shahid naeem, ceo & chairman [email protected] access energy tarzana, ca 91356 p: 310...
TRANSCRIPT
Shahid Naeem, CEO & Chairman
Access Energy
Tarzana, CA 91356
P: 310 776 7180
F: 310 859 7909
www.ae-accessenergy.com
AE & the Team
The Wind Assessment
The Site
Market Advantages
INDEX
Financial and Fiscal Incentives
The Host Country
Use of Funds
Project Cost
Revenues
The Project
Wind Energy Project
The Project: 50MW to Start…
• Build, Own, and Operate (BOO) wind farm in Gharo, Pakistan. • 1,000 MW, to be developed in phases of 10 - 50 MW.• Land has been specifically assigned.• 4 years wind data collected and analyzed: optimal wind speed for
commercial wind power development in the area. • Full Pass-through tariff approved.• Approved tariffs through 2012 over US 14.2 cents /kwh levelized.• 10 year tax holiday on all revenue and no excise duty on imports
relating to the project. • 20 years PPA backed by the sovereign guarantee of the Government of
Pakistan and available full OPIC guarantee. • The PPA will impose an effective “take-or-pay” obligation on the
purchaser. • All revenue projections are based upon minimum production guaranteed
by wind turbine manufacturer.• Pakistan is a signatory country of the Kyoto Agreement; therefore the
project would qualify for Carbon Credits under the Clean Development
Mechanism.
1,000 MW wind farm in one of the world’s fastest growing economies - Pakistan
Pakistan -- a New Frontier Country
• Population: approx. 167 million¹.
• Rapidly growing -- GDP of more than $500 billion¹.
• Rapidly growing economy while power availability remains of strategic importance².
• Approx. 50% of world population resides within 2000 mile radius
• Main corridor for supplies to Central Asian Republics and Western China
¹ (Source: CIA World Factbook)² (Source: Pakistan Private Investment Board)³ (Source: Karachi Stock Exchange)
World Bank Ranks PakistanHigher than China and India
- CEO, US/Pakistani dual national with strong political and personal relationships. Over 30 Years experience in Business
- Project Manager, US/Pakistani dual national with 30 years international and Pakistani experience in Power Generation Projects
- Country Manager, experience in procurement and strong connection with government officers
- Technical Advisor, ex-WAPDA Executive
Pakistan Ranked higher than China or India!
Keys Components for a Successful Wind Farm Project
Key Components Pakistan North America and Europe
Development Cost
Permitting and Licensing 1 Window Operation – AEDB Several Local, State and Federal/Union
Regulations 1 Window Operation – AEDB Several Local, State and Federal/Union
Land Use Regulation 1 Window Operation – AEDB Several Local and federal/Union Zoning and permitting
Construction Regulations 1 Window Operation – AEDB Several Local and Federal/Union Building Permits, storm-water
Environmental and Other Regulations
1 Window Operation – AEDB Several Local Mini-NEPs,and Federal/Union FAA
Equipment Not Applicable Not Applicable
Construction $ 100/month per technician $ 6000/month per technician
PPA 20 Years PPA Market Pricing or very Short term PPAs
Tariff Pass-throughLatest approved between 12-14 c/kwh
Average of 6-8 c/kwh
Contractual Guarantees Political Risk Insurance and strong contractual guarantees backup by international agency
No Government or multilateral guarantees on the contracts
Wind Resources Off Taker assumes all wind risk Not Applicable
AE’s Competitive Advantages in Wind Power in PK
Wind Energy = New Industry in Pakistan
Very Rapid Growth of the Wind Industry
• Few players in the industry. Market leaders are engaged in their traditional markets.
• Pakistan is an Untapped Niche.
Pakistan = Large Expansion Potential
• 17,000 MW of planned capacity by the year 2020.
• Flexible regulatory framework.
• Pakistan is an Untapped Niche.
• Big players are concentrated on the main geographic markets.
• Pakistan is an Untapped Niche.
An opportunity to HELP a community,
BUILD the Industry,
and
DOMINATE the Market!
• CEO: Over 25 years of experience in New Business Development, Renewable Energy,
Manufacturing, Debt & International Financing, International Negotiations, Executive
Management, and Consulting in both Public and Private sectors.
• Country Manager: Served in the Pakistan Army for over 30 years, holding high honors and
retiring from the Director General position for Information Systems. He then served as an
advisor and consultant on Pakistan power and communication projects and as Vice President
for Shahzad International’s Information Technology, Telecom and Power Division. Over 30
years of experience in Electrical Engineering,
• Chief Technical Officer: Over 30 years of experience in Planning and Design, including
procurement, contract and construction management of hydro & thermal power plants,
distribution and transmission systems; steel and cement projects in WAPDA, General
Electricity Company of Libya, Pakistan Steel Mills, Javedan Cement, NESPAK, etc. in
collaboration with engineers from the United States, United Kingdom, Soviet Union, and India.
• CPA: U.S. and International accounting expertise.
• Strong Management Team
• Effective Project Manager
• Experienced Legal Advisory Team
• Diversified and Qualified Board of Directors
• Reputable EPC and Turbines Suppliers and Contractors
• Strong Key Consultants
• Top-level Scientific Advisory Board
The TeamStrong Technical/Management Team
• Strong Technical Management Team
• Effective Project Manager
• Experienced Legal Advisory Team
• Diversified and Qualified Board of Directors
• Reputable EPC and Turbines Suppliers and Contractors
• Strong Key Consultants
• Top-level Scientific Advisory Board
Over 25 years of experience in Engineering, Operations Management, and Project Development on the Energy and Power Generation sector. He has been Vice President of Energy, Engineering, and Technical Development for an industrial development group in the US Virgin Islands, Vice President of Project Development for Energy Answers International, LLC., CEO of Liberty Power Ltd., Pakistan, and Chief Engineer at Ogden Services, Inc.
He has been responsible for the implementation of a $300 million Independent Power Plant while utilizing international financing and employing a multi-national team. He was also responsible for a 2,200 TPD Waste-to-Energy, 72-Megawatt Stream Cogeneration facility, and also a 3,000 TPD Waste-to-Energy, 80-Megawatt electricity facility.
He has authored a significant number of technical articles and has several professional associations: American Society of Mechanical Engineers (ASME), Board Certified Environmental Engineer in the American Academy of Environmental Engineers (BCEE), Diplomat American Academy of Environmental Engineers (DEE), Registered Professional Engineer (PE), and Registered Environmental Manager (REM).
Effective Project Manager
The Team
• Strong Technical/Management Team
• Effective Project Manager
• Experienced Legal Advisory Team
• Diversified and Qualified Board of Directors
• Reputable EPC and Turbines Suppliers and Contractors
• Strong Key Consultants
• Top-level Scientific Advisory Board
• Pillsbury Winthrop Shaw Pittman LLP. - Vast experience in International Infrastructure and Energy Projects.
- PPA Negotiations.
- International Contracts and Law Specialization.
• Kundi & Kundi (PK): - Local and International Contracts.
- Strong relationship with the Government.
- Successful experience in PPA and IPP Negotiations.
Experienced Legal Advisory Team
The Team
• Strong Technical/Management Team
• Effective Project Manager
• Experienced Legal Advisory Team
• Diversified and Qualified Board of Directors
• Reputable EPC and Turbines Suppliers and Contractors
• Strong Key Consultants
• Top-level Scientific Advisory Board
• Air Marshal Shahid Hamid – Ex-Vice President of the World Wind Energy Association, Chairman of Pakistan Wind Energy Association, Ex Chairman of 'Kamra Aeronautical Complex” and “Alternative Energy Development Board”, and one of the pioneers and early supporters of the Wind Industry in Pakistan.
• Adriano Marconetto – Strong track record in dealing with company IPOs. 15 years of experience as an Entrepreneur, and in advancing company IPOs. Co-founder of two successful renewable energy start-ups -- Pianeta and Electro Power Systems. Founded Vitaminic SpA, the leading European online music company, and listed the company on Nuovo Mercato in 2000.
• Shahid Naeem – Over 35 years of experience in New Business Development, Renewable Energy, Finance, Executive Management, and Consulting in the Public and Private sectors.
Diversified and Qualified Board of Directors
The Team
• Strong Technical/Management Team
• Effective Project Manager
• Experienced Legal Advisory Team
• Diversified and Qualified Board of Directors
• Reputable EPC and Turbines Suppliers and Contractors
• Strong Key Consultants
• Top-level Scientific Advisory Board
• GE• Nordic• Siemens• FEW International• SpeedWays• BBB
Reputable EPC, Turbines Suppliers and Contractors
The Team
• Strong Technical/Management Team
• Effective Project Manager
• Experienced Legal Advisory Team
• Diversified and Qualified Board of Directors
• Reputable EPC and Turbines Suppliers and Contractors
• Strong Key Consultants
• Top-level Scientific Advisory Board
• Garrard Hassan• BBB• API• Ecosecurity• Alliant Energy• Marsh USA• First Wall Street• Strategic Wealth
Strong Key Consultants
The Team
• Strong Technical/Management Team
• Effective Project Manager
• Experienced Legal Advisory Team
• Diversified and Qualified Board of Directors
• Reputable EPC and Turbines Suppliers and Contractors
• Strong Key Consultants
• Top-level Scientific Advisory Board to
Prof. Mark Z. Jacobsen: Stanford University - Civil Engineering, Economics, Environmental Engineering, Atmospheric Sciences.
Dr. Christina Lozej Archer: Stanford University - Civil & Environmental Engineering, Meteorology, Environmental Fluid Mechanics and Hydrology.
Top-level Scientific Advisory Board
The Team
The Wind AssessmentData collected throughout the years of 2003 - 2006 at the project site, the Meteorological Department,
and Karachi International Airport.
Wind Corridor with 40,000-50,000 MW Potential
Average Wind Speeds
• Average wind speed at 50 m: 7.09 m/s, but can reach up to 11.28 m/s.
• Winds unobstructed from the predominant wind direction.
• No chance of future construction that would obstruct the wind’s path to the Wind Farm.
Average Wind Speed in Gharo at 50m
0
2
4
6
8
10
12
Months
Av
era
ge
Sp
ee
d (
m/s
)
Average Monthly Speed 4.85 5.41 5.37 7.82 10.53 8.89 11.28 7.87 8.73 5.19 4.33 4.82
Yearly Average Speed 7.09 7.09 7.09 7.09 7.09 7.09 7.09 7.09 7.09 7.09 7.09 7.09
J an Feb Marc April May J une J uly Aug Sept Oct Nov Dec
Peak wind period coincides with summer’s high-electricity demand
Financial Incentives
• Non-residents are allowed to purchase securities issued by Pakistani companies
• All future cost increases are pass through
• Sovereign Guarantee for payment
• OPIC guarantee for Political and or security risk
Fiscal Incentives
• 0% duty on imports of Renewable Energy plant supplies and equipment.
• No levy of sales tax on RE plant, machinery, and equipment.
• Exemption from income tax including turnover rate tax and withholding tax.
• Full Repatriation of equity and dividends is allowed.
• 10 year tax holiday.
Revenues First 50 MW (first 10 years)
FIGURES FOR 50 MW
Income Statement (000s) 1 2 3 4 5 6 7 8 9 10
Total Revenue 32,308 32,308 32,308 32,308 32,308 32,308 32,308 32,308 32,308 32,308
Gross Profit 31,629 31,629 31,629 31,629 31,629 31,629 31,629 31,629 31,629 31,629
EBITDA 29,118 29,118 29,118 29,118 29,118 29,118 30,731 30,731 30,731 30,731
Performa Income Statement
Use of Funds
AE is seeking US $ 3 million short term investment fromaccredited investors for a maximum period of two years at
15% preferred return convertible to equity in the project at a preferred rate.
EPC Payment $ 650,000Land Lease 475,000Administrative 350,000Generation License 175,000OPIC 150,000Legal Fees For PPA and IA 1,050,000Travel 150,000
Total $ 3,000,000
Proposed Investment
Ideal Wind and Site Conditions
Minimum Regulatory Control
Strong Political Will
Experienced Technical Partners and Team
Full Insurance Coverage for Political and or Security
Risk
20 Years Power Purchase Agreement…Makes it One of the Best Wind Projects in the World!
Shahid Naeem CEO & Chairman of the Board
Cliff Morgan
Financial Advisor