Aggreko wins US$80m Dominican Republic contract

Aggreko has won a two-year, 100 MW gas powered generation contract worth US$80 million in the Dominican Republic. It has also announced that projected rental revenues from the London Olympics this summer will be around £50 million.

The contract in the Dominican Republic is with Edenorte, the Northern electrical distribution company of utility company CDEEE, and will help make up power shortages in the country, driven by economic growth.

Celso Marranzini, vice president of CDEEE, said; "This agreement is part of the short term solution to the energy situation that the country has suffered for more than 40 years, and the presence of Aggreko in the Dominican Republic is a clear sign of confidence in the country's economic stability and the continued support that President Leonel Fernández has given to the electrical sector."

Rupert Soames, chief executive of Aggreko said the company was delighted to win the contract with CDEEE; "This will improve the stability of the national grid which has had to deal with rapidly increasing demand due to the rapid economic growth of the country".

Meanwhile, in an interim management statement, Aggreko said it had experienced a very strong first quarter with both its international power projects (IPP) and local businesses reporting more than 20% underlying revenue growth.

In the statement, Aggreko said; "The performance of the local business for the year as a whole will depend upon trading in the summer months, but the current environment is favourable and is supported by the London Olympics which we now anticipate will have a contract value of around £50 million.

"International Power Projects has made an encouraging start to the year; strong order intake coupled with a healthy prospect pipeline means we expect to deliver strong growth for the year as a whole."