Investor Presentaiton
Responses to Reported Concerns (continued)
Competitive Bidding
Reported concern: There wasn't a competitive bidding process for AHP
Response: Five (5) EPC proposals were received for the power plant in late 2008, followed by another round of
negotiations with bidders. Bidders included: China Gezhouba Group Corporation (the main contractor of the
Three Gorges Project), China National Technical Import and Export Corporation, China Railway Engineering
Corporation, CNC India Group and Salini Construction. The proposals were evaluated based on price,
construction and engineering experience, management capability, quality of specified critical equipment,
suitability of project arrangement layout and features, quality of execution plan, financial resources, contract
terms, quality assurance and control plan, health and safety plan, environmental plan and performance
guarantees. Final selection took place in late 2008/early 2009.
Cost Over PPA Term
Reported concern: Cost of AHP is over $2.5 billion over the term of the PPA
Response: The sum of each annual tariff for AHP over the 20 year period results in a total cost of US$1.95B.
However, the cost of generation for GPL (with no AHP) over the same period, based on today's HFO generation
cost of 19 US ¢/kWh, would be US$4.1B. Therefore, AHP would result in savings of more than US$2.1B over the
PPA term.
20 Year Total Payments for 1,077 GWh
US$ BN
Without AHP
4.09
AHP
With Savings
1.95
2.15
23
SITHE GLOBAL
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