KABOMPO GORGE POWER STATION PROJECT LAUNCH

INTRODUCTION Overview of CEC Zambian energy sector overview Kabompo Gorge Project overview Benefits to North-Western Province, Energy Sector & Zambia

Overview of CEC

Zambian energy sector overview

Kabompo Gorge Project overview

Benefits to North-Western Province, Energy Sector & Zambia

CEC BUSINESS Formed in 1997 from privatisation of ZCCM Business: Electricity utility operating on the Copperbelt Province of Zambia Supply of power to mines Power transmission for ZESCO and SNEL (DRC) Telecommunications (Carrier of carriers on the Copperbelt) Infrastructure 880km of 220kV and 66kV transmission lines 80MW of gas turbine generation 38 major substations 540km of optic fibre on power lines Current demand of CEC Customers:540MW Demand is projected to increase to 750-800 MW by 2012 Power wheeled for other parties 270MW in respect of ZESCO Copperbelt loads 210MW in respect of SNEL exports to SAPP

Formed in 1997 from privatisation of ZCCM

Business: Electricity utility operating on the Copperbelt Province of Zambia

Supply of power to mines

Power transmission for ZESCO and SNEL (DRC)

Telecommunications (Carrier of carriers on the Copperbelt)

Infrastructure

880km of 220kV and 66kV transmission lines

80MW of gas turbine generation

38 major substations

540km of optic fibre on power lines

Current demand of CEC Customers:540MW

Demand is projected to increase to 750-800 MW by 2012

Power wheeled for other parties

270MW in respect of ZESCO Copperbelt loads

210MW in respect of SNEL exports to SAPP

NETWORK MAP

CEC INVESTMENTS Transmission Investments Investments in transmission equipment to connect new mining operations on the Copperbelt: $35m investment to connect KCM’s Nchanga Smelter and new deep mine at Konkola to the CEC system; $11m investment to connect First Quantum’s Frontier Mine to the CEC system; $10m investment to replace & refurbish CEC system assets. Interconnector with DRC Investment of $14m planned for 2008/09 for an additional double circuit line between Zambia and DRC. Generation A number of viable hydro and thermal generation projects have been identified for development. Telecoms Further investment planned in fibre backbone that has been operational since 2003.

Transmission Investments

Investments in transmission equipment to connect new mining operations on the Copperbelt:

$35m investment to connect KCM’s Nchanga Smelter and new deep mine at Konkola to the CEC system;

$11m investment to connect First Quantum’s Frontier Mine to the CEC system;

$10m investment to replace & refurbish CEC system assets.

Interconnector with DRC

Investment of $14m planned for 2008/09 for an additional double circuit line between Zambia and DRC.

Generation

A number of viable hydro and thermal generation projects have been identified for development.

Telecoms

Further investment planned in fibre backbone that has been operational since 2003.

ZAMBIA’S DEMAND vs GENERATION CAPACITY EXISTING GENERATION CAPACITY (POST-REHAB) ZAMBIA FORECAST WINDOW Demand is projected to exceed generation capacity – even after rehabilitation of Kafue Gorge and Kariba hydro stations between: 2010 under high scenario; and 2013 under low demand scenario. Low demand scenario High Demand Scenario

Demand is projected to exceed generation capacity – even after rehabilitation of Kafue Gorge and Kariba hydro stations between:

2010 under high scenario; and

2013 under low demand scenario.

KABOMPO GORGE PROJECT OUTLINE CEC and Tata Africa selected as joint developers following a competitive process managed through OPPPI; Expected investment of $80m for 34MW power station; Dam height estimated at 65m, with a 4km tunnel; Project outline: Feasibility study – circa 12 months; Key issues – geology, hydrology, environmental, technical & financial. Tendering & Construction – circa 48 months; Commissioning – 2014.

CEC and Tata Africa selected as joint developers following a competitive process managed through OPPPI;

Expected investment of $80m for 34MW power station;

Dam height estimated at 65m, with a 4km tunnel;

Project outline:

Feasibility study – circa 12 months;

Key issues – geology, hydrology, environmental, technical & financial.

Tendering & Construction – circa 48 months;

Commissioning – 2014.

KABOMPO GORGE – PICTURES FROM SITE

BENEFITS OF PROJECT Greater generation capacity in Zambia: Reduced load shedding and increased industrial / mining investment. Reinforce power supplies to North-Western Province. Zambian employment and expertise: Will utilise local expertise in all phases of the project’s development. Estimated 40 direct employees at plant once completed, plus indirect employment created. Bringing development to a remote area of the country: Improved road access, public infratructure. Policy success: Government policy of encouraging private investment in the energy sector now being demonstrated to work.

Greater generation capacity in Zambia:

Reduced load shedding and increased industrial / mining investment.

Reinforce power supplies to North-Western Province.

Zambian employment and expertise:

Will utilise local expertise in all phases of the project’s development.

Estimated 40 direct employees at plant once completed, plus indirect employment created.

Bringing development to a remote area of the country:

Improved road access, public infratructure.

Policy success:

Government policy of encouraging private investment in the energy sector now being demonstrated to work.