Almaty Invest 2013 Almaty, Kazakhstan

1. Almaty Invest 2013 • Almaty, Kazakhstan December 3, 2013

2. About International Finance Corporation • Private-sector arm of the World Bank Group • Shareholders are 184 countries incl. Kazakhstan • Over 55 years of pioneering transactions • Investment banking advice • Lending and syndication: Commercial and sub-national • Asset management • Consultancy • $77.5bn in total assets (2013) • 3,400 employees across >100 countries • Full team based in Almaty specialized in implementing PPPs 2

3. Regional Presence and Experience Almaty Bishkek Tashkent Not shown: Moscow, Kiev, Minsk Tbilisi Dushanbe Baku • Yerevan Ashgabat Istanbul • Achievements • 62 closings including 10 in Southeast Europe and Central Asia (2003-13) • $48.8bn committed balance (FY2013) • $40bn in syndicated loans mobilized from >550 banks (FY2013) Bucharest Sofia Tirana Belgrade Zagreb 3

4. Sectors where PPPs could be implemented in Kazakhstan IFC has experience in all of these sectors! 4

5. Madinah Airport (Saudi Arabia, 2011) • Objective： • Expand Madinah airport without public financing • Results: • Mobilized $1.4 billion in investment • Precedent-setting gross revenue share: 54.5% • Estimated revenues to client: US$ 7 billion • LEED Silver: Best practice in energy efficiency • 8 million people with improved access to services • IFC’s Involvement: • Conducted due diligence • Prepared technical requirements and design specifications • Marketed opportunity to international investors • Managed tender process • Transaction Structure： • BTO structure – Ownership of asset in government hands • 25-year concession period • Bidding Process: • 10 firms submitted qualification applications • 4 consortia submitted bids • Consortium formed by TAV (Turkey), Al Rajhi (S. Arabia) and Saudi Oger (S. Arabia) selected • Concession agreement signed in October 2011 5

6. Bhubaneswar Street Lighting (India, 2013) • Objective： • Upgrade street lighting system of Bhubaneswar • IFC’s Involvement: • Conducted due diligence including baseline analysis • Prepared technical requirements • Marketed opportunity to investors • Managed tender process • Secured financing • Transaction Structure： • No investment from city • Guaranteed shared savings model • 15-year concession period • Bidding Process: • 1 international and several local firms submitted bids • ShaInvestments selected as winning bidder • Concession agreement signed in October 2013 • Results: • Mobilized $2.0 million in investment • Largest street lighting PPP in India • Guaranteed yearly savings for city: $150 thousand • 50% O&M costs • 5% energy costs • >14,000 lamps upgraded • 375,000 people with improved access to services • Reduction GHG emissions: 7,000 tones per year 6

7. New Cairo Wastewater (Egypt, 2009) • Objective： • Build, design, finance, operate and maintain a wastewater treatment plant in Cairo • Capacity: 250,000 m3/day • IFC’s Involvement: • Conducted due diligence • Marketed opportunity to investors • Prepared technical requirements • Managed tender process including prequalification • Coordinated financial closure • Transaction Structure： • BOT structure • 20-year concession period • Government pays fee with fixed and variable component • Bidding Process: • 10 international firms submitted applications, 7 prequalified • Egyptian-Spanish consortium (Orasqualia) selected as winning bidder • Project awarded in June 2009 • Results: • Mobilized $200 million in investment • Egypt’s 1st PPP • New wastewater treatment plant in line with international standards • 3 million people with improved access to services • Demonstration effect: Regional and international investors attracted to Egypt’s PPP market 7

8. Alexandria University Hospitals (Egypt, 2012) • Objective： • Design, build and operate 2 new specialty hospitals in Alexandria • IFC’s Involvement: • Conducted due diligence • Prepared bidding documents and technical requirements • Marketed opportunity to international investors • Managed tender process • Transaction Structure： • Responsibilities private operator: Build, finance, design, furnish, equip and maintain • 20-year concession period • Ownership of 2 hospitals transferred to State after concession period • Bidding Process: • 2 independent tenders organized • International consortium led by Bareeq Hospitals (Egypt) selected for both transactions • Results: • 2 hospitals (maternity and neurology services) and blood bank facility with combined 424-bed capacity. • Mobilized $225 million in investment • 1st health sector PPP in Egypt • 78,500 patients per year • 7.4 million people with improved access to services 8

9. Other Clinical Services (Romania, 2002) • Objective： • Renovate, equip, finance and operate 4 dialysis centers in Romania • IFC’s Involvement: • General review of Romania’s health service • Prepared bidding documents and technical requirements • Marketed opportunity to international investors • Managed tender process • Transaction Structure： • Bidders limited to 2 centers to avoid concentration • Bidding criteria: Maximum investment • Bidding Process: • 4 international companies submitted bids: B. Braun (Germany), Baxter (US), Fresenius (Germany) and Gambro (Sweden) • Results: • Mobilized $28.6 million in investment • Dialysis equipment modernized in all centers • Follow-on: 2 new dialysis clinics built before 2008 • Strict national standards created and applied to all centers 9

10. Almaty Parking (2009) • Objective： • Attract private investor/operator to manage combined on-street and off-street parking in Almaty • IFC’s Involvement: • IFC, World Bank and Akimat completed a Preliminary Project Assessment: • Analyzed structuring options • Recommended legislative changes • Estimated transaction costs • Assessed environmental impact • Recommendations on social/PR campaign • IFC presence may mitigate perceived political risk • Actual Time-line: • 2008-Sep MOU signed between Akimatand IFC • 2009-Apr Preliminary Assessment completed • Key Lessons: • Required legislative changes may significantly delay project implementation • Support from top decision-makers is critical for project success 10

11. Lessons Learned • Contact as many investors as possible • Share potential issues with investors upfront • Listen to what investors say and structure transaction accordingly • Rigid tender rules limit options to maximize benefits • Public entity should have realistic expectations • Fairness and transparency in tendering • Identical information sent to all bidders 11

12. Contact Details Ferran Vila Planas Associate Investment Officer PPP Advisory Services in Central Asia 41A Kazybek Bi Street, 1st FloorAlmaty 050100, KazakhstanTel.: +7 (727) 298 0586 ext 250Fax: +7 (727) 298 0584 Email: fplanas@ifc.org www.ifc.org/ppp Joseph Mik Investment Officer PPP Advisory Services in Central Asia 41A Kazybek Bi Street, 1st FloorAlmaty 050100, KazakhstanTel.: +7 (727) 298 0586 ext301Fax: +7 (727) 298 0584 Email: jmik@ifc.org www.ifc.org/ppp AknurJumatova Associate Investment Officer PPP Advisory Services in Central Asia 41A Kazybek Bi Street, 1st FloorAlmaty 050100, KazakhstanTel.: +7 (727) 298 0586 ext 249Fax: +7 (727) 298 0584 Email: ajumatova@ifc.org www.ifc.org/ppp SerikSharipov Investment Analyst PPP Advisory Services in Central Asia 41A Kazybek Bi Street, 1st FloorAlmaty 050100, KazakhstanTel.: +7 (727) 298 0586 ext 258Fax: +7 (727) 298 0584 Email: ssharipov@ifc.org www.ifc.org/ppp