InfraCo

Developing infrastructure projects to promote sustainable economic growth

InfraCo

• Privately managed infrastructure development company • Funded through the (

PIDG

) comprising of: •

DGIS

(

Private Infrastructure Development Group Netherlands

) • • • • • •

SIDA SECO DFID ADA

( ( (

Sweden

(

IrishAid

Switzerland United Kingdom Austria

(

Ireland

World Bank

) ) ) ) ) • Develops Infrastructure projects in:

Water Sectors

among others

Energy

,

Transportation

and • Geographic focus

Sub-Saharan Africa

2

InfraCo in Your Country

InfraCo contributes to sustainable

Economic Growth:

• Actively indentifies

viable projects

• Provides substantial infrastructure own

risk capital expertise,

as well as its • Focuses on attainable benefits (

jobs

,

projects improved

, that will produce social

services

and a

healthier environment

) • Attracts

long term capital

•

Balances the interests

investors and financiers of host governments, private sector 3

InfraCo

•

Acts as a principal project developer

: capital – InfraCo is not a consultant Provides risk •

Actively participates in project development

: InfraCo is not a passive funding source for development expenses •

Assumes development risk

: InfraCo loses money Unsuccessful projects – •

Seeks returns on time and invested capital

: financial closing and through carried interest At 4

Major Activities

• •

InfraCo uses its

expertise

and

capital

to:

• Develop a

viable business plan

model and build a financial • Negotiate long-term

anchor tariffs agreements

or

user

to secure sustainable revenues Develop

technical feasibility

studies Provide in-depth

cost analysis

5

Major Activities (Cont’d)

• • • • Negotiate a fixed-price turnkey,

EPC

Procurement & Construction) contract (Engineering, 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

and operation of the Project for the construction 6

Deal Structure

Long Term Funding: • Equity • Debt Concession Rights EPC Contractor EPC Contractor: • Engineering • Procurement • Erection • Civil Construction • Equipment and Services Owners: •InfraCo; Other Partners Long Term Funding SPC (Project Company) O&M Contractor O&M: • Operator • Maintenance Permits Land Revenues / Offtakers Long Term: • Anchor Tenants • PPAs ; etc.

Market: • Short term • Merchant, etc.

7

Ghana

InfraCo Projects In

Zambia Madagascar Cape Verde Uganda

8

•

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

– Commercial Debt:

USD 20 Million

– Credit Enhancement from

USAID

and – Private Sector Equity: ) from

PIDG

:

USD 3.5 Million

GuarantCo

USD 16.5 Million

:

USD 12 Million

•

Project Description

Cape Verde

–

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

–

WB GEF

(Grant) (Guarantee to commercial loans) 10

•

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 11

•

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 levels and overall economic welfare – increasing local employment • Total Project Cost:

USD 25 Million

•

Finance Plan

–

Development costs

: –

Land/water rights

:

InfraCo Equity contribution by farmers

– –

Project Equity

:

Project Debt

:

Zambian Development Bank

,

Commercial Banks OBA

,

USAID

12

•

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 – Support from

ECA EAIF

; and

commercial banks ERG

;

Chinese Exim

;

Credit Swiss

among others 13

•

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 14