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VREDENDAL SOLAR POWER PARK (PTY) LTD.

NERSA Public Hearing on the the Application for a Generation License for Renewable Energy Power Plants

13 AUGUST 2012

Contents

1. Background and Project Company Structure

2. Corporate Background

3. Project Description

4. Technical

5. General (non-confidential) Financial and Funding

6. Community Trust, BBBEE & Economic Development

Background and Project Company Structure

Background and Project Company Structure

• Solar Photovoltaic – Fixed Frame

• 10.395 MWp Installed Capacity

• Located 300km north of Cape Town

• 100% Locally Manufactured Modules

• 196 jobs created during construction

• 36 jobs created during operation

Background and Project Company Structure

Jay & Jayendra (Pty) Ltd.(Black Enterprise

Members)

SDSA(Lead member)

Vredendal Solar Community Trust

Vredendal Solar Power Park (Pty) Ltd.

Corporate Background

• Lead Member

• 100% Owned by SolaireDirect –Largest Solar IPP in France

• 300 employees worldwide –offices in 6 countries

• Local subsidiary started in 2009 currently employing 12 people

Corporate Background

Fully Integrated Business Model

Corporate Background

Solairedirect has installed over 120MW to date. Another 135MW is currently under construction and120MW under development.

Corporate Background

• A state-of-the-art, purpose built, PV Module production unit in CAPE TOWN

• Plant Commissioned in Feb 2009.

• Current capacity of 50MW per year

• 110 employees

• R50million investment

- Local Manufacturing Facility

Corporate Background

• Local Partner

• Black owned investment holding and management company

• J & J shareholding is broad-based extending to 200,000 individuals

• Current investments span various industries and sectors including rail, energy, bio-fuels and property

Project Description

Project Description

Project Description

- Site Photos

PHOTOGRAPHS LOOKING EAST AND SOUTH

Project Description

- Site Photos

PHOTOGRAPHS LOOKING WEST AND NORTH

Project Description

PARAMETER UNIT VALUE

Site area Ha 61.52Solar park area Ha 19.9

Park perimeter measurement M 800 (length) x 300 (width)Latitude * 31°37’33.40” SouthLongitude * 18˚30’30.36” EastTemperature (min/max) Degrees Celsius -10/+45Altitude m (a.m.s.l.) 200Average rainfall mm per annum 105Relative humidity % 90

Electrical Information

Total Contracted capacity MW (peak) 8.82Total quantity of PV modules Pcs 41580

Number of inverter/transformer stations Pcs 8Inverter station capacity MW 1.260Grid ConnectionConnection Voltage kV 11Transmission Line Length km 0.5Eskom Substation * Bulte

Technical

Technical – Permits & Consents

General (non-confidential) Financial and

Funding – Project Financing Structure

Jay & Jayendra (Pty) Ltd.(Black Enterprise Members)

SD France(Parent Company)

SDSA(Lead member)

Vredendal Solar Community Trust

Vredendal Solar Power Park (Pty) Ltd.

Equity 31%Snr Debt 62%Pref Shares 7%

57.5%

100%

“free carry”

SOLAR CONTRACTING

SDSA J&J

90% 10%

SolaireDirectTechnologies

(Primary Equipment Supplier)

DBOContract

SHAREHOLDING (SH)

CONTRACT

40% 2.5%

EXTERNAL DEBT

RMB(Senior Debt)

RMB(Pref. Shares)

62% 7%

General (non-confidential) Financial and

Funding

• Total estimated project cost R202 million

• Funding structure:– Senior Debt: 62%– Mezzanine finance: 7% (preference shares)– Equity: 31%

• Cash flow positive from first year of operations (before equity participation)

• Comprehensive O&M program in place

• Comprehensive insurance program in place

• Decommissioning provision provided for at 10% of cost

Community Trust, BBBEE & Economic

Development

Group Description Target Commitment

Job Creation

RSA Based Employees – Citizens 80% 80%

RSA Based Employees – Black Citizens 50% 50%

Skilled Employees – Skilled Black Citizens 30% 30%

RSA Based Employees – Local Citizens 20% 20%

Local Content % of Local Content Spend 60% 54.3%

Ownership

Project Company – Black shareholding 30% 30%

Project Company – Local Community 2.5% 2.5%

EPC Contractor – Black shareholding 8% 10%

O&M Contractor – Black shareholding 8% 10%

Management

ControlBlack Top Management 40% 40%

Preferential

Procurement

BEE Procurement Spend 60% 60%

EME & QSE Procurement Spend 10% 5%

Woman Owned Vendor Spend 5% 2.5%

Enterprise

DevelopmentEnterprise Development Contributions 0.6% 0.5%

Socio-Economic

Development

Socio-Economic Development

Contributions1.5% 1.2%

Community Trust, BBBEE & Economic

Development

Local Ownership & BBBEE

• South African Ownership = 41.42%

• Project Company = Level 4

• Contractor = Level 4

Community Trust, BBBEE & Economic

Development

Community Trust

• 2.5% ownership in Project Co. (shares gifted)

• 1.2% of revenue committed to socio-economic development

• A Broad-based trust benefitting the communities of Aurora, Piketberg & possibly others in the vicinity.

• Trustees will consist of members of the Project Co, independent members and members from the community represented by NGO’s and other organisations active in the area.

• Beneficiaries of the Trust identified through projects and initiatives undertaken by NGO’s.

• Projects will cover the healthcare, welfare, housing & education sectors

CONCLUSION