The Dolovo Project The Balkan Power Corporation LLP A wind energy project of 350 MW available due to the insolvency of the original promoters, Gabeira

The Dolovo Project

The Balkan Power Corporation LLP

A wind energy project of 350 MW available due to the insolvency of the original

promoters, Gabeira Wind Alliance Group of Spain. It is ready to permit with all studies

done

Contents Click on slide number Slide

Summary 3

Location 4 – 8 Wind 11-12 Equipment 13 Permits 14-19 PPA 20 Official Support 21 Timeline 23 Structure 24 Investment thesis 25

The Balkan Power Corporation LLP

• Location –30 kilometres east of Belgrade on the Pannonian Plain.• Wind Resource – various studies available showing average 6.63 m/s at 80 metres AGL.• Installation approved – 1,050 MW, of which 350 MW permitted subject to

fees payment.• Equipment

• - Siemens 2.3 MW direct drive turbines – LOI in hand.• - Goldwind/Vensys similar equipment (low wind optimised).

• Funding • – Siemens – under discussion.• – Chinese suppliers - to be discussed with Sinovel, Goldwind and

their bankers, including the China Development Bank.• PPA & FiT - 12 years @ €95/MWh, index linked to inflation,

Summary

Back to ContentsThe Balkan Power Corporation LLP

Serbia

Location


The Košava Wind (“big

wind”)

Location


Location


The Dolovo siteTopographical map(Flat)


Location of site in relation to 450 kV grid line and substation

Grid


The nearest town is Pančevo, 10 kms away

The Postcode is 26 227

Townsnearby


There are no constraints due to hub heights, shadow flicker, noise, restricted areas.

Proximity to roads, harbours, rail lines, etc:•Minor concrete heavy duty access road to 100 metres from site.•Major road 4.2 kms. •Rail 9.6 kms.•Harbour Pančevo/Belgrade (Danube, up to 5,000 ton vessels) 10 kms.•Harbour sea port, Constanta Black Sea 650 kilometres (mouth of Danube).

Constraints &Communications


Wind power potential and projects, SerbiaWind etc.


Wind

a) Mean wind speed - 6.63 m/s @ 100 metres/AGL

Wind at max power density distribution 310 W/m2

10.01 m/s 39 (W/ m2 )/(m/s) (Hélimax)

b) Climatic conditions -

min/max temp: -3c/+24c;

rain 576.8 mm; snow not significant.

Wind etc.


WindWind etc.


Whilst the on-site recordings as reported by Helimax were taken for only one year, there are three neighbouring masts of up to 100 metres in height.

Wind etc.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avge.7.90 8.28 7.52 6.77 7.65 7.65 8.28 7.15 6.90 5.14 5.52 5.39 7.01

Wind at Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avge.100 m AGL 7.90 8.28 7.52 6.77 7.65 7.65 8.28 7.15 6.90 5.14 5.52 5.39 7.01


Equipment

Discussions are ongoing with:• Siemens (Direct drive 2.3 MW)• Sinovel (SL 1500 1.5 MW)• Goldwind / Vensys (PMDD 1.5 MW ).

Estimated installed cost is in the region of €1.3 million / MW.This is a relatively low wind site favouring smaller turbines.


PermitsRequired

• Environmental impact assessment.• Land use permit/approval.• Development permit.• Construction permit.• Power interconnection permit (Grid).


PermitsEnvironment

The study was carried out, approved by the Ministry of the Environment, and the issue of the relevant permit has been recommended subject to the payment of the related fee. The actual report, although commissioned by Loger’s erstwhile shareholders Gabeira of Spain, was not made available to Loger because Gabeira did not pay for it. The synopsis (46 pages in Serbian) is available.

Banking related additional due diligence requirements may require a further study at a cost of +/-€50,000.

Environmental Impact Study


PermitsLand

Land Lease/Purchase

The lease of the relevant 1,350 Hectares of land from Government has been agreed for a period of 40 years with an option to renew for the specific purpose of Renewable Energy creation. That lease may be taken up when the project permitting exercise has been completed. The land could also be purchased for between €2,500 and €5,000 per hectare.


PermitsPlanning

Development Permit

Approved, subject to fees payment


PermitsConstruction

Construction Permit

Approved, subject to fees payment


PermitsGrid

Grid connection Permit

A “Favourable Opinion” has been issued by Elektromreža Srbije (EMS – the Grid operator) recommending that the necessary permit be granted.


The Minister of Energy has confirmed that a PPA will be issued once a turbine supplier has been selected.

It has been pre-approved by "Elektromreza Srbije" - Electric Power Industry of Serbia (“EPS”) subject to project commencement within 2012. EPS is the Purchaser.

FiT - €0.95/MW is Sovereign Guaranteed for 12 years. This price is subject to renegotiation before 31/12/2012 to give a guaranteed minimum IRR of 14%. An amendment guaranteeing a minimum index link to inflation has since been gazetted.

PPA


Support letters have been received from:• EMS, the Grid operator (parastatal).• Regional Chamber of Commerce and Industry (n.b. Province is autonomous).• Provincial Secretary for Energy etc. Support letter + a “Protocol of Collaboration”. (n.b. Project is approved at Provincial level).• Pančevo Municipality (signed “Protocol of Official Cooperation”).• Department of the Environment.

OfficialSupport


Estimated project timeline incl. delivery and commissioning

Hope to commence in June 2012 and install using 2 crews at a rate of 2 turbines per week. Too early to make further estimates, but Electromontaz, construction Engineers, are RWA to proceed. However banking related wind measurement comfort requirements may dictate a further 12 months record.

Ownership of wind farm (incl. address, phone, responsible person)

Loger AD, 182, Gospodara Vučlća, 11 000 Belgrade, Serbia. +381644675699.

Mr. Aleksandar Velicković.

Timeline


• Project currently owned by LOGER D.o.o.• This company is owned by eighty shareholders, controlled by three shareholders. • LOGER can be acquired for +/- € 1 million at any time over the next two years.

Project Ownership


• Balkan Power Corporation LLP (BPC) has been registered in the UK. • Partners: - Frank Jackson, Brian Igoe, (UK residents) and Sasa Velickovic (Serbian resident and agent for Loger.• New partners sought for BPC to support immediate purchase of Loger and provide working capital say € 2 million.

Structure


1. Complete wind measurements and environmental studies as necessary. Budgeted cost €145,000.

2. Acquire Loger D.o.o for +/- €1 million.

3. Secure equipment offers as per slide 15.

4. Complete all permits by end Q2 2012.

5. Initiate order for equipment to validate permits.

6. Sell the entire project either at this point or when up and running.

Thesis

An Investment Thesis on the following lines is proposed:


Documents

The Dolovo Project The Balkan Power Corporation LLP A wind energy project of 350 MW available due to the insolvency of the original promoters, Gabeira