unlevered Equity-Beta

Debt Ratio
Equity Ratio
relevered Beta
US Risk Premium
risk free rate U.S.
Cost of Equity
Default Spread
Cost of Debt
Sovereign Spread
Adjusted Cost of Equity
Adjusted Cost of Debt
Tax Rate
WACC
Risk Score
Basis Points
in percantage
Adjusted WACC

Classic Cost of Capital

Venerus Cost of Capital
Spread

Project
Country
Sorted/Range
Spread

Andres
Dom.Rep.
CG
0.250
35.10%
64.90%
0.385
7.00%
4.50%
7.20%
3.57%
8.07%
8.93%
16.13%
17.00%
25.00%
14.94%
3.00
1500.00
15.00%
29.94%

12.00%
29.94%
17.94%

Red Oak
Dom.Rep.
9.66%
-2.34%

Caracoles
Argentina
CS
0.500
40.80%
59.20%
0.845
7.00%
4.50%
10.41%
3.57%
8.07%
16.25%
26.66%
24.32%
35.00%
22.23%
1.83
912.50
9.13%
31.36%

12.00%
31.36%
19.36%

Ottana
Argentina
10.77%
-1.23%

Drax
U.K
CS
0.500
29.50%
70.50%
0.709
7.00%
4.50%
9.46%
3.57%
8.07%
0.00%
9.46%
8.07%
0.00%
9.05%
1.46
730.00
7.30%
16.35%

12.00%
16.35%
4.35%

Gener
U.K
12.63%
0.63%

Eletropaulo
Brazil
LU
0.250
30.00%
70.00%
0.357
7.00%
4.50%
7.00%
2.89%
7.39%
8.93%
15.93%
16.32%
34.00%
14.38%
2.18
1087.50
10.88%
25.26%

12.00%
25.26%
13.26%

Kelvin
Brazil
15.18%
3.18%

Gener
Chile
CG
0.250
35.20%
64.80%
0.386
7.00%
4.50%
7.20%
4.34%
8.84%
1.73%
8.93%
10.57%
17.00%
8.88%
0.75
375.00
3.75%
12.63%

12.00%
12.63%
0.63%

Drax
Chile
16.35%
4.35%

Haripur
Bangladesh
CG
0.250
33.30%
66.70%
0.375
7.00%
4.50%
7.12%
4.34%
8.84%
5.23%
12.35%
14.07%
0.00%
12.93%
0.79
395.00
3.95%
16.88%

12.00%
16.88%
4.88%

Haripur
Bangladesh
16.88%
4.88%

Kelvin
South Africa
CG
0.250
32.90%
67.10%
0.373
7.00%
4.50%
7.11%
4.34%
8.84%
3.14%
10.25%
11.98%
25.00%
9.83%
1.07
535.00
5.35%
15.18%

12.00%
15.18%
3.18%

OPGC
South Africa
18.11%
6.11%

Lal Pir
Pakistan
CG
0.250
35.10%
64.90%
0.385
7.00%
4.50%
7.20%
3.57%
8.07%
9.90%
17.10%
17.97%
23.00%
15.95%
1.43
712.50
7.13%
23.08%

12.00%
23.08%
11.08%

Rivnoblenergo
Pakistan
18.58%
6.58%

Los Mina
Dom.Rep.
CG
0.250
28.70%
71.30%
0.351
7.00%
4.50%
6.95%
1.85%
6.35%
8.93%
15.88%
15.28%
25.00%
14.61%
2.57
1282.50
12.83%
27.44%

12.00%
27.44%
15.44%

Lal Pir
Dom.Rep.
23.08%
11.08%

OPGC
India
CG
0.250
30.40%
69.60%
0.359
7.00%
4.50%
7.01%
3.57%
8.07%
3.60%
10.61%
11.67%
7.90%
10.66%
1.49
745.00
7.45%
18.11%

12.00%
18.11%
6.11%

Uruguaiana
India
25.15%
13.15%

Ottana
Italy
CS
0.500
42.50%
57.50%
0.870
7.00%
4.50%
10.59%
4.34%
8.84%
0.14%
10.73%
8.98%
35.00%
8.65%
0.43
212.50
2.13%
10.77%

12.00%
10.77%
-1.23%

Eletropaulo
Italy
25.26%
13.26%

Red Oak
USA
CG
0.250
39.50%
60.50%
0.413
7.00%
4.50%
7.39%
3.57%
8.07%
0.00%
7.39%
8.07%
37.50%
6.46%
0.64
320.00
3.20%
9.66%

12.00%
9.66%
-2.34%

Los Mina
USA
27.44%
15.44%

Rivnoblenerg
o
Ukraine
GD
0.250
36.50%
63.50%
0.394
7.00%
4.50%
7.26%
3.57%
8.07%
9.98%
17.24%
18.05%
30.00%
15.56%
0.61
302.50
3.03%
18.58%

12.00%
18.58%
6.58%

Telasi
Ukraine
28.51%
16.51%

Telasi
Georgia
GD
0.250
26.10%
73.90%
0.338
7.00%
4.50%
6.87%
1.85%
6.35%
9.98%
16.85%
16.33%
20.00%
15.86%
2.53
1265.00
12.65%
28.51%

12.00%
28.51%
16.51%

Andres
Georgia
29.94%
17.94%

Uruguaiana
Brazil
CG
0.250
32.20%
67.80%
0.369
7.00%
4.50%
7.08%
1.85%
6.35%
8.93%
16.01%
15.28%
34.00%
14.10%
2.21
1105.00
11.05%
25.15%

12.00%
25.15%
13.15%

Caracoles
Brazil
31.36%
19.36%

Lal Pir (Pakistan)

2004

2005

2006

2007

2008

2009

2010

2011

Free Cash Flows (Mio.USD)

Clasic Discount Rate
Venerus Pakistan Discount Rate
Venerus US Discount Rate

63.22
12%
23%
10%

63.62
12%
23%
10%

64.03
12%
23%
10%

64.43
12%
23%
10%

64.84
12%
23%
10%

65.25
12%
23%
10%

65.66
12%
23%
10%

66.07
12%
23%
10%

NPV Classic DR
NPV Venerus Pakistan DR
NPV Venerus US DR

490.64
276.63
574.34

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

66.48
12%
23%
10%

66.90
12%
23%
10%

67.32
12%
23%
10%

67.73
12%
23%
10%

68.15
12%
23%
10%

68.57
12%
23%
10%

68.99
12%
23%
10%

69.42
12%
23%
10%

69.84
12%
23%
10%

70.27
12%
23%
10%

70.70
12%
23%
10%

2023
71.13
12%
23%
10%

Exhibit 12 Project Cash Flows (in US$ millions)

Lal Pir (Pakistan) Contract Generation

Income
Revenue
EBITDA
Depreciation
Operating Profit
Interest
Taxes
Net Profit
Cash Flow
Operating Profit
Addback Depreciation
Maintenance CapEx
Pre-Tax, Pre-Finance Cash Flow
Interest
Principal
New Debt
Taxes
Levered Equity Cash Flow
Lev Equity Cash Flow with TV
Unlevered Cash Flow
Unlevered Cash Flow with TV
Capitalization
Initial PP&E
Goodwill
Accum Depreciation
Total Assets
Debt
Equity
Total Capital
note: values disguised

Source: Company document.

2004
312.5
100.0
(30.6)
69.4
(44.1)
(8.8)
16.4

2005
313.6
100.4
(31.3)
69.1
(42.7)
(9.2)
17.2

2006
314.7
100.7
(31.9)
68.8
(41.1)
(9.7)
18.0

2007
315.8
101.1
(32.5)
68.5
(39.4)
(10.2)
19.0

2008
316.9
101.4
(33.1)
68.3
(37.5)
(10.8)
20.0

2009
318.0
101.8
(33.8)
68.0
(35.4)
(11.4)
21.2

69.4
30.6
(12.5)
87.5
(44.1)
(14.2)
0.0
(8.8)
20.3
20.3
63.2
63.2
87.5

69.1
31.3
(12.5)
87.8
(42.7)
(15.5)
0.0
(9.2)
20.4
20.4
63.6
63.6
87.8

68.8
31.9
(12.6)
88.1
(41.1)
(16.9)
0.0
(9.7)
20.4
20.4
64.0
64.0
88.1

68.5
32.5
(12.6)
88.4
(39.4)
(18.4)
0.0
(10.2)
20.4
20.4
64.4
64.4
88.4

68.3
33.1
(12.7)
88.7
(37.5)
(20.1)
0.0
(10.8)
20.3
20.3
64.8
64.8
88.7

68.0
33.8
(12.7)
89.0
(35.4)
(22.0)
0.0
(11.4)
20.2
20.2
65.2
65.2
89.0

612.5
22.4
(30.6)
604.3
416.5
187.8
604.3

625.0
22.4
(61.9)
585.6
401.0
184.6
585.6

637.6
22.4
(93.8)
566.3
384.1
182.1
566.3

650.3
22.4
(126.3)
546.4
365.7
180.7
546.4

662.9
22.4
(159.4)
525.9
345.6
180.3
525.9

675.7
22.4
(193.2)
504.9
323.6
181.3
504.9

2010
319.1
102.1
(34.4)
67.7
(33.2)
(12.1)
22.4

2011
320.2
102.5
(35.1)
67.4
(30.7)
(12.9)
23.9

2012
321.4
102.8
(35.7)
67.1
(28.0)
(13.7)
25.4

2013
322.5
103.2
(36.3)
66.8
(25.0)
(14.6)
27.2

2014
323.6
103.6
(37.0)
66.6
(21.8)
(15.7)
29.1

2015
324.7
103.9
(37.6)
66.3
(18.2)
(16.8)
31.3

2016
325.9
104.3
(38.3)
66.0
(14.3)
(18.1)
33.6

2017
327.0
104.6
(39.0)
65.7
(9.9)
(19.5)
36.2

2018
328.2
105.0
(39.6)
65.4
(5.2)
(21.1)
39.1

67.7
34.4
(12.8)
89.4
(33.2)
(24.1)
0.0
(12.1)
20.0
20.0
65.7
65.7
89.4

67.4
35.1
(12.8)
89.7
(30.7)
(26.4)
0.0
(12.9)
19.7
19.7
66.1
66.1
89.7

67.1
35.7
(12.9)
90.0
(28.0)
(29.0)
0.0
(13.7)
19.3
19.3
66.5
66.5
90.0

66.8
36.3
(12.9)
90.3
(25.0)
(31.8)
0.0
(14.6)
18.9
18.9
66.9
66.9
90.3

66.6
37.0
(12.9)
90.6
(21.8)
(34.9)
0.0
(15.7)
18.3
18.3
67.3
67.3
90.6

66.3
37.6
(13.0)
90.9
(18.2)
(38.3)
0.0
(16.8)
17.6
17.6
67.7
67.7
90.9

66.0
38.3
(13.0)
91.2
(14.3)
(42.1)
0.0
(18.1)
16.8
16.8
68.2
68.2
91.2

65.7
39.0
(13.1)
91.6
(9.9)
(46.2)
0.0
(19.5)
15.9
15.9
68.6
68.6
91.6

65.4
39.6
(13.1)
91.9
(5.2)
(50.8)
0.0
(21.1)
14.8
14.8
69.0
69.0
91.9

688.4
22.4
(227.6)
483.2
299.4
183.8
483.2

701.2
22.4
(262.7)
461.0
273.0
187.9
461.0

714.1
22.4
(298.4)
438.1
244.1
194.1
438.1

727.0
22.4
(334.7)
414.7
212.3
202.4
414.7

739.9
22.4
(371.7)
390.6
177.4
213.2
390.6

752.9
22.4
(409.4)
365.9
139.1
226.8
365.9

766.0
22.4
(447.7)
340.7
97.0
243.6
340.7

779.0
22.4
(486.6)
314.8
50.8
264.0
314.8

792.2
22.4
(526.2)
288.3
(0.0)
288.3
288.3

2019
329.3
105.4
(40.3)
65.1
0.0
(22.8)
42.3

2020
330.5
105.7
(40.9)
64.8
0.0
(22.7)
42.1

2021
331.6
106.1
(41.6)
64.5
0.0
(22.6)
41.9

2022
332.8
106.5
(42.3)
64.2
0.0
(22.5)
41.8

2023
333.9
106.9
(42.9)
63.9
0.0
(22.4)
41.6

65.1
40.3
(13.2)
92.2
0.0
(0.0)
0.0
(22.8)
69.4
69.4
69.4
69.4
92.2

64.8
40.9
(13.2)
92.5
0.0
(0.0)
0.0
(22.7)
69.8
69.8
69.8
69.8
92.5

64.5
41.6
(13.3)
92.9
0.0
(0.0)
0.0
(22.6)
70.3
70.3
70.3
70.3
92.9

64.2
42.3
(13.3)
93.2
0.0
(0.0)
0.0
(22.5)
70.7
70.7
70.7
70.7
93.2

63.9
42.9
(13.4)
93.5
0.0
(0.0)
0.0
(22.4)
71.1
71.1
71.1
71.1
93.5

805.3
22.4
(566.5)
261.2
(0.0)
261.2
261.2

818.6
22.4
(607.4)
233.5
(0.0)
233.5
233.5

831.8
22.4
(649.0)
205.2
(0.0)
205.2
205.2

845.1
22.4
(691.3)
176.3
(0.0)
176.3
176.3

858.5
22.4
(734.2)
146.7
(0.0)
146.7
146.7

Exhibit 7a AES Project Data

Business / Project

Country

Line of
Business

Andres

Dominican
Republic

CG

Caracoles

Argentina

CS

Drax
Eletropaulo
Gener

United
Kingdom
Brazil
Chile

CS
LU
CG

Haripur
Kelvin
Lal Pir

CG
CG
CG

Los Mina

Bangladesh
South Africa
Pakistan
Dominican
Republic

OPGC

India

CG

Ottana
Red Oak
Rivnoblenergo
Telasi
Uruguaiana

Italy
USA
Ukraine
Georgia
Brazil

CS
CG
GD
GD
CG

CG

Source:Company document. Project descriptions taken from http://www.aes.com/businesses/default.asp.

Project Description

Tax Rate

Debt to
Cap.

Equity to
Cap.

300 MW gas fired combined cycle plant currently under construction 30 km east of
Santo Domingo

25.0%

35.1%

64.9%

123 MW hydroelectric power plant located on the San Juan river in western Argentina

35.0%

40.8%

59.2%

0.0%
34.0%
17.0%

29.5%
30.0%
35.2%

70.5%
70.0%
64.8%

0.0%
25.0%
23.0%

33.3%
32.9%
35.1%

66.7%
67.1%
64.9%

25.0%

28.7%

71.3%

7.9%

30.4%

69.6%

35.0%
37.5%
30.0%
20.0%
34.0%

42.5%
39.5%
36.5%
26.1%
32.2%

57.5%
60.5%
63.5%
73.9%
67.8%

Largest coal-fired power station in western Europe. It can produce enough electricity about 4000 MW- to meet the needs of approximately four million people
Distribution company that serves a population of 14 million in Sao Paulo
277 MW fossil fuel plant located in Tocopilla, 1500 km north of Santiago
360 MW gas turbine facility located 25 kilometers southeast of Dhaka, capital of
Bangladesh
600 MW coal fired power plant
337 MW coal fired power plant
210 MW Oil-fired facility supplying the capital city of Santo Domingo
Joint Venture with the Government of Orissa. Two 210 MW P.C. coal-fired units
Oil fired 140 MW cogeneration facility - under contracts of up to 10 years, electricity,
steam, compressed air, dematerialized water and nitrogen to three chemical facilities
adjacent to the plant
832 MW natural gas-fired plant
Distribution Company serving 380,000 customers
Distribution Company serving Tbilisi, the capital of Georgia.
600 MW gas-fired combined cycle power plant

m http://www.aes.com/businesses/default.asp.

Commodity

Contract enf./Legal

Counterparty

Currency

Sovereign
Spread

Regulatory

Default
Spread

Operational/
Technical

EBIT
Coverage

Construction

Risk Scores

3.0x

3.57%

8.93%

3.0x

3.57%

16.25%

3.0x
3.5x
2.5x

3.57%
2.89%
4.34%

0.00%
8.93%
1.73%

0
0
0

2
1
0

2
3
1

0
3
1

2
1
1

2
3
0

3
2
2

2.5x
2.5x
3.0x

4.34%
4.34%
3.57%

5.23%
3.14%
9.90%

2
1
0

0
0
1

0
1
2

0
2
2

1
2
1

1
1
2

1
0
1

4.0x

1.85%

8.93%

3.0x

3.57%

3.60%

2.5x
3.0x
2.5x
4.0x
4.0x

4.34%
3.57%
3.57%
1.85%
1.85%

0.14%
0.00%
9.98%
9.98%
8.93%

0
0
0
0
0
14.50%

0
2
0
2
0
3.50%

0
0
1
3
3
10.50%

1
0
2
3
3
21.50%

3
3
1
3
2
7%

0
0
0
3
3
25%

0
2
0
3
2
18.00%

3.000
1.825

1.460
2.175
0.750
0.790
1.070
1.425
2.565
1.490

0.425
0.640
0.605
2.530
2.210