DEG – Deutsche Investitions- undEntwicklungsgesellschaft mbH

Preconditions for Raising Capital for Independent Power Production Projects (IPPs)

Access to Financing Renewable Energy In NigeriaLagos, 04 June 2013

DEG – Promoter of entrepreneurial development cooperation

2

Corporate Data:

DEG – Our business is developing:

Preconditions for succesful IPPs

3

1. Regulatory requirements

2. Technical requirements

3. Electricity off-takers

4. Yield expectations for investors and banks

Key drivers for IPPs:

1. Regulatory reqiurements

4

2. Technical reqiurements

5

3. Electricity off-takers

Credit standing / company rating of off-taker

Major structural elements of PPAs:

Tenure

Take or pay

Feed-in tariff

Currency / Adaption to inflation

International arbitration

Compensation upon breach of contract6

4. Yield expectations for investors and banks

7

DEG – IPP overview in Africa

Type Project Time Country Investment Volume

MW Volume

Diesel Power Utility Kipevu II 2000 Kenya 13 MEUR 74

RABAI 2008 Kenya 12 MEUR 90

Gas Power Utility Azito S.A. 1998 Ivory Coast 11.3 MUSD 288

Azito S.A. 2012 Ivory Coast 25 MUSD 140

AESNB 2003 Nigeria 7.5 MUSD 270

Takoradi 2012 Ghana 30 MUSD 330

Hydropower Utility Bujagali 2007 Uganda 30 MUSD 250

BUJAGA 2011 Uganda 10.5 MUSD 250

Integrated Power Utility

AESCM 2006 Cameroon 15 MEUR -

CEC 2007 Zambia 11 MUSD -

Geothermal Power Utility

Olkaria 2008 Kenya 50 MEUR 48

Other Infrastructure Fund

2001 African continent

25 MEUR -

8

Get in touch!

Andreas Voss

Regional Director West Africa

KfW / DEG Office AccraVolta Street No. 7Airport Residential AreaP.O. Box 9698 K.I.A. AccraGhana

Phone: +233 302 7639 - 42 E-mail: andreas.voss@deginvest.de Telefax: +233 302 7639 - 41Internet: www.deginvest.de

9