AGENCY FOR INVESTMENT PROMOTION AND EXPORT SUPPORT OF SAKHA REPUBLIC (YAKUTIA)
CATALOGUE OF INVESTMENT PROJECTS OF SAKHA REPUBLIC (YAKUTIA)
Dear friends!
Yakutia has unique investment opportunities. This is due to the presence of the richest reserves of natural resources, a stable social and demographic situation, a high level of human capital and strong economic positions in the Far East Federal District. Yakutia is actively developing interregional, international and foreign economic relations. Stimulation of investment activity and formation of a comfortable investment climate will be unconditional priorities of the economic policy of the republic. In Yakutia, the necessary investment infrastructure has been created and is ready to provide comfortable conditions for doing business. We are open for productive cooperation and are sincerely glad to see you among our business partners!
Yours faithfully, Head of the Sakha Republic (Yakutia) Aisen NIKOLAEV
3 Dear Ladies and Gentlemen!
Our professional team will provide you a full range of services from plan development to project implementation based on Onestop-shop principle. The catalogue will introduce you to first priority investment projects of Sakha Republic (Yakutia). Looking forward to assisting you with discovering your investment opportunities in Yakutia! Yours faithfully, Director General Agency for Investment Promotion and Export Support of Sakha Republic (Yakutia) Alexander KONDRASHIN
AGENCY FOR INVESTMENT PROMOTION AND EXPORT SUPPORT OF SAKHA REPUBLIC (YAKUTIA)
36/1 Ordzhonikidze St., office 503, Yakutsk, 677000 Sakha Republic (Yakutia) Information and Consulting Department: +7 (4112) 39-83-00 (extension 67 905) +7 (4112) 40-20-42 Investment Project Promotion Department +7 (4112) 39-83-00 (extension 67 903) e-mail: [email protected] www.investyakutia.com
4 5 MEASURES OF STATE SUPPORT
Tax preferences: Profi t tax – 0% for 5 years Wealth tax – 0% for 5 years Land tax - 0% for 5 years Reduced contributions to extra-budgetary funds of the Russian Federation – for 10 years
Territories of Provision of land plot advanced social Preferential connection to the infrastructure and economic Simplifi ed visa regime for foreign citizens development Permission for foreign labor without quotas (SEZ) Issuance of building permits within 40 days Free customs zone regime Unscheduled inspections only after approval of the Ministry of Regional Development of the Russian Federation
Tax preferences: Profi t tax - 0% to the federal budget, no more Regional than 10% to the regional budget for the fi rst 5 investment years and no less than 10% for the next 5 years projects Reduced rate on mineral extraction tax
Available for citizens of 18 countries Quick receipt: average time - 20 minutes online Electronic visa for Issued for free visiting the Far East Valid for 30 days, allowed to stay in the region for 8 days
6 CONTENTS
TRANSPORT AND LOGISTICS 9 MINING AND DIAMOND-CUTTING INDUSTRY 15 AGRIBUSINESS 21 TOURISM 25 HOUSING AND UTILITIES SECTOR 29 OIL AND GAS INDUSTRY 35 IT 47 CONSTRUCTION MATERIALS 49 TIMBER INDUSTRY 55
7
TRANSPORT AND LOGISTICS
9 UPGRADING AND DEVELOPMENT OF RUSSIAN CAPACITIES TO CREATE MODERN RIVER FLEET FOR INLANDN WATERWAYS
Initiator: Zhatai Shipyard JSC
Total cost USD 87.9 M* Investment required USD 13.7 M Payback period 9,3 years NPV USD 28.5 M IRR 12,79%
Discount rate -
Project resume Construction of high-tech Zhatai Shipyard on the basis of the existing shipyard
Project’s signifi cance Replenishing the reserve of the carrying capacity of the Lena basin fl eet by constructing modern vessels. Systemically important project of North Yakutia stronghold area
Project parameters Annual productive capacity: constructing up to 10 river vessels with ship-breaking plant. Creating over 700 jobs
Project stages Engineering company is State Program for the Approval of the Obtaining the ASEZ established; business plan and Development of the Arctic is Russian State resident status; Commissioning; fi nancial model are elaborated endorsed; Designing the object Expertise Construction of the object Lead ship laying
2016 2017 2018 2019-2021 2021
Investor’s involvement level Engineering company’s equity holding Debt fi nancing
* in current prices without technical connection to the grid
10 RECONSTRUCTION (RENOVATION) OF YAKUTSK AIRPORT’S INTERNATIONAL TERMINAL
Initiator: Yakutsk Airport JSC
Total cost USD 21.7 M Investments required USD 20.8 M Payback period 13.7 years NPV USD 1.5 M IRR 6.2 %
Discount rate 5.8 %
Project resume Creating a modern international terminal of Yakutsk Airport, equipped with high-tech engineering infrastructure, ensuring the airport’s passengers’ and guests’ security and top- class comfort
Project’s signifi cance Extension of the airport’s international transport network Creation conditions for the inbound tourism development in Russia Improvement in passenger service and security to international standards
Project parameters Total cost of the project RUB 1 363.5 mln, including: USD 9.3 M – construction and installation USD 3.9 M – equipment for quality and safe passenger service USD 7.3 M – equipment for aircraft and airfi eld service USD 0.3 M – equipment for customs control systems
Project stages construction and installation, Purchase and Purchase and Project purchase and installation installation of aircraft installation of Finding preparation, of passenger service and airfi eld service equipment for customs investors design estimates equipment equipment control systems
2019 2019-2020 2020-2022 2021-2022 2022
Investor’s involvement level Lending a credit Involvement in the project on the principles of public-private partnership
11 CREATION OF A PROVING GROUND FOR AUTOMOBILE TIRES WITH UNIQUE CHARACTERISTICS
Initiator: NEFU Proving Ground LLC, M.K. Ammosov North-Eastern Federal University, Yakutsk City Administration
Total cost USD 18 M Investments required USD 16.8 M Payback period 13 years NPV USD 10.9 M IRR 17.2%
Discount rate 9.3%
Project resume Construction of a testing center for climatic tests of tires, machinery, equipment and materials in Yakutsk. The advantages of the new test site are the Arctic climate and the presence of permafrost
Project’s signifi cance The project will allow customers-producers to gain access to the facility, which has unique characteristics, such as: a wide temperature range, the quality of natural snow, the presence of permafrost
Project parameters - Since 2012, seasonal tests of automobile tires by the corporation Bridgestone are carried out on the basis of the existing autodrome - A Memorandum of Intent and Further Development of Cooperation with Bridgestone corporation was signed - Status of a resident of SEZ Industrial park Kangalassy was received
Project stages
Organization and Phase 1 Phase 2 Construction of year- preparation construction construction round indoor track
2018 2018 2019 2022
Investor’s involvement level Project fi nancing
12 MINING AND DIAMOND- CUTTING INDUSTRY
13 CREATING A JEWELRY AND DIAMOND-CUTTING CLUSTER IN KANGALASSY INDUSTRIAL PARK ASEZ (STAGES 1 AND 2)
Initiator: SAYBM LLC (subsidiary of JSCB ALMAZERGIENBANK JSC)
Total cost USD 27.8 M Investments required USD 25.1 M Payback period 6 years NPV USD 7.5 M IRR 32,4%
Discount rate 25%
Project resume The project aims to create integrated infrastructure for enterprises in jewelry and diamond- cutting industry and ensure favorable conditions for small and medium business Target market: the USA, Israel, Japan, Singapore, Hong Kong, Macao, Moscow and other Russian cities
Project’s signifi cance Creation of the jewelry and diamond-cutting cluster in the Sakha Republic (Yakutia) will allow to consolidate natural and human resources (talent, expertise, images) and lead to a new prominent development stage of jewelry and diamond cutting industry
Project parameters The production capacity is 600 kg of jewelry worth USD 94.8 M and 84 thousand carat of diamonds worth RUB USD 373.6 M by 2021 Land plot is available in in Kangalassy Industrial Park ASEZ
Project stages
Finding investors for Finding investors for stage 1 Design estimates stage 2 Construction Commissioning
2017 2017 2017-2021 2017-2018 2019
Investor’s involvement level Attract strategic investor Project fi nancing in the authorized capital with / without the right of participation
14 DEVELOPMENT OF RUCHEY TIREKHTYAKH ALLUVIAL TIN DEPOSIT IN THE SAKHA REPUBLIC (YAKUTIA)
Initiator: Yanolovo JSC
Total cost USD 51.4 M Investments required USD 51.4 M Payback period 9 years NPV USD 8.6 M IRR 19.9%
Discount rate 14.8%
Project resume The project of Yanolovo JSC aims at separate surface mining at Ruchey Tirekhtyakh alluvial tin deposit in Ust-Yana District of the Sakha Republic (Yakutia)
Project’s signifi cance Growth in tin mining and tin concentrate production in Russian and Sakha Republic (Yakutia) for the industrial development of the Russian Federation; Increased industrial production capacity of the republic; Creating new jobs in Ust-Yana District and creating conditions for further professional development; The project will create additional export capacity of the Sakha Republic (Yakutia)
Project parameters 2020-2032 Annual tin output: 2,400 tons Tin sale price: 19,000 USD/ton Sales revenue: USD 46.2 M
Project stages
Yanolovo JSC obtains a Up-to-date deposit’s Conditions feasibility study Approval of conditions The deposit’s license and starts works to surface plan is set. is completed and submitted feasibility study. Elaboration development is planned resume tin mining. Exploration Conditions feasibility for expertise with the and approval of the to begin after an investor project is prepared study is developed reserve estimation report detailed development plan enters the project
2015 2016 2017 2018 2020
Investor’s involvement level Direct investment Debt fi nancing
15 GRANITE MINING AND TREATMENT IN SOUTH YAKUTIA
Initiator: PromGeoSever LLC
Total cost USD 4.5 M Investments required USD 4.5 M Payback period 3 years NPV - IRR -
Discount rate -
Project resume Development and exploitation of granite mine in Serebrayny Bor settlement of Neryungri District of the Sakha Republic (Yakutia) Mining granite blocks with subsequent treatment
Project’s signifi cance Creating new jobs Creating new processing industry
Project parameters Production output – 1000 m³ License site area 15,2 ha Magmatic rock reserve 1,2 M m³
Project stages
Preparatory works, purchase of Start of granite equipment Start of granite mining treatment
Quarter 2 of 2019 Quarter 3 of 2019 Quarter 1 of 2020
Investor’s involvement level Lending a credit
16 DEVELOPMENT OF TAYOZNOYE DEPOSIT
Initiator: Timir Mining and Metallurgical Company JSC
Total cost USD 1.9 B Investments required USD 1.5 B Payback period - NPV - IRR -
Discount rate -
Project resume Development of Tayoznoye deposit and production of iron-ore concentrate, pellets, direct- reduced iron as well as development of Desovskoye, Tarynakhskoye and Gorkakitskoye deposits
Project’s significance Creating a world-class iron-ore cluster in South Yakutia
Project parameters Timir Mining and Metallurgical Company JSC holds 4 production licenses (Tayoznoye, Desovskoye, Tarynakhskoye and Gorkakitskoye deposits) with a total stock of 3,5 B tons It is planned to start the complex’s development with Tayoznoye deposit To develop Tayoznoye deposit, it is planned to construct Tayozniy Mining and Processing Plant with up to 8 tons of concentrate production output and admissible configurations of further development (pellets/hot-briquetted iron)
Project stages
Construction of Equipping Tayozhniy Tayozhniy Mining Start of Mining and Processing Construction of and Processing concentrate Plant with pellet hot-briquetted iron Designing Plant production production equipment production facility Full production
2019 2020-2022 2022 2027 2028 2029
Investor’s involvement level Equity investment Debt financing
17
AGRIBUSINESS
19 CONSTRUCTION OF A YEAR-ROUND GREENHOUSE COMPLEX IN SYRDAKH VILLAGE OF THE URBAN DISTRICT OF THE CITY OF YAKUTSK
Initiator: Sayuri LLC
Total cost USD 26.7 M Investments required USD 0.95 M Payback period 6 years NPV USD 1.8 M IRR 19%
Discount rate 5,7%
Project resume Creation of a year-round greenhouse complex for growing vegetables and greenery, with a heat and power plant, offi ce, warehouse and auxiliary buildings in the conditions of the Far North and permafrost The project is implemented in the Kangalassy Industrial Park ASEZ
Project’s signifi cance Year-round provision of quality and aff ordable fresh vegetables and greenery The project corresponds to the Strategy of development of the agro-industrial complex of Russia for the period up to 2020 and is included in the state program of the Russian Federation ‘Social and economic development of the Far East and Baikal region
Project parameters The area of the greenhouse complex - 3.3 ha The design capacity by 2022: -1 174 tons of cucumbers, target market coverage - 25% -646 tons of tomatoes, target market coverage - 10% -41 tons of greenery, target market coverage - 13.2%
Project stages
Commissioning of Commissioning of Start of construction Reaching the project construction stage 1 construction stage 2 stage 3 capacity
Quarter 4 of 2016 Quarter 2 of 2019 Quarter 2 of 2019 2022
Investor’s involvement level Lending a credit; attracting a strategic investor; project fi nancing to the authorized capital with/without the right of participation; equity holding with the right of management
20 PRODUCTION MODERNIZATION OF YAKUTIA FINANCIAL AGRO-INDUSTRIAL CORPORATION JSC
Initiator: Yakutia Financial Agro-Industrial Corporation JSC
Total cost USD 3.7 M Investments required USD 3.7 M Payback period 4 years NPV USD 11.4 M IRR 90%
Discount rate 15%
Project resume Modernization of spirits and beer production facilities Reconstruction of a steam boiler of the spirits production facility in Bailovka village of Tambov Oblast
Project’s signifi cance Marketing development in the Sakha Republic (Yakutia) with subsequent entrance to the Russian Far East market Increase of exports to the Asia-Pacifi c countries
Project parameters Production output by 2028: -Spirits – 550 ths dal a year -Beer – 800 ths dal a year -Soft drinks – 580 ths dal a year
Project stages
Business plan Attraction of credit development Design estimates resources Commissioning
2018 2018 2019-2020 2019-2020
Investor’s involvement level Lending a credit
21 EDIBLE SALT PRODUCTION ON THE BASE OF KEMPENDYAI SALINE SOURCE
Initiator: Kempendyai Salt-making Company LLC
Total cost USD 1.14 M Investments required USD 1.1 M Payback period 5 years NPV USD 1 M IRR 41,6%
Discount rate 18,6%
Project resume Organizing the effi cient use of Kempendyai salina by introducing a vacuum evaporating method to get extra fi ne grade edible salt. Establishing a new industry of producing, packing and branding the Kempenndyai salt
Project’s signifi cance Securing a steady supply of the safe quality product to the citizens of the Sakha Republic (Yakutia). The project’s implementation will facilitate a solution to the tasks envisaged in the Development Strategy for Food and Processing Industry of the Russian Federation until 2020
Project parameters The existing salt output by a freezeout method – 1500-2000 tons The output under the project is 4000 tons of edible salt Source raw material – self-pumping brine from the active salt wells of Kempendyai saline source at rate of 110 m³/day
Project stages
Preparing Manufacturing and delivery of documentation and technological equipment, purchase Construction of production Launching the fi nding fi nancing of packing equipment facilities, installation production of edible salt
2019-2020 2021 2021 2022
Investor’s involvement level Lending a credit Attracting a strategic investor
22 TOURISM
23 CONSTRUCTION OF A 4-STAR HOTEL COMPLEX IN YAKUTSK
Initiator: Yakutsk City Administration, EKSI-Stroy LLC (EKSI Group), Republican Investment Company JSC
Total cost USD 22.1 M Investments required USD 22.1 M Payback period 11,6 years NPV USD 6 M IRR 15,5%
Discount rate 10,8%
Project resume Construction of a 4-star hotel complex to meet the growing demand for comfortable rooms and quality services in Yakutsk
Project’s signifi cance Development of HoReCa sector in the Sakha Republic (Yakutia) by expanding and renovating the hotel complexes in the city of Yakutsk Tourist traffi c is growing due to the new international and national events held in Yakutsk and the Sakha Republic (Yakutia)
Project parameters Hotel complex – 8-storey monolithic frame building, Land area 5743 m², Number of rooms – 150
Project stages
Start of construction Commissioning
2019 2021
Investor’s involvement level Lending a credit Project fi nancing to the authorized capital
24 CONSTRUCTION OF THE INTERNATIONAL BRAND-MANAGED HOTEL COMPLEX FOR 88 ROOMS IN YAKUTSK
Initiator: AEB Capital LLC
Total cost USD 13.9 M Investments required USD 10 M Payback period 12 years NPV USD 10.45 M IRR 14,02%
Discount rate 13%
Project resume Creating the city’s and region’s fi rst quality hotel of 3+* - 4* category, managed bythe international brand The object’s advantageous location
Project’s signifi cance The project’s implementation will open the way to the transformation of Yakutsk architectural and city-planning solutions and increase the region’s investment and tourist prospects
Project parameters The site’s total area – 1538 m². It’s a street-view site in the city’s central street The useful area of the project - 4,020 m² Number of storeys – 6 Number of rooms – 88
Project stages
Business plan, development fi nding investors, design estimates Start of construction Commissioning
2018 Quarter 3 of 2020 Quarter 1 of 2022
Investor’s involvement level Engineering company’s equity holding Debt fi nancing
25 CONSTRUCTION OF ADMINISTRATIVE BUILDING IN P. ALEKSEEVA ST., YAKUTSK
Initiator: Choroon Construction Company LLC
Total cost USD 8.2 M Investments required USD 5.1 M Payback period 7 years NPV USD 1.8 M IRR -
Discount rate -
Project resume Construction of modern 12 story administrative building in downtown, Yakutsk. The facility has high investment attractiveness due to its location surrounded by rich service, trade and business infrastructure
Project’s signifi cance Implementation of the project will usher in the transformation of architectural and urban planning decisions in Yakutsk and increase tourist attractiveness of the region
Project parameters Facility’s total area: 10,307 square m. Floor layout: 1-5 fl oors: retail premises; 6-8 fl oors: offi ce premises; 9-11 fl oors - hotel apartments; 12 fl oors – restaurant
Project stages
Business plan development, preparation of authorized Start of documentation construction Commissioning
2016 2017 2019
Investor’s involvement level Credit loan Strategic partnership
26 HOUSING AND UTILITIES SECTOR
27 CONSTRUCTION OF A WASTE RECYCLING COMPLEX IN YAKUTSK
Initiator: YakutskEcoSeti LLC, Yakutsk City Administration
Total cost USD 17.5 M Investments required USD 17.5 M Payback period 8 years NPV USD 1.8 M IRR 8,9%
Discount rate -
Project resume Construction of a complex for accumulation, transportation, processing and disposal of production and consumption waste in Yakutsk District with a capacity of up to 515 tons of solid waste per day
Project’s signifi cance The complex will be the only project in Yakutia, allowing to organize continuous work on the treatment and disposal of waste to improve environmental safety in order to protect human health and maintain a favorable environment The number of jobs created by 2025 - 75
Project parameters Land plots provided with engineering infrastructure for administrative and production facilities with an area of 117,3 thousand m² and a landfi ll with an area of 474,5 thousand m² are reserved
Project stages
Development of business plan and design estimates; Construction of the facility, Finding investors purchase of equipment Commissioning
2018 2019 2021
Investor’s involvement level Attracting a strategic partner
28 CONSTRUCTION OF WATER DISTRIBUTION POINT № 5 IN YAKUTSK
Initiator: Vodokanal JSC
Total cost USD 14.1 M Investments required USD 13 M Payback period - NPV - IRR -
Discount rate -
Project resume The construction of the facility is required in connection with the planned development of the southern part of Yakutsk (Zalog area and Avtodorozhny District)
Project’s signifi cance The construction of the facility will allow to increase the volume and pressure of water in the water supply systems of Zalog area and Avtodorozhny District of Yakutsk. Without the water distribution point № 5 it is impossible for the newly constructed and reconstructed facilities to connect to the water supply systems, which restrains the city’s development; Expanded network with the connection of the newly constructed and reconstructed facilities of Quarters 6, 8, 1, 68, 117, 121, 122, 123, 124 of the city of Yakutsk
Project parameters Own funds invested by the company make USD 1.1 M; Positive fi ndings of State Expertise for technology and estimates have been received (2017-2018) The general contractor will be selected by the open tender The project is scheduled for implementation in 2019-2022
Project stages
Business plan Implementation of development Finding investors the project
2018 2019 2019-2021
Investor’s involvement level Lending an investment credit for 10 years. Repayment of the principal debt and the interest from the state budget of the Sakha Republic (Yakutia)
29 CONSTRUCTION OF A SEWAGE COLLECTOR № 3 IN YAKUTSK (STAGES 1 AND 2)
Initiator: Vodokanal JSC
Total cost USD 34.9 M Investments required USD 33.8 M Payback period - NPV - IRR -
Discount rate -
Project resume Sewage collector № 3 (Stages 1 and 2) is designed for the disposal of sewage from the unsewered Zalog area of the city, including the areas of DSK and military unit to the municipal sewer, as well as to intake the additional waste water from the newly constructed facilities
Project’s signifi cance Increased availability and reliability of water disposal for the development of the city of Yakutsk Expanded consumer net, connecting the newly constructed facilities
Project parameters Own funds invested by the enterprise make USD 1.1 M. Positive fi ndings of State Expertise for technology and estimates have been received (2017-2018) The general contractor will be selected by the open tender The project is scheduled for implementation in 2019-2022
Project stages
Business plan Implementation of development Finding investors the project
2018 2019 2019-2022
Investor’s involvement level Lending an investment credit for 10 years. Repayment of the principal debt and the interest from the state budget of the Sakha Republic (Yakutia)
30 CONSTRUCTION AND UPGRADE OF HEAT SUPPLY FACILITIES IN YAKUTSK
Initiator: TeploEnergiya JSC
Total cost USD 11.2 M Investments required USD 8.9 M Payback period 7 year NPV USD 0.7 M IRR 19,5%
Discount rate 15 %
Project resume Construction and reconstruction of boiler houses, central heating units, equipped with modern equipment, for a reliable heat supply to the developing territories of Yakutsk
Project’s signifi cance Expansion of the district heating network in the developing territories of Yakutsk. Modernization and power augmentation of heat-generating sources for a reliable heat supply. Connection of the newly constructed and reconstructed facilities to the heat supply networks
Project parameters The project’s total cost is USD 11.2 M, including: USD 0.4 M – design estimates USD 10.8 M – construction and installation Modernization of 4 boiler houses with the power augmentation of 48megawatt, and the construction and renovation of heat supply networks with a total length of 10,5 km
Project stages
Construction and Project preparation, installation, purchase and Finding investors design estimates installation of equipment Commissioning
2019 2019-2022 2020-2023 2020-2023
Investor’s involvement level Lending a credit
31
OIL AND GAS INDUSTRY CONSTRUCTION OF A MEDIUM-SCALE LNG PLANT IN THE SAKHA REPUBLIC (YAKUTIA)
Initiator: Liquefi ed Natural Gas LLC
Total cost USD 259.5 M Investments required USD 228.8 M Payback period 5 years NPV USD 160.2 M IRR 51.5%
Discount rate 22.3%
Project resume Creating LNG production processing plant for long-distance haulage of natural gas Target market: South Yakutia, Zabaykalsky Krai, China, Mongolia, Asia-Pacifi c countries
Project’s signifi cance Natural gas processing for subsequent pipeless transportation to the point use, production of NGV fuel for all modes of transport, creating a commercial processing plant
Project parameters Production capacity – 530 000 tons of LNG a year A land plot of 20 ha is available. Gas specifi cations have been obtained
Project stages
Prefeasibility study development Design estimates Finding investors Construction Commissioning
2019 2020 2020-2021 2021-2024 2024
Investor’s involvement level Attracting a strategic investor Project fi nancing to the authorized capital with/without the right of participation
34 DEVELOPMENT OF OTRADNINSKOYE GAS CONDENSATE FIELD
Initiator: SakhaTransNefteGaz JSC
Total cost USD 512 M Investments required USD 177 M Payback period 7 years NPV - IRR -
Discount rate -
Project resume Commercial development of Otradninskoye gas condensate fi eld Increased gas output Organizing export supply to the Power of Siberia Main Pipeline
Project’s signifi cance Creating new jobs Continued gasifi cation of the Sakha Republic (Yakutia), the project’s involvement inthe territories’ socio-economic development
Project parameters Scope of supply up to 3,6 bln m³ of natural gas a year, drilling of 19 drills, technological fl owlines, construction of a main gas pipeline, gas processing plant, booster pump station
Project stages
Start of gas supplies to the Discovery of the consumers in the town of Commercial development fi eld Lensk, 50 mln m³ a year Appraisal of the fi eld of the fi eld
1993 2009 2019-2021 2020-2022
Investor’s involvement level Project fi nancing Lending a credit Possibility of buying the company’s share
35 DEVELOPMENT OF ERGEDZHEY SUBSURFACE SITE
Initiator: SakhaTransNefteGaz JSC
Total cost USD 76.5 M Investments required USD 44 M (exploration phase) Payback period - NPV - IRR -
Discount rate -
Project resume проекта Development of Ergedzhey subsurface site. Conducting geological survey and approving the oil and gas reserve. Preparing the fi eld for the commercial development and arrangement of natural gas supply to the Power of Siberia Main Pipeline
Project’s signifi cance Creating new jobs Continued gasifi cation of the Sakha Republic (Yakutia), the project’s involvement inthe territories’ socio-economic development
Project parameters Seismic survey 2D – 1265 lin km Geochemical surveys – 3000 points Prospecting drilling – 2 drills Development drilling – 3 drills
Project stages
Start of prospecting Approval of the Attracting a strategic Appraisal and commercial surveys reserve partner development of the fi eld
2019 2023 2024 2024-2027
Investor’s involvement level Project fi nancing Lending a credit Possibility of buying the company’s share
36 DEVELOPMENT OF THE ULUGURSKY SUBSOIL SITE
Initiator: SakhaTransNefteGaz JSC
Total cost USD 76.5 M
Investments required USD 35.8 M (exploration phase) Payback period - NPV - IRR -
Discount rate -
Project resume Development of Ulugursky subsoil site. Geological exploration and approval of oil and gas reserves. Site preparation for industrial development and export of natural gas via Power of Siberia gas pipeline and/or Eastern Siberia–Pacifi c Ocean ESPO pipeline. Forecast resources D2 category: Gas 78.3 billion cubic m; Oil 15 million tons
Project’s signifi cance Participation in the socio-economic development of territories Development of gasifi cation in Sakha Republic (Yakutia) Job creation
Project parameters 2-D seismic survey – 1,220 linear km Geochemical works – 6,000 points Preliminary drilling – 2 wells Exploration drilling – 3 wells
Project stages
Supplementary Geological Exploration Deposit discovery Search for exploration and exploration phase Reserves calculation Exploration phase strategic partner industrial development
2019 2019-2022 2022 2023-2024 2024 2025-2027
Investor’s involvement level Project fi nance Credit loan Equity investment
37 PRODUCTION OF ELECTRICITY AND LIQUEFIED GAS FROM NATURAL GAS RESOURCES OF THE SOUTHERN EDGE OF LENA- ANABAR FORE-DEEP
Initiator: OlenyokNefteGaz LLC
Total cost USD 73.1 M Investments required USD 73.1 M Payback period 3-4 years NPV - IRR -
Discount rate -
Project resume Creating a new production of electricity and liquefi ed gas (LNG, LHG, CNG) from natural gas resources
Project’s signifi cance The project’s high effi ciency, providing the population with cheaper energy, creating new jobs, the project’s involvement in the territories’ socio-economic development
Project parameters Gas output – 100 mln m³ a year. Power and liquefi ed gas output to replace the consumption of the Arctic diesel in the volume of 50-60 ths tons
Project stages
Evaluating the prospects for oil Prospect evaluation Start of commercial and gas, licensing survey Surveying development
2019 2019-2020 2022-2021 2022
Investor’s involvement level Investment with the right of management
38 EXPLORATION AND DEVELOPMENT OF OIL AND GAS FIELDS IN WESTERN YAKUTIA – EASTERN SIBERIA
Initiator: TuymadaNefteGaz JSC
Total cost From USD 214 M Investments required From USD 4.6 M Payback period 3,5 years NPV To USD 347 B IRR To 125%
Discount rate 10%
Project resume Development of licensed sites for technical drilling and oil and gas extraction Goal of the project: Oil and gas extraction for subsequent export Target market: Asia-Pacifi c countries
Project’s signifi cance Development of oil and gas industry and development of oil and gas fi elds, engagement of local specialists in diff erent areas, stimulation of activity to develop research engineers and increased tax revenues at the local and regional levels
Project parameters Production output: - To 268 ths tons of oil/year - To 0,6 bln m³ of gas/year
Project stages
Start of technical drilling and Exploration drilling oil extraction
2019-2022 2022
Investor’s involvement level Project fi nancing Lending long-term credits Participation in capital
39 GEOLOGICAL SURVEY AND COMMERCIAL DEVELOPMENT OF THE WEST ANABARSKY LICENSE BLOCK
Initiator: Tuymada-Neft Oil Company JSC
Total cost USD 5.6 B Investments required USD 5.6 B Payback period 11 years NPV USD 2 B IRR 24,4%
Discount rate 10%
Project resume The goal of the project – cost eff ective commercial development and large-scale oil and gas extraction in West Anabar licensed subsurface site of the Sakha Republic (Yakutia)
Project’s signifi cance The project is one of the large-scale oil and gas projects associated with development of the Russian Arctic. Unique oil and gas reserves of the Sakha Republic (Yakutia) make favorable forecast for the oil industry of the Russian Federation
Project parameters Predicted resources D1+D2 are estimated as follows: - Oil - 256,3 mln tons (recoverable), gas - 495,3 bln m³. Annual production: - Oil – 12 mln tons - Natural gas – 10 bln m³ - Gas condensate – 114 ths tons
Project stages
Technical drilling and Geological survey Exploration activities site engineering
2016-2022 2020-2023 2023-2025
Investor’s involvement level Project fi nancing by establishing a joint venture Lending a credit Leasing
40 ESTABLISHING A CHAIN OF GAS FILLING STATIONS IN THE SAKHA REPUBLIC (YAKUTIA) AND CONSTRUCTING A LHG STORAGE PARK IN NIZHNY BESTYAKH SETTLEMENT
Initiator: YakutGazSnab LLC
Total cost USD 11 M Investments required USD 9.2 M Payback period 7 years NPV USD 3.6 M IRR 22,1%
Discount rate 10%
Project resume Construction of a chain of gas fi lling stations to receive, store and fuel motor vehicles, operating on hydrocarbon gas, in the across-the-river and southern districts of Yakutia Construction in Nizhny Bestyakh of the LHG storage park with a total storage capacity of 11,000 m³ to ensure uninterrupted operation of gas fi lling stations when there is no passage across the Lena River and wholesale supply of liquefi ed gas fuel
Project’s signifi cance Increased availability of liquefi ed hydrocarbon gases (LHG) in the across-the-river and southern districts of the Sakha Republic (Yakutia) Lower LHG fuel prices
Project parameters Number of gas fi lling stations – 8 stations Total LHG storage capacity - 11000 m³
Project stages
Construction of gas fi lling Construction of a storage Construction of a storage stations park for 1000 m³ park for 10000 m³
2019-2020 2020 2021
Investor’s involvement level Lending a credit Attracting a strategic investor Project fi nancing to the authorized capital with/without the right of participation
41 AUTOMOBILE GAS STATION NETWORK DEVELOPMENT
Initiator: GazTorg LLC
Total cost USD 1.7 M Investments required USD 1.7 M Payback period 2 years NPV USD 0.5 M IRR 43%
Discount rate 22%
Project resume GazTorg is one of the leading local companies focused on provision of liquefi ed petroleum gas with two operating gas fi lling stations in Yakutia located in Pokrovsk (Khangalassky District) and Yakutsk. Additional Gas station in Nizhny Bestyakh is in process of construction. The project aims for the construction of 7 new gas stations in Churapcha, Amga, Aldan, Neryungri, Vilyuysk, Verkhnevilyuysk and Yakutsk as well as development of 1 CNG station in Nizhny Bestyakh
Project’s signifi cance Meeting gas motor fuel needs of Sakha Republic (Yakutia)
Project parameters Sales of 18,000 tons of LPG annually
Project stages
Construction of Creation of Opening gas Opening gas automobile gas fi lling Equipment GazTorg stations in Pokrovsk stations in Yakutsk station in Nizhny Bestyakh procurement Commissioning
2013 2016 2018 2019 2020 2020-2021
Investor’s involvement level Credit loan Strategic partnership
42 IT
43 SMART CLOUD PLATFORM
Initiator: Smart Unit LLC
Total cost USD 1.7 M Investments required USD 1.7 M Payback period 3 years NPV USD 5.4 M IRR 283%
Discount rate 17%
Project resume SMART cloud platform is a software package to implement the automation solutions in the companies (CRM, ERP, BI, etc.) on SaaS terms, suitable for customization; automation of focused facilities; renting the platform itself to create solutions by clients or outside developers on PaaS terms; renting the platform to create solutions/modules by partnering companies/freelancers/ integrators for further implementation under SaaS scheme
Project’s signifi cance At present, this technology has no analogues in the market. In its essence, the project intends to create a cloud tool to create automation systems and web apps in design view. The implementation of the project will allow to: considerably reduce costs for developing automation and digitalization means; boost the development of IT industry in the republic and in Russia; create many jobs
Project parameters Estimated revenue by 2022 – about USD 15.3 M with further confi dent growth without growing costs. As of today, the core framework has been implemented by 70%, upgrading is continued with the company’s own funds. The project is already in the payback period; investment is required to boost the project’s completion and entering the PaaS and Saas markets. There is a coordinated team of professionals. The company’s revenues for 2018 – USD 245 ths.
Project stages Start Development Implementation of a Completion of Entering Entering Dissemination of the of the of SMART core number of solutions, works for SMART the PaaS the SaaS solutions at the Russian project framework the platforms upgrade platform market market and international markets
2014 2015-2016 2016-2018 2019 2020 2021 2022
Investor’s involvement level Lending a credit Attracting a strategic investor Project fi nancing to the authorized capital with/without the right of participation
44 CONSTRUCTION MATERIALS
45 PRODUCTION OF FOAM ZEOLITE-BASED CONSTRUCTION MATERIALS
Initiator: Suntarzeolite LLC
Total cost USD 1.1 M Investments required USD 0.8 M Payback period 4 years NPV USD 5.4 M IRR 26,3%
Discount rate 20,5%
Project resume Arranging the production of foam zeolite-based construction materials to provide construction materials for project construction Target market: Western Yakutia
Project’s signifi cance Production of foam zeolite-based construction materials will allow to eliminate additional heat-insulating materials, reduce labor eff ort, thus reducing the construction costsby 20-30%
Project parameters Foam zeolite production capacity – 10 000 m³ a year Wall blocks production capacity - 25 m³ an hour Land plot available on km 2 from Ustye village, workshop facility totaling 648 m² has been constructed Grid connection and purchase of major equipment are conducted
Project stages
Purchase of Commissioning and Reaching the project equipment start-up capacity Increase of capacity
2019 2019 2020 2022
Investor’s involvement level Lending a credit Attracting a strategic investor Project fi nancing to the authorized capital without the right of participation
46 SPECIAL-PURPOSE AGGREGATE FOR LIGHT-WEIGHT HIGH- PERFORMANCE CONCRETE TO BE USED IN HYDRAULIC CONSTRUCTION Initiator: Administration of Khangalassky District municipal district of the Sakha Republic (Yakutia), Suntarzeolite LLC, Sokol LLC Total cost USD 12.9 M Investments required USD 12.9 M Payback period 3 years NPV - IRR -
Discount rate -
Project resume One of the few Russian deposits of very high-quality zeolite with very large stocks is located in the Sakha Republic (Yakutia), not far from Suntary settlement, at Khonguru deposit The project’s initiators have started implementing the project on making foamed zeolite for oil and gas industry
Project’s signifi cance 1.Employment rise to 100 people; 2.Increased tax and social payments to the budgets of all levels; 3.Using the product in diff erent, both knowledge-intensive and innovative industries (construction, agriculture, oil and gas industry, ecology, etc.) 4.Import substitution opportunity in terms of using special-purpose construction materials in hydraulic onstruction 5.Reduction of construction cost of the bridge across the Lena River by decreasing the length of span and reducing the volume of the framework
Project parameters 2019 2020 2021 Volume of sales, ths m³ 100 100 200 Revenue, USD mln 12.2 12.2 24.4 Costs, USD mln 9.25 9.25 18.5
Project stages
Testing the product samples Finding investors Commissioning
2018 2018-2019 2019
Investor’s involvement level Lending a credit or becoming a founder
47 PRODUCTION OF CERAMIC TILES AND CERAMIC GRANITE
Initiator: YakutKerama LLC
Total cost USD 23 M Investments required USD 13.7 M Payback period 4,9 years NPV USD 56.6 THOUS IRR 36%
Discount rate 12%
Project resume Creating up-to-date production of ceramic tiles and ceramic granite. Obtaining a stable position in the regional sales market, gradual product promotion in the Russian regions and CIS countries
Project’s signifi cance Launching of new competitive quality products favors the development of a homegrown export-oriented brand as well as creates new jobs
Project parameters The planned capacity is up to 3,5 M m² of ceramic tile and ceramic granite, including: 1 mln m² of technical ceramic granite, 1 mln m² of polished ceramic granite, 500 ths m² of structured ceramic granite, 1 mln m² of glazed ceramic tiles
Project stages
Purchasing machines Installation and Mounting of Launching the Preparatory work and equipment construction work production lines project
Quarters 1-2 of 2019 Quarters 1-2 of 2019 2019-2020 2020 Quarter 4 of 2020
Investor’s involvement level Lending a credit becoming a founder Attracting a strategic investor Financing to the authorized capital with the right of participation
48 MINI-METALLURGICAL PLANT FOR PRODUCTION OF STEEL REINFORCEMENT WITH THE CAPACITY OF 6 THOUSAND TONS PER YEAR
Initiator: Quant Profi LLC
Total cost USD 2 M Investments required USD 1.6 M Payback period 3,5 years NPV USD 229.4 THOUS IRR 32%
Discount rate 10%
Project resume Manufacture of steel reinforcement grade AIII 25g2s by processing the hulls of retired vessels in the Territory of Advanced Development Kangalassy Industrial Park
Project’s signifi cance Solving the environmental problem of pollution with metal waste Creation of new production facilities in the Sakha Republic (Yakutia) Decrease in the cost of construction materials using fi ttings
Project parameters Steel reinforcement capacity - 6000 tons Production: briquetted scrap of ferrous metals (scrap metal) Creation of 15 workplaces
Project stages Signing of an agreement Installation and with TAD Kangalassy commissioning of Achieving design Industrial Park DCP development equipment capacity
Q2 2020 2020-2021 2021 2022-2023
Investor’s involvement level Lending a credit Attracting a strategic investor Project fi nancing to the authorized capital without the right of participation
49
TIMBER INDUSTRY
51 DEVELOPMENT OF ALMAS LLC TIMBER PROCESSING COMPLEX
Initiator: ALMAS LLC
Total cost USD 81.2 M Investments required USD 81.2 M Payback period 6.3 years NPV USD 7.5 M IRR 29%
Discount rate 19%
Project resume Development and consolidation of lumber producers of Sakha Republic (Yakutia), including but not limited to export-oriented products
Project’s signifi cance Increasing production profi tability Job creation New products development (pellets) through waste processing inputs Growth of revenue and income
Project parameters
Expected results by 2032: Lumber and woodworking products – 279 thousand cub m focused on internal market and export; Pellet production – 155 thousand tons focused on export
Project stages Finding investors, negotiating the establishment of Priority Construction and Social and Economic start of sawmilling Construction and Construction and Development of Development Area, fi nding and pellet production start of sawmilling (2 start of pellet Reaching project business plan residents for PSEDA (1 stage) stage) production (2 stage) capacity
2019 2019-2020 2021 2024 2025 2030
Investor’s involvement level Credit loan, fi nance lease Strategic partnership Equity holding
52 MANUFACTURER OF 160 000 TONS OF FUEL PELLETS
Initiator: Yakutian Fuel Pellets JSC
Total cost USD 7.3 M Investments required USD 3.1 M Payback period 6.1 years NPV USD 16.5 M IRR 104.5%
Discount rate 10%
Project resume Creating a fuel pellet producing plant with a capacity of 80 000 tons of end product a year in the town of Tommot
Project’s signifi cance Recycling the sawmill residues, energy-effi cient fuel with a high calorifi c capacity Export to the Asia-Pacifi c Region Creation of new jobs
Project parameters Production output – 160 000 tons a year Use of raw materials - coniferous forests in Aldan District subject to cleaning cutting: selecting felling of unneeded trees (expexted permission for deforestation for a period of 49 years)
Project stages
Start of the Start of production construction work (25%) Reaching full project capacity
June 2019 January 2020 July 2020
Investor’s involvement level Company’s equity holding Credit loan Leasing
53 OUR PARTNERS: FOR NOTES
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