Minister praises reputation of ESB at home and abroad

"Like the people of the Basque region, the Irish people are very proud of their heritage and culture," Minister Noel Dempsey T.D., Minister for Communications, Marine and Natural Resources told invited guests at the opening of the Amorebieta 500MW plant near Bilbao in Spain as he welcomed the gathering 'as Gaeilge'.

He thanked the group for the welcome extended to him during his visit and to ESB during the years of the project. "This is a project in which many people can take great pride. ESB has the reputation in Ireland and abroad of being a good member of the local community and this will happen here as well," he said. "It has been a truly international effort fully supported by the Irish Government and is the largest international investment project of ESB to date. The company has a huge reputation and over 25 years of international experience."

He congratulated the Chairman, Chief Executive, Board of ESB and ESBI generally, on the vision and tenacity of seeing this particular project through. He also sent partners Osaka Gas good wishes on their anniversary and a long and fruitful partnership for the project.

In his address, which was spoken in his native tongue, Mr. Joan Jose Ibarretxe, First Minister of the Basque Government said that "from now on ESB and Osaka Gas are Basque companies". ESB successfully managed the development, financing and construction of the plant which generates up to 800MW onto to the Spanish system. It has the capability to provide a third ofthe annual electricity needs of the Basque region.

ESB International achieved commercial operation at Amorebieta three months ahead of schedule. As a flagship project it showcases the full range of the Company's technical, engineering and commercial skills and expertise and demonstrates ESB's ability to successfully compete internationally. It also positions the company to make further significant investments in Spain and Europe.

Building work commenced in February 2003 and took just 30 months to complete. At the height of the construction almost 800 people worked on the site, the majority of whom were local contractors and suppliers. This resulted in Basque firms securing contracts worth over €100M in connection with the project. ESBI is now responsible for the operation and maintenance of the plant and has in place a team of 40 people, most of whom have been recruited locally.

The development represents the largest-ever inward investment in the Basque region. The greater part of the funding was raised through a major project financing deal involving a syndicate of 24 international financial institutions, including a number of leading Spanish and Irish banks.

Last year Osaka Gas joined ESB as an equal partner in the project. The significant contribution by this leading international gas corporation represents one of the largest investments to have been made in the Basque region by a Japanese company.