RNS Number:6684S
IPSA Group PLC
09 March 2007


                                 IPSA Group PLC
                           ("IPSA" or "the Company")


9 March 2007

                         Agreement to acquire turbines

The Board of IPSA, the independent power plant developer with operations in
southern Africa, is pleased to announce that, following the placing completed on
8 March 2007, it has today entered into an agreement to acquire from a
subsidiary of Siemens AG four Fiat Avio gas turbines ("the Turbines") with an
aggregate generating capacity of around 500 MW.

It is intended that the Turbines will be installed as part of the first phase of
generating capacity to be installed for the Coega Fast Track Project ("Coega")
just outside Port Elizabeth in South Africa.

Coega, IPSA's largest development project to date, is proposed as a combined
cycle gas turbine ("CCGT") project of 1,600 MW made up of two separate blocks of
800 MW each. The Turbines being acquired will form the open cycle components of
the initial 500 MW of the first block. Conversion of the two blocks to combined
cycle is expected to take place at a later stage. The Coega project remains
subject to the receipt of the necessary Government regulatory approvals,
planning and environmental consents being granted and to financing being
completed.

The Company has agreed to pay a total of Euro31.2 million (approximately US$40
million) for the Turbines, which equates to c. US$80 per KW. Payment of the
consideration is scheduled in three tranches: the first tranche of 25 per cent.
is payable immediately upon entering into the agreement; the second tranche of
25 per cent. will be payable on 31 March 2007; and the third tranche of 50 per
cent. will be payable on 31 March 2008.


The initial two financing payments totalling approximately US $20 million are
being met out of the existing cash reserves and short term financing available
to the Company.  The Directors are confident that longer term financing for the
Turbines will be forthcoming for the Company, although the precise nature of
that funding will be decided in due course.



Peter Earl, CEO of the Company, said:



'We are very pleased to be able to acquire these turbines at an equivalent price
of just US$80,000 per MW. This allows our Coega Fast Track Project to be highly
competitive in terms of the installed cost per MW, which is the key ratio for
every power developer. By purchasing turbines ready for immediate delivery, we
can considerably reduce the time it takes to have the first unit up and running.
This is absolutely vital to South Africa at a time when there are severe power
cuts affecting the whole country - but especially the Cape region.  The
acquisition of the first 500 MW of turbines for Coega not only reduces the time
pressure on the construction timetable but also positively improves the economic
factors influencing the returns on the project.'



For further information please contact:



Peter Earl, CEO, IPSA Group plc                              020 7793 7676
John Llewellyn-Lloyd, Noble & Company Limited                020 7763 2200




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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