Two energy efficient combined cycle power plants in Oman financed by KfW IPEX-Bank

Frankfurt am Main (ots) - KfW IPEX-Bank in a consortium with other
international banks and The Export-Import Bank of Korea signed
financing agreements in excess of USD 1.3 billion for two Independent
Power Projects (IPP), Sohar 2 and Barka 3, in Oman on 16 September.

Both projects are modern, energy efficient, gas-fired
combined-cycle plants and will be built by a construction consortium
comprising Siemens AG, Germany and GS Engineering & Construction
Company, Korea. The centrepieces of the plants, two high-efficiency
gas turbines each, will be supplied from Germany.

KfW IPEX-Bank will contribute around USD 380 million to the total
investment volume as well as a part of the interest rate hedging. The
bank is Mandated Lead Arranger and Euler-Hermes Coordination Bank of
the financing agreement. This transaction marks the first involvement
of the German ECA Euler-Hermes in the country's project financed
power sector. Euler-Hermes is providing comprehensive cover of more
than USD 600 million for both projects.

Markus Scheer, Managing Director of KfW IPEX-Bank commented:
"European and in particular German companies are global leaders in
technologies for efficient power generation. If through this
transaction we can help deploy this know-know outside of Europe as
well, we will have fulfilled our mission twice by supporting the
export economy and contributing to global climate protection at the
same time."

The projects were awarded to a consortium led by GDF Suez S.A.
following a competitive bidding scheme initiated by the Omani
government in summer 2009, building on the successfully established
IPP model in Oman and the wider Gulf region. The consortium will own
and operate the plants, and all electricity generated will be sold to
the Oman Power and Water Procurement Company for a period of 15
years. The 745 MW Sohar 2 power plant is located next to the
expanding industrial park at Sohar, 240 km north-west of the Oman
capital Muscat, while the nearly identical 745 MW Barka 3 power plant
is situated only 85 km away from Muscat.

As part of the finance schemes, KfW IPEX-Bank will provide 17 year
fixed interest rate loans on a CIRR basis (Commercial Interest
Reference Rate), offering attractive financing conditions in support
of exports of German power plant technology. The transactions mark
the most recent milestone in KfW IPEX-Bank's continued support of the
region's power sector spanning almost a decade.

About KfW IPEX-Bank GmbH

Within KfW Bankengruppe KfW IPEX-Bank is in charge of
international project and export finance. It is responsible for
providing financing to support the German and European economy, a
task derived from the legal mandate assigned to KfW Bankengruppe. Its
prime focus is on medium and long-term lending to boost the export
economy, develop economic and social infrastructure and support
environmental and climate protection projects. KfW IPEX-Bank operates
as a legally independent group subsidiary and plays a major role in
fulfilling the promotional mission of KfW Bankengruppe. It has
approx. 521 employees (as of 31.12.2009) and is represented in the
key economic and financial centres around the globe.

Originaltext: KfW-IPEX-Bank
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Pressekontakt:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: E-Mail: axel.breitbach@kfw.de
Tel. 069 7431-2984, Fax: 069 7431-9409, E-Mail:
info@kfw-ipex-bank.de, Internet: www.kfw-ipex-bank.de