Investment Proposal for Investment Proposal for Sustainable Energy Project Sustainable Energy Project

(Geo Thermal Power)(Geo Thermal Power)Mr. Ranjan BhattacharyyaMr. Ranjan Bhattacharyya

International Sustainable Energy Group (ISEG)International Sustainable Energy Group (ISEG)

Djibouti SnapshotDjibouti Snapshot Erstwhile French Colony, independent since 1977Erstwhile French Colony, independent since 1977 Has strong ties with France and the US. Djibouti hosts the Has strong ties with France and the US. Djibouti hosts the

only US military base in sub-Saharan Africa.only US military base in sub-Saharan Africa. Population : 757,074Population : 757,074 Government : Presidential form of democratic governmentGovernment : Presidential form of democratic government President : Ismail Omar GUELLEHPresident : Ismail Omar GUELLEH Djibouti occupies a strategic geographic location at the mouth Djibouti occupies a strategic geographic location at the mouth

of the Red Sea and serves as an important trans-shipment of the Red Sea and serves as an important trans-shipment location for goods entering and leaving the east African location for goods entering and leaving the east African highlands.highlands.

Djibouti Geographical LocationDjibouti Geographical Location

Djibouti - ProblemsDjibouti - Problems Djibouti has experienced relatively minimal Djibouti has experienced relatively minimal

impact from the global economic downturn, impact from the global economic downturn, but its reliance on diesel-generated electricity but its reliance on diesel-generated electricity and imported food leave average consumers and imported food leave average consumers vulnerable to global price shocks.vulnerable to global price shocks.

Djibouti - OpportunitiesDjibouti - Opportunities Natural resources include potential geothermal Natural resources include potential geothermal

power, gold, clay, granite, limestone, marble, power, gold, clay, granite, limestone, marble, salt, diatomite, gypsum, pumice, petroleumsalt, diatomite, gypsum, pumice, petroleum

The proposed geo thermal power plant along The proposed geo thermal power plant along with ancillary project of growing food on with ancillary project of growing food on sustainable basis can prove to be of great sustainable basis can prove to be of great benefit to the country and hence is likely to benefit to the country and hence is likely to enjoy the full support of the governmentenjoy the full support of the government

Project ObjectivesProject Objectives Bring sustainable and affordable power to a Bring sustainable and affordable power to a

power-deficit area giving a thrust to economic power-deficit area giving a thrust to economic growth and developmentgrowth and development

Ancillary project of growing food using the Ancillary project of growing food using the available water and landavailable water and land

Project HighlightsProject Highlights Project for putting up 150 MW Geo Thermal Power Project for putting up 150 MW Geo Thermal Power

plant in Djiboutiplant in Djibouti Formal agreement for exploration and development Formal agreement for exploration and development

of geothermal resources for 25 years signed with the of geothermal resources for 25 years signed with the Government of DjiboutiGovernment of Djibouti

Study carried out by team from Indian Institute of Study carried out by team from Indian Institute of Technology (IIT), MumbaiTechnology (IIT), Mumbai

Proposal to provide clean power at US 10 cents per Proposal to provide clean power at US 10 cents per KW as against US 35 cents per KW (diesel power) at KW as against US 35 cents per KW (diesel power) at presentpresent

Geo Tectonic PlatesGeo Tectonic Plates

Landscape at siteLandscape at site

MarketMarket DjiboutiDjibouti Other countries in North Africa (for excess Other countries in North Africa (for excess

power)power)

MarketingMarketing Agreement signed for 25 years with Agreement signed for 25 years with

Government of Djibouti for exploration and Government of Djibouti for exploration and development of geo-thermal resourcesdevelopment of geo-thermal resources

Power Purchase Agreement to be signed at the Power Purchase Agreement to be signed at the time of finalization of Financial Partnerstime of finalization of Financial Partners

Project StatusProject Status Agreement signed with governmentAgreement signed with government Studies carried out by team of scientists from Studies carried out by team of scientists from

IIT, MumbaiIIT, Mumbai Site SelectedSite Selected Financial partners to be finalized by June, Financial partners to be finalized by June,

20112011 Phase 1 needs to commence by July 2011Phase 1 needs to commence by July 2011

Financial TargetsFinancial Targets Production starts by 2Production starts by 2ndnd year year Break even by 5Break even by 5thth year year 55thth year revenues : USD 100 million year revenues : USD 100 million

Total InvestmentTotal Investment USD 440 millionUSD 440 million

As equity from private investment groups : USD As equity from private investment groups : USD 40 million40 million

As loan (at 4% p.a.) from African Development As loan (at 4% p.a.) from African Development Bank : USD 300 millionBank : USD 300 million

From internal accruals : USD 100 millionFrom internal accruals : USD 100 million

Equity InvestmentEquity Investment USD 40 million (in 3 tranches viz. 10, 20 and 10)USD 40 million (in 3 tranches viz. 10, 20 and 10) Equity stake – negotiableEquity stake – negotiable Valuation parameters : position as sole provider of Valuation parameters : position as sole provider of

geo-thermal power in Djibouti for 25 years, total geo-thermal power in Djibouti for 25 years, total revenues and profits over 25 yearsrevenues and profits over 25 years

Exit routes :Exit routes : Future listing on international stock exchange(s) Future listing on international stock exchange(s) M & AM & A

International Sustainable International Sustainable Energy GroupEnergy Group

International team of experienced International team of experienced entrepreneurs consisting of geologists, entrepreneurs consisting of geologists, geophysicists, engineers, finance and legal geophysicists, engineers, finance and legal professionalsprofessionals

For further informationFor further information Contact Mr. Ranjan BhattacharyyaContact Mr. Ranjan Bhattacharyya

Email : Email : ranjan@anuron.comranjan@anuron.com

Thank you !Thank you !