AES Tanzania Completes $250 Million Project Financing; Songo Songo Gas-to-Electricity Project Under Construction.Business Editors ARLINGTON, Va.--(BUSINESS WIRE)--Oct. 12, 2001 The AES Corporation AES Corporation AES (NYSE) is a Fortune 1000 company that generates and distributes electrical power. It was founded on January 28, 1981 by Roger Sant from the US Federal Energy Administration and Dennis Bakke from the Office of Management and Budget. (NYSE NYSE See: New York Stock Exchange :AES) announced today that its subsidiary, AES Tanzania Ltd, has completed the $250 million multilateral credit financing from the International Development Association and the European Investment Bank European Investment Bank, nonprofit bank created in 1958 by the six founding countries of the European Economic Community (now part of the European Union [EU]). for the Songo Songo Gas-to-Electricity Project. The loans will be extended to the Government of Tanzania on concessionary terms, and then lent to the project. The Songo Songo project, in which AES Tanzania purchased the majority stake from TransCanada Pipelines International and PanAfrican Energy Corporation, is currently in construction in Tanzania. The other shareholders in the project company, Songas Limited, are CDC See Control Data, century date change and Back Orifice. CDC - Control Data Corporation Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Tanzania Development Finance Co. and the Tanzanian power and gas utilities, TANESCO and TPDC TPDC Training Performance Data Center TPDC Terphenyldicarboxylate . Debt and equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. will occur pari passu [Latin, By an equal progress; equably; ratably; without preference.] Used especially to describe creditors who, in marshalling assets, are entitled to receive out of the same fund without any precedence over each other. PARI PASSU. By the same gradation. through the remainder of the construction period. Tenders are in preparation for the construction of the gas processing facilities, the pipelines from Songo Songo Island to Dar es Salaam Dar es Salaam Largest city (pop., 1995 est.: 1,747,000), capital, and major port of Tanzania. Founded in 1862 by the sultan of Zanzibar, it came under the German East Africa Co. in 1887. and the conversion of the existing 112MW Ubungo power plant in Dar es Salaam to burn natural gas. The project envisages the addition of a fifth, 35MW turbine to the power plant, as well as future gas sales. Commercial operation is expected in October 2003. All of the electrical output from the Ubungo plant will be sold through a 20-year power purchase agreement with TANESCO (or its post-privatization successor). Gas not required for the Ubungo plant will be marketed by PanAfrican and TPDC, and transported by Songas according to an agreed tariff. Helen Wilson, Project Director for AES Tanzania, commented, "AES is delighted to have been able to conclude the development of this long-awaited project. We commend the Government of Tanzania and the other project parties for their perseverance and commitment to enabling Tanzania to exploit its indigenous gas resources. The Songo Songo project will secure lasting economic benefit and enhanced reliability of power supply for the people of Tanzania." Dennis Bakke, President and Chief Executive Officer of AES, stated, "Africa is a place that we can make a major positive contribution in an economically sustainable way. Songo Songo is a good example of that approach." 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, the Czech Republic, the Dominican Republic, El Salvador, Georgia, Germany, Hungary, India, Italy, Kazakhstan, the Netherlands, Nigeria, Mexico, Oman, Pakistan, Panama, Sri Lanka, Ukraine, the United Kingdom, the United States and Venezuela. The company's generating assets include interests in one hundred and eighty one facilities totaling over 60 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 gig·a·watt n. Abbr. GW One billion (109) watts. hours per year to over 18 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 information on the project, visit the website at www.songas.com or the World Bank website at www.worldbank.org. For more general information on AES visit our web site at www.aesc.com or contact investor relations Investor relations The process by which the corporation communicates with its investors. at investing@aesc.com. 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