Partnership delivers high-quality, secure utilities to National Interagency Biodefense Campus

FREDERICK, MD, Nov 20, 2008 - The National Council for Public-Private Partnerships (NCPPP) announced today it has selected the U.S. Army's Enhanced-use Leasing Program, Chevron Energy Solutions and Keenan Development to receive the council's 2008 Infrastructure Award. The award recognizes outstanding leadership and an exemplary enhanced-use leasing project that illustrates the best practices and innovative approaches in the use of public-private partnerships (PPPs).

The NCPPP has noted that such partnerships "provide a means for combining the strengths of each sector for the most cost effective delivery of services and infrastructure, while maintaining an appropriate level of public control."

The award is the first for the $100 million central utility plant, which provides for continuous steam, chilled water, conditioned electricity and standby emergency power to reliably meet the needs of the National Interagency Biodefense Campus' (NIBC) biomedical and biodefense research. Keenan Development structured the PPP, arranged financing, owns the plant and is leasing the project land from Fort Detrick. Chevron Energy Solutions, a unit of Chevron Corporation (NYSE: CVX), designed and constructed the plant and is operating the facility.

"This plant will help ensure continued progress in biomedical research and other critical defense work at Fort Detrick," said Colonel Judith Robinson, garrison commander at Fort Detrick. "In supporting our nation's biodefense laboratories, this project is supporting the security of our country."

The facility was designed to support some of the highest-level biosafety containment laboratories in the world, including the National Institute of Health's National Institute of Allergy and Infectious Diseases Integrated Research Facility, the Department of Homeland Security's National Biodefense Analysis and Countermeasures Center, Fort Detrick's Steam Sterilization Plant, and the U.S. Army Medical Research Institute for Infectious Diseases. Other federal agencies are planning to site research assets at the NIBC.

"From the outset of this project, it was clear that the U.S. Army was seeking the most efficient, cost effective and reliable means to provide power and other utilities in support of its research efforts," said John Hill, Keenan Development principal. "We are very pleased the project has been the success the Army envisioned. This success stems from effective teamwork, creative application of Keenan Development's, Chevron's and Fort Detrick's complementing strengths, and the team's commitment to achieving the Army's clearly defined goals."

We are honored that our partnership with Keenan and the U.S. Army has been recognized with this award," said Jim Davis, president of Chevron Energy Solutions. "Through this partnership and creative applied technology, a new, energy-efficient plant is safely meeting the needs of the National Interagency Biodefense Campus."

This first-of-its-kind energy project, established through the Department of Defense's enhanced-use lease authority, was nominated by the Army's Enhanced-Use Leasing Program Office, Real Estate Division, Baltimore District, U.S. Army Corps of Engineers.

The award will be presented this evening at the NCPPP Awards Banquet in conjunction with NCPPP's Annual Meeting in Indianapolis, IN.

"The Army EUL team will build on the dedication and successes of its Fort Detrick partners to bring energy and other critical installation resources to support a vital national security mission, and to benefit Soldiers and their families," said Bob Penn, U.S. Army's Enhanced-Use Leasing Program Manager.

About Chevron Energy Solutions
Chevron Energy Solutions partners with institutions and businesses to improve facilities, increase efficiency, reduce energy consumption and costs, and ensure reliable, high-quality energy for critical operations. Through contracts with the U.S. Department of Defense and the U.S. Department of Energy, the company has engineered and installed improvements at military bases that are expected to save U.S. taxpayers approximately $240 million in total. At mail facilities throughout Northern California, the company has completed sustainable upgrades that are saving the U.S. Postal Service more than $2 million per year in energy costs.

About Keenan Development
Keenan Development has developed, structured, financed, and design-built more than $1 billion in projects for the public sector, extending throughout the United States. These projects range from design-build administrative offices and mission-critical complexes, to large, high-technology and research facilities on university campuses, military installations and at National Laboratories. For more information, visit Keenan Development's Web site at www.kdallc.com.

About U.S. Army
For more information about the Army's enhanced-use leasing program, visit the U.S. Army's Web site at EUL.Army.mil.

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Contacts:
Juliet Don, Chevron Energy Solutions
415 733 4673

Mike Penland, Keenan Development
803-753-5815

Chuck E. Gordon, Fort Detrick
301-619-2060

Bob Penn, U.S. Army EUL Program
410-962-3000

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