Introducing Investment Opportunities in Kish Free Zone Organization

Kish Free Zone Organization

1 Kish Free Zone Organization

SHAHRIG Directed By Shahrig Engineering Co. www.shahrig.com [email protected] Tel/Fax: (+9821) 22328194

Design & Publishing by: Padidar Andishe Parsian -B.Bagheri- Shahizade Tel/Fax: (+9821) 88876355 (15Line)

2 Kish Free Zone Organization

3 Kish Free Zone Organization INDEX

Managing Director Message ...... 5 Kish at a Glance ...... 8 Unique advantages of Kish free zone ...... 8 Advantages and infrastructures of economic activity in Kish free zone ...... 8 Rewards and supporting policies for investment in Kish free zone ...... 9 Investment and economic activity procedures in Kish free zone ...... 10 Investment Projects: Entertainment Projects: Outdoor amusement park ...... 25 Indoor amusement park ...... 29 Roller Coaster ...... 33 Ferris wheel ...... 37 Tourism train ...... 41 Winter games complex ...... 45 Mini-golf course ...... 49 Persian Gulf Marine Species Aquarium...... 53 Expansion of Ladies’ beach ...... 57 Cruise ship Services ...... 61 Sea Entertainments Center...... 65

Residental and Restaurant Projects Green Tower ...... 71 Kish Pearl Tower ...... 75 Air restaurant ...... 79 Lighthouse Tower ...... 83 Greek ship complex ...... 84 water villa ...... 91 Olympic Restaurant ...... 95 Pardis Garden ...... 99 Baghu Tourist complex ...... 103

Services Projects Health town ...... 109 Hydrotherapy, Spa and physiotherapy center ...... 113 International Exhibitions Center ...... 117 Concert Hall ...... 121

Manufacturing Projects Fish prossesing ...... 127 Fish Farming ...... 131 Sub-zero Fridge ...... 135 Cartilage Proteases Production ...... 139

Partnership & Financing of Infrastructure Projects ...... 143

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In the name of God

Population growth and subsequently an increase in demand and consumption, impose an ever increasing pressure on unregenerable resources and even regenerable resources. Therefore, proper and effective managements go for the best resolutions for states commercial promotion and they approach science oriented economy in order to predict upcoming events and achieve an economic growth in accordance with such changes. Establishing free zones across the world is mainly for the purposes of providing required facilities for achieving national development and entering international markets by taking advantage of relative benefits of such zones. To achieve a multi-dimensional development in the free zones, we strongly need to develop our regional and international economic and trade cooperations as well as taking advantage of technologic and scientific experiences and progresses of other countries. National economy is connected to the world economy through investment and trade channels and creating a market oriented economy is a concept widely accepted in most countries. The free zones are able to manage the problems, resulting from technology globalization and causing a change in marketing and system of supply in market, by providing information and establishing international relations while considering facilities for seeking foreign investors. For this reason, as active players in world changing domain, the free zones are able to manage countries toward globalization, therefore, establishing a trade diplomacy with other parts of the world, is one of the main missions of such zones and free zones should be deemed as a pattern for development of Iran 2025. As the first free zone in Iran centered in two concepts of tourism and trade, Kish beautiful island is nowadays known as one of the best targets for investment purposes across the country and making Kish as a perfect pattern to achieve state economic development goals is what constantly emphasized on, as a prominent principle in policies and decisions making of the mangers and authorities of Kish Free Zone Organization.

Ali Asghar Mounesan Board Chairman & Managing Director

5 Kish Free Zone Organization

Ali Asghar Mounesan, Board Chairman and Managing Director Office Tel: (+98764) 4422841/4420233/4420231 E-mail: [email protected]

Ali Jirofti, Economy & Investment Deputy Office Tel: (+98764) 4423645/4423643 E-mail: [email protected]

Hamid Reza Shirzad, Investment Director Office Tel: (+98764) 4423675 E-mail: [email protected]

Seyed Reza Samadi, Industries Director Office Tel: (+98764) 4421199 E-mail: [email protected]

Seyed Abbas Akhavan, Marketing Office Director Office Tel: (+98764) 4422938 E-mail: [email protected]

Masoud Nikafrouz, Planning & Economic Studies Director Office Tel: (+98764) 4422141-2 E-mail: [email protected]

6 Kish Free Zone Organization

7 Kish Free Zone Organization

1) Kish Island at a glance 1-1) Geography With an area about 91 Km, Kish Island is located free and economic zones. Furthermore, some in 18 Km of south part of Iran and in north part development measure are to be taken regarding of Persian Gulf. It appears to be in the form increasing the number of domestic tracks. of an oval with the big diameter of 15 Km and Likewise, this airport connects Kish Island to small diameter of 8 Km and it falls in the area the world wide transportation system through of Hormozgan province and Bandar Lengeh international tracks of Dubai, Turkey, Iraq as city in terms of state political and administrative well as other countries. It should be noted that divisions. private terminal of Kish International Airport with Some geographical features of Kish such as being capacity of 4 million passengers per year will be located in Persian Gulf strategic geographical utilized by 2016. zone, fine climate in 8 months of year and having coral beaches have provided this island with a so 1-5) Marine transportation unique situation in terms of tourism and trade. Kish port enjoys annual warehousing and product 1-2) Population demography unloading capacity of 3.5 million tons, admission According to the census carried out in 2011, total capacity of 730000 passengers entering and population of Kish is 23027 facing a growth equal exiting during a year as well as hosting vessels to 39/5% (3/6% annually) comparing to year with maximum tonnage of 12000 tons. This 2000. Based on this, annual average growth of capacity will be increased to 7 million tons in number of the families living in the island has the future with possibility of hosting 35000-ton been estimated 3% with 7446 habitants through vessels. the years 2006 to 2011. Likewise, gender 1-5-1) New passenger terminal for Kish trade proportion has been estimated to be 112/5 males port in lieu of every 100 females. With an area of 7500sqm and approximate structure area of 12000sqm and daily admission 1-3) Land transportation capacity of 3500 passengers, this terminal is Kish urban transportation system has created constructed in 3 storeys consisting of office a wide covering across the island by providing spaces, VIP salon, bank, ticket selling booths, different roads and paths. Public transportation customs, restaurant, shops and welfare areas, services are provided by two types of line taxis waiting salons, fully smart and modern air (in yellow) with 128 vehicles and telephone condition systems as well as safety and security taxi (in white) with 506 vehicles, totally for 634 systems. vehicles, in addition to 79 minibuses. Ring project in width of 75m and in length of 27 Km 2) Unique advantages of Kish free zone (named as Persian Gulf Highway) is one of the - Tourism enormous attractions most important plans for developing Kish intercity - Access to world free waters transportation infrastructures, going around the - No need to visa for foreign visitors island and the large part of the project is already - Strategic situation and closeness to Asalooyeh put into operation. oil zones - Energy resources (gas fuel) independent from 1-4) Air transportation the main land Kish International Airport is one of the most - Independent air lines and shipping lines with active and economic Iranian airports and stands ability to carry vehicles in the fourth rank in terms of volume of flight - High level of social security and peace and low operations and transporting passengers. This rate of social disorders airport provides regular flights to 15 domestic - Appropriate intercity transportation facilities tracks including 12 provincial centers and 2 state - Relative control of environmental pollutants

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- Access and closeness to international ports and registration system by the help of Iranian cities like Dubai, Sharjeh, Manama and Doha Ministry of Commerce and Trade Development 3) Advantages and infrastructures of Center. Due to easiness in order registration for economic activity in Kish free zone tradesmen and investors, this system has been - 20-year tax exemption for any kind of activity widely welcomed by tradesmen. - Legal guaranty and support for foreign 4-3) Supporting special brands investment While severely treating fake brands and - Company registration with 100% foreign preventing putting up advertising signs by legal or ownership real individuals lacking agency, Kish Free Zone - Activity of foreign stock exchange and product, Organization is offering some special benefits to oil and petrochemicals exchange the agencies representing reputable domestic or - Exemption from customs duties for importing international brands that can be mentioned as raw materials and industrial machinery for follows: manufacturing units 10% discount for the zone duties for the agencies - Simple formalities for re-exports and product representing popular brands with valid standard transit who provide after sales services against - Product transit to the countries of Middle Asia submission of relevant documents and in case and neighboring countries with a population over of no long stop time for the product in transiting 400 million country up to one month if transiting (article 4-17 - Hosting vessels with capacity of 12000 tons of instruction for exports, imports and customs presently and 35000 tons in the future under No. 04/04-14300D dated 2 Mar. 2008). - Exporting products abroad without customs 4-4) Customs affairs and special discounts and port duties for customs tariff - Low commercial interest for importing products to the country through Kish Island by 15% To encourage, attract and flourish product - Independent customs in the free zones in the imports to the country through the free zones, point connecting to the international markets as per ratification No. 64648 dated 3 Mar. 2004 - Free entering and exiting for capital principal of the cabinet, trade interest will be decreased and interest. by 15 % of product value in this way that when entering products, the customs of the free zone, 4) Rewards and supporting policies receives a sum equal to 15% of declared value of product on cash or through a bank letter of for investment in Kish free zone guaranty with a 4-month due date and after forwarding products to the main land, it will return 4-1) Supporting investment in tourism and 7 to 11.5% of received sum (for the costs related recreational projects to importation of products to the zone that means To develop tourism and flourish the area and 15% of received amount on cash or through letter of guaranty) as per a stair table to the product seek investors for investment and carry out owner. projects in accordance with the organization In case of tradesmen importing products to the strategic polices, Kish Free Zone Organization main land, they may import one fourth of products is providing special facilities to the investors in to Kish Free Zone without paying customs duties. recreational, tourism, trade, servicing, etc. areas. 4-2) Order registration 4-5) Imports For the purpose of developing E.commerce and Except the products known as illegal according to seeking tradesmen and investors, Kish Free Islam or the zone special regulations, importing Zone Organization has established product

9 Kish Free Zone Organization

any kind of product to Kish free zone is allowed. P.O. Box for a month if they wish. Products importation includes the followings: - Exemption from port and airport duties for 5) Investment and economic activity importing products required for construction of procedures in Kish free zone manufacturing, trade, service, residential units and infrastructural activities (except furniture 5-1) Investment procedure in non-industrial and decorative products), such as materials and equipment for construction and machinery, raw fields materials, components and parts required for To inform the investors of procedure of admission manufacturing, manufacturing equipment and and process investment plans in non-industrial tools, spare parts for machinery producing capital vehicles (except sedan cars and recreational fields (such as residential, tourism, service, etc. boats) fields) diagram No. 1 can be referred to asa guide for the investors in their referral, making an - Returning port and airport duties for export and application and the remaining procedure. Making import of products taken from the products once an application procedure for the investors in entering the country from abroad or other free zones in case of reexport. nonindustrial fields is as follows: 4-6) Transportation 1) Submitting a written application to Kish Free To encourage imports and exports and product Zone Organization (Investment Management in issuance, all the tradesmen who import their products to the zone by Kish Shipping Company Economic and Investment Deputy Office) will be subject to a 30% discount on freight. 2) Filling out investment application form and providing technical and financial capability required for carrying out the plan 4-7) Company registration 3) Initial study of the plan at Investment Management - Easy procedure for determining name and subject: Determining name of legal individuals will 4) Applying for a sketch from Urban and take place within 2 days. Meanwhile, determining Infrastructure Deputy of Free Zone Organization subject will be much easier comparing to the by Investment Management main land considering the free zones regulations 5) Putting forward issue of investment in Commission and particularly article 5 of the law for manner of for Economic Affairs and Property Assessment managing trade-industrial free zones. 6) Notifying ratification of Commission for Economic - Elimination of redundant office bureaucracy and Affairs and Property Assessment to the investor easy registration procedure: The applicants may register their companies within 3 or 4 days by the 7) Making contract with the investor in case of help of consultants to Companies Registration approval of the commission Office and this period is considerably less than 8) Delivering property to the investor the time at the main land and even other free zones and it is indeed competitive to other free zones across the worlds as well as developed countries. -Registering company with full foreign shareholders: By virtue of articles 2 and 5 of the regulations for investment in trade-industrial free zones, there is no limitation on registration of legal entities in terms of nationality. The foreign investors may investment under any proportion in the zone economic activities. - Virtual offices to be used by the investors: Legal individuals who lack a legal domicile may use

10 Kish Free Zone Organization Diagram No. 1: Investment procedure in industrial fields

11 Kish Free Zone Organization

12 Kish Free Zone Organization

5-2) Investment procedure in industrial fields Investment in industrial fields includes the following steps. For guiding and information of the investors, a sketch of 1st and 2nd phases of procedure is provided in diagrams No. 2 and No. 3.

5-2-1) Phase 1: Industrial investment procedure before taking delivery of property 1) Submitting a written application, required documents and filling out the questionnaire 2) Establishing of true technical and financial capability of the applicant and approval of Environment Office on the plan not being pollutant 3) Studying the plan and making a report for putting forward in Commission for Economic Affairs and Property Assessment 4) Applying for a sketch from Urban and Infrastructure Deputy Office 5) Notifying ratification of Commission for Economic Affairs and Property Assessment to the investor 6) Making contract and delivering the property to the applicant

5-2-2) Phase 2: Industrial investment procedure after taking delivery of property 7) Issuance of a letter of introduction for economic activity permit 8) Providing construction executive exhibits and drawings, obtaining construction license, starting construction operations, completing construction and obtaining work completion certificate 9) Importing machinery and raw materials without paying duties and mounting machinery 10) Starting up the plant 11) Submission of an application for obtaining value added share, filling out relevant questionnaire and obtaining added value percent from the added value commission 12) Transferring manufactured products to the main land based on obtained percentages and exports to foreign countries.

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Diagram No.2: Process of Investment in Industrial Field- Phase 1

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Diagram No.3: Process of Investment in Industrial Field– Phase 2

15 Kish Free Zone Organization 5-3) Commercial procedure Commercial procedure consists of three procedures of obtaining economic activity permit, product import card issuance and company registration with the zone companies registration office (for legal individuals).

5-3-1) Sub-procedure for obtaining economic activity permit To start any kind of economic activity in Kish free zone, obtaining economic activity permit through Commercial Management of Kish Free Zone Organization is essential. This kind of permit will be issued on one year basis and as per type of application. The required documents for obtaining economic activity permit are outlined below and diagram No. 4 depicts procedure of obtaining economic activity permit.

Documents required for issuance of economic activity permit:

- A copy of contract for purchasing or leasing place of activity or title deed - Letter of consent of civil partners indicating issuance of economic activity permit to the favor of one of them - Copy of the applicant’s Id. Card (for legal individuals copy of the managing director’s Id. Card), copy of passport for non-Iranian nationals - Two photos of the applicant regarding real individuals - Work completion certificate or valid no breach certificate - Approval of Places Bureau of Disciplinary Police after conducted inquiry - A guild qualification letter of introduction for service, trade, tourism units and reception centers from the competent authorities - Approval for industrial, tourism, service, cultural and transportation activities

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Diagram No.4: Sub-Process of Issuing Business Permit

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5-3-2) Sub procedure for issuance of product importation card Obtaining such card is essential for imports and exports in Kish free zone through the commercial management of Kish Free Zone Organization. This card will be issued merely upon having a valid economic activity permit and appropriate for its subject matter for a year and once relevant charges are paid. It should be noted that this card is for importing products from the origin of other countries to the destination of Kish Island and it is valid at the customs of free zone organization as it is at the customs of the main land. Diagram No. 5 shows procedure for issuance of product importation card for guiding tradesmen and investors. Documents required for obtaining product importation card: - Filling out and submission of an application for product importation card - A 3×4 photo (photo of managing director for legal individuals) - Submission of a receipt from financial affairs of the organization indicating payment of card issuance charges of the applicant regarding real individuals

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Diagram No.5: Sub-Process of Issuing Commercial Card

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5-3-3) Company registration sub procedure 5-3-3 B) Private Joint Stock Company (for legal entities) - Filling out company registration booklet (for Required documents for company registration private joint stock companies) including: in order of Ltd. company and private joint stock - Two copies of statements, filled out and signed company are provided in this part and for guiding by all the shareholders and information of the applicants; a sketch of - Two copies of the articles of association, filled company registration procedure can be seen in out and signed by all the shareholders diagram No. 6. - Two copies of minutes of board of founders, signed by all the shareholders and inspectors 5-3-3 A) Liability Limited Company - Two copies of minutes of the first meeting of - Filling out company registration booklet (for Ltd. board of directors, signed by all the mangers of companies) including: company - Two copies of the memorandum of association, - Copy of first page of Id. Cards of all the filled out and signed by all the partners managers, shareholders and inspectors of - Two copies of applications, filled out and signed company (in case such individuals have legal by all the partners entity, advertisement of gazette and agency - Two copies of the articles of association, filled action should be submitted instead of copy of Id. out and signed by all the partners Cards) - Two copies of minutes of board of founders, - A certificate of one of the banks in Kish Island filled out and signed by all the partners and indication depositing at least 35% of capital mangers of company - In case the whole or a part of company’s capital - Copy of first page of Id. Cards of all the partners is non-cash, calendar for non-cash capital by an and managers of company (in case such official expert to the Justice Administration individuals have legal entity, advertisement of - Copy of economic activity permit to the favor gazette and agency action should be submitted of the company issued by the commercial instead of copy of Id. Cards) management of the organization - In case the whole or a part of company’s capital - Payment of all charges relevant to company is non-cash, calendar for non-cash capital should registration and gazette advertisement after be provided by the partners. completing all the documents - Copy of economic activity permit to the favor - Sealing trade books of company (one ledger of the company issued by the commercial book and one daily book) after company management-economic activity card issuance registration section - Payment of all charges relevant to company registration and gazette advertisement - Sealing trade books of company (one ledger book and one daily book) after company registration Important note: Before completing the documents, approval of the zone companies registration office on the name proposed by the company as well as subject of activity of company should be obtained. Meanwhile, documents should be provided typed and if they are handwritten, they should be clear and readable with no erasure or lacquered and written with the same pen.

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Diagram No.6: Sub-Process of Company Registry

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5-4) Procedure for customs affairs and product clearance Carrying out customs formalities in Kish free zone takes place by two entities of Customs of Islamic Republic of Iran and Customs of Kish Free Zone. Imports and exports of products with origin of a foreign country as well as export of all products from Kish Island to other countries will take place in Customs of Free Zone Organization and customs affairs for products with domestic origin in Customs of Islamic Republic of Iran. Clearance of products from the organization customs is shown in diagram No. 7. Diagram No.7: Process of Costum-Clearance of Cargo

22 Kish Free Zone Organization Residental and Restaurant Projects

23 Kish Free Zone Organization Residental and Restaurant Projects

24 Kish Free Zone Organization Entertainment Projects

25 Kish Free Zone Organization Entertainment Projects Abstract of The Project’s Specifications A- Project Introduction

1. Project title: Construction an outdoor amusement park 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Play equipments, food stores and fast food 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is for construction of an open fun fair in the level of international standards for creating an entertaining space for all age groups in an exciting and attractive environment. This complex includes 18 types of so exciting games such as Vortex, frees bee, throwing sway, horrible ring, space skate, ranger, spaceship, Yofo, electric car, Saba ship and waterfall for adults and throwing chair, electric car, Saba ship, train, rally, dragon (around pool) and spaceship for kids. A property with an area of 20000sqm is considered for this project that 4080sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 50 people and its annual capacity is more than 700,000 customers.

7. Annual Capacity: 700,000 customers per year 8. Land requirement: 20,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

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10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 2 years and the operation phase is 15 years. 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

Item Infrastructure required Distance to project location 1 Water At the site 2 Electricity At the site 3 Gas None 4 Telecommunication At the site 5 The main road At the site 6 Airport 4 km 7 Harbor 10 km 8 Railway station 380 km

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 8.9 million Operating Revenue USD $ 8.3 million Operating cost USD $ 1.3 million

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Entertainment Projects 15. Financial index

Net benefit USD $ 7.0 million Benefit–cost ratio (B/C) 2.9 Payback Period 1.9 Years

16. Economic index

Net present value (NPV) USD $ 22.9 million Internal rate of return (IRR) 62 % Break-even point 6 %

17. Methods of participation: For this project, investor may proceed with individual investment by purchasing properties and payment of costs for obtaining necessary permits or undergo partnership with Kish Free Zone Organization for carrying out project through various partnership models. In case of intending to have partnership, costs of property and plan permits will be considered as contribution of the organization. C- Incentives, features and advantages of the project: 18. Incentives:

• Simplified formalities for re-export and goods transit • Tax exemption and the benefits of accessing to foreign • 20-year tax exemption for any type of financial business • Preferential rates of land to build hotels and recreational- tourism places. • Customs duties exemption to imports raw materials and industrial machinery of the production units • No restrictions on entry and existence of the exchange currency on any amount and the possibility to transfer money to foreign companies. 19. Support and legal advantages: • Foreign nationals’ entrance with no visa • Legally protecting and ensuring foreign investors. • Registering company with 100 percent foreign ownership • Have the right of entry and exit the capital and the profits

20. Special and unique benefits of the region:

• Having access to the international free waterways • Having an energy source (gas) independent of the mainland • The ability to transit goods to neighboring CIS countries and Iran • High level of security and social peace and low levels of social disorder • A harbor with the ability of berthing vessels with 12,000 tones capacity. • Exporting products to foreign countries without paying customs and harbor duties • International Securities Exchange activity and oil and petrochemical products stock • Having good optical fiber network and an independent private mobile network privileges • Having an independent airline and shipping lines with the possibility of transporting vehicles

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29 Kish Free Zone Organization Entertainment Projects Abstract of The Project’s Specifications A- Project Introduction

1. Project title: Indoor amusement park 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Electronic and mechanical play equipment, -5D cinema, restaurant, fast food and coffee shops 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is for construction of a roofed fun fair in the level of international standards for creating an entertaining space for all age groups in an exciting and attractive environment. This complex contains various kinds of so exciting electronic and mechanical games, bowling, world of computer games, video game sets, rewarding game sets, game sets for children, table game sets, mini gulf, multi- dimensional cinemas, restaurant, coffee shop and fast food lots. A property with an area of 15000sqm is considered for this project that 11000sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 83 people and its annual capacity is more than 700,000 visitors.

7. Annual Capacity: 700,000 customers per year 8. Land requirement: 15,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

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13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 26.6 million Operating Revenue USD $ 24.6 million Operating cost USD $ 4.1 million

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Entertainment Projects 15. Financial index

Net benefit USD $ 20.5 million Benefit–cost ratio (B/C) 2.8 Payback Period 2.0 Years

16. Economic index

Net present value (NPV) USD $ 65.9 million Internal rate of return (IRR) 60 % Break-even point 10 %

20. Special and unique benefits of the region:

32 Kish Free Zone Organization Entertainment Projects

33 Kish Free Zone Organization Entertainment Projects

Abstract of The Project’s Specifications A- Project Introduction

1. Project title: Construction the Roller Coaster 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Roller Coaster 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is for construction of an exciting rollercoaster as per the latest international standards to be made in kind of steel structure with approximate track length of 2000m, maximum height of 60m, speed of 150 Km per hour, approximate travel time of 3:30 minutes and with three trains each hosting 32 persons and 960 persons per hour. A property with an area of 10000sqm is considered for this project that 5000sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 17 people and its annual capacity is more than 1.5 million visitors.

7. Annual Capacity: 1.5 million visitors per year 8. Land requirement: 10,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

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13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 39.5 million Operating Revenue USD $ 27.3 million Operating cost USD $ 5.6 million

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Entertainment Projects 15. Financial index

Net benefit USD $ 21.6 million Benefit–cost ratio (B/C) 1.7 Payback Period 2.5 Years

16. Economic index

Net present value (NPV) USD $ 31.8 million Internal rate of return (IRR) 38 % Break-even point 14 %

20. Special and unique benefits of the region:

36 Kish Free Zone Organization Entertainment Projects

37 Kish Free Zone Organization Entertainment Projects Abstract of The Project’s Specifications A- Project Introduction

1. Project title: Ferris wheel 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Ferris wheel, restaurant, coffee shop, shopping centers 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is about construction of a Ferris wheel in height of 60m, with 42 capsules each with capacity of 6 persons and travel time of 30 minutes per round. An area with 490m is allocated for restaurant and coffee shop and 490m for trade area. A property with an area of 5000sqm is considered for this project that 1000sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 41 people and its annual capacity is more than 500,000 visitors.

7. Annual Capacity: 500,000 visitors per year 8. Land requirement: 5,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

38 Kish Free Zone Organization Entertainment Projects

10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 3 years and the operation phase is 15 years. 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 16.6 million Residential and shop sale revenue USD $ 2.7 million Operating Revenue USD $ 34.0 million Operating cost USD $ 3.1 million

39 Kish Free Zone Organization

Entertainment Projects 15. Financial index

Net benefit USD $ 30.9 million Benefit–cost ratio (B/C) 1.7 Payback Period 2.3 Years

16. Economic index

Net present value (NPV) USD $ 15.0 million Internal rate of return (IRR) 42 % Break-even point 15 %

20. Special and unique benefits of the region:

40 Kish Free Zone Organization Entertainment Projects

41 Kish Free Zone Organization

Entertainment Projects Abstract of The Project’s Specifications A- Project Introduction

1. Project title: Tourism train 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Excursion with tourism train, coffee shop and fast food 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is for construction of railway for tourism train. The railway track starts from Hoor village in the west part of the island and passes through the cultural zone as a symbol of Kish, the Greek ship, Baghoo village, Padideh dream like city, Health town, Deer Park, Water Park and beach village and at the end reaches Dolphins Park. The same route is taken on the way back. Total track is 17 Km with three stop stations on the way with 15 minutes of stop in each of them. Five electric locomotives each with capacity of carrying maximum 60 passengers will be active in this track. Maximum speed of wagons will be 50 Km per hour and the track will be taken within 90 minutes by considering the stops. Each station will provide welfare services such as coffee shop and restaurant, shops and sanitary services for the tourists. A property with an area of 5000sqm is considered for this project that 3100sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 120 people and its annual capacity is 730,000 visitors. 7. Annual Capacity: 730,000 visitors per year 8. Land requirement: 5,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

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13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 22.5 million Operating Revenue USD $ 11.0 million Operating cost USD $ 1.1 million

43 Kish Free Zone Organization

Entertainment Projects 15. Financial index

Net benefit USD $ 9.9 million Benefit–cost ratio (B/C) 2.0 Payback Period 2.9 Years

16. Economic index

Net present value (NPV) USD $ 23.4 million Internal rate of return (IRR) 37 % Break-even point 5 %

20. Special and unique benefits of the region:

44 Kish Free Zone Organization Entertainment Projects

45 Kish Free Zone Organization

Entertainment Projects Abstract of The Project’s Specifications A- Project Introduction

1. Project title: Construction of a Winter Games Complex 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Winter Games 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is for construction of a salon for winter and ice skating games. This complex has a salon in area of 1000sqm covered with synthetic ecologic ice panels. These panels have a temperature resistance ranging from minus 35 to positive 70. In addition to sports like hacky, skating and ice skating, such salons can be used for holding various events. Therefore a platform for spectaculars with capacity of hosting 800 persons is considered for this project. A property with an area of 4000sqm is considered for this project that 2600sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 21 people and its annual capacity is more than 200,000 visitors.

7. Annual Capacity: More than 200,000 customer per year 8. Land requirement: 4,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

46 Kish Free Zone Organization Entertainment Projects

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 3.1 million Operating Revenue USD $ 3.0 million Operating cost USD $ 0.4 million

47 Kish Free Zone 15. Financial index Organization Entertainment Projects Net benefit USD $ 2.6 million Benefit–cost ratio (B/C) 3.2 Payback Period 1.8 Years

16. Economic index

Net present value (NPV) USD $ 8.6 million Internal rate of return (IRR) 66 % Break-even point 6 %

20. Special and unique benefits of the region:

48 Kish Free Zone Organization Entertainment Projects

49 Kish Free Zone Organization Entertainment Projects Abstract of The Project’s Specifications A- Project Introduction

1. Project title: Construction of a theme park and mini-golf course 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Park and mini-golf course 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is about construction of a theme park and gulf playground in small scale. This project is designed for theme park in an area of 14000sqm in the form of a gulf playground. In this place, elements of gulf play ground in small scale are used. It also enjoys 1200sqm for children playground, 250sqm for trade lots and 1000sqm for restaurant, fast food and coffee shop. Such parks are constructed in many American cities and so welcomed by various people and by spending their leisure times in such parks, families may enjoy refreshing gulf play in amateur way and additional services. Each round of gulf play in such playgrounds takes time about 45 minutes and 100 players may play simultaneously in the same playground. The project provides jobs for 34 people and its annual capacity is 150,000 persons.

7. Annual Capacity: 150,000 persons per year 8. Land requirement: 20,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

50 Kish Free Zone Organization Entertainment Projects

10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 1 years and the operation phase is 15 years. 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 4.2 million Operating Revenue USD $ 3.1 million Operating cost USD $ 0.4 million

51 Kish Free Zone Organization

Entertainment Projects 15. Financial index

Net benefit USD $ 2.7 million Benefit–cost ratio (B/C) 2.3 Payback Period 1.2 Years

16. Economic index

Net present value (NPV) USD $ 6.4 million Internal rate of return (IRR) 52 % Break-even point %5

20. Special and unique benefits of the region:

52 Kish Free Zone Organization Entertainment Projects

53 Kish Free Zone Organization

Entertainment Projects Abstract of The Project’s Specifications A- Project Introduction

1. Project title: Persian Gulf Marine Species Aquarium 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Aquarium and Ancillary Services 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is about construction of a complex related to the Marine Species of Persian Gulf in two stories. Main aquarium tank, dimensioning 50m in length, 15m in width and 11m in height, will be located in the center of building and a tunnel in kind of transparent acrylic (Plexiglas) dimensioning 50m in length, 3m in width and 2.5m in height will go through the center this aquarium. Further parts, such as amphibians part, 4D cinema screening movies with themes related to underwater world, a center for selling aquarium and fishing tools as well as relevant training material, museums for fish and fossils of marine creatures, photo gallery, a place for holding various competitions for kids and adolescents, marine food and fast food restaurants and coffee shop will be constructed around the aquarium in two stories. A property with an area of 4000sqm is considered for this project that 2050sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 69 people and its annual capacity is more than 700,000 visitors. 7. Annual Capacity: 700,000 visitors per year 8. Land requirement: 4000sqm 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

54 Kish Free Zone Organization Entertainment Projects

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 37.9 million Operating Revenue USD $ 22.6 million Operating cost USD $ 3.6 million

55 Kish Free Zone Organization

Entertainment Projects 15. Financial index

Net benefit USD $ 19.0 million Benefit–cost ratio (B/C) 2.1 Payback Period 2.6 Years

16. Economic index

Net present value (NPV) USD $ 50.6 million Internal rate of return (IRR) 42 % Break-even point 2 %

20. Special and unique benefits of the region:

56 Kish Free Zone Organization Entertainment Projects

57 Kish Free Zone Organization

Entertainment Projects Abstract of The Project’s Specifications A- Project Introduction

1. Project title: Expansion of Ladies’ beach 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Ladies’ beach 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is for construction of a beach for ladies. This complex has a central building including clothes salon, management and security rooms, resting room for personnel, as well as other buildings such as guarding booth outside the complex, parking lot, bathing services, full wooden sun bathing pool, buffet, Asia salon, swimming and scuba diving tools shop, hairdressing salon, fruit juice and ice cream, fast food, coffee shop, accidental fountain platforms and swimming pools for kids and adults. Furthermore, some canopies, bowers and fixed and moving beds will be designed according to the area. A property with an area of 15000sqr is considered for this project that 3970sqr of that area belong to the buildings. The project provides jobs for 43 people and its annual capacity is more than 600,000 visitors. 7. Annual Capacity: 600,000 visitors per year 8. Land requirement: 15,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be leased to investors.

58 Kish Free Zone Organization Entertainment Projects

10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 1 years and the operation phase is 15 years 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 8.0 million Operating Revenue USD $ 4.6 million Operating cost USD $ 0.5 million

59 Kish Free Zone Organization

Entertainment Projects 15. Financial index

Net benefit USD $ 4.1 million Benefit–cost ratio (B/C) 2.3 Payback Period 2.6 Years

16. Economic index

Net present value (NPV) USD $ 10.8 million Internal rate of return (IRR) 42 % Break-even point 4 %

17. Methods of participation: For this project, investor may proceed with individual investment by obtaining necessary permits or undergo partnership with Kish Free Zone Organization for carrying out project through various partnership models.

C- Incentives, features and advantages of the project: 18. Incentives:

20. Special and unique benefits of the region:

60 Kish Free Zone Organization Entertainment Projects

61 Kish Free Zone Organization

Entertainment Projects Abstract of The Project’s Specifications A- Project Introduction

1. Project title: Cruise Ship travel Services 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Cruise ship Tickets 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is for construction of a center for marketing and selling tickets of entertainment ships. This complex has a building with so eye catching architecture near the relevant port consisting of various parts such as waiting salon, admission salon, management room, various shops and coffee shop. A property with an area of 2500sqr is considered for this project that 1250sqr of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 26 people and its annual capacity is 12,000 travelers.

7. Annual Capacity: 12,000 travelers per year 8. Land requirement: 2,500Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be leased to investors.

62 Kish Free Zone Organization Entertainment Projects

10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 1 years and the operation phase is 15 years. 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 1.2 million Operating Revenue USD $ 1.2 million Operating cost USD $ 0.3 million

63 Kish Free Zone Organization

Entertainment Projects 15. Financial index

Net benefit USD $ 0.9 million Benefit–cost ratio (B/C) 2.5 Payback Period 1.9 Years

16. Economic index

Net present value (NPV) USD $ 3.0 million Internal rate of return (IRR) 60 % Break-even point 7 %

C- Incentives, features and advantages of the project: 18. Incentives:

20. Special and unique benefits of the region:

64 Kish Free Zone Organization Entertainment Projects

65 Kish Free Zone Organization

Entertainment Projects Abstract of The Project’s Specifications A- Project Introduction

1. Project title: Construction of a sea entertainments center 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Sea entertainments 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is for construction of a modern and well-equipped sea entertainment center. Enjoying a beautiful architecture compatible with the beach environment, this center is constructed in two storeys including various parts such as waiting salon, admission salon, clothes room, sanitary and bathing services, training room, coffee shop, photography unit, personnel room, management room, equipment room, clothes laundry room, truss facing the sea, canopy, beach benches, etc. A property with an area of 3300sqm is considered for this project that 1600sqm of that area belong to the buildings. The project provides jobs for 65 people and its annual capacity is 460,000 costumers.

7. Annual Capacity: 460,000 costumers per year 8. Land requirement: 3,300Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be leased to investors.

66 Kish Free Zone Organization Entertainment Projects

10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 1 years and the operation phase is 15 years. 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 4.3 million Operating Revenue USD $ 15.8 million Operating cost USD $ 2.9 million

67 Kish Free Zone Organization

Entertainment Projects 15. Financial index

Net benefit USD $ 12.9 million Benefit–cost ratio (B/C) 4.8 Payback Period 0.7 Years

16. Economic index

Net present value (NPV) USD $ 52.3 million Internal rate of return (IRR) 203 % Break-even point 5 %

C- Incentives, features and advantages of the project: 18. Incentives:

20. Special and unique benefits of the region:

68 Kish Free Zone Organization

69 Kish Free Zone Organization

70 Kish Free Zone Organization Residental and Restaurant Projects

71 Kish Free Zone Organization Residental and Restaurant Projects

Abstract of the Project’s Specifications A- Project Introduction

1. Project title: Green Tower 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Hotel, restaurants, coffee shops, museums, conference halls, offices and shopping center 4. Location: Free zone Special Economic Zone Industrial Park Main location

5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is about construction of a -22storey tower enjoying technologies compatible with nature and according to the latest international standards. Such towers are named Green Tower. This tower has a storey for restaurant and a -5star rotating coffee shop, a penthouse storey, a storey for VIP suites, 12 storeys for hotel, a storey for recreational and sport area, a storey for restaurant, coffee shop and fast food, shopping center in four storeys and a storey for parking lot. A property with an area of 5000sqm is considered for this project that 3000sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 89 people and its annual capacity is more than 130,000 visitors.

7. Annual Capacity: 130,000 person per year 8. Land requirement: 5,000Sq.m 9. Land ownership: the land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

72 Kish Free Zone Organization Residental and Restaurant Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 4 years and the operation phase is 30 years.

12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 80.5 million Residential and shop sale revenue USD $ 73.3 million Operating Revenue USD $ 40.5 million Operating cost USD $ 8.4 million

73 Kish Free Zone Organization

Residental and Restaurant Projects 15. Financial index

Net benefit USD $ 32.1 million Benefit–cost ratio (B/C) 1.7 Payback Period 1.4 Years

16. Economic index

Net present value (NPV) USD $ 47.1 million Internal rate of return (IRR) 45 % Break-even point 12 %

20. Special and unique benefits of the region:

74 Kish Free Zone Organization Residental and Restaurant Projects

75 Kish Free Zone Organization Residental and Restaurant Projects

Abstract of the Project’s Specifications A- Project Introduction

1. Project title: Kish Pearl Tower 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Residential suites, hotel, restaurant, coffee shop, amphitheater and conference rooms, and shopping center 4. Location: Free zone Special Economic Zone Industrial Park Main location

5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is for construction of a -22storey tower in the form of pearl as a symbol for the island. This tower has a storey for a -5star restaurant and coffee shop in the upper storey, 3 storey for VIP suits, 10 storey for a -5star hotel, 1 storey for sport space and hotel common parts such as swimming pool and sauna, 1 storey for gathering salon and amphitheater, 4 storey as shopping center and 1 storey as parking lot. A property with an area of 10000sqm is considered for this project that 3000sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 101 people and its annual capacity is more than 160,000 visitors.

7. Annual Capacity: 160,000 person per year 8. Land requirement: 10,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

76 Kish Free Zone Organization Residental and Restaurant Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 3 years and the operation phase is 30 years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 130 million Residential and shop sale revenue USD $ 108.7 million Operating Revenue USD $ 57.7 million Operating cost USD $ 17.7 million

77 Kish Free Zone Organization

Residental and Restaurant Projects 15. Financial index

Net benefit USD $ 40 million Benefit–cost ratio (B/C) 1.5 Payback Period 1.5 Years

16. Economic index

Net present value (NPV) USD $ 69 million Internal rate of return (IRR) 47 % Break-even point 16 %

20. Special and unique benefits of the region:

78 Kish Free Zone Organization Residental and Restaurant Projects

79 Kish Free Zone Organization Residental and Restaurant Projects

Abstract of the Project’s Specifications A- Project Introduction

1. Project title: Air restaurant 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Serving meal at a height of 55 meters above the ground 4. Location: Free zone Special Economic Zone Industrial Park Main location

5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is for construction of an air restaurant serving food behind a table in heights of 50 to 55m. This restaurant is lifted by a structure designed in kind of tower and is equipped with special facilities. Suspending restaurant structure is 7 tons in weight and it reaches 11 tons with 36 persons (32 guests and 4 waiters) standing on it. Chairs of air restaurant are fully safe and have ability of 180 degrees of rotation. A property with an area of 3000sqm is considered for this project that 1350sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 14 people and its annual capacity is more than 100,000 customers.

7. Annual Capacity: More than 100,000 customer per year 8. Land requirement: 3,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

80 Kish Free Zone Organization Residental and Restaurant Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 1 years and the operation phase is 15 years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 1.7 million Operating Revenue USD $ 2.1 million Operating cost USD $ 1.1 million

81 Kish Free Zone Organization

Residental and Restaurant Projects 15. Financial index

Net benefit USD $ 1.1 million Benefit–cost ratio (B/C) 1.7 Payback Period 2.3 Years

16. Economic index

Net present value (NPV) USD $ 3.7 million Internal rate of return (IRR) 49 % Break-even point 19 %

20. Special and unique benefits of the region:

82 Kish Free Zone Organization Residental and Restaurant Projects

83 Kish Free Zone Organization Abstract of the Project’s Specifications Residental and Restaurant Projects A- Project Introduction

1. Project title: Lighthouse Tower 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Variety of restaurants, coffee shops, amphitheater, shopping center and art galleries 4. Location: Free zone Special Economic Zone Industrial Park Main location

5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is for construction of a sea lighthouse with entertainment and tourism application. This lighthouse consists of following parts: • Various kinds of diet foods restaurant, sea food restaurant, Iranian food restaurant, fast food, coffee shop and traditional tea house • Port (glassy floor, with capability for being used as a restaurant and relevant events and hosting vessels providing travel and sea entertainment services) • A club providing sea surfing and sea entertainment services • Art gallery and amphitheater • Sightseeing (mobilizing with equipment required for observing outlooks of the island from above the lighthouse) • A stage for playing live music • Nightly lighting facilities • Musical fountain (in small scale) A property with an area of 12000sqm is considered for this project that 1500sqm of that area belong to the buildings and the rest to green area and yard. The lighthouse will be built in 11 floors with13,650 sqm structure. The project provides jobs for 81 people and its annual capacity is 560,000 visitors. 7. Annual Capacity: 560,000 visitors per year 8. Land requirement: 12,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

84 Kish Free Zone Organization Residental and Restaurant Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 2 years and the operation phase is 15 years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 17.3 million Residential and shop sale revenue USD $ 11.1 million Operating Revenue USD $ 16.0 million Operating cost USD $ 9.1 million

85 Kish Free Zone Organization

Residental and Restaurant Projects 15. Financial index

Net benefit USD $ 6.9 million Benefit–cost ratio (B/C) 1.3 Payback Period 1.8 Years

16. Economic index

Net present value (NPV) USD $ 14.2 million Internal rate of return (IRR) 47 % Break-even point 23 %

20. Special and unique benefits of the region:

86 Kish Free Zone Organization Residental and Restaurant Projects

87 Kish Free Zone Organization Abstract of the Project’s Specifications Residental and Restaurant Projects A- Project Introduction

1. Project title: The Greek ship memorial Complex 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Hotel, restaurant, coffee shop, museum and amphitheater 4. Location: Free zone Special Economic Zone Industrial Park Main location

5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is for construction of a complex in the form of the Greek ship. This project includes some parts like coffee shop, restaurant, fast food, VIP suites, museum and amphitheater. This project looks like a ship and to be constructed in 6 storeys. One of the attractions of this complex is its appearance that resembles a ship. The deck of ship can be served as a restaurant and coffee shop. Lower storeys are allocated to residential suites, sea creatures museum, amphitheater and art gallery. A property with an area of 6000sqm is considered for this project that 2000sqm of that area belong to the buildings with an area of 12750sqm structure and the rest to green area and yard. The project provides jobs for 63 people and its annual capacity is 175,000 visitors.

7. Annual Capacity: 175,000 visitors per year 8. Land requirement: 6,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

88 Kish Free Zone Organization Residental and Restaurant Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 3 years and the operation phase is 30 years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 19.9 million Residential and shop sale revenue USD $ 18.9 million Operating Revenue USD $ 8.3 million Operating cost USD $ 4.4 million

89 Kish Free Zone Organization

Residental and Restaurant Projects 15. Financial index

Net benefit USD $ 4.0 million Benefit–cost ratio (B/C) 1.3 Payback Period 1.2 Years

16. Economic index

Net present value (NPV) USD $ 7.2 million Internal rate of return (IRR) 50 % Break-even point 27 %

20. Special and unique benefits of the region:

90 Kish Free Zone Organization Residental and Restaurant Projects

91 Kish Free Zone Organization Abstract of the Project’s Specifications Residental and Restaurant Projects A- Project Introduction

1. Project title: Water Villa 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Residential 4. Location: Free zone Special Economic Zone Industrial Park Main location

5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is for construction of a villa complex inside sea. This complex consists of 80 villas each 50m made of wood and wood plastic. For this project, a port in width of 2m and length of 700m made of wood plastic and concrete legs will be constructed. The villas will be connected to the port through a 10m track in kind of the main port and in width of 120m. The villas will be constructed in distance of 10m with each other and 10m from the port. Inside the villas Plexiglas will be used and at nights they will act as a natural aquarium by the help of nightly lighting. Furthermore, a beach recreational site with substructure of 3800sqm consisting of restaurant, coffee shop, limited shopping centers and some entertainments such as billiard salon, etc. will be constructed for this project. A property with an area of 4000sqm is considered for this project that 2050sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 49 people and its annual capacity is 17,500 visitors. 7. Annual Capacity: 17,500 visitors per year 8. Land requirement: 4,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be leased to investors.leased to investors.

92 Kish Free Zone Organization Residental and Restaurant Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 2 years and the operation phase is 15 years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 11.6 million Operating Revenue USD $ 7.0 million Operating cost USD $ 1.8 million

93 Kish Free Zone Organization

Residental and Restaurant Projects 15. Financial index

Net benefit USD $ 5.2 million Benefit–cost ratio (B/C) 1.6 Payback Period 2.3 Years

16. Economic index

Net present value (NPV) USD $ 8.7 million Internal rate of return (IRR) %41 Break-even point %11

C- Incentives, features and advantages of the project: 18. Incentives:

20. Special and unique benefits of the region:

94 Kish Free Zone Organization Residental and Restaurant Projects

95 Kish Free Zone Organization Abstract of the Project’s Specifications Residental and Restaurant Projects A- Project Introduction

1. Project title: Construction the Olympia Restaurant 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Serving a variety of Iranian traditional food, Italian food, Sea food, Barbecue and Fast food 4. Location: Free zone Special Economic Zone Industrial Park Main location

5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is for construction of a restaurant complex near Olympia sports complex. Due to some certain advantages like existing potentials in terms of climate, access facilities and no need to visa as well as price advantages, Kish Island can be converted to a tourism-sports pole in the area. In this direction, establishing a well-equipped restaurant with ability to fulfill some certain food menus for sport teams as well as other people attending Olympia restaurant is essential. This complex includes a -4storey building. There will be fast food and coffee shop on the roof with moving roofs and barbeque, Iranian traditional restaurant, sea food restaurant and Italian restaurant will be respectively placed in floors1 to 4. Installations and warehouse will be placed in underground. A property with an area of 1000sqm is considered for this project that 675sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 58 people and its annual capacity is more than 20,000 customers. 7. Annual Capacity: More than 20,000 customers per year 8. Land requirement: 1,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be leased to investors.

96 Kish Free Zone Organization Residental and Restaurant Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 1 years and the operation phase is 15 years. 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 2.7 million Operating Revenue USD $ 2.6 million Operating cost USD $ 0.7 million

97 Kish Free Zone Organization

Residental and Restaurant Projects 15. Financial index

Net benefit USD $ 2.0 million Benefit–cost ratio (B/C) 2.4 Payback Period 2.0 Years

16. Economic index

Net present value (NPV) USD $ 6.4 million Internal rate of return (IRR) 58 % Break-even point 10 %

C- Incentives, features and advantages of the project: 18. Incentives:

20. Special and unique benefits of the region:

98 Kish Free Zone Organization Residental and Restaurant Projects

99 Kish Free Zone Organization Abstract of the Project’s Specifications Residental and Restaurant Projects A- Project Introduction

1. Project title: Kish Pardis Garden 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Visit the huge greenhouse plants in different climatic areas, restaurant, coffee shop, concert platform, stalls selling plants and educational services and provide other recreational and educational services 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is for construction of a tourism complex consisting of a greenhouse structure providing simulated natural ecosystem conditions of various climate areas and as a result, helping with growing various plants needing different climates. This garden should be designed in proportion to various climates and relevant plants and trees considered for that. Length and width of the structure is totally considered for 100 and 30m respectively and maximum height is estimated to be about 25m depending on type of design and architecture of the garden. Creating some areas near the structure for holding various events such as concerts and festivals is one of the main functions of this complex. A property with an area of 7000sqm is considered for this project that 5250sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 56 people and its annual capacity is more than 200,000 visitors. 7. Annual Capacity: 200,000 visitors per year 8. Land requirement: 7000Sq.m 9. Land ownership: the land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

100 Kish Free Zone Organization Residental and Restaurant Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 2 years and the operation phase is 15 years. 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 5.4 million Operating Revenue USD $ 5.9 million Operating cost USD $ 3.4 million

101 Kish Free Zone Organization

Residental and Restaurant Projects 15. Financial index

Net benefit USD $ 2.5 million Benefit–cost ratio (B/C) 1.73 Payback Period 3.0 Years

16. Economic index

Net present value (NPV) USD $ 8.0 million Internal rate of return (IRR) 37 % Break-even point 25 %

20. Special and unique benefits of the region:

102 Kish Free Zone Organization Residental and Restaurant Projects

103 Kish Free Zone Organization Abstract of the Project’s Specifications Residental and Restaurant Projects A- Project Introduction

1. Project title: The Baghoo tourism complex 2. Sector: Services Sub-sector: Tourism

3. Products / Services: Traditional residence, tea room and restaurant, showing livestock and agriculture and traditional crafts marketplace 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is about construction of a tourism complex in Baghoo village and near Louver old native trees located in west-south of the island including traditional residential area, tea house and restaurant, displaying traditional animal husbandry and agricultural and a market for handicrafts. Tourism complex of Baghoo village in this project has 30 rooms, each 35m and 5 suites, each 60m near a market with an area of 300sqm and a traditional restaurant with an area of 500sqm. Based on relevant requirements and regulations, financial estimations are carried out by considering using light structures and maximum height of 2 storeys. A property with an area of 5500sqm is considered for this project that 2850sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 36 people and its annual capacity is 7,000 residential and over 50,000 visitors. 7. Annual Capacity: 7,000 residential and over 50,000 visitors per year 8. Land requirement: 5,500Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be leased to investors.

104 Kish Free Zone Organization Residental and Restaurant Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 1 years and the operation phase is 15 years. 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 1.5 million Operating Revenue USD $ 1.8 million Operating cost USD $ 0.3 million

105 Kish Free Zone Organization

Residental and Restaurant Projects 15. Financial index

Net benefit USD $ 1.4 million Benefit–cost ratio (B/C) 5.1 Payback Period 1.7 Years

16. Economic index

Net present value (NPV) USD $ 4.8 million Internal rate of return (IRR) 69 % Break-even point 11 %

C- Incentives, features and advantages of the project: 18. Incentives:

20. Special and unique benefits of the region:

106 Kish Free Zone Organization Entertainment Projects

107 Kish Free Zone Organization Entertainment Projects

108 Kish Free Zone Organization Services Projects

109 Kish Free Zone Organization Abstract of The Project’s Specifications Services Projects A- Project Introduction

1. Project title: Health Town 2. Sector: Services Sub-sector: Health Tourism

3. Products / Services: Residential and health services 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is about construction of a sub-specialty hotel-hospital aiming to provide high quality health tourism services. This part of project consists of the following units: A hospital with 200 general beds, 36 intensive care beds and 60 emergency beds. For this hospital, 5 sub-specialty clinics, 3 well-equipped operating rooms and all specialty and sub- specialty wards are considered. This hospital will be constructed in 3 storeys with substructure of 24000sqm and in a property with an area of 63000sqm. Likewise, this project enjoys a hotel equipped with 250 modern rooms to host patients and their families. This hotel will be constructed in a property with an area of 32000sqm and in 6 storeys. A residential complex for the physicians and personnel working at the hospital is considered. This complex has a 42000sqm substructure to be constructed in a property with an area of 70000sqm. A property with an area of 165000sqm is considered for this project that 18000sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 490 people and its annual capacity is more than 570,000 people. 7. Annual Capacity: 570,000 person per year 8. Land requirement: 165,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

110 Kish Free Zone Organization Services Projects

10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 3 years and the operation phase is 20 years. 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 89,6 million Operating Revenue USD $ 67,6 million Operating cost USD $ 15,3 million

111 Kish Free Zone Organization Services Projects 15. Financial index

Net benefit USD $ 52,2 million Benefit–cost ratio (B/C) 2,78 Payback Period 2,4 Years

16. Economic index

Net present value (NPV) USD $ 181,9 million Internal rate of return (IRR) 35 % Break-even point 15 %

20. Special and unique benefits of the region:

112 Kish Free Zone Organization Services Projects

113 Kish Free Zone Organization Abstract of The Project’s Specifications Services Projects A- Project Introduction 1. Project title: Hydrotherapy, Spa and Physiotherapy center 2. Sector: Services Sub-sector: Health Tourism 3. Products / Services: Hydrotherapy, physiotherapy, massage therapy, acupuncture and traditional medicine 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is for construction of a health center providing services such as hydrotherapy, physiotherapy, massage therapy, acupuncture and traditional medicine. Local treatment services as per the latest international methods with the most advanced facilities and specialists are provided in this center. This project enjoys following parts: - Swimming pools and warm and cool ponds - Dry and wet saunas - Different kinds of Jacuzzis and standing bath tubs - Body fitness advanced salons - Physiotherapy salon - Traditional medicine consultation center - Salons for providing various kinds of massage therapy services - Salons for providing various kinds of fish therapy services - Salons for providing various kinds of acupuncture medicine services - A center for selling medial herbs and natural treatment products - Iranian traditional baths along with massage and Iranian drinks - Buffets serving Iranian healthy and native drinks and dishes A property with an area of 35000sqm is considered for this project that 10000sqm of that area belong to the buildings with an area of 14700sqm structure and the rest to green area and yard. The project provides jobs for 147 people and its annual capacity is 500,000 costumers. 7. Annual Capacity: 500,000 costumers per year 8. Land requirement: 35,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

114 Kish Free Zone Organization Services Projects

10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 3 years and the operation phase is 15 years. 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 23.2 million Operating Revenue USD $ 15.6 million Operating cost USD $ 4.5 million

115 Kish Free Zone Organization Services Projects 15. Financial index

Net benefit USD $ 11.1 million Benefit–cost ratio (B/C) 1.8 Payback Period 2.8 Years

16. Economic index

Net present value (NPV) USD $ 29.6 million Internal rate of return (IRR) 39 % Break-even point 15 %

20. Special and unique benefits of the region:

116 Kish Free Zone Organization Services Projects

117 Kish Free Zone Organization Services Projects

Abstract of The Project’s Specifications A- Project Introduction 1. Project title: International exhibitions center 2. Sector: Services Sub-sector: Exhibition services 3. Products / Services: Holding international exhibitions and conferences 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is about construction of a place for holding international exhibitions in Kish. This complex includes various arts such as exhibition salons, international gathering roofed salons, office and management buildings, warehouses, place for keeping trusts, emergency ward, firefighting station, security, mosque, parking lot, formalities, open display platform, restaurant and coffee shop complex, residential area and gas station. A property with an area of 272000sqm is considered for this project that 128250sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 151 people and its annual capacity is 1 million visitors.

7. Annual Capacity: 1 million visitors per year 8. Land requirement: 272,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be leased to investors.

118 Kish Free Zone Organization Services Projects

Kish Island is indeed one of the beautiful islands of Persian Gulf. Due to closeness to international waters and acting as a free trading zone, this island enjoys some unique advantages for holding international exhibitions and Kish Island hosts dozens of specialty and international exhibitions every year. Presently, this island lacks an exhibition center in international standards level equipped with additional standard facilities. Therefore, constructing an exhibition center with fulfilling such advantages is so essential for the island. As the only entity in charge of infrastructure affairs in this island, Kish Free Zone Organization provides so significant supports for the investors interested in this field of activity.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 96.3 million Operating Revenue USD $ 136.2 million Operating cost USD $ 13.2 million

119 Kish Free Zone Organization Services Projects 15. Financial index

Net benefit USD $ 123 million Benefit–cost ratio (B/C) 5.6 Payback Period 1.3 Years

16. Economic index

Net present value (NPV) USD $ 454.2 million Internal rate of return (IRR) 59 % Break-even point %10

C- Incentives, features and advantages of the project: 18. Incentives:

20. Special and unique benefits of the region:

120 Kish Free Zone Organization Services Projects

121 Kish Free Zone Organization Services Projects

Abstract of The Project’s Specifications A- Project Introduction 1. Project title: Concert Hall 2. Sector: Services Sub-sector: Tourism 3. Products / Services: Holding international exhibitions and conferences 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is about construction of Kish concert hall in the form of a huge starfish. This complex enjoys a variety of facilities such as concert salon, theater salon, gathering salon, restaurant and coffee shop, trade, office and training units as well as exhibitions. The unique form as well as its nightly lightings will make this complex as a cultural and tourism attraction hosting hundreds of domestic and international festivals, concerts and popular theaters every year. Materials for outside shell are considered to be semi-transparent solar panel in order to provide a controllable transparency in domestic spaces while being useful in generating a part of consuming power or nightly lighting. A property with an area of 32000sqm is considered for this project that 2000sqm of that area belong to the buildings with an area of 21850sqm structure and the rest to green area and yard. The project provides jobs for 74 people and its annual capacity is 800,000 visitors.

7. Annual Capacity: 800,000 visitors per year 8. Land requirement: 32,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

122 Kish Free Zone Organization Services Projects

10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 2 years and the operation phase is 25 years 12. Target market: Tourism is one of the main strategies for development of Kish Island. Kish tourism capabilities such as a beautiful sea and beach, its pleasant climate in cold half of year, appropriate residential facilities and its unique situation in Persian Gulf near the main land fall among the strategic advantages for developing tourism in the island. Development of tourism infrastructures in the island in the recent years, has promoted the potentials for development of Kish Island. Significant progress of the tourism development plans in Kish has put this zone into the spotlight as a good pattern for development of this industry across the country. The statistics and figures testify that just within a relatively short period, procedure of passengers entering Kish has shown a significant increase while residential and sightseeing capacities there have been promoted. Such significant promotion in procedure of passengers entering Kish in the recent years clearly indicates success of the organizations in charge of seeking tourists who travel to the island for the purposes of sightseeing and enjoying their leisure times. Rate of growth of passengers entering in the recent years has been over %10. Presently, over 1.5 million tourists travel to this island every year and it can be predicted that this number will reach 3 million per year in the 5 coming years.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 31.6 million Operating Revenue USD $ 18.3 million Operating cost USD $ 5.1 million

123 Kish Free Zone Organization Services Projects 15. Financial index

Net benefit USD $ 13.2 million Benefit–cost ratio (B/C) 1.7 Payback Period 3.1 Years

16. Economic index

Net present value (NPV) USD $ 32.0 million Internal rate of return (IRR) 34 % Break-even point 14 %

20. Special and unique benefits of the region:

124 Kish Free Zone Organization Services Projects

125 Kish Free Zone Organization Services Projects

126 Kish Free Zone Organization Manufacturing Projects

127 Kish Free Zone Organization Manufacturing Projects

Abstract of The Project’s Specifications A- Project Introduction 1. Project title: Fish processing center 2. Sector: Services Sub-sector: Fish processing 3. Products / Services: Processing and packing of fishes 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is concerned about construction of a fish processing and packing complex. For this complex, a fish processing salon with an area of2000 sqm, a fish packing salon with an area of500 sqm and a -50ton bascule are considered. The property required for the project has an area of 4000sqm out of which, 2800sqm is allocated to buildings and the rest to the area and parking lot. This project will create jobs for 47 persons and its annual capacity for processing and packing is 2000 tons of fish.

7. Annual Capacity: 2,000 tons of fishes per year 8. Land requirement: 4,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be leased to investors.

128 Kish Free Zone Organization Manufacturing Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 1 years and the operation phase is 15 years. 12. Target market:

Presently, about 3000 tons of different kinds of fish are fished every year in Kish island and they are generally delivered to the market fresh and with no packing. Kish Island presently lacks a fish processing center, while considering high amount of fishing in the island and interest of the tourists in buying fresh fish, a center for providing the tourists with well processed and packed products may be so effective in economic flourishing of the island and increase of added value in fisher part of the island. Likewise, since carrying fresh fish with no proper packaging is difficult for the tourists, it makes many of those intending to buy fish change their minds. Quality and processed products will absolutely materialize such potential demand and create a significant economic profit. This created added value is equal to %25 of value of selling unprocessed fish.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 1.0 million Operating Revenue USD $ 1.1 million Operating cost USD $ 0.5 million

129 Kish Free Zone Organization

Manufacturing Projects 15. Financial index

Net benefit USD $ 0.6 million Benefit–cost ratio (B/C) 1.5 Payback Period 1.8 Years

16. Economic index

Net present value (NPV) USD $ 1.4 million Internal rate of return (IRR) 56 % Break-even point 27 %

C- Incentives, features and advantages of the project: 18. Incentives:

20. Special and unique benefits of the region:

130 Kish Free Zone Organization Manufacturing Projects

131 Kish Free Zone Organization Manufacturing Projects Abstract of The Project’s Specifications A- Project Introduction 1. Project title: Fish Farming 2. Sector: Fisheries Sub-sector: Fish Farming 3. Products / Services: Farmed Cobia fish 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications This project is for construction of a fish farming area for farming Cobia fish in the sea. Farming fish in cage is a king of fish farming that has a lot of advantages comparing to fish farming in land. Decreasing investment primary costs, movement capability and controlling pests and diseases as well as decreasing utilization costs such as water supply and water treatment of pools are among such benefits. Cobia fish is one of the native and precious species of Persian Gulf and one of the most valuable native economic species in Iran. The colors of flesh of such fish is white near pink with a special fat and for that, Omega 3 or the very useful fatty acids are found in high amounts in flesh of such fish. No pin and crisp flesh of this fish helps any food made with such fish be cooked in the best way. For carrying out this project, 10 fish farming cages are required. Such cages have diversity with various qualities. For this project, some cages special for turbulent waters will be used. These cages are in kind of polyethylene, with volume of 1300 to 1600 cubic meter and in cylinder form and fully harnessed in both sides and with three rows of pipes for increasing floating power and they can be established in some points away from beach. Norway is a producer of the best types of such cages. This project requires a floating for establishing a room for monitoring fish and feeding them and some controlling and feeding equipment should be mounted in it. The project provides jobs for 27 people and its annual capacity is 500 tons. 7. Annual Capacity: 500 tons per year 8. Land requirement: 1,000Sq.m of coastal land and 10 hectares of marine environment 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be leased to investors.

132 Kish Free Zone Organization Manufacturing Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 1 years and the operation phase is 15 years. 12. Target market: Fishing is one of the main carriers of the people living in the south of Iran. But due to some limitations on fishing some certain types of fish in the country, fishers are not able to fish in all the seasons. Therefore, provision of fish in most seasons is limited and its price goes up as a result. For the very reason, there is always a high demand in the market for some certain fish that have seasonal fishing time. On the other hand, fish is a high value food and good for human health and its consumption has been increased nowadays in most societies. High volume of annual tourists in the island and all the tourists welcoming using sea foods has increased demand for fish in various seasons in the island to the point much beyond the natural consumption. Therefore, the island faces a shortcoming in provision of fish all the time particularly in Iranian new year holidays and summers and it gives a priority in farming fish and an increase in provision of fish in the island. Likewise, due to closeness of the island to free waters and Persian Gulf neighboring countries, these countries can be deemed as a potential market for produced products. At the present, significant amounts of fish fished in waters around the island are exported to Persian Gulf neighboring countries.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 1.1 million Operating Revenue USD $ 2.2 million Operating cost USD $ 1.5 million

133 Kish Free Zone Organization

Manufacturing Projects 15. Financial index

Net benefit USD $ 0.7million Benefit–cost ratio (B/C) 1.5 Payback Period 2.3 Years

16. Economic index

Net present value (NPV) USD $ 3.1 million Internal rate of return (IRR) 49 % Break-even point 25 %

C- Incentives, features and advantages of the project: 18. Incentives:

20. Special and unique benefits of the region:

134 Kish Free Zone Organization Manufacturing Projects

135 Kish Free Zone Organization Manufacturing Projects Abstract of The Project’s Specifications A- Project Introduction 1. Project title: Construction of a sub-zero fridge 2. Sector: Services Sub-sector: Frozen food storage 3. Products / Services: Freeze and store Fish 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is for construction of a -3000ton minus zero fridge for keeping frozen fish and delivering to the market in different seasons of year. This fridge is to be constructed in a property in area of 6000sqm and approximate substructure of 3000sqm. This fridge is in ammoniac type holding 6 salons with an area of 340sqm and a preparing and pre-cooling salon with an area of 200sqm. Likewise, a -50ton bascule is considered for this project. The project provides jobs for 23 people and its annual capacity is 3,000 tons

7. Annual Capacity: 3,000 tons per year 8. Land requirement: 6,000Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be leased to investors.

136 Kish Free Zone Organization Manufacturing Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject 11. Construction and operation period: Theconstruction project will be done in 1 years and the operation phase is 15 years. 12. Target market:

Fishing is a very old carrier in this island but unfortunately, due to lack of infrastructure installations such as warehouses, a significant part of the fish fished by the fishers get decayed for not having enough space for storing them. Therefore, construction of a minus zero fridge able to reduce the amount of such decays in production, could be so effective and in addition to decreasing rate of wasting, it could make a considerable amount of economic profits for the investors. Presently, 3000 tons of fish are fished by the fishers in the island per year and its average value equals Rls.3,000 billion. It just happens when at least %20 of such fish get decayed for lack of appropriate storing facilities. Annual value of such decays is over Rls.600 billion and it can be easily prevented by appropriate storage and providing the market with products in various seasons.

13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 1.7 million Operating Revenue USD $ 1.0 million Operating cost USD $ 0.3 million

137 Kish Free Zone Organization

Manufacturing Projects 15. Financial index

Net benefit USD $ 0.7 million Benefit–cost ratio (B/C) 1.4 Payback Period 2.8 Years

16. Economic index

Net present value (NPV) USD $ 1.1 million Internal rate of return (IRR) 37 % Break-even point 21 %

C- Incentives, features and advantages of the project: 18. Incentives:

20. Special and unique benefits of the region:

138 Kish Free Zone Organization Manufacturing Projects

139 Kish Free Zone Organization Manufacturing Projects Abstract of The Project’s Specifications A- Project Introduction 1. Project title: Cartilage Proteases production 2. Sector: Industry Sub-sector: Medical 3. Products / Services: Cartilage Proteases 4. Location: Free zone Special Economic Zone Industrial Park Main location 5. location map: (Image of the Location of Project in the Island)

6. Project specifications

This project is for construction of a complex for producing Cartilage Proteases (bio glass). Bio glasses are widely used in bone texture surgeries. Bio glass is a polymeric substance for using in cartilage texture. They are named as poly acid glycolic (PGA), poly acid lactic (PLA) and their co polymers in addition to natural absorbable polymers such as collagens, gelatins, fibrins and alginates in form of spongy mesh, fiber and gel. A property with an area of 2500sqm is considered for this project that 1200sqm of that area belong to the buildings and the rest to green area and yard. The project provides jobs for 69 people and its annual capacity is more than 1300 units.

7. Annual Capacity: 1300 units per year 8. Land requirement: 2,500Sq.m 9. Land ownership: The land of this project belongs to the Kish Free Zone Organization that can be sold to Iranian Citizens and leased to the foreign people.

140 Kish Free Zone Organization Manufacturing Projects 10. permissions: The permissions for any type of authorized economic activities in Kish free zoon are issued only by Kish Free Zone Organization. Meanwhile, if a plan needs to any other license and permits from other competent authorities, the organization of zone will send the inquiries and the investor is only obliged to follow this subject. 11. Construction and operation period: The construction project will be done in 1 years and the operation phase is 15 years. 12. Target market: Arthrosis is one of the most prevalent reasons for a need to replace joints. In this disease, the cartilage in joint is gradually worn out. The pain resulting from joints arthrosis can be mostly tolerated by changing life style and taking medicines but sometimes it is so severe that the patient is unable to use his/her joints and in that case there is no way out but surgery and replacing joints. Sometimes occurrence of some accidents can be a reason for replacing joints. The elderly suffering from osteoporosis for example, may have bone fracture or joint dislocation upon a light hit and joints replacement comes following that. %20 of those affected by knee arthrosis are under their 50 years old but the point is that this kind of disease usually commences as over 50. About %6.16 of Iranians over 15 years old are suffering from different kinds of arthrosis including knee, fingers, hip and neck. If we consider the population of those over 15 years old in the country about 56 million, at least, 9 million people are suffering from arthrosis and a high number of them are in need of using synthetic cartilages. This product enjoys a high added value creating over %50 added value while cost price of the product is less than half of its market price. 13. Access to Infrastructures:

B- Financial structure:

14. Cost and benefits

Capital expenditure USD $ 1.4 million Operating Revenue USD $ 3.4 million Operating cost USD $ 2.1 million

141 Kish Free Zone Organization

Manufacturing Projects 15. Financial index

Net benefit USD $ 1.3 million Benefit–cost ratio (B/C) 1.7 Payback Period 1.8 Years

16. Economic index

Net present value (NPV) USD $ 5.6 million Internal rate of return (IRR) 69 % Break-even point 24 %

20. Special and unique benefits of the region:

142 Kish Free Zone Organization Partnership & Financing of Infrastructure Projects

143 Kish Free Zone Organization Partnership & Financing of Infrastructure Projects

Construction of 35-thousand-ton container berths

1. Project Title: Construction of 35-thousand-ton container berths 2. Project Description and technical specifications: following completion of the 12-thousand-ton Kish commercial ports, and gover- nance policies in order to create an infrastructure for business development in Kish Free Zone, Kish Free Zone Organization decided to build a container berths with a capacity of 35-thousand-tons of berthing of vessels. This berths will built in effective length of 300 meters and estuary water depth of 12 meters. 3. Location:

Kish commercial seaport 4. The volume of project construction operations: Earthworks volume is 75 thousand cubic meters, the volume of concreting operations is16 thousand cubic meters and steel piling operation size is 10 tons. 5. Physical progress of the project:

Phase design of the project has been completed and the implementation agreement draft was developed in the framework of the three-factor Contracts. 6. Timing of the project: The project is estimated at 30 months. 7. Estimated project cost: The cost of the project is estimated at 860 billion Rials.

8. Ways to repay debts: Liabilities resulting from borrowings in this project, be refunded by purchase of real estate. 9. To provide guarantees for the financing:

Kish Free Zone Organization guarantees the repayment of debt principal and interest

144 Kish Free Zone Organization Partnership & Financing of Infrastructure Projects

Construction of Kish new airport

1. Project Title: Construction of 35-thousand-ton container berths 2. Project Description and technical specifications: This project is for the construction of new buildings for Kish airport, with over than 41 thousand square meters infrastructure, including public spaces, customs en- trances and exits, corridors, passport control, restaurants, and etc.

3. Location:

Kish International Airport 4. The volume of project construction operations: The volume of construction is as follows; Digging the foundation and excavation in volume of 22 thousand cubic meters, concreting operations and foundation in 9 thousand cubic meters, construction steel structure with a volume of 3,500 tons and concrete structure with a volume of 1,800 cubic meters. 5. Physical progress of the project:

The project is already running and operations of foundations and concrete structures have been carried out. Skeletal structure is currently under construction and the project is 26 percent physical progress. 6. Timing of the project: Project timing is 36 months from the starting the operation. 7. Estimated project cost: the whole project estimate is 2 trillion Rials and by now, it has been cost 380 billion Rials. 8. Ways to repay debts: according to consultant’s estimate, the annual income of the project is about 2 trillion rials. The part of debt repayment revenues from the project financed and the remain be refunded through the purchase of real estate. 9. To provide guarantees for the financing:

Kish Free Zone Organization guarantees the repayment of debt principal and interest.

145 Kish Free Zone Organization Partnership & Financing of Infrastructure Projects Providing loading and unloading equipment and operation of commercial port berths 15 to 17.

1. Project Title: Providing loading and unloading equipment and operation of commercial port berths 15 to 17. 2. Project Description and technical specifications: This project is for the supply and operation of equipment, loading and unloading in 15 to 17 dock ports. Kish Free Zone Organization in developing commercial port towards the construction of two berths for container and general cargo vessels with a capacity of up to 12-thousand-tons of berthing of vessels. Dredging operations are now being carried out to increase the depth of the water. Also, the contract for construction a container storage area of 8 acres is trade and the operation has been started. Thus, Kish Free Zone Organization has provided the entire infrastructure necessary for the operation of loading and unloading at the docks. Considering the general policies of Article 44 is intended to entrust operation of the docks, including loading and unloading to qualified investors. 3. Location:

Kish commercial seaport 4. The volume of project construction operations: Providing equipment and machinery with the following characteristics: Equipment Number MHC with spreader 2 sets TTU (60 tons) 8 sets RS 2 sets FL (10 tons) 2 sets

5. Physical progress of the project:

the port project and technical documentation intended to be delivered to investors. The project’s partnership agreement will be prepared to interchange within one month. 6. Timing of the project: Estimated timing of the project is 6 months for Equipping and operation, and 5 years utilization in the form of BOT contract. 7. Estimated project cost: The cost of the project is estimated about 6.5 million Dollars.

8. Ways to repay debts: This contract in the form of BOT method will entrusted to interested investors. 9. To provide guarantees for the financing:

Kish Free Zone Organization will provide the required guarantees for the implementation and operation of the project to investors.

146 Kish Free Zone Organization construction eight berths - up (Link span) Partnership & Financing of Infrastructure Projects

1. Project Title: construction eight berths - up (Link span) 2. Project Description and technical specifications: In order to achieve the comprehensive plan policies island and on the creation of infrastructure facilities to import 3 million tourists in Horizons Master Plan, Kish Free Zone Organization considering 8 berths mechanized (Link span) on the astern arm of the island’s harbor foreshore. The docks will be capable of berthing of the barge and landing 500 tons to 3. Location:

Kish commercial seaport 4. The volume of project construction operations:

Equipment Number Earthworks 120,000 Cubic meters Steel Works 950 tons Concreting operations 2300 Cubic meters Piling operations 1170 tons

5. Physical progress of the project:

Technical studies have been conducted and the draft contract prepared by a 3-factor is ready to exchange with contractors. 6. Timing of the project: : Estimated project duration is 24 months. 7. Estimated project cost: The cost of the project is estimated around 440 billion Rials.

8. Ways to repay debts: Liabilities resulting from financing the purchase is repaid by real estate. 9. To provide guarantees for the financing:

Kish Free Zone Organization guarantees the repayment of debt principal and interest. To provide guarantees for the financing: Kish Free Zone Organization guarantees the repayment of debt principal and interest.

147 Kish Free Zone Organization Partnership & Financing of Infrastructure Projects

Construction of Wastewater Treatment

1. Project Title: Construction of Wastewater Treatment 2. Project Description and technical specifications: In accordance to the comprehensive plan for the Island, a water treatment plant to treat 30,000 cubic meters of wastewater per day, including home treatment and finishing processes including disinfection, filtration and other ancillary operations, is suggested. 3. Location:

South of the Island, in the south wastewater treatment zone. 4. The volume of project construction operations: According to studies conducted by the consulting zero-phase project, the treatment capacity of 30,000 cubic meters per day is considered that the volume of construction in the next phases of studies, are derived. 5. Physical progress of the project:

Technical studies have been performed in zero phase.

6. Timing of the project: The project is estimated at 36 months. 7. Estimated project cost: The cost of the project is estimated around 400 billion Rials.

8. Ways to repay debts: According to the profit from the sale of treated wastewater for irrigation projects on the Island, this project will be awarded to qualified investors in the form of BOT or EPCF contract. 9. To provide guarantees for the financing:

Kish Free Zone Organization guarantees all the required offered to investors.

148 Kish Free Zone Organization Partnership & Financing of Infrastructure Projects

Construction of 132 kV Power Grids

1. Project Title: Construction of 132 kV power grids from Mir Mohana post to Sadaf post and construction of 132 kV sub-station Groves south Island post. 2. Project Description and technical specifications: Due to the development in the south and southwest of the island, in order to create ring of 132kV between posts in the south and southwest of the island and provide the energy need in that area, constructing the substation in the Kharg square been predicted. 3. Location:

Southwest of the Island, in the Kharg square zone. 4. The volume of project construction operations: • One acre land, 400Sq.m and building and make the protection and control equipment. • 81,000 m of 132 kV cable (1*500 mm2) • A 132 kV GIS Switch gear equipped with a bus-bar and 8 Feeders • 2 units of 50 MW transformers with 132 kV voltage • (132 kV Voltage, 3150 bass amps rated current, 40 kA 3 s short-circuit strength) 5. Physical progress of the project:

Zero phase studies are done.

6. Timing of the project: The project is estimated at 24 months. 7. Estimated project cost: The cost of the project is estimated 460 billion Rials.

8. Ways to repay debts: According to the advantage of the energy transit, this project will be awarded to qualified investors in the form of BOT or EPCF contract. 9. To provide guarantees for the financing:

Kish Free Zone Organization guarantees all the required offered to investors.

149 Kish Free Zone Organization Partnership & Financing of Infrastructure Projects

Purchase of high pressure equipment (Switch gear) sub-transmission posts (132 kV)

1. Project Title: Purchase of high pressure equipment (Switch gear) sub-transmission posts (132 kV) 2. Project Description and technical specifications: In order to increase the speed of transmission and distribution network coverage within the North West and South East of the island, Kish Free Zone Organization is constructing 3 post transfer in boundaries area, the Sadaf and Mir-Mohana regions. Therefore, in order to equip the above projects, the purchase and installa- tion of three 132 kV GIS Switch gear with a total of 35 feeders, 2 coupling breakers and 2 section breakers on the agenda of organization. 3. Location:

Karaneh post, near the Electricity and Water Corporation, Mir-Mohana post in the Nobonyad area and Sadaf post in the air base area. 4. The volume of project construction operations: • Karaneh 132 kV GIS Switch gear with 2 bus-bars and 19 Feeder, 2 coupling breakers and 2 section breakers. • Sadaf 132 kV GIS Switch gear with 1 bus-bar and 11 Feeder • Mir-Mohana 132 kV GIS Switch gear with 1 bus-bar and 9 Feeder • (132 kV Voltage, 3150 bass amps rated current, 40kA 3s) 5. Physical progress of the project:

Project design is done and technical documentation is ready.

6. Timing of the project: The project is estimated at 8 months. 7. Estimated project cost: The cost of the project is estimated 350 billion Rials.

8. Ways to repay debts: : According to the advantage of the energy transit, this project will be awarded to qualified investors in the form of BOT or EPCF contract. 9. To provide guarantees for the financing:

Kish Free Zone Organization guarantees all the required offered to investors

150 Kish Free Zone Organization Partnership & Financing of Infrastructure Projects

Purchase and implementation of Kish-Garze submarine cable.

1. Project Title: Purchase and implementation of Kish-Garze submarine cable. 2. Project Description and technical specifications: Construction of submarine cable with a cross section of 3*500 mm2 and in 2 cir- cuits and in each of them there is a 24 Core optical fiber, is on the agenda of Kish Free Zone Organization because of reasons such as: • Necessity of connecting the island’s electrical networks to the nationwide network • In order to improve the quality and quantity of Island’s electrical parameters • Reduce the cost of electricity due to the exchange of electric energy • Using free capacity of the power plant in the island’s reduce load times and com- pensation the power shortage in horizon comprehensive plan of Island

3. Location:

From nearby the power plant on the north side of the island, to the Garze region located near the Charak 4. The volume of project construction operations: Each circuit of the cable is about 21 km. The total area of cabling will be 42 km on the seabed. 5. Physical progress of the project:

Cable designing and sea floor hydrography in both coastal zones is done. 6. Timing of the project: Accomplishment the project is estimated at 8 months and its testing period is estimated at 5 months. 7. Estimated project cost: The cost of the project is estimated 2500 billion Rials.

8. Ways to repay debts: According to the advantage of the energy transit, this project will be awarded to qualified investors in the form of BOT or EPCF contract. Also a part of the costs will be paid in cash and the purchase of real estate. 9. To provide guarantees for the financing:

Kish Free Zone Organization guarantees all the required offered to investors.

151 Kish Free Zone Organization Partnership & Financing of Infrastructure Projects

Kish Free Zone Organization

152