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Opportunities for Investors in Infrastructure by Her Excellency The Minister of Transport and/or His Excellency The Minister of Electricity and Dams and/or Her Excellency The Minister of Housing and Physical Planning. Presentation Overview. Executive Summary

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Presentation Overview

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  1. Opportunities for Investors in Infrastructureby Her Excellency The Minister of Transport and/or His Excellency The Minister of Electricity and Dams and/or Her Excellency The Minister of Housing and Physical Planning

  2. Presentation Overview • Executive Summary • Overview of Opportunities for Investment in Infrastructure • Immediate Investment Opportunities • Power Generation and Distribution • Transportation Infrastructure • Property Development • Conclusions and Next Steps

  3. Executive Summary Massive Infrastructure Deficit • After 30 years of war and neglect, South Sudan has critical infrastructure shortages in all areas: • Less than 1% of the population has access to electricity • Less than 1% of main roads are paved • Less than 1% of the population lives in formal housing • Virtually no organised retail, commercial or industrial real estate available Growing commercially viable demand for infrastructure • With independence and stability, economic activity is growing fast enough to generate commercially viable demand for infrastructure in many areas • Thanks to oil revenues, government spending, remittances, returnees and new investment, demand for transportation, power and property is growing strongly • Commercial customers (mines, oil companies, manufacturers, hotels, etc.) are ready to pay for the infrastructure they need Preference for private provision of infrastructure where viable • Given the scale of investment required, the Government of South Sudan realises it cannot possibly build and operate all the infrastructure needed • The Government is therefore eager to bring in private investors to build and operate any infrastructure that can be run commercially (e.g. property development, power generation, airports, toll roads and bridges, railways, river services, etc.), so the government can focus scarce resources on infrastructure that cannot be charged for (primary health and education, local roads, water supply, etc.)

  4. The Government is seeking private partners to build and operate key infrastructure wherever commercially viable Opportunities for Investors in Infrastructure To facilitate private investment in infrastructure, the government is putting in place a clear regulatory framework, including a PPP policy and law, and specific policies and independent regulators for private concessions in key areas such as electricity and transportation

  5. Presentation Overview • Executive Summary • Overview of Opportunities for Investment in Infrastructure • Immediate Investment Opportunities • Power Generation and Distribution • Transportation Infrastructure • Property Development • Conclusions and Next Steps

  6. After 30 years of war and neglect, infrastructure supply in South Sudan today is shockingly low – even by regional standards Power Generation per capita (kWh per person) Paved Road Network Density (km of paved road per total km2) Source: CIA Factbook

  7. To meet this demand, the government is keen to attract investors to build and operate critical infrastructure on a PPP basis Representative Projects POWER • Dedicated power generation facilities for large-scale industrial and mining companies • Power generation facilities and distribution JVs in each State (selling direct to commercial and residential customers) • Power generation facilities selling to national utility, South Sudan Electricity Corporation • Toll roads and bridges (on routes with heavy commercial traffic) • Airport concessions • Railways • River docks and ferries TRANSPORT PROPERTY • Housing projects – at all price points • Shopping centres and retail complexes • Office buildings • Ministry and government buildings • Industrial parks

  8. A number of global construction and infrastructure companies are already exploring opportunities in South Sudan Sample

  9. Current supply of electricity in South Sudan is exceedingly constrained Current Generation and Distribution Networks Massive Power Shortfall • 3 small diesel generation units installed in Juba, Wau and Malakal with maximum capacity of 17MW, 8MW and 5 MW respectively • Total current operational capacity less than 20MW • Only 17,000 customers connected to 3 localised distribution networks • No electricity supplied to Industrial or Commercial users • No transmission grid Only 1% of South Sudan’s population has access to electricity Sources: USAID, WB Electricity Sector Strategy note for South Sudan, Statistical Year Book for South Sudan 2010

  10. Even based on conservative assumptions, suppressed demand for electricity is estimated 300MW today, rising to over 1400MW by 2030 Expected Electricity Demand South Sudan, 2010-2030 (MW) Source: PB Power “Long Term Power System Planning Study”, 2007

  11. Despite the current deficit, South Sudan has a range of potential energy sources for power generation

  12. Prefeasibility studies have already been completed for four large scale hydro-electric projects on the Nile near Juba Proposed Bahr El Jebel Dams 1 2 3 4 Juba Bedden Lakki Lakki Shukoli . Shukoli Fula Fula Uganda Border Source: SMEC “Pre-Feasibility Study Report” Oct 2009 – Parameters for recommended options

  13. 1. Fula hydro electric project: potential 855MW installed capacity • Located 33 Km downstream of Uganda border at the downstream end of the Fula rapids • Right bank is very regular and steep; rocky hill on left bank causes narrowing of the river to less than half its normal width in this stretch of the river • Initial feasibility study conducted by BONIFICA in 1983; detailed prefeasibility report completed by SMEC in 2009 • Under the best economic option researched by SMEC (Fula 596): • Dam of 760M length, 60M max height, slipway of 135M with 11 gates, 9x95MW Vertical Francis Turbines • Total annual energy: 3,370 GWh • Estimated costs of $24.3 million • NPV of $4.9 million, financial IRR of 16.6 % and payback period of 7 years Source: SMEC “Pre-Feasibility Study Report” Oct 2009 – Parameters for recommended options

  14. 2. Shukoli hydro electric project: potential 1100MW installed capacity • Located 46Km downstream of Uganda border at the upstream end of the Yeroba Rapids • Two hills narrow the Bahr el-Jebel valley to 150m-250m • Initial feasibility study conducted by BONIFICA in 1983; detailed prefeasibility report completed by SMEC in 2009 • Under the best economic option researched by SMEC (Shukoli 596): • Dam of 500M length, 75M max height, 12 slipway gates, 11x100MW Vertical Francis Turbines • Total annual energy: 4,746 GWh • Estimated costs of $23.7 million • NPV of $7.4 million, financial IRR of 18.1% and payback period of 6 years Source: SMEC “Pre-Feasibility Study Report” Oct 2009 – Parameters for recommended options

  15. 3. Lakki hydro electric project: potential 609MW installed capacity • Located 77Km downstream of Uganda border • Two hills form the narrows furthest downstream before the Bahr el-Jebel valley widens in the Gugi Rapids area • Initial feasibility study conducted by BONIFICA in 1983; detailed prefeasibility report completed by SMEC in 2009 • Under the best economic option researched by SMEC (Lakki 540): • Dam of 385M length, 45M max height, 12 slipway gates, 7 X 87MW Vertical Kaplan Turbines • Total annual energy: 2,427 GWh • Estimated costs of $31.5 million • NPV of $3.3 million, financial IRR of 14.7% and payback period of 8 years Source: SMEC “Pre-Feasibility Study Report” Oct 2009 – Parameters for recommended options

  16. 4. Bedden hydro electric project: potential 522MW installed capacity • Located 136Km downstream of Uganda border • At the northern end of the Bedden Rapids, halfway along the elongated island bearing the same name • Initial feasibility study conducted by BONIFICA in 1983; detailed prefeasibility report completed by SMEC in 2009 • Under the best economic option researched by SMEC (Bedden 496): • Dam of 2775M length, 42M max height, 12 slipway gates, 6 X 87MW Vertical Kaplan Turbines • Total annual energy: 2,067 GWh • Estimated costs of $26.9 million • NPV of $2.5 million, financial IRR of 12.7% and payback period of 10 years Source: SMEC “Pre-Feasibility Study Report” Oct 2009 – Parameters for recommended options

  17. An additional 16 mini-hydro power sites have been identified Source: Power in South Sudan 2006 – 2028, Prof Ajuoi Chol, GM South Sudan Electricity Corporation, Mar 2011

  18. There is also potential for large-scale solar thermal and small-scale solar photovoltaic power generation • South Sudan experiences approximately 12 hours of sunshine per day all year round • Solar radiation 5.5 – 6.0 KWh/m²/day • Potential for small-scale PV installations to serve schools, health clinics, irrigation projects and commercial customers • Potential for larger scale solar thermal power plants in northern part of country Source: weather-and-climate.com

  19. The Government is also targeting to develop biomass-based power generation in various parts of the country Given significant food imports, ample land and ideal climactic conditions, there is significant potential for combined food production and biomass-based power generation projects in various parts of the country For starters, the Government is hoping to attract investors to restart 2 large-scale sugar and cogen projects at Melut and Mangala and a large-scale oil-palm mill and cogen plant at Nzara The Government is also interested in proposals for urban waste-to-power projects in Juba and other major towns Source: Ministry of Agriculture & Forestry; “Biomass energy potential and future prospect in Sudan” University of Nottingham

  20. The Government is putting in place a regulatory framework that will allow power generators various options for securing commercial returns Unlike other countries with a well-entrenched transmission and distribution monopoly, South Sudan is open to all commercial proposals from IPPs Source: Laws of Southern Sudan, Electricity Bill, 2010; The Southern Sudan Electricity Corporation Provisional Order 2011

  21. Presentation Overview • Executive Summary • Overview of Opportunities for Investment in Infrastructure • Immediate Investment Opportunities • Power Generation and Distribution • Transportation Infrastructure • Property Development • Conclusions and Next Steps

  22. The Government is seeking private partners to build and operate transportation infrastructure wherever commercially viable • After 30 years of war and neglect, South Sudan’s transport infrastructure (roads, railways, river transport, airports) is virtually non-existent • The government, with support from donors, has embarked on a major investment program, rebuilding more than 2000km of roads, upgrading the main airport at Juba, and reopening the railway line from Babanusa to Wau • However, given the scale of work needed, the government is eager to attract private investors to build and operate infrastructure wherever the commercial returns make this attractive – so that the government can focus public resources on infrastructure that cannot be commercially operated (urban and rural roads, remote landing strips, etc.) Source: Ministry of Transport, Ministry of Roads & Bridges

  23. With more than 5000km of roads to be built, the government is keen to attract investors to build toll roads/bridges on heavily trafficked sections Long-term Transportation Infrastructure Plan • Long-term transportation plan envisages total main road network of 5208km, linking all major towns and border crossings with CAR, DRC, Ethiopia, Kenya, Sudan and Uganda • With donor support, 750km of this network are already under construction and upgrading of an additional 1000km of high priority roads is scheduled to begin soon Source: USAID, Ministry of Roads & Bridges, South Sudan Development Plan 2011-2014

  24. Top potential opportunities for private toll operations include: Priorities for Future Road Development Cargo Routes to Mombasa Already, more than 3000 trucks cross the borders from Kenya and Uganda into South Sudan every month – and traffic is projected to grow by 12-20% per year

  25. Opportunities also exist for investors interested in operating airport facilities • 3 IATA-standard airports at Juba, Malakal and Wau, and 7 additional regional air-strips • All airports currently government owned and operated • Government has recently completed new terminal at Juba • However, government is open to proposals from investors interested in upgrading and operating any airport Source: (1) Airports in Sudan: Aircraft Charter World (2) Presentation by the Directorate for Civil Aviation: Strategic work plans for Air Transport / Civil Aviation in Southern Sudan

  26. Over the long-term, the government is seeking investment to build a rail network to connect Juba with existing railways in Kenya, Uganda and the North Proposed Railway Network • The only existing line in South Sudan connects Wau to Babanusa and then on to Khartoum – the line was closed for many years, but reopened in 2010 • With increase in freight and particularly potential for large-volume mineral exports, commercial opportunities may exist to build railway line connecting Wau to Juba and then on to link Juba to Mombasa via existing railways in Kenya and Uganda • Consortia led by Thyssen Krupp and Thormaelen have already expressed interest in building this critical link between the Red Sea and Indian Ocean Existing track, recently reopened Proposed track Nairobi Kampala Sources: Ministry of Transport. Media reports

  27. Presentation Overview • Executive Summary • Overview of Opportunities for Investment in Infrastructure • Immediate Investment Opportunities • Power Generation and Distribution • Transportation Infrastructure • Property Development • Conclusions and Next Steps

  28. The most immediate opportunities exist for investors interested in commercial property development Juba Population (estimates) • With population growth and returning IDPs and diaspora, the population of Juba and South Sudan’s other towns has been growing at a phenomenal rate – the population of Juba alone has grown from 163,000 to over 450,000 in the last 5 years • As a result, there is huge unmet demand for: • All levels of housing from low income to high end • Offices for new businesses, government ministries, embassies, donors, etc. • Retail shops, wholesale markets, shopping malls • Industrial parks and zones Source: Ministry of Housing and Physical Planning

  29. In addition to private developments, the government is seeking partners to help build numerous government-financed property developments • Major projects in the South Sudan Development Plan 2011 – 2013 include: • 500 housing units for families of civil servants • 500 housing units for States • 500 low-cost units to support low-income communities residing in towns/cities; pilot scheme of 50 units per State • 5,000 partially serviced houses constructed specifically for Sale and Rent (revenue generation); estimated 500 houses per State • Office Blocks for 12 Ministries and 5 Commissions in Juba • State Houses, State Secretariat buildings in 8 other State capitals Source: (1) South Sudan Development Plan 2011 – 2013 (2) Status of Housing Sector in South Sudan presented at SPLM Economic Reform Workshop Mar 2011 (3) Housing Project Proposal for Accommodation of Public Servants, Government of South Sudan HQ and State Capitals

  30. Private partners are also sought to build and operate industrial parks in each State – such as the mixed-use Juba Airport City development Source: Juba Airport City proposal

  31. Welcome to South Sudan: The World’s Newest Investment Destination! Her Excellency Jemma Nunu Kumba Minister of Housing & Physical Planning Email: xxxx@xxxxxxx.com Phone: +249 xxx xxx xxx Her Excellency Agnes Poni Lokudu Minister of Transport Email: xxxx@xxxxxxx.com Phone: +249 xxx xxx xxx His Excellency David Deng Athorbei Minister of Electricity & Dams Email: xxxx@xxxxxxx.com Phone: +249 xxx xxx xxx South Sudan, the world's newest investment destination, is Open for Investors in Infrastructure – with a booming economy and a wealth of natural assets to support the growth of your business We see the most immediate opportunities for investors in power generation, transportation infrastructure and urban property development The Ministries of Electricity and Dams, Transport, and Housing and Physical Planning stand ready to assist with all aspects of business start-up and development We urge you to visit South Sudan to see for yourselves! Please contact:

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