ABB wins US$ 115 million contract to strengthen Mexico’s power supply

Work will fortify link between hydroelectric plant and national power grid

Zurich, Switzerland, June 6, 2002 - ABB, the global power and automation technology group, has won a US$ 115 million contract from Mexico’s national power company, Comision Federal de Electricidad (CFE), to build a 242-kilometer high-voltage power transmission system to strengthen the connection between the country’s largest hydroelectric plant at Manuel Moreno and the national power grid.

It is the fourth large transmission project ABB has been awarded in Mexico since the end of 2000. “ABB’s strong local presence and broad range of capabilities in power transmission systems enable us to provide CFE with the right solution delivered both rapidly and cost effectively,” said Richard Siudek, executive vice president and head of ABB’s Utilities division.

Working with Mexico-based consortium partner Techint, ABB will construct the first 242 kilometers of overhead transmission line between Manuel Moreno and the Juile substation, including advanced fiber optic links and integrated control systems, and will build a new substation at Cerro Del Oro. The new transmission system is scheduled to start operations at the end of 2003.

The contract is part of an overall US$ 269 million plan by CFE to develop Mexico’s electrical infrastructure to meet the country’s steadily increasing energy needs. The plan involves building around 600 kilometers of 400-kilovolt overhead transmission line to improve the link between the 1,500-megawatt hydroelectric plant at Manuel Moreno, in the southeastern state of Chiapas, and Tecali, close to the city of Puebla, in the more heavily populated and industrialized central region.

ABB (www.abb.com) is a global leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. ABB has 152,000 employees in more than 100 countries.

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