1. Project Development Decision Tree PermittingIn-house Reqmts.Energy SalesFuel Consumption Plant Configuration Risk AssessmentCapital Costs Schedule Constraints Project Delivery System Project Financing Project Revenue Quality and Cost Mgmt. Risk and Interface Mgmt.Time Phased Progress Coordinated Agreements Control, Flexibility Reqmts.Cost and Schedule Risk

2. Owner’s Basic Project Management Functions Permitting and Reg. Compliance Fuel & Energy Agreements Utility Coordination & Interfaces Financing Draw Certifications Contractor Progress Payments Submittals & Design Review Project Risk Mgmt. Existing Facility Interface & Coord. Contract Change Orders & Claims Coord. Owner’s Suppliers, Contractors O&M Training & Documents Purchase Consumables, Spares, Tools Project Counsel Interface DevelopmentDeliveryComm. Ops.

3. Project Delivery Contract Framework EPC Owner Engineering, Procurement & Construction Contractor Trade Subs Material Suppliers Equip. Rentals Specialty Subs Service Providers Commissioning and Testing Services Equipment Suppliers Submittal Coordination Field based Engrg. Support Design Documents Production Notes: 1.Owner’s flexibility and control during project delivery are limited by “turnkey” nature of EPC agreements: offsetting contractor’s assumption of liability for timely and within-cost performance. 2.Owner’s project management responsibilities are least among contracting options. 3.Fixed price and schedule depend on fully developed equipment and design specifications, site and permitting data included in the contract documents. Basic Proj. Mgmt. Functions

4. Project Delivery Contract Framework Design – Bid - Build Architect / Engr Owner Constructor Trade Subs Material Suppliers Equip. Rentals Specialty Subs Service Providers Commissioning and Testing Services Equipment Suppliers Submittal Coordination Field based Engrg. Support Design Documents Production Notes: 1.Owner assumes burden of coordination and liability for performance of both designer and builder. 2.Owner preserves flexibility during design and equipment selection; later engaging constructor, generally resulting in longer project schedule compared to EPC configuration. 3.Owner logically takes on engineered equip. purchase and commissioning responsibilities, thus requiring robust technical and commercial team. 4.Owner captures cost saving with reduced contractor risk and scope compared to EPC configuration. Basic Proj. Mgmt. Functions Plus Procurement, Engineering and Site Admin.

5. Project Delivery Contract Framework Design – Build Architect / Engr Owner Trade Subs Material Suppliers Equip. Rentals Specialty Subs Service Providers Commissioning and Testing Services Equipment Suppliers Submittal Coordination Field based Engrg. Support Design Documents Production Notes: 1.Shorter Schedule and contained cost depend on successful coordination between Contractor and its designer. 2.Owner retains less control and risks design compromise in favor of Contractor’s interests. 3.Owner may require more robust team depending on allocation of scope of supply and start-up work. Contractor Basic Proj. Mgmt. Functions Plus Technical Compliance Team

6. Project Delivery Contract Framework Multiple Primes Architect / Engr Owner Co-PrimeContractor Trade Subs Material SuppliersEquip. Rentals Specialty SubsService Providers Commissioning and Testing Services Equipment Suppliers Submittal Coordination Field based Engrg. Support Design Documents Production Notes: 1.Robust field management team and precisely coordinated prime contracts ensure orderly progress by horizontal organization, mitigation of potential claims and project delays, and delivery of quality project to commercial operation. 2.Owner control is maximized, and allocation of risk and scope is flexible. Co-PrimeContractor Basic Proj. Mgmt. Functions Plus Robust Field Mgmt. Team Plus Coord. Multiple Contractors

7. Project Delivery Contract Framework Construction Manager At Risk Architect / Engr Owner Construction Mgr. At Risk Trade Subs Material Suppliers Equip. Rentals Specialty Subs Service Providers Commissioning and Testing Services Equipment Suppliers Submittal Coordination Field based Engrg. Support Design Documents Production Notes: 1.Owner allocates construction work progress, payment and coordinaton responsibilities to C.M. At-Risk, but retains coordination of design documents, major equipment deliveries, and commissioning works. 2.Owner is required to have less on-site presence than multiple-primes configuration, and maintains high degree of control and flexibility in all areas. 3.Differing from Design-Bid-Build arrangement, Owner retains C.M. during design phase and benefits from continuity of his expertise throughout project completion. Basic Proj. Mgmt. Functions Plus Procurement, Engineering and Site Admin.

8. Project Delivery Contract Framework Construction Manager - Agent Architect / Engr Owner Constructor Trade Subs Material Suppliers Equip. Rentals Specialty Subs Service Providers Commissioning and Testing Services Equipment Suppliers Submittal Coordination Field based Engrg. Support Design Documents Production Notes: 1.Owner retains contract risks of multiple-primes configuration and relies on C.M. Agent to coordinate design and supply logistics with construction requirements and constraints. 2.Owner retains robust project team, flexibility and control over project operations. Constr. Mgr. Agent Basic Proj. Mgmt. Functions Plus Procurement, Engineering and Site Admin.

9. Project Development Milestones Preceding Project Delivery Structure Formation Capital Justification, Consolidation of Project Objectives & Strategy Decisions Preliminary Design Docs – Cycles, Schematics, Gen. Arrangements, Site Plan Equipment Specifications and Purchase Forms Site Plan, Geotech, U/G Utilities, Existing As-Built & Infrastructure Dwgs. Environmental Permit Applications Energy Sales, Fuel Purchase, Water Supplies Agreements Substantial completion desirable in all cases Conceptualization complete Outline Technical and Commercial Forms

10. Preliminary Project Delivery Documentation Development - 1 Existing Site and Infrastructure Drawings Site plan, Grading and Drainage, Roads and Rights-of Way, Utility Tie-ins, U/G Obstructions Soil Survey and Geotech Report including sample borings As-built U/G Construction Drawings, facility tie-ins, raw water take-off, waste water discharge Preliminary Design Documents Water and Heat balance diagrams Power Distribution Schematics, HV, 15kv, 6kv Project Site Plan including grading and drainage, major equipment foundations, Building outlines, roads, and fuel storage yard Schematic Plant Control Outline and Existing Facility Interfaces Major Foundations Outline Plan including piling and U/G services Civil and Structural Specifications for concrete, Buildings, Foundations, Structural Steel, Fencing, Erosion Prevention, Electrical Specifications relating to utility ties, grounding, Major Equipment Specifications including boiler, turbine generator, step-up transformer, fuel conditioning, AQCS, distributive control system General Arrangement Drawing showing piping and raceway routing, access and laydown areas, major equipment location

11. Preliminary Project Delivery Documentation Development - 2 Project Contract Exhibits for each contractor, supplier and service provider Scope of Work Site Conditions Referenced Specifications and Third Party Agreements Site Safety Rules, Work Permits, Security Protocols Coordinated Insurance Requirements Forms of Lien waiver, performance/payment bonds, change orders, payment applications, Special Terms and Conditions Project Contract Outlines tailored to Owner’s business and risk strategy Capture Owner’s commercial & management priorities preserving desired degrees of control, involvement, flexibility and Risk in project delivery process leading to commercial operation. Coordinate terms governing approvals, notices, reporting, technical transfer protocols flowing from other Owner Agreements with utilities, insurers, lenders, sureties, neighbors, and other parties of interest to the project Develop Precise Price and Payment terms ensuring reliable cost and cash flow controls Articulate and coordinate Owner’s preferred commercial approach to: liability, insurance scheme, dispute resolution, choice of law, terminations, events of default and remedies, payment and performance bonding, confidentiality, warranties, among other key elements to be included in contract terms