wb g-project in ethiopia

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ABB Switzerland Ltd Communication Networks WB G-Project in Ethiopia General Manager Global Sales – Dipl. Ing. Yves Peeters – 2015.11.27

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ABB Switzerland LtdCommunication NetworksWB G-Project in Ethiopia

General Manager Global Sales – Dipl. Ing. Yves Peeters – 2015.11.27

ABB Switzerland LtdOverview

§ ABB Switzerland§ Headquarter: Baden, Switzerland

Revenues approx. 3.5 bUSD§ 6’700 staff in 12 locations

§ Focus on :§ Overall solutions for Utilities and

Industries§ Power Systems and Products§ Automation Products

§ ABB Group*§ Headquarter Zürich, Switzerland§ Revenues approx. 40 bUSD§ 140’000 staff in 65 countries

* please refer to ABB’s financial reports for accurate data

© ABB GroupDecember 3, 2015 | Slide 2

Ethiopia WB G-ContractGeography

| Slide 3© ABB

Ethiopia WB G-ContractInvestment Plans

| Slide 4© ABBSource: ABB Internal Estimates

§ Grand Ethiopian Renaissance Dams(GERD), also called Millenium Dam

§ 6'000 MW planned

§ 4.8 bUSD

§ as of July 2015, the dam is > 50%complete

§ Expansion of national railway network

§ Planned additional 2’000 km ofnational railway network till end of2015

§ 1.7 bUSD

Ethiopia WB G-ContractLarge Investment Projects On-going

| Slide 5

Ethiopia WB G-Contract (TSRUP)Transmission Substations Rehabilitation and Upgrading Project

| Slide 6© ABB

§ FO Network for 66Substations

§ Upgrading andIntegration ofexisting Stationss(some ABB)

§ Implementation ofa country-wideproject

§ Interlinks

Power GridThe role of Communications – critical parameters

§ Reliability

§ Availability

§ Security

§ Quality of Service

… loss of Visibility andControl

© ABB GroupDecember 3, 2015 | Slide 7

Ethiopia G-ContractTender Process

| Slide 8© ABB Group

NO-GO & Re-Tender (w/o Life line OPGW)

2012 TenderSubmittal

Tendering

1st WB Tender : FO + Equipment

Buy

Oct 2014Feb 2014

Pre-Tender

CancellationAECOM

Marketing the right Solution

Offer Set-Up – Partnerships& Procurement

Pricing

Re-Tender G-ContractEDF Clarifications &

Site Survey

ClarificationsEvaluation

NegotiationsCEO Contract Signing

Kick-Off

Board Approval

Ethiopia G-ContractPrice Opening & ABB’s Differentiation

| Slide 9© ABB

• Getting the right Capture Team together

under a strong leadership

• Aiming at the right Target Price

• Set-Up with local partners and Permanent

Establishment

• Negotiation with major sub-suppliers

• Differentiate versus Competitors:• Positioning as a dedicated

transmission grid commmunicationsystems provider

• Power Grid Protection &Integration

• Experience & Reputation in thecountry

Foreign Supplyfrom ABB & 3rd party vendors

Ethiopia G-ContractScope / 18 Months

| Slide 10© ABB

FOX 615FOX 615

FOX 515 upgradeFOX 515 upgrade

NMSFOXMAN-UN

NMSFOXMAN-UN

Optical BoostersOptical Boosters

PABX SV9100PABX SV9100

PABX UpgradePABX Upgrade

PhonesPhones

CabinetsE40D/MDFCabinets

E40D/MDF

Spare PartsSpare Parts

FATFATDesignDesign

Power SuppliesPower Supplies

GPS ClocksGPS Clocks

Foreign / local Services

On site TrainingOn site Training

Local Supply

Drivers/Maint.Drivers/Maint.LaboratoryLaboratory

ABB

ABB

ABB

IPG

NEC

NEC

NEC

A.T.

ABB

MB

EES EES

EES

ABB

ABBVar.

Jan ‘15

Kick-Off FAT Site SAT

Aug Aug ‘16Oct

ABB

§ GREAT to contribute to Africa’s Infrastructure development using ABB’s reliable products,systems and long standing global engineering experience

§ Particular Challenges:

§ Overall delay (Pro-active Project Management)

§ Know-how transfer (Staff retention)

§ Logistics of country-wide deployment (Health & Safety of staff)

§ Collaboration with local partners (Working culture)

§ Opportunity: long term development and chances for future expansion of power grid andrailway infrastructure, with experienced local partners

Ethiopia WB G-ContractSummary

| Slide 11

§ This presentation does not imply and expressly disclaims any endorsement of orconcurrence with any information, estimates, forecasts, opinions, conclusions orrecommendations made. It assumes no liability for the accuracy of any data nor does itoblige any update.

§ The information in the presentation is furnished for informational use only and mayinclude inaccuracies or typographical errors. Changes may be made at any time withoutnotice.

§ It disclaims all liability, warranties and conditions with regard to the information containedin it.

Ethiopia WB G-ContractDisclaimer

| Slide 12