AES To Acquire Interest in Gas Pipeline and Power Project in Tanzania.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Aug. 1, 2000

The AES Corporation (NYSE: AES) announced today that its subsidiary, AES Sirocco, has entered into an agreement whereby AES will acquire the 49% interest held by TransCanada PipeLines Limited (TSE: TRP) (NYSE: TRP) in the Songo Songo Gas-to-Electricity Project in Tanzania, as well as assume overall project management responsibility.

The project consists of the refurbishment and operation of five natural gas wells in coastal Tanzania, the construction and operation of a 65 mmscf/day gas processing plant and related facilities, the construction of a 230 km marine and land pipeline from the gas plant to Dar es Salaam and the conversion and upgrading of an existing 112 MW power station in Dar es Salaam to burn natural gas, with an optional additional unit to be constructed at the plant.

Total project cost will be approximately $325 million. Financial close is anticipated by the end of 2000 or early in 2001.

Mr. Mark Fitzpatrick, Executive Vice President of AES, said "We are delighted to be participating in this important project, which will bring great economic benefit to Tanzania through the development of its indigenous gas resources and the reduction of the country's dependence on imported oil and unreliable hydrology. The Songo Songo project is a key element of AES's commitment to expand its activities throughout Africa and we look forward to achieving financial close and to starting construction early next year."

Mr. Dennis W. Bakke, President and Chief Executive Officer of AES, stated "This project is a terrific example of AES's desire to serve people where we are needed and can provide clean, low cost, reliable electricity. Our work in nearby Uganda since the fall of 1994 has contributed to our confidence that we can make a difference in this region. We look forward to delivering on the commitments we have made to the people of Tanzania."

AES's acquisition of TransCanada's interest has received approval from the Government of Tanzania, the World Bank and the European Investment Bank (the lenders to the project), as well as from the other equity participants: PanAfrican Energy (formerly Ocelot International), CDC and the Tanzania Development Finance Company Limited. The transaction is expected to close on August 25.

HSBC acted as financial advisor and CMS Cameron McKenna acted as counsel to AES.

Business development milestones in 2000 include the following:

-- In July, AES and IPALCO Enterprises Inc. announced that they

entered an agreement whereby AES will acquire IPALCO

Enterprises, Inc.

-- In June, AES acquired approximately 87% of the stock of C.A.

La Electricidad de Caracas, an integrated electricity company

serving Caracas, Venezuela.

-- In June, a subsidiary of AES completed an $815 million

non-recourse financing for a circulating fluidized bed

coal-fired facility currently being built on the south coast

of Puerto Rico.

-- In May, a subsidiary of AES acquired 100% of Tractebel Power

Ltd., ("TPL") from Tractebel S.A. With this transaction, AES

owns approximately 92% of NIGEN's common stock.

-- In May, AES announced that it won a bid to purchase a 70%

interest in the 1,580 MW Mohave Generating Station in

Laughlin, Nevada for approximately $667 million.

-- In April, AES announced it intends to launch a tender offer to

acquire all outstanding common and preference shares of

Brazilian generation company Compania de Geracao de Energia

Eletrica Tiete ("Tiete").

-- In March, a subsidiary of AES acquired for $8 million,

GeoUtilities Inc., an internet-based superstore for energy,

telecom and other vital services.

-- In March, a subsidiary of AES completed a financing associated

with 823 MW of generating facilities in the Republic of

Georgia. The financing included the acquisition of the 600 MW

Gardabani thermal plant and the establishment of 25-year

concessions for the Khrami I and II hydro stations, which have

a combined capacity of 223 MW.

-- In March, a subsidiary of AES completed a $440 million

non-recourse project financing for AES Red Oak, an 832 MW

natural gas-fired combined cycle plant in Sayerville, New

Jersey.

-- In February, AES announced that it had entered into an

agreement to acquire a 59% stake in the 1,000 MW hydroelectric

facility of Hidroelectrica Alicura S.A. ("Alicura") in

Argentina from Southern Energy, Inc. ("SEI").

-- In February, AES announced that a subsidiary had reached an

agreement with the Bulgarian state-owned electric utility NEK,

that will allow AES to build, own, operate and transfer a $750

million lignite-fired power plant.

-- In January, a subsidiary of AES agreed to acquire 59% of the

outstanding preferred (non-voting) shares of Eletropaulo S.A.

("Eletropaulo").

-- In January, a subsidiary of AES and Caterpillar Inc. reached a

service agreement for multiple energy products that will

result in the construction of a 45 MW cogeneration plant in

Mossville, Illinois.

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

The company's generating assets include interests in one hundred and thirty three facilities totaling over 47 gigawatts of capacity. AES' 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.

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.