Sojitz Corporation


Start of Commercial Operation of the Phu My 3 IPP Project in Vietnam

Mar. 2, 2004

TOKYO(March 2, 2004)--In a joint project with the Kyushu Electric Power Co., Inc., BP (UK) and SembCorp Utilities Pte Ltd (Singapore), Nissho Iwai Corporation has been proceeding with the construction of a power plant (Vietnam Phu My 3) at the Phu My Industrial Park in Ba Ria-Vung Tau Province, Vietnam. Construction of the power plant is now complete, and commercial operation commenced on March 1, 2004.

This is the first IPP project financed by foreign investments to reach commercial operation in Vietnam. The power plant, which has an output of 716.8 megawatts, is fueled using natural gas from Vietnam, and generates electric power by the high combustion efficiency, gas combined cycle (compound power generation) method. The electricity generated, using natural gas supplied by the Vietnam Oil and Gas Corporation (Petrovietnam), will be purchased by Electricity of Vietnam (EVN) under a 20-year contract. Under the BOT contract, the power plant facility will be transferred to the Government of Vietnam after 20 years of operation.

Nissho Iwai regards energy-related businesses as one of its core business areas, and is focusing efforts on electric power businesses overseas. In Vietnam, starting with the 2003 order receipt from Electricity of Vietnam for the Da Nhim Power System Rehabilitation Project, Nissho Iwai has received orders consecutively for the Phu My Substation Project in Ho Chi Minh City, and for the Da Nhim hydropower station. The company is also working on IPP projects in Sri Lanka and China. Nissho Iwai will continue to actively promote electric power business in Vietnam, where growth is observed, and in the Asian and Middle East regions.

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