1. SELF-REGULATION IN CONSTRUCTION SEKTOR FIRST RESULTS NEAR PERSPECTIVES Moscow, October 2009.

2. CHANGES IN THE SYSTEM OF ACCESS TO CONSTRUCTION MARKET ________________________________________________ LICENSING  Engineering research  Projecting  Construction Since 1 Jan. 2009 SELF-REGULATION  Engineering research  Projecting  Construction Licenses were issued by public institutions, such as Federal Agency of Construction and housing and communal services (Gosstroy, Rosstroy) – Ministry of regional development Certificates of access are issued by non- state self-regulatory organizations Moscow, October 2009

3. SELF-REGULATION IN THE SECTOR OF CONSTRUCTION, PROJECTING, ENGINEERING RESEARCH ______________________________________________ Organisations unite to form a non- commercial partnership Work out the regulations and standards, obligatory for their members Found the compensation fund Apply for registration as a self- regulatory organisation Issue the access certificates (instead of a license) Control the activity of their members (instead of a licensing control) Work out the regulations and standards, obligatory for their members Obtain the status of self-regulatory organisation Moscow, October 2009

4. CHANGES IN THE REGULATION OF MARKET Since 1 January 2009 ________________________________________________ GosstroyRosstroyMinregion Normative regulation Licensing Licensing control Ministry of regional development Normative regulation Self-Regulatory Organization (SRO)  Issue of access certificates  Control of the members of SRO  Standards and regulations of SRO Federal service of ecological, technological and atomic supervision (ROSTECHNADZOR)  Registration of SRO  Supervision of SRO Moscow, October 2009

5. SCHEME OF ORGANISATION OF SELF-REGULATION IN THE CONSTRUCTION SECTOR _____ _________________________________________________ Moscow, October 2009 REGIONAL SRO  Access to market and control of members activity  Forming of a system of liability for breakage  Training and certification of personnel NATIONAL ASSOCIATION OF SRO  Creation of unified standards, requirements and regulations  Protection of rights and interests of regional construction SRO  Presentation of interests of construction community at legislature and executive authority of Russian Federation  Obligatory membership for regional SRO REGULATORY AUTHORITY  Conduct of united SRO register  Approval of united standards, requirements and regulations  Control of SRO activity

6. Moscow, October 2009 REGIONAL SRO IN CONSTRUCTION IN A FORM OF NON-COMMERCIAL PARTNERSHIP ________________________________________________________________________________________ AUTHORITY: issue of acces certificates to works, which affect the safety of objects of capital construction REQUIREMENTS: 1. Unites more than 100 members 2. Compensation fund is no lees than 1000000 r. per member or 300000 if SRO has the regulations of liability insurance 3. Presence of accepted documents: - requirements of issue of access certificates - regulations of control in self-regulation - document with a system of responsibility arrangements, including the types of punishment 4. Have the right to set up: -self-regulation standards -self-regulation regulations 5. Presence of completed compensation fund 6. Presence of internet web-site 7. Presence of member register

7. INFORMATION CONCERNING THE TRANSITION TO SELF- REGULATION ________________________________________________ On 21 October 2009 The following SRO of 83 subjects of Russian Federation have registered in Rostechnadzor: 49 – in construction field 33 – in the field of projection 4 – in the field of engineering research Regional coverage - 69 subjects of Russian Federation (including branch offices and representative offices of SRO) Moscow, October 2009

8. №KEY SUCCESS FACTORSTRATEGYKey index of carrying out 1 Conservation and maintenance of SRO reputation Statement of clear and understandable for members of SRO mission of organization, compliance with its goals and objectives Positive response among media, business community and consumers 2Sufficient financing Receiving of grants, participation in international sponsoring programs Increase of financial funds receiving 3Collective brand recognition Increase of costs for advertising campaigns and PR, informational and educational campaigns Increase of significance and recognition of collective brand 4 Leadership qualities of SRO top-management Getting the competent management involved in the work Active lobbying of interests of business community and SRO members 5Amount of SRO membersDecrease of membership fee and increase of value, offered by SRO to its members Quantative increase of amount of SRO members KEY SUCCESS FACTORS FOR SRO ________________________________________________

9. Moscow, October 2009 Non-commercial partnership “Self-regulatory organization “INTERREGIONAL UNION OF BUILDERS” (NP “SRO “IUB”) ________________________________________________ NP “SRO “IUB” is included in state register of self-regulatory organizations by decision of Rostechnadzor on 18 March 2009. Interregional Union of Builders is the first-rate self-regulatory organisation of constructors in Russia. Aggregate income of IUB members exceeds 500 milliard r. Aggregate personnel quantity exceeds 150 000 persons. At 21 October 2009 IUB has 284 members – construction companies from Russia, Europe, CIS, and 134 candidate companies. Compensatory fund of IUB exceeds 85 million r.

10. Moscow, October 2009 Head management of NP “Self-regulatory organization “Interregional Union of Builders” ________________________________________________ President of IUB Efim Basin, Chairman of the Committee of Russian Chamber of Commerce and Industry for construction, housing and communal services. Councilor for housing construction under the Chairman of Council of the Federation, member of Ministry of Regional development board, chief director of LLC “Corporation Engtransstroy”. On 16 July 2009 was elected as a Chairman of organizing committee of preparation for all-Russian congress of construction SRO. The Congress will take place on 10 November 2009.

11. Moscow, October 2009 Construction turnover less than 100 million r. – small-scale enterprises 100 million r. – 1 milliard r. – medium-sized enterprises 1 milliard r. – 5 milliard r. – large-scale enterprises Over 5 milliard r. – largest-scale enterprises.

12. Principle of specialization of contract construction organization as provided by NP SRO “IUB” statistics ________________________________________________ Average amount of construction access per 1 organization – 9 types of works and 117 types of production and service Moscow, October 2009

13. United database of members of self-regulatory organizations in construction fieldWWW.SRO-S.RU

14. Self-regulatory organizations register ________________________________________________

15. MOS.SRO-S.RU Official web-site NP “SRO “IUB”

16. Materials provided by NP “SRO “IUB” 8 bld.1, B.Sadovaya str., Moscow, 123001 MOS.SRO-S.RU Phone/Fax: (495) 650-17-18 (495) 650-17-19 www.sro-s.ru mos@sro-s.ru NP “SELF-REGULATORY ORGANISATION “INTERREGIONAL UNION OF BUILDERS” ________________________________________________ Moscow, October 2009