Q. Is it possible to submit objections before conclusion of the insurance contract concerned?

A.

Before conclusion of an insurance contract, when the project contract concerned has not yet been awarded officially, Objections Procedures could be abused and could result in impeding fair competition. In order to avoid such risks and disadvantages in competition with other foreign countries, objections are accepted only after the relevant insurance contract is concluded. If an outside person submits comments on non-compliance with the Guidelines to the Examiner before conclusion of the insurance contract, however, the following procedures will be taken so that an appropriate treatment will be given concerning social and environmental considerations: The Examiner will transfer the comments to NEXI's underwriting section and environment group, if necessary, and the underwriting section will then report to the Chairman and the Examiner on the results of its investigation. In addition, if an outside person makes a charge of significant non-compliance by NEXI with the Guidelines, NEXI will comprehensively take into account the magnitude of the impact of the project concerned on the environment and society, the possibility for the project to impact, and benefits of the project, based on report by the NEXI underwriting section. The Examiner may subsequently be asked to investigate the possibility of NEXI's non-compliance based on only the applicable part of the "Procedures for Objections." These procedures are within the scope of the Chairman's authority.