Singrobo-Ahouaty 44MW Hydro Power Plant, Côte d’Ivoire 23-25 Novembre 2015, Lagos, Nigeria

Introduction From Vision to Reality

2

A project developed by a local entrepreneur since 2011

• Project initial concept is based on solid sector experience and deep understanding of local challenges and opportunities

• Ekolan Alain Etty, fonder and Chief Executive Officer of Ivoire Hydro Energy

• Former Deputy General Manager of the Ivorian power utility between 1999 and 2005

A concession agreement signed in December 2013 with Government of Côte d’Ivoire

• Terms and conditions of the concession agreement in accordance with international bankability standards

• Negotiated step-down tariff structure balances the need to cover operating costs, debt services and shareholder returns will ensuring long-term competitiveness of the asset

• Average tariff of 6,8 USD cents per kWh over the lifetime of the concession (in real terms)

A joint development agreement signed Africa Finance Corporation in March 2015

• A reassuring participation at an early stage of a reputable African finance institution

• A fully financed project development phase

• A project that has validated its conceptual design and business plan

Project Description An exceptional Site

Reliable hydraulic date collected over 35 years of operations of upstream

existing dams on the Bandama river

Immediate access to the Abidjan-Yamoussoukro

highway (less than 4km)

Immediate access to the electric grid (2.5km)

No relocation of population

3

Located 23 km downstream of the existing Taabo dam on the Bandama river near the communities of Singrobo and Ahouaty

Project Description Proven Concept Design

4

Feasibility study completed in 2013 has determined key technical and commercial

project parameters

Detailed study that has consolidated drilling, hydrology analysis, geophysical

review is now completed

Bidding process for the selection of the construction firm has been initiated and is expected to be completed by Q1-2016

Construction of a soil/rock dam of 24m high and 1350m long, corresponding to a 220 million m3 water reservoir

2 penstocks of 5.70m diameter

Tail race channel of 2km long

Spillway of 78m long

Maximum discharge flow through 2 penstock of 2x101 m3/s

2 generation units of 22MW each with 750/1000 RPM

Vertical Kaplan Turbines

27 MVA 3 Phase, 11 or 13 / 90 KV GSU Transformer

90 KV Transmission Voltage

Annual load factor of 55%

Project Description Reputable Partners

5

Local economic player

Co-developers

Project development manager / transaction advisor

Legal counsel (international and local)

Technique advisor

Topographic, environmental and social advisor

Geotechnical and geophysical advisor

SCPA DOGUE-ABBE

YAO & Associés

Financing A medium Sized Project

6

Senior Debt

Equity

EPC including contingencies

Other Constrcution

Costs

Development Costs

Interest during

Construction

Banking Fees

Uses of Funds Sources of Funds

Total Project costs estimated at USD 128 million

Limited recourse and cash-flow based project financing

Financing Investment Opportunity

7

Equity IRR

>20%

18%

11%

Today Sept 2016 Financial Close

Development capital fully secured

USD 10m of construction equity to be sources out of

USD 24.6m

Development Risk

Construction and early

operations risk

USD 96m of debt to be sourced

Sept 2019 Start of Commercial

Operations

With equity in the process of being fully secured, opportunity to invest in a USD 96 million senior debt facility

Equity Debt

Financing Bankability at the Core of the Project Development

2010 2015 2020 2025 2030 2035 2040 2045 2050

0.00

0.50

1.00

1.50

2.00

2.50

0.00

5.00

10.00

15.00

20.00

25.00

mio

USD

Cash-flows et ratio de service de la dette

Cash Flow Before Debt Service Senior Debt Service ADSCR

Senior debt maturity 15 years All in interest rate 8% per annum

Grace period 3.5 years Debt to equity ratio 75:25

8

Initial period of 12 years allows to repay debt

Debt payments are entirely deducted from

remuneration during subsequent 12 years under a

transparent scheme

Financing Solid Contractual and Institutional Framework

9

Ivoire Hyrdo Energy Lenders DFIS

Commercial Banks

Shareholders

State of Côte d’Ivoire

Non-recourse lenders Equity

Public sector

Private Sector

Construction and Operations

EPC Contract

O&M or LTSA

Contrcat

Developers Etty

AFC, FMO

Development capital

External Advisors Themis

Hogan-Lovells Laymeyer

Hydro Design Legal, technical

and E&S external advisers

Direct Agreements

Concession Agreement

Power Purchase

Agreement

BOOT and project finance structure taken into consideration bankability standards as well as sector and regional experience

Financing Risk Analysis

• Reliable geotechnical data collected from existing upstream dams

• Exceptional proximity to road networks (4km) and electric grid (2.5km)

• Drilling and detailed engineering studies led by reputable international advisors

Cost overrun or delay in construction

• Tariff structure based on capacity payments for 97% of the tariff

• Risk is defector taken/managed by the off-taker (government) as it operates upstream dams

Hydraulic risk

• Tariff is competitive from day one in comparison with thermal power plants

• Step down tariff structure strengthens project competitiveness on the long-term

Competitiveness

• Sovereign guarantee on the utility payment obligations

• Possible partial credit risk insurance Payment risk

• Active participation of reputable financing institutions from an early stage

• Financial and legal advisors with solid track-record Financing risk

10

Impact Economic Development, Environmental and Social

11

Economic Development

• Competitive average tariff of 6.8 USD cents per kWh over the life time of the concession (in real terms), which is essential to sustain economic growth in Cote d’Ivoire

• Creation of several hundreds of direct jobs over a 3 year construction period

• Creation of local economic activities linkages in fishing, agriculture and eco-tourism

Environmental

• Increase in the renewable source contribution of the Cote d’Ivoire energy mix

• Development of Cote d’Ivoire’s hydro potential, which has been under-exploited with the development of thermal sources since the 1990s

• Annual reduction of around 124 thousand of CO2 emissions

Social

• The project does not entail relocation of population. Only economic compensations are expected due to displacement of traditional agricultural production

• Connectivity to land locked areas by way of the construction of the dam and access roads

• Construction of social infrastructure such as school, drinkable water and dispensaries

35-year Concession Agreement, signed in December 2013, following a two year development period

Solid culture of PPPs in Cote d’Ivoire and a history of honoured payments under power purchase agreements

Attractive commercial return for investors

Equity IRR around 18% on the basis of a tariff structure guaranteed by the Government

Competitive tariff from day one of operations with a tariff structure that improves competitiveness once debt is repaid

An exceptional site with easy access to high-way and electric grid. Availability of reliable hydraulic and geotechnical data

A solid and seasoned project development team in place

Project development cycle well engaged on technical, contractual and financing aspects

Conclusion A Replicable Success Story

A model that can be replicated in West Africa

12

Ekolan Alain Etty Ivoire Hyrdo Energy

Président Directeur Général Tel: (+225) 22 52 26 75

Thank You