MARITIME LINK PROJECT. Supplier Information Session

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MARITIME LINK PROJECT Supplier Information Session

Safety Moment

Health & Safety At Emera Newfoundland & Labrador, the occupational health and safety of our employees, contractors, suppliers and the general public is more important than any business interest. Contractors and suppliers will be held to the applicable Occupational Health & Safety Standards that are consistent with Emera s and regulatory bodies both provincially and federally. Contractors and suppliers will be required to have a Safety Management System and specific Health & Safety Plan approved in writing from ENL.

Health & Safety Emera Newfoundland & Labrador, as well as its Contractors and Suppliers: Provide a safe and healthy working environment Consider all occupational injuries and illnesses preventable Ensure that health and safety is an integral part of every job task Meet or exceed applicable safety legislation and manufacturer s recommendations Promote a safety culture with full management commitment Proactively address health and safety with a Safety Plan for the work Ensure worker safety knowledge through education & training Report all safety incidents and take action(s) to prevent re-occurrence Maintain the highest standards in health and safety program management

Project Overview and Update

Valuable Regional Energy Cooperation Nova Scotia and Newfoundland and Labrador electrical connected for the first time. Maritime Link capacity of over 4+ TWh per year or 40% of NS needs if fully utilized to aid emission reductions. Connecting to over 6200 MW and 40+ TWh of renewable energy in NL; tremendous optionality. Strong interconnections improve reliability and enable regional energy exchange, dispatch improvements. Nova Scotia will have the fixed block and first access to the excess energy exported; all clean renewable energy to displace fossil fuel. Designed for 5 decades of highly reliable service, financed at record low interest rates for customers. Maritime Link - Reshaping the regional electricity grid for improved reliability and decades of energy from local, renewable resources. 6

$1.58 B infrastructure development. Part of $8.5 B between the Nalcors Lower Churchill Project and the Maritime Link. Connecting to the NL energy warehouse. Maritime Link Project 500 MW +/-200 kv 170 km HVdc subsea cable 400 + km of overland transmission 230kVac, +/-200 Kvdc, and Grounding lines Divided into three distinct areas: Western Newfoundland Cabot Strait Cape Breton, Nova Scotia

Cleaner Energy future Federal Emission Reduction Targets NS Provincial Renewable Energy Targets

Staging for a $1.5B Project Environmental approvals June 2013. EPP approvals Jan 2014. NS UARB final Approval Nov 2013. FLG and $1.3B financing at 3.85% Apr 2014. Diversity Plan focuses on Designated Groups Women, Aboriginal Persons, Persons with Disabilities and Visible Minorities Economic Benefits Plan focused on business access for local suppliers, Employment and hiring priorities for NS and NL residents. Labour certainty through 2017 Three Collective Agreements creating labour certainty throughout construction: Socio-Economic Agreements with NS Mi kmaq and the Qalipu in Newfoundland and Labrador

International Supply Chain

Major Activity Update Right-of-way clearing complete on 4 of the 5 lines. Site preparation is complete and foundations for converters and substations are set to begin. HDD Pads and Transition compounds well underway. Access roads to Grounding facilities nearing completion. Transmission towers have been designed and type tested and deliveries have begun. First order of steel towers delivered through Port of Halifax 11

Major Activity Update-cont. Converter component design is advancing, manufacturing of IGBT s and major components has begun. 85 km of conductor for the first subsea cable is complete. Fiber optics for temperature sensing subsea cable nearing completion. HDD profiles designed and work scheduled for April 2016. Conductor manufacturing and delivery completed. 12

Our Local Contractors at Work 600,000 cubic meters of soil, rock and gravel being excavated in both provinces Granite Canal construction camp. DORA Construction Civil preparation of converter stations (photo courtesy of Stantec Engineering). JonelJim and Marine Contracting 1800 hectares of tree clearing along right of ways and at construction sites (MacLean s Forestry and Majors Logging) 100 person camp at Granite Canal is operational 13

2016-2017 650 transmission towers will be erected and over 1000 km of stringing. Buildings and substations will be constructed. HDD tunnels will be completed in Cape Ray and Point Aconi. Subsea cables will be delivered on two separate vessels to start installation in May 17 with burial and testing completed by September. Converter Stations will be populated with electronics to convert the AC to DC in NL and back again in NS. Substation construction will be completed and energized for testing. Commissioning will be completed when the overhead lines, cables and converters are all connected by September. 14

Gender Equity and Diversity & Labour Agreements

Gender Equity and Diversity Emera Newfoundland & Labrador has developed a Diversity Plan specific to the Maritime Link Project The Plan is based on the core principles of equality; inclusiveness and mutual respect. www.emeranl.com

ENL Diversity & Inclusion Framework: Mandatory Requirement Required for Environmental Assessment Approval & Special Project Order in NL Benefits Agreement NS & NL Areas of Focus: Business Access Employment Hiring Priorities Residents of NS & NL 17

Project Diversity Plan - Objectives Ensuring gender equity, diversity and inclusiveness in all business processes and practices Supporting the development of local skills and industrial capability that provides opportunities to create long-term benefits Collaborating with industry, government, academic and training institutions, community and other stakeholder groups to optimize resulting benefits Providing an open and transparent process for all procurement activity related to the project Selecting contractors and suppliers that are committed to working with ENL to deliver benefits to the people 18

Project Diversity Plan Employment Targets for the employment of members of designated groups Includes Qualitative initiatives Procurement Information sessions and outreach to designated groups Report and monitor contracts awarded 19

Project Diversity Plan- Contractors Plan for addressing targets Provide opportunities for self-identification Job postings invite applications Ensure employees attend project orientation Investigate complaints of harassment/ discrimination Report metrics to ENL 20

Labour Agreements Three Collective Agreements covering the Project Island of Newfoundland IBEW Local 1620 Nova Scotia IBEW Local 1928 Transmission Construction Cape Breton Island Building and Construction Trades - Civil Construction Work

Environmental Activities, Aboriginal Engagement and Stakeholder Consultation

Environmental Policy Make environment an integral part of decision making, as it pursues sustainable development, environmental performance, quality service to customers and value to shareholders. Avoid environmental constraint interactions when possible, if avoidance is not possible mitigate and follow-up to determine the effectiveness of mitigation and adjust where necessary. Communicate with all stakeholders on environmental performance in a proactive and open manner. Emera Newfoundland & Labrador requires all employees to fulfill the environmental responsibility and requirements of their jobs at all times.

Environmental Assessment The Maritime Link was subject to a comprehensive environmental assessment (EA) process involving Newfoundland & Labrador, Nova Scotia and the federal government. The Project was released from the environmental assessment processes on June 21, 2013. The EA report is available on our website: www.emeranl.com The commitments made during the EA process, and the Conditions of EA release set a high standard for environmental performance during the construction of the Project.

Environmental Protection Plan (EPP) NSPML developed an Environmental Protection Plan for the Project that was approved by regulators in January 2014. Each contractor is required to develop an activity specific EPP prior to beginning any work. This EPP must be accepted by NSPML. Both the Project EPP and contractor EPP outline protection measures used to protect the environment during construction. EPPs include: Relevant legislation and regulations Best management practices Wildlife Protocols Archaeological Protocols Constraints Mapping i.e. Go or No-Go areas V2 February 20, 2014 25

Environmental Protection Plan (EPP) The EPP for each work activity includes detailed steps to avoid or minimize negative effects on the environment. This will include, but will not be limited to, the following construction specifications: Terrestrial and wildlife habitat Wetlands and watercourse crossings Clearing, grubbing and disposal of vegetation Erosion and sedimentation control Blasting (if required) Waste management Storage and handling of hazardous materials Noise and dust control V2 February 20, 2014 26

Supplier Environmental Requirements Suppliers must provide evidence of a robust environmental program and be able to demonstrate their capability to conform with program requirements. Contractors are also required to complete ENL s environmental orientation session prior to beginning any work on the project.

Our Commitment to the Mi kmaq Ongoing Communication Sharing information about the Project and being responsive Traditional Use/Monitoring Understanding interactions with Project activities Employment, Training and Business Opportunities Identifying and promoting opportunities for mutual benefit 28

Our Commitment to the Mi kmaq Training and Employment Pre-employment training program (Mar 2014) Tower assembly program (Oct 2015) Contractors report metrics to ENL Business Opportunities Qalipu and Marine Contractors Inc for NSPML site preparation Qalipu and Marine Contractors Inc for ABB site preparation 29

Stakeholder Engagement ENL has been engaging stakeholders on the Maritime Link Project since 2011. There are many stakeholders including: Landowners, Communities, Hunting Outfitters, Fish Harvesters We will work with these groups to minimize any impacts that may affect their land or their livelihood Ensure we have open communication and provide notification of the work being done in their areas Regulators We must adhere to Federal and Provincial Government requirements and legislation and provide regular updates 30

Stakeholder Engagement Our principles are to: be the first and best source of information about the Maritime Link Project by providing timely and accurate information; inform and communicate with stakeholders directly; meaningfully engage stakeholders in the Project; and promote a positive presence in the communities in and near where the Project will be constructed and maintained. 31

Basis for Procurement

Project Components

Maritime Link Guiding Principles for Procurement Full and fair opportunity Competitive procurement process Best Value NL/NL Lower Churchill Benefits MOU Inter-provincial agreement established by both governments in 2011

Opportunities for Local Suppliers Even specialized contractors require local support, including: Supplies Logistics Potential civil work Other as required

Notifications Successful proponents will be listed on Emera Newfoundland & Labrador s website Allows other suppliers an opportunity to contact these companies and discuss potential opportunities they may have E11-18: Submarine Cable Supply & Installation E12-74: Converter Stations Supply & Installation

Staying Informed Opportunities will be updated via: www.emeranl.com Procurement tab Industry Associations The Maritimes Energy Association, NOIA, etc. Newspapers Cape Breton Post, Chronicle Herald, the Western Star, the Telegram

Contact Us Offices located in: 9 Austin Street, St. John s, NL 13 Tennessee Drive, Stephenville, NL 1223 Lower Water Street, Halifax, NS 99 Terminal Road, Sydney, NS 1-855-722-3373 Email: ENLprocurement@emera.com