ABB in consortium to run South Australia’s power transmission network

Zurich, Switzerland, September 20, 2000 – Global technology group ABB said today it is part of a consortium selected by the State of South Australia to operate and maintain a high-voltage power transmission network in the State under a long-term lease agreement.

The consortium members are ABB, Queensland Electricity and Transmission Company (operating as Powerlink), and Macquarie Bank Limited. The consortium will operate and maintain the power transmission network – including some 5,500 kilometers of transmission lines - under the existing ElectraNet name. ABB said it is a 19.5 percent owner of ElectraNet SA, corresponding to an equity investment of US$ 10 million. The transmission system is the last electricity asset to be privatized in South Australia.

ABB said the consortium will form a new operating company to be called Transmission Asset Management and Services Co. (TAMSco). TAMSco will take on an eight-year operation and maintenance contract, with an option to extend the contract another five years. ABB added it expects to see both a good return on its investment as well as sales of equipment and services from it Power Transmission and Power Distribution segments. ElectraNet expects to invest more that US$ 100 million to expand and upgrade the network over the next four to five years in areas related to ABB’s businesses.

Earlier this month, ABB won a US$ 150-million order to design, maintain and upgrade the Telecommunications Access Network in five of Australia’s States and territories. The order was placed by Telstra, Australia’s largest data and telecommunications company.

The ABB Group (www.abb.com) serves customers in power transmission and distribution; automation; oil, gas, and petrochemicals; building technologies; and in financial services. With novel IT applications, tailored software solutions, growing eBusiness and a fast expanding knowledge and service base, ABB is building links to the new economy. The ABB Group employs about 160,000 people in more than 100 countries. (End)

Original Press Release at ABB.com