:

: *Project goal: Creation of own generating capacities Provision of reliable and quality electric power supply

Preconditions: Availability of renewable energy sources Availability of free labor forces Shortage of electric power and energy on the south of Russia

731 . 80,0 . .

:

- 2020 1,6 . . , , (1400 . 2 ) *The chain of power plants consists of three lines with total capacity of 731 megawatt. The project costs 80,0 billion RR.

Installation of own generating capacities will allow:

to turn the Republic from a consuming region into a producer of electric energy to produce over 1,6 billion kW by 2020 to reduce electric rates, line losses and expenses paid for services of intermediaries to reduce emission of greenhouse gases (1400 thous. tonn of 2 per year) into atmosphere of the South of Russia

/Key figures of the project :* - (32 ), - (49 ), (8 )The first line covers construction of Chiri-Yurtovsky (32 megawatt), Duba-Yurtsky (49 megawatt), midget power plants on Promishlenniy channel (8 megawatt)

/Description /Value /Volume of investments 11 448,400 ../million RR /Overall production359,6 . /million kW /Balance profit84,6 ../million RR /Budgetary profit81,5 ../million RR /Number of jobs during construction3 000 /people

*

- Table of technical-and-economic figures of Argunsky hydro-electric power stations chain No./ Name , / Volume of accumulation, m , / Area of accumulation, ha , /. / Flow rate, m/s , /Net effective head , metres , / Total capacity, megawatt , . /. / Annual output, million kWh1- Chiri-Yurtskaya47,5106335,426029,3321312- Duba-Yurtskaya145106504,526044,66491843 Zonakhskaya221068024590802014 Nikhaloyskaya2510698,5240106,7832155 Kokadoyskaya26106145,923546,832876- Itum-Kalinskaya230106417,4235156,81172447- Ulus-Kertskaya34106134,4227,574,124081,28 Nezhiloyahk60106131,8227,5116,3563130,39- Sharo-Argunskaya75106211,522597,24787,910 Khima90106221220445,6178185,77211547,111 Promishlenniy channel and Chernorechenskaya18844,67291591,7

* 1- Economic benefit of the 1-st line of Argunsky power stations

-/Chiri-Yurtskaya-/Duba-Yurtskaya /Promishlenniy channel , /Planning horizon, years404040 , ../Net present value, million RR8 646,04 521,0109,0 , % /Internal rate of return, %10,410,97,0 (B/C), /Ratio of profit and expenditure2,72,21,5 , /Time of return of investment, years151515

400 300 / , , . 1 . , .*Description and goal of the project

Grozensky thermal power plant with total electric power capacity of 400 megawatt and heating capacity up ot 300 Gcal will allow together with Argunsky hydro-electric power stations chain and Argunsky heat power plant to fully satisfy needs of the economy of the Republic in electrical and heat energy.Also it will allow to sell outside the Republic up to 1 billion kW. It partially covers the shortage of electric energy in Northern Caucasus Federal District.

, - (-, . -.. , .).*Construction of Groznensky thermal power plant will allow to recover district heating system in central and west part of the capital of the Republic, supply heat and electric energy for newly constructed projects of social-household purposes with increased energy-output ratio and number of stories in the center of the capital (Grozny City, Sports Complex named after A-Kh.A.Kadirov, newly reconstructed industrial area in Zavodskoy district of Grozny).

* Economic benefit

/Description/Values /Total investment outlay24 000 ../million RR /Electricity production3 360 . .//million kWh/year Total receipts from realization of output6 559,2 ../million RR/Profit1 900 ../million RR

*

/Description/Values /Planning horizon20 /years / Net present value870,2 , %/Internal rate of return, %10,5 /Budgetary profit16 520,0 ../ million RR (PBP)/Payback time17 /years : , /Number of jobs created; during construction after construction, inclusive of infrastructure 2000 ./people

300 ./people

* -

, . - , , .

. 500 550 . 1152000 ..

Project goal- creation of a tannery

This project will allow to create a modern leather industry, provide desired output and quality leather working. Because of the decrease of domestic manufacture of rawstock processing in recent years there has been a negative economical tendency of run-off of cheap rawstock into Near Asian countries, particularly into Turkey, and increase of delivery of expensive products light industry of foreign production.

Creation of domestic manufacture on processing of rawstock will allow to change the situation and provide the population of the region with quality and accessible large-scale goods. The volume of skins worked on the tannery will be 500 cow and 550 sheep skins a day.

The yearly production of the tannery is 1152000 m2.

*

/Description Value /Planning horizon 15 /years /Volume of investments2000662 000 ./RR ( )/Receipts (without VAT)24 678229000 ./RR, /Prime cost, including taxes14448746000 ./RR /Net profit8149859000 ./RR /Grand total of tax payments into budgets various levels4780000000 ./RR

/Net present value418139000 ./RR /Internal rate of return19,75 % /Payback time 8 /years3 /monthsDiscounted payback time12 /years6 /months

* : ; ; .

243 .

The project encourages resolution of a whole system of diverse problems of regional scale: employment; local budgetary recharge; development local industry;.

Implementation of project will create 243 jobs.

* . . , : .The proposed production rate of the tannery will fully meet industrial requirements the shoemaking factory. This project represents a cluster approach to development of the economy of the Chechen Republic. Under the cluster approach it is planned to realize two projects with common financial connections: leather manufacture and construction footware factory.

* , (), .Project goal - creation of a factory on production of model and sporting footwear, with employment of technology of Alpina company. With this company a program of phase-in of the factory into operation has been developed.

*

/DescriptionValue /Planning horizon 15 /years /Volume of investments2691055 000 ./RR ( )/Receipts (without VAT)65561 612000 ./RR, /Pime cost, including taxes45240 546000 ./RR /Net profit16197 644000 . /Grand total of tax payments into budgets various levels13 900000000 .

/Net present value2113 270000 ./RR /Internal rate of return28,76 % /Payback time 6 /years 7 /months /Discounted payback time8 /years10 /months

* , , - , . , . There is a preliminary agreement, that after verification of quality and passing quality control, the end product of the factory will be sold through retail network of Alpina company, which is one of the worldwide shoemaking leaders and has its own stable and reliable market outlet. The investment project involves high technology, providing desired output and production of quality footwear

* , 2200000 . 2 961 , 5000 , .Realization of this project will allow to create shoe production, designed for production of 2200000 pairs of various sorts of quality model footwear annually. Under this project there will be 2 961 workplaces, in the long term up to 5 000 person. It will allow to considerably decrease unemployment and lower social strain in the Republic.

* , . , , : , , , . It is planned to construct and start factory capacities of automotive industry, production of car parts using already available infrastructure. It is planned to design and produce several line-ups of cars, including new types for Russian car production: small pickups, off-road vehicles with body made of composite materials, front-drive cars on the basis of lineup of JSC Avtovaz, and automotive vehicles.

* , , , .The world history shows that one of the most efficient integral branch is the automotive industry, that can be the engine for industrial development of a country or region. This branch has been selected as one of the priority-oriented for development of the economy by the Government of the Chechen Republic .

* : , , , 5000 , 100 2008 ( 2008200100701).Summary: At the moment JSC Avtovaz has necessary production spaces, power base, transport capacities, as well as the staff and engineering manpower on assembly production of 5 000 cars of JSC Avtovaz lineup. This production has been awarded by a Diploma of 100 Best goods of Russia in 2008 (Diploma # 2008200100701) .

* LADA: In accordance with the agreement between JSC Avtovaz and JSC Chechenavto it is planned to produce parts for LADA cars.

../#/Description - . . Q-tythous. a year 1- / Clutch housing50-602 / Transmission case50-603 / Transmission cover50-604 /Cylinder front right brake50-605 //Cylinder left right brake50-606 /Steering gear box 50-607 /Casing cover of RM50-60

* Economic benefit

/ Description /Value , ../Aggregate investments, thous. RR20337 083 , ./Planning horizon, months146 - PB, /Pay-off period, years 7,8 - DPB, /Discounted pay-off time, years10,3 NPV, ../Net present value, thous. RR 2 279 048,2 IRR,Internal rate of return 21,0% . , ..Discount. income of budgets all levels 13 055 750 /federal budget 6 646 729 /region budget6 282 380 /local budget 126 642 /Budgetary pay-off period: 0,2 (2) , (.) /federal budget, years (months) 0,2 (2) , (.)/region budget, years (months) 0,2 (2) , (.)/local budget, years (months). 0,2 (2) , .. /Gross Regional Product, thous.RR302 837

* /essence of the project . /The project is planned to be realized in three stages. The stages will be realized simultaneously. 1. /Stage 1 ./ Organization of assembly production of light-emitting-diode lamps on primary production space. 2. /Stage 2 , ./Construction of basic production, warehouse and office complex for production of light-emitting-diode lamps.6 /types of lamps 10 /types of lamps . / Stage. Organizational Preparation /Creation of joint production plant LLC OOO Mezhregionalniy Inehcenter,

*

/Investor /Process of financing and delivery of materials and parts /Process of ready delivery and payback from its sale. /Subsidization of a part of credit interest rate/Market:/ Distribution /Direct sales /Engineering projects /Network projects /Process of ready delivery and payback from its sale.

/Government of the Republic /LLC OOO Mezhregionalniy InehcenterProduction of lamps , /Group of companies Tsers, NP MF DSK Procurement of materials and partsSales of products

/business model of the project

*500 . ./million RR 39 . ./ Taking into account financial expenses on service of the credit line

/For financing of the project it is required:

/Calculated financing requirement of the project461 . ./million RR /that is: / Investment outlay362 . ./million RR /Construction of production162 . ./million RR /Equipment200 . ./million RR /Formation floating assets99 . ./million RR

* /integral figures of the project / Tax payments during the period of the project392 . ./million RR

/Descritpion/Value /Discount rate10,00% /Pay-off period35./months (2/years 11 ./months) /Discounted pay-off period39./months(3 /years /and 1 ./month) /Average rate of profitability42 % /Net present value104 575. ./thous. RR /Productivity index1.22 21,54

, 3 65,0 . 3/. .

The Chechen Republic has a resource geothermal waters, which is on the third position in the Russian Federation with a volume of 65,0 thous. m3/dayIn spite of exceptionally favourable conditions the energy of geothermal waters in the Republic is practically not used.

2020 . 4781,6 . . 3 .

1 576,6 . . 2011-2012 . The project involves development systematic solutions for useful application of geothermal waters in the Chechen Republic to before 2020.The project costs 4781,6 million RR and consists of 3 stages.

1 stage costs 576,6 million RR. covers 2011-2012 .

1 - 2 3 . :2 2013-2015 .. 1 605, 0 . .-3 2016-2020 .. 2 600, 0 . . Based on the results of realization of 1 stage it is planned to develop construction documents for 2 and 3 stages. Costs and period of realization of other stages:2 stage for 2013-2015 and costs1 605, 0 million RR.-3 stage for 2016-2020 and costs2 600, 0 million RR.

1 / Effectiveness of the 1 stage of the project

/Description/Value /Investments, .../including /Investment funds /Investment loan /Own funds 576, 6 . ./million RR255,0 .. /million RR272,8 .. /million RR48,8 .. /million RR /Capacity on heat energy308 ./thous.Gcal

(NPV)/Net present value140,7 ../ million RR

(IRR)/Internal rate of return22,9 /Budgetary efficiency777,88 ../million RR

/Gross Regional Product23,10 .. million RR

/payback time 4,5 /years /Jobs created51 ./people

- 50 % 4781,6 .. . In accordance with the model of the business there is planned participation of investment funds the Russian Federation at the rate of 50 % in total financing of the project with cost of 4781,6 million RR and a foreign investor.

. , 22 2010. 2011 . : - - - ; ; - , -. This project has been selected as a priority-oriented investment project. The project was included into The development strategy of electrical energy industry of NCFD, confirmed by Ministry of Energy of Russia October 22, 2010. In 2011 the project was included in the Plan of measures and into the Investment plan for follow-up realization under the government program in NCFD.Maturity of the project: Preliminary feasibility study of research and development work technical and economic assessment of usage of geothermal resources of Khankaslky minefield; Conception of development Oktyabrski minefield of the Chechen Republic; Business plan Integrated use of geothermal waters of the Chechen Republic developed by AB-Consulting.

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