The information as contained herein may neither be reproduced nor used, in whole or in part, for any other purpose nor furnished to any person(s) without express written permission from MERALCO PowerGen Corporation

Meralco Powergen Coal Projects

Dan Neil Executive Vice President and General Manager MGEN

Confidential 1 Meralco and Meralco PowerGen

• Meralco PowerGen Corporation (MGen) is a wholly-owned subsidiary of the Manila Electric Company (Meralco).

• Meralco is the largest electric distribution utility in the , covering the Greater Manila region, 36 cities and 75 municipalities. • 115 years in service. • Serves over 6 million customers, 50% of the total electricity demand of the Philippines

• MGen is pursuing the development and construction of cost-competitive and reliable power plants to ensure the provision of adequate, reliable and affordable power to customers in the Meralco franchise area and other areas.

• Targeting a diversified power portfolio of up to 3,000 MW in the Philippines; focusing on availability, reliability and price to the consumer.

2 MGen Priority Projects

3 Meralco Powergen

Under Development Under Construction Operating

Atimonan One Energy, Inc. (A1E) San Buenaventura Power Ltd. Co. (SBPL) Global Business Power 2 x 600 MW net In partnership with EGCO Corporation (GBPC) Super-Critical Coal 1 x 455 MW net 749MW net Super-Critical Coal Sub-Critical Coal / Diesel

51%* 49%*** 22%

Redondo Peninsula Energy, Inc (RPE) Pacific Light Power Pte Ltd. In partnership with Aboitiz / Taiwan In partnership with Metro Pacific Cogeneration Corporation Inverstment Corp. 2 x 300 MW net 2 x 385.5 MW net Cicuilating Fluidized Bed, Sub-Critical Combined Cycle Gas Turbine 50%** 28%

*

4 MGen Projects RPE SBPL A1E Subcritical Supercritical Ultra-supercritical Technology Circulating Fluidized Bed Pulverized Coal Pulverized Coal Capacity (MW, net) 600 455 1200 Capacity factor 80% 80% 80% Commercial Operation Date 2021 Mid 2019 2022 Fuel Requirement (MTPA) 2.5 1.5 4 Potential Fuel Source Indonesia Indonesia Indonesia, Australia, US PRB Coal Specification Calorific Value (GAR, kcal/kg) 4,500-5780 4,300-5,000 4,500-5,800 Ash Content 6.9-18% 0.5-8% 1.3-11.7 Sulfur Content 1% 1% 0.07-1% To be managed by the Joint Managed by existing project Being managed by MGen; Fuel purchasing update Venture. Identification of operator; early discussion working with coal consultant preferred suppliers ongoing. ongoing to identify preferred supplier

5 MGen’s Coal Power Projects

San Buenaventura Power Co. Ltd Redondo Peninsula Energy, Inc.

Atimonan 1 Energy

6 SBPL Project Overview

Total Project Equity Project Company Total Project Equity: Php 14.05 Bln San Buenaventura Power Ltd. Co. (“SBPL”) MGEN: Php 7.17 Bln NGBV: Php 6.88 Bln

Project Description 1 x 455MW (net) coal fired Supercritical Pulverized Off-take Coal Boiler and Steam Turbine Generator in , (the “Project”) ERC approved Power Supply Agreement with MERALCO with modifications accepted on May 30, 2015 Current Shareholders Meralco PowerGen (MGen) - 51% New Growth BV (100% owned by EGCo) – 49% EPC Contractor / Equipment Notice to Proceed to Daelim Industrial Co. Ltd. and Mitsubishi Corporation issued on December 08, 2015 Total Project Cost Php 56.2 Bln

Grid Study Completed and reviewed by NGCP as of Expected COD December 17, 2013 Mid 2019

7 San Buenaventura Power Limited Co. (SBPL) 455MW (net) Supercritical Coal-Fired Power Plant in Mauban, Quezon

• Construction of the power project is now on its 28th month and on schedule for commercial operations in mid-2019. • Recent significant EPC Milestones are as follows: • Boiler structure has topped STG, Control Building, Boiler and Pulverizer Area out with the installation of the heavy girders • Installation of all 5 transformers • Stack structure reached full height of 155 meters

Transformer Area

8 Project Overview - Atimonan

Project Company ECC Atimonan One Energy, Inc. (“A1E”) ECC issued in October 2015

Project Description TL ROW Greenfield coal project, 2x600MW Requires 25km alignment to New (net) using Ultra-Super Critical substation, technology

Current Shareholders 100% MGEN owned at present; 49% Interconnection sell-down to investor ongoing GIS and Facility Study approved by NGCP; Connection Agreement executed by NGCP in Jan 2017 Total Project Cost ~ PhP143.3 Billion Expected COD U1 - 2022

Off take Fully contracted with Meralco; PSA Opportunity for MGen for ERC approval Independent development of project targeted to be the most efficient generation facility in EPC Contractor the Philippines Preferred contractor identified, grant of contract awaiting final ERC approval

Confidential 9 Atimonan One Energy, Inc. (A1E) 2x600 MW Ultra Supercritical Coal-Fired Power Plant in Atimonan, Quezon

▪ Environmental Compliance Certificate (ECC) obtained in October 2015

▪ In April 2016, A1E signed a PSA with Meralco for the full output of the plant. The PSA is awaiting ERC approval.

▪ Connection Agreement with NGCP approved by the ERC in February 2017

▪ Preferred EPC contractor identified, Notice to Proceed awaiting final regulatory approvals.

▪ Mandate Letter for up to Php107.5B from a group of 7 local banks signed.

▪ Site preparation works are targeted to start in Q3 2018. Expected completion of Unit 1 is in 2022

10 Atimonan One Energy, Inc. (A1E) 2x600 MW Ultra Supercritical Coal-Fired Power Plant in Atimonan, Quezon

▪ Turnover of resettlement housing for the affected families was completed in 2017

▪ Construction of a 1.6-km Access Road completed earlier this year.

▪ Regular CSR activities in place for the benefit and development of the affected communities and the LGUs,

11 Redondo Peninsula Energy, Inc. (RP Energy) 2x300 MW CFB Coal-Fired Power Plant in Subic,

Project Company Construction Period Redondo Peninsula Energy, Inc. 39 months for Phase 1 (“RPE”) from Notice to Proceed

Project Description Off-take 2X300 MW (Net), Circulating Fluidized Bed PSA with Meralco DU (225MW) and Coal Fired Power Project, located in Aboitiz Energy Solutions Inc. (75MW) Freeport Zone, Philippines (the “Project”)

Shareholders Expected COD Meralco PowerGen 50% Q4 2021 Aboitiz Power Corp. 25% Taiwan Cogeneration Corp. Philippines Branch Inc. – 25% Board of Investments Certificate of Registration awarded on June 1, 2016 Total Project Cost Status – Non Pioneer ~PhP42 Billion For Phase 1:

Transmission Line EPC Contractor / Equipment U1 in place U2 under final development Offshore Contractor – Doosan Heavy Industries

The project has completed all major development activities and is waiting for the approval of its revenue agreement from the regulator before it issues a notice to proceed.

12 The Future of Coal

13 Why MGen is developing coal projects

• MGen’s pursuit of coal projects is aligned with why MGen was established: • Reliable low cost generation: • Coal is the reliable and cheap baseload supply to provide security of supply to Meralco customers. • Competitiveness in Power Rates, Reliability & Efficiency: • Highest efficiency from choice of larger-sized plants and of super- critical plant design; hence, protection against fuel cost. • Using only proven high-efficiency designs, securing project cost from credible EPC contractors and reliable OEM suppliers

Confidential 14 A competitive generation sector in a price-sensitive buyers market drives the building of coal plants

Pre – EPIRA Under EPIRA • Generally, a Sellers’ Market • Generally, a transformation to Buyers’ Market • State monopoly under NAPOCOR • Empowering buyers with competition and • Imperative to reduce oil; replace with choice indigenous and renewable energy • Radical structural reforms: • Government market or off-take guaranties to incentivize investors in power • Exit of government in generation and transmission • open, competitive and deregulated generation sector, • creation of WESM, • implementation of RCOA. • Competition for PSAs and in the WESM spawns new builds

EPIRA: Republic Act 9136 – Electric Power Industry Reform Act of 2001

15 New Builds will replace aging plants and meet growth 60% are older than 15 years

≤ 5 years >25 years 25% 22% >5 and ≤ 10 years 4%

21,210 MW Total Capacity

>20 and ≤ 25 years 11%

>15 and ≤ 20 years >10 and ≤ 15 years 26% 12%

Confidential 16 Going Forward

• MGEN remains committed to supply diversity for the future – LNG remains of interest, when the market mechanisms are in place to give a return on investment – Growth in renewables, particularly wind and solar, will continue where the projects are competitive • But coal will be a cornerstone of the Philippine electricity market for many years to come

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