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Siemens to build two power plants in Argentina Order volume approximately USD1 billion


Erlangen, Germany, November 24, 2006, Siemens Power Generation (PG) has been awarded major contracts from Argentina for the turnkey construction of two combined cycle power plants. The Siemens-led consortium will build the power plants in Campana in the province of Buenos Aires and in Timbúes near the city of Rosario in the province Santa Fe. The total order is valued at USD1.6 billion. Siemens PG’s share including the simultaneously signed long-term service agreement amounts to approximately USD1 billion.

Both projects are constructed and operated by the Independent Power Producers Termoeléctrica Manuel Belgrano S.A. (TMB) and Termoeléctrica José de San Martín S.A. (TSM), whose main shareholders are ENDESA, TOTAL, AES, PETROBRAS, EDF and DUKE. Over the past three years Argentina’s economy has grown about nine percent annually. These new orders for two fossil fueled power plants are part of the government’s national energy plan from 2004 to prevent an energy shortage. Presently, Argentina has an installed capacity of 24,000 MW. By the year 2015, experts expect an increase of the installed capacity to approximately 38,000 MW.

“Increasing the total installed capacity by seven percent, San Martín and Manuel Belgrano will make a major contribution to meeting the growing energy demand in Argentina,” said Matthias Kleinhempel, President and CEO of Siemens Argentina, on the occasion of the signing ceremony. “This need will continue over the next several years, resulting in more new plants in Argentina. This will offer interesting opportunities for Siemens to contribute to Argentina’s growing power market with our environmentally friendly power generation technology” stated Kleinhempel.

For both projects, Siemens PG will deliver two high-efficiency SGT5-4000F gas turbines, one SST-5000 steam turbine and its most advanced SPPA-T3000 instrumentation & control system. Furthermore, the Siemens scope of supply includes the heat recovery steam generator and power electronics. Siemens also will handle maintenance for the two power plants for a period of ten years. The consortia partners Duro Felguera S.A. and Electroingeniería S.A. for TMB and Inelectra S.A.C.A. and Electroingeniería S.A. for TSM will be responsible for the balance of plant and construction of the plants.

Each of the new plants will have a capacity of 830 megawatts. The primary fuel will be natural gas, with liquid fuel as an alternative. Commercial operation is due to start in the first half of 2008 in open cycle mode and full operation in combined cycle mode is scheduled for one year later, in early 2009.

The Power Generation Group (PG) of Siemens AG is one of the premier companies in the international power generation sector. In fiscal 2006 (which ended September 30), Siemens PG posted sales amounting to more than EUR10 billion and received new orders totaling EUR12.5 billion. Group profit amounted to EUR782 million. On September 30, 2006, PG had a work force of approximately 36,400 worldwide.

Reference Number: PG 200611.007 e_tp


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