P.R. ChinaInstitutional Strengthening Of China Development BankCR. 3212/LN. 4473-CHATechnical Proposal China Development Bank Activity schedule20 Old BaileyLondonEC4MR 7 AN0171 438 3000 Telephone0171 438 1134 FacsimileMay 16, 2001Wang YangDeputy Chief, World Bank/ADB DivisionInternational Finance DepartmentChina Development BankNo. 29 Fuchengmenwai StreetBeijing, 100037 PRCDear Sir:We, the undersigned, offer to provide the consulting services for Institutional Strengthening Of China Development Bank in accordance with your Request for Proposal dated March 19, 2001 and our Proposal. We are hereby submitting our Proposal, which includes this Technical Proposal, and a Financial Proposal sealed under a separate envelope.If negotiations are held during the period of validity of the Proposal, i.e., before August 3, 2001 we undertake to negotiate on the basis of the proposed staff. Our Proposal is binding upon us and subject to the modifications resulting from Contract negotiations. We understand you are not bound to accept any Proposal you receive.Yours sincerely,Name and Title of Signatory: Mark CarawanName of Firm: Arthur AndersenAddress: xxx 2001 Arthur Andersen. All rights reserved.79Institutional Strengthening of China Development BankTABLE OF CONTENTS1. Firms references2. Comments and suggestions of consultants on the Terms of Reference and on data, services, and facilities to be provided by the Client3. Description of the methodology and work plan for performing the assignment4. Team composition and task assignment5. Time schedule for professional personnel6. Activity scheduleAPPENDICESAppendix I: Relevant services carried out in the last five years that best illustrate qualifications Appendix II: Curriculum vitae for proposed professional staff. China Development Bank Experience of our Firm1. Experience of our Firm1.1 Arthur Andersen eminently fulfils the requirements of this projectArthur Andersen has more than 70,000 personnel, with member firms in 382 locations in 81 countries that are committed to consistently exceed clients expectations by delivering services with a strong industry focus, superb technical competence, and a commitment to the professional values of integrity and objectivity. Arthur Andersen serves the market through a fully integrated organisation which comprised of separate practice entities organised under the laws of the country in which they are based - a unique structure that assures every client consistent, high-quality and timely service.In order to provide consulting services, advice and assistance in the institutional strengthening of China Development Bank (“CDB”), a firm must have extensive experience in development and implementation of business strategy, risk management, asset and liability management and the provision of accounting and auditing services for financial institutions. Equally important is experience and expertise in establishing effective IT infrastructure and training programs necessary to support the projects. Finally, a firm must have an in-depth understanding of China, its business activities, and the unique structure and function of Chinas economy. Arthur Andersen is a leader in providing assistance and advisory services to the banking and financial services industry. We have experiences in all aspects of banking processes including business strategy development, risk management, asset and liability management, IT advisory and the provision of accounting and auditing services, in developed and emerging markets including Asia, Eastern and Western Europe, the United States and the former Soviet Union.Our experience in China includes carrying out the first diagnostic review of one of the four state-owned banks, as well as providing consulting services to a significant number of banks.The section “Relevant services carried out in the last five years that best illustrate qualifications” in Appendix I provides detailed credentials of our firm and accordingly we do not intend to repeat these here. However, we would like to highlight that in 2000, we were appointed as the auditors of CDB to conduct audits on its financial statements prepared in accordance with International Accounting Standards. During the engagement we have also conducted a number of seminars to CDB on topics such as financial management, internal audit function and financial analysis skills. We have a relatively in-depth and exclusive understanding of CDBs business processes and internal control systems. Our extensive knowledge and strong business relationships with CDB enables us to understand the specific characteristics and needs of CDB and meet and exceed the requirements of this project.In addition to our extensive pr