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October 19, 1999 No.0885

U.S. - JAPAN TEAM INCLUDING MHI RECEIVES
COMBINED CYCLE POWER PLANT ORDER FROM SINGAPORE
Tokyo, October 19, 1999 -- MITSUBISHI HEAVY INDUSTRIES, LTD. (MHI), jointly with MITSUBISHI CORPORATION and BLACK & VEATCH INTERNATIONAL COMPANY of the U.S., has received an order for a 720 MW natural gas fired combined cycle power generation plant from Tuas Power, Pte Ltd. of Singapore. MHI will supply gas turbines, steam turbines and heat recovery boilers with Black & Veatch providing peripheral equipment and construction work in Singapore. The total value of the order is approximately 40 billion yen.

The power plant, which will consist of two 360 MW units, is scheduled for completion in autumn of 2001. The plant will be constructed in the Tuas District, western Singapore, and upon completion, will be one of the largest power plants in Singapore.

In Singapore, after the introduction of the Singapore Electricity Pool (SEP*), electricity companies divided from the Singapore Public Utilities Board have been considering the adoption of high-efficiency, combined cycle power generation systems to reduce power generation costs. Tuas Power's decision is in line with this current trend.

*Note:The SEP was established as a wholesale electricity market to facilitate competition among power generation companies.


Major international companies, including those from the U.S., Europe and Japan participated in the international tender for Tuas Power's project which was called in October, 1998. This is the first large power plant order awarded to MHI by Singapore. MHI's success in this tender is attributed to factors such as, Tuas Power highly positive evaluation of MHI's technological expertise, as evidenced by many successful power plant deliveries in Japan and abroad, as well as equipment deliveries to Singapore, including large-scale refuge incineration facilities and transportation systems.

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