Slide Set 2 PwC Mark Hughes

Kosova Lignite Power Investors Conference January 2010

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Kosova e Re Power Plant Project Overview of the Opportunity & Pre-Qualification

PricewaterhouseCoopers LLP

Introduction to the Kosova Energy Strategy Power demand growth and existing supply Kosovo Power Supply / Demand Balance

8,000,000

8,000,000

Rehabilitation of Kosovo B

7,000,000

Annual MWh

6,000,000

7,000,000

6,000,000

5,000,000

5,000,000

4,000,000

4,000,000

HPPs

3,000,000

3,000,000

Kosovo B

2,000,000

2,000,000

1,000,000

1,000,000

0 2009

Kosovo A 2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

0 2025

2024

Year Kosovo A

Kosovo Lignite Power PricewaterhouseCoopers LLP

Kosovo B

HPP Ujman

HPP Zhur

Small HPPs

Import / New generation requirement

Domestic demand

January 2010 Slide 3

Introduction to the Kosova Energy Strategy Lignite resources: Sibovc versus other European Coal Mines

Kosovo Lignite Power PricewaterhouseCoopers LLP

January 2010 Slide 4

The Lignite Power Project Key studies Study / Task Preparation of a Mid Term Plan for the Development of Existing Coal Mines and a Main Mining Plan for the new Sibovc Mine Pre-feasibility studies for new power plant and pollution mitigation measures in Kosovo B [Jaakko Pรถyry Group Oyj] Preparation of complementary mining plan for Sibovc south west lignite mine [STEAG AG] Studies to support the development of new generation capacities and related transmission [Poyry, Terna, Cesi, Decon] Water Supply from the Iber Lepenc Hydro System for the Proposed Kosovo C Power Plant [COWI, BCEOM, Enviros, Exergia, Tractebel]

Date Completed June 2005 February 2006 May 2006 September 2007 November 2007

Strategic Environmental and Social Assessment Report [ERM]

May 2008

Kosovo B Rehabilitation feasibility study [PA Consulting]

[March/April] 2010

Kosovo Lignite Power PricewaterhouseCoopers LLP

January 2010 Slide 5

The Lignite Power transaction Project Components (as reconfigured) A. Construction of a new electric power generation plant, ‘Kosova e Re Power Plant’ (“KRPP”) - Estimated installed initial capacity of 500 MW - Possibility of expanding up to 1000 MW - Limited associated interconnection facilities A. Immediate development of the Sibovc Lignite Field to supply existing plant and KRPP B. Private sector participation in Kosova B

Kosovo Lignite Power PricewaterhouseCoopers LLP

January 2010 Slide 6

The Lignite Power transaction Prequalification – minimum criteria for consortia • •

•

Arranged financing for an independent power and/or mining project with a financing amount (debt plus equity) of at least €800 million.

Managed the development of: - an open-cast mine of at least 8 million tonnes/yr of coal or lignite production; and - a coal- or lignite-fired independent power project of at least 600 MW gross electric power generating capacity.

Served as the lead construction entity in at least two projects of a similar nature and complexity as the components of the Project that have been completed since 2000 and have operated successfully for at least 18 months; and - (A) operated an open-cast mine of at least 5 million tonnes/yr production for at least 3 years since 2004; and - (B) operated coal or lignite fuelled power generation capacity of at least 2000MW (at a single or in aggregate across multiple locations) for at least 3 years since 2004.

Kosovo Lignite Power PricewaterhouseCoopers LLP

January 2010 Slide 7

The Lignite Power transaction Prequalification – deadline & evaluation Deadline: 1700 hours (Pristina time) on 29 January 2010 Evaluation for shortlisting: Scoring Criteria Financial Capacity – finance raising experience Development Management Experience - mining Development Management Experience - generation Construction Experience – similar projects O&M Experience – Mining O&M Experience – Coal/Lignite Generation Financial Standing Bidder/Consortium Structure

Kosovo Lignite Power PricewaterhouseCoopers LLP

Max. Points Available 15 10 10 15 10 10 15 15

January 2010 Slide 8

The Lignite Power transaction Proposed timescale

29 January 2010 Deadline for receipt of EoIs

March / April 2010

July 2010

Publication of Draft Request for Proposals

Publication of Final Request for Proposals

February 2010

June 2010

September 2010

Announcement of shortlisted bidders

Deadline for responses to Draft RfP

Receipt of Proposals & Announcement of preferred bidder

Kosovo Lignite Power PricewaterhouseCoopers LLP

January 2010 Slide 9