Slide Set 2 PwC Mark Hughes

Kosova Lignite PowerInvestors ConferenceJanuary 2010

PricewaterhouseCoopers LLP

Kosova e Re Power Plant ProjectOverview of the Opportunity & Pre-Qualification

PricewaterhouseCoopers LLPJanuary 2010

Slide 3Kosovo Lignite Power

Kosovo Power Supply / Demand Balance

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Kosovo A Kosovo B HPP Ujman HPP Zhur Small HPPs Import / New generation requirement Domestic demand

Introduction to the Kosova Energy StrategyPower demand growth and existing supply

Kosovo A

Kosovo BHPPs

Rehabilitation of Kosovo B



Introduction to the Kosova Energy StrategyLignite resources: Sibovc versus other European Coal Mines



The Lignite Power ProjectKey studies

Study / Task Date CompletedPreparation of a Mid Term Plan for the Development of Existing Coal Mines and a Main Mining Plan for the new Sibovc Mine June 2005

Pre-feasibility studies for new power plant and pollution mitigation measures in Kosovo B [Jaakko Pöyry Group Oyj] February 2006

Preparation of complementary mining plan for Sibovc south west lignite mine [STEAG AG] May 2006

Studies to support the development of new generation capacities and related transmission [Poyry, Terna, Cesi, Decon] September 2007

Water Supply from the Iber Lepenc Hydro System for the Proposed Kosovo C Power Plant [COWI, BCEOM, Enviros, Exergia, Tractebel]

November 2007

Strategic Environmental and Social Assessment Report [ERM] May 2008

Kosovo B Rehabilitation feasibility study [PA Consulting] [March/April] 2010



The Lignite Power transactionProject Components (as reconfigured)

A. Construction of a new electric power generation plant, ‘Kosova e Re Power Plant’ (“KRPP”)- Estimated installed initial capacity of 500 MW- Possibility of expanding up to 1000 MW- Limited associated interconnection facilities

B. Immediate development of the Sibovc Lignite Field to supply existing plant and KRPP

C. Private sector participation in Kosova B



The Lignite Power transactionPrequalification – minimum criteria for consortia

• Arranged financing for an independent power and/or mining project with a financing amount (debt plus equity) of at least €800 million.

• Managed the development of:- an open-cast mine of at least 8 million tonnes/yr of coal or lignite production;

and- a coal- or lignite-fired independent power project of at least 600 MW gross

electric power generating capacity.• Served as the lead construction entity in at least two projects of a similar

nature and complexity as the components of the Project that have been completed since 2000 and have operated successfully for at least 18 months; and- (A) operated an open-cast mine of at least 5 million tonnes/yr production for at

least 3 years since 2004; and- (B) operated coal or lignite fuelled power generation capacity of at least

2000MW (at a single or in aggregate across multiple locations) for at least 3 years since 2004.



The Lignite Power transactionPrequalification – deadline & evaluation

Deadline: 1700 hours (Pristina time) on 29 January 2010

Evaluation for shortlisting:

Scoring Criteria Max. Points AvailableFinancial Capacity – finance raising experience 15Development Management Experience - mining 10Development Management Experience - generation 10Construction Experience – similar projects 15O&M Experience – Mining 10O&M Experience – Coal/Lignite Generation 10Financial Standing 15Bidder/Consortium Structure 15



The Lignite Power transactionProposed timescale

29 January 2010

Deadline for receipt of EoIs

February 2010

Announcement of shortlisted bidders

March / April 2010

Publication of Draft Request for Proposals

June 2010

Deadline for responses to

Draft RfP

July 2010

Publication of Final Request for Proposals

September 2010

Receipt of Proposals &

Announcement of preferred bidder

Slide Set 2 PwC Mark Hughes

Documents

Transcript of Slide Set 2 PwC Mark Hughes