Renewable Energy Projects in Georgia Qartli Wind Farm LLC Tornike Kazarashvili Chairman of the Board of Directors

Company Background Qartli Wind Farm” LLC, registered and established under the laws of Georgia, is state owned company where participatory interest is owned by JSC “Georgian Energy Development Fund” (GEDF) and JSC “Georgian Oil and Gas Corporation” (GOGC). For the project financing purposes, on January 11, 2016, the Loan Agreement was signed between “Qartli Wind Farm” LLC and European Bank for Reconstruction and Development according to which 22 000 000 USD has been allocated by the bank for this project. Qartli Wind Farm will promote the strategy prescribed by the Government of Georgia, which stipulates to satisfy the demand of the population by low emission generation development during the winter months. 9/16/2018

About the project The Site is located 7 km northeast to the city Gori, Shida Kartli Region. MoU with the Georgian Government obtained in November 2015 Lot 1 – Wind turbine procurement, transportation, installation, commissioning with Vestas Benelux B.V is signed on 24 December, 2015 Grid Connection Agreement with Georgian State Electrosystem is signed on 16 February, 2016 Lot 2–Civil and electrical works contract is signed with China Nuclear Industry 23 Construction Co. LTD on 14 March, 2016 Power Purchase Agreement is signed with Electricity System Commercial Operator on 10 May, 2016 From January 27, 2017 QWF received a generation license/ qualified plant status issued by Georgian National Energy and Water Supply Regulatory Commission 9/16/2018

Technical Parameters Total Installed Capacity 20.7 MW Annual Net Generation 84,1 GWh Total Investment USD 29 000 000 USD Number of turbines 6 units Type of Turbine Vestas V 117 91.5 HH, 3.45 MW Commissioning December, 2016 Investment per MW 1,4 Civil and Electrical works started in the middle March, 2016 and finished 15 November, 2016. Turbines Installation took the place on August 22, 2016 and finished September, 19 2016. Cold and hot commissioning of turbines finished on November 15 and from this day the whole wind farm started a trial operation until December 20, 2016. From November 15, whole generated electricity were supplied to the gird operator. 9/16/2018

Production report 9/16/2018 6xV117 3.45MW HH 91.5m Month Planned Actual Capacity Factor Dec 6 300 7190 48,6% Jan 6 400 6540 44,4% Feb 6 900 5805 43,6% Mar 8 300 8934 60,9% Apr 7 400 9412 66,1% May 7 500 7910 53,6% Jun 7 200 8500 64,3% 9/16/2018

Background Government of Georgia Georgian Energy Development Fund (GEDF) is a joint stock company established by Government of Georgia (GoG) on December 13, 2010. in order to promote and develop clean energy projects in the country Ministry of Energy of Georgia Director GEDF is managed by the Ministry of Energy of Georgia and serve as an investable vehicle in clean energy project development in Georgia. Finance & Investment Project Management and Development Project Support and Administration Public and investor relations Project Management Legal Department GEDF supports clean energy project development either though early project development investment and/or through an offering of the government’s shares in GEDF to potential investors Financial Analytics Research & Development Contractor relation Budgeting & Reporting Technical expertise Administration

GEDF’s activities Parties involvement in project development & management processes Core activities of Georgian Energy Development Fund Identification and analysis of potential “greenfield” sites including river-basin planning – and investigation of other renewable energy projects Involvement Finance initial costs related to the development of identified energy projects Jointly – with a private investors – develop projects with an exit option for the Fund at various stages of development; Support developing energy projects; Facilitate project investment promotion; Support potential financing arrangements with international financial institutions and/or private financial entities Project lifecycle Basic Design Feasibility Study Tender Documents Operations Construction Reconnaissance study Pre- Feasibility Study GEDF’s involvement Investor’s involvement

Cooperation schemes with GEDF

Project Initiation Process Project Initiation by GEDF Project Initiation by Investor Letter of Intent Investors write letter of Intent specifying: The projects they want to cooperate on and the intended way of cooperation. Information about the investor, their background and their view about project implementation plan. NDA and Information Sharing GEDF and Investor/project developer sign Non-Disclosure Agreement and share all the available information on specific projects If needed site visits and discussions are made to evaluate projects Due diligence GEDF conducts technical, financial, legal and any other (if required) investigations of the proposed case Agreement Investor and GEDF make decision on the way of cooperation and projects to cooperate with Investor and GEDF sign shareholding agreement/ service agreement. Terms of agreement are negotiable from project to projects. SPV Special purpose vehicle is established for further activities to be taken under Shareholder Agreement considered Tender Opening and Investor Selection – The tender for the investor selection will be governed based on the rules and criteria's published by GEDF on the official Web Page (The investor proposing the most favorable exit Terms for the Fund will be awarded ) Call for investor MOU / PPA - Ensured Continuity of the project – The Investor will be obliged to Obtain the Construction MoU and the PPA during the previously agreed time period MoU with GoG Investor selection Investor’s commitment Shareholder Agreement Bank Guarantee - The Selected Investor will be obliged to submit the Bank guarantee in amount of the necessary (agreed in the shareholders agreement ) equity contribution within 5 (five) working days from the MoU /PPA signature Date. Shareholder Agreement - The Basic terms and Conditions of the Shareholder Agreement will be also published on the official Web Page of the Fund along with the requirements; The Details will be agreed with the selected investor. JVC JVC – The Joint Venture Company will be governed based on the rules and principles and equity contribution issues previously agreed in the shareholder agreement.

GEDF’s Portfolio Reconnaissance Study Zestaphoni WF 150 MW HPP Projects 150 MW Adjara & Guria River Basins Alazani & Mtkvari River Basins Rioni River Basin Screening Enguri River Basin Screening Project Development Pre Feasibility Study Feasibility Study Qartli 2 WF 100 MW Wind Project 160 MW Chala HPP 6 MW CCGT 500 MW Supsa HPP Cascade 30 MW Basic Design Udabno SPP 5 MW Artana Lopota HPP 15 MW Tender Documentation Project Implementation Namakhvani HPP Cascade 433 MW Tsablari HPP 17 MW Construction JV with partners Gori Wind Farm 20 MW Shilda HPP 5 MW Dariali HPP 108 MW Operation Under GEDF’s development 9/16/2018 Exited projects by GEDF

Other RE projects under GEDF’s portfolio GEDF is managed by the Ministry of Energy of Georgia and serve as an investable vehicle in clean energy project development in Georgia. GEDF supports clean energy project development either though early project development investment and/or through an offering of the government’s shares in GEDF to potential investors Name Ins. Capacity P50 Generation Total Investment Current status Qartli 2 100 MW 317 GWh 140 mln. USD Final FS Nigoza 40 MW 154 GWh 56 mln. USD Central 120 MW 416 GWh 168 mln. USD Zestaphoni 150 MW 487 GWh 227 mln. USD MoU signature Udabno SPP 5 MW 6,9 GWh 5 mln. USD TD for EPC 1930-1940 first sketches 1975 - Hydroproject was assigned to design a two-step cascade 1984 - 1986 a three-step cascade was approved: installed capacity of 450 MW; annual production of 1681 GWH 1989 - the project implementation was postponed because of political and financial issues 2006 - USAID drafted a Pre-Feasibility study 2007 - feasibility study for Namakhvani HPP cascade, E.C. Hydroproject, ordered by the Ministry of Energy 2011 - feasibility study Review & Update by Stucky, ordered by a private Turkish company 2012 – JSC Namakhvani established by the Government. Design review and pre-EPC services conducted by consultant Studio Pietrangeli. EPC tender resulted in final offers from 6 international companies but wasn’t brought to the finish due to the changes in company and shareholder management. 2013 – remarkable development of the project and completion of additional studies was proposed by the consultant during the basic design phase. 9/16/2018

Thank you for your attention! E-mail: t.kazarashvili@gedf.com.ge 9/16/2018