Trends Issues II International Opportunities in Sub

Lighting up Economic Opportunitiesin Sub‐Saharan Africa

Track: Business Trends & Regulatory Issues IISession: 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America

With the E3 Factor

Photo: csr.cisco.com

Photo: Africanbusinessmag.com

“It always seems impossible until it is done.” ‐ Nelson Mandela

Combustion Associates, Inc. | www.cai3.com Proprietary & Confidential | Do Not Duplicate

Insights & Lessons Learned

Africa – Growth Continent

Huge market potential for off‐grid and mini‐grid power solutions, especially in rural areas

Abundance of raw materials and labor

Consistent trend of IPPs, private companies and entrepreneurs investing in the region

Sustainable development and good governance

Humanitarian aspect of improving lives and economic opportunities. Its about the children –our future generations ‐ Collaboration and completing something better than you found it Photo: thebreakthrough.org

70% of African population is without electricity.

By 2030 over 50% is expected to remain without access to electricity

Introduction: The Current Scenario

Photo: aphg2015mhs.wordpress.com

0 500 1000 1500 2000 2500 3000 3500 4000 4500

Sub Saharan Africa

European Union

United States

Electricity Consumption 2014

Electricity Consumption 2014 (Billion Kilowatt Hours)

Source: Fact Sheet: Power Africa

Introduction: The Current Scenario

020406080100120

Access to Electricity ‐ Percentage of Population 2014

01000200030004000500060007000800090001000011000120001300014000

Electric Power Consumption (kWh per capita)2014

Source: World Development Indicators | WorldBank.org

Combustion Associates Inc. www.cai3.com

U.S.A. ‐ HQ

555 Monica Circle, Corona, California, U.S.A.

E: sales@cai3.com

Total Solutions Company

• Engineering

• Manufacturing

• Installation

• Start‐Up & Commissioning

• Training

• O&M

Overview: Combustion Associates, Inc. (CAI)

CAI Experience in SSA

Business Trends & Regulatory Issues II | 2C ‐ International Trends in Europe, Africa, SE Asia, Central & South America

Overview: Power Generation SystemsSpirit 1

Engineering | Manufacturing | Installation

1‐25 MW power‐gen systems

Distributed Generation

Multiple fuel capacity

BOP | Substations | T&D

Spirit 2

Spirit 1

Speaking from Experience:

Bidding for the Project and Securing It

• Navigating perceived vs actual risk • Legal Regulatory Risk• Access to capital• Skills development

CAI Awarded the project based on:• EPC Capability• E3 Factor• “Win‐win” Philosophy

Overview: 80MW Power Plant, Benin

Greenfield to Turn‐Key Construction

The First of Its Kind in Benin

At the California Facility

Design and Engineering Procurement Manufacturing

TestingAssembly

Balance of Plant

Overcoming Challenges

Contract:• Two languages – English & French• Legal advisors in both countries• Bureaucracy

Financing:• L/C took a year• EXIM Bank support was crucial

Finding Local Contractors• Advertising and vetting• Screening for capabilities and licensingLack of skilled workforce

Logistics:• Transporting from Port of Cotonou to Maria Gleta

Language & Culture:• All paperwork in English and French• Interpreters‐ French, Fon, English

CAI Partners

Benin Embassy U.S. Department of Commerce Advocacy Center U.S. Export Import Bank U.S. State Department City Council Congressman and Senators

CAI Technical Team Members Strategic Suppliers Dedicated Logistics Providers Local African Partners

1. Then Benin President Thomas Boni Yayi visited the site

2.Media coverage

3. Dignitaries came to see the power plant complex

4. Locals took site tours

Greenfield to Turn‐Key

The E3 Factor

Employment

• 100s of local Benin citizens employed for three years

• Procurement of steel, concrete, cables etc. in Benin benefitted local businesses

• In Calif, CAI added 40 more jobs in special trades

Education

• Training and mentoring of local workers at every stage

• Classroom instructions for local utility staff

• Raised skills levels

Empowerment

• Affordable, reliable electricity for thousands

• Boost in local productivity

• Improved skills, better‐paying jobs for locals

Photo: Gen‐onethree.com

Trends Issues II International Opportunities in Sub

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