1. OVERVIEW OF THE PROCUREMENT PROCESS UNDER IPA COMPONENT- III RCOP SMC Meeting, 18 May 2011

2. 2 Procurement Plan 3 months6 months 9 months Service Service Procedure ideally takes at least 9-10 months Supply Works Supply and Works Procedure ideally takes at least 6-7 months Receiving Initial Tender Documents Procurement Notice 30 days Tender Launch 50 days Tender Evaluation Shortlist Evaluation Contract Award Procurement Notice 60 days Forecast Notice 30 days Tender Evaluation Contract Award Procurement Notice 90 days Tender Evaluation Contract Award Supply Works Service Forecast Notice 30 days

3. 3 RCOP Progress in tendering process: * Tender processes for Works, Supervision (Service) and Supply components of 3 projects are combined respectively. Priority 1 WorksServiceSupply Establishment of Business Incubators & Development of a Network among Incubators in Turkey (Kastamonu, Malatya, Tokat)  FN  Spv TA: Shortlist  TA: n.a  n.a Development of the Research & Technological Infrastructure of Gaziantep *  FN (Cancel)  Spv TA: under Evaluation  TA: FN  FN Kayseri-Erciyes Technopark Regional Innovation Centre (Kayseri, Yozgat) *  TA: FN FIRASET (Fırat Rainbow Surrounding Enterprise Taskforce) (Elazığ) *  TA: FN Winter Tourism Corridor in Erzurum, Erzincan and Kars  n.a

4. 4 RCOP Progress in tendering process: Priority 1 (cont’d) Direct Grant Greater Anatolia Guarantee Facility Budget: 32 MEUR  Implementing G43 Anatolian Venture Capital Fund Budget: 16 MEUR  Contracting

5. 5 RCOP Progress in tendering process: Priority 2 ServiceSupply Enlargement of the European Turkish Business Centres Network, Phase I (Sivas, Antakya, Batman, Van)  Contracting  Implementing  n.a Empowering SMEs for Networking and Regional Cooperation (Samsun, Trabzon, Gaziantep, Kahramanmaraş, Çorum)  Implementing  n.a

6. 6 RCOP Progress in tendering process: Priority 3 ServiceSupply Technical Assistance for the Implementation of RCOP  Contracting  FN  n.a  (FWC) Completed-2010  (FWC) Implementing.  FN

7. 7 RCOP Progress in tendering process: 2nd Project Package: 7 Projects > 26 Components (7 Works; 7 Spv TA; 6 Supply; 6 TA) FN published for 7 Components Estimated date for signature of contracts > Second half of 2012-2013

8. 8 COMMITMENT / DISBURSEMENT RCOP FORECAST 2007-2011 Year OP Allocation (EURO) Potential Decommitment (N+3) (EURO) Forecasted Disbursement (EURO) 200741,900,000.00N/A 200843,500,000.00N/A 200954,800,000.00N/A64,275,000.00 201071,430,000.0041,900,000.0027,259,577.18 201188,020,000.0043,500,000.0012,543,293.96 2012 54,800,000.0032,243,977.88 2013 71,430,000.0044,855,828.21 2014 88,020,000.0013,312,442.34 Notes: 1- Cut off date is 09.05.2011 in terms of Procurement Plan. 2007-2011 Programming years has been taken into consideration. 2- In general, the ratio of EU and TR contribution 85%-15% while in 6 projects the EU contribution is between 82-83%. 3- For each year, total disbursement from CFCU till the end of December is considered as verifiable by the Commission.

9. 9 COMMITMENT / DISBURSEMENT RCOP FORECAST 2011 Notes: 1- Cut off date is 09.05.2011 in terms of Procurement Plan. 2007-2011 Programming years has been taken into consideration. 2- In general, the ratio of EU and TR contribution 85%-15% while in 6 projects the EU contribution is between 82-83%. 3- For each year, total disbursement from CFCU till the end of December is considered as verifiable by the Commission. Year Potential Decommitment (N+3) Forecasted Disbursement Cumulative Forecasted Disbursement DecommitmentRisk 2007 N/A 2008 N/A 2009 N/A64,275,000.00 201041,900,000.0027,259,577.1891,534,577.18-49,634,577.18No Risk 201143,500,000.0012,543,293.9662,177,871.14-18,677,871.14No Risk 201254,800,000.0032,243,977.8850,921,849.023,878,150.983,8 Mil. 201371,430,000.0044,855,828.21 26,574,171.7926,5 Mil. 201488,020,000.0013,312,442.34 74,707,557.6674,7 Mil.

10. 10 THANK YOU FOR YOUR ATTENTION