Mubadala Development Company, an investment and development vehicle established and wholly owned by the Government of the Emirate of Abu Dhabi, today announced the financial close on the USD$900Million development of a 1227 MW gas-fired thermal power plant in the province of Tipaza, Algeria.

The project calls for the development, construction and operation of the plant and will be executed through Shariket Kahraba Hadjret En Nouss SpA (SKH SpA), a newly established company 51% owned by Algerian Utilities International Limited and 49% by three subsidiaries of the Government of Algeria: Sonatrach, Sonelgaz and Algerian Energy Company.

Algerian Utilities International Limited is owned by Mubadala Development and SNC-Lavalin Constructors International Inc, a subsidiary of SNC-Lavalin, a world leader in engineering and construction, and a global player in the development of infrastructure and in operations and maintenance services.

“We are honored by this vote of confidence from the Government of Algeria. The conclusion of the Hadjret En Nouss financing is yet another step in Mubadala’s strategic plans in the Power sector as well as in Algeria where the company is developing large-scale projects in other industries.” Said Waleed Al Mokarrab Al Muhairi, Chief Operating Officer of Mubadala Development.

Design work and construction activities for the new power plant, located to the west of Algiers, has already begun. Once the EPC work is completed in 2008, the electricity generated will be sold to Sonelgaz under a 20-year contract.

“This power plant will add close to 20% of Algeria’s current energy supply, and thus is a decisive step for future social and industrial developments in Algeria. Mubadala wants to be associated with the country’s promising growth.” Added Mr Al Muhairi.

Mubadala Development is a Public Joint Stock company established and wholly owned by the Government of the Emirate of Abu Dhabi. Its mission is to invest in commercially-viable, strategic, industrial and commercial partnerships.

The company manages a diversified portfolio of local, regional, and international investments. International investments include the Dutch fleet management giant LeasePlan Corporation (25% stake), and a stake in nine oil exploration blocks in Libya. Stakes are also held in the Swiss aircraft and engine services provider SR Technics (40%), the Italian luxury car manufacturer Ferrari (5%), and Piaggio Aero Industries (35%).

In the United Arab Emirates and wider Gulf region, Mubadala Development has invested in, and developed, a number of leading projects including the first GCC cross-border natural gas project, Dolphin Energy (51% majority stake), Aldar Properties, National Central Cooling Company, Abu Dhabi Ship Building, Imperial College London Diabetes Center in Abu Dhabi, Injazat Data Systems, and the Mukhaizna Oil Field developments in Oman.

Mubadala Development signed a joint development agreement with Dubai Aluminum Company (DUBAL) to develop, construct, own and operate a USD6-billion world class green-field aluminium smelter complex with 1.4-million tons capacity a year at the Khalifa Port and Industrial Zone in Abu Dhabi.

Mubadala Development is also leading the development of the UAE University’s new campus in Al Ain City through a public-private partnership initiative.