Outlook for Power Sector A view from the Private Sector

1. Outlook for Power Sector A view from the Private Sector Presented by CEC Africa Sierra Leone Limited

2. Presentation Outline Who is CECA SL? Private Sector in African Infrastructure Development Generation Project Grid Development Supplying the unique requirements of the mining sector

3. CEC Africa SL CEC CEC Africa TCQ CECA SL Blue Flare Concession 128MW IPP Grid DevCo Mine Supply Co

4. Background on CEC CEC Africa is the pan-African business development subsidiary of CEC Plc CEC Plc is a 60 year old listed utility that owns and operates c900km of primary transmission and distribution lines, 520km of optic fibre on power lines, substations and embedded thermal generation in Zambia. The Company had revenues of US$250m and US$43m EBIDTA CEC’s principal shareholders include FMO and the Development Bank of Southern Africa. These institutions have a long history of providing debt and equity finance to the power sector in Sub-Saharan Africa It was the first private sector member of the Southern African Power Pool

5. Background on TCQ TCQ Power Ltd was incorporated in 2011 for the purpose of structuring, designing, developing, owning and operating power generation and transmission & distribution (T&D) projects in emerging Africa with a focus on West Africa. The main focus of TCQ is T & D assets as they believe that T & D will see a large increase in investment over the coming years. Additionally advances in IT have made T & D assets profitable. TCQ founders and management team are experienced industrialists bringing with them considerable complex project management experience and engineering skills. The TCQ team has a strong track record in the power sector, especially in the construction aspects of the same. The founders of TCQ had owned Target Engineering in the UAE which had annual turnovers of 600m USD and 12,000 personnel prior to their selling of the firm to Arabtec Construction at the end of 2008.

6. A growing trend Private Sector in Infrastructure

7. Private Sector in African Infrastructure • Require enabling government policy and support to partner in infrastructure development • Private sector as a facilitating agent for the attainment of the economic and development agenda of the government and its people • Government & politicians prescribe policy and private sector organizes projects to execute policy intent • Global capital flows to infrastructure development increasing • Best harnessed through private sector vehicles • African infrastructure returns amongst the more attractive • Still considered with some circumspect amongst international investors – rapidly changing

8. Ease of Doing Business Index Reforms and intentions of the GoSL to ease private sector participation in the country apparent Current WB ranking still low, but improving

9. Infrastructure Sectors Attractiveness Attractive to private sector funding, construction and operation with little government participation Attractive to private sector construction and government funding and operation Source: Adaptation of McKinsey & Co. , 2010

10. New era of intra-African investments CECA SL IN Sierra Leone

11. Generation Concession to build, operate and transfer generation plants in the Western Area of Sierra Leone, including Freetown Not only potential to fill current supply gap, but with intentions to be a FOREX earner for SL through power exports

12. Grid Rehabilitation & Development Current state of distribution network in Western Area is a bottleneck to further generation development Grid works contracted to enable grid to distribute current and planned generation capacity

13. Mining Power Supplies • CEC PLC’s core competence is the supply of power to mining operations • Unique mining requirements • Difficult and dangerous environment requiring constant dewatering, ventilation and lighting to protect lives and equipment (Less than 30 minutes to irreversible disaster on some Zambian mines in case of power failure) • Operations with high fixed costs highly sensitive to operational disruptions • Technical and financing solutions that allow mines to focus on their core business whilst deploying the lowest cost capital for the development of needed power infrastructure

14. Concluding Remarks In 2010, the private sector accounted for 11% of the investment inflow into the power sector in Africa CECA SL sees this as a unique time to get involved in countries that are open to the private sector CECA SL brings together the unique experiences of CEC PLC in African utility management and delivery of reliable power to sensitive industries under difficult circumstances and the project management expertise of TCQ for the benefit of Sierra Leoneans and its shareholders

15. The End Thank You