International Partnership in Natural Resources

Slide1InternationalPartner in Natural Resources Marrakech, April 30, 2004 Margrit Nzuki NOT AN OFFICIAL UNCTAD RECORD

Slide22Content  Why chose international partners to finance Oil & Gas projects in Africa  Advantages  Requirements  KfW as your international finance partner  Our approach  Experience in Africa  Guideline for eligible projects and structural elements  Lessons learned  Contacts

Slide33International Partners  Providing Political support  Technical Expertise  Providing access to international capital markets  Allows for diversified lending base over coming local constrains  Resources projects are typically of a scale to large for local/regional banking market  Enhancing project creditability

Slide44Our Value Proposition We add value to our clients’ projects by:  Long-term lending reflecting our continuous support throughout the project cycle  In-depth knowledge of our clients’ markets based on our sector expertise gained over years  Tailor-made financing solutions meeting our clients’ needs  Fast and reliable commitment to our partners at early project stages  Strong underwriting capacity  Long-term partnership with our clients also in challenging markets & times

Slide55 Most extensive and decade-long experience with Euler-Hermes  Long standing experience in multi-sourcing transactions and established business relationships with all major European ECAs (e.g. ECGD, SACE, COFACE, Atradius, OEKB, Finnvera)  Dedicated in-house Credit Insurance Team, as internal advisor with regard to ECA/PRI/Private Insurer covered transactions (e.g. contacts, premia, maximizing inclusion of third country deliveries under ECA cover, etc.)  Frequent ECA-Agent mandates in multi-sourcing transactions  Cooperation agreements with a number of export financing institutions (ECGD, FIDE, SIMEST, JBIC, SEK, Vnesheconombank) complementing existing ECA reinsurance schemes -> „one stop shop“ financial packages (partially OECD minimum rates, i.e. CIRR) Multi-sourcing

Slide66Advantages and Features offered by your international partner Main Features  Loans are extended directly to buyers, investors, project companies or banks  Long-term loans in EUR, USD or other foreign currencies at attractive fixed or variable interest rates like CIRR  Experience with many different financing structures:   from export credits with state or bank guarantees to tailor-made project and lease finance  Expertise in the utilisation of diverse security instruments   ●  Insurance through ECAs like Hermes, ECGD, EDC et. al.   ●  Multilateral agencies (MIGA, EIB)   ●  Private risk insurance   ●  Specific German schemes like UfK / GKA

Slide77KfW Group - Overview Established by law in 1948 Shareholders  80% Federal Republic 20% Federal States Headquarter Frankfurt am Main Branch Offices Berlin, Bonn, Cologne (DEG) Liable Equity EUR 10.4 billion* Balance-Sheet Total EUR 315 billion* Rating AAA / Aaa Employees 3,600 *  figures as of Dec. 31st, 2003 (liable equity: KfW only)

Slide88KfW Group - New Brand Structure Investment Finance Germany and Europe Financial Cooperation Export and Project Finance Advisory and Other Services Promotion of housing finance, environmental and climate protection, education, infra- structure and the social sector Securitization Export and Project Finance Industry, transport infrastructure, tele- communication, natural resources, energy, environment Supporting the Federal Government in the privatisation of state- owned enterprises Other services Promotion of developing and transition countries Promotion of small and medium-sized enterprises, business founders, start-ups

Slide99KfW Group - New Law on KfW  Specification of KfW‘s  mandate concerning promotional activities  Clear and concise separation of promotional and  commercial business  Spin-off of  commercial export and project finance business  by December 31, 2007 ,   in to a legally independent subsidiary without federal guarantee  and government privileges    KfW IPEX-Bank Implementation of EU Understanding of March 2002

Slide1010KfW Group - New Commitments 2003 Total New Commitments: € 72.2 billion KfW Promotional Bank € 27.7 bn KfW Development Bank € 1.6 bn KfW IPEX-Bank € 11.4 bn KfW SME Bank € 9.1 bn Securitisations € 21.9 bn DEG € 0.5 bn

Slide1111KfW IPEX-Bank

Slide1212Portfolio Total Volume as of Dec. 31, 2003: € 66.4 billion* *  incl. domestic project/structured finance Rail & Road 15% Power, Renewables and Water 19% Shipping 15% Aviation 20%  Telecom- munications/ New Media 6% Manufacturing Industries, Commerce, Health Air- and Seaports, Construction Industries 3% Basic Industries                                 & 22%

Slide1313New Commitments 2003 Total Volume as of Dec. 31, 2003: € 11.4 billion* *  incl. domestic project/structured finance Rail & Road 1.7 bn Power, Renewables and Water 1.9 bn Shipping 1.7 bn Aviation 1.7 bn  Telecom- munications/ New Media 0.6 bn Manufacturing Industries, Commerce, Health Air- and Seaports, Construction Industries 0.7 bn Basic Industries                                 & 3.1 bn

Slide1414KfW IPEX-Bank PARTNER  IN  NATURAL  RESOURCES  FINANCING PARTNER  IN  NATURAL  RESOURCES  FINANCING

Slide1515KfW IPEX-Bank extends long-term loans to finance  exports of capital goods and related services  direct investments  projects to secure supply of natural resources which are of interest to the German economy and the European integration . KfW IPEX-Bank

Slide1616KfW‘s total West African Exposure Commitment and Outstanding Amounts (Mio. EUR)   Country       Commitment Outstanding          Ghana            573   487          Kamerun                       503                       463          Ivory Coast                        408                   366   Benin            299   259 Angola            241   239 Nigeria            240   188 Guinea            232   209 Namibia            168   132 Kongo              65     65 Gabun              26     26 Guinea-Bissau                             7       7 Total          2.762              2.441

Slide1717KfW‘s major involvement in Africa through the KfW Development Bank & KfW IPEX Bank KfW Banking Group Commitment in Western and Northern Africa in 2003 Tunesia 119 Mio. Kamerun 12 Mio. Ghana 29 Mio. Senegal 5 Mio. Angola 20 Mio. Benin 5 Mio.  KfW Development Bank Sectors   Infrastructure   Finance   Agriculture   Public Health  KfW IPEX Bank Sectors   Natural Resources   Telecommunication   Aviation   Industry  Ship Financing

Slide18182001 2002 2003  Natural Resources 69 Mio. - 59 Mio.  Telecommunications 23 Mio. - 16 Mio.  Aviation 5 Mio. 8 Mio. 5 Mio.  Ship Financing 7 Mio. - 48 Mio. Total 104 Mio. 8 Mio. 128 Mio. KfW IPEX  - Selective Approach Commitments (Mio. EUR)

Slide1919KfW IPEX-Bank Natural Resources Financing  criteria Financing  criteria  Stable cash flow  Financially strong, experienced sponsors  Established, stable legal system in the project country  Offshore account and completion guarantee  Compliance with high environmental standards  Minimum project size  Rich resource deposits  Tried and tested technology  Protection against political risk (if necessary)

Slide2020KfW IPEX-Bank Approval Procedure Project Finance 1.  Credit appraisal on the basis of a bankable feasibility study 2.  Start of loan negotiations (Term Sheet) 3. Management b oard decision 4.  If applicable, application for federal guarantee / ECA cover 5.  Supervisory board approval (> EUR 50 million) 6.  Decision on ECA cover 7.  Conclusion of contract

Slide2121X 1 a2 X 1 a3 Holger Apel (2548) Senior Vice President Basic Industries Team Assistant: Christina Komini (4778) Contacts Lars Oermann (3948) Martin Schubert (4486) Patrick Kreutzer (4246) N.N. N.N. Jochen Eichmann (1849) Dr. Stefan Glock (4733) Donata Kozinska (3642) Waltraud Wolff (2220) N.N. Ulrich Goretzki (2884) First Vice President Matthias Wietbrock (3522) First Vice President Petrochemicals Pulp and Paper, Building Material, Steel X 1 a1 Dirk Sindermann (2257) Margrit Nzuki (2474) Hartmut Troschel (2243) Dr. Victoria Hottenrott (3810) Stephan Pueschel (4649) Dr. Jan Klasen (2481) First Vice President Natural Resources, Oil & Gas