Ali Saleh Al-Barrak, President and CEO, Saudi Electricity Company's presentation at the 2010 U.S.-Saudi Business Opportunities Forum in Chicago, IL.

1. BUSINESS OPPORUNITIES IN SAUDI POWER SECTOR US-Saudi BUSINESS OPPORTUNITIES FORUM CHICAGO April 28-29, 2010 Ali Albarrak President &C E O Saudi Electricity Company

3. Late 70`S consolidated into four major power co (SCECO).

4. The government involved as major shareholder .

5. Mid 2000 All operating entities merged in one company Saudi Electricity Company (SEC).

7. Largest electric entity in the region in terms of capacity ,market capital and shareholder’s equity.

8. Owns 85% generation and 100% transmission , distribution and retail .

9. Total assets over 50 billion US$.

10. Annual revenues 6 Billion US$ .

11. Annual growth 6%.

12. 74% directly owned by the Government.SAUDI ELECTRICITY COMPANY

13. Scope of Operations

15. Operate in a very supportive environment .

16. High credit rating (AA~ ).

17. Invest in productive assets.

18. Reliable and secured fuel supply.

19. government support.SEC credit strength

20. GROWTH (2000 – 2009)

21. projects Under Execution

22. Load forecast (gwatts)

23. No OF CUSTOMERS (millions)

24. Generation Capacity generation capacity installed should meet the expected 7% increase in peak demand and a reserve margin. Generation capacity (GW)

26. Extremely sharp daily and yearly load curve (air-conditioning).

27. Replacement of inefficient old generating units.

28. High capital investment for expansion.

30. Encourage the developers for more IPP.

31. Introduce the smart grid transmission system.

32. Promote energy conservation and load management.

36. 30 – 40 % of Future generation will be IPP(BOO).

37. SEC partnership will be 10%-50% in the equity.

38. Long term power purchase agreements (20years) With reasonable return on investment .

40. Helping To Re-Direct Available Funds To T&D (Monopoly Activities)

41. Reallocation Expenditure From CAPEX To OPEX.

43. IPCOD APRIL 2012

45. IPCOD APRIL 2013

47. SAUDI NATIONAL GRID by 2018

51. As an EPC contractor .

52. Local manufacturing .

53. Participate in IPP projects .

54. Opportunity in consultation and engineering.

56. Power projects needs 80-90 billion US$ as capital investments for the next 10 years .

57. Private investors have the opportunity to take 30-40% of the generation projects as a BOO projects.

58. US companies have the opportunity to take part both in EPC and IPP.

59. There are oportunities in Consultation , Engineering and Services in power sector. Conclusion