> GREENFIELD PROJECTS

> ACQUISITIONS

As Conduit looks to the independent power industry in Latin America, it expects that a significant emphasis will be placed on greenfield projects -- the actual development and construction of electric power plants.

These capital-intensive projects require that principal construction costs be incurred and cash reserves for debt service and maintenance be secured before cash distributions can be made. Typically, this means that investors do not see dividends until a year or so after commercial operation has commenced.

Conduit pursues greenfield construction projects in Latin America in accordance with the project finance models for independent power plants. Additionally, in the case of some greenfield projects, Power Purchase Agreements ("PPAs") are entered to substantially reduce the variability and currency risk of their revenue streams. During the last 10 years, many projects in Latin America have successfully negotiated financeable, high quality PPAs for greenfield projects.

Development Equity
Conduit will provide development equity - an investment before full financial closing has been achieved -- to select greenfield projects to ensure their overall financeability. These investments are also critical to Conduit's long-term interests in establishing relationships with quality developers and maintaining a pipeline of future opportunities.

The amounts invested are significantly less than in a typical project opportunity. Given the higher risk involved, per-transaction amounts are determined by examining the obstacles that remain to closing the project financing.

Greenfield projects present significant investment upside for several reasons:

Project Benefits

• Greater controls in market selection, design specifications and operational goals result in better performance
• Investments ensures portfolio diversification
• IRR performance for many projects well in excess of 20% -- among the highest equity returns in the Latin Power industry

Typical Greenfield Project Profile:

Investment:	$20MM-$200MM
Ownership:	51%-90%
Co-owners:	Local Partners
Debt Borrowed:	60%-80%
Plant Capacity:	50MW-500MW
Energy Source:	Hydroelectric
Power Purchasers:	Industrial & Municipal Under Various Contracts