SembCorp Utilities (SembUtilities), a wholly-owned subsidiary of SembCorp Industries, has formed a joint venture with Qianan Xin Di Thermal Power Company to own and operate a cogeneration plant in Qianan City, Hebei Province, in The Peoples’ Republic of China. The cogeneration plant has an optimum capacity of 21 megawatts of electricity and 118 tonnes per hour of steam.

Under a joint venture agreement signed on September 4, 2001, SembUtilities will assume a 65 per cent stake in the joint venture company Qianan SembCorp Cogeneration Company, with the remaining 35 per cent held by Qianan Xin Di Thermal Power Company.

The project’s total investment cost of $33.5 million will be funded by a combination of shareholder’s equity (50 per cent) and non-recourse RMB debt (50 per cent). SembUtilities’ equity investment of $10.89 million will be funded by external loans.

This investment does not have a material impact on the NTA per share of SembCorp Industries.

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For press enquiries, please contact:

Ms Ng Lay San
Manager
Group Corporate Relations
SembCorp Industries
Tel: (65) 357 9150
Fax: (65) 352 2163
Email: [email protected]