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Conclusion of a Memorandum on the Joint Development and Construction of Geothermal Power Plants in Indonesia in Cooperation with Indonesian and Philippine State-Owned Oil Companies

On December 17, 2003, this Company concluded a three-company memorandum with an Indonesian state-owned oil company (PT PERTAMINA (PERSERO), hereafter referred to as "PERTAMINA") and a Philippine oil and energy development company PNOC-Energy Development Corporation, hereafter referred to as "PNOC-EDC") agreeing to jointly carry out development relating to geothermal power generation and construct geothermal power plants in three locations in Indonesia. The three chosen locations are Lumutbalai (330MW), Ulubelu(110MW) in the south of the Sumatra region and Tompaso(60MW)to the north of the Sulawesi region.

The conclusion of this memorandum is the result of the policies and directions of all three companies being in line with one another. PERTAMINA is hoping to accelerate the process of developing and constructing geothermal power plants in Indonesia , PNOC-EDC is hoping to expand its geothermal business overseas and our Company hopes to strengthen the plant supply and development of geothermal power plants in Indonesia .

Going forward, all three companies will work together on matters such as carrying out feasibility studies, arranging necessary financing and producing specification designs for geothermal wells and power generation facilities.

Marubeni Corp. has achieved a great deal in terms of supply and construction of power generation facilities for Indonesia, including combined cycle power plants in both Tanjung Priok (1,320MW) and Muara Tawar (1,095MW) and coal-fired power plant - boilers numbers 1 to 7 in Suralaya (3,400MW), and has strived to improve the system for the Indonesian power generation market, which is in the process of recovery. We already deal with the entire process from the development of geothermal power generation projects to the operation and maintenance of the power plants themselves in the Philippines . We also own independent power generation entities in two locations in the Philippines and a specialist operation and maintenance company that manages these entities.

Both the Philippines and Indonesia are leading countries in terms of geothermal resources; the Philippines has the second largest geothermal power plant capacity in the world after America, and Indonesia the fourth largest. It is also said that Indonesia has a latent geothermal generation capacity of approximately 20,000MW (2,000MW confirmed, 18,000MW latent) and the Indonesian government have adopted a policy of promoting increased geothermal generation capacity in the future by revising geothermal laws. We are in the process of looking towards providing support for south-south cooperation in both the Philippines and Indonesia and plan to promote power generation projects that make use of environmentally-friendly natural energy such as geothermal power generation on a worldwide scale. Making the most of our achievements in terms of constructing large-scale power plants in Indonesia and our experience with geothermal power generation projects in the Philippines and also studying an application for Clean Development Mechanism (CDM), we plan to focus our efforts on promoting the development and construction of geothermal power generation projects in Indonesia and other countries in the Pacific rim area in the future.

Marubeni Receives Order for Three GIS Substations in Jakarta from PLN

The contract is valued at some JPY 3,600 million. The 150 KV GIS equipment will be supplied by Japan AE Power Systems Corporation. Headed by Masakazu Mori and located at 3-8-3 Nishishinbashi, Minato-ku, Tokyo, Japan AE Power Systems is a joint venture that was formed by combining the power transmission and distribution systems operations of Hitachi, Fuji Electric, and Meidensha.

The demand for electric power has soared in Indonesia since 2000. In the Jakarta metropolitan area, where the greatest amount of electricity is consumed in Indonesia, there are concerns that demand for electricity may outstrip supply in or after 2004. The project calls for building substations in three locations in Jakarta to accommodate greater electricity supply capacity from improvement of power generation infrastructure, and thereby contribute to consistent distribution of power to users.

Marubeni has an extensive track record serving the Indonesian electric power market before the economic crisis, including the Muara Tawar combined power plant (1,095 MW) and boilers at Suralaya steam power plant units No. 1 through 7 (3,400 MW). Marubeni is organizing its efforts to cater to the electricity market of the resurging country.

Marubeni has supplied many GIS substations to PLN with the cooperation of Hitachi in the past. This experience helped Marubeni win the order. Marubeni will continue to work in collaboration with Hitachi and Japan AE Power Systems to win additional orders for GIS substations in Indonesia.

Marubeni Signed the Turnkey Contract for COCO Pahse IV

Marubeni Corporation got an order of a Co-generation Power Plant from GLOW SPP Public Co., Ltd. (Bangkok), who is one of the biggest Independent Power Producer (IPP) in Thailand. Marubeni awarded a contract for both supply of equipment and construction of the 37 MW Power Plant, and Toshiba Engineering Corporation is in charge of equipment supply. The Contract Price is about JPY 3 billion.

This is the 4th phase of power plant construction project in the big industrial estate located in Rayong, Thailand. Marubeni has an optional contract for an identical power plant to be built next to this plant, and then total Contract Amount will be about JPY 6 billion. Marubeni have previously been awarded the contract for the phase 3 of the project (530MW, about JPY 40 billion).

The period of construction will be 18 months. The electricity and steam will be supplied mainly to factories in the industrial estate. Glow SPP Public Co., Ltd. plan to build more plants up to 240MW for this 4th project and Marubeni aims to get an order of it.
Marubeni has received an order from the state-owned Indonesian power utility company PLN for three 150 KV gas insulated switchgear (GIS) substations (two new constructions and one expansion), including equipment, civil & building works and installation, in Jakarta, the capital of Indonesia. Marubeni and PLN concluded the agreement on August 1.