Singapore, December 18, 2000 – SembCorp Cogen (SembCogen), a joint venture between SembCorp Engineering (50 per cent), Tractebel (30 per cent) and EDB Investments (20 per cent) has secured a S$460 million syndicated loan for the development of its 815MW combined cycle co-generation plant on Jurong Island, the first privately developed merchant power plant and largest co-generation plant in Singapore.

The loan, which is financed through a Syndicated Financing Package, is fully underwritten by 10 lead arrangers,namely: Bank of Tokyo-Mitsubishi Group, BNP Paribas, Citibank N.A., Credit Agricole Indosuez, Dexia Public Finance Bank , Fortis Bank , KBC Bank, OverseasUnion Bank, Sumitomo Bank and the Industrial Bank of Japan.

The loan will be used to finance 73 percent of the project cost of SembCogen. It will be on a limited recourse basis to shareholders. According to the arrangers, this financing package is the first merchant power plant project financing package arranged in Asia.

President of SembCorp Engineering, MrTang Kin Fei said: “”The sealing of this loan agreement for a merchant power plant reflects the level of confidence of financial institutions in the viability of SembCorp Engineering power projects such as SembCogen which is expected to be the lowest cost producer.””

Dirk Beeuwsaert, CEO of Tractebel EGI declared: “” Know-how and expertise in large scale industrial gas projects and its knowledge of low-cost, efficient processes such as co-generation and energy services to industrial customers are important elements which contribute to the success of the SembCogen project.This project matches perfectly Tractebel’s development strategy in South East Asia.

Scheduled for commercial operations inJuly 2001, SembCogen will be fuelled by natural gas imported by SembCorp Gas to produce electricity for the Singapore Electricity Pool and steam for SembCorp Utilities and Terminals that will be sold to industrial customers on Jurong Island.

– End –

Released on December 18, 2000.

For enquiries, please contact :

Ms Ng Lay San
Assistant Manager, Strategic Planning & Corporate Communications
SembCorp Engineering Pte Ltd
Tel: 750 8740
Fax: 750 1918
Email: [email protected]

Mr. Herman Bosquet
Managing Director
Tractebel AsiaPte Ltd
Tel: 216 8988
Fax: 438 1620
Email: [email protected]

Mr James M. F. Yip
Vice President & Head, Capital Markets/Syndications
Overseas Union Bank Ltd
Tel: 530 2563
Fax: 536 6770
Email: [email protected]