Presentation project miel_ii

2. • Miel II is located on the lower part of the Eastern slope of the
Central Andes mountain range in the east of Caldas.
• Caldas has been a Department of important hydro projects,
due to the abundance of water. One example is La
Hidroeléctrica Miel I (400MW), one of the most important in
the region in operation since 2003.
• Our Project, La Central Hidroeléctrica Miel II, is a run of the
river plant with an installed capacity of 120 MW), and will be
located close to the main cities in the country (Bogotá,
Medellín, Cali), making this Project of great importance for the
safety of the electric grid in this region.

3. Local potential for renewable energy generation
• Colombia has a public policy in order to migrate to renewable energy sources: Hydropower, Geothermal,
and Solar energy. (2015 United Nations Climate Change Conference – COP 21 Colombia Commitments)
• Non-regulated energy consumers in Colombia are expected to have a lower price per kilowatt, seeking to
improve the competitiveness of the country. Need to decrease the dependence on fuel energy sources
such as fuel oil, gas and coal.
• Local mountainous topography and special rainfall regimes provide the necessary conditions for hydro
generation in the north and west part of the Department of Caldas, and special high solar radiation sites in
the area of the Magdalena River at La Dorada also provide for opportunities, together with the main grid
running through this areas. There is also a lot of geothermal potential in the region due to volcanic activity,
currently under partial exploration by CHEC (EPM) and ISAGEN (Brookfield).

4. Technical and Environmental Information
CONCEPT UNITS VALUE
Type Run-of-the-river
Average flow mᵌ/Sec 29,5
Design flow mᵌ/Sec 35,6
Ecological flow mᵌ/Sec 3 sept – 6,3 April
Type of dam Weir
Height of weir MASL 890
Powerhouse Superficial
Tunnels m. 740 y 8360
Diameter of tunnels m. 4,8
Head m. 378
Installed capacity MW 120
Turbines 3 Francis (vertical)
Interconnection line Km 29
Firm annual energy generation GWh-y 124,5
Annual energy generation GWh-y 638
Construction time Months 36
CONCEPT UNITS VALUE
Rain regime 2 rainy seasons
Apr – May / Oct – Nov
2 dry seasons
Jul – Aug / Jan – Feb
Transition months
Mar - Jun - Sep - Dec
CAPEX MUSD 250
Environmental License First approved in 1994, recent update
as of 2017
New roads and rehabilitation km 15,8 – 17,0
Geological Studies:
Initial Design (25 perforations) m 4238
Final Design (22 additional
perforations)
m 430
Connection to the National
Grid
• Approved site of connection to the
grid at 230 kv
• Connection line: 29 km, parallel to
existing Miel I plant
• Designs, permits, right of way and
licenses are still to be obtained
• Connection site has a contract
signed, in place and guaranteed
Clean energy generation
Preserves water life
downstream

5. Community and Social Aspects
• The steps taken by La Promotora during 2018, 2019 and 2020 brought the project back to life into the surrounding
communities.
• As of know La Promotora is working in the following areas: (i) recovering and maintaining the good image of Hydro Projects
in the area, (ii) demonstrate continuity of the project, and (iii) provide full disclosure of the project and its social
commitments.
• According to the Environmental License (EL), the project is in a preoperational phase, and the activities undergone during
this phase are being clearly documented, and all the obligations under the EL for the communities are being developed.
• In the past, relations with the community were centered on technical issues, and no empathy bonds were created with
them, which made it more difficult, but this is being taken care of as of now.
• A Social Strategic Plan has been designed and it’s being undertaken in order to obtain a “Social License”.
• The plan is supported in a more personal and small groups approach in the rural areas. No massive urban exercises will be
done.
• An update of the project is being done in the area of influence to make sure all communities are involved.
• A plan for communications with the community is being implemented.
• A Social Risk Matrix has been designed for the project in order to have a proper risk management of all social aspects.

6. • Job creation: 400 direct jobs
in labor and technicians.
During operations will create
long term jobs in
maintenance, security, etc.
Indirect jobs will also be
created as new infrastructure
will bring new visitors to the
area in this touristic region.
• Miel II contributes
to the country’s
safe energy
supply.
• The Project will invest
in updating local rural
water supply systems
during construction and
provide technical
Support during
operation.
Community and Social Aspects

7. • Local population
will be trained so
that they can be
part of the labor
force in
construction and
future operation.
• Training programs
will improve
possibilities of
getting new jobs
for many of the
local inhabitants
who will be
preferred over
outsiders during
construction and
operations.
• Future investors
will find a suitable
environment
working as all
work is being
done towards
communitarian
wellbeing.
• The project has
generated new spaces
for interactions with
the local
communities and has
helped local leaders in
their ability to
communicate their
needs, especially in
terms of supporting
new productive
projects.
Community and Social Aspects

8. • During construction,
local electricity
networks will be
refurbished and will
improve the quality of
energy service.
• Construction,
widening, and
maintenance of 17
km of rural roads will
be carried out in the
area, benefiting small
rural communities.
• Generation projects have to
pay a yearly fee for the
investing in the basins of the
project
• The towns of Manzanares,
Pensilvania, Marquetalia and
Samaná will benefit of these
investments.
Community and Social Aspects

9. • The structure for attracting investors has changed from a predetermined Promotora stake in the equity of the
project in exchange for the property of the project (designs, permits, etc.), to a contractual structure in which
Promotora cedes ownership of the Project and licenses and gets in return the following (see figure in next
slide):
 An upfront payment (moment TBD) in order to recoup investments pending, and short-term obligations
(minimum approximately USD 2 M).
 A market driven royalty payable to la Promotora as a % of EBITDA for 20 years, starting on year six of
operations
 A free option for of the project least 12.5% of the equity of the project company once the 20-year
royalty period is over
• La Promotora will pre-market the project’s energy in order to facilitate a future financial closing for the
investor in case it is of their interest.
Project Development and Strategic Alliance

10. Promotora Miel II
Property of the Project
Investor
100% Funds (Equity and
Debt)
Construction, operation, maintenance
and energy commercialization
Optional energy contract
20 years
Upfront
payment
Royalty
(% EBITDA)
Option for 12.5 %
Equity
Project Development and Strategic Alliance

11. Legal Technical Financial
Directed to strategic investors whose
bussiness is to:
• Generate/Trade energy
• Develop Hydro Power Plants as
owner, partner, financer, developer,
or builder.
• Experience in raising funds for equity
and/or debt for at least USD 250
million
• Bank stand by or guarantee for at
lease COP 50.000 million (USD 15
million)
• Equity level of at least COP 500.000
million (USD 150 million)
• Experience in constructing,
operating, constructing or operating
at least one power plant of more than
120 MW in the past 20 years.
• Contract Supervision the ally has to
contract a recognized company for
supervisión of the project.
Main Requirements for the Strategic Ally

12. 100% financing of the project
Contract the EPC
Design and obtain de environmental permits and
rights of way for the 29 km interconnection line
Comply with al guarantees and requirements for
the contract and the operation in the market
Perform all payments to La Promotora
according to the contract
Comply with all regulatory mandates in terms of
the environment and other agencies
Bring the plant to operation and perform standard
AOM practices
Perform a technical due dilligence of the designs,
design updates, as well as technical, social and
envirnomental studiesrelated to the project
Main Obligations for the Strategic Ally

13. Opening of
Process
October 2020
• Due Diligence
• Project Analysis
• Q&A
• Authorizations
Offer
May 2021
Closing
June 2021
Timetable

14. Contribuiremos a la seguridad energética de la región y del país.