1. Sinotech  Sinotech Engineering Consultant, Inc. ( 中興工程顧問社 ), founded in1970  Spin off its consulting business in 1994, to establish Sinotech Engineering Consultants, Ltd. ( 中興工程顧問公司 )  Sinotech Inc. devoted to R&D, personal training, etc.  Sinotech Ltd. has 1,500 employees, 90% are engineers, providing full- spectrum services, from planning, design, construction supervision, project management, etc.  Multi-disciplinary activities, water resources dev., transportation engineering, incl. highway, railway and transit systems, sea and air ports, environmental engineering, urban and industrial estates dev., power dev., incl. hydro and thermo plants, industrial and hi-tech factories, etc. 1

2.  International assignment 1974 - Vietnam and Philippines 1975 - Saudi Arabia 1976 – Indonesia until now, more than 80 projects, nearly all financed by WB, ADB, JICA 1995-2006 - G-G projects, Central America, Dominican Republic, Honduras 1996- EBRD, Reh. of Enguri Dam in Georgia Ranked as 200 top international consultants by ENR between 1976-1988 Currently, only 10% of annual turn-over from overseas projects, used to be 40% Sinotech 2

3. Status of Engineering Sector in Taiwan  Due to rise of environmental awareness, and upon completion of major infrastructure development projects, the domestic market of engineering sector is declining every year  According to the statistics, Taiwan has about 959 engineering consulting firms (50,000 employees in total), 250 firms with capitals of more than USD200,000, 2,200 Class A contractors, 900 individual PE offices (2,000 employees in total)  Market size of mainly rehab and O&M works may not be sufficient  Presently, only one company, CTCI is ranked as 225 top international consultants and 250 international contractors respectively by ENR 3

4. Prerequisites to Entering International Market  Cost competitiveness  Technical, managerial and language capabilities  Knowledge of international practices  Selection of target countries Custom and culture Professional licenses requirement Regulation and taxation Other barriers Timely collection of relevant business Information and project status Kuan-xi  Vertical and horizontal integration, join operation for Turn-key and EPC projects / Acquisition of local enterprises 4

5. Facts  As a small island, Taiwan has by nature, an export-oriented economic development pattern  Taiwan’s engineering sector has to expand its overseas market  Without experience, entry barrier into international market is high  High competition for projects financed by international lending agencies  Effective and efficient solution - provision of ODA, soft and tight loan by government  Limited fund of Taiwan’s ICDF, and mainly for countries with diplomatic relationship  Ample money supply in Taiwan 5

6. Suggestion  Enhancement of competitive advantage with assistance by Government Collection of relevant information as required Revision of laws and regulations, including tax incentives Provision of guarantee and bonds Intensive training and education  Paradigm shift - Consolidation of available liquidity in money market by government for ODA or to finance other types of investment to target countries, and to provide balance of the interest between commercial and soft loans by government  Looking for opportunity to co-financing or parallel financing with international lending agencies for infrastructure development to target countries 6