ken gen ppp seminar presentation

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CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

No part of this report may be circulated, quoted, or reproduced for distribution without prior written approval from KenGen. All the information contained herein was prepared for information only.

CONFIDENTIAL

Disclaimer:

17 May 2012 - Nairobi, Kenya

Eddy Njoroge, MD&CEO of KenGen

Public-Private Partnership KenGen Proposed Models and Projects

Structured Finance - PPP

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2

KenGen Proposed PPP Models2

KenGen’s Proposed Phase I: PPP Projects3

OUTLINE:

Background

Discussions4

1

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3

CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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6

CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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Working Draft - Last Modified 06/01/2008 08:33:51

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7

CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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Working Draft - Last Modified 06/01/2008 08:33:51

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8

CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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Working Draft - Last Modified 06/01/2008 08:33:51

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9

CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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Working Draft - Last Modified 06/01/2008 08:33:51

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10

CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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11

CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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12

Financing KenGen’s Olkaria I & IV 280MW Flagship Projects

Source: KenGen;

With Drilling Costs

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13

Financing KenGen’s Olkaria I & IV 280MW Flagship Projects

Source: KenGen;

Without Drilling Costs

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14

KenGen Proposed PPP Models2

KenGen’s Proposed Phase I: PPP Projects3

OUTLINE:

Background

Discussions4

1

Unit of measure

* FootnoteSource: Source

Working Draft - Last Modified 06/01/2008 08:33:51

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15

CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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16

CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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17

CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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18

CONFIDENTIAL

Document

Date

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from McKinsey & Company. This material was used by McKinsey & Company during an oral presentation; it is not a complete record of the discussion.

Working Draft Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time

Printed 12/03/2007 15:47:35 South Africa Standard Time

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19

KenGen Proposed PPP Models2

KenGen’s Proposed Phase I: PPP Projects3

OUTLINE:

Background

Discussions4

1

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20

Phase I: PPP Project: Muhoroni 80MW Power PlantBOT – Build Operate TransferPPA – Power Purchase Agreement

3

Source: KenGen; TMO

Project Description

1.Name: Muhoroni Thermal Power Plant

2.Capacity: 80MW

3.Estimated Cost: US$ 100 million

4.Economic Life: 20 years

5.Mode: Thermal –Heavy Fuel Oil (HFO)

6.Expected PPP: BOT (Vendor Financing…)

7.Location: Western Kenya

8.Status: 1. Tender documents under preparation2. PPA being prepared

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21

Phase I: PPP Project: Olkaria V 140MW Power PlantBOT – Build Operate TransferPPA – Power Purchase Agreement

3

Source: KenGen; TMO

Project Description

1.Name: Olkaria V Power Plant

2.Capacity: 140MW

3.Estimated Cost: US$ 500 million (~US$ 200m for Power Plant only)

4.Economic Life: 25 years

5.Mode: Geothermal

6.Expected PPP: Joint Venture through an SPV (Special Purpose Vehicle…)

7.Location: Naivasha, Kenya

8.Status: 1. Drilling and Steam Optimization Study -

Completion 20122. PPA being prepared

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22

Phase I: PPP Project: Isiolo Wind Power PlantBOT – Build Operate TransferPPA – Power Purchase Agreement

3

Source: KenGen; TMO

Project Description

1.Name: Isiolo Wind Power Plant

2.Capacity: 150 MW (Phase I: 50MW plus Phase II: 100MW)

3.Estimated Cost: US$ 400 million (Phase I: US$ 130 plus Phase II: US$ 270MW)

4.Economic Life: 20 years

5.Mode: Wind

6.Expected PPP: Joint Venture through an SPV (Special Purpose Vehicle…)

7.Location: Isiolo, Northern Kenya

8.Status: 1. Feasibility Study Completed

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23

Phase I: PPP Project: Liquefied Natural Gas (LNG) Power PlantBOT – Build Operate TransferPPA – Power Purchase Agreement

3

Source: KenGen; TMO

Project Description

1.Name: LNG Power Plant

2.Capacity: 495 MW

3.Estimated Cost: US$ 686 million

4.Economic Life: 20 years

5.Mode: Natural Gas (imported)

6.Expected PPP: BOT

7.Location: Dongo Kundu, Mombasa Kenya

8.Status: 1. Feasibility Study Completed

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24

Phase I: PPP Project: Coal Power PlantBOT – Build Operate TransferPPA – Power Purchase Agreement

3

Source: KenGen; TMO

Project Description

1.Name: Coal Power Plant

2.Capacity: 600 MW

3.Estimated Cost: US$ 1,665 million

4.Economic Life: 20 years

5.Mode: Coal (imported)

6.Expected PPP: Joint Venture through an SPV (Special Purpose Vehicle…)

7.Location: Kilifi, Mombasa Kenya

8.Status: 1. Feasibility Study Completed

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25

Discussions

Kenya USA