Euromed October 2010 A Flexible Desalination Solution

Subsea Infrastructure Ltd - About Us Privately owned, UK company 40 years expertise in marine & infrastructure engineering 30 years expertise in infrastructure & project financing Developed offshore & onshore mobile desalination solutionas Currently supply 22,000m³/d (5.8MGD) to Cyprus Government (3 year contract terminating in December 2011) Patented brine dilution & dispersal system

Traditional Responses to Water Stress Tactical Response Leakage Reduction Education Conservation Rationing Waste water usage Strategic Response Dams/Reservoir build Increased usage of aquifers Pipelines - Redistribution Pipelines - Importation Desalination

Traditional Responses to Water Stress Short Term Relatively easy to initiate Few environment issues Modest cost impacts Within total control of existing operations & processes Long Term Large finance budgets Lengthy execution process Significant planning and environmental approvals

Issues Around Strategic Responses 25+ year planning – major, long term decisions Lead time to implement – lengthy decision processes Commercial structures - build, own, operate and transfer issues Financial structures – who provides finance and bears the risk Environmental impacts – time required to assess, report & agree Tendering Issues – international tender protocols and timetables Integration Issue – large additions to existing infrastructure O & M Issues – significant new plant / equipment/ infrastructure Energy Issues – source, price, renewable solutions

Bridging the ‘Water Gap’ A Flexible, Interim Response Vessel mounted mobile SWRO desalination plants Fast, low impact installation, removal, demobilisation or relocation Minimal onshore facilities (delivery pipeline & power) Mobile, multi-location if required Offshore location Volumes from 10,000m³ to 150,000m³ Low environmental impact and shorter approval process Shore power or self contained energy solutions Contract for short to medium term durations Flexibility around financial & commercial structures

Barge animation

Mobile desalination solution The key advantages Rapid execution Faster time to production Minimal approval process Limited infrastructure Minimal land acquisition cost Reduced site preparation Ease of relocation Cost-effective relocation to another site or project Fast time to production Ability to share facility

Mobile desalination solution The key advantages Environmentally friendly Brine dilution prior to dispersal Offshore brine/backwash mixing Financially adventageous Supplier finances High residual value Potential to share the operating cost of the vessel between regions, countries or projects

Cyprus – A Mobile Desalination Facility A 20,000m3/day (5.8MIGD) containerised mobile plant for Cyprus Government A 3 year contract signed in 14 February 2008 Access to site June 2008 Production commenced in December 2008 Fastest execution of a large scale desalination plant to date

Complexity versus Cost

Information Requirements

Flexible Desalination Subsea Infrastructure’s customer centric offerings provide: Short term contract time frames and Variable volumes Depending on volumes & durations solutions may be: Offshore barge based (single or multiple units) Offshore ship based (single unit / large volume) Water Alliance solution (shared mobile facility)

SPEEDRapidly meets short term needs while long term options are developed TIME Flexible contract durations meet Water Gap and contingency needs MOBILITY Vessel based plants can be moved rapidly. If infrastructure is pre-installed water can be provided within hours SCALE Modular solution allows variable volumes to be provided 10, ,000m 3 /day ( MIGD) of drinking water SECURITY Mobile & flexible plants provide security of supply even in complex situations SHARED The ‘Water Alliance’ enables partners to share a vessel based plant for peak and seasonal demand or respond to disasters Why a Mobile Desalination Facility?

Euromed October 2010 Thank you