InfraCo Developing infrastructure projects to promote sustainable economic growth

1. InfraCo Developing infrastructure projects to promote sustainable economic growth

2. InfraCo • Privately managed infrastructure development company • Funded through the Private Infrastructure Development Group (PIDG) comprising of: • DGIS (Netherlands) • SIDA (Sweden) • SECO (Switzerland) • DFID (United Kingdom) • ADA (Austria) • IrishAid (Ireland) • World Bank • Develops Infrastructure projects in: Energy, Transportation and Water Sectors among others • Geographic focus Sub-Saharan Africa

3. InfraCo in Your Country InfraCo contributes to sustainable Economic Growth: • Actively indentifies viable projects • Provides substantial infrastructure expertise, as well as its own risk capital • Focuses on attainable projects, that will produce social benefits (jobs, improved services and a healthier environment) • Attracts long term capital • Balances the interests of host governments, private sector investors and financiers

4. InfraCo • Acts as a principal project developer: Provides risk capital – InfraCo is not a consultant • Actively participates in project development: InfraCo is not a passive funding source for development expenses • Assumes development risk: Unsuccessful projects – InfraCo loses money • Seeks returns on time and invested capital: At financial closing and through carried interest

5. Major Activities InfraCo uses its expertise and capital to: • Develop a viable business plan and build a financial model • Negotiate long-term anchor tariffs or user agreements to secure sustainable revenues • Develop technical feasibility studies • Provide in-depth cost analysis

6. Major Activities (Cont’d) • Negotiate a fixed-price turnkey, EPC (Engineering, Procurement & Construction) contract • Negotiate the terms and conditions of a financially viable operation and maintenance agreement • Arrange long term equity and debt financing – repayment is solely dependent on the economic success of the Project • Secure all necessary permits for the construction and operation of the Project

7. Deal Structure • EPC Contractor: • Engineering • Procurement • Erection • Civil Construction • Equipment and Services • Long Term Funding: • Equity • Debt Concession Rights EPC Contractor • Owners: • InfraCo; Other Partners • O&M: • Operator • Maintenance SPC (Project Company) Long Term Funding O&M Contractor Permits Land Revenues / Offtakers • Long Term: • Anchor Tenants • PPAs ; etc. • Market: • Short term • Merchant, etc.

8. InfraCo Projects In Zambia Ghana Madagascar Cape Verde Uganda

9. Uganda Project Description General Infrastructure: Power generation and distribution; water supply; transportation (ferry & roads) for an island in Lake Victoria Project Benefits Power: Current dependency on firewood, paraffin and small diesel generation Water: Droughts; insufficient potable water Transportation: Dirt roads not motorable in all weather conditions; ferry traffic exceeds capacity Total Project Cost: USD 40 Million Finance Plan Output Based Aid (OBA) from PIDG: USD3.5 Million Commercial Debt: USD20 Million Credit Enhancement from USAID and GuarantCo: USD12 Million Private Sector Equity: USD16.5 Million 9

10. Cape Verde • Project Description • Wind Power: 30MW in identified wind farm sites on four different Islands • Project Benefits • Make use of the abundant wind resources of the country that are virtually unused • Adding lower cost wind power to the current all-diesel generation portfolio • Reduce harmful emissions from the oil fired plants • Total Project Cost: EUR55 Million • Finance Plan • IDA, EIAF (Loan) • SIDA / GuarantCo (Guarantee to commercial loans) • WB GEF (Grant)

11. Madagascar • Project Description • Bulk and Distributed Water Supply: A supply system to 17 communes surrounding the capital, Antananarivo • Project Benefits • Provides affordable, clean drinking water to populations that do not have access to clean water • Eliminates water-borne diseases • Improvement of general health levels • Provides a new supply of bulk water to Antananarivo used by industrial and domestic consumers • Private management of a PPP • Total Project Cost: USD 50 Million • Finance Plan • Grant funding from OBA • Multilateral and bilateral debt and equity • Local equity

12. Zambia Project Description Irrigated Farm Development: Full business plan development and implementation of holding and operating company, irrigation Infrastructure, and marketing plan for commercial and small scale wheat and soy farming near the Kafue River in central Zambia Project Benefits Economic: Commercial farming operation – wheat and soy production will meet local demand shortages; potential to develop a wheat processing mill Social: Impacts approx. 50,000 residents – increasing local employment levels and overall economic welfare Total Project Cost: USD 25 Million Finance Plan Development costs: InfraCo Land/water rights : Equity contribution by farmers Project Equity: Zambian Development Bank, OBA, USAID Project Debt: Commercial Banks 12

13. Ghana • Project Description • Gas Fired Power Plant: 300 – 400 MW power plant in Tema • Project Benefits • Provide low cost electricity in response to the lack of capacity in the region-currently the capacity shortages are met by inefficient diesel generators • Utilise capacity from the West African gas pipeline and newly discovered natural gas offshore Ghana (Tullow and Anadarko) • Total Project Cost: USD 300 Million • Finance Plan • Multilateral or ECA and commercial banks • Support from EAIF; ERG; Chinese Exim; Credit Swiss among others

14. InfraCo Board • Keith Palmer: Chairman, former Vice Chairman of NM Rothschild & Sons, founder and Chairman of Cambridge Economic Policy Associate, Chairman of the Emerging Africa Infrastructure Fund • Peter Bird: Managing Director of NM Rothschild & Sons • Valentine Chitalu: Former Head of the Zambian Privatization Agency, entrepreneur in Zambia and Southern Africa specializing in private equity • Roger Witcomb: Senior Adviser at Actis (formerly CDC), a private equity fund specializing in emerging markets