Environmental Study

ENVIRONMENTAL IMPACT STUDY FOR SUNLIGHT ENTERPRISES

The next study was made for Sunlight Energy Enterprises and it was conducted to meet the possible demands of the government in the approval process, it is expected that investment guarantees should be extended to ensure fair and reciprocal investment gain is achieved. The simple truth is that without an environmental study we could never expect approval.

After analyzing carefully the economic circumstances of the collapse of the global economy in 2008 we had formulated this analysis. We must be aware of the interventionist policies of the government of Ecuador and the lack of reliable laws, we must also take in consideration the lack of an independent Supreme Court that it is practically incapable of taking decisions in accordance with the law, but rather to the political whim of its members. At the same time extremely high tariffs (up to 40%) makes solar and wind systems extremely expensive and very few if any incentives are offered by the government of Ecuador.

All projects must be approved before presenting the results of the financial and economic evaluation to establish an analysis to indicate whether the projects have a high probability of being economically and financially feasible ; Apart from being able to consider the serious impacts on environmental resources in the area also to avoid causing large losses in the economic welfare of the communities in the province and all citizens living in the vicinity of the geothermal Chachimbiro complex where several rivers are born. We estimate that our company will build and operate a unique hybrid power plant in the world could gain around 97 million in net present value terms annually.

This figure is the sum of the profits of each year, which are discounted using an interest rate which reflects potential income from other investments and the cost of credit to indicate an investment is feasible.

We translate the financial value to an economic figure for a broader approach, considering the costs and benefits for Ecuador as a whole and not just for the investor. This conversion makes the analysis excluding any taxes or subsidies, which are artificial transfer mechanisms introduced by the State, using shadow prices, which correct deficiencies in the structure of markets for inputs and outputs of the project. Finally external shocks, defined as those forgone by the company financially, but clearly assignable to activities included.

The economic net present value of the project was estimated at 92 million: 40 million for geothermal production, 15 million for solar production, 22 million for wind energy production. This last result masks the fact that the negative impacts of the project are concentrated in an environment of global importance for conservation, and social sector traditionally abandoned and disadvantaged.

There is a need to establish very clearly the demarcation of the park Cayapas- Cotacachi to avoid damage either in deforestation due to the creation of new access roads near their limits, and the possibility that migratory birds could affect some areas. If biodiversity is affected choco Ecuador, it is likely that impacts will spread to other ecosystems, as its geographical location, serves as a bridge for the exchange of fauna between the Colombian and Ecuadorian region choco and with them the rest South America

Complex Cotacachi Cayapas- shaped central part is one of the regions of the planet with greater endemism and biodiversity. Due to lack of reliable data, this study does not estimate a monetary value for any losses in biodiversity, and calculates the additional costs of monitoring and management of protected forest. However, as an integral support to remedy nature Sunlight Energy Enterprises Inc , proposes voluntarily make planting five million trees in the next five years throughout the area comprising the Chachimbiro geothermal complex. Creating a positive both biodiversity and environmental impact. We stuck to an estimated gross cost of carbon dioxide emissions and the cost of a rescue attempt of birds and animals that could be affected by the project. The first value is 13 million, while the second was estimated 24millones. Apart from the environmental impacts would be the socio-cultural communities between Urcuqui and Pablo Arenas.

These communities must be given opportunities to work on projects and therefore training and employment opportunities should be offered. If the project is approved by the national government and local governments, these communities shall not be isolated and we should work hard so that we can minimize any damage to natural resources. Rather, we should strive to provide work in building roads and work that will serve as a positive impact in their communities, working together and in consultation with leaders of these communities. Besides that the company will voluntarily make donations to schools, colleges, universities in the province to encourage education and social welfare. Considering the case, it is not possible to reduce to a monetary figure the effects on common history and traditions that would be affected by the works and opening of access roads. Therefore, this analysis is intended only to glimpse the uses that communities make of natural resources and the increase in the cost of living that involves the comprehensive development of the Province. In the case of the area of ​​the city Yachay proposal we firmly believe that the government should provide compensation to the communities of El Puente, San Antonio, Tapiapamba, Las Mercedes, Tola and San Vicente. According to our calculations, these communities will suffer losses that could reach 56.2 million. This is a clear case in which an economically efficient investment will not be fair. The analysis in a projection of similar situations in other countries it should be noted that the benefits of creating a knowledge city and an industrial area would receive Yachay private company, the lending banks and the government , while the costs communities would bear the Province of Imbabura

It is recommended that the municipalities of the Province obtain an independent study of the true economic impact that will be caused by the creation of a city that it is certainly much more than a university and industrial complex, there is no question that tourism will also be affected and especially here requires at least five years in the medium-term and probably about twenty years of development that will require constant subsidies from the government that may cause the abandonment of the other cities. It is therefore important that there is a contract or formal commitment of the government with Sunlight Energy Enterprises  of the distribution of costs and benefits.

In theory, this non- equitable distribution of costs and benefits can be corrected through compensation to institutions. In practice, compensation and environmental measures are often insufficient in the context of major infrastructure projects. Environmental Impact Studies that were conducted by Sunlight Enterprises Inc. only with the opportunity to present the project to create a hybrid plant geothermal, solar, and hydro and wind in the Province of Imbabura did not consider more than the creation of a small university complex with the planning and investment of Universities like Oxford, MIT. UVA and George Mason. We never considered such a huge complex of University City, City of Tourism and Industrial city as it is being proposed with Yachay. Therefore, we do suggest that spending on social compensation and environmental protection will reduce the impacts that we have calculated in this study, which, in any case, are only estimates of partial damage. However, following the preliminary study and a computerized calculation it is estimated that if Sunlight Energy Enterprises participates in creating a production of at least 200MW hydro and wind, the Province may receive at least 87 million in profits. Yachay on the other hand in the current form since it requires subsidies from the central government and tax incentives to the Corean Company it will be pretty costly to the Province. We have a projection that indicates that the losses to expect in loss of businesses and damages to the economy of the Province will be around 95 million.  In other words the construction of a power plant with the capacity and design and has been patented by Sunlight Energy Enterprises becomes important as their contribution payments in local and provincial taxes will be significant to compensate and mitigate the impacts of Yachay .

Finally, we must recognize that any work of this magnitude brings impacts on the environment and culture that cannot be avoided or mitigated. It is up to the Ecuadorian society, mainly citizens of Imbabura to decide if the benefits of energy for domestic and export consumption are important enough to justify these sacrifices. Our study was conducted considering the proposed plant to the government of Ecuador. Our estimates do not consider the environmental impact of college Yachay industrial Yachay . tourist Yachay

PS. We have withheld some figures and certain full details. I left some figures for illustration and that this study is not used for other purposes.

Computer analysis: Economic projection:

Government Income Population Nature Company Bank loss

Energy sales (5% sales) 27 , 739

Taxes construction investment Generation Costs March 07 -8.883

Sales and administrative expenses -906

Tax (30 % income) 75 084 Increase in unrealized loss monitoring costs

Removing forest cover -24.896

Modifications aquatic fauna , wildlife -1.335

Fragile areas (biodiversity, loss not

Climatological factors ) quantified

Changes -56.202 living conditions

Changes indigenous culture , mixed culture , unquantified loss

Changes in health and education -

Total Impact on Sector 95 million lost Rates comunidades-B/.56 , 202 -B / . P 26.23

Possible tax payments locales.87, 957 Gross Value

DISTRIBUTION OF INCOME FOR SEE INC

CONSTANT PRICES AND CASH DISCOUNTED )

Legal environment

• Adoption of Local Government and central Ecuador is in the process.

• Permits: All necessary permits will be obtained as required under

• Sunlight will comply with all environmental work requirements, and all other regulations of the country.

• Agreements: A special agreement with the central government of Ecuador regarding the guarantee of investment must be part of the same agreement to invest in Ecuador. A minimum of thirty -year warranty on the ownership and management of the Company or otherwise compensated.

• Requirements zoning and construction laws. Sunlight plans to build using the highest industry standards in both construction and in all buildings.

• Insurance Coverage. It is important to get insurance in all aspects of the construction

• Trademarks, copyrights, or patents (pending, existing, or Purchased ) A full list of patents, Copyright and Trademarks will be documented.

The Future:

When we initiated the plan in 2007 we analyzed all the circumstances. The biggest challenger is actually not to be able to count with the scientific personnel that is needed to run an enterprise of such magnitude. Therefore we had laid out what the ideal University should be. It is the intention of Sunlight Energy Enterprises to devote at least 15% of earning to the development of a scientific University unlike no other. The great difference will be that every single student will be required to “be hands on” in all the projects. Every year students will be required to participate in helping build, repair, and work on all the projects of the University and we are hopeful that we could engage American Universities in these endeavor.

We are looking into the future and as such we have designed several building, structures and sevral inventions to improve and build better structures in architecture, and in our development: