CJSC AES Kyivoblenergo & CJSC AES Rivneenergo

completed

Following a competitive tender in early 2001, the Government of Ukraine was successful in selling two distribution companies, Kyivoblenergo (KOE) and Rivneenergo (ROE), to AES Washington Holdings B.V. (“AES B.V.”), an affiliate of AES Corporation (“AES”). KOE and ROE together serve 1.2 million customers from a population base of 3 million people. KOE supplies energy to 811,285 customers spread over a 28,400 square kilometer service area in the Kyiv oblast (excluding the city of Kyiv). ROE supplies energy to 404,387 customers spread over a 20,100 square kilometer service area in the Rivne oblast, situated in the northwest of the country. KOE and ROE have developed a capital investment program of approximately $80 million to be implemented over the 2005-2008 period. The capital investment program (the project) as four primary objectives: - reduction of commercial and technical losses; - refurbishment of ageing network equipment; - capacity expansion in high growth areas; and - improvement in management efficiency through investments in communication and information systems.