THE DEVELOPMENT OF A 310MW WIND FARM AND ANCILLARIES IN LAISAMIS DISTRICT, NORTHERN KENYA PRESENTATION

2 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?

3 The project’s history dates back to 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, 1 st MOU signed between Anset Africa, Willem Dolleman 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.

4 Where are we located?

5 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.

6 310 MW installed capacity, made up of 365 Wind Turbines, (VESTAS V52) carefully placed to optimize the energy output

7 Stable power during all day Estimated wind power output based on wind measurement for May

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9 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 truck Loads

10 …with solutions to cater for all logistic aspects and challenges. 4 Route surveys by: Mammoet, SDV Transami Vestas Civicon

11 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 Execution period 23 months. Cost Euro M of which 110M from Spain and 32.5 M from GOK.

12 Total Project Cost: Euro 625 M (Wind Farm + BOP only) Debt/Equity Ratio: 70% Debt (437.5M) 10% Mezanine (62.5M) 20% Equity (125M) Equity: % Aldwych International. (UK) 25.25% KP&P (original promoters, Netherland) 12.50% NORFUND (Norway) 12.50% VESTAS WIND SYSTEMS (Denmark) 6.25% IFU (Denmark) 12.50% FINFUND (Finland) 0.25% SANDPIPER (Private Investment) Debt Lead Arranger: African Development Bank (AfDB) Co-Arrangers: STANDARD BANK & NEDBANK By who and How is the project financed?

13 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 29 th January 2010 and restated on 30 th September 2011 Carbon Credits: Approx CER’s/y of which the 1 st US Cent/KWhr returned to Kenya.

14 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 4.5 Million/year to be devoted to the development of the areas surrounding the Wind Farm and along the Transmission Line route.

15 All EPC Contracts completed and initialed. PPA in place. IPP license in place. GOK Letter of Support in place. Term Sheet from lenders completed. Financial Close expected by 19Th Dec Expected date of construction start April 2014 Where are we now?

16 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!

17 THANK YOU