InternationalPartner in Natural Resources

Marrakech, April 30, 2004

Margrit Nzuki

NOT AN OFFICIAL UNCTAD RECORD

2

Content

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

3

International 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

4

Our 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

5

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

6

Advantages 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

7

KfW Group - Overview

Established by law in 1948

Shareholders 80% Federal Republic20% 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)

8

KfW Group - New Brand Structure

Investment FinanceGermany and Europe

Financial Cooperation

Export and Project Finance

Advisory andOther 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

9

KfW 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, into a legally

independent subsidiary without federal guarantee and government privileges KfW IPEX-Bank

Implementation of EU Understanding of March 2002

10

KfW Group - New Commitments 2003Total 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

11

KfW IPEX-Bank

12

Portfolio Total Volume as of Dec. 31, 2003: € 66.4 billion*

* incl. domestic project/structured finance

Rail & Road15%

Power, Renewables and Water

19%

Shipping15%

Aviation20%

Telecom-munications/New Media

6%

Manufacturing Industries, Commerce, Health

Air- and Seaports,

Construction Industries

3%

Basic Industries &

22%

13

New Commitments 2003 Total Volume as of Dec. 31, 2003: € 11.4 billion*

* incl. domestic project/structured finance

Rail & Road1.7 bn

Power, Renewables and Water

1.9 bn

Shipping1.7 bn

Aviation1.7 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

14

KfW IPEX-Bank

PARTNER IN NATURAL RESOURCES FINANCINGPARTNER IN NATURAL RESOURCES FINANCING

15

KfW 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

16

KfW‘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

17

KfW‘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 IndustryShip Financing

18

2001 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 ApproachCommitments (Mio. EUR)

19

KfW IPEX-Bank Natural Resources

Financing criteriaFinancing 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)

20

KfW 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 board 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

21

X 1 a2 X 1 a3

Holger Apel (2548)Senior Vice President

Basic IndustriesTeam 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

PetrochemicalsPulp 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