1. Symposium on Private Financing for African Power Infrastructure US Treasury Department Washington, DC October 13, 2008

2. InfraCo Overview Development and Investment in Early Stage Infrastructure Projects Privately Managed Infrastructure Development company, Funded by the Private Infrastructure Development Group Creates Privately Financed Bankable Infrastructure Projects, Balancing the Interests of Host Governments, Private Sector Equity Investors and Senior Debt Lenders 2

3. InfraCo Scope of Operations Geographic Focus Sub Sahara Africa DAC I/II Countries (Least Developed and Low Income Countries) Project Focus Greenfield Investment Expansion/Rehabilitation of Existing Facilities Sector Focus Energy & Power Water and Waste water Transportation Acts as a Principal Project Developer InfraCo is not an advisor Leads and Actively Participates in the Development of Projects InfraCo is not a passive funding source Assumes Development Risk InfraCo shoulders the costs and risks of early stage development Geographic Focus Sub Sahara Africa DAC I/II Countries (Least Developed and Low Income Countries) Project Focus Greenfield Investment Expansion/Rehabilitation of Existing Facilities Sector Focus Energy & Power Water and Waste water Transportation Acts as a Principal Project Developer InfraCo is not an advisor Leads and Actively Participates in the Development of Projects InfraCo is not a passive funding source 3

4. Development Process Overview 4

5. Risk Allocation Matrix Power Purchase Agreement Tariff Capacity and Energy Tariff Indexation (Forex and inflation) Completion and Functional Guarantee (output; availability; heat rate) EPC Contract Scope Price and Payment Milestones Delay and Functional Guarantees Liquidated Damages and Performance Security O&M Owner Operated or Outsourced Regular & Major Maintenance Price Protection Availability Guarantees 5 Fuel Supply Minimum Take Price Formula Matching Energy Payment Delivery Risk Security Package Termination Sovereign Guarantee Financial Guarantee: Ring-Fencing Sector Cash Flow More Effective More Controversial Change of Law/ Regulatory Risk Exchange Controls Currency Convertibility/Availability Political Events

6. Typical Project Structure Turnkey Design & Construction Engineering, Equip- ment Procurement, Construction Start-up and Testing 6 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/ Regulatory Issues Operations & Maintenance Regular Operation, Overhaul and Outage Maintenance Project Financing Project Structure Construction Loan Equity/Debt Power Purchase Agreement and Security Package

7. Constraints to Energy Project Development Host Governments Discipline in Execution of Policy Avoid Politicalisation of Projects Realistic Expectations Offtakers (Electric Utilities) Still Not Bankable without Sovereign Guarantee or Other Credit Enhancement Multilaterals and DFIs Review Conditionalities Compatibility with the Host Country Situation Predictability Consistency in Execution Bureaucracy Less Transparency More 7

8. Constraints to Energy Project Development Contractors and Suppliers Market is not Competitive US Contractors: Absent European Contractors: Large Projects Only Asian Contractors: Increasingly Present Local Contractors: o Civil Works: Adequate Local Skills/Capacity Exists o Electro-Mechanical: Reliance on Foreign Skills/Capacity Construction Risk Still High Difficult to Mitigate Frontline Risk 8

9. Constraints to Energy Project Development Private Debt Financing Local Currency Debt Not Enough Competition in Local Market Limited Source of Long-Term Funding Interest Rates Are Very High Hard Currency Debt Short/Medium Term: Closed Except with Enhancement Short-Medium Term Solution Increase Local Currency Guaranty Products Suppliers Credit (ECAs) for Hard Currency 9

10. Constraints to Energy Project Development Strategic Investors Tied to Equipment Supplier, Contractors or Operator Sub-Optimal Alignment of Interests Financial Investors (Private Equity) Better Alignment of Interests Return Requirements: Unrealistic for Power Infrastructure Exit Requirements: Unrealistic for Illiquid Nature of Asset Class 10

11. Africa Private Equity Fundraising - 2007 Worldwide vs Africa Only 4% Natural Resource Driven 56% Infrastructure: 2% Existing Businesses Not Greenfield Sub-Sahara Africa (Ex RSA) 61% Mostly in Commodities $2.34 billion $59.16 billion Worldwide vs Africa Only 4% Natural Resource Driven 56% Infrastructure: 2% Existing Businesses Not Greenfield 11

12. InfraCo Sub-Sahara Infrastructure Fund $300MM Private Equity Fund $100 Million OPIC Loan Approved by OPIC Board in May 2008 $200 Million in Limited Partnership Investments Currently Being Raised ISSIF will Invest Primarily in Projects Developed by InfraCo Geographic Focus Sub Saharan Africa (Excluding South Africa) Transaction Focus Greenfield Infrastructure Sector Focus Power Transportation Water and Sanitation 12