AES Ras Laffan Completes $572 Million Project Financing.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Nov. 26, 2001

The AES Corporation (NYSE: AES) announced today that its subsidiary, AES Ras Laffan Holdings Limited, has achieved financial closing of its $572 million bank loan jointly arranged by ANZ Investment Bank, Arab Banking Corporation, Barclays Capital, BNP Paribas, Gulf International Bank, HSBC Bank Middle East, Qatar National Bank, Societe Generale, The Bank of Tokyo-Mitsubishi and The Industrial Bank of Japan for its 750 megawatt and 40 million imperial gallons per day (MIGD) gas-fired combined cycle co-generation power and water desalination facility in the State of Qatar.

Subject to satisfaction of certain conditions precedent, AES expects the first drawdown under the debt facility to take place shortly.

AES owns a 55% equity interest in the business and will assume operating responsibility. The remaining 45% interest is held by the Qatar Government-owned Qatar Petroleum (QP) and the Qatar Electric & Power Company (QEWC), along with the Gulf Co-operation Council (GCC)-owned Gulf Investment Corporation (GCC).

The sole purchaser of the electric and water output from the plant will be the State-owned electric and water distribution organization, KAHRAMAA, under a 25-year power and water purchase agreement. Qatar Petroleum will supply natural gas to the plant and will also build a common seawater facility at Ras Laffan Industrial City for seawater supply.

The project company has entered into a fixed-price, turnkey EPC Contract with a consortium of ENEL Power and Fisia Italimpianti (both of Italy) to build the power and water desalination facility. The plant is expected to be fully operational by May 2004, with partial electric deliveries available as early as March 2003.

Tabish Gauhar, Director for AES Ras Laffan, commented, "The financing of the Ras Laffan project faced a uniquely challenging set of issues because of the condition of international banking as well as the re-insurance markets. With the help and active support of the Government of Qatar and the international and regional banks, we are pleased to have closed this project without delay."

Dennis Bakke, President and Chief Executive Officer of AES, stated, "The Ras Laffan project is important for AES in the region. We are thankful to the Qatar Government for giving us the opportunity to become a part of their electricity and water sectors."

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

The company's generating assets include interests in one hundred and eighty three facilities totaling over 62 gigawatts of capacity. AES's electricity distribution network has over 946,000 km of conductor and associated rights of way and sells over 135,000 gigawatt hours per year to over 19 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.

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