Concern «Bellegprom»

Transposition of the Spinning-Mill of Minsk Sukno Open Joint Stock Company

A. Project Opportunity Description:A1. Project Name:а. Short name:Transposition of the Spinning-Mill

b. Full name:Transposition of the Spinning-Mill of Minsk Sukno Open Joint Stock Company

c. Summary description:Today Sukno Open Joint Stock Company occupies two production areas. It is reasonably from the economic viewpoint to remove equipment from the production areas located in K.Tsetkin Street building 5 and building 7 (about 6 hectares of land) and place the same at the production areas located in 33, Matusevich Street, and use such released lands in K.Tsetkin Street for building up the social, business and entertainment center. А2. Progress Status:Initial stage: business-plan has been developed

А3. Organizations involved and their roles:1) Sukno Open Joint Stock Company (Sukno JSC) specializes in manufacture of fabrics for overcoats, dresses, and blankets. The production output is 1 mio running meters per year. 3, Matusevich Street, 220121 Minsk, Belarus Mr. N.V. Kuzmenko, Director General Tel.: (+375 17) 2539940, 2538383; Fax: (+375 17) 2539955 , E-mail:sukno**[ta]**no.belpak.minsk.by, sukno**[ta]**l.ru; 2) Concern «Bellegprom»: 16, K. Tsetkin Str., Minsk, 220050, Republic of Belarus. Vinnik Rima Alexandrovna, tel.: (+375 17) 2003***

А4. Project Description:The proposed investment project includes reconstruction of the Spinning-Mill (construction of a building wherein any auxiliary services will be located; transposition of the equipment to the production premises located in 33, Matusevich Street; purchase of new equipment), accompanied with release of areas and granting the investor the right to use the same. А4a. Project cost (mln USD): A5. Background/history/overall programme/related or similar projects:A need for transposition of the Spinning-Mill and release of premises for the Minsk-City Center construction. A6. Environmental impact summary:No adverse environmental impact is expected. A7. Possible obstacles/ problems/ risk assessment:Not known. There are no risks. A8. Term of realization/term of recoupment (years):2/4

A9. Project’s branch:Textile industry

B. Capital Cost Items (additional requirements for project):B1. Project physical components B2. Capital cost (mln USD)

Construction of the building; purchase of the equipment; building and assembly job for equipment transposition. Total: C. Capital Resources Available from Sponsors/ Proposers:C1. Resources 'in kind', grants, investments, equity/ownership, etc. C2. Amount (mln USD)

D. Required Financial Assistance:D1. Financing gaps, type of financial assistance required:D2. Sources of finance D3. Type of investment D4. Amount (mln USD)

Investors funds: Foreign direct investments

D5. Financial/ International Institution Name:E. Demand (users) and revenues:E1. Type of users/ markets, volumes, pricing, revenues, quantifiable benefits/ savings:Countable profit shall be from use of the social, business and entertainment center located in K.Tsetkin Street. E2. Revenues (Sales) E3. Amount (mln USD)

Receipts from sale of the buildings of the social, business and entertainment center under construction

F. Operating and Maintenance Costs:F1. Cost components, strategies for cost recovery, operating organisations, subsidies, etc.:F2. Cost Item F3. Amount (mln USD)

Construction of the building; purchase of the equipment; building and assembly job for equipment transposition. Total

G. Net Income Value:G1. Net Income Value G2. Amount (mln USD)

Net profit***

H. Project information source:H1. THIS FORM WAS COMPLETED BY:Dergay, Chief Engineer of Sukno Open Joint Stock Company;Tel.:(+375-17)253-99-46 H2. Organisation (address):Sukno Open Joint Stock Company (Sukno JSC)3, Matusevich Street, 220121 Minsk, Republic of Belarus H3. Tel.: (+375 17) 2539940, 2538383; Fax: (+375 17) 2539955, E-mail:sukno**[ta]**no.belpak.minsk.by, E-mail:sukno**[ta]**l.ru H4. Date:December, 2008 H5. Supreme Organization:Concern «Bellegprom»

Creation of a production of chrome and yuft leather goods for work footwear at Grodno Republican unitary enterprise «Grodno Industrial Leather Association»

A. Project Opportunity Description:A1. Project Name:а. Short name:Creation of a production of chrome and yuft leather goods at Grodno Republican unitary enterprise «Grodno Industrial Leather Association» (4 mln. dm2 per month)

b. Full name:Creation of a production of chrome and yuft leather goods for work footwear at Grodno Republican unitary enterprise «Grodno Industrial Leather Association» (4 mln. dm2 per month)

c. Summary description:The purpose of the given project is to move leather production from Zernova Str., 3 to the territory of the plant on leather stuff preprocessing, situated in the industrial zone: Grodno, Popeda Str.,***

А2. Progress Status:Pre-investment stage. The organization conducted preliminary technical and economic research. The production technology and the list of primary equipment were defined. Investor is needed. Business-plan is developing. А3. Organizations involved and their roles:1) The enterprise «Grodno Industrial Leather Association» is the initiator of the project - is the borrower: 3, Zernova Str., Grodno, 230029, Republic of Belarus. Filippova Ludmila Nikolaevna, director-general, tel.:(+375 152) 770184, fax:(+375 152) 721533, 711530; E-mail:shupitskijm**[ta]**mail.com; 2) Concern «Bellegprom»: 16, K. Tsetkin Str., Minsk, 220050, Republic of Belarus. Vinnik Rima Alexandrovna, tel.: (+375 17) 2003***

А4. Project Description:The implementation of the project is planned to be conducted by means of the reconstruction of the plant on leather stuff preprocessing with modern technological equipment installation. А4a. Project cost (mln USD)***

A5. Background/history/overall programme/related or similar projects:The main «Grodno Industrial Leather Association» activity is the production of chrome and yuft leather goods. The project is connected with the production transfer from the city centre to the industrial zone. A6. Environmental impact summary:Substantial emission within the allowable norms. Modern equipment and technologies will allow to reduce total amount of emission, also at the expense of fuel resources use. A7. Possible obstacles/ problems/ risk assessment:The most essential risk, influencing the project realization is the rise of costs on raw materials and materials. A8. Term of realization/term of recoupment (years):5***

A9. Project’s branch:Light industry

B. Capital Cost Items (additional requirements for project):B1. Project physical components B2. Capital cost (mln USD)

Acquisition of equipment [equipment spare parts) and materials (Italy, Check Republic, Germany)]***

Costs on net working capital forming***

Costs [treating facilities, boiler-house]***

Structure***

Total: C. Capital Resources Available from Sponsors/ Proposers:C1. Resources 'in kind', grants, investments, equity/ownership, etc. C2. Amount (mln USD)

Equity (structure): D. Required Financial Assistance:D1. Financing gaps, type of financial assistance required:Creation of joint venture, share holding. D2. Sources of finance D3. Type of investment D4. Amount (mln USD)

Foreign investment funds: Direct foreign investments***

D5. Financial/ International Institution Name:E. Demand (users) and revenues:E1. Type of users/ markets, volumes, pricing, revenues, quantifiable benefits/ savings:Leather goods supply to the CIS countries - 60%, long-distance foreign countries - 10%, home market - 30%. Belarusian factories are main consumers in the home market. E2. Revenues (Sales) E3. Amount (mln USD)

Income from leather goods sale: 4***

F. Operating and Maintenance Costs:F1. Cost components, strategies for cost recovery, operating organisations, subsidies, etc.:For the project’s realization the enterprise has got free working areas, partly engineering services and necessary equipment. There is a need in treating facilities and a boiler-house. F2. Cost Item F3. Amount (mln USD)

Raw materials, materials, fuel and energy for technological purposes: 2***

Personnel expenses: 0***

Amortization: 0***

Others: 0***

Total: 3***

G. Net Income Value:G1. Net Income Value G2. Amount (mln USD)

Net profit: 0***

H. Project information source:H1. THIS FORM WAS COMPLETED BY:Savich Edvard Ivanovich, chief engineer, tel: (+375 152) 720580. Stepuro Valentina Nikolaevna, chief economist, tel: (+375 152) 770956. H2. Organisation (address):The Republican unitary enterprise «Grodno Industrial Leather Association»: 3, Zernova Str., Grodno, 230029, Republic of Belarus. H3. Tel: (+375 152) 770184, 721533, 711530; E-mail:shupitskijm**[ta]**mail.com H4. Date:December, 2008 H5. Supreme Organization:Concern «Bellegprom»

Modernisation of sections on discharge of imitation leathers and oilcloths of a dining room of Joint Stock Company

A. Project Opportunity Description:A1. Project Name:а. Short name:Complex reequipment of Joint Stock Company

b. Full name:Modernisation of sections on discharge of imitation leathers and oilcloths of a dining room of Joint Stock Company

c. Summary description:It is offered to lead modernisation of sections on discharge of synthetic soft leather and oilcloths of a dining room from PVC a coat. Modernisation will be directed on expansion of assortiment, martempering of quality, decrease of expenses for production. А2. Progress Status:The design is in a stage of development. Pre-award technical and economic researches are executed, the production technology and the list of the capital equipment is determined. There is a search of potential suppliers of the equipment. А3. Organizations involved and their roles:1) The possible supplier of the printed equipment - Polygrafspectr, director Zinevich Igor Leonidovich, tel. (+375 17) 2594687, fax. (+375 17) 2546695, bdirector**[ta]**td.org, http://www.psltd.org 2) The possible supplier of the preparatory equipment - Integrator, the general director Sholuh Alexander Vasilyevich, tel. (+375 17) 2882557, fax. (+375 17) 2101258, office**[ta]**egrator.by, http://www.www.integrator.by 3) The possible supplier of the preparatory equipment - ИП «Prommineralmash», the manager of sales Shtajda Vladimir, tel. (+375 17) 2039085, fax. (+375 17) 2037884, vfs**[ta]**sh.com 4) The possible development engineer of the business - plot (consulting) - institute of independent expert appraisal INEP, the deputy chief of a department on work with clients Gunko Svetlana Nikolaevna, tel. (+375 17) 2099001, fax. (+375 17) 2099003, guniko**[ta]**p.biz, http://www.inep.biz 5) Joint Stock Company ISKOZ, director Lychkov Oleg Vladimirovich, tel.(+375 165) 341512, fax. (+375 165) 341038, iskoz**[ta]**l.by, http://www.iskoz.by 6) Concern «Bellegprom»: 16, K. Tsetkin Str., Minsk, 220050, Republic of Belarus. Vinnik Rima Alexandrovna, tel.: (+375 17) 2003***

А4. Project Description:Stage-by-stage technical reequipment of production lines on discharge of an oilcloth of a dining room from PVC a coat, then soft imitation leathers is supposed. It is offered to begin with stages of preparation of raw material and preparation of plasticates of PVC - to reduce losses of raw material and materials, fuel and energy resources, to lower agency of the human factor on quality of a finished stock. The given provision is offered to be lead due to elimination of muscle labour and automation of processes of loading and dosing of raw material. Also replacement of the obsolete equipment by more progressive is offered: replacement of laminating machines, replacement of printing machines (with development of new production engineering of drawing of a printing). Also it is offered to lead complex mechanization of departments and sections for add-on of an over-all performance, decrease of industrial harmful and dangerous factors. А4a. Project cost (mln USD)***

A5. Background/history/overall programme/related or similar projects:Joint Stock Company ISKOZ the factory single in Republic on discharge of an oilcloth of a dining room from PVC a coat, soft imitation leathers, a binding material. The equipment and productions technology of products morally also have physically become outdated. Tall wear of the equipment, tall consumption of energetics and materials, the big interest of use of muscle labour do not allow to provide high quality and profitableness of products. The factory requires global redesign. A6. Environmental impact summary:Exhausts in a circumambient in limits of allowable norms. A7. Possible obstacles/ problems/ risk assessment:The major factors influencing change of the market, are: the price factor, presence of exuberant powers, security raw material (phthalic anhydride) of the factories - generators of plastifier DOP, presence of PVC suspension in the market. Industrial risks are connected to various infringements in production or during deliveries of raw material from the Russian Federation (almost all raw material import), матеариалов, completing articles. Mercantile risks are connected to implementation of products in the commodity market (decrease of sizes and containers of the markets, decrease of solvent demand, emersion of new competitors, etc.). Financial risks are called by inflationary processes, general non-payments, oscillations of rates of exchange and so forth. They can be reduced due to creation of system of efficient financial management at the factory, work with dealers on conditions of an advance payment, etc. A8. Term of realization/term of recoupment (years):2/8

A9. Project’s branch:Light industry

B. Capital Cost Items (additional requirements for project):B1. Project physical components B2. Capital cost (mln USD)

Installations of the basic production:

The equipment (Iran)***

Installations of auxiliary process***

Other unaccounted expenses***

Total: C. Capital Resources Available from Sponsors/ Proposers:C1. Resources 'in kind', grants, investments, equity/ownership, etc. C2. Amount (mln USD)

Individual share (the property of Joint Stock Company)***

D. Required Financial Assistance:D1. Financing gaps, type of financial assistance required:Creation of joint venture, share holding. D2. Sources of finance D3. Type of investment D4. Amount (mln USD)

Foreign investment funds: Direct foreign investments***

D5. Financial/ International Institution Name:The opportunity of engaging of the Iranian investor is observed. E. Demand (users) and revenues:E1. Type of users/ markets, volumes, pricing, revenues, quantifiable benefits/ savings:The basic users of products of Joint Stock Company of a trading enterprise on an oilcloth of a dining room from PVC a coat (shallow wholesale - Belarus, large deliveries - the Russian Federation, Ukraine, Kazakhstan), generators of the clean goods on a binding material (the factories of the Russian Federation, it is insignificant Belarus), the car-repair and car-repair factories on synthetic soft leather (factory RB). Prospective annual volumes of output: an oilcloth a dining room - 7 200 000 m, imitation leathers - 1 200 000 m2, a binding material - 1 800 000 m2. E2. Revenues (Sales) E3. Amount (mln USD)

1. An oilcloth a dining room

2. A binding material***

3. Soft imitation leathers***

Total: F. Operating and Maintenance Costs:F1. Cost components, strategies for cost recovery, operating organisations, subsidies, etc.:F2. Cost Item F3. Amount (mln USD)

1. The cost price of products***

2. Mercantile charges***

Total: G. Net Income Value:G1. Net Income Value G2. Amount (mln USD)

Net profit***

H. Project information source:H1. THIS FORM WAS COMPLETED BY:Trejtjak I.V., lead engineer H2. Organisation (address):Joint Stock Company, Republic of Belarus, Pinsk, Brestskaja str 57 H3. +375 165 341591/ +375 165 341038/iskoz**[ta]**l.by H4. Date:December, 2008 H5. Supreme Organization:Concern «Bellegprom»

Partial re-profiling of Brest Carpets JSC for upholstery and furniture fabrics production and technical modernization of carpet-weaving production

A. Project Opportunity Description:A1. Project Name:а. Short name:Partial re-profiling of Brest Carpets JSC for upholstery and furniture fabrics production and technical modernization of carpet-weaving production

b. Full name:Partial re-profiling of Brest Carpets JSC by means of setting-up new technology for production of upholstery and furniture fabrics of VELOUR-type and partial technical reconstruction and modernization of carpet-weaving production. c. Summary description:The project provides for development of the carpet production range and setting the production of the modern furniture and upholstery fabrics of VELOUR-type with the dobby fine designs as well as velours with the Jacquard designs to compete with the best foreign analogues. BREST CARPETS JSC shall have opportunity to improve the financial state of the enterprise and meet the demand of the Belarusian furniture manufacturers envisaging realization of the National Import-Substitution Programme. Actual and innovation character of the present project provides that the introduction of modern carpet-weaving machines and complete equipment for the furniture fabrics will -re-arrange the assortment of the production; - master new types of the competitive products; - expand the sales markets inside and outside Belarus; - increase effectiveness and stabilization of the financial situation of the enterprise. А2. Progress Status:The business-plan is worked out. А3. Organizations involved and their roles:1) BREST CARPETS Joint Stock Company - Project Initiator 1,Ya. Kupaly str., 224020 Brest, Belarus a) Alexei Bauk, General Director - tel +375 162 461544 Svetlana Sachuk, Head of the Technical Dpt, tel. +375 162 468010 Secretary:+375 162 461708, +375 162 462421; 2)Company VAN DE WIELE (Belgium)-Supplier of carpet weaving machinery Michel Vandewielestraat 7-17, B-8510 Marke Tel. +3258 243211, fax +3256 243540; 3) Concern «Bellegprom»: 16, K.Tsetkin Str., Minsk, 220050, Republic of Belarus. Vinnik Rima Alexandrovna, tel.: (+375 17) 2003***

А4. Project Description:The investment project implies the technological reconstruction of the production Facilities in the following directions: - setting-up of the new generation carpet-weaving machines UCL 83-400, CRX-83-400 of VAN DE WIELE company; - setting-up of the winding automatic machine for making polypropelene packages; - setting-up of overedging sowing machines for carpets; - setting-up of the weaving equipment for the furniture fabrics production of the new generation models VTR 23-175 - 2 pcs, model VTR 33-175 - 2 pcs of VAN DE WIELE company. - setting-up of preparatory and finishing equipment for the furniture fabrics: (winding and sizing machines, finishing line with 2-cylinder shearing machine of VAN DE WIELE). New generation carpet-weaving equipment has the unique possibilities in carpet designing and weaving structures corresponding to the demands of modern design and fashion. The new technological equipment is supposed to be purchased at the Investor's account because of the high price. Realisation terms of the Project - 2007-2012. Implementation of the new high technology of furniture fabrics VELOR production provides to realize the change of the production range, mastering of the new types of the production, increase the production efficiency. А4a. Project cost (mln USD): A5. Background/history/overall programme/related or similar projects:The historical preconditions of the technical reconstruction are: - The technical reconstruction of the enterprise in 1993 made it possible to hold considerable sales volumes of carpets till 2000. - But the technology of the carpet production has been constantly developing in 1990s. The appearance of new technologies and more efficient equipment used by our competitors from Belgium, Turkey and Egypt made it possible for them to begin forcing out BREST CARPETS from the positions in the carpet markets. - The low technical level of the present production facilities does not allow manufacturing high quality carpets And a flexible reaction regarding carpet design and coloring. The reconstruction program provides for increasing pf extra-class carpet production volumes with the gradual decreasing of those of low quality which allows to stabilize and develop the position of the enterprise in the carpet markets and to improve the financial situation of the enterprise necessary for the further development of the reproduction process on the expanded scale. A6. Environmental impact summary:The project realization provides no impact on the environment and in some aspects even bring it down because it is planned to use ready-made yarn of the foreign producers, i.e. the volumes of the pollution products of the dyeing shop, and bring down water, electricity and heating consumption. A7. Possible obstacles/ problems/ risk assessment:Possible risks relative to the project: changes in tax system. A8. Term of realization/term of recoupment (years):5***

A9. Project’s branch:Textile industry

B. Capital Cost Items (additional requirements for project):B1. Project physical components B2. Capital cost (mln USD)

1.Purchasing of the technological equipment - carpet-weaving machine mod.UCL 83-400 -1 pc, - carpet weaving machine mod.CRX 83-400 - 1 pc , - automatic winding machine RC200/2 - 1 pc, - over-edging sewing machines for carpets mod.DK 2500 - 5 pcs, - weaving machine mod.VTR23-175 - 2 pcs, - weaving machine mod.VTR33-175 - 2 pcs, - winding machine - 1 pc, - sizing machine - 1 pc, - finishing line with 2-cylinder shearing machine - 1 pc, - design studio with appropriate software . TOTAL

C. Capital Resources Available from Sponsors/ Proposers:C1. Resources 'in kind', grants, investments, equity/ownership, etc. C2. Amount (mln USD)

D. Required Financial Assistance:D1. Financing gaps, type of financial assistance required:Financing pf equipment purchase

D2. Sources of finance D3. Type of investment D4. Amount (mln USD)

Investor's funds: Direct foreign investments

D5. Financial/ International Institution Name:E. Demand (users) and revenues:E1. Type of users/ markets, volumes, pricing, revenues, quantifiable benefits/ savings:Markets: carpets - Belarusian market- 21%, foreign markets - 79% (Russia, Ukraine, Kazakhstan etc.) upholstery and furniture fabrics - Belarusian market- 80%, foreign markets - 20% . Demand volumes: carpets - 620 000 sq.m., furniture fabrics - 625 000 sq.m. E2. Revenues (Sales) E3. Amount (mln USD)

Income from sales: carpets - 620 000 sq.m. furniture fabrics - 625 000 sq.m

TOTAL: 1***

F. Operating and Maintenance Costs:F1. Cost components, strategies for cost recovery, operating organisations, subsidies, etc.:For the purpose of project realization BREST CARPETS JSC has free production areas, engineering and communication networks, energy supply sources. New buildings and shops are not required. F2. Cost Item F3. Amount (mln USD)

Raw materials, fuel and energy for technological purposes

Personnel expenses

Amortization

Others

TOTAL: 1***

G. Net Income Value:G1. Net Income Value G2. Amount (mln USD)

Net income: H. Project information source:H1. THIS FORM WAS COMPLETED BY:Head of Technical department Svetlana Vasilyevna Sachuk H2. Organisation (address):Joint Stock Company «Brest Carpets»-1,Ya. Kupaly, 224020 Brest,Belarus H3. +375 162 461708/ +375 162 462421/ gendir**[ta]**stcarpets.com H4. Date:December, 2008 H5. Supreme Organization:Concern «Bellegprom»

Concern «Belneftekhim»

Organization of production of weaving and clothing manufacture of home textile at JSC «Rechitsa textiles»

A. Project Opportunity Description:A1. Project Name:а. Short name:Organization of production of weaving and clothing manufacture of home textile

b. Full name:Organization of production of weaving and clothing manufacture of home textile at JSC «Rechitsa textiles», Republic of Belarus

c. Summary description:The purpose of the present project is the increase of sales volume due to production of home goods of improved quality, maintaining and developing market positions of the company, extension of its assortment, maintenance of transition in more highincomed a segment of the market. А2. Progress Status:Design estimated executed, contractor chosen, bid for equipment delivery is conducted. Investor required. А3. Organizations involved and their roles:1) JSC «Rechitsa textiles» - the initiator of the project : 131, Naumova Str., Rechitsa, 247500, Gomel region, Republic of Belarus. V.A. Kondratjev, general director, tel./fax: (+375 2340) 40396, E-mail:redokt**[ta]**l.gomel.by ; 2) Concern «Belneftekhim»: 73, Dzerzhinskogo Ave., Minsk, 220116, Republic of Belarus. E-mail:koncbnx**[ta]**neftekhim.by, www.belneftekhim.by. Plotnikow Victor N., tel.: (+375 17) 2719728, leadership , tel.: (+375 17) 2717901, fax: (+375 17) 2719700 . А4. Project Description:The project envisages: 1. Completion of construction of production shop and utilities. 2. Purchase and installation of imported equipment: (12 looms with jacquard machines for terry weaving; machines for trimming and longitudinal and transversal cutting of terry clothes). Project cost estimate - USD 8.6 mln

А4a. Project cost (mln USD)***

A5. Background/history/overall programme/related or similar projects:OAO Rechitskiy Textil is a specialist in production of textiles such as terry clothes, upholstery fabrics, apparel. Used equipment types are: ATM, STBM, STB looms; SL-250, Textima warper mashines; MT-2, Fadis winders. ISO 9001-2001 quality management system introduced. Certified products share is 98.1 %. A6. Environmental impact summary:The project presents no environmental hazard. Equipment utilized in the process has necessary filtering systems. A7. Possible obstacles/ problems/ risk assessment:Project implementation risk is low. The company has a significant experience in terry-cloth production. A8. Term of realization/term of recoupment (years):3/6

A9. Project’s branch:Textile industry

B. Capital Cost Items (additional requirements for project):B1. Project physical components B2. Capital cost (mln USD)

Project works***

Equipment (Italy, Germany, Belgium, Switzerland, Russia)***

Building and construction***

Total: C. Capital Resources Available from Sponsors/ Proposers:C1. Resources 'in kind', grants, investments, equity/ownership, etc. C2. Amount (mln USD)

Own means: D. Required Financial Assistance:D1. Financing gaps, type of financial assistance required:Creation of joint venture. D2. Sources of finance D3. Type of investment D4. Amount (mln USD)

Foreign investment funds: Сredit, loan, Foreign direct investments***

D5. Financial/ International Institution Name:E. Demand (users) and revenues:E1. Type of users/ markets, volumes, pricing, revenues, quantifiable benefits/ savings:The main commodity markets: internal market (Republic of Belarus) - 70%, foreign market - 30%. E2. Revenues (Sales) E3. Amount (mln USD)

The income of implementation of the project: F. Operating and Maintenance Costs:F1. Cost components, strategies for cost recovery, operating organisations, subsidies, etc.:To accommodate the production, the company has necessary utilities and heat sources. No additional allotment of land is required. F2. Cost Item F3. Amount (mln USD)

Raw materials, power, labor, amortization, other

G. Net Income Value:G1. Net Income Value G2. Amount (mln USD)

Net profit: H. Project information source:H1. THIS FORM WAS COMPLETED BY:N.I. Calko, an economist of division for capital construction and prospective development at JSC «Rechitsa textiles». H2. Organisation (address):JSC «Rechitsa textiles»: 131, Naumova Str., Rechitsa, 247500, Republic of Belarus. H3. Tel.: (+375 2340) 40396, E-mail:redokt**[ta]**el.mail.by H4. Date:December, 2008 H5. Supreme Organization:Concern «Belneftekhim»

Reconstruction of nylon industrial and cord yarn production at JSC «Grodno Khimvolokno»

A. Project Opportunity Description:A1. Project Name:а. Short name:Reconstruction of nylon industrial and cord yarn production

b. Full name:Reconstruction of nylon industrial and cord yarn production facility at JSC «Grodno Khimvolokno», Republic of Belarus

c. Summary description:Purpose of the given project is to increase competitiveness of cord fabrics, produced by nylon industrial and cord yarn production facility, and expansion of markets in CIS. А2. Progress Status:Pre-investment stage. List of main equipment is determined by the company. Precontractual work in equipment purchase is led at the moment. А3. Organizations involved and their roles:1) JSC «Grodno Khimvolokno» - the initiator of the project, the borrower 230026 Grodno, Republic of Belarus Mr.K.P.Mayanov - General Director. Phone.(+375 152) 561264, 566903 Fax. (+375 152) 543380, 543439 E-mail:office**[ta]**dno-khim.by ; 2) Concern «Belneftekhim»: 73, Dzerzhinskogo Ave., Minsk, 220116, Republic of Belarus. E-mail:koncbnx**[ta]**neftekhim.by, www.belneftekhim.by. Plotnikow Victor N., tel.: (+375 17) 2719728, leadership: tel. (+375 17) 2717901, fax (+375 17) 271***

А4. Project Description:It is planned to reconstruct of nylon industrial and cord yarn production with the installation of efficient equipment for production of high-viscosity PA-6 via caprolactam polymerisation with capacity 160 tones/day Besides, there are plans to install 4-5 spin-draw-winding plants for industrial yarn with total output 80 tones/day,and 31 twisting machines. JSC «Grodno Khimvolokno» possesses all necessary production spaces, energy resources. Infrastructure and production spaces will enable to locate new equipment and satisfy necessary safety and ecology requirements, that subsequently allow maximum possible usage of existed elements of the enterprise engineering infrastructure, warehouse spaces, sidings including railway ones. To connect equipment we can use existed communications of compressed air, nitrogen, steam, cooled water, electrical energy and existed system of intrashop transport, that will permit to minimise general capital costs. As a staff there are high-skilled technicians and workers at the enterprise, who possess large operational experience on similar equipment (Zimmer and Barmag plants) that exclude problem of staff taking and training. А4a. Project cost (mln USD):1***

A5. Background/history/overall programme/related or similar projects:JSC «Grodno Khimvolokno» is related to chemical industry of the Republic of Belarus, belongs to the Belneftekhim concern and is the sole producer of nylon fibres and yarns, PA-6 and nylon cord fabric. At present the state share in the authorized capital stock is 99.97 %. The first production capacity of the company was launched in 1978. At present four process production facilities comprise its structure: - nylon industrial yarn cord fabric production facility - cord nylon yarn production facility - production facility for consumer goods - workshop of production facility for plastics Main types of the goods and their usage: - nylon cord fabric for tyre industry with tensile strength 12 - 35 kgf; - nylon industrial yarns for production of rubber technical articles and fishing nets and ropes; - nylon BCF texturized yarns of carpet assortment for production of tufting floor coverings and carpets of other types; - PA-6 granulated for production of nylon yarns, articles to be in contact with food, as well as engineering plastics for detail moulding in engineering and other industries; - PA-6 granulated reinforced for production of assemblies and details in engineering, electrical and other industries; - tufting floor coverings, which are consumer goods of large demand, produced from own BCF yarn; - braided articles for household and technical purposes. The company have all the necessary licenses for a right of activity in part of chemical yarns and fibres production according to standards in force in the Republic of Belarus. At present there are operating plants and lines of high productivity at the company which were made by Western European companies: - plant for production of PA-6 granulated (Zimmer, Germany), capacity 40 tones/day; - nylon industrial yarn spin-draw-winding plant (Zimmer-Rieter, Germany), capacity 10 tones/day; - nylon industrial yarn spin-draw-winding plant (Barmag, Germany), capacity 18 tones/day; - twin-screw extruders for engineering plastics production (Werner Pfleiderer, Berstorff, Germany); - and other high technological equipment. Will be placed in operation in 4th quarter 2006: - nylon industrial yarn spin-draw-winding plant (Marubeni, Japan), capacity 16 tones/day; - cord fabric dipping and heat-setting plant (Benninger, Germany), capacity up to 5,5 mill. rms/month As per the audit results QMS of JSC «Grodno Khimvolokno» was acknowledged as complied with requirements of ISO 9001: 2000, and they got a certificate of compliance No. 143870 dd. 17.12.2***

A6. Environmental impact summary:There is performed task-oriented work at JSC «Grodno Khimvolokno» to minimise harmful influence on environment. During all operation years set standards on contaminant emissions to atmosphere as well as limits on wastes formation and disposal are constantly kept. Supervising bodies haven't presented penalty sanctions to the enterprise. During last 2-3 years a number of measures to minimise wastes formation, consumption of energy resources of all types, water consumption were performed. A7. Possible obstacles/ problems/ risk assessment:Risk assessment for the project realising is low one. Technological processes of industrial yarn and cord fabric production at JSC «Grodno Khimvolokno» meet world level by many indices and considerably exceed level of similar enterprises in the CIS countries. There are long-standing and developed relations with raw material suppliers and ready goods consumers. JSC «Grodno Khimvolokno» possesses quite stable financial state, good credit history. High quality of the goods, service for partners, stability of deliveries, continuous technical rearmament of production capacities are pledge and guarantee of reliability of JSC «Grodno Khimvolokno». A8. Term of realization/term of recoupment (years):3/6

A9. Project’s branch:Chemical and petrochemical industry

B. Capital Cost Items (additional requirements for project):B1. Project physical components B2. Capital cost (mln USD)

Designing***

Purchasing of equipment and materials (Germany, Japan)

Construction installation works

TOTAL: 1***

C. Capital Resources Available from Sponsors/ Proposers:C1. Resources 'in kind', grants, investments, equity/ownership, etc. C2. Amount (mln USD)

Own means: D. Required Financial Assistance:D1. Financing gaps, type of financial assistance required:Crediting

D2. Sources of finance D3. Type of investment D4. Amount (mln USD)

Foreign investment funds: Credit

D5. Financial/ International Institution Name:E. Demand (users) and revenues:E1. Type of users/ markets, volumes, pricing, revenues, quantifiable benefits/ savings:There are sold ca. 30,5 % of produced goods in the Republic, 35,9 % are delivered to the CIS countries (mainly to Russia) and 33,6 % - to foreign countries. E2. Revenues (Sales) E3. Amount (mln USD)

Sales proceeds production 1***

F. Operating and Maintenance Costs:F1. Cost components, strategies for cost recovery, operating organisations, subsidies, etc.:To site the equipment the enterprise possesses necessary engineering communications and energy sources. Additional acreage allotment will not be required. F2. Cost Item F3. Amount (mln USD)

Raw materials, materials

Energy resources for technological purposes***

Personnel costs***

Depreciation

Other

TOTAL full costs for realized goods 1***

G. Net Income Value:G1. Net Income Value G2. Amount (mln USD)

Revenues E2 minus operating costs F2

Net Income Value

H. Project information source:H1. THIS FORM WAS COMPLETED BY:Vitaly I.Rudzinskas, Vice Head of Department for Technical Development at JSC «Grodno Khimvolokno» H2. Organisation (address):JSC «Grodno Khimvolokno», ul.Slavinskogo 4, 230026 Grodno H3. Tel. (+375 152) 565616, E-mail:office**[ta]**dno-khim.by H4. Date:December, 2008 H5. Supreme Organization:Concern «Belneftekhim»