1. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
CONFIDENTIAL
Structured Finance - PPP
P
Public-Private Partnership KenGen
Proposed Models and Projects
Document Eddy Njoroge, MD&CEO of KenGen
Date
17 May 2012 - Nairobi, Kenya
Disclaimer:
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinseyreport may be circulated, quoted, or reproduced for distribution without prior written
No part of this & Company during an oral
Source: Source presentation; it is not a complete record of theAll the information contained herein was prepared for information only.
approval from KenGen. discussion.
1

2. OUTLINE:
Unit of measure
1 Background W
2 KenGen Proposed PPP Models
3 KenGen’s Proposed Phase I: PPP Projects
P
4 Discussions
* Footnote
Source: Source 2

3. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 3

4. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 4

5. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 5

6. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 6

7. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 7

8. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 8

9. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 9

10. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 10

11. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 11

12. Financing KenGen’s Olkaria I & IV 280MW Flagship Projects
Unit of measure
With Drilling Costs
W
P
* Footnote
Source:
Source: KenGen; Source 12

13. Financing KenGen’s Olkaria I & IV 280MW Flagship Projects
Unit of measure
Without Drilling Costs
W
P
* Footnote
Source:
Source: KenGen; Source 13

14. OUTLINE:
Unit of measure
1 Background W
2 KenGen Proposed PPP Models
3 KenGen’s Proposed Phase I: PPP Projects
P
4 Discussions
* Footnote
Source: Source 14

15. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 15

16. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 16

17. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 17

18. Working Draft
Unit of measure
Last Modified 06/01/2008 08:33:51 Pacific SA Standard Time
Printed 12/03/2007 15:47:35 South Africa Standard Time
W
CONFIDENTIAL
P
Document
Date
This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
* Footnote This material was used by McKinsey & Company during an oral
Source: Source presentation; it is not a complete record of the discussion. 18

19. OUTLINE:
Unit of measure
1 Background W
2 KenGen Proposed PPP Models
3 KenGen’s Proposed Phase I: PPP Projects
P
4 Discussions
* Footnote
Source: Source 19

20. 3 Phase I: PPP Project: Muhoroni 80MW Power Plant
Unit of measure
BOT – Build Operate Transfer
PPA – Power Purchase Agreement
Project Description
W
1. Name: Muhoroni Thermal Power Plant
1. Capacity: 80MW
1. Estimated Cost: US$ 100 million
1. Economic Life: 20 years P
1. Mode: Thermal –Heavy Fuel Oil (HFO)
1. Expected PPP: BOT (Vendor Financing…)
1. Location: Western Kenya
1. Status:
1. Tender documents under preparation
2. PPA being prepared
* Footnote
Source:
Source: KenGen; TMO Source 20

21. 3 Phase I: PPP Project: Olkaria V 140MW Power Plant
Unit of measure BOT – Build Operate Transfer
PPA – Power Purchase Agreement
Project Description
W
1. Name: Olkaria V Power Plant
1. Capacity: 140MW
1. Estimated Cost: US$ 500 million (~US$ 200m for Power Plant only)
1. Economic Life: 25 years P
1. Mode: Geothermal
1. Expected PPP: Joint Venture through an SPV (Special Purpose Vehicle…)
1. Location: Naivasha, Kenya
1. Status:
1. Drilling and Steam Optimization Study -
Completion 2012
2. PPA being prepared
* Footnote
Source:
Source: KenGen; TMO Source 21

22. 3 Phase I: PPP Project: Isiolo Wind Power Plant
Unit of measure BOT – Build Operate Transfer
PPA – Power Purchase Agreement
Project Description
W
1. Name: Isiolo Wind Power Plant
1. Capacity: 150 MW (Phase I: 50MW plus Phase II: 100MW)
1. Estimated Cost: US$ 400 million (Phase I: US$ 130 plus Phase II: US$ 270MW)
1. Economic Life: 20 years P
1. Mode: Wind
1. Expected PPP: Joint Venture through an SPV (Special Purpose Vehicle…)
1. Location: Isiolo, Northern Kenya
1. Status:
1. Feasibility Study Completed
* Footnote
Source:
Source: KenGen; TMO Source 22

23. 3 Phase I: PPP Project: Liquefied Natural Gas (LNG) Power Plant
Unit of measure
BOT – Build Operate Transfer
PPA – Power Purchase Agreement
Project Description
W
1. Name: LNG Power Plant
1. Capacity: 495 MW
1. Estimated Cost: US$ 686 million
1. Economic Life: 20 years
P
1. Mode: Natural Gas (imported)
1. Expected PPP: BOT
1. Location: Dongo Kundu, Mombasa Kenya
1. Status:
1. Feasibility Study Completed
* Footnote
Source:
Source: KenGen; TMO Source 23

24. 3 Phase I: PPP Project: Coal Power Plant
Unit of measure
BOT – Build Operate Transfer
PPA – Power Purchase Agreement
Project Description W
1. Name: Coal Power Plant
1. Capacity: 600 MW
1. Estimated Cost: US$ 1,665 million
P
1. Economic Life: 20 years
1. Mode: Coal (imported)
1. Expected PPP: Joint Venture through an SPV (Special Purpose Vehicle…)
1. Location: Kilifi, Mombasa Kenya
1. Status:
1. Feasibility Study Completed
* Footnote
Source:
Source: KenGen; TMO Source 24

25. Unit of measure
W
Discussions
P
Kenya USA
* Footnote
Source: Source 25