BATON ROUGE, La., Mar 20, 2002 (BUSINESS WIRE) -- The Shaw Group Inc.
(NYSE:SGR) ("Shaw" or "the Company") announced today that its subsidiary, Stone
& Webster, Inc., through its Denver Operations Center, has signed a contract for
the engineering and design for the Konaktepe Dam and Hydroelectric Power Plant
in Turkey. The engineering and design phase of the contract, valued at
approximately $10 million, represents the first of two phases of the project.
Upon completion of the first phase, the Stone & Webster led consortium will
negotiate the construction phase of the project which is estimated at between
$300 million and $400 million.
Turkey's Ministry of Energy and Natural Resources ("The Ministry") awarded this
contract under the umbrella of a Turkish-American bilateral agreement signed on
February 26, 1998. The Konaktepe project is the second engineering, design, and
construction project awarded under the bilateral agreement.
The Konaktepe project is located on the Munzur River, a tributary of the
Euphrates, near Ovacik in the Tunceli Province, in east central Turkey, and is
considered by The Ministry to be strategically important to the region. The
Ministry hopes that the project will promote area development while at the same
time providing a more reliable, environmentally friendly source of electricity
to the Province and the surrounding region. The Konaktepe facility will generate
180 megawatts of electricity using a single dam (approximately 100m high), a
power tunnel (approximately 15 kilometers long), and a powerhouse with two
Francis turbines.
Stone & Webster worked on the first hydroelectric power projects in the United
States over 100 years ago. These projects, in many cases, involved the
development of innovative technologies and construction techniques and
represented the first major hydroelectric developments on many of the nation's
major rivers. Since then, Stone & Webster has engineered and constructed over 70
hydroelectric facilities worldwide.
Stone & Webster was involved in more than 30 projects in Turkey over the past 30
years. "Our involvement in the region's power development started in 1965, with
the engineering for a transmission system that included the first transmission
line crossing of the Bosphorus Straits," said J. M. Bernhard Jr., Shaw's
Chairman, President and Chief Executive Officer. "We are hopeful that the
completion of the Konaktepe project will create an opportunity for social and
economic development of Tunceli Province and Stone & Webster will work closely
with our consortium members and The Ministry to make sure that the maximum
benefits are achieved for the people of Turkey."
In addition to Stone & Webster as the consortium leader for the Konaktepe
project, four other companies comprise the consortium:
-- ATA Insaat Sanayi ve Ticaret A.S., a Turkish construction firm
will be responsible for the dam and civil construction.
-- Strabag AG, an Austrian construction firm will be responsible
for the tunnel and surge chamber.
-- Soyak Uluslarasi Insaat ve Yatrim A.S., a Turkish construction
firm will assist Strabag AG with the tunnel and surge chamber.
-- VA Tech Hydro GmbH & Co., an Austrian electrical and
mechanical equipment supplier, through its US subsidiaries, VA
Tech Voest MCE Corp. and VA Tech Elin USA Corp., will supply
the hydro-mechanical and electrical equipment.
The Shaw Group Inc. is the world's only vertically-integrated provider of
complete piping systems and comprehensive engineering, procurement and
construction services to the power generation industry. Shaw is the largest
supplier of fabricated piping systems in the United States and a leading
supplier worldwide, having installed piping systems in power plants with an
aggregate generation capacity in excess of 200,000 megawatts. While the majority
of Shaw's backlog is attributable to the power generation industry, the Company
also does work in the process industries, including petrochemical, chemical and
refining, and the environmental and infrastructure sector. The Company currently
has offices and operations in North America, South America, Europe, the Middle
East and Asia-Pacific; and has more than 13,000 employees. For additional
information on The Shaw Group, please visit the Company's web site at
www.shawgrp.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for certain forward-looking statements. The statements contained herein that are
not historical facts (including without limitation statements to the effect that
the Company or its management "believes," "expects," "anticipates," "plans," or
other similar expressions) and statements related to revenues, earnings,
backlog, or other financial information or results are forward-looking
statements based on the Company's current expectations and beliefs concerning
future developments and their potential effects on the Company. There can be no
assurance that future developments affecting the Company will be those
anticipated by the Company. These forward-looking statements involve significant
risks and uncertainties (some of which are beyond our control) and assumptions
and are subject to change based upon various factors. Should one or more of such
risks or uncertainties materialize, or should any of our assumptions prove
incorrect, actual results may vary in material respects from those projected in
the forward-looking statements. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. A description of some of the risks and
uncertainties that could cause actual results to differ materially from such
forward-looking statements can be found in the Company's reports and
registration statements filed with the Securities and Exchange Commission,
including its Form 10-K and Form 10-Q, reports and on the Company's web-site
under the heading "Forward Looking Statement". These documents are also
available from the Securities and Exchange Commission or from the Investor
Relations department of Shaw. For more information on the company and
announcements it makes from time to time on a regional basis visit our web site
at www.shawgrp.com.
CONTACT: The Shaw Group, Baton Rouge
Christine N. Mollere, 225/932-2500
www.shawgrp.com
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