Progress Report – 25th June 2013

OBJECTIVE

To complete the fund raising for

a community hydro scheme at

Harlaw Reservoir and

‘make it happen’.

Harlaw Hydro LtdAn Industrial and Provident Society, created

for the Benefit of the Community (BenCom)Can sell shares to raise capitalA cooperative society owned by its members The specific purpose of owning and operating

a micro-Hydro scheme Membership is open to individuals, corporate

bodies, voluntary organisations and public sector investors.

Why Should I Invest?Feel Good – a social investment

Green EnergyCommunity Cooperative SocietyFunds for community projects and activities

through BVTFinancial Benefits

4% interest compares favourably with Savings Account and cash ISAs

30% tax relief through the Enterprise Investment Scheme

90% and Rising!

Shareholders / Society Members

100

33

9

36

19

BalernoCurrieJuniper GreenEdinburghOther

Enterprise Investment SchemesThe sale of electricity is an eligible activity for SEIS & EISHM Revenue & Customs have provided ‘Advance Assurance’ that

shares in Harlaw Hydro should qualify for EIS & SEISRules for SEIS tax relief

a minimum investment of £500 for a period of over 3 years an overall limit of £150k – first come first served spend 70% (£105k) of the capital raised before a claim is made

The SEIS process must be completely separate from EIS. i.e. First share issue must be completed and SEIS1 accepted before

subsequent share issues and an EIS1 is submittedRules for EIS tax relief

a minimum investment of £250 for a period of over 3 years Harlaw Hydro to be trading for at least 4 months before a claim is made

NB Harlaw Hydro Limited cannot give guarantees

How SEIS/EIS Works Harlaw Hydro submit an SEIS1 (EIS1) to

HMRC If HMRC approves it will issue forms for

Harlaw Hydro to distribute to tax paying investors to claim their tax relief

Harlaw Hydro will complete the second share issue and submit an EIS1 after 4 months of trading

The 4/6 Rubber Ducks to line upPlanning Permission

Granted October 2012Extraction License

Granted by SEPA October 2012Lease agreement

Heads of terms approved by CEC March 2013

Grid Connection Grid connection proposal received from Scottish Power Networks May 2013

Financial TargetsOver 90% of target achieved

Lower Penstock RepairLining completed in May 2013

What next?Share offer closes - 28th June 2013Prime contractorClerk of WorksTender - preparation in process – to be issued

late July.Select contractor August/SeptemberStart Build – Autumn 2013Generating Electricity - Spring 2014

QuestionsOne to one discussionApplication Forms Do you have skills that would help the

development and implementation?