Bangladesh lending institution which is sponsored by the World Bank, will be providing a total of $80 million, which consists of a $60 million subordinated facility and a $20 million senior facility.

AES Corporation will make an $80 million equity contribution.

The project is a "first" in many respects:

-- largest ever cross-border, non-recourse debt financing package to be
arranged and raised for a private sector infrastructure development project in
Bangladesh;

-- first large-scale independent power program in the country (together with
AES Haripur) to be developed, financed and implemented under the Private Sector
Power Generation Policy of Bangladesh;

-- first ever project financing transaction to benefit from the Partial Risk
Guarantee scheme of the ADB; and

-- first ever infrastructure development project in Bangladesh to be financed
by World Bank-sponsored IDCOL.

AES will own and operate the Meghnaghat plant, which is located 30 km south east of the capital city of Dhaka, Bangladesh. Electricity will be sold to Bangladesh Power Development Board under a 22-year power purchase agreement at one of the lowest electricity prices ever offered.

Titas Gas Transmission and Distribution Company, Ltd. (a wholly-owned subsidiary of state energy company Petrobangla) will supply natural gas to the power plant for the term of the power purchase agreement.

The plant is being designed and built by a consortium of Hyundai Engineering & Construction Co. Ltd. and Hyundai Heavy Industries Co. Ltd. Construction of the facility began on January 24, 2001 and is expected to be completed by October 2002.

Mr. Scott Kicker, Project Director for AES Meghnaghat, commented, "This is another great accomplishment for the AES team in Bangladesh, which also recently completed the financing for the 360 MW AES Haripur combined cycle gas-fired power plant. We are delighted to have secured the financing for AES Meghnaghat, a business that will supply greatly needed electricity to the people of Bangladesh under a long-term contract that features one of the lowest electricity prices in the history of AES. This would not have been possible without the support provided of the ADB, IDCOL, ANZ and the Government of Bangladesh."

Mr. Dennis W. Bakke, President and Chief Executive Officer of AES, stated, "We are pleased that we have achieved this important milestone in Bangladesh for a plant that will deliver such clean and low-priced electricity. The Meghnaghat business expands our presence in the sub-continent and demonstrates how a dedicated project team, supported by AES people around the world working together, can deliver on earlier commitments. We also appreciate all of the assistance that has been provided by the many organizations other than AES who have been essential to make this project happen".

Business development milestones in 2001 include the following:

-- In April, a subsidiary of AES completed a $180 million

financing for its 360 megawatt combined cycle gas-fired

Haripur plant, 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 a 140

MW oil-fired 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 290 MW 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 1,000 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, Mexico, the Netherlands, Nigeria, Oman, Pakistan, Panama, Sri Lanka, the United Kingdom, the United States and Venezuela.

The company's generating assets include interests in one hundred and sixty five 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.