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									Department of investment development and
  national projects of Irkutsk region
     Administration of Irkutsk region




      Irkutsk region. Investor’s guide




                  2008
                 Irkutsk
                                                              Reference
  Address of interim appointed ...................................................................................................... 4
  Governor of Irkutsk region I.E.Esipovskiy ................................................................................. 4
  Investment potential of Irkutsk region......................................................................................... 5
  Infrastructure and institutional conditions for investment development ................................... 12
     Transportation potential ......................................................................................................... 12
     Telecom capabilities .............................................................................................................. 12
     Labor potential ....................................................................................................................... 13
     Financial system .................................................................................................................... 13
     Investments ............................................................................................................................ 13
     Forming a favorable investments climate.............................................................................. 14
Investment projects of Irkutsk region ...... Error! Bookmark not defined.17
Commercial real estate, tourism ........................................................... 17
  Creation of eco-technopark and tourism&recreaction complex of international class on the
  basis of Irkutsk botanic garden .................................................................................................. 17
  Sports and recreation complex “Angara Park” of regional supplementary education institutions
  “Children’s sports school “Russian downhill skiing school Baikal” located at 6 km of
  Alexandrovskiy highway ........................................................................................................... 19
  First business block «Irkutsk – City» ........................................................................................ 21
  Congress-center as part of “Sibexpocenter” .............................................................................. 23
  Construction of new shipbuilding yard for construction of comfortable yachts ....................... 24
  VIP-Baikal-center ...................................................................................................................... 25
  Tourist base “Red Square” ........................................................................................................ 26
  Complex “Russian California” .................................................................................................. 27
  Association of near-Baikal regions ........................................................................................... 29
  Trade and recreation center “Fortuna City Mall”, Irkutsk......................................................... 30
  Multifunctional Administrative-Office Center, Irkutsk............................................................. 31
  Hotel and recreation center, Irkutsk .......................................................................................... 32
  Block of commercial property, Irkutsk .................................................................................... 33
  Multifunctional center «Jam Mall» ........................................................................................... 34
  Aqua-recreation center .............................................................................................................. 35
  Sports and leisure recreation center ........................................................................................... 36
  Center of winter extreme sports................................................................................................. 37
Wood processing enterprises ............................................................... 39
  Creation of housing construction complex, including production of structural glued beams,
  OSP construction boards and wood armed slabs under “Dendrolight” technology .................. 39
  Kuytun versatile house construction integrated plant................................................................ 41
  Lumber production plane of 25 thou. cu.m. per year producing capacity. ................................ 43
  Wood processing integrated plant ............................................................................................. 44
  Enterprise of deep wood processing .......................................................................................... 46
Production of construction materials ................................................... 47
  Construction and operation of brick plant in municipality “Bayanday district” ....................... 47
  «Uniconcrete»............................................................................................................................ 49
  Organization of glass bottles manufacturing or manufacturing of other glass goods ............... 51
  Set-up of welding electrodes production in East Siberia with use of local raw material .......... 53
Production of mineral resources........................................................... 55
  Development of Nepskoye field of potassium sales in Katanga district ................................... 55
  Savinskoye magnesite deposit in Tcheremkhovo district ......................................................... 57
  Ishideyskoye fossil coal deposit in Tulun district ..................................................................... 59
  Bolshetagninskoye rare metals deposit...................................................................................... 60
                                                                          3
  Kapaevskoye deposit of iron ore in Ust-Ilimsk district ............................................................. 61
  Neryundinskoye iron ore deposit in Ust-Ilimsk district ............................................................ 62
  Setting-up enterprise to produce quarzites on the basis of Uvatskoye deposit ......................... 63
Infrastructure projects ........................................................................... 65
  Creation and development of single heat supply system for cities of Irkutsk and Angarsk...... 65
  Integrated development of electric power transmission network of the north of Irkutsk region
   ................................................................................................................................................... 67
  Integrated program of construction and reconstruction of water supply and drainage facilities
  for agglomerate of Irkutsk-Angarsk-Shelekhov ........................................................................ 68
  Construction of waste processing plant ..................................................................................... 69
  Construction of high-speed rail transport connecting agglomerated cities of Irkutsk, Angarsk
  and Shelekhov ........................................................................................................................... 70
  Construction of transportation and logistics complex ............................................................... 71
  Waste sorting complex with isolation of secondary resources .................................................. 72
  Construction of cremation center in Irkutsk .............................................................................. 73
Production of food and drinks............................................................... 75
  Baikal water bottling plant “Medved” ....................................................................................... 75
  Field development and bottling of potable water ...................................................................... 76
Innovations ............................................................................................. 77
  Organization of enterprise providing services on pipeline cleaning ......................................... 77
  Organization an enterprise providing renovation services for in-field pipelines in oil fields ... 79
  “Micron” .................................................................................................................................... 81
  Baikal center of nanotechnologies ............................................................................................. 82
List of subsurface lots in Irkutsk region proposed for development
and use in 2008 ....................................................................................... 83
                        Address of interim appointed

                  Governor of Irkutsk region I.E.Esipovskiy
       Dear friends!
       Welcome to "Investor's guide of Irkutsk region!"
       By no exaggeration, today Irkutsk region can be recognized as one of the
most investment-attractive regions of Russia
       Our region is rich in cultural traditions, well-developed administrative and
research infrastructure. It occupies a unique geographical position in the center of
the Eurasian continent at crossroads of trade route to Asian-Pacific countries.
       Some of the country's largest industries are represented in Irkutsk region:
fuel and power generation, rock mining, lumber and petrochemical industries.
       The planet's largest fresh water lake – Baikal creates all prerequisites for
development of world-class tourism.
       All of the above makes our region a region of key significance for Russia
and East Siberia. Development of self-sustained innovation economy, which
should provide investment attractiveness and high living standard for the region's
population is the strategic development goal for the region.
       The purpose of this guidebook is to acquaint its readers with development
prospects of Irkutsk region and with investments projects being planned to
implement on the territory of Irkutsk region.
       Administration of Irkutsk region is actively working to create favorable
conditions for business in the region. We are ready to offer our potential investors
a wide range of areas for cooperation.
       I wish you success in implementing investment projects and ideas, as well
as in building long-term business relationships on territory of Irkutsk region
toward mutual success!
                                                                I.E.Esipovskiy
                                         5
                      Investment potential of Irkutsk region
        In accordance with Strategy of Irkutsk region till 2020, its strategic
development goal is increase standard of living through improvement of
competitiveness on the basis of reforming the structure of regional economy.
        In order to reach this goal, a number of key tasks need to be accomplished to
create conditions for post-industrial development, implementation of potential for
raw material industries, implementation of “new industrialization” projects».
        One of the main areas of pos—industrial development of Irkutsk region is
development of tourism sector of economy.
        The region is well recognized both in Russia and abroad thanks to its unique
recreational resources. Tourism and recreation potential of the region is determined
by two factors – its convenient geographical position, as well as rich history: the
region has over 1500 sites of sightseeing and educational value. The capital of East
Siberia – Irkutsk – is one of the few cities of Russia, which has made a significant
impact into the country's history and has over 300 years of age. In 1970, it was
included into the list of historical cities having valuable architectural sites.
        Lake Baikal, the world's deepest and most beautiful lake, which has been
included into UNESCO's World Heritage List, is located on the territory of the
region. Baikal is also the world's largest storage of potable water. Thus,
development of Baikal's potential is planned with account for two factors: its mass
of pure water and its unique natural and recreational resource. In the first option,
Baikal being the world's largest reservoir of fresh water, is a unique strategic
resource of national significance.
        In the second option, increasing capitalization of Baikal's shoreline, as a
territory of unique recreational potential, has large perspectives. Thanks to its
unique nature, this territory is a valuable tourist resource. Baikal's shoreline is
being developed in an integrated manner on the basis of this resource.
        In 2006, Irkutsk region won the contested right to create a special economic
zone of tourism&recreation type in proximity of lake Baikal. For Irkutsk region, a
tourism&recreation zone is, primarily, a highly-effective point of economic
growth, which will catalyze development of tourist business. Creation of a special
economic zone will allow to use the benefits of partnership between private sector
and the state.
        Priority tasks in tourism include the following:
         creating a quality infrastructure, including construction of infrastructure
facilities for the special economic zone;
         seeking investors and developing recreation zones in proximity of lake
Baikal;
         forming an attractive tour product and promotion of Baikal tourism in the
Russian and international market;
         forming a tourist cluster.
        In order to accelerate development of the industry, the region's
administration is working to promote development of infrastructure, construction
of roads and the new international class airport in Irkutsk.
                                          6
       Forming a competitive economy in the region given the current conditions
means that it has to be highly innovative.
        At present, a wide range of enterprises and organizations in the territory of
Irkutsk region are engaged in development and implementation of innovations.
These include 9 academic institutes of Irkutsk scientific center of Siberian Branch
of Russian Academy of Science, 5 institutes of East-Siberian center of Russian
Academy of Medical Science, research and development organizations of
agricultural domain, over 20 applied R&D and design institutes, as well as higher
education institutions of the region and their branches, whose total number in the
region is 40.
       Based on Irkutsk statistic department data, in 2006, 31 large enterprises of
the region were engaged into development and creation of innovations within the
region. These were joint-stock companies: "Angarsk petrochemical company",
"Irkutskenergo", "Sayanskhimplast", "Corporation "Irkut" etc. Also, over 60
innovational small and medium businesses are operating in the territory of the
region.
       Annual value of technical research works performed in the region is
estimated at 2.25 billion rubles in 2006 (1% of Gross Regional Product), 85% of
which are performed using local resources. The bulk of studies and development
(92%) have been performed by organizations of academic and industrial science,
as well as by research departments of higher education institutions. The largest
share of works (52%) falls within fundamental studies.
       An innovational infrastructure is currently being developed in Irkutsk.
Presently, it includes 14 elements, which are mainly located on the basis of
research centers of higher education institutions of the region. Of key importance
of these are the following: innovational business-incubator, which comprises 34
objects of small business; Technical park of Irkutsk state technical university,
which includes 30 enterprises and production laboratories; Regional center for
development of innovational operations, which promotes transfer of technologies;
regional school of innovational management implementing programs of re-training
and in-service training for innovations-related staff.
       In order to promote for development of research, education and
implementation activity in this direction, the Baikal center of nanotechnologies
was formed on the basis of Irkutsk state technical university. It unites institutes of
Siberian branch of Russian academy of science, as well as a number of universities
of Baikal region from the cities of Irkutsk, Bratsk, Ulan-Ude and Chita.
Development of this center, which is facility of collective use equipped within
state-of-the-art powerful equipment, may become a point of reference in building
new high-tech economy of Irkutsk region.
       The purpose of creating Baikal center of nanotechnologies is a technological
breakthrough in a number of key industries of the economy: construction industry,
metallurgy, machinery building, chemical industry etc. Also, on the basis of this
center, engineers are trained in nanotechnologies, which provide for actual needs
of establishing and promoting newest competitive technologies into real
production.
                                          7
       Forming a post-industrial center on the basis of research and education
center and project administration center in agglomerate of the cities of Irkutsk-
Angarsk-Shelekhov.
       In mid-term perspective, this will grant us the opportunity to concentrate
control centers of the region's key projects, to create prerequisites for creation and
development of innovations cluster, which generates and translates knowledge-
intensive technologies and solutions for the region's economic and social domain.
       Forming this agglomerate is aimed at enhancement of city management
system quality, creating transportation and social infrastructure, which meets the
requirements of modern megapolis. It will also assist in implementing large-scale
investment projects, development of innovational technologies related with
concentrating highly qualified personnel in a single location, and building a single
research and production space.
       Postindustrial center includes the cities of Irkutsk, Angarsk, Shelekhov and
settlements of Irkutsk, Angarsk and Shelekhov districts. Total square area of the
center will amount to 2.4 thousand sq. km. Total population – about 1.0 mln.
persons. Building this powerful developing agglomerate in the South-East of
Siberia will establish a foundation for further strengthening of the economy of
Siberian federal district and Russia in general.
         The main source of financing this post-industrial center development
project, alongside with funds of private investors, may be funds of RF's Investment
fund attracted within the framework of partnership between private sector and
state.
         At present, work is being performed on specific projects, which will
provide development of transportation and engineering infrastructures.
         Construction of international airport "Irkutsk New" is of special
importance for the development of post-industrial center and special economic
zone of tourism and recreation type.
         Apart from infrastructural projects, forming agglomerate also presumes
implementation of projects targeted at social and economic development of the
territory, including offset of new large business center outside of Irkutsk's
historical downtown. This will improve transportation and environmental issues in
the cities and will reduce transport flow through historical downtown of Irkutsk,
while making the new business center closer to Angarsk and Shelekhov.
         In the new business center, it is planned to locate administrative facilities,
which will create the opportunity of providing services to state power authorities
and local administration bodies at world standard level, and also, to create more
favorable conditions for large business operations. Creating a post-industrial center
presumes availability of large logistic centers.
         The main purpose of forming a post-industrial center is create a center in
East Siberia, which would be capable of stimulating population growth and, thus,
to create a benchmark for the country. Successful development of the agglomerate
will be possible in case of a rapid leap of the standard of living through direct and
indirect effects of post-industrial development.
                                          8
        Perspectives of investment development of Irkutsk region are related to the
use of rich natural resources potential, whose size brings the region into the
nation’s top ten list of Russian Federation's regions.
        The subsurface of Irkutsk region is rich in various valuable minerals. Fields
of oil and gas, deposits of potassium salts, coal, iron ore, gold ore, titanium, rare
and non-ferrous metals (lithium, rubidium, niobium, tantalum), muscovite mica,
magnesite, raw materials for construction industry, mineral waters.
        In the long-term perspective, the region's growth potential is determined by
the following:
        • commercial production of oil and gas;
        • significant growth of gold mining in connection with start of development
in a number of large deposits;
        • prospects of mining rare metals in the south-west and potassium salts in the
north of Irkutsk region.
        Enterprises of mineral raw material industry are capable of creating centers
of economic growth in the country, given the natural resources potential and
conditions of economic efficiency, which is higher compared to other industries,
and being less dependent on labor resources.
        A large impetus for development of mineral raw material industry is the
transportation structure being created within the framework of investment projects.
One the key instruments for development of resource potential in Irkutsk region is
partnership between private sector and the state. For instance, Irkutsk region has a
number of large and unique fields and deposits, which cannot be developed due to
lack of required infrastructure, transport and power, primarily. Thanks to
consolidation of the efforts of state and business, it is being planned to file
applications into Investment fund of Russian Federation for the purpose of
financing infrastructural part of the projects.
        One of the basis industries for Irkutsk region is becoming commercial
production of hydrocarbons. Up to the moment, 9 oil and gas condensate fields, 1
oil field and 1 gas fields have been discovered in the region. The main objects are
the largest Kovykta gas condensate and Verkhnechonskoye oil and gas condensate
fields. Oil resources have only been discovered by 11%, which implies a great
potential for their development.
        Construction of trunk oil pipeline “East Siberia – Pacific ocean”
significantly increases investment attractiveness of oil and gas fields and
subsurface license areas, prospective oil fields along the route of oil pipeline.
        On the basis of existing gas fields of the region, OAO “Gazprom” has
developed and is currently implementing the program of region gasification to
encompass virtually all of Irkutsk region municipalities allowing to supply gas into
899 settlements. This will resolve the problem of power supply to remote parts of
the region and will provide the impetus to development of petrochemical industry.
        In the long-term perspective, implementation of the following key
infrastructural projects is planned:
      in railway transportation, in accordance with Strategy of railway transport
development of OAO “Russian Railways”:
                                         9
      - Construction of railway “Ust-Ilimsk – Neryunda” of 140 km length. This
will enable to start development of Ust-Ilimsk district fields (Neryundinskoye,
Kapaevskoye, Polivskoye) with a significant increase of iron ore and coal
production in the area of Ust-Ilimsk city, as well as harvesting commercial wood.
      - Construction of railway line Lena – Nepa – Vitim – Lensk, whose length
within Irkutsk region will be 370 km.
      - Construction of North-Siberian railway (Nizhnevartovsk – Beliy Yar – Ust-
Ilimsk), whose length within the region will be about 200 km.
      in ground transportation:
         - Construction of roads: Ust-Kut – Uoyan in the section Zvezdniy – Niya
   from 59 to 104 km, Taximo – Bodaibo (km 145 – km 190), Kirensk – Nebel;
      - Development of roads network for wood harvesting operations in the north-
east parts of Irkutsk region, which will include wood harvesting roads in to federal
earmarked program “Development of industrial capacity on deep wood processing
and development of new wood production grounds until 2015”. Required
construction length of roads – about 2263 km. This will provide annual surplus of
wood harvesting in the area of up to 8 mln. m3 of raw wood.
       The main target of power generation infrastructure development in the region
 for the near future is preventing potential power shortage in the region, which may
 occur by 2011. Increasing power generation capacity in the region is possible in
 two ways:
       - creation of a single power generation system with Sakha Republic (Yakutia)
 by means of investment project "Integrated development of power transmission
 networks in the North of Irkutsk region” by OAO “Irkutskenergo”;
        - in accordance with General scheme of gas supply and gasification of
Irkutsk region by OAO “Gazprom”. Gasification of the area will create
prerequisites for development of a large electric power generation hub utilizing
associated and natural gas of the northern fields.
      In mid-term perspective, private business is planning implementation of the
following investment projects on production of natural resources:
         development of Verkhnechonskoye oil and gas condensate field in
Katanga district;
         development of Yarakta, Markovo and Danilovo oil fields in Ust-Kut
and Katanga districts;
         development of Dulisma oil and gas condensate field in Kirensk
district;
         development of fields in Iyskoy-Tagulskiy nickel-bearing vicinity,
which is located in Taishet, Nizhneudinsk and Tulun districts;
         Construction of integrated ore refinery on the basis of Angaro-Katskoye
iron ore district (Kapaevskoye, Neryundinskoye, Polivskoye fields) in Ust-Ilimsk
district;
         Development of “Sukhoy Log” gold deposit in Bodaibo district;
         Development of Nepskoye deposit of potassium salts and construction
of ore refinery in Katanga district;
                                         10
         Development of gold deposit "Chertovo kopyto", Verninskoye in
Bodaibo district;
         Development of Krasnoyarovskoye deposit of iron ore in Bratsk
district, development of Uvatskoye deposit of quartzite in Nizhneudinsk district;
         Construction of cement plant on the basis of Vengerskoye deposit in
Taishet district.
        One of the key priorities of investment development of Irkutsk region is
deep wood processing. In this direction, the region's administration is performing
work to include the like projects into the list of priority investment projects in the
wood grounds development of Ministry of industry and trade of Russian
Federation. Governor’s Investments Council has reviewed a number of investment
projects on construction of wood processing plants.
      In addition to this, the following investment projects have already been started
in Irkutsk region:
         construction of wood processing plants in settlement of Novaya Igirma,
Yantal, town of Rudnogorsk;
         construction of enterprise to produce high-quality lumber, OSB and
Dendrolight boards, fuel granules in Ust-Kut city and Kirensk district;
         start-up of large-format plywood production;
         start-up of high-quality lumber production in Bratsk district;
         construction lumber cutting and wood processing workshop in Bratsk
district;
         upgrade of existing pulp and cardboard production, start-up of paper
production, construction of wood logging roads, investments into forestry industry
maintenance and operations;
         construction of plant for production of bleached chemi-thermo-
mechanical pulp.
      Metallurgy, which is mainly represented by aluminum smelting, provides
over a quarter of industrial production in Irkutsk region being a leader in this
indicator.
      Russia’ largest aluminum producer – integrated corporation “Russian
aluminum” operates in Irkutsk region. It is represented by OAO “Bratsk aluminum
smelter”, OAO “Irkutsk aluminum smelter”, “SUAL-PM” and ZAO “Silicon”.
      Perspective investment projects of metallurgical production include:
         Construction of new aluminum smelter “RUSAL-Taishet” in the town of
Taishet. Planned production capacity of the smelter is 750 thousand tons of
aluminum and 350 thousand tons of baked anodes per year;
         Upgrade of aluminum smelting facilities in Bratsk and Shelekhov;
         Construction of electrometallurgical plant in Bratsk;
         Start-up of manganese ferroalloys production in Angarsk;
         Start-up of direct-reduced iron production in Tcheremkhovo district.
        Development of machinery building industry of Irkutsk is primarily linked
to development of aircraft construction industry in the territory of Russian
Federation. EADS corporation is outsourcing manufacturing parts for Airbus A350
and A380 outside of main construction grounds, in particular – to Russia. This
                                         11
provides good perspectives for development of aircraft construction in Irkutsk
region, which is the main production site of corporation "Irkut".
       Another direction of machinery construction development in Irkutsk is
manufacturing machinery and equipment for basic nature-use industries. In
particular, this includes construction of equipment for rock-mining, refining, gold-
mining industries (OAO "Irkutsk plant of heavy machinery building", OAO "PO
Usolmash") for coal-mining industry (OAO “Svirsk RMZ”), petrochemical
industry (OAO “East-Siberian mechanical plant”) and wood industry. This domain
of production is supplemented by production of electro technical goods represented
by such enterprises as OAO “Irkutskcable”, ZAO “Akteh-Baikal”, OAO “Angarsk
electromechanical plant”.
       There is a potential for development in machinery building industry through
attraction of machinery-building businesses within the frame of technopark
concept of the agglomerate.
       Prospects of petrochemical industry, which accounts for about 12% of total
industrial production in the region, area associated with oil and gas production
from the largest fields – Kovykta gas and condensate field and Verkhnechonskoye
oil and gas condensate field.
       A required prerequisite for commercial development of Kovykta fields is a
production growth-aligned staged construction of gas processing plant to isolate
ethane, propane, butane and helium, which is a strategic resource, from natural gas.
Construction of this plant is planned on the basis of OAO "Sayanskkhimplast".
       One of the key investment projects in this industry is creation of solar power
generation center on the basis of OOO “Usolye-Sibirkoye silicon” by NITOL
group. Also, upgrade of production facilities is currently in progress in largest
enterprises of the industry: OAO “Angarsk petrochemical plant”, OAO
“Sayanskkhimplast” and OOO “Usolyekhimprom”.
       Prospects of power generation industry are associated with implementation
of OAO "Irkutskenergo" project "Integrated development of electric power
transmission networks in the North of Irkutsk region”. Its implementation will
allow to reduce the expected electric power shortage and will provide an impetus
to development of industrial and natural resources potential of the northern parts of
Irkutsk region.
       Construction and manufacture of construction materials. Increasing rate
of construction caused by increasing demand for commercial real estate,
implementation of national project “Affordable housing” entails the growth of
demand for construction materials. At present, a significant lack of main
construction materials is felt in Siberian market, which is related to growth of
construction volumes.
       Company KNAUF is building the region’s largest plant on production of
modern construction materials in Irkutsk region. Another enterprise, a bright
example of construction material producing plants, is OAO “Angarskcement” –
one of Russia’s largest cement producers.
       A number of projects on construction of brick plants, production of plastic
pipes, production of foamed concrete, tiles, sandwich panels, corrugated steel
sheet, decorative stone and many other materials have been claimed for
                                         12
implementation in the region.

Infrastructure and institutional conditions for investment
development
Transportation potential
       Irkutsk region has a sufficiently spread and developed transportation
infrastructure, which is represented by various types of transport. The main transit
and trade routes pass through the territory of the region: the Transsiberian and
Baikal-Amur railways. The Transsiberian railways is the main transportation link
of Irkutsk region, which connects it with the central and Far East regions of Russia,
as well as providing access to Mongolia and China. In addition, the Transsiberian
railway has a north-eastern branch, which provides access to a rich mineral
resources base of north-eastern parts of Russia. Development mineral resources in
the zone of Baikal-Amur railway offers good prospects.
       The region has two international airports in the cities of Irkutsk and Bratsk,
which perform scheduled air flights, including international flights.
       A developed network of motor roads allows to delivery goods by vehicles to
virtually all locations of Russia and countries of former USSR.
       Development of transportation logistics in Irkutsk region is planned by
Transportation strategy of RF, which includes creation of multimodal logistic
transportation and distribution centers of federal level in Irkutsk, and a number of
territorial centers in towns of Taishet, Bratsk, Ust-Kut, Ust-Ilimsk. This allows to
build a transportation framework of the region in midterm and long-term
perspectives for implementation of large investment projects of “new resources
development”, growth of processing enterprises, increasing scope of high-tech
services.
       Construction of the new international airport will increase the level and
quality of transportation support in Irkutsk region.
Telecom capabilities
       Use of modern technologies for processing and transmission of information
has a decisive role for the development of economy and expansion of its capacities.
Irkutsk region in Russia's top ten list of leaders in digitalizing of communication
networks.
       All district centers are connected to Irkutsk with high-quality
communication channels, which allows for active development of phone
communication, data transmission network, Internet access, voice communication
etc.
       Four mobile communication providers are represented in the territory of
Irkutsk region: ZAO “Baikalwestcom”, ZAO “Corporation Severnaya Corona”
(OAO “Vympelcom”), ZAO “Primtelefon” (ZAO “MTS”), ZAO “Mobicom
Khabarovsk” (OAO “Megafon”). Appearance of three Russia’s leading mobile
communication providers in the market creates a favorable environment for
competition and lower prices for cellular communication services.
       Total number of registered subscribers of cellular communication amounts
                                        13
to over 3.0 mln.
Labor potential
      Employment of the region’s population in the local economy, based on
evaluations, amounted to 1129.5 thou. persons in 2007, while the number of labor
resources amounted to 1637.0 thousand persons. The level of wages in the region
surpasses the Russia's average by 2%. The average salary in January-December of
2007 amounted to 13750.9 rubles, whiles its growth versus 2006 was 123.6%.
      The quality of labor potential is determined by a well-developed education
complex. The region is a recognized science and educational center of East Siberia.
The region has 39 institutions, which train specialists in higher education
curriculums. The region has one the country’s largest Irkutsk science center of
Siberian branch of Russian academy of science, as well as 30 applied research and
development institutes. Specialists are trained in over 200 professions in of
technical, economic, natural science and humanitarian domains.
      Total number of students in all forms of education in 2007 amounted to over
135 thousand persons. High level of specialist training in Irkutsk region has been
confirmed by participation of Baikal institute of business and international
management in the program of specialist training for the member countries of
Shanghai organization of cooperation.
Financial system
      A well-developed financial system exists in Irkutsk region. As of January 1,
2008, 9 regional credit institutions, 50 branches of credit institutions from other
regions were operating in the region. In addition, 523 internal organization
departments, 13 representative offices of credit institutions are located in the
region.
      Net index of provision with bank services in Irkutsk region amounted to
0.71 (Russia overall – 1.0).
      Net assets of credit institutions operating in the region, as of January 1,
2008, amounted to 137708.6 mln. rubles, providing the increase of 45640 mln.
rubles of 49.6% compared to the previous year. Own capital of credit institutions
amounted to 1937 mln. rubles (a 16.8% increase).
Investments
       Over the last years, Irkutsk region has been demonstrating high rates of
investment activity, which is evident from amount of investments into fixed assets,
which amounted to 122.4 bln. rubles in 2007, which is 1.5 times greater than that
of 2006, and 2.6 times greater than 2006 in comparable prices.
       Among the regions of Siberian federal district, as of 2007 results, Irkutsk
region holds a leading position in total amount of investments in fixed assets and
investment amount growth. In fixed assets investments per capita of region’s
population, Irkutsk reached the second place (48.8 thou. rubles) yielding only to
Tomsk region (61.9 thou. rubles).
       Over January-May period of 2008, investments into fixed assets were
effected in the amount of 38.631 billion rubles, which amounts to 111.7% versus
                                          14
similar period of the previous year.
      In 2007, economy of Irkutsk region received investments from 24 countries.
Amount of foreign investments received by Irkutsk region in 2007 amounted to
360.5 mln. US dollars.
      Foreign capital is mainly invested into “processing industries”, “operations
with real estate” and “natural resources production”.
      A positive trend is growth of direct foreign investments by 2.6 times (28.2
mln. USD).
      Largest foreign investments from direct investors were made into
organizations, which operate in “agriculture, hunting and forestry” – 9903.1 thou.
USD and “operations with real estate” – 9194.3 thou. USD.
Forming a favorable investments climate
       Administration of Irkutsk region is conducting active work to improve
investments climate of the region. Thus, for instance, in 2007 a number of
earmarked presentations were made at large international events both in Russia and
abroad. Largest events of these include: international exhibition fair of investment
projects in commercial real estate MIPIM – 2007 in Cannes (France), exhibition
"Regional investments projects” within the framework of XI St.Petersburg
international economic forum, international investments forum “Sochi-2007”,
presentation of Irkutsk region in Amsterdam, Netherlands, “ROAD-SHOW of
Irkutsk region” for investment community of Moscow. Based on the achievements
made in these events, cooperation agreements were made with investors and a
number of contracts were signed.
       The result of work in this domain was approved investment and credit
ratings of the region in 2007 by international and Russian rating agencies.
       Over the last few years, work was performed to increase long-term credit
rating of the region in foreign currency. This allowed international rating agency
“Standard&Poor’s” to confirm “B+” rating of Irkutsk region, forecast “stable”.
Improvement of rating is based on growth and diversification of the region’s
economy, continuous sustained financial status and low level of debt. The leading
Russian rating agency "Expert" has assigned investment rating 2B "mid potential –
moderate risk" to the region.
       In order to support investors, Irkutsk region is implementing direct support
of investment projects. In particular, Regional law "On property tax of
organizations" was adopted. It provides tax benefits in property tax to
organizations, which start up new production facilities for deep material processing
and production of ready products in the territory of the region.
       In addition, Governor’ Council on investments and Coordination bank
council are operating to increase investment activity in the region.
       Investments council was formed to promote practical cooperation of Irkutsk
region administration, federal power authorities, business representatives, public
organizations toward development of investment operations in Irkutsk region. It
reviews presentations of investments projects, which is proposed for
implementation in Irkutsk region, investor’s requests to reduce administrative
barriers and develops relevant recommendations, maintains control and evaluation
                                        15
of current investment projects execution, generates agreed proposals on
development of infrastructure in Irkutsk region.
       The target of Governor's Coordinated bank council of Irkutsk region is to
increase the role of banks in development and implementation of economic policy,
development of measures to stimulate channeling of financial resources into the
real domain of economy, increase of residential provision with bank services.
       A system of goodwill accreditation of investment process participants was
set up for consulting companies and individual consultants. This system aims to
locate investors for investment projects.
       Thanks to beginning of accreditation procedure, the region has now created
prerequisites for development of quality investment mediation, which will activate
and enhance investments-getting processing for investment project holders.
       Information on investment policy in Irkutsk region is updated in a timely
manner on internet site www.invest.govirk.ru, which lists investment passports of
all municipalities of Irkutsk region.
       Irkutsk region Development strategy up to 2020 was developed in
cooperation with "Center of strategic development "North-West” and OOO
“Strategy Partners” – the leading consulting organizations.
       Investment legislation of Irkutsk region is based on federal and regional
legal acts.
       At the federal level, investment activity is controlled by the following:
        Federal law dated February 25, 1999 # 39-FZ “On investment operations
in the form of capital investments in Russian Federation”.
        Federal law dated July 9, 1999 # 160-FZ “On foreign investments in
Russian Federation”.
        Federal law dated March 5, 1999 # 46-FZ “On protection of rights and
legal interests of investors in securities market”.
       The regional legal regulatory base targeted to enhance investment
attractiveness of Irkutsk region has been created and is constantly being upgraded:
        Program of social and economic development of Irkutsk region for 2006-
2010 approved by Law of Irkutsk region dated 26.10.2006 # 68-oz;
        Law of Irkutsk region dated 04.07.2007 # 52-oz “On reduced rate of
profit tax for organizations with regard to amounts remitted into regional budget";
        Law of Irkutsk region dated 08.10.2007 # 75-oz “On property tax of
organizations";
        Regulation of the Governor of Irkutsk region dated March 30, 2006 #
165p “On regional state earmarked programs”;
        Regulation of the Governor of Irkutsk region dated June 30, 2006 # 265-
p “On investments council of the Governor of Irkutsk region";
        Regulation of the Governor of Irkutsk region dated December 25, 2007 #
288-p “On approval of Regulation of coordination bank council of the Governor of
Irkutsk region”;
        Regulation of the Governor of Irkutsk region dated June 7, 2006 # 247-p
“On Expert council of the Governor of Irkutsk region”.
                                        16
       In addition to this, administration of Irkutsk region, bodies of local self-
governance are concluding agreements on social and economic partnership with
economic entities, perform joint presentations of investment projects, place state
orders, implement various business support programs etc.
       In the current year, development of regional legislation is planned to cover
issues of creating special economic zones of industrial production type at the
regional level, stimulation of investment activity, procedure of preparation,
conclusion and implementation of investment agreements between administration
of Irkutsk region and an entity implementing an investment project on the territory
of Irkutsk region.
       For purposes of promoting investment activity and overcoming
infrastructural constraints, it is planned to use tools of state development
institutions:
        Investment fund of Russian Federation;
        creating corporations with mixed state and private capital to develop
priority industries;
        using mechanisms of Vneshtorgbank;
        using mechanisms of state support of financing venture funds within
OAO “Russian venture company”;
        concluding concession agreements.
       Today, Irkutsk region, by no exaggeration, is becoming one of the most
attractive regions in Russia in terms of investments.



                                             Department of investments development
                                               and national projects of Irkutsk region
                                          17


                          Commercial real estate, tourism
              Creation of eco-technopark and tourism&recreaction complex of
               international class on the basis of Irkutsk botanic garden
        Organization name
        Irkutsk state university, Botanic garden
        1 Karl Marx str., Irkutsk, 664003, Russia
        Phone: +7 (3952) 201307, +7 (3952) 387476
        vic@bogard.isu.ru http://bogard.isu.ru
        Head – Kuzevanov Viktor Yakovlevich.
        Project summary
        A joint project of Mayor’s office of Irkutsk and Irkutsk state university
unites a large body of forest and the university’s Botanic garden. A public complex
is created from a collection of live plants, greenhouses and natural landscapes, a
Zoo, an Aquarium, a Planetarium, a network of museums, other recreational
facilities and locations. This unique location will attract private investments and
various businesses (hotels, restaurants, shops) for sustainable economic
development.
        The territory includes 100 hectares of picturesque hilly landscape near the
city’s transportation hub and Transsiberian railway.
        Draft designs, business plans with feasibility studies are being developed.
Irkutsk state university will provide the infrastructure and resources for the project.
        600 thousand visitors are expected per annum.
        Estimated project price
        900 mln.. rubles
        Sources of financing: 30% – own funds
        Requested investment amount
        Methods of investment payback: profit from operation (entry fee, use, rental
fee), grants, subsidies
        Project payback time
        8-10 years
        Available documentation on project
        - Feasibility study of project
        - Expert evaluation of the Bureau of city an landscape planning “Blattwer k”
Berlin» and consulting company “Illig-in-Pakov".
        Current project implementation status
        - Draft designs, business plans with feasibility studies are being developed
        - Irkutsk state university will provide the infrastructure and resources for the
project, including information networks. Design developers include specialists and
researchers of three largest universities of Irkutsk region (Irkutsk state university,
Irkutsk state technical university) and Moscow (Moscow state university).
        - Landscape architects from Great Britain (University of Edinburgh),
Germany (Erfurt university, Berlin botanic garden) are participating in the project
on voluntary basis.
                                         18
      Start – 2008, commissioning – 2011.
      Contact on project
      Kuzevanov Viktor Yakovlevich – head.
      Irkutsk state university, Botanic garden, 1 Karl Marx str., Irkutsk, 664003,
Russia, Phone: +7 (3952) 201307, +7 (3952) 387476.
      vic@bogard.isu.ru, http://bogard.isu.ru
                                        19

        Sports and recreation complex ―Angara Park‖ of regional supplementary
education institutions ―Children’s sports school ―Russian downhill skiing school
                Baikal‖ located at 6 km of Alexandrovskiy highway
       Organization name
       Regional supplementary education institution “Children’s sports school
“Russian downhill skiing school Baikal”.
       Legal address: 664003, Irkutsk, 26 Karl Marx str. Actual address: 664035,
Irkutsk, 96 Rabochego Shtaba str.
       Phone/fax: (3952) 529-973, e-mail: rgsh@irk.ru
       School director – Yazykov Pavel Valentinovich.
       Project summary
       New construction at 6 km of Alexandrovskiy highway.
       Total project value
       9 bln. rubles.
       Project payback time
       13 years.
       Available documentation
       Business plan; Concept of development program for recreation zones,
social-economic alpine tourisms and downhill skiing; Statement of FGSSR on
feasibility of construction of Park Angara downhill skiing complex at 6 km of
Alexandrovskiy highway of Irkutsk district, Irkutsk region, Russian Federation,
which will meet the requirements of international Federation of ski sport (FIS);
Concept (with elements of terms of reference) of sports and recreation center in
suburban area of Irkutsk; Concept of program for integrated development of
mountain-resort zones and alpine sports in Irkutsk region; Statement on results of
archeological survey of the territory dated September 21, 2004; Report on
archeological survey of the territory of SPK “Park Angara”; Regulation of the
district Head #6076 “On provision of land parcel into permanent (unlimited) use
for construction of sports and recreation center to Regional supplementary
education institution “Children’s sports school “Russian downhill skiing school
Baikal” dated 15.12.2006.
       Current project implementation status
       Over the period 2004-2007 “Russian downhill skiing school Baikal” and
Committee on Physical Culture and sports have financed organizational and
planned works in the amount of 4.2 billion rubles, including:
       In 2004 – service of managerial consulting, act of technical survey, as well
as the price of power consumer devices connection fee to power transmission line
VL-10 kV, issue of terms of reference, valued 205 thou. rubles.
       In 2005 – marketing studies, approval of land allocation, archeological
surveys, compilation of boundary delineation package, development of trademark
design, master-plan of routes and lifts, business plan, execution of land documents,
as well as information services (statement), valued 1.9 mln. rubles.
       In 2006 – model to general layout, orthophotomap, valued 57.3 thou. rub.
                                      20
      In 2007 – survey works, small cable lift, development of design
documentation, survey for development of design documentation, construction of
accommodation cabins, valued 2 mln. rubles
      Creation of new jobs
      Planned staff number – 50 persons.
      Contact on project
      Yazykov Pavel Valentinovich – Director,          Regional supplementary
education institution “Children’s sports school “Russian downhill skiing school
Baikal”, Phone: (3952) 529-973, e-mail: rgsh@irk.ru
                                         21

                            First business block «Irkutsk – City»
       Organization name
       Group of companies “Active”, 664007, Irkutsk, 1 Oktyabrskoy Revolutsii
str., Phone/fax (3952) 288-112, sales@irkutskcity.ru, www.irkutskcity.ru
       Project summary
        The first business block “Irkutsk City” – currently in construction -– is an
integrated office construction in downtown of Irkutsk. On ten hectares of
developed and guarded territory in the very center of the city, a complex of 15
business-centers will be located with total area of office space of over 200
thou.cu.m. In 4 hectares of adjacent territory and territory within the block, a
garden-park zone will be created, including an embankment of municipal value.
       Driveway into the business block will be provided from Oktyabrskoy
Revolutsii street from a 6-lane street, with convenient driveways leading to each of
the buildings.
       All buildings are equipped with state-of-the-art utility systems – two
individual power supplies; centralized building management system (BMS);
centralized system of air ventilation, conditioning and humidification; fire-fighting
and smoke exhaust systems; systems of video surveillance and access control;
modern high-speed elevators. Building management will be performed by a
professional managing company.
        Infrastructure of business block “Irkutsk City” includes hotel and fitness
center, conference center, café, restaurant and service enterprises in each building,
recreation zones with small-sized architectural forms, road junctions, above- and
below-ground parking lots for visitors and workers, a car wash complex.
       Project “Irkutsk City” received a high assessment of experts at St.Petersburg
economic forum (June 2007) and at IV International investments forum “Kuban
2007” (September 2007) as a project creating the new image for the region.
       Total project value
       8,400 billion rubles.
       Requested investment amount
       - hotel complex – 600 mln. rubles;
       - sport and fitness center – 336 mln. rubles.
       Project payback time
       7 years.
       Available documentation on project
       - land parcel’s property rights are documented;
       - positive experts statement on project;
       - business plan and design solutions;
       - permission for construction obtained.
       Current project implementation status
       The first business center “Terra” is being prepared for commissioning,
construction of the second business center of business block has been started,
construction of 6-land central street of “Irkutsk-City” is in progress, a set of works
                                      22
is being performed on development of the territory and construction of parking
lots.
      Contact on project
      Penkovskiy Sergey Valerievich – general director of Group of companies
“Active”, Phone/fax (3952) 288-112, sales@irkutskcity.ru
                                       23

                         Congress-center as part of ―Sibexpocenter‖
       Organization name
       ОАО “Sibexpocenter, 664050, Irkutsk, 253А Baikalskays str. phone
(3952)35-31-39,        35-45-39,   fax    35-30-33.     E-mail:   sibexpo@mail.ru,
http://www.sibexpo.ru.
       Project summary
       - location –Irkutsk, on site of existing Irkutsk international exhibition
complex “Sibexpocenter”;
       - creation of conditions in East Siberia for conducting congresses and
exhibitions at world standards level;
       - a unique business, economic&cultural, educational, informational and
recreation center of general use;
       - total area – 18800 sq.m.;
       - equipped with state-of-the-art engineering, technical, video and audio
equipment;
       - commissioning within one year.
       Total project value
       420 mln. rubles
       Available documentation on project
       Feasibility study and business plan developed.
       Contact on project
       Shapovalov Andrey Gennadievich – acting General director of ОАО
“Sibexpocenter”, phone (3952)35-31-39, 35-45-39, fax 35-30-33

      .
                                        24

          Construction of new shipbuilding yard for construction of comfortable
                                         yachts
       Organization name
       ООО “Khrustalnaya Lebed”, Irkutsk, 236B Baikalskaya str., director –
Mukhamadeev Karim Timirkhanovich, Phone 8902 566 5146.
       E-mail: karim4@rambler.ru.
       Project summary
       Company “Khrustalnaya Lebed” is starting implementation of a new project
– “KATAMARAN.SU”, i.e. creation of a new shipbuilding yard for construction
of comfortable yachts, which are specially designed for lake Baikal.
       Currently, the following tendencies of development are found in deluxe class
yacht construction market:
       - Maximum adaptation of product to operating conditions.
       - Extra attention to issues of safety and environment protection
       - Easy control of sail and power yachts.
       - Orientation of design toward increase of on-board space.
       - Progress of composite materials technology. Today, even airplanes are
built using them.
       The sole competitors of “KATAMARAN.SU” in Irkutsk market are builders
of power yachts and large metal boats. “KATAMARAN.SU” has created a totally
new yacht based on three principles: A safe yacht for Baikal, easy to control and
comfortable.
       Total project value
       18 mln. rubles – market price of a single catamaran, designed production
capacity – 3 catamarans in 2 years.
       Requested investment amount
       For 2008 – 10 mln. rubles. In the future – 20 mln. rubles per year.
       Project payback time
       2 years.
       Available documentation on project
       Design and cost estimate documentation, business plan
       Current project implementation status
       2 mln. rubles of investments effected, shipway built, part of equipment
purchased, part of materials for the first catamaran purchased
       Creation of new jobs
       In 2008 – 10-15 jobs, in 2009 – 20-35 jobs.
       Proposed forms of cooperation
       Will consider any options.
        Contact on project
       Mukhamadeev Karim Timirkhanovich – director, phone: 89025665146,
karim4@rambler.ru
                                         25

                                    VIP-Baikal-center
       Organization name
       ООО “MINEKO”, Irkutsk, left bank of Angara river, base “Mineko”
       Phone/fax +7 (3952) 331541, 331561, (9148) 955317
       Director – Tsvetkov Roman Alexandrovich, phone +7 (9169) 855317
       Project summary
       Address: Zaton settlement, left bank of Angara river, premises “Mineko”
       Type: new construction
       Description: VIP Baikal center: Hotel complex, business center, yacht-club,
a chain of floating restaurants, concerts stage on water, parking lot, park area.
       Project implementation period – 2,5 years
       Total project value
       7,2 billion rubles.
       Requested investment amount
       1,440 billion rubles.
       Project payback time
       3 years.
       Available documentation on project
       Certificate of ownership rights in land parcel, regulation on amendment of
land allocation purpose, permit for construction, design, feasibility study, business
plan, permits, approvals.
       Current project implementation status
       Land parcel is owned, terms of reference are available for all utilities
connections, pump station relocation project, draft design of complex, approvals,
protocols of intent with leaseholders.
       Creation of new jobs
       Up to 300 jobs.
       Tax payments
       240 mln. rubles per year.
       Proposed forms of cooperation
       Advance payment to effect future lease fee, joint shared construction,
purchase of the enterprise’s share, loan.
       Contact on project
       Samoylenko Elena Gennadievna – project manager, Phone +7 (3952)
331541
                                         26

                               Tourist base ―Red Square‖
       Organization name
       ООО “UNISEL” Irkutsk district, settlement Bolshoye Goloustnoye.
       Phone/fax +7 (3952) 331541, 331561, (9148) 955317
       Director – Tsvetkov Roman Alexandrovich, phone +7 (9169) 855317
       Project summary
       Address: Irkutsk district, settlement Bolshoye Goloustnoye, inroad, tourist
base “Red Square”
       Type: new construction
       Description: tourist base “Red Square” of year-round operation (2 buildings
of 80 beds each, conference hall, restaurants, 17 wooden Buryat yurts with 2 (4)
beds, 20 woolen yurts with 2 (4) beds, Baikal festival center for up to 10 000
persons, 10 wooden saunas by the water, a beach, yacht-club up to 50 vessels,
filling station on water, a pier, port facilities, bus and boat stations, ferry –
Goloustnoye – Babushkin.
       Total project value
       2400 mln. rubles.
       Requested investment amount
       480 mln. rubles.
       Project payback time
       5 years.
       Available documentation on project
       Land parcel lease right certificate for 49 years, design, approvals, permit for
construction, feasibility study, business plan, permits, approvals.
       Current project implementation status
       Land parcel in lease for 49 years, terms of reference of utility connections,
design, agreement with General consul of Mongolia in RF, recultivation land
works are performed by 50%, 17 wooden yurts built, woolen yurts installed,
foundations of a part of buildings constructed.
       Creation of new jobs
       Up to 100 jobs.
       Tax payments
       6,24 mln. rubles per year.
       Proposed forms of cooperation
       Advance payment to effect future accommodation at tourist base,
cooperation in organizing festivals and corporate events at Baikal lake, joint shared
construction, purchase of an enterprise’s share, loan.
       Contact on project
       Mutovina Natalia Petrovna – project manager, Phone +7 (3952) 331541.
                                         27

                             Complex ―Russian California‖
       Organization name
       ООО “Verkhnelenskiy lesozavod” Irkutsk region, Zhigalovo settlement, 2A
Geologicheskaya str.
       Phone/fax +7 (3952) 331541, 331561, (9148) 955317
       Director – Tsvetkov Roman Alexandrovich, phone +7 (9169) 855317
       Project summary.
       Address: Zhigalovo district, Zhigalovo settlement, 2A Geologicheskaya str.
       Type: upgrade.
       Description: production and household complex “Russian California”
includes an operating hotel for 80 beds (with office space, laundry, dryer, security,
café), building of mechanical workshop (logistics center) of 2300 m2 square area,
a garage and repair workshop of 1300 m2 square area, a filling station. The
complex is located on an owned land parcel of 2 hectares at the distance of 100
km from Kovykta gas condensate field. It was previously used generating profit by
TNK-BP contractors during construction of the first gas pipeline “Kovykta-
Sayansk”. The complex is located on Federal motor highway “Irkutsk-Kirensk-
Yerbogachen”. It can be used as a representative office and operations base for
enterprises engaged in development of Kovykta and Chikan gas condensate fields,
for setup of wood processing production, a logistics center.
       Total project value
       480 mln. rubles.
       Requested investment amount
       120 mln. rubles.
       Project payback time
       2,5 years.
       Available documentation on project
       Land parcel and immovable property ownership right certificate, approvals,
agreements, business-plan.
       Current project implementation status
       The hotel is provided with furniture and is functioning, documentation is
executed, construction and repair works are in progress, a wood-processing plant is
being designed as well as a logistics center. Negotiations are currently in progress
with OAO “Gazprom” to use the complex in construction of pipeline “Kovykta –
Unified gas system of Russia”.
       Creation of new jobs
       Up to 80 jobs.
       Tax payments
       9,6 mln. rubles per year.
       Proposed forms of cooperation
       Accommodation of personnel in hotel, heated parking lot and repair of
vehicles in garage, storage of property in warehouse, lease of office and
accommodation space, lease of the entire complex, purchase of enterprise’s share.
       Contact on project
                               28
Mutovina Natalia Petrovna – project manager, Phone +7 (3952) 331541.
                                         29

                           Association of near-Baikal regions
       Organization name
       OOO “Moscow investment fund of near-Baikal regions” Irkutsk region.
       Phone/fax +7 (3952) 331541, 331561, (9148) 955317
       Director – Tsvetkov Roman Alexandrovich, phone +7 (9169) 855317
       Project summary
       Addresses: Irkutsk district, Bolshoye Goloustnoye settlement, Pad’ Malaya,
Olkhon district, Khuzhir settlement, Shaman-rock, Slyudyanka district, area of
Baikalsk city.
       Type: construction
       Description: Construction and operation of original tourist facilities: tourist
bases, VIP-hotel, piers, sauna complexes etc are proposed in available and
currently in progress land parcels with total square are of over 20 hectares in some
of the best locations on the shore of lake Baikal.
       Total project value
       1,2 bln. rubles.
       Requested investment amount
       480 mln. rubles.
       Project payback time
       5 years.
       Available documentation on project
       Agreements on cooperation of OOO “MIF of n-BR” with Irkutsk,
Slyudyanka, Olkhon districts, Regulations of district mayors, permits, approvals,
designs etc.
       Current project implementation status
       At various stages – currently being executed certificates of the ownership
rights or long-term lease of land, design works, utility connections and
documentation, approvals, permits, business plans, contracts with clients.
       Creation of new jobs
       Up to 200 jobs.
       Tax payments
       24 mln. rubles per year.
       Proposed forms of cooperation
       Purchase of an enterprise’s share, lease of purchase of land parcels, joint
shared construction, advance payment of future operation or lease, purchase of
project.
       Contact on project
       Samoylenko Elena Gennadievna – project manager, Phone +7 (3952)
331541.
                                         30

                Trade and recreation center ―Fortuna City Mall‖, Irkutsk
       Organization name
       ООО “Chekotova P.A. Fortuna”, 1 Oktyabrskoy Revolutsii str., phone/fax
(3952) 255-699, office@fortunacorp.ru
       Project summary
       Location: the site is located in the very downtown of the city, in the main
trade street Karl Marx. A 5-minutes walking reach area includes a mass of private
construction and a block of modern multi-storied buildings, where about 10
thousand persons reside.
       New construction
       An object of commercial immovable property
       Time period till full project capacity 4 years
       Total area 125,000 sq.m.
       The complex includes outlets of large chain operators: a foods supermarket,
children’s and sports supermarkets, a home appliances supermarket, a huge gallery
of brand outlets of clothes and footwear.
       The recreational part includes a multi-room widescreen movie theater,
children recreation center, a skating ring with artificial ice. Also, the complex
includes a number of restaurants, a modern food-court with chain operators’ outlet
with 600 seats. The center is provided with convenient access driveways and a
parking lot for 3000 cars.
       Total project value
       4,152 bln. rubles.
       Requested investment amount
       70% of total project value.
       Project payback time
       6 years.
       Available documentation on project
       At present, a business plan has been prepared and design stage “Project” has
been completed.
       Current project implementation status
       Land parcel is owned. Design stage “Project” has been completed. The
design is currently in the state expert review. Approval of the city’s chief architect
obtained, façade solutions and location of the building on the city’s general layout
approved.
       Creation of new jobs
       Over 2000 jobs.
       Proposed forms of cooperation
       Project financing.
       Contact on project
       Zamaratskiy Nikolay Mikhailovich – deputy general director on strategic
development, Phone/fax (3952)255-699
       marketing@fortunacorp.ru
                                          31




                    Multifunctional Administrative-Office Center, Irkutsk
        Organization name
        ООО “Chekotova P.A. Fortuna”, 1 Oktyabrskoy Revolutsii str., phone/fax
(3952) 255-699, office@fortunacorp.ru.
        Project summary
        - Location: the facility is located in one of the key important sites of Irkutsk
city – a city quarter confined between the main streets of downtown – Timiryazeva
street.
        - New construction.
        - Facility of commercial immovable property.
        - Time period till full project capacity 3 years.
        - Total construction area – 30,000 sq.m.
        The project is an integrated construction program of a modern
Multifunctional Administrative-Office center with effective square area of about
150,000 sq.m. The first floor will be used as a trade gallery, while the internal part
of the site will be occupied with administrative-office buildings.
        Total project value
        7,128 bln. rubles.
        Requested investment amount
        70% of total project value.
        Project payback time (years)
        6 years.
        Available documentation on project
        At present, a business plan has been prepared and design stage “Project” has
been completed
        Current project implementation status
        Land parcel is owned. Design stage “Project” has been completed. The
design is currently in the state expert review. Approval of the city’s chief architect
obtained, façade solutions and location of the building on the city’s general layout
approved.
        Creation of new jobs
        Over 1000 jobs.
        Proposed forms of cooperation
        Proposed forms of cooperation
        Project financing.
        Contact on project
        Zamaratskiy Nikolay Mikhailovich – deputy general director on strategic
development, Phone /fax (3952)255-699, marketing@fortunacorp.ru
                                          32

                            Hotel and recreation center, Irkutsk
       Organization name
       ООО “Chekotova P.A. Fortuna”, 1 Oktyabrskoy Revolutsii str., phone/fax
(3952) 255-699, office@fortunacorp.ru.
       Project summary
       Location: the project is located in the central part of Irkutsk city in the main
historical street – Karl Marx. The vicinity includes a multitude of administrative
and historical buildings. A large number of museums, theaters, cafes and
restaurants are located within 5-minutes walking distance.
       - New construction.
       - Facility of commercial immovable property.
       - Time period till full project capacity 3 years.
       - Total construction area 10,000 sq.m.
       This facility will include: a hotel complex of 4 stars class for 300 rooms, a
business center, a conference hall, a trade gallery, movie theaters, restaurants,
recreation and fitness centers, underground parking lot.
       Total project value
       1,392 bln. rubles.
       Requested investment amount
       70% of total project value.
       Project payback time
       7 years.
       Available documentation on project
       At present, a business plan has been prepared and design stage “Project” has
been completed.
       Current project implementation status
       Land parcel is owned. Design stage “Project” has been completed. The
design is currently in the state expert review. Approval of the city’s chief architect
obtained, façade solutions and location of the building on the city’s general layout
approved. Agreement of intent signed with world-level hotel operator.
       Creation of new jobs
       Over 300 jobs.
       Proposed forms of cooperation
       Project financing.
        Contact on project
       Zamaratskiy Nikolay Mikhailovich – deputy general director on strategic
development, Phone /fax (3952)255-699, marketing@fortunacorp.ru
                                         33

                          Block of commercial property, Irkutsk
      Organization name
      ООО “Chekotova P.A. Fortuna”, 1 Oktyabrskoy Revolutsii str., phone/fax
(3952) 255-699, office@fortunacorp.ru.
      Project summary
      - Irkutsk, Partizanskaya str.;
      - New construction;
      - Facility of commercial immovable property;
      - Time period till full project capacity 4 years.
      - Total area (1 building): 2770 sq.m.;
      Total project value
      120 mln. rubles (price of one facility – the total planned number of facilities
– 6).
      Requested investment amount
      90% of total project value.
      Project payback time (years)
      6 years.
      Available documentation on project
      At present, a business plan has been prepared and design stage “Project” has
been completed.
      Current project implementation status
      Land parcel is owned. Design stage “Project” has been completed. The
design is currently in the state expert review. Approval of the city’s chief architect
obtained, façade solutions and location of the building on the city’s general layout
approved.
      Creation of new jobs
      Over 200 jobs.
      Proposed forms of cooperation
      Project financing.
       Contact on project
      Zamaratskiy Nikolay Mikhailovich – deputy general director on strategic
development, Phone /fax (3952)255-699, marketing@fortunacorp.ru
                                        34

                              Multifunctional center «Jam Mall»
        Organization name
        OOO “Hermitage Construction and Management"
        Moscow, 7 Derbenyovskaya naberezhnaya, bldg 16 Phone: +7 (495) 984-77-
08, fax: +7 (495) 984-77-09. www.hcmg.ru
        General director – Tkachenko Vitaliy Vladimirovich.
        Project summary
        Multifunctional center «Jam Mall» – Irkutsk, 3 Sergeeva str. Reconstruction,
services of building space rental – for trade, recreation, catering. Total building
area 30 000 m², commercial area – 21 000 m², number of floors – 2 levels, parking
lot – 750 cars.
        Total project value
        768 mln. rubles.
        Available documentation on project
        Business plan, design and cost estimate documentation, approvals and
permits are available.
        Current project implementation status
        Construction and installation works, premises development, installation of
utility networks are currently in progress. Commissioning time of trade and
recreation center – 2008.
        Creation of new jobs
        It is planned to create up to 300 jobs.
        Contact on project
        Usatiy Roman Anatolievich – Director, Irkutsk branch,
        Phone/fax (3952) 563-659, 563-665
        e-mail: uroman@inbox.ru
                                         35

                                 Aqua-recreation center

       Organization name
       Administration of city district of Sayansk municipality.
       Project summary
       Creation of an aqua-recreation center on the basis of existing enterprise. A
swimming pool with water amusements (aquapark), family recreation, traditional
and Oriental saunas, cafe, household services (dry cleaning, laundry). Creation of
fitness, pedicure and hairdresser's salons. Massage and cosmetologist rooms.
       Total project value
       75 mln. rubles.
       Requested investment amount
       75 mln. rubles.
       Project payback time (years)
       5 years
       Current project implementation status
       Existing two-storied building in municipal property within the city limit,
S=4300 m2, which is suitable for reconstruction and upgrade. Power supply,
central heating and sewage systems available. Two large swimming pools (40
cu.m. each), eight smaller pools (3 cu.m. each), four steam rooms, twelve saunas,
four large halls and eight accommodation rooms. The advantage of the project is
that the city is located in the center of the region. The neighboring cities do not
have similar facilities. Implementation of the project allows to attract residents of
the region.
       Creation of new jobs
       30 jobs.
       Tax payments
       284,5 thou.rubles.
       Proposed forms of cooperation
       Contractual, lease or sale.
       Contacts on project
       Voronova Irina Petrovna, Director, SMUP “Rynochniy complex”, Теl: +7
(39553) 5-40-75, Pokrovskiy Ivan Vladimirovich, Lead specialist of economic
development department, Sayansk municipality administration, phone: +7 (39553)
5-71-41, fax: +7 (39553) 5-69-43, mob.: 89046552987, E-mail:
econom@admsayansk.irmail.ru
                                         36

                             Sports and leisure recreation center
      Organization name
      Administration of city district of Sayansk municipality.
      Project summary
      Creation of sports and leisure recreation center. S – 4608 sq.m. Planned
services: bowling room, billiards, extreme sports (skateboard, cayoning, rock-
climbing, roller-skating). Cinema room, children attractions, shooting gallery, cafe.
      Total project value
      100 mln. rubles.
      Requested investment amount
      100 mln. rubles.
      Project payback time (years)
      5 years.
      Current project implementation status.
      The advantage of the project is that the city is located in the center of the
region. The neighboring cities do not have similar facilities. Implementation of
project will attract residents of neighboring cities.
      Completion of construction-in-progress in the city center. The construction
is municipal property. Reconstruction and upgrade required. Power supply, heat
supply, sewage connections required.
      Creation of new jobs
      25 units.
      Proposed forms of cooperation
      Contractual, lease or sale.
      Contacts on project
      Pokrovskiy Ivan Vladimirovich, Lead specialist of economic development
department, Sayansk municipality administration, phone: +7 (39553) 5-71-41, fax:
+7 (39553) 5-69-43, mob.: 89046552987, E-mail: econom@admsayansk.irmail.ru
                                         37

                             Center of winter extreme sports
       Organization name
       Administration of city district of Sayansk municipality.
       Project summary
       Development of downhill skiing base: construction of training slope, tubing
slopes, slopes of international level, half-pipe for snowboarding. A skating-ring
and smaller ice-covered slopes for children. Rental of snowmobiles not only for
adults, but also for children. Construction of special sites for slalom and freestyle.
Ski-ramp, Construction of chair-lift, parking for 200 cars, hotel complex including
15 cottages for 4 beds year, 3 saunas, restaurant with 50 persons seating capacity,
fitness and billiards rooms, indoor year-round swimming pool.
       Recreation in summer season: construction of roller-skating ground,
pavilions, where a family, or a large group may come to have a barbecue.
Paintball, streetball, rental of bicycles, quadrocycles and other sports gear. Russian
sauna. Construction of versatile sports grounds equipped with all required for
tennis, volleyball, minifootball and other sports. Competitions in extreme sports –
canyoning and rock-climbing. Having armed themselves with crossbows and
hunting weapon, fans of shoot can practice at clay pigeons or have a completion.
Paraglide will be available with instructor's services. Amusement park;
       Total project value
       150 mln. rubles.
       Requested investment amount
       150 mln. rubles.
       Project payback time
       5 years.
       Available documentation on project
       General layout.
       Current project implementation status
       53 hectares of land in municipal property. Power supply available. A skiing
stadium (60 m x 150m). Skiing track 5 km (width of track 12 m), net elevation
difference 210 m. Three skiing slopes of 500 m, 600 m, 700 m in length and 60 m
width, change of elevations 120 m. Sauna, downhill skiing base (300m2), skiing
base (280m2). Heated toilet. The base is located within 2 km from Sayansk city
along a paved road.
       Creation of new jobs
       50 jobs.
       Proposed forms of cooperation
       Contractual relations, lease or sale.
       Contacts on project
       Petrov Sergey Ivanovich – director of downhill skiing base, mob.:
89027609621, Pokrovskiy Ivan Vladimirovich, Lead specialist of economic
development department, Sayansk municipality administration, phone: +7 (39553)
5-71-41, fax: +7 (39553) 5-69-43, mob.: 89046552987, E-mail:
econom@admsayansk.irmail.ru
38
                                         39



                            Wood processing enterprises


          Creation of housing construction complex, including production of
 structural glued beams, OSP construction boards and wood armed slabs under
                           ―Dendrolight‖ technology

       Organization name
       OOO “Basis PG”. Legal address: 664082, Russia, block 1 Yuri Ten drive,
Universitetskiy district, apt. 7. Postal address: 664003 Russia, Irkutsk, 7 Pionerskiy
per..      Phone/fax:      (3952)       24-23-91,     33-17-09,      33-18-45.      E-
mail:bazispg752@mail.ru, greys2003@mail.ru
       Golyshev Pavel Alexadrovich – general director.
       Project summary
       A plant on deep processing of wood with final output of houses (up to 8
stories) using German technology of WEINING company and state-of-the-art
material Dendrolight. The plane will produce up to 4286 houses per year of 140
sq.m. (and more) each – of cottage type, and also, of multi-storied type – up to 8
stories. Program for housing production by the plant: 1 mln. sq. m per year.
       The main target of the project is to create a house construction integrated
plant on the basis of new, integrated process approach to housing construction: full
set of facilities and infrastructure, i.e. support of houses in construction (up to 8
stories) with construction materials, installable goods (windows, doors etc),
furniture and everything required to equip houses; complete provision of houses
with their own power supply, hot and cold water, treatment facilities.
       Implementation locations:
       - Usolye-Sibirskoye city, Irkutsk region (OOO “Usolyelesagroprom”);
       - Angarsk city, Irkutsk region (OAO "Angarsk electromechanical plant").
       Form of implementation: new construction, reconstruction and technical re-
equipment of existing production facilities.
       Itemized list of products planned to produce:
       - dried lumber;
       - structural glued beams;
       - oriented chipboards (OSP);
       - wood reinforced slabs «Dendrolight»;
       - trimming goods;
       - wood granules (pellets);
       - residential houses (on “turn-key” basis)
       - mini heat-generation station using biofuel;
       - equipment for local treatment facilities.
       Period of stages of project implementation:
       -planned period of construction start – 3Q 2008;
       - planned commissioning – 4Q 2010.
                                        40
       Total project value
       6 336 mln. rubles.
       Available documentation on project
       Business-plan, feasibility study, design and cost estimate documentation of
investment project have been developed by OOO “IrkutskNIILP” (Irkutsk-Angarsk
April 24, 2008).
       Current project implementation status
       1.    OOO “Usolyeagroprom” – existing wood processing enterprise (land,
buildings and equipment owned by project initiator).
       2.    OAO “Angarsk electromechanical plant” – agreement reached on
purchase of plant by project initiator. To implement this resolution and operational
management of material and financial complex, general director of OOO "Basis
PG" Golyshev P.A. was elected chairman of the board of directors of OAO
“AEMZ”.
       To the date, about 1 320 mln. rubles have been invested.
       Creation of new jobs
       Up to 5000 jobs.
       Tax payments
       Up to 3 billion rubles per year since commissioning of housing construction
plant.
       Proposed forms of cooperation
       Negotiations, search for potential investors, project financing.
       Contact on project
       Likhov Viktor Nikolaevich – executive director, Phone/fax: (3952) 24-23-
91, 33-17-09, 33-18-45. E-mail:bazispg752@mail.ru, greys2003@mail.ru.
                                       41

                 Kuytun versatile house construction integrated plant

      Organization name
      ООО “BIKles”, Legal address: 664025, Irkutsk, 40 Gagarina blvd, office
322 a, phone: (3952) 386860, 560976, fax 709222. Postal address: 664014,
Irkutsk, 95 Polyarnaya str..
      General director – Sokolov Igor Anatolievich
      Project summary
      Location of project – Kuytun settlement, Kuytun district, Irkutsk region.
      Form of implementation – new construction.
      Integrated plant is oriented at production of high-quality lumber and
trimming goods, manufacture of a full set of compact, low-rise wooden houses
adapted to climatic conditions of Siberia.
      Designed producing capacity of the plant:
      - 58500 cu.m of high-quality lumber;
      - 12000 cu.m of trimming goods;
      - 20000 cu.m of commercial chips;
      - 50000 sq. m of accommodation.
      Project implementation period – 60 months (01.05.2007 – 01.05.2012).
      Total project value
      310 mln. rubles.
      Requested investment amount
      OOO “BIKles” has 80 mln. rubles available to invest into the project. The
amount of required investments is 230 mln. rubles.
      Project payback time
      44 months.
      Available documentation on project
      Design and cost estimate documentation:
      - business plan of investment project “Organization of wood processing
enterprise on harvesting and deep processing of wood”;
      - detailed design of wood-sawing workshop with raw material processing
capacity of 75 thousand cubic meters;
      - detailed design of boilerhouse-dryer complex with annual amount of
lumber dried of 45 thousand cubic meters;
      - engineering survey was performed on the territory of the plant;
      - detailed design of rails for crane KK-12.5;
      - permits for construction of integrated plant’s buildings are available.
      Current project implementation status
      Since the beginning of project implementation, OOO “BIKles” acquired
ownership of land parcel of 3.1 hectares area. One more land parcel of 3 hectares
area, which is adjacent to the previous, is underway in the approvals procedure.
      The area of already built production facilities is 1042 sq.m. The area of
administrative and household rooms is 120 sq.m. Process sites and driveways have
concrete paving. Existing wood-sawing line is equipped with headrig
                                        42
“SLAIDETEC”, horizontal wane rig H.Y.M.Y.-400, multirip benches DK-150 and
CM-200, edge formers C2D-7A, and auxiliary equipment. This line can produce
25-30 thousand cubic meters of lumber per year. Installation of two sawing units
UBK-2 will allow to bring the capacity of wood sowing workshop to 58500 cu.m.
of lumber per year.
       The trimming goods bay is equipped with planermill C26-2N(5), jump saw,
drying chamber ASKM 15-A/
       Hoisting equipment includes 4 units.
       Exiting wood harvesting equipment allows to harvest raw wood in the
amount of 20 thousand cubic meters per year. The enterprise has four wood trucks,
two tractors, mobile household and warehousing facilities.
       Shipment and acceptance of goods is performed in leased access railway. In
future, construction of own access railway may be possible.
       Electric power is supplied from 10kV power transmission line.
       Creation of new jobs
       Requirement of house building integrated plant after commissioning of all
planned facilities will amount to about 250-300 persons.
       Presently, already 70 work places have been created.
       Tax payments
       After reaching designed capacity, tax payments to budgets of different levels
will appear as follows:
       - municipal – 125 thou.rubles.
       - regional – 41,5 mln.rubles.
       - federal – 166 mln.rubles.
        Proposed forms of cooperation
       Provision of loan for the amount of 230 mln. rubles in five trenches over 48
months. Annual credit interest rate 24%. Interest is payable on a monthly basis.
        Contact on project
       Belyaev Anatoliy Andreevich – chief technologist, phone/fax (3952) 38-68-
60; 56-09-76; 709-222.
                                        43

        Lumber production plane of 25 thou. cu.m. per year producing capacity.
       Organization name
       ООО “Kedr”, 665210, Irkutsk region, Tulun settlement, 8 Iyskaya str.,
Phone/fax (39530) 24806.
       Project summary
       Creation of a modern highly automated production of dry lumber and glued
structures.
       Project location – Tulun settlement, Irkutsk region.
       Form of implementation – new construction.
       Designed producing capacity – 25 thousand cubic meters of dry lumber.
       Project implementation period – 2008-2009.
       Territory area – 7.4 hectares
       Construction-occupied area – 4.6 hectares
       Total project value
       170 mln. rubles.
       Requested investment amount
       60 mln. rubles.
       Available documentation on project
       Plant design, feasibility study, business plan, permit for construction, land
lease contract.
       Current project implementation status
       40% of the project work scope has been completed.
       Creation of new jobs
       After full commissioning of the plant, additional 60-80 jobs will be created
in addition to existing 120 jobs.
       Tax payments
       Annual tax payments of the enterprise will amount to 3.36 mln. rubles from
wage fund, other taxes in the amount of 450 thou.rubles.
       Proposed forms of cooperation
       Payment with manufactured goods for the value of investments.
       Contact on project
       Zagolovets Igor Alexandrovich, Phone 8 (39530) 24806, mob.: 890276424
76.
                                        44

                           Wood processing integrated plant
      Organization name
      ООО “Osinskiy combinat”, Irkutsk region, Osa settlement, MTS
      Phone/fax +7 (3952) 331541, 331561, (9148) 955317
      Director – Kondratyev Anton Nikolaevich, phone +7 (9169) 855317
      Project summary
      Location of project: Osa district, Osa settlement, MTS.
      Type: upgrade
      Description: on the basis of existing owned buildings of over 12000 m2 area
on 8 hectares land parcel, construction of wood processing integrated plant is
proposed. The plant will produce wooden houses from glued beams, window
frameworks, trimming goods from Angarskaya pine and Siberian larch. Woodlot
with annual harvesting of up to 300 thousand cubic meters will be taken into lease.
Year-round harvesting and delivery not longer than 50 km, as well as deep
processing of wood will be performed using purchased production equipment.
      Houses will be made to request of customers from Moscow and Kiev
regions. Sets of products will be shipped by containers from Irkutsk (140 km from
Osa settlement) from either rented or owned railway railroad dock. Unmarketable
stock will be shipped under contracts to Middle East, China and Uzbekistan.
      Part of territory and buildings may be used during construction of gas
pipeline Kovykta – Sayansk as a repair workshop or warehouse.
      Total project value
      1,2 bln. rubles.
      Requested investment amount
      360 mln. rubles.
      Project payback time
      3 years.
      Available documentation on project
      Certificate of land, immovable property ownership rights, approvals,
permits, business plan, contracts with product consumers for sales.
      Current project implementation status
      Immovable property ownership rights have been documented, terms of
reference for power connection received, requests filed for woodlot lease,
negotiations are currently in progress on equipment supply on lease terms,
employment contracts signed with skilled specialists – managers for production
setup works, reconstruction of workshops is currently in progress.
      Creation of new jobs
      Up to 200 persons.
      Tax payments
      24 mln. rubles.
      Proposed forms of cooperation
      Purchase of an enterprise’s share, advance payment toward future
production, potential alternative production with use of available producing
                                      45
capacity, joint production, storage of property at warehouse, lease of premises,
lease of the entire equipment, purchase of project.
       Contact on project
       Kondratyev Anton Nikolaevich – project manager, Phone +7 (3952) 331541
                                         46

                            Enterprise of deep wood processing
        Organization name .
        ООО “Siblesstroy-service”, address: 666780 Irkutsk region, Ust-Kut, 17
Lugovaya str., Phone: 8(39565) 26439. Director – Capishon Vladimir Ivanovich.
        Project summary.
        OOO “Siblesstroy-service” presents an investment project to attract credit
resources required to reconstruct existing production capacities and purchase new
production capacities for the "Enterprise of deep wood processing", as well as
purchase of working assets and creation of money reserve until enterprise gains
full capacity.
        The purpose of the project is to create a deep wood processing enterprise
and, in consequence, to produce high-quality competitive products. Sales of these
products will allow to accomplish the main task – maximizing profit in
combination with resolving social issues of the enterprise staff and development of
the region.
        Total project value.
        11,53 mln. rubles.
        Requested investment amount.
        11,53 mln. rubles for the period of 36 months based on 8-12% interest per
annum.
        Available documentation on project.
        Business plan.
        Current project implementation status.
        At present, repair works have been performed at access driveway and
railway dock. Passport of railway dock was received. Contract for delivery and
withdrawal of cars (4 railway cars at a time) was signed.
        Also, works were performed to repair the crane railway and gantry crane
KKT-5, which is not currently operated. Construction of production and household
building (price – 4895 thou.rubles) is in progress, 60% of construction and
installation works have been completed. Works on construction of driveways and
sites, as well as fencing and lighting of the premises were performed.
        In the future, completion of works on premises development is planned.
        Construction of start-up phase facilities is performed in parallel with
production and sales of products. This will allow to replenish working assets of the
enterprise.
        Creation of new jobs.
        As the start-up phase is commissioned, as listed in the present business plan,
the number of workers, including G&A, will amount to 52 persons. At present, the
enterprise employs 15 persons, including the director.
        Contact on project.
        Capishon Vladimir Ivanovich – director, Phone: 8(39565) 26439.
                                          47


                       Production of construction materials
           Construction and operation of brick plant in municipality ―Bayanday
                                          district‖
       Organization name
       ООО “Resource”, Irkutsk, 24-1 Stepana Razina str., Phone/fax: 24-14-81. E-
mail: aslabkovsky.@mail.ru.
       Project summary
       Design, construction and operation of ceramic brick production plant with
use of dry compacting technology on the basis of Lurskoye deposit of brick clays.
       Location of project: Lury settlement, municipality “Bayanday district”,
Irkutsk region. The plant is located in immediate vicinity to the deposit, within 1.5
km from Lury settlement (120 km of Kachugskiy highway).
       Products produced: ceramic bricks under GOST 530-95.
       Designed capacity: 12 mln. pcs of conventional brick per year, including
façade bricks, not less than 70%.
       Implementation period: 21 month until reaching full production capacity (2Q
2010).
       We are planning to create a high-tech cost-saving enterprise, which is
equipped with all utilities of local type and meets environment protection
requirements.
       Total project value
       153,4 mln. rubles.
       Requested investment amount
       151,9 mln. rubles.
       Project payback time
       4 years (2,5 years since start of operation)
       Available documentation on project
       - land parcel allocation of 42.7 hectares area within the boundaries of
approved reserves of Lurskoye deposit is documented and land has been converted
from agricultural lot into industrial land.
       - lease of this lot is contracted till 31.12.2035 with the right of subsoil use.
       Current project implementation status
       - environmental expert review completed and preliminary agreements for
plant construction obtained.
       - cooperation agreement signed with administration of municipality
“Bayanday district”
       - marketing studies were performed and business was developed
       - contractor organizations were identified for design of the plant and mining
works. development of design and cost estimate documentation was started
       - process equipment was selected and its vendors were identified.
       Creation of new jobs
       48 persons will be employed immediately in production process.
       Tax payments
                                     48
      Annual payments at full production capacity shall be the following:
      - profit tax – 15 mln. rub.
      - property tax – 3,374 mln. rub.
      - VAT – 11,487 mln. rub.
      - natural resources production tax – 313 thou.rub.
      - Single social tax – 2,433 mln. rub.
      - Individual income tax – 1,217 mln. rub.
       Proposed forms of cooperation
      Proposed forms of investments:
      - credit line (or long-term loan);
      - shared participation of investor.
      Subject of investor’s proposal, other forms of financing and additional
options of projects support could be negotiated.
       Contact on project
      Slabkovskiy Andrey Yurievich – general director, Phone: 621-437,
      E-mail: aslabkovsky.@mail.ru
                                        49

                                     «Uniconcrete»
       Organization name
       ООО “Innovational construction materials".
       Project summary
       An Irkutsk company specializing in development of innovational
construction materials since September 2007 proposes to create a joint venture in
Irkutsk to produce silicate bricks on the basis of "Uniconcrete". Uniconcrete is a
material, which possesses unique physical and mechanical characteristics, which
were verified in lab tests. An innovational technology allows getting a softening
factor of 0.98 – product has high water-resistant properties, significant frost
resistance properties – 300 cycles (vs. 50 cycles of a conventional brick) and high
strength – 25 MPa. Planned production capacity of the plant – 12 mln. bricks per
year.
       Total project value
       42 mln. rub.
       Requested investment amount
       40 mln.. rub.
       Project payback time
       1 year and 3 months
       Available documentation on project
       Business-plan.
       Current project implementation status
       - long-term lease contract signed with an production base in Tcheremkhovo
district with total area of 1.2 hectares and production room of 500 m2. In case of
room reconstruction, the production base will pass into ownership. Next to the
building, there is a boiler-house, networks of water and power supply, railway
dock, borrow pit,
       - an equipped office received in Irkutsk innovation business-incubator,
       - production building reconstruction design available,
       - process line equipment package design is completed.
       Creation of new jobs
       39 jobs.
       Tax payments
       - profit tax: 8,145 mln.rub.
       - VAT: 7,910 mln.rub.
       - property tax: 310 thou.rub.
       - Single social tax: 1,710 mln.rub.
       Proposed forms of cooperation
       Share in charter capital.
       Contact on project
       Makarenko Sergey Viktorovich – director.
       Regional center of innovational activity development, Irkutsk state technical
university.
       664074 Irkutsk, 83 Lermontova str., room. А203.
                                  50
Phone/fax (395-2) 40-52-35, E–mail: ric@istu.edu, http://ric.istu.edu
                                         51

         Organization of glass bottles manufacturing or manufacturing of other
                                     glass goods
       Organization name
       Administration of Tulun city, 665268, Irkutsk region, Tulun, 99 Lenina str.
Phone: (39530) 21600, 21879. E-mail: tulun-mer@irmail.ru.
       Project summary
       Setting-up production of glass bottles of other glass goods on the territory of
the former Tulun glass factory.
       In 1987, East-Siberian trust of engineering and construction survey handed
over engineering-geological maps with explanatory note, which describes the
north-western Tulunskoye sand deposit, which is confined to severely weathered
Jurassic sediments. Mean net thickness is 10.7 m, mean stripping thickness – 4.6m.
The deposit has been surveyed, balance of sands under categories: А+В+С1 –
3929 thousand tons approved by territorial and state reserves committees. Balance
reserves: А+В – 6722 thousand tons, including in protective pillars – 1390.3
thousand tons, off-balance reserves – under categories А+В+С1 – 14198.88
thousand tons. Sands can be used as raw material for glass factory. Subject to
refining, sands are suitable for manufacture of window, reinforced, polished glass
and commercial tableware.
       In the same location, lower in the section, molding sands are found, which
are represented by a formation of large-grained sandstones with thickness of up to
7 m. In natural form, the sands are suitable for steel and cast iron casting. Reserves
under categories: А+В+С1 – 270 thousand tons, approved by territorial reserves
committee. Balance reserves – under categories: А+В+С1 – 505 thousand tons,
including in protective pillars 295.4 thousand tons. There are not perspectives of
additional reserves in the deposit. Deposit development period, given mean annual
production of 250 thousand tons, is 21 years.
       The northern part of Tulunskoye deposit of quartz sands (located 4-5 km
north-west of Tulun railway station, on the right side of Kurzanka river valley) is
represented by a formation of small-grained, poorly cemented Jurassic sandstones
of up to 17m thickness with stripping thickness from 0 to 32.7 m. In natural form
sands are suitable as molding sands with extra gas permeability.
       Reserves under category А – 1936,5 thousand tons, under category В –
3392, thousand tons, under category С1 -5907,4 thousand tons.
       Nizhne-Manutskoye deposit is represented by quartz sandstones weathered
to sand of ust-kulskaya suite of Ordovician. Occurrence depth 9-20 m, formation
thickness 15-17 m and up to 25 m in certain locations. If refined, sands can be used
as raw material for manufacture of high and medium sorts of glass.
       Current project implementation status
       The territory of the factory is state-owned. Objects of immovable property
located on the territory of the land parcel are privately owned. The territory of the
former factory has utilities networks.
       Geography of the location:
       Location of land parcel – Irkutsk region, Tulun, settlement Stekolniy zavod.
                                        52
       Area – 12,92 hectares.
       Distance to nearest cargo railway station – 2 km.
       Distance to administrative center of municipality – 2 km.
       Nearest facilities – Glass factory, filling station OOO "Next”, boiler-house,
5-storied residential blocks.
       Utility and transportation networks on the site:
       Water supply – site is provided with water supply
       Drainage system for waste water – municipal industrial&household sewage
system.
       Electric power supply – existing transformer substation 110/6 kW with 2x16
MW power capacity.
       Heat supply – boiler-house of Stekolniy settlement.
       Communication – automatic telephone station.
       Site land parcel use fee:
       Rate of lease fee per 1 hectare per year – 55,3 thou.rubles.
       Rate of land tax per 1 hectare per year – 55,3 thou.rubles.
       Contact on project
       Piven Viktor Mikhailovich – Mayor of municipality – “Tulun city”, Phone:
8(39530) 21600
       Andreeva Natalia Dmitrievna – deputy mayor – chair of committee on
economics and finance, Phone: 8(39530) 21043.
       E-mail: tulun-mer@irmail.ru.
                                         53

          Set-up of welding electrodes production in East Siberia with use of local
                                      raw material
        Organization name
        State educational institution
        «Irkutsk state technical university»,
        664074 Irkutsk, 83 Lermontova str.,
        Rector, professor Golovnykh Ivan Mikhailovich
        Phone/fax: 8-(3952)-40-50-00/40-51-00, e-mail: info@istu.edu
        Project summary
        It is proposed to set up production in Irkutsk or adjacent district in an area
provided by investor. Production facilities must have heating, power supply and
utilities. It must be equipped with hoisting equipment and balanced ventilation.
Total area of production facilities required – 1000 m2.
        Research&development and test works related with development and
creation of new electrode grades will be performed in experimental workshop of
department “Welding production” of Irkutsk state technical university.
        The purpose of the project: to satisfy the growing demand for electrode
products in East-Siberian region.
        Reaching profitability of production through sale of goods to large and small
consumers in the territory of East Siberia. Planned production capacity will amount
to 3 thousand tons per year. Project implementation period (until reaching full
production capacity) – 4 years.
        Total project value
        26,693 mln. rub. (calculation in prices of 2005)
        Requested investment amount
        12,820 mln. rub.
        Project payback time
        18 months.
        Available documentation on project
        Business plan, patent for electrode coating.
        Current project implementation status
        Experimental lot was manufactured and tested.
        Creation of new jobs
        Organization plane of welding electrodes production includes creation of 22
jobs, including administrative personnel and specialists – 4 persons, which will be
dealing with operational issues of the enterprise, will maintain regular account and
analysis of financial activity of the enterprise. These personnel will also exercise
control over compliance with process parameters in all stages of production, and
workers of main production process – 13 persons. Since this production is a high-
tech production process, workers must have qualification grade not less than four,
workers of auxiliary production – 5 persons.
        Tax payments
        - profit tax: 621 thou.rub.
        - VAT: 466 thou.rub.
                                      54
       - property tax: 192 thou.rub.
       Proposed forms of cooperation
       Organization of joint production and (or) share in charter capital.
       Contact on project
       Smolina Vera Petrovna – head of innovational activity development
department, Irkutsk state technical university, Phone, fax 8-(3952)-40-50-80, e-
mail: smolina.v.p@istu.edu
                                          55


                         Production of mineral resources
           Development of Nepskoye field of potassium sales in Katanga district
       Organization name
       Department of environment protection and subsoil use of Irkutsk region.
       Project summary
       The field is located in the north of Irkutsk region, in Katanga administrative
district, between the rivers Nizhnaya Tunguska and Nepa, in the northern part of
Prilenskoye plateau.
       The field is located in 295 km away from the nearest railway station Lena,
Ust-Kut city of Irkutsk region. Approved reserves under categories В+С1+С2 of
ore amount to 2 311 258 thou. tons, potassium salt – 799 285 thou.tons. Associated
production of cooking salt and bromine, as well as wood harvesting are possible.
       The project’s product is potassium fertilizers. Once the enterprise is fully
commissioned, annual production will amount to not less than 500 thousand tons
of potassium chloride, which will be not later than 10 years after state registration
of the license to the use the field.
       Nepskoye deposit, in terms of its mining and geologic conditions,
complexness and quality of ore is the best in Russia. Taking into account the
processes related to construction of East Siberia – Pacific Ocean oil pipeline, as
well as availability of large wood resources in this area, development of Nepskoye
deposit of potassium salts jointly with construction of railway into the area, which
will later be extended to Mirniy and Yakutsk, may become one of the main goals
of natural resources exploration in East Siberia.
       Main water routes are the Nizhyaya Tunguska and its left tributaries – the
Nepa, Gazhenka, Bolvaninka. The rivers Nizhnyaya Tunguska and Nepa are
navigational for small vessels during high water season.
       Electric power for development of Nepskoye deposit may be supplied from
Ust-Ilimsk hydroelectric power station (distance of 300 km to Ust-Ilimsk or 150
km to Kirensk).
    Economic evaluation of development of Nepskoye deposit demonstrates its
high profitability given the following parameters:
Annual ore production – 10.9 mln. tons;
Period of commercial reserves availability – 36 years;
Construction period – 2 years;
Length of railway – 100 km,
Product price – 80 USD per 1 ton.
These parameters provide the following indicators:
- Net annual profit of $104.6 mln.;
                                          56
- Net profit over the period of production – $3.7 bln.;
- Internal rate of return – 19.38 %;
- Payback period – 4.5 years;
- NPV – $451.5 mln.
      Total project value
      3 bln. rub.
      Creation of new jobs
      700 jobs.
      Tax payments
      Annual tax payments – 615 mln. rub.
      Proposed forms of cooperation
      Cooperation with Irkutsk region administration within the framework of
private sectors and state partnership.
      Contact on project
      Gaikova Olga Yurievna – Director, Department of environment protection
and subsoil use of Irkutsk region, Phone (3952) 25-65-96, 25-62-46, e-mail:
gaikova@govirk.ru , nedra@govirk.ru.
                                         57

                  Savinskoye magnesite deposit in Tcheremkhovo district
       Organization name
       Department of environment protection and subsoil use of Irkutsk region.
       Project summary
        The deposit is located in 120 km south-west of Tcheremkhovo town of
Irkutsk region. It is a high-dipping (50-85) toward north-east monocline deposit of
9 km length and thickness from 150 to 550 m at depth of 700 m. Chemical
composition of magnesite is described by high content of useful element –
magnesium oxide and low content of idle inclusions. Reserves are approved under
categories В+С1+С2 in the amount of 1945429 thou.t, including under category B –
95500 thou.t.
       In terms of quality of magnesite ore and amount of reserves, Savinskoye
deposit is a unique deposit, which provides production of magnesium fireproof
goods of world class.
       High quality of raw material and low production cost, availability of sales
market in the territory of the region, in Russia and in former USSR countries make
this deposit one of the most prospective and economically profitable development
objects. In terms of quality of magnesite ore and amount of reserves, Savinskoye
deposit is a unique deposit, which provides production of magnesium fireproof
goods of world class. Reserves are approved under categories В+С1+С2 in the
amount of 1945429 thou.t, including under category B – 95500 thou.t
       The results of lab and semi-production tests made on Savinskoye deposit
ores demonstrated that magnesites are suitable for production of high-quality
magnesite, magnesite-chromite and chrome-magnesite fireproof goods, metallic
magnesium and metallurgical priming powder.
       High quality of raw material and low production cost, availability of sales
market in the territory of the region, in Russia and in former USSR countries make
this deposit one of the most prospective and economically profitable development
objects.
       The project's product is fireproof goods, metallical magnesium, molten
periclase. Enterprise construction period – 2 years. Output capacity – 250 thou.
tons of per year.
       Development of transportation infrastructure – construction of railway and
electric power transmission lines is required to create most profitable conditions of
deposit development.

      Total project value
      Capital investments – 500 mln.rub.
      Creation of new jobs
      Creation of 500 jobs.
      Tax payments
      Annual payments and taxes – 220 mln. rub.
      Proposed forms of cooperation
                                       58
      Cooperation with Irkutsk region administration within the framework of
private sectors and state partnership.
      Contact on project
      Gaikova Olga Yurievna – Director, Department of environment protection
and subsoil use of Irkutsk region, Phone (3952) 25-65-96, 25-62-46, e-mail:
gaikova@govirk.ru , nedra@govirk.ru.
                                         59

                     Ishideyskoye fossil coal deposit in Tulun district
       Organization name
       Department of environment protection and subsoil use of Irkutsk region.
       Project summary
       The deposit is located in 90 km from district center of Tulun, Irkutsk region.
In terms of explored reserves, Ishideyskoye deposit is classified as large. Approved
reserves under categories А+В+С1 amount to 832 mln. tons, off-balance reserves
of С2 category – 17.6 mln. tons.
       Coal from Ishideyskoye deposit belongs to grade D (long-flamed), group 1D
(first long-flamed), subgroup 1DB (first long-flamed vitrinite) and it meets
technical requirements for long-flamed coals of East Siberia for various
applications – flare-layer and dust combustion in Heat and power generation
stations, in cement and lime furnaces, steam engines, brick-baking furnaces, for
municipal and household purposes.
       Development of transportation infrastructure – construction of railway and
electric power transmission lines is required to create most profitable conditions of
deposit development.
       Enterprise construction period is two years. Production capacity – 10 mln.
tons of coal per year.
       Total project value
       Capital investments 2,6 bln. rubles.
       Creation of new jobs
       300 jobs.
       Tax payments
       Annual payments and taxes – 375 mln. rub.
       Proposed forms of cooperation
       Cooperation with Irkutsk region administration within the framework of
private sectors and state partnership.
       Contact on project
       Gaikova Olga Yurievna – Director, Department of environment protection
and subsoil use of Irkutsk region, Phone (3952) 25-65-96, 25-62-46, e-mail:
gaikova@govirk.ru , nedra@govirk.ru.
                                        60

                           Bolshetagninskoye rare metals deposit
       Organization name
       Department of environment protection and subsoil use of Irkutsk region.
       Project summary
     Bolshetagninskoye deposit is located 100 km south of railway station Tulun. It
is a part of Tagninsko-Beloziminskaya group of rare metal deposits and ore
occurrences, which are related with massives of ultrabasic alkalic rocks and
carbonatites.
     This is one of the most prospective rare metals deposits for development in
Russia. Specific feature of Bolshetagninskoye deposit is the confinedness of rich –
phosphorus-niobium ore occurrence to microclinites and, to a smaller extent, to
carbonate-microclin-biotite metasomatite-“micites”. The primary survey and
exploration works revealed 11 ore bodies.
     Engineering-geologic and hydrogeological features of the field are favorable to
production with open method. Also, principal possibility of significant ore quality
enhancement (up to 1.26-1.33 times), when sent for deep refining, was established,
which provides volume reduction of up to 25-29%.
       Geologic and economic evaluation of the deposit demonstrate high
profitability of its development.
       Development of transportation infrastructure – construction of railway and
electric power transmission lines is required to create most profitable conditions of
deposit development
       Niobium is used as an alloying element in special steels – heavy-duty steels,
corrosion-proof steels, heat-resistant steels for aviation, space and pipe-rolling
industries. This projects presumes production of niobium pentoxide for alloying of
steel and phosphorus pentoxide.
       Enterprise construction period is two years. Production capacity – 700 thou.
tons of ore per year.
       Total project value
       Capital investments 1,5 bln.rub.
       Creation of new jobs
       300 jobs.
       Tax payments
       Annual payments and taxes – 334 mln. rub.
       Proposed forms of cooperation
       Cooperation with Irkutsk region administration within the framework of
private sectors and state partnership.
       Contact on project
       Gaikova Olga Yurievna – Director, Department of environment protection
and subsoil use of Irkutsk region, Phone (3952) 25-65-96, 25-62-46, e-mail:
gaikova@govirk.ru , nedra@govirk.ru.
                                        61

                  Kapaevskoye deposit of iron ore in Ust-Ilimsk district
      Organization name
      Department of environment protection and subsoil use of Irkutsk region.
      Project summary
      Kapaevskoye iron ore deposit is located on the right bank of the Angara river 75
km north-east of the district center – Ust-Ilimsk city. It is connected to the city by a
wood-logging road of 120 km length.
      Main ore-forming minerals of the field are magnetite and products of its partial
oxidation – martitized black iron-ore and martite.
      Reserves under categories В+С1 – 69 721 thou.tons with mean content of
32.50% (protocol of GKZ #8034 1978).
      Additional reserves of 90-100 mln. tons is possible to the dept of 1400 m and
300-400 mln. tons in the interval of depth 1400-2000 m.
      Rock-mining technical conditions for open-–type development are favorable, the
walls of the quarry are stable for natural conditions. Conditions for subsurface
development are satisfactory.
      Total project value
      Capital investments 652 mln.rub.
      Creation of new jobs
      200 jobs.
      Tax payments
      Annual payments and taxes – 75 mln. rub.
      Proposed forms of cooperation
      Cooperation with Irkutsk region administration within the framework of
private sectors and state partnership.
      Contact on project
      Gaikova Olga Yurievna – Director, Department of environment protection
and subsoil use of Irkutsk region, Phone (3952) 25-65-96, 25-62-46, e-mail:
gaikova@govirk.ru , nedra@govirk.ru.
                                        62

                  Neryundinskoye iron ore deposit in Ust-Ilimsk district
       Organization name
       Department of environment protection and subsoil use of Irkutsk region.
       Project summary
       Neryundinskoye iron ore deposit is located within Angaro-Katskiy iron
ore vicinity, 100 km north-east of Ust-Ilimsk city and it is connected to Ust-
Ilimsk by a road of 170 km in length, which passes through Polivskoye and
Kapaevskoye iron ore deposits. A network of wood-logging roads exists in the
area. Power supply in the are is provided from Ust-Ilimsk hydroelectric power
station.
       Within the area, there are deposits of clay, sand and gravel mix,
construction rock.
       In terms of general iron content, there are 5 grades of ore: I – over 45%; II
– 35-45%; III- 26-35%; IV- 18-26%, V- off-balance -14-18%.
       Technological properties indicate the possibility of refining iron ore by
means of magnetic separation producing saleable concentrate with general iron
content of 62-64% with separation of iron into concentrate of 73-81%.
       Iron ore reserves of Neryundinskoe field under categories are the
following, thou.tons: А+В+С1 – 634 925, incl. В – 123 023, С1 – 511 902, С2 –
74 899, off-balance reserves -113 447.
       In terms of geologic structure, the deposit belongs to 2nd group.
       Hydrogeological and engineering-geologic conditions of the deposit are
medium.
       Enterprise construction period is 2 years.
       Total project value
       Capital investments 2,6 bln. rubles.
       Creation of new jobs
       300 jobs.
       Tax payments
       Annual payments and taxes – 435 mln. rubles.
       Proposed forms of cooperation
       Cooperation with Irkutsk region administration within the framework of
private sectors and state partnership.
       Contact on project
       Gaikova Olga Yurievna – Director, Department of environment protection
and subsoil use of Irkutsk region, Phone (3952) 25-65-96, 25-62-46, e-mail:
gaikova@govirk.ru , nedra@govirk.ru.
                                          63

            Setting-up enterprise to produce quarzites on the basis of Uvatskoye
                                         deposit
       Organization name
       ОАО “Korshunovskiy GOK" (mining and beneficiation complex). Legal
address: 125993, Russian Federation, Moscow, 1 Krasnoarmeyskaya str. Postal
address: 665651, Irkutsk region, Nizhneilimsk district, Zheleznogorsk-Ilimskiy,
9А/1 Ivaschenko str., Phone (39566) 32605, e-mail: office@korgok.ru. Efimenko
Yuri Nikolaevich – Managing Director.
       Project summary
       Location: Irkutsk region, Nizhneudinsk district.
       Form of project: new construction.
       Project product: quartzites of grade КК-97 and КК-98.
       Designed capacity: 760 thou.tons of quartzites per year.
       Implementation period: till 2018.
       Total project value
       1550 mln. rubles.
       Project payback time
       10 years.
       Available documentation on project
       Technical-economic proposal, developed by OAO “NTC NIIOGR”,
Chelyabinsk city.
       Current project implementation status
       Currently developed: “Design for survey and geologic exploration works" by
FGUNPGP "Irkutskgeophysica" branch "Angarskaya exploration division", expert
review of " Design for survey and geologic exploration works” by East-siberian
branch of FGUP “Geolexpertiza”. Resolution of Irkutsknedra passed to grant
deposit development license on May 28, 2008.
       Creation of new jobs
       Social effect:
       -creation of over 230 new efficient jobs;
       - organization of in-service training of enterprise workers on the basis of
training base of Korshunovskiy GOK for upgrade of their qualification;
       - creation of 70-100 jobs in adjacent industries – construction, electric and
heat generation, wood and metal processing etc;
       - allocation of funds for repair of educational institutions, for maintenance of
municipal Veterans' council, for repair and construction of motor roads;
       - construction and reconstruction of motor road and 35 kV power
transmission line from Nizhneudinsk to the field.
       Tax payments
       When having reached full design capacity, tax payments will amount to the
following:
       Federal budget – approx. 350 mln.rub. per year;
       Regional budget – approx 130 mln.rub. per year;
       Local budget – approx 10 mln.rub. per year.
                                    64
     Contact on project
     Sen’ Konstantin MIkhailovich – development director, Phone/fax (39566)
32605, e-mail: office@korgok.ru.
                                        65


                               Infrastructure projects
       Creation and development of single heat supply system for cities of Irkutsk
                                    and Angarsk
       Organization name
       ОАО “Irkutskenergo”, general director Konovalov Andrey Pavlovich
       664025 Irkutsk, 3 Sukhe-Batora str., Phone (395-2) 790-201, 790-300, fax
(395-2) 790-899
       e-mail: idkan@irkutskenergo.ru, www.irkutskenergo.ru
       Project summary
       The main target of the project is to convert heat load of fuel oil , coal and
electric boiler-houses of Irkutsk to Heat and power generation stations of OAO
“Irkutskenergo” located in Irkutsk and Angarsk, having thus formed a single heat
supply system for the two cities through a set of new-built heat supply pipelines.
       Implementation of this project will promote to the following:
      - creation of infrastructural base of development of industrial zone and
residential housing construction between the cities of Irkutsk and Angarsk,
      - increased reliability and efficiency of heat supply;
      - slowing down growth of heat and electric power sale rates;
     - improvement of environmental situation in the city thanks to close-
down of fuel-oil boiler houses (reduction of hazardous release).
      Construction will be implemented in 5 stages: 2004 – 2013.
       1 stage. 2004-2005 Construction of heat supply pipeline №4 between
Novoirkutskaya Heat and power generation station and RK “Sverdlovskaya”.
       2 stage. 2006-2008 Construction of heat supply pipeline from RK
“Sverdlovskaya” to the right bank part of Irkutsk city.
       3 stage. Construction of heat supply pipeline from Heat and power
generation station -10 of Angarsk to Novo-Lenino district of Irkutsk.
       4 stage. 2010-2011 Construction of heat supply pipeline from Novo-Lenino
district of Irkutsk to the area of aircraft construction plant boiler-houses.
       5 stage. 2011-2013 Construction of heat supply pipelines in Leninskiy
district of Irkutsk and their crossing to the right bank of the Angara river.
       Total amount of investments
       12,2 bln.rubles.
       Requested investment amount
       6,1 bln.rubles.
       Project payback time
       11.4 years
       Available documentation on project
       Design and cost estimate documentation for the 1st stage has been developed
by SibNIIPIEnergoprom in 2006, approved by OAO "Irkutskenergo".
                                        66
      Design and cost estimate documentation for the 2nd stage has been
developed by OAO “Orgstoryproject” in 2006, currently being reviewed by OAO
“Irkutskenergo”.
      Current project implementation status
      1-2 stages of construction have been carried out. Design and cost-estimate
documentation is being developed for 3-5 stages of the project.
      Proposed forms of cooperation
      Joint financing on contractual terms, in the part of infrastructure facilities
construction.
      Contact on project
      Shumeev Dmitriy Sergeevich – head of development department ОАО
"Irkutskenergo" Phone 790-682 e-mail: shumeev@irkutskenergo.ru
                                         67

         Integrated development of electric power transmission network of the
                            north of Irkutsk region

       Organization name
       ОАО “Irkutskenergo”, general director Konovalov Andrey Pavlovich
       664025 Irkutsk, 3 Sukhe-Batora str., Phone (395-2) 790-201, 790-300, fax
(395-2) 790-899
       e-mail: idkan@irkutskenergo.ru, www.irkutskenergo.ru
       Project summary
       - development of power transmission network infrastructure for power
supply to new consumers in the north of Irkutsk region.
       - creation of a large electric power generation hub with use of associated and
natural gas of northern fields
       - unification of power generation systems of Yakutia republic and Irkutsk
region.
       - implementation of the project will allow to resolve a number of important
social and economic challenges associated with development of natural potential
and accelerated development of Irkutsk region
       - attraction of new large companies into the region; new jobs; increasing tax
payments into the budget
       - location of investment project: north and north-west of Irkutsk region
(Taishet, Ust-Kut, Ust-Ilimsk, Bodaibo)
       - Period of investment project implementation: 2008-2016.
       Total amount of investments
       64391 mln.rub. – in estimated prices.
       Available documentation on project
       Technical and economic proposal on integrated development of electric
power transmission networks in northern territories of Irkutsk region (OAO
“Siberian energy generation research and development center”).
       Current project implementation status
       A package of documents is being prepared for participation in selection
procedure to obtain financing from Investments fund of Russian Federation.
       Contact on project
       Shumeev Dmitriy Sergeevich – head of development department ОАО
"Irkutskenergo" Phone 790-682 e-mail: shumeev@irkutskenergo.ru
                                        68

         Integrated program of construction and reconstruction of water supply
      and drainage facilities for agglomerate of Irkutsk-Angarsk-Shelekhov
       Organization name
       Irkutsk region’s regional fund of development, Irkutsk, 2а/3 Rabochaya str.,
  rd
3 floor, Phone:78-01-10, 78-01-09.
       Kozmin Alexey Pavlovich – Fund president.
       www.frrio.ru, e-mail:info@frrio.ru
       Project summary
       The proposal fully complies with the targets and goals of priority National
project “Affordable and comfortable housing – to citizens of Russia", strategy of
long-term development of Irkutsk region. The project includes large-scale upgrade
of water supply and drainage systems: construction of new water ducts, drainage
headers, pump stations, replacement process equipment and implementation of
new water treatment technologies in the territory of Irkutsk agglomerate cities
(Irkutsk, Angarsk, Shelekhov).
       The project will result in construction of infrastructure, which will provide
for development of housing construction.
       Project implementation period: 2009 – 2015.
       Total project value
       20 800 mln. rubles.
       Requested investment amount
       20 000 mln. rubles.
       Current project implementation status
       Pre-project proposal.
       Proposed forms of cooperation
       Joint financing, concession contract.
       Contact on project
       Potorochenko Nikolay Anatolievich – executive director of Regional
development fund of Irkutsk region, Phone:78-01-10, 78-01-09.
       .
                                        69

                          Construction of waste processing plant
       Organization name
       Irkutsk region’s regional fund of development, Irkutsk, 2а/3 Rabochaya str.,
 rd
3 floor, Phone:78-01-10, 78-01-09.
       Kozmin Alexey Pavlovich – Fund president.
       www.frrio.ru, e-mail:info@frrio.ru
       Project summary
       Creation of an enterprise for processing, detoxication of waste and
production of electric power and heat from isolated biomass. Obtainment of profit,
social and environmental effect.
       Total project value
       1 400 mln. rubles
       Project payback time
       About 5 years.
       Current project implementation status
       Pre-project proposal
       Contact on project
       Potorochenko Nikolay Anatolievich – executive director of Regional
development fund of Irkutsk region, Phone:78-01-10, 78-01-09.
                                         70

        Construction of high-speed rail transport connecting agglomerated cities
                         of Irkutsk, Angarsk and Shelekhov
       Organization name
       Irkutsk region’s regional fund of development, Irkutsk, 2а/3 Rabochaya str.,
  rd
3 floor, Phone:78-01-10, 78-01-09.
       Kozmin Alexey Pavlovich – Fund president.
       www.frrio.ru, e-mail:info@frrio.ru
       Project summary
       Description of high-speed transport route.
       Section 1: reconstruction of existing part of tram rails in Angarsk for 2 types
of trams – high-speed and conventional;
       Section 2: construction of a single-lane railway parallel to Transsiberian
railway for high-speed tram in the distance between the area of Yuzhnaya station
in Angarsk to the turning of Irkutsk bypass railway, south of “Irkutsk –
Sortirovochniy" station;
       Section 3: use of existing railway of Transsiberian route till junction of
Irkutsk bypass railway, north of entrance into Shelekhov city
       Section 4: construction of single-lane track along Transsiberian railway for
high-speed tram within boundary of residential and industrial construction of
Shelekhov city to railway station “Goncharovo”;
       Section 5: construction of rack for entry and exit of high-speed tram from
railway line in the are of "Irkutsk-Passajirskiy” station onto tram rails of old
Angarskiy bridge;
       Section 6: reconstruction of old Angarskiy bridge and existing tram rails for
circular route of high-speed transport around the center of Irkutsk city.
       In addition to this, in order to implement the proposed system, the following
needs to be performed:
       expansion and reconstruction of depot;
       reconstruction and existing and construction of new stops;
       purchase of trams set.
       Implementation period for all of the above: 2010 – start-up of transportation
between center of Angarsk – Irkutsk – Shelekhov, 2011 – commissioning of
connection to old Angarskiy bridge into the center of Irkutsk.
       Contact on project
       Potorochenko Nikolay Anatolievich – executive director of Regional
development fund of Irkutsk region, Phone:78-01-10, 78-01-09.
                                       71

                  Construction of transportation and logistics complex
      Organization name
      Project initiator – Irkutsk state university of railways, rector – Khomenko
Andrey Pavlovich.
      Project summary
      Optimization of the system of export-import, transit and passenger
transportation on the basis of a single legal regulator basis and conduct of
harmonized regional policy. Enhanced coordination in operation of various means
of transport in organization of mixed and intermodal transportation, due
organization of integrated transport service for customers; expansion of the range
of provide services and improvement of their quality.
      Total project value
      4,9 bln. rubles.
      Available documentation on project
      Pre-project intent.
      Current project implementation status
      Preliminary location close to airport “Irkutsk-Noviy” in Kluchevaya valley
has been selected.
      Proposed forms of cooperation
      State and private sector partnership.
      Contact on project
      Kashtanov Yuri Borisovich – head of regional programs department Irkutsk
State University of Railways, Phone +7 (3952) 63-83-58.
                                        72

              Waste sorting complex with isolation of secondary resources
      Organization name
      ООО “SibEcoTrans”,
      Legal address: 664044, Irkutsk, 186-13 Radischeva str.
      Actual address: 66405, Irkutsk, 202/3-1 Baikalskaya str., Phone (3952) 22-
99-77, 40-66-04, fax (3952) 227-225
      Director – Alexeev Igor Mikhailovich
      Project summary
      Location: in the area of Markovo settlement.
      Form of implementation: construction of new waste sorting complex.
      Product manufactured in the project: isolation of secondary resources from
general mass of solid waste and minimization of the amount of buried waste.
      Purpose: resource saving and rational nature use.
      Implementation period, till reaching full project capacity – 6 months
      Total project value
      40 mln. rubles.
      Requested investment amount
      20 mln. rubles.
      Project payback time
      36 months
      Available documentation on project
      Business-plan of investment project
      Current project implementation status
      Currently, license is obtained for the right to handle hazardous waste till
2013, existing infrastructure is available, which allows sorting of waste, equipment
and special vehicles have been procured (partially).
      Creation of new jobs
      Planned additional number of new jobs – 58.
      Tax payments
      01.07 – 31.12.08 – 665 thou.rub;
      - 31.12.09 – 6,770 mln. rubles;
      - 31.12.10 – 12,790 mln. rubles;
      - 31.12.11 – 6,749 mln. rubles.
      Tax payments are described in greater details in business plan.
      Proposed forms of cooperation
      Investment of 20 mln. rubles.
      Contact on project
      Alexeev Igor Mikhailovich – director, Phone (3952) 22-99-77, 40-66-04, fax
(3952) 227-225
                                          73

                          Construction of cremation center in Irkutsk
        Organization name
        State educational institution “Irkutsk state technical university”
        664074 Irkutsk, 83 Lermontova str.
        Full name of head: rector, professor Golovnykh Ivan Mikhailovich
        Tel/fax: 8-(3952)-40-50-00/40-51-00, e-mail: info@istu.edu
        Project summary
        The reason for writing this thesis is a long overdue necessity for construction
of a cremation center in Irkutsk to be funded by investors.
        The cremation center will be an autonomous non-for-profit organization. It
is expected to attract certain ritual services of the city and individuals as investors
for the cremation center.
        This organization will be called to satisfy the social needs related to
cremation services, allocation of site or a niche in columbarium, execution of death
certificate, body storage in morgue, catafalque and bus service, orchestra services;
publication of obituary, photographer services etc
        The location of cremation center complex may be a specially allocated site
in the city boundary or adjacent to it. Special attention is paid to the fact that
cremation center building must be located not closer than 3 km away from
residential blocks.
        Cremation center complex may be located on the territory of existing city
cemetery, with a columbarium.
        Total project value
        30 mln. rubles.
        Requested investment amount
        30 mln. rubles.
        Project payback time
        4,5 years
        Available documentation on project
        Business plan.
        Current project implementation status
        Level of business planning.
        Creation of new jobs
        Total staff list of the enterprise is planned in the amount of 15 persons,
including: director (1 person), chief accountant (1 person), mechanic (1 person),
fitter (1 person), furnace operator (8 persons), security guard (2 persons),
administrator (1 person). Additionally, funeral ceremony masters, musicians and a
photographer will be employed on contractual basis.
        Tax payments
        843 thou.rubles.
        Proposed forms of cooperation
        Share in charter capital.
        Contact on project
                                         74
       Smolina Vera Petrovna – head of innovation activity development
department, Irkutsk state technical university, Phone, fax 8-(3952)-40-50-80 , e-
mail: smolina.v.p@istu.edu
                                       75


                         Production of food and drinks
                        Baikal water bottling plant ―Medved‖

      Organization name
      Self-employed entrepreneur “Samoylenko Elena Gennadievna”, 664003,
Irkutsk, 21-1 Kievskaya str., Phone/fax +7 (3952) 331541, 331561, 293837
      Director – Samoylenko Elena Gennadievna phone +7 (9021)712816
      Project summary
      Type: new construction on the shore of Baikal lake.
      Location: currently being agreed
      Description: environmentally-clean enterprise for bottling of Baikal water.
      Design capacity: 1 mln. liters of water per year.
      Project implementation period: 2,5 years
      Total project value
      720 mln. rubles.
      Requested investment amount
      720 mln. rubles.
      Project payback time
      5 years.
      Available documentation on project
      Feasibility study, business plan.
      Current project implementation status
      Business plan.
      Creation of new jobs
      Up to 50 jobs.
      Tax payments
      24 mln. rubles.
      Proposed forms of cooperation
      Partnership
      Contact on project
      Kopylov Alexander Ivanovich – project manager, Phone +7 (9148) 996300
      e-mail: Kopylov.Aleksand@mail.ru
                                        76

                      Field development and bottling of potable water
       Organization name
       ООО “Tagninskoye”, address: Irkutsk region, Zalari district, Tagna village.
       Project summary
       Open joint-stock company “Tagninskoye” proposes potable water of very
high quality for business.
       Based on preliminary evaluation, potable water may be offered to a wide
range of consumers:
       - Residents, enterprises and organizations of Zalari settlement and Zalari
district;
       Implementation of this project will resolve the following tasks:
       - meeting the consumers’ demand for high-quality potable water;
       - creation of sustainable source of income;
       - increasing deductions into budgets of all levels;
       - provision of new jobs.
       The main purpose of the present business of getting profit from bottling and
sale of competitive product (water). Implementation of modern technologies is
planned.
       The purpose of the present business plan is to consider the proposed
production from the point of view of marketing synthesis and to justify the
solutions for strategic planning of operations of OOO “Tagninskoye”.
       The product recommended for sale has passed all stages of process
development and test marketing.
       Total project value
       900 thou.rub.
       Requested investment amount
       900 thou.rub.
       Project payback time
       13,5 months
       Creation of new jobs
       6 jobs.
       Proposed forms of cooperation
       Credit resources need to be attracted.
       Contact on project
       Akhmetov Alfrid Shafkatovich – mayor of municipality “Zalari district”,
Phone: 8(39512) 2-11-05, E-mail: zaladmin@irmail.ru
                                         77

                                      Innovations
            Organization of enterprise providing services on pipeline cleaning
       Organization name
       State educational institution
       “Irkutsk state technical university”,
       664074 Irkutsk, 83 Lermontova str.,
       Rector, professor Golovnykh Ivan Mikhailovich
       Phone/fax,: 8 (3952) 40-50-00, 40-51-00, e-mail: info@istu.edu
       Project summary
       The project presumes creating an enterprise to provides services of cleaning
the inner surface of pipelines from solid deposits. At present, both at industrial
enterprises and in housing maintenance enterprises the problem of obstruction in
pipeline systems with various deposits exists. Most problematic of all deposits are
solid deposits. However, the enterprise will possess a newly developed unit for
cleaning pipelines from solid deposits, which has a number of advantages before
other units and methods of cleaning.
       In order to implement this project, a loan needs to be obtained for the
amount of 1.8 mln.rubles for three months with 12% annual interest for purchase
of required equipment, lease of premises etc. Over this period, the project will pay
itself back, even if it starts functioning in the second month. The planned scope of
works in the second month will amount to 10% of total planned, in the third month
– 50%. We will be paying back interest back both in the second and third month.
In the third month, the interest paid will be doubled. The body of credit will be
paid back in full in the third month. The developers of this project will contribute
the amount of 10 thousand rubles as a charter capital, as well as intangible assets
(patent for the unit).
       In order to implement the project, it is planned to lease premises of 100m 2
total square area from Irkutsk state technical university. Out of these, 20m2 will be
used as office space for the enterprise, while the remaining 80 will be used as a
garage. These premises are located in the territory of the university’s technical
park. They are fully equipped with utilities (power, water, heating, sewage), they
are located close to a major road, have good access ways and a municipal transport
stop nearby. Lease fee will amount to 200 rubles per one square meter per month.
Total lease payment for the entire area will thus amount to 20000 rubles per month.
       Total project value
       1,8 mln. rubles.
       Requested investment amount
       1,8 mln. rubles.
       Project payback time
       1 year.
       Available documentation on project
       Patent, business plan, financial plan, production plan, organization plan.
       Current project implementation status
                                     78
      There is a production workshop equipped with metal-cutting equipment, an
experimental lab with a stand for studies and R&D works.
      Creation of new jobs
      15 jobs
      - general director
      - accountant
      - foreman
      - workers (6 persons)
      - drivers (3 persons)
      - welders (3 persons)
      Tax payments
      6,953 mln. rubles, including:
      Property tax 27,6 thou.rub.
      Profit tax 6,9 mln.rub.
      Transport tax 2,4 thou.rub.
      Proposed forms of cooperation
      Requested investments – 1,8 mln. rub.
      Contact on project
      Myzel Igor Gennadievich – associate professor, mob. 73-83-11, Phone/fax
40-57-24, e-mail: tata@istu.edu
                                         79

           Organization an enterprise providing renovation services for in-field
                                 pipelines in oil fields
       Organization name
       State educational institution
       “Irkutsk state technical university”,
       664074 Irkutsk, 83 Lermontova str.,
       Rector, professor Golovnykh Ivan Mikhailovich
       Phone/fax,: 8 (3952) 40-50-00, 40-51-00, e-mail: info@istu.edu
       Project summary
       The target of the project is to enhance reliability of in-field pipelines and
reduction of accidents number.
       The solution is coating the internal side of the pipe with polymer concrete,
which will extend the pipeline’s lifetime by 25 years and will exclude formation of
solid deposits.
       Presently, all existing methods only allow coating of straight parts of
pipelines. This fact significantly complicates repair, because a real-life pipeline
often has 90º turns.
       Our method allows application of coating on pipelines with 90º turns built as
offsets (with radius less than 1.5D). This enables us to restore the pipeline without
excavation works.
       For implementation of our method, it is possible to use existing process
equipment, which is available in fields (cement mixers, pumps, compressors).
       Resulting from project implementation, it is planned to start production of
original process equipment – units for preparation of pipe to coating, coating tools,
launch and pick-up chambers. In this case, in order to perform restoration works, it
will suffice to delivery the required amount of components for coating to the
facility and to bring original process equipment, which is quite compactly sized.
       Preparation of pipeline for coating is performed by technical personnel of
the field. At preliminary stage, the pipeline is stripped and it is completely cleaned
of was and sulphates. The pipe’s passing capacity is checked with a special pig.
Launch and pick-up chambers are installed.
       After protective coating was applied and its strength was gained, the pipeline
is hydrotested and welded to the main pipe.
       Development of the technology will allow to restore the pipeline over up to
1 km lengths.
       The quantity of pipelines restorable using the above method in Russia
amounts to about 20 thousand kilometers.
       At the given stage, investments are required to complete R&D works, which
are related to refinement of coating application technology and selection of
protecting coating components.
       Total project value
       5 mln. rubles.
       Requested investment amount
       3 mln. rubles.
                                     80
      Project payback time
      2 years.
      Available documentation on project
      Patent application, business plan, financial plan, production plan.
      Current project implementation status
      There is a production workshop equipped with metal-cutting equipment, an
experimental lab with a stand for studies and R&D works
      Creation of new jobs
      15 jobs
      - general director
      - accountant
      - foreman
      - workers (6 persons)
      - drivers (3 persons)
      - welders (3 persons)
      Tax payments
      6,9 mln. rubles, including:
      - Property tax 27,6 thou.rub.
      - Profit tax 6,9 mln.rub.
      - Transport tax 2,4 thou.rub.
      Proposed forms of cooperation
      Requested investments amount to 3000000 rubles
      Contact on project
      Myzel Igor Gennadievich – associate professor, mob. 73-83-11, Phone/fax
40-57-24, e-mail: tata@istu.edu
                                        81

                                        ―Micron‖
       Organization name
       ООО Research and production enterprise “Baikal-Biosynthesis”
       Project summary
       ООО Research and production enterprise “Baikal-Biosynthesis” created on
December 16, 2004, specializing in development and introduction of new dietary
supplements and medicines on the basis of natural raw materials proposes to create
a joint venture for production of dietary supplement "Micron", which is designed
to relieve alcohol withdrawal syndrome, as well as for treatment of various liver
diseases (hepatitis, fatty hepatosis, fibroid induration) and gall bladder
(cholecystitis, cholelithiasis). Ready product is jelly capsules packed into plastic
bottles. Planned production capacity is 100 thousand bottles per year.
       Total project value
       2,35 mln. rubles.
       Amount of requested investments
       1,35 mln. rubles.
       Project payback time
       10 months.
       Available documentation on project
       Business plan.
       Current project implementation status
       - R&D completed;
       - an experimental sample is available.
       Creation of new jobs
       5 jobs.
       Tax payments
       - profit tax: 1,12 mln. rub.
       - VAT: 1,155 mln. rub.
       - property tax: 12,8 thou. rub.
       - Single social tax: 335 thou. rub.
       Proposed forms of cooperation
       Share in charter capital.
       Contact on project
       Makarenko Sergey Viktorovich – director.
       Regional center of innovational activity development, Irkutsk state technical
university.
       664074 Irkutsk, 83 Lermontova str., room А203.
       Phone/fax (395-2) 40-52-35
       E–mail: ric@istu.edu
       http://ric.istu.edu
                          Baikal center of nanotechnologies
      Organization name
      State educational institution
      “Irkutsk state technical university”,
      664074 Irkutsk, 83 Lermontova str.,
      Rector, professor Golovnykh Ivan Mikhailovich
      Phone/fax,: 8 (3952) 40-50-00, 40-51-00, e-mail:info@istu.edu
      Project summary
      The purpose of the project – technological breakthrough in a number of key
industries:
      - construction industry
      - metallurgy
      - machinery building
      - chemical industry etc.
      Expected results:
      - composite optical nanostructured materials for photonics and
optoelectronics
      - high-temperature superconductivity
      - composite materials of multi-functional purpose
      - reactivity studies of nanoparticles
      - synthesis method for nanopowders
      - modified polymers
      - nanobiocomposites on the basis of natural biologically active polymers
      - nanofiltration with use of nanofiber and nanopore media
      - increasing bioavailability of medicines, medicine delivery vehicles
      - photonic crystals and magnetic nanostructures
      Project implementation period:
      - Constrution of separate building for Baikal center of nanotechnologies –
2008.
      - End of construciton, equipment installation and commissioning – 2010.
      Total project value
      1100 mln. rubles, incl. 200 mln.rubles for the building of Baikal center of
nanotechnologies, 900 mln.rubles – equipment.
      Current project implementation status
      A consortium was created for project implementation:
      - Irkutsk state univserity
      - Geochemistry institute after A.P.Vinogradov
      - Limnological institute
      - Irkutsk chemistry institute after A.E.Favorskiy
      - Institute of electric systems after L.A.Melentiev
      - Irkutsk branch of Institute of laser physics
      Contact on project
      Rector, professor Golovnykh Ivan Mikhailovich
      Phone/fax 8-(3952) 40-50-00, 40-50-50, e-mail:info@istu.edu
                                83
List of subsurface lots in Irkutsk region proposed for development
                           and use in 2008

								
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