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Message from CEO 2General Management Committee 4Company profile 6Consolidated key figures 8SUEZ Company profile 11

Business management 12 Key regions 14

South America 14Brazil 15Argentina 15Peru 16Chile 16Events 2002 17

North America 18USA and Canada 19Mexico 20Events 2002 - 2003 21

Middle East - Asia 22Thailand / Laos 24South Korea 24Singapore 25Turkey 25Oman 26United Arab Emirates 26Events 2002 - 2003 27

LNG 28Events 2001 - 2003 33

Simplified organisational chart per region 34Overview operating companies per region 36

South America 36North America 38Middle East - Asia 40LNG 42

Tables 44

Corporate management 46Human resources 48

Contacts 52Glossary & abbreviations 56

Tabl

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Mes

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CEO

Tractebel EGI’s operational results showed resilience during 2002, despite the diffi-culties that year presented for the global economy as a whole and the energy sector in particular. In terms of turnover we achieved an increase of nearly 8% to reach€ 3.7 billion.

We have taken positive measures to ensure the financial stability of our companyand to address the challenges of the current economic climate. SUEZ has put in place an Action Plan for 2003-2004 designed to give our business a strong platform, and we at Tractebel EGI will be making an active contribution towards it.

Our main objective will be to focus on profitability and financial soundness bymaximising our operational results and improving added value. As in the past,we will continue to use rigorous criteria in assessing the profitability of all ourassets, and we will be prepared to dispose of assets that do not meet these criteria.Another objective will be debt reduction: financial institutions are taking a much morecautious approach to lending, and it is increasingly difficult for energy businesses togain access to fresh capital, or even to refinance existing debt. Our focus will thereforebe on cash flow generation and the reduction of our need for working capital.

Cost control will form part of our strategy, but to make it a sustainable approach,we need to ensure that it contributes to increasing efficiency in the running of ourorganisation. We will therefore be encouraging the exchange of best practice andknow-how between our people worldwide, and will be using our business model– which coordinates all our energy activities in the deregulated market – as abuilding block towards better risk management.

In terms of our markets worldwide, although we want to reduce exposure toemerging countries, our strategy does not mean that we will be withdrawing fromemerging economies; but we will continue examining carefully the risks involvedwith political instability and currency fluctuations along with the specific com-mercial and contractual risks of each project. The impact of the Argentinean andBrazilian devaluation on our global earnings in the second half of 2002 was a casein point. Our future strategy will be to focus on projects around existing marketswhich are intrinsically profitable, and where we can add supplementary value toour current positions.

After 2004, our new developments will be self-financed on our own cash flowsand the proceeds from asset rotation. The asset rotation strategy implies selling, indue time, mature projects to free up capital resources to step in new projects withhigher value creation or synergy capabilities.

Highlights 2002 - first half-year 2003Notwithstanding the economic downturn, Tractebel EGI can point to 2002 as a year ofsolid achievement in terms of our operations worldwide. These are dealt with in detaillater on in this report, but I will touch on the main highlights here.

In North America, results from Tractebel Power, Inc. and Tractebel LNG NorthAmerica demonstrated the effectiveness of our diversified investment strategyand business model approach. Trigen was integrated within the North Americanregion. An important development was the launch of Tractebel Energy Services,Inc. (TESI), our marketing and sales operation, which complements the activities

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of our other North American subsidiaries, allowing us to gain maximum valuefrom our US electricity, gas and LNG activities. The year also saw us start work ontwo combined cycle merchant plants in Hot Springs, Arkansas, and Choctaw,Mississippi, and the inauguration of our first US merchant plant at Ennis in Texas,together with the preparation of an important boost to our LNG activities from theend of 2002 on.

In South America, we won a 30 year concession for the construction and operation ofa natural gas distribution network in Lima and Callao, Peru; and we inaugurated theCana Brava plant and started the operation of the Machadinho facility, two hydro-electric power stations in Brazil. We also strengthened our position in the northChilean energy market by acquiring Edelnor, the region’s second largest generatingcompany that will make it possible to develop synergies with Electroandina andallow us to be the leading energy supplier in the northern Chilean market. OurArgentinean natural gas distributor Litoral Gas achieved positive results, despitethe country’s economic problems.

Our Asian operations significantly increased their contribution to our overall results.Sales of electricity, gas and steam increased in Thailand, while Hanjin City Gasmaintained its previous performance levels and continuous expansion. We success-fully refinanced our hydropower project in Laos, which had a positive impact onthe results.

In the Middle East region, construction of the Baymina power plant in Turkey is onschedule and expected to go into commercial operation at the end of 2003; while in AbuDhabi the extension of the Al Taweelah power generation and desalination plant wasinaugurated in May 2003.

Our international LNG operations made a positive contribution to our results in theirfirst year of activity.

Future ProspectsThe world economy is not recovering as we hoped, leading to a lower increase ofenergy consumption. It is therefore the moment to focus on our operational effi-ciency and to prove our capability to generate in interesting profits, also during adownturn of the market.

Despite the present difficulties, I believe that we have many reasons to be confidentof the future. We are a well established player on the global energy scene. We candraw on the expertise of more than 4,500 people, all specialists in electricity, gasand LNG, and we have gained a wealth of experience of different energy systemsin various parts of the globe. We have focused our attention on a limited number ofcountries where we have been able to build a strong asset base and presence acrossthe energy value chain. Our results will prove the resilience of our operations, andI am certain we will be able to demonstrate to our shareholders and investors thatthey can have every confidence in the future profitability of Tractebel EGI, even indifficult economic circumstances.

Dirk BeeuwsaertChief Executive Officer

_Dirk

Bee

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Gen

eral

Man

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Com

mitt

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June

30,

200

3

Dirk BEEUWSAERT Chief Executive Officer and

member of the SUEZ Executive Committee

Regional managers:

Jan FLACHET President and CEO Tractebel South America

Clay HARRIS President and CEO Tractebel LNG

Marc JOSZ President and CEO Tractebel Middle East -Asia (MEA)

William P. UTT President and CEO Tractebel North America

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Functional managers:

Micheline BOSSAERT Executive Vice President Business

Development (Finance)

Philip DE CNUDDE Executive Vice President Business Control

Derrick GOSSELIN Executive Vice President Strategy

and Portfolio Management

Eric KENIS Executive Vice President Operations

Henri MEYERS Executive Vice President Business

Development (Operations)

Jacques NIEUWLAND Executive Vice President Human Resources

and Administration

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Key figures

❚ 4,500 employees in 17 countries❚ EUR 3.7 billion in 2002 revenues❚ First private power generator in Brazil, Chile and Thailand❚ No. 1 importer of LNG in the United States❚ Nearly 28,000 MW installed power capacity❚ 15 billion m3 gas transport capacity

Areas of expertise

Tractebel EGI has a worldwide track record of expertisealong the entire energy value chain. In an environment ofopening gas and electricity markets and unbundled energyactivities, we have chosen to maintain a strong and balancedposition in all parts of the energy value chain, including astrong asset base. This allows us to continuously extractvalue wherever and whenever it is to be found and to stabilize our earnings.

Com

pany

pro

file

Tractebel Electricity & Gas International (EGI) is one of the four businesslines of SUEZ, which spearheads the Group’s international energyactivities outside Europe.

We develop, construct, and operate power plants and integrate thesein a global business with access to the market. If possible in the market environment, we do this through long-term off-take for theirenergy. We control an important natural gas and LNG asset base. We transport gas. We sell power and gas to industrial, commercial, and institutional customers and local distribution companies. In somecountries, we develop gas distribution to residential, commercial andindustrial customers. We are an asset-based trader and marketer inelectricity and gas. We offer a broad range of energy-related servicesto industrial, commercial, and institutional customers in order to be inbalance with our generation capacities.

Headquartered in Belgium, we have extensive operations in NorthAmerica, the southern cone of South America, Asia and the Middle East.Our LNG business region operates worldwide and coordinates theexpansion of our LNG activities in both the Atlantic and Pacific markets.

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Energy related servicesEnergy related services have alwaysbeen an important component of ourstrategy in end-user markets. Our aimis not to simply offer customers a com-modity but also to help them optimizethe use of energy in their daily environ-ment and adapt the supply and contractsto their specific needs.

Besides the distribution and sale ofnatural gas, we support customers inconverting their installations to naturalgas use to minimize costs and maximizethe level of comfort, reliability, efficiency,and safety.

We have developed highly reliablecogeneration plants and related power,steam, and water distribution grids indifferent regions. This guarantees thatour industrial customers always havea reliable and high quality supply ofstrategic utilities adapted to theirproduction processes.

These services demonstrate the under-lying Tractebel EGI philosophy of contin-uously adapting our solutions to meetthe evolving needs of our customers.

Power GenerationAt June 30, 2003 our worldwide power generating capacityreached nearly 28,000 Mweq (*). Approximately 4,739 MWeqof this is under construction and 1,332 MWeq under develop-ment. We have a diversified portfolio in terms of geographicalspread, fuels, and technologies, including combined, con-ventional cycles and hydro. This enables us to be a low-costproducer as well as to spread risk. Our customers include,commercial, industrial and local power distribution companies.

LNG activitiesTractebel EGI’s considerable long-term LNG experience andthe growing demand for natural gas have led Tractebel EGIto its substantial position in liquefaction facilities and LNGshipping capacity as well as storage and regasification termi-nals. We are the most important LNG importer in the USmarket and a significant LNG player in the Atlantic Basin.

Wholesale and Trading of electricity and gas as part of our central portfolio risk management approachWhile wholesale and trading activities are an essential component of our risk management strategies throughoutthe energy chain, they are not an objective as such. Theyprincipally serve to balance our portfolio of assets and contracts and to protect our customers and us against unex-pected fluctuations in market prices and volumes of energycommodities.

Transport and Distribution of electricity and gasWe have gas transport and distribution activities in themajor gas markets of North and South America and Asia.In 2002, we transported and distributed nearly 12 billioncubic meters of natural gas to more than one million customers.Nearly two thirds of our gas volume is delivered to industrialand commercial customers.

We also own and operate some electricity transmission facil-ities, in conjunction with production capacity, which allowus to connect our units to main consumption areas or to ourindustrial customers in industrial estates.

(*) The power generating capacity figures in this report are expressed in MWequivalent gross which are made up of electrical energy, thermal energyand demineralised water all converted into MW.

1999

2000

2001

2002

0

500

1000

1500

2000N

orth

Am

eric

a

Sou

thA

mer

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ME

EA

*

LNG

**

Asi

a*

2001 2002

0

500

1000

1500

2000

2500

3000

3500

4000

in MEUR

Turnover (1999-2002)

Breakdown per region

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Con

solid

ated

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figu

res

1999

2000

2001

2002

0

300

600

900

1200

1500

in MEUR

EBITDA (1999-2002)

Nor

thA

mer

ica

Sou

thA

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ica

ME

EA

*

LNG

**

Asi

a*

2001 2002

0

100

200

300

400

500

600

Breakdown per region

*The Asia and MEEA (Middle East Eastern Europe Africa)regions have been merged into a single region (MiddleEast - Asia/MEA) as from May 1, 2003.

**LNG region includes our liquefaction, shipping and short-term transaction activities only. Our regasification activityin the US is part of the North America region.

1999

2000

2001

2002

in MEUR

0

50

100

150

200

250

300

350

Net current result (pG) (1999-2002)

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Mid

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Asi

a

Nor

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Sou

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Breakdown of installed 2002power production capacityper region

development

operation

construction

0

3000

6000

9000

12000

15000

* The power generating capacity figures in this report are expressed in MW equivalent gross which are made up of electrical energy, thermal energy and demineralised water all converted into MW.

in MWeq(Gross)

*

natural gas

hydro

fuel-oil

others (coal,lignite, wood…)

51%

17%29%

3%

Breakdown of 2002 power production capacityby type of fuel

LNG Region

Tractebel LNGNorth America

Asia

North America

South AmericaOf the 11,89 bcm sales in 2002, 99% were as natural gas and 1% as LNG.

Of these natural gas sales, 30% were, prior to vaporization and subsequent sale, first transported as LNG.

30%

Breakdown of 2002 gas sales volumes & LNG transportper region

40%1%

30% 1%

29%

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Breakdown of 2002 steam sales (GJ) per region

Middle East - Asia

South America

North America

0,3%

13,1%86,7%

long-term

merchant

Power Purchase Agreement

15%

76%

9%

Long-Term: steam sales to industrial customer(s) and power sales to industrial customers and/or a public utility

Merchant: sales to a power pool

PPA (Power Purchase Agreement): sale of the entire plant production to a public utility

Breakdown of 2002 power sales (MWh)per region

Breakdown of 2002power sales (MW) per contract type

Middle East - Asia

South America

North America

23% 23%

54%

11

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SUEZ

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SUEZ is an international industrial and services Group that provides innovative solutionsin Energy (electricity and gas) and the Environment (water and waste services) to busi-nesses, municipalities and individuals. The Group has a workforce of 200,000 acrossfour business lines in more than 100 countries. Its revenues reached €40,2 billion in2002 (excluding energy trading), of which 88% were generated in Europe and NorthAmerica. SUEZ is listed in Paris, Brussels, Luxembourg, Zurich and New York.

Key figures

❚ 200,000 employees in more than 100 countries❚ 200 million individuals served daily❚ €40.2 billion in 2002 revenues❚ 88% of revenues generated in Europe and North America❚ 205 ISO 14001 certifications ❚ 12 research centers in 7 countries

Energy

In Energy and Services, SUEZ activities cover the entire energy value chain: sale of electricity and naturalgas, electricity generation, trading transportation, distribution and sale of natural gas. This diversity ofskills allows the Group’s teams to develop a complete range of multi-energy, multi-service and multi-sitesolutions to the challenges facing any business or municipality.❚ No.1 provider of industrial & energy services in Europe❚ No.1 importer of LNG in the United States ❚ 5th European IPP in installed capacity and sales❚ 100 billion m3 in gas transport capacity❚ 50,000 MW installed power capacity❚ 20% of Atlantic LNG market

Environment

SUEZ provides business and individuals throughout the world with long-term solutions to their essentialenvironmental needs in water, sanitation and waste services. By integrating their know-how in Waterand Waste, SUEZ teams apply their synergies in order to answer the increasing needs of cities and busi-nesses while conforming to the environmental standards vital to a strategy of sustainable development.❚ No.1 worldwide in water-related services (total population served)❚ No.1 in Europe in waste management❚ No.1 worldwide of the water treatment plant❚ 125 million individuals served daily in water & sanitation❚ 75 million individuals served daily in waste services❚ 350,000 industrial and commercial clients

Key regions 14

Simplified organisational chart per region 34

Overview operating companies per region 36

Tables 44

Busi

ness

Man

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Busi

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Man

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Sout

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Sout

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Gas pipe in operation

Gas distribution

Gas pipe under construction

Gas distribution networkunder construction

Office

Power station under construction

Power station under development

Power station in operation

Passo Fundo

Salto Osorio

Salto Santiago

Alegrete

Charqueadas

Jorge Lacerda

Arjona

Itá

Machadinho

Lages

Key

regi

ons

Ilo

Tocopilla

MantosBlancosMejillones

Antofagasta

Lima

Nehuenco

Santiago

San Ignacio Colbún

Machicura

Rucúe

Rosario

BuenosAires

Cana Brava

Rio de Janeiro

Florianopolis

Sáo Salvador

Estreito

Arica

Chapiquiña

Iquique

Carena

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Argentina

Besides political difficulties, the coun-try suffered an important devaluationprocess that seriously affected itseconomy. Despite this adverse situa-tion, Tractebel EGI’s assets in Argentinabore up well as far as operationalparameters are concerned.

Litoral Gas, our distribution companyin the province of Santa Fe and north-ern Buenos Aires, performed well andshowed reasonably sustained growth.It serves the core of the country’s agro-industrial production where the devalu-ation of the peso has been most bene-ficial, with positive effects on levels ofactivity and demand. Public financesin Santa Fe Province also improved inrelation to the situation in the rest ofthe country.

Besides the tough economic conditionsthroughout 2002, Gasoducto Nor Andinoexperienced a two and a half monthinterruption of gas supplies due todamage caused by the rainy season.This has been successfully repaired witha 4.4 km rerouting. Energy ConsultingServices saw its business grow interms of local currency and reached its2002 objectives and goals. The companymaintained its gas customer base andsuccessfully entered the large electricalconsumer segment in addition to servingmid-size consumers.

South America experienced some difficulties afterthe Argentinean crisis. Political uncertainty and theintrinsic financial weakness of several countries ledto a loss of investor confidence and to the devalua-tion of various currencies. This contagious effectincreased the magnitude of the problems beyondwhat would otherwise have been just necessaryadjustments. The global economic slowdown alsofueled the crisis.

Brazil

In Brazil, these problems have been intensified by a series ofinternal difficulties. A profound depreciation of the Realincreased the cost of loans and debts in foreign currencies.There was also an energy glut following a period ofrationing. This was due to two main factors: first, goodhydrologic conditions allowed the recovery of hydroelectricplant reservoir levels and, second, change in the popula-tion’s habits. Many uncertainties about the Brazilian energysector, such as the creation of a new model for the sectorwhich has to be approved in 2003, were due to the fact that2002 was also an election year. These uncertainties meantthat investments in the sector were suspended for a time.

After the low growth in consumption experienced in 2002,domestic electricity demand is back in line with economicfundamentals. There was a 10.8% growth in the first quarterof 2003. The Real also appreciated more than 20% betweenDecember 2002 and June 2003. Tractebel Energia, Brazil’slargest private power generator, has fulfilled its commitmentsby increasing its generating capacity with the 1,193 MWMachadinho hydroelectric plant entering into operation, theinauguration of the 465 MW Cana Brava hydroelectric plant,and the 66 MW extension of the William Arjona thermalpower plant. In 2002, Tractebel Energia became the firstcompany in Brazil to hold an energy auction. This resulted inimportant long-term new energy supply contracts. About 86%of all available capacity is sold until 2006 and a substantialpart until 2008, even 2016.

Brazil, Argentina, Peru and Chile

Chile

Chile was an exception to the economic and socially unstablesituation in South America, which maintained political andeconomic stability. However, a lack of confidence in theimmediate future could be felt, due to the high rate of unem-ployment, slower socio-economic growth, and the increasingproblems of unequal wealth distribution.

For several years, Chile has had the most stable economy inSouth America. It has had good macro-economic results, a dynamic private sector, updated fiscal accounts, and a balanced external debt. However, it did not escape the reper-cussions of the slowdown in Argentina and Brazil. Althoughdistrust reduced the foreign investment rate, there were alsopositive evolutions. Chile was the country that best rode outthe South American economic crisis. This was due to threemain factors: its economy is very open, it has a rigorous taxpolicy, and it is not dependent upon any economic bloc. It isalso important to mention the “advantage-growth” agenda,which is an agreement between the industry and the gov-ernment to solve problems and increase the Chilean growthindex by establishing incentives in the various economic sectors.

In order to stimulate investments in the energy sector, a newlaw, the “ley corta”, was proposed. This law aims to regulatethe electricity transmission system and enable investmentsto interconnect the two regions of the Chilean electric grid,the SING (Sistema Interconectado del Norte Grand) and theSIC (Sistema Interconectado Central).

In November 2002, Tractebel EGI and Codelco (Chile’s largeststate-owned company and the world’s largest copper pro-ducer) acquired 82.34% of Edelnor, a major thermal powercompany in Chile’s northern grid. With an installed capacity of719 MW and an extensive network of 1,000 km of transmissionlines, Edelnor is SING’s second largest power company.Through its equity investments in Edelnor, Electroandina,and Gasoducto Nor Andino, Tractebel EGI is now the largestplayer in the North Chilean energy sector.

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Peru

In 2002, Peru held the first regionalelections in the country’s history. Thesewere held in a context of growingdecentralization and have changedthe Peruvian political map by definingdistinctive political movements. Thedecentralization process created 25regional authorities. Peruvian economicgrowth was higher than Latin America’saverage.

Tractebel EGI won a 30-year concessionfor the construction and operation of anatural gas distribution network in Limaand Callao. The distribution pipeline willprovide natural gas from the Camiseagas fields to many of Lima’s most impor-tant industries and to regional electricpower plants. Additional distributionnetworks to industrial, commercial, andresidential clients will be implementedin a later stage. By taking an 8% interestin the capital of the TGP consortium,Tractebel EGI also became a partner inthe transportation of natural gas andliquids such as propane and butanefrom the Camisea gas fields.

In line with its policy of diversifyingand strengthening its position as anenergy supplier, EnerSur ended 2002with a contract with Textil Santa Anita,an important textile company, andbecame its sole electricity supplier forthe next 11 years.

17

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Events 2002 ➔ South AmericaFebruary 2002 • Gerasul — Centrais Geradoras do Sul do Brasil S.A. changed its name to Tractebel Energia S.A.This reflects the fact that the company’s activities are no longer restricted to the southern region of Brazil and linksit more closely to our worldwide Group.

February 2002 • The Machadinho 1,193 MW hydroelectric power station began operations. Tractebel Energia ownsapproximately 17% of the plant and is responsible for its operation and maintenance.

May 2002 • Operation of the Cana Brava hydroelectric power station (465 MW), six months ahead of schedule.

May 2002 • Tractebel EGI won a 30-year concession for the construction and operation of a natural gas distribution network in Lima and Callao. The distribution pipeline will provide natural gas to some of Lima’s mostimportant industries as well as to regional electric power plants. By taking an 8% interest in the capital of the TGPconsortium, Tractebel EGI also became a partner in the transport of natural gas and liquids such as propane andbutane from the Camisea gas fields.

July 2002 • Enlargement of William Arjona thermal power plant in Brazil, increasing its installed capacity to 177 MW.It is formed by five turbogenerators and uses natural gas from Bolivia.

September 2002 • TIS Perú S.R.L. was formally incorporated as a company specializing in the sale, purchase, and marketing of electricity and gas, as well as other related services.

October 2002 • Construction work began on a distribution gas pipeline in Lurín, a district in the southern part of Lima.

November 2002 • Tractebel EGI and Codelco acquired 82.34% of the capital of Edelnor, the second largest powergenerating company in Northern Chile.

December 2002 • EnerSur signed a contract with Textil Santa Anita, an important textile company, becoming itssole electricity supplier for a period of 11 years.

LNG regasification terminal

Trigen facility under construction

Trigen facility in operation

Gas distribution

Office

Nor

thA

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Key

regi

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Nor

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Chehalis

MacBain

Houston

EnnisWise County

San Gabriel

Ripon

RedHills

Choctaw

TamworthBethlehemBellinghamFitchburg

Sayreville

Appomattox

Ryegate

Boston

Monterrey

Guadalajara

Querétaro

TampicoAltamira

Power station under construction

Power station in operation

Lincoln

WestWindsor

Hot Spring

USA, Canada

and Mexico

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TNA is a prudent, well-funded player inthe North American energy market,focused on value creation rather thansize, and employing a business modeldesigned to succeed in all phases ofthe business cycle.

Over the past five years, Tractebel NorthAmerica has achieved significant successand increased profits. TNA’s strategyis to own or control those assets, con-tracts, and customers that allow it tomaximize returns above its capital costs.

❚ Owning a combination of electricitygeneration and LNG assets is impor-tant because they provide a solid andpredictable income stream. A mix ofpower sold on contract, merchantpower, contract cogeneration, andLNG receiving terminals provideTNA’s core earnings.

❚ Asset-based trading and sourcingprovide TNA with the opportunityto enhance the value of its assets. TheCentral Portfolio Manager activelytrades long-term positions of assetsand customers that TNA controls.

❚ TNA’s commercial operations makethe most of its assets by providingnatural off-take arrangements and apositive marketing presence, whilereducing or avoiding transactioncosts. TNA is expanding its retailenergy businesses to further developits wholesale and retail activities.

Skill before scaleBecause it chooses its position creativelyand selectively in the North Americanenergy market, TNA does not have tobe big in any one area. Being a suc-cessful player in the US energy sectoris all about applying a wide variety ofskills based on assets to create addi-tional value. TNA is neither a large nora dominant player in many parts of

The United States is the world’s biggest marketfor electricity and natural gas. These two sectorsare increasingly converging. A number of majorupheavals that occurred in 2002 have createdsignificant challenges for the North Americanenergy industry. These include operating in theaftermath of September 11, the actual or threat-ened bankruptcy of key players, questionable orillegal accounting and financial reporting, allega-tion of energy market manipulation and morerestricted access to higher cost capital markets.

For capable, ethical and diversifed players such asTractebel North America, Inc. (TNA), ample businessopportunities still exist. These include, among others,the development of LNG regasification terminals,and building a new retail energy business offeringrisk management and associated services to majorcommercial and industrial customers.

USA and Canada

TNA is responsible for Tractebel EGI’s operations in theNorth American energy market. Its core activities includethe development, acquisition, and operation of electricityand cogeneration facilities, LNG imports and sales, trading,sourcing, and marketing and sales of energy products andservices. TNA is comprised of six business units, each ofwhich is individually responsible for achieving profitablegrowth. As part of a highly integrated organization, eachbusiness unit cooperates with the others to achieve optimalresults for TNA’s operations.

A smart strategyTo operate successfully in this challenging arena, TNAemploys Tractebel EGI’s “Smart Play” strategy. This meansbeing a low cost producer and regional systems player,embracing the convergence of gas and electricity as well asenergy and services, and balancing asset and sales positions.

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❚ To achieve balance with its asset positions, TNA is now targeting a broad range of commercial and industrial customers to supply risk-managed energy and associatedservices.

❚ TNA reviewed its existing portfolio of assets with an eye todisposing of those that are not consistent with its strategyand business model. We are continuing to manage our coststructure to ensure our low cost position and strong credit profile.

Mexico

In Mexico, construction of the new Monterrey cogenerationplant was completed in 2002 and was officially inauguratedin February 2003. This new power plant, represents aninvestment of US$ 190 million. It is the largest private cogen-eration plant currently operating in Mexico. The power gen-erated will supply 38 industrial facilities nation-wide.

The project strengthens Tractebel EGI’s commitment to theMexican energy sector. It is located in a region with a highdemand for energy and excellent infrastructure. The newfacility represents an important energy alternative to theindustrial sector by providing industrial users with clean,reliable, and competitive energy.

the US energy industry, but this is nota constraint. For US energy companies,being bigger does not necessarilymean being better or more profitable.

The key issue is not scale, but ratherexecution and skill. By focusing onskills, TNA can achieve the best returnfrom its choice of assets, contracts, andcustomers, over time and across regions.Tractebel EGI’s business model isdesigned to extract the maximumvalue from the company’s portfolio ofassets and financial and humanresources. To achieve these objectivesin the US market, ownership, control,and management of assets have to beof superior quality. TNA is thereforefocusing on acquiring positions withinthe energy value chain from whichsuperior value can be extracted.

Key initiativesTNA has an integrated strategy thatbalances its positions across the NorthAmerican energy market. For eachindividual business unit, the focus is onprofitable growth within the context ofTNA’s strategy and the reality of theindustry. A number of key initiativeswere implemented during 2002:

❚ TNA reduced its focus on buildingnew greenfield merchant generationassets. It is concentrating on the com-pletion of plants already under con-struction.

❚ TNA sought to expand its NorthAmerican market leadership positionin LNG by examining opportunitiesto develop, acquire, or control keyassets in the LNG value chain.

❚ TNA’s trading/hedging activitiescontinued to focus on portfolio man-agement and contracts with cus-tomers (power and LNG).

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Events 2002-2003 ➔ North America

February 2002 • Work began on the construction of a 714 MW combined cycle, gas-fired plant located in Hot Spring County, Arkansas.

April 2002 • Began integrating the business activities of Trigen Energy Corporationwith those of TNA and its subsidiaries to enhance operating synergy, improve efficiency,and increase profitability.

April 2002 • Commenced construction of pipelines to meet the needs of residentialcustomers served by Tractebel Mexico’s natural gas distribution concession in Guadalajara, Mexico.

June 2002 • Inauguration of the Ennis Power Station in Ennis, Texas. This 346 MWcombined cycle, gas-fired facility is Tractebel EGI’s first merchant power plant in the US.

June 2002 • Inauguration of the Red Hills Power Station in Ackerman, Mississippi.This 480 MW electric power plant is the first coal-fired facility to be built in the US in the past five years. Its electricity will be delivered to the Tennessee Valley Authority,the project’s sole customer, under a 30-year contract.

June 2002 • Groundbreaking for the Choctaw Gas Project. This 714 MW combinedcycle, gas-fired merchant power facility is located in Choctaw County, Mississippi.

August 2002 • Launch of Tractebel Energy Services, Inc., the customer-oriented subsidiary of Tractebel North America which provides retail electricity, gas, and otherenergy services and products to commercial and industrial companies in the US. The company’s initial market entry focused on attracting customers in Massachusetts,New York, and Texas, and it will expand into other states as regulations permit.

September 2002 • The acquisition of Enron’s remaining 20% stake in the Monterrey(Mexico) Power Project established Tractebel EGI as the sole owner of the project.The combined cycle cogeneration plant will produce 245 MW of electricity and up to 235 MT/h of steam. This will be sold to industrial installations in Mexico under long-term contracts. Its inauguration took place in February 2003.

October 2002 • Acquisition of the development rights to the Bahamas LNG projectand the associated Calypso Pipeline project from Enron. The acquisition includes the rights to develop an LNG receiving terminal, storage tanks, and a regasificationplant in Freeport, Grand Bahamas Island. This will connect with the Calypso Pipelineand serve South Florida’s growing energy demands.

December 2002 • Tractebel LNG North America reported record annual deliveries to customers in the US and Puerto Rico. In 2002, the company delivered 48 cargoes,totaling 115 million MMBtu to its LNG receiving terminal in Everett, Massachusetts,and posted a company record of 61 cargo deliveries, totaling 137 million MMBtu, to all North American terminals, including Everett.

2003 • Tractebel LNG North America’s shipping fleet was supplemented with the launch of the newbuild vessel Berge Boston in January and a second newbuild vessel, Berge Everett, in June. These vessels bring the company’s total LNG transport capacity to 401,000 cubic meters.

2003 • Since its inception in mid 2002, Tractebel Energy Services has very rapidlybecome a major retail energy provider in the five deregulated states where it competes. In fact, TESI already serves some of the largest, most well-known namesin manufacturing, mass merchandising, supermarkets, hotels and commercial realestate in those markets. At June 30, it signed customer contracts representing morethan 1100 accounts and contracts for more than 4.6 TWh.

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Key

regi

ons

Mid

dle

East

-A

sia

Mid

dle

East

- A

sia

Baymina

Al Taweelah

Al Manah

Centralised utilities supply

Gas distribution

Office

Power station under construction

Power station in operation

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Although many Asian countrieseventually intend to introducemarket forces to their power andgas industries, most plans forpower pools have been shelvedor delayed. The results of recentderegulation and privatizationprograms in different countrieshave confirmed the gradual emer-gence of the managed market.This hybrid form is neither the fullystate-owned model nor the fullycompetitive market. Private com-panies and government-ownedentities operate together within thesame market. In addition, there hasbeen a reduction in the numberof potential foreign investors in2002. This has further dampenedenthusiasm for privatization andderegulation in the region.

Tractebel EGI is consolidating itsAsian and Middle East positionin the electricity and gas marketsin medium to large-scale seg-ments. Our strategy is to concen-trate on politically stable countriesthat provide attractive investmentopportunities, have fundamentallystrong economies, and are knownto honor contracts. We workclosely with our local partnersand the local community in thosecountries.

The main features of the MiddleEast - Asia region are stable govern-ments, sustained demand for elec-tricity and gas, declining electricityreserve margins, and availability of

Thailand, Laos, South Korea,Singapore, Turkey, Oman, and United Arab Emirates

Seoul

Houay Ho

Glow Group

Singapore

Zhenjiang

Bangkok

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Consolidation of activitiesIn January 2002, Tractebel EGI acquired a controlling stakein the Houay Ho hydroelectric power project in Laos. This isan important step towards diversifying our energy portfolio.Houay Ho Power Company Ltd arranged a US$ 96 millionnon-recourse finance package with a consortium of Thailenders at the end of December 2002.

Two 126 MW cogeneration plants, Nong Khae and SamutPrakarn, were disposed of at the end of 2002.

The Bowin power plant started commercial operation atthe end of January 2003. The plant consists of two units of365 MW each, located in Chonburi Industrial Estate andcapable of supplying 730 MW of electrical power to EGATunder the Independent Power Producer Scheme.

Following the business developments of industrial customerslocated at the Map Tha Phut Industrial Estate, there has beenan increase in the demand for both electricity and steam.This has enabled the Glow Group - the largest private powerproducer in Thailand and Tractebel EGI’s energy and utilityservices affiliate – to sign several new contracts.

PTT-NGD gas distribution operations were extended to aseventh industrial estate. The Amata-NGD joint venture wasset up to serve two additional industrial estates, the first ofwhich started in 2002.

South Korea

South Korea has a fundamentally strong economy that enjoyeda solid 5.7% growth in 2002, thanks to buoyant domesticdemand and strong exports.

The new administration has a more reserved approachtowards deregulation and privatization than its predecessor,and there is increasing uncertainty as to the future shapeand pace of the deregulation process. The privatization ofthe first of five Korea Electric Power Co. (Kepco) generatingcompanies, Kosepco, through the trade sale of a stake to astrategic investor failed because of lack of private sectorinterest. However, the government has decided to go aheadwith the privatization of the five state-run Kepco generatingcompanies through IPOs. Liberalization of the gas sector hasbeen postponed.

long-term PPA’s (power purchaseagreements) with creditworthy pub-lic or private off-takers. Our objec-tive in this region is to contributeto group earnings with stableresults thanks to long-term con-tracts that assure secured returnsin US dollars.

Thailand and Laos

In 2002, GDP growth in Thailandreached 5.2%. This is one of thestrongest performances in the region.Strong domestic demand, strong exports,and the government’s continued growthstimulating strategy underpin thisachievement. The prospects for 2003are encouraging, with a 6% growth tar-get set by the government. In addition,stability and pro-business policies areexpected to continue.

On the electricity regulation front, thegovernment abandoned the idea ofimplementing a pool market. It con-firmed the single buyer model and thepartial privatization of the ElectricityGenerating Authority of Thailand(EGAT) through an initial publicoffering (IPO) of a 30% stake at thebeginning of 2004.

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Turkey

Turkish GDP growth rebounded strongly in 2002 to reach7.8%. It is expected to decrease to 3% in 2003 due to a lessfavorable international environment and uncertainty follow-ing the Iraq war. A World Bank and IMF-backed economicreforms program has encouraged the gradual liberalizationof the Turkish economy.

New laws have been adopted for both the electricity and gassectors, introducing competition to the market. However,the pace of deregulation in the electricity sector is uncertain.In the gas market, deregulation is delayed pending resolutionof various issues related to long-term import contracts agreedby BOTAS, the state-owned gas company.

Tractebel EGI is building the 770 MW Baymina combinedcycle power plant near Ankara. It is a Build-Operate-Ownproject with an associated 20 year PPA (including construc-tion). The commercial operation date is scheduled for theend of 2003.

Continued sales performancesThe number of Hanjin City Gas customers increased by 10% in2002 but saw only a 6.5% growth in sales volume due to a mildwinter in 2001-2002. The beginning of 2003, however, sawlower than average temperatures and led to above averagesales of natural gas. This bodes well for the rest of the year.Hanjin City Gas also maintained sales performance thanks tothe completion of a new 65 km grid extension.

Most of the LNG consumed in South Korea is purchasedunder long-term contracts by the government-ownedimporter and wholesaler Korea Gas (Kogas). Spot sales in 2002were approximately 2 million tonnes, with Tractebel LNGmaking its first sales in the region.

Singapore

Singapore experienced only a slight 2.2% economic growthin 2002 due to lower export demand. The New ElectricityMarket (NEM) commenced operation on 1 January 2003. Itsobjectives are to establish market prices driven by supplyand demand, to increase transparency, and to reduce themarket power of dominant generators. The privatization ofgenerators has been further delayed until 2004 at the earliest.In the gas supply sector, the gas transportation monopolywill be vested in Power Gas Transport. As such, it can beexpected to take over the entire transport and distributionsystem of SembGas in the future.

After a challenging 2002 for SembCogen, the start of the NEMhas resulted in an improvement of the company’s performance.SUT Sakra and SembGas turned in excellent performances in2002, which was the first full operational year for SembGasand saw a steep increase in sales volumes, from 0.7 Bcm in 2001to 2.4 Bcm in 2002. The potential market for smaller customers,including small size cogeneration, offers good opportunitiesfor future growth.

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United Arab Emirates

The United Arab Emirates (UAE) economy grew by 1.8% in2002 and is expected to increase by 4.2% in 2003. As inOman, the power market is totally regulated. It is a single-buyer market where the Abu Dhabi Water and ElectricityCompany (ADWEC), a state-owned entity, buys all the elec-tricity production on long-term contracts. Privatization ofgeneration has been underway for several years. Past inde-pendent power projects include Taweelah A2 and A1,Shuweihat, and Umm Al Nar. However, further deregula-tion and introduction of competition is not expected in themedium term.

The Taweelah A1 independent power and water project(1,808 MW/84 MIGD) came into commercial operation atthe end of April 2003. The facility is owned jointly byTractebel EGI, Total, and the Abu Dhabi Water and ElectricityAuthority (ADWEA). This 1.5 billion dollar project will pro-duce 25% of the total electricity and 25% of the total waterproduction of the Emirate of Abu Dhabi. The Taweelah A1project consolidates Tractebel EGI’s presence in a regionwith strong growth potential, particularly in combinedwater and power projects.

Oman

GDP growth in 2002 was 2.2% and isexpected to decrease to 0.5% in 2003.Oman is attempting to diversify itseconomy away from its current relianceon oil exports. The government hasshown commitment to privatizationand promotion of foreign investmentin recent years.

The power market is totally regulated.A new law is being prepared to estab-lish a single-buyer market where theMinistry of Electricity and Water buysall electricity production. The law willallow the privatization of existing gen-eration facilities, distribution, andtransmission assets. However, deregu-lation is not expected in the mediumterm.

Tractebel EGI operates the 292 MWManah power plant. The plant is ownedby the United Power Company (UPC),in which Tractebel EGI owns a 32.81%stake. UPC works on a Build-Operate-Own-Transfer scheme that comes to anend in 2020. UPC also built and owns180 km of 132 kV transmission lines,which are rented to and run by thegrid operator.

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Events 2002-2003 ➔ Middle East - Asia

January 2002 • Tractebel EGI acquired a controlling stake inthe Houay Ho hydroelectric power project in Laos, as a steptowards diversifying its energy portfolio.

September/November 2002 • Tractebel EGI sold two of itsThai subsidiaries (Nong Khae Cogeneration Company andSamut Prakarn Cogeneration Company Ltd) to Gulf ElectricPublic Company.

December 2002 • Houay Ho Power Company Ltd arranged a US$ 96 million non-recourse finance package with a consortiumof Thai lenders.

December 2002 • PTT-NGD gas distribution operations were extended to a seventh industrial estate in Bangkok.

December 2002 • Refurbishment of all existing Al TaweelahA1 desalination units and full commercial operation of desalination units.

January 2003 • The Bowin power plant entered commercialoperation. The plant, which consists of two units of 365 MWeach, is located on the Chonburi Industrial Estate and is capable of supplying 730 MW of electrical power to EGATunder the Independent Power Producer Scheme.

May 2003 • Inauguration of the Al Taweelah A1 project in Abu Dhabi.

May 2003 • The two former Tractebel EGI regions encompassing the Middle East, Eastern Europe, Africa, and Asia-Pacific were merged into a single region.

June 2003 • Several new power contracts with existing andnew industrial clients on the Map Tha Phut Industrial Estate in Thailand.

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LNG

(Liq

uefi

ed N

atur

al G

as)

Gas trading

Tractebel regasification terminal

Tractebel liquefaction plant

Third party regasification terminal

Tractebel LNG flow

Key

regi

ons

Trinidad & Tobago

Everett

Liqu

efie

d N

atur

al G

as(L

NG

)

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In 2002, worldwide LNG activi-ties involved 12 LNG exportingcountries and 11 importing coun-tries. Approximately 70% of globalLNG trade took place in theAsia-Pacific region and 30% inthe Atlantic Basin. Global LNGtrade grew by 4% compared with2001. In many markets, LNG ishelping to meet rapidly risingdemand that is not being met byconventional pipeline gas.

The global demand for gas isincreasing faster than the demandfor electricity, and global LNGdemand is growing faster thangas demand. Gas is steadilyincreasing its share of OECD pri-mary energy supplies and govern-ments across the globe activelypromote its use. LNG helps todiversify gas supply sources,hence increasing supply security.

Tractebel group manages LNGsupply from various sources andowns and operates regasificationfacilities on both sides of theAtlantic. Its enhanced presencein the Atlantic Basin, a high growthmarket for LNG, is a critical linkbetween Tractebel’s key marketsin Europe and North America.Tractebel EGI also has a well-established downstream gasmarket presence in the Asia-Pacific region.

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Outlook

LNG trade has grown significantly in recent years withannual figures predicted to double by 2010 and more thantriple by 2020. Expected gas supply gaps in the USA andEurope, as well as diminishing LNG costs, make LNG anincreasingly attractive prospect for these growing markets.

The clean-burning fuel properties, increasingly competitiveprice, and excellent safety record of natural gas haveenabled it to gain a much more prominent position in theenergy marketplace. Between 1996 and 2001, Atlantic BasinLNG demand grew by an average of 12% per year. Growthin the Asia-Pacific region has been slower, at 6% per yearover the same period. Although prospects for growth insome existing Asian markets are uncertain, India and Chinaare possible major new markets for LNG.

Although there is increased short-term trading, the market islikely to remain dependent upon long-term contracts in thenear future. However, these long-term contracts are likely tobecome increasingly flexible, due to changes in downstreamgas markets and the emergence of new markets that are forc-ing buyers to seek more flexible supplies than those avail-able in the past. Another key feature is the steady growth ofshort-term LNG transactions, which require destinationflexibility in underlying contracts.

Significant world LNG trade indicators

The long-term average annual growthof the LNG market has been around 7-8%. Even in 2002, the global LNGmarket grew by around 4%. WorldLNG trade was approximately 111 mil-lion tons per annum in 2002, servingmajor LNG markets in the Asia-Pacificregion, particularly in Japan, andgrowing markets in the Atlantic Basin.With capacity expansions planned at many production and receptionfacilities and the first European exportproject planned (the Snohvit project inNorway), LNG is expected to increasein global reach and significance.

Indonesia was the leading LNGexporter, supplying about 23% of allLNG exports in 2002. Japan was theprimary LNG importer, taking around49% of all imports. Several new LNGships were delivered in 2002-2003,bringing the world’s LNG tanker fleetto over 142 LNG carriers, with another55 vessels on order.

Tractebel LNG

Tractebel LNG, a subsidiary of Tractebel EGI started busi-ness in 2002. Based in Luxemburg and London, it operatesworldwide and coordinates the expansion of LNG activitiesfor Tractebel EGI in both the Atlantic and Pacific markets. It also promotes new long-term LNG supply ventures. In addition, the company sells LNG spot cargoes and coor-dinates LNG shipping capacity for Tractebel EGI.

Tractebel’s strength comes from its strong market presencein downstream natural gas markets such as the Boston,Massachusetts area and Belgium. Tractebel LNG’s aim is tosecure LNG supply to support the further development ofits sister companies in the downstream gas markets. TheBahamas project designed to feed gas to the Florida marketis an example of that strategy.

Tractebel LNG has established itself as an internationallyknown and active LNG player. Its notable recent achieve-ments include expansion of its LNG shipping capacity andnew agreements for LNG sales to North America, Europe,and the Far East.

Tractebel LNG manages two of Tractebel EGI’s new LNGcarriers, the Hoegh Galleon and the Excalibur. Both vesselsentered service in 2002. Tractebel LNG is steadily buildingup its international LNG supply portfolio and will continueto focus on offering flexibility to its international customersas well as supplying Tractebel’s downstream gas markets.

Since it began delivering LNG in the second half of 2002,Tractebel LNG has supplied LNG cargoes to Spain, Korea,and North America. Tractebel LNG is involved in arbitrage,developing short-term transactions, and negotiating long-term supply agreements.

In 2003, the Tractebel LNG North America shipping fleetwas supplemented with the launches of the Berge Boston inJanuary and the Berge Everett in June. The addition of thesevessels brings Tractebel’s total LNG transport capacity(either owned or under long-term charter) to in excess of onemillion cubic meters. The new ships will be used primarilyto transport LNG from Trinidad to the Tractebel’s LNGimport terminal in Everett, Massachusetts and to otherAtlantic Basin LNG facilities.

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Strategic LNG objectives

Tractebel LNG has the role of leading the expansion ofTractebel EGI’s already substantial LNG business by focusingon new supply sources while its sister companies developnew downstream gas markets.

Tractebel LNG is keen to focus on the US gas market becausewe believe it is the right time to bring more LNG to that mar-ketplace. We supplied Tractebel’s first cargo to the Far East(Kogas, South Korea) earlier this year. And we remain eagerto expand our existing LNG presence in Europe. LNGalready supplies up to 10% of Western Europe’s total gasdemand, and we believe that percentage will grow.

The Tractebel EGI strategy is to increase its presence in therapidly growing international LNG industry. This is in linewith Tractebel’s overall strategy of focusing on high growthmarkets where we can build sustainable businesses.Tractebel EGI has set itself the goal of building a multi-source, multidestination portfolio of LNG supplies, both inthe short- and long-term.

Tractebel Group

Businesses within the Tractebel Grouphave been working in the LNG marketfor over 30 years. They have beenusing natural gas in their own businesssystems as well as providing majorgas-related engineering services toother gas and LNG companies.

The Tractebel Group creates successfulsynergies between its regasificationterminals at Everett and Zeebrugge, itsexpanding fleet of LNG carriers, andits portfolio of LNG supplies, includ-ing those from its Atlantic LNG lique-faction plant in Trinidad. With itsexpanding LNG fleet, Tractebel is nowin an excellent position to deliver arbi-trage opportunities and supply solu-tions to the global LNG industry.

❚ Tractebel provides secure supplies toits own downstream gas markets inEurope and the United States, as wellas to third party LNG buyers.

❚ With around 20% of the Atlantic BasinLNG market, Tractebel is:❚ The leading supplier of LNG to

the US❚ Second both in overall vessel and

regasification capacity❚ Number three in contracted supply

volumes

❚ With its focus on safety, innovation,secure supplies, and optionality,Tractebel is quickly developing aneven stronger presence on the globalLNG market.

❚ Tractebel is maximizing flexibilityby combining its long establishedpresence in both gas and electricitymarkets to initiate high levels ofconvergence.

Events 2001-2003 ➔ LNG

August 2001 • Tractebel LNG set-up activity commenced.

October 2001 • Moved in to London office, initiated keyfinancial, strategic, and operational management functions.

February 2002 • Core management team recruited and putin place.

July 2002 • Secured the Hoegh Galleon on a 17-year charter, began short-term supply and shipping activities.

August 2002 • Oman 2 cargo shipments to Spain commenced.

September 2002 • Secured the Excalibur (newly built) on a 2-year charter.

October 2002 • Took delivery of Excalibur and began supply and shipping activities.

October 2002 • Hoegh Galleon 6-month sub-charter to Gas Natural commenced.

November 2002 • Oman 10 cargo shipments commenced,initial cargoes diverted to Far East from USA.

January 2003 • The Tractebel LNG North America shippingfleet supplemented with the Berge Boston (newly built) vessel.

June 2003 • The Tractebel LNG North America shippingfleet supplemented with the Berge Everett (newly built) vessel.

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South America

Tractebel EGISouth America Tractebel Brazil Tractebel Energia

(Brazil)TractebelArgentina

Litoral Gas(Argentina)

ECS(Argentina)

Gasoducto Nor Andino(Argentina)

EDELNOR(Chile)

Colbún(Chile)

GasoductoNor Andino

(Chile)

Distrinor(Chile)

Electroandina(Chile)

TractebelAndino(Chile)

TGP(Peru)

TractebelIndustrialServices(Peru)

Gas Natural deLima y Callao

(Peru)EnersurTractebel

Peru

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Sim

plifi

ed o

rgan

isat

iona

l cha

rt p

er re

gion

at Ju

ne 3

0, 2

003

North America

Tractebel LNGNorth America

TractebelNorth America

TractebelPower, Inc.

Tractebel EnergyMarketing, Inc.

Tractebel ProjectDevelopment, Inc.

Tractebel Energy Services, Inc.

Tractebel Mexico

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Middle East - Asia

EGI Middle East TractebelAbu Dhabi

United PowerCompany (Oman)

Gulf Total TractebelPower Company

(Abu Dhabi)

Elyo SouthEast Asia

(Singapore)

TractebelKorea

Hanijn CityGas

(South Korea)

Houay HoPower

Company(Laos)

SembCorpCogen

(Singapore)

SUT Sakra(Singapore)

SembGas(Singapore)

Tractebel(Singapore)

PTT NGD(Thailand)

TractebelAsia

Baymina Enerji(Turkey)

TractebelSouth Africa

Glow(Thailand)

Regional headquarters/ Coordination of country activities/Representative Office

Operating Company

LNG

Tractebel LNG Trading

(Luxembourg)

Tractebel LNG(United Kingdom)

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Ove

rvie

w o

pera

ting

com

pani

es p

er re

gion

SOUTH AMERICACountry Activity Company name

Argentina Gas and electricity marketing ECSand consulting company

Argentina Gas distribution and transport Litoral Gas

Argentina-Chile Gas transport Gasoducto Nor Andino

Brazil Power generation Tractebel Energia

Chile Power generation and transmission Colbun

Chile Gas marketing and distribution Distrinor

Chile Power generation and transmission Edelnor

Chile Power generation and transmission Electroandina

Peru Power generation and transmission Enersur

Peru Gas distribution Gas Natural de Lima y Callao

Peru Gas Related Services Tractebel Industrial Services

Peru Gas transport Transportadora de Gas del Peru (TGP)

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❙ Independent intermediary bringing together electricity buyers and sellers ❙ Buys natural gas on the open market and sells it on directly to large industrial customers and distributors❙ Distributes and transports natural gas in Santa Fé and northern part of Buenos Aires province (136,387 km2) ❙ Tractebel share: 63% ❙ 440,113 customers of which 50 are large industrial customers, 17 sub-distributors and 6 power stations ❙ Sales 2002: 2.92 billion m3

❙ Provides gas transportation services between northern Argentina and northern Chile ❙ Tractebel share: 84.6%❙ Customers: 3 power stations❙ Sales 2002: 0.53 billion m3

❙ Brazil’s largest private power generator with activities in the States of Santa Catharina, Rio Grande do Sul, Parana, Mato Grosso doSul and Goias. Its generating park -75% hydroelectric and 25% thermoelectric- totals an installed capacity of more than 7,000 Mweq

❙ Tractebel share: 78.3% ❙ Customers: industrial clients, distributors and traders❙ Third largest power generator in the SIC system (Sistema Interconectado Central) which covers the central and southern part of

Chile. It operates 7 power plants –60% hydroelectric and 40% thermal- with a total installed capacity of nearly 1,300 Mweq.❙ Owner and operator of a 412km HV transmission line connecting Colbun to Santiago ❙ Holds a 42.5% stake in the gas pipeline linking Santiago and the Nehuenco power plant ❙ Tractebel share: 29% ❙ Customers: power output sold to the industry, principally copper mines, and the grid❙ Markets and distributes natural gas in northern Chile ❙ Tractebel share: 33,26% ❙ 1 cooperative and 4 industrial customers ❙ Sales 2002: 102 million m3

❙ Second largest power generator in the SING system, operating 6 power plants with a total installed capacity of 720 MWeq. ❙ Owner and operator of 1,028 km of transmission lines.❙ Tractebel share: 33% ❙ Customers: copper mines, distributors, refineries, port, mines, real estate, desalination plants. ❙ Largest power generator in the SING system (Sistema Interconectado del Norte Grande) that covers northern Chile.

Its generating park of 10 power plants located in Tocopilla totals an installed capacity of 1,027 Mweq. ❙ Owner and operator of a 907km HV transmission line ❙ Tractebel share: 33% ❙ Customers: power output sold under long-term contracts to copper, gold and nitrate industries❙ Fourth largest power producer operating 2 thermal power stations in southern Peru representing 369 MWeq. ❙ Owner and operator of a 222km HV transmission line ❙ Tractebel share: 100% ❙ Customers: most of the power output sold to the Southern Peru Copper Corporation (SPCC)❙ May 2002: awarded contract for gas distribution in the greater Lima area.

This 30-year concession is a spin-off of the Camisea project. ❙ December 2002: groundbreaking ❙ August 2004: Scheduled start of operations ❙ Tractebel share: 100%❙ Provides consulting and engineering services for the promotion of natural gas in Peru. ❙ Marketing of the industrial use of Camisea natural gas.❙ Tractebel share: 100%❙ Will provide transportation services for natural gas and natural gas liquids between Camisea and Pisco/Lima. ❙ March 2002: Groundbreaking ❙ August 2004: Scheduled start of operations ❙ Tractebel share: 8%

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NORTH AMERICACountry Activity Company name

USA Asset-based trading and origination Tractebel Energy Marketing, Inc.

USA Retail energy services Tractebel Energy Services, Inc.

USA LNG storage, transport and commercialisation Tractebel LNG North America LLC

USA Power generation and cogeneration Tractebel Power, Inc.

USA All development Tractebel Project Development, Inc.

Mexico All development Tractebel Mexico

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❙ Tractebel share: 100%

❙ Retail energy arm of Tractebel North America, responsible for driving the risk-managed products and services, with capabilities of providing integrated energy solutions to end use clients.

❙ Tractebel share: 100%❙ Operates LNG terminal in Everett, Massachusetts (Boston) ❙ Delivers LNG to receiving teminals in Everett, Puerto Rico, and elsewhere in North America ❙ Terminal can meet approximately 15-20% of the New England gas market ❙ Tractebel share: 100% ❙ Customer portfolio: 41 local distribution companies and local marketers, 4 municipalities and 6 power stations. ❙ Sales 2002: 3.64 billion m3

❙ Owns and/or operates 57 power, cogeneration, steam and chilled-water facilities that produce more than 3,127 MW of electricity generation, 12 million pounds per hour of steam, and 147,000 tons per hour of chilled water.

❙ Tractebel share: 100%❙ Customers: Electrical transmission systems, regional and local utilities, municipalities, and large commercial

and industrial end-users❙ Acquires projects and companies in energy value chain and develops all projects. ❙ Tractebel share: 100% ❙ Coordination of all activities and business in Mexico ❙ Tractebel share: 100%

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MIDDLE EAST - ASIACountry Activity Company name

Abu Dhabi Power generation and desalination Gulf Total Tractebel Power Company

Laos Power generation and transmission Houay Ho

Oman Power generation and transmission United Power Company

Singapore, Energy & Facilities Management Elyo SouthEast AsiaThailand, Malaysia

Singapore Gas transport and distribution SembGas

Singapore Power generation SemCorp Cogen

Singapore Centralised utilities supply SUT Sakra

South Korea Gas distribution Hanjin City Gas

Thailand Power generation and distribution Glow

Thailand Gas distribution PTT-NGD

Turkey Power generation Baymina

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❙ Owns and operates the Al Taweelah A1 power and desalination plant (1,808 MWeq, 84 million imperial gallons of desalinated water per day)

❙ Tractebel share: 20% ❙ Customer: ADWEC (Abu Dhabi Water & Electricity Company)❙ Sales 2002: 2,745 GWh; 13,166MIG❙ Dam-type hydro power plant located in Champasak, 158 MW capacity❙ Tractebel share: 70%❙ Customers: EGAT (Electricity Generating Authority of Thailand) 98%, Electricité du Laos 2% ❙ Sales 2002: 578 GWh❙ Owns and operates the Al Manah power plant (292 MWeq) and 180 km of overhead lines ❙ Tractebel share: 33% ❙ Customer: MHEW (Ministry of Housing, Electricity and Water - Sultanate of Oman)❙ Sales 2002: 1442.3 GWh❙ Energy management, maintenance and facilities management ❙ Tractebel share: 100%❙ Top-rank industrial and commercial customers❙ Imports, transports and distributes natural gas in Singapore ❙ Tractebel share: 20% ❙ 32 industrial customers 3 of which are power stations ❙ Sales 2002: 2.4 billion m3

❙ Combined cycle cogeneration plant located on Jurong Island with an installed capacity of 982 MWeq❙ Tractebel share: 30% ❙ Customers: New Electricity Market (pool) and SembPower ❙ Sales in 2002: 3,430 GWh + 5.1 M tons of steam❙ Multi-utility and services provider to industrial customers on Jurong Island: steam and water supply, waste services

management & incineration, product transport, terminal and fire-fighting services ❙ Tractebel share: 20% ❙ Sales 2002: 3 M tons of steam❙ Distributes natural gas in part of Seoul (91 km2) and in Kyunggi province (1,633 km2) ❙ Tractebel share: 75% ❙ 587,169 customers of which 98% are residential customers❙ Sales 2002: 753.9 million m3

❙ Largest private power producer in Thailand engaged in power and steam generation and industrial water supply, representingan installed capacity of 1,967 MWeq.

❙ Tractebel share: 99% ❙ Customers: EGAT and industrial clients in Map Ta Phut and nearby industrial estates❙ Promotes and develops distribution of natural gas in industrial estates in the greater Bangkok area❙ Tractebel share: 49% ❙ 66 industrial customers ❙ Sales 2002: 240 million m3

❙ Owns a 770 MWeq CCGT power plant under construction ❙ Tractebel share: 95% ❙ Customer: TEIAS ❙ Scheduled to start operations at the end of 2003.

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LNGCountry Activity Company name

Luxembourg Long-term LNG development and Tractebel LNG Trading SA.short-term operations

United Kingdom LNG Coordination Center Tractebel LNG Ltdfor Tractebel Group

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❙ Equity management, shipping, trading and long term supply❙ Controls 2 LNG carriers Hoegh Galleon and Excalibur ❙ Manages Tractebel’s 10% equity participation in Atlantic LNG Holdings LLC❙ Customers: 4❙ Sales: 4 TBtu + some sub-charter revenues❙ Tractebel share: 100%❙ Started business in 2002 ❙ Coordinates and develops Tractebel’s growing interests in worldwide LNG markets❙ Focuses on both Atlantic and Pacific markets ❙ Optimises and coordinates cross-company supplies and transport initiatives❙ Promotes new LNG ventures ❙ Explores new supply options ❙ Trades LNG spot cargoes ❙ Inter-group sales (service company only)❙ Tractebel share: 100%

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Tabl

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003

REGION COMPANY/PROJECT NAME COUNTRY INSTALLED CAPACITY TRACTEBEL (GROSS MWeq) (1) FINANCIAL

SHAREIN OPERATIONMIDDLE EAST - ASIA

Glow IPP Co., Ltd.- Bowin Power Station Thailand 730 94.5SPP 1 Co., Ltd.- Mab Ta Phut 182 99.01SPP 2 Co., Ltd.- Coco IIIa 265 99.01SPP 3 Co., Ltd.- Coco I 64 99.01SPP 3 Co., Ltd.- Coco IIIb 345 99.01SPP Plc.- Coco II 381 99.01

Houay Ho Power Company Ltd Laos 153 69.8Sembcorp Cogen Pte Ltd- Pulau Sakra Singapore 982 30Gulf Total Tractebel Power Company-Al Taweelah A1 (phase 1-2) United Arab Emirates 1,808 20United Power Company-Al Manah (phase 1-2) Oman 292 32.81

NORTH AMERICAAppomattox Cogen. Inc USA 129 50Choctaw Generation, Inc.- Red Hills Generation Facility 480 100CRSS Northumberland 20 100Ennis Power LP, Inc 346 100Grays Ferry Cogeneration Project 272 50Hopewell Co LP 450 100Lincoln Power Station 18 100McBain Power Station 18 100Northeast Energy LP- Bellingham Cogeneration Facility 321 50Northeastern Power Company 64 100North Jersey Energy Associates LP-Sayreville Cogeneration Facility 311 50Pinetree Fitchburg 19 100Pinetree Power (Bethlehem) 18 100Pinetree Tamworth 25 100Ripon Cogeneration 57 100Ryegate ass. 22 66.9San Gabriel Cogeneration Facility 52 100Winooski One Partnership 7 50Trigen facilities 2,659 100West Windsor Power Canada 142 96Monterrey Cogeneration Mexico 312 100

SOUTH AMERICAColbún Carena Chile 10 29.21

Colbún 474 29.21Machicura 96 29.21Nehuenco I-III 485 29.21Rucúe 178 29.21San Ignacio 37 29.21

Edelnor Antofagasta 30 27.38Arica 14 27.38Chapiquiña 10 27.38Iquique I-II 44 27.38Mantos Blancos 30 27.38Mejillones I-II-III 591 27.38

Electroandina-Tocopilla 1,027 33.25Enersur-Ilo 1-2 Peru 369 100Tractebel Energia Cana Brava Brazil 465 78.3

Passo Fundo 232 78.3Salto Osório 1,090 78.3Salto Santiago 1,440 78.3Alegrete 66 78.3Charqueadas 72 78.3Jorge Lacerda 867 78.3William Arjona 177 78.3Ita 1,470 38.18Machadinho 1,193 13.27

SUB-TOTAL 21,405

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REGION COMPANY/PROJECT NAME COUNTRY INSTALLED CAPACITY TRACTEBEL (GROSS MWeq) (1) FINANCIAL

SHAREUNDER CONSTRUCTIONMIDDLE EAST - ASIA

Zhenjiang China 55 27Baymina Enerji AS-Ankara BOO Turkey 771 95

NORTH AMERICAChehalis Power Generating USA 525 100Choctaw Gas Generation, LLC-Red Hills 714 100Hot Spring Power Company,L.P. 714 100TEMI - AEP 720 100Trigen-Boston Energy Corp.- Revere (Necco) 13 100Trigen Cinergy Solutions of University of Maryland 88 51Wise County Power Company, L.P.- 714 100

SOUTH AMERICAColbún-Nehuenco II Chile 390 29.21Lages Cogeneration Brazil 36 78

SUB-TOTAL 4,740

UNDER DEFINITION AND DEVELOPMENTSOUTH AMERICA

Estreito Hydro Brazil 1,087 30Sao Salvador Hydro plant 245 78.32

SUB-TOTAL 1,332

TOTAL 27,840

(1) The power generating capacity figures in this report are expressed in MW equivalent gross which are made up of electrical energy, thermal energy anddemineralised water all converted into MW.

Human resources 50

Cor

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Tractebel EGI needs to continually adapt and develop in line with theinternational energy markets evolutions and the slackening worldeconomy. This means ensuring an efficient and flexible organisationas well as an adaptable and flexible workforce.

Here Tractebel EGI’s matrix organisation is one of the company’sstrengths, offering a framework for efficiency and motivation. Thematrix structure has two equal axes: the regional organisationsresponsible for the operational management of the assets; and thefunctional departments which focus on global strategy and function-al expertise to improve the organisation’s efficiency and to sustain itsfurther development.

As a result of the SUEZ reorganisation announced in January 2003,Tractebel EGI will expand its matrix structure to include all corporatefunctions needed to work efficiently with SUEZ.

In 2002 Tractebel EGI had to refocus its organisation in twoways.

As a result of the progressive opening up of energy marketsand the need for its businesses to replace long-term con-tracts with new sales to direct customers, Tractebel EGI isfocusing increasingly on sales and marketing rather thanproduction. In parallel, Tractebel EGI is facing a second refo-cusing process as a result of the slowdown of the worldeconomy and the crisis of confidence of the capital markets.While waiting for the economic recovery and new opportu-nities, Tractebel EGI is concentrating less on the develop-ment of new projects and more on maximising the value ofexisting assets.

Both changes require flexibility and creativity from TractebelEGI employees. The development teams have to partly redi-rect their activities to other projects while staying aware ofthe continuing changes in our markets. When the economyrecovers, they must be able to react quickly in order to takeadvantage of new opportunities for growth. That is why it isessential that Tractebel EGI maintains its skills and expertisein development, while it acquires new capabilities in salesand marketing.

Tractebel EGI’s international operations benefit from a goodworking relationship between corporate and local humanresources management. In 2002 the cross-regional TractebelEGI human resources framework was further extended. Itallows us to encourage exchange of best practices and syn-ergy and to improve knowledge of compensation and bene-fits benchmarks in different regions.

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countries, but placements abroad are kept limited in numberand in time.

Subsidiaries are free to recruit independently and locally,but can draw on the assistance of Corporate humanresources to attract senior managerial skills.

In 2002 the global Tractebel EGI recruiting strategy focusedparticularly on hiring people with sales and marketing skills.

Tractebel EGI’s remuneration policy, especially pay rates,depends mainly on local requirements and is set by the localcompanies. Salaries in Tractebel EGI are set at competitivelevels in order to attract and to maintain the best skills andexpertise.

At the end of 2002, Tractebel EGI had 4,502 employees acrossits fully consolidated companies, an increase of 8.5% com-pared with 2001. Four out of ten Tractebel EGI employeeswork in North America, including Mexico. The otherregions, South America and Asia & Middle East employ 32%and 25% of Tractebel EGI staff respectively. In the 18 coun-tries where Tractebel EGI operates, more than 98% are localpeople. 83% of Tractebel EGI’s employees are men and nearly70% have a technical function.

Tractebel EGI globally has an open recruitment policy inwhich internal mobility is actively encouraged. Job vacan-cies are first published internally to give employees theopportunity to develop their careers. Being international,the company also offers the opportunity to move between

Regional ManagerNorth America

Regional ManagerSouth America

Regional ManagerMiddle East - Asia

Regional ManagerLNG region

Strategy &Portfolio

Management

Operations

BusinessControl

BusinessDevelopment

Human Resources& Administration

CEO EGI

EGI matrix Organisationat June 30, 2003

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Tractebel EGI also rewards employees with variable pay scalesdepending on individual performance, which is assessedduring an annual appraisal, and on the company’s perform-ance, as measured by indicators contained in performance-based bonus plans.

The organisation of training and development for Tractebel EGIemployees is highly decentralised. The focus is on operations,as the majority of the training courses deal with technicalissues.

Tractebel EGI employees also take part in the various trainingprogrammes organised by the SUEZ University, which aimsat developing knowledge and managerial skills applied onthe different businesses of the group.

In 2002 Tractebel EGI has also invested in the “Leaders forthe Future” (LFF) programme, which aims at identifyingand preparing those who have the potential to take key posi-tions within the company or the SUEZ group in the future.The LFF programme aims to build the future of the companyby developing in-house talent.

Breakdown of EGI staff per region

per gender

woman

manEurope

Middle East -Asia)

SouthAmerica

NorthAmerica

25%

3%

32%

40%

17%

83%

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per age

0 200 400 600 800 1000<25

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

>65

managerssupervisors,

technicians andspecialists

administrativeemployees

workers andtechnicians

43%

15%

27%

15%

per classification

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Con

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Company Name CEO Address

HeadquartersTractebel EGI Dirk Beeuwsaert Place du Trône 1

South AmericaTractebel EGI South America Jan Flachet R. Esteves Júnior 50 - 9° andarTractebel Argentina Manuel Colcombet Talcahuano 833, piso 3 - of.CECS - Energy Consulting Services Gustavo Schettini Talcahuano 833, piso 5 - of.DGasoducto Nor Andino Argentina Gabriel Marcuz Talcahuano 833, piso 5 - of. DLitoral Gas Conrado Bianchi Mitre 621Tractebel Brazil Maurício Bähr Av. Almirante Barroso, 52/sala 1401

14° andarTractebel Energia Manoel Zaroni Rua Antonio Dib Mussi, 366 CentroTractebel Andino Manlio Alessi Av. Apoquindo 3721, of. 92

Las CondesColbún Francisco Courbis Av. 11 de Septiembre 2355, piso 5

Las CondesElectroandina Willem Van Twembeke Isidora Goyenechea 3365, piso 7

Las CondesEDELNOR Juan Clavería Av. Apoquindo 3721, of. 81

Las CondesGasoducto Nor Andino Chile Gabriel Marcuz Av. Apoquindo 3721 Of. 92

Las CondesTractebel Peru Klaus Huys Av. Javier Prado Oeste 960

San IsidroENERSUR Klaus Huys Av. Javier Prado Oeste 960

San IsidroGas Natural de Lima y Callao S.R.L. Jos Remacle Av. Javier Prado Oeste 960

San Isidro

North AmericaTractebel North America, Inc. William P. Utt 1990 Post Oak Boulevard, Suite 1900Tractebel Energy Services, Inc. Zin Smati 1990 Post Oak Boulevard, Suite 1900Tractebel LNG North America Richard Grant One Liberty SquareTractebel Power, Inc. Werner Schattner 1990 Post Oak Boulevard, Suite 1900Tractebel Project Development, Inc. Paul Cavicchi 1990 Post Oak Boulevard, Suite 1900Tractebel Mexico Héctor Olea Av. de las Palmas, 830-402

Lomas de Chapultepec

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Zip Code, City State Country Phone Website

1000 Brussels Belgium 32 2 510 7111 www.tractebel.com

88015-130 Florianópolis Santa Catarina Brazil 55 48 212 22 00 C1013AAQ Buenos Aires Argentina 54 11 5789 95 00 C1013AAQ Buenos Aires Argentina 54 11 4816 88 10 www.ecs.com.arC1013AAQ Buenos Aires Argentina 54 11 57 89 97 892000 Rosario Santa Fe Argentina 54 341 420 01 93 www.litoral-gas.com20031-000 Rio de Janeiro - RJ Brazil 55 21 3974 54 00 88015-110 Florianopolis Santa Catarina Brazil 55 48 221 70 00 www.tractebelenergia.com.br

Santiago Chile 56 2 290 04 00

Santiago Chile 56 2 460 40 00 www.colbun.cl

Santiago Chile 56 2 460 46 00 www.electroandina.cl

Santiago Chile 56 2 353 32 00 www.edelnor.cl

Santiago Chile 56 2 290 0400

Lima 27 Peru 51 1 222 79 79

Lima 27 Peru 51 1 222 79 79

Lima 27 Peru 51 1 222 79 79 www.gnlc-peru.com

Houston, TX 77056 United States of America www.tractebelusa.comHouston, TX 77056 United States of America www.tractebelenergy.comBoston, MA 02109 United States of America 1 617 526 8300 Houston, TX 77056 United States of AmericaHouston, TX 77056 United States of America

Mexico, DF 11000 Mexico 52 55 9140 8800

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Company Name CEO Address

Middle East - AsiaTractebel Asia Marc Josz 26/F M. Thai Tower - All Seasons Place,

87 Wireless Rd, Lumpini PrathumwanGlow Peter Termote 195, Empire Tower, 38th Floor

Park WingSouthSatorn Road, Yannawa

PTT NGD Deputy General Manager: 23rd Floor, Rasa Tower Patrick Eeckelers 555 Phaholyothin Road, Lardyao, Chatuchak

Houay Ho Power In-Jin Paik P.O. Box 5464Nong Bon Road, Bane Fai

Tractebel Korea Jean-Luc Kebers Yungjeon Bldg., 9 F 154-10 Samsung-Dong,Kangman-Ku

Hanjin City Gas Kim Dae Yung 1711 Sanggye 6 Dong Nowon-GuTractebel Singapore 375 Tanjong Road #04-00

Blk 1 Katong Telecommunication ComplexElyo South East Asia Frederic Vassort 51 Ubi Avenue 1

#01-22 Paya Ubi Industrial ParkTractebel Abu Dhabi Pierre De Pauw Blue Tower 603 - Kalifah Bin Zayed Street

P.O. Box 721 55Gulf Total Tractebel Power Company David McIlhagger P.O. Box 52862, 1st FL Al Zubara Tower,

Al Salam StreetUnited Power Company Jean-Pierre Zinzen P.O. Box 147Baymina Enerji Ezio Di Stanislao Ankara Dogalgaz Santrali

Ankara Eskisehir Yolu 40.KmLNGTractebel LNG Clay Harris 101 Wigmore Street

Bangkok 10330 Thailand 66 2 253 6466

Bangkok 10120 Thailand 66 2 670 1500 www.glow.co.th

Bangkok 10190 Thailand 66 2 937 0621-6 www.pttngd.co.thXaysettha District, Vientiane Lao P.D.R. 856 31 213 026

Seoul 135-091 South Korea 82 2 556 9555 Seoul South Korea 82 2 950 5000 www.hjcgas.com

Singapore 437132 Singapore 65 643 827 30

Singapore 408933 Singapore 65 6 58 60 755

Abu Dhabi United Arab Emirates 971 2 626 0086-85

Abu Dhabi United Arab Emirates 971 2 645 5100Jawaharat Al Shati 134 Oman 968 698 498 Maliköy Mevkii 06900 Polatli/Ankara Turkey 90 312 630 91 00

London W1U 1QU United Kingdom 44 20 7915 3900

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Zip Code, City State Country Phone Website

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❚ Bcm or Billion Cubic Meter : The quantity of natural gas representing a volume of 1 billion cubic meter.❚ Bcf or Billion Cubic Feet : The quantity of natural gas representing a volume of 1 billion cubic feet.

1 bcm is equal to 35,31 bcf, if in same circumstances.❚ Btu or British Thermal Unit : A standard unit for measuring the quantity of heat energy equal to the

quantity of heat required to raise the temperature of 1 pound of water by 1 degree Fahrenheit.❚ CNG : Compressed natural gas.❚ Cogeneration : A generating facility that produces electricity and simultaneously another form of useful

thermal energy (such as heat or steam), used for industrial, commercial, heating, or cooling purposes.❚ Combined Cycle : An electric generating technology in which electricity is produced from otherwise

lost waste heat exiting from one or more gas (combustion) turbines. The exiting heat is routed to aconventional boiler or to a heat recovery steam generator for utilization by a steam turbine in theproduction of electricity. This process increases the efficiency of the electric generating unit.

❚ Distribution: The delivery of electricity or natural gas to retail customers (including homes, industry, etc.).❚ EBITDA or Earnings before interest, taxes, depreciation and amortization : Approximate measure of

a company's operating cash flow based on data from the company's income statement. Calculatedby looking at earnings before the deduction of interest expenses, taxes, depreciation, and amortization.

❚ Gigajoule (GJ) : The Energy quantity of one billion Joule.❚ Gross Generation : The total amount of electric energy produced by a generating facility, as measured

at the generator terminals, thus including the energy consumed for its proper operation.❚ Installed Capacity : The amount of electric power delivered or required for which a generator, turbine,

transformer, transmission circuit, station, or system is rated by the manufacturer.❚ Joule (J): The energy quantity equal to one Watt-second, or the 1/3600000th part of one kilowatt-hour (kWh). ❚ LNG : Liquefied natural gas.❚ Megawatt (MW) : The power quantity of one million watts.❚ Megawatthour (MWh) : The energy quantity of one million watthours.❚ Megawatt-equivalent (MWeq): The capacity made up of electrical energy, thermal energy and deminer-

alised water, all converted into MW.❚ MMBtu : The energy quantity of one million Btu (the "M" standing here for the, twice to be applied,

Roman 1000x multiplicator).❚ NCR or Net current result : The net profit after taxes coming from normal activity of the company

before exceptional elements. ❚ Merchant Plant : An energy power project, which sells power on a short and mid-term basis to

customers and the on-the-spot market.❚ Merchant Sales : Sales to a power pool or a trader.❚ MIGD: Capacity of one million imperial gallon per day; one imperial gallon represents a volume of 4.55 liter.❚ Power Pool : Consists of two or more utilities that combine their resources to better meet their indi-

vidual needs. These resources can include generating facilities, transmission system access, emergencyresponse capability and even accounting and billing databases.

❚ PPA (Power Purchase Agreement) sales : Sale of the entire plant production to a public utility or anindustrial customer, on a long term basis.

❚ Public (Electric) Utility : A governmental or semi-governmental authority or other legal entity thatowns and/or operates facilities.

❚ Watt (W) : The electrical unit of power. The rate of energy transfer equivalent to 1 ampere flowingunder a pressure of 1 volt at unity power factor.

❚ Watthour (Wh) : An electrical energy unit of measure equal to 1 watt of power supplied to, or takenfrom, an electric circuit steadily for 1 hour.

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Editor

Jacques NieuwlandExecutive Vice President Human Resources and AdministrationTractebel Electricity & Gas InternationalPlace du Trône 11000 Brussels (Belgium)

External Communications ManagerKatja Dammantel: +32 2 510 70 69e-mail: katja.damman@tractebel.com

Tractebel Electricity & Gas InternationalPlace du Trône 1

1000 Brussels (Belgium)

Tel. : + 32 2 510 71 11

Fax : + 32 2 510 75 91

www.tractebel.com