KfW Development Bank Activities in South East Europe Roland Siller First Vice President South East Europe & Turkey The Danube Strategy Implementation and Financing High-Level Meeting Belgrade, September 27, 2010

60 Years of KfW Financing with a Public Mission Promotional bank of the Federal Republic of Germany Founded in 1948 as Kreditanstalt für Wiederaufbau Shareholders: 80% Federal Republic, 20% federal states Headquarters: Frankfurt am Main Branches: Berlin and Bonn Representative offices: about 60 offices and representations worldwide Balance sheet total at end-2009: EUR 400 billion 4,265 employees (2009) Best rating: AAA/Aaa/AAA 2 2

Our Reputation A strong environmental and climate protection bank KfW is one of the leading environmental and climate protection banks world-wide In 2009, EUR 19,8 billion outstanding for environmental and climate protection of which EUR 17 billion are for renewable energies and energy efficiency Broad experience as No. 1 Environmental Bank in Germany

A Bank with a Wide Array of Functions Domestic promotional activities Promotion of SMEs, entrepreneurs, environmental and climate protection business start-ups Promotion of housing, education, infrastructure and social development Financing of municipal infrastructure projects and promotion in Europe International project and export finance Promotion of developing and transition countries Development bank + activities of IPEX, DEG and “Kommunalbank” in the region 4 4 4

KfW Development Bank – Europe and Caucasus Some Key Figures Staff 70 in Frankfurt plus some 40 in KfW Representative Offices Ongoing Projects some 500 in 17 Countries KfW Representative Offices 12 (Western Balkans: 7) Portfolio (Loans and Grants) EUR 4.7 Billion Disbursements in 2009 EUR 0.7 Billion

Danube Strategy – what KfW can contribute Priority areas of the Danube Action Plan KfW Core Areas of Activities To improve sustainable transport and energy connectivity Energy efficiency (rehabilitation of TPP, district heating systems, public buildings; upgrading of transmission and distribution systems etc.) Renewable energy (rehabilitation of HPP, first wind farm BiH) Integration of regional electricity market (transmission lines, support of the energy community SE Europe) Improvement of transport systems (e.g. Danube Bridge Vidin- Calafat) To protect the environment, preserve water resources and manage risks Financial support for reaching EU Environmental Standards Municipal and rural water supply, sewage disposal, waste management To reinforce socio-economic and human development Greenfielding of Microfinance Banks; Support of Pro Credit Network SME and Energy Efficiency Loans incl. Advisory Services Structuring of EFSE and Green For Growth Fund (GGF) Weiterer prioritärer Bereich: „to improve governance systems“ (strengthen institutional capacity etc.) ist implizit in unseren Projekten enthalten. KfW baut insgesamt auf den vielen Erfahrungen im nationalen und internationalen Geschäft auf. Z.T. könnte auch IPEX zu den Prioritäten beitragen (Schiffsfinanzierung, Häfen etc.)

Financial Cooperation in Serbia Priority areas of cooperation Energy, water/waste water, financial sector Environmental friendly public transport as potential new field of activities Approach Wide range of financing instruments Financing of investments and TA => capacity development to reach EU standards Close monitoring of the projects Portfolio Projects amounting to approx. 570 million EUR under implementation Pipeline of about 340 million EUR Pipeline energy efficiency environmental measures in TPP renewable energies water supply/waste water treatment, waste disposal rural development

Contact Details Roland Siller First Vice President South East Europe and Turkey +49-69-7431-4575, roland.siller@kfw.de

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