Press Release/Commentary by SIEMENS posted on March 01, 2002 at 13:15:28: EST (-5 GMT)

SUDAN: Construction contract award for planned $174,000,000 power plant

SIEMENS INDUSTRIAL SOLUTIONS & SERVICES GROUP (I&S) [Germany] & H. CEGIELSKI SA (HCP) [Poland] - Order #: 033602.

PROJECT OVERVIEW:

A German/Polish joint venture was recently awarded a contract to build a new power station in Sudan. The partners in the planned undertaking include Germany-based SIEMENS INDUSTRIAL SOLUTIONS & SERVICES GROUP (I&S), a subsidiary of SIEMENS AG that will head the consortium and, H. CEGIELSKI SA (HCP) of Poland.

According to the terms of the award, the partnership will be responsible for the construction of a diesel-fired power plant with an installed generating capacity of 257 Mw. In so doing, the team will provide engineering, procurement and construction (EPC) services including all the auxiliary installations.

Under the terms of the collaborative agreement, SIEMENS will supply and install all the electrical and automation systems for the power station and the cooling-water supply system as well as for fuel delivery and storage. A link to Sudan's high-voltage grid will be established by means of a new 110 Kv outdoor switching station.

In the context of the project, SIEMENS is also carrying out a study for the power supply network. Its results will reportedly be incorporated in the design of the plant, which can thus be precisely tailored to the specific requirements in the Sudanese power distribution network. This is expected to ensure a reliable supply of electrical energy to the electrical and automation systems.

H. CEGIELSKI, on the other hand, will provide the mechanical equipment and supply 7 two-stroke low speed diesel engines with outputs of 1 x 20 and 6 x 40 Mw. The generated power will be purchased by the state NATIONAL ELECTRICITY CORP. Initially, the power station is to be operated with imported heavy fuel oil but, in the medium term, there are plans to supply fuel from domestic production.

The complex, to be sited adjacent the capital city of Khartoum, is expected to cost about $174,000,000 to complete. Operational start-up is scheduled for some time during the year 2004.

I&S employs a total staff of about 30,000 at some 300 locations worldwide. The company operates as a global supplier to plants in the process and manufacturing industries through division that include: Metals, Mining and Paper Technologies; Infrastructure and Marine Solutions; Oil, Gas and Petrochemical Technologies; Intelligent Traffic Systems; Industrial Services; and IT Plant Solutions.

HCP has a total employment of about 2,500 involved in the manufacture of railroad equipment.