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- Mitsui & Co., Ltd.
Corporate Communications Division
Mitsui & Co., Ltd. (Mitsui) announced today that its affiliate company, AES Jordan PSC - a project company owned 40% by Mitsui and 60% by AES Oasis Ltd (AES Oasis, a subsidiary of AES Corporation), entered into a 25-year Power Purchase Agreement with National Electric Power Company (NEPCO) of the Hashemite Kingdom of Jordan on February 25, 2007 and signed US$225 million financing agreements for the Amman East Power Project on March 15 2007.
The project, which will have a total cost of approximately US$300 million, involves the construction of a 370MW combined cycle natural gas fired power plant located near the capital Amman, and the supply of electric power to NEPCO for 25 years from the first phase of completion of the plant in 2008.
The financing is being provided by Japan Bank for International Cooperation (JBIC), Overseas Private Investment Corporation (OPIC, US governmental financial institution) and Sumitomo Mitsui Banking Corporation as Commercial Bank supported by a World Bank Partial Risk Guarantee for Commercial Bank portion. JBIC and OPIC support the improvement of infrastructure in Jordan, a country located between Iraq and Israel, and the contribution the project will make to stable peace in the Middle East region.
Due to the rapid growth in demand for electric power in Jordan, the Government of Jordan decided to invite foreign investment to this project and develop it as the first IPP in the country. This project will hopefully pave the way for further privatization projects in Jordan and contribute to development of similar types of projects in other sectors of Jordan.
Mitsui has a substantial track record of power and water investments in the Middle East, and will proactively develop further projects, including large scale IPP/IWPP's planned in the Middle East region, leveraging our broad experience and achievements accumulated in the power and water industries around the world.
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.