A STRATEGY TO CREATE SUSTAINABLE A STRATEGY TO CREATE SUSTAINABLE ECONOMIC DEVELOPMENT IN BRUNEI DARUSSALAMECONOMIC DEVELOPMENT IN BRUNEI DARUSSALAM

John Perry, Chief Executive OfficerJohn Perry, Chief Executive OfficerThe Brunei Economic Development BoardThe Brunei Economic Development Board

Presentation to aPresentation to aRoundtable Seminar on FDI in Roundtable Seminar on FDI in

ASEANASEAN--Japan CEPJapan CEP2828thth –– 3030thth Sep 2004Sep 2004

The Brunei Economic Development BoardFDI Inflows 2003 (US$ Billion)

28Africa

- 33Central & Eastern Europe

- 57North America

- 3Latin America

13Asia

- 21EU

0 50 100 150 200 250 300 % change froma year ago

Source: UNCTAD, The Economist 25 Sept -1 Oct 2004

Presentation to a Roundtable Seminar on FDI in ASEAN-Japan CEP 28th – 30th Sep 2004

The Brunei Economic Development Board

Brunei DarussalamBrunei Darussalam’’s Value Propositions Value Proposition

““Brunei Darussalam is more than an investment Brunei Darussalam is more than an investment destination destination –– it is your it is your partnerpartner in pursuing business in pursuing business

opportunitiesopportunities””

Presentation to a Roundtable Seminar on FDI in ASEAN-Japan CEP 28th – 30th Sep 2004

The Brunei Economic Development Board

Brunei Darussalam Brunei Darussalam –– The DriversThe Drivers

Natural Resources – Gas

Strategic Location – Deep Water

Presentation to a Roundtable Seminar on FDI in ASEAN-Japan CEP 28th – 30th Sep 2004

The Brunei Economic Development Board

BEDBBEDB’’s Quantifiable Objectives Thru 2008s Quantifiable Objectives Thru 2008

US$ 4.5 billion New InvestmentsUS$ 4.5 billion New Investments

6,000 Permanent New Jobs6,000 Permanent New Jobs

Presentation to a Roundtable Seminar on FDI in ASEAN-Japan CEP 28th – 30th Sep 2004

The Brunei Economic Development Board

PMBPMBSG LIANGSG LIANG

The Two Pronged StrategyThe Two Pronged Strategy

““Two PoolsTwo Pools””

Business ClustersBusiness ClustersDevelopmentDevelopment

Presentation to a Roundtable Seminar on FDI in ASEAN-Japan CEP 28th – 30th Sep 2004

The Brunei Economic Development Board

PMBPMB

The Two Pronged StrategyThe Two Pronged Strategy

PETROCHEMPETROCHEM

PORTPORT MONITORMONITOR

““Two PoolsTwo Pools””

PROCESS

SG LIANGSG LIANG Business ClustersBusiness ClustersDevelopmentDevelopment

Presentation to a Roundtable Seminar on FDI in ASEAN-Japan CEP 28th – 30th Sep 2004

EPZ

The Brunei Economic Development Board

PMBPMB

The Two Pronged StrategyThe Two Pronged Strategy

PETROCHEM

PORT

““Two PoolsTwo Pools””

PROCESS

SG LIANG

HospitalityHospitality&&

TourismTourism

BusinessBusinessServicesServices

TransportationTransportation&&

LogisticsLogistics

FinancialFinancialServicesServices

Presentation to a Roundtable Seminar on FDI in ASEAN-Japan CEP 28th – 30th Sep 2004

EPZ

Total1 SG LIANG Investment FDI HMG

1.1 Aluminium Smelting MOU 1,500 1,500 - 900 2,7001.2 Elastomers MOU 400 400 - 350 1,2001.3 Methanol Finals 300 240 60 120 3001.4 Ammonia/Urea Finals 600 480 120 205 5001.5 Utilities 500 500 - 150 2001.6 Export Facility 300 300 - 150 2001.7 Sg. Liang Infrastructure 100 - 100 150 200

2 PMB (global port) MKT 1,500 450 1,050 4000 4000Totals 5,200 3,870 1,330 6,025 9,300

Ongoing 300 300 - 500 500

Under review 35 35 - 300 300

Grand Total 5,535 4,205 1,330 6,825 10,100

FDI Initiatives (Monitor)

New Business

PROJECTS TOTAL JOBS

Core Strategy

DIRECT JOBSPOTENTIAL INVESTMENTS (US$ Million)STATUS

The Brunei Economic Development BoardThe Brunei Economic Development BoardFDI StatusFDI Status

Presentation to a Roundtable Seminar on FDI in ASEAN-Japan CEP 28th – 30th Sep 2004

DEVELOPMENT OF THE SUNGAI LIANG INDUSTRIAL PARK

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

20112003 2004 2005 2006 2007 2008 2009 2010

AMMONIA/UREA PLANT (INCITEC/MC/WESTSIDE)MOUProject Evaluation / SelectionUtilities NegotiationsFIDBuild & Commission

20 MW

METHANOL PLANT (MGC/ITOCHU)MOUProject Evaluation / SelectionUtilities NegotiationsFIDEPC ContractBuild & Commission

20 MW

POWER BUILD

SG LIANG MASTER PLANNERTenders for MasterplannerAppointment of MasterplannerSite MasterplanTenders for site constructionJetty - Build & CommissionPower Plant - Build & CommissionBasic Utilities & InfrastructurePublic Consultation

CRITICAL PATH PROJECTSGas Reserves ValidationReal Options Analysis

680 MW600 MW120 MW 760 MW20 MW 520 MW100 MW

Gas ReservesIncluding FeedstockEstimated 2.5 TCF

Thru 25 years

Critical Deadline Activity Duration FID Final Investment Decision Production Deadline

Note: (1) Power Requirement (in MW) does not include gas required for feedstock

xx MW Power Requirement

ALUMINIUM SMELTING (ALCOA)MOUPhase 1 - MOUPhase 2 - MOUUtilities NegotiationsFIDBuild & Commission

400 MW

ELASTOMERS (ACI)MOUUtilities NegotiationsFIDPlant 1 (build & commission)Plant 2 (build & commission)Plant 3 (build & commission)Plant 4 (build & commission)

80 MW160 MW

320 MW240 MW

Project Planning – PMB – Global Competitive Port

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Phase 1 - FEASIBILITYFeasibility Study (Halcrow)ReportReview and ApprovalPhase 2(a) - MARKETINGAppoint Technical Expert (Halcrow)Prepare Marketing BrochureMarket to Prospective InvestorsPhase 2(b) - CONSORTIUMEstablish Consortium (Port & EPZ)Establish Port Development Authority and EPZ AuthorityDevelop Master Plan (Port & EPZ)Prepare Bidding/Procurement DocumentsSite Planning (Port & EPZ)Phase 3 - CONSTRUCTIONConstruction (Port & EPZ)Port & EPZ Commission

Critical Deadline Activity Duration

2007 20082003 2004 2005 2006

Brunei Darussalam Brunei Darussalam –– Open for BusinessOpen for BusinessA Kingdom of Expected Treasure