INVESTMENT COORDINATION COUNCIL AT WORK Valdis Dombrovskis Prime Minister of Latvia June 30, 2011

▌ Large and Strategically Significant Investment Project Coordination Council was established on August 10, 2010 ▌ In 2010 and 2011 the council has held 8 meetings ▌ The council is chaired by Prime minister, involves Ministers of Economics, Finance, Transport, Education and Science, Foreign affairs, Environmental Protection and Regional development ▌ On ad hoc basis the representatives of municipalities, business organizations and NGOs are participating ▌ Secretariat functions performed by Investment and Development Agency Investment Coordination Council: Brief Overview 2

▌ Coordinate activities of different branches of government, municipalities and network companies in promoting the implementation of local and foreign investment projects ▌ Improve efficient use of public resources in supporting investment projects, coordinate application of support instruments and select most appropriate solutions ▌ Provide swift response to investor’s proposals and effective troubleshooting in case of problems ▌ Follow up completed projects and consider suggestions for improving procedures and fine-tuning support Investment Coordination Council: Main Objectives 3

▌ The very existence of the Council is a positive signal for investors, large projects receive adequate treatment ▌ After considering only few cases the cooperation between ministries and municipalities has significantly improved ▌ The format of the Council ensures rapid information exchange and effective enforcement of decisions ▌ Elimination of earlier observed situation where unclear division of responsibility between institutions could result in unclear project criteria and long decision period Investment Coordination Council: Achievements 4

▌ Suggestions on improving procedures for: ▌ Allocation of EU funds ▌ Granting construction permits ▌ Connecting to electricity grid ▌ Project development in sea-bed (for wind energy) ▌ Discussions of investment attraction strategy and selection of investment projects to be supported ▌ Discussion of implementation of FICIL suggestions ▌ Specific cases: Cemex, Saint-Gobain construction products, development of Eurasian logistics corridor Investment Coordination Council: Considered Issues 5

▌ Consistent implementation of Stabilization Plan, the goal of introducing euro in 2014 ▌ Successful return to international financial markets in June 2011 (issue of 10year government bonds), completion of IMF&EC program by end of 2011 ▌ Last phase of fiscal consolidation in 2011 ▌ Stability of tax rates, avoiding revenue measures in 2012 ▌ Implementing action plan to fight shadow economy ▌ Utilizing the opportunity to decouple political processes from non-transparent business interference 6 Investment Climate Outlook

7 Valdis Dombrovskis, Prime Minister of Latvia 36 Brīvības blvd., Rīga, LV Thank you!