PRESENTATION

6,600 MW Gaddani Pakistan Power Park

N A ZUBERICHIEF EXECUTIVE OFFICER

PAKISTAN POWER PARK MANAGEMENT COMPANY LIMITEDNov 18, 2013

CONTENTS

2

Power Demand and Supply

Why Power Park at Gaddani

Salient Features of Pakistan Power Park at Gaddani Park

Conceptual Layout

Business Model

Projects Parameters

Cost Estimates

Investors Interest

Progress on Pakistan Power Park at Gaddani

POWER DEMAND & SUPPLY ANALYSIS

3

NTDC has projected a demand of 31,757 MW by the year 2020.

During Year 2012:

Maximum Capability of the system was 18477 MW (4th October 2012)

Maximum Demand was 18940 (23rd June 2012)

Maximum Supply was 14,756 MW (August 2012)

Maximum Load shedding was 8393 MW (17th June 2012)

Even if the maximum capability of 18477 MW is assumed, the country would still

need additional 13310 MW (net) be required by the year 2020.

Therefore there is need to evolve a blue print for development of base load mega

projects private sector or public Sector

POWER PARK INITIATIVE

4

Problem: Huge shortfall in base load of approx. 10,000 MWs by 2020

Hydropower: Although cheap in the long run, but suffers from

Long gestation period

Seasonality and plant factor of 50% or less

Gas: Imported gas, LNG, is much more expensive than coal.

Solution: Only Coal or Nuclear power can address this deficit.

Coal is only viable option.

WHY POWER PARK AT GADDANI

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Salient Features of the Location:

Gaddani has been earlier recommended by three reputable independent

consultants:

For Wapda: Study conducted by Shanigan Integ in 1986 for 4,000

MWs

For Mitsui/Malakoff: Study by Sargent & Lundy in 2006 for 1,200

MWs

For AES Corp: Study by PB Power in 2006 for another 1,200 MWs

AES and Mitsui recommended 660 MWs, supercritical, pulverized coal platform.

Gaddani potential: Approximately 6,600 MW

PAKISTAN POWER PARK – APPROVAL /SALIENT FEATURES

6

The Prime Minister of Pakistan approved the concept of 6600 Pakistan Power

Park at Gaddani on July 26, 2013.

The Pakistan Power Park will have

Dedicated jetty, 2x 660 MWs in Public Sector 8x 660 MWs to be developed as IPPs and Common facilities of jetty, coal conveyer system, cooling water,

switchyard, ash disposal, transmission infrastructure and residential

facilities. Pakistan Power Park Management Company Limited (PPPMCL) will be

responsible for developing and maintaining all infrastructure at Pakistan

Power Park.

Future

Expansions

Future

Expansions

Jetty

660 MW Public Sector

Housing &

Amenities

Comm

on Switchyard

660 MW IPP

660 MW IPP

660 MW IPP

660 MW IPP

660 MW IPP

Common Water SupplyAsh D

isposal and Recycling it into Useful By Products

Cooling Water Intake660 MW

Public Sector

660 MW IPP

Conveyers

Shipping and Coal Supplier

Separate Coal Storages (Live) for each IPP(m

aintained by each IPP separately)

Pakistan Power Park: Typical ConfigurationSubject to Consultant’s review.

Brea

kwat

er

660 MW IPP

660 MWIPP

CONCEPTUAL VIEW OF POWER PARK

COAL DELIVERY SCHEME

10

Pakistan Power Management Company

- Jetty- Cooling Water- Land- Switch Yard

IPPs PPIB

CPPA

Coal Supplier

Service Sharing Agreement

IA

PPA

CSA

GoBLand

GoP

NTDCTransmission Line

CSA: Coal Supply AgreementPPA: Power Purchase AgreementIA: Implementation Agreement

BUSINESS MODEL

1,800 Acres

Pakistan

Power Park

Figures are Approximations. Not drawn to scale. Land ownership, public /

private, might have changed..

About 5000 acres of land will be required for Pakistan Power Park.

GOB to provide land as equity in Project company.

THE PROJECT SITE

69.61%30.40%

GOVERNMENT LAND

PRIVATE LAND

LAND AREA (acres) PERCENTAGE

GOVERNMENT 3828.30 69.61%

PRIVATE 1672 30.40%

44.64%23.28%

32.08%GOVERNMENT LAND

PRIVATE LAND

PERAC LAND

LAND AREA (acres) PERCENTAGE

GOVERNMENT 2455.49 44.64%

PRIVATE 1280.70 23.28%

PERAC (State Petroleum Refining & Petrochemical Corporation Iran-Pakistan)

1764.4 32.08%

AREA IN PERCENTAGEAREA IN PERCENTAGE

LAND OWNERSHIPCLASSIFICATION

LAND OWNERSHIPCLASSIFICATION

Indicative parameters based on previous studies at Gaddani

Land 5000 Acres

Coal Requirements;

10 x 660 MW 20 Million Tons

Coal Consumption 0.335 Kg/Kwh

At 80% Plant Factor 4242 Tons/day

At 60% Plant .Factor 3182 Tons/day

Coal Calorific Value 6117 k.cal/kg

Quantity of Ash 9.25 Million Tons/Year (at 80% P.F)

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PARAMETERS OF POWER PARK AT GADDAI

Water Requirements for Gaddani Power Park

Cooling Water flow to Condenser 7931 cusec

Sea water flow to desalination 25 cusec

Potable Water Supply to Plant 2.452 cusec

Waste Water Flow 17.657 cusec

Total 7965 cusec

Plan Efficiency 42%

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PARAMETERS OF POWER PARK AT GADDAI

Sea Depth

Distance from Shore Line Sea Depth

1.7 km 5 m

3.5 km 10 m

5.25 km 15 m

7.0 km 20 m

Ship Size Panamax Capsize

Pana Max 60,000 Tons 100,000

Tons

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PARAMERTERS OF POWER PARK AT GADDANI

Khuzdar

600 KV HVDC

600 KV HVDC

600 KV HVDC

NTDC: Proposed Park Power Evacuation Plan

JAMSHORO

Pakistan Power Park: Major Components

Jetty and related marine infrastructure USD 500 – 700 million

Park’s onshore infrastructure USD 100 million

Transmission Line USD 3 – 4.43 billion

2x660 MW Project in public sector USD 1.8 billion

8x660 MW Projects in private sector USD 7.2 billion

Total USD 13.8 billion

Note: These are very Preliminary and Rough Estimates and will change considerably as design is finalized and costs are firmed up.

INDICATIVE INVESTMENT ESTIMATES

Steering Committee

Overseeing

Under Prime Minister

Transmission Line

Gaddani-Lhr. Fsd 600 KV HVDC

NTDC

Power in Public Sector

2 x 660 MW & Import of Coal

GENCO

PPPMCL

Dev., Operation & Maintenance of Park

BOD, CEO, PD

Power in Private Sector

8 x 600 MW & Import of Coal

IPPs

PAKISTAN POWER PARKRESPONSIBILITIES

Prime Minister of Pakistan Chairman

Federal Finance Minister Member

Federal Minister for Water & Power Member

Federal Minister for Petroleum & NR Member

Chief Minister Balochistan Member

Special Assistant to Prime Minister Member

Mr. Shaukat Tarin Member

Secretary Water & Power Member

STEERING COMMITTEE

Exemption from Corporate Income Tax, Turnover Tax and Withholding Tax, no Sales Tax, only 5% concessionary Import Duty on plant & equipment not manufactured locally

GOP Guarantees obligations of power purchaser and provinces

GOP provides protection against Political Force Majeure, change in law and Change in duties & taxes

GOP allows 18% Return on Equity for coal based power projects.

Payment of compensation in case of termination due to GOP Event of Default

Tariff adjustments for variation in currency exchange rates and fuel prices

Tariff indexation for inflation (US CPI & Pak WPI)

Government ensures conversion of Pak Rupee & remittance of foreign exchange for project-related payments

Standardised Implementation and Power Purchase Agreements clearly delineating risks between various stake holders.

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INCENTIVES FOR INVESTORS INTERESTED IN DEVELOPMENT OF POWER PROJECTS AT PAKISTAN POWER PARK GADDANI

International Competitive Bidding

Pursuant to Guidelines 2010

Upfront Tariff to be Determined by NEPRA for Gaddani Power Park

MODALITIES FOR PROCESSING PRIVATE POWER PROJECTS

PAKISTAN POWER PARK: INVESTOR INTEREST (1/3)

Following Investors have shown interest in power projects in Gaddani Power Park

offices: JV M/s Qatar Investment Company (QINVEST) SEPCO III Electric Power Construction Corporation, Senior Officers Power Construction Corporation of China, Senior Officers Doosan Power Systems India Pct. Ltd., Senior Officers Hyundai Engineering Co. Ltd., Senior Officers NEXIF (InfraCo) Management Pte. Ltd. Seniors Officers Tritek Engineering (Pvt) Ltd., Senior Officers Premium Energy, Senior Officers Harbin Electric International Co. Ltd., Senior Officers China Gezhouba Group Corporation, Senior Officers Mitsui & Company Ltd., Senior Officers House of Habib Karachi M/s J-Energy (M/s Bright Eagle Enterprises Group Limited) M/s Galaxy Renewable Electric Co. (Pvt.) Limited

M/s China Energy Engineering Group Co. Ltd M/s Global Benefit Sdn. Bhd. Nippon Koei Co. Ltd. China National Electric Equipment Corporation (CNEEC) Group of Investors from Italy Eurocon International General Trading (LLC) Nurol Group Turkey Techno Promo Export - Russian Viviridis JCP Group – China Fauji Fertilizer Company Limited Pows China International Inter Rao Engineering Taba Group, Karachi Ali Baqr Dubai China Power International Nishat Group of Companies

PAKISTAN POWER PARK: INVESTOR INTEREST (2/3)

Following Investors visited PPPMCL office:

SEPCO III Electric Power Construction Corporation, Senior Officers

Power Construction Corporation of China, Senior Officers

Doosan Power Systems India Pct. Ltd., Senior Officers

Hyundai Engineering Co. Ltd., Senior Officers

NEXIF (InfraCo) Management Pte. Ltd. Seniors Officers

Tritek Engineering (Pvt) Ltd., Senior Officers

Premium Energy, Senior Officers

Harbin Electric International Co. Ltd., Senior Officers

China Gezhouba Group Corporation, Senior Officers

Mitsui & Company Ltd., Senior Officers

PAKISTAN POWER PARK: INVESTOR INTEREST (3/3)

Momentum generated

NESPAK hired as the Consultant who has

completed Site Survey, Topographic Survey, and

Revenue Survey; whereas it has started preparation

of Master Plan & Feasibility study

GoB work on land acquisition in progress.

A committee has been constituted to formulate

Private Power Transmission Policy

Many Investors have approached PPIB for issuance

of LOI/LOS.

PROGRESS – POWER PARK AT GADDANI

Thank You

PAKISTAN POWER PARK