Joe:
THE RUSSIANS ARE COMING.
IDM Environmental Signs Protocol of Intention to Build Electric Power Facilities in the Country of Georgia
SOUTH RIVER, N.J.--(BUSINESS WIRE)--Jan. 21, 1998--IDM Environmental Corp. (NASDAQ:IDMC, IDMCW) through its wholly owned subsidiary, IDM Energy Corp., today announced that it has signed a Protocol of Intention (POI) with the Ministry for Fuel and Energy (MFE) of Georgia, under which IDM Energy will have the right to construct, own and operate electric energy facilities in the region.
Under the POI, as projects are selected, IDM shall have the irrevocable right of first refusal for their development.
The parties have begun discussions on an initial 35-year Power Purchase Agreement (PPA), which will establish the terms for the sale of electric power from a generating facility (or facilities) with a capacity of up to 1,000 megawatts (MW). The POI contemplates that a PPA shall be signed within three months. IDM and the MFE have identified eight potential projects for which preliminary engineering is scheduled to commence immediately.
The anticipated capital cost for facilities with a total generating capacity of 1,000 MW is anticipated to be in the range of $500-750 million, dependent on final designs, fuel utilized, and number of facilities constructed.
MFE and IDM also will jointly evaluate the feasibility of erecting high-voltage transmission lines to export electrical energy to other countries.
In announcing the POI, IDM Chairman Frank Falco commented, "We are excited about our involvement in Georgia. The project provides added momentum to our entry into the power production market. We have already moved forward on our previously disclosed power project in El Salvador. The recent privatization of four of the largest power distribution companies in El Salvador, for approximately $586 million, clearly suggests that our vision in securing a power purchase agreement with CAESS is extraordinarily valuable."
Falco added, "In addition, we are working on several other major projects that are in advanced stages of discussion throughout Europe. We expect one or more of the major projects under discussion to be finalized in the very near future."
The foregoing discussion contains forward looking statements which are based on current expectations. Actual results, including the timing and amount of revenues recognized, contracts awarded and performed and net income, may differ materially due to risks and uncertainties, including: delays in payment on contracts due to dealing with governmental and foreign entities; fluctuations in operating costs associated with changes in project specifications and general economic conditions; substantial fluctuations in revenues; economics, and other conditions affecting the ability of IDM and prospective customers to finance projects; and other risks generally affecting the timing and financing of projects.
IDM Environmental Corp. is a world leader in industrial plant relocation and re-erection projects. IDM is also a leading provider of full-service, turnkey, environmental remediation and plant decommissioning services. In addition, IDM brings proprietary technologies in bioremediation and gasification of solid wastes. IDM services private industry, utilities, and government clients worldwide. Additionally, IDM is involved in the purchase and sale of surplus plants and equipment.
CONTACT:
BGS Associates Inc.
Leonard Bogner, 212/593-5323 or 212/689-1214
KEYWORD: NEW JERSEY
BW1319 JAN 21,1998
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