ContourGlobal Receives Approval from OPIC Board for Financing and Insurance for Energy Project in Togo

21 Jul 2008

NEW YORK--21 Jul--PRNewswire-AsiaNet/InfoQuest


Largest electricity investment in Togo's history will double the Country's generating capacity

ContourGlobal Togo, a subsidiary of international power company ContourGlobal, received approval today for $209million in financing and political risk insurance from the Board of Directors of the Overseas Private Investment Corporation (OPIC) for the construction and operation of a power plant in Lome, Togo.

ContourGlobal's Togo project is the largest electricity investment ever made in the Republic of Togo. The innovative "tri fuel" 100 MW project, expected to be operational at the end of 2009, will be powered by six Wartsila 18V50DF engines (16.6 MW each), which are capable of operating on natural gas, heavy fuel oil, and distillate diesel oil-permitting instantaneous fuel switching capability. The project will run on heavy fuel oil until natural gas becomes available via the West Africa Gas Pipeline. The project will produce

over 780 GWh of electricity and will help the West African nation and the broader region overcome an electricity shortage that has resulted in rolling blackouts and inhibited its economic growth. The project is located within a region that is desperately looking for less expensive and more reliable sources of power.

OPIC will provide up to $147 million in financing and up to $62 million in insurance to ContourGlobal Togo for construction and operation of the power plant. ContourGlobal Togo has entered into a 25-year power purchase agreement by which it will sell electricity generated by the plant to the Togolese electric distribution company, Compagnie Energie Electrique du Togo.

The plant built by ContourGlobal will add a substantial source of reliable, competitively priced power and diversify Togo's power generation portfolio. Joseph Brandt, CEO of ContourGlobal, stated "We are very pleased to have reached this significant milestone in our electricity generation project in Togo and thank OPIC for their dedication and hard work. This innovative

project is the largest generation investment in West Africa in over a decade and will catalyze economic growth and improve health and opportunity in Togo and within the region."

Craig Huff, Co-Chief Executive of Reservoir Capital Group, said "Africa has the world's greatest power needs. With the help of enabling institutions like OPIC, investors can receive attractive risk-adjusted returns while substantially lowering the cost of electricity in the region. ContourGlobal has a significant pipeline of new generation projects in Africa and we look forward to making further investments in the region."

ContourGlobal was established in 2005 by President and Chief Executive Officer Joseph Brandt and Reservoir Capital Group, a $3.5 billion fund based in New York. ContourGlobal develops, acquires and operates electric power and district heating businesses around the globe and focuses both upon high-growth, under-served markets and innovative niches within developed markets -- such as renewable energy and Combined Heat and Power (CHP). The company currently consists of eight businesses on four continents with approximately 1,000 MW of installed capacity and an active pipeline of new development business totaling 10,000 MW.

Reservoir Capital Group is a privately held investment firm with an opportunistic 'hybrid' investment approach. Reservoir invests directly in public securities and private investments, as well as in partnership with investment teams through the creation of hedge funds and private equity firms in which the Reservoir funds are an owner. Reservoir's opportunistic investment funds currently have approximately $3.5 billion under management.

OPIC, established as an agency of the U.S. government in 1971, helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. OPIC's political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide.

Visit ContourGlobal on the web at www.contourglobal.com.


SOURCE: ContourGlobal


CONTACT: Amanda Bennett,

+1-212-610-9151,

for ContourGlobal


Web site: http://www.contourglobal.com


--Distributed by AsiaNet ( www.asianetnews.net )--

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