JBIC’s Engagement to Kyoto Mechanisms

1. JBIC’s Engagement to Kyoto Mechanisms April 2004 Japan Bank for International Cooperation (JBIC) Representative Office in Paris

2. Agenda １．JBIC at a Glance ２．JBIC and GHG Pollution Prevention Projects ３．JBIC’s Engagement to Kyoto Mechanisms JAPAN BANK FOR INTERNATIONAL COOPERATION

3. (1) Organization • Establishedin October 1999 by the merger of : • The Export-Import Bank of Japan (JEXIM: established in 1950) and • Overseas Economic Cooperation Fund, Japan (OECF: established in 1961) • (2) Purpose • Promotion of Japan’s international trade and other international economic activities • Stabilization of the international financial order • Economic and social development and/or stability of developing areas • (3) Operations 1. JBIC at a Glance • International Financial Operations • (Quasi-commercial Financing) • Export Loan • Overseas Investment Loan • Untied Loan • Equity participation • Overseas Economic Cooperation Operations(Official Development Assistance) • ODA Loan JAPAN BANK FOR INTERNATIONAL COOPERATION

4. (4) Outstanding Loans, etc JBIC Total $181.2 billion (Billion US$) as of March 31 2003 (5) Relationship with Morocco 160bil Yen of ODA Loan for 21 Development Projects ODA Loan Commitment (Million Yen) (as of March 31 2004) JAPAN BANK FOR INTERNATIONAL COOPERATION

5. (6) Overseas Network (26 Representative Offices) [Asia]Beijing, Hong Kong, Bangkok, Hanoi, Jakarta, Kuala Lumpur, Manila, Singapore, Colombo, Dhaka, Islamabad, New Delhi, Sydney (13) [Europe] Moscow, Frankfurt, London, Paris (4) [Africa] Cairo, Nairobi (2) [North America]New York, Washington (2) [South America]Bogota, Buenos Aires, Lima, Mexico City, Rio de Janeiro (5) JAPAN BANK FOR INTERNATIONAL COOPERATION

6. 2. JBIC and GHG Pollution Prevention Projects JBIC is actively supporting projects to alleviate GHG effect through financing operations, for example (1) Renewable Energy • Northern Luzon Wind Power Project (Philippines,ODA loan) • Upper Kotmale Hydropower Project (Sri Lanka,ODA loan) (2) Natural Gas • Natural Gas-Fired Combined Cycle Power Plant Project (Mexico,Overseas investment loan) • Natural Gas-Fired Combined Cycle Power Plant Project (Vietnam,Overseas investment loan) • Beijing Environment Improvement Project (China, ODA loan) • Severnaya Natural Gas-Fired Combined Cycle Power Plant Project Ⅱ(Azerbaijan,ODA loan) JAPAN BANK FOR INTERNATIONAL COOPERATION

7. (3) Energy Saving/ Energy Efficiency • Rehabilitation of Coal-Fired Thermal Power (Co-generation) Plant Project (Romania, Export loan) • LD Gas Recovery System Project (Brazil, Export loan) • Shaanxi Province Xian Co-generation Project (China, Export loan) (4) Forest Conservation • Sustainable Environmental Management Project in Northern Palawan (Philippines, ODA loan) • Punjab Afforestation Project (Ⅱ), Rajasthan Forestry and Biodiversity Project (India, ODA loan) • Gansu /Inner Mongolia Afforestation and Vegetation Cover Project (China, ODA loan) JAPAN BANK FOR INTERNATIONAL COOPERATION

8. 3. JBIC’s Engagement to Kyoto Mechanisms (1) JBIC’s contribution to Prototype Carbon Fund (PCF) • Objective: Accumulation and dissemination of know-how for handling CDM/JI projects • Committed $10 million along with 8 Japanese companies (May 2000) • Only JBIC contributed to PCF from public sector in Japan • Engaging actively as a member of Participants’ Committee • Chile Chacabuquito (hydropower) Project achieved 112,000 tons of CO2 VER in total after almost one year of operation (June 2003) JAPAN BANK FOR INTERNATIONAL COOPERATION

9. (2) Financial Support for CDM/JI Projects: Advantages of JBIC’s financing for CDM/JI Projects • Various financing tools for projects in developing countries • Strong relationship with host country (government agencies and private sector) built through years of financing operations and our overseas networks of 26 representative offices • Extensive knowledge and know-how in dealing with environmental projects in developing countries • Accumulation of experience through investment in PCF JAPAN BANK FOR INTERNATIONAL COOPERATION

10. (2) Financial Support for CDM/JI Projects: Potential CDM project in North Africa • Zafarana Wind Power Project (Egypt, Dec.2003) Loan Agreement was concluded in Dec. 2003. The necessary procedures for the application of the CDM have already been started. • Photovoltaic Power Generation Project (Tunisia) Projects are under preparation with Technical Assistance by JBIC. JAPAN BANK FOR INTERNATIONAL COOPERATION

11. (3) Establishment of Japan Carbon Fund (JCF) • Objective: Purchasing GHG emission reduction credits from projects abroad to contribute to meeting the Japanese target of GHG emission reduction under the Kyoto Protocol • Participants: Japanese corporations • Targeted amount: About 10 bill Japanese yen • Term: Until 2012 subject to consent of investors • Eligible project: CDM/JI projects (including the projects considered to be validated as CDM/JI projects with high probability). • Method for purchasing credits: Conclude E.R.P.A. (Emission Reduction Purchase Agreement) with project owners JAPAN BANK FOR INTERNATIONAL COOPERATION

12. Contribution through JCF/JBIC 26JBIC Worldwide Representative Offices Strong Relationship Financial Support HostCountry CDM / JIProject Credit Payment Commercial banks Japan Carbon Fund (JCF) JBIC Investment Investment Other Japanese Investors JAPAN BANK FOR INTERNATIONAL COOPERATION

13. ContactTokyo headquarter: Division 5 Corporate Finance Department jcf@jbic.go.jp Paris Office: Akika ICHIKAWAa-ichikawa@jbic.go.jp Thank you !