Mulilo Renewable Energy Solar PV De Aar (PTY) LTD

Presented by:

The Gestamp Mulilo Consortium

•Warren Morse (MSc,BSc Engineering)

•Ally Vusi Mahlangu (Gestamp Solar PDM,

BTech Engineering)

Program:

1. Introduction

2. Project Company Structure

3. Corporate Background

4. Project

5. Technical

6. Financial and Funding

7. Community Trust and BBBEE

8. Close and Questions

Introduction: South African Energy situation

Introduction: SA Power Plants Lifetime

1. REFIT

2. IPP Procurement Program

3. Round One Preferred Bidders

SA DemandLoad Shedding 13 years

Introduction: IRP2010 IPP Procurement Program

Introduction: Round One Preferred Bidders

Project Company Structure:

Mulilo have designed an ownership structure that includes both local and

international owners of the bid to ensure both local ownership, as per the

requirements of the IPP RFP, and international expertise. Ownership has been

designed to ensure 40% local ownership.

Corporate Background:

Mulilo Renewable Energy (Pty) Ltd (MRE) is a South African owned company developing renewable energy projects in Southern Africa.

Launched in June 2008, MRE’s objective is to be one of South Africa’s leading providers of renewable energy.

The company works with landowners, technology providers, regulators and investors to source and develop projects. MRE acts as the project interface, coordinating the research and studies, the site identification, the project structure, selecting the strategic partners and arranging financing.

MRE consists of a team of highly experienced people who have worked locally and internationally and combine engineering, construction, project management and financial expertise.

Corporate Background:

Gestamp Solar is a Spanish multinational developer and operator of utility-scale photovoltaic plants. It vertically integrates the necessary components for a successful solar plant.

Gestamp Solar have already connected Solar Plants to the grid totaling more than 300 MW worldwide, while the pipeline for the next three years exceeds 1.5 GW including PV and CSP developments in Europe, Middle East, Africa, Asia and America.

In 2011 Gestamp Solar participated in the development of over 400 MW photovoltaic solar facilities. The turnover was €240 million with an EBITDA of 18.2%. Our project portfolio includes 750 MW in U.S., Italy, Spain, France, India and South Africa.

Gestamp Structure:

Corporacion Gestamp manufactures steel solutions for the renewable energy industry:

-Wind Towers-Wind Flanges-Solar PV Fixed structures(ground / rooftop / car parkings)-Solar PV Trackers (1-axis and 2-axis)-Solar CSP Structures Gestamp Solar Steel and Gestamp Wind Steel

are currently in high level discussions with the

Department of Trade and Industry (DTI) to

establish manufacturing plants in South Africa to

supply the renewable industry.

Gestamp Structure:

Gestamp Structure:

Project:

Mulilo Renewable Energy Solar PV De Aar

Selected Preferred Bidder Round 1 IPP Program

Capacity 10MW nominal

Grid Tied to De Aar Substation 22kV

Fixed Axis ~17ha area

Environmental Authorization Approved

Land Rezoning under final review

Eskom budget Quotation Underway

Financial Close Underway

Project Contracting:

Estimated Job Creation:

Local Content:

Local Content = 39%

Technical:

1. Plant consists of 44 880 x 230W Poly silicon PV modules manufactured by Trina Solar China.

2. 20 x 500kW DC/AC inverters manufactured by GP Tech Spain

3. ~2.5km 22kV power line commissioned by Eskom

4. 22kV MV bay at De Aar Substation populated by Eskom

5. Primary subcontractor ABB South Africa

6. Modules fixed at an angle of 20º due North by a steel and aluminum frame structure.

Layout:

Layout:

Program:

Frame Structure:

Program:

Program:

Financial & Funding:

Project Funded by

50% Nedbank Capital

50% IDC

Financial & Funding:

Debt Funding Sources:

Nedbank Capital 35%

Industrial Development Corporation 35%

Equity 30%

Total 100%

Debt

Equity Shares:

Gestamp Solar 60%

Mulilo Renewable Energy 20%

Mulilo De Aar Solar Community (BEE) 20%

Total 100%

Community Trust & BBBEE

Community Ownership

In order to promote the participation of local communities in acquiring an equity stake in the proposed project, a Community Trust has been established. It is envisaged that the equity stake will be for the benefit of identified local communities residing within the defined area. Especially poor local communities, who lack adequate infrastructure and are faced with difficult socio-economic challenges, will benefit from this Community Trust.

20% Local Ownership has been granted to the Community in a trust named the Mulilo De Aar Solar Community Trust.

Black Ownership

The Community trust is recognized as 100% ownership and therefore the Project is recognized as having 20% Black Ownership.

Community Trust & BBBEE

The Community Trust: Mulilo has established a Community Trust in De Aar Emthanjeni

Municipal Boundary) in order to promote the participation of historically

disadvantaged Communities to acquire an equity stake for their

respective Communities. The name of the trust is Mulilo De Aar Solar

Community Trust.

The proposed trustees will be structured as follows:

Community Trust & BBBEE

Beneficiaries of the Trust:

It is envisaged that 100% of the beneficiaries of the trust will be Black (as broadly defined in the IPP and BBBEE Act)

The Community Trust will serve as a vehicle for directing and administering investment by Mulilo in the Emthanjeni Municipal area, which has its seat in De Aar. To this end, the Mulilo De Aar Solar Community Trust will seek to address the following:

– Job creation

– Local content through, amongst others, local manufacturing

– Fostering rural development and involving communities in the IPP Procurement Programme

– Education and the development of skills

– Enterprise development through the promotion of Black Enterprise and empowered enterprises

– Socio-economic development, and

– Participation by historically disadvantaged citizens and marginalised regions in the mainstream of the industrial economy.

Questions:

Thank you for you time

Questions?