CATALOGUE OF INVESTMENT PROJECTS OF REPUBLIC (YAKUTIA)

YAKUTIA INVESTMENT DEVELOPMENT AGENCY «…Sakha Republic (Yakutia) is the largest region of and one of its richest “natural treasuries”. It goes without saying that stable and dynamic development of Yakutia is of key significance for both the Far Eastern District and the entire Russia...»

President of the Russian Federation Vladimir PUTIN

«…One of the main goals of the Government of Sakha Republic (Yakutia) is ensuring dynamic economic development by the means of creating comfortable conditions for investment and business activity...»

Head of Sakha Republic (Yakutia) Egor BORISOV

2 CONTENTS

Transportation industry 5 Mining and diamond industry 9 Oil and gas industry 13 Agro-industrial complex 17 Tourism 23 IT - industry 29 Power industry and public utilities sector 31 Building industry 35 Light industry 39 Contacts 43

3 Sakha Republic (Yakutia) - is the biggest region of the Russian Federation. Yakutia is a region with high resource and economic potential The capital of the republic is Population: 962 835 Official languages: Russian and Sakha

1) Yakutsk 2) Ust- 3) 4) Megino-Kangalassky District 5) Namsky District 6) Kobyaysky District 7) Tomponsky District 8) Oymyakonsky District 9) Ust-Maysky District 10) 11)

12) 13) Vilyuysky District 14) Zhigansky District 15) 16) Momsky District 17) Aldansky District 18) 19) Olekminsky District 28) Ust-Yansky District 20) Verkhnevilyuysky District 29) Abyisky District 21) 30) Allaikhovsky District 22) 31) 23) Lensky District 32) Srednekolymsky District 24) Mirninksy District 33) 25) Oleneksky District 34) Tattinsky District 26) Anabarsky District 35) Eveno-Bytantaysky national 27) District 4 TRANSPORTATION INDUSTRY

5 CONSTRUCTION OF BRIDGE ACROSS THE RIVER NEAR YAKUTSK

Initiator: Federal Road Agency of the Ministry of Transport of the Russian Federation (Rosavtodor), Government of Sakha Republic (Yakutia)

Total cost USD 1.7B Investments required USD 1.7B Payback period - NPV - IRR -

Discount rate -

Project resume The construction of a bridge across Lena River near Yakutsk with the purpose of organizing a year-round transport link connecting both banks of the Lena River The project is to be implemented on public-private partnership terms

Project’s significance The project is included in the Register of Joint Russian-Chinese Investment Projects The project will connect the largest regional transport infrastructure facilities and will allow to establish new international intermodal transport corridors (Northern Sea Route to Europe, railroads to the Asia-Pacific)

Project parameters - Length of bridge: 5.8 km - Length of access roads: 11.9 km - Land plots are identified for the placement of access roads and the bridge

Project stages Tripartite agreement Concession on the joint agreement Completion of Construction Bridge technical design signing designing commencement commissioning

2 half 2016 1 half 2018 2018 2018 2022

Investor’s involvement level Concessionaire is to design, construct, commission and operate of the bridge Designing and construction period is 4 years from the date of entry into force of the concession agreement Operation period is 8 years starting from the date of commissioning 6 YAKUTIA AIRLINES AIRCRAFT FLEET RENEWAL

Initiator: Yakutia Airlines JSC

Total cost USD 120M Investments required USD 120M Payback period 7 years NPV USD 3.7M IRR 11.0%

Discount rate - Project resume Project involves operations expansion of a functioning air company via acquisition of 5 aircrafts of ВС Boeing 737-800 The route network of the Yakutia Airlines is 115 directions: 18 intra-republica, 49 intraregional, 49 international routes. Yakutia Airlines is the designated carrier from the Russian Federation to South Korea, China, Japan, the USA, the CIS countries, the Czech Republic

Project’s significance Project implementation will ensure development of air route network and transport accessibility in the Far East, sustainable growth of passenger and freight traffic of Yakutia Airlines via fleet renewal and maintenance of necessary level of airworthiness

Project parameters Passenger capacity increase from 688K in 2016 up to 1,400K in 2020 Yakutia Airlines infrastructure: - basing airports – Yakutsk, Moscow (Vnukovo) - aircraft maintenance base in Yakutsk Airport, maintenance line stations in Moscow, Khabarovsk, Krasnodar - offices in more than 10 cities in Russia and abroad Project stages

Investor Aircraft Reaching search procurement the project capacity

2017 2018 2019

Investor’s involvement level - Equity participation up to 49% via purchase of additionally issued shares - Loan financing - Leasing provision

7 CONSTRUCTION OF HIGH TECHNOLOGY SHIPYARD

Initiator: Lena United River Shipping Company JSC, Yakutia Development Corporation

Total cost USD 97.5M Investments required USD 15.2M Payback period 24.1 years NPV - IRR 7,3%

Discount rate -

Project resume High-tech Zhatay Shipyard is created on the basis of reconstruction and modernization of the Zhatay Ship Repair and Shipbuilding Plant. It is a backbone project of the North Yakutia support zone. To implement the project within the State Budget of the Russian Federation «Social and Economic Development of the Arctic Zone of the Russian Federation» 4106.2 million rubles are envisaged

Project’s significance Uninterrupted provision of cargo transportation by inland waterway transport in the Lena basin and the Arctic zone of the Russian Federation (including the Northern delivery) by updating the fleet on the modern high-tech Zhatay Shipyard in cooperation with other shipbuilding and machine building enterprises of the Russian Federation

Project parameters Projected annual production indicators: - building up to 10 river vessels - grading of 6 vessels per year and 432 thousand standard hours of repair and maintenance - scrapping of at least 2 decommissioned ships (1,140 tons of metal scrap)

Project stages Design and estimate documentation Construction Project development commencement commissioning

2017 2018 2021

Investor’s involvement level Participation in the authorized capital of the project company Zhatay Shipyard LLC

8 Conversion rate used here is 59.0 USD/RUB MINING AND DIAMOND INDUSTRY

9 10 DEVELOPMENT OF ALLUVIAL TIN DEPOSIT RUCHEY TIREKHTYAKH

Initiator: Yanolovo JSC

Total cost USD 76.1M Investments required USD 76.1M Payback period 16 years NPV USD 8.1M IRR 15.7%

Discount rate 13.0%

Project resume Development of tin deposit Ruchey Tirekhtyakh in Sakha Republic (Yakutia) is implemented by organization of placer tin mining and tin concentrate production Initiator of the project is the owner of the license for the field No. 04241 valid until 01.05.2040 Target market: Russia, Asia-Pacific countries

Project’s significance The decline in tin production in the South of China and Indonesia coupled with growing global tin consumption creates prerequisites for shortage of raw materials in the market. According to forecasts, the tin deficiency in the global market in the next 5 years can amount to 60 thousand tons. The development of tin-bearing deposits of the Arctic zone will satisfy both domestic and foreign demand

Project parameters The balance reserves are as follows: - category В + С1 – 82,047 tons of tin - category C2 - 5,427 tons of tin Output at the designed capacity of production is projected at 3,000 tons of tin concentrate per year

Project stages Exploration drilling Feasibility Feasibility Investor Project Start of Start of and ifield facilities study study search estimates construction production construction

2015 2016-2017 2016-2017 2018 2018-2023 2019 2023-2025

Investor’s involvement level Purchase of shares in the operator company of JSC Yanolovo (or SPV) up to 75% of the authorized capital

Conversion rate used here is 59.0 USD/RUB 11 CREATION OF JEWELRY AND DIAMOND CUTTING CLUSTER IN SEZ INDUSTRIAL PARK KANGALASSY

Initiator: SAYBM LLC

Total cost USD 12.0M Investments required USD 12.0M Payback period 5 years NPV USD 2.4M IRR 41.0%

Discount rate -

Project resume Project aims to create integrated infrastructure for enterprises in jewelry and diamond cutting industry and to ensure favourable conditions for small and medium business Target markets: the USA, Israel, Japan, Hong Kong, Macao, Russia Investments required for the1 stage - USD 3.5M Investments required for the 2 stage - USD 8.5M

Project’s significance Creation of Jewelry and Diamond Cutting Cluster in Sakha Republic (Yakutia) will allow to consolidate natural resources and human resources and lead to a new prominent development stage of jewelry and diamond cutting industry in the region

Project parameters Land plot of 3.3 ha is available in SEZ Industrial Park KANGALASSY First phase includes construction of building of 1,300 sq.m, equipment procurement, site improvement, construction of parking lots and access roads. Second stage entails construction of a building (total area > 4,000 sq.m.), trade and exhibition center

Project stages Design and estimate Feasibility documentation Investor Project study development search Construction commissioning

2016-2017 2017 2017-2021 2017-2018 Q4 2018

Investor’s involvement level - Strategic investor - Equity participation

12 Conversion rate used here is 59.0 USD/RUB OIL AND GAS INDUSTRY

13 EXPLORATION AND COMMERCIAL DEVELOPMENT OF THE ZAPADNO-ANABARSKY LICENSE BLOCK

Initiator: Tuimaada-Neft Oil Company JSC

Total cost USD 6.2B Investments required USD 6.2B Payback period 11 years NPV USD 2.2B IRR 24.4%

Discount rate 10.0%

Project resume Project’s purpose is cost-effective development and large-scale oil and gas production in Zapadno-Anabarsky license block in Sakha Republic (Yakutia) The target markets: Russia, Europe and the Asia-Pacific

Project’s significance The project is among the large-scale oil and gas projects associated with the development of the Arctic territories of Russia. Outstanding volumes of oil and gas resources of Sakha Republic (Yakutia) create favorable forecasts for the oil production and refining industry of the Russian Federation

Project parameters Forecast resources of D1 + D2 category: oil - 256.3 million tons (recoverable) gas - 495.3 billion m3 Annual production: oil - 12.0 million tons natural gas - 10.0 billion m3 gas condensate - 114 thousand tons Project stages Exploration drilling Feasibility Investor Geological Geological and field facilities study search study exploration construction

2011 2017 2016-2022 2020-2023 2023-2025 Investor’s involvement level - Project financing via joint venture - Loan financing - Provision of leasing

14 Conversion rate used here is 59.0 USD/RUB INDUSTRIAL COMPLEX FOR HYDROCARBON PROCESSING IN

Initiator: Tuimaada-Neft Oil Company JSC

Total cost USD 1.65B Investments required USD 1.65B Payback period 8 years NPV USD 0.5B IRR 15.3%

Discount rate 10.0%

Project resume Construction of oil refinery to meet demand of Sakha Republic (Yakutia) in petroleum products. Demand for petroleum products in the republic is estimated at 850K tons with possible increase up to 1,200K tons Construction of engineering infrastructure necessary for project implementation requires state support

Project’s significance Construction of hydrocarbon processing complex will allow to reduce petroleum products costs and transportation expenses related to fuel delivery into central and northern parts of Sakha Republic (Yakutia) Number of jobs created: 970

Project parameters Annual capacity – 2M tons of oil Oil refinery annual production: diesel fuel – 915 tons, motor oil – 540K tons, jet fuel JET-A (ТС-1), bitumen, boiler fuel, marine fuel, liquefied gas C3-C4, fuel gas, and sulfur Land plot for Industrial Complex construction is available. Thermal power station and water intake facilities construction is necessary

Project stages Signing of Investor search, Feasibilty Declaration study, design and estimate of Intent documentation development Construction Commissioning

2013 2017-2018 2018-2019 2020 Investor’s involvement level - Loam financing

Conversion rate used here is 59.0 USD/RUB 15 DEVELOPMENT OF OIL AND GAS FIELDS OF GDK -GAZ LLC

Initiator: Sakhatransneftegaz JSC

Total cost USD 355.9M Investments required USD 211.9M Payback period 9 years NPV USD 608.5M IRR 15.0%

Discount rate 10.0%

Project resume Development of Otradinskoe, Ulugurskiy and Ergedjeiskiy lisence blocks for hydrocarbon production. Project’s initiator holds licenses for development of the mentioned blocks. Target markets: Sakha Republic (Yakutia), Far Eastern Federal District, Europe, Asia-Pacific

Project’s significance The project is among oil and gas projects associated with the development of the Arctic territories of Russia. Outstanding volumes of oil and gas resources of Sakha Republic (Yakutia) create favorable forecasts for the oil and gas production and refining industry of the Russian Federation

Project parameters Annual gas production: - initial capacity in 2021 – 1.2B m3 - maximum capacity – 3.6B m3 Land plots, necessary infrastructure and integrated gas processing facility are available

Project stages

Investor Geological Commercial Gas search exploration development exports

2017 2018-2019 2019-2021 From 2021 Investor’s involvement level I stage (current) – co-financing of geological exploration II stage – equity participation in GDK Lensk-gaz LLC with controlling stake in order to finance industrial development of gas deposits. Priority right to acquire the shares is granted to the investor of the I stage

16 Conversion rate used here is 59.0 USD/RUB AGRO-INDUSTRIAL COMPLEX

17 18 CONSTRUCTION OF A YEAR-ROUND GREENHOUSE COMPLEX IN SYRDAKH, YAKUTSK DISTRICT

Initiator: Sayuri LLC, Yakutsk City Administration

Total cost USD 20.6M Investments required USD 18.1M Payback period 5.4 years NPV USD 1.7M IRR 14.0%

Discount rate 11.0%

Project resume Project’s purpose is ensuring year-round supply of affordably priced fresh vegetables and greens. Project is to be partially financed under the program of Russian Federation’s Ministry of Agriculture. The project is also included in the Russian Federation’s state program ‘Socio- economic development of the Far East and the Baikal region’

Project’s significance In the framework of Russian Government’s policy on import substitution, the protected cultivation of vegetables is one of the priorities for agricultural development in the Russian Federation. This greenhouse is the world’s first project realized in the extreme north and permafrost conditions. Project implementation will allow scaling the developed greenhouse model in territories with similar climate conditions Project parameters Annual production volume from 2020: 1,649 tons of cucumber, 393 tons of tomatoes, 46 tons of herbs Target market is the population of Yakutsk and nearby areas (more than 450 thousand people). Projected market coverage starting from 2020 is 50% Subleased land of 8.2 ha in the Syrdakh, Yakutsk District is available Useful area of greenhouse complex is 3 ha

Project stages Design and estimate Reaching Implementation of documentation Construction Construction the design Phase 1 development of Phase 2 of Phase 3 capacity

2016 2017 2017-2022 2019 2020 Investor’s involvement level For the 1st stage of the project - participation in equity with controlling stake For the 2-3 stages - loan financing, leasing provision

19 Conversion rate used here is 59.0 USD/RUB POKROVSKY AGRO-INDUSTRIAL PARK

Initiator: Yakutia Development Corporation JSC, Administration of Khangalassky Ulus

Total cost USD 71.8M Investments required USD 16.9M Payback period - NPV - IRR -

Discount rate -

Project resume Pokrovsky Agro-industrial Park will be located in Khangalassky ulus of Sakha Republic (Yakutia), 45 km from Yakutsk The first phase entails construction of a year-round greenhouse complex with total area of 2 ha designed for vegetables and herbs cultivation to meet demands of Central Yakutia. Construction of other major facilities is planned to be implemented in the second stage

Project’s significance When the project is implemented, it will be possible to provide the population of Yakutsk and nearby areas with fresh quality vegetables - tomatoes, cucumbers and greens (leaf salads, dill, parsley and others) all year round The territory of Pokrovsky AIP is supposed to be included in Khangalassy ASEZ

Project parameters Land plot total area is 309 ha. Highway of regional significance, gas and energy supply network are in close proximity to the land plot

Project stages Memorandum Draft of Cooperation Feasibility of Development for Greenhouse study, Greenhouse Vision Construction project design construction

2017 2017 2017 2019

Investor’s involvement level - Strategic investor - Equity participation - Loan financing

20 Conversion rate used here is 59.0 USD/RUB CONSTRUCTION OF THE 2ND PHASE OF SAISARY AGRICULTURAL MARKET IN YAKUTSK

Initiator: Saisary JSC

Total cost USD 12.1M Investments required USD 3.4M Payback period 7 years NPV USD 0.2M IRR 16.9%

Discount rate 16.0%

Project resume Project entails expansion of an existing agricultural market with the purpose of creation of logistics center with facilities for acceptance, processing, packaging and pre-sale preparation of agricultural products

Project’s significance Saysary Agricultural Market is the major space for trading agricultural products in Sakha Republic (Yakutia)

Project parameters The center will be in a 4-storey building with total area of 11,605.3 sq.m including: shopping area, agricultural market – 7,762.1 sq.m exhibition and dining area – 1,703.5 sq.m

Project stages

Feasibility study, project Investor Construction design and estimate search commencement Commissioning

2015 2017 2018 2019

Investor’s involvement level - Equity participation, non-controlling stake - Loan financing

Conversion rate used here is 59.0 USD/RUB 21 CREATION OF MODERN TRADE AND LOGISTICS CENTER FOR INTEGRATED PROCESSING OF GOODS FLOWS IN YAKUTSK

Initiator: Yakutsk City Administration

Total cost USD 11.2M Investments required USD 11.2M Payback period 67 months NPV USD 2.9M IRR 21.9%

Discount rate 15.0%

Project resume Project is designed for integrated management of storage, processing and pre-sale preparation of vegetables, wholesale and retail sales Target market: Yakutsk

Project’s significance Development of urban infrastructure and creation of comfortable environment for city residents

Project parameters Land plot for construction is 4.3 ha Land plot is located on 9th km of Khatyng-Yuryakhskoe highway, Yakutsk, and partially built up by other constructions

Project stages

Design and estimate Feasibility Investor documentation Construction study search development commencement Commissioning

2017 2017 2017 2017-2018 2018-2019

Investor’s involvement level - Loan financing - Leasing provision

22 Conversion rate used here is 59.0 USD/RUB TOURISM

23 NORTHERN MOSAIC TOURISM & RECREATION CLUSTER

Initiator: Ministry of Investment and Enterprise of Sakha Republic (Yakutia), Yakutia Center for Cluster Development JSC Total cost USD 20.6M Investments required USD 6.3M Payback period 4 years NPV USD 24.8M IRR 28.0%

Discount rate 8.0%

Project resume Creation of a tourist-recreational cluster project as a base for sustainable development of domestic tourism in the Sakha Republic (Yakutia). The project is included in Federal Targeted Program ‘Development of domestic and inbound tourism in the Russian Federation (2011 – 2018)’. 15 investors are currently implementing their projects in Northern Mosaic Tourism & Recreation Center

Project’s significance Project implementation will facilitate and create infrastructure for development of tourism industry in Sakha Republic (Yakutia) via enhancing the range and increasing quality of services provided to domestic and foreign tourists

Project parameters Land plot of 49 ha is available Necessary infrastructure (roads, power supply, gas supply, etc.) has been created The project implementation is expected to increase the tourist flow into Sakha Republic up to 196 thousand people per year

Project stages Engineering and transport Tourist Reaching Project infrastructure facilities the design commencemen construction construction capacity

2012 2012-2017 2016-2018 2019

Investor’s involvement level - Implementing tourism-related projects in the cluster - Financing initiators of tourism-related projects in the cluster

24 Conversion rate used here is 59.0 USD/RUB ORTO DOYDU TOURISM & RECREATION CLUSTER

Initiator: Administration of Khangalasskiy municipal district

Total cost USD 22.3M Investments required USD 15.6M Payback period - NPV - IRR -

Discount rate -

Project resume Formation and development of tourism facilities in the Orto Doydu cluster via: - further development of existing tourist facilities - creation of supporting infrastructure - creation of tourist facilities complex

Project’s significance Project implementation will facilitate and create infrastructure for development of tourism industry in Sakha Republic (Yakutia) via enhancing the range and increasing quality of services provided to domestic and foreign tourists

Project parameters The existing tourist facilities include the Orto Doydu Zoo, the sports and entertainment complex Tekhtur, the cultural and ethnographic complex Orto Doydu The project implementation is expected to increase the tourist flow into Sakha Republic up to 255 thousand people per year

Project stages

Design and estimate Feasibility Investor documentation Construction study search development commencement Commissioning

2017 2017 2015-2017 2018-2023 2023-2025

Investor’s involvement level - Implementing tourism-related projects in the cluster - Financing initiators of tourism-related projects in the cluster

Conversion rate used here is 59.0 USD/RUB 25 CREATION OF TOURIST RESORTS IN NATURAL PARK

Initiator: Lena Pillars Natural Park

Total cost USD 2.7M Investments required USD 2.7M Payback period 7 years NPV USD 0.1M IRR 20.3%

Discount rate 18.0%

Project resume Project entails construction of accommodation and recreation facilities in tourist bases Ust- and Verkhniy Bestyakh in Lena Pillars National Park. Creation of a highly comfortable tourist resort will allow guests to fully enjoy the park

Project’s significance Lena Pillars Nature Park has been inscribed on the UNESCO’s World Heritage List. Unique landscape coupled with pristine nature make Lena Pillars one of the major tourist destinations in Sakha Republic (Yakutia)

Project parameters Total area of Lena Pillars national Park is 1,353K ha, the park consists of two subsidiaries - Pillars (1,272K ha) and Sinsky (961K ha) Lena Pillars is annually visited by 10K - 12K tourists while the National Park capacity allows for 35K tourists annually

Project stages

Feasibility Investor study search Construction Commissioning

2015 2017 2018 2020

Investor’s involvement level - Equity participation (non-controlling stake) - Loan financing

26 Conversion rate used here is 59.0 USD/RUB CREATION OF ABALAKH RECREATION AND HEALTH CENTER

Initiator: Ministry of Investment and Enterprise of Sakha Republic (Yakutia)

Total cost USD 22.8M Investments required USD 20.8M Payback period 7 years NPV USD 20.8M IRR 19.5%

Discount rate 15.0%

Project resume Project entails construction of Recreation and Health Center that provides wide range of recreational, balneological and mud therapy services using natural healing properties of Abalakh Lake

Project’s significance Abalakh Lake has natural therapeutic properties of rare genesis. The main natural healing factors are sulphide mud and chloride-hydrocarbonate sodium brine which are used for the treatment and prevention of many illnesses

Project parameters The center consists of a hotel with 60 beds, 2 wards with 120 beds, mud therapy units, entertainment center, sport facilities and ancillary facilities Land plot is available. Construction of water facilities, heating system, roads and pathways is necessary

Project stages

Feasibility Пnvestor study search Construction Commissioning

2015 2017 2018 2020

Investor’s involvement level - Equity participation with non-controlling stake - Loan financing

Conversion rate used here is 59.0 USD/RUB 27 CONSTRUCTION OF 4-STAR HOTEL COMPLEX WITH 150 ROOMS IN YAKUTSK

Initiator: Ministry of Investment and Enterprise of Sakha Republic (Yakutia)

Total cost USD 17.1M Investments required USD 17.1M Payback period 9.5 years NPV USD 0.6M IRR 16.0%

Discount rate 15.0%

Project resume Construction of a 4-star hotel in order to meet the growing demand for comfortable accommodation and high-quality services in Yakutsk

Project’s significance The project will contribute to the development of HoReCa sector in Sakha Republic (Yakutia). The tourist flow into the Yakutsk is increasing due to new international and national events held in the city and the region

Project parameters - Hotel complex - 8 floors building with total area of 6,754 m2 - Land plot of 2,141 m2 is located at 15 Kirova Street, Yakutsk, in the zone of multifunctional public and business buildings in the central part of Yakutsk. In walking distance there are: central square, Government buildings, Tuimaada Mall, public transport stops

Project stages

Design and estimate Feasibility Investor documentation Construction study search development commencement Commissioning

2017 2017 2017 2018 2020

Investor’s involvement level - Project financing via participation in the authorized capital - Provision of credit funds

28 Conversion rate used here is 59.0 USD/RUB IT - INDUSTRY

29 CREATION OF A DATA PROCESSING CENTER ON THE PERMAFROST IN YAKUTSK

Initiator: Yakutsk City Administration

Total cost USD 8.6M Investments required USD 8.6M Payback period 6 years NPV USD 2.4M IRR 17.6%

Discount rate 9.3%

Project resume Creation of a commercial data processing center (Data Center) aimed at providing a high- performance and fault-tolerant information infrastructure for the needs of corporate and private clients

Project’s significance Project will elevate status of Sakha Republic (Yakutia) in the field of innovative development satisfying the growing demand for data center services in the IT market

Project parameters Services include providing space for equipment colocation, telecommunications and IT infrastructure colocation, renting disk space on the data center equipment, outsourcing information systems, maintenance and software administration, etc. Necessary infrastructure and land plot are available

Project stages

Design and estimate Feasibility Investor documentation Construction study search development commencement Commissioning

2017 2017 2017 2018-2019 2020

Investor’s involvement level - Loan financing - Leasing provision

30 Conversion rate used here is 59.0 USD/RUB POWER INDUSTRY AND PUBLIC UTILITIES SECTOR

31 WATER FACILITIES RECONSTRUCTION IN YAKUTSK

Initiator: Vodokanal JSC

Total cost USD 86.4M Investments required USD 42.4M Payback period 9 years NPV - IRR -

Discount rate -

Project resume Project’s objective is provision of Yakutsk population with drinking water that meets the safety and security requirements via water facilities reconstruction and modernization

Project’s significance Project implementation will result in: - improved quality and reliability of drinking water supply services in Yakutsk and adjacent settlements - reduced health risks associated with water quality - decreased contamination of the Lena River, a source of household and drinking water supply, due to better treatment of waste water

Project parameters Increase of water intake capacity in Yakutsk from 110 thousand m3 per day Project’s implementation is in progress

Project stages

Signing Additional Commissioning EBRD Loan Construction financing Integrated Agreement commencement attraction Investment Project

2013 2015 2017 2018

Investor’s involvement level Loan financing

32 Conversion rate used here is 59.0 USD/RUB TARYNSKY INTEGRATED PROJECT. STAGE 2: CREATION OF POWER AND TRANSPORT INFRASTRUCTURE

Initiator: Government of Sakha Republic (Yakutia), Yakutia Development Corporation, TZRK JSC and Boguslavets LLC Total cost USD 55.8M Investments required USD 53.2M Payback period - NPV - IRR -

Discount rate -

Project resume Construction of ‘Artyk-Drazhniy’ 110 kV HV line with ‘Drazhniy’ substation, ‘Drazhniy- Oymyakon-Kuydusun (Tomtor), Orto-Balagan, Yuchyugei’ 35 kV HV line in order to: - provide necessary infrastructure for enhanced development of gold deposits within Tarynskoe ore field - to provide centralized power supply to rural communities in the south of Oymyakonsky Project’s significance The project will ensure replacement of diesel generation and reduction of cross subsidization in the power industry of Yakutia, expansion of facilities at gold deposits in Tarynskoe ore field and create the prospect of establishing a single center for the processing of complex ores and concentrates of refractory ores

Project parameters - Growth of power consumption at mining facilities of the Taryn ore field from 9 MW to 20 MW - Power consumption of Oymyakonsky district communities will grow to 4.3 MW

Project stages

Investor search Design and estimate Business plan documentation Construction of Project Feasibility study development development HV lines commissioning

2016 2017 2018 2019-2020 2020

Investor’s involvement level Loan financing

Conversion rate used here is 59.0 USD/RUB 33 INTEGRATED INVESTMENT PROJECT OF PROVIDING POWER SUPPLY TO GROUP DISTRICTS AND NAKYN DEPOSIT OF ALROSA PJSC

Initiator: Government of Sakha Republic (Yakutia), Yakutia Development Corporation, ALROSA PJSC, DVEUK JSC Total cost USD 179.8M Investments required USD 154.6M Payback period - NPV - IRR -

Discount rate -

Project resume Construction of two high-voltage electrical transmission lines in order to ensure uninterrupted power supply to consumers in communities of Vilyuy group districts of Sakha Republic (Yakutia) and to facilities of Mining and Processing Plant (NMPP) of ALROSA PJSC: ‘-Nyurba-Nakyn’ 220kV HV lines with 200kV ‘Nyurba’ and ‘Nakyn’ substations

Project’s significance Project implementations will result in effective use of excessive power production of HPP cascade on the Vilyuy River and provision of uninterrupted power supply to a local population exceeding 104 thousand people

Project parameters Connection to the centralized power supply for a total capacity of about 40 MW (Vilyuy group districts) Centralized electricity supply to NMPP s facilities for a capacity of 30 MW

Project stages

Agreement signing Design and estimate Road map Feasibility documentation Construction Project development study development of HV lines commissioning

2016 2017 2018 2019-2021 2021

Investor’s involvement level Loan financing

34 Conversion rate used here is 59.0 USD/RUB BUILDING INDUSTRY

35 36 CONSTRUCTION OF MULTIFUNCTIONAL COMPLEX IN 203 DISTRICT OF YAKUTSK

Initiator: Almazergienbank JSC

Total cost USD 125.4M Investments required USD 125.4M Payback period 4 years NPV USD 149.2M IRR 47%

Discount rate -

Project resume Construction of a multifunctional complex in 203 district of Yakutsk consisting of a business center, a hotel and a bank

Project’s significance Due to steadily growing population, the positioning of Yakutsk as the venue for international sports competitions, considering the expanding business relations and the creation of new industries in the city, there is a growing need for multifunctional complex

Project parameters Necessary infrastructure and a land plot are available Building height: 18 floors Market coverage: residents and visitors of Yakutsk

Project stages

Design and estimate Feasibility Investor documentation Construction study search development commencement Commissioning

2017 2017 2017 2019 2020

Investor’s involvement level - Strategic investor - Participation in equity with/without controlling stake - Loan financing

Conversion rate used here is 59.0 USD/RUB 37 COMPLEX DEVELOPMENT OF THE 47TH BLOCK OF YAKUTSK

Initiator: Yakutsk City Administration

Total cost USD 66.1M Investments required USD 66.1M Payback period - NPV - IRR -

Discount rate -

Project resume Construction of apartment buildings in the 47th block of Yakutsk

Project’s significance The project provides for resettlement from residential buildings with a total area of 2,891 sq.m

Project parameters Total housing area is 45.6 thousand sq.m Necessary infrastructure is available Land plot of 12.85 hectares is available

Project stages

Design and estimate Feasibility Investor documentation Construction study search development commencement Commissioning

2018 2018 2018 2018-2019 2020

Investor’s involvement level Loan financing

38 Conversion rate used here is 59.0 USD/RUB LIGHT INDUSTRY

39 MODERNIZATION OF LEATHER AND FUR PRODUCTION

Initiator: FAC Sakhabult JSC

Total cost USD 12.3M Investments required USD 8M Payback period 11 years NPV USD 1.3M IRR 19.0%

Discount rate 15.0%

Project resume The project entails acquisition and installation of new technological equipment, raw materials for new production, renovation of industrial premises and engineering infrastructure for the existing leather, footwear and fur production in order to improve its operating performance

Project’s significance Project implementation will lead to greening of leather production by introducing chromeless tanning methods, development of waste-free technological processes, expansion of leather types assortment (including automotive, furniture, decorative leathers)for production of leather goods and footwear, further integration and cooperation with consumer industries, development of Russian footwear production industry Project parameters Land plot and production facilities are available The product range includes upper fur garment, leather and fur footwear, special-purpose clothes, leather goods and souvenirs, leather for haberdashery and clothing, deer suede

Project stages

Feasibility Equipment Premises Project study procurement renovation commissioning

Q2 2017 Q4 2017 Q2 2018 Q2 2018

Investor’s involvement level - Strategic investor - Loan financing

40 Conversion rate used here is 59.0 USD/RUB FOR NOTES

41 FOR NOTES

42 YAKUTIA INVESTMENT DEVELOPMENT AGENCY

510 office, Building 2, 4 Lenina Prospect Yakutsk, Sakha Republic (Yakutia), Russia, 677000 +7 (4112) 42 32 99 +7 (4112) 39 83 00 ext. 67905 Investment Projects Promotion Depertment: +7 (4112) 39 83 00 ext. 67903 mail: [email protected] www.investyakutia.com

Ministry of Investment and Enterprise of Sakha Republic (Yakutia)

2 floor, Building 2, 4 Lenina Prospect Yakutsk, Sakha Republic (Yakutia), Russia, 677000 +7 (4112) 42 13 27 mail: [email protected] www.mininvest.sakha.gov.ru

43