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 ARLINGTON, Va., June 30 /PRNewswire/ -- The AES Corporation (NASDAQ: AESC) and Oxfam America, an international development organization, have combined forces on a 10-year program to support indigenous Amazon peoples and preserve endangered rain forest.
 The AES Corporation, an independent power company, initiated the program as part of its on-going effort to offset the effects of carbon dioxide discharged into the atmosphere at its new plants in the United States and the United Kingdom. The program with Oxfam America, the third carbon offset undertaking by AES, is designed to balance the emissions at the company's largest plant, Shady Point, in Poteau, Oklahoma. AES Shady Point is underwriting the $3.0 million cost of the program.
 AES contracted with the World Resources Institute, a Washington, D.C. policy research center on global environment and development issues, in 1991 to seek proposals for an imaginative carbon offset program that have value beyond its immediate offset purpose. WRI considered 60 proposals and selected the program developed by Oxfam America, a non-profit international agency that funds self-help development and disaster relief projects worldwide.
 Under the proposal, Oxfam will manage a plan in conjunction with the Coordinating Body of Indigenous Peoples of the Amazon Basin (COICA) to preserve standing forests that sequester carbon, using four environmental and legal/political approaches:
 1. Helping indigenous peoples establish title to their territorial homelands.
 2. Demarcating the boundaries of those lands.
 3. Enforcing claims against destructive intruders.
 4. Developing sustainable land management plans.
 The land management plans, which are the direct means to preserve forest, aim to manage 3.7 million acres of forest in three South American countries -- Bolivia, Ecuador and Peru. The land management is expected to save 1.2 million acres of pristine rain forest from imminent destruction. This acreage is capable of offsetting 257 million tons of CO2 (69 million tons of carbon) over the 32-year life of the Shady Point plant, appreciably more than the 97 million tons of CO2 (26 million tons of carbon) that the plant will produce.
 The Oxfam America program has two main parts:
 1. A one-time grant of $600,000 to help establish an endowment fund for COICA. Formed in 1984, COICA unites indigenous peoples' organizations in nine South American nations for the development of common positions on the Amazon's future. Oxfam America and other groups will add $400,000 to the AES grant, bringing the initial endowment to $1.0 million.
 2. The remaining $2.4 million -- to be disbursed by AES over 10 years -- will support a comprehensive Amazon program that ties rain forest conservation to indigenous territorial rights efforts. The program will fund projects in which indigenous peoples work to gain legal title to their traditional lands and develop sustainable land management plans. The first projects to be funded by the AES grant, all designed and managed by indigenous peoples, will be in Bolivia, Peru and Ecuador.
 The AES Corporation, under the leadership of its founders, Chairman and Chief Executive Officer Roger W. Sant and Chief Operating Officer Dennis W. Bakke, has committed substantial resources to carbon offset programs in order to balance the carbon dioxide produced by AES plants. Carbon dioxide, the inescapable byproduct of all fossil fuel use, is believed by many to contribute to the greenhouse effect and global warming. Two previous carbon offset undertakings by AES are :
 1. Guatemala -- The AES Thames plant in Montville, Conn. committed $2 million in 1988 to plant 52 million trees on 385 square miles in Guatemala. The project is being managed by CARE working with the Guatemalan Forestry Service and the U.S. Peace Corps. The trees, planted over 10 years, will be able to absorb the 15 million tons of carbon that the Connecticut plant will produce over its 40-year life.
 2. Paraguay -- The AES Barbers Point plant in Hawaii is investing $2 million with The Nature Conservancy to buy and preserve 143,000 acres of Paraguay's Mbaracayu forest, preservation that will more than offset the CO2 from Barbers Point over its lifetime. (Developers had sought the forest for commercial logging before the acquisition.) The Moises Bertoni Foundation will be responsible for day-to-day management of the land under the supervision of a council that includes the Ache Indians, the national government, the United Nations and The Nature Conservancy.
 In addition to AES Shady Point in Oklahoma, AES in Connecticut and in Hawaii, the company's plants are located in: Pasadena, Texas; Monaca, Pennsylvania; Newhall, California; two in the United Kingdom and one in Argentina. AES, founded in 1981 and a public company since 1991, earned $54 million on revenues of $401 million in 1992.
 -0- 6/30/93
 /CONTACT: Bill Arnold of AES Shady Point, 918-962-9451, or Michael Briggs of Oxfam America, 617-728-2465, or Donald R. Dwight of Dwight Partners, 203-661-8480, for AES Corp./

CO: The AES Corporation ST: Virginia IN: OIL ENV SU:

TM -- NY101 -- 7470 06/30/93 23:30 EDT
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Date:Jun 30, 1993

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