Baltics-Belarus Business Opportunity Survey

Belarus Estonia Latvia Lithuania

November 2015

www.bnt.eu

The bnt Baltics-Belarus Business Opportunity Survey is published for general information purposes only and does not constitute advice of any kind. The publisher is not liable for any errors or misrepresentations. www.bnt.eu 1

The bnt Baltics-Belarus Business Opportunity Survey provides information about upcoming investment projects in the Baltic States and Belarus.

With offices in Estonia, Latvia, Lithuania and Belarus, bnt attorneys-at-law covers this region in all relevant areas of business law, including corporate/M&A, commercial and contract law, litigation and arbitration, tax and administrative/procurement. For further information on the projects portrayed please contact our local offices. This publication is for informational purposes only; bnt does not represent the project initiators.

General contact: Lithuania: Linas Vadeika [email protected] Latvia: Rūdolfs Kaļķis [email protected] Estonia: Kristel Evardi [email protected] Belarus: Valeria Kazlovich [email protected]

Contents:

Estonia...... 5 Construction of Liquefied Natural Gas Terminal ...... 6 Construction of “Gate Tallinn” Retail Park ...... 7 Construction of Tallinn Prison ...... 8 Construction of Peterburi Rd. Shopping Centre ...... 9 Construction of the Estonian National Museum ...... 10 Development of Green Seaside Residences ...... 11 Kalaranna residential development ...... 12 Pärnpuu-Pärnõie residential quarter ...... 13 Sale of Premises of Estonian Academy of Art ...... 14 Further Development of Ülemiste City ...... 15 Development of the Largest Conference Centre in Tallinn...... 16 Architecture Competition for the Estonian Academy of Arts ...... 17

Development of Tondi Residential Quarter ...... 18 New Office Building at Tallinn Freedom Square ...... 19 Development of Admiralty Basin Surroundings ...... 20 Construction of 11 new office buildings in Tallinn ...... 21 Construction of a submarine railway tunnel (Tallinn – Helsinki) ...... 22 New residential quarter at the Noblessner harbour ...... 23 Construction of tramway track extension to the Tallinn airport ...... 24 Sale and reconstruction of Tallinn City Hall (Tallinna Linnahall) ...... 25 Latvia ...... 26 Construction of Riga Northern Transport Corridor ...... 27 Construction of the Rail Baltica stretch in Latvia ...... 28 Reconstruction of an Open-Air Festival Stage ...... 29 The New Hanza City ...... 30 Construction of Akropolis shopping mall ...... 31 Reconstruction of the New Riga Theater ...... 32 CENTRUS Block Construction in Riga ...... 33 First Hilton Garden Inn in Baltic States ...... 34 Renovation and development project for Kaļķu Street ...... 35 Transformation of Daugava Sports Stadium ...... 36 New logistics centre in Rāmava...... 37 Lithuania ...... 38 Modernization of Detention Facilities ...... 40 Privatization of “Baltija” Rest House in Palanga ...... 41 Modernization of Lithuanian Zoo in Kaunas ...... 42 Development of Cargo Port in Kaunas ...... 43 Reconstruction of the highway A14: Vilnius – Utena ...... 44 Vilnius Multifunctional Complex ...... 45 “Lithuanian Airports” seek for investors ...... 46 Belarus ...... 47 Construction of Sugar Processing Plant ...... 48 Joint Venture in Pharmaceuticals Production ...... 49

Construction of Cement Plant ...... 50 Creation of an Industrial Complex for Medicine Production ...... 51 Mineral Water and Soft Drinks Production ...... 52 Sale of a State Share in one of the largest Mobile Operators MTS ...... 53 Favourable taxation regime: China-Belarus industrial park ...... 54 Favourable taxation regime: Belarusian High Tech Park ...... 55 Joint Venture for Production of Railway and Large-size Casting...... 56 Production of High-precision Auxiliary Tools for Lathes ...... 57 Investment into Biopharmaceuticals Production ...... 58 Equipment for laser surgery manufacturing ...... 59 Construction of a nitrogen fertilizer complex on the "Grodno Azot" OJSC ...... 60 Multiple-Dwelling Residential Development Including Social and Cultural Facilities construction ...... 61 Sale of Shares in Major Belarusian Companies ...... 62 National football stadium is to be constructed in Minsk ...... 63 Favourable conditions for business in Mogilevsky district ...... 65 Construction of a plant for wind power stations ...... 66 Establishment of Transport & Logistic Centre ...... 67 Construction of the “Nemnovskaya” hydroelectric power station ...... 68

Estonia Eesti

bnt Tallinn office Tatari 6, EE-10116 Tallinn Phone + 372 667 62 40 Fax + 372 667 62 41 [email protected]

Contact Person(s): Partner Aet Bergmann Phone: +372 667 62 40 [email protected]

Construction of Liquefied Natural Gas Terminal

Completion Estonia is now entitled to build a regional liquefied natural gas terminal expected in 2019; In the beginning of October 2015, Finnish government and the Finnish state enterprise Gasum announced, that they waive the right to build an LNG terminal to Finland. This Executed by: means, that Estonia is now entitled to take over the construction of the regional terminal. Elering AS The main part of the construction costs of the terminal, being approx. EUR 100 million, will Baltic Connector be covered by the European Union. Oy, Alexela, Vopak E.O.S., Finland will still continue to take part in the construction of the gas pipeline Balticconnector. Tallinna Sadam In the middle of October 2015, an application for co-financing was submitted by the AS. Estonian Elering AS and the Finnish Baltic Connector Oy to CEF (Connecting Europe Facility). Value est.: EUR 500 million In Estonia, Alexela as well as Vopak E.O.S are interested in building the regional terminal. Alexela, who is planning to build the terminal to Paldiski, has already submitted an application for co-financing to the European Union. Vopak E.O.S., whose project has been evaluated as the most profitable by the European Commission working group, would build the terminal to the Muuga harbour.

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Construction of “Gate Tallinn” Retail Park

Construction A large retail park is being constructed near the city of Tallinn. planned to start in 2015; Gate Tallinn is a 62 ha land area that will be developed into the largest retail park in the Eastern Baltic Sea region, featuring regionally-unique big-box stores and the first fashion Executed by: outlet in the region. Trigon Capital Retail parks and fashion outlets, offering a wider selection of goods and better prices than Value est.: conventional shopping centres, are increasingly popular retail destinations in many EUR 200 million emerging markets.

The project has one of the best locations in the greater Tallinn area, lying on the main motorway out of Tallinn and the new ring road being constructed. The site is bordered by Tallinn’s main commuter rail line and has its own railway station. The greater catchment area includes both southern Finland and St. Petersburg.

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Construction of Tallinn Prison

Initiated in 2012, A new prison being constructed near Tallinn. Completion expected in 2018 Tallinn Prison will be the third regional prison in Estonia along with the Tartu and Jõhvi prisons, replacing the currently used but amortized Rummu and Tallinn prisons. The Executed by: prison will have the capacity to accommodate approximately 1300 prisoners. The closed The Prisons area of the buildings of Tallinn Prison is nearly 74 000 m2 gross. Along with the Tallinn Department of the Prison, construction of a new deportation and interment centre near the prison is also Ministry of discussed. Justice; Construction of Cell prison, detention centre, health department. 50 ha land in Rae at the outskirts of the prison is Tallinn, Soodevahe village and Veneküla village. organised by Riigi Kinnisvara AS The prison complex was designed by AS Amhold. Construction will start in the beginning (State Real of 2016. If construction works proceed as planned, the modern prison complex will be Estate Ltd). completed by the end of 2018.

Value est.: EUR 100 million

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Construction of Peterburi Rd. Shopping Centre

Construction A large shopping centre is being constructed in the city of Tallinn. started in May 2014; The Shopping Centre is one of the most dynamic shopping developments in the Baltics as well as the newest and largest regional shopping centre project in Tallinn. Executed by: Pro Capital Grupp The site is located in Tallinn on the estate of a former meat processing plant at the crossing of (developer); Peterburi Rd and Tartu Motorway, on the largest and most modern traffic junction in Tallinn within Merko Ehitus (main just a few minutes by car from the city centre and at the starting point of motorways to Tartu, Narva contractor) and Pärnu.The Shopping Centre shall accommodate more than 200 shops on ca 55 000 m2 of GLA. The building volume altogether shall be 130 400 m2. The shopping centre will also be a part of a Value est.: major public transport terminal, which is one of the most important infrastructure developments of EUR 70 million the city in the near future, incorporating in addition to the local lines also the connection to the airport and to the future Rail Baltica international railway station.

The developer of the centre has announced that the preparation process has proceeded as planned. The 12 000 m2 entertainment complex of the centre has been covered with agreements and the surrounding infrastructure has been finished. The construction works of the shopping centre began at the end of May 2014. Completion expected in the fall of 2017.

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Construction of the Estonian National Museum

Completion Construction of a new building for the Estonian National Museum. expected 2016 In 1998 a Resolution was adopted by the Estonian Parliament that recognized the main Executed by: Principles of the Estonian cultural policy. The Resolution envisaged the construction of a Eesti new building for the Estonian National Museum as one of the main priorities. Kultuurkapital; Riigi Kinnisvara The ﬁnal decision for restoring ENM at Raadi was made in 2003. The project “Memory AS, OÜ Fund Field” by Dan Dorell, Lina Ghotmeh and Tsuyoshi Tane was chosen as a result of an Ehitus (main architectural competition for the new building held in 2006. contractor). By now, the construction of the building itself is almost completed. Construction works will Value est.: now continue inside of the building. EUR 76 million

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Development of Green Seaside Residences

Completion of Kopli Strand residential area up for Development the first stage expected in As a result of the second public tender for the sale of the development project, it 2018; was finally sold to Fund Ehitus. The city of Tallinn has been looking for a buyer Completion of already for 8 years. the final stage expected in The aim of the project is to open the urban space in the North-Western direction, 2026.; to recondition the area by creating a safe high-quality living environment with the

required infrastructure and to enliven the city by adding new green areas. The site Executed by: Fund Ehitus is located on the Kopli peninsula, 5 kilometres from the Tallinn Old Town and the city centre. The area of the development project covers approx. 17 ha; the area of Value est.: the lot with effective building rights is 6.6 ha. EUR 55–65 million. The developer is planning to finish the project in 12 years. Construction works will start in 2016. Since the area is divided into six quarters, it will be completed in stages. Completion of the final stage is expected in 2026.

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Kalaranna residential development

Establishment Development of luxury apartment buildings and marina. of detailed plan currently in Kalaranna residential development project is located in the northern borough of Tallinn progress and foresees a series of luxury apartment buildings offering a sumptuous view to Tallinn’s coastline. The location – right next to the sea, Old Town and city centre – is attractive and Executed by: enjoys a good access both by car and public transport. City Municipality of Tallinn The detailed plan has already been partly established but not fully approved. The project is expected to be developed in one stage and will include a yacht marina. Overall, the Value est.: project is targeted to upscale individual buyers who prefer to live in the proximity of city Total investment centre and appreciate a sea view along with a completed quay that will provide moorings projected at for private boats. EUR 58.68 million The building volume of the development project covers 40.780 sqm.

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Pärnpuu-Pärnõie residential quarter

No significant Luxury residential quarter near the town of Pärnu. dates indicated The site is situated on the picturesque shore of Sauga river, a 5-minute drive by car from Pärnu city. The project is located in immediate proximity to Pärnu city, in Audru borough, Executed by: which is the biggest and quickly developing province of Pärnu and famous for its historical PINDI Realia events and monuments. A wonderful health resort, a famous golf field, and many other Group opportunities for spending a fine free time are nearby.

Value est.: The quarter consists of 14 lots with area of 1 502 to 2 861 sqm each. Five lots are area divided planned on the side of Sauga river another nine lots on the other side of the nearest into two lots: motorway. Electricity is connected, detailed plan has been established. Pärnpuu (2.12 ha) at EUR 108 649 and Pärnõie (2.45 ha) at EUR 76 693. The entire lot can be purchased for EUR 185 288.

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Sale of Premises of Estonian Academy of Art

Long-term Premises at the Estonian Academy of Art offered for development. intention, no specific dates A property of 4.540 sqm in Tallinn city centre will definitely provoke developers’ interests indicated; because there are very few investment opportunities left in similar locations. Estonian Academy of Art has confirmed that the property will be sold. According to the valuation of Executed by: property conducted in spring 2013, the real estate was worth EUR 7.1 Million. Estonian Academy of Arts At the beginning of May 2014, Estonian Academy of Art decided to proceed with the plan to sell its two city centre properties to fund the purchase of the new premises. The Value est.: property in Tartu mnt 1/Gonsiori 6 is now being sold with the starting price of EUR 6,9 Approx. million, the building in Suur-Kloostri 11/Nunne 16 (situated in the old town) with the EUR 7.1 million starting price of EUR 3 million.

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Further Development of Ülemiste City

A new office Ülemiste City, established in the territory of the former Dvigatel factory, located in building to be the middle of Tallinn Airport, the Eastern branch of the railway and Tartu completed by motorway, continues to evolve. the end of 2015; Over the next 15 years, the business campus will be further developed as a multifunctional city space, which will provide approximately 200,000 sqm office space (of Executed by: which 70,000 sqm have been built since), 125,000 sqm apartment space and 125,800 City sqm parking space. Municipality of Tallinn According to the developers, Ülemiste City can be regarded as an estimated billion development project. Under the new architectural design approved at the beginning of Value est.: 2014, Ülemiste City will over the next 10-15 years become a full-fledged modern quarter Not indicated where business and living environment and public services have been integrated.

In 2015, construction of the largest office building in Estonia „Öpiku maja“ with 44,000 sqm of closed office space will start.

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Development of the Largest Conference Centre in Tallinn

Planned to be A possibility to take part in creating Estonias’ largest conference centre. completed by 2018; Enterprise Estonia (Ettevõtluse Arendamise Sihtasutus) is planning to establish a multifunctional conference and exhibition centre, the largest in Estonia. Research carried Executed by: out by Enterprise Estonia showed that there are several positive sides to Estonia that Enterprise would invite a considerable number of international conferences to Estonia but a centre Estonia; that would cover the needs of top-level major conferences is missing.

Value est.: According to the research building the centre in Tallinn would cost 65 million euros. The EUR 65 million research recommended building a centre with a plenary hall of 5000 square meters, (incl. additional space and exhibition area of 5000 square meters. The research assessed that EUR 20 million the best location would be Ülemiste City, Linnahall or the area between Noblessner and contribution Seaplane Harbour. However, entrepreneurs from Saaremaa are lobbying for it to be from E.E.) established in Saaremaa. Estonian Investment Corporation OÜ introduced the idea that the conference centre could be built under the roof of the Tallinn Airport.

The next step is to find potential private investors in order to negotiate and find out how much the private sector is willing to invest and how big the contribution from the state should be.

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Architecture Competition for the Estonian Academy of Arts

Winners were A new building is planned to be built for the Estonian Arts’ Academy. announced in August 2014; The State Real Estate Ltd (Riigi Kinnisvara AS) in collaboration with the Estonian Academy of Arts conducted an architecture competition to establish the new building complex in Executed by: Kotzebue Street. State Real Estate Ltd; The objective was to create a modern environment that supports the development of arts, Estonian culture and synergies as well as inspires the students and the lecturers in the historical Academy of factory building designed by E. Habermann. Arts; The winners of the competition were announced at the end of August 2014. The best project Value est.: with the title „Linea“ was created by former students of the Estonian Academy of Arts, young Prize fund architects from the architects’ office KUU. EUR 40 000 The project will be financed using the funds of the next financing period of the EU Structural Funds as well as own resources of the academy, the largest part of which will come from the sale of the former premises of the academy. It is planned to start study activities in the new location in 2016.

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Development of Tondi Residential Quarter

The first A new residential block is being constructed in the City Centre periphery of Tallinn. building was completed in Tondi Quarter is one of the largest residential blocks in the Baltic countries, located in March 2015; Kristiine borough, a residential area in the City Centre periphery of Tallinn. Building volume of the project will be 144 000 m2 including underground parking ca 28,000 m2. The unique Executed by: project foresees impressive red brick buildings smoothly integrated with the modern LAAM architecture that will arise over the hill in the centre of the new block, providing a series of Kinnisvara apartment and office buildings built on land plots historically occupied by barracks. The OÜ, Pro location is attractive for a residential area: it is close to city centre and at distance from main Kapital Grupp roads. The detailed plan has been established and construction works have started. The AS; project is expected to be developed in 5 stages.

Value est.: ca EUR 108.2 million

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New Office Building at Tallinn Freedom Square

No A new office building will be constructed at the Freedom Square of Tallinn with significant 10 770 m2 of office space in total. dates indicated; A work named Kawe City won the architectural competition conducted by the real estate company Kawe and the City Municipality of Tallinn. Kawe City will be a modern office Executed by: building with conservative architectural language, fitting to the older architecture of the AS Kawe Freedom Square. Group, City Municipality of At the moment, instituting of a detailed plan is being planned. The architectural competition Tallinn; was foremost meant to specify the volume of the building, but the developers have promised to stick to the architecture also in the construction phase. Value est.: Not indicated.

www.bnt.eu 19 Development of Admiralty Basin Surroundings

First part to Surroundings of the Admiralty basin at the heart of Tallinn will be turned into an be completed outstanding city centre. by fall 2016; Two leading real estate developers, OÜ Capital Mill and Delta-Max Group, are planning to Executed by: invest altogether ca 200 million euros into the most valuable plots in Tallinn to create OÜ Capital 200.000 sqm of living and business area. Mill; Delta- Max Group; Construction of a complex of four different looking buildings with the total cost of 25 million euros and a total area of 25.000 sqm started in the fall 2014. The complex is called Value est.: Promenade House; it will contain 120 luxury apartments and 4000 sqm of commercial ca. EUR 200 spaces at the street level. The buildings will be finished by fall 2016. million. At the same time, an international architects’ office is finalising the other, much larger project at the Admiralty basin. The volume of this development will be over 150.000 sqm and the size of the investment 120–150 million euros. The developer Delta-Max Group is mostly planning to build first class offices, but possibly also a number of luxurious rental apartments. Large and small investors are looked for this project. Preparations for construction works started in 2015.

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Construction of 11 new office buildings in Tallinn

Completion In the next few years, 7 new office buildings with 70 000 m2 of class A office space expected in will be built in Tallinn. 2015 - 2016; 1. Norwegian House, Baltika Quarter (2016): Kawe Grupp AS / Total area: 11 835 m2 / No. of floors: 7

2. Tehnopol2KV office building (2015): Tehnopol / Total area: 11 560 m2 / No. of floors: 6-8/-1

3. Kai 1 office building (2016): Capital Mill / Total area: 6702 m2/ No. of floors: 6/-2

4. Novira Plaza (2016): Novira Capital / Total area: 7600 m2 / No. of floors: 15/-2

5. Lõõtsa 5 office building (2015): Tehnopolis Ülemiste / Total area: 10 668 m2 / No. of floors: 13

6. Öpiku Building (2016): Mainor Ülemiste AS / Total area: 17 092 m2 / No. of floors: 13/-1

7. Büroo 83 (2016): Novira Capital / Total area: 4300 m2 / No of floors: 8

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Construction of a submarine railway tunnel (Tallinn – Helsinki)

Completion The Tallinn to Helsinki tunnel is a proposed undersea tunnel that would span the expected in Gulf of Finland and connect the Estonian and Finnish capitals. 2030 – 2035; The length of the tunnel would be around 50 km, depending on the route taken. It would Executed by: significantly increase the carriage of passengers as well as goods between the two states City and connect the whole Scandinavia into a single railway network. A submarine tunnel Municipality of would reduce the travel time between Tallinn and Helsinki to 30 minutes. Tallinn According to the feasibility study conducted by the experts from Estonia, Finland and Value est.: Sweden, the construction of the submarine tunnel between the two capitals, along with 9-13 billion traffic management, logistic centers and vehicles, would cost 9-13 billion euros. A EUR preliminary study estimates the period of return to be around 35-40 years. About 40-50 percent of the construction costs should fall on the shoulders of Estonian and Finnish governments, and the EU. The rest is expected from private investors.

Upon completion, the Tallinn-Helsinki tunnel would be the longest submarine tunnel in the world.

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New residential quarter at the Noblessner harbour

Completion A new residential quarter with 210 apartments will be built to the Noblessner harbour. of the first building The Noblessner quarter is a unique residential development in Estonia - four residential expected in buildings with commercial spaces on the ground floor will be built directly at the seaside, 2017; next to the Noblessner yacht harbour. The developer of the area with the size of 1.7 ha is Kalaranna Arenduse OÜ, which is a joint company established by AS Merko Ehitus and Executed by: BLRT Grupp Aktsiaselts. Kalaranna Arenduse OÜ; The aim of the development is to create a human friendly environment with space and possibilities for different activities for people of any age. There are different squares, playgrounds, recreation areas and it is open to the seaside. The public area of the quarter offers possibilities for organizing open air events. At the same time, local people can have their privacy in the inner courtyards.

Construction works will start at the end of 2015, and the first building will be finished by spring 2017.

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Construction of tramway track extension to the Tallinn airport

Completion By tram from the city centre to the airport expected at the end of Construction of the tramway track extension until the Tallinn airport will start at the end of 2016; 2015. The estimated cost of the project is 20 million euros. As a part of this project, a tunnel with the length of 100 metres will be built from the final station of the tramway to the airport Value: EUR 20 territory. The extension of the tramway will also pass through the planned public transport million; terminal as well as Ülemiste City. The length of the new tramway will be 2 km.

Executed by: Tallinna Linnatranspordi AS (public transportation company owned by the city of Tallinn) AS Merko has already submitted an application to receive funding from CEF (Connecting Europe Ehitus Eesti Facility). The city of Tallinn will finance 15% of the total cost of the project. KMG Inseneriehituse Completion of the project is expected at the end of 2016. AS

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Sale and reconstruction of Tallinn City Hall (Tallinna Linnahall)

Owner: city of Parts of Tallinn City Hall will be sold to finance reconstruction of its concert hall Tallinn Tallinn City Hall, situated right next to the Tallinn harbour, was built for the Moscow Summer Estimated Olympics of 1980. The building consist of three parts: a concert hall situated in the middle of project value: aprox. EUR the complex, an ice rink and a harbour part on the north side of the building. The building 65-75 million. has not been used since 2009.

The city of Tallinn has spent years looking for investors. Since there has been no success so far, the owner has now decided to divide the building into smaller parts, which will then be sold. The city of Tallinn is also planning to sell the surrounding plots. Money from the sales would be used for the reconstruction of the concert hall.

Although the building is of value in terms of heritage conservation, the rules set out for it are not too strict: extensions as well as alterations are possible, but the architectural appearance and external finishing have to be preserved. It is possible to add one to two floors to the north side part of the building. This space could then be used for commercial and business purposes. The location of the building is also perfectly suitable for tourism. The state would like to see it as a new representative conference centre.

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Latvia Latvija

bnt Rīga office Alberta iela 13, Rīga, LV-1010 Phone + 371 6777 05 04 Fax + 371 6777 05 27 [email protected]

Contact Person(s): Partner Theis Klauberg LL.M. Phone: +371 6777 05 04 [email protected]

Construction of Riga Northern Transport Corridor

Construction Renovations and enhancements are being applied to the Pärnu motorway. planned to commence from The Riga Northern Transport Corridor is considered to be the largest transport 2015 to 2018; infrastructure project in Riga of last decades. Completion expected 2022 Objectives of the project include diverting traffic from the centre of Riga City, improving environmental conditions in the city centre and city’s liveability in general. Construction of Executed by: the Northern Corridor will connect Riga Freeport to the Trans European (TEN-T) road Municipality of network and improve the transport infrastructure system in Riga and its metropolitan area in Riga (3 stages); general, raising growth opportunities and international competitiveness of the city. Ministry of Transport Northern Corridor according to the Riga and Pieriga Mobility plan is considered as the (final stage) priority project. Implementation of this project will result in convenient high-speed motorway crossing Riga from East to West and bypassing the historic centre of the city. The overall Value est.: planned length of the road is 30 km. Western part of the Northern Corridor will connect to EUR 1.4 billion Riga bypass at Babite and will easily lead to Riga – Jurmala – Ventspils motorway (junction at Priedaine). Eastern part of the Northern Corridor will connect to Vidzeme motorway at Bergi. Northern Corridor will be integrated into the network of Riga’s arterial streets with 9- 12 multi-level junctions. Motorway will also cross the 0.4 km wide Daugava River.

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Construction of the Rail Baltica stretch in Latvia

No significant Rail Baltica, the international railway which is planned to span from Germany to dates indicated Finland, is being constructed in Latvia.

Executed by: Rail Baltica is one of the priority projects of the European Union: Trans-European Ministry of Transport Networks (TEN-T). The project is supposed to link Finland, the Baltic States and Transport; Poland and also improve the connection between Central and Eastern Europe and Germany. It envisages a continuous rail link from Tallinn (Estonia), to Warsaw (Poland), Value est.: going via Riga (Latvia) and Kaunas (Lithuania). It is planned to finish this project until EUR 1.27 billion 2024.

www.bnt.eu 28 Reconstruction of an Open-Air Festival Stage

Construction Reconstruction of an open-air stage for the Latvian Song and Dance festival. commences 2014, completion In the mid-2007 the Riga City Council announced a new – international – design expected by competition. The competitors were expected to produce rational, structurally innovative and 2018. acoustically impeccable proposals for transformation of the stage what would include the roof with a system of acoustic elements, partial transformation of chorister stands, Executed by: transformation of the spectator amphitheatre, construction of new stands at the rear part of Municipality of the amphitheatre and installation of transformable spectator bench systems. Besides, one Riga of the requirements specified that in the periods between song festivals, the complex should be used for various types of concerts and mass events with application of advanced Value est.: audio and video technologies. EUR 28 million At the moment the winner of the International Sketch Competition for the Song and Dance festivals’ Open-Air Stage Reconstruction has become the Latvian Architects Bureau SIA Arhitekta J. Pogas Birojs.

The open-air stage should be ready for the next Song and Dance festival on 2018, therefore it is planned to start the reconstruction on 2014.

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The New Hanza City

Completion Construction of the Hanza City financial centre. expected at 2033. In the next 5 years New Hanza City will receive EUR 160 mil. investment to continue the construction works for new development plan. Executed by: Pillar holding, New Hanza City is planned to be as regional financial center with office buildings for ABLV several financial institutions including ABLV Bank central building. New urban district will have 6 floor office buildings, museum, park and two kinds of “park house” type apartment Value est.: buildings. The area for this project is between Pulkveza Brieza, Hanzas, Skanstes and EUR 250 million Sporta streets. Next 5 years plan includes to construct and install piping, underground 5 year investment parking lot and the central part of the project which would include office buildings and plan 160 million ABLV bank headquarters.

Construction is planned to put into operation a number of building lots until 2033, however, construction rates will depend on the situation in the real estate market. Authors of the project inform that in the area will be a number of office buildings, including A / S "ABLV Bank" building, a four or five-star hotel, conference center, shopping gallery and entertainment area. Office buildings will occupy about 100, 000 m2 total area, commercial and public area - 20,000 m2, the hotel - 15 000 m2. The perspective development is located within the protected zone of the Riga historical center.

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Construction of Akropolis shopping mall

Completion New opportunities for retail businesses in Riga. expected at the end of 2015 A large shopping centre is being constructed in the city of Riga (Kengarags) on the estate of a former Riga’s porcelain factory between Maskavas, Salaspils and Slavu streets within Executed by: just a few minutes by car from the city centre. The building volume altogether shall be Akropolis Group 100,000 m2 of retail and entertainment centers and also office premises.

Value est.: According to the Akropolis Group, the project expected to invest around 100 million euros EUR 100 million and it will create 1,000 new jobs. The well-known Akropolis chain of shopping centres attracts large amounts of customers from the entire region, making them into desirable location s to establish retail businesses.

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Reconstruction of the New Riga Theater

Completion An opportunity to expand the Riga Theater. expected at the end of 2018 The New Riga Theater is a professional repertory theatee that provides innovative art corresponding to the requirements of the independently-thinking contemporary spectator Executed by: both in its content and form. The historical building in the course of time has been adapted Ministry of Culture for the needs of the theater and today has become too small to be able to absorb the growing number of spectators. Value est.: EUR 7 million The New Riga Theater shall be provided with the appropriate premises reconstructing the theater complex of buildings in accordance with modern requirements, while maximizing respect for the historic atmosphere of the building. The New Riga Theater needs modernization of the stage, the auditorium and adjacent space reconstruction.

Area: 5146 m2

www.bnt.eu 32 CENTRUS Block Construction in Riga

Completion Continuing the development of the CENTRUS block, "Skonto Būve" has begun the expected at the construction of two seven-storey residential buildings as part of the second end of 2015 construction phase. ; CENTRUS will be a facilitated, beautiful, secluded and high quality living block in the very Executed by: centre of Riga. It is located in the most active part of Riga, taking up the block between Skonto Būve Tērbatas, Dzirnavu, Blaumaņa and Krišjāņa Barona streets.

Value est.: Alongside a peaceful and private living environment, CENTRUS will also provide a Investments of comfortable public area. A pedestrian promenade will connect Dzirnavu Street and EUR 40 million; Blaumaņa Street, and a peaceful life will run its course in the courtyard with cafés and still EUR facilitated leisure areas, as well as shopping places on the side of the promenade. 42,7 million needed to complete the Project

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First Hilton Garden Inn in Baltic States

Construction First Hilton Worldwide representative in Baltic States will be built in Riga and will be finished constructed by Latvian company LNK Industries. at the end spring of 2016; Hilton Garden Inn Rīga Valdemarā will be 10 stories high and situated in Pārdaugava, K.Valdemarā iela . There will be 138 available rooms and 24/7 restaurant, bar, gym and Executed by: multi-functional 400 square meter conference room. by “LNK Industries” managed by P.M.G.

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Renovation and development project for Kaļķu Street

AS Baltic RE Group in financial cooperation with ABLV Bank has invested 28 million No significant EUR in a number of historical buildings located in the Riga Old Town. dates indicated; The intention of the investment is to make Kaļķu Street a family-friendly shopping street. Executed by: Kaļķu Street buildings will be reconstructed and modernized for shopping street needs AS Baltic RE with the total leasable area of 14 000 m2. Shopping complex will include six real estate’s Group, ABLV Kaļķu Street 15, Kaļķu Street 12/14, Kaļķu Street 6 and crossing street real estate’s Kungu Bank Street 1, Krāmu Street 2 and Šķūņu Street 19. In total the shopping street will consist of 19 buildings and the complex will have capacity for 35 different shops. Baltic AS RE Group Initial CEO Giovanni Dalla Zonko emphasized that Riga will benefit from such a transaction investment for because it is the central city of the Baltic States with a significant tourism potential. development 28 million EUR

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Transformation of Daugava Sports Stadium

By investing 47 million EUR Daugava Sports Stadium will be reconstructed into Expected start culture and sport event amphitheater. for reconstruction Daugava Sports stadium will be reconstructed to fit higher quality standard and to increase process 2017; the capacity of the amphitheater. The existing amount of seating is only 5000 seats. The goal is to make the stadium more attractive for big concerts and national pastime events. Executed by: VSIA Culture The reconstructions objective is to make an amphitheater in Riga center for high profile and Sport Center sports, music and dance events and also the host place for national dance and song Daugava festivals. The project planning has just begun and the necessary preparation work’s for the renovation and EU fund allocation are in implementation stages. Value est.: EUR 47 million

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New logistics centre in Rāmava

No significant Sanitex is establishing a new high-tech logistics centre in Rāmava with a storage dates to indicate space of up to 41200 m2.

Executed by: Sanitex has received a loan of EUR 17.4 million from SEB Bank for company’s Sanitex group development. SEB Bank loan together with additional resources will constitute EUR 25 million and this sum will be invested into buying property and building the new, high-tech Value est.: logistics centre. EUR 25 million The centre will increase quantity and quality of warehousing and logistic services in Baltic States and will create 500 job places. The centre will provide excise warehouse services and possibility to efficiently handle merchandise.

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Lithuania Lietuva

bnt Vilnius office Kalinausko str. 24, LT-03107 Vilnius Phone +370 5 212 16 27 Fax +370 5 212 16 30 [email protected]

Contact Person(s): Partner Frank Heemann LL.M. Phone: +370 5 212 16 27 [email protected]

Modernization of Detention Facilities

Completion A Public-Private Partnership to modernize detention facilities in Lithuania. expected by 2022. In July 2014 the Lithuanian Government approved a new Detention Facilities Modernisation Programme, which provides the modernization of detention facilities by 2022. The Executed by: programme involves the construction of a new detention facility on the outskirts of Vilnius The Ministry of and the construction of new detention facilities in Šiauliai, Klaipėda and Panevėžys on a Justice; Prison PPP basis. Department of Lithuania. With regards to timing, Vilnius detention facility, with 1620 beds (29 000 m2), will be the first to tender out. It is expected that a new detention facility near Vilnius will be built and the Value est.: inmates, currently held in Lukiškės prison (which is located in the city centre) will be moved EUR 40 million for out. After this project, the next project in the pipeline is Šiauliai detention facility, with 800 the new facility in beds. Vilnius; ≈ EUR 290 million The government is prepared to invest a large portion of budget funds, but private co- for the whole investors are also sought. Any interested investors are invited to join the government in programme. investing their funds and executing the project as a PPP. It is planned, that partnership would last for 22 years, during which the private partner will develop and maintain the infrastructure and Government, in return, will pay an annual fee of EUR 13 million. After the partnership, Government takes over the ownership of the infrastructure.

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Privatization of “Baltija” Rest House in Palanga

No significant Market participants are anticipating an announcement on the privatization of dates indicated; desirable real estate on the Baltic Sea coast.

Executed by: “Baltija” is the biggest rest and treatment complex in the Lithuanian resort town of State Asset Fund Palanga, which includes different levels of hotels: 2 stars hotel “Vyturys” (conference room, health service facilities and rehabilitation center), 3 stars hotel “Zilvinas” (24 Value est.: rooms, tennis courts, aesthetics and beauty center), aesthetics and beauty center EUR 6 million. „Estetic Italia Baltic“ and rehabilitation center “Baltija”.

At the moment the services are not available, the buildings have not been renovated.

The government decided to dispose the shares of the subject to the Ministry of Economy. The market value of buildings, structure and other assets is approximated at EUR 6 million. That will be a value of the registered capital of the new company, which restructured the state-owned enterprise.

After restructuring, the Ministry of Economy will decide about objects’ transfer to the State Asset Fund, which in turn will start the process of privatization.

www.bnt.eu 41 Modernization of Lithuanian Zoo in Kaunas

No significant An optimistic future for the in the last few decades not modernized Lithuanian Zoo. dates indicated; The Kaunas City Council approved a detailed plan for modernization of the city zoo. Executed by: According to the Ministry of Environment, which is the acting manager of the building, Kaunas City this decision opens the way for EUR 11.5 million (LTL 40 million) EU financial support. Council, Ministry of According to the company “Project Training center”, which performed a feasibility study Environment on the zoo’s modernization, this object would require an injection of EUR 29 million. The EUR 11.5 million are just for a first step. Value est.: EUR 11.5 million. There are 2020 animals in the Kaunas zoo, many of them belonging to endangered species. The zoo is a candidate for membership of the European Association of Zoos and Aquaria, involved in the European breeding program of rare and endangered animals.

Area of the zoo: 15,6 ha.

www.bnt.eu 42 Development of Cargo Port in Kaunas

No significant An initiative to revive the waterways near Kaunas by installing a new pier at dates indicated; Marvelė.

Executed by: The project would be conducted under concession agreement. The concession recipient Ministry of would be responsible for building infrastructure, repairs and maintenance, mooring of Transport and barges, loading of cargo, renting warehouses and other related services. The partnership Communications would last for up to 25 years.

Value est.: The Government has approved an amount of approximately EUR 85 million + VAT as a EUR 11 million. maximum contribution from the State over the concession period. An investment of at least EUR 11 million is expected from the private partner.

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Reconstruction of the highway A14: Vilnius – Utena

Project duration: Highway A14, connecting the cities Vilnius and Utena is in need for reconstruction 10-15 years; and PPP project is initiated to supply it.

Executed by: Government approved a PPP project for reconstructing and providing maintenance to Lithuanian road 72.15 km of highway No.: A14 – a road that connects capital city with the city of Utena. administration. The partnership is estimated to last for 10-15 years, reconstruction itself taking place in the period of 2016-2019. Value est.: ≈ EUR 175 million Built over 80 years ago, highway A14 is one of the worst maintained roads in the country. Reconstruction of the highway is imminent as Vilnius continues to expand in the direction of Utena and car traffic increases.

At the moment, project is estimated at approximately EUR 175 million, although this sum has to be approved by the parliament.

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Vilnius Multifunctional Complex

Provisional tender Within next years a new multifunctional health, education, culture and business publication date: support centre complex will arise in the North Vilnius. 2015 III quarter Following activities are going to be implemented: Executed by: …. 1. Territory cleaning – territory cleaning and preparation for investments, installation of engineering network, adjusting the territory for social and commercial activities; Estimated investment costs.: 2. Pre-school facility – for 300 children (playgrounds, game arbors, footways, greenery) Not less than EUR 77million 3. Infrastructure for informal education – 3 football pitches, 1 athletics pitch, 3 basketball halls,1 handball hall, administrative facilities, hostel facilities for 100 person;

4. Incubator for cultural, creative and sport activities – establishment of facilities for cultural and creative and activities;

5. Communication and information centre – establishment of infrastructure for communication and information centre, transferring Šeškinė branch of Vilnius city library;

6. Lithuanian Sport Museum – establishment of Lithuanian Sport Museum facility transferring it from Kaunas city;

7. Infrastructure for public cultural and sport events – public cultural and sport events organization up to 20 000 spectators places

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“Lithuanian Airports” seek for investors

Concession Preparations are made for state owned company “Lithuanian Airports” to enter agreement into a concession agreement with private investor at the end of 2017. Possible expected at: concessionaires are already sought for. 2017; Government approved a plan for “Lithuanian Airports” to enter into concession. The Executed by: state-owned company needs private investments to expand and modernise airports’ Lithuanian Airports; infrastructure and operational efficiency as demand for air travel keeps steadily growing in Lithuania. Value est.: - In exchange to private investment, concessionaire would gain the privilege to operate infrastructure and carry out commercial activities in the airports of Vilnius (VNO), Kaunas (KUN) and Palanga (PLQ) for up to 20-25 years. The state would keep the ownership of all infrastructure objects. No solid estimates are available yet as to the value of the concession agreement.

Final approval to this plan requires consent by the parliament of Lithuania which is next in line to consider the government approved version of the project.

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Belarus Беларусь

bnt Minsk office Svobody Square 23-85, BY-220030 Minsk Phone +375 17 203 94 55 Fax +375 17 203 92 73 [email protected]

Contact Person(s): Partner Alexander A. Ließem Phone +375 17 203 94 55 [email protected]

Construction of Sugar Processing Plant

2011 – 2015 An opportunity to take over a large share of the Belorussian sugar market.

Executed by: The investment project provides for the building of a new sugar plant, supply of all necessary National Agency equipment and the corresponding incorporation of a foreign venture with the foreign of Investment and investors’ share amounting to100 %. Privatization of the Republic of The construction site is 90 hectares and is located within 0,5 km from the railway station, Belarus (NAIP); automobile road and engineering network. Grodno oblast executive According to the investment plan the plant is to produce 50 % of sugar manufacturing market committee, share (the market competitor are plants from the Republic of Belarus, Russian Federation Grodno unitary and the Ukraine). enterprise of food industry The sugar is to be supplied to small-scale customers as well as to the confectionary industry. “Grodnopischepro m”

Value est.: EUR 250 million

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Joint Venture in Pharmaceuticals Production

No significant Opportunity to gain a foothold in the Belorussian pharmaceutical market. dates indicated The project involves creation of a joint venture for production of drugs complying with Executed by: international standards for drug release in the form of tablets or capsules, and sterile National Agency packaged powders for preparation of solution for infusion on the basis of RUE of Investment and “Belmedpreparaty”. Privatization of the Republic of Foreign investors’ share shall be 75 % and the share of RUE “Belmedpreparaty” is 25 % Belarus (NAIP); respectively. RUE Belmedpreparaty Investor preferences include: - developed transport infrastructure (the enterprise is located within 0,5 km from the railway Value est.: station and 1,5 km from motorway); EUR 15.3 million - developed trademark; - profound network of commercial relations; - the demand for the production on the Belarusian market; - registered licenses and patents.

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Construction of Cement Plant

No significant New cement plant in the Gomel region. dates indicated The project involves construction and operation of a cement plant in Vetka district of Gomel Executed by: region and further exploitation for production of cement and chalk of Podkamenie raw National Agency materials deposits, located in the territory of the region. of Investment and Privatization of the Republic of Belarus (NAIP); Gomel oblast executive committee.

Value est.: EUR 227 million

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Creation of an Industrial Complex for Medicine Production

No significant Creation of a single industrial complex of biological and pharmaceutical medicine dates indicated production.

Executed by: The project provides for creation of a new pharmaceutical venture (Greenfield investment) OJSC in the city of Vitebsk for production of drugs and veterinary pharmaceuticals. “BelVitunifarm”; Vitebsk oblast The exact foreign investors share is not yet defined. executive committee. Project preferences include: - developed business plan; Value est.: - production facilities and land plot; EUR 48,6 million - developed network of raw materials supply; - registered licenses and patens.

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Mineral Water and Soft Drinks Production

No significant Construction of a soft drinks factory. dates indicated The investment project provides for construction of a soft drinks and mineral water factory Executed by: and incorporation of a joint venture (stock company). Vitebskpischepro m – state union of It is planned that the factory’s revenue will be 9,2 Mln EUR annually. The payback period food industry is 5 years. enterprises of Vitebsk region The company will be located in Orshansky region close to the railway station. The land plot will be assigned. Additional privileges are possible. Value est.: EUR 18.7 million

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Sale of a State Share in one of the largest Mobile Operators MTS

Executed by: MTS is one of the largest mobile communication operators in Belarus. The state share is Republican 51 %. Other big shareholder is OJSC “MTS” (Russia). The company’s network coverage is unitary enterprise 98, 41 %. The total amount of consumers is 5.2 million. “Beltelecom” (National The company’s business profile includes, in particular: Telecommunicati on operator of - telecommunication services; Belarus); - retail trade; - lease and etc. OJSC “MTS” (Russia) The company’s net profit is 238 mln. EUR in 2012 and 143 mln. EUR during the first 6 months of 2013. Value est.: EUR 630 million Company also owns 5 260 sq.m. of commercial and 216 sq.m. of residential real estate. (a lower price is possible)

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Favourable taxation regime: China-Belarus industrial park

Planned to An industrial park offering exceptional conditions for manufacturers is being operate until established near Minsk. 2062 China-Belarus industrial park is a territory located within 25 km. from Minsk, near the Executed by: national airport and offering favourable taxation regime for its residents. Industrial Park Development Companies incorporated on the Park territory attracting more than 4 mln EUR investments Company, CJSC; with approved business plan may enjoy favourable tax and customs regime. China-Belarus Park The second largest Chinese corporation ZTE has joined China-Belarus industrial park in Administration. January 2014. As it was announced on 25 November 2013 ZTE corporation, Huawei and Lenovo are planning to join China-Belarus industrial park and launch electronics production Value est.: lines within its boundaries. -

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Favourable taxation regime: Belarusian High Tech Park

No significant A high-tech industrial park is being established in Minsk, attracting modern dates indicated; technology enterprises.

Executed by: Belarusian Hi-Tech Park (hereinafter – HTP) provides for a favourable business Hi-Tech Park environment for its IT and software development residents. HTP is located in Minsk, yet Administration it is not necessary to incorporate a company within its boundaries.

Value est.: After submitting a business plan relevant for the industry a company registered in - Belarus may obtain HTP resident status.

At present nearly 134 companies have already become residents of HTP, including, such leading companies as EPAM Systems, HTC Belarus, Itransition, Sberbank- Technology etc.

The residents of the park are granted numerous tax and customs preferences.

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Joint Venture for Production of Railway and Large-size Casting

No significant Joint venture for the production of metallurgy products. dates indicated; The project involves the manufacturing of high-quality casting of rolling stock and large- Executed by: size casting mostly for Belarusian and Customs Union market. OJSC “Belarusian Autoworks” The joint venture will be incorporated in free economic zone “Mogilev”, so there are (“BELAZ”) some tax preferences: - VAT rate is reduced to 10% from 20%; Value est.: - exemption from income taxes for 5 years since the taxable profit; reduced profit tax EUR 182 million rate of 12 % after initial 5 years period; - exemption from property tax.

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Production of High-precision Auxiliary Tools for Lathes

No significant Production of high-precision auxiliary tools for lathes, operated by computer dates indicated; numerical control system and machining centres.

Executed by: The project involves establishment of a joint venture on the basis of the existing one. Orsha Tool Factory OJSC The investments are required for current assets replenishment, purchase of equipment, technologies, licenses and raw materials (imports deliveries are to be Value est.: provided). EUR 1,7 million The pay-back period is expected as 4,2 years.

www.bnt.eu 57

Investment into Biopharmaceuticals Production

No significant An opportunity to establish biopharmaceutical production facilities. dates indicated; The project aims at the construction of biopharmaceuticals (antisera, probiotics, etc.) Executed by: production plant. The plant will be located in the Great Stone Industrial park – a Industrial park favorable tax regime territory. “Great Stone” Currently no biopharmaceutical products are produced in Belarus. Value est.: Greenfield An agreement on mutual market authorization of pharmaceuticals certificates will be investment adopted within the Common economic area of Russia, Belarus and Kazakhstan by the end of 2014. Belarusian companies will obtain easy access to the Russian and Kazakh pharmaceutical markets. Coupled with Russia’s plans to increase biopharmaceutical consumption by 8,3% until 2020, an investment now may provide for an excellent high- profit and low-risk opportunity.

Development of pharmaceutical production is considered to be one of the economic focuses of the Belarussian Government. Estimated payback periods range between 4-7 years.

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Equipment for laser surgery manufacturing

No significant The project provides for production of high-tech equipment for laser surgery in dates indicated; the Great Stone Industrial Park (favourable taxation zone).

Executed by: Since 2016 a common market of pharmaceuticals and medical equipment will be Industrial park introduced within the Eurasian economic community so Belarusian companies will get an “Great Stone” easy access to other community members markets (in particular, Russia and Kazakhstan). Value est.: The share of domestic production of medical equipment and furniture in Belarus is only EUR 16,5 million 18%, the rest is imported.

The estimated payback period is 5 years.

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Construction of a nitrogen fertilizer complex on the "Grodno Azot" OJSC No significant The project provides for construction of a nitrogen fertilizer complex and creation of a dates indicated; joint venture on the basis of Open Joint Stock Company “Grodno Azot” (currently 99.9%

Executed by: is a state ownership). Industrial park Grodno Azot OJSC is the leading fertilizer manufacturer in Eastern Europe with the “Great Stone” quality management system confirmed by the Belarusian state authorities and bureau

VERITAS. Value est.: EUR 1.2 billion Among the advantages of the investment project are: - strong brand; - easy access to the Eurasian economic community market; - European rail track availability and etc.

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Multiple-Dwelling Residential Development Including Social and Cultural Facilities construction

Significant Low-rise housing development with infrastructure elements on the bank of the River dates: Ptich, located 7 km from Minsk, capital city of the Republic of Belarus 2015 – 2019

Executed by: The project provides for construction of a multifunctional complex with the following facilities: 29 ITC Engineering townhouses; restaurant area; hotel area; 6 cottages; 8 bathhouses; sports and recreation centre (private with the swimming pool; shopping and recreation centre; 2 five-storied block of flats with the company) business offices, recreational landscape zone with water bodies and aquatic facilities and other relevant facilities

Value est.: The land plot has been assigned for permanent use. EUR 89 million Pre-investment feasibility study has been drafted and the architectural concept of the complex developed. Preliminary geological survey has been carried out.

The kick-off investment amount for the mobilization period and for the first construction stage (2016-2017) is about € 20 million.

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Sale of Shares in Major Belarusian Companies

Significant The project provides for production of high-tech equipment for laser surgery in dates: the Great Stone Industrial Park (favourable taxation zone). 2015-2016; Belarusian state property committee has published a list of shares of some of the largest Executed by: Belarusian companies, from 10 up to 100% of the shares of which are offered for sale. Belarusian State property Among them are companies in the spheres of oil and chemistry, software development committee and data processing, production of mechanical equipment, household devices and other hardware for radio, television and communication, telecommunication services, Value est.: international transportation, peat extraction and processing, industrial construction, timber stockpiling, log conversion, wood planning, production of audio and video depends on the devices, polyester fibers and yarns and supply of raw materials for light industry, off- particular project track equipment.

The shares are to be sold under certain conditions. However, it is possible to revise them taking into consideration particular offers of investors.

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National football stadium is to be constructed in Minsk

Significant A tender for planning and construction of multifunctional complex has been dates: announced by Minsk administration July 2015 – September 2018 A multi-purpose complex consisted of a football stadium with premises of commercial use, shopping centre and other facilities are planned to be built in Minsk. Executed by: Minsk region The stadium for which Moscow stadium “Lokomotiv” is going to be taken as model will Executive be capable to place from 33 to 35 thousand people. committee; Belarusian Construction project will be held on the private-public partnership basis. Federation of football; “Dinamo-Arena” company

Project value: 94 million euro

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Sale of state shares of the joint-stock company OAO „Brestskoe pivo“

No significant An opportunity to buy shares of one of the largest belarusian beer company, which also dates indicated producec other alcoholic and nonalcoholic drinks. The selling state share is 89,7% of the statutory found. EUR 10,15 million is a purchase price for Executed by: shares. For the tender winner deferred payment is possible on conditions of prepayment in the Brestky regional amount to 30% of the purchase price. executive The value of investment in OAO “Brestskoe pivo” in amount of EUR 9,22 million should be committee; provided during 3 years. Addition conditions can be agreed upon. OAO “Brestskoe pivo”

Value of investment sought is approx.: EUR 9,22 million

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Favourable conditions for business in Mogilevsky district

Significant dates: South-eastern regions of Mogilevsky district attract investments offering additional 1 July 2015 - preferential terms and conditions. 31 December 2020 In the above-mentioned area, there is an opportunity to implement investment projects Executed by: which can be partly financed by OAO Development Bank of the Republic of Belarus and public funds. Among other things, taxation preferences, lower insurance payments for OAO Development employers, lax credits are foreseen. Bank of the

Republic of There is a potential for building new factories or investing in already existent factories Belarus; which are involved in natural resources and agricultural raw materials processing. Mogilevsky oblispolkom; At present, investors from the USA, Germany, Russia successfully work in Mogilevsky Ministry of district. architecture and building, etc.

Value est.: -

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Construction of a plant for producing and installing wind power stations

No significant The project provides for construction of a plant for production and installation of wind dates indicated power stations on the territory of the free economic zone “Grodnoinvest”. Free economic zone implies substantial tax advantages for the residents. Executed by: Administration of the free It is planned to produce all the component and replacement parts for wind power stations as well economic zone as to assemble/install them. To organize the production process, it is necessary to build production facilities with total area of 10 000 square meters. “Grodnoinvest”

Preliminary plan is to produce 25 wind power stations per year. The Republic of Belarus Value est.: guarantees the purchase of the whole energy generated by them. Moreover, the purchase price EUR 20 million will be increased due to multiplying factors applied to the electricity rate.

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Establishment of Transport & Logistic Centre

No significant The project provides for establishment of Transport & Logistic Centre on the territory of dates indicated the free economic zone “Grodnoinvest” offering substantial tax privileges

Executed by: Transport & Logistic Centre will render comprehensive logistic services to maintain the processes Administration of of delivery, customs clearing, and handling of goods. the free economic zone It is planned to establish Transport & Logistic Centre with infrastructure that includes the “Grodnoinvest” following:  freight and container terminals with auto-road and railway access roads; Value est.:  centre of road freight transport; EUR 38.3 million  information and computing centre with technological communication office;  service facilities (parking for trucks and buses; auto service stations; petrol stations; hotel facilities; medical centre; restaurants; shops; communication centre).

Close location of free economic zone “Grodnoinvest” to the international airport “Grodno” as well as countries of the European Union contributes significantly to rapid customs clearance and movement of goods.

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Construction of the “Nemnovskaya” hydroelectric power station

The project provides for construction of the “Nemnovskaya” hydroelectric power station No significant on the Neman river in Grodno region with capacity equal to 20 MW. dates indicated

The design of the Nemnovskaya hydroelectric power station foresees the construction of a power Executed by: State Enterprise station building equipped with 5 horizontal mining devices (installed capacity of each is 4.167 “Grodnoenergo”; MW) combined with Pit type turbines – Kaplan. Ministry of Energy; The Republic of Belarus guarantees the purchase of the whole energy generated by the power station and will construct at its own expense power transmission lines required to secure power Value est.: supply to the Belarusian electric power system. EUR 102 million