FULL STEAM AHEAD FOR CONSTRUCTION OF SEMBCORP'S 1,320-MEGAWATT POWER PLANT IN INDIA

SINGAPORE, February 23, 2011 – Sembcorp continues to make progress for its first Indian power plant project, a 1,320-megawatt coal-fired power plant applying high efficiency supercritical technology. With preliminary site works already ongoing at the project site in Krishnapatnam in Andhra Pradesh‘s SPSR Nellore District, Sembcorp’s 49% joint venture with Gayatri Energy Ventures, Thermal Powertech Corporation India (TPCIL), has now given the green light to contractors to proceed with the supply of equipment and plant construction. It has issued an official

Notice to Proceed to Dongfang Electric Corporation, with whom it has signed a contract for the supply of the plant’s boiler turbine and generator equipment, and also to BGR Energy Systems, its engineering, procurement and construction contractor for the work on the balance of the plant.

The facility is expected to begin plant commissioning in the second half of 2013 and full commercial operations in 2014. The plant will be operated and maintained by Sembcorp Gayatri O&M Company, a separate operations and maintenance company which is 70% owned by Sembcorp and 30% owned by Gayatri Energy Ventures.

The Rs 6,869 crores (S$1.9 billion) facility will be well-positioned to meet the growing power demand in the southern, western and northern regions of India, which the Central Electricity Authority of India expects to increase at a compounded annual growth rate of 9% over the next 10 years.