Sithe Global and IPS establish a New Hydroelectric Station in Uganda

    NEW YORK, December 21 /CNW/ - Sithe Global Power, LLC, through its
special purpose affiliate SG Bujagali Holdings, Ltd., (collectively, "Sithe
Global") announced today with its partner, Industrial Promotion Services (K)
("IPS"), an affiliate of the Aga Khan Fund for African Development ("AKFED"),
that their jointly owned special purpose company, Bujagali Energy Limited
("BEL"), a Ugandan company, has closed financing on a USD 682MM construction
debt facility for the 250 MW Bujagali hydroelectric station located on the
Nile River in Uganda, Africa. Multilateral and bilateral debt will be provided
by European Investment Bank, International Finance Corporation ("IFC"),
African Development Bank ("AfDB"), Nederlandse Financierings-Maatschappij voor
Ontwikkelinsslanden N.V. ("FMO"), Societe de Promotion et de Participation
pour la Cooperation Economique ("Proparco")/Agence Francaise de Developpement
("AFD"), DEG-Deutsche Investitions-und Entwicklungsgesellschaft MBH ("DEG")
and KfW. Commercial debt will be provided by Standard Chartered Bank and
Barclays/Absa Capital with Partial Risk Guarantee cover provided by
International Development Association. The construction debt facilities
committed for the project include USD 90MM in contingency and debt service
reserve. A total of USD 190.9MM of equity for the Bujagali Project is being
funded by Sithe Global, IPS and the Government of Uganda ("GOU"). Sithe
Global's equity, which comprises approximately 65% of the total sponsor equity
commitment/ownership in the project, is being funded by its majority owner,
The Blackstone Group, together with investment funds managed by Reservoir
Capital Group and Sithe Global management. Sithe Global has also secured
Covered Risk insurance for its equity investment from the Multilateral
Investment Guarantee Agency. IPS's equity, which comprises approximately 35%
of the total sponsor equity commitment/ownership in the project, is being
funded by AKFED, Jubilee Investment Company Limited and by IPS itself.
Additional equity is being provided by the GOU. The Bujagali project is being
undertaken as a "Public Private Partnership" between the GOU and the
State-owned transmission company, Uganda Electricity Transmission Company
Limited ("UETCL") on the one hand, and Sithe Global and IPS on the other.
Sithe Global and IPS were selected pursuant to a competitive international
bidding process.

    Uganda has one of the lowest rates of electrification in the world and
currently faces a serious economic crisis due to the lack of power generating
facilities capable of producing electricity at affordable prices. Uganda's
electricity demand growth has outstripped the capacity of existing
hydroelectric power generation facilities on the Nile River, causing severe
disruptions to Uganda's economic activities and forcing reliance on expensive
emergency generators that burn diesel transported by tanker trucks over long
distances. The Bujagali project will provide substantial additional
hydroelectric power generation capacity, producing power at a levelized cost
of approximately USD 6.5 cents versus the current approximately USD 31 cents
cost of diesel generation units, thus addressing a national policy priority
and facilitating Ugandan economic growth.

    The Bujagali project will be comprised of a dam and hydropower station of
250 MW capacity on the Nile, 10 KM from the outflow of Lake Victoria,
downstream of the existing Nalubaale and Kiira dams. The project will provide
power from an indigenous and renewable resource with low carbon dioxide
emissions, re-utilizing water already used for power generation at the
upstream dams and therefore contributing to sustainable development. BEL will
make available generating capacity and will sell power to UETCL under a power
purchase agreement. The five generating units will be commissioned
sequentially as each becomes available, ensuring that the benefits of the
project will be delivered to the people of Uganda at the earliest opportunity.
The first unit is expected to be commissioned during the fourth quarter of
2010. When fully commissioned, the Bujagali project will double Uganda's
effective generation capacity. It represents one of the largest private power
sector investments ever made in Sub-Saharan Africa.

    The project is already under construction and approximately two to three
months ahead of schedule as a result of a USD 75MM bridge loan that was
advanced to BEL by the GOU. Proceeds from the GOU loan were used to finance
engineering design, detailed site investigations, construction of permanent
civil works, construction of camp-site and offices as well as the procurement
of equipment, all of which provides a basis for an accelerated commissioning
under the full notice to proceed that was issued today by BEL to the
Contractor. The GOU has been repaid its loan in connection with this financial

    Hailing the attainment of the project's financial close as an historic
event for the people of Uganda, the Minister for Energy and Mineral
Development, Mr. Daudi Migereko, said, "This is a great tribute to public
private partnership and a just reward for sacrifices that the Government has
made on behalf of the people of Uganda. The Government has created an
environment that has enabled blue chip lenders and BEL to commit financing for
the project while at the same time safeguarding the interests of Ugandans
through the GOU's equity ownership in the project as a result of its
contribution of certain valuable assets, such as land and intellectual
property, which had been previously developed. The loan refunded by BEL will
now be returned to the Energy Fund for appropriate reutilization."

    Recalling His Highness the Aga Khan's quote during the foundation
stone-laying ceremony for the project, "Think of the difference it will make
when the supply of power is adequate to the needs, and massive load-shedding
becomes a distant memory", Mr. Lutaf Kassam, the Group Managing Director of
IPS remarked that "adequate and affordable power supply will restore the
competitiveness of the Ugandan manufacturers thereby creating jobs, reducing
poverty and improving the qualify of life".

    Bruce Wrobel, Sithe Global's Chairman and CEO, said, "Sithe Global is
excited to be participating in a project that will have such far reaching but
positive impacts to the Ugandan economy. Reliable power, especially of the
clean and renewable variety, is one of the most important factors a potential
investor considers when exploring a new opportunity for investment. We are
proud to be adding to Uganda's already attractive investment outlook."

    David Foley, a Senior Managing Director of The Blackstone Group with
primary responsibility for Blackstone's investments in the energy sector, said
"Blackstone is proud to invest alongside the Aga Khan Group and the Government
of Uganda in the Bujagali project, which we believe will provide investors
with favorable returns while providing significant economic benefits to the
people of Uganda. Blackstone expects to continue to invest substantial equity
in support of Sithe Global's growth plan as the company funds the construction
of other power projects in its portfolio."

    Sithe Global Power, LLC is owned approximately 80% by Blackstone SGP
Capital Partners (Cayman) IV L.P., an affiliate of The Blackstone Group, and
management, led by Mr. Wrobel, with the remaining approximately 20% stake held
by the investment funds managed by Reservoir Capital Group. Blackstone
purchased an 80% ownership interest in Sithe Global in 2005 with the objective
of facilitating Sithe Global's plans to develop, finance, construct and
operate electric power generation facilities in the U.S. and certain
international markets. Sithe Global has a portfolio of power plant projects in
various stages of development and construction, including: the 880 MW
gas-fired combined cycle Goreway project under construction in Brampton,
Ontario; the 1,500 MW Desert Rock facility, a coal-fired project in New
Mexico; the 750 MW Toquop facility, a coal-fired project in Nevada; the 300 MW
River Hill facility, a waste coal-fired project in Pennsylvania; a 1,000 MW
project in Italy; and projects in Africa, the Middle East and other regions
totaling approximately 5,000 MW of generating capacity.

    About Industrial Promotion Services (K) Ltd.

    IPS is the infrastructure and industrial development arm of AKFED. IPS
has operations in Kenya, Uganda, Tanzania and Democratic Republic of the Congo
and is also actively pursuing investment opportunities in Rwanda, Mozambique
and Madagascar. Outside the East Africa and Central Africa regions, IPS also
operates in Cote d'Ivoire, Burkina Faso, Mali and Senegal, as well as
Tajikistan, Afghanistan, Kyrgyzstan, Pakistan and Canada.

    IPS's involvement in power comprises: the 288 MW Azito gas power plant in
Cote D'Ivoire; concessionaire for Energie du Mali (power & water utility);
Kenya's 75 MW diesel plant; and a vertically integrated off-grid utility
involved in generation, distribution and sale of electricity in the West Nile
district of Uganda. IPS companies in East Africa have a total workforce of
approximately 8,500 employees

    About the Aga Khan Fund for Economic Development

    AKFED is an international development agency dedicated to promoting
entrepreneurship and building economically sound enterprises in the developing
world. AKFED focuses on building enterprises in parts of the world that lack
sufficient foreign direct investment. It also makes bold but calculated
investments in situations that are fragile and complex.

    AKFED operates as a network of affiliates with more than 90 separate
project companies employing over 30,000 people. The Fund is active in 16
countries in the developing world: Afghanistan, Bangladesh, Burkina Faso, the
Democratic Republic of the Congo, India, Ivory Coast, Kenya, Kyrgyz Republic,
Mali, Mozambique, Pakistan, Senegal, Syria, Tajikistan, Tanzania and Uganda.

    AKFED's areas of interest comprise aviation, financial, industrial and
infrastructure development, media and tourism promotion services. Further
details on IPS and AKFED may be obtained from the website

    About Sithe Global Power, LLC

    Sithe Global is a privately held international independent power
development and construction company which focuses on certain target markets
in North America, Europe, Mexico, Africa and the Middle East. Sithe Global is
led by a seasoned management and technical team with extensive independent
power project development experience, and a proven record of identifying
project development and acquisition opportunities which create substantial
value for its investors. The Sithe Global management team has successfully
developed more than 50 power plant projects in nine countries with a capital
investment in excess of $5 billion.

    About Blackstone

    The Blackstone Group (NYSE:  BX) is a leading global alternative asset
manager and provider of financial advisory services. Its alternative asset
management businesses include the management of corporate private equity
funds, real estate opportunity funds, funds of hedge funds, mezzanine funds,
senior debt funds, proprietary hedge funds and closed-end mutual funds.
Blackstone is an experienced and active investor in the energy sector,
including investments in Premcor, Inc., one of the largest independent
refiners of petroleum products in the U.S. prior to its acquisition by Valero
in 2005; Texas Genco, a Houston-based wholesale electric power generating
company; Foundation Coal (NYSE:  FCL), a U.S. coal mining company; and Kosmos
Energy, an oil exploration company. The Blackstone Group also provides various
financial advisory services, including mergers and acquisitions advisory,
restructuring and reorganization advisory and fund placement service. Further
information is available at

    About Reservoir

    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 investment funds
currently have over $3 billion under management.

For further information:

For further information: For IPS/AKFED Dr. Kevin Kariuki, +254 20
2228026 Head of Infrastructure, IPS (K) or For Sithe Global Martin B.
Rosenberg, +1 212-351-0033 President or For The Blackstone Group John Ford, +1
212-583-5559 or For Reservoir Capital Craig Huff, +1 212-610-9010

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