Keppel Wins $400M Power Contract

Keppel FELS Energy has won a “take-or-pay” contract to supply electricity in northeastern Brazil. The Power Purchase Agreement (PPA) was signed between Nordeste Generation Ltda, Keppel FELS Energy’s wholly-owned subsidiary in Brazil, and Commercializadora Brasileira de Energia Emergencial (CBEE) on January 10, 2002. The PPA is on a take-or-pay basis and payments are indexed to the US Dollar, with fuel cost as a pass-through. Based on estimated contract capacities, the total revenue for the contract period is expected to exceed $400 million. The Brazilian government will guarantee all obligations of CBEE under the PPA. Under the PPA, Nordeste Generation Ltda will install and operate a 190MW Barge Mounted Power Plant at the Port of Aratu, Salvador in northeastern Brazil. Commercial operations will commence by June 2002 and end by December 2004.