1. 1 Oman Economic Forum Shangri La’s Resort 13-14 April 2008 “ Investment opportunity in the Electricity and Related Water sector ” Mohammed Al-Mahrouqi Oman Economic Forum Shangri La’s Resort 13-14 April 2008 “ Investment opportunity in the Electricity and Related Water sector ” Mohammed Al-Mahrouqi Chairman Public Authority for Electricity & Water Sultanate of Oman March 2005

2. Slide - 2 - Presentation Outline New Regulatory Framework Private sector participation in the Electricity and related water projects New opportunities in the sector.

3. Slide - 3 - New Regulatory Framework Key Law: 1.Sector Law Royal Decree No. 78/2004 Law for the Regulation and Privatization of the Electricity and Related Water Sector Official Gazette #772, August 1 st, 2004 Transfer Scheme Intended to promote: private sector participation competition All generation, transmission & distribution privatized High level of transparency in the business Independent “Authority for Electricity Regulation, Oman” Official start date: May 1 st, 2005

4. Slide - 4 - Power & Water Procurement Company New Industry Structure - Ownership Transmission & Dispatch Company Manah Rusail Wadi Jizzi Al Kamil Barka I Ghubrah Distribution Supply (Muscat) CUSTOMERSCUSTOMERS Ministry of Finance Distribution Supply (Mazoon) Distribution Supply (Majan) Electricity Holding Company Denotes 100 per cent ownership After privatisation Generation & Desalination DistributionSupply Rural Areas Electricity Company Barka II Salalah Power System Integrated Concession Sohar

5. Slide - 5 - Privatization Trend PSEG2001240 MWIntegrated Utility Salalah AES2000427 MW 20 mgd Gas CCGT: MFS: Barka Int. Power2000285 MWGas OCGTAl Kamil Tractebel1999190 MWGas OCGTManah – Phase 2 Tractebel199490 MWGas OCGTManah – Phase 1 Lead DeveloperAwardedOutputTypeProject Gas CCGT: 677 MW Barka II RO: 26 mgd 2009 Tractebel Gas CCGT: 585 MW Sohar MFS: 33 mgd 2004 Tractebel RusailGas OCGT684 MW2007Tractebel

6. Slide - 6 - Privatization Trend in Oman ‘96 InstalledCapacityMegawatts 2000 1000 ‘00 Phase 1 – Manah IPP Phase 2 – Manah IPP ‘02 Al Kamil IPP Barka IWPP + 20 MGD ‘03 Salalah Power Concession (BOOT) 90 MW 270 MW 560 MW 1,227 MW Privatization Trend Year Private Investment Total: 2, 384M USD Foreign: 1,700M USD ‘07 1,812 MW ‘09 Sohar IWPP + 33 MGD Barka 2 IWPP + 26 MGD 2,489 MW

7. Slide - 7 - Market Reaction United Power Company Kamil Power Company AES Barka Power Company Dhofar Power Company IPO Issue DateDec 1994Aug 2004Dec 2004April 2005 Issue Price1.0001.7100.9801.420 Price Range (52 weeks) 1.390 0.780 1.760 1.580 1.940 1.760 2.4 1.8 High Low Four Power Companies on Muscat Securities Market: Prices quoted are in Rial Omanis (RO). Price range as of Dec, 2007

8. Slide - 8 - Why Invest in Oman Four Major Reasons: Investment Climate Market Liberalization Power Load Growth 1. 2. 3. Progressing very well Demonstrated commitment Continues to be attractive Foreign investment welcomed 6% to 8% last 3 yrs More opportunities Solid Infrastructure Comprehensive restructuring Secure gas supply 4. New Independent Water & Power Project Salalah 2010 North 2011 Gubrah 2012 Doqum2015 New Project

9. Slide - 9 - New Project New Salalah IWPP 370 to 430 MW 15+ million gallons/day Location in Taqah Apr ‘11 COD Early Power in ‘10 New Green Field - I(W)PP 750 to 1000 MW Not Confirmed Barka or Sohar 2011 - 2012 Re- Development Of Al Ghubrah Additional up to 500 MW 25 MIGD Ghubrah 2011 - 2012 New IWPP in Duqum Up to 1000 MW Water Capacity (to br confirmed) Doqum 2014 - 2015

10. THANK YOU Slide - 10 -