Long-term agreements for Wärtsilä's O&M business

Wärtsilä Corporation, Trade press release, 28 November 2006 at 10:00 UTC+2

Wärtsilä Corporation has received and renewed several important operation and maintenance (O&M) agreements during the third quarter 2006 for power plants in Guinea, Belize, Antigua and Senegal.

Delta Gold Mine has signed an O&M agreement for five years for a 36 MWe Wärtsilä heavy fuel oil-fired power plant at its Lefa Corridor gold mine project in Guinea. Wärtsilä will provide 30-40 people for the full operation, maintenance and management of the power plant. The power plant has been relocated from Indonesia and is being re-built in Guinea. Commercial operation is scheduled to start at the end of 2006. The power plant will operate in isolation, producing power for the gold extraction process. The Lefa Corridor gold mine is planned to produce more than 320,000 ounces of gold in 2007.

Belize Aquaculture Ltd (BAL) has signed an O&M agreement for five years with Wärtsilä for the operation and maintenance of a 30 MWe generating plant comprising 23.5 MWe of new Wärtsilä equipment and 6.5 MWe of existing BAL equipment. The plant will supply electricity to a shrimp farm and its associated shrimp processing plant.

In Antigua, Wärtsilä has been operating a 27 MWe Wärtsilä heavy fuel oil power plant for Antigua Power Company (APC) for ten years. APC has now signed a new 15-year O&M contract which will encompass the existing 27 MWe plant and a joint venture APC/APUA (Antigua Public Utilities Authority) 51 MWe turnkey project consisting of new Wärtsilä equipment. The total output of the existing and new power plants will be 78 MWe. The electricity from the plant will be sold to APUA. APUA is the national utility company in Antigua and Barbuda.

Bel Air Senelec of Senegal has signed an agreement for 15 years with Wärtsilä for the operation and maintenance of their 64 MWe Wärtsilä heavy fuel oil power plant. It is the first time Senelec has outsourced operation and maintenance, and the first O&M agreement that Wärtsilä has signed with a public utility in West Africa. In addition to regular operation and maintenance tasks, the agreement includes practical training for 160 Senelec employees from several diesel power stations owned by the company.

“This 15-year O&M and extensive training deal is a big marriage with Wärtsilä”, says Senelec’s CEO. “We want to benefit from the manufacturer’s experience because doing so is crucial to ensure the availability of electricity.”

“Value for customers in long-term O&M agreements is guaranteed production performance and financial predictability. Outsourcing long-term O&M to Wärtsilä means that we take care of everything from recruitment, training and management of the O&M staff, to energy production, logistics and other services”, says Tomas Rönn, Sales Director, Wärtsilä Operations & Management.

“Wärtsilä offers fixed price long-term contracts – a clear advantage that gives the owner a predictable and stable O&M cost profile over the years. Such agreements are beneficial for both parties. They enable Wärtsilä to optimise its resource usage through long-range planning, a robust way to guarantee parts availability and instant technical support”, he continues.

Wärtsilä currently has more than 140 O&M agreements in 30 countries worldwide.

Wärtsilä in brief:

Wärtsilä enhances the business of its customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, Wärtsilä focuses on the marine and energy markets with products and solutions as well as services. Through innovative products and services, Wärtsilä sets out to be the most valued business partner of all its customers. This is achieved by the dedication of more than 13,000 professionals manning 130 Wärtsilä locations in close to 70 countries around the world.




For further information, please contact:
Maria Nystrand
Public Relations Manager, Power Plants
Wärtsilä Corporation
Direct tel:          +358 10 709 1456
Direct fax:         +358 10 709 1425
e-mail:  maria.nystrand@wartsila.com
Internet:            www.wartsila.com