PSE Circular for Brokers No. 2306-99

September 15, 1999 PSE CIRCULAR FOR BROKERS NO. 2306-99 September 14, 1999 PHILIPPINE STOCK EXCHANGE, INC . PSE Center, Exchange Road Pasig City Attention : Ms . Grace B . De Guia Asst . Manager Disclosure Department Gentlemen: We are transmitting a copy of the press release issued by First Gas Power regarding the commissioning of its Sta. Rita plant. LibLex Very truly yours, (SGD.) ERNESTO B. RUFINO, JR. Chief Information Officer Reply re : Sta . Rita Completion Dates Peter Garrucho, Jr., president of First Gas-Power confirmed that its turnkey contractor. Siemens has indicated that the completion of the first block of the 1,000 megawatt Sta. Rita plant has been moved to April 2000. The first 500 megawatt block had been initially targeted for a November 1999 completion. Garrucho said, "some construction hiccups have been encountered by Siemens. With an experienced and respected turnkey contractor in Siemens, we are optimistic that the problems will be overcome. Siemens likewise indicated that the expected completion date for the second 500 megawatt block originally scheduled for February 2000 is end June." The Sta. Rita plant is being equipped with V84.3A2 turbines which represent the latest Siemens technology for combined cycle gas turbine plants. These turbines yield the highest efficiencies because the fuels will be fired at very high temperatures of 1,230 degrees Centigrade. Garrucho added "the latest technologies offer the best values in power generation efficiencies. It is generally expected that with new technology turbines, difficulties occur, but modifications to correct for these are now being done by Siemens in Sta. Rita and on similar models worldwide. Let me add that we are protected by delay remedies under our EPC contract. It certainly helps to have a turnkey contractor like Siemens who can be trusted to resolve these problems." Garrucho also reported that the 35 kilometer transmission line and the 930,000 barrel fuel storage and jetty facility had been commissioned. As part of the Sta. Rita project, First Gas had constructed a 35 kilometer transmission line from the plant site in Batangas City to the National Power Corporation substation in Calaca, Batangas. The line was energized last August 11. Ownership of the line will transfer to NPC as part of an interconnection agreement involving First Gas, NPC, and Meralco, the customer of the Sta. Rita plant. First Gas also took its first delivery of 300,000 barrels of distillate supplied by ENRON last August 31. First Gas has a liquid fuel supply agreement with ENRON. The commissioning fuel will be distillate but will shift to condensate when full operations start. When the Malampaya gas lands in 2002, Sta. Rita will shift to natural gas for its fuel requirements. cdlex