Mirant Philippines Corporation

Page - April 21, 2006

Mirant Philippines Corporation,

      Address: 2232 Roxas Boulevard, Pasay City, Philippines,

      Tel: +63-2 552-8000

      Ownership: Mirant Philippines is 100% owned by Mirant Corporation

      Website: www.mirant.com

LAGPAK Award

CLIMATE KILLER AWARD

        The Climate Killer Award is given to the single biggest emitter of carbon dioxide in the country.

Type of Incident and Location of Damage

On December 18, 2005, the NAPOCOR Power Barge 106 ran aground 200 meters off Sitio Bobog, Semirara Island, Antique resulting in the largest oil spill in Philippine history. The size of the spill was estimated to over 300,000 liters of bunker fuel.

Company Activity

Power Generation

        Mirant owned power plants:

        Carmen, Cebu 19 MW (bunker)

        Ilijan, Batangas 240 MW (gas)

        Iloilo, Panay 35 MW (diesel)

        Iloilo, Panay 20 MW (diesel)

        Nabas, Aklan 12.5 MW (diesel)

        New Washington, Aklan 5 MW (diesel)

        Pagbilao, Quezon 704 MW (coal)

        Pinamalayan, Mindoro 3 MW (Heavy fuel oil)

        Sangi, Cebu 38 MW (Coal)

        Sual, Pangasinan 1,155 MW (coal)

Type of Damage

The power plants of Mirant Philippines have a total generation capacity of 2,231.5 MW. Coal, the most carbon intensive among fossil fuel, accounts for more than eighty percent of the company's installed capacity. Among fossil fuels, coal is the dirtiest, emitting 29 percent more carbon per unit of energy than oil and 80 percent more than gas.

        Climate change, the most serious environmental threat facing the planet today, is attributed to human activities, mainly the burning of fossil fuels such as coal, which releases massive amounts of greenhouse gases to the atmosphere.

        Running at full capacity, Mirant's power plants can emit up to 17.5 million tons of CO2 annually. If all these power plants were allowed to operate for the next 25 years, Mirant will be contributing up to 438.5 million tons of CO2 into the atmosphere.1 In a 25 year lifetime of CO2 emissions from Mirant's 1200-MW Sual coal plant alone are equivalent to more than 570 billion jeepneys simultaneously starting and traveling for a kilometer.

        So long as the emission of greenhouse gases, particularly carbon dioxide, remain unabated, impacts from climate change will continue to intensify, hitting developing countries such as the Philippines with particular ferocity through the increase in frequency of extreme weather events such as drought and storms, the heightened risk of recurring massive coral bleaching as well as rising sea levels.

Subsequent Behaviour of Company

Despite this, Mirant plans to expand its coal operations in the Philippines by a total of 650-MW over the next six years. This will produce a total of 6,149,520 metric tons of carbon dioxide annually or a total 153,738,000 metric tons of CO2 for the duration of a typical 25-year coal plant contract lifetime.

        Mirant's expansion plans will add to the country an equivalent of another 370 billion jeepneys' emissions.

Statement

Clean, renewable energy is more than abundant in the

      Philippines. Power from the sun is available almost anywhere in the country. Solar panels installed on a site just half the land area of Quezon City, for instance, could supply the energy needs of the entire country for a day. The potential wind power in the Philippines stands at 70,000-MW representing clean power several times over the country's present energy demand. Moreover, the total potential of modern biomass power today stands at 10,000-MW.

      The country does not have to be held hostage to Mirant's polluting intentions. It's time the Philippines makes the switch. The European Renewable Energy Council has shown that with the right support policies from government, renewable energy from wind, geothermal, small hydro, modern biomass and solar power can provide 50 percent of global energy supply by 2040.

      Traditional energy economists say that renewable energy is too expensive and that we can't afford to develop it.

    The truth is we cannot afford not to.

1) http://www.mirant.com/our_business/where_we_work/philippines.htm
2) Computed based on carbon dioxide emission factor of coal, oil and gas, http://www.seen.org/pages/db/method.shtml