International Electric Power

Project Phoenix
Waste-to-Energy Project
Haiti

AND
IEP-Morgan Stanley
Caribbean Renewable Energy Investment Initiative



PLATTS JANUARY 2013
Project Phoenix
Earthquake Effects
Mutual Goals
Current Conditions in Haitis Waste and Energy Sectors
Project Phoenix Solution
Major Benefits
Lessons learned
IEP and Morgan Stanley Caribbean Initiative
Caribbean Overview
$1 Billion Investment Capital
Situational Assessment
Offer and Conditions


Topics
2
On January 12
th
, 2010 Haiti experienced a
catastrophic magnitude 7.0 earthquake with its
epicenter 16 miles west of Port-au-Prince.
Over 50 aftershocks measuring 4.5 in magnitude
or greater were recorded in the following weeks.
Resulting in more than $7.8 billion in damage, or
120% of the countrys GDP.
250,000 residences and 30,000 commercial
buildings were either destroyed or severely
damaged.
3
People Affected by the Earthquake
Deaths 300,000
Injuries 300,000
Left Homeless 1,000,000+
Project Phoenix
Earthquake Effects
Produce cost effective and efficient electricity
Effectively use the indigenous fuels of the country
Provide clean and sanitary conditions to promote economic and social growth
Implement Project Phoenix over 2 years
PPV between IEP and GOH - MSA and PPA signed on March 31, 2012

4
Project Phoenix
Mutual Goals
5
Haiti is short at least 500 MW
235 MW of installed capacity, but
only 110 MW available
Average tariffs of $0.34 per kWh
90% derived from oil-fired plants
10% from one hydro facility
100-200 MW planned over next 5 years
Unconnected T&D system; captures
only 25-35% of usage fees
Over use small generators due to lack of
dependable dispatch
EDH runs at a significant annual deficit
Sovereign guarantees not available

Project Phoenix
Current Conditions in Energy

6
Approximately 2,000 tons of MSW
produced daily in greater Port-au-Prince
Approximately 1,000 tons collected daily
SMCRS 600 -700 tons
Private Collectors 300-400 tons
Truitier Landfill is unlined and
unregulated; supporting 700 families
Storm events fill canals, waterways and
discharge into the sea
Uncollected waste contributes to spread
of disease
SMCRS is under capitalized and fraught
with maintenance issues; over 1,000
employees have tested positive for
tuberculosis and other respiratory illness
Project Phoenix
Current Conditions in Waste

7
Lignite Mining and
Transportation Lignite
from the Central Plateau
is used as a supplemental
fuel, creating a new
industry.
Waste Collection and
Processing Robust
collection and processing
of MSW uses the latest
technology and leaves
neighborhoods clean of
refuse, reducing
infections and disease.
Energy Generation State-of-the-art WTE
technology generates electricity in a safe,
environmentally-friendly manner at costs
well below fossil fuel plants in Haiti.

Project Phoenix
Solution
X
Design was revised to remove lignite
and operate with 100% MSW. Output
was reduced from 50MW to 30MW
Monte Carlo analysis performed on the most
current and reputable waste characterization
studies support a plant size of 16 -55 MW
depending on the fuel composition.
Variables include:
Waste quantities generated daily
Inclusion of plastic as fuel
Moisture content
Plant design and efficiency
Project Phoenix
Understanding Waste as a Fuel Source
9
Project Phoenix
Integrated WTE Solution
$250 Million
30MW WTE Integrated Facility
15KM north of Port-au-Prince on 400 acres
Expandable as population grows
120 waste collection vehicles, 5 transfer
stations and 15,000 bins and containers
4 processing lines able to sort 100% of MSW
removing varying degrees of recyclables
60 acre landfill for ash and hazardous material
Organics pre-treated to improve boiler
performance
Plastics can be used as fuel or recycled to
produce value-add products
Can be modified for sanitary sludge and tires
Comprehensive Environmental Controls
Seawater Cooling
10
1,600 direct jobs
PPA price - $0.17/kWh
Reduces dependency on oil imports
Reduces carbon footprint
Creates other revenue sources for GOH
Recyclables
Cement additives
Purified water
Significantly funds waste system
Cleans streets to encourage investment
Reduces air and water borne pathogens
Facilitates closure of unregulated landfill
Over $50 Million annual revenues/savings for the GOH
Demonstrates ability to attract private capital

Project Phoenix
Major Benefits

11
Multinational Organizations:
Heavily influence investment decisions
Prefer competition even on privately funded projects
Have a strong say - but rarely provide leadership
Takes time to build trust with private sector
Expect you to be aligned to their plans
Government of Haiti:
Highly motivated to find solutions
Working hard to dispel business as usual legacy
Cannot act unilaterally without multilateral concurrence
Does not have the capacity (resources) to evaluate complex transactions
Private Investor:
Build consensus - but make sure you have a counterparty lead
Assure you have a motivated lead financial partner
Be patient, collaborative, transparent, and have sufficient development resources
Project Phoenix
Lessons Learned

12
IEP-Morgan Stanley
Caribbean Renewable Energy
Investment Initiative
Two Energy Categories:
Gas Producers Trinidad and Tobago
Oil Importers the rest!
Two Political Categories:
Independent Entities former Spanish, French and English colonies
Sovereign Entities - American, Dutch and French
Energy Costs:
High due to reliance on imported oil
Renewables:
Windward Island excellent wind capacity
Leeward Islands excellent solar capacity
All have varying capacity for biomass, waste-to-energy and small hydro
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IEPMorgan Stanley Joint Proposal:
Caribbean Overview
IEPMorgan Stanley Joint Proposal:
Caribbean Overview
COUNTRY
Exsiting Generation
EXISTING AND POTENTIAL GENERATION IN THE CARRIBBEAN
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COUNTRY
Exsiting Generation
1 Anguilla

2 Antigua and Barbuda

3 Aruba

4 Bahamas

5 Barbados

6 British Virgin Islands

7 Cayman Islands

8 Cuba

9 Dominica

10 Dominican Republic

11 Grenada

12 Guadeloupe

13 Haiti

14 Jamaica

15 Martinique

16 Montserrat

17 Puerto Rico

18 St. Kitts and Nevis

19 St. Lucia

20 St. Vincent and the Grenadines

21 Trinidad and Tobago

22 Turks and Caicos

23 US Virgin Islands

IEPMorgan Stanley Joint Proposal:
$1 Billion Investment Capital






15
IEP and Morgan Stanley have
teamed to promote $1 Billion in
energy sector investment in
Caribbean.
Projects will consider host
country power needs, natural
resources, political landscape,
and available credit.

IEP will vet the project to
determine the best technology
fit and implementation strategy.

PPVs will be encouraged when
appropriate.
$1Billion
Project
Execution
Political &
Credit Risk
Availability
of
Financing
Natural
Resources
&
Technology
Viability
Energy
Deficit
Current
$/kWh
Price



16
Suitable Technologies
Coal
Gas (CNG) - Combined and Simple Cycle
Thermal Gas or Oil
Waste-to-Energy (WTE) - Incineration or Biogas
Geothermal
Small Hydro
Solar - PV
Wind - Large and Small Turbines

Currently Unavailable
Nuclear, LNG, and Large Hydro
Countries Evaluated
Haiti
Dominican Republic
St. Lucia
Cayman Islands
Bahamas
St. Kitts & Nevis
Bonaire
Key Organizations
CARICOM
CREDP
CARILEC
OECS








IEPMorgan Stanley Joint Proposal:
Situational Assessment
Ashley
Financing
Access to capital pool - $ 1 billion
Able to finance 100% of project costs
Access to global capital markets
Access to credit enhancement programs
and instruments
Value Optimization
Speed of execution and closing
Financing and tax structuring to improve
returns
Accurate revenue projections and stability
through hedging and low-cost financing
High-quality, low-cost EPC contracting
Operational Efficiency
Experienced low-cost generator
Effective use of local resources









Conditions
Project size 2 to 25MW

Ability to obtain by December 31, 2013:

1) Signed PPA for 20 years at a fixed off-
take price of electricity:

Wind US$ 0.16 to 0.20 / kWh
Solar US$ 0.20 to 0.24 / kWh
WTE US$ 0.15 to 0.25 / kWh
Small hydro US$ 0.16 to 0.26 / kWh
Geothermal US$ 0.15 to 0.30 / kWh

2) Land control rights and documents

3) Resource availability study

4) Environmental Impact Assessment

5) Interconnection study

IEPMorgan Stanley Joint Proposal:
Offer and Conditions
INTERNATIONAL ELECTRIC POWER LLC

CONTACT INFORMATION
18
603 Stanwix Street (P): +1-412-567-1491
Gateway Two, Suite 1825 (F): +1-412-567-1501
Pittsburgh, PA 15222, USA (E): info@iepwr.com
(W): www.iepwr.com