Investment Opportunities in the Caribbean - 2024

SUSTAINABLE DEVELOPMENT | THE BAHAMAS

THE BAHAMAS

NAME OF PROJECT:

SOLAR FOR DESALINATION

The provider(s) of the investment financing would make an investment to provide for the development and project financing for two solar power and energy storage projects developed by Blue Energy Alliance (“BEA”), to provide the energy requirements for desalination plants in two island nations located in the Caribbean, the Bahamas, and the British Virgin Islands. The desalination plants are owned and operated by Aqua Design (Bahamas) Ltd. and Aqua Design (BVI) Ltd., respectively (“Aqua Design”), each being a wholly owned subsidiary of Veolia Water Technologies & Solutions, a leading global operator of water desalination and treatment plants (“Veolia Water”). Veolia Water will guarantee its subsidiary’s respective purchase of all the electricity generated by the projects on a take-or-pay basis. Over the last several years BEA has worked with Veolia Water to develop a model for marrying renewable energy with clean water on an economical basis. Veolia Water uses a build-own operate model under which it designs and builds the desalination plants and sells desalination services under a longterm water supply contract to its customers. The customers are typically government

owned water authorities (referred to in the industry as “municipal customers”) or resorts. Electricity represents about 40% of the delivered cost of desalinated water from a desalination plant. In island locations, electricity from the grid is mostly, if not exclusively, generated from oil, resulting in high and volatile power costs. BEA and Veolia Water have identified additional islands where Veolia Water has currently operating desalination plants and where there is an opportunity to develop and finance similar projects representing potential capex of over USD $200 million. MODE OF INVESTMENT: Combined development loan of USD $1,300,000 and combined permanent financing of USD $20,800.000. INVESTMENT AMOUNT (USD): For two projects, a combined USD $1,300,000 of development financing in the form of a bridgeloan and approximately USD $20,800,000 of permanent financing (combination of debt and equity), on a project financing basis.

CONTACT PERSON: Mr. Euclid A. Irving | E: eairving@blealliance.com

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