Al Rehman Energy Solutions (Pvt) Ltd.

Dated: May 21-2010 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 3 % Price of Coal 14.50 Rs / kg
Bank Charges 2 % Erection time 120 days
Misc on capital 5 %
Definitions
All brand new equipment main fuel is
Costs US$ P.Rs 100% Coal
Land 1,500,000 150,000,000
Building 500,000 50,000,000
Machinery 6,463,941 646,394,054
Import Duty 323,197 32,319,703
Sales Tax - -
Banking Chg: 129,279 12,927,881
Income Tax 193,918 19,391,822
Misc; Expenses. 323,197 32,319,703
Erection 96,153 9,615,300
Interest During Const 255,016 25,501,574
Total Capital cost 9,784,700 978,470,036

Equity - -
Loan 9,784,700 978,470,036
Al Rehman Energy Solutions (Pvt) Ltd.

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

Gas/Fuel 7.10 7.81 8.59 9.45 10.39
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 7.68 8.45 9.29 10.22 11.24

Depreciation 0.84 0.84 0.84 0.84 0.84

Insurance 0.02 0.03 0.03 0.03 0.04
Administration 0.03 0.03 0.04 0.04 0.04
Interest 1.34 0.93 0.41 - -

Total Fixed Cost 2.23 1.83 1.32 0.91 0.92

Electricity
Total Cost / kWh 9.91 10.27 10.61 11.13 12.16
Sale Price / kWh 12.50 13.75 15.13 16.64 18.30
Profit / kWh 2.59 3.48 4.52 5.51 6.14
Cooling
Generation Cost of Cooling/USRT - - - - -
Sales Price of Cooling/USRT - - - - -
Profit / USRT - - - - -

Co-Generation
Total cost / kWh 9.91 10.27 10.61 11.13 12.16
Additional cost / USRT - - - - -
Revenue From Cooling/kWh - - - - -
Net cost / kWh 9.91 10.27 11.13 12.16 12.16
Net selling Price 12.50 13.75 15.13 16.64 18.30

Net Profit / kWh 2.59 3.48 3.99 4.48 6.14

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

Gas Exp: Power 621,928,990 684,121,889 752,534,078 827,787,485 910,566,234

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 117,416,404 81,406,144 36,064,629 - -
Depreciation 73,385,253 73,385,253 73,385,253 73,385,253 73,385,253

Total Expenses 868,299,747 900,039,295 929,222,571 975,135,211 1,065,310,206

Profit 226,700,253 304,460,705 395,727,429 482,309,789 537,879,294

Add Depreciation 73,385,253 73,385,253 73,385,253 73,385,253 73,385,253
Total Cash Flow Generated 300,085,506 377,845,957 469,112,682 555,695,042 611,264,546
Balance Fund From Last Year - - - 168,574,109 724,269,151
Payment Of Loan 300,085,506 377,845,957 300,538,573 - -
Balance Loan 678,384,530 300,538,573 - - -
Balance Fund. - - 168,574,109 724,269,151 1,335,533,698

Normal cash Flow

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