Building Sustainable Growth StrategiesDeloitte’s Emerging Markets & Infrastructure Project Services

- 2 -

Current projects

Past projects

Since 1994, EM specialists have delivered over $3.5B in consulting and advisory services to U.S. and

international donor, government, non-profit and commercial clients in over 100 countries.

Sub-Saharan Africa

Ghana

Kenya

Liberia

Malawi

Mozambique

Nigeria

Rwanda

South Sudan

Tanzania

Middle East/

North Africa

Cyprus

Qatar

Jordan

Saudi Arabia

Tunisia

WBG

Afghanistan

ASEAN

Bangladesh

Indonesia

Philippines

Pakistan

Asia-Pacific

Europe / EurasiaArmenia

Bosnia

Azerbaijan

Georgia

Kazakhstan

Latin America

Central America

Guatemala

Honduras

Jamaica

Kosovo

Kyrgyzstan

Tajikistan

Uzbekistan

As of 2014

Deloitte ConsultingOver 40 Emerging Market Projects Ongoing or Completed since 2014

© Deloitte & Touche LLP and affiliated entities.

Deloitte Infrastructure & Capital ServicesHelping Private & Public Sector Clients in Emerging Markets

Our Impact

• Improve return on client capital investment

• Manage project to success

• Achieve intended outcomes

• Cultivate client staff skills & know how

.

• Strategy

• Planning

• Financing

• Transaction

assistance

• Project Mgmt

• Reporting &

Compliance

Governance

• Process

Optimization

• Skills & Training

• Wind up

1. Strategy & Planning

2. Execution / Implementation / Construction

3. Commissioning and Handover

4. Operation and

Maintenance

5. Post Project Completion

Review

6. De-commissioning

Transaction Planning

& Execution

Business Strategy &

Planning

Legal & Regulatory

FrameworkManagement &

Operations

Our Role

Advise across all phases of the lifecycle:

© 2015. For information, contact Deloitte Tohmatsu Consulting LLC.

4 モンゴル・ウランバートル市への日本の支援状況

Pollution

Dust and air-borne particulate pollution

(2.5μm & 10μm class air-borne particles)

big concern

Need to reduce environmentally unsound

waste disposal and the dumping of waste

into rivers brought about by increased

tourism

Air

Pollution

Sources

① 3 Coal burning electric plants

② Over 180 coal burning heating boilers

③ Over 1000 Coal-fired mini-hot water

heaters

④ Over 13,000 wood stoves burning coal

Japan –

Mongolia

Cooper-

ation

Dec 2011, Environmental Cooperation MoU

signed

Mongol Ecotourism Promotion Support,

Phase 2 of JICA’s Ulaanbattar Air Pollution

Countermeasures Assistance Program is

currently underway

Bilateral

Policy

Talks

Since 2007, meaningful dialog and information

exchange regarding both countries’

environment policies & issues

Overseas

Aid

Program sponsors today include JICA (JPN),

World Bank, ADB, EBRD, Millenium Challenge

Account, GIZ (DEU)

Partnering to Tackle Ulaanbaatar’s Economic & Environment IssuesRapid population growth and increased automotive use contributing to

serious dust and air-borne pollution

JICA Aid Projects

Strengthen Air Pollution Countermeasures

by assisting skills development of

personnel in City Gov’t & other agencies

Goals

Ulaanbattar Air Pollution Countermeasures

Assistance Program

March 2010～March 2013 (Phase 1)

December 2013～June 2017 (Phase

2)

Performed

Ulaanbataar Air Quality OfficeCounter-

part

Ministries of Mineral Resource &

Energy, of Nature, Environment &

Tourism, and of Finance

Partners

Small & Med. Business Dev. & Env. Conservation Two-

Step Loan Project (Yen-based Loan)

Contribute to sustainable growth by

integrating environmental protection into

the long-term lending program for small &

medium size business with an emphasis on

reducing pollutant emissions

Goals

2006 ~¥29.8 billion (~USD$298m)

2010 ~¥50.0 billion (~USD$500m)Loans

Source: JICA Project Website, compiled by DTC (12 APR 2015) ($1=¥100)

Issues

© 2015. For information, contact Deloitte Tohmatsu Consulting LLC.

Look at ways to reduce Ulaanbaatar’s carbon footprint

using state-of-the-art technologies

Project Feasibility Studies for Renewable Energy

Schemes

Assistance with setting up and managing state-of-the-

art green energy technologies

Innovative ways to use waste materials and sewage

to cultivate bio-gas for energy production

Deloitte’s broad array of skills and capabilities as well as

our global network of experts can assist in all stages of

planning and implementing greenhouse reduction

programs, waste reduction projects, renewable energy

schemes and related environmentally sound energy and

business development efforts

Assisting Ulaanbaatar’s sustainable growthDeloitte’s diverse, highly skilled network of professionals can help

Research

and

Development

(R&D)

Strategy

Develop

ment

GHG

Impact

Analysis

Program

Evaluation

Technology

Adoption

Renewable

Energy

• Biomass

• Solar

• Wind

• Geotherm

al

• Others

Energy

Modeling

Energy

Efficiency

• Transport

ation

• Appliance

• Building

• EMS

• Others

Program

Administr

ation

Survey Focus Areas

Relevant Past Projects

Assisted strategy development and adoption of

green technologies to prevent global warming

– Conducted survey and created database of overseas and

domestic green technologies development projects

– Researched & analyzed overseas and domestic green

technology adoption and commercialization strategies

– Energy Impact Simulation for Assessing Technologies

• Forecast implementation potential and impact using

various statistical data sources

• Life Cycle Assessment (LCA) for greenhouse gas

reduction as well as economic analysis

– Mid- to long term technology adoption feasibility studies

and road maps for commercializing or otherwise promoting

adoption of green technologies

Planning renewable energy schemes for rural and

non-urban areas

– Planning and policy development for rural and non-urban

energy planning, regional promotional planning, and global

warming countermeasures

– End-to-end planning and implementation for Bio-fuel

production, conversion, distribution systems

Capacity Building for Carbon Management

– Assisted the Cabinet Office in model project of capacity

building for carbon and energy management

– Developed training material and strengthened awareness

of businesses regarding carbon management

- 6 -

WITH THIS OFFERING LEADERS CAN:

Analyzed current gaps in the

tourism cluster and related

ecosystem

Launched an international

survey of tourists to

understand the market and

prioritize attractive segments

Established a unique brand

positioning of South Africa

viz-a-vis high-priority

segments

Supported marketing and

communications

OUR ROLE

SPOTLIGHT: Building South Africa’s Brand in Tourism

Deloitte Monitor partnered with

South Africa Tourism to drive

dramatic growth in the

nation’s tourism cluster

following a declining trend.

Behind this objective of

increased arrivals was an

understanding of the tourism

cluster’s multiplier effect for

employment, foreign investment

and local entrepreneurship.

OBJECTIVE

Identify key market opportunities and white spaces in high-potential value chains

Enable rapid turnaround or growth of clusters

Foster innovation and efficiency improvements across the value chain

Generate high-value employment opportunities for their populations

Unlock and activate demand for the region’s goods or services

Millions of Tourism Arrivals,

South Africa (1999-2009)

Within two years of a OUR

ROLE, South Africa reversed the

decline and grew tourism arrivals

by 12%.

9.99.69.1

8.47.5

6.76.56.45.75.85.95.7

200320022001200019991998 200920082007200620052004

IMPACT

Deloitte Infrastructure & Capital ServicesCase Study: Building Strong Value Chains

- 7 -

WITH THIS OFFERING LEADERS CAN:

Prioritized clusters in which

Brunei could competitively

attract FDI

Analyzed current “leakages”

in the foreign investment

decision-making process

Developed business plans for

investor attraction

IMPACTOUR ROLE

SPOTLIGHT: Attracting Foreign Direct Investment in Brunei

Brunei Darussalam had faced a

challenge of economic

diversification outside of a

thriving oil and gas sector.

In 2004, the country’s Economic

Development Board engaged

Deloitte Monitor to develop a

robust strategy and attraction

program for FDI-led economic

diversification.

OBJECTIVE

The UN Conference on Trade

and Development ranked Brunei

as a Front Runners in Investment

Performance. Brunei also

leveraged Deloitte Monitor’s work

to target investment in key

clusters

Align FDI strategies with economic development priorities for the region

Identify key growth industries in which the region can compete for investments

Maximize return in terms of the volume and structure of FDI infows through a

targeted FDI-attraction campaign

Activate new investments by leveraging the power of global networks

Illustrative Segmentation, Tourism Investors

Deloitte Infrastructure & Capital ServicesAttracting Foreign Direct Investment

© 2015. For information, contact Deloitte Tohmatsu Consulting LLC.

Project

Outline

Discussions

Regional

Gov’t

Developing

Nation Sister City

8

Environment & Energy Project Funding SchemesFacilitate linkages with Japanese government agencies to devise environmental pollution control measures

Central Government Linkage Local Government Assistance Schemes

Bilateral Credit System (JCM) Infrastructure

Development

Bilateral Commission approves

MRV Methodology

Japan MongoliaExport of greenhouse gas

reduction technology-related

products, systems and services

and infrastructure

Japan extends credit based

on greenhouse gas

emissions reduction and

absorption performance

Extend

credit for

meeting

emission

targets

Task planning & operational support

Support to Mongolian agencies and

project managers

Feasibility Studies & organizational aid

Conduct

MRV

Envisioned

Activities

Reduce

green-

house

gas

Project Type # Project Achievements

Project

Equipment

Assistance

1Upgrading and replacing existing units with high

efficiency heating boilers

Large Project

Feasibility

Study

3

• Feasibility studies for JCM Support Schemes

in Mongolia

• Ulaanbattar electric grid request for proposal

planning and design

• Urban area electric transmission system

expansion feasibility studies

Project Studies,

Feasibility

Studies

10

Feasibility study of project to achieve CO2emissions reduction by substituting coal ash for

cement

City-to-City Assistance Scheme

Source：Ministry of Environment

「平成27年度環境省概算要求主要新規事項等の概要」,

Compiled by DTC (12 APR 2015)

Project

TypeCity Project Achievements

JICAAsahikawa,

Hokaido

Urban Development Capacity Building Project

Technical Assistance for Urban Development

in Extreme Cold Climates

JETRO

JICA

Cabinet

Secretaria

t

Local

Lead

ConsultantProducers

Planning,

Execution &

Organization

Discussions

Strategy, Implementation,

Policy &

Coordination with involved

agencies

Overseas

Base

Central

Gov’t of

Japan

Discuss

Scheme

Pro

j. Ou

tline

Dis

cu

ssio

ns

Info Exchange

Real World Examples Real World Examples

Tech.

Transfer

discussions

9

Questions?

© 2015. For information, contact Deloitte Tohmatsu Consulting LLC.10This document, and the information contained herein, is confidential. In this document, the term "Deloitte" refers to Deloitte Touche Tohmatsu Limited member firms and the term

"Deloitte Network" refers to DTTL and its member firms.

- 11 -

Services for Emerging Market ClientsCross-function approach beyond infrastructure & Capital Projects

Includes broad range of strategy, policy advice, transaction support and capacity-building services

Economic

Governance

• National economic governance

• Macroeconomics

• Public sector financial

management

• Tax policy

• Revenue administration

• Financial sector development

• Central bank strengthening

• Customs administration

• Business enabling environment

• Regulatory reform

• Trade policy

Private sector

development

• Regional competitiveness

• Industry clusters and value chains

• Agriculture and food security

• Trade facilitation

• Investment promotion

• Special Economic Zones

• SME development

• Market-based solutions

• Bottom of the Pyramid strategies

• Constituency engagement

• Social innovation

• Innovative finance

• Partnerships and alliances

• Entrepreneurship, innovation

Democracy

and

Governance

• Municipal and local finance

• Local governance

• Local economic development

• Community development

• Anti-corruption

• Government service delivery

• Public sector reform

• Government integrity

• Justice systems

• Legislative strengthening

Global Health

• Health systems strengthening

• Health care finance

• Health supply chain management

• Human resources for health

• Healthcare service delivery

• Public health policy and

economics

• Pensions and social safety

systems

Infrastructure

&

sustainability

• Energy, including clean energy

• Energy efficiency

• Climate change mitigation/

adaptation

• Clean tech

• Transportation

• Real estate and housing

• Urban development

• Public-private partnerships

- 12 -

Multi-use Technopolis, Kenya

Background. The Kenyan government is seeking to scale up its nascent IT services sector thru development of large scale “technopolis” SEZ in Athi River

Activities. Deloitte conducted a feasibility study of the SEZ project and evaluated potential developer and tenant demand for the project. Key tasks undertaken included:

Evaluation of comparative and competitive advantages

Definition of market potential and identification of high value activities that can be attracted

Evaluation of existing physical plant and facilities

Preparation of a land use plan and zoning master plan

Development of a virtual architectural model

Preparation of a priority list of infrastructure improvements

Financial modeling and analysis

Regulatory and institutional review of Kenyan trade and investment policy & institutional environment

Comparative analysis of SEZ policy, legal and institutional and management frameworks

Industrial District, Uruguay

Background. Canelones city in Uruguay has become a

major location for FDI in a wide range of manufacturing and

support services. Deloitte was selected to assist in the

development of a new industrial district to facilitate the

economic transformation of the area.

Activities. Deloitte assisted in developing a vision and

business strategy for the project. Key aspects of our

analysis included:

Locational and site analysis

Labor and socio-economic assessment

Analysis of industrial sectors and definition of

demand; identification of potential user requirements

Definition of strategic concept and business model of

an industrial district

Formulation and evaluation of investment projects

Financial and economic rate of return analyses

Implementation plan

Deloitte Infrastructure & Capital ServicesPast Project Examples