GTG Freetown 15 MW Emergency Power

concluded

In November 2007, Global Trading Group NV was awarded by the Government of Sierra Leone, assisted by the World Bank, a 12-month emergency power rental contract for the supply of 15MW in Freetown. The award followed a competitive bidding process initiated in October 2007. On 31 October 2007, six bidders submitted bids that were then evaluated, resulting in the award to Global Trading Group NV. The sole bidding criteria was total cost, including capacity and energy charges plus all mobilization, demobilization and other costs. The Power Purchase Agreement and Government Support Agreement were signed by the winning bidder, Global Trading Group NV (GTG), on 17 November 2007. The GTG power plant became operational on 22 December 2007. The estimated investment for the rental power plants was determined by calculating an equivalent annual depreciation per MW and multiplying it by the number of years in the contract. We have used the following assumptions for this estimate: US$600 per kW as estimated investment, 15 years as expected asset life, and 10 percent as the annual discount (return) rate. Based on publicly available information the plant concluded early 2010.