Amayo Project Summary

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2 Amayo Project Summary Total Capacity: 39.9 MW Net annual energy production: 169,000 MWh Installation of 19 Suzlon S88v3 wind turbines of 2.1 MW each Suzlon supplies the WTG and completes mechanical and electrical installation of the WTG components Socoin, an EPC subsidiary of Union Fenosa, with extensive experience in construction of wind parks is responsible for the BOP The project is connected to the national interconnection system by the Amayo Electrical Substation The Project ties into an international 230 kv line 300 meters west of the substation which runs from the Masaya substation to Liberia (Costa Rica). The Power Purchase agreements were awarded via a competitive bid conducted by Dissur and Disnorte, subsidiaries of Union Fenosa. The Amayo project is the only wind project being constructed outside of Costa Rica and when it enters commercial operations it will be the largest wind project in the region 2

3 Project Location The Amayo Wind Power Project is located on kilometer 129 of Panamerica Sur Highway, at Rivas department. 3

4 The Wind Resource One of the best sites in Central America. Wind power class 6. Seven years of data collection ( ). During all these years several studies were done by companies of high international prestige: Jack Kline (EEUU), Windots, Garrad Hassan, Braselco (Brasil). All theses studies have concluded that the wind conditions to generate electrical energy are excellent: Average wind speed 9 m/sec Wind direction very constant NE-SO Low turbulence Low roughness Theses studies concluded that the project will have a net load factor in the mid to high 40 s. 4

5 The Wind Resource The project area has an excellent eolic resource with significant expansion potential. 5

6 Financing BCIE has provided $71.25 million of 15 year debt to the project and has a security interest in all of the project accounts, assets and contracts. Total Project cost of circa $100MM funded 50/50 by Arctas Capital Group and Centrans Energy Services 6

7 Key Contracts Power Purchase Agreements Twp agreements dated February 12, 2007 between Amayo and the two Nicaraguan subsidiaries of Union Fenosa that run the country s electricity distribution system 15 year terms from start of commercial operations Energy only pricing, no capacity payment. Starts at a fixed price per kwh and escalates at a U.S. inflation-linked index capped annually The buyers must take all the kwh the plant produces There are no seasonal pricing differences and no power sales if no wind. 7

8 Key Contracts Construction Agreements Amayo has a Supply and Installation Agreement (SIA) and Warranty and Maintenance Service Agreement (WMSA) with Suzlon dated March 31 st, 2007 Amayo has a BOP contract with Socoin dated May 31 ST, The scope of work of this contract includes all civil and electrical works to connect the WTG to the substation, the engineering, procurement and erection of the substation, and the erection and commissioning of the transformer An interface agreement negotiated between Suzlon, Socoin and Amayo addresses overlap and cooperation issues 8

9 Benifits to Nicaragua Foreign investment: - The project represents one of the biggest foreign investments in Nicaragua and at the time of Inauguration will be the biggest wind park in the Region Technology transfer: - Displacement of old carbon-intensive technology with state of the art wind technology. Will provide wind resource rich Nicaragua with first experience with utility scale WTGs. Job Creation: - Over 200 jobs created during construction and $10MM investment in local communities In lodging, food and workforce consumption. Environment: - Reduces 112,000 tons of carbon dioxide and other pollutants such as sulfur and carbon monoxide

10 Why is the project important for Nicaragua? Increase in power supply: - 169,000 MW/h of new generation per year will reduce propensity for rationing and help Nicaragua build reserves -Clean energy production without fuel oil and contaminants. Reduction of oil imports Nicaragua will avoid the purchase of an equivalent of 217,000 barrels of bunker per year, representing a savings of between $15-30 MM in Petro-imports and a reduction of pressure on the national current account deficit, ultimately strengthening the local currency. First Step in Changing the Nicaraguan Energy Matrix-The entrance of the Amayo Wind Park will mark the first new utility scale renewable energy plant in nearly a decade for Nicaragua. Amayo is the first step in alleviating the Nicaragua's high dependency on thermal sources for electricity generation.

11 Competitive Pricing $$ Barril $ 40 $ 50 $ 70 $ 90 $ 110 $ 130 $ 150 #6 $ 90 $ 100 $ 122 $ 144 $ 166 $ 188 $ 210 #2 $ 99 $ 115 $ 147 $ 178 $ 210 $ 242 $ 273 Amayo I $ 90 $ 90 $ 90 $ 90 $ 90 $ 90 $ 90 Oil Import Savings $$ Barril $ 50 $ 70 $ 90 $ 110 $ 130 $ 150 Import Savings (US Millions) $ 10.9 $ 15.2 $ 19.5 $ 23.8 $ 28.2 $

12 Carbon Credits Project expects to displace 112,000 tons of C02 per annum Project has successfully completed all local requirements, working closely with the national authority MARENA Public consultation in May 2008 was met with enthusiastic responses from stakeholders Received favorable Validation report and commenced registration with UNFCCC in November 2008 Final approvals targeted for February 2009

13 Project Status Currently expect to tie in to grid on December 14 First 15 turbines expected to be on line by end of year Commercial operations of all units expected for first half of January Project expected to be completed within budget Government continues to support project with overall coordination of regulatory bodies as the project is established as a Market Agent and enters into commercial operations 13