Al Rehman Energy Solutions (Pvt) Ltd.

Dated: January 27th 2013 System Configration

Technology Advisor: Envirable Energy Systems (Pvt) Ltd. No. Size US$/Machine US$ Sub Total
Project: Power Export to FESCO Coal/Bagasse/MSW Fired Boiler 1 34,000 1,020,000 1,020,000
Subject: Pre-Feasibility Report Condensing Steam Turbine 1 10,000 2,000,000 2,000,000
Reference: Steam Turbine Simple Cycle Allied Equipment 1 - - 3,443,941
Calculation Basis Existing Equipment 6,463,941
Electrical Load 10,000 kW
Cooling Load - USRT
Stand by Redundancy 1.00

INPUTS
Exchange .Rate 100 Rs/US$ Sale of Electricity PA 87,600,000 kWh
Interest Rate 12 % Sale of Cooling PA - USRTh -
Inflation Factor 1.10 1:n Sales Price of Electricity 12.50 Rs / kWh
Imp duty 5 % Sales Price Cooling - Rs/USRT
Sales Tax - % Coal Cons Electricity Generation 0.49 kg/kWh
Income Tax - % Price of Coal 14.50 Rs / kg
Bank Charges 2 % MSW Cons Electricity Generation 1.23 kg/kWh
Misc on capital 5 % Price of MSW 4.00 Rs /kg
Coal Consumption Factor 0.20
MSW Consumption Factor 0.80
Costs US$ P.Rs Composite Fuel Cost 5.37 Rs/kWh
Land 600,000 60,000,000 Erection time 120 days
Building 800,000 80,000,000
M hi
Machinery 6 463 941
6,463,941 646
646,394,054
394 054
Import Duty 323,197 32,319,703 Definitions
Sales Tax - - All brand new equipment main fuel is
Banking Chg: 129,279 12,927,881 20% Coal and 80% MSW
Income Tax - -
Misc; Expenses. 323,197 32,319,703
Erection 96,153 9,615,300
Interest During Const 255,016 25,501,574
Total Capital cost 8,990,782 899,078,214

Equity - -
Loan 8,990,782 899,078,214
Al Rehman Energy Solutions (Pvt) Ltd.

Unit cost analysis Year-1 Year-2 Year-3 Year-4 Year-5

Fuel 5.37 5.91 6.50 7.15 7.86
Wages & Salaries 0.08 0.09 0.10 0.11 0.12
Store Consumptions 0.06 0.07 0.07 0.08 0.09
Transport 0.06 0.07 0.07 0.08 0.09
General & W. Shop 0.03 0.03 0.04 0.04 0.04
Annual Maintenance 0.35 0.39 0.42 0.47 0.51

Total Variable Cost 5.95 6.54 7.20 7.92 8.71

Depreciation 0.77 0.77 0.77 0.77 0.77

Insurance 0.02 0.03 0.03 0.03 0.04
Administration 0.03 0.03 0.04 0.04 0.04
Interest 1.23 0.60 (0.19) - -

Total Fixed Cost 2.06 1.43 0.65 0.84 0.85

Electricity
Total Cost / kWh 8.00 7.97 7.85 8.76 9.56
Sale Price / kWh 12.50 13.75 15.13 16.64 18.30
Profit / kWh 4.50 5.78 7.28 7.88 8.74
Cooling
Generation Cost of Cooling/USRT - - - - -
S l Price
Sales P i off Cooling/USRT
C li /USRT - - - - -
Profit / USRT - - - - -

Co-Generation
Total cost / kWh 8.00 7.97 7.85 8.76 9.56
Additional cost / USRT - - - - -
Revenue From Cooling/kWh - - - - -
Net cost / kWh 8.00 7.97 8.76 9.56 9.56
Net selling Price 12.50 13.75 15.13 16.64 18.30

Net Profit / kWh 4.50 5.78 6.37 7.08 8.74

Al Rehman Energy Solutions (Pvt) Ltd.

PROJECTED CASH FLOW Year-1 Year-2 Year-3 Year-4 Year-5

Annual power units (kWh) 87,600,000 87,600,000 87,600,000 87,600,000 87,600,000

Annual Cooling Units USRT - - - - -
Sales Price / kWh 12.50 13.75 15.13 16.64 18.30
Sales Price Cooling/USRTh - - - - -
Self consumed Power (kWh) - - - - -

Self consumed Cooling USRT - - - - -

Revenue from power 1,095,000,000 1,204,500,000 1,324,950,000 1,457,445,000 1,603,189,500

Revenue from Cooling - - - - -

Total Funds Generated 1,095,000,000 1,204,500,000 1,324,950,000 1,457,445,000 1,603,189,500

Fuel Exp Power 470,264,100 517,290,510 569,019,561 625,921,517 688,513,668

Gas Exp Cooling - - - - -
Other V. Exp; 50,808,000 55,888,800 61,477,680 67,625,448 74,387,993
Insurance 2,133,100 2,346,410 2,581,051 2,839,157 3,123,072
Administration 2,628,000 2,890,800 3,179,880 3,497,868 3,847,655
Interest 107,889,386 52,536,096 (16,289,590) - -
Depreciation 67,430,866 67,430,866 67,430,866 67,430,866 67,430,866

Total Expenses 701,153,452 698,383,482 687,399,448 767,314,855 837,303,254

Profit 393,846,548 506,116,518 637,550,552 690,130,145 765,886,246

Add Depreciation 67,430,866 67,430,866 67,430,866 67,430,866 67,430,866
Total Cash Flow Generated 461,277,414 573,547,384 704,981,418 757,561,011 833,317,112
Balance Fund From Last Year - - - 840,728,003 1,598,289,014
Payment Of Loan 461,277,414 573,547,384 (135,746,585) - -
Balance Loan 437,800,800 (135,746,585) - - -
Balance Fund. - - 840,728,003 1,598,289,014 2,431,606,125

Normal cash Flow

Discounted C. Flow @20%
Total Cash Generated.
Total Cash Out Flow.