Baltics-Belarus Business Opportunity Survey

Belarus Estonia Latvia Lithuania

May 2016

www.bnt.eu

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

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

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

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

Contents:

Estonia...... 5 Construction of liquefied natural gas terminal ...... 6 Construction of “Gate Tallinn” retail park ...... 7 Construction of Tallinn prison ...... 8 Construction of Peterburi Rd. shopping centre ...... 9 Construction of Estonian National Museum ...... 10 Development of green seaside residences ...... 11 Kalaranna residential development ...... 12 Pärnpuu-Pärnõie residential quarter ...... 13 Sale of Estonian Academy of Art premises ...... 14 Further Development of Ülemiste City ...... 15 Development of largest conference centre in Tallinn ...... 16 Architecture competition for Estonian Academy of Arts ...... 17

Development of Tondi residential quarter ...... 18 New office building in Tallinn’s Freedom Square ...... 19 Development of Admiralty Basin surroundings ...... 20 Construction of new office buildings in Tallinn ...... 21 Construction of submarine railway tunnel (Tallinn – Helsinki) ...... 22 New residential quarter at the Noblessner harbour ...... 23 Construction of tramway track extension to Tallinn airport ...... 24 Sale and reconstruction of Tallinn City Hall (Tallinna Linnahall) ...... 25 Major EU financing for Estonia via “Rail Baltica” project ...... 26 Latvia ...... 27 Construction of Riga Northern Transport Corridor ...... 28 Reconstruction of open-air festival stage ...... 29 Construction of Rail Baltica stretch in Latvia ...... 29 The New Hanza City ...... 30 Reconstruction of New Riga Theatre ...... 31 First Hilton Garden Inn in Baltic States ...... 32 Renovation and development project for Kaļķu Street ...... 33 Transformation of Daugava Sports Stadium ...... 34 New logistics centre in Rāmava...... 35 Major EU financing for Latvia via “Rail Baltica” project ...... 36 Business incubators will receive EUR 32.8 million ...... 37 Lithuania ...... 38 Modernization of detention facilities ...... 39 Privatization of “Baltija” rest house in Palanga ...... 40 Modernization of Lithuanian Zoo in Kaunas ...... 41 Development of Cargo Port in Kaunas ...... 42 Highway A5 Kaunas-Marijampolė-Suwalki ...... 43 Reconstruction of the A14 Vilnius – Utena highway...... 44 Vilnius Multifunctional Complex ...... 45 “Lithuanian Airports” seek investors ...... 46 Major EU financing for Lithuania via “Rail Baltica” project...... 47

Belarus ...... 48 Manufacturing of ecobio microalgae-run mini heat power plants ...... 49 Joint Venture in Pharmaceuticals Production ...... 50 Construction of Cement Plant ...... 51 Creation of an Industrial Complex for Medicine Production ...... 52 Mineral Water and Soft Drinks Production ...... 53 Favourable taxation regime: China-Belarus industrial park ...... 54 Favourable taxation regime: Belarusian High-Tech Park ...... 55 Joint Venture for Production of Railway and Large-size Casting...... 56 Pellet production with ancillary cogeneration at “Ivatsevichdrev” ...... 57 Investment in Biopharmaceuticals Production ...... 58 Equipment for laser surgery manufacture ...... 59 Construction of nitrogen fertilizer complex at "Grodno Azot" OJSC ...... 60 Multiple-Dwelling Residential Development construction ...... 61 Construction of stone-crushing plant with capacity of 4 mln. m3 ...... 62 Favourable conditions for business in Mogilevsky district ...... 63 Construction of plant for wind power stations ...... 64 Establishment of Transport & Logistic Centre ...... 65 Construction of hydroelectric power stations ...... 66 Joint venture for shoe production on the basis of existing enterprise “Luch” ...... 67 Creation of multifunctional centre in the middle of Minsk ...... 68 Production of devices for storing data ...... 69

Estonia Eesti

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

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

Construction of liquefied natural gas terminal

Completion Estonia can now build a regional liquefied natural gas terminal expected in 2019 At the beginning of October 2015, the Finnish government and the Finnish state enterprise Executed by: Gasum announced their waiver of the right to build an LNG terminal in Finland. This means Elering AS that Estonia can now take over construction of the regional terminal. The main part of the Baltic Connector terminal construction, at approx. EUR 100 million, will be covered by the European Union. Oy, Alexela, Vopak E.O.S., Finland will still continue to take part in the construction of the Baltic connector gas pipeline. Tallinna Sadam In mid-October 2015, the Estonian Elering AS and the Finnish Baltic Connector Oy applied AS. to CEF (Connecting Europe Facility) for co-financing.

Value est.: In Estonia, Alexela as well as Vopak E.O.S are interested in building the regional terminal. EUR 500 million Alexela, which is planning to build the terminal in Paldiski, has already applied to the European Union for co-financing. Vopak E.O.S., whose project has been assessed as the most profitable by the European Commission working group, would build the terminal in Muuga harbour.

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Construction of “Gate Tallinn” retail park

Construction A large retail park to be 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 under construction. The site is bordered by Tallinn’s main commuter rail line and has its own railway station. The greater catchment area includes both southern Finland and St. Petersburg.

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Construction of Tallinn prison

Initiated in 2012, A new prison to be constructed near Tallinn. completion expected at the Tallinn prison will be the third regional prison in Estonia along with those in Tartu and end of 2018 Jõhvi, replacing the currently used but amortized Rummu and Tallinn prisons. The prison will have the capacity to accommodate some 1300 prisoners. The closed area of the Executed by: 2 Tallinn prison buildings is 61 100 m gross. Along with Tallinn prison, a new deportation The Prisons Department of the and internment centre will also be built near the prison. Ministry of Cell prison, detention centre, health department. 50 ha land in Rae on the outskirts of Justice; Fund Tallinn, Soodevahe village and Veneküla village. Ehitus OÜ

The prison complex was designed by AS Amhold. Construction will start at the beginning Value est.: of 2016. If construction works proceed as planned, a modern prison complex will be EUR 73.9 million completed by the end of 2018.

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Construction of Peterburi Rd. shopping centre

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

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 by agreements and the surrounding infrastructure is finished. Construction works for the shopping centre began at the end of May 2014. Completion is expected in the fall of 2017.

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Construction of Estonian National Museum

Completion Construction of new building for the Estonian National Museum. expected 2016 In 1998 the Estonian parliament adopted a resolution that recognized the main principles Executed by: of Estonian cultural policy. The resolution envisaged construction of a new building for the Eesti 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 “Memory Field” AS, OÜ Fund project 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). Construction of the building itself is nearing completion. Construction works will now Value est.: continue inside the building. EUR 76 million

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Development of green seaside residences

Completion of Kopli Strand residential area up for development first stage expected in 2018 As a result of a second public tender, this development project was finally sold to Fund Ehitus. The city of Tallinn had been looking for a buyer for eight years. Completion of final stage The aim of the project is to open the urban space in the north-western direction, to expected in 2026 recondition the area by creating a safe high-quality living environment with the required infrastructure and to enliven the city by adding new green areas. The site Executed by: is located on the Kopli peninsula, five kilometres from Tallinn Old Town and the Fund Ehitus city centre. The development project area covers ca 17 ha; the area of the lot with Value est.: effective building rights is 6.6 ha. EUR 55–65 million. The developer is planning to finish the project in 12 years. Construction work will start in 2016. Since the area is divided into six quarters, it will be completed in stages. Completion of the final stage is expected in 2026.

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Kalaranna residential development

Establishment Development of luxury apartment buildings and marina. of detailed plan currently in Kalaranna residential development project, located in the northern borough of Tallinn, progress foresees a series of luxury apartment buildings offering a sumptuous view of Tallinn’s coastline. The location – right next to the sea, Tallinn Old Town and city centre – is Executed by: attractive and enjoys good access by both car and public transport. City Municipality of Tallinn A detailed plan has already been partly established but not fully approved. The project is expected to be developed in one stage and will include a yacht marina. Overall, the Value est.: project is targeted at upscale individual buyers who prefer to live in the proximity of a 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 7802.

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Pärnpuu-Pärnõie residential quarter

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

Value est.: The quarter consists of 14 lots, each with an area of 1 502 m2 to 2 861 m2. Five lots are area divided planned beside the River Sauga, with another nine lots on the other side of the nearest into two lots: motorway. Electricity is connected and a detailed plan has been approved. Pärnpuu (2.12 ha) at EUR 108 649 and Pärnõie (2.45 ha) at EUR 76 693. The entire lot can be purchased for EUR 185 288.

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Sale of Estonian Academy of Art premises

Long-term Premises at the Estonian Academy of Art offered for development. intention, no specific dates A property of 4 540 m2 in Tallinn city centre will definitely provoke interest among indicated developers because very few investment opportunities are left in similar locations. The Estonian Academy of Art has confirmed that the property will be sold. According to a Executed by: property valuation in spring 2013, the real estate was worth EUR 7.1 Million. Estonian Academy of Arts At the beginning of May 2014, the Estonian Academy of Art decided to proceed with a plan to sell its two city centre properties to fund the purchase of new premises. The Value est.: property in Tartu mnt 1/Gonsiori 6 is now being sold with a starting price of EUR 6.9 Approx. million, and the building at Suur-Kloostri 11/Nunne 16 (situated in Tallinn Old Town) with EUR 7.1 million a starting price of EUR 3 million.

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Further Development of Ülemiste City

A new office Ülemiste City, established on the site of the former Dvigatel factory, located in the building to be middle of Tallinn Airport, the eastern branch of the railway and Tartu motorway, completed by continues to evolve. the end of 2015 Over the next 15 years, the business campus will be further developed as a multifunctional city space, which will provide ca 200,000 m2 office space (of which 70 000 Executed by: m2 have been built since), 125 000 m2 apartment space and 125 800 m2 parking space. City Municipality of According to the developers, Ülemiste City can be regarded as an estimated billion euro Tallinn development project. Under the new architectural design approved at the beginning of 2014, over the next 10-15 years Ülemiste City will become a fully-fledged modern quarter Value est.: with integrated business and living environments and public services. Not indicated In 2015, construction will start on the largest office building in Estonia “Öpiku maja” with 44 000 m2 of closed office space.

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Development of largest conference centre in Tallinn

Planned for An opportunity to take part in creating Estonia’s largest conference centre. completion by 2018 Enterprise Estonia (Ettevõtluse Arendamise Sihtasutus) is planning to establish a multifunctional conference and exhibition centre, the largest in Estonia. Research by Executed by: Enterprise Estonia showed several positive sides to Estonia that would attract a Enterprise considerable number of international conferences to Estonia but a centre that would Estonia cover the needs of top-level major conferences is missing.

Value est.: According to the research, building the centre in Tallinn would cost EUR 65 million. The EUR 65 million research recommended building a centre with a plenary hall of 5 000 m2, additional space (incl. and exhibition area of 5 000 m2. The research concluded that the best location would be EUR 20 million Ülemiste City, Linnahall or the area between Noblessner and the Seaplane Harbour. contribution However, entrepreneurs from Saaremaa are lobbying for the centre to be established in from E.E.) Saaremaa. Estonian Investment Corporation OÜ proposed that the conference centre could be built under the roof of 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 state contribution should be.

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Architecture competition for Estonian Academy of Arts

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

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Development of Tondi residential quarter

First building New residential block under construction in the city centre periphery of Tallinn. completed in March 2015 Tondi Quarter is one of the largest residential blocks in the Baltic States, located in Kristiine borough, a residential area in the city centre periphery of Tallinn. Building volume of the Executed by: project will be 144 000 m2 including underground parking ca 28,000 m2. The unique project LAAM foresees impressive red brick buildings smoothly integrated with the modern architecture Kinnisvara that will rise over the hill in the centre of the new block, providing a series of apartment and OÜ, Pro office buildings built on land plots historically occupied by barracks. The location is attractive Kapital Grupp for a residential area: close to the city centre but at a distance from main roads. The AS detailed plan has been established and construction works have started. The project is expected to be developed in five stages. Value est.: ca EUR 108.2 million

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New office building in Tallinn’s Freedom Square

No A new office building with 10 770 m2 of office space in total will be constructed in significant Tallinn’s Freedom Square. dates indicated A work entitled Kawe City won an architectural competition held by real estate company Kawe and Tallinn City Municipality. Kawe City will be a modern office building with Executed by: conservative architectural language, in line with the older architecture of Freedom Square. AS Kawe Group, City At the moment, a detailed plan is under consideration. The architectural competition was Municipality of largely meant to state the volume of the building, but the developers have promised to stick Tallinn to the architecture in the construction phase as well.

Value est.: Not indicated.

www.bnt.eu 19 Development of Admiralty Basin surroundings

First part to Surroundings of the Admiralty basin at the heart of Tallinn will be turned into an be completed outstanding city centre. by fall 2016 Two leading real estate developers, OÜ Capital Mill and Delta-Max Group, are planning to Executed by: invest a total of ca EUR 200 million in the most valuable plots in Tallinn to create 200 000 OÜ Capital m2 of living and business area. Mill; Delta- Max Group Construction of a complex of four different looking buildings with a total cost of EUR 25 million and a total area of 25 000 m2 started in the fall of 2014. The complex, called Value est.: Promenade House, will contain 120 luxury apartments and 4 000 m2 of commercial space at ca. EUR 200 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 m2 and the size of the investment EUR 120–150 million. The developer, Delta-Max Group, is mainly planning to build first class offices but possibly also several luxury rental apartments. Large and small investors are sought for this project. Preparations for construction started in 2015.

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Construction of new office buildings in Tallinn

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

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

3. Kai 1 office building (2016): Capital Mill / Total area: 6 702 m2/ No. of floors: 6/-2

4. Novira Plaza (2016): Novira Capital / Total area: 7 600 m2 / No. of floors: 15/-2

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

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

7. Büroo 83 (2016): Novira Capital / Total area: 4 300 m2 / No of floors: 8

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Construction of submarine railway tunnel (Tallinn – Helsinki)

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

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

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New residential quarter at the Noblessner harbour

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

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

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Construction of tramway track extension to Tallinn airport

Completion By tram from the city centre to the airport expected at the end of Construction of the tramway track extension to Tallinn airport will start at the end of 2015. 2017 Estimated project cost is EUR 11.5 million. As a part of the project, a 100 metre tunnel will be built from the tramway terminal stop to the airport itself. The tramway extension will also Executed by: pass through the planned public transport terminal as well as Ülemiste City. The length of AS Merko the new tramway will be 2 km. Ehitus Eesti KMG Tallinna Linnatranspordi AS (public transportation company owned by the city of Tallinn) Inseneriehituse has already applied for funding from CEF (Connecting Europe Facility). The city of Tallinn AS will finance 15% of the total cost of the project.

Value: EUR 11 Completion of the project is expected at the end of 2017. million

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Sale and reconstruction of Tallinn City Hall (Tallinna Linnahall)

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

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

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

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Major EU financing for Estonia via “Rail Baltica” project

The “Rail Baltica” project opens the way for new construction related public procurement in the Baltic States.

The “Rail Baltica” project aims to lay a new 1435 mm wide European standard railway line across the Baltic States, replacing the old 1520 mm Russian railway line and providing south-north oriented integration into Europe’s railway infrastructure. The track will span 728 km and will link Warsaw-Kaunas-Riga-Tallinn. This modern and environmentally friendly railway will carry passengers at the speed of 170 km/h and cargo at the speed of 68 km/h. A joint venture of the Baltic States, “RB Rail”, has been established to oversee realization of the project. In total the EU has granted EUR 734 million for the whole project. EU financing is estimated to cover 85% of the whole project cost, while the rest will be supplemented by the participant states.

Estonia hosts ca 200 kilometres of the entire Rail Baltic route with a cost appraised around EUR 1.3 billion. During the first call for proposals Estonia applied for EUR 191 million, to be used for detailed design of railway alignment plus environmental and other surveys. These funds enable the start of preliminary construction work on railway embankments, overpasses and other objects required for railway transportation. A substantial role in this project in addition to RB Rail AS will be carried out by the Estonian Technical Surveillance Authority and Rail Baltic Estonia OÜ.

During the second half of 2016 negotiations with current real estate owners are likely to take place, in order to purchase the land necessary for construction. The most likely route passes through ca 750 immovable properties. The property acquisition process is planned to be carried out in 2016—2018. Construction of the railway itself is scheduled to begin by the end of 2018.

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Latvia Latvija

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

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

Construction of Riga Northern Transport Corridor

Construction Renovations and enhancements are being applied to the Pärnu motorway. planned to commence from The Riga Northern Transport Corridor is considered to be Riga’s largest transport 2015 to 2018 infrastructure project in recent decades.

Completion Objectives of the project include diverting traffic from Riga city centre plus improving city expected 2022 centre environmental and living conditions. Construction of the Northern Corridor will connect Riga Freeport to the Trans European (TEN-T) road network, improve the transport Executed by: infrastructure system in Riga and its metropolitan area and increase the city’s growth Municipality of opportunities and international competitiveness. Riga (3 stages); Ministry of According to the Riga and Pieriga Mobility plan, the Northern Corridor is considered a Transport priority project. Implementation of the project will result in a convenient high-speed (final stage) motorway crossing Riga from east to west and bypassing the historic city centre. The overall planned length of the road is 30 km. The western part of the Northern Corridor will Value est.: connect to the Riga bypass at Babite and will lead to the Riga – Jurmala – Ventspils EUR 1.4 billion motorway (junction at Priedaine). The eastern part of the Northern Corridor will connect to the Vidzeme motorway at Bergi. The Northern Corridor will be integrated into the network of Riga’s arterial streets with 9-12 multi-level junctions. The motorway will also cross the 0.4 km wide River Daugava.

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ReconstructionConstruction of ofRail open Baltica-air festival stretch s intage Latvia

Construction Reconstruction of open air stage for the Latvian Song and Dance Festival. commences 2014, completion In mid-2007 Riga City Council announced a new international design competition. expected by The competitors were expected to produce rational, structurally innovative and 2018. acoustically impeccable proposals for transforming the stage which would include a roof with a system of acoustic elements, partial transformation of choir stands, Executed by: transformation of the spectator amphitheatre, construction of new stands in the rear Municipality of part of the amphitheatre and installation of transformable spectator bench systems. Riga An additional requirement was that in the periods between song festivals, the complex should be used for concerts and mass events involving advanced audio Value est.: and video technologies. EUR 28 million At the moment the winner of the international sketch competition for the song and dance festival open air stage reconstruction is Latvian architectural practice SIA Arhitekta J. Pogas Birojs.

The open air stage should be ready for the next song and dance festival in 2018, so that the planned start of reconstruction was 2014.

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The New Hanza City

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

Construction is planned to put into operation a number of building lots by 2033, although construction rates will depend on the situation in the real estate market. According to the authors of the project, the area will contain a number of office buildings, including the A / S "ABLV Bank" building, a four or five-star hotel, a conference centre, shopping gallery and entertainment area. Office buildings will occupy ca 100 000 m2 total area, the commercial and public area 20,000 m2 and the hotel 15 000 m2. The prospective development is located within the protected zone of the Riga historic centre.

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Reconstruction of New Riga Theatre

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

Area: 5 146 m2

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First Hilton Garden Inn in Baltic States

Construction The first Hilton Worldwide representative in the Baltic States will be built in Riga due to finish in and constructed by Latvian company LNK Industries. late spring 2016; Hilton Garden Inn Rīga Valdemarā will be 10 stories high and situated in Pārdaugava, on K.Valdemarā iela . The hotel will offer 138 rooms plus a 24/7 restaurant, bar, gym and Executed by: multi-functional 400 m2 conference room. by “LNK Industries” managed by P.M.G.

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Renovation and development project for Kaļķu Street

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

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Transformation of Daugava Sports Stadium

By investing EUR 47 million, Daugava Sports Stadium will be reconstructed as a Expected start culture and sport event amphitheatre. of reconstruction Daugava Sports stadium will be reconstructed to fit higher quality standards and to 2017 increase the capacity of the amphitheatre. The existing seating is only for 5000. The goal is to make the stadium more attractive for big concerts and national pastime events. Executed by: VSIA Culture The objective of the reconstruction is to make an amphitheatre in Riga centre for high and Daugava profile sports, music and dance events and also the hosting venue for national dance and Sports Centre song festivals. Project planning has just begun and the necessary preparation work for the renovation and EU fund allocation are in implementation stages. Value est.: EUR 47 million

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New logistics centre in Rāmava

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

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

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Major EU financing for Latvia via “Rail Baltica” project

The “Rail Baltica” project opens the way for new construction related public procurement in the Baltic States.

The “Rail Baltica” environmental impact evaluation report has been discussed and accepted at all municipal public hearings. During the period from April to November 2015, cooperation between local government and citizens groups resulted in more specific track location: an approximately 300 metre wide possible railway track location has narrowed to a 60 metre wide corridor. Overall there have been more than 1000 electronic and face to face consultations to ensure the route is suitable for everyone.

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Business incubators will receive EUR 32.8 million

No significant Latvian Investment and Development Agency (LIAA) will provide funding for new dates to indicate regional companies and startups.

Executed by: Investment aims to support creation and development of new and competitive businesses in LIAA Latvia’s regions. LIDA will provide businesses with an entrepreneurial environment plus consultations and advice in general and on specific business matters. Available funding will Value est.: consist of EUR 25.7 million in regional development field and EUR 7.1 million for startups, EUR 32.8 mil. overall a great possibility to start business in Latvia.

www.bnt.eu 37

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.

Modernization of detention facilities

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

www.bnt.eu 39

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: the 2 star “Vyturys” hotel (conference room, health service facilities and rehabilitation centre), the 3 star “Zilvinas” hotel (24 Value est.: rooms, tennis courts, aesthetics and beauty centre), the „Estetic Italia Baltic” aesthetics EUR 6 million. and beauty centre and the “Baltija” rehabilitation centre .

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

The government decided to dispose of the shares in the complex to the Ministry of Economy. The market value of buildings, structure and other assets is ca EUR 6 million. This will be the value of the registered capital of a new company which will restructure the state-owned enterprise.

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

www.bnt.eu 40 Modernization of Lithuanian Zoo in Kaunas

No significant An optimistic future for the unmodernized Lithuanian Zoo. dates indicated The Kaunas City Council has approved a detailed plan for modernization of the city zoo. Executed by: According to the Ministry of Environment, which is the acting manager of the building, Kaunas City this decision opens the way for EUR 11.5 million EU financial support. Council, Ministry of According to the company “Project Training centre”, which performed a feasibility study Environment on the zoo’s modernization, modernization would require an injection of EUR 29 million. The EUR 11.5 million is just for the first step. Value est.: EUR 11.5 million. Kaunas zoo houses some 2020 animals, 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 programme of rare and endangered animals.

Area of zoo: 15.6 ha.

www.bnt.eu 41 Development of Cargo Port in Kaunas

No significant An initiative to revive waterways near Kaunas by installing a new pier at Marvelė. dates indicated This project would be conducted under a concession agreement. The concessionaire Executed by: would be responsible for building infrastructure, repairs and maintenance, mooring Ministry of barges, cargo loading, renting warehouses and other related services. The partnership Transport and would last for up to 25 years. Communications The government has approved an amount of approximately EUR 85 million + VAT as a Value est.: maximum contribution from the state over the concession period. An investment of at EUR 11 million. least EUR 11 million is expected from the private partner.

www.bnt.eu 42 Highway A5 Kaunas-Marijampolė-Suwalki

Procurement Highway A5, part of the “Via Baltica”, connecting the cities of Kaunas, Marijampolė and proceedings Suwalki is in process of reconstruction. anticipated in the third quarter 2016 The project is divided into four parts.

The first and second stages are in progress, while the procurement procedures for the third and Executed by: fourth stages of the project will be initiated in the third quarter 2016, starting with the public Lithuanian road announcement of the technical documentation. administration

www.bnt.eu 43 Reconstruction of the A14 Vilnius – Utena highway

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

Executed by: Lithuanian parliament has approved a PPP project for reconstructing and maintaining Lithuanian road 72.15 km of highway No A14 road that connects the capital city with the city of Utena. administration. The partnership is estimated to last for 10-15 years, reconstruction itself taking place in the period 2016-2019. Value est.: EUR 170 million Built over 80 years ago, highway A14 is one of the worst maintained roads in the country. Reconstruction of the highway is imminent as Vilnius continues to expand in the direction of Utena and car traffic increases.

Lithuanian parliament has confirmed the budget of EUR 170 million (EUR 60 million for the construction and EUR 110 million for the later maintenance.

At the moment the Lithuanian Road Administration under the Ministry of Transport and Communications is in the process of drafting conditions for the procurement. First draft of technical specifications and other documents might be published as soon as this summer.

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Vilnius Multifunctional Complex

Provisional tender Within the next years a new multifunctional health, education, culture and business publication date: support centre complex will be established in North Vilnius. 2016 The following activities will be implemented: Executed by: Central Project 1. Territory cleaning – territory cleaning and preparation for investment, installation of Management engineering network, adjusting the territory for social and commercial activities. Agency 2. Pre-school facility – for 300 children (playgrounds, game arbours, footways, greenery). Estimated investment costs.: 3. Infrastructure for informal education – 3 football pitches, 1 athletics field, 3 basketball Not less than halls,1 handball hall, administrative facilities, hostel facilities for 100 persons. EUR 77million 4. Incubator and facilities for cultural, creative and sports activities.

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

6. Lithuanian Sports Museum – transferring the facility from Kaunas.

7. Infrastructure for public cultural and sporting events – up to 20 000 seats.

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“Lithuanian Airports” seek investors

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

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

www.bnt.eu 46

Major EU financing for Lithuania via “Rail Baltica” project

The “Rail Baltica” project opens the way for new construction related public procurement in the Baltic States.

Construction is under way in Lithuania, with the track from Warsaw to Kaunas already completed and an extension from Kaunas to the Latvian border next in line and expected to be done by 2025. The total length of the line in Lithuania will amount to 264 km. The state has appointed state owned enterprise “Lietuvos Geležinkeliai“ AB to oversee realization of the project in Lithuania. Lithuania’s Ministry of Transport has received a EUR 105.9 million grant directly from the EU in addition to a EUR 25.4 million share from the Baltic States “RB Rail” joint venture.

As construction progresses, the state appointed enterprise “Lietuvos Geležinkeliai” AB is constantly organising public procurement to acquire materials, work and services from private suppliers. This means many opportunities for investment in infrastructure development and construction related procurement.

www.bnt.eu 47

Belarus Беларусь

bnt Minsk office Revolutsionnaya str. 9 - 40, 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]

Manufacturing of ecobio microalgae -run mini heat power plants

Sector: The project is intended to launch manufacturing of ecobio biomass-run (microalgae) mini Biotechnologies heat power plants. It is worth implementing because biomass fuel conversion technology is energy efficient, resource saving and environmentally-friendly. Additionally, one of the main Significant reasons for locating production in Belarus is the availability of highly skilled scientific and dates: engineering personnel.

Executed by: “Great Stone” Industrial Park

Value est.: USD 25 million

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Joint Venture in Pharmaceuticals Production

No significant Opportunity to gain a foothold in the Belorussian pharmaceutical market. dates indicated This 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 a solution for infusion on the basis of RUE for Investment “Belmedpreparaty”. and Privatization of the Republic of Foreign investors’ share will be 75 % and the share of RUE “Belmedpreparaty” 25 %. Belarus (NAIP); RUE Investor preferences include: Belmedpreparaty - developed transport infrastructure (the enterprise is located within 0.5 km from the railway station and 1.5 km from a motorway); Value est.: - developed trademark; EUR 15.3 million - in-depth network of commercial relations; - demand for production on the Belarusian market; - registered licences and patents.

www.bnt.eu 50

Construction of Cement Plant

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

Value est.: EUR 227 million

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Creation of an Industrial Complex for Medicine Production

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

Executed by: This project looks for creation of a new pharmaceutical venture (Greenfield investment) in OJSC the city of Vitebsk for production of drugs and veterinary pharmaceuticals. “BelVitunifarm”; Vitebsk oblast The exact foreign investor share is not yet defined. executive committee. Project preferences include: - developed business plan; Value est.: - production facilities and land plot; EUR 48.6 million - existing network for supply of raw materials; - registered licences and patents.

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Mineral Water and Soft Drinks Production

No significant Construction of soft drinks factory. dates indicated This investment project aims for construction of a soft drinks and mineral water factory and Executed by: incorporation of a joint venture (stock company). Vitebskpischepro m – state union of The factory’s planned yearly revenue is EUR 9.2 million. The pay-back period is 5 years. food industry enterprises in The company will be located in Orshansky region close to the railway station. A land plot Vitebsk region will be assigned. Additional privileges are possible.

Value est.: EUR 18.7 million

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Favourable taxation regime: China-Belarus industrial park

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

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Favourable taxation regime: Belarusian High-Tech Park

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

Executed by: The Belarusian Hi-Tech Park (HTP) provides a favourable business environment for its Hi-Tech Park IT and software development residents. Although HTP is located in Minsk, it is not Administration 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 HTP residents, including such leading companies as EPAM Systems, HTC Belarus, Itransition, Sberbank-Technology.

Residents of the park are granted numerous tax and customs preferences.

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Joint Venture for Production of Railway and Large-size Casting

No significant Joint venture for production of metallurgical products. dates indicated This project involves the manufacture of high-quality rolling stock casting and large-size Executed by: casting mostly for the Belarusian and Customs Union market. OJSC “Belarusian Autoworks” The joint venture will be incorporated in the “Mogilev” free economic zone, 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; - exemption from property tax.

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Pellet production with ancillary cogeneration at “Ivatsevichdrev”

Sector: Forestry … and woodworking industry The European market for pellets is expected to grow from 15 million tons (in 2012) to 38 million tons (in 2025). Significant dates: 2015-2025 In order to ensure these indicators, new pellet production with capacity of some 8 million tons should be established by 2025. Executed by: OJSC Taking into account the profitable geographic location of JSC “Ivatsevichdrev” and “Ivatsevichdrev” predicted significant growth of pellet consumption in EU countries, it makes sense to restructure the wood particle board shop (now closed down) in favour of pellet Value est.: production (the plan is to use only raw materials storage, so that construction of a 55.2 Mln Dollars new production building is required).

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Investment in Biopharmaceuticals Production

No significant An opportunity to establish biopharmaceutical production facilities. dates indicated The project aims at construction of a biopharmaceuticals (e.g. antisera, probiotics) Executed by: production plant. The plant will be located in the Great Stone Industrial Park – a site for a Industrial park favourable tax regime. “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% by 2020, an investment now may provide an excellent high-profit and low-risk opportunity.

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

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Equipment for laser surgery manufacture

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

Executed by: From 2016 a common market for pharmaceuticals and medical equipment will be “Great Stone” introduced within the Eurasian Economic Community so Belarusian companies will Industrial Park obtain easy access to other community members’ markets (in particular, Russia and Kazakhstan). Value est.: The share of domestic production of medical equipment and furniture in Belarus is only EUR 16.5 million 18%; the rest is imported. The estimated payback period is 5 years.

www.bnt.eu 59

Construction of nitrogen fertilizer complex at "Grodno Azot" OJSC

No significant This project aims for construction of a nitrogen fertilizer complex and creation of a joint dates indicated venture on the basis of Open Joint Stock Company “Grodno Azot” (currently 99.9% is in

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

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

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Multiple-Dwelling Residential Development Including Social and Cultural Facilities construction

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

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

Value est.: Land has been assigned for permanent use. EUR 89 million A pre-investment feasibility study has been drafted and the architectural concept of the complex developed. A preliminary geological survey has been carried out.

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

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3 Construction of stone-crushing plant with capacity of 4 mln. m

Sector: Mining Due to current international political and market conditions, consumers in the Russian industry Federation are showing a strong demand for Belarusian crushed rock products, None significant including products from the "Glushkevichi" crushed stone plant. This suggests promising dates indicated; prospects for export growth in nearby regions of the Russian Federation - Bryansk, Smolensk, Kaluga and Moscow. Executed by: Gomelobldorstroy

Value est.: USD 108 million

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Favourable conditions for business in Mogilevsky district

Significant dates: South-eastern regions of Mogilevsky district attract investment by offering additional 1 July 2015 - preferential terms and conditions. 31 December 2020 In the above-mentioned area, an opportunity has arisen to implement investment Executed by: projects which can be partly financed by OAO Development Bank of the Republic of Belarus and public funds. Benefits foreseen include, e.g., taxation preferences, lower OAO Development insurance payments for employers and tax credits. Bank of the

Republic of Potential exists for building new factories or investing in existing factories involved in Belarus; natural resources and agricultural raw materials processing. Mogilevsky oblispolkom; At present, investors from the USA, Germany and Russia are operating successfully in Ministry of Mogilevsky district. architecture and building, etc.

Value est.: -

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Construction of plant for producing and installing wind power stations

No significant This project aims for construction of a plant for production and installation of wind power dates indicated stations within of the “Grodnoinvest” free economic zone. This implies substantial tax advantages for residents. Executed by: Administration of “Grodnoinvest” The plan is to produce all the component and replacement parts for wind power stations as well free economic as to assemble/install them. Organizing the production process requires new production facilities with a total area of 10 000 m. zone

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

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Establishment of Transport & Logistic Centre

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

Executed by: A Transport & Logistic Centre will render comprehensive logistic services to maintain the Administration of processes of delivery, customs clearing, and handling of goods. the “Grodnoinvest” It is planned to establish Transport & Logistic Centre with infrastructure to include the following: free economic  freight and container terminals with road and railway access roads; zone  road freight transport centre;

Value est.:  information and computing centre with technological communication office; EUR 38.3 million  service facilities (parking for trucks and buses; auto service stations; petrol stations; hotel facilities; medical centre; restaurants; shops; communication centre).

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

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Construction of hydroelectric power stations

Projects envisage construction of hydroelectric power stations in the following regions: No significant • Nemnovskaya hydroelectric power station on the Neman river in Grodno region with dates indicated capacity of 20 MW. • Orsha hydroelectric power station on the river Dnieper in Vitebsk region with capacity of Executed by: 5.1 MW. State Unitary • Mogilev hydroelectric power station on the river Dnieper in Mogilev region with capacity Enterprises of 5.1 MW. “Grodnoenergo”, • Shklovskaya hydroelectric power station on the river Dnieper in Mogilev region with “Vitebskenergo”, capacity of 4.9 MW.

“Mogilevenergo”; The Republic of Belarus guarantees the purchase of all energy generated by these hydroelectric Ministry of power stations and will at its own expense construct the power transmission lines required to Energy secure power supply to the Belarusian electric power system. In addition, the Republic of Belarus guarantees payment for energy at preferential tariffs and conclusion of investment agreements Value est.: granting benefits for investors. EUR 26.3 – 125.5 million

www.bnt.eu 66

Joint venture for shoe production on the basis of existing enterprise “Luch”

The project envisages construction of an industrial complex with an annual capacity of 3 No significant million pairs of shoes. dates indicated The plan is to establish a joint venture on the basis of the existing enterprise “Luch”, as well as to Executed by: locate shoemaking companies within the industrial complex forming part of the holding “Luch Minsk Shoes”. shoemaking open joint stock At the present time, a land plot (6 ha) in the “Zapadny” industrial hub in Minsk district has been company “Luch” identified for project implementation. Additionally, the architectural design of the industrial complex and an assessment of investment effectiveness have been developed. – managing

company of the The project includes strategic advantages that will contribute significantly to rapid development holding “Luch and reduction of the payback period. Among them are a strong brand, highly-qualified personnel, Shoes” use of local raw materials plus availability of valid patents, licences and permits.

Value est.: EUR 84.2 million

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Creation of multifunctional centre in the middle of Minsk Creation of multifunctional centre in the middle of Minsk

Implementation of the investment project includes demolition of existing industrial Significant buildings and construction of new commercial real estate objects. dates: Implementation of the investment project includes demolition of existing industrial Significant buildings and construction of new commercial real estate objects. 2012 – 2022 The project envisages construction of the following objects: dates: • office facilities with underground parking – 90,000 sq.m.; 2012 – 2022 The project envisages construction of the following objects: Executed by: • hotel complex with underground parking – 13,000 sq.m.; • office facilities with underground parking – 90,000 sq.m.; Closed joint stock • small sales areas, service, catering and other outlets located on the ground floors of the Executed by: • hotel complex with underground parking – 13,000 sq.m.; company office facilities and in the hotel complex – 4,000 sq.m. Closed joint stock • small sales areas, service, catering and other outlets located on the ground floors of the “HORIZONT- office facilities and in the hotel complex – 4,000 sq.m. The site of 7.1 hectares is located in the central administrative district of Minsk. The site has high company BELINVEST- “HORIZONT- town-planning potential due to good transport communications with other city districts, proximity The site of 7.1 hectares is located in the central administrative district of Minsk. The site has high DEVELOPER” to an underground station plus accessibility to recreation areas in Minsk. BELINVEST- town-planning potential due to good transport communications with other city districts, proximity DEVELOPER” to an underground station plus accessibility to recreation areas in Minsk. Value est.: EUR 282.2 Value est.: million EUR 282.2 million

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Production of devices for storing data

Belarus creates new Devices for Data Storage to meet the increasing demands of the future Significant dates: The aim of the project is to create non-volatile storage devices. Today, the global market is - forecasted to incur a deficit of storage devices. By 2020 consumers will need about 6 ZettaByte of memory for data storage. At the same time the Customs Union countries occupy the leading Executed by: positions in the CIS region by the ICT Development Index (index that takes into account, inter alia, “Great Stone” the number of computers and mobile phones per 100 inhabitants): Russia – 40, Belarus – 41 and Industrial Park Kazakhstan – 48 position (2012 rank). In 2012 for the third time Belarus was one of the 10 economies in the world with the greatest changes in terms of access to and use of ICT. Belarus is the leader among the CIS countries in terms of computer market growth (+56% in 2012 compared Value est.: to 2011). Dollars 50 million