Introduction to the European Bank for Reconstruction and Development (EBRD) Thomas Maier, Managing Director, Infrastructure 12 September 2016, Taipei

1.EBRD: O VERVIEW 2.U PDATE ON K EY M ARKETS 3.C ONTRIBUTION OF T AIPEI TO EBRD’ S BUSINESS 4.P ROCUREMENT OPPORTUNITIES 5.C ONTACTS 2 Contents

The EBRD is an international, AAA-rated financial institution, which promotes transition to market economies 3  EBRD is an international financial institution that promotes transition to market economies.  Owned by 65 countries and 2 inter-governmental institutions (EU, EIB).  Recent “new” countries: 2014 Cyprus, 2015 Greece, 2016 Lebanon.  PRC most recent shareholder (Jan 2016) (0.2%).  Capital base of around EUR 38 billion.  Strong local office network with >45 offices throughout the EBRD region  Matrix organisation combining sector expertise and country leverage S HAREHOLDING STRUCTURE W HO WE ARE The EBRD has a triple-A rating from all three main rating agencies (S&P, Moody’s and Fitch) (1) Includes European Community and European Investment Bank (EIB) each at 3%. Among other EU countries: France, Germany, Italy, and the UK each holds 8.6% (2)Russia at 4%

Sector coverage and EBRD approach 4  EBRD invested over EUR 107 billion in around 4,500 projects since  Loan, equity and guarantees for well- structured, financially robust projects of all sizes (incl. many small businesses).  Close policy dialogue with governments, civil society and other stakeholders.  Targeted technical assistance for project preparation.  Focus on working with the private sector to foster innovation and open- market economies. EBRD S ECTORS W HAT WE DO AND WHERE WE ARE TransportMunicipal & Environmental Infrastructure Property & Tourism Financial InstitutionsNatural ResourcesTelecommunications, Informatics & Media Industry, Commerce & Agribusiness Manufacturing & Services Power & Energy

In 2015, EBRD invested a total of € 9.5 billion in 381 projects INVESTMENTS :  Debt 82%, Equity 14% and Guarantee 4%.  Capital market transactions ~20%.  Net profit for 2015 expected at € 0.8 billion.  Local currency: Tenge, Turkish Lira, Rouble, etc.  Both, direct investments and through holding companies.  Amid economic and political turbulence, EBRD remains a strong, resilient and trusted partner. (1) Annual Bank investment (ABI) is the volume of commitments made by the Bank during the year A NNUAL B ANK I NVESTMENT 1)

Russia Kazakhstan Mongolia —Kyrgyz Republic —Tajikistan —Moldova —Jordan Azerbaijan —Morocco Belarus Ukraine —Romania —Serbia —Kosovo Georgia— Armenia— Tunisia— Croatia— Bosnia and Herzegovina— Montenegro— Albania— FYR Macedonia —Turkmenistan —Bulgaria Estonia— Latvia— Lithuania— Poland Slovenia— Czech Republic— —Slovakia —Hungary Uzbekistan— Central Eastern Europe SEMED Western Balkans Turkey Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine Central Asia (incl. Mongolia) Egypt— EBRD country coverage Greece Cyprus Russia

GDP: ~EUR 374 million THAILAND 7 GDP: ~EUR 3 trillion EBRD Countries of Operations offer a great potential for international expansion GDP: ~EUR 546 billion GDP: ~EUR 199 billion

Fundamentals of EBRD region 8 Total Population: 76m Average 2015/ 2016F GDP change: 2.7% / 3% EBRD portfolio: EUR 6.2 bn EBRD Infra portfolio growth : -5% Total Population: 146m Average 2015 / 2016F GDP change: 3% / 2.9% EBRD portfolio: EUR 3.1 bn EBRD Infra portfolio growth : 418% Total Population: 71m Average 2015 / 2016F GDP change: 2.8% / 3.1% EBRD portfolio: EUR 4.0 bn EBRD Infra portfolio growth : 43% Total Population: 79m 2015 / 2016F GDP change: 4% / 3.1% EBRD portfolio: EUR 6.3bn EBRD Infra portfolio growth : 86% EBRD covers a region of 500 million people with a combined GDP of €3 trillion.

Fundamentals of EBRD region 9 Total Population: 44.4m Average 2015/ 2016F GDP change: 2.9% / 3.3% EBRD portfolio: €8.2 bn EBRD Infra portfolio growth : -10% Total Population: 75m Average 2015 / 2016F GDP change: -1.2% / -0.3% EBRD portfolio: €7.4 bn EBRD Infra portfolio growth : 21% Total Population: 12m Average 2015 / 2016 F GDP change: -0.1% / 0% EBRD portfolio: €0.5 bn EBRD Infra portfolio growth : 326% EBRD total portfolio and Infra portfolio amounts to €40 billion and €10 billion

As of July 2016, EBRD invested around EUR 4.6 billion across 175 projects 10 (1) Annual Bank investment (ABI) is the volume of commitments made by the Bank during the year. Unreconciled data. A NNUAL B ANK I NVESTMENT 1) 2016 A NNUAL A CTIVITY (A S OF 31 J ULY ) Number of projects YTD175 Annual Bank Investment€ 4,607m Annual Mobilised Investment€ 437m 2015 ( AS OF 31 D EC ) Number of projects YTD381 Annual Bank Investment€ 9,378m Annual Mobilised Investment€ 2,336m Portfolio€ 41,574m Operating assets€ 28,614m Private share of portfolio70%

1.EBRD: O VERVIEW 2.U PDATE ON K EY M ARKETS 3.C ONTRIBUTION OF T AIPEI TO EBRD’ S BUSINESS 4.P ROCUREMENT OPPORTUNITIES 5.C ONTACTS 11 Contents

Turkey is one of EBRD’s key countries of operation and will remain a major partner in the future 12  Turkey biggest EBRD investee in  In 2016 (as of July), EBRD invested EUR 1.0bn (ca. 20% of total EBRD investment) across 24 projects.  Recent coup attempt in July led to a sharp increase in risk premium (rise in Turkish CDS by 80bps) and put pressure on the Turkish Lira. However, markets somewhat stabilised in early August. Fitch confirmed BBB- rating, but changed outlook to negative.  For 2016, GDP growth is expected to be moderate (ca. 3.2%); current deficit remains large at 3.8%, albeit falling on the back of low oil prices.  EBRD remains committed to investing in Turkey. EBRD TOP 10 COUNTRIES (ABI IN € MILLION ) T URKEY AND EBRD RUSSIAN FEDERATION 1,8161TURKEY1,904 2TURKEY9202UKRAINE997 3UKRAINE7983EGYPT780 4POLAND7564KAZAKHSTAN709 5ROMANIA5085POLAND647 6SERBIA4246SERBIA478 7KAZAKHSTAN3287MONGOLIA467 8CROATIA2888MOROCCO431 9BELARUS2559GREECE SLOVAK REPUBLIC 23710AZERBAIJAN269

EBRD remains committed in investing in Turkey, realising its well diversified pipeline 13 EBRD AND T URKEY IN N UMBERS Strong EBRD pipeline and portfolio:  98% private deals, also in the investment pipeline  Strong transition impact score above EBRD average  High share of local currency / capital market (34% of total) and small business deals (17% of total)  Strong GET impact of 35% of total signed financing  High amount of gender deals  Well diversified annual business Annual Activity Number of projects YTD24 Annual Bank Investment€954m Annual Mobilised Investment€169m Portfolio & Operating Assets Portfolio€6,330m Active portfolio projects178 Operating assets€5,299m Private share of portfolio98% Equity share of portfolio18%

1.EBRD: O VERVIEW 2.U PDATE ON K EY M ARKETS 3.C ONTRIBUTION OF T AIWAN TO EBRD’ S BUSINESS 4.P ROCUREMENT OPPORTUNITIES 5.C ONTACTS 14 Contents

Taipei-China has been a solid and important contributor to EBRD’s business model 15 I NVESTMENTS ( AS OF J ULY 2016)  Taipei-China important source of FDI  Joint Taipei China-EBRD investment stood at €1.43 billion, of which 20% Taiwanese.  Major beneficiary regions: Russia (69%), Kazakhstan (8%), Romania (4%)  Major sectors Financial Institutions (66%) and Industry/ Commerce/ Agribusiness (33%) T AIWANESE C ONTRIBUTION TO EBRD T RADE F ACILITATION PROGRAMME  Launched in 1999, since then financed over 18,300 transactions for more than €12.8 billion.  100 export and import transactions with Taipei China, totalling €26.2 million  12 Taiwanese Confirming Banks (as at January 2015)  Over 30 contracts for over EUR 1 million awarded to Taiwanese consultants  17 contracts worth over EUR 220 million under EBRD public sector projects won by Taipei China entities (Dec. 2014) C ONSULTANCY AND P ROCUREMENT  Since 1991 around EUR 35 million provided through the Taiwan Business – EBRD Co- operation Fund. Replenished with USD 1.75 million in 2014  Taipei China one of the founding contributors of the ETC fund with USD 250,000.  For the first time, Taiwanese funding (USD 300,000) will also contribute to the E5P Fund and the Small Business Impact Fund (SBIF) (USD 600,000) T ECHNICAL C OOPERATION

The Green Energy Special Fund (GESF) helps fostering best practices for resource efficient projects 16 GESF IN A B RIEF EBRD and TaiwanICDF created a USD 80 million GESF in order to:  Address the affordability gap currently preventing clients from choosing best available technology  Expand climate change mitigation investments and develop appropriate competencies in adaptation  Facilitate competitive entry of low- carbon players  Build up a critical mass and awareness of energy efficient and low-carbon technology projects  Foster the diffusion of new technologies until they reach full market potential and become the common choice H OW IT WORKS AND O UTCOME  GESF provides a subsidised interest rate relative to a reference market rate, where net present value of the accumulated interest rate subsidy shall be equal to the estimated value of monetised environmental benefits  First sponsored project for LED street lighting project signed in Chisinau, Moldova in December  Investments are being considered in Bosnia I Herzegovina, Bulgaria, Jordan, Kazakhstan and Morocco under consideration.

1.EBRD: O VERVIEW 2.U PDATE ON K EY M ARKETS 3.C ONTRIBUTION OF T AIWAN TO EBRD’ S BUSINESS 4.P ROCUREMENT OPPORTUNITIES 5.C ONTACTS 17 Contents

Public Procurement Statistics in P UBLIC P ROCUREMENT CONTRACTS SIGNED The Bank’s public sector clients are expected to sign in the next four years €7.5 billion and 795 contacts Average contract: €4.9 million Open tendering share: 97 per cent EBRD financed €721 million 210 contracts totalling €1.0 billion

Public Procurement statistics in 2015 (2) 19 I NFRASTRUCTURE IS THE SECTOR WITH THE HIGHEST CONTRACTUAL ACTIVITY (180 OUT OF 210 CONTRACTS )

EBRD procurement & opportunities for Taiwanese companies 20 EBRD P ROCUREMENT P RINCIPLES  Aligned with the Government Procurement agreement of the WTO  Use of efficient procurement methods  Fair and open international tendering – the norm  No country eligibility limitations or preferences  Clients are responsible for project implementation and tendering  Compliance with the Bank’s Environmental and Social Policies  Prevention and fighting of prohibited practices EBRD APPROACH IN PUBLIC PROCUREMENT  Minimisation of risks – Maximisation of success  Procurement – part of project delivery strategy  Use of standard tender documents and internationally recognised contract terms and conditions  Aim of evaluation – best value for money  Evaluation factors usually are expressed in monetary terms  Prevention and fighting corruption

EBRD procurement & opportunities for Taiwanese companies 21 Where to find information on the opportunities? What to look for: Project Pipeline; General Procurement Notices; Invitation for Prequalification or for Tender and Invitation for Expression of Interest (Consultants)

Contacts 22 Thomas Maier Managing Director, Infrastructure Tel: EBRD One Exchange Square London, EC2A 2JN UK