InterEnergy Holdings Inc.

completed

InterEnergy Holdings IEH is one of the largest private sector power operators in the Dominican Republic ("DR"), with exposure to approximately 1,000MW of existing generation capacity. IEH has both direct and indirect interests in this generation capacity through three operating companies. These subsidiaries include: i) Consórcio Energético Punta Cana Macao S.A. (“CEPM”) and Compañía de Electricidad de San Pedro de Macorís S.A. (“CESPM”) in which it has a controlling stake, and ii) a non-controlling interest (25.66%) in La Empresa Generadora de Electricidad Haina S.A. (“EGE Haina”) through a 51.3% indirect economic interest in Haina Investment Company Ltd (BVI), the private sector investor which owns 50% of EGE Haina. The Government of the DR holds the remaining 50%.The project consists of a proposed US$ 50 million IFC equity investment to support IEH’s future power and energy sector developments, the principal focus of which will be the co-development of a new LNG terminal and an associated gas pipeline to allow conversion of its existing power generation assets to cleaner-burning natural gas fuel. IFC’s investment will come in parallel to a proposed equity investment by the IFC African, Latin American and Caribbean Fund (“ALAC” or the “ALAC Fund”), managed by the IFC Asset Management Company (“AMC”). Among other development outcomes, the investment will contribute to the eventual reduction of the greenhouse gas footprint of the Dominican Republic’s energy generation matrix, which currently relies on liquid fuels, especially on Heavy Fuel Oil (HFO).Projects currently under consideration by IEH include: (i) a flagship LNG terminal and gas pipeline network in the DR: (ii) an expansion of the company’s existing portfolio of renewable energy projects in the DR, including solar and wind power; (iii) an expansion of its generation park focused on gas-fired capacity; (iv) a transmission line interconnecting the DR with Haiti’s power grid; and (v) acquisition of certain power assets in the region to diversify the Company’s geographic exposure. All of these potential projects/assets are at the conceptual stage of development and are not amenable for a full E&S due diligence at this point in time.