Georgia and Clean Energy’s hydro assets Company, market and assets

1 Introduction

2 Company overview

3 Market

4 Assets

2 302 MW Adjaristsqali HPP Project highlights Perpetual large scale hydropower in high growth region with world class partners

• is one of the easiest places to do business in emerging markets, with low crime rates and a transparent business environment Georgia is a favorable • Over 6% GDP growth in the past decade. IMF expects average growth of 5% in the coming five years investment destination • Reformed and well functioning electricity sector with positive cash flow throughout the value chain • The projects being among the largest FDI’s* in the country

Perpetual hydropower license • Perpetual hydropower license (BOO**) awarded after transparent and competitive tender in 2010 and positive electricity market • Large scale hydropower plant, with COD of 187 MW / ~500 GWh Shuakhevi HPP developments in Georgia • Flexible production and ability to dispatch power both to Georgia and Turkey

• JV partner with Tata Power and IFC World class partners, • IFC, EBRD*** and ADB*** providing long term debt financing for Shuakhevi HPP proven project execution • Mott MacDonald as Engineer, AGE (civil works), GE-Alstom (E&M) for Shuakhevi HPP and experienced management • Shuakhevi HPP to be delivered successfully on time and budget in Q2 2017 • Management team in CEI and in Georgia with extensive international hydropower experience

* FDI = Foreign Direct Investments ** BOO = Build Own Operate *** EBRD = European Bank for Reconstruction and Development, ADB = Asian Development Bank 3 Company, Market and Assets

1 Introduction

2 Company overview

3 Market

4 Assets

4 Short introduction to Clean Energy Invest

Clean Energy Invest Vision and values • A Norwegian company, which holds a perpetual Vision license to build, own and operate the hydropower potential on the Adjaristsqali River and its tributaries in , Georgia Renewable energy for a sustainable world • Active at every stage of the value chain – Tender preparation – Feasibility study Mission – Environmental impact assessment study – Construction permit – Tender design Excellence in hydropower project execution – Procurement – Project financing – Construction Values Strategy – Operations

• Competence We monitor hydropower opportunities closely and • Sustainability demonstrate excellence • Responsibility in project execution

5 Norsk Mineral, the majority owner in Clean Energy Invest A family owned group created through long term investments and strong partnerships

Sector Minerals Industry Property Energy Finance

Holdings • The QUARTZ Corp • PartnerPlast AS Locations • Clean Energy Invest AS Holdings and activities (JV w/Imerys Minerals Ltd) • Oslo (JV w/Tata Power and IFC) • Bank deposits • Hustadkalk AS • Seed capital investments • Florida • Mutual funds (Cooperation w/Omya AG) in technology companies • Berlin • Bonds • Molde • Listed shares • Private equity

Equity share ~20% ~2% ~15% ~20% ~43%

• Norsk Mineral is a Norwegian family owned group with a vision to create values in a responsible manner with respect for humans and the environment • The mineral part of the Group dates back to 1948 via the subsidiary Hustadkalk AS. The Group has later expanded into various industries and entered into multiple successful partnerships • Today the Group is a long term investment conglomerate with various holdings, both as majority and minority shareholder • The Group’s head office and administration is in Molde, with local offices in Trondheim and Oslo • Norsk Mineral’s rationale for the transaction is to maintain a balanced and diversified portfolio

6 History of CEI

2010 2011 2012 2013 2014 2015 2017

• Clean Energy • IFC signs a Joint • First • Tata Power • Loan • Financial close • COD Shuakhevi Invest is Development international enters as JV documents on Shuakhevi HPP established agreement feasibility study partner with signed with HPP • Awarded the with CEI and CEI and IFC in lenders for rights to • Norsk Mineral environmental the projects project as first develop the enters as and social • Construction limited hydro potential shareholder in impact study permit for recourse of the CEI (ESIA) for Shuakhevi HPP project finance hydropower in deal Adjaristsqali • is obtained License Georgia is Georgia/Turkey River and its agreement to • Order to tributaries after completed by • Construction develop the the project proceed given competitive Adjaristqali to civil work on tender project is contractor AGE Shuakhevi HPP signed is initiated

7 Board of Directors with extensive hydropower experience

Baard Mikkelsen Finn Tore Sylte Arild Mathisen Kyrre Olaf Johansen Ragnar Søegaard Einar Stenstadvold Executive Chairman Deputy Chairman Director Director Director Director

• Co-founder of CEI in 2010 and • Has held different positions in • Has held several leadership • Chairman of Adjaristsqali • Former CEO and co-founder • Independent adviser to the Chairman of CEI Norsk Mineral AS, the positions within the Orkla Georgia LLC, Koromkheti of CEI BoD and management in CEI • Former CEO of Statkraft, the majority shareholder of CEI Group, including as COO of Georgia LLC, Adjaristsqali • Former CFO of E-CO, the and a board member largest renewable energy • The former CFO of Norsk Stabburet and as CEO of Netherlands B.V and second largest power representing CEI interests in company in Europe Mineral AS Ringnes. Koromkheti B.V., the company in Norway, with 10 Adjaristsqali Netherlands B.V companies that are and Koromkheti B.V. • Played a key role in • Currently focuses on business • Worked as a management TWh of hydropower consultant since 1999 developing the hydropower generation • Senior executive at SN Power developing SN Power into a development and managing potential in Georgia leading emerging market investments and projects in • Chairman of Norsk Mineral AS • Chairman of Energiselskapet from ‘03–‘14, responsible for hydropower company Norsk Mineral since 2008 • The CEO of Norsk Mineral AS Buskerud AS, a Norwegian developing hydropower in worldwide with investments • Has previously been CEO of utility company with Asia, Africa and Central in India, the Philippines, Chile Entra ASA, Mesta AS and NCC approximately 2.5 TWh of America and Peru Roads AS and sits on the hydropower production • Independent director and • Former board member in E- board of Istad AS and • Professor of finance and chair of companies with a ON, Chairman of the Board in Implenia AG accounting at the Asian renewable energy project Powel and Havyard Group Institute of Technology in portfolio of 750 MW in Bangkok Eastern Europe, Africa and Central America

8 Clean Energy Invest partners

CEI’s JV partners • CEI has a joint venture with IFC and Tata Power in Adjaristsqali Netherlands BV and Koromkheti BV – Adjaristsqali Netherlands BV owns the project • Member of the World Bank • Tata Power is India's largest company Adjaristsqali Georgia LLC which develops Group integrated power company with 187 MW Shuakhevi project significant international presence • Currently the largest global – Koromkheti BV owns the project company development institution focused within the wind, solar, hydro and exclusively on the private sector geothermal energy space Koromkheti Georgia LLC (KGL) which will develops in developing countries • TATA Power holds a 40% 115 MW Koromkheti project ownership in the projects, • IFC holds a 20% ownership in the • projects and has also contributed contributing with industry Debt financing for the Shuakhevi HPP was with debt financing knowledge secured from IFC, ADB and EBRD

Lenders for the Shuakhevi HPP

9 Company, Market and Assets

1 Introduction

2 Company overview

3 Market

4 Assets

10 Georgia – short introduction

Georgia on the map

• Country the size of the Benelux with population ~4 million • Located in the Caucasus region with coast line to the Black Sea • Heavy precipitation in the western region, with ~2 500mm of rainfall annually in • Growing tourist destination with more than 6 million foreign arrivals in 2016 • Modern cities are emerging with significant infrastructure investments fueling the growth in the country Number of foreign arrivals up 800% the last decade Modern cities with solid infrastructure has emerged

Batumi is a modern city with an international airport

Source: World Bank, Invest in Georgia 11 Georgia is an attractive country for foreign direct investments (FDI) Fundamentals are attracting large international players

Annual FDI has doubled since 2009 Selected international players with Georgian investments

USDbn 20% 20% 2,0 1.8 2.0 1.6 1,5 15% 1.4 15% 12% 1.1 0.9 0.9 11% 1,0 10% 0.8 10% 10% 1.2 0.7 7% 7% 8% 6% 6% 6% 0,5 5% 0.5 0.5 • Well functioning democratic governance since 2004 0,0 0% – United National Movement won parliamentary and presidential elections in 2004 and 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2008 FDI % of GDP – Georgian Dream won the parliamentary elections in 2012 and the 2013 presidential election Continued strong growth in GDP expected in Georgia – Peaceful transition of power between the main political blocks Average GDP growth (2003-2014) Average GDP growth forecast (2015-2021) • Pro reform government and population 7% 7% – Association agreement with EU, member of WTO since 2000, signatory to the Energy Charter Treaty and a candidate country for NATO and EU 6% 6% – Strong reform drivers over the last decade and broad consensus on the policy direction among main political parties 5% 5% • Deep and Comprehensive Free Trade Agreement with EU, trade regimes 4% 4% with Canada, Japan, Norway, Switzerland and USA. 3% 3% • Open economy with FDI of USD 1.4bn in 2015, representing ~10% of GDP 2% 2% – FDI stock/GDP of 74% on par with Estonia and Netherlands CAGR 27% • GDP per capita (PPP) of ~USD 9 600 in 2015 1% 1% – Strong growth in GDP since 2003 with CAGR of 6.3%, increasing GDP to USD 14bn 0% 0% – IMF expects growth of ~5% annually in the coming five years – Moody’s (March 2016) and Fitch (April 2015) with a credit rating of Ba3 and BB-, both with stable outlook

Source: IMF, Invest in Georgia, Trading Economics 12 Offering a safe, easy and transparent business environment

Lower reported crime level than Switzerland Impressive development in ease of doing business

Crime index 2016 Ease of doing business rank 70 64 160 60 140 137 46 120 50 112 40 100 100 80 30 21 60 20 12 40 6 37 10 24 20 18 16 17 16 11 9 14 15 - - India Turkey Norway Switzerland Georgia 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* At par with Norway and Switzerland on bribery risk Business bribery risk ranking 200 • One of the safest countries in the world with the 6th lowest 178 180 reported crime level in 2016 160 • Ranked as the 16th easiest country to do business in worldwide 140 by the World Bank in 2017 120 – Significant step change in the period 2004-2008 with stable 94 100 development 79 80 – Easiest place to do business in low middle income segment worldwide 60 – Corporate tax rate of 15%, favorable depreciation rules and tax treaties 40 14 13 • Georgia offers the 11th lowest risk of facing briberies 20 5 worldwide according to Trace International 0 India Russia Turkey Switzerland Georgia Norway – Performing better than Norway and Switzerland

* Note that World Bank Doing Business altered its methodology in 2016, thus the historical numbers are based on the former methodology Source: Numbeo Crime Index 2016, World Bank Doing business 2016, Trace International 2014 Global Bribery Index 13 Participants and ownership in the Georgian electricity sector

Privatization of the electricity sector has been going on for the past decade and is still increasing

Generation Transmission Dispatch Distribution Consumption • State share (39%) • GSE (100% state owned) • GSE (100% state owned) • Energo-Pro • Direct consumers • Energo-Pro (17%) • SakRusEnergo (50% state (60% market share) (18% of consumption) • Inter-Rao (15%) owned, 50% Inter-Rao) • Telias-Inter-RAO • Retail consumers • Other (29%) • Energo-Trans (100% state (31% market share) (82% of consumption) owned) • Energy Distribution (9% market share)

• Generation assets consist mostly of hydropower plants, with thermal power plants as peak producers • The state owns 40% of all generation assets, and most transmission and dispatch companies • Czech company Energo-Pro entered Georgia in 2007 and is the second largest player in the generation sector and the largest distribution company in terms of customers served • Generation companies can either sell electricity directly to customers, or to the Energy System Commercial Operator (ESCO) who is responsible for balancing the demand and supply • The direct customers consist of large power consumers such as railway, water or power producing companies

Source: GSE 14 Large growth potential in electricity consumption per capita Supporting a strong increase in demand

Consumption per capita development, Georgia Consumption per capita (2014) kWh/capita (Georgia) kWh/capita 3000 7000 CAGR 5% 6 973 7 198 6000 2500 5000 5 483 2000 5 060 4000 2x 1.5x 1500 3000 3 387 1000 2 891 2000

500 1000

0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Georgia Turkey Italy Spain Germany France

Consumption per capita development, Turkey • Growth in electricity consumption per capita for both kWh/capita (Turkey) Georgia and Turkey since 2007 CAGR 3% 3500 • Georgia and Turkey have a low consumption of 3000 electricity per capita compared to countries with 2500 similar climate conditions 2000 – Georgia with over 2x growth potential to reach level of Italy 1500 and Spain – Turkey at over 1.5x 1000 • Demand growth in Georgian and Turkish markets 500 expected to drive price growth 0 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Georgia Ministry of Energy, IMF 15 Still large untapped hydropower potential in Georgia One of few countries with large growth opportunities within hydro

More than 50% technical potential developed 30 -50% of technical • Most European countries have developed a potential developed large share of their hydro potential due to Less than 30% of technical potential developed the unique characteristics of hydro in the Potential less than 5 TWh energy mix (low cost and flexible)

• Authorities in Georgia estimate a technical hydropower production potential of ~80 TWh in the country

• Georgia has the best remaining large scale commercial hydropower resources in Georgia Europe

• Georgia has vast growth opportunities within hydropower – Only ~13% of technical potential developed Source: World Energy Council 2013: (~10 TWh) World Energy Resources – 50-70% in many Western European countries

Source: ESCO, World Energy Council 16 Market development in Georgia Power market in Georgia towards integration with European power markets

Towards the single European market, next steps • A competitive day ahead market will be implemented by 2020 as part of EU association agreement • Georgia also with expected market coupling with European networks as part of EU Association agreement – Market coupling will start with Turkey and is expected to extend to other European countries • Plans to join ENTSO E , the grid regulatory body in Europe

More developed markets evolving in Georgia

Financial market Intraday markets Day ahead (long-term and real time market hedging) balancing

Source: NordPool, PCR 17 The transmission infrastructure in Georgia is being upgraded

Current transmission system (2014) Expected transmission system in 2020

• The Georgian network currently has high capacity and low transmission losses, but with some bottlenecks • Georgia’s transmission capacity is set to improve significantly over the next decade, with total investment over EUR 800m • The current network is going through a significant upgrade • GSE has developed a 10 year network development plan to increase reliability of power transmission – Reducing the load on the overhead line – Ensuring sufficient transmission capacity from new hydropower plants – Enabling increased export of electricity to neighboring countries • New grid connections from the Shuakhevi HPP and Koromkheti HPP in both western and eastern direction is under construction and is expected to be finished before Q3 2018 • Expansion plans and agreements include further integration with Turkish grid

Source: GSE, Galt & Taggart – Georgia | Energy – Industry update May 2016 18 Brand new transmission infrastructure from busbar to Turkey

New 220 kV line connecting projects to grid

• New 220 kV double circuit transmission line connection Batumi and linking Shuakhevi and Koromkheti to the grid, ensuring two evacuation routes for the electricity – Engineering by Mott MacDonald, financed by World Bank – Under construction, connection expected Dec. 2016

• Coordinated 10-year transmission grid expansion plan between Turkey and Georgia being implemented Georgia’s Akhaltsikhe HVDC substation • Georgia is the first country in the Caucasus region using HVDC links, the 500/400/220-kV Akhaltsikhe substation, which was planned and built by Siemens • The Akhaltsikhe substation has improved the reliability of Georgian power supply and enables efficient export of electric power to Turkey • The state-of-the-art substation is part of the Black Sea Transmission Network Project, a main component of Georgia’s future as an energy exporter

Source: Siemens 19 Georgia has significant transmission capacity to Turkey and Russia Enabling simple dispatch of electricity during peak production periods

Current cross-border transmission capacity Net export by country

GWh 160 MW 700 MW 1 000 160 MW 800

700 MW 600

400

200 500 kV existing 400 kV existing - 220 kV existing (200) Allowable trade capacity 160 MW (400) 700 MW 850 MW 350 MW 150 MW (600) 700 MW 160 MW 350 MW 2010 2011 2012 2013 2014 2015 850 MW 150 MW Russia Azerbaijan Armenia Turkey

• Geographic location makes Georgia an ideal energy transit • Developing the country’s hydropower resources, Georgia between Russia, Armenia, Iran, Azerbaijan and Turkey expects to be a net exporter of electricity • An important goal of the GSE network development is to realize • Turkey is the biggest net importer of Georgian electricity power transfer potential with neighboring countries • Almost all of Georgia’s electricity export volumes are exported • Current expansion plans will increase cross-border transmission during May, June and July when hydropower plants are at their capacity from 3 060 MW to 5 460 MW highest production

Source: GSE 20 Hydropower offer significant positive environmental impact… …and additional revenue potential through sales of emission allowances

Green house gas (GHG) emissions for different sources of electric power

GHG emissions (g CO2 equivalents /kWh) • Run-of-river hydropower plants have the 1000 lowest green house gas emissions 879 900 878 • Hydropower also offer the highest energy efficiency, up to about 90%, and the longest 800 life span among the different sources of 700 electric power 620 600 • CO2 pricing is high on the international political agenda after the Paris COP21 500 meeting

400

300

200

100 64 6 8 14 17 0 Hydropower - Nuclear Wind Hydropower - Solar Thermal - Thermal - oil Thermal - coal run-of-river reservoir photovoltaic natural gas

*) IETA = International Emission Trading Association Source: Hydro-Quebec, Fortum, IETA (IETA GHG Market Sentiment Survey, 11th Edition) 21 CEI’s projects are eligible for carbon credits

The Clean Development Mechanism

• The Clean Development Mechanism (CDM) allows for investments in specific projects in developing countries that contribute to reducing greenhouse gas emissions and to a sustainable development • CDM is also a quota system in which emission reductions in developing countries may be used to cover emission commitments under the Kyoto Protocol • Established under the Kyoto Protocol, it is an international mechanism under the UN which contributes to technology transfer, skills development and modernization in developing countries • The projects may also give significant environmental and health gains • CDM is a project-based system – Each individual project is evaluated and approved by a committee under the UN – The UN issues carbon credits based on a thorough documentation of the emission-reducing effect of the project verified by an independent third party approved by the UN – The implementation of projects is also systematically monitored through measurements and reporting relevant data – The regulations for approving projects have been tightened several times in recent years • CDM enables countries to take on more ambitious goals than they would otherwise have done and the projects that have been completed under CDM have delivered 1.5 billion tons of documented emission reductions to date – In comparison, Norwegian emissions in 2012 were 52.7 million tons • There are continuous calls for strengthening the global carbon markets – large scale hydropower to be positively affected • CEI’s projects are the first greenfield hydro projects in Georgia that have been accredited by UNFCCC (United Nations Framework Convention on Climate Change) for carbon emission reductions as CDM projects • In 2020, the Paris Agreement replaces the Kyoto Protocol, including a mechanism similar to CDM that will be planned in further detail at the global climate summit in Morocco in November, 2016

Source: The Government of Norwegian – Ministry of Climate and Environment 22 Company, Market and Assets

1 Introduction

2 Company overview

3 Market

4 Assets

23 The Adjaristsqali cascade license awarded to CEI… …after a competitive and transparent tendering process

CEI’s Adjaristsqali cascade license

• The Ministry of Energy in Georgia published a tender for the Adjaristsqali cascade hydro project on March 22nd 2010 • Tender based on 2 criteria: (i) time to construction completion and (ii) bank guarantee to be posted • Three companies expressed interest in the project: Clean Energy Invest, Limak Holding (Turkey) and Kolin Construction (Turkey) • Mr. Alexander Khetaguri announced on April 28th 2010 that Clean Energy Invest AS had submitted the best bid for the Adjaristsqali project, and CEI was selected as the preferred bidder for the cascade • Implementation Agreement for the development of the project was signed between CEI and the Government of Georgia on June 10th 2011, providing the basis for the company’s exclusivity to the project development rights

24 The assets are located in the south-western part of Georgia

Asset overview

• Perpetual license to build, own and utilize the water resources in the Adjaristsqali river and its tributaries from elevation 800 to 200 meters above sea level • The HPPs are located in Adjara, Georgia, ~220 km west of • Successfully designed to avoid resettlement

Phase 1: Phase 2: Shuakhevi hydropower project Koromkheti hydropower project • Shuakhevi power plant (178 MW) • Koromkheti power plant (115 MW) • Skhalta power plant (9 MW)

25 World class social and environmental standards

Projects with high international standard

• Projects implemented according to IFC Performance Standards and Georgian laws and regulations • Vocational training to equip local qualified labor to take part in the construction of projects. 700 Georgian citizens employed during construction period • The projects are estimated to have significant positive impact on municipal budgets through payment of property tax in the most affected municipalities • CSR* budget of USD 3m to provide assistance in livelihood improvements and basic infrastructure • Substantial improvements in regional infrastructure and long term job prospects • Lost time accident frequency rate in Shuakhevi HPP in line with large Norwegian contractors. Compares favorably to projects in emerging markets

* Corporate Social Responsibility ** ESIA = Environmental, Social and Impact Assessment 26 187 MW Shuakhevi HPP completed Q1 2017

Shuakhevi HPP is on time and budget Quick facts: Shuakhevi hydropower project

Project company Adjaristsqali Georgia Limited (AGL) Type Run of river with peaking capability Totalpower production capacity 187 MW Estimated total annual production ~500 GWh Number of hydropower stations 2 Number of dams with reservoir 2 Number of weirs 1 Total excavated tunnel length 37 km Engineer Mott MacDonald Civil works contractor AGE Electro-mechanical provider GE-Alstom

Overview of Shuakhevi HPP with Skhalta and Shuakhevi power stations

• The 187 MW Shuakhevi HPP consists of two hydropower plants, Skhalta and Shuakhevi, with a perpetual license • The project is expected to be completed on time and budget Q1 2017 – Breakthrough in headrace tunnel May 2016 – Breakthrough all tunnels September 2016 after 26 months of construction – Main dam impoundment expected February 2017 • Project company (AGL) management team with extensive international experience represents owners at site • Project development and construction by world class contractors – Project development with leading international engineering company, Mott MacDonald – AGE is conducting the civil works for the project – GE-Alstom supplies and installs the electromechanical equipment Didachara dam under construction – Impounded during Q1 2017

27 115 MW Koromkheti downstream of Shuakhevi

Koromkheti utilizing experience from Shuakhevi HPP Quick facts: Koromkheti hydropower project

Project company Koromkheti Georgia LLC (KGL) Type Run of river with peaking capability Estimated power production capacity 115 MW Estimated annual production ~315 GWh Number of hydropower stations 1 Number of dams with reservoir 1 Number of weirs 1 Total excavated tunnel length 16 Km Engineer TBD Civil works contractor TBD Electro-mechanical provider TBD

Overview of Koromkheti HPP, downstream from Skhalta and Shuakhevi HPP

• The 115 MW Koromkheti HPP consist of one power station with a perpetual license and is a less complex project than the Shuakhevi project, with low to medium construction risk and 28 months for main construction works • Tangible synergies identified with and from the Shuakhevi HPP • Technical feasibility study by Mott MacDonald with third party verification by Pöyry/Sweco completed in April 2016 • Comprehensive ground investigation to minimize underground risk performed by STFA, a leading Turkish contractor

Team with valuable experience from the successful Shuakhevi project

28 Superior project execution Shuakhevi HPP is a result of extensive and specific experience in developing HPPs

Shuakhevi headrace performance vs. project plan

• The Shuakhevi project is on schedule to be delivered according to budget and plan • Transmission construction is carried out by GSE • Comprehensive early stage investment in project development to mitigate risk, including extensive underground work • Engineering expertise, contractors and equipment has been chosen carefully to ensure superior development and project execution

• Construction of the Koromkheti HPP will be a simpler process • The plant will have one single dam and a weir • Only one tunnel • Only one power house • Transmission network already exists • Project less spread out

Source: Mott MacDonald 29 433 MW Namakhvani project awarded through competetive tender January 2017

30 Location of 433 MW Namakhvani project

• Project located at Rioni river, the most affluent river in Georgia • 20 km north of the second largest city in Georgia • 45 minutes drive from international airport with connection flights to Europe • 3 hours drive or by train to Tbilisi the capital of Georgia • Project site a elevation 300-400 meter with mild winters enabling all seasons construction activities

31 Key parameters Namakhvani project

Namakkhvani HPP Tvishi HPP Total Main PH Small PH PH MW 323 12 100 435 GWh 1120 100 343 1563 Dam height 100 meter 59 meter Tunnels 4,4 km 0,5 4,9 km Construction 39 months 39 months 39 months

32 Namakhvani HPP

33 Tvishi HPP

34 Namakhvani project at an advanced stage

• Design developed by Studio Pietrangeli and confirmed by engineers from Clean Energy Group and Enka • Environmental and construction permit granted to project • 90+% of private land and all state land with sales agreement to project company • Detailed design starts in Q2 2017 • Construction start expected Q2 2018 • GSE, TSO in Georgia with guaranteed grid access for project and will ensure connection • Strong political support as among largest HPP constructions in country

35 Partnership structure

• JV between Clean Energy Group and Enka • Clean Energy Group with 70% of the equity in the project • Enka, a Turkish stock exchange listed industrial company with 10 bn USD balance sheet • Clean Energy Group will manage the financial close, social issues and the owners role • Enka will be constructing the project with a fixed price EPC • Enka with several years of experience in Georgia (BP pipeline project Baku-Ceyhan under construction)

36 Project highlights Perpetual large scale hydropower in high growth region with world class partners

Georgia is a favorable I investment destination

II Perpetual hydropower licenses

World class partners, III proven project execution and experienced management

37