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Ras Al Khaimah – Rooftop Solar Program 19 January, 2017 Nitin Johar, Head of Treasury Investment & Development Office, Government of Ras Al Khaimah

Table of Contents Contents

2

Page

Introduction: Emirate of Ras Al Khaimah

3

Key Credit Strengths

4

Investment and Development Office

5

Initiatives by Government of Ras Al Khaimah

6

Ras Al Khaimah’s Solar Program

7

Program Timelines

9

Introduction: Emirate of Ras Al Khaimah KEY HIGHLIGHTS

Ras Al Khaimah

Bahrain

Oman

Arabian Gulf

Qatar

• Ras Al Khaimah (“RAK”), the fourth largest of the seven emirates,

Dubai

joined the UAE in 1972

Abu Dhabi

• The Ruler of RAK, His Highness Sheikh Saud bin Saqr Al Qasimi, is a member of the UAE Supreme Council Saudi Arabia

0 0

25

50 25

Oman

• The emirate has a track record of political and social stability,

75 Kilometers 50

along with a stable and predictable policymaking environment

75 Miles

Ratings (August 2016)

•

S&P:

•

Fitch: ‘A’ Outlook Stable

Nominal GDP 2016 (f)

•

AED 36.2 BN ~ USD 9.8 BN

Key GDP Components

•

3

‘A’ Outlook Stable

• Highly diversified economy, with hydrocarbons constituting less than 5% of GDP and manufacturing being the largest contributor at 25% • Gross government debt is lower than the median for A rated sovereigns

Manufacturing, Trade, Mining, Retail Services, Financial Services, Tourism Services

• Strategic location and good proximity to ports and airports makes the Emirate as a trading and services hub

Ras Al Khaimah’s Credit Strengths Well Established STABLE POLITICAL & SOCIAL ENVIRONMENT

DIVERSIFIED & RESILIENT ECONOMY

LOW & MANAGEABLE DEBT

STRONG REVENUE BASE & STRONG REVENUE BASE BUDGET SURPLUS ECONOMY

S&P Rating Scorecard Snapshot

Ras Al Khaimah

Ireland

Slovakia

Japan

A

A+

A+

A+

Outlook

Stable

Stable

Stable

Stable

GDP Growth

1.50%

4.60%

3.0%

0.9%

Neutral

Strength

Neutral

Strength

External Assessment

Strength

Neutral

Neutral

Strength

Fiscal Assessment – Flexibility & Performance

Strength

Strength

Neutral

Weakness

Fiscal Assessment – Debt Burden

Strength

Neutral

Strength

Weakness

Sovereign Rating

Institutional Assessment

Source: S&P Sovereign Ratings ‘Research Updates’, using each sovereign’s most recent report

4

Investment & Development Office BACKGROUND

KEY PERSONNEL

• Established through an Emiri decree in 2004, responsibilities updated vide Emiri decree in 2011

Chairman

• The central financial and budget office of the Government of Ras Al Khaimah • Chaired by His Highness Sheikh Mohammed bin Saud Al Qasimi, Crown Prince of Ras Al Khaimah

His Highness Sheikh Mohammed bin Saud Al Qasimi

CFO

Manu Mehra

Vice Chairman

Head of Treasury

His Highness Sheikh Khalid Bin Saud Al Qasimi

Nitin Johar

ROLES & RESPONSIBILITIES • Manages the Government’s balance sheet and credit rating • Acts as Financial advisor to the Government and Government entities and companies: o

Responsible for treasury management, corporate finance, investments, structuring and legal advice

o

Approves and monitors budgets and capital expenditure

o

Responsible for compilation of consolidated Government accounts on a quarterly basis

o

Central Audit Office

o

Manages and controls sovereign debt obligations

• IDO’s debt strategy includes building a diversified investor base and optimizing the match of its maturity profile with its long-term investments

5

Ras Al Khaimah’s Solar Program • Government of RAK, in line with its long term plans, is exploring a multi-phased solar program to encourage and promote utilization of solar energy in the emirate under the guidance and patronage of His Highness Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah and a member of the UAE Supreme Council • Under the leadership of the Chairman His Highness Sheikh Mohammed bin Saud Al Qasimi and the Vice-Chairman His Highness Sheikh Khalid Bin Saud Al Qasimi, Investment and Development Office Govt. of Ras Al Khaimah will be launching this program in stages over the next few years

PHASE 1: ROOFTOP SOLAR PROGRAM

Industrial Buildings 6

Commercial Buildings

Rooftop Solar Program Overview Program

: Rooftop Solar Program

Location

: Ras Al Khaimah, UAE

Capacity

: 30 - 50 MW

Program Structure

: BOO / BOOT framework

Rooftop Sites

:

Rooftop Ownership

: Government and Private entities

Off- takers

: Individual building owners and tenants

Procuring Coordinator

:

Financial Advisor

: Synergy Consulting Inc.

Legal Advisor

: Eversheds LLP

Technical Advisor

: DNV GL

7

25 – 30 sites consisting of industrial, commercial and residential buildings

Investment and Development Office, Government of Ras Al Khaimah

Program Timelines

8

Activity

Target Timeline

Expression of Interest

February 2017

RFQ Release

March 2017

RFP Release

May 2017

Signing of Project Agreements

December 17

Financial Closure

February 2018