PROJECTS

Kenana Sugar Company

CPES, in partnership with Kenana Real Estate Development Company (KREDC), has designed a market-financed, sustainable solar community in Kenana, Sudan. We have developed a four-phase plan to construct and operate the envisioned community and facilities.

• Phase I: KREDC finances the design costs that build the financial instruments - Power Purchase Agreements and Pro Forma Financials for Operations - that generate project financing from institutional finance markets.

• Phase II: Proceeds of project financing are disbursed by lenders to KREDC. Development costs in Phase I are reimbursed, and construction contracts are executed.

• Phase III: The project is constructed maximizing the use of local (KSC, Kenana, Kosti, Rabat), national (Sudan), and international (Middle East, US, EU) capabilities, contractors, labor, and resources.

• Phase IV: The solar and waste-to-energy power plants generate and sell power to residential, commercial, industrial customers including the national grid. The community houses, rental spaces, and businesses are occupied, finished, and operated.

PHASE I: Define Project Costs & Revenues and Secure Project Financing

1. CPES works with the Development Company partners (KSC and FRAMEMax), architects, engineers, suppliers, constructors, the private sector, and the public sector institutions of the Kenana area and Sudan, to define cost estimates for the construction and operations of power plants, structures, and infrastructure required in the community. For both environmental and financial reasons, CPES recommends a waste-to-energy base-power (24 hours per day) plant for customers in the Kenana-Kosti-Rabat area, as well as the solar array peaking-power (sunlight hours) plant facilitated by the roof and other solar panels designed in the community infrastructure. Independent feasibility studies for the power plants may be necessary to estimate construction and operating costs, revenues and profits accurately and credibly for international financiers.

2. CPES utilizes surveys and builds databases used to pre-qualify prospective residents and businesses in regard to residence, business, power purchasing, and estimated commercial behavior. This includes house leases, business space rents, public institutional space rents, and anticipated investments, improvements, and consumption after construction. With these data, CPES creates a virtual community for review. [Note: CPES prioritizes local Sudanese labor, business, or resident for involvement in the new solar community. Employees, contractors, and suppliers of KSC are researched as a first priority in finding qualified, diverse, prospective residents and businesses in the new community; housing and business prospects can also come from Kenana, Kosti, Rabat, or more distant places in Sudan. The Development Company has final approval of all prospects recommended by CPES.]

3. CPES and partners secure an agreement from government regulators to independently generate electricity and to sell electricity at agreed kilowatt-hour rates to residential, commercial, and industrial users (and to the national grid) at specified kWh rates.

4. CPES prepares and formalizes prospective power purchase contracts with individuals, families, businesses, and institutions planning to buy power from and/or reside, work, or build a new business in the new community.

5. CPES prepares and formalizes prospective lease-to-own residence contracts, and prospective space rental agreements from private businesses or public institutions such as prospective schools and health clinics, where they will live and/or work in the community.

6. CPES prepares a 20-year (or the term of the Project Financing agreement) pro forma financial estimate for construction and operations of the integrated green power plants and sustainable community and enterprises.

7. CPES and attorneys in Sudan and the US prepare the Project Financing documents including the Power Purchase Agreements, the leasing and renting revenues, and the Pro Forma Financial Statement for the integrated power plants and community enterprises, for approval by the Development Company.

8. CPES in conjunction with the Development Company and legal and accounting experts retained for the purpose, will make an offering for project finance to public and private institutions including but not limited to:

• The African Development Bank (which is familiar with this project).

• US International Development Finance Corporation (previously, OPIC).

• The International Finance Corporation, the corporate window of The World Bank Group (which is familiar with this project).

• The US market for utility project financing worldwide (Washington D.C. and New York).

• Middle East, European, and other financial markets.

SUMMARY

The objective of this proposal is to finance a modern, zero-carbon, affordable, profitable, commercially viable, and prosperous community with a mix of US, Middle Eastern, European, Sudanese, and other investors, to give it great strength and visibility.

CPES recommends that the Development Company create investible business documents for all markets. This project will be the first foray of Sudan into world markets for over three decades. It will be the birth of a new day for Sudan’s economic development.