InfraCo Limited Project Structures to Mitigate Risks and Access Capital Regional Electricity Investment Conference September 2005 Windhoek, Namibia

Guiding Principles Are the risks being distributed and allocated to the project participant best capable of assuming this risk? Are there any residual risks assumed by the Project that it does not control

Typical Project Structure Project Financing Project Structure Construction Loan Equity/Debt Energy Purchase Agreements Power User Thermal User Operations & Maintenance Regular Operation, Overhaul And Outage Maintenance Turnkey Design & Construction Engineering, Equipment Procurement, Construction Start-up and Testing Environmental & Other Permitting Permits for Plant, Air, Water, Mining & Ash Disposal Site Control Site Right-of-Ways and Easements Fuel Supply Agreements Primary/Secondary Fuel Sources Transportation Sovereign/Regul atory Issues Project

Power Purchase Agreement Tariff Structure –Capacity –Energy –Foreign Exchange Indexation –Inflation Indexation Term –Longer the Term the Cheaper Capacity Payment –Early Termination and Financing Assumption

Equipment, Procurement & Construction Scope of Work –Interconnection Issues – Handover Contract Price –Currency and Inflation Indexation –Change Orders Guarantees –Output –Heat Rate

Operation &Maintenance Owner Operated –Regular Maintenance Major Maintenance –Term –Price Protection Availability Guarantee

Fuel Supply Plant Operating Characteristics –Minimum Take Price Formula –Matching Energy Payment Delivery Risk Security Package Termination

Sovereign Guarantee Financial Guarantee –Limited Value Ring-Fencing Sector Cash Flow –More Effective –More Controversial Change of Law/ Regulatory Risk Exchange Controls –Covertibility –Availability Political Events –Expropriation

Management Team InfraCo Management Services Limited 12 St James’s Square London SW1Y 4RB Tel: +44 (0) Fax: +44 (0) –Richard Parry Tel: +44 (0) –Gad Cohen Tel: +44 (0) –Ebbe Hamilton Tel: +44 (0) –Tony Clamp Tel: +44 (0) –Jonathan Hoffman Tel: +44 (0)