RNS Number:0515N
International Power PLC
02 July 2003

International Power Consortium successfully completes US$ 1.77 billion Financing
for the Umm Al Nar Power and Water plant, Abu Dhabi



(London - Wednesday, 2 July 2003) International Power today announces that
together with its partners, Abu Dhabi Water and Electricity Authority, Tokyo
Electric Power Company and Mitsui & Co. Limited, it has successfully financed
the acquisition and expansion of the Umm Al Nar power and water desalination
plant in Abu Dhabi.



"The successful completion of this financing is a considerable achievement given
the uncertainty in the region that followed the war in Iraq," said David Crane,
Chief Executive Officer of International Power.  "We are very thankful to our
partners and the lenders for their continued support and commitment to the
project and we look forward to serving ADWEA and the people of Abu Dhabi with
our second major power and water desalination asset in the UAE," he added.



The consortium has secured a total financing package of US$1.77 billion, which
represents the largest power sector financing executed in the Middle East this
year.



The financing structure comprises two non-recourse loans, a US$1,100 million
20-year term loan and a US$230 million 5-year term loan, together with a US$ 440
million equity bridge facility.  The 20-year term loan includes a US$250 million
Islamic tranche, which has been arranged by Abu Dhabi Islamic Bank.



International Power has a 20% equity interest in the project and its total
equity commitment to the project is estimated at a maximum of #56 million.  This
amount is covered under the equity bridge loan and will be payable by
International Power in 2008.



Lead arrangers for this financing include Abu Dhabi Commercial Bank, Abu Dhabi
Investment Company, Abu Dhabi Islamic Bank, Bayerische Landesbank, First Gulf
Bank, Gulf International Bank, HSBC, ING, Kreditanstalt fur Wiederaufbau, Mizuho
Financial Group, National Bank of Abu Dhabi, Sumitomo-Mitsui Banking Corporation
and The Bank of Tokyo-Mitsubishi and West LB.



The entire power and water output from the Umm Al Nar plant is contracted to the
Abu Dhabi Water and Electricity Company (ADWEC) under a 23 year Power and Water
Purchase Agreement.



This acquisition is expected to be immediately earnings accretive for
International Power.



For further information:



Media contact:

Aarti Singhal

+44 (0)20-7320-8681



Investor contact:

Grant Jones

+ 44 (0)20-7320-8619



Notes to Editors:



Located close to Abu Dhabi city, the gas-fired Umm Al Nar plant has an installed
capacity of 850 MW for power and is capable of producing 162 MIGD (Million
Imperial Gallons per Day) of desalinated water.



Under the terms of the Power and Water Purchase Agreement with ADWEC, the
consortium will also develop a new gas fired power and water plant adjacent to
the existing plant. This new facility will have an installed power and water
capacity of 1,550 MW and 25 MIGD, respectively.



For further details about this acquisition please view International Power's
announcement dated 22 April 2003 at www.ipplc.com



About International Power:



International Power plc is a global independent power producer with 10,820MW
(net) in operation and 300MW (net) under construction. Among the countries where
International Power has facilities, in operation or under construction, are
Australia, the United States, the United Kingdom, the Czech Republic, the UAE,
Portugal, Turkey, Malaysia, Pakistan, and Thailand. International Power was
created in October 2000 and its shares are traded on the London Stock Exchange,
and as ADRs on the New York Stock Exchange under the ticker symbol "IPR".


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

MSCKLLBBXDBXBBB