Hydropower Projects In Progress

Elgin MHP&

Upper Waltrim MHP

October 22, 2014 Presentation -1 1

Content

1.Site Locations /Approvals

2.Energy Macro Outlook

3.Financial Proposal

4.Technical Proposal

5.Plan/Going Forward 2

October 22, 2014 Presentation -1

WEIR AND INTAKE

FOREBAY AND DESILT TANK

SPILWAY

PENSTOCK (1,650 m)

POWER HOUSE

CANAL (1,400 m)

Elgin Layout Project Location Contd..

3

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Upper Waltrim LayoutProject Location Contd..

(1,100m)(475m)

Approvals -Project Location Contd..

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Approvals Elgin MHP Upper Waltrim MHP

Electricity Generation License from Public Utilities Commission of Sri Lanka Applied Applied

Development Permit from Pradeshiya Sabha – Nuwara Eliya Applied Applied

Approval from Urban Development Authority Applied Applied

Standard Power Purchase Agreement with Ceylon Electricity Board Obtained Obtained

Sublease of Property – Golden Shareholder Obtained Obtained

No Objection letter from Public Utility Commission of Sri Lanka Obtained Obtained

Energy Permit from the Sustainable Energy Authority Obtained Obtained

Approval from Central Environmental Authority Obtained Obtained

Provisional Approval from Sustainable Energy Authority Obtained Obtained

LOI from Ceylon Electricity Board Obtained Obtained

Approval from Divisional Secretariat, Nuwara Eliya Obtained Obtained

Approval from Mahaweli Authority Obtained Obtained

Letter of Approval from National Water Supply & Drainage Board, Obtained Obtained

Letter of Clearance from Department of Agrarian Development Obtained Obtained

Approval from Pradeshiya Sabha, Nuwara Eliya Obtained Obtained

Letter of Clearance from the Department of Irrigation Obtained Obtained

Approval from Forest Department Obtained Not required to be obtained

Set out plan

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Set out plan

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Electro -Mechanical Equipments

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Electro -Mechanical Equipments

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GRP Pipes

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2.Energy Macro Outlook

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Financial Feasibility Contd..

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Description Unit Elgin Upper Waltrim

Preliminary Expenses, Engineering and Construction Supervision Rs.Mn 21 25

Civil Construction Work Rs.Mn 173 250

Penstock Supply and Installation Rs.Mn 86 95

Cost of E&M Equipment Rs.Mn 170 240

Transmission Facilities including Metering arrangement Rs.Mn 25 35

Contingencies Rs.Mn 23 11

Total Project Cost Without IDC Rs.Mn 498 656

Funding - External Loan – 60% Rs.Mn 299 394

- Equity – 40% Rs.Mn 199 262

Description Unit Elgin Upper Waltrim

Plant Design Capacity MW 2.4 2.6

Plant Factor % 34% 41%

Annual Energy Generation GWh 7.3 9.4

Power Purchase Price Rs. 16.70 16.70

Annual Generation Income Rs.Mn 122 157

Project cost /MW [Rs/MW] Rs. Mn 207.5 252.3

O&M Cost/[Rs/year] Rs.Mn 17.6 17.6

5. Plan /Going Forward

• Completion of approval process for construction and price confirmations.

• Cannel Pathway Clearance and excavation. • Audit of Financial and Technical details. • Tariff rates and Tax regime finalization.• Formal approval from the Board of directors.• Investments and organization structure. • Calling of tenders and other administrative arrangements.• Formal opening of project activities.• Project completion 6 to 8 months.

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Plan /Going Forward Contd….Name and Tile

Project Engineer – Mr.H.M.Ranasinghe • B.Sc.Engineering (Civil) – University of Peradeniya

• M.Sc.Eng-Environmental and Water Engineering- University of Peradeniya

Electrical Consultant -Mr.Asanka Perera • B.Sc.Engineering (Hons) Electrical – University of Sri Lanka

• Post Graduate Diploma in Industrial Engineering • Chartered Engineer • Member of IESL

Mechanical Consultant –Mr.Nimal Kanattawatta

• B.Sc.Engineering(Mechanical) –University of Katubedda

• Chartered Engineer /Member of IESL

Electro Mechanical & Civil -Dr.Kamal Laksiri • B.Sc.(Civil Engineering) –University of Moratuwa • MSc.Norwegian University of Science &

Technology – Norway • PHD- Saga University –Japan

October 22, 2014 Presentation -1 14

Plan /Going Forward Contd….

Project cost Elgin MHP : Rs. 498 million

Upper Waltrim : Rs. 656 millionTotal : Rs. 1,154 million

Distribution Proposed 40% Equity : Rs. 462 million60% Debt : Rs. 692 millionTotal : Rs. 1,154 million

Confirmation of Equity Partners

–Sunshine Holdings PLC (61%). –Mr.M.M.Udeshi (39%) has agreed to invest in the project along with Sunshine Holdings PLC once all approvals are cleared.

–Debt component – DFCC has submitted a proposal. Terms – 50% of the project cost to be at 8% (special loan). The balance to be at AWPLR + 2%.

–Negotiations are being continued with other banks.

Issues –Previous years tariff rate is pending. It is expected that this will be finalized in the next 2-3 weeks. The rate offered needs to be assessed. –Technical matters.

Corporate Governance

–Transparency & Good Governance procedure to be maintained. –Disclosure to CSE at the time of confirmation.

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Thank you.

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