Econergy International PLC

Closing of Long Term Financing for Beberibe Project

Econergy International PLC ("Econergy International" or "the Company"), a renewable Independent Power Producer (IPP) focused primarily on the Americas, is pleased to announce a significant development relating to its 25.6 MW Beberibe wind project. 

Econergy's subsidiary, Usina Eólica Econergy Beberibe S.A. , has closed a limited recourse long term take-out loan  from Brazil's Banco Nacional de Desenvolvimento Econômico e Social (BNDES). Key terms and conditions include:

• Loan amount of R$94.9 MM (USD$54.2 MM) or 63.5% of total project cost;

• A term of 14 years, post an initial grace period on payment of interest and principal until January 15, 2010;

• Interest rate of TJLP (Taxa de Juros de Longo Prazo, the long-term interest rate in Brazil) plus 3.02%, an overall interest rate of 9.27% today; 

• Econergy International will provide i) an unsecured guarantee for the full amount of the loan and ii) annual payment support until the Reserve Accounts are fulfilled (Debt Service Reserve Account, and Operations and Maintenance Reserve Account) at which time the loan will become fully non-recourse to the Company for the remainder of its term.

Beberibe will generate 88,590 gross MWh per year. The plant is expected to enter into commercial operations in the third quarter of 2008.  A 20-year power purchase agreement with Eletrobrás is already in place.

Tom Stoner, CEO of Econergy International said;

"This is Econergy's second fully financed project in Brazil and represents yet another significant milestone in our progress.  The Beberibe project continues on track and is expected to be operational during the third quarter of 2008. We have built up a strong relationship with BNDES and other lenders in Brazil, and we are reviewing other potential projects with them. "  

Contacts:

NOTES FOR EDITORS

Econergy International

Econergy International is a renewable Independent Power Producer (IPP) focused primarily in the Americas. The Company's strategy is to develop, build, own and operate renewable power plants as well as optimize clean energy assets that add economic value. Econergy International's Latin American portfolio to date includes the acquisition and development of hydroelectric and wind power projects in Bolivia, Brazil, Mexico and Costa Rica. In the US, the Company's focus is on generating renewable electricity from biomass resources including agricultural wastes, dedicated energy crops, and municipal solid waste. Other sources of renewable energy are explored according to the Company's investment strategy which is built around delivering the optimal risk adjusted rate of return to shareholders. The Company now has one coal mine methane capture and use project under construction in the US.

In addition to developing renewable power projects, Econergy International is also actively engaged in the carbon markets and provides advisory services, all of which give Econergy International its unique ability to source projects in its core markets.  

In February 2006, Econergy International floated on AIM, a market operated by the London Stock Exchange. 

For further information visit: www.econergy.com

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