Pedregal Power Company Information

Pedregal Power Company is a Panamanian limited liability company (sociedad de responsabilidad limitada), organized in November 1999, with a term life of sixty years. The Company shares were originally owned 100% by Coastal Power Panama Investor, S. A. (CPPI), who transferred its shares to Coastal Power Panama Generation Ltd. ("CPPG"), a wholly owned subsidiary of El Paso Corporation (El Paso). In November 2001, the Company cancelled the shares of participation issued to CPPG and issued new shares such that the Company was owned 55.00% by CBPF Pacora Ltd., 11.89% by Burmeister & Wain Scandinavian Contractor A/S (BWSC), 11.89% by Industrialiseringsfonden for Udviklingslandene (IFU), and 21.22% by CPPG. In April 2006, EL Paso Corporation sold its ownership interests in several projects, including those in the Company, to subsidiaries of Globeleq Americas Holdings Ltd. Globeleq Americas Holdings Ltd. renamed CPPG as Globeleq Holdings (Panama Generation) Limited. In June 2007, Globeleq sold its participation in several projects, including those in the Company, to subsidiaries of Israel Corporation that changed the name of Globeleq Holdings (Panama Generation) Limited to Inkia (Panama Generation) Ltd. Also in June 2007, CBPF Pacora Ltd. was acquired by the Basic Energy Group. The Power plant is located at Pacora, Republic of Panama; its main activity is the generation of electricity. At the beginning of the project the plant capacity was 49.9MW. On August 16, 2005, the local regulator Autoridad Nacional de Los Servicios Publicos (ANSP), previously known as Ente Regulador de los Servicios Publicos, approved the Company's request to update its electrical generating license to 53.53 MW plant capacity. The Company sells electricity and electrical generating capacity to local distribution companies under the terms of purchase power agreements, as well as through spot market sales within Panama and to other countries in Central America. The construction of this plant started in December 2001 and was completed within a year. During its construction, Pedregal generated up to 330 jobs, most of them assigned to inhabitants of Pacora. The plant started operations on January 11th 2003, and currently employs 38 diesel engine Panamanian experts. There are 4 employees assigned to the management part. It is worth pointing out that this plant was voluntarily built with no need of a prior bid, which goes to show investors' trust in the Panamanian regulatory frame, macroeconomic conditions and social stability. On the other hand, Pedregal Power Company is the first plant ever in the history of Central America to obtain a non-recourse category financing and with no need of a prior energy and power purchase-and-sale agreement. This Power Plant has three state-of-the-art technology diesel engines built by the German company MAN B&W DIESEL. Such engines use Bunker C fuel and also have the latest state-of-the-art technology regarding low emissions to the environment. Besides, the project abides by the strict environmental rules of the World Bank and the National Environmental Authority of Panama.