FINANCING INDUSTRIAL SECTOR PROJECTS IN UZBEKISTAN

BANKING & FINANCIAL SECTOR 1. Central Bank of Uzbekistan commercial banks: 3 state-owned banks 13 joint stock banks 5 banks with foreign capital 9 private banks 3. Fund for Reconstruction and Development 4. Leasing companies, Investment Funds

BANKING & FINANCIAL SECTOR Capital Assets

BANKING & FINANCIAL SECTOR Establishing of Deposit Guarantee Fund– since 2002 Full guarantee of population deposits in commercial banks – since 2009 Annual growth rate of assets, deposits and credits - on average 35-40% Share of long term loans to real sector in credit portfolio – 76% Overall assets significantly grew since 2009 by to 200% Dynamics of deposits, assets and credit portfolio

BANKING & FINANCIAL SECTOR Selected list of credit lines by international banks provided to local banks: Asian Development Bank, IFC, World Bank, Islamic Development Bank Korea Exim Bank, Korea Development Bank China Development Bank, The Export-Import Bank of China Japan Bank for International Cooperation (JBIC) Export-Import Bank of India, Exim Bank of Malaysia Commerzbank, Deutsche Bank

BANKING & FINANCIAL SECTOR COMPREHENSIVE REGULATIONS Conservative approach to the development of banking sector - No single bank bankruptcy since 1991 Strict bank licensing regulations aimed at quality rather than quantity Comprehensive regulations based on Basel committee recommendations and regular CAMELS rating system on site audit Compulsory annual international audit of all commercial banks since 1998

BANKING & FINANCIAL SECTOR HIGH LIQUIDITY AND CAPITAL ADEQUACY RATIOS Risk-weighted capital adequacy ratio is 24,3% (Central Bank regulation is 10%, Basle Committee standard is 8%) Current liquidity is above 72.8% (Central Bank requirement is 30%) 26 commercial banks in the country, received "stable“ rating from leading international rating companies ( "Moody's", «Standard & Poor’ s» and « Fitch ratings») GOOD PERFORMANCE OF CREDIT PORTFOLIO High quality and diversification of credits National Institute for Credit Information (NICI) – established as a real-time database for credit histories networking and used by all banks and bank branches

Established in 2006 by the Presidential Decree Charter capital 15 billion U.S. Dollars Main tasks: -financing strategic investment projects in key areas - promotion of projects co- financing by investors and financial institutes Fund for Reconstruction and Development

I. Core sectors Oil & Gas Chemical and Petrochemical Energy & Power Metals & Mining Transport & Communications II. Infrastructure projects AREAS of FINANCING

BANKS Refinancing Monitoring 5 authorised banks UFRD CO-FINANCING Financial Institutions, Banks and Investors PROJECT FINANCING MECHANISM BORROWERS Loans provided for designated projects

PORTFOLIO STRUCTURE Mining : 9% Transportation & Infrastructure: 26% Energy: 23% Oil&Gas: 25% Machinery: 3% Chemicals: 14% Credit portfolio: over 71 projects at financing and project development stages

PROJECT IMPLEMENTATION SCHEME Dehkanabad Potash Fertilizer Plant (2007) UFRD $62 mln. Eximbank of China $42 mln. Uzkimyosanoat $22 mln. International Contractors Co-FinancingEPC expansion to production of tons of potash fertilizers 2 nd stage of project started in 2011 Resources FutureResults 1321 new jobs Export of tons of potash fertilizers Modern Technologies Area infrastructure Potash salt deposit Tyubegatan

Description Transaction terms Building Gas and Petrochemical Complex on the Ustyurt Surgil deposit with further field development The project's outcome is a significant expansion in the value-added chemical process industry in Uzbekistan and the increase in value of a key natural resource. As a result, 3,373 KTPA of natural gas will be processed into 387 KTPA of high-density polyethylene, 83 KTPA of polypropylene, and 2,568 KTPA of methane-rich processed gas. The project will boost long-term employment by adding approximately 3,500 direct jobs during construction and 1,090 during operations, in addition to indirect employment opportunities. Uz-Kor Gas Chemical is a joint-venture company which is 50% owned by Uzbekistan’s UNG and 50% by a consortium of Korean companies: Honam Petrochemical Corporation (45% of the Korean consortium), Korea Gas Corporation (45%), and STX Energy (10%). Uz-Kor Gas Chemical was incorporated in Uzbekistan in May 2008 as a project company to build, own, and operate the project. A consortium of foreign banks, including the Asian Development Bank, the Export-Import Bank of Korea, China Development Bank and others, are providing loans for a total of $2.54 billion for 16 years. Surgil Gas-chemical Complex PROJECT EXAMPLES

Description Transaction terms Production of synthetic liquefied gas (GTL) on the base of methane processing at Shurtan Gas-Chemical Complex Gas to liquids (GTL) is a refinery process to convert natural gas or other gaseous hydrocarbons into longer-chain hydrocarbons such as gasoline or diesel fuel. Methane-rich gases are converted into liquid synthetic fuels either via direct conversion or via syngas as an intermediate, for example using the Fischer Tropsch or Mobil processes. South African energy and chemicals group Sasol concluded a joint venture (JV) agreement with Uzbekistan's national oil and gas company, Uzbekneftegaz, as well as with Petronas, of Malaysia, for the development of a new $2,7-billion gas-to-liquids (GTL) project. (GTL) plant, located 40 kilometers south of Qarshi in Uzbekistan.This plant will be based on Sasol’s world leading GTL technology and will have a capacity of 1.4 million metric tons per year, a similar capacity of the Oryx GTL facility in Qatar implemented by Technip, with following product slate: GTL diesel, kerosene, naphtha and liquid petroleum gas. The plant, would tap into gas reserves of some 60-trillion cubic feet (tcf), with a typical GTL plant requiring only 3,5 tcf. The facility could produce some of 1,4-million tons, or bbl/d, of GTL diesel, kerosene, naphtha and liquefied petroleum gas according to Sasol. Uzbekistan GTL PROJECT EXAMPLES

Description Transaction terms Navoi Thermal Power Plant Modernization Project The project considers construction of Combined Cycle Power Plant 478 MW capacity. The facility is being built at the Navoi Thermal Power Plant of State Joint Stock Company Uzbekenergo (SJSC Uzbekenergo), the authority under which the power industry of Uzbekistan operates. The natural gas-fired CCGT power plant currently under construction in Navoi City, the capital of Navoi Province, which is in southwestern Uzbekistan and is one of the country’s largest industrial centers. The economy of the Navoi region is currently enjoying a boom fueled by production of natural resources, including oil, natural gas and precious metals, as well as chemical fertilizer and other material manufacturing. When completed, the new power generation system will supply electricity and heat (hot water) to the Navoi Free Industrial Economic Zone and thereby contribute to the development of industry in the region. The CCGT power generation plant to be built in Navoi consists primarily of one M701F gas turbine, one steam turbine, one heat recovery steam generator and two generators. MHI will provide the gas and steam turbines and Mitsubishi Electric Corporation will supply the generators. INITEC Energia, an ACS Group company, will be responsible for overall engineering of the facility and Calik Enerji Sanayi ve Ticaret A.S., a Turkish construction company, will perform civil engineering and installation work at the site. Mitsubishi Corporation will handle the trade particulars. NAVOI CCPP PROJECT EXAMPLES

OUR PARTNERS ­ Asian Development Bank ­ World Bank ­ Japan International Cooperation Agency ­ Qatar Investment Authority ­ Islamic Development Bank ­ State General Reserve Fund of Oman ­ Korea Development Bank ­ Korea Export-Import Bank ­ International Petroleum Investment Company ­ KSURE ­ Malaysia Export-Import Bank ­ China Development Bank ­ The Export – Import Bank of China ­ Kuwait Fund for Arab Economic Development ­ Czech Export Bank

FUND FOR RECONSTRUCTION AND DEVELOPMENT OF THE REPUBLIC OF UZBEKISTAN Tel: Tel: Fax: Fax: Amir Temur Street 101 Amir Temur Street Tashkent |Uzbekistan| Tashkent |Uzbekistan|