Alter Energy Group Plans to Build, Own Hydro Electric Stations in Ukraine

Energy Resource, Nov 20, 2008

ENERGY RESOURCE-20 November 2008-Alter Energy Group Plans to Build, Own Hydro Electric Stations in Ukraine(C)2008 JeraOne - http://www.jeraone.com

Alter Energy Group AG has signed a Binding Letter of Intent to construct and own five new hydro electric power stations in Ivano-Frankovsk, Carpathian region, Ukraine.

The Ivano-Frnakovsk projects are a 40 MW, 20 MW and 15 MW cascade (consisting of three 5 MW mini hydro) power plants. Under terms of the LOI AEG will own 100% of the stations as collateral for the required investment, currently estimated at EURO 91 million. Upon repayment of the investment AEG will maintain 51% ownership in the stations for 15 years.

AEG, together with its strategic partners, will be responsible for the overall project implementation and operation. The electricity generated will be supplied directly to the national distribution network.

"The signing of these stations represents a significant step forward in the execution of our business plan," said Edward J. Klaeger IV, CEO of AEG. "The hydro electric market potential in Ukraine is substantial and currently is extremely underutilized."

Klaeger said the company is working with the municipality, Institute of Water Resources, and strategic partners to gather and analyze the information and documents required to complete due diligence on the establishment of the hydroelectric power stations.

"We will also need to go through the various processes required by the local and federal State authorities required to implement this opportunity," he said, adding, "During the due diligence and government filing process we also focus on sourcing of capital investment, including securing the project financing required for AEG to move from the planning stage to construction. We have made tremendous progress in this area and, given the new strategic relationships we have recently engaged in, are highly confident we will receive the investments we require."

For more information, visit www.alterenergygroup.com.

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