<Page>
Exhibit 99.2
[PRICEWATERHOUSECOOPERS LETTERHEAD]
To the Management Committee
and Shareholders of Jorf Lasfar
Energy Company S.C.A. (JLEC)
El Jadida
REPORT OF INDEPENDENT ACCOUNTANTS
We have audited the accompanying balance sheet of JLEC and the related
statements of income and retained earnings and of cash flows for the year ended
December 31, 2002 as set out on pages 2 to 18. These statements are the
responsibility of the Company's management. Our responsibility is to audit and
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free fo material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statements presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements audited by us present fairly, in all
material respects, the financial position of JLEC and the results of its
operations and its cash flows for the year ended December 31, 2002, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ Price Waterhouse
February 7, 2003
<Page>
Jorf Lasfar Energy Company S.C.A
JLEC
CENTRALE THERMIQUE DE JORF LASFAR
B P 99 SIDI BOUZID
EL JADIDA
MOROCCO
Tel : 212 23 34 53 71
Fax : 212 23 34 54 05
US GAAP
FINANCIAL STATEMENTS
AS OF
DECEMBER 31, 2002
AUDITED
================================================================================
R.C. no 86655 - Patente no 35511273 - Identification Fiscale (I.S TVA)
no 1021595
<Page>
JORF LASFAR ENERGY COMPANY
INDEX TO FINANCIAL STATEMENTS
<Table>
<Caption>
Page(s)
-------
Balance Sheet
December 31, 2001, and December 31, 2002........................ 3
Statement of Income
Period from January 1, 2002, to December 31, 2002............... 4
Statement of Cash Flows
Period from January 1, 2002, to December 31, 2002............... 5
Notes to US GAAP Financial Statements 6-18
</Table>
<Page>
JORF LASFAR ENERGY COMPANY
BALANCE SHEET
<Table>
<Caption>
Note December 31, 2002 December 31, 2001
---------- -------------------- ------------------
(000) U.S. Dollars (000) U.S. Dollars
ASSETS
Current Assets
Cash..................................................... 3.1 46,683 67,106
Inventories.............................................. 2.c.&.4 40,615 31,759
Account Receivable....................................... 5 76,175 86,515
Prepayments.............................................. 6 10,431 4,477
Other.................................................... 0 0
-------------------- ------------------
Total current assets.............................. 173,903 189,857
Long Term Assets, net
Restricted Cash.......................................... 3.2 53,778 17,140
Fixed Assets............................................. 6,554 6,284
Long Term Receivables from $ DFL model................... 2.b & 16.1 1,283,672 1,465,695
Long Term Receivables from Euro DFL model................ 2.b.&.16.1 1,000,970 968,244
Other Long Term Assets................................... 8 10,968 9,445
-------------------- ------------------
Total Long Term Assets............................ 2,355,942 2,466,808
-------------------- ------------------
Total assets...................................... 2,529,846 2,656,664
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable to third parties........................ 9 25,498 34,764
Accounts payable to related parties...................... 10 145,065 74,704
VAT Liability........................................... 7 2,871 3,078
Taxes payable............................................ 11 4,866 873
Current part of Long-term loans in US Dollars............ 14 25,749 24,873
Current part of Long-term loans in Euro.................. 14 36,855 31,167
Other current liabilities................................ 13 7,955 18,607
-------------------- ------------------
Total current liabilities......................... 248,859 188,066
Non-Current Liabilities
Long-term loans in US Dollars............................ 14 238,174 251,667
Long-term loans in Euro.................................. 14 340,912 319,457
$ Capacity Charges greater than $ DFL model.............. 12.1 2,441 (9,907)
Euro Capacity Charges greater than Euro DFL model........ 12.2 236 (4,225)
Unearned Income from $ DFL model......................... 2.b & 16.2 584,918 722,975
Unearned Income from Euro DFL model...................... 2.b & 16.2 595,164 607,450
Deferred Tax Liability................................... 2.e 13,005 6,097
Derivative Instrument Liability.......................... 20 21,410 10,665
Unfunded Pension Obligations............................. 18.1 5,693 0
-------------------- ------------------
Total non-current liabilities..................... 1,801,954 1,904,179
Shareholders' Equity
Common Stock............................................. 15.1 58 58
Convertible Shareholders' Securities.................... 15.2 201,425 201,425
Preferred Stock.......................................... 15.3 185,930 185,930
Retained Earnings........................................ 15.4 113,031 187,672
Other Comprehensive Income............................... 20 (21,410) (10,665)
-------------------- ------------------
Total shareholders' equity........................ 479,033 564,420
-------------------- ------------------
Total liabilities and shareholders' equity........ 2,529,846 2,656,664
</Table>
The accompanying Notes 1 to 22 are an integral part of these financial
statements.
Page 3
<Page>
JORF LASFAR ENERGY COMPANY
STATEMENT OF INCOME
<Table>
<Caption>
January 1, 2002 January 1, 2001
to to
Note December 31, 2002 December 31, 2001
---------- -------------------- ------------------
(000) U.S. Dollars (000) U.S. Dollars
REVENUE
Lease Revenue from $ DFL model................................. 2.b.&.16.2 88,464 100,679
Lease Revenue from Euro DFL model.............................. 2.b & 16.2 95,078 94,545
Energy Payments................................................ 130,446 116,709
O&M Revenue.................................................... 42,930 38,809
Supplemental Capacity Charges.................................. 4,017 3,887
Sale of Fly Ash................................................ 247 303
Adjustments.................................................... 22 3,090 2,364
-------------------- ------------------
TOTAL REVENUE 364,272 357,296
OPERATING EXPENSES
Coal Cost...................................................... 126,957 115,066
Fuel Oil Cost.................................................. 910 754
O&M Costs...................................................... 25,057 20,329
Operator's Incentive........................................... 3,721 2,099
Generator Costs................................................ 11,397 12,547
Amortization of Major Maintenance.............................. 8.1 1,128 470
Depreciation of Fixed Assets................................... 1,624 261
Provision For Future Pension Obligations....................... 18.1 5,427 0
-------------------- ------------------
TOTAL OPERATING EXPENSES 176,222 151,525
OPERATING INCOME 188,050 205,771
FINANCIAL ITEMS
Financial Income............................................... 1,764 4,735
Exchange Gain (+) or Loss (-).................................. 2.d (1,558) 8,197
Financial Expenses............................................. 17 44,834 50,617
-------------------- ------------------
TOTAL FINANCIAL ITEMS (44,628) (37,685)
INCOME BEFORE TAXES 143,422 168,086
Income Taxes
Current.................................................. 2.e 4,226 603
Deferred................................................. 2.e 6,908 6,097
-------------------- ------------------
NET INCOME 15.4 & 21 132,288 161,386
</Table>
The accompanying Notes 1 to 22 are an integral part of these financial
statements.
Page 4
<Page>
JORF LASFAR ENERGY COMPANY
STATEMENT OF CASH FLOWS
<Table>
<Caption>
January 1, 2002 January 1, 2001
to to
December 31, 2002 December 31, 2001
--------------------- ---------------------
Note (000) U.S. Dollars (000) U.S. Dollars
--------
CASH FLOWS FROM OPERATING ACTIVITIES
Payments received from ONE......................................... 471,044 411,872
Interest received.................................................. 1,748 4,543
Insurance Payment.................................................. (5,665) (7,104)
Payments of Operating Costs ....................................... (261,641) (228,771)
Cash Effect of Value Added Ta...................................... (321) 4,430
------------------- -------------------
Net cash provided by operating activities..................... 21 205,165 184,970
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loan................................................. 0 92,589
Proceeds from share capital payments............................... 0 0
Repayment of loans................................................. (57,964) (41,961)
Payment of financing costs ........................................ 0 0
Payment of Dividend ............................................... (132,114) (189,600)
------------------- -------------------
Net cash provided by financing activities..................... (190,078) (138,972)
CASH FLOWS USED FOR INVESTING ACTIVITIES
Acquisition of fixed assets........................................ 3,957 5,501
Payment of project cost............................................ 93 21,504
------------------- -------------------
Net cash used in investing activities......................... 4,050 27,005
Effect of exchange rate changes on cash....................... 5,178 (1,950)
CASH AT BEGINNING OF PERIOD............................................. 84,246 67,203
NET INCREASE IN CASH DURING PERIOD...................................... 16,215 17,043
------------------- -------------------
CASH AT END OF PERIOD................................................... 3.3 100,461 84,246
</Table>
The accompanying Notes 1 to 22 are an integral part of these financial
statements.
Page 5
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
1. GENERAL
a. BACKGROUND
The power station at Jorf Lasfar is located on the Atlantic coast of Morocco,
adjacent to the Port of Jorf Lasfar, in the Province of El Jadida. This location
is approximately 127 km south--west of Casablanca.
Units 1 and 2 of the power station were constructed by GEC Alstom for the
Moroccan Electricity Company, Office National de l'Electricite ("ONE"), and are
now in commercial operation. Each of these existing Units is 330 MW, fired by
coal.
In October of 1994, the ONE issued a public tender for international companies
to expand the power station at Jorf Lasfar. In February of 1995, the ONE
selected the "Consortium" of ABB Energy Ventures and CMS Generation as the
preferred bidder and exclusive partner for negotiation. In April of 1996, the
Consortium and the ONE reached agreement in principle, and initialed the
necessary Project Agreements.
b. ESTABLISHMENT
In order to officially conclude and implement these Project Agreements, the
Consortium established the Jorf Lasfar Energy Company (the "Company" or "JLEC")
on January 20, 1997. The Company was established as a limited partnership
("societe en commandite par actions") in accordance with the Laws of the Kingdom
of Morocco, with Commercial Registration Number 86655, Fiscal Identification
Number 1021595, and Patente Number 35511274.
In accordance with its charter documents, the Company's objective and purpose is
to construct, operate, manage and maintain the power station at Jorf Lasfar,
including the development, financing, engineering, design, construction,
commissioning, testing, operation and maintenance of two (2) new coal-fired
Units, which are very similar in size and technology to the existing Units. In
order to secure its fuel supply the Company also operates and maintains the
coal-unloading pier in the Port of Jorf Lasfar. For these activities, the
Company received a "right of possession" ("droit de jouissance") for the Site,
the existing Units, the new Units and coal unloading pier. This "right of
possession" will continue for the duration of the Project Agreements, which is
anticipated to be in the range from 15 to 30 years.
c. COMPANY LOAN, TRANSFER OF POSSESSION, PROJECT FINANCING AND INITIAL
DISBURSEMENT
On September 12, 1997, all Project Agreements were signed, the Company Loan
Agreement was executed and the first disbursement of the Company Loan was used
to pay the TPA fee to ONE. As a consequence, JLEC received possession of the
power station at Jorf Lasfar on September 13, 1997, and began to sell its
available capacity and net generation to ONE. All remaining requirements for
project financing were completed in November, and initial disbursement of the
Project Loans occurred on November 25, 1997.
d. CONSTRUCTION, COMMERCIAL OPERATION, PURCHASE OF COMPANY LOAN AND REPAYMENT OF
PROJECT LOANS
After a period of construction lasting 33 months and 41 months, Unit 3 and 4
began normal commercial operation on June 9, 2000, and February 2, 2001,
respectively. Consequently, the JLEC shareholders purchased 100% of the Company
Loan Notes on December 11, 2000, and JLEC began the repayment of all Project
Loans on May 15, 2001. After JLEC completes the repayment of all Project Loans
(which is scheduled for February 15, 2013), ONE has the option to pay JLEC the
Termination Amount, and then terminate all Project Agreements and retake
possession of the Site and power station at Jorf Lasfar .
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The Company's financial statements are prepared using the historical cost
convention. The accounting and reporting policies of the Company are in
accordance with the generally accepted accounting principles of Morocco, which
are called "Code General de Normalisation Comptable" or "CGNC". Financial
statements are prepared in accordance with these CGNC standards, and expressed
in Dirhams.
In addition to and separately from Moroccan (CGNC) financial statements in
Dirhams, the Company uses the U.S Dollar as functional currency, and has
prepared these financial statements in accordance with generally accepted
accounting principles of the United States.
Page 6
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
b. REVENUE RECOGNITION
On September 12, 1997, the Company and the Office National de L'Electricite
executed a set of contracts related to the power station at Jorf Lasfar. In
accordance with Statement of Financial Accounting Standard (SFAS) No. 13, these
contracts are accounted for as a direct financing lease. Accordingly, JLEC ( the
"Lessor") will receive a stream of payments from ONE (the "Lessee") over the
term of the lease. The term of the lease is determined in accordance with SFAS
No. 13 Section (5)(f) which has been superseded by SFAS No. 98 Section 22(a).
The following policies are used to calculate the minimum lease payments and the
unearned income from the lease.
MINIMUM LEASE PAYMENTS are determined in accordance with SFAS No. 13
Section 5(j), and are based on the capacity payments that ONE will make to
JLEC. These minimum lease payments do not include reimbursable or executory
costs such as the reimbursement of coal costs. The sum of these capacity
payments equal the gross investment under the lease.
This gross investment minus the net investment in the plants is defined to
be the UNEARNED INTEREST INCOME. This unearned interest income will be
accreted and recognized into earnings over the lease term using the
effective interest method so as to produce a constant periodic rate of
return on the net investment.
The NET INVESTMENT represents the cost of acquiring and constructing the
leased assets. These ACQUISITION AND CONSTRUCTION COSTS include the
following items which are capitalized and allocated to Units 1 and 2 and
Units 3 and 4 based upon appropriate allocation methodologies :
TRANSFER OF POSSESSION AGREEMENT (TPA): The TPA payment is included in
the cost basis of the leased assets.
DIRECT CONSTRUCTION COSTS: All direct costs related to construction
are included in the cost basis of the leased assets.
CAPITALIZED COSTS: Interest and financing costs incurred during
construction are capitalized and included in the cost of the
constructed units.
PROJECT DEVELOPMENT COSTS AND FEES: These costs and fees are also
capitalized and included in the cost basis of the leased assets.
FINANCING COSTS: Interest expense is recognized on the effective interest
method over the life of the debt. Other financing costs such as commitment
fees, guarantee fees, etc. are considered a component of the interest
expense of the related debt or financing. As such, they are amortized into
expense using the effective interest method over the life of the related
debt or financing.
c. INVENTORIES
The Company accounts for inventories by consistently applying the FIFO or
average cost method to each item, and uses the conservatism principle (lesser of
market value or cost) in its procedures for valuing inventories.
Page 7
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
d. FOREIGN CURRENCY TRANSACTIONS
The books and records of the Company for U.S. GAAP are maintained in U.S.
Dollars, which is both the reporting and functional currency. Transactions in
other currencies are translated to U.S. Dollars at the spot rate for current
period expenses and at the settlement rate for non-period transactions. Monetary
assets and monetary liabilities outstanding in OTHER foreign currencies on
balance sheet dates are translated into U.S. Dollars at rates prevailing on such
balance sheet dates. Exchange gains and losses on those foreign currency
operations are included in determining net income for the period in which
exchange rates change.
e. DEFERRED INCOME TAX
Starting September 13, 2002, JLEC tax rate on Units 1&2 is 17.5%. JLEC
determines and books the current income tax (US$ 4,226,098 for 2002) as required
by the CGNC (Moroccan GAAP).
Temporary differences between the US GAAP and the CGNC balance sheets are
creating the need to record deferred income taxes. The main temporary
differences result from the use of the Direct Financing Lease method under US
GAAP. In particular, the treatment of Net Investment and revenue recognition (as
disclosed in note 2.b above) under US GAAP are quite different from the
treatment of these items under Moroccan GAAP. The total of all the deferred tax
liabilities is $13,005,298 ($6,097,093 for 2001 plus $6,908,205 for 2002).
f. OFF BALANCE SHEET COMMITMENTS
The Company discloses all off-balance sheet commitments, if any, on balance
sheet dates.
Page 8
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
3. CASH
3.1 Cash
The Company's cash as of December 31, 2002, includes the initial capital
deposits of the Company's shareholders, as explained further in Note 15.1. Such
cash is held in Moroccan Dirhams in accounts at 15.1 CITIBANK MAGHREB, which is
located at 52, Avenue Hassan II, Casablanca, Morocco.
The remainder of the company's' cash is held by the Offshore Collateral Agent,
Deutsche Bank Trust Company Americas in US$ and Euro, and by the Onshore
Collateral Agent, BMCI - Banque Marocaine pour le Commerce et l'Industrie in
Morocain Dirhams and US$.
The cash balances includes the following categories :
<Table>
<Caption>
12/31/02 12/31/01
US$ US$
------------- ------------
Off-shore Revenue in US$ 22,666,875 36,223,422
Off-shore Revenue in Euro 5,331,124 5,000,414
------------- ------------
Total Off-Shore Revenue 27,997,998 41,223,836
On-shore O&M Account - Generator 793,293 2,899,102
On-shore O&M Account - Operator 3,258,836 2,298,642
Off-shore O&M Accounts 10,607 8,464
------------- ------------
Total O&M Accounts 4,062,735 5,206,208
Fuel & Spare Part Accounts 5,289,381 12,080,028
On-shore Construction Accounts 0 1,100,363
Off-shore Debt Service Accrual Accounts in US$ 3,843,187 3,540,479
Off-shore Debt Service Accrual Accounts in Euro 5,433,301 3,898,143
------------- ------------
Total Debt Service Accrual Accounts 9,276,488 7,438,623
Shareholder capital deposits 56,624 56,624
------------- ------------
Total 46,683,227 67,105,682
============= ============
</Table>
3.2 Restricted Cash
The Reserve Accounts are as follow :
<Table>
Major Maintenance Reserve Account in US$ 3.4 a 2,500,000 5,000,000
Fixed O&M Reserve Account in US$ 3.4 b 4,800,000 9,600,000
Debt Service Reserve Account in US$ 3.4 c 11,730,000 730,000
Super Reserve Account in US$ 3.4 d 18,100,000 0
Distribution Account in US$ 0 0
------------- -----------
Off-shore Reserve Accounts in US$ 37,130,000 15,330,000
Fixed O&M Reserve Account in Euro 197,262 161,372
Debt Service Reserve Account in Euro 3.4 e 16,450,805 1,649,031
------------- -----------
Off-shore Reserve Accounts in Euro 16,648,067 1,810,404
------------- -----------
Total Reserve Accounts 53,778,067 17,140,404
============= ===========
</Table>
3.3 Total Cash
<Table>
Cash 3.1 46,683,227 67,105,682
Restricted Cash in Reserve Accounts 3.2 53,778,067 17,140,404
------------- -----------
100,461,294 84,246,085
============= ===========
</Table>
3.4 Letters of Credit
Additional liquidity is available, if needed for debt service, from Sponsor (CMS
and ABB) Letters of Credit in the following accounts :
<Table>
<Caption>
12/31/02 12/31/01
------------- -----------
a. Major Maintenance Reserve Account US$ 2,500,000 0
b. Fixed O&M Reserve Account US$ 4,800,000 0
c. Debt Service Reserve Account US$ 11,300,000 22,600,000
</Table>
Page 9
<Page>
<Table>
d. Super Reserve Account US$ 47,900,000 36,800,000
e. Debt Service Reserve Account Euro 15,000,000 30,000,000
</Table>
Page 10
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
4. INVENTORIES
The inventories as of December 31, 2002 are detailed as follows :
<Table>
<Caption>
12/31/02 12/31/01
US$ US$
------------- -----------
Stock of Coal 4.1 22,499,748 23,305,684
Stock of Fuel-oil 4.2 2,078,600 2,988,752
Stock of Spare Parts 4.3 15,081,606 4,952,377
Other Stocks (Chemicals, Oils,...) 954,692 512,445
------------- -----------
40,614,646 31,759,259
============= ===========
</Table>
4.1 The stock of coal represents the value of 473,318 tones existing in the coal
storage area as of December 31, 2002 plus 132,797 tones in transit to Jorf
Lasfar (643,042 tones total as of December 31, 2001).
4.2 The stock of fuel oil represents 12,300 m3 existing in the fuel tanks as of
December 31, 2002 (17,686 m3 as of December 31, 2001). This stock is greater
than a one-year consumption.
4.3 The stock of Spare Parts represents the value of spare parts as of December
31, 2002, that were purchased after the close-out of the Net Investment on
December 31, 2000. ($ 4,952,377 as of December 31, 2001).
5. RECEIVABLES
The "Accounts Receivables" as of December 31, 2002 are detailed as follows :
<Table>
<Caption>
12/31/02 12/31/01
US$ US$
------------- -----------
Account Receivable - ONE 5.1 76,098,673 85,811,099
Account Receivable - Others 5.2 76,097 704,024
------------- -----------
76,174,769 86,515,123
============= ===========
</Table>
5.1 The account receivable - ONE includes November 2002 and December 2002
invoices. The account receivable balance as of December 31, 2001 was US$
85,811,099 (Nov. and Dec. Invoices).
5.2 The other receivables include a) invoices to Valcen Gie ( association of
Moroccan cement companies) for purchases of fly ash and penalties from
November thru December 2002 (US$ 12,471), b) accrued interest earned by
investment of JLEC's cash balances ($ 55,501), and c) other receivables (US$
8,124).
6. PREPAYMENTS
The "Prepayments" as of December 31, 2002 are detailed as follows :
<Table>
<Caption>
12/31/02 12/31/01
US$ US$
------------- -----------
Prepaid Insurance 3,582,404 3,822,746
Prepayments for Income Tax 5,194,869 0
Other Prepayments 1,653,537 653,896
------------- -----------
10,430,810 4,476,641
============= ===========
</Table>
7. V.A.T LIABILITY
The "V.A.T Liability" account represents the net amount of Value Added Tax as
shown below :
<Table>
<Caption>
12/31/02 12/31/01
US$ US$
------------- -----------
Value Added Tax received from ONE to be declared 4,805,614 8,415,330
Value Added Tax to be paid & declared -1,934,168 -5,337,662
------------- -----------
2,871,446 3,077,668
============= ===========
</Table>
8. OTHER LONG TERM ASSETS
The Other Long Term Assets are as follows :
<Table>
<Caption>
12/31/02 12/31/01
US$ US$
------------- -----------
Long Term Receivables Loan 2,754,540 2,016,161
Long Term Ash Disposal Site 1,913,308 0
Major Maintenance capitalized during 2001 Unit 1 turbine
overhaul Outage 7,898,850 7,898,850
Less : Amortization of Unit 1 Major Maintenance in 2001 -470,170 -470,170
8.1 Less : Amortization of Unit 1 Major Maintenance in 2002 -1,128,407 0
------------- -----------
10,968,120 9,444,841
============= ===========
</Table>
8.1 Capitalized major maintenance costs are amortized over the estimated useful
life of the investment, which for the turbine overhauls is 7 years (84
months) .
Page 11
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
9. ACCOUNTS PAYABLE TO THIRD PARTIES
The "Account Payable to Third Parties" includes the main suppliers of JLEC as of
December 31, 2002 and are detailed as follows :
<Table>
<Caption>
12/31/02 12/31/01
US$ US$
------------- -------------------
Billiton (coal supplier) 4,119,817 16,060,510
Anglo (coal supplier) 2,245,218 5,281,412
Total (coal supplier) 0 2,267,178
RAG Trading (coal supplier) 4,499,958 0
Glencore 2,187,744 0
Alstom Power 2,845,357 2,607,834
ONE - Rebate for 2001 8,353,378 8,282,661
ONE - Rebate for 2001 Payment -8,353,378 -4,734,887
ONE - Rebate for 2002 16,280,787 0
ONE - Rebate for 2002 Payment -13,513,777 0
Other suppliers 6,832,615 4,999,250
------------- -------------------
Total 25,497,718 34,763,957
============= ===================
</Table>
10. RELATED PARTY TRANSACTIONS
During the year 2002, JLEC has booked a number of related parties transactions
as follows :
<Table>
<Caption>
ABB ABB CMS CMS CMS Total
EV MAROC MOPCO MOPCO RD & GEN
- ----------------------------------------------------------------------------------------------------------------------------
Currencies US$ MAD MAD MAD US$ US$
- ----------------------------------------------------------------------------------------------------------------------------
Acc. Payable 12/31/01 137,581 78,576 7,726,314 44,598,493 76,753
- ---------------------------------------------------------------------------------------------------------
Management Fees 35,654,033 0
Incentive Accrual 46,253,517
Other 207,059 778,086 -6,139,521 114,509
- ---------------------------------------------------------------------------------------------------------
Total Payments 2002 238,876 730,782 38,693,220 44,598,665 108,577
- ---------------------------------------------------------------------------------------------------------
Acc. Payable 12/31/02 105,764 125,880 -1,452,394 46,253,345 82,686
- ----------------------------------------------------------------------------------------------------------------------------
Acc. Pay. in US$ 12/31/02 105,764 12,345 -142,433 4,535,976 82,686 4,594,337
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
Jorf
Jorf Lasfar Lasfar Jorf Lasfar Tre Kronor
Energiaktie- Power Handels- Investment AB Cythere AB Cythere
Common Stock bolag Energy AB bolag AB 61 63 Total
- ----------------------------------------------------------------------------------------------------------------------------
Currencies MAD MAD MAD MAD MAD MAD MAD
- ----------------------------------------------------------------------------------------------------------------------------
Acc. Payable 12/31/01 202,826,993 186,600,834 16,226,160 16,226,160 885,063 388,542,764 811,307,973
- ----------------------------------------------------------------------------------------------------------------------------
Dividend Payable
Oct 29, 2002 495,000,000 455,400,000 39,600,000 39,600,000 2,160,000 948,240,000 1,980,000,000
- ----------------------------------------------------------------------------------------------------------------------------
Total Payments 2002 477,660,429 439,447,594 38,212,834 16,144,045 880,600 386,583,232 1,358,928,734
- ----------------------------------------------------------------------------------------------------------------------------
Acc. Payable 12/31/02 220,166,565 202,553,239 17,613,325 39,682,115 2,164,464 950,199,532 1,432,379,240
- ----------------------------------------------------------------------------------------------------------------------------
B/S FX Rate MAD/USD 10.197 10.197 10.197 10.197 10.197 10.197 10.197
- ----------------------------------------------------------------------------------------------------------------------------
Acc. Pay. in US$ 12/31/02 21,591,308 19,864,003 1,727,305 3,891,548 212,265 93,184,224 140,470,652
- ----------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
Jorf
Jorf Lasfar Lasfar Jorf Lasfar Tre Kronor
Preferred Stock & Energiaktie- Power Handels- Investment AB Cythere AB Cythere
Convertible Securities bolag Energy AB bolag AB 61 63 Total
- ----------------------------------------------------------------------------------------------------------------------------
Currencies MAD MAD MAD MAD MAD MAD MAD
- ----------------------------------------------------------------------------------------------------------------------------
Preferred Stock Dividend
payable 0 0 0 0 261,774 115,016,078 115,277,852
- ----------------------------------------------------------------------------------------------------------------------------
Convertible Securities
Interest 63,882,171 58,771,597 5,110,574 5,110,574 16,749 7,359,167 140,250,832
- ----------------------------------------------------------------------------------------------------------------------------
Total Payments 2002 63,882,171 58,771,597 5,110,574 5,110,574 278,523 122,375,245 255,528,684
- ----------------------------------------------------------------------------------------------------------------------------
Acc. Payable 12/31/02 0 0 0 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
B/S FX Rate MAD/USD 10.197 10.197 10.197 10.197 10.197 10.197 10.197
- ----------------------------------------------------------------------------------------------------------------------------
Acc. Pay. in US$ 12/31/02 0 0 0 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
-------------------
Total Accounts Payable to Related Parties 145,064,990
-------------------
</Table>
Page 12
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
11. TAXES PAYABLE:
The "taxes payable" includes the following items as of December 31, 2002 :
<Table>
<Caption>
12/31/02 12/31/01
US$ US$
------------- -------------
Value Added Tax (VAT) to pay on behalf of foreign suppliers 299,199 312,044
Income Tax 2001 0 186,202
Income Tax 2002 4,226,098 0
Withholding Tax 155,281 192,380
Payroll Tax 185,575 182,715
------------- -------------
Total 4,866,153 873,340
============= =============
</Table>
12. CAPACITY CHARGES
<Table>
<Caption>
Actual DFL model
------------- -------------
12.1 $ Capacity Charges greater than $ DFL Model $ Capacity Min Lease
------------- -------------
Charges Payments Difference
------------- ------------- -------------
CGNC US GAAP US GAAP
------------- ------------- -------------
USD USD USD
------------- ------------- -------------
2002 IN USD 144,776,947 142,336,127 2,440,820
-------------
$ Capacity Charges greater than $ DFL Model 2,440,820
-------------
</Table>
<Table>
<Caption>
Actual DFL model
------------- -------------
12.2 Euro Capacity Charges greater than Euro DFL Model Euro Capacity Min Lease
------------- -------------
Charges Payments Difference
------------- ------------- -------------
CGNC US GAAP US GAAP
------------- ------------- -------------
Euro Euro Euro/USD
------------- ------------- -------------
2002 IN EURO 124,845,355 124,619,384 225,971
-------------
B/S FX Rate X 1.046582
-------------
Euro Capacity Charges greater than Euro DFL Model in USD 236,497
-------------
</Table>
13. OTHER CURRENT LIABILITIES
The "Other Current Liabilities" as of December 31, 2002 are detailed as
follows:
<Table>
<Caption>
12/31/02 12/31/01
US$ US$
------------- -------------
Accrued Expenses: interest, swaps and fees 13.1 6,072,924 17,293,488
Accrued salaries expense 1,390,179 986,669
Liability for Compensated Absences 307,449 108,027
Other Liabilities 184,470 218,670
------------- -------------
7,955,022 18,606,854
============= =============
</Table>
13.1 The accrued interests and fee expenses are detailed by loans as follows :
<Table>
<Caption>
12/31/02 12/31/01
US$ US$
------------- -------------
OPIC 807,914 907,733
SACE 1,522,740 1,413,325
WB 1,629,541 1,146,864
US EXIM - Exposure Fees 0 12,255,922
US EXIM - Other 1,823,435 1,370,400
ERG 289,295 199,245
------------- -------------
6,072,924 17,293,488
============= =============
</Table>
Page 13
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
14. LONG TERM LOANS
Long term loans are detailed as follows as of December 31, 2002:
<Table>
<Caption>
Interest Reimbursement
Borrowing Principal --------------------------- Interest --------------------------
Loan Date Currency Amount Type Rate Payment Maturity Periodicity
- --------------------------------------------------------------------------------------------------------------------------
US EXIM 9/12/02 US$ 200,970,655 Fixed 7.2000% Quarterly Feb. 15, 2013 Quarterly
OPIC Note A 11/25/97 US$ 51,677,083 Fixed 10.2300% Quarterly Feb. 15, 2013 Quarterly
OPIC Note B 02/11/98 US$ 11,275,000 Fixed 9.9200% Quarterly Feb. 15, 2013 Quarterly
----------
62,952,083
Total L.T loan in US$ 263,922,739
Current part in USD 25,748,560
Non-Current part in USD 238,174,179
<Caption>
Interest Reimbursement
Borrowing Principal --------------------------- Interest --------------------------
Loan Date Currency Amount Type Rate Payment Maturity Periodicity
- --------------------------------------------------------------------------------------------------------------------------
SACE 11/15/02 Euro 198,720,273 Fixed 5.7300% Quarterly Feb. 15, 2013 Quarterly
ERG 11/15/02 Euro 25,537,392 Variable 5.13725% Quarterly Feb. 15, 2013 Quarterly
World Bank 11/15/02 Euro 136,696,015 Variable 4.88725% Quarterly Feb. 15, 2013 Quarterly
Total L.T loan in Euro 360,953,680
B/S FX Rate Euro/USD 1.04658
Total L.T loan in USD 377,767,743
Current part in USD 36,855,389
Non-Current part in USD 340,912,354
</Table>
Total principal repayments for the next five years are detailed below. Forecasts
of interest payments, interest-rate swap payments and guarantee fees are also
shown below. For further information regarding swaps, see Note 20.
<Table>
<Caption>
Principal Principal Principal Principal Principal Remaining Remaining Remaining
Repayment in Repayment in Repayment in Repayment in Repayment in Interest Swap Guarantee
2003 2004 2005 2006 2007 Payments Payments Fees
2003-2013 2003-2013 2003-2013
------------ ------------ ------------ ------------ ------------ ----------- ---------- ---------
In USD
US EXIM 19,606,893 19,606,893 19,606,893 19,606,893 19,606,893 76,033,383 0 0
OPIC A 5,041,667 5,041,666 5,041,666 5,041,666 5,041,666 27,754,052 0 0
OPIC B 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 5,871,955 0 0
Total in USD 25,748,560 25,748,559 25,748,559 25,748,559 25,748,559 109,659,390 0 0
In Euro
SACE 19,387,344 19,387,344 19,387,344 19,387,344 19,387,344 60,663,342 0 0
ERG 2,491,452 2,491,452 2,491,452 2,491,452 2,491,452 7,093,552 4,535,473 0
WB 13,336,197 13,336,197 13,336,197 13,336,197 13,336,197 36,148,188 23,844,995 6,757,469
Total in Euro 35,214,993 35,214,993 35,214,993 35,214,993 35,214,993 103,905,082 28,380,468 6,757,469
B/S FX Rate
Euro/USD 1.04658 1.04658 1.04658 1.04658 1.04658 1.04658 1.04658 1.04658
Total in USD 36,855,389 36,855,389 36,855,389 36,855,389 36,855,389 108,745,223 29,702,496 7,072,248
</Table>
Page 14
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
15. SHAREHOLDERS' EQUITY
The composition of Shareholders' Equity as of December 31, 2002 was :
15.1 COMMON STOCK
<Table>
<Caption>
Common Stock Paid in advance
-------------------------------------------- for shares
to be issued
Number Par value Par value -----------------------------
Shareholders of Shares Dirham US Dollar Dirhams US Dollar
- --------------------------------------------- ------------------------------------------------------------------------
AB Cythere 63, Sweden 2,634 263,400 27,668 722.29 74
Jorf Lasfar Energiaktiebolag, Sweden 1,375 137,500 14,443 400.00 41
Jorf Lasfar Power Energy AB, Sweden 1,265 126,500 13,288 380.00 39
Tre Kronor Investment AB, Sweden 110 11,000 1,155 -26.75 -3
Jorf Lasfar Handelsbolag, Sweden 110 11,000 1,155 220.00 22
AB Cythere 61, Sweden 6 600 63 1.65 0
------------------------------------------------------------------------
Total 5,500 550,000 57,773 1,697.19 173
</Table>
15.2 CONVERTIBLE SHAREHOLDERS' SECURITIES
On December 11, 2000, the JLEC shareholders purchased 100% of all Company Loan
Notes for $ 387,355,000, and amended the Company Loan Agreement to make such
shareholder securities convertible into Preferred Stock or Common Stock. On
January 1, 2001, the convertible securities (Company Loan Principal) held by AB
Cythere 61and AB Cythere 63 were converted into Preferred Stock as shown below
on Note 15.3 . Such conversions shall be made into a fixed number of JLEC shares
as listed below :
<Table>
<Caption>
Convertible Shareholders' Securities
---------------------------------------------
Number Par value Par value
Shareholders of Shares Dirham US Dollar
- --------------------------------------------- ---------------------------------------------
AB Cythere 63, Sweden 0 0 0
Jorf Lasfar Energiaktiebolag, Sweden 10,537,024 1,053,702,400 96,838,750
Jorf Lasfar Power Energy AB, Sweden 9,694,062 969,406,200 89,091,650
Tre Kronor Investment AB, Sweden 842,962 84,296,200 7,747,100
Jorf Lasfar Handelsbolag, Sweden 842,962 84,296,200 7,747,100
AB Cythere 61, Sweden 0 0 0
---------------------------------------------
Total 21,917,010 2,191,701,000 201,424,600
</Table>
Under the terms of the amended Company Loan Agreement summarized below, these
convertible securities constitute an hybrid instrument which are delt with in
accordance with the substance of the transaction, i.e. as a Preferred Stock
equivalent : (a) Expression of the Loan in MAD
The outstanding USD 201,424,600 principal amount is expressed as MAD
2,191,701,000 for the purpose of computing interest and principal payments due
under this Agreement. However, interest and principal payments will be paid to
the shareholders in USD, provided that the Company is not responsible for any
losses realized by the shareholders resulting from the depreciation of the value
of the MAD relative to the USD.
(b) Repayment or conversion into Stock
Under the terms of the amended Agreement :
- - the Security may only be repaid, in whole or in part, at the Company's option;
- - the part of the Security principal held by other Company Lenders listed above
may be converted into Common Stock at any time, using the same conversion ratio
used for the conversion of the parts of AB Cythere 61 and AB Cythere 63;
- - the shares of Preferred Stock issued to AB Cythere 61 and AB Cythere 63 may be
converted into Common Stock. In this case, all outstanding Security principal
held by other Company Lenders will be mandatorily converted into Common Stock at
the same conversion ratio.
(c) Interest payment and accruals as Retained Earning
The Company will pay interest on the unpaid principal amount once per year, at
the interest rate per annum equal to the Moroccan maximum deductible rate, which
was 4.87% p.a, in 2002. Accruals for such interest payments are reported as part
of the Retained Earning allocation in Note 15.5, and are not expensed. 15.5
15.3 PREFERRED STOCK
In accordance with Section 3.01 par.(b) of the amended Company Loan Agreement
(see note 15.2 above), the Company has 15.2 converted on January 1, 2001, all
outstanding Company Loan principal held by AB Cythere 61 and AB Cythere 63, at
the conversion ratio of one (1) share of Preferred Stock for each one hundred
(100) MAD of such Company Loan principal converted into Preferred Stock, as
follows :
<Table>
<Caption>
Preferred Stock
---------------------------------------------
Number Par value Par value
Shareholders of Shares Dirham US Dollar
- --------------------------------------------- ---------------------------------------------
AB Cythere 63, Sweden 20,185,145 2,018,514,500 185,508,183
Jorf Lasfar Energiaktiebolag, Sweden 0 0 0
Jorf Lasfar Power Energy AB, Sweden 0 0 0
Tre Kronor Investment AB, Sweden 0 0 0
Jorf Lasfar Handelsbolag, Sweden 0 0 0
AB Cythere 61, Sweden 45,941 4,594,100 422,217
---------------------------------------------
Total 20,231,086 2,023,108,600 185,930,400
</Table>
Such shares are non-participating voting shares of convertible Preferred Stock
of the Company, and :
- - are convertible at any moment into shares of Common Stock;
Page 15
<Page>
- - give right to the collection of a minimum priority dividend, at least equal to
4% of the aggregate par value of the preferred shares,
- - do not participate in the distribution of the remaining balance of Retained
Earning, which is divided among 15.5 the shares of Common Stock as shown in Note
15.5.
Page 16
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
<Table>
<Caption>
15.4 RECONCILIATION OF RETAINED EARNINGS USD
----------------
Retained Earnings as of December 31, 2001 187,671,644
Retained Earnings increase during 2002 132,287,908
Retained Earnings decrease during 2002 :
Convertible Securities interest payable as of January 1, 2002 -12,095,803
140,250,832 Dirhams
11.5950 Dirhams per US Dollar
Preferred Stock Dividend payable as of January 1, 2002 -9,942,031
115,277,852 Dirhams
11.5950 Dirhams per US Dollar
Common Stock Dividend payable as of October 29, 2002 -184,891,213
5,500 Common Stock Shares
360,000 Dirhams per share
1,980,000,000 Dirhams
10.7090 Dirhams per US Dollar on October 29, 2002
----------------
Total Retained Earnings 15.5 113,030,506
</Table>
15.5 ALLOCATION OF RETAINED EARNINGS
The Retained Earnings are allocated among the shareholders as follows :
<Table>
<Caption>
Common
Convertible Securities Preferred Stock Stock Total
---------------------------------------------------------------------------------------
Shareholders Dirhams US Dollars Dirhams US Dollars US Dollars US Dollars
- ---------------------------------------- ---------------------------------------------------------------------------------------
AB Cythere 63, Sweden ....................... 0 0 99,666,957 9,774,145 44,357,210 54,131,355
Jorf Lasfar Energiaktiebolag, Sweden ........ 52,028,019 5,102,287 0 0 23,155,340 28,257,626
Jorf Lasfar Power Energy AB, Sweden ......... 47,865,778 4,694,104 0 0 21,302,912 25,997,016
Tre Kronor Investment AB, Sweden ........... 4,162,242 408,183 0 0 1,852,427 2,260,610
Jorf Lasfar Handelsbolag, Sweden ............ 4,162,242 408,183 0 0 1,852,427 2,260,610
AB Cythere 61, Sweden ....................... 0 0 226,840 22,246 101,041 123,287
---------------------------------------------------------------------------------------
Total ........................... 108,218,281 10,612,757 99,893,797 9,796,391 92,621,358 113,030,506
</Table>
The allocations for Convertible Securities (108,218,281 Dirhams) and Preferred
Stock (99,893,797 Dirhams) are payable as of January 1, 2003, and are scheduled
for payment on May 15, 2003.
16. DIRECT FINANCING LEASE - (D.F.L)
As explained in Note 2b, JLEC is using the Direct Financing Lease methodology.
Specific accounts were created to display particular operation under this
method. These accounts are detailed below .
16.1 LONG TERM RECEIVABLES
<Table>
<Caption>
US$ Euro
------------------ -----------------
Units 1 to 4 Units 1 to 4
------------------ -----------------
Total Minimum Lease Payments 1,426,008,468 1,081,037,348
Minimum Lease Payments for 2002 -142,336,127 -124,619,384
------------------ -----------------
Total of Future Minimum Lease Payments 1,283,672,341 956,417,964
------------------ -----------------
X 1.046582
------------------ -----------------
Total of Future Minimum Lease Payments in US$ 1,283,672,341 1,000,970,139
================== =================
</Table>
The minimum lease payments under the US GAAP model for the next five years are
as follows:
<Table>
<Caption>
US$ Euro
------------------ -----------------
Year Units 1 to 4 Units 1 to 4
-------------- ------------------ -----------------
2003 101,642,136 121,482,376
2004 116,664,592 116,635,941
2005 116,371,118 107,167,144
2006 106,872,046 90,768,049
2007 96,617,923 85,060,254
</Table>
Page 17
<Page>
JORF LASFAR ENERGY COMPANY
NOTES to US GAAP FINANCIAL STATEMENTS dated December 31, 2002
16.2 UNEARNED INCOME
<Table>
<Caption>
US$ Euro
------------------ -----------------
Units 1 to 4 Units 1 to 4
------------------ -----------------
Total Unearned Income 673,381,447 668,603,895
Lease Revenue 2002 -88,463,713 -99,930,507 X 0.95144 95,077,872
------------------ -----------------
584,917,734 568,673,388
------------------ -----------------
X 1.046582
------------------ -----------------
Total Remaining Unearned Income in US$ 584,917,734 595,163,517
================== =================
</Table>
The Lease Revenue under the US GAAP model for the next five years are as
follows:
<Table>
<Caption>
US$ Euro
------------------ -----------------
Year Units 1 to 4 Units 1 to 4
----------- ------------------ -----------------
2003 81,436,213 91,576,926
2004 77,831,811 84,020,822
2005 73,012,360 75,871,769
2006 67,896,425 69,487,000
2007 64,019,517 64,661,480
</Table>
17. Financial Expenses
The Financial Expenses from January 1, 2002 to December 31, 2002, are detailed
as follows:
<Table>
<Caption>
US$
-----------------
Interest, Fees and Swaps incurred from inception to December 31, 2002
Up-Front Fees 25,609,073
Interest Costs 246,526,514
Premiums 23,808,481
Commitment Fees 19,312,672
Arrangement Fees 2,396,273
Other Fees (acceptance fees, Agent fees...etc) 9,297,751
Guarantee Fees 19,101,732
Swaps 30,362,978
-----------------
376,415,474
Accrued Interest, Fees, Swaps (see Note 13.1) 6,072,924
-----------------
Total Interest, Fees and Swaps 382,488,398
Interest, fees and swaps capitalized as part of
the project construction for Units 3&4 -210,949,363
-----------------
Interest and swaps expensed - Total 171,539,035
Interest and swaps expensed from 1997 through 2001 -126,704,796
-----------------
Interest and swaps expensed in 2002 44,834,239
==========
</Table>
Page 18
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
18. PENSION PLANS
JLEC contributes to the following pension plans:
18.1 CAISSE COMMUNE DES RETRAITES (CCR)
As required by PPA Section 23.2.4, most of JLEC's employees ( 263 employees of
314, or 84%) plus 1 recent retiree are participants in the CCR defined benefit
pension plan. This plan is funded by employee payroll deductions equal to 9% of
the employees' gross pay, plus JLEC contributions equal to 18% of the
participating employees' gross pay. In 2002, such JLEC contributions to the CCR
amount to USD 291,036 (USD 266,972 in 2001, and USD 280,577 in 2000). A recent
independent assessment by Deloitte & Touche determined that as of August 31,
2002, JLEC's CCR funding level should have been USD 7,282,904 (really MAD
77,905,226 divided by 10.697), compared with an August 31, 2002, actual funding
level of only USD 1,856,061 (MAD 19,854,283/10.697). Therfore, in August 2002,
JLEC recognized an unusual one-time expense for future CCR pension obligations
in the amount of USD 5,426,843 (MAD 58,050,943/10.697), and created an
equivalent balance sheet liability for unfunded pension obligations. As of
December 31, 2002, this unfunded pension obligation equals USD 5,692,943 (MAD
58,050,943/10.197).
18.2 CAISSE INTERPROFESSIONNELLE MAROCAINE DE RETRAITES (CIMR)
Employees of JLEC not covered by CCR participate in a fund to which the employer
contributes an amount equal to 12 percent of the employee's gross pay. This fund
is carried in the employee's name, and the pension benefits an employee will
receive depend only on the amount contributed to this account and the returns
earned on investments of those contributions. In 2002, JLEC's contribution to
that fund amounted to USD 109,147 (2001:USD 105,912 and 2000: USD 102,558).
19. CONTINGENT LIABILITIES
The company's corporate tax return for the years 1999 to 2002, and the company's
payroll and VAT returns for the years 1997 to 2002 are open to audit by the
Moroccan Tax Authorities.
20. DERIVATIVE INSTRUMENT LIABILITY / OTHER COMPREHENSIVE INCOME
In accordance with SFAS N DEG. 133, JLEC's remaining interest rate swap
payments are forecasted, valued and reported in the Liability and Equity
section of the Balance Sheet. Details are provided in the following table.
<Table>
<Caption>
--------------------------------------------------------------------------------------------------------------------------------
Fixed Current Settlement Forecast of
Credit Swap Rate Paid Libor Paid Current Notional and Termination Remaining
Facility Providers Currency by JLEC to JLEC Amount Amortization Date Payments Valuation in Euro
--------------------------------------------------------------------------------------------------------------------------------
World Bank BNP Euro 6.4115% 3.13725% 45,565,338 Quarterly 2/15/2013 7,947,927 5,729,083
ABN Euro 6.4175% 3.13725% 45,565,338 Quarterly 2/15/2013 7,962,491 5,739,581
CSFB Euro 6.4060% 3.13725% 45,565,338 Quarterly 2/15/2013 7,934,576 5,719,459
----------- ---------- ----------
136,696,014 23,844,995 17,188,122
ERG BNP Euro 6.4700% 3.13725% 8,512,464 Quarterly 2/15/2013 1,511,371 1,089,437
ABN Euro 6.4750% 3.13725% 8,512,464 Quarterly 2/15/2013 1,513,638 1,091,072
CSFB Euro 6.4680% 3.13725% 8,512,464 Quarterly 2/15/2013 1,510,464 1,088,783
----------- ---------- ----------
25,537,392 4,535,473 3,269,292
Total in Euro 20,457,415
----------
B/S FX rate X 1.04658
Total in USD 21,410,369
==========
</Table>
21. CASH FLOWS FOR 2002
Reconciliation of net income to net cash from operating activities under the
Direct Method is as follows:
<Table>
<Caption>
US$
------------------
Net Income ................................................ 132,287,908
Adjustment to reconcile Net Income to cash provided
from operating activities: ...............................
Change in:
Inventory........................................... (8,855,387)
Receivables......................................... 10,340,353
Prepayments......................................... (5,954,169)
Recoverable VAT..................................... (206,222)
Accounts Payable.................................... 7,531,514
Tax Liabilities..................................... 3,992,813
Unfunded Pension Obligations........................ 5,692,943
Deferred Tax Liability.............................. 6,908,298
Other Liabilitites (excluding Financing costs
capitalized)....................................... 1,604,091
Depreciation and amortization....................... 2,752,641
Financial Expenses.................................. 44,834,239
Effect of exchange rate changes..................... 4,235,487
-----------------
Net cash provided by operating activities.................. 205,164,510
=================
</Table>
Page 19
<Page>
JORF LASFAR ENERGY COMPANY
NOTES TO US GAAP FINANCIAL STATEMENTS DATED DECEMBER 31, 2002
22. REVENUE ADJUSTMENTS
The Revenue Adjustments in 2002 as of December 31, 2002 are detailed as
follows:
<Table>
<Caption>
----------------
Amount in USD
----------------
ONE adjustments of JLEC invoices 90,988
EC Index Adjustment related to 2001 2,165,054
Unit 3/4 spare parts provided by Alstom w/o charge 834,184
----------------
3,090,227
================
</Table>
Page 20