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WӒRTSILӒ CORPORATION

Tuotteita ja palveluita kehittyville markkinoille

BEAM-ohjelman avausseminaari, 28.4. 2015

Tuomas Haapakoski

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POWER PLANTS

SHIP POWER SERVICES

THIS IS WARTSILA

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THIS IS WӒRTSILӒ

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PRODUCTION AND SERVICES GLOBALLY

SERVICES NETWORK

PRODUCTION FACILITIES (FULLY OWNED)

PRODUCTION FACILITIES (JOINT VENTURES)

PRODUCTION FACILITIES (ONGOING FOOTPRINT INITIATIVES)

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17,700 70 200PROFESSIONALS COUNTRIES LOCATIONS

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POWER PLANTS

Our flexible technology provides superior value

and environmental benefits, contributing to

more efficient and sustainable power systems

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POWER PLANTS OFFERING

• Flexible baseload power plants

• Capacity for grid stability, peaking, load following and

integrating balancing wind and solar energy

• Multi-fuel solutions enabling use of any gas or liquid fuels

• LNG terminals and distribution systems

• Project development and EPC capability

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UTILITIES IPP’S INDUSTRIAL

CUSTOMERS

Organisations providing

electricity and / or heat

to power markets or end

users.

Financial organisations

investing in power

plants to sell power to

utilities.

Industrial businesses

with captive power

plants.

OUR CUSTOMER SEGMENTS

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AFRICA IS AN IMPORTANT MARKET

Wärtsilä’s presence in Africa

since 1961 - 5310MW of power

plant capacity from 480 projects

in 43 countries

Morocco

193MW, 9 projectsAlgeria

144MW,

34 projects

Libya

109MW,

30 projectsEgypt

239MW,

27 projects

Eritrea

30MW,

4 projects

Djibouti

156MW,

19 projects

Ethiopia

125MW,

8 projects

Sudan

439MW,

23 projects

Somalia

12MW,

1 projects

Kenya

283MW,

11 projects

Chad

100MW,

9 projects

Niger

48MW,

11 projects

Mauritania

177MW,

17 projects

Mali

58MW,

8 projects

Nigeria

374MW,

25 projects

Angola

48MW,

6 projects

Mozambique

18MW,

3 projects

Madagascar

103MW,

13 projects

Seychelles

89MW,

8 projects

Reunion

7MW,

2 projects

Comoros

21MW,

6 projects

Mayotte

53MW,

3 projects

Burundi

2MW,

1 project

Rwanda

47MW,

2 projects

Uganda

5MW,

1 project

C.Africa R.

6MW,

1 project

Congo

87MW,

17 projects

Gabon

152MW,

33 projects

Cameroon

416MW,

12 projects

Senegal

325MW,

17 projects

Gambia

15MW,

2 projects

Cape Verde

29MW,

3 projects

Guinea

123MW,

9 projects

Sierra Leone

45MW,

4 projects

Liberia

96MW,

6 projects

Burkina Faso

76MW,

20 projects

Cote d’lvoire

56MW,

40 projects

Ghana

41MW,

2 projectsBenin

13MW,

10 projects

Togo

126MW,

5 projects

Equatorial

Guinea

24MW, 1 project

South

Africa

175MW

1 project

Zambia

48MW

1 project

Mauritius

252MW,

8 projects

Tanzania

272MW,

11 projects

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DEVELOPMENT BANKS

Multilateral Development Banks (MDB) – our focus today

Established by a group governments

Operate either globally or within a dedicated geographical area

Financing for both private and public sector

World Bank, African Development Bank, Asian Development Bank, European Bank for

Reconstruction and Development, Inter-American Development Bank, Islamic

Development Bank, Nordic Development Bank, European Investment Bank....

There are several other national and regional development banks& funds

Financial institutions set up one or several governments to promote their

development policy or other objectives

For example Development Finance Institutions (DFI) who focus on private sector

investments in developing countries: Finnfund, Swedfund, Norfund, IFU (Denmark),

AFD/PROPARCO (France), KFW/DEG (Germany), FMO (The Netherlands), OPIC (US)...

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MDB – PUBLIC SECTOR

Loans/Grants to Governments (e.g. World Bank IBRD & IDA)

Both technical assistance grants (for consultancy) and loans for investments (procurement and capital expenditure projects)

Financing terms depend on the recipient country – poorer countries have softer terms.

Recipient governments propose projects to be financed by a MDB

Procurement and tendering is arranged by the project owner which is typically a ministry or a government owned entity

Competitive bidding process under supervision and in accordance with procurement guidelines of the MDB

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TYPICAL MDB PROJECT CYCLE

TENDER!

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Suppliers must influence the project owner and the consultants appointed by the MDB early on in the process to ensure eligibility of their solution

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MDB – PRIVATE SECTOR

Financing for Private Sector Projects (e.g. World Bank IFC)

Companies or project sponsors apply for loans, equity and

technical assistance

Financing provided on “market terms” to stimulate private sector

investment in developing countries

Need sound business plan and documentation, credible

management team, sufficient equity

Often co-financing from banks and/or other development banks

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We have been rather successful on the private sector side with

both MDB’s as well as certain bilateral development banks in the

Independent Power Producer segment

20+ years of cooperation with World Bank/ IFC

We have had some success with public sector tenders financed

by World Bank, African Development Bank and Islamic

Development Bank mainly

We also have experience of being too late in the game and

technology being closed in the tender specification

Major delays in procurement stage are quite common

WÄRTSILÄ EXPERIENCE WITH MDBS

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WARTSILA’S CO-OPERATION WITH THE IFC

Co-operation started in the early 1990s when Wärtsilä started its

independent power plant business by offering decentralized power

solutions for small grids and isolated locations which are typical in many

developing countries

The IFC recognised that strong Wartsila benefit was our ability to deliver

turn key projects in difficult environments

The IFC has high standards for structuring, documentation and

environmental and social impacts which makes the process longer

compared to local financiers but on the other hand bring predictability

and stability to the project

IFC financing provides an implicit political risk guarantee, reducing risk of

sponsors

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