Renewable Energy IPP Procurement Programme Window two Preferred Bidders announcement 21 May 2012 Slide 1

Introduction The procurement documents were released on the 03 of August 2011 and compulsory bidders conference for the first and second window on the 14 of September The document provides for procurement of 3725MW in five different rounds subject to the availability of the MW The Department. Under round one: –Received 53 Bids on the 4 th of November –Announced 28 preferred bidders in December 2011 With regards to round two: –Received 79 bids on the 5 th of March 2012 –These bids amount to 3255MW whilst the cap was 1275MW

Procurement documents Part A: General Requirements and Rules Part B: Qualification Criteria Part C: Economic Development Request for Proposals Wind PPA Solar PPA Small hydro CSP PPA Power Purchase Agreement Contract between the IPP and the Department Obligation for IPP to deliver on economic development In buyer default – Department to pay the IPP Implementation Agreement Procurement Process Background To be concluded in Phase 2

Contractual Arrangement IPPGovernmentEskom Government Framework Support Agreement Implementation Agreement Power Purchase Agreement

Request for Proposal (RFP) Requirements Rules RFP Part A Environment Land Economic Develop Finance Technical Price Capacity RFP Part B Qualification Price Job creation Local content Preferential Procurement Enterprise Development Socio-economic development RFP Part C Comparative Evaluation Procurement Process Background

PART C EVALUATION 6 Price 70 % 30 % ED Job creation Socio Economic Local content Project cost Rand/MW

OVERVIEW OF EVALUATION PROCESS 7

Evaluation team: International reviewers Legal review – Linklaters (UK) Technical review – Blueprint consult Financial review – cross-moderation between the two Financial Advisory firms Governance review – Ernst & Young Legal evaluation team Bowman Gilfillan Edward Nathan Sonneberg Ledwaba Mazwai Webber Wentzel BKS Technical evaluation team Matt Macdonald Financial evaluation team Ernst & Young PWC International reviewers Legal review – Linklaters (UK) Technical review – Blueprint consult Financial review – cross-moderation between the two Financial Advisory firms Governance review – Ernst & Young Legal evaluation team Bowman Gilfillan Edward Nathan Sonneberg Ledwaba Mazwai Webber Wentzel BKS Technical evaluation team Matt Macdonald Financial evaluation team Ernst & Young PWC Evaluation Streams: Legal Environment Environmental Authorization Legal Land Land right Notarial lease registration Proof of land use application Legal Commercial Acceptance of the PPA Project structure Economic Development Contributor status level 5 Compliance with threshold Financial Full and partial price indexation Technical Eligibility Energy resource Legal Environment Environmental Authorization Legal Land Land right Notarial lease registration Proof of land use application Legal Commercial Acceptance of the PPA Project structure Economic Development Contributor status level 5 Compliance with threshold Financial Full and partial price indexation Technical Eligibility Energy resource Evaluation Composition

PREFERRED BIDDERS 9

Preferred Bidders Summary 10 No of Bids MW taken by Preferred Bidders Maximum MW allocated for round 2 Solar photovoltaic Wind Small Hydro CSP TOTAL

Preferred Bidders Solar Photovoltaic 11 IPPIDProject Name MW 168Solar Capital De Aar Sishen Solar Facility Aurora Vredendal Linde Dreunberg Jasper Power Company Boshoff Solar Park Upington Solar PV8.9 TOTAL417.1

Preferred Bidders Salient Terms Solar Photovoltaic 12 Bid Window 2Bid Window 1 Price: Fully Indexed (Ave Rand per MWh) R 1 645R MW allocation417 MW 632 MW Total Project Cost (Rmillion)R R Local Content Value (Rmillion)R5 727R6 261 Local Content %47.5% 28.5% Job Creation : Construction (People) Job Creation : Operations (People)

Preferred Bidders Wind 13 IPPIDProject Name MW 014 Gouda Wind Facility Amakhala Emoyeni (Phase 1) Eastern Cape Tsitsikamma Community Wind Farm West Coast Waainek Grassridge Chaba20.6 TOTAL562.5

Preferred Bidders Salient Terms Wind 14 Bid Window 2Bid Window 1 Price: Fully Indexed (Ave Rand per MWh) R 897R MW allocation563 MW 634 MW Total Project Cost (Rmillion)R R Local Content Value (Rmillion)R 4 001R Local Content %36.7% 21.7% Job Creation : Construction (People) Job Creation : Operations (People) 65128

Preferred Bidders Small Hydro 15 IPPIDProject Name MW 490Stortemelk Hydro (Pty) Ltd Neusberg Hydro Electric Project A 10.0 TOTAL 14.3

Preferred Bidders Salient Terms Small Hydro 16 Bid Window 2Bid Window 1 Price: Fully Indexed (Ave Rand per MWh) R 1 030N/A MW allocation14 MW N/A Total Project Cost (Rmillion)R 631 N/A Local Content Value (Rmillion)R 421N/A Local Content %66.7%N/A Job Creation : Construction (People) 261 N/A Job Creation : Operations (People) 7 N/A

Preferred Bidder Concentrated Solar Power 17 IPPIDProject Name MW 002Bokpoort CSP Project50.0 TOTAL 50.0

Preferred Bidder Salient Terms Concentrated Solar Power 18 Bid Window 2Bid Window 1 Price: Fully Indexed (Ave Rand per MWh) R 2 512R MW allocation50 MW 150 MW Total Project Cost (Rmillion)R R Local Content Value (Rmillion)R 1 638R Local Content %36.5% 21.0% Job Creation : Construction (People) Job Creation : Operations (People) 5070

Preferred Bidders Job creation per Province 19 Description Jobs during construction period Jobs during operations period BW2 Eastern Cape Province Free State Province Limpopo Province 00 Northern Cape Province North-West Province 00 Western Cape Province TOTAL

Preferred Bidders Investment per Province 20 Description Total Project Cost (ZAR million) Local content value (ZAR million) Northern Cape Eastern Cape Western Cape Free State TOTAL

Analysis of MW allocation and remaining MW Technology MW allocation in accordance with the Determination MW capacity allocated in the First Bid Submission Phase MW capacity allocated in the Second Bid Submission Phase MW capacity for allocation in future Bid Submission Phases Onshore wind MW634.0 MW562.5 MW MW Solar photovoltaic MW631.5 MW417.1 MW MW Concentrated solar power MW150.0 MW50.0 MW 0.0 MW Small hydro ( 10MW)75.0 MW0.0 MW14.3 MW 60.7 MW Landfill gas25.0 MW0.0 MW 25.0 MW Biomass12.5 MW0.0 MW 12.5 MW Biogas12.5 MW0.0 MW 12.5 MW Total MW MW MW MW

Preferred Bidders Geographic Distribution 22

THANK YOU 23