Baltics-Belarus Business Opportunity Survey

December 2014

www.bnt.eu

© bnt attorneys-at-law 2014 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.

Dear Reader,

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: Justinas Šileika [email protected] Latvia: Rūdolfs Kalkis [email protected] Estonia: Kristel Evardi [email protected] Belarus: Ulyana Evseeva [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 Construction of Eastern Roundabout in Tartu ...... 11 Development of Green Seaside Residences ...... 12 Kalaranna residential development ...... 13 Pärnpuu-Pärnõie residential quarter ...... 14 Sale of Premises of Estonian Academy of Art ...... 15 Further Development of Ülemiste City ...... 16 Development of the Largest Conference Centre in Tallinn...... 17 Architecture Competition for the Estonian Academy of Arts ...... 18

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.

Development of Tondi Residential Quarter ...... 19 New Office Building at Tallinn Freedom Square ...... 20 Development of Admiralty Basin Surroundings ...... 21 Construction of 10 new office buildings in Tallinn ...... 22

Latvia ...... 23 Construction of Riga Northern Transport Corridor ...... 24 Construction of Campus of University of Latvia in Tornakalns ...... 25 Reconstruction of Roads in Latvia ...... 26 Construction of the Rail Baltica stretch in Latvia ...... 27 Reconstruction of an Open-Air Festival Stage ...... 28 The New Hanza City ...... 29 Building in the Centre of Riga up for Transformation ...... 30 Construction of Akropolis shopping mall ...... 31 Reconstruction of the New Riga Theater ...... 32 Sale of real estate in Lucavsala, Riga...... 33 Developing Cosmetics Production in Latvia ...... 34 First Hilton Garden Inn in Baltic States ...... 35

Lithuania ...... 36 Modernization of Detention Facilities ...... 37 Investment into National Air Carrier AirLituanica ...... 38 Sale of the “Europa” Shopping Centre ...... 39 Privatization of “Baltija” Rest House in Palanga ...... 40 Modernization of Lithuanian Zoo in Kaunas ...... 41 New Riverside Pier at Kaunas – Marvelė Inland Cargo Port ...... 42 Producer of Plastic Containers Seeks Investor ...... 43 Investment Sought for an Aviation Cluster ...... 44

Belarus ...... 45 Construction of a Natural Gas Power Plant ...... 46 Construction of Sugar Processing Plant ...... 47 Joint Venture in Pharmaceuticals Production ...... 48 Construction of Cement Plant ...... 49 Creation of an Industrial Complex for Medicine Production ...... 50 Construction of a Multifunctional area in the centre of Minsk ...... 51 Mineral Water and Soft Drinks Production ...... 52 Sale of a State Share in Mobile Operators MTS ...... 53 Sale of Shares in Major Belorussian Companies ...... 54 Favourable taxation regime: China-Belarus industrial park ...... 55 Favourable taxation regime: Belarusian High Tech Park ...... 56 Joint Venture for Production of Railway and Large-size Casting...... 57 Production of High-precision Auxiliary Tools for Lathes ...... 58 Construction of Multifunctional centre “Minsk-City” ...... 59 Production of Euro 4 Engines ...... 60 Investment into Biopharmaceuticals Production ...... 61

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 An option to construct a liquefied natural gas terminal is being closely examined. expected in 2019; The terminal with a gas pipeline will cost a total of EUR 500 million. European Union has agreed to finance half of the project. Executed by: Elering AS; The European Commission rejected the initial cooperation plan of Finnish Gasum and Alexela; Estonian Alexela, according to which a 160 000 m3 LNG-terminal was planned to be Vopak LNG established both in Inkoo, Finland and in Paldiski, Estonia. Tallinna Sadam AS Now the prime ministers of both countries have tried to find a new profitable solution for connecting the gas markets of both countries. In the middle of November, the Estonian and Value est.: Finnish prime ministers agreed that the application for co-financing the construction of the EUR 500 million gas pipeline Balticconnector will be submitted to the European Union in 2015. Completion of the pipeline is expected in 2019. A regional LNG terminal will have to be built in the same time frame. If the Finnish side will not submit an application to the EU for co-financing the construction of the terminal by 2016, the Estonian side will be entitled to take over the construction of the regional terminal.

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

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.

For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

Construction of Tallinn Prison

Initiated in 2012, A new prison being constructed near Tallinn. Completion expected in 2015 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 On 5 August 2013, Riigi Kinnisvara AS (State Real Estate Ltd) signed a contract with (State Real design and engineering consultation company AS Amhold on drawing up the main project Estate Ltd). for the new Tallinn Prison. Designing the prison complex costs EUR 1.218 Million excluding VAT. The project will be completed by autumn 2014; the modern prison Value est.: complex will be completed at the earliest by 2017. EUR 100 million For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

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 Kapital Grupp The site is located in Tallinn on the estate of a former meat processing plant at the (developer) crossing of Peterburi Rd and Tartu Motorway, on the largest and most modern traffic junction in Tallinn within just a few minutes by car from the city centre and at the starting Value est.: point of motorways to Tartu, Narva and Pärnu.The Shopping Centre shall accommodate EUR 89 million 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 major public transport terminal, which is one of the most important infrastructure developments of 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.

For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

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 For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

Construction of Eastern Roundabout in Tartu

Second section Construction of the Eastern Roundabout in Tartu to be completed The eastern roundabout is a 11,8 km long arterial highway which in the future will by April 2015. connect the Tallinn-Tartu-Luhamaa highway and the Jõhvi-Tartu-Valga highway. The purpose of the eastern roundabout is to direct the majority of transit traffic away from the Executed by: city centre in order to decrease the traffic load of the city centre. Nordecon AS, AS TREF, Teede The project is completed in three sections of construction. The first section from the Post REV-2 AS, House to the Tartu Prison has already been opened and the works there have been Lemminkäinen finished. Right now, construction continues in the second construction area which leads Eesti AS, AS K- from the Turu roundabout over the river Emajõgi to Lammi street. This section will be Most, Toner- completed in spring 2015. Projekt OÜ and Ehituse ja Construction of the third section, which is 1,5 km long and leads from Lammi street to Tarkvara the Räpina highway, is currently in the planning phase. If the state is ready to co-finance Inseneribüroo the project, the works will start in 2016. The total cost of the construction of the third section is 8 million euro. Value: EUR 45 million For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

Development of Green Seaside Residences

No significant An opportunity to take part in developing the Kopli Strand residential area. dates indicated; The city aims at opening the urban space in the North-Western direction, at reconditioning Executed by: the area by creating a safe high-quality living environment with the required infrastructure City Municipality and at enlivening the city by adding new green areas. The site is located on the Kopli of Tallinn 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 the lot with effective building rights Value: is 6.6 ha. EUR 100 million As a result of the second public tender for the sale of the development project, City Municipality of Tallinn received two offers - one from Pro Kapital Grupp and the other from OÜ Fund Ehitus. Both offers also qualified for the second phase of the public tender, which is a tender with preliminary negotiations.

For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

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: 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.

Further information available on: prokapital.com/projects/kalaranna/

For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

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: 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 For more information, please contact: EUR 108.649 and Pärnõie Aet Bergmann (2.45 ha) at Partner, bnt Tallinn EUR 76.693. Phone: +372 667 62 40 The entire lot [email protected] can be purchased for EUR 185.288.

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 At the beginning of May 2014, Estonian Academy of Art decided to proceed with the plan Arts to sell its two city centre properties to fund the purchase of the new premises. The building in Gonsiori 9 will be put on the market with the starting price of EUR 3,4 million, Value: the building in Suur-Kloostri 11/Nunne 16 (situated in the old town) will be put on the Approx. market with the starting price of EUR 3,5 million. EUR 7.1 million For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

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

In July 2014, a 2600 sqm office and production building for the company Elcogen was opened. In addition to the Elcogen’s new building, the construction of the office building of the largest heavy industry company E-Profiil and the demolition of 16 000 sqm Dvigatel complex are being carried out. In parallel with these, the construction of a parking building with 280 parking spots has been started, and will be finished by January 2015.

For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

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: 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. EUR 20 additional space and exhibition area of 5000 square meters. The research assessed that 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.

For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

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: 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 As the next step, the second stage of the tendering procedure for project planning will be announced. 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.

For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

Development of Tondi Residential Quarter

First building A new residential block is being constructed in the City Centre periphery of Tallinn. will be 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: For more information, please contact: ca EUR 118 million Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

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: Not indicated. For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

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 will already start in the fall 2014. The complex is called Value: 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. Construction works will probably start in 2015.

For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

Construction of 10 new office buildings in Tallinn

Completion In the next few years, 10 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. Pärnu mnt 102b office building (2015): YIT Ehitus AS / Total area: 2535 m2 / No. of floors: 4

3. Eesti Loto Building (2015): Hallivana OÜ / Total area: 4860 m2 / No. of floors: 9/-2

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

5. Järvevana Quarter (2015): Tehnopol / Total area: 11 560 m2/ No. of floors: 6-8/-1

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

7. Narva mnt 63 business building (2015): Pirita tee development / Total area: 11 330 m2 / No. of floors: 4/-1

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

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

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

For more information, please contact:

Aet Bergmann Partner, bnt Tallinn Phone: +372 667 62 40 [email protected]

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.

For more information, please contact:

Theis Klauberg Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

Construction of Campus of University of Latvia in Tornakalns

No significant Expansion of the campus of University of Latvia. dates indicated University of Latvia plans to build a new campus in Tornkalns for all departments of the Executed by: university. There are planned to build 10 buildings (120 000 m2) until 2023. The project of University of the first building is already finished and accepted. Latvia

Value est.: For more information, please contact: EUR 31 million (first building) Theis Klauberg Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

Reconstruction of Roads in Latvia

No significant Roads are to be reconstructed throughout Latvia. dates indicated Till 2013 will decide to start preparation works for potential three projects realization. Executed by: - road E22 section Kranciema karjers- Slāvu aplis, length 30km, ~EUR 260 million Ministry of (construction planned in 2020-2027) Transport; - road E67 Ķekava by-pass, length 15.9 km, ~EUR 136 million (construction planned in VA/S “Latvijas 2017-2019) Valsts ceļi” - road E22 section Priedaine - Sloka, length 19,4 km, ~EUR 163 million; (contstruction planned in 2016-2020) Value est.: EUR 550 million For more information, please contact:

Theis Klauberg Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

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.

For more information, please contact:

Theis Klauberg Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

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.

For more information, please contact:

Theis Klauberg Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

The New Hanza City

Completion Construction of the Hanza City financial centre. expected by 2033. The New Hanza City is planned to be as regional financial centre with office buildings for several financial institutions. New object development proposal envisages the creation of a Executed by: new urban district in the former railway goods station vicinity, the area between Pulkveza AS "ABLV Bank" Brieza, Hanzas, Skanstes and Sporta streets.

Value est.: Construction is planned to put into operation a number of building lots until 2033, however, EUR 250 million 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.

For more information, please contact:

Theis Klauberg Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

Building in the Centre of Riga up for Transformation

No significant A 6000 sq. m. building in the city centre of Riga is offered to investors. dates indicated. There is a permission issued by Rigas Dome (Riga town council) for the reconstruction of Executed by: whole complex and expansion of an additional floor, more than approx. 1500m2 in the Riga City Council inside body.

Value est.: The house by address – Avotu iela 4, was built in 1988 by the general architect of Riga Mr. - K.Seiko and it is located in the historical part of Riga, but it is not registered individually in the register of historical monuments. It also provides a major benefit for the further renovation, modernization and further reconstruction work. The entire complex requires the overall restoration work. Total area – 6000 m2, commercial area – 400 m2. The house is not mortgaged. There are only 1.9km from the Old City, 1.5km from the Central Train and Bus station and 0.75km from the active trade and living area in the city.

For more information, please contact:

Theis Klauberg Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

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.

For more information, please contact:

Theis Klauberg Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

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

For more information, please contact:

Theis Klauberg Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

Sale of real estate in Lucavsala, Riga

Sale planned to The real estate is located in Riga, Lucavsala , which is one of the largest islands in be performed Riga and is situated in the central part. Land covers most of the island's territory. by the end of 2014; The real estate is conveniently accessible from the Mūkusala roundabout, which is connected to the bridge, which is the longest bridge in Riga and connects the city center Executed by: with Pārdaugava. The north-east side of the real estate is next to Lucavsala’s new Riga City Council amusement park. The land is suitable for large investment projects , providing a unified development for Lucavsala’s territory. Starting price: EUR 26.58 million or 25.83 For more information, please contact: EUR / m2. Auction’s step: Theis Klauberg 200 000 EUR Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

Relocation will Bio2you is a Sea buckthorn products manufacturer which specializes in dietary be finished supplements and cosmetics. Company has found investor for relocating its during year manufacturing factory form Italy to Latvia. 2015; Bio2you products were manufactured for five years in Italy and now Latvian company has Executed by: decided to relocate factory to Latvia, Riga. With this move company will be more efficient Investment from and will be able to implement new product line. Fly Cap Bio2you sells dietary supplements, cosmetics, and lifestyle products in 15 countries Value est.: including: England, Denmark, Sweden, Finland, German and Malaysia. Product line is Will receive available at more than 600 stores. investment up to 1,5 million EUR For more information, please contact:

Theis Klauberg Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

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 For more information, please contact: P.M.G. Theis Klauberg Partner, bnt Riga Phone: +371 6777 05 04 [email protected]

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 2022. In July 2014 the Lithuanian Government approved a new Detention Facilities Modernisation Executed by: Programme, which provides the modernization of detention facilities by 2022. The The Ministry of programme involves the construction of a new detention facility on the outskirts of Vilnius Justice and the construction of new detention facilities in Šiauliai, Klaipėda and Panevėžys on a PPP basis. Value est.: EUR 40 million With regards to timing, Vilnius detention facility, with 1620 beds, will be the first to tender estimate for out. It is expected that a new detention facility near Vilnius will be built and the inmates, facility in Vilnius currently held in Lukiškės prison, which is located in the city centre, will be moved out by 2017. After this project, the next project in the pipeline is Šiauliai detention facility, with 800 beds.

The government is prepared to invest a large portion of budget funds, but private co- investors are also sought. Any interested investors are invited to join the government in investing their funds and executing the project as a PPP.

For more information, please contact:

Frank Heemann Partner, bnt Vilnius Phone: +370 5 212 16 27 [email protected]

Investment into National Air Carrier AirLituanica

Carrier Investors are invited to join the establishment of Lithuania’s national carrier. performing operations, Having started flights in June 2013, AirLituanica is still searching for private investors. investors sought. The project is mostly driven by the Vilnius City Municipality, which has provided the bulk of the investment (EUR 6.4 million). Private investors (over 40 persons) have so far Initiated and contributed the remaining (EUR 1.2 million). driven by the Vilnius City The company is continuously seeking for both financial investors and possibly a strategic Municipality. private investor who would be willing to take over the business.

Authorized AirLituanica’s plans include serving over 150 thousand passengers in 2015, and expanding Capital: to serve 500-600 thousand passengers within the coming 2 years. EUR 7.6 million

For more information, please contact:

Frank Heemann Partner, bnt Vilnius Phone: +370 5 212 16 27 [email protected]

Sale of the “Europa” Shopping Centre

Sale planned to The “Europa” Shopping Centre, located in a prestigious area in Vilnius, has been put be performed by up for sale. the end of 2014. “BPT Asset Management”, an investment company, initiated the sale of its real-estate fund Executed by: “BPT Secura”. The “Europa” Shopping Centre, a 22 600 sq. m. shopping mall located in the BPT Asset prestigious Konstitucijos avenue, forms part of the abovementioned fund. Management BPT intends to sell the shopping centre by the end of 2014. Value est.: Around EUR 25 million For more information, please contact:

Frank Heemann Partner, bnt Vilnius Phone: +370 5 212 16 27 [email protected]

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 complex went into debt in excess of LTL 1 million. The government decided to dispose the shares of the subject to the Ministry of Economy. The market value of buildings, structure and other assets – approx. 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 will start the process of privatization.

For more information, please contact:

Frank Heemann Partner, bnt Vilnius Phone: +370 5 212 16 27 [email protected]

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 LTL 40 million (EUR 11.5 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 millionThe 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.

For more information, please contact:

Frank Heemann Partner, bnt Vilnius Phone: +370 5 212 16 27 [email protected]

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 public-private partnership terms. The concession Ministry of recipient would be responsible for building infrastructure, repairs and maintenance, Transport and mooring of barges, loading of cargo, renting warehouses and other related services. The Communications partnership would last for up to 25 years.

Value est.: The Government has approved an amount of around LTL 295 million (EUR 85 million) + EUR 11 million VAT as a maximum contribution from the State over the concession period. An expected capital investment of at least EUR 11 million is expected from the private partner. It is expected investment. that cargo ships will begin coursing between Kaunas and the coastal town of Klaipėda by 2015.

For more information, please contact:

Frank Heemann Partner, bnt Vilnius Phone: +370 5 212 16 27 [email protected]

No significant UAB “Putokšnis”, a plastic containers producer, is seeking a strategic investor. dates indicated; The search follows a peace agreement with a private risk capital fund concluded out-of- Executed by: court which stipulates that UAB “Putokšnis” must seek a new strategic investor. UAB “Putokšnis“ The company experienced losses of EUR 1,7 million in 2011 and EUR 0,3 million in Value est.: 2012. Financial records for 2013 are not available yet. Undisclosed.

For more information, please contact:

Frank Heemann Partner, bnt Vilnius Phone: +370 5 212 16 27 [email protected]

Investment Sought for an Aviation Cluster

Infrastructure A new aviation industry cluster is being established near Kaunas airport. planned to be ready by 2017; Companies active in the aviation industry are invited to consider establishing themselves in a new aviation cluster near Kaunas airport (KUN). The area in the southern part of the Executed by: airport will be developed by 2017 to accommodate aviation bases, airplane servicing VĮ Lietuvos oro stations, personnel training facilities and cargo handling facilities. uostai (Lithuanian airports) Kaunas airport is located at the heart of Lithuania, and is strategically oriented towards low-cost carriers and air cargo hauling companies. Value est.: EUR 20 million investments into For more information, please contact: infrastructure. Frank Heemann Partner, bnt Vilnius Phone: +370 5 212 16 27 [email protected]

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 a Natural Gas Power Plant

No significant Construction of a natural gas power plant in the Brest Region. dates indicated. Installation of a combined cycle power unit of 400 MW consisting of two gas turbines of Executed by: 150 MW capacity, two heat-recovery boilers and a steam turbine of 150 MW capacity Belenergo;

Value est.: For more information, please contact: USD 500 million Alexander A. Ließem Partner, bnt Minsk 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” For more information, please contact:

Value est.: EUR 250 million Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

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.

For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

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 For more information, please contact: Belarus (NAIP); Gomel oblast Alexander A. Ließem executive Partner, bnt Minsk committee. Phone +375 17 203 94 55 [email protected] Value est.: EUR 227 million

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.

For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

Construction of a Multifunctional area in the centre of Minsk

First stage: A dramatic development in the skyline of Minsk. 2013-2015, hotel and parking. 2nd Multifunctional centre will be located practically in the centre of Minsk and it will include: to 4th stages: until 2022, - a business class hotel complex with exhibition and conference areas; offices, parking. - office facilities of В+ class; - sales, catering and entertainment areas; Executed by: - underground parkings. CJSC “HORIZONT- The centre is supposed to become the largest international centre of business activity in BELINVEST- Belarus. DEVELOPER” The total building area is 150,000 sq. m. The planned office area is 90,074 sq. m. Value est.: The planned hotel area is 13,000 sq. m. EUR 258.499 mln. For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

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 For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

Sale of a State Share in Mobile Operators MTS

Applications Sale of a state share in one of the largest mobile operators MTS. must be submitted by 5 MTS is one of the largest mobile communication operators in Belarus. The state share is 51 February 2014; %. Other big shareholder is OJSC “MTS” (Russia). The company’s network coverage is 98, 41 %. The total amount of consumers is 5,26 millions. Executed by: Republican The company’s business profile includes, in particular: unitary enterprise “Beltelecom” - telecommunication services; (National - retail trade; Telecommunicati - lease, etc. on operator of Belarus) The company’s net profit is 238 mln. EUR in 2012 and 143 mln. EUR during the first 6 months of 2013. Value est.: 630 Mln Euro (a Company also owns 5 260 sq.m. of commercial and 216 sq.m. of residential immovable lower price will property. also not be dismissed) For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

Sale of Shares in Major Belorussian Companies

Sale planned in State owned shares of major Belarusian companies are offered for sale. the period of 2014-2015 Belarusian state property committee has published a list of shares of some of the largest Belarusian companies offered for sale. Executed by: Belarusian State Among them are: property JCS “Mozyr oil refinery factory”- approx. 18% of share capital; committee Belarus-Austria JCSC “Glass factory Elizovo” – glass bottles and jars: 35%; Holding management company “Horizont” – audio and video electronics: 99,88%; Value est.: JSC “Remmeh” – fabricated metals, metal wire, sawing production: 99,86%; - JSC “BATE” – design and manufacture of starters and alternators for engines of trucks and passenger cars, buses, agricultural and special-purpose machinery: 25%; JSC “Promsvyaz” –leading manufacturer of telecommunication equipment: 99,73%; JSC “Transaviaexport” – the biggest airline cargo carrier in Belarus: 99,89%.

At the moment the government is looking for possibly interested investors. On the next stages the more detailed conditions for the deals including price setting procedures will be established

For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

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. - For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

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.

For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

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.

For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

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.

For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

Construction of Multifunctional centre “Minsk-City”

Significant dates: An opportunity to invest in a major development project, defining the new face Deadline for tender of Minsk. applications is 12 May. Construction The project provides for creation of business and shopping centres, apartment planned for structures (and corresponding infrastructure) practically in the centre of the 30 September 2015 Belarusian capital (the city of Minsk). It is planned that the facilities of social – 31 December infrastructure will be jointly financed by the city of Minsk and the investor. 2025; The entire building area is supposed to take approx. 300 hectare. Executed by: Minsk city executive The winner of the tender will be entitled to conclude an investment agreement with committee; Belarus and will be granted additional privileges and guarantees, for example, tax and customs privileges. Value est.: EUR 2.1 billion For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

Production of Euro 4 Engines

Significant dates: A possibility to invest into production of engines. 2014-2015; The project involves organization of Euro-4 engines production, in particular, Executed by: purchase of the imported equipment, raw materials, components, technologies and Ministry of industry, licenses. JSC “Borisov plant of aggregates”; As a result of project implementation the investor will get an access to the Belarusian OJSC “BATE” market. managing company of the holding An estimated payback period is 5 years. “Autokomponenty”; For more information, please contact: Value est.: EUR 2.1 billion Alexander A. Ließem (initial price) Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]

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.

For more information, please contact:

Alexander A. Ließem Partner, bnt Minsk Phone +375 17 203 94 55 [email protected]