Worley will invest $6.77 million in the project, consisting of a 33 megawatt gas-fired power station and a 341km gas pipeline, for a direct interest of 25% and a 12.5% interest to be held by Burns & Roe Worley.

The $90 million project is underpinned by an 18-year offtake agreement with Western Power and a similar agreement with the Esperance Port Authority. It will be funded by direct equity and limited recourse debt provided by ANZ Investment Bank.

Construction of the project is expected to commence in March this year with completion scheduled for the first half of 2004.

"Worley's investment in the Esperance Energy Project is the first step in the possible development of a portfolio of highly targeted infrastructure investments in the regional and remote power generation and waste management industries," said Worley's chief executive officer, John Grill.

Worley was up 1c to be trading at $1.74.