ADAMS SOLAR PV PROJECT

PUBLIC HEARING
KIMBERLEY
18 FEBRUARY 2014

Northern Cape PV Project 82,5MW

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PROJECT COMPANY
General information
PREFERRED BIDDER IPPID RE_PV_0006_004
Adams Solar PV Project Two (Pty) Ltd
2012/114124/07
Preferred bidder in REIPPPP Round 3
Registered address: No. 3 Atherstone Bower, 77 King
Edward Road, Lombardy East 2090
Johannesburg, South Africa
PO Box 2005, Edenvale 1610

Tel:

071 299 1468

Alternative:

072 261 6601

Email:

riccardo.dalisera@enel.com

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COMPANY STRUCTURE: SPV, EPC and O&M

Contractors

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THE SPONSOR COMPANY OVERVIEW

Enel Green Power South Africa BV

A subsidiary of Enel Green Power

SpA, the Renewable company of Enel
SpA the biggest Italian Electricity Group

Established in 2013, specifically for

participation
in
the
Third
Bid
Submission Phase of the Department of
Energys IPP-Renewable Procurement
Programme

Awarded in the Third Bid Submission

Phase for 6 Renewable Projects (4 PV
and 2 WIND) > 500 MW

Participating in Upington PV Project

(Northern Cape) awarded during the
Second Submission Phase, currently
under construction

Focused on long term presence and

complex business plan in South Africa
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ENEL GREEN POWER GLOBAL PRESENCE

September 2013
Iberia & Latin America

North America

Capacity: 2,898 MW
Production: 8.5 TWh
Technologies:

Capacity: 1,679 MW
Production: 4.9 TWh
Technologies:

Italy&Europe
Capacity: 4,112 MW
Production: 15.3

TWh

Technologies:

Capacity by technology
Production by technology
57%

38%

9%
30%

20%

3%
1%

2%

2 2

Total = 8.7 GW
1.

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Geo

Hydro

Wind

Biomass

39%

Solar

Reported capacity as of September 30, 2013. Reported production latest twelve months
2. Including co-generation

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1%

Total = 28.7 TWh

2 2

ENEL TODAY
An international energy operator
Presence in
40 countries
Installed capacity
97,800 MW
Annual production
296 TWh
EBITDA
16.7 Bln
Customers
61 million
Employees
73,700
Capex 2013-17
27 Bln
Stock exchange
Enel is listed on the Milan stock exchange (~1.33 mln shareholders). 14
companies of the Group are listed on Milan, Madrid, Mosca, New York stock
exchanges and in other Latin American countries
Data as of 31.12.2012.

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THE SPONSOR COMPANY OVERVIEW

Enel Green Power South Africa BV

The primary investment vehicle

of the Royal Bafokeng Nation
(RBN),
a
community
of
approximately 150 000 Tswanaspeaking people in South Africas
North West Province

Established
in
2006
as
a
community-based
investment
company

Holding assets across the mining,

financial services, infrastructure,
oil and gas services and industrial
sectors

Looking for stable and long term

growing investments

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LOCATION OF THE PV PLANT

The Adams Solar PV project is situated in the Northern Cape Province, 21 kilometers south
of Hotazel and 39 kilometers north of Kathu along the R380 tarred road joining these two
towns, on the farm Adams 328. The site adjoins the tarred road to the east, while Mamatwan
manganese mine (owned by the BHP Billiton mining group) occurs west of the tarred road and
open pit excavations occur roughly 2 kilometers west of the site
Latitude 27 22' 13.32" S`
Longitude 23 05' 52.36" E

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Use: Insert Classification

PV PLANT GENERAL TECHNICAL INFORMATION

Address:

Farm Adams, Number 328, Portion 0

Kuruman RD, Joe Morolang Municipality

Total Area:

275 ha

Generation type:

Solar Photovoltaic Plant (PV)

Expected Commissioning:

August 2016

Planned Capacity:

82.5 MWp DC

Estimated annual output:

167 GWh average over 20 years

Specific Output:

2032 kWh/kWp/annum

CO2 Saved:

150981 tons/year

Coal Saved:

40000 tons/year

PV Module Technology:

Thin Film

Mounting Structure:
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Fixed ground mounted 14 x 3

portrait tilted at 20, oriented at 0N
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Use: Insert Classification

PV PLANT SITE & GRID CONNECTION 1/2

The proposed construction of a line from the Project site to the Dougnor
substation was dependant on the construction of a second line between the
Dougnor Substation and the nearby Ferrum-Umtu 132kV line. This second line
has been delayed and therefore it will no longer be possible for Adams Solar
PV 2 to supply into the Dougnor substation.
As a direct consequence the solution as presented in the Cost Estimate Letter is
no longer feasible. The new solution under consideration involves the
construction of a Switching Station adjacent to the Ferrum Umtu line. A
line of roughly 700m between the on-site transformer and this switching
station will be built.
Eskom proposes this as a Self-Build project.

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Use: Insert Classification

PV PLANT SITE & GRID CONNECTION 2/2

New FerrumUmtum OHL

ADAMS PV PLANT

PV Plant Step
Up
Dougnor Station
132kV/32kV

700 m OHL
between Step-Up
and Switching
Station

Switching
Station

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LIST OF PERMITS
Permit

Status

Comments

EA

Granted

Date: 28/03/2013

Civil Aviation

Granted

Date: 17/06/2013

Heritage Consent

Granted

Date: 20/04/2012

Consent for Subdivision of

Agricultural Land

Expected
Mid March

Currently drafting approval letter

Consent for Site Access

Granted

Date: 12/07/2013

SKA Approval

Granted

Date: 19/07/2013

DMR Consent

Granted

Date: 28/11/2012

LCC (Land Claim Consent)

No Claims

Date: 13/08/2012

Water General Authorization

Submitted

To be obtained prior to Financial Close

Consent to Change Land

Use - Rezoning

Granted

Approved by Municipality (22/01/2014)

Building Plan Approval

Pending

To be obtained prior to
Financial Close

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FINANCIAL INFORMATION
TIMING
Construction
01-Jul-14
25 months
31-Jul-16

Start date
Duration
End date

Operations
01-Aug-16
20 years
31-Jul-36

CAPEX SUMMARY AND DRAWDOWN PROFILE

Socio Economic
Development
TOTAL
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Cumulative Capex Spend

0.1%
100%
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01-Jul-16

01-Jun-16

01-May-16

01-Apr-16

01-Mar-16

01-Feb-16

01-Jan-16

01-Dec-15

01-Nov-15

01-Oct-15

01-Sep-15

01-Aug-15

01-Jul-15

01-Jun-15

01-May-15

01-Apr-15

01-Mar-15

01-Feb-15

01-Jan-15

01-Dec-14

01-Nov-14

01-Oct-14

01-Sep-14

01-Aug-14

37.2%
58.1%
0.2%
2.5%
0.3%
0.6%
0.1%
0.1%
0.9%

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
01-Jul-14

Modules
BOP
Land Acquisition
Development Costs
Connection - Eskom
Connection - EPC
Scada (BOP - Movable)
Engineering costs
Safety costs

% of Total
ZAR costs

Capital Costs

KEY TENETS OF IMPACTFUL ED

1. Learn from Historical Lessons

Involve community from the beginning

Plan for worker demobilisation

2. Compliance Is Threshold, Development Is Target

3. Give The Communities Voice
4. Recognise Existing Assets: Leverage Resources
5. Legacy achieved only through Sustainability

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JOB CREATION
Sub-Elements

South African
Citizens

Black Citizens

Skilled Black
Citizens

Complian
ce
Obligatio
ns
93.34%

4 973pm=
414 jobs

78.06%

3 449pm=
287 jobs

56.24%

Local Citizens
61.81%

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Constructi
on Jobs

463pm = 39
jobs

2 472pm =
206 jobs

Operations
Jobs

17 320pm=
1443 jobs
15 180pm=
1265 jobs

3 500pm=
292 jobs

12 280pm=
1023 jobs

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Beyond Compliance

Youth and women ensuring

representation via EPC
contractors
On-site apprenticeship for
unskilled labour
Demobilisation strategy that
will focus on postconstruction education
(bursary)
On-site training for O&M
phase (diploma
programmes)
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LOCAL CONTENT
Sub-Elements

Compliance Obligations

Beyond Compliance

Key Components

51,87%

Early identification of key

suppliers- WOV, QSEs,
SMES, local suppliers
Local supplier Chain
Support- formalisation &
record keeping
Educate SMMEs & WOV
about RE Opportunities
Marketing: Cross-project
linkages despite different
EPC/O&M

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PREFERENTIAL PROCUREMENT
Sub-Elements

Compliance Obligations

Beyond Compliance

BBBEE

77,04%

Early identification of key

suppliers- WOV, QSEs,
SMES, local suppliers

QSE

17,7%

Local supplier Chain

Support- formalisation &
record keeping

Women Owned Vendors

5,26%

Educate SMMEs & WOV

about RE Opportunities
Marketing: Cross-project
linkages despite different
EPC/O&M

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MANAGEMENT CONTROL
Sub-Elements

Compliance Obligations

Beyond Compliance

Black People

100%

100% Black top management

Women

50%

Skills development in key

areas to grow IPP
specialisation
Working with willing BEE
partners to become true
Energy Service Providers

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ENTERPRISE DEVELOPMENT
Sub-Elements

Compliance
Obligations

Beyond Compliance

Enterprise Development
Contributions

0,6%

Invest in ED during construction to leverage

project opportunities
Develop local industry to respond to the
infrastructure needs of the sector & beyond
Connect local enterprises to national & global
value chains
Create community-based development
professionals
Measure Impact, not just accounting for
expenditure

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SOCIO-ECONOMIC DEVELOPMENT
Sub-Elements

Compliance
Obligations

Beyond Compliance

Socio-Economic Development
Contributions

1,5%

First SED project to be implemented during

construction phase to avoid delayed social
benefit
Link skills development to enterprise
opportunities to ensure post-qualification
demand
Measure Impact, not just accounting for
expenditure
Build a local development institution with
research, fund-raising and project
management capabilities

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SOCIO-ECONOMIC NEEDS ASSESSMENT

45 Participants in focus groups

5 Semi-Structured Interviews

drawn randomly from various

communities

with leaders ranging from Black

Farmers Union to Govt. LED Officer

Results of Primary &

Secondary Data
Analysis
Community Priorities:

IDP Priorities:

1. Health Care

1. Water & Sanitation

2. Education
3. Jobs on existing infrastructure &
mining projects

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2. Road Maintenance
3. LED- SMME Dev

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DEFINING THE COMMUNITY

Key Beneficiary Communities
Tlapeng

Tsineng

Matoro

Magobing

Dinokaneng

Magojaneng

Tsineng-Kop

Masankong

Mokalanoga

Kanana

Gasese

Gatshekedi

The PRA Tools

also revealed the
relative
development
status of each
community

Maipeng

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PROGRAMMATIC RESPONSE
Construction Phase

Targeted Need
Agricultural skills Transfer & Social Cohesion

Agricultural exchange programme

Enterprise Development

Developing SMMEs to become procurement ready

Operations Phase (first 5 years)

Targeted Need

Community-Owned Jobs Fund

Job Creation & Bridging work experience gap

ENELSI Training programme

Developing construction workers skills

Starting Chance: ECD

Addressing education from developmental phase

SMME Support

Technical and financial support for new and existing

entrepreneurs

Community Healthcare

Developing NGO capacity to deal with diagnostic

health services & mental wellness

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ENEL GREEN POWER

Flagship training programme
A training programme to develop technical skills in solar photovoltaic, solar PV
installation and general business management
1. Basics and advanced elements of electricity & solar photovoltaic
2. How to set up and manage an enterprise
3. Business plan of a solar PV installation
4. Client relationship management
Key Outputs

Trainees will be capable to deliver solar photovoltaic installations throughout South

Africa.

Graduates to set-up and manage small businesses individually or as small groups.

Long-term Vision

EGP franchising network for rooftop installations

Preferential procurement for EGP Programme Graduates

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