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WORLD'S LARGEST SOLAR PROJECT

Over 400,000 residents of the Philippines will benefit from a deal recently signed between BP and the Spanish and Philippine governments to bring solar power to 150 isolated villages in the Philippines. Led by the Philippines Department of Agrarian Reform (DAR), the $48 million contract - the largest solar energy project ever - is financed by the Spanish government and will be implemented in two phases, the first scheduled to begin in September.

The first phase of the project will center on 35 Agrarian Reform Communities (ARCs) in the Mindanao region of the Philippines. BP will use solar in around 70 villages to power:


* 5,500 home lighting systems
* 25 irrigation systems
* 97 potable water and distribution systems
* 68 schools, 68 community centers, 35 health clinics and 100 communal lights
* 35 new AC power supply systems for income generation purposes
* Project management and installation of 428 packaged solar systems
* Social preparation, community development and training for 200 community organizations.

The second phase will provide an additional 44 ARCs with:
* 9,500 home lighting systems
* 44 irrigation systems
* 79 schools, 80 community centers, 2 health clinics and 193 communal lights
* 44 AC power supply systems for income generation purposes
* Project management and installation of 442 packaged solar systems
* Social preparation, community development and training for 220 community organizations.

"This project reminds us that in the world's most isolated areas, solar is often the most cost effective way to supply basic, essential needs such as lighting, water pumping, irrigation and refrigeration for vaccines and medications," said Harry Shimp, BP Solar President and CEO. " We have been honored to work with outstanding representatives from the Spanish and Philippine governments to ensure that each village receives the help it most needs to get on the road to real economic development."

Because of the prohibitive cost of extending power lines and the difficulty of transporting generator fuel to remote, developing areas, international funding organizations are increasingly turning to solar as a low-cost way to supply electricity for the first time to remote areas and build the foundation for social and economic advancement in developing countries.

Note: BP recently completed a $30 million rural electrification project in the Philippines and a similar $30 million project in Indonesia. BP is one of the worlds largest solar companies with a 20% global market share and annual turnover of around $200 million. The company continues to grow at an average of over 25% per year.

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