Gulf Power Ltd

completed

The project is the development of a greenfield 80 MW Heavy Fuel Oil (“HFO”) fired power plant, including a 66kv interconnector and backup metering equipment on a 20 years build-own-and-operate basis along the Nairobi –Mombasa highway in the Athi River area of Mavoko Municipality, Kenya (the “Project”). The Project will have a 20 year Power Purchase Agreement (“PPA”) with Kenya Power and Lighting Company (“KPLC”), the national transmission and distribution company. The PPA may be extended for 5 years based on mutual agreement between the Company and KPLC.The developer of the Project is Gulf Power Limited (“GPL” or the “Company”), a special purpose company incorporated in Kenya by a consortium of Kenyan investors with a view to enter the power generation business in Kenya. The Project is one of 3 Independent Power Projects (“IPPs”) for which KPLC had sought Expressions of Interests (“EOI”), in June 2009. These IPPs were expected to generate 60-80 MW each using medium speed diesel engines with HFO as the fuel. The projects were awarded through a competitive bidding process based on the lowest electricity charges. GPL submitted an EOI to bid for the Project. In the final bidding held on December 15, 2009, GPL was the lowest bidder for the development of an 80 MW plant on the Mombasa Road, Athi River Site and on that basis was awarded the concession.