PRESENTATION 6,600 MW Gaddani Pakistan Power Park N A ZUBERI CHIEF EXECUTIVE OFFICER PAKISTAN POWER PARK MANAGEMENT COMPANY LIMITED Nov 18, 2013 1

CONTENTS 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 2 2

POWER DEMAND & SUPPLY ANALYSIS 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 3 3

POWER PARK INITIATIVE 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. 4 4

WHY POWER PARK AT GADDANI 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 5 5

PAKISTAN POWER PARK – APPROVAL /SALIENT FEATURES 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. 6 6

Conveyers Shipping and Coal Supplier Common Water Supply Shipping and Coal Supplier Ash Disposal and Recycling it into Useful By Products Common Switchyard Housing & Amenities Cooling Water Intake 660 MW Public Sector Separate Coal Storages (Live) for each IPP (maintained by each IPP separately) 660 MW Public Sector 660 MW IPP 660 MW IPP 660 MW IPP Jetty Breakwater 660 MW IPP Conveyers 660 MW IPP 660 MW IPP 660 MW IPP Pakistan Power Park: Typical Configuration Subject to Consultant’s review. 660 MW IPP

CONCEPTUAL VIEW OF POWER PARK

COAL DELIVERY SCHEME

Pakistan Power Management Company Service Sharing Agreement BUSINESS MODEL GoP Pakistan Power Management Company Jetty Cooling Water Land Switch Yard NTDC Transmission Line Land GoB Service Sharing Agreement Coal Supplier IPPs PPIB CSA IA PPA CPPA CSA: Coal Supply Agreement PPA: Power Purchase Agreement IA: Implementation Agreement

Pakistan Power Park Figures are Approximations. Not drawn to scale. Land ownership, public / private, might have changed.. Pakistan Power Park 1,800 Acres

THE PROJECT SITE About 5000 acres of land will be required for Pakistan Power Park. GOB to provide land as equity in Project company. 12

LAND OWNERSHIP CLASSIFICATION LAND OWNERSHIP CLASSIFICATION LAND AREA IN PERCENTAGE AREA IN PERCENTAGE 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% LAND AREA (acres) PERCENTAGE GOVERNMENT 3828.30 69.61% PRIVATE 1672 30.40%

PARAMETERS OF POWER PARK AT GADDAI 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) 15 15 15

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% 16 16 16

PARAMERTERS OF POWER PARK AT GADDANI 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 17 17 17

NTDC: Proposed Park Power Evacuation Plan Khuzdar 600 KV HVDC 600 KV HVDC 600 KV HVDC NTDC: Proposed Park Power Evacuation Plan JAMSHORO

INDICATIVE INVESTMENT ESTIMATES 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.

PAKISTAN POWER PARK RESPONSIBILITIES Steering Committee Overseeing Under Prime Minister Transmission Line Gaddani-Lhr. Fsd 600 KV HVDC NTDC PPPMCL Dev., Operation & Maintenance of Park BOD, CEO, PD Power in Public Sector 2 x 660 MW & Import of Coal GENCO Power in Private Sector 8 x 600 MW & Import of Coal IPPs

STEERING COMMITTEE 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 22

GOP Guarantees obligations of power purchaser and provinces INCENTIVES FOR INVESTORS INTERESTED IN DEVELOPMENT OF POWER PROJECTS AT PAKISTAN POWER PARK GADDANI 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. 23 23 23

MODALITIES FOR PROCESSING PRIVATE POWER PROJECTS International Competitive Bidding Pursuant to Guidelines 2010 Upfront Tariff to be Determined by NEPRA for Gaddani Power Park

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

PAKISTAN POWER PARK: INVESTOR INTEREST (2/3) 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 (3/3) 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

PROGRESS – POWER PARK AT GADDANI 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.

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