InfraCo

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• InfraCo
• Developing infrastructure projects
• to promote sustainable economic growth

2
InfraCo

• Privately managed infrastructure development
  company
• Funded through the Private Infrastructure
  Development Group (PIDG) comprising of
• DGIS (Netherlands)
• SIDA (Sweden)
• SECO (Switzerland)
• DFID (United Kingdom)
• ADA (Austria)
• IrishAid (Ireland)
• World Bank
• Develops Infrastructure projects in Energy,
  Transportation and Water Sectors among others
• Geographic focus Sub-Saharan Africa

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InfraCo in Your Country

• InfraCo contributes to sustainable Economic
  Growth
• Actively indentifies viable projects
• Provides substantial infrastructure expertise, as
  well as its own risk capital
• Focuses on attainable projects, that will
  produce social benefits (jobs, improved services
  and a healthier environment)
• Attracts long term capital
• Balances the interests of host governments,
  private sector investors and financiers

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InfraCo

• Acts as a principal project developer Provides
  risk capital InfraCo is not a consultant
• Actively participates in project development
  InfraCo is not a passive funding source for
  development expenses
• Assumes development risk Unsuccessful projects
  InfraCo loses money
• Seeks returns on time and invested capital At
  financial closing and through carried interest

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Major Activities

• InfraCo uses its expertise and capital to
• Develop a viable business plan and build a
  financial model
• Negotiate long-term anchor tariffs or user
  agreements to secure sustainable revenues
• Develop technical feasibility studies
• Provide in-depth cost analysis

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Major Activities (Contd)

• Negotiate a fixed-price turnkey, EPC
  (Engineering, Procurement Construction)
  contract
• Negotiate the terms and conditions of a
  financially viable operation and maintenance
  agreement
• Arrange long term equity and debt financing
  repayment is solely dependent on the economic
  success of the Project
• Secure all necessary permits for the construction
  and operation of the Project

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Deal Structure

• EPC Contractor
• Engineering
• Procurement
• Erection
• Civil Construction
• Equipment and Services

• Long Term Funding
• Equity
• Debt

Concession Rights
EPC Contractor

• Owners
• InfraCo Other Partners

• OM
• Operator
• Maintenance

SPC (Project Company)
Long Term Funding
OM Contractor
Permits
Land
Revenues / Offtakers

• Long Term
• Anchor Tenants
• PPAs etc.

• Market
• Short term
• Merchant, etc.

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InfraCo Projects In
Zambia
Ghana
Madagascar
Cape Verde
Uganda
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Uganda

• Project Description
• General Infrastructure Power generation and
  distribution water supply transportation (ferry
  roads) for an island in Lake Victoria
• Project Benefits
• Power Current dependency on firewood, paraffin
  and small diesel generation
• Water Droughts insufficient potable water
• Transportation Dirt roads not motorable in all
  weather conditions ferry traffic exceeds
  capacity
• Total Project Cost USD 40 Million
• Finance Plan
• Output Based Aid (OBA) from PIDG USD 3.5 Million
• Commercial Debt USD 20 Million
• Credit Enhancement from USAID and GuarantCo USD
  12 Million
• Private Sector Equity USD 16.5 Million

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Cape Verde

• Project Description
• Wind Power 30MW in identified wind farm sites on
  four different Islands
• Project Benefits
• Make use of the abundant wind resources of the
  country that are virtually unused
• Adding lower cost wind power to the current
  all-diesel generation portfolio
• Reduce harmful emissions from the oil fired
  plants
• Total Project Cost EUR 55 Million
• Finance Plan
• IDA, EIAF (Loan)
• SIDA / GuarantCo (Guarantee to commercial loans)
• WB GEF (Grant)

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Madagascar

• Project Description
• Bulk and Distributed Water Supply A supply
  system to 17 communes surrounding the capital,
  Antananarivo
• Project Benefits
• Provides affordable, clean drinking water to
  populations that do not have access to clean
  water
• Eliminates water-borne diseases
• Improvement of general health levels
• Provides a new supply of bulk water to
  Antananarivo used by industrial and domestic
  consumers
• Private management of a PPP
• Total Project Cost USD 50 Million
• Finance Plan
• Grant funding from OBA
• Multilateral and bilateral debt and equity
• Local equity

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Zambia

• Project Description
• Irrigated Farm Development Full business plan
  development and implementation of holding and
  operating company, irrigation Infrastructure, and
  marketing plan for commercial and small scale
  wheat and soy farming near the Kafue River in
  central Zambia
• Project Benefits
• Economic Commercial farming operation wheat
  and soy production will meet local demand
  shortages potential to develop a wheat
  processing mill
• Social Impacts approx. 50,000 residents
  increasing local employment levels and overall
  economic welfare
• Total Project Cost USD 25 Million
• Finance Plan
• Development costs InfraCo
• Land/water rights Equity contribution by
  farmers
• Project Equity Zambian Development Bank, OBA,
  USAID
• Project Debt Commercial Banks

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13
Ghana

• Project Description
• Gas Fired Power Plant 300 400 MW power plant
  in Tema
• Project Benefits
• Provide low cost electricity in response to the
  lack of capacity in the region-currently the
  capacity shortages are met by inefficient diesel
  generators
• Utilise capacity from the West African gas
  pipeline and newly discovered natural gas
  offshore Ghana (Tullow and Anadarko)
• Total Project Cost USD 300 Million
• Finance Plan
• Multilateral or ECA and commercial banks
• Support from EAIF ERG Chinese Exim Credit
  Swiss among others

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InfraCo Board

• Keith Palmer Chairman, former Vice Chairman of
  NM Rothschild Sons, founder and Chairman of
  Cambridge Economic Policy Associate, Chairman of
  the Emerging Africa Infrastructure Fund
• Peter Bird Managing Director of NM Rothschild
  Sons
• Valentine Chitalu Former Head of the Zambian
  Privatization Agency, entrepreneur in Zambia and
  Southern Africa specializing in private equity
• Roger Witcomb Senior Adviser at Actis (formerly
  CDC), a private equity fund specializing in
  emerging markets