Waste to Energy Initiative A 114 MW Clean Energy Base Load

Power Plant Projects For the Panay, Guimaras, Negros Regions, Philippines

May 2009

General Information on Project Owner

• Project Owner: ASEA One Power Corporation

• Registration Date: March 14, 2005

• Registered Capitalization:Currently at US $ 6.5 Million and programmed to increase to US $ 20.8Million by 2009

• Registered Location: Cebu City

• Shareholding Structure: Philippine RORO Terminal Corporation – 68 % Paul Y. Rodriguez – 32 %

Successful Companies Affiliated with (AOPC) ASEA One Power Corporation

ASIAN MARINE TRANSPORT CORP.

- Engaged in domestic inter-island passenger and cargo shipping - Currently operating sixteen company-owned RORO passenger and cargo vessels plus one fastcraft vessel.

- A pioneering participant in the Strong Republic Nautical Highways (SRNH). Serving the Central, Western & Eastern Nautical Highways.

Successful Companies Affiliated with (AOPC) ASEA One Power Corporation

ASIAN AEROSPACE CORP.

AIRCRAFT DISTRIBUTOR AND REPRESENTATIVE - Gulfstream and MD Helicopter

AEROSPACE AND DEFENCE DIVISION - Phil. Representative Lockheed Martin Air Defense Radar and Terminal - Radar, C-130 Multi-Mission Aircraft and Surveillance System

AIRCRAFT HEAVY DEPOT LEVEL MAINTENANCE CENTER (Clark Field, Philippines) - In Alliance with Lockheed Martin, the world’s

largest defense contractor company, asaircraft heavy maintenance center for C130, C-12, Lear jets and Helicopters.

Successful Companies Affiliated with (AOPC) ASEA One Power Corporation

PACIFIC ALLIANCE CORP.

Helicopter and Business Jet chartering and Leasing of MD Helicopter, Gulfstream, K-Max Heavy Lift Helicopter, Lear Jet, Super King Air 350 and Beechcraft Baron

KEY PEOPLE (Core Competence)

Paul Rodriguez President & CEO

Asisclo GonzagaChief Technical AdviserFormer President & CEONational Power Corp. andNational Transmission Corp.(NAPOCOR and TRANSCO)

Ernesto TanSVP & CFO

Nestor EnriquezVP – OperationsFormer VP – PSEG, Transco

VISION STATEMENT

To become a pioneering leader in the biomass renewable energy industry in the Philippines.

MISSION STATEMENT

- Demonstrate a profitable business model.

- Generate Social, Environmental and Technical (SET) Benefits

FINANCIAL & MANAGEMENT GOALS

• To ensure growth and scalability prospects

• To prioritize CAPEX requirements for maintenance and upgrading

• To continuously monitor and manage the Company’s Leverage Position, Liquidity Risk Profile and Optimize Uses of funds

• To maximize Shareholders Value - High Dividend Payout, and Added Value Exit Strategies.

• To adhere to Sound Corporate Governance Policies – Transparent Management and Ethical Standards

• To obtain ISO Standards of Operating Procedures.

GENERAL INFORMATION ON THE PROJECT

• Project Name: Waste to Energy Initiative involving Clean Energy Base Load Power Plant Project

• Location: Panay > Guimaras > Negros Regions (Western Visayas Region 6)

• Installed Capacity: 114 MW • Annual Electricity Generation: 684, 087, 552 KWH

• Plant Type: Regenerative Cycle Steam Turbine Power Plant • Commercial Operations Date: January 01, 2011• Plant Life (Years): 20 Years • Construction Period: 12 Months

• Fuel: Biomass

• Electricity Tariff : US $ 0.12 per KWH

• Total Project Cost: US $ 285.0 Million

50 MW

500MW

ARTIST’S VISUAL OF AOPC POWER PLANT

SELECTED PROCESSES

SOCIO-ECONOMIC DEMOGRAPHICS OF SERVICE AREA (Western Visayas,Region 6)

• Country: Philippines• Provinces: Antique, Aklan, Capiz, Guimaras,

Iloilo, Negros Occidental • Land Area: 20,157.7 sq. km• Population (2007): Total 6,843,643• Density: 308 persons/ sq.km. • GRDP: Php 83.4 Billion • Top Three Sectors: Agriculture, Fishery, Forestry

Industry Sector Service Sector

• Major Products Agriculture: sugar, coconut, rice Aquaculture: prawn, tuna Non-Agricultural: Copper, Gold and Silver Tourism: One of the best beaches in the world, Boracay

FEEDSTOCK RESOURCE ASSESSMENT (Per Electric Cooperative – Offtakers)

Electric Cooperative/ Distribution Utility

Volume (in MT) Potential Energy to be

Generated (in MW) Installed Capacity (in MW)

AKELCO 678,899.96 60.17 24

ANTECO 574,466.28 45.45 6

GUIMELCO 154,813.95 12.81 3

ILECO I,II,III 2,025,337.80 157.31 21

CENECO 1,538,320.53 132.36 36

NOCECO 529,919.88 51.70 12

VRESCO 833,415.40 81.32 12

TOTAL 6,335,173.80 541.12 114

FEEDSTOCK RESOURCE ASSESSMENT (Per Feedstock)

Feedstock Volume (in MT) Potential Energy to be Generated (in MW)

Rice Straw 2,699,194.50 193.8

Sugarcane Waste 2,325,115.85 226.86

Coconut Leafwood 445,541.95 42

Rice Husk 363,409.64 29.62

Coconut Bunch 237,622.36 22.39

Coconut Husk 182,381.60 17.19

Coconut Shell 81,907.90 9.26

Total 6,335,173.80 541.12

Market Share Analysis(Visayas Region)

20112013

• AOPC Installed Capacity (in MW) 114 183 • Total Visayas Installed Capacity (in MW) 1,360

1,545 • AOPC Market Share 8.5%

11.9%

0

5

10

15

2011 2013AOPC Market Share in %

Project Cost – Investment Highlights (Phase 1)

• Total Project Cost – US $ 285.0 Million

• Debt (70%) - US $ 199.5 Million

• Equity (30 %) – US $ 85.5 Million

PROPOSED SETTLEMENT PROCEDURE (Under an EPC Turnkey System)

Engineering, Procurement,Construction (EPC)

Contractor

China Export & Credit Insurance Corp.

Philippine Export-Import (Phil-EXIM)Credit Agency

(Guarantor)

The Structure of Export Buyer’s Credit

ASEA One PowerCorp. (AOPC)

China Eximbank

1. Commercial Contract (Turnkey System)

7. Down Payment (AOPC Equity)

5. Delvery (ies) of Biomass Power Plants

8. Disbursement (China Eximbank)

2.Loan Agreement (Between AOPC and China EximBank

3. Repayment Guarantee

4. Insurance Coverage

6. Test, Commissioning and Acceptance

9. Repayment

ASEA ONE POWER CORP.

• ISSUER ASEA One Power Corporation

• ISSUE SIZE US $ 85.5 Million in 3-Year and 5-Year Convertible Preferred Corporate Notes

• OVER SUBSRIPTION OPTION Up to US 85.5 Million

• USE OF PROCEEDS Partially fund Construction of 114MW Renewable Energy Biomass Power Plants

• INTEREST PAYMENT Quarterly

• MATURITY 3-Year Convertible Preferred Corporate Notes- April 20125-Year Convertible Preferred Corporate Notes- April 2014

• EARLY CONVERSION OPTION For 5-YearConvertible Preferred Corporate Notes on the 3rd Anniversary of Issue Date

• OFFER PERIOD June 1-30, 2009

US $ 85.5 Million LIBOR + 2% Three (3) Year Fixed Rate Convertible Preferred Corporate Notes due 2012LIBOR + 3% Five (5) Year Fixed Rate Convertible Preferred Corporate Notes due 2014

A Renewable Energy Developer and Power Generation Company.

EXIT STRATEGIES

• Initial Public Offering (IPO)– Local – International

• Mandated under EPIRA Law – 15 % Divestment • Private Placement of Funds / Exempt Offerings

• Buyback

• Sale to State Funds

• Sale to Strategic Companies

GROWTH TRAJECTORY SCALABILITY

Electric Cooperatives (Offtakers) Phase I Phase II Total Phase I and II

1. ILECO I 12 6 18

2. ILECO II 3 3 6

3. ILECO III 6 6 12

4. AKELCO 24 6 30

5. ANTECO 6 6 12

6. GUIMELCO 3 -- 3

7. VRESCO 12 6 18

8. NOCECO 12 6 18

9. CENECO 36 12 48

10. NORECO I -- 6 6

11. NORECO II -- 6 6

12. CAPELCO -- 6 6

TOTAL 114 69 183

Project Cost / Investment US $ 285 M US $ 172.5M US $ 457.5M

Installed Capacity ( in MW)

SUMMARY OF FINANCIAL RESULTS UNDER VARIOUS CAPACITY SCENARIOS

Key Results Areas (KRAs) ` Unit 1.4 kg/kwh 1.6 kg/wh 1.92 kg/kwh

1.Internal Rate of Return (IRR) (Excluding Carbon Credits)

Million Dollars

293.99 268.2 227.3%

2. Internal Rate of Return (IRR)

(Excluding Carbon Credits)

% 21.50 20.50 19.50%

3. Benefit Cost Ratio 1.01 1.02 1.01

4. Pay-back period Years 6.2 6.7 7.5

5. Break-even Tariff Rate (Per kwh) Dollars 0.0856 0.0885 0.0931

6. Break-even Feedstock Cost (Per kg) Dollars 0.0371 0.0319 0.0259

7. Break-even distance Km 148.08 123.32 94.43

Capacity

KEY MILESTONES OF PROJECT ACCOMPLISHMENTS

• Signing of Power Supply Agreement

• Signing of Long Term Sales Contract

• Site Selection of Plant Sites

• Designation of EPC

• Fund Sourcing

POWER SUPPLY AGREEMENT

• Term – 20 Years • Take or Pay Arrangement • Priority Dispatch • Minimum Energy Offtake (MEOT) • Tariff Rate Indexed to Foreign Exchange, Inflation

Rate, Cost of Feedstock, Transport Cost, Pass-On• Re-opener Events • Force Majeure• Defaults • Termination

MULTIPLIER EFFECT OF AOPC BIOMASS POWER PLANT PROJECTS

Key Result Areas (KRAS) Socio-Economic Benefits1. Benefit to the Host Community Equivalent to P.01 of Total Kilowatt Hour Sales

2. Generating Jobs Green Collar Employment (Lay-off Proof)

3. Increasing Income

Buying RE Indigenous Resources

4. Alleviating Poverty

Generating Jobs, Increasing Income, Gender Equality

5. Energy Security and Environmental Sustainability

Utilizes Western Visayas Indigenous RE Resources/Fuel

6. Climate Change/Global Warming Mitigate onslaught of supertyphoon, floods and drought. Estimates of CO2 equivalent being prevented from being emitted in the environment at 416,784 tons per year or 8,335,680 tons for the next 20 years

7. Peace and Order Generating jobs, increasing income, gender equality that will encourage return to folds of law

MULTIPLIER EFFECT OF AOPC BIOMASS POWER PLANT PROJECTS

Key Result Areas (KRAS) Socio-Economic Benefits8. Increasing Quality of Livelihood

Enhancement of disposable income, higher purchasing power, comfort and convenience in life of constituents in franchised areas

9. Payment of Transmission Charges (As provided for Under Section 18 of the RE Law

None, since embedded

10. System’s Loss None, since embedded

11. Fiscal Incentives VAT Exempt on Generation Charge and Duty Free and VAT-exempt status on biomass planters, purchase of farm inputs and implements

12. Cost of Electricity $ 0.12 per KWH

13. Green Energy Option (Under Section 9 of the RE Law)

Ease of Implementation since Power Plant is embedded

14. Savings on the 10% Corporate Income Tax (Under Section 15 of the RE Law)

To be passed on to end-users in the form of lower tariff rates after the lapse of the 7-year Income Tax Holidays (ITH)

MULTIPLIER EFFECT OF AOPC BIOMASS POWER PLANT PROJECTS

Key Result Areas (KRAS)

Socio-Economic Benefits

15. Priority or Must Dispatch Status (Under Section 20 of the RE Law)

Yes, since embedded

16. Forex Exchange Savings Represents savings of forex reserves that should have been used in purchasing imported coal and bunker C fuel

17. Distributed system Prevents total blackout system

18. Growth Trajectory / Scalability Development Plan to go into expanding installed capacity considering the projected increase in the load demand by reinvesting earnings of AOPC in the franchised areas and sustainability of feedstock.

PROJECT SCHEDULE

• Committed Commercial Operation Date : 01 January 2011 • Milestones

– Signing of Power Supply Agreements (June 2009)– Selection of site (June 2009)– Designation of EPC (Engineering, Procurement and Construction) Contractor (June

2009)

– Design & Construction Start: July 2009 Completion: July 2010

– Testing & CommissioningStart: July 2010Completion: December 31, 2011

– Commercial operation: 01 January 2011

SWOT ANALYSIS

• Lowest tariff rate at US $ 0.12per KWH• Embedded power plants, therefore NO

Transmission cost and NO System’s Loss

• Common plant size and design, therefore Easier Maintenance and Parts Interchangeability

• Proximity to Sources of Feedstock• Signed Power Supply Agreement • Signed Long-Term Sales Contract for

Feedstock • Core Business Competence on Logistics

Management • Capable Management Team• Fuel Mix Efficiency • Fuel Multi-Source

• First Venture into Renewable Energy Biomass Generation Business

• Leverage Position • Extended Pre-operating Period • Highly Regulated Industry

STRENGTHS WEAKNESSES

SWOT ANALYSIS

• Growth Trajectory / Scalability • Sustainability of Feedstock• Renewable Energy Law • Clean Air Act • Captive Market • Above Market Rate of Return • Exit Strategies • Strategic Alliance with Offtakers, Local Leaders,

NGOs, Churches, Local Communities, Farmers and Other Concerned Stakeholders

• Supply-Demand Gap (Insufficient Power Supply)

• Ancillary Services Revenues (Frequency Regulation, Spinning Reserves, Replacement Power)

• Suppress Demand• Central Bank Lifting of SBL/DOSRI Restrictions

• Competition from cheaper and cleaner sources of energy such as Wind, Solar, Hydro and Geothermal Energy

• Entry of Direct New Competitors who are also into Biomass Business

• Competition from Fossil Fuel such as Coal • The Bargaining Power of Offtakers • The Bargaining Power of Suppliers • Tight Credit Market Situation • Delay in Securing Environmental Compliance

Certificate by the DENR • Delay in Securing Approval of Power Supply

Agreement by the ERC • Delay in Completing Construction,Testing

and Commissioning • Cost Overrun• Market Share Cap• Highly Capital Intensive

OPPORTUNITIES THREATS

WHY INVEST?

1. Uniqueness of the Project.

2. Expertise of the Proponents.

3. Scalability / Growth Trajectory.

4. Exit Strategies.

5. Sound Economic Fundamentals.

WHY INVEST?

“The Philippine economy remains reasonably healthy”- James McCormack, Managing Director, Asia-Pacific, Sovereign Ratings – Fitch Ratings

“The Philippines has the lowest macro economic risk”

“The Philippines is inherently strong, a potential beneficiary of these financial woes”

“The Philippine is in a relatively strong position to weather the global downturn with the economy driven by private consumption and services, which are less vulnerable to external shocks.”

“The Philippines is an island of calm”- Agost Bernard, Associate Director for Sovereign Rating, Standard & Poor’s

The End

Thank you.

Mr. Paul Y. Rodriguez

President & Chief Executive Officer

Tel No. +63-2-8886550; Fax No. +63-2-8866553

Mobile: +63-9189355588

Email: management@apc.ph

Mr. Ernesto V. Tan

Senior Vice President & Chief Financial Officer

Tel No. +63-2-8431649; Fax No. +63-2- 8866553

Mobile:+63-9189203054

Email: finance_apc@apc.ph

Renewable Energy is the Future of Energy