Siemens BelarusDate 21.05.2013

Projects in Belarus

Maxim Zubov

Vitebsk

Power Generation in Belarusmade by Siemens

852Installed / UnderConstruction Capacity, MW

Gas Turbine installed

Gas Turbine under Construction

27Installed / UnderConstruction Capacity, MW

Steam Turbine installed

Steam Turbine under Construction

Borisov

NovolukomlLukomlskaya GRES, SGT5-4000F

Siemens Belarus 2

Berezovskaya GRES, 2xSGT-700

GrodnoMinsk Mogilev

Gomel

Brest

Minsk TPP-2, 2xSGT-600

879Installed / UnderConstruction Capacity, MW

Borisov RK-3, SGT-800

Borisov

Bereza

Berezovskaya GRES, SGT5-4000F

JSC “GrodnoAzot”, 4xSGT-300

Soligorsk

JSC “Belaruskali”,2xSGT-300, 2xSGT-700

Borisov RK-3, SST-400Mogilev RK-3, 2xSGT-300

JSC “Belaruskali”, 2xATP1-G-5537

Tender Procedure

Tender Stage Comments

1. Prequalification Financial and Commercial documentationTechnical detailsDetailed reference listBid bond

2. Technical Prequalification Phase Technical clarification

Siemens Belarus 3

2. Technical Prequalification Phase Technical clarification

3. Price Negotiation Can be several iteration

4. Contract Negotiation DeliveryCustomsCredits loan

Introduction

Subject: 1 x SGT-800 + on-site servicesLocation Belarus, Minsk region, Borisov, Zhodino CHPCustomer and End user RUE “Minskenergo”Fuel Single; Natural gas

Financing 80% - International Bank for Reconstruction and Development20% - RUE “Minskenergo”

Partner(s) Siemens RE

Background New GTCC-65 unit shall replace one steam generator (50 t/h) and one hotwater boiler (100 Gcal/h) to enhance plant’s efficiency.

Siemens Belarus 4

Background New GTCC-65 unit shall replace one steam generator (50 t/h) and one hotwater boiler (100 Gcal/h) to enhance plant’s efficiency.

Entry to Order Book Q1 FY 2012Other Details First tender in Jan. 2011. SIT AB submitted SGT-800 indoor package

budget proposal to Technopromexport (TPE) local EPC. Tender wasdeclared invalid because only TPE submitted its bid.

Current Status Re-Tender is announced. OOO Siemens is requested to submit SGT-800firm offer EPC

Customer profile, opportunity profileand Compelling event

Minskenergo is one of SIX regional affiliates ofBelarus State Electric Energy Company(BELENERGO). Each affiliate operates powergeneration facilities, grids and district heatingnetwork located in its region respectively.

Belarus Ministry of Energy

BELENERGO

Siemens Belarus 5

Minskenergo

Mogilevenergo

Brestenergo

Gomelenergo

Grodnoenergo

Vitebskenergo

BELENERGO

b1

b2

Слайд 5

b1 - Describe the customer’s project or application.- What are the customer’s business objectives for the project?- What is the total cost and/or budget for the project?- How does the project affect the customer’s overall business?- And most importantly what is the compelling event, if any, that means the customer has to buy a GT by a certain date.barat00p; 14.11.2006

b2 Describe the customer’s business conditions. Include finance, revenue, profit and key performance indicators. Identify the customer’s majorlines of business, affiliations, products, and markets. Include information about recent mergers and acquisitions.barat00p; 14.11.2006

Customer profile, opportunity profileand Compelling event

Opportunity Profile & Compelling event

BELENERGO and Minskenergo activities for powergeneration facilities, grids and district heating networkupgrade are regulated by State Program for PowerSystem Modernization.

Together with the Governmental support this Programenjoys financial arrangements provided by internationalfinancial institutions (World Bank and others).

SIEMENS IP references in Belarus:

- Grodno Azot (2 x SSC-300x2 in operation),- Belkaliy ( 1xSSC-300, 2xSSC-700 delivery stage)- Mogilev RK-3 repowering (2 x SGT-300, just selected

with Technoserv AS EPC)- Minsk CHP-2 (2xSGT-600 in operation)- Beresovskaya GRES (2xSGT-700 in operations)

Siemens Belarus 6

Opportunity Profile & Compelling event

BELENERGO and Minskenergo activities for powergeneration facilities, grids and district heating networkupgrade are regulated by State Program for PowerSystem Modernization.

Together with the Governmental support this Programenjoys financial arrangements provided by internationalfinancial institutions (World Bank and others).

SIEMENS IP references in Belarus:

- Grodno Azot (2 x SSC-300x2 in operation),- Belkaliy ( 1xSSC-300, 2xSSC-700 delivery stage)- Mogilev RK-3 repowering (2 x SGT-300, just selected

with Technoserv AS EPC)- Minsk CHP-2 (2xSGT-600 in operation)- Beresovskaya GRES (2xSGT-700 in operations)

Opportunity Profile & CompellingEvent

Main project idea is to enhance Zhodino CHP efficiency. New GTCC-65unit shall replace one steam generator (50 t/h) and one hot water boiler(100 Gcal/h).

Involvement of the International Bank for Reconstruction andDevelopment (long term credit for 80% of the project cost for 15 years + 3years deferring of payment) substantially increases its feasibility.

Siemens Belarus 7

Main project idea is to enhance Zhodino CHP efficiency. New GTCC-65unit shall replace one steam generator (50 t/h) and one hot water boiler(100 Gcal/h).

Involvement of the International Bank for Reconstruction andDevelopment (long term credit for 80% of the project cost for 15 years + 3years deferring of payment) substantially increases its feasibility.

Site Location

BorisovBorisov

Zhodino CHP is located inBorisov, 80 km North-Eastof Minsk

Siemens Belarus 8

Current Project Set-Up

Erection &Commissioning

Supervision + Training

SОOО

SIT AB

Siemens Belarus 9

SGT-800 SupplyErection &

CommissioningSupervision + Training

RUE “Minskenergo”

Why shall we offer Local ExtendedScope? (For Discussion)

• The Customer needs complete delivery of the main equipment from GTsupplier (Siemens).

• The Customer is very sensitive to price of equipment.

• Local Extended Scope is a possible way to win the tender due to morecompetitive price, DDU delivery, local contract with payments in Euro.

• Surgutneftegas considers that local content is easier to maintenance.

Siemens Belarus 10

• The Customer needs complete delivery of the main equipment from GTsupplier (Siemens).

• The Customer is very sensitive to price of equipment.

• Local Extended Scope is a possible way to win the tender due to morecompetitive price, DDU delivery, local contract with payments in Euro.

• Surgutneftegas considers that local content is easier to maintenance.