1 Financing in the Port Sector EBRD experience in promoting transport solutions Istanbul, May 2012

2 1.What is the EBRD? 2.EBRD in the Transport Sector 3.EBRD in the Port & Maritime Sector 4.Case studies

3 What is the EBRD? The European Bank for Reconstruction and Development: International financial institution dedicated to promoting transition to market economies by investing mainly in private sector development and entrepreneurship. Established in Headquartered in London, the Bank has 36 regional offices. Largest single investor in the region (30 countries from Central Europe to Central Asia): €71.2bn in more than 3,389 projects since 1991 Owned by 61 countries and two intergovernmental institutions (AAA rated) 1 Shortly to beomce 63 as in 2012 Jordan and Tunisia beomce members as part of the process of becoming recipients of EBRD investments

4 Mission and Vision EBRD’s operations are based on three principles Promotes transition to market economies, private ownership and good governance with respect for people and environment Supports, but does not replace, private investment. Provides financing at reasonable terms, otherwise not available Invests in financially viable projects, together with the private sector

5 Founded in 1991 after the disintegration of the Soviet Union, EBRD’s region of operations covers most countries in Eastern Europe, Central Asia and Turkey. The Bank now intends to extends its mandate to SEMED (Morocco, Tunisia, Jordan, Egypt) Founded in 1991 after the disintegration of the Soviet Union, EBRD’s region of operations covers most countries in Eastern Europe, Central Asia and Turkey. The Bank now intends to extends its mandate to SEMED (Morocco, Tunisia, Jordan, Egypt)

6 EBRD projects span every business sector Transport Industry, Commerce & agribusiness Financial Institutions Manufacturing & Services Municipal & Environmental Infrastructure Power & Energy Natural Resources Property & Tourism Telecommunications, Informatics & Media

7 Extensive offer of tailored financial products Debt Equity Debt co-financing, working with commercial banks and IFIs Project finance loans (incl. PPP) Sovereign, sovereign guaranteed, loans to state owned companies and to private sector (up to 35% syndicating the rest), including SME Syndication under preferred creditor status Hard/local currency. Fixed/floating rates Access to capital markets Investing with majority sponsor to reduce equity burden and add partnership value. No more than 25% Common or preferred stock Privatization and initial public offering (IPO) Mezzanine equity and subordinated debt Infrastructure funds PPP Technical CooperationAs a Multilateral Development Bank, EBRD brings in additional financial capital and technicalassistance (TC) to economically viable projects

8 Strong, internationally recognized partner with long term perspective Higher risk appetite than other lenders Long established policy dialogue with Government and Regulators Unparalleled presence in the region provides mitigation of political and regulatory risks Preferred creditor status in all countries of operations Catalysts to access additional finance (every € 1 financed by EBRD leads to mobilize € 3 from other sources 2 ) Flexible deal structure and product matching services Dedicated teams with expertise in a variety of sectors and countries Donor funded Technical assistance available Benefits of Working with Us EBRD’s Value-Added: a unique offering 2. EBRD Annual Report 2010

9 EBRD Presence in Turkey Operations began in 2009 Initial focus on sustainable energy, MSMEs in remote regions, agribusiness and utilities As of January 2011, dedicated Transport Banker in Istanbul 2010 (Cumulative) Number of projects  42 Net business volume  € 1.1 billion Total project value  € 3.2 billion In 2011 Business Volume Net business volume  € 888 million Number of projects  € 26

10 1.What is the EBRD? 2.EBRD in the Transport Sector 3.EBRD in the Port & Maritime Sector 4.Case studies

11 The Transport Team at EBRD The Transport Team is part of the EBRD’s Infrastructure Business Group with over 30 banking and sector professionals. Headquartered in London, with dedicated sector coverage bankers in Astana, Istanbul, Kiev, and Moscow Dedicated in-team specialists to support procurement, sustainable strategies and project management EBRD offers banking services (debt and equity) to clients across every transport mode: railways, maritime, aviation and roads 1 More info at… 1- Urban Transport is competence of the Municipal & Environmental Infrastructure Team 2- Data at end 2011 Transport at a glance 2 € 9.2 billion invested Total project value: € 32.5 billion 210 projects 28 of the EBRD’s 30 countries of operation Transport at a glance 2 € 9.2 billion invested Total project value: € 32.5 billion 210 projects 28 of the EBRD’s 30 countries of operation

12 EBRD’s regional presence in Transport Sector Portfolio by Region (€m) Portfolio by mode (€m) At end December 2011, the EBRD had invested €9.2 billion in 210 Transport projects throughout the region

13 Extensive Transport portfolio including, but not limited to.. Road Road rehabilitation and construction of new highways, secondary and rural roads, by-passes, maintenance equipment and contracting, toll-motorway construction and operation Rail Aviation Ports & Shipping Rehabilitation, maintenance and construction of rail infrastructure (track, signaling, power supply, civil structures), Rail operations (rolling stock, maintenance facilities) Rehabilitation and construction of port infrastructure (berths, quays, land access), superstructure (warehouses, gantries), inland waterways, and vessels Rehabilitation and construction of airport infrastructure and terminals for passenger & cargo, airline finance, air navigation services (ANS) Logistics & Intermodal Construction of intermodal terminals & logistic centres, support to intermodal operators

14 1.What is the EBRD? 2.EBRD in the Transport Sector 3.EBRD in the Port & Maritime Sector 4.Case studies

15 EBRD in the Maritime sector At a Glance No. projects: 45 No. Countries: 13 EBRD Finance/Total project value: € 0.94/ 2.5 bn % Total portfolio: 21.5% As the most energy efficient mode of mass transport, which carries 90% of world trade, the Bank supports its development to ensure its capacity to meet growing demand efficiently: – Active support of private sector involvement in greenfield projects – Terminal (general, and/or cargo specific, container) and port structures and development of state-owned infrastructure – Finance of fleet modernisation and capacity development in a market dominated by over-aged vessels. Promotion of short sea shipping operators – Introduction of energy efficiency and environmental best practices (ie compliance with IMO regulations, membership of ECOPORT) Long established policy dialogue with regional governments on the commercialisation of port infrastructure and the separation of port infrastructure management from the state

16 Some references on the Maritime sector Some clients in the maritime sector Pre and post delivery financing of Fleet modernization and capacity development for Fesco, VBTH, BSSM, Circle Maritime Invest, etc. Expanding capacity with efficient port infrastructure in Poti (Georgia), Durres (Albania), Constanza (Romania), etc. Support greenfield projects under concession terminal and port structures Contributing to greening port activity in Russia through equity participation (Globalports) Supporting a more efficient maritime navigation System in the Gulf of Finland

17 EBRD’s regional presence in Port sector Portfolio by Project Number At end December 2011, the EBRD had invested €0.5 billion in 21 port projects throughout the region

18 PORTS in Turkey Export/import volume of Turkey recorded 15 % CAGR and reached USD 300 billion in 2010 from USD 67 billion in In the last 10 years USD 4.3 billion port investments realized via: privatisations and greenfield investments to catch up with the high growth. Tekirdag 2 mnton Iskenderun Bay: Iskenderun 2.4 mnton Assanport Mersin 0.9 mnTEU Bandırma 4 mnton Blacksea: Trabzon, Giresun, Rize, Sinop, Ordu, Hopa Antalya 0.3 mn TEU Med sea: Dikili, Kusadası, Cesme Marmaris Alanya Ambarli Ports: Marport: 1.7 mnTEU Kumport: 1.0 mnTEU Mardas: 0.6 mnTEU Marmara ports: Borusan: 5 mnton, 0.4 mnTEU Yilport: 2 mnton, 0.5 mnTEU Gemport: 0.6 mnTEU Evyap: 1 mnton liquid, 0.6 mnTEU Derince: 2.5 mnton (*) Nemrut Bay: 0,3 mnTEU Izmir 0.8 mnTEU (*) (*) to be privatised

19 Potential Projects Privatisations Galata Cruise Port: Expected tender: begining of 2012 Purpose: increased cruise port capacity, creating social areas İzmir Port: 1 mn TEU container port Privatisation Agency’s bid announcement is expected. Derince Port: 1 mn ton cargo port Privatisation Agency’s final strategy is expected. BOT and Greenfield State Investments and eventual BOTs: Çandarlı port: 2 million TEU container port (1st stage). Mersin port: 1.9 million TEU container port (1st stage). Filyos port: 25 million ton dry bulk port. Greenfield investments: Asyaport : MSC’s container port – expected 1 million TEU Yarımcaport : DP World’s container port – expected 1.5 million TEU Petkim port : Container Port – Expected 1.5 million TEU

20 1.What is the EBRD? 2.EBRD in the Transport Sector 3.EBRD in the Port & Maritime Sector 4.Case studies

21 Case Study Fesco Vladivostock Port, Russian Federation Client:FESCO EBRD finance:$ 100 million Type of finance:Senior Debt Total Project cost:$ 340 million Year:2011 Project descriptionThe proceeds will fund the first phase modernisation of the commercial infrastructure in the port and other priority logistics projects. Impact Capital investments will result in increased operational standards, greater operational efficiency and significant time savings for the clients Role of the private sector in the intermodal and inland container terminals and Far Eastern network Demonstration effect of energy efficient technologies and energy management practices Fesco, as a leading integrated transportation operator in the Russian market, will upgrade this major infrastructure hub providing much needed improvements in the Russian intermodal and port sector

22 Case Study Euroterminal, Ukraine Client:Euroterminal LLC EBRD finance:Up to $ 27 million Type of finance:Senior Debt Total Project cost:$ 47 million Year:2009 Project descriptionThe proceeds finance on-shore container logistics facilities including truck parking, container storage depot and custom terminal “dry port”. Impact Improvements in the efficiency of container handling operations Promotion of the development of inland infrastructure at the Port of Odessa Introduction of environmental and procurement practice to best international practice and corporate governance strategies. The first integrated logistics centre in Ukraine, built specifically for the purpose of processing containers on shore, thus linking container service in the area of Odessa Commercial Seaport

23 Case Study Poti Port, Georgia Client:Poti Sea Port Corporation EBRD finance:$ 8 million Type of finance:Senior Debt Total Project cost:$ 11 million Year:2010 Project descriptionThe proceeds financed the rehabilitation of the container terminal berth, including dredging, paving and replacement of part of the quay and purchase mobile harbor cranes, reach stackers and an empty container handler. Impact Expansion to eliminate bottlenecks and contribute towards regional expansion Role of the private sector in the provision of services Private sector sponsor introduction of corporate governance strategies and enhanced business practice. Supporting greater involvement of foreign sponsors in the ownership and development of port infrastructure.

24 Contacts Huseyin Ozhan Principal Banker – Transport t: e: For all further enquiries, please contact : Sue Barrett Director – Transport t: e: One Exchange Square EC2A 2JN London United Kingdom Kanyon Ofis Binasi Buyukdere Cad. No: 185 Levent / Istanbul / Turkey Sevki Acuner Deputy Director – Turkey t: e: