International Energy

Coal

Covanta Energy not only owns and operates coal facilities, but we led the development of the Quezon Power Project-- the largest private power project in the Philippines to date. This 440-megawatt facility provides a new source of energy for the people and businesses in the Mauban Province on the Island of Luzon. Covanta Energy's other coal projects, all located in China, rely on that country's domestic coal supply, which provides dependable fuel at prices that reflect energy costs in China.

Quezon Facility, the Philippines - 440 MW
The facility is a net 440 megawatts baseload pulverized coal-fired electric generation facility and an approximately 30 kilometer, 230 kilovolt (kV) transmission line and high voltage substation. It has a single boiler and turbine generator and uses sub-bituminous coal for fuel. The facility is located on an approximately 100-hectare coastal site in the Mauban Province. The transmission line extends from the facility site to a substation in Tayabas. The project was designed to meet very high seismic resistance requirements and strict environmental standards equal to those of the World Bank and the United States ExIm Bank.

Covanta Energy subsidiaries own 26 percent of this project and have a long-term contract to operate the facility.

Yanjian: Taixing, Jiangsu Province, China - 24 MW
This facility uses pulverized coal and six boilers to generate electricity and steam. The plant commenced operation in 1995. As the facility is located in the Taixing Economic Development Zone, steam produced is supplied to customers within the region, mostly chemical plants. Covanta Energy has a 96 percent ownership in this project and assumed operations and maintenance in April 2001.

Liquid Fuel

Samalpatti: Tamil Nadu, India - 105 MW
Construction began in December 1999 on Covanta Energy's first power plant in India. This project achieved the distinction of obtaining the first all-local-currency, long-term, non-recourse financing for a power project in India. Commercial operation was achieved during the first quarter of 2001. The entire electrical output is sold to the State Electricity Board.

Madurai: Tamil Nadu, India - 105 MW
Construction began during the second quarter of 2000 on Covanta Energy's second power plant in India. Commercial operation began during the third quarter of 2001. The entire electrical output is sold to the State Electricity Board.

In some markets, such as India, heavy fuel oil (HFO)/diesel is best suited to projects because of the limited availability of other fuels that can efficiently produce power when small additional capacity is sought. In the India, Covanta Energy own and operate two projects using HFO.

Natural Gas

In areas where it is readily available, natural gas will likely be the fuel of choice because it is clean burning and a very efficient source of power.

Haripur Barge: Dhaka, Bangladesh - 118 MW
Covanta Energy has an ownership stake and is the operator of its first barge-mounted power station. Haripur came on-line in 1999 using HFO as its fuel source and was converted to natural gas in mid-2000. Power is sold to the Bangladesh Power Development Board under a 15-year power purchase agreement. The Board is also the supplier of natural gas.

Hydroelectric Projects

Subsidiaries of Covanta Holding Corporation own a 50% equity interest in two run-of-river hydroelectric facilities – Koma Kolshan and Weeks Falls -- which have a combined gross generating capacity of 17 MW (Koma is a 12 MW plant; Weeks Falls is 5 MW). Both facilities are located in the State of Washington and both sell energy and capacity to a local utility under long-term energy contracts.