Invest in Jordan Take advantage Turn to Jordan

Invest in Jordan Take advantage. Turn to Jordan. Dr. Bashar Al-Zu’bi Senior Advisor to the CEO March 2012

and presents clear enablers to help your business grow. Political Stability, Security & Vision Skilled & Talented Human Capital Modern & Well Connected Infrastructure Growing, Robust & Stable Economy Favorable Business Environment Intellectual Property Protection in Line with WTO & International Standards

The Jordan EWE & clean energy advantage. The right place. The right time. Page 3

Consider your home energy challenge No indigenous energy resources High dependency on imported energy Our Challenge In Jordan Primary energy demand is expected to double between 2008 and 2020 High cost to the economy with energy imports accounting for more than 13% of GDP 4

As your investment opportunity at your own home. In order to achieve our transformational master energy plan, we are investing over $18 bn in our energy sector $2 400 $8 000 Natural Gas $6 000 Enegery Efficiency $150 $4 000 $2 000 Power Sector $5 800 $0 Oil Shale Oil $3 400 $3 800 $2 100 Energy Renewable Your opportunity to leverage our strategic focus on the top half of the green energy value chain covering opportunities in assembly, installation, integration, testing and support With a fast growing local market acting as your test bed and a strategic geographical location providing a launch pad to the region, Jordan is the natural home for your energy investment 5

Energy Master Plan Imported 2008 Natural Gas, 36% Electricity, Oil Nuclear Shale, 2% Power, 0% 0% Renewable Energy, 2% Oil, 60% Imported 2020 Electricity, Oil Shale, 14% 1% Natural Gas, 29% Renewable Energy, 10% Nuclear Power, 6% Oil, 40%

Opportunities Oil Shale – Jordan’s reserves of oil shale are estimated at 40 billion tonnes – There are 23 known surface and near-surface deposits scattered across the central/southern area – Opportunities exist for Production Share Agreements to extract oil from the oil shale deposits, in addition to power generation from direct combustion

Opportunities Nuclear Energy – Jordan is estimated to have 2% of the world’s uranium deposits – Up to 65, 000 tonnes are in the form of surface sediment – Approximately 100, 000 tonnes are in phosphate deposits – Jordan is a signatory of the Nuclear Nonproliferation Treaty and has nuclear cooperation agreements with many countries including: France, Russia, U. K, Spain, Italy, Romania, Turkey, Canada, Japan, S. Korea, China, and Argentina. – AREVA was granted exploration and mining rights in 2008 – Talks are ongoing with two Australian companies to finalize a deal for uranium exploration in the southern regions of Jordan

Opportunities • Wind Energy – Several areas with wind speeds exceeding 7 m/s – New projects are underway or being negotiated: • Al Kamshah – 40 MW • Fujeij – 90 MW – Opportunities for other sites like Al-Harir, Wadi Araba and Ma’an for wind farms with a capacity of 300 – 400 MW

Opportunities Solar Energy – Jordan is located within world solar belt with 300 -320 days of full sunshine and low humidity, with solar irradiation levels of 2600 Kwh/m 2

Opportunities • Solar Energy – Currently 14% of households use solar water heating, and it’s expected to grow to 20% by 2013. – 300 MW of concentrated solar power generation will be added to the energy mix by 2020. – Jordan’s transmission network is connected to the MENA region and EU. – Jordan has one of the highest engineers per capita ratio, around 1 engineer per 71 inhabitants.

and to help you, JIB has identified several projects that offer attractive rates of return that are above deposit rates. Turnkey Solar Equipment Packager Investment (millions USD) District Energy Company 56. 4 Concentrated Solar Power Generation 91. 8 5. 9 Landfill Gas Power Plant 16. 0 Polysilicon Production 193. 3 Gas Station Chain 3. 7 High-Density Insulation 30. 8 5. 9 Automated Solar PV Cell Production Line 2. 7 Wadiaraba Wind Farm 0, 0% 5, 0% 10, 0% 15, 0% 20, 0% 25, 0% 12

Reasons to Invest in Jordan • Safe and stable economic environment with investor-friendly laws. • Solid and transparent regulatory framework. • EWE Projects benefit from the Investment Law (Custom and Sales Taxes Exemption) • 5% corporate income tax (Development Zones) • Modern and well-connected infrastructure

Investment Incentives – Regional Indicators 14

Regulatory Framework – Main Articles • Independent Power Producer (IPP) Framework • Tendering of RE Projects: Ø Authorizes MEMR to issue public tenders on competitive basis for development RE projects at specific sites in accordance with MEMR’s development plan. Ø Permits direct proposals complying with certain conditions (Complete Phase 1 as 64 tenders have been submitted). 15

Regulatory Framework – Main Articles • Obligation to purchase renewable energy: All Energy Output from RE projects must be purchased pursuant to Power Purchase Agreements (PPA). • Interconnection and Licensing Incentives: National Electric Power Company (NEPCO) to interconnect and assume the costs of interconnection line between the project and the nearest substation. 16

Regulatory Framework – Main Articles • Establishing a Renewable Energy & Energy Efficiency Fund: • provide good financial framework to support energy efficiency programs and renewable energy projects, to help achieve the targets set in the Energy Strategy; 10% renewable and 20% energy savings by 2020. • Funding resources are annual Budget allocations and Foreign donation. 17

New Initiatives Royal Scientific Society, JEDCO and Petra Solar agree to advance Smart Solar Energy plan • The plan, called Let Jordan Shine, will help create a more sustainable future for Jordan and will help Jordan diversify its energy generation sources. • Through their collaborative efforts, Petra Solar's Sun. Wavea Smart Solar systems will be installed on the first 1, 000 homes of the Tafileh Governorate Project, which will consist of 20, 000 homes across the governorate. • This agreement comes within the plans of the government to develop infrastructure and to create renewable energy projects in the governorates. 18

New Initiatives Shams Maan’s Project • The first large-scale private sector renewable energy generating project in Jordan. • Carried out by a consortium comprising Amman-based Kawar Energy and Italian firm Solar Ventures and is estimated to cost up to $400 million. • Once operational, is expected to have an initial generation capacity of 1, 600 to 2, 200 kilowatt hours per year, approximately 1. 2 per cent of the country’s current electricity generation. 19

Rethink market access and invest in new opportunities. Thank you. Take advantage. Turn to Jordan. 20