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Hello everyone

I have been going through both solar opportunities and beside the very
preliminary information that we have I have some thoughts that I would like
to share with you guys to see if you can add some others to make a wider
picture strategically talking

This two solar farms are altogether 58,6 MW, I am not sure if is
Photovoltaic ( PV ) energy or if it the new solar technology that it has
been in the marketfor already 1-2 years . If it is PV then the total
investment would be aprox 220 - 240 mill USD if is solar I will have to
check but I don´t think it would differ much. Taking in to consideration
that we are supposed to be partners with Iberdola renovables in the
development of both projects, I would guess that the IRR will be attractive
depending always in the negotiated PPA with the Public service company of
Colorado ( PSCO ) and Salt river projects ( SRP ). I am a little bit worry
about the low price of Natural Gas for the last 2 years as the PPA for wind
and solar energy are very much correlated with this variable. However I
would bet that the IRR it will not be below 9% unleverage. This projects are
normally leverage in a 70-75%, so it would be very good if Iberdrola deals
with the debt management as the conditions for them will be considerable
better than if we go ourselves to the market. At the end I would be
expecting the projects to give 11 to 12% IRR

Estrategically for our group Transatlantic - Rosemont Seneca it would be a
very important first operation together with IBR, that would give as very
good reputation not only for futures operartions but also for the advisory
activity. Perhaps we could give an opportunity to our partners to make an
offer for the panels ( Atersa or perhaps Acciona ?? ), medium tension
equipment ( Ormazabal ) etc.. increasing even more our incentive fees

In the presentation, it is also mentioned that the total investment in the
project wil be the CAPEX + the development fee. This development fee should
be called Development Cost as we would be paying the 49% of all the cost
involved in the process, I would not pay a premium for it

In terms of the equity that we would have to rise I would guess that it will
be 25% of the project * 230 mill USD = 57,5 mill USD which doesn´t worry me
much, and less if Blackstone is interested in the operation in which he
would be having 50% of the 49%

From the technical side I am not really an specialist so, I am going to let
Pio give you a sense of the tecnology that is meant to be used aswell as the
" Solar Resources and Modules ", please Pio, send as a short summary of the
equipment is mentioned in the presentations

Finally, my opinion is that we should be moving forward with the process of
obtaining more financial information to see if it is interesting enough.
From my point of view, it would be important to have Blackstone with us in
the operation, it would make an enormous difference to help us to make all
the financial models in order to take the final decission

Let me know your thoughts. Best

Abel


Price for PPA

Subsidies

Partner associations . Ormazabal, Atersa. Important to let them make an
offer to obtain their trust. Ormazabal for sure, lets see Atersa or
Acciona??

25 mill USD equity

Debt?

Good opportunity to start working, more in the future

Development costs ??.What % . In what stage are we??. Pay the % of the
development cost?? not a price

Technical issues of the project ( Solar Resource and modules )

Management Contract

Opportunities

Disadvantages

First operation - Important to do it with IBR, gives a lot of reputation for
futures transactions

Might not be that profitable

Ask Acciona who is goung to be the constructor, perhaps them


=2