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Government of the Sakha Republic (Yakutia) INVESTMENT GUIDE BOOK OF THE SAKHA REPUBLIC (YAKUTIA) 1

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Page 1: Yakutia

Government of the Sakha Republic (Yakutia)

INVESTMENT GUIDE BOOK

OF THE SAKHA REPUBLIC (YAKUTIA)

Yakutsk 2011

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«… Nowadays the solution of numerous long-term tasks depends on development of the Russian Far East. And these tasks are of crucial importance for our country».

(Dmitry Medvedev, President of the Russian Federation)

«…The Sakha Republic (Yakutia) is the largest constituent entity of the Russian Federation and one of its richest depositories of resources. Naturally, sustainable and dynamic development of Yakutia is of key importance for both the Far Eastern District and Russia on whole...»

(Vladimir Putin, Chairman of the Russian Federation Government)

«Our republic has everything to create a better life – abundant natural resources, long-term strategic action plans, sustainable social development, positive natural increase pattern, high educational level of the population, relatively young and economically proactive labor force …»

(Yegor Borisov, President of the Sakha Republic (Yakutia))

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Ladies and Gentlemen!

Today, ensuring socioeconomic well-being of every citizen and the state is only possible with the active use of modern scientific - technological advances, extensive enhancement of innovative activity, and development of regional infrastructure under public - private partnership.

The Sakha Republic (Yakutia) is one of the fastest growing federal subjects and has a significant influence on the development of the Russian Far East. Its vast territory rich in natural resources, presence of major export-oriented companies, favorable geographical position and proximity of the Asia-Pacific markets, as well as a unique tourist potential create preconditions for becoming a strategic outpost of Russia in the Far East.

The republic faces big strategic plans - the implementation of the comprehensive development scheme till 2020. The region has concentrated large-scale investment projects which are of great socioeconomic importance to the eastern part of Russia. The construction of the railway "Berkakit-Tommot-Yakutsk” is being completed;the first line of the “Eastern Siberia-Pacific Ocean" oil pipeline has been constructed; the republic continues to implement the country's largest project "Integrated Development of Southern Yakutia"; the creation of Yakutia gas production center was initiated in accordance with the Eastern Gas Program.

These and other projects will form a modern competitive economy based on innovative solutions and advanced industrial base, which ultimately will create the conditions for a new quality of life. The strategic goal is to overcome system-based infrastructure constraints, to create favorable environment to attract investments and skilled workers, creating comfortable living conditions in the region.

We look forward to further successful cooperation of science, government and business to jointly tackle major issues of socioeconomic development in general, creating an effective platform for cooperation between federal and regional authorities, Russian and foreign investors to discuss the issues of infrastructure development and implementation of promising investment projects throughout the Far East.

Creating a favorable and stable investment climate in the region is one of the main objectives of the Government of the Sakha Republic (Yakutia). The priorities of the republic’s authorities are to diversify and attract investment in the priority economy sectors: oil and gas industry, including production and processing of oil and gas, metal ores and coal mining, construction materials production, processing of agricultural products and timber industry.

I am confident that joint efforts of the Government, business and society can transform the global challenges and constraints into new opportunities for sustainable development of the Far East as the key sector that strengthens the geopolitical position of Russia in the international community.

I wish all participants and guests of the international conference fruitful and constructive work, interesting initiatives and success!

President of the Sakha Republic (Yakutia)Yegor Borisov

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Yakutia in Figures Yakutia lies in the north-eastern part of

Asia stretching 2,000 km north-south and 2,500 km east-west.

The area of 3,102 thousand square kilometers covers one fifth of the total area of Russia and is equal to 2/3 of Western Europe’s territory.

Over 40% of Yakutia lies beyond the Arctic Circle.

It spans three time zones (UTC +9, +10,

+11). Yakutsk, the capital of the republic, is

8,468 km away from Moscow. Yakutia has borders with seven entities of

the Russian Federation: on the west — Krasnoyarsk Krai, on the south-west and south — Irkutsk

Oblast and Amur Oblast, Zabaikalsky Krai, on the south-east — Khabarovsk Krai, on the east — Magadan Oblast and

Chukotka Autonomous District.

The state authority is executed by President, the State Assembly (Il Tyumen), the Constitution and Supreme Courts.

The supreme legislative body is the State Assembly (Il Tyumen).

The supreme executive body is Government of the Sakha Republic (Yakutia).

The highest executive official and head of the Sakha Republic (Yakutia) is President of the Sakha Republic (Yakutia).

As of January 1, 2011, there are 445 municipal units, including 34 municipal regions, 2 urban districts and 409 urban and rural settlements.

According to the interim data of the All-Russian 2010 Census, the population of the republic makes 958,3 thousand people, including urban population making 64.1% and rural population – 35.8%. The republic is home to 126 nationalities, including the Yakuts – 45.5%; Russians – 41.2%; Ukrainians – 3.6%; Evenks – 1.9%; and Evens- 1.2%. The population density in the republic makes 0.3 people per sq.km.

Yakutia enjoys the variety of natural conditions: its continental climate shows up in the air temperature fluctuation range reaching 100 degrees Centigrade. The republic is home to the pole of Cold of the northern hemisphere, with the lowest temperature registered at 71.2 degrees C.

Москва

Якутск

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Social and Economic SituationNatural resourcesAlmost the entire territory of Yakutia is

situated in the permafrost area. 72% of the republic’s territory is covered by taiga, the rest – by forest-tundra, tundra, and the Arctic desert. Forests cover 47% of the territory, making up 11% of all-Russia reserves.

Yakutia has preserved many places of pristine nature. This unparalleled environment is home for rare animal and bird species.

There are over 700 thousand rivers, which exceed 10 km, flowing in the republic, with 314 of them being over 100 km long. The Kolyma, Indigirka and the Lena River's major tributaries – Olyokma, Aldan and Vilyui – surpass almost all the European rivers, including the Rhine and Elba, by their length and water volume.

The Lena River, the republic's major waterway, is among the ten greatest rivers of the world. There are over 800 thousand lakes with water surface exceeding 1 ha each. The waters are abundant in rich fish resources – over 90 species.

The Sakha Republic (Yakutia) ranks first in the Russian Federation by total reserves of natural resources. Its raw material potential is estimated at RUR 78.4 trillion.

Economy structureThe economy is based on export-oriented

industry connected with development of abundant natural resources. GRP is also influenced by construction, commerce, transport and communications, agriculture, and social

services.

Industrial production mostly depends on non-ferrous metallurgy (mining of diamonds and gold), as well as fuel and energy complex (coal mining, oil and gas extraction). They account for over 70% in the total volume of Yakutia’s own production.

Major economic parameters trendOver the period from 2005 to 2010, the

socioeconomic situation in the republic was marked by the real growth of major macroeconomic parameters: gross regional product (116.2% in 2010 against 2005 level), transport cargo turnover (102.9%), commodity circulation (132.5%), fee-based services rendered to the population (129.3%).

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The following agricultural industries remain traditional for people in the Sakha Republic (Yakutia): beef and milk cattle breeding, droving horse-breeding for meat, reindeer herding, and farming. The republic has the largest cattle stock in the Far East. In the northern areas people practice hunting, trapping, fishery, and fur farming. Due to the large share of rural population in the republic (35.8%), the government takes numerous measures to support agriculture.

Investments into fixed capitalThe period 2005-2010 witnessed

implementation of several large-scale investment projects of great significance for Yakutia and the entire Russia, as well.

Growing investment activity stems from strategic investments of major Russian

companies into the republic’s economy – construction of Eastern Siberia –Pacific Ocean oil pipeline through the territory of the republic; construction of underground diamond mines, Talakan and Alinsky oil and gas fields, Elga coal deposit, construction of railway line Berkakit –

Tommot – Yakutsk, power lines and others. The Sakha Republic (Yakutia) is

introducing production of innovative products. In September 2010, there was launched a basalt materials plant in the town of Pokrovsk.

In the city of Yakutsk, there is a project on launching a facility assembling and producing light diode equipment. It will be first welcomed by the northern regions of the republic. In near future, the plant's production will be supplied to the Russian Far East, as well.

Population revenues and labor forcesThe republic is solving urgent social

tasks. The real revenues of the population rose by 1,2 within the 2005 — 2010 period.

In 2010 economically productive population amounted to 490.8 thousand people, with 447.4 thousand people employed in the economy.

Education employs about 19% of the total number of labor force, mining of natural resources – 10%, medical care – 10%, transport and communications – 9%, power engineering and housing sector – 7%, construction – 6%, processing – 4%, agriculture – 3%. The average age of the employed is 39.6. The majority of employees (26,7%) have higher professional education; vocational education – 26.5%, and secondary education – 23.6%.

Major indicators of the Sakha Republic‘s socioeconomic development by 2030 (according to the innovative scenario):

GRP growth per capita at parity of the purchasing power up to USD 48 thousand (90% to the level of OECD countries);

real GRP growth in 2011-2030 by 3 times, including in 2011-2020 – 1,9, in 2021-2030 – 1,6;

increase of the average expected life expectancy to 73,3 years;

growth of actual disposable income of population by 4 times compared with 2010;

reduction of the population poverty to 6,3%.

reduction of general unemployment level to 3,5% to EAP, level of registered unemployment to 3% to EAP;

growth of provision of 1 citizen of the republic with total usable housing to 34,05 sq.m.;

reduction of hazardous dwelling share to 2,03%;

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gas supply coverage of 76% of the republic’s population;

increase of the share of population having acess to centralized water supply and disposal to 69%;

elimination of hazardous schools by 2030;

fully meeting the demand for preschool institutions for the children aged 3-6 by 2030;

double reduction of the share of hazardous healthcare buildings;

bringing year-round transport accessibility to 73% of the area. Growth of transport mobility of the population by 3 times;

completion by 2014 of transfer to rendering public services electronically;

increase of Internet use density to 85 people per 100 people.

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INVESTMENT CLIMATE

By the Russian President commission, the Sakha Republic (Yakutia) has developed the Scheme of integrated development of labor forces, transport and power industry in the Sakha Republic (Yakutia) till the year 2020. The scheme outlines strategic priorities and directions aimed at effective use of unique raw material potential of the republic.

All the major investment projects are included into the Strategy of social and economic development of the Russian Far East and Baikal area till the year 2025.

In the long-term (within the innovative scenario in 2011 – 2030) RUR 5,5 trillion of investment will be attracted to the fixed capital in the prices of the respected years.

Creation of favorable and sustainable investment climate in the region is one of the main tasks of the Sakha Government. The Program of forming a favorable investement climate in the Sakha Republic (Yakutia) is implemented; it is aimed at improving the regulatory legal base in the field of investment activity, creating and development of investment infrastructure, reduction of administrative barriers, formation of new mechanisms to attract investments, formation of favorable conditions to diversify production and promotion of innovative technologies to the market.

Due to the sustainable socioeconomic development, international rating agencies increase the credit rating of the republic regularly. In October 2010 Fitch Ratings confirmed long-term ratings of the Sakha Republic (Yakutia) in foreign and national currency at “BB” level, with the short-term rating of the region on foreign currency at “B”. Also, the agency confirmed the republic’s long-term national rating “AA-(rus)” level. The forecast for all long-term ratings is amended to “Positive”.

In May 2011 Standard and Poor’s International Rating Agency confirmed the republic’s credit rating at “BB-/Positive/ruAA-”.

The Sakha Republic (Yakutia) is one of the leaders of the Russian Federation by both the number of investment projects to be implemented on its territory and the volume of investments.

Priorities include enhancement of transport and power infrastructure of the republic, hydro and heat generation of power for exploitation of natural resources in the economy.

In accordance with the Scheme of intergarted development of labor forces, transport and power industry in the Sakha Republic (Yakutia) till the year 2020, the republic is constructing a railway to the city of Yakutsk with a bridge across the Lena River; in future it is expected to reach the border with Magadan Oblast.

The republic is creating all-year-round network of federal and republic’s motorways with the major logistic hub in the city of Yakutsk; it is also modernizing the airplane and river fleet. There is a plan to connect central, western and southern parts of the republic by power transmission lines, to construct economical power stations.

As a result of these changes in infrastructure, by the year 2020 weight-average cost of bringing one ton of cargo to the regions of the republic would halve and the power tariffs would equal with the average all-Russian level.

In accordance with order of the Russian Government of 10 March 2009 No. 302-r, there started implementation of the first stage on designing documentation for “Integrated Development of Southern Yakutia” investment project. Since the launch of the project, it has received for preparatory and pre-project works RUR 24,2 billion, including RUR 16.5 billion of private investments, RUR 7.25 billion – from the Investment Fund of the Russian Federation. The project includes the following sites: Kankun hydropower station (OAO “RusHydro”, OAO “Yuzhno-Yakutsky GEK”), Yakutsk Center for gas production (OAO “Gazprom”), Elkonsky mining and smelting plant (OAO “Atomredmetzoloto”,

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ZAO “Elkonsky GMK”), Inaglinsky coal complex (OOO “Kolmar”, ZAO “Yakutskie ugli – new technologies”), Tarynakh and Tayozhny GOKs (mining and processing plants) (OAO “GMK “Timir”), Seligdar mining and chemical plants (OAO “ALROSA Investment Group”), 270 km of railways, 150 km of motorways, 1,200 km of power transmission lines and 7 substations. The project creates conditions for attracting investments into Southern and Western Yakutia, for realization of projects in related industries. Besides, in Southern Yakutia OAO “Mechel” will develop Elga cola deposit with balance reserves at 2.1 billion tons.

A similar cluster approach is applied to a number of other megaprojects:

“Integrated development of Tomponsky mining industrial region”. With the use of private investments, this project includes development of Nezhdaninskoe gold deposit, Verkhne-Menkechenskoe silver and polymetals deposit, as well as construction of Dzhebariki-Khaya heat power station, 3 power lines and 2 substations.

“Integrated development of Western Yakutia”. This comprehensive investment project includes development of oil and gas fields; construction of pipelines; construction of underground diamond mines; building Vilyui motorway; building motorways and power transmission lines connecting Yakutia with Irkutsk Oblast.

The Eastern Gas Program of the Russian Federation Government includes development of Chayanda-Khabarovsk-Vladivostok and launching the development of Yakutia gas center with the development of Chayanda-Botuobinskaya group of gas fields.

Legislation regulating investment activity in the Sakha Republic (Yakutia)

Federal normative acts:1. Federal Law of 25 February, 1999 No.

39-ФЗ “On investment activity in the Russian Federation, performed in the form of capital investments”;

2. Federal Law of 21 July, 2005 No. 115-ФЗ “On concession agreements”;

3. Federal Law of 22 July, 2005 No. 116-ФЗ “On special economic zones in the Russian Federation”;

4. Federal Law of 9 July, 1999 No. 160-ФЗ “On foreign investments in the Russian Federation”;

5. Federal Law of 29 April, 2008 No. 57-ФЗ “On procedure of foreign investments into economic entities of strategic importance for defense and national security”;

6. Federal Law of 29 October, 1998 No. 164-ФЗ “On financial rent (leasing)”;

7. Federal Law of 30 December, 1995 No. 225-ФЗ “On agreements about production division”;

8. Federal Law of 30 December, 2004 No. 210-ФЗ “On tariff regulation in communal service institutions”;

9. Federal Law of 14 April 1995, No. 41-ФЗ “On state regulation of tariffs for electric and heat power in the Russian Federation”;

The Republic’s normative acts: 1. The Sakha Republic (Yakutia) Law of

30 May, 2006 347-З No. 709-III “On investment activity in the Sakha Republic (Yakutia); amendments to the Law are to be approved before the end of 2011.

2. The Sakha Republic (Yakutia) Law of 22 December, 1992 No. 1270-XII “On foreign investments in the Sakha Republic (Yakutia); amendments to the Law are to be approved before the end of 2011.

3. The Sakha Republic (Yakutia) Law of 10 July, 2003 No. 48-З No. 97-III “On taxation policy in the Sakha Republic (Yakutia);

4. Draft Law of the Sakha Republic (Yakutia) “On Public-Private Partnership in the Sakha Republic (Yakutia) is to be approved before the end of 2011”;

5. Program on creating a favorable investment climate in the Sakha Republic (Yakutia) approved by the Resolution of the Sakha Republic Government of July 1, 2011 No. 286.

6. Resolution of the Sakha Republic Government of 26 April, 2007 No. 171 “On adopting a procedure of approving investment programs of regulated organizations”;

7. Resolution of the Sakha Republic Government of 30 June, 2005 No. 404 «”On procedure and terms of forming the united registrar of capital investment objects in the Sakha Republic (Yakutia)”;

8. Resolution of the Sakha Republic Government of 30 June, 2005 No. 403 “On establishing criteria for long-term termination of

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financing investment projects from the state budget of the Sakha Republic (Yakutia)”.

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Tax incentives

One of the forms of investment activity state regulation is to establish favorable conditions by providing tax incentives.

In compliance with the Law of the Sakha Republic (Yakutia) “On investment activity in the Sakha Republic (Yakutia)”, the subjects of investment activity may seek the following tax incentives:

on the income tax of the organizations in the form of reduction by four percentage points of the rate of income tax to be paid to the state bud-get of the Sakha Republic (Yakutia);

on the property tax of the organizations in terms of the property newly created, purchased or reconstructed (upgraded) to implement an in-vestment project, and (or) in terms of the property provided for temporary ownership or use in com-pliance with the financial leasing agreement, and (or) in terms of the property purchased in compli-ance with the financial leasing agreement;

on transport tax in relation to vehicles used to implement an investment project.

The incentives can be provided for five years from the start of an investemt project implementation.

In order to stimulate and modernize water supply and draining, the tax benefit has been established for enterprises dealing with withdrawal, treatment and distribution of water and investing capital for these goals.

In order to stimulate investment activity of oil producing enterprises, the republic has lowered the income tax going to the regional budget from 18% to 13.5%, on condition that the capital is invested for development of natural resources.

In order to ensure timely supply of the Far North and other territories with limited access with necessary resources during the navigation period, and to improve financial situation at water transport enterprises,operating sea-river type vessels, the abovementioned enterprises pay lower income tax at the rate of 13.5% and are exempted from corporate property tax.

Due to seasonal nature of their activity, water transport enterprises are exempted from paying the property tax on their property which is conserved or idle; forestry and timber industry

enterprises – on their property which is conserved.Also, enterprises generating electric power

with diesel stations in the north are exempted from the property tax if this activity earns over 70% of the total revenues from production (works, services) sale.

In order to support local manufacturing in terms of basic production assets, food industry enterprises pay the benefit property tax at 1.1% rate.

Airports with property worth more than RUR 300 million are also exempted from the property tax. This benefit is aimed at modernizing and reconstructing airport facilities, better working conditions and labor safety.

To support airworthiness of aircarfts, air transport enterprises which perform 50% and more of socially important passenger traffic and are enlisted as such by the Sakha Government, are exempted from paying the property tax.

To prevent higher tariffs for heat energy, there is a tax benefit on property of utilities and communal services organizations receiving subsidies from the budget to compensate losses; besides, enterprises in this sphere enjoy a benefit on the transport tax in relation to their special vehicles.

Like it is granted by the federal legislation, there is a benefit for motorways of public use, both republic’s and municipal.

Given high costs of agriculture, enterprises producing and processing agricultural products are granted some benefits on regional taxes.

To support small businesses using the simplified taxation system with taxation target being “revenues and expenses”, the tax rate has been lowered from 15% to 10%, the simplified patent-based taxation system has been introduced for private entrepereneurs.

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Financial infrastructureThe banking system of the republic is

represented by 22 credit institutions, including 4 independent banks, 18 branches of banks of other regions.

Assets of credit institutions of the republic in 2010 totaled RUR 109.3 billion and increased the level of 2009 by 8.6%.

In the insurance market there are 2 repub-lican insurance companies: OAO RIC “Sterkh", and OAO GSMK "Sakhamedstrakh", 11 branches of insurance companies of other regions of Russia.

The branch network of the RIC "Sterkh" and OAO GSMK "Sakhamedstrakh" covers all re-gions of the republic. Additionally, the regional in-surance company came to the inter-regional level, opening branches of the RIC "Sterkh" in Khabarovsk and GSMK "Sakhamedstrakh" in Ma-gadan.

There are 7 organizations with 20 licenses for professional activity in the securities market.

OAO "Republican Specialized Registrar “Yakutsk Fund Center "(YFC) is one of the old-est independent Russian registrars at the federal level in the Far East, carrying out activities in keeping the register of holders of securities since 1993. Its license was issued by the Federal Finan-cial Markets Service of Russia for an indefinite term. YFC is a member of a self-regulatory organi-zation of securities market participants - the Pro-fessional Association of Registrars, Transfer Agents, Depositories (PARTAD) since 1995.

OAO "Yakut Depository Center" (YDC) was established on January 26, 1996. Activities: brokerage, management of securities depository ac-tivities. YDC is a member of a self-regulatory or-

ganization "National Securities Market Associa-tion" (NSMA).

Entrepreneurship There are 47 thousand small and medium-

sized business entities, including 5.1 thousand small and medium-sized enterprises and 41.8 thou-sand registered individual entrepreneurs.

According to expert estimation (including salaried employees of individual entrepreneurs), the share of employment in small and medium en-terprises in the total employment in the economy is 40%.

The turnover of small businesses in 2010 increased by a quarter and is RUR 80.7 billion and the turnover of medium-sized enterprises almost doubled and exceeded RUR 19.2 billion million.

Financial support for entrepreneurs is facili-tated through the relevant federal, republican and municipal programs of the funds of entrepreneur-ship support and development.

Businesses can partly recover expenses in-curred during the entire production cycle, including cadastral work and promotion of manufactured products to domestic and foreign markets. Particu-lar attention is given to innovative small companies and companies involved in the modernization of production and its export.

State support areas in high demand are the following: grants, microfinancing, suretyship, property support, educational programs.

Infrastructure of property support of busi-nesses includes business incubators in the cities of Yakutsk and Neryungri. A business incubator in Nyurba and a technopark in Neryungri are being set up currently.

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External economic activityThe Sakha Republic (Yakutia) has external

commercial relations with 45 countries. Ties have traditionally been strong with European countries; external economic cooperation of the republic with India, Israel, USA, China is developing dynamically. 94% of the entire foreign turnover of the republic falls on these countries.

By the results of 2010 the growth of basic indices of the republic’s economic development has been witnessed, including the external economic activity indices. In 2010 the exports volume made USD 3232,9 million. The imports volume made USD 90,7 million. In 2010 the foreign turnover more than doubled compared to the 2009 level up to USD 3323 million. Export surplus went positive and made USD 3142,2 million, which is USD 1761,0 million more than in 2009.

КАРТИНКА:Foreign turnover anf investments of the

Sakha Republic (Yakutia), USD million Imports, UDS million Exports, USD millionInvestment receipts, USD million

Among the regions of the Far Eastern Federal District the Sakha Republic (Yakutia) has preserved its positions, holding the third place the foreign turnover index, being inferior to Sakhalin Oblast and Primorsky Krai.

Exports volume grew by the results of 2010 due to the sales of precious stones, precious metals and products from them to Belgium, Israel and India (81,7% of the total exports volume).

Goods were mostly delivered to the republic from the USA (35,3% of the total imports volume), China (13,5%), Japan (12,9%), Germany (8,7%),

Ukraine (6,9%), Korea (6,2%).In 2010 the enterprises and organizations

of Yakutia received USD 8,1 million from rendering international services. They basically include transportation services (94,6%), services of travel agencies, tourist agents and excursion agencies.

In 2010 the number of participants of the external economic relations in the Sakha Republic (Yakutia) grew by 6,6% and made 129 units.

As of January 1, 2011, the accumulated foreign capital in the republic’s economy made USD 2122 million, which is 43% more than a year before.

USD 1337 million of investments came to the republic’s economy from abroad in 2010, which is 20% more than in the similar period of 2009. 99% of the total receipts volume was invested in natural resources extraction.

In the structure of accumulated foreign investments at January 1 2011 the share of direct investments made 11,9 %, portfolio investments 0,2%, the share of other investments on the revolving basis (credits) – 87,8%.

Luxemburg (80,9%) and Cyprus (13,1%) were leading among the investing countries by the volume of the capital accumulated in the republic.

By the volume of investment income from abroad to the regions of the Far Eastern Federal District in 2010 the Sakha Republic (Yakutia) takes the 2nd place after Sakhalin Oblast.

List of investment projects

Integrated Large-scale Projects

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1. Project name Integrated development of Southern YakutiaLocation Aldansky, Neryungrinsky, Olekminsky regions of the Sakha Republic (Yakutia)

Project initiator Government of the Sakha Republic (Yakutia), OAO “Development of South Yakutia Corporation»

Project characteristics The project purpose – creation based on the principles of public-private partner-ship, of a new large industrial area with hydropower facilities, power grid and transportation infrastructures and a cluster of industrial production (electricity consumers guaranteed), mainly associated with advanced processing of avail-able mineral resources (natural gas, apatite, coal, iron and uranium ores and other).

The project main tasks and expected oucomes:- removal of infrastructural constraints for socio-economic development of the area;- maintaining high economic growth rates in the country;- increase the economically active population in Yakutia - one of the most sparsely populated regions of the Russian Federation;- revenue growth and improving the quality of life;- increase the revenue base of the budgets of all levels;- development of strategic goods production;- development of new production of advanced processing of raw materials;- diversification of Russia's exports (as an extension of its geography and in-crease the range of manufactured goods);- strengthening Russia's geoplolitical position in Asian-Pacific Region.

Construction of industrial facilities: - Inaglinsky coal complex (2013)- Southern Yakutia metallurgy union (mining and processing of iron ore):

Tayozhny mining and processing plant (2016)Tarynakhsky mining and processing plant (2016-2018)

- Seligdar gas and chemical complex (mining and production of phosphor and complex fertilizers) (2019)

- Yakutsk Gas Production Center (2020)- Elkon mining metallurgy plant (mining and processing of uranium) (2025)- Kankun HPS (2019-2025)Construction of infrastructure facilities:- Railway infrastructure (about 270 km) (2012-2015):

- Tommot-Elkon mining metallurgy plant,- Kosarevsky-Seligdar gas and chemical complex,- Tayozhnaya-Tayozhny mining and processing plant,- Chulbass-Inaglinsky coal complex,- Ikabiekan-Tarynakhsky mining and processing plant.

- Motorway infrastructure (about 150 km) (2014):- Tommot-Elkon mining metallurgy plant,- Malyi Nimnyr- Kankun HPS.

- Power supply network infrastructure (about 1200 km of HVL and seven substations) (2012-2015):

- HVL “Kankun HPS-Neryungri” and substation “Neyungri”,

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- HVL “Kankun HPS-aldan” and substation “Aldan”,- power supply to Elkon Elkon mining metallurgy plant, Tarynakhsky and Tayozhny mining and processing plants, Seligdar gas and chemical complex and Inaglinsky coal complex.

Investment volume According to the project framework, approved by the Governmnetal Commis-sion on Investment Projects of national significance (protocol № 1 of October 10 2008), the total volume of investment in 2007 prices will make RUR 422,477 billion, including budget allotments of RF Investfund RUR 14,5 billion, funds of investors – RUR 308 billion.

Infrastructure available Land has been allocated for industrial facilities (except Seligdarsky MCC and Yakutsk Gas Production Center).

Infrastructure required Included in the project.

Cost of project Project planning: RUR 10 064,4 m, (including RF Investfund – RUR 7 428,2 m, project co-investors – RUR 2 636,2 m)Construction (in 2007 prices, according to the Project framework): RUR 413 602,1 m, (including RF Investfund – RUR 107 862,9 m, co-investors – RUR 305 739,2 m.)

Implementation period I stage – project documentation development – 2009 – 2012.II stage – construction works – 2012-2025.

IRR 16,8%

NPV RUR 83 265 m

Investor’s involvement Investors: - OOO Kolmar - Inaglinsky coal complex- OAO GMK Timir - Southern Yakutia metallurgy union- OAO Atomredmetzoloto, ZAO Elkon mining metallurgy plant - Elkon

mining metallurgy plant- OAO Gazprom - Yakutsk Gas Production Center- AK ALROSA (OAO) - Seligdar gas and chemical complex- OAO RusHydro, OAO Southern Yakutia MPP - Kankun HPS.

State support of the I stage of the project implementation in terms of funding the design of infrastructure facilities is provided from the RF Investfund. The state represented by the responsible officers secures design and construction of the following: - Railway infrastructure – Roszheldor,- Motorway infrastructure – Rosavtodor,- Poer supply network infrastructure, scheme of Kankun HPS poer output,

development of Kankun HPS design estimates, participation in funding of Kankun HPS construction (dam construction) – Russian Energy Ministry,

- Development of Elkon MMP design estimates – Rosatom. Project documentation development: – RUR 2 636,2 m)Construction (in 2007 prices, according to the project framework): – RUR 305 739,2 m.

Project detailedness Designing of the project estimates is available and there is the State Expertise positive conclusion on Inaglinsky Coal Complex, road for the Elkonsky Mining and Metallurgical Plant and a railroad for Inaglinsky Coal Complex. Designing of the project estimates on other transportation infrastructure facilities were sent for expertise.

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The project documentation will be completed gradually during 2011-2012.

As of July 1 2011, state investments allocated for the project estimates made RUR 7,253 billion. The remaining volume of financing fro RF Investfund in 2011 will make RUR 175,152 million (including for electric power supply infra-structure facilities – RUR 100,6 million, railway infrastructure RUR 71 million, motorways – RUR 3,552 million).The expenses of investors made RUR 16,952 billion, including RUR 687,3 mil-lion for desigs estimates within the Invetsment Agreement.

CEO of an organization implementing the project

Mikhail Lvovich BRUK General director ОАО “South Yakutia Development Corporation”

Conracts ОАО SYDC, 127473, Russia, Moscow, Seleznevskaya str. 11бtel. +7 (495) 232-42-44, fax: +7 (495) 232-95-13e-mail: [email protected] http://www.sy-corp.ru

2. Project name “Integrated development of the mining industrial region Tomponsky”Location Tomponsky region of the Sakha Republic (Yakutia)

Project initiator Government of the Sakha Republic (Yakutia), OAO “South-Verhoyanskaya Mining Company” (OAO “Polyus Zoloto”)

Project characteristics The aim of the project is to create based on public-private partnership principles a large industrial area in the North-East of Russia on the base of electric power supply infrastructure industrial production facilities related to nonferrous metals mining. The project assumes the implementation of the following large investment projects: “Development of Nezhdaninskoe gold deposit”“Development of Verkhne-Menkechenskoe polymetals deposit”“Construction of Dzhebariki-Khaya coal power station” “Construction of electric power and transport infrastructure” The following constructions will be financed at the expense of budget alloca-tions:- Thermal power station on the existing Dzhebariki-Khaya coal deposits with to-tal funding of 15,4 mld. rubles VAT included in 2010 1st quarter prices;- Electric power lines and substations

HVL-220 kV “Khandyga – Razvilka”; HVL-220 kV ”Dzhebariki-Khaya – Khandyga”; HVL-110 kV “Razvilka – Nezhdaninskoe”; branch-line to

Verkhne-Mechenskoe from HVL-110 kV “Razvilka-Nezhdanin-skoe”);

Substation 220 kV “Khandyga”, “Razvilka”; Substation 110 kV “Nezhdaninskoe”; Substation 110 kV “Verhne-Menkechenskoe”, with total funding

of RUR12,2 billion VAT included in 2010 1st quarter prices.

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The following construction works will be at the cost of private investors: a) Nezhdaninsky Mining Enterprise with extraction and processing capacity of 3 m t a year. Construction investment is RUR 25,4 billion VAT included in 2010 1st quarter prices.b) Verhne-Menkechensky Lead-Zink Mining Enterprise with of capacity 500 000 t of ore a year. Construction investment is RUR 4,2 billion VAT in-cluded in 2010 1st quarter prices.

Investment volume RUR 57,2 b

Infrastructure available KOLYMA Federal Road

Infrastructure required Design and construction of a thermal power station, power grid infrastructure

Cost of project RUR 57,2 b (in 01.01.2010 prices including VAT)

Implementation period The first phase 2011 and 2014 includes construction project documentation de-velopment (it should be finished by December 2012 and sent to FGU “Glav-gosekspertiza” followed by designing facilities):1. Nezhdaninskoe Mining Enterprise (GOK).2. Verhne-Mechegenskoe Lead-Zink Mining Enterprise.3. Thermal power station on the existing Dzhebariki-Khaya coal deposits4. Electric power infrastructure

The second phase 2013-2016 includes detailed engineering (designing finishes in 2014) and facilities construction:1. Industrial enterprices:• Nezhdaninsky Mining Enterprise with extraction and processing capacity of 3 m t a year;• Verhne-Menkechensky Lead-Zink Mining Enterprise with capacity 0.5 m t of ore a year. 2. Thermal power station on the existing Dzhebariki-Khaya coal deposits.3. Electric power infrastructure:

double circuit 220 kV “Khandyga – Razvilka”; double circuit 220 kV ”Dzhebariki-Khaya – Khandyga”; HVL 110 kV “Razvilka – Nezhdaninskoe”; Substation 220 kV “Handyga”, “Razvilka Substation 110 kV “Nezhdaninskoe”.

IRR Will be calculated after joining of all estimates into a single financial model

NPV Will be calculated after joining of all estimates into a single financial model

Investor’s involvement Investors: - ZAO Polyus – construction of Nezhdaninsky Mining Enterprise - OAO Geopromining – Verhne-Menkechensky Mining Enterprise

investors to design and construct thermal power station and electric power supply networks (power supply lines, step-down and step-up substations) have not been identified.

Project detailedness Techno-economic evaluation of construction of "Coal electric station in Tom-ponsky region Republic of Sakha (Yakutia)."Techno-economic evaluation of the cost of the external electrical network infra-structure of the perspective companies of Tomponsky mining region.Feasibility study of exploratory conditions for calculation of Nezhdaninskoye gold deposit.

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Preliminary geological and economic evaluation of Mining Complex on the ex-isting polymetallic deposit Verhne-Menkeche.

CEOof an organization implementing the project

General Director Igor Igorevich TSUKUROV - OAO “South-Verhoyansky Mining Company”

Contacts 677000, Yakutsk, Lermontova str., 25, 5th floorTel/Fax: +7 (4112) 22-61-40

Oil and Gas Complex

3. Project name Development of Chayanda gas condensate field Location Lensky region, Sakha Republic (Yakutia)Project initiator OAO GazpromProject characteristics Field reserves:

natural gas:o С1 – 379.7 b cub.m;o С2 – 861.2 b cub.m; gas condensate :o С1 – 6088/5732 ths t;o С2 – 13423/12657 ths t; oil:o С1 – 165/42.5 m t;o C2 – 32.6/7 m t.Construction of Chayanda oil and gas condensate field: 10. construction of the field oil fringe (beginning of oil production - 2014):1) construction of a pipeline from the field to the Eastern Siberia – the Pacific Ocean (ESPO) system;11. construction of the field gas pool (beginning of gas production - 2016):1) construction of a trunk pipeline Yakutia – Khabarovsk - Vladivostok;2) construction of gas processing and gas-chemical facilities for extraction of gas valuable components.Volume of gas and oil production at the field, system of oil and gas external transportation from the field, distribution and capacity of gas processing and gas-chemical facilities will be determined by “Justification of investments into construction of Chayanda filed, transport and gas processing” (to be complete in the 3rd quarter of 2011).

Volume of investment RUR 986 236 m in 2010 prices (to be reviewed in accordance with “Justification of investments into construction of Chayanda fieldd, transport and gas processing”)

Infrastructure available At Talakan field (immediate vicinity from Chayanda field), there is a gas-turbine power station of OAO Surgutneftegaz. Its capacity may be used for power supply of industrial facilities at Chayanda field.There is a concrete-covered motorway from river berths in settlements of Vitim and Peledui to Talakan field (which is very close to Chayanda

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field), also owned by OAO Surgutneftegaz.The route of major gas pipeline “Chayanda – Khabarovsk - Vladivostok” has been identified: «Chayanda – Lensk – Olyokminsk – Aldan – Berkakit – Tynda – Skovorodino – Blagoveschensk – Khabarovsk-Vladivostok» (along the ESPO).Electric power is supplied to Lensky region via two HV-100 kV power transmisison lines Mirny - Lensk. With Option 1 route, there are constructed deposits of common mineral resources (mines); HV-220 kV lines Suntar – Olyokmonsk and Neryungri HPS – Nizhny Kuranakh – Tommot – Maya; roads along the ESPO.HVL 220 kV Chernyshevsky - Mirny - Lensk - Peledue (double-circuit) and VILYUI federal motorway on route Mirny - Lensk – Peledui – Vitim – Nepa – Ust-Kut are under construction.

Infrastructure required Construction of a railroad Lena station – Nepa – Vitim – Lensk is necessary.

Cost of project RUR 986 236 m in 2010 prices Implementation period Beginning of oil production – 2014

Beginning of gas production – 2016IRR No informationNPV No informationPayback period Upon results of “Justification of investments into construction of

Chayanda filed, transport and gas processing”) (to be complete in the 3rd quarter of 2011).

Markets Subjects of the Russian Far East and Asian Pacific countries.Investor's involvement 100% owned by OAO GazpromProject detailedness Works are conducted on drilling the prospect wells. In 2011-2013 it is

planned to drill 15 prospect wells (5 each year). The project is going through a fesibility study stage, enfineering and geologicval research is conducted.

CEO of an organization implementing the project

General Director, ООО GAZPROM Invest Vostok Dmitry Yurievich SHELEKHOV

Contacts 680000, Khabarovsk Krai, Khabarovsk, 22 Shevchenko Str. Tel. (4212) 41-53-08, (495) 984-63-73.Fax (4212) 41-53-03, (495) [email protected]

4. Project name Development of Srednetyungskoe gas condensate fieldLocation Vilyuisky region, Sakha Republic (Yakutia)

Srednetyungskoe gas condensate field is situated within Vilyui depression in the middle course of the Tyung River, the left tributary of the Vilyui River.

Project initiator OAO SakhatransneftegasProject characteristics Aim: creation of transport and electric power infrastructure.

Construction: - construction of gas production facilties at Srednetyungskoe gas condensate field (STGCF) with capacity of 403 m cub.m a year;- construction of a trunk pipeline STGCF – Tamalakan, 135.2 km long.

Volume of investment RUR 5,106.70 m in 2011 prices Infrastructure available Cargoes are brought by the river transport along the Lena and Vilyui

Rivers via the settlement of Kysyl-Syr. Technical cargoes are carried

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by small river fleet along the Tyung River. The navigation period on the Vilyui River is usually short – June – early July, seldom throughout August.VILYUI federal motorway and Vilyuisk – Tyung temporary winter road to the field site. Nearest airports – Yakutsk, Vilyuisk, Kysyl-Syr. In summer, most cargoes and people are carried by helicopters.Teher is a gas production facility near the settlement of Kysyl-Syr. The nearest operating trunk pipeline Kysyl Syr – Tamalakan (Du 300) is situated 135 km from Srednetyungskoe filed. The pipeline transports gas from Srednevilyuiskoe gas condensate field (settlement of Kysyl Syr).Electric power to Vilyuisky and Verkhne-Vilyuisky regions is supplied via HVL 110 kV Mirny – Suntar – Vilyuisk – Verkhnevilyuisk. To enhance electric power infrastructure and increase power volume delivered in this direction, there is being constructed HVL 220 kV Mirny – Suntar – Nyurba. Mirny – Suntar leg has been complete and operates with 220 kV substation in the settlement of Suntar.

Infrastructure required -Cost of project RUR 5056,7 m Implementation period 2012-2015 IRR -NPV -Payback period -Markets Central region of the Sakha Republic (Yakutia) Investor's involvement 100% investor Project detailedness Design estimates – available

Business plan - availableCEO of an organization implementing the project

Ivan Konstantinovich MAKAROVGeneral Director, OAO Sakhatransneftegaz

Contacts Yakutsk, Kirova Str., 18, block BAlexander Vasilievich GOGOLEV,Deputy General Director, OAO SakhatransneftegazTel./fax +7 (4112) 42-48-44 е-mail: [email protected]

5. Project name Development of Otradninskoe gas condensate field

Location Lensky region of the Sakha Republic (Yakutia)

Otradninskoe gas condensate field is situated in Lensky region of the Sakha Republic (Yakutia) 65 km north-west of the town of Lensk and in proximate vicinity to the propsed gas pipeline Chaynda-Khabarovsk-Vladivostok.

Project initiator OAO Sakhatransneftegas

Project characteristics Aim of the project: development of Otradninskoe GCF and supply of consumers in the town of Lensk, Sakha Republic (Yakutia), with natural gas; increase in natural gas balance reserves.

Gas stocks – С1-939 million m3, С2-5 400 million m3.

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Forecast resources – Д1-39 018 million m3, С3-49 971 million m3

Stage 1 of the project will result in :

- development of transport and electric power infrastructure, gasification of the town of Lensk;

- increased power and industrial safety of western region of the Sakha Republic (Yakutia).

In middle-term perspective:

- eliminated local nature of the regional gas supply system;

- ensured export of gas;

- achievement of the task to fill the export gas pipeline.

Volume of investment RUR 12,980 m in 2010 prices ($ 457 m)

Infrastructure available There is an airport, operating all the year round and able to accept almost all types of cargo planes; a large river port. Materials and equipment are delivered by railway to Lena station, then by water transport along the Lena River to the town of Lensk. From Lensk cargoes are delivered by motor transport along Lensk – Mirny motorway. Electric power supply of Lensky region comes from two HVL-110 kV Mirny-Lensk.

In close proximity to the field there is a a pipeline system East Siberia – Pacific Ocean. It is planned to construct a major gas pipeline Chayanda – Khabarovsk – Vladivostok on route Chayanda – Lensk – Olyokminsk – Aldan – Berkakit – Tynda – Skovorodino – Blagoveschensk – Khabarovsk-Vladivostok (along ESPO).

There are equipped fileds of commonly occuring mineral resources (mines). HVL 220 kV Chernyshevsky - Mirny - Lensk - Peledui (double-curcuit) and VILYUI federal motorway on route Mirny - Lensk – Peledui – Vitim – Nepa – Ust-Kut are under construction.

Infrastructure required Not requiredCost of project Capital investment, RUR m,

including: 12 980

Improvement Purchase of OOO Lensk-Gaz

3 9603 500

Exploitation drilling 2 160 Prospect drilling 1 560Gas pipeline 1 485

Implementation period 2011 – 2015

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IRR 5.0%NPV RUR 3,079 m (not considering connecting in 2016)Payback period Basic payback period 15.5 years, discounted payback period – 29.5

yearsMarkets Consumers of Lensk, gas supplies to the designed major gas pipeline

Chayanda – Khabarovsk - Vladivistok.Investor's involvement Purchase of OOO Lensk-Gaz; the field development to annual

production capacity of 1,000 m cub.m.Project detailedness Stage 1 design estimates (gasification of the town of Lensk) – there is a

justification of economic efficiency of developing Otradninskoe field resource potential.

CEO of an organization implementing the project

Contacts

Ivan Konstantinovich MAKAROV General Director, OAO Sakhatransneftegaz

Yakutsk, Kirova Str., 18, block BAlexander Vasilievich GOGOLEV,Deputy General Director, OAO SakhatransneftegazTel./fax +7 (4112) 42-48-44 е-mail: [email protected]

6. Project name Development of Biryuksky licensed site

Location Olyokminsky region, Sakha Republic (Yakutia)

Project initiator OAO Tyumaada-Neft Oil Company

Project characteristics Project aim: production and selling of oil and natural gas; discovery of new oil and gas fields and their further development.The site is evaluated as a very promising territory in terms of oil and gas bearing.The site area is 3,608.7 sq.km. Carbohydrate resources of category D2

within the site amount to: oil (extractable) – 3.5 m t, gas – 40.0 b cub.m. The reserves density on the site makes from 3-5 to 10-30 ths t of reference carbohydrates per sq. km.The following works have been done on the site:- evaluation of the current background level on the territory;- program on monitoring of the natural environment and subsurface resources condition;- program on prospecting and evaluation works for the period 2010 – 2015;- project on seismic survey works.In accordance with the License Agreement, the following works are to be done within the next 5 years:- seismic survey works МОГТ-2D, at least 1,800 running km;- construction of at least three prospecting holes.The project includes creation of the production well fund; development of the field for production; creation of infrastructure for oil and gas selling.

Volume of investment RUR 21,500 m in 2011 prices ($862.7 m)

Infrastructure available The largest settlement within the site territory – town of Olyokminsk, the region's center, with population of 13 thousand people. There is a

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river port and airport in the town. The major transport way is the Lena River. The distance from the site's northern border to pipelines is: settlement of Tas-Yurekh-town of Mirny – 390 km; Kysyl Syr-Yakutsk – 400 km. The ESPO trunk pipeline runs through the central part of the site. A gas pipeline Chayanda-Khabarovsk-Vladivostok will be along the ESPO system. High-voltage power transmission line Suntar – Olyokminsk, OPS-14 of ESPO system runs through the center of the site. The distance to Berkakit – Tommot – Yakutsk (Nizhny Bestyakh) railroad is 340 km. In October-April, transporting of cargo is done by winter motorways. The road along the ESPO system is operated all the year round. Under way is construction of HVL 220 kV Chernyshevsky – Mirny – Lensk – Peledui. End of constrcution – 2014.

Infrastructure required Construction of an industrial terminal substation in the town of Olyokminsk.

Cost of project RUR 21,500 m

Implementation period Gas pool – 20 yearsOil pool – 7 years

IRR Estimated at 18-20 % (to be adjusted by the feasibility report results)

NPV -

Payback period -

Markets 1. Domestic market for needs of the housing and communal service sector in the region and neighboring areas.2. Delivery of oil to the ESPO pipeline and its further transportation to the Russian Far East and Asian Pacific countries.3. Delivery of natural gas into the trunk pipeline Chayanda-Khabarovsk-Vladivostok and its further transportation to the Russian Far East and Asian Pacific countries.

Investor's involvement 1. Partnership as a strategic partner with a share in charter capital.2. Project financing.3. Establishment of long-term of syndicated loans.

Project detailedness Seismic survey has covered 0.12 running km/sq.km of the site. Four deep holes have been drilled. Geological and engineering survey has revealed three oil-bearing complexes: Riphean, Lower Lower Vendian and Lower Cambrian subsalt.Being developed: - research report “Environmental study of Biryuksky licensed site”;- monitoring of the environment and subsurface resources condition at Biryuksky licensed site;- prospecting and assessment works for OAO Tuymaada-Neft Oil Company on Biryuksky licensed site;- seismic prospecting works МОГТ-2Д at Biryuksky licensed site of

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the Sakha Republic (Yakutia);- feasibility study of the project;- audit of oil and gas reserves under international standards;- draft project on prospecting holes drilling.

CEO of an organization implementing the project

Contacts

Stepanov Mikhailovich CHEPALOV General Director, OAO Tyumaada-Neft Oil Company

Alexander Innokentievich MATVEEV,Deputy General Director on Gas and Oil ProjectsTel. +7 (4112) 43-35-22 Innokenty Nikolaevich FADEEV,Chief Geologistcell # +7-914-2-710-861 е-mail: [email protected]

7.Project name Development of Zapadno-Anabarsky (West Anabar) licensed site

Location Anabarsky National (Dolgan-Even) region, Sakha Republic (Yakutia) Project initiator OAO Tyumaada-Neft Oil Company Project characteristics Project aim: production and selling of oil and natural gas from Yuzhno-

Tigyanskaya (South Tigyan) area. Discovery of new oil and gas fields and their further development.The site is evaluated as a very promising territory in terms of oil and gas bearing.The site area is 1,564 sq.km. Carbohydrate resources of category D1+ D2 within the site amount to: oil – 10.3 m t, gas – 16.3 b cub.m. The following works have been done on the site:- evaluation of the current background level on the territory;- program on monitoring of the natural environment and subsurface resources condition, developed and approved;- program on prospecting and evaluation works for the period 2008 – 2013, developed and approved;- project on seismic survey works, developed and underwent expertise.In accordance with the License Agreement, the following works are to be done within the next 5 years:- seismic survey works МОГТ-2D, at least 1,000 running km;- construction of at least three prospecting holes.The project includes creation of the production well fund; development of the field for production; creation of infrastructure for oil and gas selling.

Volume of investment RUR 38,500 m in 2011 prices ($1,355.6 m)

Infrastructure available The site is situated on the Laptev Sea coastal area, between the Anabar and Khatanga Rivers. The closest settlement Yurung-Khaya, with a sea oil terminal and a helicopter landing site, is 80 km away. There is a winter motorway. Electric power to the settlement of Yurung-Khaya is supplied by a diesel power station owned by OAO Sakhaenergo.The regional center Saskylakh, with an airport and a sea port, is 180 km away.The settlement of Khatanga, Krasnoyarsk Krai, with a sea port is 250

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km up the Khatanga River. The industrial base MAYAT, owned by OAO Almazy Anabara is 250 km up the Anabar River.

Via the Northern Sea Route, the Khatanga Bay is open for sea vessels.Infrastructure required Sea berth, terminal for storing and loading oil to tankers; industrial

facilities.Cost of project RUR 38,500 mImplementation period Gas pool – 12 years

Oil pool – 10 yearsIRR Estimated at 15 – 18 % (to be adjusted by the feasibility report results)NPV -Payback period -Markets 1. Domestic market for needs of the housing and communal service

sector in the region and neighboring areas.2. Delivery of oil via the Northern Sea Route to EU and Asia-Pacific countries.

Investor's involvement 1. Partnership as a strategic partner with a share in charter capital.2. Project financing.3. Establishment of long-term of syndicated loans.

Project detailedness Geophysical works started in the late 1930s. They have covered 566.6 running km of seismic profiles. 17 deep holes have been drilled, with total length of 30,770 m and density of 19.7 m/sq/km. The document available: - research report “Environmental study of Zapadny Anabarsky licensed site” by the Institute for Biological Problems of Cryolithozone, Siberian Branch, Russian Academy of Sciences;- program on monitoring of the environment and subsurface resources condition at Zapadny Anabarsky licensed site by the Institute for Biological Problems of Cryolithozone, Siberian Branch, Russian Academy of Sciences;- program on prospecting and assessment works for OAO Tuymaada-Neft Oil Company on Zapadny Anabarsky licensed site by OAO Tuymaada-Neft Oil Company; - project for seismic prospecting works МОГТ-2Д at Zapadny Anabarsky licensed site in the Sakha Republic (Yakutia).Being developed: - feasibility study of the project by OOO NIOKR-Service;- audit of oil and gas reserves under international standards by the International Audit Company;- draft project on prospecting holes drilling.

CEO of an organization implementing the project

Stepan Mikhailovich CHEPALOV General Director, OAO Tyumaada-Neft Oil Company

Contacts Alexander Innokentievich MATVEEV,Deputy General Director on Gas and Oil ProjectsTel. +7 (4112) 43-35-22 Innokenty Nikolaevich FADEEV,Chief Geologistcell # +7-914-2-710-861 е-mail: [email protected]

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8. Project name Development of Mukhtinsky licensed siteLocation Olyokminsky region, Sakha Republic (Yakutia)Project initiator OAO Tyumaada-Neft Oil Company Project characteristics Project aim: production and selling of oil and natural gas; discovery of

new oil and gas fields and their further development.The site is evaluated as a very promising territory in terms of oil and gas bearing.The site area is 3,309.0 sq.km. Carbohydrate resources of category D2

within the site amount to: oil (extractable) – 18.5 m t, gas – 9.2 b cub.m. The annual production volume averages to 1.2 m t for oil and 1.0 b cub.m for gas. The reserves density on the site makes 10-30 ths t of reference carbohydrates per sq. km.The following works are being done on the site:- evaluation of the current background level on the territory;- program on monitoring of the natural environment and subsurface resources condition;- program on prospecting and evaluation works for the period 2010 – 2015;- project on seismic survey works.In accordance with the License Agreement, the following works are to be done within the next 5 years:- seismic survey works МОГТ-2D, at least 1,600 running km;- construction of at least three prospecting holes.The project includes creation of the production well fund; development of the field for production; creation of infrastructure for oil and gas selling.

Volume of investment RUR 27,300 m in 2011 prices ($931.74 m)Infrastructure available The largest settlement within the site territory – town of Olyokminsk,

the region's center, with population of 13 thousand people. There is a river port and airport in the town. The major transport way is the Lena River. The distance from the site's northern border to pipelines is: settlement of Tas-Yurekh-town of Mirny – 390 km; Kysyl Syr-Yakutsk – 400 km. Major ESPO oil pipeline goes through the site’s central zone. Gas pipeline Chayanda-Khabarovsk-Vladivostok will go in one corridor with ESPO. HVL Suntar-Olyokminsk (HVL-220 kV Suntar-Olyokminsk-OPS-14 for centralized power supply to Olyokminsk and OPS-14 od ESPO system) goes along the site’s central part. The distance to Berkakit – Tommot – Yakutsk (Nizhny Bestyakh) railroad is 340 km. In October-April, transporting of cargo is done by winter motorways. The road along the ESPO system is operated all the year round.HVL-220 Chernyshevsky-Mirny-Lensk-Peledui is under construction. Construction finishes in 2014.

Infrastructure required Construction of an industrial terminal substation in the town of Olyokminsk.

Cost of project RUR 27,300 m

Implementation period Gas pool – 7 years

Oil pool – 15 years

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IRR Estimated at 20-22 % (to be adjusted by the feasibility report results)

NPV -

Payback period -

Markets 1. Domestic market for needs of the housing and communal service sector in the region and neighboring areas.2. Delivery of oil to the ESPO pipeline and its further transportation to the Russian Far East and Asian Pacific countries.3. Delivery of natural gas into the trunk pipeline Yakutsk – Khabarovsk and its further transportation to the Russian Far East and Asian Pacific countries.

Investor's involvement 1. Partnership as a strategic partner with a share in charter capital.2. Project financing.3. Establishment of long-term of syndicated loans.

Project detailedness Seismic survey has covered 0.14 running km/sq.km of the site. Two deep holes have been drilled. Being developed: - research report “Environmental study of Mukhtinsky licensed site” by the Center for fauna assessment and cadastre under the Northern Forum Academy non-profit partnership;- monitoring of the environment and subsurface resources condition at Mukhtinsky licensed site by the Center for fauna assessment and cadastre under the Northern Forum Academy non-profit partnership;- prospecting and assessment works for OAO Tuymaada-Neft Oil Company on Mukhtinsky licensed site by Inno-Tech Research Institution;- seismic prospecting works МОГТ-2Д at Mukhtinsky licensed site by OAO Yakutskgeophisica;- feasibility study of the project by OOO NIOKR-Service;- audit of oil and gas reserves under international standards by the International Audit Company;- draft project on prospecting holes drilling by OAO TomskNIPIneft.

CEO of an organization implementing the project

Stepan Mikhailovich CHEPALOV General Director, OAO Tyumaada-Neft Oil Company

Contacts Alexander Innokentievich MATVEEV,Deputy General Director on Gas and Oil ProjectsTel. +7 (4112) 43-35-22 Innokenty Nikolaevich FADEEV,Chief Geologistcell # +7-914-2-710-861 е-mail: [email protected]

9. Project name Construction of Yakutsk gas processing and gas-chemical complex (business idea)

Location Lensky region, Sakha Republic (Yakutia)Project initiator Government of the Sakha Republic (Yakutia), OAO Southern Yakutia

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Development CorporationProject characteristics Launching of gas processing enterprises producing synthetic

hydrocarbon products. Capital investment for construction of the gas processing and gas chemical complex are to cover costs of purchasing gas processing equipment, helium liquefaction, ethylene processing, light hydrocarbon wide fractions processing, construction of underground helium storage, stationary installations for liquid helium storage, compressor stations for pumping helium into storage and methane feed from the complex into the trunk.Annual marketable products production volume:methane – 16.9 bn cub.m., helium – 11.6 mn l, polypropylene – 330.0 ths tons, butane – 200.0 ths tons, stable gasoline (fraction С5+) – 110.1 ths tons, low density polyethylene – 295.1 ths tons, high density polyethylene – 177.1 ths tons, low density linear polyethylene – 295.1 ths tons.

Volume of investment RUR 35150 m ($ 1237,7 million) (reviewed by “Justification of investments into development of Chayanda field, gas transportation and processing”, to be complete by July 2011).

Infrastructure available At Talakan field (in immediate vicinity to Chayanda GCF) there is a gas turbine station owned by OAO Surgutneftegaz. It is possible to use its facilities for power supply of Chayanda GCF facilties.From river berths in settlements of Vitim and Peledui there is a concrete motorway to Talakan GCF (which is in immediate vicinity to Chayanda field), owned by OAO Surgutneftegaz.Route of “Chayanda-Khabarovsk-Vladivostok” main gas pipeline.“Chayanda - Lensk – Olyokmonsk – Aldan – Berkakit – Tynda – Skovorodino – Blagoveschensk – Khabarovsk - Vladivostok” (along ESPO). Electrical power is supplied to Lensk region by two HVL-110 kV Mirny-Lensk. Developed deposits of widespread mineral resources (pits) are available, as well as HVL-220 kV “Suntar-Olyokminsk” and HVL-220 kV Neryungri Regional Power Station – Nizhny Kuranakh – Tommot – Maya – ESPO service drives. Under construction are HVL 220 kV “Chernyshevsky – Mirny – Lensk – Peledui (double circuit)” and VILYUI federal motorway on route Mirny – Lensk – Peledui – Vitim – Nepa – Ust-Kut.

Infrastructure required Construction of railway Lena station – Nepa – Vitim – Lensk is needed.Construction of power and transport infrastructure:

Cost of project RUR 35150 mImplementation period Updated

IRR 23.10%NPV RUR 24 050 m

Payback period 10 yearsMarkets Responding to growing demand for polymer products in Russia,

entering high-capacity polyethylene market on the US Pacific coast and rapidly growing East and South-East Asian markets, helium exports to

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the Asian-Pacific countires. Investor's involvement 1. Partnership as a strategic partner with a share in charter capital.

2. Project financing.3. Establishment of long-term of syndicated loans.

Project detailedness A part of Integrated Development of Southern Yakutia project; feasibility report available. “Justification of investments into development of Chayanda field, gas transportation and processing” (to be complete in III quarter of 2011) being worked out.

CEO of an organization implementing the project

Mikhail Lvovich BRUK,General Director, OAO “Southern Yakutia Development Corporation”(SYDC)

Contacts OAO SYDC, 127473, Russia, Moscow, Seleznevskaya Str., 11бTel. +7 (495) 232-42-44, fax +7 (495) 232-95-13e-mail: [email protected] http://www.sy-corp.ru

10. Project name Construction of Aldan motor fuels plant, a part of Yakut Gas Production Center

Location Aldansky region, Sakha Republic (Yakutia)Project initiator Government of the Sakha Republic (Yakutia), OAO Southern Yakutia

Development CorporationProject characteristics The motor fuel plant in the town of Aldan would supply Southern

Yakutia with motor fuels, and given completion of railway Tommot – Yakutsk in 2012 – central regions of the Sakha Republic (Yakutia) as well.The plant’s production breaks down as follows: winter diesel fuel — 368.2 ths t/year; gasoline with octane number 80 — 144.2 ths t/year; gasoline with octane number 91 — 51.6 ths t/year.Oil products will be transported to consumers by motor and railway transport all the year round.

Volume of investment RUR 16 570 million (USD 583,5 million) (reviewed by “Justification of investments into development of Chayanda field, gas transportation and processing” being done by OAO Gazprom, to be complete in III quarter 2011).

Infrastructure available Developed deposits of common minerals (mines); HVL 220 kV Neryungri Regional Power Station – Nizhny Kuranakh – Tommot – Maya; roads along the ESPO system; railroad.

Infrastructure required Not requiredCost of project RUR 16 570 m

Implementation period Not availableIRR 27.50%NPV RUR 12 226 m

Payback period 8.3 yearsMarkets Southern and central regions of the Sakha Republic (Yakutia): transport

companies and mining enterprises; electric power generation and agriculture.

Investor's involvement Investors' own fundsProject detailedness A part of Integrated Development of Southern Yakutia project;

feasibility report available. “Justification of investments into development of Chayanda field, gas

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transportation and processing” (to be complete by July 2011) being worked out.

CEO of an organization implementing the project

Mikhail Lvovich BRUK, General Director, OAO Southern Yakutia Development Corporation (SYDC)

Contacts OAO SYDC, 127473, Russia, Moscow, Seleznevskaya Str., 11бTel. +7 (495) 232-42-44, fax +7 (495) 232-95-13e-mail: [email protected] http://www.sy-corp.ru

11. Project name Gas processing plant using GTL technology of converting gas into liquid state

Location YakutskProject initiator OAO Yakut Fuel-Energy Company (OAO YaTEK)

Project characteristics A plant processing natural gas into motor fuels using GTL technology

Volume of investment RUR 10,786 m in 2011 prices (to be adjucted by the results of the feasibility study) (USD 428,3 m)

Infrastructure available Motorway (asphalt-concrete surface, all-the-year-round); trunk gas pipeline. “Berkakit-Tommot-Yakutsk” is under consruction.

Infrastructure required Tank farm; electric power supply; river terminal. Cost of project RUR 12 164,7 m in 2011 prices (to be adjusted by the results of the

feasibility study)Implementation period 2012-2014

IRR Will be identified by by the results of the feasibility study NPV Will be identified by by the results of the feasibility study

Payback period Will be identified by by the results of the feasibility studyMarkets Cenytral region of the Sakha Republic (Yakutia), Far-Eastern Federal

District Investor's involvement 100% investor involvement

Project detailedness The project is now collecting the initial data, feasibilyt study is being conducted, the technology of natural gas processing together with Haldor Topse company experts is selected.

CEO of an organization implementing the project

Igor Leonidovich DEMIDOV,General Director

Contacts 677000, Yakutsk, Khalturina Str., д. 4/1Tel. +7 (4112) 22-39-11 e-mail: [email protected]://www.yatec.ru

12. Project name Establishment of a gas-chemical complex (GCC) in the Central region of the Sakha Republic (Yakutia) (business idea)

Location Central region of the Sakha Republic (Yakutia)Project initiator Sakhatransneftegas OAO

Project characteristics Gas-chemical complex of the Sakha Republic (Yakutia) includes:1. Construction and operation of a pilot industrial installation with an annual output of 3.5 thousand tons of methanol and 1.5 tons of oil products per year;2. Establishment of a gas-chemical complex with an annual output of 610 thousand tons of oil products, 450 thousand tons of methanol (with an expansion to 1.5 million tons), and 200 thousand tons of ammonia, to be commissioned in 2012 to 2016 period.

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Volume of investment RUR 8,000 million in 2011 prices for the first stage – first starting complex (450 thousand tons of methanol a year) (USD 281,7 million).

Infrastructure available Central Yakutia (3200 km tariff distance from Nakhodka port) is not only located more conveniently in relation to Asian markets from the geographic point of view than Irkutsk Oblast (4200 km) and Krasnoyarsk Krai (5300 km), but also has all the necessary infrastructure conditions for the implementation of such a project:1. Two gas main pipelines along the whole length, an additional pipeline along a significant part, with the last part of the third pipeline in the final construction stage. Construction is done at the expense of the republican budget within the frames of gas supply program with an additional investment from the federal budget. Completion date: 2013. After the completion the transport capacity will reach 4.5 billion cubic meters a year.2. Construction of a railroad “Berkakit-Tommot-Yakutsk”.3. Methanol terminal in Nakhodka is operational with an annual transshipment capacity of over 1.3 million tons of oil products and methanol.The GCC project in Central Yakutia uses the existing infrastructure and is based on the ready resource base.

Infrastructure required Infrastructure required at the project implementation location, including:- gas main pipeline with a capacity of 1.3 billion cubic meters a year

and a working pressure of no less than 1.6 MPa;- 31 MW (first stage – first starting complex) and about 160 MW when

fully developed.Cost of project First stage – first starting complex (450 thousand tons of methanol a

year) – RUR 8,000 mImplementation period Construction – till 2017.

Production – starting in 2013.IRR 18.9%NPV RUR 11 222 m

Payback period 6.54 years.Markets Methanol:

- Internal market / gas extraction industries in Eastern Siberia and the Far East;

- Export into the Asian Pacific region countries.Synthetic liquid fuels:- Internal market / Sakha Republic (Yakutia).

Investor's involvement By agreement with an investor.Project detailedness The GCC Establishment in the Central region of the Sakha Republic

(Yakutia) project is included in the Scheme of integrated development of labor forces, transport and power industry in the Sakha Republic (Yakutia) till the year 2020. The project was reviewed at the session of the Committee on the Issues of the North and the Far East of the State Duma of the Federal Assembly of the Russian Federation, Minutes No. 31 of April 9, 2009.The project is included in the list of the priority projects of the Russian Ministy of Regional Development. The project was reviewed at the session of the Commission on Natural

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Monopolies of the Federation Council of the Federal Assembly of the Russian Federation. Resolution No. 8-1 of May 26, 2009.Minutes No. 10 of the Council on Science and Technical Policy under the President of the Sakha Republic (Yakutia) of April 12, 2007.- readiness level of project documentation (list of all project

documentation is available), including the availability of necessary expert assessments of the project required by the Russian legislation (tax, legal, environmental, technical-economic etc.)

Declaration (application) on intent to invest into the establishment of a gas-chemical complex in Sakha Republic (Yakutia) (annual capacity: 450 thousand tons of methanol, 400 thousand tons of synthetic liquid fuels, 200 thousand tons of ammonia).Expert assessment of the Institute of Regional Economy of the North of 2008. Resolution No. 37 on reserving a land allotment for the project, Megino-Kangalassky Inspection of Nature Protection.Project documentation on Project S-01759:- preliminary principal technological schematics;- initial data for the project;- preliminary equipment list.Bankable feasibility study documentation has been developed.For the first time in Russia a technical-economic justification of GTL product production has been done with the participation of a foreign licensor.- the list of previously completed and currently realized activities for

the implementation of the project.Methanol production project is being developed;Land documents are being prepared;Interaction with potential investors and attraction of investments are being organized.

CEO of an organization implementing the project

Sakhatransneftegas OAO Director-GeneralIvan Konstantinovich MAKAROV

Contacts Yakutsk, Kirova, 18 str., “B” blocSakhatransneftegas OAO Deputy Director-GeneralAlexander Vasilievich GogolevPhone/fax: +7 (4112) 42-48-44E-mail: [email protected]

13. Project name Supplying gas to settlements of the Sakha Republic (Yakutia)Location Sakha Republic (Yakutia)

Project initiator Ministry of Economy and Industrial Policy of the Sakha Republic (Yakutia).

Project characteristics Supplying natural gas to Verkhnevilyuysk, Vilyuysk, Kobyaysk, Namsky, Khangalassky, Gorny, Megino-Kangalassky, Churapcha, and Lensk regions, Yakutsk City and its suburbs.

Volume of investment RUR 5 633,9 m ($ 198,4 million)Infrastructure available The project has the necessary engineering and transport infrastructure.Infrastructure required Not required.

Cost of project RUR 5 633,9 m (in present prices).Implementation period 2012-2016

IRR -NPV -

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Payback period -Markets Verkhnevilyuysk, Vilyuysk, Kobyaysky, Namsky, Khangalassky,

Gorny, Megino-Kangalassky, Churapcha, and Lensk regions, Yakutsk City and its suburbs.

Investor's involvement - Implementation os public-private partnership principles - 100% budget funds (federal budget and state budget of the

Sakha Republic (Yakutia))Project detailedness Project documentation and estimate is available for the individual

projects.CEO of an organization

implementing the projectMinister of Economy and Industrial Policy of the Sakha Republic (Yakutia)Mikhail Anatolievich OSIPOV

Contacts Sakha Republic (Yakutia), Yakutsk, Lenina pr., 28Phone: +7 (4112) 42-35-77 Department of Oil and Gas Complex and Coal Industry Development

14. Project name Gas-main pipeline to Berdigestyakh settlement and branches to Byas-Kyel, Kyurelyakh, Asyma, Dikimdya settlements of Gorny region

Location Gorny region, Sakha Republic (Yakutia)Project initiator Ministry of Economy and Industrial Policy of the Sakha Republic

(Yakutia).Project characteristics Supplying natural gas to settlements in Gorny region of the Sakha

Republic (Yakutia). The total length of the gas pipeline is 179.4 km. 5 starting complexes:First: 0 to 70 km, including a branch (0.68) and gas distributing station in Byas-Kyel settlement (completed);Second: 70 to 97.2 km, including a branch (1.86 km) and gas distributing station in Kyurelyakh settlement (completed);Third: 97.2 to 123.8 km, including a branch (1.07 km) and gas distributing station in Asyma settlement;Fourth: 123.8 to 155.0 km, including a branch (1.99 km) and gas distributing station in Berdigestyakh settlement;Fifth: 155.0 to 179.4 km, including a branch (0.07 km) and gas distributing station in Dikimdya and Maay settlements.

Volume of investment RUR 1 256,6 m ($44,2 million).Infrastructure available The project has the necessary engineering and transport infrastructure.Infrastructure required Not required.

Cost of project RUR 1 840,8 m (in present prices)

Implementation period 2006-2016IRR -NPV -

Payback period -Markets Gorny region of the Sakha Republic (Yakutia)

Investor's involvement - Implementation os public-private partnership principles - 100% budget funds (federal budget and state budget of the

Sakha Republic (Yakutia))Project detailedness Project documentation and estimate is available.

Positive assessment of the State Expertise of Russia No. 032-07/ГГЭ 3150/02 of January 31, 2007.

CEO of an organization Minister of Economy and Industrial Policy of the Sakha Republic

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implementing the project (Yakutia)Mikhail Anatolievich OSIPOV

Contacts Sakha Republic (Yakutia), Yakutsk, Lenina pr., 28Phone: +7 (4112) 42-03-10 (reception).

15. Project name Gas-main pipeline Maya – Tyungyulyu – BorogontsyLocation Sakha Republic (Yakutia)

Project initiator Ministry of Economy and Industrial Policy of the Sakha Republic (Yakutia).

Project characteristics Creating conditions for the sustainable growth and social and economic development of rural settlements, supplying natural gas to 8 settlements of Megino-Kangalassky and Ust-Aldan regions. The total length with all the branches is 169.8 km (the length of the main pipeline is 146.1 km, branches – 23.7 km). The project includes two starting complexes: first – 0 to 62.05 km (to Tyungyulyu settlement, completed); second – 62.05 to 146.1 km (to Borogontsy settlement).Capacity: 277,5 million m³/year

Volume of investment RUR 1 886,3 million (USD 66,4 million)Infrastructure available The project has the necessary engineering and transport infrastructure.Infrastructure required Not required.

Cost of project RUR 2 657 m (in present prices).Implementation period 2009-2018

IRR -NPV -

Payback period -Markets Megino-Kangalassky and Ust-Aldansky regions of the Sakha Republic

(Yakutia)Investor's involvement 100% budget funds (federal budget and state budget of the Sakha

Republic (Yakutia))Project detailedness Project documentation and estimate is available.

Positive assessment of the Khabarovsk Branch of the State Expertise of Russia No. 176-09/ХГЭ-0323/02 of August 12, 2009 (positive assessment for the technical part of the project).

CEO of an organization implementing the project

Minister of Economy and Industrial Policy of the Sakha Republic (Yakutia)Mikhail Anatolievich OSIPOV

Contacts Sakha Republic (Yakutia), Yakutsk, Lenina pr., 28Phone: +7 (4112) 42-35-77 Department of Oil and Gas Complex and Coal Industry Development

16. Project name Gas-main pipeline Maya – Tabaga – Churapcha – Ytyk-KyelLocation Sakha Republic (Yakutia)

Project initiator Ministry of Economy and Industrial Policy of the Sakha Republic (Yakutia).

Project characteristics Supplying natural gas to settlements in Megino-Kangalassky, Churapcha, Tatta regions (a total of 14 settlements). The total length of the gas pipeline with branches is 221.1 km. The project provides for the construction of five starting complexes:

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First: 0 to 36.7 km (to Tabaga settlement, completed);Second: 36.7 to 104.8 km (to Urun-Kyel settlement);Third: 104.8 to 139.9 km (to Churapcha settlement);Fourth: 139.9 to 215.94 km (to Ytyk-Kyel settlement);Fifth: automated system of managing the technological processes of gas transportation, radio relay lines of communication, electrical and chemical protection.

Volume of investment RUR 1 083,4 mInfrastructure available The project has the necessary engineering and transport infrastructure.Infrastructure required Not required.

Cost of project RUR 4 571,2 m (in present prices).Implementation period 2008-2015

IRR -NPV -

Payback period -Markets Megino-Kangalassky, Churapcha, Tatta regions of the Sakha Republic

(Yakutia)Investor's involvement - Implementation os public-private partnership principles

- 100% budget funds (federal budget and state budget of the Sakha Republic (Yakutia))

Project detailedness Project documentation and estimate is available.Positive assessment of the Khabarovsk Branch of the State Expertise of Russia No. 176-09/ХГЭ-0323/02 of August 12, 2009 (for the technical part).

CEO of an organization implementing the project

Minister of Economy and Industrial Policy of the Sakha Republic (Yakutia)Mikhail Anatolievich OSIPOV

Contacts Sakha Republic (Yakutia), Yakutsk, Lenina pr., 28Phone: +7 (4112) 42-35-77 Department of Oil and Gas Complex and Coal Industry Development

17. Project name Gas-main pipeline Khaptagay – Kysyl-Yuryuya with branches to the settlements of Megino-Kangalassky and Khangalassky regions of the Sakha Republic (Yakutia)

Location Sakha Republic (Yakutia)Project initiator Ministry of Economy and Industrial Policy of the Sakha Republic

(Yakutia).Project characteristics Supplying natural gas to settlements in Megino-Kangalassky and

Khangalassky regions of the Sakha Republic (Yakutia). The total length of the gas pipeline with branches is 78.17 km. Capacity: 111.0 million cubic meters of gas a year. The pipeline is divided into four parts:First: gas-main pipeline Khaptagay – Kysyl-Yuryuya with a diameter of 150 mm (66.9 km);Second: Pipeline – branch to Rossoloda settlement with a diameter of 100 mm (4.1 km);Third: Pipeline – branch to Tiit-Ebe settlement with a diameter of 100 mm (3.97 km);Fourth: Pipeline – branch to Kerdem settlement with a diameter of 100 mm (3.2 km).

Volume of investment RUR 755,5 million ($ 26,6 m).

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Infrastructure available The project has the necessary engineering and transport infrastructure.Infrastructure required Not required.

Cost of project RUR 755,5 m (in present prices).Implementation period 2012-2016

IRR -NPV -

Payback period -Markets Megino-Kangalassky and Khangalassky regions of the Sakha Republic

(Yakutia)

Investor's involvement - Implementation os public-private partnership principles - 100% budget funds (federal budget and state budget of the

Sakha Republic (Yakutia))Project detailedness Project documentation and estimate is available.

Positive assessment of the State Expertise of Russia No. 318-10/ХГЭ-0991/02 of December 12, 2010 (positive assessment is available only for the project part).

CEO of an organization implementing the project

Minister of Economy and Industrial Policy of the Sakha Republic (Yakutia)Mikhail Anatolievich OSIPOV

Contacts Sakha Republic (Yakutia), Yakutsk, Lenina pr., 28Phone: +7 (4112) 42-35-77 Department of Oil and Gas Complex and Coal Industry Development

18. Project name Gas-main pipeline Gas Processing Facility of Talakan Oil and Gas Condensate Field – Vitim of Lensk region of the Sakha Republic (Yakutia)

Location Sakha Republic (Yakutia)Project initiator Ministry of Economy and Industrial Policy of the Sakha Republic

(Yakutia).Project characteristics Supplying gas to settlements Vitim and Peledui of Lensk region. The

total length of the gas-main pipeline is 112 km.Volume of investment RUR 1 000 m ($ 35,2 m).Infrastructure available The project has the necessary engineering and transport infrastructure.Infrastructure required Not required.

Cost of project RUR 1 249,3 m (in present prices).Implementation period 2013-2015

IRR -NPV -

Payback period -Markets Lensk region of the Sakha Republic (Yakutia)

Investor's involvement - Implementation os public-private partnership principles - 100% budget funds (federal budget and state budget of the

Sakha Republic (Yakutia))Project detailedness Project documentation and estimate is available.

Assessment by the State Expertise of Russia is planned in 2011.CEO of an organization

implementing the projectMinister of Economy and Industrial Policy of the Sakha Republic (Yakutia)Mikhail Anatolievich OSIPOV

Contacts Sakha Republic (Yakutia), Yakutsk, Lenina pr., 28

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Phone: +7 (4112) 42-35-77 Department of Oil and Gas Complex and Coal Industry Development

Mining Industry

19. Project name Construction of Denisovskaya mines (№1, №2) and a coal benefication plant

Location Neryunrginsky region, Sakha Republic (Yakutia)Project initiator OOO Kolmar (OAO Neryungriugol)

Project characteristics Coal production and selling. Construction of Denisovskaya and Denisovskaya-2 mines; Denisovskaya benefication plant.Denisovskaya mine with capacity up to 2.5 m tons.

Volume of investment RUR 6500 m (in 2010 prices) ($229 m).

Infrastructure available Railway and motorway, airport in the town of Neryungri.The deposit is located 20 km north-east of the town of Neryungri.Electric power is supplied by Neryungri hydropower station; 110 kV high-voltage transmission line runs through the eastern part of the site.

Infrastructure required Not requiredCost of project Current investments into construction – RUR 4500 m.

Implementation period No informationIRR No informationNPV No information

Payback period About 20 years, with the project to be complete in 2031.Markets Selling beyond the republic (Russian regions, Asian Pacific countries)

Investor's involvement In the form of bank crediting or participation in shareholder capital (USD 216,67 m)

Project detailedness Denisovskaya-1 mine has been put into commercial operation with annual production volume at 0.5 m t, the second stage's design is completing. The construction site for the benefication plant is ready.

CEO of an organization implementing the project

Igor Ivanovich LUTSKOV,General Director, OOO Kolmar

Contacts 121108, Moscow, Ivana Franko Str., 8Tel. +7 (495) 662-39-90е-mail: [email protected]://www.kolmar.ru/nerungri.html

20. Project name Construction of Inaglinsky coal complexLocation Neryunrginsky region, Sakha Republic (Yakutia)

Project initiator ZAO «Yakut coals – new technologies» (OOO “Kolmar”) A part of Integrated Development of Southern Yakutia project. Initiator - ОАО Southern Yakutia Development Corporation.

Project characteristics Creation of Inaglinsky coal complex with an industrial mine, coal production capacity 2.75 m t/year, and a benefication plant able to process 3 m t/year with the yield at over 2 m tons of cocking concentrate.

Volume of invstments RUR 10500 m in 2011prices ($369,7 m)Infrastructure available There is Amur-Yakutsk mainline railroad (AyaM), LENA federal road,

railway, airport.

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The key advantage of the project is availability of developed infrastructure, including a dead-end railway track owned by OOO JV Erel, a participant of OOO Kolmar Holding. The track is connected to the public railway system owned by OAO JSC Railways of Yakutia (OAO Russian Railways).

Infrastructure required A railway line from Chulbas station – Inaglinsky coal complex; electric power supply to Inaglinsky CC, with a 110 kV substation and 110 kV transmission line.

Cost of project RUR 10500 m ($370 m)Implementation period Project life cycle 25 years (till 2037)

IRR 26% at discount rate of 15%NPV RUR 6100 m

Payback period 6,3 yearsMarkets Internal market of the Russian Federation and Asian-Pacific countries

(Japan, Korea).Investor's involvement ООО Kolmar 100%

Project detailedness A part of Integrated Development of Southern Yakutia project. Project documentation for a mine and a benefication plant complete and approved by “Glavgosekspertisa’ (State Expertise); the construction site for surface objects ready; the plant equipment purchased fully, the mine equipment - partially; all required permits and approval received.Positive opinion of VEB Supervisory Board has been obtained with a credit of RUR 6,414 billion for construction.

CEO of an organization implementing the project

Leonid Arkadievich BERLIN (under power of attorney)Yakutian Coals – New Technologies ZAO Director-GeneralMikhail Lvovich BRUK, General Director, SYDC JSC

Contacts Yakutian Coals – New Technologies ZAO, 121108, Moscow, Ivana Franko Str., 8Tel. +7 (495) 662-39-90е-mail: [email protected]://www.kolmar.ru/nerungri.html OAO SYDC, 127473, Russia, Moscow, Seleznevskaya Str., 11бTel. +7 (495) 232-42-44, fax +7 (495) 232-95-13e-mail: [email protected] http://www.sy-corp.ru

21. Project name Construction of Elginsky coal complex within north-western section of Elginsky coal field in the Sakha Republic (Yakutia)

Location Neryungrinsky region, south-eastern part of the Sakha Republic (Yakutia), near borders with Amur Oblast and Khabarovsk Krai

Project initiator Mechel JSCProject characteristics The project assumes construction of Elginsky coal complex for mining,

processing and shipment of coal from Elga coal field with designed capacity at: Stage 1 (2013-2015) – 9,000 ths t a year;Stage 2 (2016-2018) – 18,000 ths t a year;Stage 3 (2019-2021) – 27,000 ths t a year.

Volume of investment RUR 52595.70 m in 2011prices ($1852 m)Infrastructure available The nearest settlements are:

- s. Verkhnezeisk, 320 km south of the field across the Stanovoi Range at the eastern branch of Baikal-Amur railway;

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- town of Neryungri and settlement of Chulman, 415 km west of the deposit.

42 km north of Neryungri and 7 km north of Chulman there is an airport, accepting TU-154, YK-40, AN-24 planes, MI-8 and MI-6 helicopters.The nearest power supply sources are: Neryungri Regional Power Station – 450 km directly, Zeiskaya HPS – about 500 km, 220/35/10 kV Prizeiskaya substation at BAM – about 300 km away. To supply the field with power, the Development Scheme for the United Russian Power System includes construction of HVL 220 kV Prizeiskaya – Elgaugol till 2017.The right to use forest sites is secured by lease contracts.

Infrastructure required The project includes construction of the external infrastructure:- access railway – 315 km;- electric power grid objects (two one-circuit 220 kV transmission lines Prizeiskaya – Elgaugol along the railway; Elgaugol PSA, PSB, substation);- landing strip.

Cost of project The project is under developmentImplementation period 2013-2021 гг.

IRR The project is under developmentNPV The project is under development

Payback period The project is under developmentMarkets Russia, Asian Pacific and CIS contires

Investor's involvement The project is under developmentProject detailedness At the moment in the development of coal mining complex pre-made

and survey work, a draft section of the primary mining and the railway spur track. Project first construction phase of the coal complex referred to GGE.

CEO of an organization implementing the project

Igor Valerievich KHAFIZOV,Managing Director, Yakutugol Holding Company JSC

Contacts Sakha Republic (Yakutia), Neryungri, Lenin Str., 3/1, Tel. +7 (41147) 96-125е-mail: [email protected]://www.yakutugol.ru/

22. Project name Construction of Chulmakanskaya mineLocation Neryungrinsky region of the Sakha Republic (Yakutia), Vostochny

section of Chulmakan fieldProject initiator OOO En+Ugol (Moscow),

Koran External Coal Company (People's Democratic Republic of Korea).

Project characteristics The project includes construction of Chulmakanskaya mine with capacity up to 1,000 ths tons a year and a benefication plant with capacity up to 1 .0 m tons of raw material.Balance reserves of Vostochny section of Chulmakan field are estimated at 42.77 m tons.

Volume of investment RUR 3913 m in 2011prices ($137,8 m)Infrastructure available 35 km of Neryungri, the large industrial and transport center in

Southern Yakutia, there is a railway station – cargo and passenger;

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motorways, connecting the town with other far-Eastern regions and Central Yakutia.

Infrastructure required Not requiredCost of project The project is under development

Implementation period Will be adjusted by the results of the project development (completion in Quarter III of 2011)

IRR Will be adjusted by the results of the project development (completion in Quarter III of 2011)

NPV Will be adjusted by the results of the project development (completion in Quarter III of 2011)

Payback period Will be adjusted by the results of the project development (completion in Quarter III of 2011)

Markets Selling beyond the republic (Russian Federation and Asian Pacific countries)

Investor's involvement OOO En+Ugol – 50,1%, ZAO Baltic Trade and Indsustry Company – 29,9%, Koran External Coal Company (People's Democratic Republic of Korea) – 20%.

Project detailedness At the moment, Giproshakht Institute (St. Petersburg) is developing a project on “Preparation and development of reserves at Chulmakanskaya mine by OOO Erchim-Than”. Rostechnadzor (Russian Technical Inspection) has approved amendments to the Program on open mining with the use of drill and fire technique of host rock opening. The equipment is purchased.

CEO of an organization implementing the project

Yury Vitalievich FIRYULIN,General Director, OOO Erchim-Than

Contacts 678960, Neryungri, Kravchenko Str., 14 Tel. +7 (41147) 62-154.e-mail: [email protected]

Mining Industry

23. Project name Construction of Elkonsky mining and smelting plant Location Aldansky region, Sakha Republic (Yakutia)

Project initiator OAO Atomredmetzoloto,OAO Southern Yakutia Development Corporation

Project characteristics Elkonsky mining and smelting plant includes: - five uranium mines, with ore mining capacity at 4.5 m t/year by underground mining; - a united radiometric enrichment plant or five separate enrichment

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plants, a hydrometallurgical plant with capacity at 5 ths t of uranium oxides a year; - a flotation plant for extraction of accompanying gold, silver and molybdenum components with capacity at 2,900 ths t/year; - maintenance facilities; - camps. The enterprise production will be: uranium oxide – 5,000 t, gold – 1,570 kg, silver – 17,900 kg.

Volume of investment The project cost makes RUR 87,858 m in 2011 prices ($3,093.6 m), breaking down as follows:- investors' own funds - 28%, - investors' borrowed funds - 64%,- the Investment Fund of the RF - 8%.

Infrastructure available Elkonsky horst deposits are located in Aldansky region of the Sakha Republic (Yakutia) 50 km east of the regional administrative center town of Aldan and 40 km south of the town of Tommot.There is a railway and a motorway.There is an airport in Aldan.Electric power is supplied to Aldan and Tommot via high-voltage transmission line (HVL) 220 kV Neryungrinskaya GRES (city's regional power station) – Nizhny Kuranakh; HVL 110 (220) kV Nizhny Kuranakh – Tommot; HVL 110 kV Chulman GRES – Lebediny via 110 kV substations in settlements of Tommot and Lebediny. To enhance the electric infrastructure, there is being constructed 220 kV transmission line Neryungri GRES (City Regional Power Station) – Nizhny Kuranakh – Tommot – Maya (with NGRES – Nizhny Kuranakh 2 leg complete in 2010) to be complete in 2013; power is supplied from Neryungri GRES.

Infrastructure required Railway Tommot station – Elkonsky MSP;Motorway Tommot – Elkonsky MSP;

Cost of project Till 2016, project life cycle over 40 yearsImplementation period RUR 90,110 m

IRR 11.1%NPV RUR 10,490 m

Payback period 31.6 yearsMarkets In near future Russia is to implement the Program on nuclear power

development. One of the program’s tasks is to launch nuclear reactors with installed capacity up to 4gW. These reactors make potential market for the plant production.

Investor's involvement OAO Atomredmetzoloto 100 %

Project detailedness A part of Integrated Development of Southern Yakutia project. Design of project estimates are financed from the Russian Federation Investment Fund. The General designer – OAO VNIPIPT (Vniipromtechnologii) is working on the design in accordance with contract # 0190 of 15 Dec 2009 with the Client (OAO EMSP-Project).

1. Geological and geophysical survey of the mine and ore processing facility sites complete;

2. Basic technical solutions on the mining and ore processing facilities, as well as some infrastructure objects elaborated;

3. Basic technical solutions on the ore processing and mining

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facilities, as well as the sulfuric acid plant elaborated.At the moment, most of exploration activities stipulated by license agreements are complete, the reserves have significantly increased.In 2010, there were drilled 94.669 ths running meters of exploration holes. Also, in the frame of pre-feasibility study, there was evaluated the raw material base of five Southern Elkon uranium-ore area in accordance with JORC international code. After review of the project conditions feasibility study at the RF State Committee on Reserbes in 2011, ARMZ Uranium holding is going to bring the license agreement terms in compliance with the project documents. Designing of Elkonsly MSP and the state expertise are expected in 2012.

CEO of an organization implementing the project

Oleg Vladimirovich VARVARA, General Director, ZAO Elkonsky MSP (established in 2007 for development of Elkonsky uranium-ore area, with 100% of shares owned by OAO Atomredmetzoloto)

Contacts Uranium Holding ARMZ (OAO AtomRedMetZoloto)109004, Moscow, B. Drovyanoy per., 22Tel. +7 (495) 508-88-08, fax +7 (495) 508-88-10е-mail: [email protected]://www.armz.ru/companies/newcompany/elkon/ZAO Elkonsky MSP678955, Tommot, Ukulanskaya, 7109004, Moscow, Zemlyanoy Val Str., 75Tel. +7 (495) 644-35-36, fax +7 (495) 644-35-38http://www.elkon.armz.ru OAO SYDC, 127473, Russia, Moscow, Seleznevskaya Str., 11бTel. +7 (495) 232-42-44, fax +7 (495) 232-95-13e-mail: [email protected] http://www.sy-corp.ru

24. Project name Development of iron-ore deposits in Southern Yakutia (Tayozhnoe, Desovskoe, Tarynakhskoe and Gorkitskoe deposits)

Location Neryungrinsky region of the Sakha Republic (Yakutia) (Tayozhnoe and Desovskoe deposits), Olyokminsky region of the Sakha Republic (Yakutia) (Tarynakhskoe and Gorkitskoe deposits)

Project initiator OAO MSP TimirОАО Southern Yakutia Development Corporation

Project characteristics Tayozhny plant project capacity makes 4.1 m t of concentrate a year with iron concentration at 67.7% basing on Tayozhnoe and Desovskoe deposits with mining capacity of 20.1 m tons of ore a year.Tayozhnoe deposit of iron ores is the most prepared for industrial development. It is characterized by optimum technical and economic parameters. Upper reserves of Tayozhnoe deposit down to 600 m can be extracted in one open cast mine. Open pit reserves are estimated at 320 m t with iron concentration at 39.4. Total capacity – 9 m t of raw ore a year. Ore will be enriched through two-stage magnet separation with subsequent flotation, which ensures production of iron-ore concentrate with fixed sulphur concentration.

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Tarynakhsky mining and processing plant has capacity of 46 m t of ore and 14.6 m t of iron ore concentrate a year. The concentrate will be processing into pellets (13.5 m t a year) basing on Tarynakhskoe and Gorkitskoe deposits with capacity of 27.6 m t of ore a year. Tarynakh deposit of iron ores is considered the largest of prospected deposits in the east of Russia. The deposit will be developed by open cast mining. Simultaneously, the deposit can provide crushed stone for construction, up to 2 m cub.m. a year. The deposit ores are easily convertible; one dry and three stages of wet separation result in concentration of iron at 68.5%. The processing section of the plant, scheduled for construction in 2010-2013, will be located at the south-east end of the deposit, considering involvement of Gorkitskoe and, in perspective, Imalykskoe deposits.

Volume of investment 70% of the project costInfrastructure available Tayozhnoe deposit is located in the immediate vicinity (3-5 km) from

Berkakit-Tommot-Yakutsk railway crossing the coal area from south to north, 80-160 km north of Berkakit railway station and Southern-Yakutian coking coal field. The deposit is located 4 km from the LENA federal motorway.Desovskoe deposit is situated 120 km north of the town of Neryungri and 45 km south-west of Tayozhnoe deposit.Tayozhnoe and Desovskoe deposits are situated near two HVL 220 kV Neryungri GRES – Nizhny Kuranakh (6.6 km and 50 km, respectively). Tarynakhskoe deposit lies 203 km from 220 kV substation in the settlement of Khani.Gorkitskoe deposit is situated 250 km south of the town of Olyokminsk. Tarynakh deposit is located in the south of the Sakha Republic (Yakutia) in Olyokminsky region 250 km south of Olyokminsk and 190 km north of Khani railway station.

Infrastructure required Transport and power grid infrastructure of the plant will be constructed as part of Integrated Development of Sothern Yakutia project:Railway Tayozhnaya station – Tayozhny MPP.Railway Ikabiekan station – Tarynakhsky MMP.Electric power supply of Tayozhny MMP with 220 kV substation and HVL 220 kV.Electric power supply of Tarynakhsky MMP with 220 kV substation and HVL 220 kV.

Cost of project Tayozhny MMP – RUR 96,600 m in 2010 prices ($3,220 m); Tarynakhsky MMP – RUR 96,200 m in 2010 prices ($3,206.66 m).

Implementation period Estimated period of construction and operation of the MMPs – 38 years from the construction beginning or 30 years from the beginning of mining.

IRR Tayozhny MMP – 14.32%; Tarynakhsky MMP – 6.5%NPV Tayozhny MMP – RUR 81,400 m; Tarynakhasky MMP – RUR 10,300

m; total RUR 91,700 m.Payback period Payback of investments 17.8 years from beginning of investing or 11

years form launching.Markets The RF, Asian Pacific countries.

Investor's involvement Is being determinedProject detailedness Justification of investment – done. Exploration work have began – the

project stage.

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CEO of an organization implementing the project

Vladimir Filippovich PETROV, General Director, OAO MSP Timir

Contacts OAO MSP Timir, 678100, Neryungri, per. Geologov, 4Tel../fax +7 (4112) 45-222e-mail: [email protected], http://www.timir.ru/mestorojdeniya.htmlOAO SYDC, 127473, Russia, Moscow, Seleznevskaya Str., 11бTel. +7 (495) 232-42-44, fax +7 (495) 232-95-13e-mail: [email protected] http://www.sy-corp.ru

25. Project name Construction of Seligdar mining and chemical complexLocation Aldansky region of Sakha Republic (Yakutia).

Seligdarskoe apatite deposit is situated on the hilly banks of the Seligdar River, rising above the valley at 180-240 m, with the slopes angle at 20°-30°.

Project initiator OAO Southern Yakutia Development Corporation.A part of Integrated Development of Southern Yakutia investment project.

Project characteristics Using apatites from Seligdar deposit, the mining and processing plant )MPP) will include a mine, a processing plant to produce apatite concentrate and a chemical plant to produce complex phosphor-magnesium fertilizers. Apatite ore balance reserves – 1,228 m t of ore. The mining and processing plant will produce apatite concentrate. Capacity: 30 m t/year of ore, or 3.57 m t/year of concentrate with Р2О5

concentration at 35.5%, including marketable concentrate at 2.87 m t/year and concentrate for the chemical plant – 0.7 m t/year.The chemical plant will produce fused calcium-magnesium phosphates. Capacity – 1.2 m t/year of marketable products.In addition, the plant will use mill tailings for production of hematite concentrate (about 600 ths t) and dolomite powder (up to 10 m t). Efficient use of the mined ore requires construction of a crushed stone plant, as a part of the complex. It will process the deposit overburdens, producing marketable crushed stone of three grades (up to 12,5 m t/year) and sand (1.2 m t/year).

Volume of investment RUR 46,950 m in 2007 prices ($1,653.7 m) Infrastructure available A horizontal area of 16 ha. Such a site, suitable for a buffer-balancing

storage with railway access and constructing a station is situated at the mine's north-eastern end, 950-980 m level.The processing facility will be built on an industrial site 18 km south of Aldan, 9 km from Amur-Yakut railroad, and 8 km from a site near the mine at western and northern slopes of the elevation.

Infrastructure required Transport and power grid infrastructure of the plant will be constructed as part of Integrated Development of Sothern Yakutia project:Railway Kosarevsky – Seligdarsky MCC.HVL 220 kV, 7.5 km long with a 220 kV substation at the mine.

Cost of project RUR 46,950 mIRR 22.80%NPV RUR 15,600 m

Payback period 11.3yearsProject life cycle 50 years

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Markets Internal consumption of the apatite concentrate produced (with processing of 286 ths t of concentrate on the plant a year) and fertilizers (designed capacity – 567.5 ths t a year) will make less than 20% of the entire production.Export to the Asian Pacific countries.

Investor's involvement Public-private partnership.Investor funds are required for construction of Seligdarsky MCC and development of the apatite deposit.Transport and electric grid infrastructure will be financed form the Investment Fund of the Russian Federation.

Project detailedness A part of Integrated Development of Southern Yakutia investment project, feasibility report available. Designing works on Seligdar MCC are postponed until a managing user of Seligdar apatite deposit is determined.

CEO of an organization implementing the project

Mikhail Lvovich BRUK, General Director, OAO SYDC

Contacts OAO SYDC, 127473, Russia, Moscow, Seleznevskaya Str., 11бTel. +7 (495) 232-42-44, fax +7 (495) 232-95-13e-mail: [email protected] http://www.sy-corp.ru

26. Project name Opening-up and development of reserves of underground mines Mir, Aykhal, and Udachny

Location Mirninsky region, Sakha Republic (Yakutia)1. Mir Mine is located in Mirny region on the left bank of the middle Irelyakh River within the borders of Mirny City.2. Aykhal Mine is located in Mirny region of the Sakha Republic (Yakutia) in the basin of the upper Markha River a short distance from Aykhal settlement, which is located 395 km to the North of the regional centre Mirny and 70 km to the South-West of Udachny City.3. Udachny Mine is located in Mirny region of the Sakha Republic (Yakutia) within the existing industrial zone of an opencast mine of Udachnaya diamond pipe of Udachny ore-dressing and processing plant.

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Project initiator OAO AK ALROSA Project characteristics Mir Mine. Construction and commissioning of technological and

support installations, objects for engineering support of the surface complex, as well as construction and commissioning of horizons for the development of reserves. The mine is expected to reach the project capacity of 1,000 thousand tons in 2012.Aykhal Mine. Construction and commissioning of technological and support installations, objects for engineering support of the surface complex, as well as construction and commissioning of horizons for the development of reserves. Reaching of the full capacity of the mine is provided for by the commissioning of three starting complexes. 2012 – commissioning of the 3rd starting complex, reaching the project capacity of 500 thousand tons (commissioning of the installations of the 3rd starting complex is to be implemented stage-by-stage till 2014).Udachny Mine. Construction and commissioning of technological and support installations, objects for engineering support of the surface complex, as well as construction and commissioning of horizons for the development of reserves. The mine is expected to reach the project capacity of 4,000 thousand tons in 2016, the capacity with the commissioning of the first starting complex in 2014 – 1,650 thousand tons, 2nd starting complex in 2015 – 4,000 thousand tons.

Volume of investment Mir Mine – construction cost at a predicted price level: RUR 39,904.2 million (USD 1,361.91 million);Aykhal Mine – construction cost at a predicted price level: RUR 16,232 million (USD 553.99 million);Udachny Mine – construction cost at a predicted price level: RUR 55,296.5 million (USD 1,887.25 million).

Infrastructure available Mir Mine. Heat supply: from North-Eastern boiler house with the installation of a local unit on mine grounds. Water supply: drinking water supply of the grounds is centralized from the existing utilities and Mirny City water treatment plant (310 cubic m a day, 94.55 thousand cubic m a year), industrial water supply from industrial water utilities.Sewage: water drainage system through sewage utilities to treatment plants of Mirny City.Power supply: from 220/110 Rayonnaya kV substation. Communications: organized from ALROSA AK communication center.Natural gas supply: from gas main line extended from Mirny City automatic gas distributing station.Aykhal Mine. Heat supply: main site – centralized from the central gas boiler of Aykhal settlement.Water supply: industrial water supply from a pumping station at a water reservoir created by a dam at the River Sokhsollokh; drinking water supply – centralized from Aykhal settlement.Sewage: centralized drainage of waste through sewage utilities to treatment plants of Aykhal settlement.Power supply: from the existing main step-down substation 5 by constructing a double-circuit high-voltage line 110 kV.Communications: from ALROSA AK communications center.Natural gas supply: by constructing a gas pipeline from an automatic gas distributing station.

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Udachny Mine. Heat supply: centralized from an electric boiler of concentrating mill No. 11.Water supply: industrial water supply – through existing utilities from the Sytykan River waterworks; for drinking water supply it is planned to construct a water treatment plant on the mine grounds (250 cubic m/day).Sewage, drainage: centralized drainage of waste through sewage utilities to treatment plants in Udachny Town.Power supply: from the existing Udachnaya main step-down substation 220/110/6 kV via two independent 110 kV power lines, for distribution it is planned to construct two 110 kV substations: main step-down substation 1 with 6 transformers (25 MWA each), main step-down substation 2 with transformers (25 MWA each).Communications: from ALROSA AK communications center.

Infrastructure required The project provides for the necessary installations of industrial infrastructure, additional infrastructure is not required.

Cost of project Mir Mine – project cost at a predicted price level: RUR 48,331.2 m;Aykhal Mine – project cost at a predicted price level: RUR 18,211.5 m;Udachny Mine – project cost at a predicted price level: RUR 55,296.5 m.

Implementation period Mir Mine – 1999-2012, reaching of projected capacity in 2012, operation until 2043;Aykhal Mine – 2000-2013, reaching of projected capacity in 2012, operation until 2025;Udachny Mine – 2003-2016, reaching of projected capacity in 2016, operation until 2030.

IRR Mir Mine – 8.58%;Aykhal Mine – 1.99%;Udachny Mine – 4.34%.

NPV Mir Mine – with 4% discount rare – RUR 20,837 m;Aykhal Mine – with 3% discount rate – RUR 30,578 m (without loan), with loan RUR 1,731 m;Udachny Mine – with 4% discount rate – RUR 1,079.4 m.

Payback period Mir Mine – 11 years 11 months;Aykhal Mine – in 2029;Udachny Mine – 10 years and 2 months.

Markets Foreign and internal markets.Investor's involvement 100% participation of ALROSA Company

Project detailedness Mir Mine – approved project documentation and estimate available.Feasibility study “Estimation of efficiency of investment into the construction of underground mine Mir” in 2010. The project is being corrected, to be released in 2011.Aykhal Mine – approved project documentation and estimate available. The project is being corrected, working documentation to be released in 2011. “Estimation of efficiency of investment into the construction of underground mine Aykhal” (October 2010).Udachny Mine – approved project documentation and estimate available. Project “Udachny Mine. Opening-up and development of first stage reserves. Opening-up and development of reserves to point -320/-580 m” is being developed with project documentation to be released in 2011 (Uralgiproruda OAO, Yekaterinburg).

CEO of an organization First Vice-President, Executive Director of ALROSA Company

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implementing the project Yuri Andreevich DOYNIKOVPhone: +7 (41136) 9-01-12 (reception), Sakha Republic (Yakutia), MirnyVice-President of ALROSA CompanySergei Nikolaevich PUSHKIN

Contacts Moscow119017, 1st Kazachy pereulok, 10/12Tel: (495) 620-92-50, (495) 662-36-26Fax: (495) 411-75-15Telex: 113258 “Алмаз» RUhttp://www.alrosa.ruE-mail: [email protected]

27. Project name Kyuchus gold-ore deposit developmentLocation Ust-Yansky region, Sakha Republic (Yakutia)

Project initiator ОАО Polyus ZolotoProject characteristics Launching development of Kyuchus gold-ore deposit: construction

of an open pit mine, an ore-processing facility and, in long-term perspective, an underground mine

Volume of investment Approximately RUR 4bInfrastructure available -Infrastructure required -

Project cost Approximately RUR 4bImplementation period 2018-2020

IRR The project is being elaborated

NPV The project is being elaborated

Payback period About 6 years

Markets Foreign and internal markets of the RFInvestor’s involvement -

Project detailedness -

CEO of a company implementing the project

German Rudolfovich PIHOYA, General director, ОАО Polyus Zoloto

Contacts: ОАО Polyus Zoloto 123104 Russia, Moscow, Tverskoi bulvar, 15, block 1Tel.: +7 (495) 641 33 77Fax: +7 (495) 785-45-90e-mail: [email protected]://www.polyusgold.com

28. Project name Development of PROGNOZ silver-polymetal deposit

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Location Verkhoyansky region, Sakha Republic (Yakutia)Project initiator OOO Prognoz-serebro

Project characteristics Mining of silver, lead and zinc in open pit and underground mines

Volume of investment Approximately RUR 5.3bInfrastructure available -Infrastructure required -

Cost of project Approximately RUR 5.3bImplementation period 2018-2020

IRR The project is being elaboratedNPV The project is being elaborated

Payback period About 8 yearsMarkets Foreign and internal markets of the RF

Investor's involvement -

Project detailedness -

CEO of an organization implementing the project

Andrei Viktorovich KABANOV,General director, OOO Prognoz-serebro

Contacts OOO Prognoz-serebro123242, Russia, Moscow, Zoologocheskaya Str., 2 Tel./fax: +7 (495) 225-10-88, +7 (495) 225-10-89

Transport System

29. Project name Construction of the railway line Berkakit – Tommot - Yakutsk with a combined bridge across the Lena River near the city of Yakutsk to Yakutsk river port station (the left bank) in the Sakha Republic (Yakutia)

Location YakutskProject initiator Federal Railroad Agency, Government of the Sakha Republic (Yakutia),

Project characteristics Railway Berkakit-Tommot-Yakutsk with a combined bridge across the Lena River near the city of Yakutsk to Yakutsk river port station (left bank) in the Sakha Republic (Yakutia) will establish a large transport hub in the republic's capital – the city of Yakutsk, with a united transport network with all-the-year-round access to the all-Russian network of motor and railways. All-the-year-round access will be enjoyed by central, eastern and western regions of the republic, where 83% of the population live.The railway will have a direct impact on the republic's economy development, reduce dependence from a season by 2/3, minimize costs for the budget, enterprises and population.By the year 2020, the combined motor-railway bridge would reach capacity of 5.5m tons of cargoes and 2,000 vehicles in two directions a day.The combined bridge across the Lena River will connect existing and being built motorways – KOLYMA, VILYUI, AMGA – to Berkakit-Tommot-Yakutsk railroad, still being built, thus enabling transport of transit cargoes to Magadan Oblast, Chukotka and Krasnoyarsk Krai.“Construction of the second launching complex from Pravaya Lena

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station with a combined bridge abrocc the Lena River near the city of Yakutsk to the Lena river port station (left bank)”. Total length – 109 km, including 3.2 km of a combined motor-railway bridge across the Lena River.

Volume of investment RUR 79,985.5 m in 2007 prices ($2,816m)Infrastructure available 220 kV power transmission line NGRES – Nizhny Kuranakh, LENA

federal motorwayInfrastructure required Theer is being built 220 kV power transmisison line NGRES-Nizhny

Kuranakh-Tommot-MayaCost of project RUR 79,985.5 m

Implementation period 2010 - 2015IRR -NPV -

Payback period -Markets The united transport network with all-the-year-round access to the all-

Russian network of motor and railways will provide all-the-year-round transport access to central, eastern and western regions of the republic, where 83% of the population live. Involvement of mineral deposits into the economy.Switching of the major freight flow to the railway will reduce costs and financing of the stock. It will also provide an export opportunity for Dzhebariki-Khaia coal, greater consumption of Khangalassky coal in central Yakutia. As a result, costs for bringing goods to the republic will decrease by 30% to 70%. Given the increased freight flow, it will save up to RUR12-15b annually, thus creating new conditions for development of new competitive enterprises.

Investor's involvement State property

Project detailedness Sources of financing: Federal budget – RUR 76,985.5m; state budget of the Sakha Republic (Yakutia) – RUR300m; extra-budgetary sources – RUR 2,700.0 m.

CEO of an organization implementing the project

Gennady Petrovich PETRAKOV, General Director, Federal Railroad Agency

Contacts Moscow, Bolshaya Pochtovaya,18, building 5 Tel.: +7 (495) 788-55-70е-mail: [email protected]

30. Project name Transport and logistic center in the settlement of Nizhny Bestyakh, Sakha Republic (Yakutia)

Location Settlement of Nizhny Bestyakh, Megino-Kangalassky region, Sakha Republic (Yakutia)

Project initiator Government of the Sakha Republic (Yakutia), OAO Gossnabsbyt Yakutii

Project characteristics Establishment of the transport and logistic center is required by construction of Berkakit-Tommot-Yakutsk railway, a bridge across the Lena River, construction and reconstruciton of federal motorways LENA (Berkakit0Never), KOLYMA (Yakutsk-Khandyga-Ust-Nera-Magadan), sections of VILYUI motorway (being built M-53 BAIKAL motorway through Bratsk, Ust-Kut, Mirny to Yakutsk) and regional motorways: AMGA (Nizhny Bestyakh – Ust-Maya – Ayan), UMNAS (Yakutsk-Pokrovsk-Olyokminsk-Lensk), YANA (533th km of

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KOLYMA road – Topolinoe – Batagai – Ust-Kuiga – Deputatsky – Belaya Gora).The all-the-year-round network of key motorways will change distribution and volume of freight flows.Aim of the project – to meet the demand of the state, companies, enterprises and population in modern and quality services of storing and processing cargoes with the help of an integrated transport and logistic center.Main tasks of the center:

improved transport and logistic infrastructure;higher efficiency of commodities flow;better competitiveness of the transport system and realization of the

transit potential;guaranteed access to transport and logistic services for individuals

and companies;improved safety and sustainability of the transport system.

Volume of investment Estimated cost of construction – RUR 3,878m in 2010 prices ($136m)Infrastructure available Land plots of the total area at 80 ha are being allotted at the moment for

industrial sites.Infrastructure required Power supply, motor and railway access (included into the project)

Cost of project Estimated cost of construction – RUR 3,878mStage 1 - auxiliary sites, power supply facilities, engineering communications, office building, storehouses, with total cost of RUR2,150m;Stage 2 - storehouse with a refrigerator, container and open sites, garage, motor and railway access, with total cost of RUR1,728m.

Implementation period Starting in 2012Construction period – 2 years

IRR 14.93%NPV RUR1,281.1m

Payback period 12 yearsMarkets Freight service

Investor's involvement 100% investor

Project detailedness Investment justification and layout of the center in Nizhny Bestyakh are developed.

CEO of an organization implementing the project

Anna Ivanovna KONDRATIEVA, General Director, OAO Gossnabsbyt Yakutii

Contacts OAO Gossnabsbyt Yakutii, 677004, Russia, Yakytsk, 50 let Sovetskoi Armii Str., 53/1Tel./fax: +7 (4112) 44-98-93677904, Yakutsk, s. Magan, 40 let Pobedy Str., 1Tel.: +7 (4112) 406-404, fax +7 (4112) 406-157е-mail: [email protected]

31. Project name Eurasia – America transcontinental trunk roadLocation Yakutsk – Magadan – Whalen – Nome – Anchorage – British Columbia

Project initiator Interhemispheric Bering Strait Tunnel & Railroad Group (IBSTRG)Project characteristics Connection of continental transport networks into united global network,

creation of the international transport corridor, large0scale transit freight flow between Eurasia and America.

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Faster global economic integration and new opportunities for sustainable development of the world system.Economic exploration and joining of northern regions of Russia, USA, Canada with rich natural resources potential to the world markets.Positive impact on the international political relations.

Volume of investment $55.0-70.0 bInfrastructure available AvailableInfrastructure required Railway, tunnel under the Bering Strait and power supply infrastructure.

Cost of project $55.0-70.0bImplementation period 10-12 years

IRR Economic efficiency project will be calculated after additional researchNPV Economic efficiency project will be calculated after additional research

Payback period Economic efficiency project will be calculated after additional researchMarkets The main link of a single global rail network that provides transportation

between the continents of Eurasia and AmericaInvestor's involvement Is not determined

Project detailedness The concept developed of investment project and sketch of technical proposals

CEO of an organization implementing the project

G. Koumal – The President of IBSTRG USA

V. Razbegin – Vice President of IBSTRG, director Russian officeContacts 117997, GSP-7, Moscow, st. Vavilov, 7

Tel. (499) 135-00-04

Creating the network of key motorways

32. Project name М-56 LENA motorway from Never to YakutskLocation Aldansky region, Sakha Republic (Yakutia)

Project initiator Federal state enterprise “Interregional direction on road construction in the Russian Far East”

Project characteristics М-56 LENA motorway from Never to Yakutsk is an important element in the transport structure of Russia. In the Sakha Republic (Yakutia) it is the only all-the-year-round overland line connecting central, northern and Arctic regions of Yakutia and Magadan Oblast with the Russian Federation transport system. Construction and reconstruction of the motorway section involves several gradual stages, including engineering research and development, state expertise of the design estimates.

Volume of investment The total investment by the federal program "Development of Transport System of Russia (2010-2015)" – RUB 35074 m in 2010 prices (1169.13 m).

Infrastructure available At the moment, М-56 LENA motorway from Never to Yakutsk has technical category 4 and is 1,157 km long, with 268 km running through Amur Oblast and 889 km – in the Sakha Republic (Yakutia).

Infrastructure required Not required

Cost of project RUR 142,717.3 mImplementation period Till 2030

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Markets М-56 LENA motorway from Never to Yakutsk is enlisted as an object ensuring motor transport traffic within the all-Russian transport corridors. It is 1,157 km long and crosses territories of Amur Oblast and the Sakha Republic (Yakutia), connecting southern and central regions of Yakutia. With further construction of KOLYMA federal motorway, it will connect Magadan and Magadan Oblast with the railway system.

nvestor's involvement Federal propertyProject detailedness Design estimates; sources of financing; the Federal budget funds.

CEO of an organization implementing the project

Nail Malikovich NAZMUTDINOV, Acting Director, Federal state enterprise “Interregional direction on road construction in the Russian Far East”

Contacts 680020, Khabarovsk, Fabrichny per., 2Tel. +7 (4212) 473-950, fax +7 (4212) 473-959е-mail: [email protected]

33. Project name KOLYMA motorway – a road being built from Yakutsk to Magadan

Location Tomponskuy and Oymakonskuy regions Republic of Sakha (Yakutia)Project initiator Federal state enterprise “Interregional direction on road construction in

the Russian Far East”

Project characteristics KOLYMA federal motorway is the only road in eastern part of the Sakha Republic (Yakutia), western and central parts of Magadan Oblast, providing access to the Pacific coast. Construction and reconstruction of the motorway section involves several gradual stages, including engineering research and development, state expertise of the design estimates.

Volume of investment The total investment by the federal program "Development of Transport System of Russia (2010-2015)" - 41258 m in 2010 prices (1375.26 m).

Infrastructure available At the moment, several complicated geological conditions cannot ensure safe passability all-the-year-round. Being 2,021 km long, KOLYMA motorway continues LENA motorway Never – Yakutsk.

Infrastructure required Not requiredCost of project RUR 174171 m

Implementation period Till 2030Markets The motorway provides access to the main transport gate – a sea trade

port of Magadan, which processes the major cargo flow. Economy of the area at the other end of the motorway is based on gold and non-ferrous metals mining. Almost all transport services in all the industries are rendered by motor transport. The largest cargo flow runs through Magadan – Yakutsk – Magadan road. Therefore, “Kolyma” motorway is a part of interregional transport passage.

Investor's involvement Federal propertyProject detailedness Design estimates; sources of financing; the Federal budget funds.

CEO of an organization implementing the project

Nail Malikovich NAZMUTDINOV, Acting Director, Federal state enterprise “Interregional direction on road construction in the Russian Far East”

Contacts 680020, Khabarovsk, Fabrichny per., 2Tel. +7 (4212) 473-950, fax +7 (4212) 473-959е-mail: [email protected]

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34. Project name Construction of VILYUI public federal motorway, from M-53 BAIKAL motorway through Bratsk, Ust-Kut, Mirny to Yakutsk

Location Mirninsky region, Sakha Republic (Yakutia)Project initiator Federal state enterprise “Department of VILYUI public federal

motorway” of the Federal Road AgencyProject characteristics It is also planned to construct VILYUI motorway at Mirny – Ust-Kut

leg, technical category 3 with asphalt-concrete surface, 183 km long, to complete 8 stream crossings and to begin construction of 4 large bridges. Construction and reconstruction of the motorway section involves several gradual stages, including engineering research and development, state expertise of the design estimates.

Volume of investment The total investment by the federal program "Economic and social development in the Far East and Transbaikalia until 2013" "Development of Transport System of Russia (2010-2015)" - RUR67069 m in 2009 prices ($2116.259 m).

Infrastructure available -Infrastructure required Not required

Cost of project RUR 306,880.6 mImplementation period Till 2030

Markets VILYUI motorway is an artery of the western part of the Sakha Republic (Yakutia ans is the shortest land way to the federal motorways: LENA (Bolshoy Never – Tommot – Yakutsk), KOLYMA (Yakutsk – Magadan). Besides, it reaches the border with Irkutsk Oblast and the regional level motorway ANABAR.The motorway connects to the united all-Russian transport network and provides access to strategic deposits of mineral resources.

Investor's involvement Russian Federation, subject of the RF, industrial enterprises.

Project detailedness Design estimates; sources of financing; the Federal budget funds.CEO of an organization

implementing the projectNikolai Ivanovich ANDREEV, Director, “Department of VILYUI public federal motorway” of the Federal Road Agency

Contacts 677007, Sakha Republic (Yakutia), Yakutsk, Khabarova Str. , 21/6Tel. +7 (4112) 44-14-42е-mail: [email protected]

35. Project name Construction of Khandyga – Dzhebariki-Khaya section of Eldikan – Khandyga ALDAN motorway

Project initiator Government of the Sakha Republic (Yakutia)Location Tomponsky region, Sakha Republic (Yakutia)

Project characteristics Provision of all-the-year-round access to Dzhebariki-Khaya coal field for coal consumers. The motorway will increase coal transportation by motor vehicles to 200 ths t, including 100 ths t for consumption in Oymyakonsky region. The motorway will be 45 km long with three bridges of total length of 460 running meters, to be complete by 2013.

Volume of investment The total investment by the federal program "Economic and social development in the Far East and Transbaikalia until 2013" - RUR 4659.5 m in 2008 prices ($ 187.12 m), including:

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- Due to the Federal Budget RUR 1500 m;- The budget of the RF subject RUR 3169.5 m.

Infrastructure available The construction started in 2009. There have been built 11.2 km of motorway and 72.94 running meters of constructions at 296 km – Khandyga section. The bridge is being built across the Vostochnaya Khandyga River. The funds spent – RUR 1,228.9 m.

Infrastructure required Not required

Cost of project RUR 7,446.90 mImplementation period 2009- 2018

Markets All-the-year-round access to Dzhebariki-Khaya coal field for coal consumers. The motorway will increase coal transportation by motor vehicles to 200 ths t, including 100 ths t for consumption in Oymyakonsky region.

Investor's involvement Property of the Russian Federation's subjectProject detailedness There are design estimates; sources of financing: the Federal budget, the

state budget of the Sakha Republic (Yakutia), extra-budgetary sources. CEO of an organization

implementing the projectSemyon Viktorovich VINOKUROV, Minister of Transport, Telecommunications and Information Technologies of the Sakha Republic (Yakutia)

Contacts Ministry of Transport, Telecommunications and Information Technologies of the Sakha Republic (Yakutia) 677018, Yakutsk, Lenin Ave., 22Tel.: +7 (4112) 42-23-07, fax: 42-52-48, 42-52-36 е-mail: [email protected]://www.sakha.gov.ru/mintrans

36. Project name Construction and reconstruction of AMGA motorway sections on route Yakutsk – Amga – Ust-Maya – Eldikan – Yugoryonok – Ayan within the Sakha Republic (Yakutia)

Location Amginsky and Ust-Maisky regions of the Sakha Republic (Yakutia)Project initiator Government of the Sakha Republic (Yakutia)

Project characteristics The total length of roads in the republic to n. Yugorenok is 710 km, 37 km - with an improved type of coating of asphalt, 220 km - with a transitional type of sand and gravel IV technical category, 286 km - with solid coverage of the type of sand V-gravel technical category, 167 km - automobile winter road, 600 m - ice crossing the river Aldan and Amga. Automobile winter road subject building, located on the road with. Amga - Ust-Maya - n. Eldikan

Volume of investment The total investment "The development of transport complex of the Republic of Sakha (Yakutia) in 2009-2011 and the main trends to 2015" RUR 10688.42 m in 2011 prices ($337.17 m)

Infrastructure available Design of road construction made from 2008 to 2010. Ground breaking at the site with. Amga - Ust-Maya length of 103.5 km provided the design and estimate documentation part. Construction of the site is from 1998 (introduced by 60.0 km.)

Infrastructure required Not requiredCost of project RUR 6,161 m

Implementation period Till 2018

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Markets Provision of the all-the-year-round passability, access to the Sea of Okhotsk.

Investor's involvement Property of the Russian Federation's subjectProject detailedness There are design estimates; sources of financing: the Federal budget, the

state budget of the Sakha Republic (Yakutia), OAO Republic's Investment Company. Theer is partial design estimates for the soil gap at Amga-Ust-Maya section, 101.1 km long. Construction of this section is being done since 1998 (60 km complete). The soil gap at Ust-Maya – Eldikan section, 60 km long, has no design estimates.

CEO of an organization implementing the project

Mikhailov Yuri Petrovich General Director of public institution "Managing roads of Republic of Sakha (Yakutia)"

Contacts State institution "Managing roads of Republic of Sakha (Yakutia)"

677007 Yakutsk city Avtodojnaya str. 10|2

Tel: +7 (4112) 35-79-55, Fax: 35-73-00

е-mail: [email protected]

Air transport

37. Project name Fleet replacement of OAO Yakutia Airlines aircrafts. Purchase of Sukhoi Superjet-100

Location YakutskProject initiator ОАО Yakutia Airlines

Project characteristics Aircraft fleet replacement.Long-term financial leasing of SSJ-100 aircrafts. Two aircrafts are scheduled to be delivered in 2013.

Volume of investment The project cost is estimated at RUR 1,500 m in 2010 prices ($52.8m)Infrastructure available Technical facilities of OAO Yakutia Airlines in the city of YakutskInfrastructure required Not required

Cost of project RUR 1,500 mImplementation period Financial lease up to 15 years, life cycle 25 years

IRR 10%NPV RUR 312 m (with calculation horizon at 15 years)

Payback period 15 yearsMarkets Population and organizations, flying on Yakutia Airline planes

Investor's involvement Loan for construction of the aircrafts to be given into financial leasing

Project detailedness Business plan for operating SSJ-100 aircrafts developed.

CEO of an organization implementing the project

Ivan Alexeevich PROSTIT, General Director, OAO Yakutia Airlines

Contacts 677014, Yakutsk, Bykovskogo Str., 9Tel.(4112) 44-32-30, fax (4112) 44-30-60, e-mail: [email protected], http://www.yakutia.aero/

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38. Project name Fleet replacement of OAO Yakutia Airlines aircrafts. Purchase of An-140-110 aircrafts

Location City of YakutskProject initiator ОАО Yakutia Airlines

Project characteristics Aircraft fleet replacement.Long-term financial leasing of An-140-110 aircrafts. Two aircrafts are scheduled to be delivered in 2012, another two – in 2013.

Volume of investment The project cost is estimated at RUR 1,350 m in 2010 prices ($47.5m)Infrastructure available Technical facilities of OAO Yakutia Airlines in the city of YakutskInfrastructure required Not required

Cost of project RUR 1,350 mImplementation period Financial lease up to 15 years, life cycle 25 years

IRR 5%NPV RUR 150 m (with calculation horizon at 15 years)

Payback period 15 yearsMarkets Population and organizations, flying on Yakutia Airline planes

Investor's involvement Loan for construction of the aircrafts to be given into financial leasing

Project detailedness Business plan for operating An-140-110 aircrafts being developed.

CEO of an organization implementing the project

Ivan Alexeevich PROSTIT, General Director, OAO Yakutia Airlines

Contacts 677014, Yakutsk, Bykovskogo Str., 9Tel.(4112) 44-32-30, fax (4112) 44-30-60, e-mail: [email protected], http://www.yakutia.aero/

39. Project name Small aviation fleet replacement

Location YakutskProject initiator ОАО Polar Lines company

Project characteristics Updating old fleet to modern to more fuel-efficient aircraft (aircraft type PILATUS P-6 (DHC-3), AS 350 helicopters of type B (Bell-206B) and Mi-8 MTV) in order to improve safety, control growth rates for air transportation, quality of service for passengers on air transport

Volume of investment RUR 1807.25 m in 2010 prices (the draft State Program "Development of transport system of the Republic of Sakha (Yakutia) in 2012-2016"

Infrastructure available Aircraft maintenance base of OAO "AK" Polar Airlines "in areas of the country

Infrastructure required Not requiredCost of project RUR 1 807, 25 m

Implementation period Till 2015IRR -NPV -

Payback period -Markets Small aviation aircrafts will be used for flying between regions of the

republic, which is of great social significance, including flights to difficult of access places with low population, medical care flights, flights on commission from the Ministry of Emergency Situations and

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Forest Fires Prevention Service.

Investor's involvement Budget of the RF's subject, the company's own funds. Project detailedness At the present moment, the Russian Federation does not produce small

aircrafts certified for operation in the Far North.CEO of an organization

implementing the projectAndrei Vasilievich KORYAKIN, General Director, OAO JSC Polar Airlines

Contacts 677014, Yakutsk, Zhukovskogo Str., 10Tel. +7 (4112) 44-31-28, fax +7 (4112) 44-33-39е-mail: [email protected]://www.polarair.ru/

Power Supply, Housing and Communal Sector

40. Project name Construction of Kankunskaya hydropower station Location Aldansky region, Sakha Republic (Yakutia).

Kankunskaya HPS is designed to be built on the Timpton River 200 km of the mouth.

Project initiator OAO “Yuzhno-Yakutsky GEK” (dependent subsidiary of OAO “RusHydro”). A part of Integrated development of Southern Yakutia investment project. Initiator – OAO Southern Yakutia Development Corporation.

Project characteristics Under the plan to increase electric power generation in the Sakha Republic (Yakutia) in order to ensure intensive development of productive forces in the Sakha Republic (Yakutia). Installed capacity – 1,200 MW;Average annual electric power generation – 4.9 bn kW/h;Water storage normal maximum operating level – 608.0 m;Top of dead water storage – 587.0 m;Water-surface area under NMOL – 258.8 sq.km;Total water storage capacity – 18.0 cub.km;Useful capacity – 5.0 cub.m.

Volume of investment RUR 238,563m ($8,226m), VAT included (in 2008 prices).

Infrastructure available Kankunskya HPS is located 110 km from the existing LENA federal motorway and Amur-Yakutsk railroad. There is a winter motorway connecting the power site with the LENA federal motorway and railroad near the settlement of Maly Namnyr. There are two 220-kV power transmission lines Neryungri HPS – Nizhny Kuranakh; and Kankunskaya HPS construction site will get power from there via 95-km long 220-kV transmission line.

Infrastructure required Designing and construction of transport and electric grid infrastructure is to be financed from the Investment Fund of the Russian Federation.

Cost of project RUR 238,563m Implementation period 2012-2022, life cycle over 50 years

IRR 8.3%NPV RUR 3,174 m

Availability of design estimates

In accordance with the RF Government resolution of 10 March 2009 No. 302-p, designing of the Kankunskaya HPS project documentation will be financed from the Investment Fund of the RF: 2009 – RUR

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2,166.6 m, 2010 – RUR 842.6 m. Payback period 12 years (simple payback period)

Markets Potential power consumers: Seligdar mining and chemical plant – 465 mW, Yakutsk gas processing and chemical center – 196 mW, Elkonsky mining and smelting plant – 300 mW, Tarynakh MPP – 236 mW, Tayozhny MPP – 58 mW.

Investor's involvement The project is being implemented under the Public-Private Partnership program, with private capital investments estimated at least 60%.

Project detailedness A part of Integrated Development of Southern Yakutia investment project. Designing of the project estimates is financed from the Investment Fund of the RF. In 2008 there were complete documents on “Investment feasibility study for construction of the HPS cascade on the Timpton River”. B.E. Vedeneev Research Institute has developed pre-project statement “Investment feasibility study for construction of the HPS cascade on the Timpton: Nizhne-Timptonskaya HPS, Idzhekskaya HPS or Kankunskaya HPS” No. 1008.104-1700.03 OI. There is the State Expertise positive conclusion. In 2010 OAO Lengidroproject started development of design estimates for construction of Kankunskaya HPS.

CEO of an organization implementing the project

Sergey Borisovich UGLOVSKY, Managing DirectorOAO Yuzhno-Yakutsky GEK Mikhail Lvovich BRUK, General Director, OAO Southern Yakutia Development Corporation

Contacts Moscow, 57 Profsoyuznaya Str, office 812 Dmitry Borisovich POPOV,Deputy Managing Director, OAO Yuzhno-Yakutsky GEK Tel.: (495) 739-33-56, Yakutsk, Dzerzhinsky Str., 23, office 207Tel.: +7 (4112) 49-84-15 e-mail: [email protected] http://www.yakutia.rushydro.ru/ОАО SYDC127473 Moscow, Seleznyovskaya Str., 11BTel.+7 (495) 232-42-44, fax +7 (495) 232-95-13e-mail: [email protected] http://www.sy-corp.ru

41. Project name Construction of Yakutsk State Regional Electric Power Station (YaGRES) – 2

Location YakutskProject initiator OAO JSC YAKUTSKENERGO

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Project characteristics Electric and heat power generation Electric capacity - 298 mW,Heat capacity - 240 gCal/hAnnual heat production – 1,673,200 ths kWh/yAnnual electricity production – 2,409,200 ths kWh/yWorks to be complete: - construction and connecting of communications;- construction of 2 km long gas pipeline from the gas distributing station;- construction of a building; - installation of equipment.

Volume of investment RUR 18,177 m in 2009 prices ($640m)Infrastructure available There is transport infrastructure available.Infrastructure required Construction of heat and electric power grids required.

Cost of project RUR 18,177 mImplementation period Estimated date of launching Stage 1 (170 mW): April 2015 (putting

into operation). Project life cycle – 22 years.IRR 40.30%NPV RUR 85,241 m

Payback period 5 yearsMarkets Electric power consumers – enterprises and population of the city of

Yakutsk, central Yakutia regions – Megino-Kangalassky, Churapchinsky, Ust-Maisky, Tattinsky, Tomponsky, Namsky, Gorny, and Khangalssky. In future – Berkakit-Tommot-Yakutsk railway sites. Heat consumers - enterprises and population of the city of Yakutsk.

Project detailedness Additional shares issue and becoming a Company’s shareholder

CEO of an organization implementing the project

Oleg Vladimirovich TARASOV, General Director, OAO JSC YAKUTSKENERGO

Contacts 677000, Yakutsk, Fedor Popov Str., 14Tel. +7 (4112) 21-13-50, fax +7 (4112) 21-13-55е-mail: [email protected]://www.yakutskenergo.ru/

42. Project name Construction of coal electric power station in the settlement of Khandyga and HVL-220 kV Khandyga-Nezhdaninskoe

Location Tomponsky region, Sakha Republic (Yakutia)Project initiator Government of the Sakha Republic (Yakutia)

Project characteristics Generation and transmission of electric power using the fuel from Dzhebariki-Khaya mine.Capacity – 165 mW, Production – 990 m kWh,HVL-220 kV length Khandyga–Nezhdaninskoe – 275 km.The project is aimed at electric power supply of new mining productions in eastern part of Tomponsky region, as well as compensating electric power deficit in central Yakutia. The power station will include 3 power units, consisting of a boiler with 9.8 mPa pressure and a turbine generator with capacity of 55/60 mW. Annual fuel consumption – 717 ths t.

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Volume of investment RUR 19,503.724 m in 2009 prices ($686.8m)Infrastructure available There is a mine near Dzhebariki-Khaya settlement with the same

name, its production capacity is up to 1 m t of coal a year. There is social and housing infrastructure. Transport infrastructure includes all-the-year-round road Khandyga – Dzhebariki-Khaya, 72 km and having access to the federal Yakutsk – Khandyga – Magadan motorway; in summer – river transport along the Aldan River.

Infrastructure required Not required.Cost of project RUR 19,503.724 m

Implementation period 2011 - 2016, project life cycle over 25 yearsIRR 20.50%NPV RUR 3,361.4 m

Payback period 14 years Markets Potential consumers – Verkhne-Menkechensky lead-zinc MPP,

Nazhdaninsky gold MMP, settlements Dzhebariki-Khaia, Razvilka, Tyoply Klyuch

Investor's involvement The project’s implementation requires a strategic investor.

Project detailedness Feasibility study

CEO of an organization implementing the project

Alexander Anatolievich ANTONENKO, Minister of Housing, Communal Service and Power Supply of the Sakha Republic (Yakutia)

Contacts Ministry of Housing, Communal Service and Power Supply of the Sakha Republic (Yakutia)677000, Yakutsk, Kirov Str., 13 Tel. +7 (4112) 42-28-75e-mail: [email protected]://www.sakha.gov.ru/minjkh, Nikolai Konstantinovich YEFIMOV,Head of Power Supply Department, Ministry of Housing, Communal Service and Power Supply of the Sakha Republic (Yakutia)Tel. +7 (4112) 34-27-05, fax 34-24-00e-mail: [email protected]

43. Project name Construction of heat and power plant of low capacity in the settlement of Zyryanka (external engineering communications)

Location Verkhnekolymsky region, Sakha Republic (Yakutia)Project initiator Government of the Sakha Republic (Yakutia) and Verkhnekolymsky

region municipal unitProject characteristics Supply of heat and electric power to the population. Combined

generation of heat and electric power to supply settlements of Zyryanka and Ugolnoe using local fuel instead of diesel fuel brought from outside. It is planned to construct water supply network, heat and electric power transmitting grids.

Volume of investment RUR 2,126.3 million with VAT in prices of 2010 (USD 74.9 million).Infrastructure available The plant is situated in the settlement of Zyryanka, coal to be supplied

from the settlement of Ugolnoe, which is 60 km away, by motor transport all the year around; cargoes to be shipped by water transport by the Kolyma River.

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Infrastructure required Not requiredCost of project RUR 2,126.3 m with VAT in prices of 2010.

Implementation period Project life cycle 24 years IRR -NPV -

Payback period -Markets Verkhnekolymsky region, settlement of Zyryanka and Ugolnoe

Investor's involvement Construction of a small-scale heat and power station in Zyrianka settlement is included into the Federal targeted program on Economic and Social Development of the Russian far East and Transbaikalia till 2013, which is financed form the Federal and republican budget. Sources of financing for out of site locations have not been defined.

Project detailedness Positive resolution of the State Expertise on the project documentation and estimate.

CEO of an organization implementing the project

Alexander Anatolievich ANTONENKO, Minister of Housing, Communal Service and Power Supply of the Sakha Republic (Yakutia)

Contacts Ministry of Housing, Communal Service and Power Supply of the Sakha Republic (Yakutia)677000, Yakutsk, Kirov Str., 13 Tel. +7 (4112) 42-28-75e-mail: [email protected]://www.sakha.gov.ru/minjkh, Nikolai Konstantinovich YEFIMOV,Head of Power Supply Department, Ministry of Housing, Communal Service and Power Supply of the Sakha Republic (Yakutia)Tel. +7 (4112) 34-27-05, fax 34-24-00e-mail: [email protected]

44. Project name Construction of a multi-functional power supply complex in the settlement of Yurung-Khaya

Location Anabarsky region, Sakha Republic (Yakutia)Project initiator OAO SAKHAENERGO

Project characteristics Providing customers with electric power with the use of renewable sources. The multi-functional power supply complex includes a diesel power station. Capacity 1,800 kW. Electric power generation 3.2 m kWh.Diesel fuel economy – 146 t/y. Works to be completed: designing, construction of transmission lines, construction of foundations, purchase and rigging of wind turbines and diesel power stations, electric equipment installation.

Volume of investment RUR 150.9 m in 2010 prices ($5.3m)Infrastructure available The settlement of Yurung-Khaya is situated in Anabar River mouth,

where it flows into the Arctic Ocean. Transportation – during the navigable period cargoes delivered by the Lena River, then by the sea route to Yurung-Khaya.

Infrastructure required Not required.Cost of project RUR 150.9 m

Implementation period 2013, project life cycle 25 yearsIRR 21.50%

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NPV RUR 94.974 mPayback period 10.6 years

Markets Customers in the settlement (population, housing and communal services sector, social facilities).

Investor's involvement 100% investor. Implementation of the project as a testing ground for of various types and modifications to determine potential of their wide use in cold regions, given both technical characteristics and economic parameters.

Project detailedness Business plan

CEO of an organization implementing the project

Nikolai Makarovich PARNIKOV, General Director, OAO SAKHAENERGO

Contacts 677000, Yakutsk, per. Energetikov, 2 Alexander Stepanovich YEFIMOV,Head of Alternative Energy Sources and New technologies, OAO SAKHAENERGO Tel. +7 (4112) 497508, e-mail: [email protected] , [email protected]://www.sakhaenergo.ru

45. Project name Construction and rigging of a wind power station in the settlement of Yukagir

Location Ust-Yansky region, Sakha Republic (Yakutia)Project initiator OAO SAKHAENERGO

Project characteristics Providing customers with electric power with the use of renewable power sources.Electric capacity – 50 kW,Electric power generation – 120 ths kWh.Saving diesel fuel on account of substituting it with renewable energy sources when generating power at diesel stations.Needs: purchase of equipment, construction of transmission lines, construction of foundations, rigging wind turbines and electric technical equipment.

Volume of investment RUR 8 m in 2010 prices($0.28m)Infrastructure available No.Infrastructure required It is necessary to prepare the site, connect the power transmission line.

Cost of project RUR 8 m Implementation period 2010 - 2011, project life cycle 25 years

IRR 23%NPV RUR 8.677 m

Payback period 5 yearsMarkets Consumers in the settlement of Yukagir

Investor's involvement 100% investor. Implementation of the project as a testing ground for of various types and modifications to determine potential of their wide use in cold regions, given both technical characteristics and economic parameters.

Project detailedness ZAO Research Organization NETRAEL, Moscow, has developed a survey on construction of wind power stations in the Sakha Republic (Yakutia) to supply power to settlements serviced by OAO SAKHAENERGO.

CEO of an organization Nikolai Makarovich PARNIKOV,

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implementing the project General Director, OAO SAKHAENERGO

Contacts 677000, Yakutsk, per. Energetikov, 2 Alexander Stepanovich YEFIMOV,Head of Alternative Energy Sources and New technologies, OAO SAKHAENERGO Tel. +7 (4112) 497508, e-mail: [email protected] , [email protected]://www.sakhaenergo.ru

46. Project name Construction and rigging of a wind turbine in the settlement of Ust-Olenyok

Location Bulunsky region, Sakha Republic (Yakutia)Project initiator OAO SAKHAENERGO

Project characteristics Use of renewable energy sources for generating electric power. Capacity – 50 kW. Electric power generation – 120 ths kWh/y.Saving diesel fuel through substituting it with renewable sources of electric energy generation at diesel power stations. Construction of transmission lines, construction of foundations, wind turbine rigging, electric technical equipment installation.

Volume of investment RUR 8 m in 2010 prices($0.28 m)Infrastructure available NoInfrastructure required Construction of power transmission lines, preparing the site

Cost of project RUR 8 m Implementation period 2010-2011, project life cycle 25 years

IRR 30%NPV RUR 13.424 m

Payback period 4 yearsInfrastructure available It is necessary to prepare the site, connect the power transmission line.

Markets Consumers in the settlement of Ust-Olenyok.Investor's involvement 100% investor. Implementation of the project as a testing ground for

of various types and modifications to determine potential of their wide use in cold regions, given both technical characteristics and economic parameters.

Project detailedness ZAO Research Organization NETRAEL, Moscow, has developed a survey on construction of wind power stations in the Sakha Republic (Yakutia) to supply power to settlements serviced by OAO SAKHAENERGO.

CEO of an organization implementing the project

Nikolai Makarovich PARNIKOV, General Director, OAO SAKHAENERGO

Contacts 677000, Yakutsk, per. Energetikov, 2 Alexander Stepanovich YEFIMOV,Head of Alternative Energy Sources and New technologies, OAO SAKHAENERGO Tel. +7 (4112) 497508, e-mail: [email protected] , [email protected]://www.sakhaenergo.ru

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47. Project name Switching of boiler houses in the town of Lensk to gasLocation Lensk, Sakha Republic (Yakutia)

Project initiator AK ALROSA Project characteristics Aim: reliable heat supply of the town of Lensk; implementation of

gasification program; lower cost of heat power generation.Modernization of the existing Central heat boiler house with substitution of oil with gaseous and liquid fuel. Construction of boiler houses №1,2 using gaseous fuel; switching Small boiler house №5 to gas (ALROSA); switching of the industrial boiler plant to gaseous fuel.

Volume of investment Cost of construction is estimated at RUR 506.4  m with mixed price-level ($17.8m). It will be reviewed during feasibility study development.

Infrastructure available AvailableInfrastructure required Not required

Cost of project Cost of construction, compared to analogues, is estimated at RUR 506.4 m (with mixed price-level). It will be reviewed during feasibility study development.

Implementation period Designing – starting from 2009, construction – 2009-2013.

IRRFigures to be specified during the project's feasibility studyNPV

Payback periodMarkets Heat power supply to customers in the town of Lensk (population of

38.6 ths people).Investor's involvement 100% participation of AK ALROSA investing their own funds; terms

of financing and participation of other investors will be considered during feasibility study development.

Project detailedness Feasibility study to be completed in 2011.OOO Lenskoe PTS, subsidiary of AK ALROSA, will operate the modernized fixed asserts on renting terms.

CEO of an organization implementing the project

Yury Andreevich DOINIKOVFirst Vice-president, Executive Director, JSC ALROSA (OAO)Tel. +7 (41136) 9-01-12 (reception)

Contacts Moscow119017, 1st Kazachy pereulok, 10/12Tel: (495) 620-92-50, (495) 662-36-26Fax: (495) 411-75-15Telex: 113258 “Алмаз» RUhttp://www.alrosa.ruE-mail: [email protected]

48. Project name 220 kV High-voltage line Neryungri Power Plant – Nizhny Kuranakh – Tommot – Maya with 220 kV Tommot substation and 220 kV Maya substation

Location Neryungrnsky, Aldansky, Khangalassky, Megino-Kangalassky regions of the Sakha Republic (Yakutia)

Project initiator Government of the Sakha Republic (Yakutia), FSK EES OAO

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Project characteristics The goal of the project is the development of power line infrastructure and unification of the Central and South power regions, provision of systematic reliability of the Central power region.Power line with a voltage of 220 kV and length of 755 km, 220 kV Tommot substation 2x63 MWA, and 220 kV Maya substation 2x63 MWA.

Volume of investment RUR 13,412.51 m in 2012-2014 ($470.6m).Infrastructure available Not required.

Cost of project RUR 19,026.7 m (in 2010 prices).Implementation period 2011-2014.

Markets Consumers of the Central power region of the Sakha Republic (Yakutia) with a population of over 500 thousand people, Berkakit – Tommot – Yakutsk railroad installations, Nizhny Bestyakh railroad station.

Investor's involvement The project is financed by the federal budget and FSK EES OAO.Project detailedness In 2011 the first stage has been completed and commissioned: the 220

kV high-voltage line from Neryungri Power Plant to Nizhny Kuranakh 2 (276.6 km), work on expanding 220 kV outdoor switchgear at Neryungri Power Plant and 220 kV substation in Nizhny Kuranakh has been completed. In 2011 the project documentation and estimate were developed for the second stage of the 220 kV high-voltage line Nizhny Kuranakh – Tommot – Maya with 220 kV Tommot substation and 220 kV Maya substation.

CEO of an organization implementing the project

Oleg Mikhailovich BUDARGIN,Chairman of the Board of FSK EES OAO

Contacts Address: 117630, Moscow, Akademika Chelomeya str., 5APhones:Unified Information Center: 8-800-200-18-81;For calls from outside Russia: +7 (495) 710-93-33;Fax: +7 (495) 710-96-55 E-mail: [email protected]

49. Project name 220 kV High-voltage line Olekminsk – AldanLocation Olekminsky and Aldansky regions

Project initiator Government of the Sakha Republic (Yakutia)Project characteristics Two single-circuit power lines with a length of 300 km for unifying the

power systems of West, South, and Central Yakutia. Power supply to second stage installations of the Eastern Siberia – Pacific Ocean pipeline.

Volume of investment RUR 13,800 m ($485.9m).Infrastructure available Not required

Cost of project RUR 13,800 mImplementation period 2020-2025.

Markets Installations of natural gas and oil industries, consumers of West and Central power regions of the Sakha Republic (Yakutia).

Investor's involvement With the attraction of federal budget funds for the implementation of the project.

Project detailedness Technical and economic assessment of the complex development of power lines of the northern regions of Irkutsk Oblast and West power

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region of the Sakha Republic (Yakutia), Vostsibenergosetproyekt Institute, Irkutsk.

CEO of an organization implementing the project

Alexander Anatolievich ANTONENKO,Minister of Housing and Power Industry of the Sakha Republic (Yakutia)

Contacts Ministry of Housing and Power Industry of the Sakha Republic (Yakutia)677000, Yakutsk, Kirova str., 13Phone: +7 (4112) 42-28-75E-mail: [email protected]://www.sakha.gov.ru/minjkhNikolai Konstantinovich EFIMOV, Head of the Power Industry Department of the Ministry of Housing and Power Industry of the Sakha Republic (Yakutia)Phone: +7 (4112) 34-27-05, fax: 34-24-00E-mail: [email protected]

50. Project name 220 kV High-voltage line Chernyshevsky – Mirny – Lensk – Peleduy with a branch to Oil-Pump Station No 14 with 220 kV City (Lensk) substation and 220 kV Peleduy substation

Location Mirninsky and Lensky regions of the Sakha Republic (Yakutia)Project initiator Government of the Sakha Republic (Yakutia), DVEUK OAO

Project characteristics The goal of the project is the strengthening of power infrastructure of the West power region, increasing the power flow towards Lensk industrial center for power supply to installations of the Eastern Gas Program and second stage of the Eastern Siberia – Pacific Ocean pipeline, as well as large consumers located in Irkutsk Oblast and nearby, improving the reliability of power supply.The length of circuit lines is 1,541 km, capacity of transformer substations – 402 MWA.The project provides for the construction of a power line on metal supports and a voltage of 220 kV, including:- construction of two single-circuit 220 kV high-voltage lines Chernyshevsky – Mirny – City (Lensk) with a 220/110/6 kV City substation, 2x336 km;- construction of two single-circuit 220 kV high-voltage lines City (Lensk) – Peleduy with a 220/110/10 kV Peleduy substation, 2x227 km;- construction of a single-circuit 220 kV high-voltage line City (Lensk) – oil-Pump Station No 12 – Oil-Pump Station No 13 – Olekminsk substation – Oil-Pump Station No 14 with a 220/10 kV substation at Oil-Pump Station No 12 and 220/10 kV substation at Oil-Pump Station No 13 (to power Oil-Pump Stations 12 and 13) – 395 km.

Volume of investment RUR 41,171 mInfrastructure available Not required

Cost of project RUR 41,171 mImplementation period 2011-2014

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Markets Lensk industrial center, installations of the Eastern Siberia – Pacific Ocean pipeline constructed within the frames of the Eastern Gas Program, gold deposits in Irkutsk region: Chertovo Koryto and Sukhoy Log.

Investor's involvement The project is financed by the federal budget and DVEUK OAO.Project detailedness Project documentation and estimate have been developed, expertise

assessment is available. Construction begun in 2011: auctions were held and agreements signed with contractors. At present a path is being cleared in the forest, support foundations are laid, supports are assembled and installed. Construction ordered by DVEUK OAO.

CEO of an organization implementing the project

Igor Vasilievich DZHURKO,Director-General of DVEUK OAO

Contacts OAO DVEUK 699003, Vladivostok, Stanyukevicha Str., 1Tel.: +7 (4232) 79-12-41, fax: +7 (4232) 79-12-42www.dveuk.

51. Project name Expansion and reconstruction of water intake station in the city of Yakutsk, Sakha Republic (Yakutia)

Location YakutskProject initiator Ministry for Housing, Communal Service and Power Supply of the

Sakha Republic (Yakutia)Project characteristics Aim: enhanced reliability of water supply, increased production of

water intake, qualitative improvement of fixed asserts. The project includes construction of a water intake station of bucket type with a pumping unit of first ans second lifting, with capacity of 100.0 ths cub.m a day, chlorination unit and ultraviolet disinfection unit.

Volume of investment RUR 1,652.5 m ($55.08 m) for the period 2011-2013.Infrastructure available The water intake is under the authority of JSC VODOKANAL. The

engineering and transport infrastructure meets the construction requirements. There is a land site for construction.

Infrastructure required Not required.Cost of project RUR 1,652.5 m for the period 2011-2013.

Implementation period 2011 - 2013IRR Figures to be specified during the project's feasibility studyNPV Figures to be specified during the project's feasibility study

Payback period 20 yearsMarkets Population and enterprises in the city of Yakutsk

Investor's involvement 100% investor

Project detailedness Design estimates by JSC Yakutagroproject, done in 2009 ш. 2697-СМ арх. № 68206.Positive expert opinion on design estimates and engineering survey results № 14-1-3-10/33-03(1)-09 of 25.11.2009 by the Department of State Expertise of Design Estimates and Engineering Survey Results in Construction, Sakha Republic (Yakutia).

CEO of an organization implementing the project

Alexander Ivanovich FEDOTOV,General Director, OAO Republic's Investment Company (RIC)Alexander Anatolievich ANTONENKO,Minister of Housing, Communal Service and Power Supply of the Sakha Republic (Yakutia)Nikolai Vasilievich ZHESTKOV

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Director General, OAO VODOKANALContacts OAO RIC, 677000, Yakutsk, Ordzhonikidze, 38

tel. +7 (4112) 39-02-51e-mail: [email protected] of Housing, Communal Service and Power Supply of the Sakha Republic (Yakutia)677000, Yakutsk, Kirov Str., 13 Tel. +7 (4112) 42-28-75, 34-47-88, 42-25-78e-mail: [email protected]://www.sakha.gov.ru/minjkh, ОАО VODOKANAL 677001, Yakutsk, Bogdana Chizhika Str., 19Tel. +7 (4112) 21-01-63, fax +7 (4112) 21-52-89е-mail: [email protected]://vodokanal.ya1.ru/

52. Project name Construction of waterworks in the city of Yakutsk, Sakha Republic (Yakutia)

Location YakutskProject initiator Ministry for Housing, Communal Service and Power Supply of the

Sakha Republic (Yakutia)Project characteristics Aim - enhanced reliability of water supply, increased production of

water intake, qualitative improvement of fixed asserts. The project includes construction of a water treatment plant with capacity of 100.0 ths cub.m a day.

Volume of investment RUR 1,434.0 m ($50.5m) for the period 2012-2013.Infrastructure available The waterworks are under the authority of JSC VODOKANAL. The

engineering and transport infrastructure meets the construction requirements. There is a land site for construction.

Infrastructure required Not required.Cost of project RUR 1,434.0 m for the period 2012-2013.

Implementation period 2012 - 2013IRR Figures to be specified during the project's feasibility studyNPV Figures to be specified during the project's feasibility study

Payback period 15 yearsMarkets Population and enterprises in the city of Yakutsk

Investor's involvement 100% investorProject detailedness Design estimates by JSC Yakutagroproject, done in 2009 ш. 2710-СМ

арх. № 68169.Positive expert opinion on design estimates and engineering survey results № 14-1-3-10/33-03(2)-09 of 14.09.2009 by the Department of State Expertise of Design Estimates and Engineering Survey Results in Construction, Sakha Republic (Yakutia).

CEO of an organization implementing the project

Alexander Anatolievich ANTONENKO,Minister of Housing, Communal Service and Power Supply of the Sakha Republic (Yakutia)Nikolai Vasilievich ZHESTKOVDirector General, OAO VODOKANAL

Contacts Ministry of Housing, Communal Service and Power Supply of the Sakha Republic (Yakutia)677000, Yakutsk, Kirov Str., 13 Tel. +7 (4112) 42-28-75, 34-47-88, 42-25-78

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e-mail: [email protected]://www.sakha.gov.ru/minjkh, ОАО VODOKANAL 677001, Yakutsk, Bogdana Chizhika Str., 19Tel. +7 (4112) 21-01-63, fax +7 (4112) 21-52-89е-mail: [email protected]://vodokanal.ya1.ru/

Construction Sector

53. Project name Expansion of cement production with launching of the third technological line and increasing the plant capacity to 600 ths t of Portland cement a year in the settlement of Mokhsogollokh

Location Sakha Republic (Yakutia), Khangalassky region, settlement of Mokhsogollokh

Project initiator OAO Yakutcement

Project characteristics 1. Construction of the third technological line2. Reconstruction of electric filters in the firing house3. Installation of a separating mil for cement grinding

Volume of investment RUR 3094.2 m ($109 m)

Infrastructure available Land plot, transport infrastructure, electric power, gas, water and hear supply, premises and constructions

Infrastructure required Not required

Cost of project RUR 3094.2 m Construction of the third technological line – RUR 2594.2 mReconstruction of electric filters in the firing house – RUR 200 mInstallation of a separating mil for cement grinding – RUR 300 m

Implementation period 6 years, including:Construction of the third technological line – 6 yearsReconstruction of electric filters in the firing house – 3 yearsInstallation of a separating mil for cement grinding – 3 years

IRR Being specified

NPV Being

Payback period 4.6 years

Markets The republic's companies in construction, mining, oil and gas industry and others

Investor's involvement Lent funds

Project detailedness “Justification of investing unto construction of a technological line using cement wet-mix production” is developed by OAO “SibNIIproektcement” in 2007.

CEO of an organization implementing the project

Alish Zabid-ogly MAMEDOV, General Director, ОАО Yakutcement

Contacts Yelena Gareevna KRYUCHKOVA,Deputy General Director on Capital Construction,Tel. +7 (411-44) 47-319,

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Alexander Borisovich MATVEEV,Head of Financial Department, Tel. +7(411-44) 48-070 е-mail: [email protected]

54. Project name Launching a facility for production of dry building composites, flooring cement and water-proof composite gypsum matrix, restoration of the building lime facility

Location Sakha Republic (Yakutia), Khangalassky region, settlement of Mokhsogollokh

Project initiator OAO Yakut State Construction Design and Research InstituteProject characteristics Launching and restoring of the facility for production of :

- flooring cement with capacity up to 40 ths t a year (including water-proof one); - lime with capacity up to 16 ths t a year;- dry building composites of a wide range with capacity up to 30 ths t a year.

Volume of investment RUR 700 m in 2010 prices ($24,6 m) Infrastructure available Land plot, transport infrastructure, electric power, gas, water and hear

supplyInfrastructure required Not required

Cost of project RUR 850 mImplementation period 5 years

IRR -NPV -

Payback period 5.6 yearsMarkets The republic's companies in construction, mining, oil and gas industry

and othersInvestor's involvement Lent funds

Project detailedness Business plan for dry construction composites and water-proof gypsum facilities, developed by OAO Yakut State Construction Design and Research Institute.

CEO of an organization implementing the project

Olga Innokentievna MATVEEVA,General Director, OAO Yakut State Construction Design and Research Institute

Contacts 677000, Yakutsk, Dzerzhinskogo Str., 20Tel. +7 (411-2) 45-22-95 е-mail: [email protected]://www.yapniis.ru/

55. Project name OOO ALMAS developmentLocation Lensky region, Olyokminsky region, city of Yakutsk, Sakha Republic

(Yakutia)Project initiator ООО ALMAS

Project characteristics Purchase of logging and timber transportation machinery, technological equipment for timber housing construction.Increasing volumes of stocking and processing of industrial timber

Volume of investment RUR 310.5 m in 2010 prices ($11.0 m)Infrastructure available Production facility Infrastructure required Construction of forest roads

Cost of project RUR 621.0 m

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Implementation period 3 yearsIRR -NPV -

Payback period 5 yearsMarkets Asian Pacific and European countries, Russian regions, Sakha

Republic (Yakutia)Investor's involvement Lent funds

Project detailedness Business planCEO of an organization

implementing the projectAndrei Yurievich NIKOLAEV, Director, OOO ALMAS

Contacts 677004, Yakutsk, 50 Let Sovetskoi Armii Str., 86/4 АTel. +7 (411-2) 44-96-09 е-mail: [email protected]://alanab.ykt.ru/content/blogcategory/165/45/

56. Project name Launching of desiccation service at ZAO YUPITER Location Lensky region, town of Lensk, Sakha Republic (Yakutia)

Project initiator ZAO YUPITERProject characteristics Launching a timber desiccation facility, modernization of timber

processing facility, construction of forest roads, creation of new workplaces

Volume of investment RUR 150.0 m in 2010 prices ($5 m)Infrastructure available Production facility in the town of Lensk, Lensky region, timber

logging unit in Lensky regionInfrastructure required Construction of forest roads

Cost of project RUR 210.0 m Implementation period 3 years

IRR Being specifiedNPV Being specified

Payback period 5 yearsMarkets Domestic market of the Sakha Republic (Yakutia)

Investor's involvement Share in the charter capitalProject detailedness Business plan

CEO of an organization implementing the project

Nikolai Vasilievich PEREVOZNIKOV, Director, ZAO YUPITER

Contacts 677000, Sakha Republic (Yakutia), town of Lensk, Pobedy Str., 74а Tel. +7 (411-37) 4-98-67, cell # +7 (914) 252-88-91е-mail: [email protected]

57. Project name Launch of timber production by OOO Logging Unit STVOR Location Sakha Republic (Yakutia), Lensky region

Project initiator OOO Logging Unit STVORProject characteristics Launching timber processing with the use of timber resources of

Lensky region, exporting the output to Europe and Asian Pacific countries, creating new workplaces.Designed capacity: industrial wood logging – over 100.0 ths cub.m; processed goods – over 70 ths cub.m. Reconstruction and construction of new forest tracks.

Volume of investment RUR 257.4 m in 2010 prices ($9.0 m)Infrastructure available There is upper and lower storages; wood processing facility, requiring

modernization of primary equipment; repair facilities; forest roads;

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housing.Infrastructure required Construction of forest roads

Cost of project RUR 495.0 mImplementation period 3 years

IRR 53.1%NPV RUR 317,6

Payback period 5 yearsMarkets Asian Pacific countries, Europe, Russian regions, doemstic market of

the Sakha Republic (Yakutia)Investor's involvement Lent funds

Project detailedness Business planCEO of an organization

implementing the projectVladimir Vasilievich KORYAKIN, Director, ООО Logging Unit STVOR

Contacts 677000, Yakutsk, Dzerzhinskogo Str., 2Tel. +7 (411-2) 47-63-29, cell # +7 (924) 175-01-40е-mail: [email protected]

58. Project name Construction of wooden carcass housing from energy-efficient modules with use of modified firebioproof composite

Location Yakutsk, Sakha Republic (Yakutia)

Project initiator Engineering and Technical Faculty, Technopark of Arctic Innovations Center, The M.K. Ammosov North Eastern Federal University (NEFU)(in the frame of “Development of Innovations Infrastructure of the M.K. Ammosov North Eastern Federal University “Arctic Innovations Center”)

Project characteristics Implementation of module approach in construction, which allows for significant reduction of construction period, maintenance of high level of standardization and precision of design, as well as for continuity of construction independent from weather conditions

Volume of investment RUR 13.7 m ($0.5 m)The volume of attracted investments and resources by partners and investors into the project development: not less than 40% of NEFU investments

Infrastructure available On initial stage the project is based on the infrastructure of Engineering and Technical Faculty, Technopark of Arctic Innovations Center of NEFU

Infrastructure required With active development of the project the necessity of infrastructure development is determined together with investors and partners

Cost of project Determined together with investors and partners

Implementation period Being specified

IRR Being specified

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NPV Being specified

Payback period Being specified

Markets Construction services market of the Sakha Republic (Yakutia)

Investor's involvement Upon agreement

Project detailedness Business offer

CEO of an organization implementing the project

Roman Romanovich NOGOVITSYNDirector, Arctic Innovations Center of NEFU

Contacts Arctic Innovations Center of NEFU 677000, Yakutsk, Kulakovskogo Street 42, Office 110Tel./Fax +7 (4112) 32-03-89, е-mail: [email protected]

59. Project name Integrated development of Quarter 84 in the city of YakutskLocation Yakutsk, Sakha Republic (Yakutia)

Project initiator ОАО Almazy Anabara (Diamonds of Anabar)Project characteristics Construction of comfortable multiresidential house in Yakutsk (three

416-apartment and two 432-apartment houses, 2,112 apartments in total with the total area of 147.3 ths sq.m)

Volume of investment RUR 6,475.5 m in 2011 prices ($228 m)Infrastructure available There is a 15 he land site allotted; it is integrated into the city's

transport network.Infrastructure required Electric power, heat, gas and water supply of the site

Cost of project RUR 6,690.5 m Implementation period 3 years

IRR 61.5% NPV RUR 655.1 m

Payback period 3.5 yearsMarkets Population in the city of Yakutsk

Investor's involvement Lent fundsProject detailedness Design estimates, business plan, positive conclusion of the state

expertise; a construction site allotted in Quarter 84CEO of an organization

implementing the projectMatvei Nikolaevich YEVSEEV, General Director, ОАО Almazy Anabara

Contacts 677000, Yakutsk, Chernyshevskogo Str., 6Sergei Alexandrovich ULAROV, Aide to General DirectorTel. +7 (411-2) 45-11-00 (ext. 4315) е-mail: [email protected]://alanab.ykt.ru/

V Children of Asia International Sports Games Construction Facilities

60. Project name Swimming pool in Yakutsk with 50х25 m tub

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Location Yakutsk, Sakha Republic (Yakutia)Project initiator Government of the Sakha Republic (Yakutia)

Project characteristics 4-storey building, The size of the tub complies with the international standards. It is 50.0x25.0 m with 10 lanes 2.5 m wide and 50.0 m long each.

Infrastructure available AvailableInfrastructure required Not required

Cost of project RUR 676,113.0 thsImplementation period June 1, 2012Investor's involvement -

Project detailedness The site is being constructed.As of July 2011, the site is 46% complete.

CEO of an organization implementing the project

Vyacheslav Ratmirovich SERGEEV,Director General,SE Service of Governmental Customer under the Government of the Sakha Republic (Yakutia)

Contacts Tel/fax +7 (4112) 34-12-39

61. Project name Sports Training Center (Covered Sports and Entertainment Complex for 3,000 seats) in Yakutsk

Location Yakutsk, Sakha Republic (Yakutia)Project initiator Government of the Sakha Republic (Yakutia)

Project characteristics In 2012 in the frame of the Russia is Sports Power International Sports Forum the Sakha Republic (Yakutia) will host the 5 th Children of Asia International Sports Games in 20 kinds of sports.The central venue for the Forum and the Games will be the Sports Training Center (Covered Sports and Entertainment Complex for 3,000 seats) in Yakutsk, the construction of which began in 2009.The venue is one of the most large-scale projects in sports industry of the Far Eastern Federal District, which includes a covered arena for holding sports, training and entertainment events. The complex will have four 200m-long running lanes, sectors for 60m run, longjump, highjump, and pole vault. Folding and demountable grounds of medical center and sports hall (wrestling and boxing), etc, will be used for holding team sports.Total area of venue – 4.16 ha, construction area – 1.28 ha, area of roads and other grounds – 3.06 ha.

Infrastructure available External communications: Heating – Yakutsk Heating and Power Central, closed circuit; Power supply – built-in transformer substation in Block B, 200 kW module diesel power station; Water supply – central sewage system; Gas supply – gas mains.

Infrastructure required Not requiredCost of project RUR 2,394.8m

Implementation period June 2012Investor's involvement 26,95%

Project detailedness The project is under construction.As of July 2011 the project is 35% complete.

CEO of an organization implementing the project

Vyacheslav Ratmirovich SERGEEV,Director General,SE Service of Governmental Customer under the Government of the Sakha Republic (Yakutia)

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Contacts Tel/fax +7 (4112) 34-12-39

62. Project name Covered football stadium with artificial surface for 3,000 seats in Yakutsk

Location Yakutsk, Sakha Republic (Yakutia)Project initiator Government of the Sakha Republic (Yakutia)

Project characteristics In 2012 in the frame of the Russia is Sports Power International Sports Forum the Sakha Republic (Yakutia) will host the 5 th Children of Asia International Sports Games in 20 kinds of sports.This facility comprises: - one-storey football stadium;- three-storey office building;- transformation station;- universal sportsground 50m x 30m;- skate-park;- freestyle;- 1000m-long skiing track.The 110x65m football pitch and 400m running tracks comply with international football and athletics standards.Equipment and 30x15 m floor coverage without additional areas comply with international standards for aerobics, rhythmic dancing and table tennis.Max daily capacity – 700 persons.

Volume of investment -Infrastructure available AvailableInfrastructure required -

Cost of project RUR 1,448.1mImplementation period June 1, 2012Investor's involvement 95%

Project detailedness The site is being constructed.As of July 2011 the project is 10% complete.

CEO of an organization implementing the project

Vyacheslav Ratmirovich SERGEEV,Director General,SE Service of Governmental Customer under the Government of the Sakha Republic (Yakutia)

Contacts 677018, Yakutsk, Ammosova Str., 8Tel: +7 (4112) 34-12-39

63. Project name MODUN Sports Complex (Stage 2)Location Yakutsk, Sakha Republic (Yakutia)

Project initiator Government of the Sakha Republic (Yakutia) Project characteristics This facility will expand population access to services in physical

culture and sports, it will allow for holding various sports events, efficiently develop native kinds of sports at regional, national and international levels, various scientific research in native sports, it will become base facility for federal center of native kinds of sports.Total area of Stage 2 is 2,100.7 sq.m. It will house a 2-level hall for competitions with amphitheatre for 300 seats, which will host Taekwondo competitions of the 5th Children of Asia Games; specialized training rooms for native sports (Khapsagay, Mas-Wrestling, Yakut jumps, etc). Number of floors – three.Total area of supra-constructed area is 838.50 sq.m. The upper part

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will house athletics hall with 150-seat tribune and 3 running tracks, with special soft cover for jumping, tensometric platforms for scientific research, standard track for official competitions. Number of supra-constructed part floors – 1. During the Children of Asia Games the hall will be used as training hall in table tennis.Max daily capacity – 300 persons.

Infrastructure available External communications: Heating – Yakutsk Heating and Power Central, closed circuit; Power – from Modun Sports Complex Stage 1; Water – centralized.

Infrastructure required Not requiredCost of project RUR 191.5m

Implementation period June 1, 2012Investor's involvement 95%

Project detailedness The project is under construction.As of July 2011 the site is 41% complete.

CEO of an organization implementing the project

Vyacheslav Ratmirovich SERGEEV,Director General,SE Service of Governmental Customer under the Government of the Sakha Republic (Yakutia)

Contacts 677018, Yakutsk, Ammosova Str., 8Tel: +7 (4112) 34-12-39

Agroindustrial Sector

64. Project name Development of agricultural production facility in the settlement of Vitim

Location Lensky region, Sakha Republic (Yakutia)Project initiator Ministry of Agriculture and Food Policy of the SR(Y), OOO Vitim-

AgroProject characteristics The project is designed to:

1. Supply whole-milk products to a milk- processing plant producing cultured milk products for the population; Products: hardly transportable milk and cultured milk products from basic-fat marketable milk produced at the animal farm in volume of 650 t. 2. Production of pork, selling piglets to the population in the settlement of Vitim and neighboring areas.3. Egg production in Vitim. 4. All-the-year-round production of vegetables and greens for selling fresh and processing. 5. Wasteless manufacturing of agricultural products.Basic facilities: - cattle farm for 212 heads of milkers and 282 heads of young stock in Vitim and the village of Tolon, Lensk region of the SR(Y). - pig farm for 47 heads of sows.- egg-oriented chicken farm for 10,000 laying hens.- greenhouse vegetable production in Vitim.- food producing facility in Vitim.

Volume of investment RUR 1,568.6 m in 2010 prices ($52.2 m)

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Infrastructure available Transport, electric grid and engineering infrastructureInfrastructure required Gasification of the settlement of VitimImplementation period Up to the year 2017, project life cycle 26 years

Cost of project RUR 1,568.6 mIRR 10.08%NPV RUR 1,578.4 m

Project design estimates Design estimates are developed. Stage 1 design estimates are developed for the following sites:- food plant with meat and fish product shops, milk plant with

capacity of 3 tons a shift, bakery and confectioner's shop woth capacity of 1.5 tons a shift, soft drinks shop with capacity 50 ths a year;

- slaughter point;- maintenance unit (garage for 10 vehicles with stores and repair

shops, shed for agricultural vehicles, cold store);- veterinary unit with a laboratory;- office building with sanitary post;- cattle farm for 212 heads of loose housing system with full herd

turnover;- pig farm for 47 heads of principle sows.Estimated cost of the site construction amounts to RUR 753.678 m.At the moment Stage 1 design estimates are undergoing state expertise. The state contract was signed for the construction of stage 2 sites to be completed in August 2011. Stage 2 sites:- chicken farm for 10,000 birds;- dung-yard for the cattle and pig farms with capacity of 10,000

tons;- potato storage with capacity of 500 tons;- biological waste processing facility with capacity of 1 ton a shift;- greenhouses with total area of 6,000 sq.m, including used in winter

– 1,000 sq.m, in spring and summer – 5,000 sq.m;- post control;- 35 km of motor roads; - silo pit with capacity of 1,200 tons;- irrigation and drainage system for 50 ha of arable lands of the

agroindustrial complex;- power supply to arable lands with 30 km long transmission lines;- expansion of arable lands by 1,000 ha;- engineering and geological survey and topographic mapping of the

territory;Positive conclusion of the State Expertise Department of the Sakha Republic (Yakutia).

Payback period 12.25 yearsMarkets Supply of local products to workers of the companies operating in

Western Yakutia and the north of Irkutsk Oblast.Investor's involvement The extent of an investor’s involvement is to be determined by an

investment agreement upon completion of design estimates.Project detailedness Feasibility study – developed and approved by the state expertise;

design estimates for Stage 1 objects – developed; design estimates for engineering and transport infrastructure objects - developed.

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The project was discussed at a meeting of the Expert Board on regional investment policy under the Ministry of Regional Development of the RF on 25 August 2010. To include it into the list of priority investment projects, the Board recommended to revise the project as a project aimed at integrated development of the entire area. OAO “Republican Investment Company” is acting as an investor at the stage of preparing a construction site (engineering and transport infrastructure facilities). The State Order Service under the Sakha Government has signed the state contract for construction and mountining.

CEO of an organization implementing the project

Director, OOO Vitim-AgroAnatoly Timofeevich NOEV

Contacts 678150, Lensky region, s. Vitim, Lenin Str., 45cell # +7 (914) 225-6256, fax +7 (411-23) 36-57-47e-mail: [email protected]

65. Project name Reconstruction and modernization of fish processing facilityLocation Yakutsk, Sakha Republic (Yakutia)

Project initiator ООО Yakutsk Fish PlantProject characteristics Replacement of obsolete equipment and production of safe fish

products in compliance with European standards and HASSP.Production capacity – 1,000 tons of fresh frozen fish stored at a time. Types of products: smoked, salted, balyk-type, cured products, preserves and delicatessen.

Volume of investment RUR 133 m in 2011 prices ($4.7 m) Infrastructure available Available Infrastructure required Not required

Cost of project RUR 133 mImplementation period 2012 - 2013

IRR 12%NPV RUR 69.059 m

Payback period 13 yearsMarkets Sakha Republic (Yakutia), RF regions

Investor's involvement 100% investor Project detailedness Design estimates done

CEO of an organization implementing the project

Director, OOO Yakutsk Fish Plant Yelena Kirillovna KUVSHINOVA

Contacts 677000, Yakutsk, Truda Str., 1Tel. +7 (4112) 45-90-58e-mail: [email protected]

66. Project name Processing of fish harvested in the republic without quotasLocation Yakutsk, Sakha Republic (Yakutia)

Project initiator ООО CheZaRo+, individual entrepreneur A.N. ChertkovProject characteristics The project is aimed at intensive promotion of new competitive fish

products on markets of the Sakha Republic (Yakutia), Far-Eastern regions and central parts.Objectives: Development and production of over 100 new fish

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products from local fish species harvested without quotas (pike, cisco, peled, crucian carp). Increased volume of fish products manufacturing up to 6,000 tons.

Construction of fish processing facilities; purchase of modern fish-processing equipment; certification of newly-developed fish products.Objects to be built: construction of a fish-processing facility in the city of Yakutsk, compiling with the international standards

Volume of investment RUR 520 m in 2009 prices ($18.3 m)Infrastructure availableInfrastructure required

Transport and electric grid infrastructureNot required

Cost of project RUR 520 m:- cost of constructing a building and facility related to processing of

up to 6000 tons of all kinds of fish – RUR 112.24 m - cost of equipment of fish-processing facility (fillet –making line,

drying line, freezing line, packing) – RUR 250 m - establishment of fixed facilities for the initial processing of fish on

the fishing sites – RUR 120 m.- other costs – RUR 37,6 m.

Implementation period 5 yearsIRR 35%NPV RUR 192.4 m at 7% discounting rate

Payback period 7.5 years Markets Sakha Republic (Yakutia), Russian Far East, city of Moscow and

central regions of RussiaInvestor's involvement The extent of an investor’s involvement is to be determined by an

investment agreement upon completion of design estimates and the construction site preparation.

Project detailedness Feasibility study is developed. The project was discussed at a meeting of the Expert Board on regional investment policy under the Ministry of Regional Development of the RF to be included into the list of priority investment projects. The Board recommended to revise the project as an integrated development project

CEO of an organization implementing the project

Director Alexander Nikolaevich CHERTKOV,

Contacts 677000, Yakutsk, Korolenko Str., 2/2,Tel. +7 (4112) 422-720, cell # +7 (914) 2705185е-mail: [email protected]

67. Project nameDevelopment of innovative production of biologically active food additives (BAA) and cosmetics from reindeer antlers with the use of new biotechnologies

Location Yakutsk, Sakha Republic (Yakutia)

Project initiator Closed Joint-stock TABA National Reindeer Company (ZAO NRC TABA)

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Project characteristics

Project aims: Commodity production in reindeer husbandry in Yakutia via production of new products (BAA, preparations and cosmetics from antlers and other reindeer endocrine material).Products manufactured:- hygienic preparation for baths Aqua-Tabapan-UU (antler baths are recommended by the Russian Research Center for Recovery Medicine and Balneology, Ministry for Healthcare of the RF);- mud applications made from antler cake (recommended for rheumatic and articular diseases);- 4 kinds of cosmetic creams with reindeer velvet pantlers with Tabapaan trademark;- encapsulated BAA Tabapan (for improved intellectual and physical performance, stronger immune system, better sexual function);- sliced antlers Solpan (recommended for for improved intellectual and physical performance, stronger immune system, better sexual function);- cosmetic creams based on antler hydrolyzate: nourishing, anti-age, protecting, massage, for eye-lids. There is no analogous production based on reindeer raw materials in the Russian Federation; whereas the reindeer herd in the Sakha republic (Yakutia) is capable of supplying the necessary volume of antlers without affecting the reindeer population. The BAA production's designed capacity requires up to 12 tons of raw antlers a year.

Volume of investment RUR 46.0 m in 2010 prices ($1.6 m)

Infrastructure available There is a BAA producing shop with total area of 1,588.9 sq.m. It has been reconstructed, supplied with an autonomous boiler unit.

Infrastructure required

Expanded production requires the following:- to conduct construction and rigging in the existing building to launch perfume and cosmetic articles;- to purchase a 200 kW transformer substation, provide water supply ans sewage, increase gas boiler unit's capacity, construct a hard-cover road.

Implementation period 6 years

Cost of projectRUR 80 m, including:- own funds – RUR 34 m;- investments – 46 m.

IRR 18.6%NPV RUR 0.424 m

Payback period 61 months

Markets Russia regions, exports upon receipt of the international certificate

Investor's involvement- share in business (51% of charter capital of ZAO TABA National

Company)- funds lent for 10 years, with the principle debt payment starting

from the third year of financing. Project detailedness

Business plan is developed.

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There are design estimates for construction of a shop producing perfume and cosmetic articles in the city of Yakutsk.There has been launched production of encapsulated BAA and hydrolyzate from reindeer antlers. Four types of cosmetic creams are produced. The commodity products won eight gold medals at various Russian exhibitions.Documents:- Certificate of state registration №77.99.11.3.У.1696.3.10 of 19.03.2010 for Solpan antler slices food BAA;- Certificate of state registration №77.99.11.3.У.1694.3.10 of 19.03.2010 for Tabapan antler powder food BAA;- Compliance certificate № РОСС RU.ПК05.В 31868 № 8354807 for Tabapan protecting cream, universal Tabapan-Erchim massage cream;- Compliance certificate № РОСС RU.ПК05.В 25476 № 7776581 for Tabapan anti-age cream, Tabapan nourishing cream»;- Resolution on state registration of Tabapan trade mark of 9 December 2010.

CEO of an organization implementing the project

General Director, ZAO NRC TABA Mikhail Mikhailovich PAVLOV,

Contacts677000, Yakutsk, Ordzhonikidze Str., 20Tel. +7 (4112) 34-01-56, fax +7 (4112) 42-04-77е-mail: [email protected]

68. Project name Establishment of a joint venture on breeding Yakut horses and foal meat processing

Location Churapchinsky region, Sakha Republic (Yakutia)Project initiator OAO Republic's Investment Company

Project characteristics Export of foal products to international consumer markets, South Korea in particular. The project is based on unique dietary and therapeutic properties of Yakut foal meat.

Volume of investment RUR 100 m in 2011 prices ($3.5 m).

Infrastructure available Federal motorway Moscow – Magadan, running through the territory of Churapchinsky region; developed infrastructure in the settlement of Churapcha, the regional center.

Infrastructure required Not required Implementation period 5 years

Cost of project RUR 200 mIRR Being approvedNPV Being approved

Payback period Being approvedMarkets RF, Kazakhstan, South Korea

Investor's involvement Investments up to 50%Project detailedness The project documentation is being developed

CEO of an organization implementing the project

General Director, OAO RIC Alexander Ivanovich FEDOTOV

Contacts 677000,Yakutsk, Ordzhonikidze Str., 38tel. +7 (4112) 39-02-51

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e-mail: [email protected]

69. Project name Creating a joint venture to manufacture footwear

Location Yakutsk

Project initiator OAO “Sakhabult” Agro-Industrial Enterprise

Project characteristics

Realization of leather and wet-blue (semi-manufactured).Establishing an enterprise that would guarantee consuming of manufactured products of the “Sakhabult” leather shop. The project plans to synchronize the work of the “Sakhabult” leather shop with the production activities of the enterprise. Production capacity is 200000 pairs of shoes a year. Production of footwear in the Russian Federation has been on level over the recent years. The imported footwear accounts for 70% of sales.

Investment volume RUR 22,5 m. in 2010 prices ($0,750 m.)

Infrastructure available

The main production building has 2 floors with total area of 1,5000 sq.m. It is made of small concrete cinder block.Electricity, water and sanitation provided.It has self-contained heating.The building is located on land with total area of 5 hectares.The land is leased for the period of 49 years.

Infrastructure required

Transportation services reduction.

Implementation period 4 years

Project cost

RUR 22,5 m., including:- 51% (RUR 11,475 m.) long term trade credit in the form of raw hides provided by OAO “Sakhabult”.- 59% (RUR 11 025 m.) – direct investment

IRR No information, IRR - 561,7%

NPV RUR 66,8 m.

Payback period 8 months

Markets The Sakha Republic (Yakutia), Khabarovsky Kari, Primorsky Krai, Magadan Oblast, Sakhalin Oblast and the border territories of the PRC

Investor’s involvement

- 51% (RUR 11,475 m.) long term trade credit in the form of raw hides provided by OAO “Sakhabult”.- 49% (RUR 11 025 m.) – direct investment

Project detailedness Material and technical facilities are available.The land is leased for the period of 49 years.

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OAO “SAkhabult” assumes responsibilities in supply leather, the main raw material for the footwear production, technological process management, providing qualified shoemakers, realization of part of finished products.

CEO of an organization

implementing the project

Petrov Nikifor Nikolaevich The Director General of OAO “Sakhabult” ” Agro-Industrial Enterprise

Contacts 677018 Yakutsk, Sovetskoy Armii str, 3 Tel. /fax: (4112) 21-10-00 E-mail: [email protected]

Innovative projects

70. Project name Developing a technology and launching a facility for producing preparation based on polyunsaturated fat acids of young Yakut horse

Location Company with imited liabilities (OOO) “Scientific-production unit Biotechnologies of the North”

Project initiator Company with limited liabilities (OOO) “Scientific-production unit Biotechnologies of the North”, Yakutsk Research Institute of Agriculture

Project characteristics Developing a technology and launching a facility for producing preparations and biologically active additives based on polyunsaturated fat acids from internal fat of young Yakut breed horses.(Critical technology of the federal level: Chemical and biological synthesis of active medical and food structures; their further testing on cell cultures, animals and in a clinic; development of a production technology (standard requirements).Fat of young Yakut horses contains polyunsaturated fat acids (linoleic, arachidonic and alfa-linoleic fat acids); their concentration at 25.5% makes it a potential source of producing Omega-3 and Omega-6 fat acid preparations. The project will also contribute into safeguarding preservation of the Yakut horse gene fund; on the international scale – provide perspective export-oriented product. Analogues of the preparation being created are used for treatment and prevention of a wide range of diseases, including atherosclerosis and its complications – ischemic heart disease, arterial hypertention, stroke, alimental obesity, oncological diseases, tuberculosis, gastrointestinal tract diseases.

Volume of investment At least RUR 38 m in 2010 prices ($1.33 m) within implementing the START-2007 innovative projects' program held by the Federal Fund for supporting small businesses in science and technology sector, including:

- investor funds: at least RUR 25 m - Federal budget: up to RUR 13 m

Infrastructure available On the initial stage, the project uses infrastructure of the Yakutsk research Institute of Agriculture, Russian Agricultural Academy; Research Institute of Diet, Russian Academy of Medical Sciences; and

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Industrial Park, M.K. Ammosov Northeastern Federal University.Infrastructure required With extensive project development, the need in additional infrastructure

is to be determined in consultations with investors and partners.Project cost RUR 38 m

Implementation period 36 months

IRR 42.4 %NPV for stage 3 RUR 5.8 m

Markets Russian and the world market.Investor's involvement An investor’s share in profit – to be negotiated; share in the charter

capital – up to 25%, depending on the volume of investment.

Project's detailedness The innovative project is a winner of START-2007 contest held by the Federal Fund for supporting small businesses in science and technology sector. Stage 1 is complete: standard requirements for the raw material developed, “Foalium” trade mark received; business plan available.

CEO of an organization implementing the

project

Konstantin Maksimovich STEPANOV, General Director, “SPU Biotechnologies of the North”, Doctorof Veterinary Sciences, Associate professor, RANS Professor, Honorable agriculture worker of the Sakha Republic (Yakutia).

Contacts 677013, Yakutsk, Kalandarishvili Str., 21, building 1, office 57Tel./fax +7 (4112) 21-45-69, 35-04-84, cell # + 7 914 270 35 87e-mail: [email protected]

71. Project name “Basalt – new technologies” in the area of “Basalt-plastic nano-structured composites for the Russian North”

Location Yakutsk, Sakha Republic (Yakutia)Project initiator Company with limited liabilities (OOO) TBM

Project characteristics The innovative project is aimed at the replacement of traditionally used in the Russian North and Far East expensive construction materials with more efficient alternative kinds of materials by organizing local highly-technological production complex on the production of composite materials based on continuous basalt fiber.Products under the project: Basalt continuous fiber (2850 t/y) - reinforcement of concrete and other constructions;- manufacture of composite materials (rods, profiles, tanks, tubes, nets);- manufacture of woven and nonwoven materials (for automobile, plane, vessel and bridge constructions, wind-power generators). Basalt-plastic reinforcement (2,600 t/y)- reinforcement for concrete constructions;- reinforcement for road carpet. Basalt-plastic road geonet (1,400 ths cub.m/y) - reinforcement of road carpets;- reinforcement of embankments, earth-deposits, slopes, beautification. Basalt-plastic constructions and products (33,370 cub.m/y) - industrial and civil engineering.

Volume of investment RUR 950 m in 2010 prices ($33.5 m), including own funds: RUR 150 m.Borrowed funds:ROSNANOTECH State Corporation — RUR 400 m, OAO Republic's Investment Company (RIC) — RUR 150 m, ОАО

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RosBR – RUR 250 m.Infrastructure available All infrastructure available.Infrastructure required Construction (development) of Infrastructure facilities of Pokrovsk

industrial zone and creation of energy infrastructure using highly-efficient gas-turbine plants (RUR 142 million).

Project cost RUR 950 mImplementation period 2010 - 2018

IRR 18.6 %NPV RUR 173,1 m

Payback period 66 monthsMarkets Potential market – the market of reinforcement materials and products

such as basalt continuouss fiber,basalt-plasticc reinforcement, road geonet, reinforced concrete constructions in the Sakha Republic (Yakutia) and other regions of the Russian Far East.The regional reinforcement market amounts to around 24-26 ths t of steel reinforcement a year, equivalent to 3 ths t of basalt-plastic reinforcement.Stage 1 of the project focuses on the Sakha market and substitution of steel reinforcement brought from othert regions by the alternative one.

Investor's involvement Share in OOO TBM – 37,5%Share in OAO Ros BR - 25%Share in ROSNANOTECH – 37,5%

Project's detailedness Positive assessment by the state expertise performed by Ros BR.Positive opinion of scientific and technical, patent, production-tachnical and investment expertise by ROSNANOTECH. The project is approved for funding by ROSNANOTECH. Financing: funds borrowed from OAO RIC at RUR 150 m; loan from OAO RosBR for the amount of RUR 100 m.

CEO of an organization implementing the project

Directir general of OOO TBM Yegor Petrovich ZHIRKOV

Contacts: 677000, Yakutsk, Ordzhonikidze Str., 38, office 105Tel. +7 (4112) 390279, cell # +7 (924) 7652580е-mail: [email protected]

72. Project name Production of motor fuel from solid fuel minerals and mechanic thermochemical reactor for its realization

Location Neryungri, Sakha Republic (Yakutia)Project initiator ООО YAKUTIA, Moscow Institute for Solid Fuel Minerals

Project characteristics The technology of hydrogenation processing of coal into liquid fuel is remarkable for its high economic efficiency (compared with the industrial technology used in Germany and related research, recently done in the USA, Japan, Great Britain, and other countries); potential of rceiving liquid fuel from coal with competitive prices, compared with their production from crude oil (cost of 1 t of coal oil is up to $150).Besides, there are other advantages of producing motor fuels through coal hydrogenation compared with processes developed and being improved in the USA, Germany, Japan, and Great Britain:1. Lower capital investment into building an industrial facility by 5 times compared with the use of 20-30 mPa pressure.2. Reduced total consumption of hydrogen for producing marketable

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motor fuels to 5-6% against 13-14% of foreign analogues.3. Use of swirl combustion chamber for drying coal instead of rotary tube drier reduces metal consumptionby 22 times at this stage.4. The use of vibratory coal grinding in dispensers results in 5.5 times lower cost for coal grinding.5. Slime semi-coking has been replaced by high-speed burning in cyclone furnace.6. The use of highly-porous active catalysts for hydro-refinement of primary coal distillates halves the number of treatment stages when producing commercial gasolines, jet engine and diesel fuels..7. Short-cycle adsorbing treatment for refinement of circulating hydrogenous gas reduces costs at this stage by 12 times, compared with the known absorbing techniques of refinement.8. The technique of gasification in boiling substance under pressure and hot gas refinement for production of fuel gases (power station and process) increases efficiency from 60-70% to 85%, reduces capital costs in comparison with the known industrial techniques.9. The use of a new-generation hydrogenation reactor (mechanic thermochemical reactor) reduces consumption of metal at this stage by 25 times; power consumption – by 30 times; site area – by 17 times; and productivity increases by 12.5 times.10. Products - coal oil – 10.4 ths t/y;- EURO-3 gasoline — 2.8 ths t;- low-sulfur EURO-4 diesel fuel- 6.2 ths t;- annual coal processing volume– 33.4 ths t.11. Alternative products:- paving bitumen – 4.7 ths t;- EURO-3 gasoline — 4.3 ths t.

Volume of investment RUR 1260 m in 2010 prices ($44.4 m).Capital investment –RUR 260 m.Circulating assets – RUR 1000 m.

Infrastructure available Electric power generation 400kW; there are access roads; engineering communications.Land site with the area of 19,195 sq. m. Buildings and constructions under ownership.

Infrastructure required Mainline industrial facilities Project cost RUR 1,260 m

Implementation period 4 yearsIRR 36%NPV Precise calculation to be done under the project development stage

Payback period 4 yearsMarkets Mining industry

Investor's involvement 50% ROSNANOTECH Project's detailedness Application to ROSNANOTECH № ID 967, the Russian Federation

patent №2396303; Application for European patent №РСТ/RU 2010/000296; patent №2411423 of 11.02.2009.

CEO of an organization implementing the project

Vasily Ivanovich REVA, Director GeneralSupervisor – Professor Anatoly Stanislavovich MALOLETNEV, Doctor of technical sciences

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Contacts: Neryungri, Donetskaya Str., 34 аTel./fax +7 (41147) 9-21-53, cell # +7 (924) 362-34-50, +7 (924) 160-43-34е-mail: [email protected]

73. Project name Developing a technology of producing and composition of the detoxicant biologically active additive

Project initiator Institute for Biological Problems of Cryolithozone, Siberian Branch, Russian Academy of Sciences

Project characteristics Project aim: developing a technology of producing biopreparations with detoxicant and antidrug effect basing on amino-β- oligosaccharides extracted from lichen, effective for correcting metabolic dysfunctions (insular diabetes, atherosclerosis, autoimmune allergic conditions); marketing of the product.Type of product: water-alcoholic solutions, encapsulated powders.

Volume of investment RUR 30 m in 2010 prices ($1,06 m)Infrastructure available The research and development is being done at the Institute for

Biological Problems of Cryptozoic, Siberian branch, Russian Academy of Sciences, and Biochemistry department, M.K. Ammosov Northeastern Federal University.

Infrastructure required Significant investment will be required for construction of the industrial facility in the city of Yakutsk.

Implementation period 1.5 years, project life cycle 10 yearsProject cost RUR 30 m

IRR 35%NPV $ 0.3 m

Payback period 3 yearsMarkets Russian and foreign (South-East Asia and the EU) markets of

biopreparations and biologically active additives.Investor's involvement Joint completion of the research and development, production supply,

investment into production, establishment of joint production, cooperation in selling the production in the RF and the EU. A share in profit – to be negotiated.

Project's detailedness There are the RF patents for invention, permissions from the Russian Agency for Health and Consumer Rights to produce and sell the products. The technological project is ready to be implemented.

CEO of an organization implementing the project

Director of IBPC, SB, RASPavel Alexandrovich REMIGAILO

Contacts: 677980, Yakutsk, Lenin Ave., 41Boris Moiseevich KERSHENGOLTS, cell # +7 (914) 235-11-78е-mail: [email protected]

74. Project name Development and production of polymer sealing devices and materials for operating vehicles under severe Russian Arctic conditions in various industries

Location Yakutsk, Sakha Republic (Yakutia)

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Project initiator Company with limited liabilities (OOO) NORDELASTProject characteristics Project aims:

- creation and production of new cold-resistant elastomer materials;- development of elastomer sealing devices and materials with enhanced operational properties and designed for various-industry vehicles used in the Russian Arctic.Manufactured products:1. Sealing parts and devices for vehicles used for the Russian Arctic zone. Cold-resistant molded rubber technical articles, protected by the RF patents, which ensure high reliability and durability of operation under Arctic conditions.The assortment produced – over 500 dimension types2. Testing of climate resistance of elastomer materials and articles at a special area simulating all kinds of deterioration under cold climate.

Volume of investment RUR 3.8 m in 2010 prices ($0.12 m)Infrastructure available The major industrial facility ion the city of Yakutsk is based on

infrastructure of the Institute of Oil and Gas, Siberian Branch, Russian Academy of Sciences.

Infrastructure required Not considerable investment into infrastructure required. Implementation period 1.5 year, project life cycle 15 years

Project cost RUR 10.0 mIRR 22%NPV RUR 1.7 m

Payback period 6 yearsMarkets Enterprises in the city of Yakutsk and the Sakha Republic (Yakutia); in

perspective, Russian and foreign manufacturers of vehicle and equipment to be operated under cold climate.

Investor's involvement Professional marketing and product promotion – elastomer sealing articles and devices for vehicles operating in various industries in the Arctic regions of Russia beyond the republic.

Project's detailedness The innovative project is a winner of START-2004 contest held by the Federal Fund for supporting small businesses in the science and technology sphere, Stage 3 participant. The production is established.

CEO of an organization implementing the project

Raima Fazallyanovna BIKLIBAEVADirector General, OOO NORDELAST

Contacts: 677007, Yakutsk, Avtodorozhnaya Str., 20Tel/fax +7 (4112) 35-79-32е-mail: [email protected]

75. Project name Development and implementation of innovative technologies of diamond processing

Location Yakutsk, Sakha Republic (Yakutia)Project initiator Company with limited liabilities (OOO) SAKHASOFT

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Project characteristics Project aim: commercialization of the research done on physical properties of raw and polished diamonds with the use of mathematical simulation in diamond cutting industry. Types of products:1) new fancy cut;2) services on optimal raw diamonds marking

Volume of investment RUR 10 m in 2011 prices ($0.34 m)Infrastructure available No considerable investments required foe infrastructure development.

Licensed activity and service rendering is planned at the own facility.Infrastructure required Not required.

Project cost RUR 10.0 m Implementation period 2 years

IRR 44%NPV RUR 0.7 m

Payback period 5 yearsMarkets Russian and foreign diamonters.

Investor's involvement Investments into creation of intellectual activity results. Share in the profit gained – to be negotiated.

Project's detailedness There is a patent, registered PC software.

CEO of an organization implementing the project

Yury Mikhailovich GRIGORIEVDirector, OOO SAKHASOFT

Contacts: 677013, Yakutsk, Kulakovsky Str., 48, office 607Tel. +7 (4112) 49-68-62, cell # +7 (924) 165-2193е-mail: [email protected]

76. Project name Development and production of polymer tribotechnical composite items, based on fluoroplastic, for using under extreme weather conditions in cold regions

Location Yakutsk, Sakha Republic (Yakutia)Project initiator Company with limited liabilities (OOO) TECHNOPLAST

Project characteristics Project aim: creation and production of new polymer composite materials for anti-friction and abrasive parts and devices with improved operational features and designed for various-industry vehicles used in cold regions of Russia. Types of products:1. Anti-friction articles for motor transport, machinery and equipment, heavy quarry vehicles, hydraulic and pneumatic systems, stop valves, oil and gas pipelines;2. Abrasive articles: abrasive wheels, grinding wheels, honing wheels;3. Customer-made materials with required characteristics.

Volume of investment Up to RUR 3.75 m in 2010 prices ($0.12 m)Infrastructure available It is planned to launch a scientific, educational and industrial site at

Northeastern Federal University's premises, to purchase main technological equipment.

Infrastructure required Not required Project cost RUR 8.25 m

Implementation period 1.24 yearsIRR 26%NPV RUR 1.88 m

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Payback period 3 yearsMarkets - mining enterprises of the Sakha Republic (Yakutia), motor transport

enterprises, utilities and communal service enterprises, owners of motor vehicles.

Investor's involvement Investment into production - joint supply of products;- cooperation in creating new materials;- launch of a joint production.Share in the profit gained – to be negotiated.

Project's detailedness There is a business-plan, technological regulations, expert opinion. The innovative project is a winner of START-2005 contest held by the Federal Fund for supporting small businesses in the science and technology sphere, Stage 2 participant. Production of sample items is performed at the Institute of Oil and Gas, Siberian Branch, Russian Academy of Sciences.

CEO of an organization implementing the project

Sardana Afanasievna SLEPTSOVADirector, OOO TECHNOPLAST

Contacts: 677016, Yakutsk, Kulakovsky Str., 48, office 583cell # +7 (924) 1683745е-mail: [email protected]

77. Project name Development and implementation of techniques of processing low-quality hard-to-cut raw diamonds

Location Yakutsk, Sakha Republic (Yakutia) Project initiator Company with limited liabilities (OOO) Scientific-research enterprise

FRAMEZIT Project characteristics Aim of the project: sales of the developed and creation of new

techniques of processing low-quality diamonds for improved efficiency of using them (science-based production). Types of products: diamond tools (microtomes, chisels, edges), inserts of low-quality diamonds in jewelry production, technical products.

Volume of investment RUR 45.0 m in 2006 prices($1.65 m)Infrastructure available No considerable investment into infrastructure required, as the facility

is based at the Institute of Diamond and Precious Metals Geology, RAS, Yakutsk.

Infrastructure required Not requiredProject cost RUR 45 m

Implementation period 1,5 years IRR 35%NPV RUR 22.5 m

Payback period 3 yearsMarkets Russian and foreign producers of diamond tools, equipment and

machinery, made with the use of low-quality diamonds, for scientific-technical sphere and jewelry production.

Investor's involvement 100%Project detailedness There are 2 patents received. Business plan – being detailed.

CEO of an organization implementing the project

Pavel Pavlovich SHAMAEV, Director, Scientific-research enterprise FRAMEZIT

Contacts: 677007, Yakutsk, Lenin Ave., 39, office 18

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Tel. +7 (4112) 33-65-66е-mail:[email protected]

78. Project name Development and promotion of a regional portals network in Russian and CIS cities basing on Ykt.ru network's technology and know-how

Location Yakutsk, Sakha Republic (Yakutia) Project initiator Company with limited liabilities SAKHA INTERNET NEW

TECHNOLOGIES CompanyProject characteristics The project is aimed at deploying multi-service information portals in

regions of the Russian Federation, ensuring large number of visitors and gaining profit from advertisement and Internet-services, high capitalization of portals.Type of product:- Multi-service regional Internet-portals - Accompanying businesses – Internet-services, electronic trade,

interactive entertainments.Major advantages of the portals:- high science linkage of the modules and innovative solutions enabling the system's efficient operation;- high complexity and capital intensity of implementing similar solutions on the Russian market, which ensures its competitiveness;- distributed operation model provides for high-level scalability of the system with low costs for server equipment;- possibility to sell media and context Internet advertisement, the most promising type of advertising.In order to develop portals in the Russian regions we involve partners out of regional Internet providers. SAKHA INTERNET NT Company provides server equipment, software, promotion know-how, content, consulting and methodological support. In 2010 the portals are launched in the cities of Khabarovsk, Irkutsk, Ulan-Ude, Krasnoyarsk, Petropavlovsk-Kamchatsky, Blagoveshensk. Next in the line: Astrakhan, Vladivostok, Norilsk, and others.The business plan assumes 20 new portals until 2012.

Volume of investment Subject to negotiationsInfrastructure available Project's strategic partners providing technical infrastructure:

TRANSTELECOM, SIBTELECOM. Since 2011, negotiations are being held with DALSVYAZ Company.

Infrastructure required Not required

Project cost RUR 56 m in 2010 prices ($ 1.9 m)Implementation period 2 years

IRR -NPV -

Payback period 3 yearsMarkets Advertisers based in the regions where the portals are located. Users of

the Internet services, interactive entertainments from the portal visitors.

Investor's involvement Possible assigning of a share in the project. Cost and size of a share – to be negotiated.

Project's detailedness A portal solution ready to be deployed. Business plan. Standard

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contracts, layouts, banners, videos, etc. Promotion know-how.CEO of an organization

implementing the projectDirector Arsen Grigorievich TOMSKY

Contacts: 677000, Yakutsk, per. Glukhoi 2/1Е-mail: [email protected]

79. Project name Production of autoclaved concrete from local raw materials protected as a know-how for construction of housing and production buildings

Location Yakutsk, Sakha Republic (Yakutia) Project initiator Engineering and Technical Faculty and Industrial Park of the Arctic

Innovative Center, M.K. Ammosov NEFUUnder program on “Development of innovative infrastructure of M.K. Ammosov North-Eastern Federal University (NEFU) “Arctic Innovative Center” there is being created a small innovative enterprise (SIE) OOO Stroikomposit with participation of M.K. Ammosov NEFU.

Project characteristics Concrete-foam or composite blocks (concrete-foam layer from two sides, polystyrene foam) have low firmness and durability. By its physical and technical characteristics, autoclaved foam concrete is the optimum construction material in the North. Autoclave foam concrete blocks may be used as constructional and insulating wall materials when making low-rise buildings. When used in multi-layer wall constructions and ventilated facades in cast-in-place reinforced concrete frame buildings, autoclave foam concrete can be used not only as undercoating layer, but as an insulating layer, as well, thus reducing thickness of the main insulator (polystyrene foam and basalt wool boards) and enhancing the building's thermal stability. Besides, autoclaved foam concrete blocks are used as partition slabs, considerably reducing load on the floor and the foundation, consequently. Production of autoclaved foam concrete in volume of 9,000 cub.m a year (35 cub.m a day) from local raw materials protected as a know-how. The equipment is a technological line with capacity of 35 cub.m of foam concrete a day. The main advantage of autoclave processing is quick curing of the product, better durability, improved performance of the facility.

Volume of investment At least RUR 60 m in 2010 prices ($2,1 m), of them NEFU RUR 42,8 m

Infrastructure available On the initial stage, the project uses infrastructure of Engineering Department and Industrial Park, Arctic Innovative Center, M.K. Ammosov NEFU.

Infrastructure required Under project's intensive development, the infrastructure required is determined together with investors and partners.

Project cost To be determined together with investors and partnersImplementation period To be specified with investor

IRR To be specified with investorNPV To be specified with investor

Payback period To be specified with investor

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Markets By the year 2015, the demand in the Sakha Republic (Yakutia) may reach 61.0 m reference bricks; by 2020 – 76.1 m units.To be used to construct the NEFU facilities (a library for 3 million books in the city of Yakutsk; a studying building of 34 ths sq.m; the Medical Institute's buildings; a dormitory for 941 beds in quarter 67 in Yakutsk, etc.).

Investor's involvement Volume of attracted investment and resources from the partners and investors: at least 40% of NEFU investments

Project's detailedness Business proposalCEO of an organization

implementing the projectRoman Romanovich NOGOVITSYN, Director, Arctic Innovative Center, M.K. Ammosov NEFU

Contacts: Arctic Innovative Center, M.K. Ammosov NEFU677000, Yakutsk, Kulakovskogo Str., 42, office 110Tel./fax +7 (4112) 32-03-89, е-mail: [email protected]

80. Project name Manufacturing of light steel thermal profiles with improved cross-section shapes and implementation of new technologies for assembling exterior filler structures in frame construction

Location Yakutsk, Sakha Republic (Yakutia)

Project initiator Engineering and Technical Faculty and Industrial Park of the Arctic Innovative Center, M.K. Ammosov NEFU, the project's partner – OOO Adgesia

Project characteristics Innovative features:Light steel thin-wall constructions (LSTW) use cold-bent profiles of open and closed cross-section.Preliminary design engineering with the use of up-to-date software (including 3D modeling) significantly reduced the steel construction weight, consequently, decreasing cost of construction, as well as work period. Integration of space modeling (automatic compilation of project documentation) with automatized production of constructive elements enables manufacturing of fully identifiable fragments, with some allowance, which are assembled on a construction site within short period of time. LSTW offer light weight along with durability, stability (especially for seismic load), simplicity and easiness of assembling, combined bearing and filling functions. All these features increase labor efficiency by 1.5-2 times and bring the technical level of metal construction industry nearer to machinery production.

Volume of investment At least RUR 29.9 m ($ 0,8 m), including NEFU RUR 16.35 m in 2010 prices.

Infrastructure available On the initial stage, the project uses infrastructure of Engineering Department, OOO Adgesia and Industrial Park, Arctic Innovative Center, M.K. Ammosov NEFU.

Infrastructure required Under project's intensive development, the infrastructure required is determined together with investors and partners.

Project cost To be determined together with investors and partnersImplementation period To be determined together with investors and partners

IRR To be determined together with investors and partners

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NPV To be determined together with investors and partnersPayback period To be determined together with investors and partners

Markets Development potential of OOO Adgesia MK stems from implementation of the state target programs, including a subprogram on housing construction; development of agriculture; social facilities construction.

Investor's involvement To be negotiated. The volume of investment and resources from patners and investors: at least 40% of NEFU investment.

Project's detailedness Business proposalCEO of an organization

implementing the projectRoman Romanovich NOGOVITSYN, Director, Arctic Innovative Center, M.K. Ammosov NEFU

Contacts: Arctic Innovative Center, M.K. Ammosov NEFU677000, Yakutsk, Kulakovskogo Str., 42, office 110Tel./fax +7 (4112) 32-03-89, е-mail: [email protected]

Small and Medium Business Projects

81. Project name Construction of Technopark in Neryungri Location Neryungri, Sakha Republic (Yakutia)

Project initiator Ministry of Entrepreneurship and Tourism Development of the Sakha Republic (Yakutia)

Project characteristics 1. Training of specialists and entrepreneurs;2. Formation of innovative teams;3. Production and delivery to the market of high technologies, competitive pro-duction, software;4. Creation and development of infrastructure and supporting environment of highly-technological business;5. Formation of innovative, investment climate and culture of entrepreneurship in the region.

Volume of investment RUR 273 m (USD 9,6 m) Infrastructure available

The territory of the technopark is located in the south-eastern part of Neryuingri in close proximity to the acess roads and power supply and communal communications, near the interregional main roads

Infrastructure required Not required Project cost RUR 273 m Terms of implementation

Until 2012

IRR - NPV - Срок окупаемости 20 years Рынки сбыта Sakha Republic (Yakutia), Russian regions and foreign countries Investor’s involvement

100% investor

Project detailedness Design estimates available, construction is conducted CEO of an organization

Minister of Entrepreneurship and Tourism Development of the Sakha Republic (Yakutia) E.I. KORMILITSYNA

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implementing the projectContacts 18 Kirova Str., Yakutsk, 677988, tel. (4112) 42-13-27; fax 34-27-65

http://www.minpred.ru Е-mail: [email protected]

82. Project name Computer games creation Location Yakutsk, Sakha Republic (Yakutia)

Project initiator Limited Liability Company «Sulus Games»Project characteristics 1. Creation and sales of games for social networks like Facebook, VContacte

2. Creation and sales of games for mobile devices like iPhone, iPad, Google An-driod

Volume of investment RUR 20 m in 2011 prices (USD 0,7 m) Infrastructure available

There are production facilities, computers and creation technologies

Infrastructure required Not required Project cost - costs of creating 3 games for social networks RUR 10 m

- costs of creating 5 games for mobile devices RUR 10 m Terms of implementation

2 years. Project’s life cycle is 10 years

IRR 150 %NPV RUR 15 000 Payback period 2 years Markets World Investor’s involvement

Credit resources

Project detailedness There is a business plan, own technologies of the game’s development, established process of production development, contracts with major market players, well-known brand Sulus Games, 7 games have been produced, 8 are under development, 5-year experience of the team

CEO of an organization implementing the project

President of LLC «Sulus Games» Alexei Alexeevich Ushnitsky

Contacts 677000, Yakutsk, 1/1 Oktyabrskaya Str., office 501, office phone (4112)33-50-25e-mail: [email protected]

83. Project name Launching a facility for production of building materialsLocation Megino-Kangalassky region, Sakha Republic (Yakutia)

Project initiator Private entrepreneur (PE) M.I. KaplinProject characteristics Entrepreneur Kaplin can supply lumber to the construction sites of

Tyungulu village and the neighboring areas (a sports and recreation center, a hospital). There is a growing demand for lumber due to gasification of the village Tyungulu and other close settlements, as well as intensive building in the private sector.In perspective, it is possible to supply lumber to enterprises and population of adjacent regions (Ust-Aldansky, Churapchinsky,

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Tattinsky).For future development and expansion the following is required:- MTZ-82 based loader;- 20-ton truck;- timber processing equipment with capacity of 9.0 ths cub.m.

Volume of investment RUR 10.5 m in 2011 prices (USD 0.35 m)Infrastructure available The enterprise is situated in the settlement of Nizhny Bestyakh, the

administrative center of Megino-Kangalassky region. It is a large transport hub with:- river ferry Nizhny Bestyakh - Yakutsk;- cargo berth and electric grid infrastructure; - federal motorway “Lena” and “Kolyma”;- in future – a railroad hub.

Infrastructure required Not required

Implementation period 2012 - 2013, project life cycle 25 yearsCost of project RUR 10.5 m

IRR -NPV RUR 1.650 m

Payback period 3 yearsMarkets Megino-Kangalassky region, other regions of the Sakha Republic

(Yakutia) across the river from YakutskInvestor's involvement Share in business, lent resources – RUR 9 m.

Project detailedness Design estimates, business plan, work experience.CEO of an organization

implementing the projectPrivate entrepreneur Milenty Osipovich KAPLIN

Contacts 678075, Sakha Republic (Yakutia), Megino-Kangalassky region, village of Tyungulu, Ozernaya Str., 6Tel. +7 (411-43) 2-34-79, cell # +7 (914) 2908804

84. Project name Roundwood logging and saw timber production in Chapanda Location Ust-Maisky region, Sakha Republic (Yakutia)

Project initiator OOO Timber Logging Company DIAMANTERProject characteristics OOO Diamanter focuses on industrial wood logging and processing, as

well as construction of low-rise wooden houses. Larger volume of wood logging requires purchase of modern wood logging equipment and timber carriers, as well as timber processing equipment.

Volume of investment RUR 60.0 in 2010 prices ($ 2 m),including RUR 45.0 m ($ 1.5 m) – borrowed funds, RUR 15.0 m – own funds

Infrastructure available The logging and lumber production site is located 40 kn from the settlement of Belkachi, Ust- Maisky region, Sakha Republic (Yakutia). The industrial facilities are located in the city of Yakutsk, the settlement of Nizhny Bestyakh. Chappanda site. The site has a 160kV diesel station. The mobile round-saw bench, set at Chapanda site, has capacity of up to 1.5 ths cub.m of round timber a month.

Infrastructure required Approach roads.Implementation period 2011 - 2012, project life cycle 25 years

Cost of project RUR 60 m IRR Being calculated

Being calculatedNPVPayback period 3 years

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Markets Domestic market of the Sakha Republic (Yakutia)Investor's involvement Share in the charter capital

Project detailedness Business planCEO of an organization

implementing the projectAlbert Titovich ZAKHAROVDirector of OOO Diamanter

Contacts 677004, Yakutsk, Markhinka Str., 1 «А».Tel. +7 (4112) 40-30-21, cell # +7 (914) 2705991е-mail: [email protected]

85. Project name Production of synthetic motor fuels from Kharbalakh field coal

Location Village of Kharbalakh, Tattinsky region, Sakha Republic (Yakutia)Project initiator Administration of Tattinsky region, Sakha Republic (Yakutia)

Project characteristics Purchase of a production facility for coal processing with a tank farm. This facility would enable production of a synthetic motor fuel and liquified hydrocarbon gas from processes coal of Kharbalakh field, using the technology of fast thermal decomposition, in order to supply regions of the Sakha Republic (Yakutia) across the Lena River from Yakutsk.

Volume of investment RUR 387.11 m in 2010 prices ($13,6 m)Infrastructure available OAO TELEN has a license for Kharbalakh coal field development.

The field's capacity guarantees the sufficient volume for processing. Crashing and sorting equipment is owned by OAO TELEN.

Infrastructure required Buildings: a processing facility with a tank park, co-generation of minimal capacity of 1.0 mW, automatic management system, gas-filling station with a refuelling point, industrial laboratory, equipment for gas liquifying;Transport: gas truck, quarry dump truck, loader, escavator;Land plot of 1.5 ha.

Implementation period RUR 387.110 mCost of project 3 years

IRR 59.5% NPV RUR 453.43 m

Payback period 5 yearsMarkets Regions of the Sakha Republic (Yakutia) across the river from

YakutskInvestor's involvement 100%

Project detailedness Business plan

CEO of an organization implementing the project

Prokopy Dmitrievich RAKHLEEV,Director, OAO TELEN

Contacts 678666, Sakha Republic (Yakutia), Tattinsky region, village of KharbalakhTel. +7 (41152) 24-371, 24461, fax 24401.e-mail: [email protected]

86. Project name Construction of road service facilities at public motorwaysLocation Yakutsk, Aldansky, Verkhnevilyuisky, Megino-Kangalassky,

Neryungrinsky, Suntarsky, Mirninsky, Churapchinsky, Tomponsky

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and other regions, Sakha Republic (Yakutia)

Project initiator Ministry of Entrepreneurship and Tourism Development of the Sakha Republic (Yakutia)

Project characteristics Road service facility of 3rd type includes a motel for 20 beds, cafe for 30 people, minimarket, service station, heated parking for cars and trucks. The gasoline station consists of the operator's cabin with necessary conveniences, two tanks of 10 cub.m and one tank of 20 cub.m; it is designed to operate at temperatures down to -60 C. Heating will be supplied by a module boiler unit with capacity of 1.6MW, using gas, reduced crude, oil, diesel and solid fuel.At VILYUI federal public motorway – the territory of the city of Yakutsk (25th km), Verkhnevilyuisk region (670th km, v. Khoro), Nyurbinsky region (790th km, t. Nyurba), Suntarsky region (866th km, v. Sheya or 870th km, v. Kutana), Mirninsky region (1151th km, s. Novy);At KOLYMA federal public motorway – being approved;At LENA federal public motorway – being approved due to reconstruction works;4. At public motorways of republic's and municipal levels – in accordance with resolution of the Sakha Republic (Yakutia) government №986-р of 6 September 2010 “On recommended scheme of distributing road service facilities at public motorways in the Sakha Republic (Yakutia)”.

Volume of investment RUR 51.48 m in present prices of 2010, 2 quarter ($1.81 m)Infrastructure available Transport infrastructure Infrastructure required Electric power grid and engineering infrastructure

Project cost RUR 17.28 m in the current prices of 2010, 2 quarter (cost of each complex)

Implementation period 2012 - 2016, the project's life cycle is over 25 yearsIRR Being calculatedNPV Being calculated

Payback period Being calculatedMarkets Municipal units, where the public motorways run: KOLYMA federal

motorway – five units, namely Megino-Kangalassky, Churapchinsky, Tattinsky, Tomponsky and Oimyakonsky regions; LENA federal motorway – four units, namely Neryungrinsky, Aldansky, Khangalassky, Megino-Khangalassky regions; VILYUI federal motorway – six units, namely Gorny, Vilyuisky, Verkhnevilyuisky, Nyurbinsky, Suntarsky and Mirninsky regions.

Investor's involvement An investor is required for implementation of the project. The project is to receive the state support under the republic's target program “Development of entrepreneurship and tourism in the Sakha Republic (Yakutia) in 2012-2016”.

Project detailedness The project documentation is developed for “Complex of road service facilities”, including architectural and construction solutions, heating and ventilation, water supply ans sewage, electric power supply, power equipment, designs and estimates.

CEO of an organization implementing the project

Minister of Entrepreneurship and Tourism Development of the Sakha Republic (Yakutia) Yekaterina Ivanovna KORMILITSYNA

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Contacts: Ministry of Entrepreneurship and Tourism Development of the Sakha Republic (Yakutia)677018, Yakutsk, 18 Kirova Str. Tel: +7 (4112) 34-46-06, 34-49-59е-mail: [email protected] http://www.sakha.gov.ru/minpred

Tourism

87. Project name Tourist recreation cluster in the Sakha Republic (Yakutia) “The Northern World”

Location Yakutsk, Sakha Republic (Yakutia)Project initiator Ministry of Entrepreneurship and Tourism Development of the Sakha

Republic (Yakutia)Project characteristics The project is being implemented in central Yakutia, 33 km from the

city of Yakutsk, on the left Lena River bank, on the natural landscape park “Meche-sise”; total area – 5.9 ths ha. The project site is situated in two neighboring municipal units: the city of Yakutsk and Khangalassky region (the Tabaga Cape). It is one of the most picturesque and geographically favorable places on the Lena River in terms of tourism development. The Northern World project will benefit from unique natural and climatic conditions: extremely low temperature and permafrost, mineral water springs.The project includes construction of the following sites: the World Mammoth Center, museum and research institution, The Kingdom of Permafrost underground complex, the Northern Mosaic and the Town Estates ethnographic parks, all-the-year-round ski resort, the “Lenskie zori” sanatorium, an amusement park and an accommodation complex with a 5-star hotel (100 people), a 3-star hotel (100 people) and a cottage camp (100 people).

Volume of investment RUR 5106 m in 2011 prices ($179.9 m), including: - the RF budget – RUR 943 m;- the SR(Y) budget – RUR 818 m;- local budgets – RUR 5 m- private investment – RUR 3340 m.

Infrastructure available By the year 2013, all-type transport communications will meet on the territory of the cluster: railroad, motorway, aviation and river transports. The external infrastructure of the project is financed from the Federal and the republic’s budgets: construction of a railroad to the city of Yakutsk, a railroad-automobile bridge across the Lena River, construction of a new international airport terminal, a railway station, development of the Yakutsk river port, reconstruction and construction works at the federal motorways: “Lena”, “Kolyma”, “Vilyui”; regional-level roads: “Amga”, “Umnas”, “Yana” and “Kobyai”. The project site has convenient access by asphalt roads leading directly to the objects. The distance to the river port – 36 km; the nearest railroad station – 23 km; the international Yakutsk airport – 40 km. The territory has reliable power and gas supply, mobile communication infrastructure, mineral water springs.The project site has convenient access by asphalt roads leading

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directly to the objects. The territory has reliable power and gas supply, mobile communication infrastructure, mineral water springs.In future, with construction of the railroad-automobile bridge across the Lena River, it is planned to reconstruct a motorway to the city of Yakutsk, making the site even more accessible; it will also connect the city with a large number of regions across the river. Also in future, it is planned to construct a city water intake in close vicinity, which will solve the problem of water supply to the project facilities.

Infrastructure required The project includes construction of 12 running kilometers of internal roads, ensuring transport communication inside the zone, and about 3 km of an access road; construction of a gas vent and gas boiler-house for autonomous heat supply; a power transmission line. Water supply will be provided from the Tabaga water intake; sewage will be collected in detritus tanks, pumped out and taken out of the zone.

Implementation period 2011 - 2017Cost of project RUR 5106 m

IRR 16.9%NPV RUR 2033.2 m

Payback period 6 yearsMarkets Domestic tourism market of the SR(Y) and the RF. International in-

coming tourism market, mostly from the Asian Pacific countries. Investor's involvement Implementation of the project requires investment of RUR 5100 m,

including: the RF budget – RUR 943 m (infrastructure and the World Mammoth Center); the regional budget – RUR 818 m (infrastructure and the Town Estates and the Northern Mosaic parks); the municipal regions budgets – RUR 5 m (infrastructure); extra-budget funds (investors) – RUR 3,340 m (all-the-year-round ski resort, the Kingdom of Permafrost, the Northern Mosaic and the Town Estates parks, the accommodation complex).Each object may be considered a separate investment project.

Project detailedness Approved by resolution of the Sakha Government of May 27, 2009 № 236, Concept of the project’s implementation in the SR(Y), feasibility study and design estimates (business plan) were considered and approved by the Ministry for Economic Development of the RF. The expertise was conducted by the State Department of Expertise of the Sakha Republic (Yakutia), Sakha Academy of Sciences. The revised design estimates were approved by resolution of the Economic Council under Sakha Government of 20 January 2010, № 74/3. The cluster borders – outlined; the cluster draft layout – designed; the project’s expertise by leading foreign consulting agencies – done; the World Mammoth Center exposition and scheme (layout, architectural and scientific) – complete. The design estimates – completed. The project has been approved by the IV Meeting of the Expert Board on regional investment policy under the Ministry of Regional Development of the RF and enlisted as a priority project under the Program of inter-regional cooperation of the Russian Far East and Eastern Siberia with the north-east of the People’s Republic of China (2009-2018).

CEO of an organization implementing the project

Minister of Entrepreneurship and Tourism Development of the Sakha Republic (Yakutia)

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Yekaterina Ivanovna KORMILITSYNA

Contacts Ministry of Entrepreneurship and Tourism Development of the Sakha Republic (Yakutia)677018, Yakutsk, 18 Kirova Str. Tel: +7 (4112) 34-46-06, 34-49-59е-mail: [email protected] http://www.sakha.gov.ru/minpred

88. Projects name Tourist recreation cluster in Khangalassky region of the Sakha Republic (Yakutia)

Location Khangalassky region of the Sakha Republic (Yakutia) Project initiator Government of the Sakha Republic (Yakutia),

Khangalassky Region AdministrationProject characteristics Creation of an investment ground and a tourism center for attracting

investment into traveling industry under public-private partnership. The main purpose is to convert the region into the central tourism place in the Sakha Republic (Yakutia).Creation of four investment sites using facilities of multi-functional tourist complexes: “Coachmen’s village Yelanka”, “Samartai”, “Buluus”, “Orto Doidu”.

Volume of investment RUR 348.09 m in 2009 prices ($12.3 m), including: RUR 52.3 m for infrastructure development; RUR 140.25 m for tourist recreation sites; RUR 155.5 m for furniture and equipment.

Infrastructure available The project site has convenient access by asphalt roads leading directly to the objects. The territory has partial power and gas supply. In future, with construction of the bridge across the Lena River, it is planned to reconstruct a motorway to the city of Yakutsk. “Coachmen’s village Yelanka”: - a station house museum, various buildings to show old coachmen’s lifestyle, a river mill; convenient access roads; a village of the same name with infrastructure. “Buluus”:- temporary constructions like pavilions, tables and benches. “Orto Doidu”: - a restaurant for 120 people, a hunter's cabin for 25 people, sliding slopes, a dance-floor for 300 people, an open-air café, a ritual site for celebrating the national summer festival Erkeni Ysyakh with 16 dwellings.“Samartai”: - operating “Samartai” ethnographic museum.

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Infrastructure required For all-the-year-round functioning, each of the complexes requires:4. Internal and access motorways;5. Gas vents;6. Gas boiler-house;7. Heat supply network;8. Transformation station;9. Electric grids;10. Water supply and sewage network;11. Communications means;12. Viewing point.

Implementation period Stage 1 – 2010-2019 Construction of objects and infrastructure.

Cost of project RUR 308 m IRR 49.3 %NPV RUR 1002.8 m

Payback period Average payback period – 3 years and 7 months, including: “Coachmen’s village Yelanka” – 3 years 5 months; “Buluus” – 3 years 4 months; “Orto Doidu” - 3 years 9 months; “Samartai” – 2 years 9 months.

Markets The SR(Y) domestic tourism and in-coming tourism: Asian Pacific countries (Japan, Korea, China), Germany, the USA, Great Britain, France.

Investor's involvement Construction of the cluster objects – on investor’s account

Project detailedness Investment project “Creation of tourist recreation investment sites in Khangalassky region of the Sakha Republic (Yakutia) is developed;Concept of “Coachmen’s village Yelanka” development was approved by the Resolution of the Sakha Government of October 19, 2009 № 1006-p;General Plan of “Coachmen’s village Yelanka” tourist recreation cluster was developed and approved by the Resolution of the Deputies Session of Malzhagarsky 2nd nasleg of 23.12.2009.

CEO of an organization implementing the project

Minister of Entrepreneurship and Tourism Development of the Sakha Republic (Yakutia) Yekaterina Ivanovna KORMILITSYNA

Contacts Ministry of Entrepreneurship and Tourism Development of the Sakha Republic (Yakutia)677018, Yakutsk, 18 Kirova Str. Tel: +7 (4112) 34-46-06, 34-49-59

89. Project name Tourist complex "Tuostaakh- Kihilyakh"

Location Tourist complex is located 90 km from the regional center Batagay settlement or 40 km from Betenkes settlement of Verkhoyansky region. On the left bank of a mountain river Tuostaakh 8 km from the foot of the mountain Kihilyakh.

Project initiator OOO Arctika

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Project characteristics Full service company OOO Arctika launched a tourist route “Sacred Mountains of Kihilyakh” in 2007. In 2011, at the international competition “Best Goods and Services of Eurasia – GEMMA” it was awarded with the highest award - the Golden GEMMA in the Far Eastern Federal district. In 2008, at the All-Russian competition “Leaders of tourist industry” it became a winner in the category “Best Regional Tourism Company”.Mysterious Kihilyakh Mountains (Mountain of the Gods, Northern Shambala, the Promised Land) are located in the northern rivers Yana and Adycha interfluve area, and are a part of the Chersky Range system. Flat plateau (elevation - 1081 m above sea level) is covered with dense rows of granite rocks, statues of the most unexpected forms and whimsical compositions. By Sakha belief, these maternal rocks crystallize the magic power of Aar Aiyy- Upper gods of Sakha people. Numerous travelers from Russia and other countries recognize this miraculous mountain as the Planet’s Energy Center. In the pristine wilderness a tourist base was built on the shore of a crystal clear mountain river Tuostaakh with a comfortable modern hotel for 30 beds, consisting of 2 and 3-bed rooms, cafe and dining area, Sakha balagan, sports grounds, a Russian sauna and a shower. The tour offers a wide range of tourist services, such as: spinning trout, grayling and lenok fishing; dizzying kayaking tours; breathtaking boat and motor boat cruises; hunting rabbits, ducks, and large animals (mountain sheep-Chubuku, elk, deer, bear); fascinating exotic and ethnographic tours of Chersky Range; gathering berries and herbs; visiting historical and paleontological museum; search for the remains of mammoth tusks, search for the Yakut Yeti - Chuchuna; research expeditions to study the mysterious region; delicious national cuisine, etc.

Volume of investment RUR 30 m ($1,1 m)

Infrastructure available - horse breeding base for kumis production, showing famous Verkhoy-ansk horses and for the work of the children's production camp.

- building for medical purposes: for diagnosis, treatment procedures and traditional health improving trainings.

- hunter’s cabins for recreation and fishing.- stationary hotel complex on Kihilyakh Mountain.- watchtower – fortress at the camp site and on Shaman-Tree passage - floating-terrain vehicle- river - airboat for 6-12 people.- ATVs- Jet skis- Catamarans- Motoplan- water cannons

1. Regular passenger Yakutsk-Batagay-Yakutsk flights are operated by Po-lar Airlines and Buryat Airlines companies (total 10 flights per week). In the regional center Batagay there is a hotel, cafes and restaurants.

2. Batagay-Betenkes - year-round ground motorway. Transportation of tourists by the minibuses. In Betenkes in 2010 a new building of historical

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and paleontological museum was built. 3. Betenkes - Tuostaah- Kihilyakh Camping - transportation of tourists by Ladoga and Yamaha motor boats.4. The camp site is equipped with:- Hotel of 2-3-bedrooms for 30 people, with the area of 22 x 10 sq.m.- Cafe - dining room, with the area of 8 x 7 sq.m.- Residential building for 8 staff, the area of 6 x 6 sq.m.- Russian sauna with a shower and laundry area. 7 x 5 sq. m.- Sheded icebox with a capacity of 3 x 3 x 4 m³- Warm toilet, the area of 3 x 4 sq.m- Warehouse, the area of 4 x 8 sq.m.- Sakha balagan for 7 people, the area of 6 x 6 sq.m.

Infrastructure required Power and communal infrastructure Implementation period RUR 30 m Cost of project 2 years IRR Under detalization NPV Under detalization Payback period 5 yearsMarkets Domestic and incoming tourism Investor's involvement State support, crediting, participation in capital Project detailedness Operating tourist object. 652 tourists have visited the Tuostaakh-Kihilyakh

route for 4 seasons. Gross income made over RUR 10 million.CEO of an organization implementing the project

General Director, OOO ArctikaVladmir Khristoforovich TCHIRIKOV

Contacts www.kisilyakh.ykt.ru 8-914-22-74-500

HEALTHCARE

90. Project name Republican Oncological Dispensary for 115 beds with radiology unit for 40 beds and maintenance unit (1 and 2 stage)

Location Yakutsk, Sakha Republic (Yakutia)

Project initiator Healthcare Ministry of the Sakha Republic (Yakutia)

Project characteristics Oncological diseases take one of the leading places in the structure of diseases of Russian people. For 10 years the indices of the malignant tumors sick rate have grown by 2,1 times (to 213,6 per 1000 people) in the Sakha Republic. Annually over 25,7 thousand people are diagnosed with neoformations of different localization; over 2000 of them are malformations. Oncological diseases are one of the main reasons of primary disability - 11,2% and mortality 13,4 % of all death cases.Construction of Republican Oncological Dispensary for 115 beds with radiology unit for 40 beds and maintenance unit (1 and 2 stage)

Volume of investment RUR 1 995,9 m ($ 70,3 m)

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Infrastructure available Required infrastructure available

Infrastructure required Not required

Cost of project RUR 1 995,9 m

Implementation period

Investor’s involvement

2012-2015

10-year loan with 3-year period payment by installments

Project detailedness 1. The Sakha Government has completed the ground-work (pillars for the 1st stage construction) with a balance cost of RUR 13,5 m in 2005 prices.2. The design estimates of the 1st stage were developed in 2008 (de-sign organization – Sakhapoject OAO) and has a positive opinion of the State Expertise № 14-1-5-0237-08 of 25.09.2008, and is ap-proved by the order of Sakha Construction Ministry of 30.09.2008 № 174.3. In 2008 the contract was signed between the Sakhaproject OAO and the Institute of Medical Physics and Engineering in Moscow for the development of MTT (being completed). Based on it, there will be developed the terms of reference.

CEO of an organization implementing the project

Healthcare Minister of the Sakha Republic (Yakutia) Alexander Vasilievich GOROKHOV

Contacts Healthcare Ministry of the Sakha Republic (Yakutia)677011, Yakutsk, 30 Lenin Ave. Tel.: +7 (4112) 42-40-22 Fax: (4112) 42-07-72E-mail: [email protected] Medical Director of Yakutsk Republican Oncological Dispensary Petr Dmitrievich KARATAEVYakutsk, 3/2 Sverdlova Tel.: +7 (4112) 43-41-28; Fax: (4112) 22-41-72

E-mail: [email protected]

91. Project name Republican Cardiological Dispensary in Yakutsk (2 stage – cardiovascular center for 150 beds)

Location Yakutsk, Sakha Republic (Yakutia)

Project initiator Healthcare Ministry of the Sakha Republic (Yakutia)

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Project characteristics The diseases of cardiovascular system take one of the leading places in the structure of structure of diseases of Russian people.Between 1998 and 2006 in the Sakha Republic the indices of blood circulatory system diseases have grown from 96,4 to 164,8 per 1000 adults. Annually about 5000 people are diagnosed with ischemia; 600 of them having acute myocardial infarction. Blood circulatory system diseases are the main reason of temporary disability (9,9%), primary disability (24,1%), mortality (41,3% of all death cases). Hospital lethality of acute cardiovascular catastrophes (myocardial infarction, sudden heart death) in the Sakha Republic fluctuates from 11 to 20%. Construction a Cardiological dispensary in Yakutsk

Volume of investment RUR 1508,9 m ($ 53,1 m)

Infrastructure available Required infrastructure available

Infrastructure required Not required

Cost of project RUR 1508,9 m

Implementation period 2012-2014

Markets Population of the Sakha Republic (Yakutia), Far East Federal District regions

Investor’s involvement 10-year loan with 3-year period payment by installments

Project detailedness Design estimates are under development (to be completed in Quarter IV of 2011). Graphic design is ready.

CEO of an organization implementing the project

Minister of Healthcare of the Sakha Republic (Yakutia) Alexander Vasilievich GOROKHOV

Contacts Healthcare Ministry of the Sakha Republic (Yakutia)677011, Yakutsk, 30 Lenin Ave. Tel.: +7 (4112) 42-40-22 Fax: (4112) 42-07-72E-mail: [email protected]

92. Project name Support and development of pharmaceutical industry in the Sakha Republic (Yakutia) until 2020

Location Yakutsk, Sakha Republic (Yakutia)

Project initiator Healthcare Ministry of the Sakha Republic (Yakutia)

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Project characteristics Construction of warehouses and microbiological laboratory for GUP SakhaMedProm

Volume of investment RUR 122,4 m ($ 4,3 million)

Infrastructure available Required infrastructure available

Infrastructure required Not required

Cost of project RUR 122,4 m

Terms of implementation 2012-2016

IRR -

NPV -

Markets Medical institutions and population of the Sakha Republic (Yakutia)RF regions

Investor’s involvement Budget of the Sakha Republic (Yakutia)

Project detailedness It is developed as a sub-program of the State Program “Development of Healthcare of the Sakha Republic (Yakutia) in 2012-2016”

CEO of an organization implementing the project

Yegor Yegorovich BORISOV – Head, GUP SakhaMedProm

Contacts Healthcare Ministry of the Sakha Republic (Yakutia)Sardana Makarovna TARABUKINA – Head, Medical technics Phar-macy Directorate, Sakha Healthcare Ministry, tel. (4112) 36-69-75; 42-53-28Ekaterina Ilinichna FYODOROVA – Deputy Head, GUP SakhaMedProm, tel. (4112) 47-52-06

Culture

93. Project name National innovative project on establishing a complex “The Land of Olonkho” of the Sakha Republic (Yakutia) “Olonkholand”

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Location Yakutsk, Sakha Republic (Yakutia)

Project initiator Government of the Sakha Republic (Yakutia), Yakutsk Administration

Project characteristics

On the terms of public-private partnership creating a national innovative complex of the Sakha Republic (Yakutia) “The Land of Olonkho”, as a self-sufficient urban innovation type in the historically sacred part of the city of Yakutsk - on the shore of the Lake Saysary with an emphasis on conservation, development, and visualization of cultural and spiritual component, civilizational values of the population.The main purpose of the cluster development is to create an innovative model of urbanized infrastructure in the conditions of permafrost of the Eastern Siberia and the Far East.Urban cluster “The Land of Olonkho” is a self-sufficient and self-sustaining new town within an existing one, with residents and infrastructure of the new technological order (ecological transport, IT-technologies, energy saving technologies, etc.) created with the purpose of applying modern technologies to solve problems of infrastructure organization in the permafrost area.The philosophy of the complex life activity is based on the traditional life experience of the Sakha people, whose livelihood was adapted to the conditions of permafrost and reflects this experience in the heroic epos–Olonkho that was recognized by UNESCO in 2005 as the intangible oral masterpiece of humanity.“The Land of Olonkho” complex appears as the center of Tuymaada valley comprising a technological park “Three Valleys”, in the future planned as a complex of three valleys in the Lena River middle stream -Erkeeni, Tuymaada and Ensieli. “The Land of Olonkho” should have a common structure, based on a common understanding of Olonkho as a cosmological model of the universe where man and nature, information and space interact. The territory of the complex is conventionally divided into three zones: lower, middle and upper worlds, in terms of having a readable image of the World Tree, with the apex directed to the south.

Volume of investment

Estimated cost of the complex construction – RUR 15 b ($ 525 million).

Infrastructure available

By the Decree of the President of the Sakha Republic (Yakutia) of April 26, 2010 № 1904, areas in Quarters 67 and 68 of Yakutsk with operating urban infrastructure were identified.

Infrastructure required

Electrical and communal loads are being estimated. 

Aproximate indices:- Total length of the hinged foot tracks - 2800 m- Total area of the main pedestrian routes and spaces - 7.9 ha- The total length of interdistrict driveways - 2500 m.- Total area of parking lots - 0.6 ha- Total area of the territory - 80, 4 hectares- The area of the 1st stage  construction - 20.7 ha- The area of landscape and recreation area - 2.0 ha

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- The area of ritual and ceremonial area - 2.7 hectares- The area of ethnographic zone of the city’s masters - 0.98 ha

Project cost RUR 15 b, including of the 1st stage – RUR 1, 35 b.

Terms of implementation

The initial stage (to 2012):• creation of the executive department, managing the project;• development of an integrated innovative-investment project’s plan;• identification of funding sources;• attraction of investors;• development of the Cluster’s general plan;• granting the project with the status of a large innovative-investment project on the federal level;• formation of the leislative base to realize the project;• designing and construction of the 1st stage of the Cluster’s objects;The 2nd stage (to 2015):• designing and construction of financial and business, cinema and multimedia centers, etc. The 3rd stage (to 2020):• designing and construction of the technological part of the project – production and residential Cluster’s modules.

IRR Under development

NPV Under development

Payback period Under development

Markets Sakha Republic (Yakutia), Far Eastern Federal District regions

Investor's involvement

Providing credit fundsPreliminarily, the share of borrowed funds for the construction can be distributed in the following proportions:- Budget funds - 50% (RUR 7.5 b, including the 1st stage – RUR 0, 675 b)- Borrowed funds - 50% (RUR 7.5 b, including the 1st stage – RUR 0, 675 b).

Project detailedness Concept of the national innovative project on the creation of “The Olonkho Land” Complex

CEO of an organization implementing the project

Minister of Culture and Spiritual Development of the Sakha Republic (Yakutia), Manager of the national innovative project “The Land of Olonkho ” of the Sakha Republic (Yakutia) Andrey Savvich BORISOV

Contacts Deputy Director, State Institution “Olonkho Theatre” Lena Valerievna FEDOROVAtel.: +7 (4112) 33-45-88, +8 (924) 1659522 cell www.olonkholand.ru, [email protected]

Nature Protection

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94. Project name Establishment of a nursery for rare and endangered species of Yakutia (Orto-Doidu)

Location Khangalassky region, Sakha Republic (Yakutia)Project initiator Ministry of Nature Protection of the Sakha Republic (Yakutia)

Project characteristics (goals, project

opportunities, brief description)

The project is developed with the aim of keeping and breeding rare and endangered animal species of Yakutia. At the moment, the republic has not a single nursery for breeding animal species enlisted in the Red Data Book of Yakutia. The Republic's Zoo ORTO-DOIDU, has been working for 10 years. It is a member of “Safeguarding of Cranes in Eurasia” and “Creating Reserve Populations of Siberian Grouse” programs (European-Asian Regional Association of Zoos and Aquariums); a member of the Northern Forum's “Northern Zoos Cooperation” working group. The following aims are to be fulfilled under the project:- accumulating and safeguarding the gene fund of local fauna protected species for further dispersal in natural habitat and reconstruction of vanishing natural populations;- participating in international programs on rare and endangered species breeding;- conducting study of rare animal species of Yakutia.

Volume of investment RUR 12.0 m ($0.4 m)Infrastructure available

(engineer, transport, land site)

Land site of 60 ha on the Lena River bedrock shore, infrastructure of the Republic's Zoo ORTO-DOIDU.

Infrastructure required 1,000 km long road, 1,000 m long power transmission line, industrial facility (for boiler house, laboratory, hatching apparatus, electrical control unit), food storage, enclosures for birds and ungulates, 1,135 m long fencing.

Cost of project RUR 24.0 mImplementation period 10 years

IRR -NPV -

Payback period -Markets Nature territories of the Sakha Republic (Yakutia)

Investor's involvement Participation in the implementation of the state environment protection projects

Project detailedness Requirements specification to develop the design estimates

CEO of an organization implementing the project

Luka Nikolaevich SAFONOV,Director, Republic's Zoo ORTO-DOIDU

Contacts Republic's Zoo ORTO-DOIDU Tel./fax +7 (4112) 22-52-59e-mail: [email protected]

95. Project name Wood bison keeping

Location Nursery farm №1 “Ust-Byotama”, Kangalassky region.Nursery farm №2 “Tympynai”, Gorny region

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Project initiator Government of the Sakha Republic (Yakutia). State Institution “Department of Biological Resources of the Ministry of Nature Protection of the Sakha Republic (Yakutia)”

Project characteristics Goal: Restoring the historic range of bison on the Eurasian continent and its preservation as a species in case of a force majeure situation on the North American continent.Contribution of the Sakha Republic (Yakutia) in the conservation of the rare species listed in the Red Data BookObjectives: Keeping bison breeding stock in the nurseries “Ust-Buotama” in the Lena Pillars Nature Park in Khangalassky region and “Tympynai” in Sinyaya Nature Park in Gorny region to receive a regular litter. Delivery of the second party of wood bison from Canada in 2011, and keeoing in the nurseries “Tympynai” and “Ust-Buotama” to pre-vent the inbreed processes in the existing herds of animals. Enlargement of pasture area of the nurseries “Ust-Buotama” and “Tympynai” by building additional enclosures. Monitoring of captive wood bison herd.

Volume of investment RUR 30.0 m ($ 21,1 m)

Infrastructure available There are two nurseries with infrastructure (personnel’s house, sauna, diesel station, garage, warehouse, etc.). Transportation available mostly in winter.

Infrastructure required Summer road to “Tympynai” nursery (Gorny region).

Project cost RUR 60, 1 m

Implementation period Years 2007 – 2011

IRR -

NPV -

Payback period Saving a vanishing species – wood bison – to restore its historical range and abundance will take several decades.

Markets -

Project detailednes

CEO of an organization

The project was approved by the Government of the Sakha Republic (Yakutia).

Head, State Institution “Department of Biological Resources of the Ministry of Nature Protection of the Sakha Republic (Yakutia)”

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implementing the project s

Yakov Semenovich SIVTSEV

Contacts Yakutsk, 14 Sverdlova Str. Reception 8(4112) 22-57-49Fax 8 (4112) 22-30-92

96. Project name Development of the Living Diamonds of Yakutia Nature Park Location Sakha Republic (Yakutia), Mirny, 11 km north-west to the city of

Mirny close to Mirny – Chernyshevsk motorway Project initiator Ministry of Nature Protection of the Sakha Republic (Yakutia) AK

ALROSA (OAO)Project characteristics Goal:

- to restore populations of wild ungulates;- to research the status of natural systems and develop a methodology of semi-free keeping of wild animals in the park;- to promote nature protection ideas;- to increase environmental awareness;- recreational activities. Objectives:- Conservation and improvement of environment within the Nature Park and in surrounding area;- Carrying out biotechnological activities to attract wild animals

and provide their protection;- Keeping the animals in the conditions close to their natural

habitat, to show the diversity of wildlife;- Distribution of natural science and propaganda of wildlife

protection ideas;- Organization of cultural recreation.

Volume of investment RUR 8, 7 mInfrastructure available From Tchuonalyr recreation facility to the nature park there is a

gravel road. Infrastructure required - Construction of power lines to the Living Diamonds of Yakutia the

Nature Park ;- Construction of road to the 2nd cordon;- Construction of semi-free enclosure for wild ungulates.

Project cost RUR 17, 4 mImplementation period 2007-2016 IRR -NPV -Payback period 30 years Markets Population of the Sakha Republic (Yakutia) and Russian regions Investor's involvement Participation in the implementation of the state environment

protection projectsProject detailedness The draft program “Operation and development of the Living

Diamonds of Yakutia Nature Park till 2014” was developed.The Board of Trustees for the development of the Living Diamonds of Yakutia Nature Park was established.

CEO of an organization implementing the

Director, Living Diamonds of Yakutia Nature ParkSergey Semenovich SIMONOV

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projectContacts 678170, Sakha Republic (Yakutia), Mirny, % Soldatova Str., office

16 Tel./fax: +7 (41136) 4-26-62, +7 (41136) 2-98-81e-mail: [email protected]

Creation of Special Economic Zones

97. Project name The concept of development of the municipal entity “Tiksi settlement” of the Republic of Sakha (Yakutia)

Location Tiksi – the administrative center of Bulun region of the Sakha Republic (Yakutia).Located beyond the Arctic Circle, on the shore of Tiksi Bay (Laptev Sea). Distance to Yakutsk: by land - 1694 km, by air - 1270 km, by water - 1703 km.

Project initiator Government of the Sakha Republic (Yakutia)

Project characteristics Goal - realization of the Russian national priorities in the Arctic on the basis of creating a sustainable socioeconomic environment in the region.Objectives - modernization and development of infrastructure of Tiksi settlement, taking into account the interests of science, conservation of unique Arctic ecosystems, development of traditional northern industries, safeguarding the national security

Volume of investment RUR 28 m ($ 1 m)

Infrastructure available

Northern sea port,Tiksi Airport

Infrastructure required Providing human resources,creating comfortable living conditions

Cost of project RUR 26 m

Implementation period 2010-2020

Investor's involvement -

Project detailedness A draft concept was submitted to the RF Government

CEO of an organization implementing the project

Minister of Federal and External Relations of the Sakha Republic (Yakutia) Valery Ivanovich MAXIMOV

Contacts Ministry of Federative and External Relations of the Sakha Republic (Yakutia)677011, 30 Yakutsk Lenin Ave. Tel.: +7 4112342441Fax: +7 4112 341939E-mail: [email protected]

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98. Project name “Creating a special industrial-production type economic zone in Yakutsk”

Location Yakutsk, the Sakha Republic (Yakutia)

Project initiator Government of the Sakha Republic (Yakutia)

Project characteristics Goal - to create economic and legal conditions for stabilization and dynamic development of diamond cutting and jewelry manufacturing as one of the major export-oriented manufacturing industries of the Sakha Republic (Yakutia).Objectives to be solved during the implementation of the SEZ:- removal of legislative and administrative restrictions for the development of diamond cutting and jewelry industries, construction in Yakutsk of the industrial infrastructure accommodating the full cycle of production from diamond cutting to the production of diamond jewelry. Taking into account the existing Sakha diamond cutting and jewelry manufacturing production capacities, as well as the existing and future demand and capacity of the Russian and world diamond market, the SEZ is planned to locate until 2030:- diamond cutting companies with a total project capacity of processing up

to 1.0 million carats of rough diamonds and production to 0.5 million carats of diamonds (1.35 billion USD) per year (processing of 155 thousand carats of rough diamonds from 2010, annual growth rate of processing - 8%);

- jewelry companies with a total project capacity of up to 0.7 million of jewelry pieces (1.1 billion USD) per year (production of 200 thousand jewelry from 2010, annual production growth rates - 7%);

- other local industries (furs, production of pieces of art, souvenirs, etc.)

Volume of investment RUR 3 574,3 m

Infrastructure available

Connection to Severnaya SS, 2 MVA electrical substation; independent 2,1 Gcal/h gas boiler house, gas supply to the gas boiler house is proveded from the distribution networks of Lenagaz OAO; connection to water supply networks of GUP Vodocanal (the connected capacity – 400 m³ per day), to increase the water pressure there are two booster pumps; wastewater pumping station; ATS lines of up to 50 numbers capacity.

Infrastructure required Access motorways to the checkpoints with a total length of 0,4 km (two drives).

Cost of project

Implemenation period

RUR 3 574,3 m

2013-2032

IRR 35,14%

NPV RUR 6776,9 m

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Investor's involvement Providing borrowed funds

Project detailedness Business plan of the investment project “Creating a special industrial-production type economic zone of diamond cutting and jewelry manufacturing in Yakutsk” is ready.

CEO of an organization implementing the project

Minister of Economy and Industrial Policy of the Sakha Republic (Yakutia) Mikhail Anatolievich OSIPOV

Contacts Ministry of Economy and Industrial Policy of the Sakha Republic (Yakutia) Address: 677000, Yakutsk, 28 Lenin Ave.

Теl.: (4112) 42-03-10

Fax: (4112) 42-10-89

Integrated Investment Projects of Non-diversified Localities

99. IIP name Integrated investment plan of development of the municipal en-tity “Vitim settlement” of Lensk region of the Sakha Republic (Yakutia) in 2011-2020.

Location Vitim settlement of the Sakha Republic (Yakutia) IIP contractor Administration of “Vitim settlement” municipal entity IIP characteristics Goal – mitigation of risks of the locality’s non-diversified economy

and creation of conditions for the sustainable development of the mu-nicipal entity’s economy.IIP strategic directions:1. Exploration and development of oil and gas fields 2. Development of agriculture 3. Upgrading of housing and community amenities and housing con-struction 4. Development of small and medium businesses 5. Development of social infrastructure 6. Settlement improvement Major undertakings, key IIP investment projects:1. Development of Talakan oil and gas condensate field 2. Infrastructure development of Chayanda oil and gas condensate field 3. Construction of Lena-Nepa-Lensk railroad line 4. Construction of airport complex in Vitim 5. Establishment of modern agro-industrial enterprise in Vitim 6. Improvement of living standards in the municipal entity 7. Development of small and medium businesses

Volumes and sources of IIP undertakings funding

Total – RUR 977 274,2 m

Terms and stages of imple-mentation of IIP key under-

I stage (short-term) - 2011-2012. Formation of institutional environ-ment and upgrading of engineering infrastructure.

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takings II stage (mid-term) – 2013-2015. Planned realization of the municipal entity’s resource potential, completion of investment phase of the pri-mary investment projects and programs.III stage (long-term) – 2016-2020. Dynamic development and diver-sification of economy and social sphere of the settlement.

Expected outcomes of IIP implementation

Planned development of the settlement as an urban-type settlement under the general plan of development. Achieving a stable situation in the social sphere.Enhancement of production capacity.Development of transportation and communication infrastructure. Improvement of the population well-being.

CEO of the organization im-plementing the project

Head of Administration of Vitim settlement of Lensk region Valery Matveevich FILIPPOV

Contacts Sakha Republic (Yakutia), Lensk region, 678150 Vitim, 45 Lenin Str.Phone: 8 (41137) 3-56-55, 3-53-41http://sakha.gov.ru/minecon/

100. IIP name Integrated investment plan of development of Dzhebariki-Khaya settlement of Topmonsky region in 2011-2020

Location Dzhebariki-Khaya settlement of Tomponsky region of the Sakha Re-public (Yakutia)

IIP contractor Administration of the municipal entity “Dzhebariki-Khaya settle-ment” of Tomponsky region

IIP characteristics Goal – secure the conditions for the sustainable socioeconomic devel-opment of the municipal entity, promotion of the prospective direc-tions of economic development and development of a set of measures for the sustainable economic growth, securing the population’s living standards.Major undertakings, key IIP investment projects:- Integrated development of Tomponsky mining area.- Development of coal industry.- Construction of 165 Mwatt Dzhebariki-Khaya TPP in Khandyga settlement.- Construction of HVL-220 kV Khandyga-Nezhdaninskoye.- Construction of “Khandyga – Dzhebariki-Khaya” sector of Eldikan-Khandyga motorway.- Development of social infrastructure.

Volumes and sources of fund-ing

TOTAL – RUR 131 270 m, including:Federal budget – RUR 80 930 mRepublican budget – RUR 700 mLocal budget – RUR 40 mPrivate investments – RUR 49 600 m

Terms and stages of IIP imple-mentation

I stage (2011): preparing documentation for the projects, IIP status execution and approval.II stage (2012 – 2016): launch and implementation of primary invest-ment projects, IIP correction.III stage (2017 – 2020): completion of implementation of all IIP in-vestment projects with corrections.

Expected outcomes of IIP im-plementation

The implementation of program undertakings has to result in the cre-ation of mechanisms for the efficient use of the municipal entity’s po-tential to create economic, social, organizational, and legal bases; it

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will also result in the involvement of the population in local prob-lems’ solving, in the optimization of the local budget, the improve-ment of the local self-governance regulatory legal base, the creation of systems of staff training and retraining for the settlement’s enter-prises and organizations.

CEO of the organization im-plementing the project

Roman Mikhailovich SCHEGELNYAK

Contacts Sakha Republic (Yakutia), Tomponsky region678711 Dzhebariki-Khaya, 5 Lesnaya Str. Phone: 8 (41153) 2-36-94http://sakha.gov.ru/minecon/

101. IIP name Integrated investment plan of development of the municipal entity “Lensk town” of Lensk region of the Sakha Republic (Yakutia) in 2011 ─ 2016 and main directions until 2020

Location Lensk town of Lensky region of the Sakha Republic (Yakutia) IIP contractor Administration of the municipal entity “Lensk town” of Lensk region IIP characteristics IIP strategic directions:

1. Development of oil and gas fields.2. Construction of Lena-Nepa-Lensk railroad

line.3. Upgrading of housing and community

amenities infrastructure.4. Development of small and medium busi-

nesses.5. Development of social infrastructure.

Major undertakings, key IIP investment projects:1. Development of Talakan oil and gas condensate field.2. Infrastructure development of Chayanda oil and gas condensate field.3. Gas processing complex on the extraction of helium and other valuable components of Chayanda oil and gas condensate field.4. Construction of Lensk gas processing and gas-chemical complex.5. Construction of sections of VILYUI motorway in the single corridor with ESPO and major gas pipeline on the site Peledui-Vitim-Lensk.6. Construction of HVL-220 Lensk-Olyokminsk-Aldan.7. Construction of HVL-220 kV Chernyshevsky–Mirny-Lensk-Peledui with a branch line to OPS -14.8. Construction of HVL-500 Lensk-Ust-Kut with SS 500 kV.9. Construction of main fiber-optic communication lines Skovorodino-Aldan-Yakutsk and Irkutsk-Lensk.10. Reconstruction of Lensk airport.

Volumes and sources of IIP funding

Total – RUR 496 139,02 m, including:Federal budget – RUR 163652,8 mBudget of Lensk region ME – RUR 13,1 mBudget of Lensk town ME – RUR 84,2 m Extra-budget sources – RUR 332389,0 m

Terms of IIP implementa-tion

2011 – 2016 and until 2020

Expected outcomes of IIP implementation

1) Achievement of the social sphere’s stable condition, which will allow in the conditions of budget deficit to focus on the main social problems, create organizational, tax and legal incentives for their solving.2) Enhancement of production capacity.

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3) Development of transportation and communication infrastructure.4) Improvement of the town’s population well-being. During the IIP implementation it is expected:- the number of the employed in the economy will grow by 15,6% by 2016 - the level of average monthly salary by 2016 will grow to 70% compared with 2011- the turnover of enterprises in all activities will grow by 6% by 2016 - the dynamics of consumer goods production will on average grow by 9-10% on average

CEO of the organization implementing the project

Head of Administration of Lensk region Leonid Alexeevich ILYAKHIN

Contacts Sakha Republic (Yakutia), Lensk region 678140 Lensk, 65 Lenin Str. Phone: 8(41137) 4-68-68http://sakha.gov.ru/minecon/

102. IIP name Integrated investment plan of development of non-diversified municipal entities the towns of Mirny, the settlements of Chernyshevsky and Svetly within the united agglomeration of Mirny region of the Sakha Republic (Yakutia)

Location Mirny town, Chernyshevsky settlement, Svetly settlement of Mirny region of the Sakha Republic (Yakutia)

IIP contractor Administrations of the municipal entitites the towm of Mirny, the settlement of Chernyshevsky, the settlement of Svetly of Mirny region of the Sakha Republic (Yakutia)

IIP characteristics The goal of the integrated investment development of the agglomeration is to form conditions for the sustainable development of the economy of the agglomeration of three non-diversified settlements (Mirny town, Chernyshevsky and Svetly settlements) and to improve the living standards of the local communities.Major undertakings, key IIP investment projects:I. Supporting the formation of MCS-agglomeration:- asphalting a motorway between Mirny, Svetly and Chernyshevsky and enhancement of passenger transport traffic;- construction of HVL-220 kV Chernyshevsky – Mirny – Lensk – Peledui with a branch line OPS №14;- creation of a united portal of the three urban settlements of the agglomeration;- formation of a unified labor market of the agglomeration;- formation of an association of entrepreneurs of the agglomeration;- formation of unified management and coordination bodies of MCS-agglomeration; - project of consolidation of interests of town-forming enterprises of the agglomeration and Lensk town. II. Strengthening of service functions of the central Mirny town:- reconstruction of Mirny airport and construction of an airstrip;- upgrading of Mirny milk plant;- enlargement of the park “Living diamonds of Yakutia” in Mirny;- development of tourism;- construction of the second stage of Mirny Polytechnic Institute (studying building);

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- construction of consumer services center;- creation of auto technical center;- construction of mini-plant on the production of mineral fertilizers;- construction of new housing, including the private one;- full repair of dilapidated housing;- construction of kindergarten and primary school building in Quarter 25 of Mirny;- full repair of two schools;- Mirny gasification III. Diversification of local economy of Chernyshavesky and Svetly settlements:Chernyshevsky- upgrading of Chernyshevsky fish-breeding plant;- construction of shopping center;- establishment of service center for household appliances repair;- establishment of Internet-cafe;- establishment of business-incubator and training center;- formation of fund of micro-crediting/equipment leasing;- construction of dormitory for the Republican Cadet Boarding School;- establishment of preventorium on the base of medical complex;- establishment of summer camp for the kids’ social rehabilitation;- conversion of social sphere facilities;- resettlement of citizens from dilapidated and hazardous housing;- construction of engineering infrastructure facilities.Svetly-establishment of bottled drinkable water production facility;- establishment of vegetable processing and conservation facility;- construction of hockey court;- full repair of CASCADE Cultural Center;- introduction of the third stage of Mirny Industrial College;- construction of dormitory for Mirny Industrial College;- organization of temporary employment for youth;- creation of a local energy-efficiency zone. IV. Strengthening of the agglomeration’s town-forming enterprises:- reconstruction and upgrade of Vilyui HPS -1,2;- construction of the 4th hydraulic unit of Vilyui HPS -3;- construction of underground mines and development of new deposits of AK ALROSA.

Volumes and sources of funding

To implement the Integrated investment plan of development of MCS-agglomeration in 2011-2020 the following financial resources are needed: RUR 286 014,5 m, including:Federal budget – RUR 43 503,1 m;Regional budget – RUR 38 395,9 m;Municipal budgets – RUR 567,7 m;Private investments – RUR 203 547,8 m.

Terms and stages of implementation

Start of implementation: 2011. Finish: 2020.The plan is supposed to be implemented in 3 stages.I. Short-term measures solve the issues of strengthening the internal unity of all settlements making the MCS-agglomeration.Implementation period: 2011II. Mid-term measures solve the issues of strengthening the unity of all three municipal entities making the agglomeration; on diversification

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of economy of the three municipal entities.Implementation period: 2012 – 2014III. Long-term measures are aimed at providing a balanced combination of the industrially-developed service center-town Mirny and diversified in the local economy structure settlements Mirny and Chernyshevsky within the unified agglomeration for the sake of sustainable development and comfortable living conditions of the population. Implementation period: 2015 – 2020

Expected outcomes of IIP implementation

The main result of implementation of the Integrated investment plan of development of MCS-agglomeration will be as follows:- enhancement of competitiveness of town-forming enterprises (АК ALROSA, Cascade of Vilyui HPS-1,2, Svetly HPS-3) being the main sources of tax income to the ME budget (investment in development of these enterprises until 2020 will make RUR 124 816,7 m);- promotion of development of small and medium businesses (investments in development of small business in 2011-2020 will make RUR 361,0 m);- double reduction of unemployment;- increase of financial stability of the municipal entities of MCS-agglomeration (additional incomes to the budget of the municipal entities in 2011 – 2020 will make RUR 2 284,2 m);- growth of actual income of the agglomeration population by 1,2-1,3;- growth of investments in the economy of the agglomeration (in 2011-2020 the estimated sum of investments will make RUR 285 940,52 m)

CEO of the organization implementing the project

Head of Mirny town - Sergei Yurievich ALEXANDROV Head of Chernyshevsky settlement - Anatoly Pavlovich SHUSHUEV Head of Svetly settlement - Vladimir Dmitrievich BELIKOV

Contacts Sakha Republic (Yakutia), Mirny region 678170, Mirny, 19 Lenin Str. Phone: 8 (41136) 3-29-35, 3-21-05678185, Chernyshevsky, 1«б» Kosmonavtov Str. Phone: 8(41136) 7-28-57678196, Svetly, 6 Sovetskaya Str. Phone: 8 (41136) 7-13-97http://sakha.gov.ru/minecon/

103. IIP name Integrated investment plan of development of a unicentric agglomeration of Neryungri region (Serebryany Bor settlement, Neryungri town, Berkakit settlement, Chulman settlement)

Location Serebryany Bor settlement, Neryungri town, Berkakit settlement, Chulman settlement of Neryungrinsky region of the Sakha Republic (Yakutia)

IIP contractors Administrations of Serebryany Bor settlement, Neryungri town, Berkakit settlement, Chulman settlement of Neryungrinsky region of the Sakha Republic (Yakutia)

IIP characteristics IIP strategic directions:1. Development of coal mining industry. 2. Diversification of structure of economy.3. Small business development.4. Provision of scientific-innovative development.5. Upgrading of infrastructure and housing.

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6. Labor market development.7. Socioeconomic integration of the settlements of Neryungri agglomera-tion .Major undertakings, key IIP investment projects:The project has several large undertakings capable of considerable influence on the socioeconomic situation of Neryungri urban agglomeration, including:- Construction of metallurgic plant (Investor ООО «TIMIR»);- Mastering the production of cargo railroad carriages (ОAО «MECHEL»);- Enhancement of poultry production (ОАО «Neryungri Poultry Plant»);- Establishment of Technological Park.

Volumes and sources of IIP undertakings funding

To implement the Integrated investment modernization plan of Neryungri agglomeration, total funds of RUR 377,443 b will be required in 2011-2020.In 2011 the volume of financing will make RUR 44,235 b, including:federal budget – RUR 2,999 b,funds of the Sakha Republic (Yakutia) – RUR 0,077 b,funds of local budget – RUR 0,283 b,extra budget sources – RUR 40,876 b.In 2012-2013 the volume of financing will make RUR 71,03 b, including Federal budget – RUR 10,026 b,Funds of the Sakha Republic (Yakutia)– RUR 0,123 b,Funds of local budget – RUR 0,138 b,Extra budget sources – RUR 60,743 b.In 2014-2020 the volume of financing will make RUR 262,177 b, includingfederal budget – RUR 35,449 b,funds of the Sakha Republic (Yakutia) – RUR 0,323 b,funds of local budget – RUR 0,8 b,extra budget sources – RUR 239,252 b.

Terms and stages of IIP implementation

2011-2020 1 stage – 2011-2012 2 stage – 2013-20163 stage– 2017-2020

Expected outcomes of IIP implementation

The implementation of the Integrated investment plan of Neryuingri agglomeration modernization will bring the following socioeconomic results:1.Reduction of share of the town-making enterprise in the total volume of the shipped goods from 72,6% to 40,1%;2.Reduction of share of the employed at the town-forming enterprise from 58% to 52%;3.Growth of small enterprises number by 22%;4.Increase of share of the local budget’s own income by 25%;5.Making 12,8 thousands of new jobs;6.Reduction of the registered unemployment level from 1,2% to 1%.

CEO of the organization implementing the project

Head Neryungri town - Vladimir Sergeevich RUSINOVHead of Serebryany Bor settlement - Vladimir Ilich REZIKOV Head of Berkakit settlement - Oksana Anatolievna ALEEVA Head of Chulman settlement - Natalia Mikhailovna SUKHOTINA

Contacts Sakha Republic (Yakutia), Neryungri region 678922 Neryungri, 22 Druzhby Narodov Ave.

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Phone: 8(41147) 4-89-48678995 Sewrebrynay Bor, Str. Phone: 8(41112) 7-96-35678990 Berkakit, 5 Optimistov Str. Phone: 8(4112) 7-33-41678980 Chulman, 22 Sovetskaya Str. Phone: 8(41147) 7-15-68, 7-15-69http://sakha.gov.ru/minecon/

Contacts

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Ministries

Ministry of Federal and External Relations of the Sakha Republic (Yakutia)Minister – Mr. Valery I. MAXIMOV30, Lenin ave., Yakutsk, Sakha (Yakutia) 677011Tel.: +7 4112 342441Fax: +7 4112 341939E-mail: [email protected] 

Ministry of Housing, Communal Service and Power Supply of the Sakha Republic (Yakutia)Minister – Mr. Alexander A. ANTONENKO13, Kirov str., Yakutsk, Sakha (Yakutia) 677000Tel.: +7 4112 422578Fax: +7 4112 422739E-mail: [email protected] Ministry of Healthcare the Sakha Republic (Yakutia)Minister – Mr. Alexander V. GOROKHOV30, Lenin ave., Yakutsk, Sakha (Yakutia) 677011Tel.: +7 4112 424022Fax: +7 4112 420772E-mail: [email protected] Ministry of Property and Land Relations of the Sakha Republic (Yakutia)Minister – Mrs. Evgeniya V. GRIGORIEVA 8, Ammosov str., Yakutsk, Sakha (Yakutia) 677000Tel.: +7 4112 341655Fax: +7 4112 421363E-mail: [email protected] Ministry of Culture and Spiritual Development of the Sakha Republic (Yakutia)Minister – Mr. Andrey S. BORISOV30, Lenin ave., Yakutsk, Sakha (Yakutia) 677011Tel.: +7 4112 421163Fax: +7 4112 421248E-mail: [email protected]  Ministry of Agriculture and Food Policy of the Sakha Republic (Yakutia)Minister– Mr. Ivan I. Sleptsov 28, Kurashov str, Yakutsk, Sakha (Yakutia) 677000Tel.: +7 4112 341862Fax: +7 4112 344406E-mail: [email protected]

Ministry of Professional Education, Staff Training and Deployment of the Sakha Republic (Yakutia)Minister – Mr. Yury S. KUPRIYANOV36, Kurashov str., Yakutsk, Sakha (Yakutia) 677007Tel.: +7 4112 455156, 423589Fax: +7 4112 425159E-mail: [email protected]

Ministry of Education of the Sakha Republic (Yakutia)Minister – Mr. Afanasy S. VLADIMIROV 30, Lenin ave., Yakutsk, Sakha (Yakutia) 677011Tel.: +7 4112 420356Fax: +7 4112 424929E-mail: [email protected] 

Ministry of Nature Protection of the Sakha Republic (Yakutia)Minister – Mr. Vladimir A. GRIGORIEV 3/1, Dzerzhinsky str., Yakutsk, Sakha (Yakutia) 677000 Tel.: +7 4112 341290Fax: +7 4112 421372E-mail: [email protected] Ministry of Entrepreneurship and Tourism Development of the Sakha Republic (Yakutia)Minister – Mrs. Ekaterina I. KORMILITSYNA 6/1, P. Alexeev str., Yakutsk, Sakha (Yakutia) 677018 Tel.: +7 4112 421327Fax: +7 4112 342765E-mail: [email protected] Ministry of Youth Policy and Sports of the Sakha Republic (Yakutia) Minister – Mr. Alexander G. PODGOLOV 4/2 Lenin ave., Yakutsk, Sakha (Yakutia) 677011Tel.: +7 4112 422793Fax: +7 4112 422793E-mail: [email protected]

Ministry of Economy and Industrial Policy of the Sakha Republic (Yakutia)Minister – Mr. Mikhail A. OSIPOV28, Lenin ave., Yakutsk, Sakha (Yakutia) 677022Tel.: +7 4112 420310

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Ministry of Architecture and Construction Complex of the Sakha Republic (Yakutia) Minister – Mr. Sergey Y. DEREPOVSKY8, Ammosov str., Yakutsk, Sakha (Yakutia) 677000Tel.: +7 4112 424412Fax: +7 4112 341413E-mail: [email protected]

Ministry of Labour and Social Development of the Sakha Republic (Yakutia)Minister – Mr. Nikolay N. DEGTYARYOV6/1, Petr Alexeev str., Yakutsk, Sakha (Yakutia) 677000Tel.: +7 4112 424034Fax: +7 4112 340425E-mail: [email protected] Ministry of Finance of the Sakha Republic (Yakutia)Minister – Mr. Vadim A. NOVIKOV12, Kirov str., Yakutsk, Sakha (Yakutia) 677007Tel.: +7 4112 423684Fax: +7 4112 423337E-mail: [email protected] State Committee on Geology and Natural Resources of the Sakha Republic (Yakutia)Chairman – Mr. Leonid N. KOVALEV13, Kirov str., Yakutsk, Sakha (Yakutia) 677892Tel.: +7 4112 423503Fax: +7 4112 423587E-mail: [email protected]

State Committee on Science and Innovation Policy of the Sakha Republic (Yakutia) Chairman – Mr. Maxim M. TROFIMOV 36, Kurashov str., Yakutsk, Sakha (Yakutia) 677007 Tel.: +7 4112 420545Fax: +7 4112 425159E-mail: [email protected]

Fax: +7 4112 421089E-mail: [email protected]

Ministry of Transportation and Road Facilities of the Sakha Republic (Yakutia) Minister – Mr. Semen V. VINOKUROV22, Lenin ave., Yakutsk, Sakha (Yakutia) 677018Tel.: +7 4112 422307Fax: +7 4112 425636E-mail: [email protected] State Committee on Communication and Informational Technologies of the Sakha Republic (Yakutia) Chairman – Mr. Konstantin E. SEMENOV 22, Lenin ave., Yakutsk, Sakha (Yakutia) 677018 Tel.: +7 4112 422307Fax: +7 4112 425636 State Committee on Pricing Policy – Regional Energy Commission of the Sakha Republic (Yakutia)Chairman – Mrs. Valentina I. LEMESHEVA28, Lenin ave., Yakutsk, Sakha (Yakutia) 677000Tel.: +7 4112 343439Fax: +7 4112 344648E-mail: [email protected]

State Committee on State Orders Placement of the Sakha Republic (Yakutia) Chairman – Alexander I. POPOV 22, Lenin ave., Yakutsk, Sakha (Yakutia) 677018Tel.: +7 4112 423438Fax: +7 4112 421066E-mail: [email protected]

Representative Offices

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Permanent Representation of the Sakha Republic (Yakutia) under the President of the Russian FederationPermanent representative – Mr. Alexander K. AKIMOV 107078, Moscow, 3/26 Myasnitsky proezdTel./fax: (495) 628-42-21

Permanent Representation of the Sakha Republic (Yakutia) in Saint-PetersburgPermanent representative – Mrs. Galina M. MAKAROVA199053, Saint-Petersburg, 1/10 Birzhevoi pereulok, 1st floorTel./fax: (812) 323-34-46

Permanent Representation of the Sakha Republic (Yakutia) in the Far Eastern Federal District in Khabarovsk Permanent representative – Mr. Georgy D. NIKONOV680000, Khabarovsk, 16 Volochaevskaya Str.Tel./fax: (4212) 31-58-58

Representation of the Sakha Republic (Yakutia) within the RF Trade Representation in the PRCRepresentative – Mr. Alexander I. YADREEV 100600 China, Beijing, Dongzhimennei Dajie, Mashao Hutong, 27ATel.: (86-10) 653-222-01, fax: (86-10) 653-253-98

Trade Commissioner of the Sakha Republic (Yakutia) in Toronto, Canada – Mrs. Marina T. DESSIATKINA, 200 North Service Rd, Unit1, Suite 375, Oakville, Toronto, ON L6M 241 CanadaTel.: (1-905) 334-49-66

Representative of the Sakha Republic (Yakutia) at the Northern Forum Secretariat in Anchorage, USARepresentative – Mrs. Anastasia N. BOZHEDONOVA4401 University Drive, APU Carr-Goitstein Center, Suite 221 Anchorage, Alaska 99508 USATel.: (1-907) 561-32-80, fax (1-907) 561-66-4

Major Enterprises

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Company name, CEO Activity AddressJSC “ALROSA” (OAO)President – Fyodor Borisovich ANDREEV

Diamond mining 678170, Sakha Republic (Yakutia), Mirny, 6 Lenin Str.Tel.: (411-36) 2-23-02Fax: (411- 36) 2-50-30E-mail: [email protected]

ОАО “Almazy Anabara”General Director – Matvey Nikolaevich YEVSEEV

Diamond mining, timber industry

677000, Sakha Republic (Yakutia), Yakutsk, 6 Chernyshevskogo Str.Tel.: (4112) 45-01-00, 42-01-02Fax: (4112) 42-50-30

ОАО “Nizhne-Lenskoe” General Director – Vladimir Romanovich KYCHKIN

Diamond mining 677000, Sakha Republic (Yakutia), Yakutsk, 4 Lenin Ave., Tel.: (4112) 34-41-00

ОАО “Aldanzoloto” GRKGeneral Director – Igor Yurievich SUKHOBAEVSKY

Gold mining 678940, Sakha Republic (Yakutia), Aldansky region, s. Nizhny Kuranakh, 14 Stroiteley Str.Tel.: (411-45) 6-29-41 Fax: (411-45) 3-08-82

ОАО “Surgutneftegaz” General Director – Vladimir Leonidovich BOGDANOV

Oil production 628415, Tyumenskaya Oblast, Surgut, 1 Kukuevitskogo Str. Tel.: (3462) 42-61-33Tel. Moscow office: (495) 980-15-86Е-mail: [email protected]

ОАО “Sakhatransneftegaz”General Director – Ivan Konstantinovich MAKAROV

Gas production and transportation

677000, Sakha Republic (Yakutia), Yakutsk, 18 Ammosov Str.Tel.: (4112) 42-40-95Fax: (4112) 42-48-44E-mail: [email protected]

ОАО “Yakut Fuel and Power Company”General Director – Igor Leonidovich DEMIDOV

Gas production 677015, Sakha Republic (Yakutia), Yakutsk, 4/1 Khalturin Str.Tel.: (4112) 22-39-11Fax: (4112) 22-35-74Е-mail: [email protected]

OOO “Vostoknefteprovod”General Director – Victor Alexandrovich BRONNIKOV

Oil transportation 665734, Irkutsk Oblast, Bratsk, Energetic District, 14 Olympiyskaya Tel: (3953) 30-07-37, 30-07-74Fax: (4112) 22-35-74

ООО “Taas-Yurekh Neftegazdobycha”General Director – Ivan Mikhailovich MENSHIKOV

Oil production 678144, Sakha Republic (Yakutia), Lensk, 32A Pervomaiskaya Str.Tel.: (411-37) 4-62-88Fax: (411-37) 4-62-96 E-mail: [email protected], [email protected]

ОАО Holding Company “Yakutugol”Acting director – Igor Valerievich KHAFIZOV

Coal mining and enrichment

678960, Sakha Republic (Yakutia), Neryungri, 3/1 Lenin Str.Tel.: (411-47) 96-125Fax: (411-47) 4-20-24Е-mail: [email protected]

ОАО «Southern Yakutia Corporation» General Director – Mikhail

Implementation of “Integrated Development of

Moscow, 11B Seleznyovskaya Str.Tel.: (495) 232-42-44Fax: (495) 232-95-13

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Lvovich BRUK Southern Yakutia” investment project

Е-mail: [email protected]: http://www.sy-corp.ru

ОАО JSC “Yakutskenergo”General Director – Oleg Vladimirovich TARASOV

Generation, transmission and distribution of electric and heat power

677000, Sakha Republic (Yakutia), Yakutsk, 14 F. Popova Str.Tel.: (4112) 21-13-50Fax: (4112) 21-13-55E-mail: [email protected]

GUP “ZhKH RS(Y)” General Director – Alexander Alexandrovich NOGOVITSYN

Generation and distribution of heat power

677000, Sakha Republic (Yakutia), Yakutsk, 5, 50 let Sovetskoy Armii Tel.: (4112) 39-93-03Fax: (4112) 39-93-26

ОАО “Yakutia Airlines”General Director – Ivan Alexeevich PROSTIT

Cargo and passenger air traffic

677014, Sakha Republic (Yakutia), Yakutsk, 9 Bykovskogo Str.Tel./fax: (4112) 44-30-60E-mail: [email protected]

ОАО JSC “Railroads of Yakutia”General Director – Vasily Vladimirovich SHIMOKHIN

Railway transportation

678900, Sakha Republic (Yakutia), Aldan, 14 Mayakovskogo Str.Tel.: (411-45) 3-26-35, Fax: (411-45) 3-22-56 Tel. Yakutsk office: (4112) 42-05-00, 42-51-06, 42-51-19, 42-41-32

ОАО “Lena River Shipping Company” General Director – Sergei Alexandrovich LARIONOV

Cargo and passenger river transport traffic

677000, Sakha Republic (Yakutia),Yakutsk, 2 Dzerzhinskogo Str. Tel.: (4112) 42-02-07, 42-42-50Fax: (4112) 42-00-11Telex: 135134 LENA RUE-mail: [email protected]

Branch ОАО “Sakhatelecom”OAO “Rostelecom” General Director – Konstantin Genndievich VOLOSHIN

Telecommunications

677000, Sakha Republic (Yakutia), Yakutsk, 22 Kurashova Str.Tel.: (4112) 42-37-08, 42-38-75Fax: (4112) 34-10-77E-mail: [email protected]

ОАО “Republic’s Investment Company” General Director – Alexander Ivanovich FEDOTOV

Investment activity 677000, Sakha Republic (Yakutia), Yakutsk, 38 Ordzhonikidze Str.Tel. (4112) 39-02-51Fax (4112) 34-42-07E-mail: [email protected]

ООО NPC “EPL Diamond”General Director – Valery Petrovich FYODOROV

Jewelry production and retail

677022, Sakha Republic (Yakutia), Yakutsk, 4 Oyunskogo Str.Tel.: (4112) 35-41-51Fax: (4112) 35-10-92

FAPC “Yakutia”General Director – Andrey Petrovich SAMSONOV

Food product manufacturing, catering

677009, Sakha Republic (Yakutia), Yakutsk, 68 Dzerzhinskogo Str. Tel.: (4112) 45-90-06Fax: (4112) 45-90-58 E-mail: [email protected]

ОАО “Integrated house-building factory”General Director –Alexander Adolfovich BERSH

Building of houses, production of construction materials

677002, Sakha Republic (Yakutia), Yakutsk, Pokrovsky Trakt, 6th kmTel.: (4112) 43-17-30, 43-13-16, 35-10-90Fax: (4112) 35-28-67

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ОАО “Yakutcement”General Director –Alish Zabid-ogly MAMEDOV

Production of cement and crushed stone

678020, Sakha Republic (Yakutia), KHangalassky ulus, s. Mokhsogollokh, 32 Zavodskaya Str.Tel.: (411-44) 48-0-21, 47-9-13Fax: (411-44) 48-1-45E-mail: [email protected], [email protected]

GUP “Committee on precious metals and precious stones of the Sakha Republic (Yakutia)”General Director –Karl Innokentievich VASILIEV

Supply, stocktaking and build-up of the State Fund of precious metals and precious stones of the Sakha Republic (Yakutia)

677018, Sakha Republic (Yakutia), Yakutsk, 18 Kirova Str.Tel.: (4112) 48-22-04, 34-31-64

ООО “Pokrovsk basalt material plant”General Director – Yegor Petrovich ZHIRKOV

Production of construction materials

678000, Sakha Republic (Yakutia), Pokrovsk, 1 Zavodskaya Str.Tel.: (411-44) 43-1-42Office in Yakutsk:677018, Sakha Republic (Yakutia), Yakutsk, 38 Ordzhonikidze Str.Tel.: (4112) 39-02-72, 42-11-76

ОАО “Gold of Yakutia”General Director – Alexander Afanasievich FYODOROV

Production and sale of jewelry

677007, Sakha Republic (Yakutia), Yakutsk, 2/1 Glukhoi pereulokTel.: (4112) 42-06-10Fax: (4112) 42-05-56

JSCB “Almazergienbank” OAO Chairman of the Board – Alexander S. MIRONOV

Banking 677000, Sakha Republic (Yakutia), Yakutsk, 1 Lenin Ave. Tel.: (4112) 34-22-22Fax: (4112) 425-425E-mail: [email protected]

JSB “Taatta” (ZAO) Chairman of the Board – Ivan IlyichPANTAZIEV

Banking 677000, Sakha Republic (Yakutia), Yakutsk, 52/3 Dzerzhinskogo Str.Tel.: (4112) 45-99-11Fax: (4112) 42-23-61E-mail: [email protected]

MCB “MAC-Bank” (ООО)Chairman of the Board –Alexander Mikhailovich PREDEIN

Banking 119180, Moscow, 23 Bolshaya Yakimanka Str. Tel.: (499) 230-10-40 Fax: (499) 230-36-66

NCB “Neryungribank” (ООО)Chairman of the Board –Olga Alexeevna DMITRIEVA

Banking 678960, Sakha Republic (Yakutia), Neryungri, 29/4 Druzhby Narodov Ave. Tel.: (41147) 4-07-07 Fax: (41147) 6-35-50E-mail: [email protected]

Branch of “MTS” ОАО in the Sakha Republic (Yakutia)Head – Roman Alexandrovich MESSING

Telecommunications and communications

677000, Sakha Republic (Yakutia), Yakutsk, 4/1 Chiryaeva Str. Tel.: (4112) 707-780Fax: (4112) 707-277

Yakutsk Regional Office of Far East Branch of “Megafon” ОАО

Telecommunications and

677000, Sakha Republic (Yakutia), 25 Lermontova Str.

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Head – Andrei Gennadievich GAMYANIN

communications Tel.: (4112) 35-55-51Fax: (4112) 22-36-81

Yakutsk Branch of “Vympelcom Communications” ОАО Head – Andrei Vladimirovich BUGAEV

Telecommunications and communications

677000, Sakha Republic (Yakutia), Yakutsk,136/2 Lermontova Str. Tel.: (4112) 35-55-65Fax: (4112) 36-55-37E-mail: [email protected]

TABLE OF CONTENTS

ADDRESS BY THE PRESIDENT OF THE SAKHA REPUBLIC (YAKUTIA) 3

YAKUTIA IN FIGURES 4

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SOCIAL AND ECONOMIC SITUATION 5

INVESTMENT CLIMATE 8

EXTERNAL ECONOMIC ACTIVITY 13

PRIORITY INVESTMENT PROJECTS 14

Integrated Large-scale Projects 12

Oil and Gas Complex 16

Mining Industry 41

Transport System 49

Power Supply, Housing and Communal Sector 58

Construction Sector 69

V Children of Asia International Sports Games Construction Facilities 74

Agroindustrial Sector 77

Innovative Projects 84

Small and Medium Business Projects 95

Tourism 100

Healthcare 105

Culture 108

Nature Protection 110

Creation of Special Economic Zones 114

Integarted Investment Projects of Non-diversifeid Localities 116

CONTACTS 124