www vra com PRESENTATION TO KEY STAKEHOLDERS AUGUST

www. vra. com PRESENTATION TO KEY STAKEHOLDERS AUGUST 28, 2013 1

www. vra. com Executive Summary • 2012 was a financially challenging year – Revenue of GHS 1. 75 billion including Govt subsidy of GHS 360 million – Operational loss of GHS 82 million – Net loss of GHS 90 million • Fair performance operationally with gradual improvement in thermal performance • Hydro availability of 96% • Thermal simple cycle availability of 82% • Steam became available in 4 th quarter 2

www. vra. com Executive Summary • Erratic gas supply and eventual interruption led to drastic increase in fuel cost – Crude oil imports rose to USD 582 million from 258 in 2011 • No increase in tariff to account for higher fuel cost and depreciated currency • VRA made entry into renewables with start of construction of 2. 5 MW Solar Plant • Two (2) projects ongoing » 220 MW Kpone Thermal Plant » 110 MW T 2 Project 3

www. vra. com PERFORMANCE 4

www. vra. com Availability of Hydro Plants 5

www. vra. com THERMAL PLANT AVAILABILITY 6

www. vra. com FINANCIAL SUMMARY 7

www. vra. com ELECTRICITY DEMAND SUPPLY 8

www. vra. com POWER SALES • Total energy sold to VRA’s customers in 2012 was 11, 172 GWh. • ECG, the largest customer of VRA consumed about 7, 002 GWh, representing 62. 67% of the total energy sold. • Total energy supplied to VRA’s customers for 2012 increased from 10, 024 GWh to 11, 172 GWh, an increase of about 11. 45%. 9

GHANA ENERGY SALES www. vra. com ANNUAL ENERGY CONSUMED (GWh) BY CLASS OF CUSTOMER 2002 -- 2012 14, 000 12, 000 10, 000 ENERGY IN GWh SYSTEM USAGE SONABEL+YOUGA MINE 8, 000 CIE (NET) CEB 6, 000 MINES & OTHERS ECG 4, 000 VALCO 2, 000 0 2002 2003 2004 2005 2006 2007 2008 OPERATIONAL YEAR 2009 2010 2011 2012 10

ANNUAL DEMAND www. vra. com ANNUAL MAXIMUM DEMAND (MW) BY CLASS OF CUSTOMER (2002 - 2012) 2, 500 DEMAND IN MW 2, 000 1, 500 SONABEL+YOUGA MINE CIE CEB 1, 000 MINES & OTHERS ECG 500 VALCO 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 OPERATIONAL YEAR 1. The reduction in 1999 demand was due to domestic load curtailment. Also there was load curtailment in 2006 and 2007 2. The maximum demand for 2002 is higher than that of 2003 because valco's load was curtailed. 3. Supply to SONABEL (border towns Po and Leo) commenced in 2003 but is insignificant and therefore not visible on the chart. Supply to Sonabel in 2009 includes Youga Mine 11

www. vra. com 2012 FINANCIALS 12

www. vra. com 2012 FINANCIAL HIGHLIGHTS • Energy Sales increased by 58% (GH¢ 638. 83 million to GH¢ 1, 749. 39 million) compared with previous year’s sales of GH¢ 1, 110. 56 million • Cost of Sales increased by 105% (GH¢ 849. 90 million) from GH¢ 806. 68 million in 2012 to GH¢ 1, 656. 58 million in 2012. • Administrative Costs increased by GH¢ 26. 83 million (13%) to GH¢ 238. 80 million (2011: GH¢ 211. 97 million) • Operating Loss of GH¢ 82. 22 million compared with a profit of GH¢ 140. 45 million in 2011. 13

www. vra. com CAPACITY ADDITIONS 14

www. vra. com GENERATING STATIONS (INSTALLED CAPACITY) PLANT Total (MW) Akosombo Hydro Generating Station (6 x 170 MW units) Kpong Hydro Generating Station (4 x 40 MW units) Bui Hydro Electric Plant (Currently running 1 Unit) 1, 020 MW 160 MW 133 MW Takoradi Thermal Plant Station (TAPCO) (GT) 2 x 110 MW (CCT)1 x 110 MW Takoradi Thermal International Company (TICO) (GT) 2 x 110 MW 220 MW T 3 132 MW TT 2 PP 49. 50 MW Mines Reserve Plant 80 MW Tema 1 Thermal Plant 110 MW Solar Sunon Asogli Power Plant (SAPL) 2 MW CENIT Power Plant Total National Installed Capacity IPP 200 MW IPP 110 MW 15 2546. 50 MW 15

GROWTH IN ELECTRICITY DEMAND HAS ACCELERATED IN RECENT YEARS Thousands www. vra. com 12, 000 CAGR 2006 – 2010: 6% 10, 000 CAGR 2008 – 2010: 10% Energy (GWh) 8, 000 6, 000 4, 000 2, 000 0 2005 2006 2007 2008 2009 2010 2011 2012 16

www. vra. com POWER DEMAND & SUPPLY 17 17

www. vra. com COMMITTED GENERATION RESOURCES (2012 -2015) List of Committed Generation Resources Committed Projects Installed Dependable Capacity (MW) Timing Fuel Type Bui Hydro Power Project - BPA 400 340 Q 3. 2013 Water Takoradi 3 (T 3) - VRA/Go. G (Phase 1) 132 120 Q 4. 2012 LCO/Gas/Diesel Kpone Thermal Power Plant (KTPP) - VRA/Go. G 220 200 Q 1. 2015 Gas/Diesel CENIT Power Plant - IPP 110 100 Q 4. 2012 LCO/Gas/Diesel Takoradi 2 (T 2) Expansion- VRA/TAQA 110 100 Q 3. 2015 Steam VRA Solar Power Project 10 0 2012 & 2013 Solar VRA Wind Power Project 150 0 2014 & 2015 Wind 1, 132 860 Total 18

www. vra. com CANDIDATE GENERATION RESOURCES (2012 -2021) Candidate Projects Installed Capacity (MW) Dependable Capacity (MW) Timing Fuel Type CENIT/TT 1 PP Expansion - VRA/IPP 110 100 Q 1. 2016 Steam Takoradi 3 (T 3) - VRA/Go. G (Phase 2) 132 120 Q 1. 2016 LCO/Gas/Diesel Pwalugu /Juale Hydro Projects 125 Q 1. 2020 Water KTPP Combined Cycle Conversion 110 Q 1. 2016 Steam Domunli Greenfield Project 450 Q 1. 2017 LCO/Gas WAPP/Sithe/VRA (Domunli) Project 450 Q 1. 2018 LCO/Gas 1, 377 1, 355 Total Candidate 19

www. vra. com CHALLENGES 20

www. vra. com POWER DEMAND & SUPPLY 21 21

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www. vra. com NIGERIA GAS SUPPLY • The average daily gas supply from Jan - August 2012 was about 61 MMscf/day. • There had been no gas supply since the accidental rupturing of the gas pipeline in late August 2012. • Gas supply resumed early August, 2013. • Discussions are on-going for additional gas of 30 MMscf/day from Nigeria. In addition to this VRA is also pursuing the use of LNG as the long term solution to gas supply challenges. • WAPCO projects more investments in Nigeria gas sector, resulting in gradual supply build-up.

www. vra. com GHANA’S NATURAL GAS NEED PER DAY FOR THE NEXT 10 YEARS Ghana will need between 230 MMscf/day and 850 MMscf/day of Natural Gas (for Power & Non-Power) in the next 10 years 900 800 Ghana has had a deficit of over 100 MMscf/day since 2011, after supply from WAGP Volume of Gas (MMscf/Day) 700 600 500 400 Deficit 300 200 WAGP supply: 123 - 153 MMscfd Jubilee supply: 60 - 113 MMscfd Ghana Demand CAGR (2011 -2020): 6. 2% 100 0 2011 2012 2013 2014 Total Ghana Demand 2015 Year 2016 Total Supply 2017 VRA Demand 2018 2019 2020 24

www. vra. com GAS SUPPLY FROM GHANA • Jubilee gas production has started and 20 MMscf/day is being used on the FPSO. • The remainder of the gas is being re-injected. • No gas infrastructure in place to deliver gas to shore. • Gas delivery to shore is expected in 2014, with pipeline construction from the FPSO to Domunli and then to the Takoradi Thermal Power Plants • Jubilee gas available for consumption is expected to peak at about 120 MMscf/day. • New gas fields discoveries expected to increase gas production.

www. vra. com LIQUEFIED NATURAL GAS (LNG PROJECT) VRA is exploring the supply of LNG that then gets regasified on a Floating Storage Re-Gasification Unit (FSRU) to supply high pressure gas directly into a consumer pipeline

www. vra. com SUMMARY • 2012 was a financially challenging year even though we registered continued improvement in thermal operations – No tariff increase to cover high crude oil imports • Stable supply of gas remains highest priority. • Regulatory framework to promote sustainable capacity additions also critical. • Ghana’s geographic position and political and economic stability position must be properly leveraged.

www. vra. com Thank You 28