CAPE TOWN 15TH MAY 2013

PRESENTATION

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Overview of this presentation

l How did it all start?

ll A unique wind resource

lll The logistic challenge

lV By who and how is the

project Financed?

V Where are we?

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The project’s history dates back to 2004...

• One of the Founding Fathers knew the site since the mid 80’s;

• In 2004 he approached Anset Africa to look at developing a Wind Power project on that site.

• In 2005 Oil prices soared to above USD 45/barrel rendering Wind Power competitive in Kenya.

• June 2005 KP&P of Netherlands was approached to come and visit the site.

• September 2005, 1st MOU signed between Anset Africa and KP&P. This marked the beginning of the development of this challenging project.

• November 2009 Aldwich International (one of the owners of the Rabai plant in Mombasa) joined KP&P to co-develop LTWP to the present stage.

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Where are we located?

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We have an unparalleled and unique wind-resource...

• This location is particularly favourable, as it lies in

the “Turkana Corridor” where a low level jet

stream originating in the Indian Ocean creates

strong and predictable wind conditions aided by

the presence of Mount Kulal to the North and

Mount Nyiru to the South which act to produce a

Venturi effect accelerating the winds across the

proposed location where the wind turbines are to

be located.

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300 MW installed capacity, made up of 365

Wind Turbines, (VESTAS V52) carefully

placed to optimize the energy output

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Stable power during all day

Estimated wind power output based on

wind measurement for May 1, 2010

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Average daily wind speed

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The logistic challenge

•Upgrading of 206 km of Road

•Construction of 3 flood bridges

•Use of 6 wheel drive trucks from Laisamis to site

•Most demanding parts: 3 transformers 80MT/pc measuring 5x4x4Mt in size

•12.000 truck Loads

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…with solutions to cater for all logistic aspects and challenges.

• 4 Route surveys by:

• Mammoet,

• SDV Transami

• Vestas

• Civicon

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The wind farm will be connected to the

National grid by a 400 kV T. Line from the

W.Farm site to Suswa – a distance of 428km. • International procurement process:

• Task Force – MOE, KPLC, KETRACO,

KEMA, KPMG, LTWP

• Public Sector Implementation.

• Contract awarded to ISOLUX Corsan.

(Spain).

• Contract negotiations completed on

25.2.2011 .

• Execution period 22 months.

• Cost Euro 142.5 M of which 110M

from Spain and 32.5 M from GOK.

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• Total Project Cost: Euro 583M (Wind Farm + BOP only)

• Debt/Equity Ratio: 70% Debt (408M) 10% Mezanine (58M)

20% Equity (117M)

• Equity:

25.00% Aldwych International. (UK)

25.00% KP&P (original promoters, Netherland)

12.50% NORFUND (Norway)

12.50% VESTAS WIND SYSTEMS (Denmark)

6.25% IFU (Denmark)

18.75% Under Allocation

• Debt Lead Arranger: African Development Bank (AfDB)

Co-Arrangers: STANDARD BANK & NEDBANK

By who and How is the project financed?

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PPA details

• We sold the power to KPLC

• PPA terms:

– fixed price (20 years): 7.52 Euro cents per kWh

– Escalation only on O&M part of the costs

– Take or pay

– 20 years term after full commissioning

• Status: SIGNED ON 29th January 2010 and restated on 30th

September 2011

• Carbon Credits: Approx. 780.000 CER’s/y of which the 1st

US Cent/KWhr returned to Kenya.

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The project has an extensive social responsibility component…

•Well designed Corporate and Social

Responsibility Programme covering

20 years and implemented in 4 x 5

year development plans focusing on:

•Water

•Health and sanitation

•Education

•Electrification

•Carbon Credits: Up to USD 16.5

Million/year to be devoted to the

development of the areas surrounding

the Wind Farm and along the

Transmission Line route.

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• All EPC Contracts completed and initialed.

• PPA in place.

• IPP license in place.

• GOK Letter of Support in place.

• Draft Term Sheet from lenders completed.

• Financial Close expected by July 2013.

• Expected date of construction November 2013

Where are we now?

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We take this opportunity to extend our gratitude to the Government of Kenya, KPLC, ERC. and KETRACO for the unwavering support and faith they have extended to this challenging project.

Acknowledgements!

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THANK YOU