New York, March 7, 2000 - KMR Power Corporation was awarded Project Finance Magazine’s 1999 “Latin America Merchant Power Deal of the Year” designation for the company’s TermoCandelaria project. The award was presented at a luncheon today at the Waldorf Astoria Hotel.

Project Finance honored KMR Power for its 320 MW Cartagena, Colombia-based TermoCandelaria power project, which reached financial close in June 1999. TermoCandelaria represents KMR Power’s largest wholly owned project to date, doubling the company’s generation base in Colombia and making it one of the country’s largest generators of power.

KMR Power attracted $175 million in debt financing for the TermoCandelaria project, despite Colombia’s unstable economic and political environment. With its partners, Bank of America and Centre, KMR Power arranged an innovative financing structure in which insurance was used as a surrogate for capital. The presence of a guarantee allowed Bank of America to underwrite $40 million of the senior loan for a two-tranche bank facility. Centre, which provided a guarantee on an $85 million subordinated loan, also took a $35 million participation in the senior loan. Instituto de Fomento Industrial and Banco de Bogotá (Nassau) Ltd., both Colombian Institutions, provided the balance of the financing.

“We are extremely proud to receive this award from Project Finance,” said George Kappaz, CEO, KMR Power Corporation. “The TermoCandelaria project was the result of years of hard work and continued dedication to Colombia. This project clearly demonstrates KMR’s desire to serve Colombia’s electricity needs.”

“TermoCandelaria proves that if a project has sound fundamentals and the deal is well structured, even the most daunting obstacles can be overcome,” said Stephan Marti, vice president, Centre. “We are proud to have partnered with KMR for this transaction and are delighted to see the project honored in this way.”

The TermoCandelaria Project joins KMR’s two operating plants in Colombia, the 100 MW Mamonal Project and the 240 MW Termovalle Project. TermoCandelaria’s first unit will be online in April 2000 with commercial operation in June.

Headquartered in Arlington, Virginia, KMR Power Corporation has multiple projects in various stages of development, construction and generation throughout the world.

For more information please contact: Julie Kennon, KMR Power Corp., 703-247-3500 tel, julie_kennon@kmrpower.com

Additional information can also be found on our Newsflash Page K&M Newsflash

K&M Announces Major Marketing Initiative in Africa

K&M is an active participant in Africa's "Economic Renaissance." Over the last five years, economic growth in sub-Sahara Africa has exceeded 5% per annum, and the Region has begun attracting large private sector investments through a combination of restructuring infrastructure sectors and providing incentives to investors.

K&M has directly assisted in this progress through projects in several countries including Côte d'Ivoire, Togo and currently in Kenya, Mauritius, and Nigeria that have led/will lead to private sector investment in major power facilities. In Côte d'Ivoire our experts conducted the feasibility study and then were asked to model the RFP and assist in the evaluation and negotiation with bidders on the Azito Power Project. This 288 MW project was nominated as a Financial Times "Boldest Investment Decision" for 1999 and signaled the possibilities that exist for largescale investment in West Africa.

In 1999 we were asked to complete a survey of power project opportunities for the U.S. Trade and Development Agency's World Power Conference. K&M experts traveled and met with numerous officials in Africa, including ministers and private sector investors, to identify more than $1.9 Billion in power projects being developed over the short term, representing an increase in over 2,500 MW in power generation. As this report highlighted, "Growth in power demands for the region as a whole is anticipated to increase by 3.6% annually over the period 1999-2020, with demand growth in some smaller countries exceeding 9-10%. This expansion translates to some 1600-2000 MW per year of new capacity, often in small-medium scale projects (50-300 MW)."

Attracting investors to sub-Saharan Africa requires extensive knowledge of local markets as well as the ingredients necessary to bring in capital. K&M's understanding of these conditions is based on our close contacts with key individuals and excellent grasp of the technical and financial issues involved. For 2000 and beyond, we see Africa taking major steps towards attaining its potential through substantial investments in infrastructure. K&M will be there to assist governments and also private sector investors interesting in tapping this new growth market.

For further information please contact Conal Duffy at K&M., cduffy@kmec.com

 KMR announced in April, 1999 that a consortium comprised of SK Engineering and Construction Co., Ltd. and Samsung Corporation (both of Korea) had been selected as "prime candidate for award" to perform the turnkey supply of engineering, procurement and construction services for the Ghana Industries Power Project.

The award followed a competitive tender involving bids from a group of prominent EPC contractors and turbine suppliers. KMR will begin EPC Agreement negotiations immediately. The Ghana Industries Power Project is a 220 MW combined-cycle, gas-fired project currently in an advanced stage of development with the KMR Power-led consortium, which also includes Emerging Power Development, Ltd. (EPDL) of the United States.

The KMR/EPDL consortium was awarded the right to build, own and operate the plant in November of 1997. The principal power purchasers will be Ashanti Goldfields, one of the largest gold mining companies in Africa, and the Electricity Company of Ghana, which will onsell most of the energy to the Minergy Partnership, a group of several large mining and industrial companies. The project is an important step in the Government's efforts to promote development of private power in Ghana and is critical to the economic development of the country.

This plant will represent the first privately financed IPP in Ghana and will provide long-term, cost-effective power to the mining and industrial sectors. KMR Power President and CEO, George Kappaz, praised the SK/Samsung team for their success. "We were impressed with this consortium's bid and dedication to our groundbreaking project. KMR is committed to Ghana and we are pleased to be building a strong team to help us achieve our goals."

For further information contact KMR project manager Frank Staszesky, Jr. at KMR Power.

 May 1, 1999-Washington, D.C. K&M Engineering and Consulting Corporation (K&M) was selected by the Government of Mauritius, Ministry of Public Utilities, to conduct a feasibility study for development of a private power facility. K&M will lead a project team consisting of Kuljian Corporation of Philadelphia, Pennsylvania and Servansingh Jadav & Partners Consulting Engineers Ltd. (SJP) of Mauritius to structure the technical, commercial, and financial components of the project.

The feasibility study, funded by the U.S. Trade and Development Agency (USTDA), is expected to be completed by the third quarter of 1999. It will assist the Ministry of Public Utilities and the Central Electricity Board to determine the project's location, most appropriate technology, optimal size, fuel source, and associated transmission requirements. The first phase of the project has a target completion date of 2003.

The proposed plant, the largest to be developed in Mauritius, will be the first international competitively bid independent power project (IPP) for this island nation. Located in the Indian Ocean east of Mozambique, Mauritius has no indigenous fossil fuel sources. The new plant will help the country to meet demand growing at 8-10% per year due to Mauritius' expanding industrial base and service sector.

K&M will provide a project team with an extensive background in IPP project structuring and financing, engineering, design, construction management, and operations. "We are excited about the opportunity to assist Mauritius to expand its power generation capacity. The country's investment environment is one of the most stable in the region. It is our goal to provide the caliber of advisory services that will assist Mauritius to structure a project that will attract leading international developers," remarked K&M Technical Director and Project Manager, Martin Tormey.

"Worldwide investment in the power sector is growing exponentially and U.S. businesses are uniquely positioned to provide top-quality technology, equipment and services to meet this growing need," said John Richter, USTDA's Director for Africa and the Middle East. "USTDA is pleased to provide this grant to simultaneously support the development of this IPP and to promote U.S. exports."

K&M Engineering and Consulting Corporation is an internationally recognized leader in private infrastructure project development, institutional reform, engineering and construction in the energy, telecommunications and environmental sectors. K&M has had direct involvement in $8.5 billion of infrastructure worldwide (5,000 MW power) with projects in 35 countries, 21 of which are independent power projects. K&M developed the first project financed greenfield power projects in Latin America, and had a leading role in the first private power projects in the Middle East, South Asia, West Africa and North Africa.

Kuljian Corporation is a multidisciplinary architectural engineering firm with extensive experience in energy and power plant engineering, including feasibility studies, technology assessments, specifications development and cost estimating. Kuljian's role in the project will include technology selection and siting issues, transmission interconnection, and development of technical specifications and corresponding cost estimates.

Servansingh Jadav & Partners Consulting Engineers Ltd. is a prominent Mauritian engineering firm with comprehensive civil and environmental engineering experience. SJP will provide valuable support in the area of environmental impact/permitting.

• Termovalle Achieves Commercial Operation
• K&M Awarded Feasibility Study for Mauritius IPP
• KMR Power Consortium Annouces EPC Award for Ghana Project
• K&M Profiles Sixty Energy Project Opportunities at World Power Conference
• Philippines' 1,200 MW Ilijan Project Starts
• Construction Vietnam Initiates Negotiations for First Competitively Bid IPP
• Contract for Tunisia's First IPP signed

K&M Engineering and Consulting Corporation, a recognized leader in the international power market has urgent needs in the following areas:

Privatization and Restructuring Experts for Power, Telecommunication, and Water Sectors. Individuals should possess senior level experience (World Bank, USAID, Asian Development Bank, or related) as advisors or project managers on sector restructuring assignments. K&M has current assignments in Africa, Asia, Latin America, and is looking to expand into other areas including the United States. Prior experience at a major utility, multi-lateral, or US Government preferred. Language skills, regional experience, as well as high academic and professional record required.

Immediate opportunities for Privatization and Restructuring Experts with experience working in sub-Saharan Africa on power sector reform projects financed by the World Bank. Areas include: corporate restructuring, policy reform, financial modeling/analysis, assets evaluation, utility operations, and related. French, Portuguese, Swahili, and/or other African languages preferred. Regional experience required.

If you are interested in these positions, please e-mail your resume to R. Guerin at human_resources@kmec.com or mail your resume to K&M Engineering and Consulting Corporation, Attn: R. Guerin, 2001 L Street, Northwest Suite 500, Washington, DC 20036 USA.