INVESTMENT PROJECTS AND PROPOSALS
OF KOMI REPUBLIC
CATALOGUE

The Republic of Komi is situated in the northeastern extreme of the Russia's Europe and constitutes a part of the North-Western Federal District. The total land area is 416,8 mln. km. It is 2,4% of the Russia's total area. The population as of 1 January 2004, was 1,0 mln. people (0,8% of the Russia's total population). The population density is 2,7 people per sg. km. The Komi, indigenous people, - account for only 26% of the total population. The people are averagely aged at 35.

The major of the population (75,5%) is concentrated within 10 cities of the Republic. The capital of the Republic of Komi is Syktyvkar. The chief industrial centers are located in Vorkuta, Ukhta, Usinsk, Sosnogorsk, and Inta.

The Republic has a unique stock of various natural resources, developed industry and skilled labour force.

Mineral resources, diversified in quality and location, form the basis of the Republic's natural wealth. The area contains major reserves of fuel, ferrous and non — ferrous minerals, and balneological resources. Rich deposits of oil and gas make the Republic an important Russia's fuel base. The Republic of Komi has the Russia's largest deposits of bauxite, titanium and barium ore and big reserves of chromites and manganese ore.

The Republic of Komi is one of the Russia's most important forest areas. The timber reserves account for 40% of the timber stock in the Russia's Europe. The predominant tree species include spruce, pine and birch. The forest industrial complex comprises commercial harvesting, cardboard, pulp and papermaking and woodworks.

The Komi industry is made up of more than 30 branches. The leading ones are fuel, power engineering and timber industries.

The local agriculture companies supply the local population with potatoes, vegetables and dairy and stock farming products.

Railways, roads, waterways and flight connections form the transport network in the Republic. The backbone of the Republic's railway network is the trunk railway line from Kotlas to Vorkuta. In the republic huge transcontinental pipelines begin which carry oil and gas to the central and North-West regions of the European part of the Russian Federation. Now the Republic of Komi is one of the most important region of Russia for gas transit ("Usa — Ukhta — Yaroslavl", "Siyaniye Severa").

The Republic's transport network covered 2,4 thousand km of railways, 2,8 thousand km of internal navigable waterways, 3,6 thousand km of gas pipelines, 0,7 thousand km of oil pipelines, 11,8 thousand km of motor roads (74% of the motor roads are paved).

Telecommunication companies propose a full spectrum of services including local, intercity, international telephony, free Internet, digital mobile communication AMPS-800, NMT-450, GSM-900/1800, video conferences, etc.

The construction complex is represented by construction — and — mounting and overhaul enterprises of different ownership types.

20 scientific institutes are engaged in the fundamental and applied studies. The leading one is Komi Science Center, Urals Division of the Russian Academy of Sciences.

In the republic there are 506 high schools in which 125,1 thousand pupils are educated. A system of an advanced level education has been established including 10 lyceums, 18 gymnasiums, 20 schools with a deeper study of separate subjects.

Republic of Komi is famous for its unique intact forest landscapes. The Yugyd-Va National Park is one of the most picturesque surroundings in Europe. It is situated along the western slope of the Polar and Northern Urals. The territory of the park is 1,8 mln. ha (5% of the Komi's territory).

The total area of Pechoro-Ilychsky Nature Reserve is 721,0 thousand ha (2% of the Komi's territory).


INVESTMENT PROJECTS
TIMBER INDUSTRY

Ministry of Industry and Energy of the Republic of Komi
The Construction of a pulp plant in Udora region of the Republic of Komi


Project coordinator: The Ministry of Industries and Energy of the Republic of Komi
Address: 157, Internationalnaya St., Syktyvkar, the Republic of Komi, 167982
Minister: Gerasimov Nikolay Nikolaevich
Contact telephones , fax, e-mail (8212) 24-40-37, 24-47-61, 44-56-75 (fax), minprom@rkomi.ru
The aim of the project is a construction of the plant for the production of market bleached sulfate cellulose with the capacity of 400 thous. tons p.a. and viscose pulp with the capacity of 100 thous. tons p.a.
The annual cut in the district is 3.6 mln. m?. Simultaneously 3.2 mln. thick m? of small-scale spruce and pine logs including 2.6 mln. thick m? of coniferous pulpwood and 0.6 mln. thick m? of birch pulpwood are planned to use in the pulp production.
The project plant can supply for both the home market and the cellulose export.
Social and economic efficiency of the project:
-  increasing of the logging volumes in the republic up to 12 mln. tons p.a.;
-  new jobs (up to 1600) that would help to solve the problems of unemployment and revive forest villages. All those activities would improve social and economic situation in Udora and neighbouring districts of Komi.
The following activities have been done within the project:
-  November 2002 – public hearings on choosing the construction site and plant capacity
-  October 2003 – public hearings of the "Investment feasibility study on construction of Udora Pulp and Paper Plant" including the ecological impact of the constructing plant.
In accordance with the legislation of the Russian Federation an ecological expertise is being held.
The Komi Government has defined the project as a priority and included it in the Program of 2005-2009 Economic and Social Development of the Republic of Komi in order to obtain a state support from the federal budget of the Russian Federation.
Technical and Economical Indicators: Full capacity 500 thous. tons tons per year:
  - 400 thous. tons - bleached sulfate cellulose,
  - 100 thous. tons - viscose pulp
  Payback period - 9.3 years.
Financing: Total cost of the project is: 876,5 mln. USD: the investor’s share – 876.5 mln. USD
The forms of participation in the project for an investor: - long-term loan;
  - participation in a share capital;
  - design financing;
  - commodity credit in a form of machinery;
  - compensation deal.
Documentation available: Feasibility study made by JSC "Giprobum" together with the Finnish company "Jaakko Poyry Consulting".



JSC "Mondi Business Paper – Syktyvkar LPK"
Transition to the non-chlorine (ECF) bleaching of the coniferous pulp


Information on the company initiating the project:
The name of the company: JSC "Mondi Business Paper – Syktyvkar LPK"
Address: 2, Bumazhnikov Prospect, Syktyvkar, the Republic of Komi, 167026
General Director: Starkov Rinat Anverovich
Contact telephones , fax, e-mail (8212) 69-99-77, 66-99-21, 66-99-03, 66-85-85, nadezda.alieva@mondibp.com
JSC "Mondi Business Paper – Syktyvkar LPK" (JSC "Neusiedler Syktyvkar" in 2003-2004) is the largest pulp and paper company in Russia and CIS. The company was founded in 2003 on the premises of Syktyvkar Pulp and Paper Company.
The aim of the project:
Turning of the coniferous cellulose flows to non-chlorine bleaching in order to provide the increasing demands for the nature protection and reduction of the harmful chlorine organic substances in final products. This result is achieved by means of avoiding the use of elementary chlorine in bleaching that brings to quantitative reduction of the harmful chlorine organic substances in final products and sewage disposal.
The project is being implemented together with Metso Company, Finland, and a supplier of the basic technology equipment.
Technical and Economical Indicators: Payback period - 6 years
Financing: Total cost of the project is ˆ 23.5 mln.
Documentation available: Business Plan is developed in 2004.



JSC Komidom
Establishing of the company to produce modernly
equipped dwelling houses in Syktyvkar


Project coordinator: The Ministry of Industries and Energy of the Republic of Komi
Address: 157, Internationalnaya St., Syktyvkar, the Republic of Komi, 167982
Minister: Gerasimov Nikolay Nikolaevich
Contact telephones , fax, e-mail (8212) 24-40-37, 24-47-61, 44-56-75 (fax), minprom@rkomi.ru
Information on the company initiating the project:
The name of the company: JSC Komidom
Address: 21a, Sovetskaya St., Syktyvkar, the Republic of Komi, 167000
General Director: Oksanych Viktor Vasilyevich
Contact telephones , fax, e-mail (8212)-24-46-30, 24-30-27 (fax), komidom@rol.ru
The aim of the project:
A turnkey production of the modernly equipped ecologically pure wooden and blocked houses using Finnish technology with the capacity of 50 thous. m? p.a. Also production of joinery with the capacity of 10 thous. m? p.a. and glued wooden constructions with the capacity of 4 thous. m? p.a. JSC Komidom strategy development plan aimed at buildings construction projects and issuing the complexes of smaller social units in rural areas.
Technical and Economical Indicators: Payback period – 4.3 years
Financing: Total cost of the project is USD 12.0 mln., including the investor’s share USD 8.2 mln.
The forms of participation in the project for an investor: - long-term loan;
  - participation in a share capital.
Documentation available: Technical documentation and business-plan were developed.



Pechora MDF Ltd.


Information on the company initiating the project:
The name of the company: Pechora MDF Ltd.
Address: 19, Pionerskaya St., Pechora, the Republic of Komi, 169601
General Director: Alexevich Miroslav Romanovich
Contact telephones: (82142) 2-76-62
Production of thin Middle Density Fiber Boards (MDF) and wall-panels in Pechora
The aim of the project:
Production of thin MDF on the processing line "AUMA-40" with the capacity of 65 thous. m3 p.a., and processing of 65% of them into wall panels (a designed thickness of 7 mm) on the processing lines with the capacity of 6 thous. m2 on the Pechora construction site according to a no waste technology of the German company "BINOS Technologies". The project also aims at the organization of wood harvesting of 150 thous. m3 p.a. in the Pechora wood harvesting company.
Technical and Economical Indicators: Payback period – 4.7 years
Financing: Total cost of the project is USD 32.92 mln., including the investor’s share USD 27.12 mln.; the initiator’s money USD 5.8 mln.
The forms of participation in the project for an investor: Long-term loan
Documentation available: Business plan ("Production of a middle density fiber boards (MDF) on the line "ÀUÌÀ-40" capacity 65 thous. m3") is made.
  Heaving preliminary contract (¹HF-0002-337Â with firm "BINOS. Technology GMBX & Cî. KG" on delivers equipment for production of the MDF.
Wood harvesting and wood processing plant
construction for dried sawn goods in Pechora
The aim of the project
Construction of a highly automated woodcutting and wood processing line for highly profitable goods: dry-end sawn goods production with the capacity of 34.6 thous. m? p.a., their full procession into glued massive (wall square timber) with the capacity of 6 thous. m? p.a.; mouldings joined by length (e.g. platbands, plinths, door-frame parts) with the capacity of 2.4 thous. m? p.a.; mouldings not joined by length (linings, battens etc.) with the capacity of 12 thous. m? p.a.
Technical and Economical Indicators: Payback period - 4,7 years
Financing: Total cost of the project is USD 3.8 mln.
The forms of participation in the project for an investor: Long-term loan
Documentation available: Business plan of wood harvesting and production of stick bars is made. A Feasibility Study will be work out FGUP NIPI "Nauchstandartdom-Giprolesprom".



TRANSPORT INDUSTRY

Federal public institution "Airport Syktyvkar Construction Directorate"
Construction of the airport Syktyvkar, first stage


Project coordinator: The Ministry of Industries and Energy of the Republic of Komi
Address: 157, Internationalnaya St., Syktyvkar, the Republic of Komi, 167982
Minister: Gerasimov Nikolay Nikolaevich
Contact telephones , fax, e-mail (8212) 24-40-37, 24-47-61, 44-56-75 (fax), minprom@rkomi.ru
Information on the company initiating the project:
The name of the company: Federal public institution "Airport Syktyvkar Construction Directorate"
Address: 86, Sovetskaya St., Syktyvkar, the Republic of Komi
General Director: Serebryanikov Eduard Arkadyevich
Contact telephones , fax, e-mail (8212) 24-57-33, 24-36-57 (fax), airsokol@online.ru
The aim of the project
Finishing the construction of the new federal airport in Syktyvkar. The airport is located out of the urban part of the city. The relocation of the existing airport improves city’s environmental safety, flight safety, increases freight volume (up to 17 thous. tons of goods) and passengers transportation (up to 2.2 mln people), and provides services for the foreign airliners.
In accordance with the feasibility study, the airport construction is planned to be done in two stages:
1st stage envisages regular flights in external air-lines and complete relocation of the airport out of the city
2nd stage provides designed use of the airport, airplanes and complete passengers service.
In order to complete the airport first stage of construction the start-up complex has been separated. 1st stage completion rate is 80%.
In the long view a big regional centre for North-West Russia air traffic is planned be established on the basis of Syktyvkar airport.
Technical and Economical Indicators: Payback period - 7 years after setting the airport into exploitation.
  Setting into exploitation of the whole airport would make possible to increase passenger transportation to 600 an hour and 70 tons of cargo an hour.
Financing: Total cost of the project 1st stage of airport is RUR 5 272 mln.
  Investment volume necessary to complete the 1st stage is RUR 1 101,1 mln. and financing of the termination of construction of a starting complex in structure of the first turn RUR 593,9 mln.
The forms of participation in the project for an investor: Long-term loan
Documentation available: Technical documentation and business plan for the 1st stage of construction were developed.



JSC Belkomur
Construction of Arkhangelsk-Syktyvkar-Perm railway


Project coordinator: Ministry of Economic Development of the Republic of Komi
Address: 108, Internationalnaya St., Syktyvkar, the Republic of Komi, 167983
Minister: Stukalov Ivan Evgenyevich
Contact telephones , fax, e-mail (8212) 21-45-08, 24-43-05 (fax), minek@rkomi.ru
Information on the company initiating the project:
The name of the company: JSC Belkomur
Address: 108, Internationalnaya St., Syktyvkar, the Republic of Komi, 167983
Contact telephones , fax, e-mail (8212) 44-77-21, 44-77-71 (fax), belkomur@online.ru
The aim of the project
Construction of Arkhangelsk-Syktyvkar-Perm railway line with the total length of 1311 km including 794 km of a new construction, a 243 km section in the Republic of Komi, 160 km in Arkhangelsk Region, 316 km in Komi-Perm Autonomous District and 75 km in Perm Region.
The project implementation is divided into two stages:
1st stage – the Northern section: construction of the link Karpogory - Vendinga (215 km) that connects ineffective dead-end railroads Arkhangelsk-Karpogory and Syktyvkar-Vendinga
2nd stage – the Southern section: construction of the link Syktyvkar-Kudymkar-Grigoryevskaya (579 km).
The implementation of the project would make possible to reduce considerably (up to 800 km) a cargo run and freight costs from the Urals and Siberia to Arkhangelsk and Murmansk and when the link Ledmozero-Kochkoma in Karelia is finished there would be an access to Finland and Baltic ports.
Social and economic effect of the project:
-  gross regional product growth by 10-15 per cent of the regions crossed by the railroad
-  an industrial production volume growth
-  all level budgets tax income growth
-  creation of 7000 new jobs
-  an annual freight flow volume growth
-  a growth of competitiveness of raw materials and industrial goods in the railroad adjacent regions
-  proving optimization of Arkhangelsk and Murmansk ports processing capacities.
The project is defined as a priority and is included in the draft Program of Economic and Social Development of the Republic of Komi for 2005-2009. The economic necessity of Arkhangelsk-Syktyvkar-Rerm railroad construction is confirmed by the Barents Euro-Arctic Region member states.
Technical and Economical Indicators: Payback period from the beginning of operation – 13.0 years (the Northern section – 5 - 10 years).
  IRR: - 1st stage – 38.1%
  - 2st stage – 23.7%
Financing: Total cost of the project is USD 1883.5 mln.:
  -  the Northern section USD 505.6 mln.;
  -  the South section USD 1377.9 mln.
  The Northern section construction project finance plan:
  -  federal budget funding – 40%;
  -  EBRD commercial loan – 30%;
  -  JSC Belkomur co-founders and major interested companies funds (including the Governments of the Republic of Komi, Arkhangelsk and Perm Regions) - 30%.
The forms of participation in the project for an investor: - long-term loan;
  - participation in a share capital;
  -concession over the nature deposits
Documentation available: The Northern section design estimates are developed in the following way:
  -  feasibility study draft for the construction, freight flows and ecology;
  -  project business plan;
  -  Karpogory-Vendinga railroad section construction business plan (the last version 2003-H) with a construction budget recalculation and estimated price for the reconstruction of dead-end sided ineffective railroads.
  The Southern section - Syktyvkar-Chernaya-Kudymkar-Grigoryevskaya railway line construction business plan.



Automobile Road Agency of the Republic of Komi
Construction of Saint-Petersburg–Arkhangelsk–Kotlas–Syktyvkar–Kudymkar–Perm motorway including a spur to Vorkuta, Naryan-Mar, Salekhard and Solykamsk


Project coordinator: Automobile Road Agency of the Republic of Komi
Address: 115à, Morozov St., Syktyvkar, the Republic of Komi, 167610
Minister: Alikin Valeriy Sergeevich
Contact telephones , fax, e-mail (8212) 31-41-69, krdd@krdd.parma.ru
The aim of the project
Increasing the equilibrium, efficiency and safety of the transportation system that serves to provide the most important national interests of the country.
Strategic importance of the automobile road for Russia and for the Republic of Komi stipulates the active development of oil, gas and mining industries in the northern parts of the Republic of Komi, Yamal-Nenets Autonomous District, Barents Sea shelf. The road will be essential for the construction of the gas-main pipelines from the Timan-Pechora oil-and-gas province and Yamal gas field.
Technical and Economical Indicators:
Syktyvkar–Kotlas–Arkhangelsk automobile road in the section of Arkhangelsk Region border – Shugrem village, Sysolsky district, the Republic of Komi
Section length – 38.0 km including bridges (109.4 running meters)
Aggregate value – RUR 356.8 mln, trim – 75%. Already set into operation – 26.9 km (January 1, 2005).
Required investment volume – RUR 88.8 mln
Syktyvkar–Kudymkar–Perm automobile road in the section of Lopydino village, Kortkeros district, the Republic of Komi – Komi-Perm Autonomous District border
Section length – 40.2 km including bridges (109.4 running meters). Aggregate value – RUR 535.5 mln, trim – 59%. Already set into operation: automobile road (18.5 km), bridges (58.2 km).
Required investment volume – 220.7 mln RUR
Syktyvkar–Ukhta–Pechora–Usinsk–Naryan-Mar automobile road
Total length – 1086 km. Extension in the area of Komi – 896 km (already set into operation – 692 km). 204 km are required to be built. The required sections:
-  Malaya Pera-Irayol, Sosnogorsky district
Section length – 36.2 km. Aggregate value – RUR 259.4 mln, trim – 67.6%
Already set into operation – 28.4 km (January 1, 2005).
Required investments volume – RUR 84.0 mln
-  Chikshino-Beryozovka, Pechorsky district
Section length – 16.4 km including bridges (223.8 running meters). Aggregate value – RUR 370.4 mln, trim – 12%.
Required investments volume – RUR 325.0 mln
-  From Uchta-Vyktul automobile road to Kerky village, Sosnogorsky district
Section length – 17.4 km including bridges (95.5 running meters). Aggregate value – RUR 692.1 mln, trim – 8%. Set into operation – 6 km.
Required investments volume – RUR 637.8 mln
Financing: Required investments volume RUR 637.8 mln
The forms of participation in the project for an investor: Potential investment sources from federal and regional budget, outer investors.
Documentation available: Project feasibility study has been developed. It received positive conclusion of the Central State Expertise of Russia and ecological expertise.



GAZ INDUSTRY

Severgazprom Ltd.
Reconstruction of the facilities for gas condensate
processing in Sosnogorsky Gas Processing Plant


Information on the company initiating the project:
The name of the company: Severgazprom Ltd.
Address: 39/2 Lenin Prospect, Ukhta, the Republic of Komi, 169300
General Director: Zakharov Anatoliy Alexeevich
Contact telephones , fax, e-mail (82147) 6-17-85, 6-08-16 (fax), sshelemei@spg.gazprom.ru
Severgazprom Ltd is one of the largest companies in the gas industry of Russia. It is the part of the JSC Gazprom.
The aim of the project is to establish a deep processing of hydrocarbon raw materials.
The project includes a reconstruction of the hydrocarbon processing line, which will prevent negative influence on nature and also produce new type of products (liquefied gas, virgin gasoline, winter and summer diesel oil, fuel oil (black oil) and gasoline fraction).
Technical and Economical Indicators: Payback period: 3-5 years. Payback period of discount: 4-6 years.
  IRR: 45-23%. Rate of discount – 10%
  Period of construction – 2.5 years.
Financing: Total cost of the project ˆ 10.0 – 12.0 mln.
The forms of participation in the project for an investor: Long-term loan
Documentation available: Technical documentation and business plan were developed.



OIL INDUSTRY

JSC LUKoil-Komi
Yarega Oil-Titanium Deposit Integrated Development


Project coordinator The Ministry of Industries and Energy of the Republic of Komi
Address: 157, Internationalnaya St., Syktyvkar, the Republic of Komi, 167982
Minister: Gerasimov Nikolay Nikolaevich
Contact telephones , fax, e-mail (8212) 24-40-37, 24-47-61, 44-56-75 (fax), minprom@rkomi.ru
Information on the company initiating the project:
The name of the company: JSC LUKoil-Komi
Address: 31, Neftyanikov St., Usinsk, the Republic of Komi, 169710
General Director: Mulyak Vladimir Vitalyevich
Contact telephones , fax, e-mail (82144) 5-53-60, 5-53-68 (fax), postman@lukoil-komi.ru
The aim of the project
Providing the titanium industry of Russia with domestic raw materials in the required volumes (long-term prospective).
General perspectives of project development
-  absence of the Russian producer of pigmented titanium dioxide; stable demand for the pigmented titanium dioxide on the market
-  unique characteristics of Yarega heavy oil; Yarega deposit contains 40% of all-Russia titanium supplies
-  possibility to develop technologies in simultaneous extraction of two mineral resources (titanium ore and oil); presence of technical and project documentation
-  due to a combined production of pigmented titanium dioxide and surface oil extraction in Yarega field the project general efficiency would be increased.
Technical and Economical Indicators:
  Payback period – 8-11 years; profitability rate – 1.12; IRR – 9%
  Estimated capacity:
  -  extraction of ore – 1200 thous. tons p.a. with simultaneous oil production (70 thous. tons)
  -  oil production – 1200 thous. tons p.a.
  -  enrichment plant construction for titanium concentrate – 220.2 thous. tons p.a. and also heavy oil.
Financing: -  total investments – USD 600 mln.
  -  initial investment – USD 266.5 mln.
  -  capital investments for re-equipment within the project lifetime – USD 125.8 mln.
  -  own capital, shares – 45%
  -  loans – 55%
The forms of participation in the project for an investor: -  long-term loan
  -  compensations deal (final product delivery)
Documentation available:  
  -  feasibility study and business plan "The study of Yarega oil-titanium deposit facilities’ environmental effect"
  -  "Titanium mine and infrastructure"
  -  "Yarega heavy oil production investment feasibility"
  -  "Titanium dioxide plant"



MINING INDUSTRY

JSC SUAL- Holding (Closed SC Komi Aluminium)
Construction of aluminium complex in the Republic of Komi


Project coordinator JSC SUAL-Holding, Komi Aluminium Moscow representatives
Address: 40, Malaya Ordynka St., Moscow, Russia, 113095
General Directors: Kremer Vladimir Pavlovich, Chugunkin Konstantin Nikolaevich
Contact telephones , fax, e-mail (8095)–504-07-49 (fax), info@komial.ru
Information on the company initiating the project:
The name of the company: Closed SC Komi Aluminium
Address: 26b, Lenin Prospect, Ukhta, the Republic of Komi, 167300
General Director: Seruy Vladimir Vasilyevich
Contact telephones , fax, e-mail (82147) 6-73-42, 5-78-76 (fax)
Main reasons for the Komi aluminium plant construction initiation:
-  due to requirements of the Urals aluminium complex in Middle-Timan bauxites that will not exceed 1.5 mln tons; redundant bauxite volumes will be 4.5 mln tons
-  free generating capacities in the Republic of Komi that can be used to smelt 0.3-0.35 mln tons of primary aluminium production
-  availability of huge energy resources deposits in the Republic of Komi (coals, gas, oil. Estimated developing time – 100 years); availability of the facilities for resources extraction and transportation
-  a close location of the prospective plant site to the basic Russian mega cities (Moscow, Saint-Petersburg, Yekaterinburg) and to the sea ports
-  possible location of the enterprises near the functioning main-line railway and cities (Ukhta, Sosnogorsk, Pechora) aligned for the industrial production
The aim of the project:
-  a hi-tech power-consuming aluminium production
-  development of a new industrial branch in Komi – non-ferrous metallurgy (and increase of the economic potential of the Republic of Komi and Russia)
According to the provisional data the complex will consist of 3 parts, covering totally 3 level of vertically integrated aluminium production:
1.  the pit with the internal branch railway of appr. 10 km length (the second and the third line of the Middle-Timan bauxite mine with the capacity of 6.0 mln tons of bauxite p.a.)
2.  Alumina plant with the capacity of 1.5 mln tons p.a. (Kerki village, Sosnogorsky district)
3.  Aluminium plant with the capacity of 0.3-0.35 mln tons of aluminium p.a. (Pechora)
The proven raw material stock life for the complex is estimated at 30 years. According to the forecast the stock can be sufficient for more than 70 years.
The project development perspectives are closely connected with the solution of the problem of providing alumina plant with electric power.
The project is supported on the federal level by the Russian Federation Government’s Decision dealing with the non-commercial risks state guarantees provision estimated at USD 200 mln.
Technical and Economical Indicators: Payback period from the beginning of the construction – 10 years
Financing: Total investment – over USD 2.0 bln including aluminia plant construction (USD 1.7 bln) and aluminium plant construction (USD 0.9 bln).
Documentation available: -  preliminary feasibility study for the construction of the aluminia complex in Komi
  -  documents on the choosing the sites for the aluminium plant sections location
  -  draft Declaration of intention for the construction of the bauxite alumna complex in the Republic of Komi
  Elaboration of the banking feasibility study for aluminium plant construction (made by the Canadian companies Hatch Associates and SNC Lovallin International).
  Ecological and social studies of the project, aimed at the Middle-Timan bauxite mine capacity extension (up to 6 mln tons p.a.) have been finished. The studies are done by CSIR company (Republic of South Africa) and satisfies the requirements of the World Bank and European Bank of Reconstruction and Development.



The Ministry of Industries and Energy of the Republic of Komi
Construction of the kitchen salt "Extra" production plant based on Seryogovsky rock salt field.


Project coordinator The Ministry of Industries and Energy of the Republic of Komi
Address: 157, Internationalnaya St., Syktyvkar, the Republic of Komi, 167982
Minister: Gerasimov Nikolay Nikolaevich
Contact telephones , fax, e-mail (8212) 24-40-37, 24-47-61, 44-56-75 (fax), minprom@rkomi.ru
The aim of the project
Production of a high quality kitchen salt based on a well-developed rock salt field located near Seryogovo village, Knyazh-Pogost Region, the Republic of Komi. Production method – salt brine vacuum evaporation. Major markets of the salt plant will be home market of the Republic of Komi and European part of the Russian Federation. The stock in Seryogovsky salt field is estimated at 2.750 mln tons including the salt categories B+C1 – 689 mln tons. Sodium chlorine content is very high and is estimated at 76.6% (totally in the field).
Technical and Economical Indicators: Payback period – 7.9 years. Design annual output – 360 thous. tons of salt
Financing: Total cost of the project - RUR 1681 mln., including the salt equipment -RUR 600 mln.
The forms of participation in the project for an investor: commodity credit in a from equipment supplies; equipment leasing;
  participation in the capital
Documentation available: Technical documentation and business plan were developed.



Closed SC Khoylynsky ore mining and processing enterprise
Khoylynsky barium sulfate field development


Information on the company initiating the project:
The name of the company: Closed SC Khoylynsky ore mining and processing enterprise
Address: 64, Lenin St., Vorkuta, the Republic of Komi, 169908
General Director: Mezenov Viktor Vladimirovich
Contact telephones , fax, e-mail (82151) 6-30-86, 7-53-54, 7-53-10 (fax); hoyla@polargeo.vorkuta.com; barit@komifree.ru
Khoylynsky mono-barium ore field is located at the foothills of the Western slope of the Polar Urals, 50 km southern from Yeletskaya railway station.
The aim of the project
Possible increase of the extraction volumes and advanced barites processing that envisages:
-  setting into operation an open pit in Khoylynsky field with the production volume of barite ore 120 thous. tons p.a.
-  intermediate ore landing construction joint to the dead-end railroad at Yeletskaya railway station. Also construction of the processing plant on the basis of the idle concrete product plant in Vorkuta, where the barite production will be organized.
Technical and Economical Indicators: Payback period – 4 years
Financing: Total cost of the project is USD 3.6 mln., including the investor’s share USD 3.1 mln.
The forms of participation in the project for an investor: leasing; long-term loan
Documentation available: Technical documentation and business plan were developed.



Closed SC "MIREKO mining and geological company"
Krasnoye mineral pigment field development


Project coordinator The Ministry of Industries and Energy of the Republic of Komi
Address: 157, Internationalnaya St., Syktyvkar, the Republic of Komi, 167982
Minister: Gerasimov Nikolay Nikolaevich
Contact telephones , fax, e-mail (8212) 24-03-48, 21-62-14 (fax), minprom@rkomi.ru
Information on the company initiating the project:
The name of the company: Closed SC "MIREKO mining and geological company"
Address: 75, Gromova St., Syktyvkar, the Republic of Komi, 167983
General Director: Derevyanko Igor Valentinovich
Contact telephones , fax, e-mail (8212) 44-18-18; 44-00-09 (fax) priemn@mireko.komi.ru
The aim of the project:  
Long-term supplying to the potential consumers in Russia and abroad mineral pigments in the volumes required. The foreign market demand for the pigments with such quality parameters is high and estimated at thousands tons p.a. The project envisages seasonal mineral pigments extraction with the volume of 5 thous. tons p.a. from the open pit with the occurrence depth 20 meters, further raw materials transportation by the winter road to Inta. The dry-processing line is planned to be constructed in Inta. The dry processing includes fragmentation, drying, grinding, air separation and packing. Krasnoye field is located within Usinsk district, the Republic of Komi, 65 km westwards to Inta. C2-category reserves are estimated at 15.4 thous. tons, resources – 20 thous. tons, together with the neighbouring areas – 2.6 mln tons. Prospective area is located in the non-licensed mineral stock.
Technical and Economical Indicators: Payback period - 5 years
Financing: Total cost of the project is USD 3.0 mln
The forms of participation in the project for an investor: - commodity credit in a from equipment supplies
  - equipment leasing
  - participation in the capital
Documentation available: Business plan is developed.



CONSTRUCTION SECTOR

Lotos Ltd
Construction of the plant for the basalt mineral fiber insulators production


Information on the company initiating the project:
The name of the company: Lotos Ltd
Address: box 855, 27, Kommunicticheskaya St., Syktyvkar, the Republic of Komi, 167610
General Director: Petrov Stanislav Alexeevich
Contact telephones , fax, e-mail (8212) 24-32-68, 21-45-86, 21-43-65, oaolotos@rol.ru
 
Lotos Ltd is the company producing basalt fibers with the production volumes of 25 thous. m? p.a. As raw material basalt from Khovtchozerskoye field (Karelia) is used. In the long-term prospect Middle-Timan bauxite deposit basalt (Komi) is planned to be consumed.
The company has elaborated the program of the production facilities development (all necessary documents are available) that envisages technologies modernization. That means purchasing new basalt-based heat insulators production lines from Slovenian company SMELT INTAG AG and turnkey construction of the plant with the capacity of 3.5 tons per hour (20 thous. tons p.a.).
Technical and Economical Indicators: Payback Period – 3.9 years.
  Estimated capacity 320 thous. m3 (20 thous. tons) per years.
Financing: Total cost of the project is USD 27,34 mln.
The forms of participation in the project for an investor: - commodity credit in a from equipment supplies;
  - long-term loan;
  - shareholding
Documentation available: Business plan is developed.



Non-profitable organization Komi Regional Energy Efficiency Centre
Construction of the individual houses with autonomous heating system according to German technology


Information on the company initiating the project:
The name of the company: Non-profitable organization Komi Regional Energy Efficiency Centre
Address: 108, Internationalnaya St., Syktyvkar, the Republic of Komi, 167983
General Director: Shevchenko Anatoliy Pavlovich
Contact telephones , fax, e-mail (8212) 24-77-00; kreec@komienergy.ru
The aim of the project: Construction of individual houses with autonomous heating system according to German technology.
Technical and Economical Indicators: Payback period - 3 years.
Financing: Total cost of the project is ˆ 80.0 thous.
The forms of participation in the project for an investor: 1st stage – build-up design and materials supply for the pilot project implementation
  2nd stage – delivering necessary technologies for the houses multiple construction
Documentation available: Business plan is developed.



Truddorstroyprom Ltd
"Construction of the plant for ceramic face bricks production in Syktyvkar"


Information on the company initiating the project:
The name of the company: Truddorstroyprom Ltd
Address: 18, Kuratov St., Syktyvkar, the Republic of Komi, 167610
General Director: Sharov Mikhail Afanasyevich
Contact telephones , fax, e-mail (8212) 21-47-50, 21-42-27 tdsp@online.ru
The project envisages the construction of the brick plant in Syktyvkar. The plant will produce ceramic face bricks of 150-200 grades, frost-resistance – 35-50 according to the government standard (GOST) 7484-78, output – 10-mln pcs., based on Prokopyevskoye field (Syktyvdinsky district, the Republic of Komi) using modern Russian technology. Presently the republic doesn’t have any brick production plant. All bricks used for the construction purposes are brought from other regions.
Technical and Economical Indicators: Payback period – 3.0 years.
Financing: Total investment costs RUR 39.5 mln.
The forms of participation in the project for an investor: - long-term loan;
  - participation in the capital
Documentation available: A feasibility study, designed by JSC "Komiagroproekt" (2000), JSC "VNIISTROM", "Mosproektstrom" (2001).



COMMUNAL SERVICES

Municipal unitary enterprise "Pechoravodokanal"
City water supply and sewerage


Project coordinator The Ministry of Architecture, Construction and Communal services of the Republic of Komi
Address: 8, Kommunisticheskaya St., Syktyvkar, the Republic of Komi, 167000
Minister: Pozdeev Ivan Alexandrovich
Contact telephones , fax, e-mail (8212) 24-62-62, 21-43-92 (fax), minarh@rkomi.ru
Information on the company initiating the project:
The name of the company: Municipal unitary enterprise "Pechoravodokanal"
Address: 6, Kuratov St., Pechora, the Republic of Komi, 169607
General Director: Titenok Nikolay Nikolaevich
Contact telephones , fax, e-mail (82142) 5-34-51, waterloo@parma.ru
The project is being implemented by the instrumentality of the International Bank of Reconstruction and Development (IBRD). IBRD sub-loan guarantors are the Government of the Republic of Komi and "Pechora city and adjoining area" Municipality.
The aim of the project
Solving the basic problems in water supply and sewerage (low water quality, low output of the pumping stations, high energy losses, improper condition of water supply networks, sewerage networks and mechanical equipment for the drainage processing units). The project envisages:
-  backbone networks construction. Networking tubes are made of stainless steel and cast iron. Internal cement-sand cover preserves quality of drinking water and excludes secondary pollution in the pipeline
-  modernization of deferrization station that includes flotation unit construction serving to remove manganese and iron admixtures.
Conduit line is laid in different parts of the city: railway area (conduit length – 2.5 km) and river area (conduit length – 6.5 km).
Technical and Economical Indicators: Payback period - 15 years.
  Term of operation of the pipeline – 70 -100 years.
Financing: Total investment costs USD 8527.9 thous., including:
  -The loan IBRD USD 5000.0 thous.;
  -The initiator money USD 1490.0 thous.
Documentation available: The Agreement on the loan between the Russian Federation and the IBRD (¹ 4593-RU from February 8, 2002)
  The Agreement on the sub loan between the Russian Federation and the Republic of Komi (¹ 01-01-06/26-889 from September 2, 2002)



Municipal state company "Syktyvkar Vodokanal"
Communal services development in the Republic of Komi.
Financial grounds. Water distribution and wastewater service in Syktyvkar


Project coordinator The Ministry of Architecture, Construction and Communal services of the Republic of Komi
Address: 8, Kommunisticheskaya St., Syktyvkar, the Republic of Komi, 167000
Minister: Pozdeev Ivan Alexandrovich
Contact telephones , fax, e-mail (8212) 24-62-62, 21-43-92 (fax), minarh@rkomi.ru
Information on the company initiating the project:
The name of the company: Municipal state company "Syktyvkar Vodokanal"
Address: 51, Kommunisticheskaya St., Syktyvkar, the Republic of Komi, 167000
General Director: Geraymovich Sergey Leonidovich
Contact telephones , fax, e-mail (8212) 31-28-64, 31-19-69 (fax) vodokanal@parma.ru
The aim of the project:
Modernization of water supplying and sewerage systems on order to improve drinking water quality and water service units, to give positive environmental benefits and improve human living conditions.
The project would allow financing of the most urgent components worth of up to ˆ 20.9 mln., ˆ 10 mln. being a loan from EBRD, ˆ 3.6 mln. – a grant given by Northern Dimension Environmental Partnership with the rest being the funds rose from other investors. All of the money resources would be used to cover the expenses for water supply and sewerage network maintenance, the required purification process automation, pump stations remote control, up-to-date advanced water sanitation technique and renovation of water purification blocks.
Technical and Economical Indicators: Payback period - 5 yeats.
Financing: Aggregate value: ˆ 20,91 mln., including:
  EBRD loan: ˆ 10 mln. (provided under the Komi Republic state guarantee worth of RUR 346.1 mln.)
  Northern Dimension Environmental Partnership grant: ˆ 3.6 mln.
  Interest rate: 11.5% (a floating base interest plus a margin)
  Loan repayment period: 15 years (grace period: 3 years)



Municipal Unitary Company "Podchersky Leskomkhoz"
Heat supply system renovation for v.Podcheriye


Project coordinator The Ministry of Architecture, Construction and Communal services of the Republic of Komi
Address: 8, Kommunisticheskaya St., Syktyvkar, the Republic of Komi, 167000
Minister: Pozdeev Ivan Alexandrovich
Contact telephones , fax, e-mail (8212) 24-62-62, 21-43-92 (fax), minarh@rkomi.ru
Information on the company initiating the project:
The name of the company: Municipal Unitary Company "Podchersky Leskomkhoz"
Address: 1, Naberezhnaya St., Podcherye, Buktylskiy district, the Republic of Komi, 169585
General Director: Moskalenko Ivan Petrovich
Contact telephones , fax: (82146) 9-63-93, 9-62-60 (fax)
The project ensures:
- Elimination of 3 coal-fired boiler-houses in v.Podcheriye; construction of a new bio-fuel boiler-house and renovation of the heat supply networks by raising funds of the Norwegian Environmental Foundation NEFCO;
- Reduced costs to produce 1 GCal of heat;
- A changeover to utilizing environmentally friendly fuels. Decreased detrimental impact on the Yugyd-Va National Park environment;
- Sound heat supply for the village;
- New jobs in bio-fuel procurement;
- Reduced social tensions due to 1GCal lower heat price.
Technical and Economical Indicators: Reduced costs for fuel and electricity by 2.1 times, for operation and maintenance - by 20%, elimination of hazardous emissions – up to 40%.
Financing: A loan provided by Norwegian Environmental Foundation NEFCO
Documentation available: Contract ¹ 051/1 made of 1 June 2004 between JSC Alpayevsk Boiler-House Works and the company.



AGRICULTURE

Closed SC Izhma Reindeer Meat
Development of a reindeer meat processing operation using the Finnish process technologies in Izhma district, Komi Republic.


Project coordinator The Ministry of Agriculture and the Foodstuffs of the Republic of Komi
Address: 23, Babushkin St., Syktyvkar, the Republic of Komi, 167982
Minister: Nizovtsev Gennady Fedorovich
Contact telephones , fax, e-mail (8212) 28-83-32, 28-83-12 (fax), msh@rkomi.ru
Information on the company initiating the project:
The name of the company: Closed SC Izhma Reindeer Meat
Address: 11a, New bloc St., Ust-Tscilma, the Republic of Komi
General Director: Terentyev Oleg Mikhaylovich
Contact telephones , fax, e-mail (82140) 9-15-44, 9-21-66
Joint Venture Izhma Reindeer Meat was established with Kometos Oy of Finland and the Izhma district business operations as owners to develop a reindeer slaughter house at s.Okounev Nos, Ust-Tsilem district, and a meat processing shop at v.Diyur, Izhma district.
Project goal: to renovate the operative slaughter house at s.Okounev Nos, Ust-Tsilem district, Komi Republic, equipping it with up-to-date processing and refrigerating plants which would allow to deep process the feed within a waste-free process loop.
The equipment is to be supplied under direct sale arrangement with Kometos Oy of Finland, which is a JV founder and owner.
Strategic goals to be reached by 2008:
-  Turnover: US$ 2 mln.
-  The market shares for similar products in Russia are to be 60%, in EU nations – 5%.
Project social and economic benefits:
-  Leader position in the Russian product market;
-  A number of kept and new jobs: 72;
-  Additional per capita incomes: RUR 70,000 p.a.;
-  Import substitution (estimated as reduced regional imports by increasing the volume of operational products);
-  Export growth potentials (estimated as the potentials for exporting the operational products). The project ensures supply of reindeer meat and processed game products to the European nations. The EU market share for similar products to be reached by 2008 would be 5%.;
-  Subsequent order placements for outside operation-loop companies by securing orders for acquisition and services.
Currently, over US$ 600,000 has been invested for the project
Technical and Economical Indicators: Payback period – 5 years.
Financing: Total investment costs USD 2.16 mln., including the loan of bank USD 1.56 mln.
The forms of participation in the project for an investor: Long-term loan



State Unitary Company Intinskaya Poultry Farm
Technical Rigging for Poultry Meat Deep Processing
Workshop for 2004 – 2008 at SUC Intinskaya Poultry Farm


Information on the company initiating the project:
The name of the company: State Unitary Company Intinskaya Poultry Farm
Address: 18, Yuzhnaya St., Inta, the Republic of Komi
General Director: Galchuk Lidiya Anatolyevna
Contact telephones , fax, e-mail (82145) 7-66-01, 7-64-04 (fax)
Project goal: production of a wider range of poultry meat natural and chopped prepared food of increased gastronomic readiness.
The project development would allow achieving increased operational efficiency by a better use of a single carcass, and yielding the demands and profits.
The products supposed to be made in the project are in regular high demand in the foodstuff market. The demand for the products is steady with a rising trend. The meat products are supposed to be sold in the Komi Republic’s domestic market.
Technical and Economical Indicators: Payback period – 4.8 years.
Financing: Total investment costs RUR 6.58 mln.
The forms of participation in the project for an investor: Financing leasing on term 8 years.



State Unitary Company Zelenets
Renovation of a pig farm at State Unitary Company
Zelenets (v.Zelenets, Syktyvdinsky district)


Project coordinator The Ministry of Agriculture and the Foodstuffs of the Republic of Komi
Address: 23, Babushkin St., Syktyvkar, the Republic of Komi, 167982
Minister: Nizovtsev Gennady Fedorovich
Contact telephones , fax, e-mail (8212) 28-83-32, 28-83-12 (fax), msh@rkomi.ru
Information on the company initiating the project:
The name of the company: State Unitary Company Zelenets
Address: Zelenets, Syktyvdinskiy district, the Republic of Komi, 168200
General Director: Kabanov Nikolay Sergeevich
Contact telephones , fax, e-mail (82130) 7-56-23, 7-30-84, 7-66-23 (fax)
Project goal: increased pork production, decreased fuel and electricity consumption rates, material and labour costs, and, as a consequence, reduced prices per unit product alongside with the increased operation profitability.
The project will have 3-stages of development:
- Development of the design plans and contract-making for equipment supply as well as construction and assemblage;
- Renovation of 12 pig-pens, including partial refurbishment of the interior premises, the manure-removal system, ventilation and heating systems, and machinery;
- Installation of a feeding system and 3 forage kitchens for various pigpen types.
Each separate renovation stage ensures commissions of the individual pigpen types.
The project is viewed as of social concern.
Technical and Economical Indicators: Payback period – 5.8 years.
Financing: Total investment costs RUR 230.9 mln., including:
  -The investor’s money RUR 175.5 mln.;
  -The initiator money RUR 28.4 mln.
The forms of participation in the project for an investor: Long-term loan
Documentation available: A ready business plan for renovation of a pig-farm at SUC Zelenets; plans for an autonomous heat supply system; plans for a mixed fodder shop; plans for a manure-removal system.



OTHER BRANCHES

Ministry of Culture and National Policies of the Republic of Komi
Renovation of V.Savin Republican Academic Drama Theatre in Syktyvkar


Project coordinator Ministry of Culture and National Policies of the Republic of Komi
Address: 8, Kommunisticheskaya St., Syktyvkar, the Republic of Komi, 167010
Acting minister: Ryabova Lidiya Iosifovna
Contact telephones , fax, e-mail (8212) 24-05-09, mincult@rkomi.ru
V.Savin Republican Academic Drama Theatre has a historical and cultural monument status.
Project goal: to renovate and expand the theatre building by making small extensions from outside the yard area and keeping the existing fronts as much a possible. The building front, which is sort of the theatre’s visiting card, will remain untouched.
In accordance with the acting norms and regulations, to make a theatre function properly it should be expanded by 2.5 times, which suggests, apart from the proposed extensions, constructing basements to locate there the missing facilities. The interior and exterior finish is made based on the developed interior plan using modern finishing goods; the hall ceiling and walls would be sound-conditioned as per the acting norms. The theatre holds an academic status which imposes specific requirements for the stage, sound- and light equipment, production rigging, etc. The plan for the stage rigging entails an intricate technological complex, which combines computer-automated light equipment, top-quality sound equipment for good acoustical comfort of the audience and the performers, modern stage mechanics to ease up decor changing.
The project is considered to be of social concern.
Technical and Economical Indicators: Beginning construction, 2004.
  Capacity - 374 places.
Financing: Total investment costs RUR 345.1 mln, included the investor’s money RUR 336.2 mln.
Documentation available: Business plan is developed.



State Company "Board of Companies Constructed Under Contracts Made with Foreign Firms at the Ministry for Architecture, Construction and Communal Services the Republic of Komi"
Seregovo 500 Bed Sanatorium Complex, Knyazh-Pogost district, Komi Republic


Project Coordinator/ Building Contractor State Company "Board of Companies Constructed Under Contracts Made with Foreign Firms at the Ministry for Architecture, Construction and Communal Services the Republic of Komi"
Address: 149, Pervomayskaya St., Syktyvkar, the Republic of Komi, 167982
General Director: Kozyakov Viacheslav Alexandrovich
Contact telephones , fax, e-mail (8212) 24-10-05, 24-32-97, gudsp@online.ru
Project goal: to develop a multi-functional health resort to be operative throughout the year as part of the single healthcare system (incl. the prophylaxis system) for the Komi Republic and northwest Russia.
The sanatorium is located in an environmentally green area with a favourable microclimate. The availability of medicinal spring sources around the site (therapeutic mud, mineral water, and salt caves) defines water or mud therapy as the sanatorium’s basic line of medical service. The sanatorium complex supposes erection of the therapy and lodging blocks with the capacity being 500 beds. The sanatorium complex is being built at 92d km of the regional motorway from Syktyvkar to Ukhta. A high-pressure gas pipeline extends through the site with a developed gas distribution station provided for the sanatorium complex’s needs.
The individual economic zone would be used as a resource management source. Heat and electricity supply networks, sewage and gas supply networks, and transportation lines as well as a water supply system have been provided at the site.
Due to the lack of similar therapeutically prophylaxis establishments in the region, the health resort complex is about to gain broad popularity and high demand in its services both in the republic and nearby regions. Apart from pure medical therapy and health improvement, the complex is supposed to be used as a short-term rest and therapy centre for people who live in nearby industrial centres. The project is considered to be of social concern.
Technical and Economical Indicators: Payback Period - 16 years.
Financing: Total investment costs RUR 1658.5 mln., including the investor’s money RUR 1292.6 mln.
The forms of participation in the project for an investor: - long-term loan
  - participation in the capital
Documentation available: Decision ¹03-18/170 issued by Komi State Extra-Departmental Expertise Directorate on 24 March, 2003 approved by RF Chief Expertise Directorate’s decision ¹ 24-5-4/1393 of 4 June 2003. The design plans have been developed by PLC Kurortproject Design and Planning Institute.



Ukhta State Technical University
Heat supply system reconstruction and modernization
at PLC Ukhta Mechanical Works and PLC Knyazh-Pogost Mechanical Works


Information on the company initiating the project:
The name of the company: JSC Ukhta Mechanical Works
Address: 3, Zavodskaya St., Ukhta, the Republic of Komi
General Director: Shikaryan Garegin Lukashevich
Contact telephones , fax, e-mail (82147) 5-10-78, 5-11-26
Project executor: Ukhta State Technical University
Address: 13, Oktyabrskaya St., Ukhta, the Republic of Komi
General Director: Emyeksuzyan Arkadiy Rubikovich
Contact telephones , fax, e-mail (82147) 7-44-12, 7-44-02, 6-09-49 (fax), pfo@uii.sever.ru
The drawbacks of the present heat supply systems at PLC Ukhta Mechanical Works and Knyazh-Pogost Mechanical Works are boiler equipment depreciation, heat network irrational laying, i.e., heat network plural redoubling around the site which increases electricity costs for heat carrier transportation and complicates the jobs of the live ware.
Project goal: to increase the efficiency of the heat supply systems of the plants by reconstructing the heat systems in the industrial buildings; to replace the water heat system with an infra-red gas heating system for the blocks; to install a combined modular boiler house capable of heating the area as much as 29,400 m3; to utilize Roberts Gordon gas radiant heaters and relay the heat networks.
The project would allow achieving the following goals:
- an infra-red gas heat system installed at PLC Ukhta Mechanical Works would cut down the heat consumption costs as much as 2.5 times (from 413 RUR/GCal down to 143.8 RUR/GCal), which would give the savings as much as RUR1.373 mln. p.a.;
- heat system modernization and reconstruction (a modular boiler house commissioning) would allow to decrease the fuel costs down to 265.18 RUR/GCal with the money saved being as much as RUR 1.05 mln. p.a.;
- the savings due to less heat losses after the heat networks have been relayed would amount to RUR 423,000 per annum;
- the savings for PLC Knyazh-Pogost Mechanical Works would amount to RUR 2.782 mln. per annum.
In line with the requirements of the RF Regulation on an environmental impact evaluation and the RF Rule of evaluating environmentally power and industrial production projects, the summary of the project gives a positive opinion of the project environmental impact, because the degree of physical deterioration would be negligible (for C category). Moreover, all of the relevant technical arrangements planned for the project would be environmentally positive.
Technical and Economical Indicators: Payback period - 5 years.
Financing: Total investment costs RUR 30 mln., including equipment RUR 25.1 mln.
The forms of participation in the project for an investor: Long-term loan
Documentation available: Business plan is developed.



Ukhta Mechanical Works
JOB SHOP project


Information on the company initiating the project:
The name of the company: JSC Ukhta Mechanical Works
Address: 3, Zavodskaya St., Ukhta, the Republic of Komi
General Director: Shikaryan Garegin Lukashevich
Contact telephones , fax, e-mail (82147) 5-10-78, 5-11-26
Project goal: application of laser technology in industrial production and overhaul (laser cutting, welding, weld deposition, back welding, component thermal treatment).
To implement the project, the following laser manufacturing equipment should be purchased, installed and put into commission:
1. ÑÎ2 Tandem Laser (capacity: 6 KW)
2. IAG Laser (3m long LRS-200 incorporated light-fiber system)
3. ÅÑÀ 0,75 Refrigerating Plant
4. ÑÊ 1ì-3 Coordinate Machine
5. LCM-3000 Cutting Machine
6. SFTL System with UOP-1 Laser Beam Turner
7. UPN Plasma Spray Plant
8. Spinner (with BB-6 Turning Head, etc., 32 pcs. all in all)
One of the basic advantages of worn parts rebuilding laser weld reposition is its high techno-economic benefits, the restored life of rebuilt parts being the same as for new ones or may even be higher and the costs of rebuilding of the worn machine parts and gears accounting for 30-50% of the prices for new ones.
A laser welding technique is used in manufacture of irregular shape parts. A Tandem Laser allows cutting 25mm thick steel.
Technical and Economical Indicators: Payback period 1.8 – 2.6 years.
Financing: Total investment costs USD 588.87 thous.
The forms of participation in the project for an investor: Leasing Long-term loan



INVESTMENT PROPOSALS
TIMBER INDUSTRY
The Ministry of Industries and Energy
of the Republic of Komi
Construction of Pulp and Paper Mill in Troitsko-Pechorsk district, Komi Republic


Proposal coordinator The Ministry of Industries and Energy of the Republic of Komi
Address: 157, Internationalnaya St., Syktyvkar, the Republic of Komi, 167982
Minister: Gerasimov Nikolay Nikolaevich
Contact telephones , fax, e-mail (8212) 24-40-37, 24-47-61, 44-56-75 (fax), minprom@rkomi.ru
Investment proposal goal:
Increased chemical processing of redundant low-grade timber and erection of a pulp and paper mill in Troitsko-Pechorsk district.
The project proposal ensures to produce:
210.000 tons of kraft pulp;
200.000 tons of cardboard as filling for corrugated cardboard thin layers.
The amount of material inputs: 1.25 mln. m3 of pulpwood.
Basic techno-economic indices:
Payback period: 7.1 years.
Financing:
Aggregate value: USD 430 mln.
Proposed forms of participation for investors:
project funding;
a tied loan as equipment supplies;
a compensation deal interest in business as delivery of integrated products;
equipment leasing;
a long-term loan.
Documents:
a requirements specification for the mill feasibility study has been made available;
a list of inputs required for the project has been made available.



TRANSPORT INDUSTRY
JSC Transneft
"Western Siberia to Barents Sea" Oil Pipeline System Erection


The name of the company: JSC Transneft (Moskow).
Address: 57 Bolshaya Polyanka St., Moscow, Russia, 109180,
General Director: Vaynshtok Semen Mikhailovich
Contact telephones , fax (095) 239-86-52, 953-87-10
Investment proposal goal:
"Western Siberia to Barents Sea" oil pipeline system erection. The minutes of the RF Government meeting of 13 April, 2003 and requirements specification made by JSC Transneft are the grounds of the development and erection.
Western Siberia and Timan-Pechora Oil-and-Gas Province will be the major areas to provide for the resource base of the pipeline to be constructed.
Anticipated socio-economic effect:
Boosting of the oil exports up to 50 mln. t/y for the Russian oil produced in Western Siberia (30 mln. t/y) and Timan-Pechora Oil-and-Gas Province (20 mln. t/y) to be delivered to the Western Europe and USA markets;
Loading a bulk-oil terminal on the Barents Sea coast;
Speeding up developing the liquid hydrocarbons resource base in Western Siberia and Timan-Pechora Oil-and-Gas Province;
Investing more in the field development programmes would increase the IRP (internal regional product) from 14 mln. tons of oil in 2003 up to 29 mln. tons of oil in 2008;
Increasing the incomes of the budget of all levels;
Eliminating the problem of the lack of oil delivery capacities in the area with the predictable oil output boost in Komi and Nenets AO;
Developing socially the republic’s adjacent areas: creating 5,000 new jobs for the region; decreasing unemployment, constructing new industrial and social projects and highways.
Documents: a letter of intent of 27 October, 2004 to implement the Western Siberia to Barents Sea pipeline system project.



MINING INDUSTRY
Closed SC MIREKO Mining and Geological Company


Proposal coordinator: The Ministry of Industries and Energy of the Republic of Komi
Address: 157, Internationalnaya St., Syktyvkar, the Republic of Komi, 167982
Minister: Gerasimov Nikolay Nikolaevich
Contact telephones , fax, e-mail (8212) 24-40-37, 24-47-61, 44-56-75 (fax), minprom@rkomi.ru
The name of the company: Closed SC MIREKO Mining and Geological Company
Address: 75, Gromov St., Syktyvkar, the Republic of Komi, 167983
General Director: Derevaynko Igor Valentinovich
Contact telephones , fax, e-mail (8212) 44-18-18 (fax); 44-00-09, priemn@mireko.komi.ru
Manganese Ore Prospecting, Exploration and Development in Mid-Timan
Investment proposal goal:
Rapid geological exploration at entrepreneurial risk with the further development of the proven manganese ore fields in Mid-Timan around the bauxite mine located 160 km north-west of Ukhta. The prospect is listed in the indisposed mineral stock register.
The prospect’s probable resources within a 6 km zone are estimated at 10-15 mln. tons.
Due to the lack of manganese concentrate, Russia has to import annually around
0.3 mln. tons of manganese alloys: ferromanganese and silicomanganese. There are not virtually available manganese ore extraction or manganese concentrate production industries in Russia, therefore no problems would arise about the sale of the products in the domestic market.
The products are planned to be sold already in 2005 at the price of US$ 80 per ton of concentrate with the overall annual sale figure of US$ 2 mln.
Basic techno-economic indices:
Payback period: 5 years.
Funding:
The aggregate value in terms of the available data and reserves as much as 3 mln. tons will be US$ 5 mln. or RUR145 mln.
Proposed forms of participation for investors:
Project funding;
A long-term loan;
A tied loan as equipment supplies;
Project participation on the compensation deal basis as ready deliveries.
Documents: technological and economic calculations
Examination, prospecting and exploration of Molyudvozh
cupriferous sandstone field in Pre-Polar Urals
Investment proposal goal:
The prospect’s geological re-examinations to finalise prospecting assessment works, carrying out a complex of exploration work to assess the ore stock and explore the cupriferous ore body with a high silver content.
When the complex of exploration work has been finalised and whether the field economic-geological evaluation is favourable, an ore mining and processing enterprise is to be planned, which will incorporate the following:
- an open-cast mine
- a gallery with the capacity of 2 mln. tons of ore;
- an ore mill with the capacity of 50.000 tons of concentrate.
Basic techno-economic indices:
-  5-year payback period after the ore mining and processing enterprise has reached its planned production capacity;
-  Planned production capacity: an open-cast mine – 2 mln. tons of ore per annum; an ore mill – 50.000 tons of concentrate p.a.
Funding:
-  Aggregate value: USD 100 mln.
Proposed forms of participation for investors:
-  Project funding;
-  Setting a joint venture;
-  Granting an investment credit;
-  Developing the proven field on the product-sharing agreement basis;
-  Equipment leasing.

Speedy exploration and development of Seida Steam Coal-Field (Vorkuta Area)

Investment proposal goal:

An open-cast mine with the annual capacity of 8-10 mln. tons of coal is proposed to be built. At the coal pit 2 coal beds 5.0-7.5 m thick will be worked out with the depth of cut down to 200 m. The Seida steam coal-field is located 60 km south-west of Vorkuta along the railway line which extends from Moscow to Vorkuta. The development prospects of the Seida coal-field having the overall reserves as much as 8.4 bln. tons will increase after the railway line extending from Archangelsk via Syktyvkar to Perm has been put in commission. The railway line will be used to supply the power stations in the Ural economic region with the coal to be more competitive as compared to the coal delivered from the Kuznetsk Basin, as well as to export coal concentrate by sea via Archangelsk.

The project is supposed to be implemented stage by stage, as follows:

  • 1st stage: completion of exploration work and designing and planning – USD 10 mln;
  • 2nd stage: construction of an open-cast mine – USD 300 mln;
  • 3rd stage: construction of a preparation plant – USD 300 mln.

According to the international code system for coal, the coal concentrate produced in the Seida Coal-Field meets the international norm requirements.

Basic techno-economic indices:

Planned production capacity: 7 mln. tons of concentrate per annum.

Funding:

Aggregate value: USD 610 mln., including:

  • internal funds, equity: US$ 110 mln.;
  • investor’s funds: USD 500 mln.

Proposed forms of participation for investors:

  • Setting up a new business out of the investor’s funds;
  • A long-term loan;
  • Leasing;
  • Field development on a product-sharing agreement terms.

Documents: prospect assessment has been made on the whole and the mine fields have been allotted by Giproshakht coal-mining design and planning institute in 1990; in 2003 the assessment work were completed and the geological report was done.

The investment proposals from Closed SC MIREKO
under development and substantiation:

GOAL OF INVESTMENT PROPOSAL ¹1

Assessment, exploration and production of chromite ore in the Yunyaga ore field of Voikaro-Synya Massif

A promising chromite ore development revealed in prospecting (the predictable resources, mln. tons: cat. Ð1 - 3.4; Ð2 - 5.4; Ð3 - 18) needs to be commercially assessed, explored and might be subsequently developed using an open-cast method.

The cost of the initial stage of geological exploration is preliminarily estimated at RUR 50-70 mln. It may take 3-4 months for the geological data package and the investment project feasibility study to get finalised.

GOAL OF INVESTMENT PROPOSAL ¹2

Geological re-examination and commercial development for the gold ore developments of Niyayu-Niyahoi Ore Field on the Manitanyrd Range of the Polar Ural (Vorkuta district, Komi Republic)

The ore field incorporates the Niyayus Deposit (3.8 tons of gold categorized in Ñ1 and Ñ2), the group of Niyahoi ore developments (up to 5 tons of gold categorized in Ð2), the Esto-Shor Placer (up to 100 kg of gold) and can subsequently add to expanding the current resource base. The degree of its examination allows to re-examine of the ore prospects in parallel with the pilot industrial exploration of the most developed ones. It may take 3 - 4 months for the geological data package and the investment project feasibility study to get finalised.

GOAL OF INVESTMENT PROPOSAL ¹3

Field development of the Esto-to Deposit of superior ornamental marble and marbling limestone" (Vorkuta district, Komi Republic)

The deposit was proven in the 1980s; the mineral reserves have been approved and put to balance by Territorial Committee for Reserves. The project tends to be promising in terms of industrial development by a small mining company.

It may take 1-2 months for the geological data package and the investment project feasibility study to get finalized on demand of an investor.

GOAL OF INVESTMENT PROPOSAL ¹4

Geotechnological re-examination and field development of the Iliyaiz Massif superior ornamental granite in the Northern Ural

The Iliyaiz ornamental stone deposit located along the route of the Northern Lights gas pipeline system is still poorly examined, however, according to expert opinions, the quality of the resources is assessed to be high.

It may take 2-3 months for the geological data package and the investment project feasibility study to get finalized on demand of an investor.

GOAL OF INVESTMENT PROPOSAL ¹5

Geotechnological re-examination and field development of the Yaneityvis Deposit of drinking mineral water and bottling line organisation

The project used to be licensed by PLC Polar Ural Geology, however, due to the lack of funding, it was not implemented and had to be returned to the indisposed mineral stock.

It may take 1-2 months for the geological data package and the investment project feasibility study to get finalized on demand of an investor.

CONSTRUCTION SECTOR
Gypseous Building Materials Limited
Production of gypseous building materials and dry building blends on the Izhemsk Gypsum Deposit in Sosnogorsk Municipality





The name of the company: Gypseous Building Materials Limited
Address: 2, Kuratov St., Sosnogorsk, the Republic of Komi
General Director: Nikanorov Mikhail Tengizovich
Contact telephones , fax, e-mail (82149) 50-223, 53-934, 51-371; annik@pochta.ru
Investment proposal goal:
Production organization and sale of gypsum cardboard structures and dry building blends which is currently a rapidly growing market. The major customers of the products would be construction businesses and individual builders.
Mineral gypsum stone of the Izhemsk Deposit (the proven reserves being estimated at 131.7 mln. tons), packing board manufactured by JSC "Mondi Business Paper – Syktyvkar LPK", lime, pearlite and cement made by the local producers in Ukhta and Vorkuta as well as additives by Akzo Nobel, Sweden, would be used to produce gypsum cardboard structures and dry building blends.
Basic techno-economic indices:
Planned production capacity:
-  gypsum cardboard structures: 800.000 m2 p.a.;
-  gypsum fibre structures: 100.000 m2 p.a.;
-  dry building blends: 200.0 tons p.a.;
-  slot crest slabs: 20.000 m2 p.a..
Payback period: 3.9 years.
Funding:
Equipment aggregate value: RUR 30 mln.
Proposed forms of participation for investors:
-  A long-term loan against municipal or state security;
-  A compensation deal interest in business as delivery of integrated products;
-  Equipment leasing.
Documents: a business proposal for the investment project titled "Production of gypseous building materials and dry building blends based on the Izhemsk Gypsum Deposit, Sosnogorsk Municipality" (2004).

© Ministry of Economic Development of the Republic of Komi,
Investment Policy Department
108, Internationalnaya St., Syktyvkar,
167983, republic of Komi, Russia
tel. (8212) 249-089, 214-508,
fax (8212) 246-295

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© 2006