Investor Presentaiton

E.4 Energy: Implement planned laws and increase grid connections (III/III) Initiative objective • Publish signed Energy Corporation Law Infrastructure Initiative Lead E.4.3: Permanent Secretary, Ministry of Energy and Water Resources Improve grid connections either through NESCO or the PSEC5 raising capital Actions E.4.3 Encourage NESCO and PSEC to raise capital and expand transmission Convene NESCO/PSEC5 and their stakeholders to consider expanding coverage to identified profitable agro-hubs, food-processing and mining areas based on profit potential Work with other NESCO/PSEC5 stakeholders¹ to convince board to take on debt from development banks (e.g., China's EXIM Bank, IFC4), donors (e.g., USAID) or to attract PPPs² to fund expansion using favorable long term profit-split ratio, tax holidays etc. e.g., In 2015, Edo took debt from several institutions, including IFC4, OPIC³ etc., to build the Azura power plant Lobby NESCO/PSEC5 to subsidize connection costs to low-income communities within existing distribution coverage Deliverables Recommended timeline NESCO's/PSEC5'sdecision on expanding 2 months coverage Detailed incentive structure for potential PPPs or lenders Detailed connection costs for different customer type i.e., low, mid and high- income segment • 3 months • 6 months Stakeholders Ministry of Energy and Water Resources NESCO Investments Limited Other NESCO Stakeholders¹ PSEC5 and its stakeholders Resources Note that the involvement of PSEC¹ in initiatives E.4.2 and E.4.3 is dependent on the completion of initiative E.4.1 Metrics 1. Plateau State, Benue State, Nasarawa State, Nigerian Mining Corporation etc. 2. Public Private Partnerships 3. Overseas Private Investment Corporation 4. International Finance Corporation 5. Plateau State Energy Corporation Increase in number of new connections Potential quick-win 162 Copyright 2019 by Boston Consulting Group. All rights reserved. A

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