April 27, 2004

April 27, 2004April 27, 2004Getting from Proposals to Deals:

The GE Experience in Kazakhstan

R. Michael GadbawR. Michael Gadbaw

Vice-President andVice-President andSenior CounselSenior Counsel

International Law & International Law & PolicyPolicy

General ElectricGeneral Electric

GE International has been present in Kazakhstan since 1994.

GE history goes back even longer first GE generators were delivered to Kazakhstan during the WWII

Today, with a regional liaison office in Almaty handling GE’s key business in Kazakhstan, Kyrgyzstan, and Uzbekistan, GE is actively pursuing projects in both public and private sectors in the region.

GE presence in KazakhstanGE presence in Kazakhstan

Starting Core Built GE Diesel-Electric Skid

Installed SkidFinished Locomotive

Modernization: Success for Full Width TE10Modernization: Success for Full Width TE10

GE Transportation Systems GE Transportation Systems

Agreement with Kazakhstan Temir Zholy

54 2TE-10 locomotive modernization kits: expanding locomotives life by 15-20 years

with US Export Import Bank and ABN Amro

Lessons Learned:Listen to the customers

Financing is critical

Best technology fit at the best price

TE10 Mod. – MPS Performance

• Fuel Consumption: 196 g/kWhr 7% - 15% Improvement

• Lube Oil Consumption: 0.2 – 0.4% 80% Improvement

• Adhesion: 24% Capability 7.5% Improvement (Motor Limited)

• MSA Maintenance Cost Reduction 17% Cost Reduction

• 1 Engine Overhaul / Life Extension (2 Overhauls For Competition) 13% Cost Reduction

• Reliability: 2 FLY 67% FLY Reduction

TE10 Modernization – GE Technology

BrightStarDiagnostic Display Alternator

7FDL 12EFI Engine

• Rectifiers & Equipment Blower• Cooling System – AutomaticWinterization Shutters

• Oil Cooler• Air Compressor

Fully Compliant With MPS Spec.

TE10 Modernization – GE Technology

BrightStarDiagnostic Display Alternator

7FDL 12EFI Engine

• Rectifiers & Equipment Blower• Cooling System – AutomaticWinterization Shutters

• Oil Cooler• Air Compressor

Fully Compliant With MPS Spec.

GE Transportation Systems: Technology & Performance GE Transportation Systems: Technology & Performance

GE Oil & GasGE Oil & Gas

KARACHAGANAK - KPOFR6/B GeneratorCC Gas TurbineREC.COMPR.Oil and Gas Coolers 5Yrs O&M CSA ON NP FLEET; MAINTENANCE AGREEMENT ON N.9 BORSIG COMPR. AND N.2 KNOX WESTERN COMPRESSOR

URALSK AND CIGA C.S.FR3 Generator

KASHAGAN - KCOFR5/D GeneratorCC Gas TurbineREC.COMPR.Oil and Gas Coolers

TENGIZ - TCOFR5/D GeneratorCC Gas TurbineRECIPS.COMPR.OIL AND GAS COOLERSFR3 Generator + CC (Booster Compressor)

Tengiz Project expansion and Service Agreement

Kashagan Oil field development

Kashagan Service Agreement

Central Asia Gas Pipeline Refurbishment

Uralsk and CIGA FR3’s Modernization

Tengiz Project expansion and Service Agreement

Kashagan Oil field development

Kashagan Service Agreement

Central Asia Gas Pipeline Refurbishment

Uralsk and CIGA FR3’s Modernization

Future opportunities for GE Oil & Gas in the areaFuture opportunities for GE Oil & Gas in the area