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02 Aug 2007

International Power signs Power and Water Purchase Agreement (PWPA) for the Fujairah F2 IWPP, UAE

(London – 2 August 2007) International Power plc is pleased to announce that, together with project partners, the Abu Dhabi Water and Electricity Authority (ADWEA) and Marubeni Corporation of Japan, it has signed a 20-year PWPA with the Abu Dhabi Water and Electricity Company (ADWEC) for the entire power and water output from the Fujairah F2 IWPP in the UAE. The plant will be owned by the Fujairah Asia Power Company in which International Power has a 20% equity interest, with 60% held by ADWEA and 20% by Marubeni. The facility will be operated by a 50:50 joint venture between International Power and Marubeni.

The total project cost is estimated to be US$2,800 million (£1,379 million), which will be funded by a mix of debt and equity in an 80:20 ratio. For its 20% share, IPR’s equity investment will be US$112 million (£55 million). Financial Close is expected by 31 December 2007.

Philip Cox, Chief Executive of International Power, said, “We are very pleased to have signed this agreement, as the Fujairah F2 project builds on our growing portfolio in the Middle East where we have significant greenfield development and operational experience.”

The Fujairah F2 IWPP, a greenfield development project, will produce 2,000 MW of power and 130 MIGD of water on completion. The project is expected to be fully operational by the end of 2010. The plant will use five high efficiency Alstom GT26 gas turbines in combined cycle mode, and twelve SIDEM 8.3 MIGD Multi Effect Distillation desalination units, together with a 30 MIGD Reverse Osmosis desalination plant.

Fuel will be provided by ADWEC in the form of natural gas on a pass-through basis under the PWPA.

Notes to Editors:

An exchange rate of £1:US$2.03 has been applied in this announcement.

The Fujairah F2 project is located close to Qidfa on the Indian Ocean coast of the Emirate of Fujairah (approximately 120 kilometres from Dubai).

For further information please contact:

International Power

Investor Contact:
James Flanagan
Telephone: +44 (0)20 7320 8869
Media Contact:
Beth Akers
Telephone: +44 (0)20 7320 8622

About International Power

International Power plc is a leading independent electricity generating company with 29,913 MW gross (18,237 MW net) in operation and 633 MW gross (192 MW net) under construction. International Power also has desalination capabilities with 330 MIGD gross (75 MIGD net) in operation and 105 MIGD gross (42 MIGD net) under construction. International Power has power plants in operation or under construction in Australia, the United States of America, the United Kingdom, France, Germany, the Czech Republic, Italy, Portugal, Spain, Turkey, Bahrain, Oman, Qatar, Saudi Arabia, the UAE, Indonesia, Pakistan, Puerto Rico and Thailand. International Power is listed on the London Stock Exchange with ticker symbol IPR. Company website: www.ipplc.com.

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