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*CMS Energy, International Power and theAbu Dhabi Water & Electricity Authority's Al Shuweihat S1 project-level loan was in many ways the standout transaction in the Middle Eastern power market last year. In terms of size alone it deserves recognition, note many bankers. The $1.3 billion deal is the largest ever project loan in the Middle Eastern power sector, eclipsing the $1 billion Taweelah A1 non-recourse loan that closed the previous year. The sheer size meant that lead arrangersCitibank ,Barclays Capital, Royal Bank of Scotland, Bank of Tokyo-Mitsubishi, Kreditanstalt für Wiederaufbau, National Bank of Abu Dhabi and Abu Dhabi Investment had to launch a Herculean syndication effort to fully place the deal.

Enel could be forced to unload an extra 2 GW of generation capacity, on top of already announced divestiture plans, as part of a government directive to further deregulate Italy's wholesale power market. An investment banker advising Enel says Antonio Marzano, minister for trade and industry, is currently weighing up the idea and will make an announcement shortly. Under the current directive Enel must sell three portfolios of generation assets with a combined capacity of 15 GW.

Developers and project financiers may be falling into the trap of ignoring the impact low contracted power levels can have on spot price volatility.Paul Meyers, v.p. at Pace Global Energy Services, who gave a presentation on the issue at Société Générale's recent power shindig in Boca Raton, Fla., says the industry was similarly blind-sided four years back, when power companies mistakenly avoided the forward market because spot prices were so low and then were caught in exaggerated price spikes as demand rose. "The market is sort of priming itself for another 1998, because we have a whole bunch of people in the spot market," he says.

International Power is holding acquisition discussions with Florida power giant TECO Energy, a deal that would add 11 GW of generation capacity to the London-based IPP's 4.4 GW U.S. portfolio and give the company its first exposure to the regulated utility industry. A merger would create a $7 billion outfit given their current market valuations.

Steven Fetter, managing director and head of Fitch's global power group, has left the agency to launch an energy-consulting firm. Officials in the group say he has not yet been replaced and that Alan Spen, executive managing director in New York, is the interim head. Spen did not return calls.

Lead arrangers Barclays Capital and Union Bank Of California have received commitments from 13 other banks for a $421 million letter of credit facility backing sale and leaseback structures for three FirstEnergy subsidiaries. The deal should be finalized today, says one syndicate official, who adds the original March 5 target was missed because some banks in the deal had difficulty meeting that timeline.

Bonds Issue Date Maturity Issuer Amount ($mil) Offer Price Type of Security Coupon (%) Moody's S&P Bookrunner(s) 03/14/02 03/15/12 Williams Cos 650 99.102 Fxd/Straight Bd 8.125 Baa2 BBB Lehman/JP Morgan 03/14/02 03/15/32 Williams Cos 850 98.626 Fxd/Straight Bd 8.75 Baa2 BBB Lehman/JP Morgan 03/15/02 03/15/07 Korea Hydro and Nuclear Power 98.3 95.64 Fxd/Straight Bd 6 - - Daishin 03/15/02 03/15/05 Korea Hydro and Nuclear Power 52.9 98.32 Fxd/Straight Bd 6 - - CJ Investment 03/18/02 03/15/05 Consumers Energy(CMS Energy) 300 99.977 Notes 6 Baa3 BBB+ Bank One/Barclays Capital 03/20/02 04/01/32 Entergy Louisiana (Entergy) 150 100 First-Mtg Bonds 7.6 Baa2 BBB+ Morgan Stanley/Salomon M&A Date Announced Date Effective Target Target Advisors Target Country Acquiror Acquiror Advisors Acquiror Country Value ($mil) 03/14/02 - Slovensky Plynarensky Prumysl CSFB Slovak Rep Investor Group Dresdner Kleinwort Wasserstein France 2700 03/15/02 - Elettra Gll (Lucchini) - Italy RWE Power - Germany 61.754 03/15/02 - Karaganda Power - Kazakhstan ORMAT - Israel - 03/17/02 - Eurogen CSFB/Lehman Bros/Merrill Lynch Italy Edison SpA(Montedison SpA) Morgan Stanley/Rothschild Italia Italy 3262.29 03/18/02 03/18/02 Slupska Energetyka Cieplna . Poland Sydkraft . Sweden 9.444 Source: Thomson Financial Securities Data Company. For more information, call Rich Peterson at (973) 645-9701

The Spanish power market could suffer from excess generation capacity and falling wholesale power prices within the next few years if the incumbent utilities realize their plant construction plans. While Spain currently has some of the tightest generation reserve margins in Europe, this situation could change swiftly, warns Andrew Carrie, director of utility credit research at Nomura International in London.

Despite the overall slump in venture capital investments since the technology bubble burst almost two years back, energy technology start-ups still have broad access to private equity financing. A new survey by San Francisco-based private equity investment boutique Nth Power says venture capital funding for U.S. energy tech start-ups reached $774.5 million last year, down 36% from 2000, but still an 80% increase from the $442 million level witnessed in 1999. Overall, venture capital investment levels were down 61% last year from 2000 and 31% from 1999.

Power Finance & Risk will present its inaugural power project finance awards on Monday April 15. Below are nominations for the best Latin American, European and Middle Eastern and North African deal's of last year. While none of these markets proved as active as the U.S., each had a scattering of transactions and an even smaller number that stood out in terms of structure, pricing or size. If you want to have your say on which of the nominations should win, please e-mail your thoughts to wainger@euromoneyplc.com . All responses will be treated in confidentiality.