Presentation to Key Stakeholders on

VRA’s 2017 Performance

October 30,2018

Presentation Outline1. Electricity Market Dynamics

2. Operational Performance

3. Financial Performance

4. Generation Capacity and Projects

5. Corporate Social Responsibility

6. Challenges/Opportunities

7. Way Forward

Electricity Market Dynamics

Electricity Demand

Energy Sold in Ghana - Gwh Energy Sold by VRA - GWh

13,486

9,868

14,243

9,519

ENERGY DEMAND HIGHLIGHTS

2016 2017

Percentage of National Energy sold by VRA in 2016 and 2017 was 73% and 67% respectively

Ghana Electricity Demand

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

ENER

GY

IN G

WH

OPERATIONAL YEAR

ANNUAL ENERGY CONSUMED (GWh) BY CLASS OF CUSTOMER2003 -- 2017

SYSTEM USAGE

SONABEL+YOUGA MINE

CIE (NET)

CEB

MINES & OTHERS

ECG

VALCO

VRA 2017 Customer Electricity Demand

Power sold by VRA to its Customers in 2017 was 9,519 GWh. This was 3.54% lower than the 2016 figure of 9,868 GWh

ECG55%

NEDCo13%

EPCL2%

Export Customers3%

Mines12%

Other Bulk Customers9%

Transmission and Substation Use6%

VRA 2017 CUSTOMER DEMAND

VRA 2017 Electricity Supply

Hydro53%

VRA Thermal 25%

Solar0.03%

Puchases & Imports22%

VRA 2017 Electricity Supply

Hydro VRA Thermal Solar Puchases & Imports

VRA Hydro generation was 5,034GWh (53%) in 2017, compared to 4,617GWh (46%) in 2016

Operational Performance

Performance: Hydro Plant availability

0

10

20

30

40

50

60

70

80

90

100

AKOSOMBO

KPONG

94.28

72.52

AKOSOMBO AND KPONG PLANT AVAILABILITY FACTORS (%)

Kpong GS Availability was below the target of 90% because of the Retrofit

Performance – Inflow for Hydro Generation

Performance: Thermal Plant availability

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

36.0

96.96

78.4

Thermal Plant Availability

Plant Availability

TAPCo TT1PP KTPS

Financial Performance

VRA 2017 Financial Highlights

2,5

62

2,6

92

67

5

55

8

39

3

2,6

33

2,4

81

42

9

46

4

39

6

REVENUES COST OF SALES ADMINISTRATIVE COSTS

FINANCIAL EXPENSES* EXCHANGE LOSSES

VRA FINANCIAL HIGHLIGHTS - GHSM

2016 2017

VRA 2017 Financial Highlights

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

2013 2014 2015 2016 2017

Operating Costs and Revenues- GHS/kWh

Average Operating Cost Average Revenues

VRA Financial Summary

2013 2014 2015 2016 2017

414

190 15491

152248

-99

-437

-169

728

52

-996

-1,358 -1,320

-431

VRA PROFITABILITY HIGHLIGHTS- GHSM

Gross Profit Operating Profit Net Profit

Group Financial Performance: 2013 - 2017

2013 2014 2015 2016 2017

361

190 108

(45) (100)

208

(74) (525) (190)

428

62

(800)

(1,309)(1,224)

(606)

GROUP PERFORMANCE -GHS M

Gross Profit Operating Profit Net Profit

Generation Capacity and Projects

Generating Stations: Installed CapacityVRA Plant Installed Capacity

(MW)

Dependable Capacity

(MW)

Current Available Capacity

(MW)AKOSOMBO 1020 900 900

KPONG 160 140 105

TAPCO 330 300 100

TICO 330 320 320

T3 132 120 0

TT1PP 110 100 100

TT2PP 49.5 45 0

TT2PP Exp 36.5 32 0

MRP 80 70 0

KTPP 220 200 200

SOLAR NAVRONGO 2.5 2.5

TOTAL VRA 2470.5 2227 1727.5

BUI 400 360 220

SAPP 560 540 540*

CENIT 110 100 0

KAR POWER 450 430 430

AMERI 250 230 200

CENTRAL REGION SOLAR 20 20

TOTAL GHANA 4260.5 3887 3137.5

Ongoing Projects

Kpong Retrofit Project

Projects Under Development

Renewables▪ 12 MW Solar Project at Kaleo and

Lawra▪ Development of Bongo Solar

Project – 30MW▪ Walewale Solar project – 30MW▪ Feasibility and ESIA Studies on

2 x 75MW wind farms

Thermalo Repowering 132 MW T3

(Discussions with Government ongoing)

o Conversion of 110 MW TT1PP into Combined cycle

o Conversion of 220 MW KTPP into Combined cycle.

Hydro▪ Pwalugu Multi-purpose Dam

Project – 50MW

Nuclearo Supporting GAEC on GoG

Nuclear Programme.

Corporate Social Responsibility

Corporate Social Responsibility

− Annual Contribution of USD

500,000 to the Resettlement Trust

Fund

− Provision of Healthcare for

lakeside communities

− Ada Dredging Project

− Aquatic weed eradication

− Afforestation

Corporate Social Responsibility

VRA PHU staff carrying out Bilharzia testing at

Kebenu Community, Central Tongu

Donation of Lab equipment at Kpone

Community SHS, Tema

Corporate Social Responsibility

Provision of solar-powered mechanized

borehole water system

Provision of Biofil Sanitation facilities at

Kebenu Community

Challenges/Opportunities

Challenges / Opportunities

Challenges• Inadequate regulated

market tariffs

• Liquidity Challenges with Major customers(ECG, GoGand VALCO )

• Excess Generation capacity

Opportunities• Export Market

• New Steel Company and Large Industries under 1D1F

• Integrated Aluminum Project

• Newmont & Ashanti Gold Mine Expansion

Way Forward

OUR STRATEGY

Build, Nurture

& Develop VRA’s

Human Capital

E

Restore

VRA’s Finances I

Sustain VRA’s

Position as Market

Leader

I

Advance

Internal and External Business

Processes

S

A

Ensure

Development in a

Sustainable Manner

R B

Improve

Operational & Project

ImplementationEfficiencies

THE NEW VRA

“Restructuring & Refocusing VRA to

become a Resilient, Sustainable &

Growing Multi-Business Holding

Company”

“Ensure the Short Term Financial

Sustainability of VRA.”

“Ensure VRA’sCompetitiveness

by Improving Internal Business & Organisational Processes, O&M

and CAPEXExcellence

“Extending our Environmental Foot Print by Investing in Renewables & Other

Forms of Clean Energy.”

“ Build and Develop

VRA’sHuman Capital”

VRA

Beyond

Aid/ GoG

Support)

m

Leadershi

p in

Climate

Change

Agenda

Our

Business

Is About

People

Meeting the

needs of the

New Energy

Consumer

VRA BEYOND AID

VRA BEYOND AID

Thank You