InfraCo Overview

1. Symposium on Private Financing for African Power InfrastructureUS Treasury DepartmentWashington, DCOctober 13, 2008

2. InfraCo Overview • Development and Investment in Early Stage Infrastructure Projects • Privately Managed Infrastructure Development company, • Funded by the Private Infrastructure Development Group • Creates Privately Financed Bankable Infrastructure Projects, • Balancing the Interests of Host Governments, • Private Sector Equity Investors and • Senior Debt Lenders

3. InfraCo Scope of Operations • Geographic Focus • Sub Sahara Africa • DAC I/II Countries (Least Developed and Low Income Countries) • Geographic Focus • Sub Sahara Africa • DAC I/II Countries (Least Developed and Low Income Countries) • Project Focus • Greenfield Investment • Expansion/Rehabilitation of Existing Facilities • Project Focus • Greenfield Investment • Expansion/Rehabilitation of Existing Facilities • Sector Focus • Energy & Power • Water and Waste water • Transportation • Sector Focus • Energy & Power • Water and Waste water • Transportation • Acts as a Principal Project Developer • InfraCo is not an advisor • Acts as a Principal Project Developer • InfraCo is not an advisor • Leads and Actively Participates in the Development of Projects • InfraCo is not a passive funding source • Leads and Actively Participates in the Development of Projects • InfraCo is not a passive funding source • Assumes Development Risk • InfraCo shoulders the costs and risks of early stage development

4. Development Process Overview 1 2 Origination Early Stage Development Host Country Macro-economic, Political and Power Sector Assessment Financial Assessment: Prevailing Tariffs Economic Assessment: Demand Forecast and Reserves Technical Assesment Legal Assessment: Power Sector Regulatory Framework; Private Sector Investment Feasibity Gate Project Budget and Schedule MoU with Host Country or Utility Joint Development Agreement 3 Advanced Stage Development Site Control, Technology Selection, Preliminary Engineering and Costing, Preliminary Financing Plan, Basic Financial Modeling, PPA Term Sheet, [Fuel Supply Term Sheet/ Wind Resource, Assessment/Solar Irradiation Assessment/Hydrology Reports], Interconnection Study, Environmental/Social Impact Assessment 4 Implementation Power Purchase Agreement and Security Package [Fuel Agreement/Final Renewable Resource Report] Procurement and EPC Contract Financing Term Sheet Acquisition of Site and Rights-of-Ways Permits and Regulatory Approval Equity Financing Project Information Memorandum Debt Financing

5. Risk Allocation Matrix • Fuel Supply • Minimum Take • Price Formula • Matching Energy Payment • Delivery Risk • Security Package • Termination • Sovereign Guarantee • Financial Guarantee: • Ring-Fencing Sector Cash Flow • More Effective • More Controversial • Change of Law/ Regulatory Risk • Exchange Controls • Currency Convertibility/Availability • Political Events • Power Purchase Agreement Tariff • Capacity and Energy Tariff • Indexation (Forex and inflation) • Completion and Functional Guarantee (output; availability; heat rate) • EPC Contract • Scope • Price and Payment Milestones • Delay and Functional Guarantees • Liquidated Damages and Performance Security • O&M • Owner Operated or Outsourced • Regular & Major Maintenance • Price Protection • Availability Guarantees

6. Typical Project Structure Power Purchase Agreement and Security Package Project Financing Project Structure Construction Loan Equity/Debt Operations & Maintenance Regular Operation, Overhaul and Outage Maintenance Sovereign/ Regulatory Issues Turnkey Design & Construction Engineering, Equip-ment Procurement, Construction Start-up and Testing PROJECT Fuel Supply Agreements Primary/ Secondary Fuel Sources Transportation Environmental & Other Permitting Permits for Plant, Air, Water, Mining & Ash Disposal Site Control Site Right-of-Ways and Easements

7. Constraints to Energy Project Development • Host Governments • Discipline in Execution of Policy • Avoid Politicalisation of Projects • Realistic Expectations • Offtakers (Electric Utilities) • Still Not Bankable without Sovereign Guarantee or Other Credit Enhancement • Multilaterals and DFIs • Review Conditionalities • Compatibility with the Host Country Situation • Predictability • Consistency in Execution • Bureaucracy • Less • Transparency • More

8. Constraints to Energy Project Development • Contractors and Suppliers • Market is not Competitive • US Contractors: Absent • European Contractors: Large Projects Only • Asian Contractors: Increasingly Present • Local Contractors: • Civil Works: Adequate Local Skills/Capacity Exists • Electro-Mechanical: Reliance on Foreign Skills/Capacity • Construction Risk Still High • Difficult to Mitigate • Frontline Risk

9. Constraints to Energy Project Development • Private Debt Financing • Local Currency Debt • Not Enough Competition in Local Market • Limited Source of Long-Term Funding • Interest Rates Are Very High • Hard Currency Debt • Short/Medium Term: Closed Except with Enhancement • Short-Medium Term Solution • Increase Local Currency Guaranty Products • Supplier’s Credit (ECAs’) for Hard Currency

10. Constraints to Energy Project Development • Strategic Investors • Tied to Equipment Supplier, Contractors or Operator • Sub-Optimal Alignment of Interests • Financial Investors (Private Equity) • Better Alignment of Interests • Return Requirements: • Unrealistic for Power Infrastructure • Exit Requirements: • Unrealistic for Illiquid Nature of Asset Class

11. Africa Private Equity Fundraising - 2007 • Worldwide vs Africa • Only 4% • Worldwide vs Africa • Only 4% $2.34 billion • Natural Resource Driven • 56% • Infrastructure: 2% • Natural Resource Driven • 56% • Infrastructure: 2% $59.16 billion • Existing Businesses Not Greenfield • Existing Businesses Not Greenfield • Sub-Sahara Africa (Ex RSA) • 61% • Mostly in Commodities

12. InfraCo Sub-Sahara Infrastructure Fund • $300MM Private Equity Fund • $100 Million OPIC Loan • Approved by OPIC Board in May 2008 • $200 Million in Limited Partnership Investments • Currently Being Raised • ISSIF will Invest Primarily in Projects Developed by InfraCo • Geographic Focus • Sub Saharan Africa (Excluding South Africa) • Transaction Focus • Greenfield Infrastructure • Sector Focus • Power • Transportation • Water and Sanitation