Mini Hydro Power Plant 7,5 MW in Lubuk Gadang, West Sumatera, Indonesia

PT SELO KENCANA ENERGIPh: +6221 722 8483 / 722 8480

Fax: +6221 720 8191email : info@sk-energi.com

Project Summary

Project : Mini Hydro Power PlantLocation : South Solok Regency, West Sumatera Province

Study Site

Catchment Area

DESIGN FACTOR FOR MHPP CAPACITY(based on daily water flow rate 1989-2005)

2,5 MW MHPP requires 6,47 m3/sec;

3x2,5 MW requires 19,43 m3/sec

Revenue Streams

A. Revenue from PLN. Contract 15 years Power Purchase Agreement with PT. PLN (Persero). Grid connected, total energy produced is purchased by PLN. Fixed contract price 770 IDR ( 7,7 cent USD) / kwh for 1st until 5th year 485 IDR ( 4,85 cent USD) / kWh / year for 6th year to 15th year

B. Revenue from Carbon Financing. 30.000 ton CO2 reduction. €7 ~ €23 (10 USD ~ 30 USD) / ton CO2

Project Summary

Total Investment - Capex (civil) : 8.285.000 USD - Capex (machinery) : 4.000.000 USD- Land : 200.000 USD- Working Capital : 125.000 USD- IDC : 1.095.000 USD Self finance:- Paid up equity : 400.000 USD - Additional equity : 848.500 USD

Senior debt : 8.739.500. USD with interest 10% paMezzanine loan : 2.497.000. USD

Project Feasibility

- IRR : 16,07%- R.O.E : 22,47%- NPV : 5.622.014 USD

(using discount rate 10%)

- Simple Pay back period: 4 years

- Exit strategy : buy out in 5 years

RiskDevelopment Cost

Remittances

Land Clearing

Construction

No

Yes (supervised by independent consultant)

Construction Damage

Operational & Maintenance

No (Covered by Insurance Co)

Yes (Small)

No

No

Prepared byPT. SKE

SKE & Investor

P.P.A

Management Team

1. Financial Team 2. Management Team

Rudy S. Sunggoro(Banking and Trading)

Eddy Sutedjo(CFO Olex Cable and PT. Diva)

Andi B. Salim(IBM, Sucaco, PT Antam Tbk)

Suwardi(Director PT Selo Kencana)

3. Technical Team 4. Legal

Imam Santoso(PLN, Mini Hydro)

Yani Kardono (Corporate Infrastructure)

THANK YOU