Press Release

Milbank Closes Financing For Landmark Water Desalination Project in Algiers

Milbank Represents Hamma Water Desalination Company in the Largest Desalination Plant in Africa and the First PPP in Algeria

LONDON, ENGLAND, June 30, 2005 – Addressing severe water shortages in Algiers, GE Infrastructure, Water & Process Technologies, (a unit of General Electric Company,) the Algerian Government, the Overseas Private Investment Corporation (“OPIC”), and the Algerian Energy Company (“AEC”) have signed an agreement to build the Hamma Water Desalination plant. At an estimated total project cost of $270 million, Hamma will be the largest seawater desalination project in Africa to date. The international law firm, Milbank, Tweed, Hadley & McCloy LLP, led by partner Cathy Marsh, represented Hamma Water Desalination Company in negotiating, structuring and closing the deal.

Cathy Marsh, partner in Milbank’s Global Project Finance group in London, stated, “We were able to leverage our extensive experience in the Middle East and Africa project finance markets to develop a structure for what is the first non-recourse project and the first PPP in Algeria. The agreement underscores the commitment of all parties involved to work towards providing desperately needed drinking water throughout Algiers. With water shortages on the rise around the globe, we anticipate continued growth in water desalination projects worldwide.”

About the Hamma Project:
Under the terms of the agreement, GE Infrastructure, Water & Process Technologies and the state-owned Algerian Energy Company (“AEC”) have formed a public private partnership (“PPP”) to build, own and operate the Hamma water desalination plant in Algiers. GE which will own 70% of the plant is investing $50 million, while AEC, which will own 30%, is investing $20 million. OPIC is financing an additional $200 million towards the project.

The Hamma project will be the largest PPP in Africa and one of the largest desalination plants worldwide. Upon completion the new desalination plant will supply 200,000 cubic meters (53 million U.S. gallons) of potable water per day – approximately 25% of Algiers drinking water – as well as reduce energy and overall costs. Currently, due to the scarcity of clean water, the residents of Algiers do not have a 24 hour water supply.

Construction on the plant is scheduled to begin in July 2005 with the duration of the project estimated to last 24 months.

The Milbank team representing Hamma Water Desalination Company was led by partners Cathy Marsh and John Dewar, along with Richard Keenan and Caroline Dreyfus from Milbank’s London office and Kathy Schumacher from Milbank’s Frankfurt office.

About Milbank:
Milbank’s Global Project Finance Group is one of the largest and most experienced among the world’s major law firms. Renowned for its leadership, Milbank has pioneered some of the most innovative project financing techniques, and consistently ranks among the top law international law firms by industry trade publications. In 2004 the Group closed $21 billion of deals worldwide, and received a record eight “DEAL OF THE YEAR” awards from Euromoney’s Project Finance magazine. In addition Milbank was named “INTERNATIONAL FIRM OF THE YEAR” by Legal Week and “NUMBER ONE LEGAL ADVISOR” by Dealogic. With more than 100 dedicated project finance attorneys in the firm’s offices worldwide, Milbank provides legal advice under both U.S. and English law. As the project finance marketplace has evolved, Milbank’s Global Project Finance Group has expanded the range of products and services by working in conjunction with attorneys from other practice areas including financial restructuring, mergers & acquisitions, development and structured and commodities finance, and leveraged finance and capital markets.

The London office has been involved in a number of landmark project financings throughout Europe, the Middle East and Africa, on projects ranging from power generation, power transmission and distribution, pipelines, oil and gas and petrochemicals, telecommunications and space, waste disposal and recycling, water treatment, mining and natural resources, pulp/paper, transportation, to other types of infrastructure. Recent notable engagements include:

• Umm Al-Nar (Abu Dhabi): Milbank represented the lenders of the US$1.8 billion debt financing of the Umm Al-Nar Independent Power and Water Project, the largest power and water project financing in the Middle East with the largest ever Sharia compliant Islamic financing tranche.
  
  

• Sohar IWPP (Oman): Milbank represented the project sponsor, Tractebel Electricity & Gas International, in the $550 million syndicated greenfield Sohar IWPP project in Oman. Project Finance magazine named Sohar the “MIDDLE EAST POWER & WATER DEAL OF THE YEAR” for 2004.
  
  

• Moma (Mozambique): Milbank advised the commercial and ECA/multilateral lenders in connection with the $269 million financing for the Moma Titanium Mine in Mozambique, the largest African mine project agreement completed in 2004. The deal, which achieved reasonably priced non-recourse debt financing, sets a benchmark for an African investment by a relatively small-cap project company operating in an untried market. Project Finance magazine named Moma the “AFRICA MINING DEAL OF THE YEAR” for 2004.
  
  

• Other representations include the Baymina power project in Turkey; the Salalah power project in Oman; the Taweelah A1 and Taweelah B power projects in Abu Dhabi; the Al Ezzel IPP in Bahrain; and the refinancing of the Al Manah power project in Oman.

Milbank, Tweed, Hadley & McCloy LLP is a premier global law firm headquartered in New York, with offices in Washington, D.C., Los Angeles, Palo Alto, London, Frankfurt, Munich, Tokyo, Hong Kong and Singapore. Milbank is a recognized leader in capital markets, corporate finance, project finance, acquisition finance, and other major fields of legal practice. The Firm's practice includes cross-border mergers and acquisitions and global securities transactions as well as assisting multinational clients with their cross border investments. Milbank provides a full range of services to many of the world’s leading financial, industrial and commercial enterprises, as well as governments, institutions and individuals.