MURMANSK INVESTMENT PROJECTS – 45 projects 1. Murmansk – a comfortable place to live 1.1. 1.2. Urban development and housing policy – 3 projects Development of municipal infrastructure - 16 projects (6 companies) 2. Murmansk – a transport and logistics hub 2.1. 2.2. Transport – 3 projects Offshore development support – 2 projects 3. Murmansk – a business capital of the High North 3.1. 3.2. 3.3. Trade, logistics, trade fairs – 6 projects Tourism – 2 projects Agriculture – 1 project 4. Murmansk – a fisheries capital of the High North Fisheries – 7 projects 5. Murmansk – a place for the development of human potential Social projects – 5 projects Investment sites 2 MURMANSK INVESTMENT PROJECTS URBAN DEVELOPMENT AND HOUSING POLICY Investment project Conversion of unfinished policlinics building into a block of flats with retail and office space at Askoldovtsev street in Murmansk Project owner: Murmansk municipal unitary enterprise Agentstvo Murmannedvizhimost (Municipal Real Estate Agency) Address: 183038, Murmansk, Lenin Av. 87 Head: Alexander Istratov Phone/fax: +7 (8152) 45-05-16, e-mail: amn-murmansk@mail.ru Project manager: Alexei Murkin Phone/fax: +7 (8152) 45-05-16, e-mail: amn-murmansk@mail.ru Short description, goals and objectives of the project: The project aims at the conversion of an unfinished building of a polyclinic into a block of flats with retail and office space on Askoldovtsev street in Murmansk. Living space – 6443.43m2, commercial space – 575.42m2, retail space – 865.08m2. Duration: 05.2011-09.2012. Current status of the project: expert review of design estimate documentation, site preparation. Total investment: RUR272m, including RUR62m in disbursed investment Payback period: 5 years Expected results: The flats will be used to relocate residents from hazardous buildings. Some of the flats will also be given to orphans. An additional effect of the project will be the improvement of 9122.87m2 area. Investment project Construction of a comfort class housing compound on Ponomareva street in Murmansk Project owner: Open Joint-Stock Company PLAZAGROUP Address: 183034, Murmansk, Promishlennaya str. 19, Greenwich Business Centre, suite 210 Head: Yuri Makarenko Phone: +7 (8152) 211-001; fax: +7 (8152) 211-004; e-mail: jsc@plazagroup.ru Project manager: Yuri Makarenko Phone: +7 (8152) 211-001; fax: +7 (8152) 211-004; e-mail: jsc @plazagroup.ru Short description, goals and objectives of the project: 3 OAO PLAZAGROUP plans to build a comfort-class housing complex to meet the market demand for high quality housing. The design is based on modern trends in residential development and aims to offer maximum comfort and a balanced environment. The conceptual design of the complex is based on the results of local market research and takes into account the local expectations of the characteristics and price of apartments. The land plot is situated on Pomomareva street in Oktyabrskiy administrative district of the Murmansk. A modern 14-storey residential building will be divided in four sections with independent entrances. The sections will be of similar design offering functional planning and possibilities for internal remodeling. The ground floor will be occupied by office space. The compound will have its own secured area, a parking lot for 115 cars, well-developed infrastructure and auxiliary premises (a small hotel for guests, common storage facilities, a children’s playroom, etc). Thanks to optimum zoning the tenants and guests will enjoy maximum comfort and security. The innovative design concept guarantees the tenants a high quality living environment. Duration: 2.5 years Current status of the project: land title secured, a pre-design offer developed, geological and geodetic surveys made. Total investment: RUR550m, including - Disbursed investment (own funds and loans): RUR66m, - Outside investment required: RUR484m. Payback period: 1.5 years. Expected results: Details of the property: Land area: 6,675m2; Built-up area: 2,245m2; Gross floor area: 17,745m2; Total apartment space: 12,759m2; Living space (area of rooms): 7,087m2; Number of one-room apartments: 70; Number of two-room apartments: 98; Number of three-room apartments: 56; Commercial and service space (ground floor): 1,739m2; Number of inhabitants (estimate): 445; Number of floors: 14; Parking: outdoor parking lot for 115 cars; Social benefits of the project: Over 150 jobs will be created in the course of the project. Over 200 families will be able to improve their living conditions. Investment project Construction of a seven-storey office building in the centre of Murmansk Project owner: Limited Liability Company NDV Kom Address: 183038, Murmansk, Chelyuskintsev Str. 27 Head: Ruslan Samonkin 4 Phone/fax: (8152) 42-45-20 Project manager: Alexander Bocharov Phone/fax: (8152) 42-45-20; e-mail: bav@insar.net Short description, goals and objectives of the project: The projects aims at building a seven-storey office centre in the centre of Murmansk. - Total floor area: ~7500m2; - Central heating with individual regulation in each room; - Supply and exhaust ventilation with filtration and temperature and humidity regulation offering enhanced comfort throughout the building; - Automatic fire alarm system; - CCTV; - Ample parking space (more than 10,000m2); - Open Space planning. Total investment: RUR280m. Current status of the project: land allotted, detailed design 80% ready. 5 DEVELOPMENT OF MUNICIPAL INFRASTRUCTURE Investment projects of Murmanskvodokanal (the Murmansk water supply and sewage utility) for the upgrade of waterlines Project owner: State regional unitary enterprise Murmanskvodokanal (the Murmansk water supply and sewage utility) Address: 183038, Murmansk, Dzerzhinskogo str, 9 Head: Mikhail Egorin Phone: +7 (8152) 21-37-01, fax +7 (8152) 47-28-98; e-mail: office@murman-voda.ru Project manager: Alla Istomina Phone: +7 (8152) 21-37-04; fax: +7 (8152) 47-28-98; e-mail: office@murman-voda.ru 1. Renovation of the Kola-Murmansk waterline from pumping station No. 2 to Murmansk Short description, goals and objectives of the project: The implementation of the project will ensure uninterrupted water supply of Murmansk. The project aims at building a 4774-meter-long waterline divided in sections of 1,000mm in diameter (4731m) and 800mm in diameter (43m). Low density polyethylene will be used. The capacity of waterline will be 5,800m3/day with a maximum head of 1.6 MPa. The main goal is to improve stability and reliability of water supply in Murmansk. Duration: 2011-2012. Current status of the project: construction. Total investment: RUR261.9m, including - Disbursed investment – RUR10.6m, - Outside investment required – RUR251.3m Sources of financing: - RUR10.6m – own funds, - RUR12.6m – Murmansk regional budget, - RUR238.7m – federal budget. Payback period projects: 10+ years Expected results: The implementation of the project will enhance the stability and reliability of water supply in Murmansk and reduce losses of water. 2. Upgrade of the Kola river waterline No. 1 in Murmansk, Phase 1. Short description, goals and objectives of the project: The project aims at ensuring uninterrupted water supply of Murmansk. The project envisions construction of a 1604-meter-long waterline with expanding its diameter from 800mm to 1000mm and connecting it to the upgraded sections near Kildinskoe shosse and the southern entrance of Murmansk. The capacity of the waterline is 116,000 m3/day with a maximum head of 1 MPa. Duration: 2011 Current status of the project: construction. Total investment: RUR85.9m, including - Disbursed investment – RUR2.9m; 6 - Outside investment required – RUR83m. Sources of financing: - RUR2.9m – own funds, - RUR4.2m – Murmansk regional budget - RUR78.8m – federal budget. Payback period projects: 10+ years Expected results: The implementation of the project will increase the sustainability and reliability of water supply in Murmansk and reduce losses of water. 7 Investment project Expansion and upgrade of the sewage system (Phase 1) in Murmansk Project owner: State regional unitary enterprise Murmanskvodokanal (the Murmansk water supply and sewage utility) Address: 183038, Murmansk, Dzerzhinskogo str, 9 Head: Mikhail Egorin Phone: +7 (8152) 21-37-01, fax +7 (8152) 47-28-98; e-mail: office@murman-voda.ru Project manager: Alla Istomina Phone: +7 (8152) 21-37-04; fax: +7 (8152) 47-28-98; e-mail: office@murman-voda.ru Short description, goals and objectives of the project: The project aims at mechanical treatment of sewage from the central part of Murmansk at the existing sewage treatment plant. Connecting the central sewage outlet in Murmansk to the existing sewage treatment plant will help treat 15.5m m3 of sewage. The project envisions construction of a base pumping station with a capacity of 100,000 m3 a day. The implementation of the project will reduce the environmental impact on the Kola Bay by 492,000 tonnes of organic substances and 937,000 tonnes of suspended solids per year. Duration: 2010-2015 Current status of the project: construction Total investment: RUR364.1m Sources of financing: - RUR2.5m – own funds, - RUR247.5m – Murmansk regional budget, - RUR114.1m – to be determined. Payback period projects: 10+ years Expected results: Reduced environmental impact on the Kola Bay by 579,000 tonnes of organic substances and 492,000 tonnes of suspended solids per year. 8 Investment project Construction of a sewage treatment plant in the southern part of Murmansk Project owner: State regional unitary enterprise Murmanskvodokanal (the Murmansk water supply and sewage utility) Address: 183038, Murmansk, Dzerzhinskogo str, 9 Head: Mikhail Egorin Phone: +7 (8152) 21-37-01, fax +7 (8152) 47-28-98; e-mail: office@murman-voda.ru Project manager: Alla Istomina Phone: +7 (8152) 21-37-04; fax: +7 (8152) 47-28-98; e-mail: office@murman-voda.ru Short description, goals and objectives of the project: The aim of the project to ensure biological treatment of sewage from the southern part of Murmansk. The project envisions construction of a sewage treatment plant with a capacity of 40,000 3 m /day. Duration: 2011-2015 Current status of the project: construction Total investment: RUR6.3bn Sources of financing: - RUR1m – own funds, - RUR670.6m – Murmansk regional budget - RUR5,628.4m – to be determined Payback period projects: 10+ years Expected results: The implementation of the project will reduce the environmental impact on the Kola Bay by 579,000 tonnes of organic substances and 492,000 tonnes of suspended solids per year. 9 Investment project Phased transition to billing for the actual consumption of utilities in the housing sector Project owner: Housing policy committee of the Murmansk city administration Address: 183038, Murmansk, Profsoyuzov str, 20 Head: Irina Torotenkova Phone: +7 (8152) 45-32-43, fax: +7 (8152) 45-59-23, e-mail: comzkp@mail.ru Project manager: Oksana Popova Phone: +7 (8152) 45-82-27 Short description, goals and objectives of the project: - phased transition to billing for the actual consumption of heat, hot and cold water and electricity in residential buildings; - accuracy, credibility and unity of metering of supply and consumption; - optimization of utilities’ costs in the housing sector; - introduction of new modern technologies in operation of utilities. Duration: 2009-2014 Total investment: RUR561.4m Sources of financing: - Allocations from the Housing and utilities sector reform foundation in the framework of a municipal program of capital renovation of housing stock in 2009 - RUR5.8m - Regional budget – RUR118.4m - Municipal budget – RUR87.6m - Management companies, condominiums, building cooperatives and flat owners – RUR349.6m. Expected results: efficient use of resources in the housing sector of Murmansk; reduced costs for heat, water, gas and power supply in the households; reduced losses of thermal and electric energy in the housing sector. 10 Investment projects of Murmanoblgaz Project owner: Open joint-stock company Murmanoblgaz (Murmansk region’s gas supplier and distribution network operator) Address: 183032, Murmansk, Kolskiy Av, 29 Head: Alexander Chernenko Phone: +7 (8152) 25-31-16, fax +7 (8152) 25-31-16; e-mail: mggh@bk.ru Project manager: to be determined after the approval of the program of municipal utilities development in Murmansk in 2011-2020. 1. Overhaul of the Murmansk gas-filling station Short description, goals and objectives of the project: Main goal of the project: optimize heat and power supply; enhance safety and efficiency of the Murmansk gas filing station. The project envisions the overhaul of the heat and power supply systems; storage capacity expansion; replacement of pumping, compression, gas filling and offload equipment; upgrade of the CCTV system; upgrade of the fire alarm system; telemetric system installation; automation of liquefied petroleum gas intake and offload processes. Duration: 2012-2020 Current status of the project: review of project’s activities. Total investment: RUR47.05m Sources of financing: To be determined after the approval of the program of municipal utilities development in Murmansk in 2011-2020. Payback period projects: to be determined after the approval of the program of municipal utilities development in Murmansk in 2011-2020. Expected results: optimized heat and power supply systems, expanded capacity of the Murmansk gasfilling station. 2. Renovation of the Murmansk gas distribution system. Short description, goals and objectives of the project: Main goal of the project is to enhance safety and efficiency of Murmansk gas distribution network and to improve working conditions for the operating staff. The project envisions replacement of equipment and fittings of group gasholder units and outdoor LPG pipelines. Duration: 2012-2020 Current status of the project: review of project’s activities. Total investment: RUR16.84m Sources of financing: To be determined after the approval of the program of municipal utilities development in Murmansk in 2011-2020. 11 Payback period projects: to be determined after the approval of the program of municipal utilities development in Murmansk in 2011-2020. Expected results: improved safety and quality of LPG supply in Murmansk. 12 Investment projects of the regional Kolenergo branch of Interregional Distributive Grid Company of the North-West (IDGC NW) Project owner: Kolenergo branch of IDGC of the North West Registered address: 188300, Leningrad region, Gatchina, Sobornaya str. 31 Visiting address: Murmansk region, Kola district, Murmashi, Kirova str. 2 Head: deputy general director - director of the branch Sergey Gubich Phone/fax: +7 (81553) 683-39; e-mail: esdubovikova@kolenergo.ru Project manager: head of investment department Snezhana Zaharova. Phone/fax: +7 (81553) 683-56; e-mail: spzaharova@kolenergo.ru 1. Overhaul of the VL-35 kV M-5/6 overhead transmission line including the replacement of AS-120 wires with self-supporting insulated wires SIP-3. Short description, goals and objectives of the project: The main goal of the project is to enhance the reliability of power supply. The project envisions an overhaul of the overhead transmission line VL-35 kV M-5/6 with replacement of AS-120 wires with self-supporting insulated wires SIP-3. Existing market – Oktyabrskiy district of Murmansk. Duration: 2011-2023. Current status of the project: project is in its development stage. Total investment: RUR5.374m, including Disbursed investment – RUR322,000 Sources of financing: depreciation – RUR5.374m. Expected results: VL-35 kV M-5/6 overhead transmission line is a feeder for Substation No. 64 (110kV) and Substation No. 341 (35kV) in Murmansk. This investment project will not lead to the expansion of the market but will ensure reliable power supply of the consumers. Social effects of the project: enhanced reliability of power supply in the residential and social sectors, improved overhead transmission line safety. Additional effects of the project: enhanced reliability of power supply in the business sector. 2. Upgrade of Substation No. 4 in Murmansk Short description, goals and objectives of the project: The main goal of the project is to increase capacity for connecting new consumers and to enhance reliability of power supply in Pervomaiskiy district of Murmansk. The project envisions a major overhaul of the 110-kV outdoor switchgear of the substation, installation of a factory-assembled 110-kV switchgear and replacement of two 25 MVA transformers with two 40 MVA transformers. Duration: 2009-2014 Current status of the project: finalizing design documentation. Total investment: RUR290.115m, including Disbursed investment – RUR6.705m 13 Sources of financing: - Depreciation – RUR7.065m, - Asset renewal – RUR282.623m Expected results: The implementation of the project will result in the increased installed capacity of substation No. 4, offer a possibility of connecting new consumers and significantly enhance operational reliability thanks to new modern equipment. Social effects of the project: increased reliability of power supply in the residential and social sectors, possibilities to connect new consumers in these sectors. Additional effects of the project: increased capacity and reliability of power supply for the business sector. 3. Overhaul of 35 kV outdoor switchgear with replacement of all equipment at 150 kV Substation No. 6. Short description, goals and objectives of the project: This project aims at the replacement of worn-out and obsolete switchgear in order to increase reliability of operation and reduce maintenance costs. The project envisions an overhaul of 35 kV outdoor switchgear and replacement of all equipment at 150 kV Substation No. 6. Market – Leninskiy district of Murmansk (eastern part and the industrial zone). Duration: 2011-2013. Current status of the project: design stage Total investment: RUR39.957m, including Disbursed investment – RUR2.55m Sources of financing: - Depreciation – RUR17.379m, - Asset renewal – RUR22.578m. Expected results: The implementation of the project will enhance the reliability of operation, increase safety of the working environment, reduce maintenance costs and improve fire safety. Social effects of the project: enhanced reliability of power supply in the residential and social sectors. Additional effects of the project: increased capacity and reliability of power supply for the business sector. 4. Expansion of 150 kV Substation No. 53. Short description, goals and objectives of the project: Installation of a second 90 MVA autotransformer and replacement of two 25 MVA transformers with two 40 MVA ones will expand the capacity of the substation and enable power supply to the 110kV network and maintaining required voltage both in regular and post-fault conditions. The increased capacity of substation No.53 will make it possible to supply power to new consumers in the Pervomaiskiy district of Murmansk in several years to come. Market – Pervomaiskiy district of Murmansk. Duration: 2015-2017 14 Current status of the project: development of the terms of reference Total investment: RUR569.316m Sources of financing: - Asset renewal – RUR569.316m. Expected results: Installation of a second 90 MVA autotransformer and replacement of two 25 MVA transformers with two 40 MVA ones will expand the capacity of the substation and enable power supply to the 110kV network and maintaining required voltage both in regular and post-fault conditions. The increased capacity of substation No.53 will make it possible to supply power to new consumers in the Pervomaiskiy district of Murmansk in several years to come. Additional effects of the project: increased reliability of power supply for the business sector and its development. 5. Overhaul of Substation No. 388 in Murmansk Short description, goals and objectives of the project: The project aims to increase capacity and reliability of the substation, enable connecting new consumers, increase added energy, reduce operating and maintenance costs and improve working conditions. As a result of the project the installed transformer capacity of the substation will be increased by 12 MVA which will make it possible to connect new consumers (the current demand for additional capacity is 6.83 MV). This will expand the company’s market and increase operating revenues. Market – Leninskiy district of Murmansk (northern part of the district). Duration: 2009-2012 Current status of the project: installation of transformers. Total investment: RUR75.573m, including disbursed investment – RUR51.321m Sources of financing: - Depreciation – RUR13.019m, - Connection fees – RUR15.022m, - Loans – RUR47.533m Expected results: The implementation of the project will increase the installed capacity of Substation No. 338, offer possibilities for connecting new consumers and enhance operational reliability thanks to the use of new modern equipment. Social effects of the project: possibility to connect new consumers in the social and residential sector. Additional effects of the project: possibilities for business development in Leninskiy district of Murmansk 6. Expansion of 35 kV Substation No. 338 Short description, goals and objectives of the project: 15 The project aims at increasing the capacity of Substation No.338 35/10/6, reduce operating and maintenance costs, enhance operational reliability and improve working conditions. The project will increase the installed transformer capacity by 40 MVA enabling connection of new consumers. The substation’s current load will increase from the current 15.4 MVA to 27.9 MVA in the near future. In case one of the transformers fails the emergency overload of the other transformer will be 174%. Duration: 2009-2013. Current status of the project: development of new terms of reference due to changed technical solutions. Total investment: RUR226.716m, Including disbursed investment – RUR6.795m Sources of financing: - Connection fees – RUR226.607m, - Loans – RUR0.109m Expected results: The project will increase the installed capacity of Substation No. 338 by 20 MVA, enable connecting new consumers and enhance operational reliability of the substation thanks to the use of new modern equipment. Social effects of the project: enhanced reliability of power supply in the residential and social sectors. Possibility for connecting new social and residential consumers. Additional effects of the project: increased reliability of power supply for the business sector and its development. 7. Overhaul of 35 kV Substation No. 335 Short description, goals and objectives of the project: The project aims at increasing the capacity and reliability of the substation, enabling connecting new consumers, reducing operating and maintenance costs and improving working conditions. The project will result in increasing the installed transformer capacity of the substation by 18 MVA and expanding the capacity of 35 kV feeder overhead transmission lines and 6 kV equipment of the substation enabling additional loads. The replacement of the wire will increase its capacity to 450A and 29.6 MVA. This will result in changing the current market in the central part of Leninskiy district of Murmansk. Duration: 2013-2015 Current status of the project: under development. Total investment: RUR246.272m Sources of financing: - Asset renewal – RUR246.272m Expected results: The project will enable connecting new consumers and enhance operational reliability of the substation thanks to the use of new modern equipment. Social effects of the project: enhanced reliability of power supply in the residential and social sectors and possibilities for connecting new social and residential consumers. 16 Additional effects of the project: increased reliability of power supply for the business sector and its development. 8. Construction of transmission lines required for the construction and subsequent connection of Substation Severnaya Short description, goals and objectives of the project: The project aims at enabling the construction of Substation Severnaya 150/35/6 kV. The project envisions construction of transmission lines in order to connect Substation Seevernaya to the regional grid. Market – Leninskiy district of Murmansk (northern industrial zone). Duration: 2008-2013 Current status of the project: project paperwork finalized. Total investment: RUR163.739m, including disbursed investment – RUR15.759m Sources of financing: - Connection fees – RUR152.586m, - Other sources – RUR11.153m Expected results: The implementation of the project will enable construction and subsequent connection of Substation Severnaya 150/35/6 kV to Kolenergo’s grid. Social effects of the project: possibilities for connecting new social and residential consumers. Additional effects of the project: wide possibilities for business development. 9. Construction of two 150kV overhead transmission lines from Substation Murmanskaya to Substation No. 53 Short description, goals and objectives of the project: The project aims at changing the connection configuration between 330 kV Substation No. 200 and 150 kV Substation No. 6 through the construction of two 150kV overhead transmission lines (7km each) from Substation Murmanskaya and Substation No. 53 and two overhangs (4km each) to Substation Murmanskaya. Market: Murmansk Duration: 2013-2016 Current status of the project: developing terms of reference Total investment: RUR188.176m Sources of financing: - Asset renewal – RUR188.176m Expected results: The project will enhance the reliability of power supply in the northern part of Murmansk. Social effects of the project: increased reliability of power supply in social and residential sectors Additional effects of the project: increased reliability of power supply in business sector. 17 TRANSPORT Investment project Establishment of an intermodal transit center in Murmansk Project owner: Open joint-stock company Russian Railways (Murmansk branch of October Railway) Address: 183865, Murmansk, Privokzalnaya str. 15 Head: deputy head of the railway in the region I.V.Polikarpov Phone/fax: +7 (8152) 48-42-92 Short description, goals and objectives of the project: The project aims to combine the railway station and bus terminal in Murmansk in one intermodal transit centre. The project is implemented under the agreement between the Government of the Murmansk region and Russian Railways. Duration: 2012-2016 Current status of the project: identifying investors and design organizations. Total investment: RUR2.925bn Sources of financing projects: - Own funds – RUR1,696.5m, - Private investment – RUR1,228.5m Expected results: The implementation of the project will improve the quality of transportation services provided to the residents and guests of the Murmansk region. 18 Investment project The Arctic Harbour Project owner: Government of the Murmansk region Address: 183006, Murmansk, Lenin Av. 75 Short description, goals and objectives of the project: The project aims to overhaul the Murmansk sea passenger terminal and the surrounding area to enable handling large cruise ships, to give the city as the Gateway to the Arctic a new look from the sea and to offer local inhabitants and guests a recreational waterfront area. One of the sights of the Arctic Harbour is the world’s first nuclear-powered icebreaker Lenin which is already permanently anchored at the sea passenger terminal in Murmansk. The project envisions the following activities: - Renovation of the passenger terminal building; - Construction of a pier for large cruise ships; - Renovation of a long-haul traffic pier; - Installation of a floating pier for NS Lenin (already installed); - Installation of a floating pier for K-3 submarine; - Construction of a border-crossing station at the sea passenger terminal; - landscaping. Duration: 2012-2015 Current status of the project: design documentation developed. Designs of the long-haul traffic pier and sea passenger terminal building renovation approved by state expert review. Total investment: RUR4.7bn Expected results: The implementation of the project will: - create modern infrastructure for marine passenger traffic; - give Murmansk an absolutely new look from the sea; - enable the establishment of a regular ferry connection between Kirkenes and Murmansk and calls of cruise ships. 19 Investment project Integrated development of the Murmansk transport hub Project owner: Government of the Russian Federation, Government of the Murmansk region Address: 183006, Murmansk, Lenin av. 75 Short description, goals and objectives of the project: The project envisions construction and upgrade of port infrastructure on both sides of the Kola Bay, including: - construction of coal, crude oil and oil products terminals on the western side of the bay; - renovation of the coal terminal and construction of a logistics centre, a container terminal, warehousing facilities and a distribution zone on the eastern side of the bay; - construction of an electrified railway line Vihodnoy-Lavna to the new terminals on the western side of the Kola Bay - expansion of railway capacity and renovation of rail approaches (from Vokhovstroi); - development of motor road infrastructure, including the development of road network in Murmansk. The project aims at the establishment of a deep-sea container, oil, coal and mineral fertilizers transshipment hub integrated in the North-South transport corridor. Duration: - oil terminal construction – 10.8 years; - coal and general cargo terminal construction – 5.5 years; - coal terminal renovation on the eastern side of the Kola Bay – 2.5 years; - container terminal construction – 4.5 years; - logistics centre construction on the eastern side of the Kola Bay – 1.2 years; - Vihodnoi-Lavna railway line construction – 4 years. Current status of the project: - A feasibility study of the Murmansk transport hub development was approved by State expert review on 28.04.08; - Order No. 195 of 06.09.2010 established the planned boundaries of the coal and oil terminals and the Vihodnoi-Lavna railway line. Currently NPO Mostovik LLC is carrying out the design under Phase 2. Total investment: RUR120.5bn. Sources of financing projects: - federal budget – RUR52.7bn, - non-budgetary sources – RUR67.8bn (private investors: Sea Commercial Port Lavna LLC, Lavnatrans LLC, Sintez petroleum, OAO Murmansk Sea Commercial Port). Expected results: The project will facilitate: - social and economic development of the Murmansk region; - human resource development of the Murmansk region (the project is expected to create around 2900 jobs); - business development and investment activity in the Murmansk region; - strengthening of competitive advantages of the Russian transportation system; - significant growth of Russia’s export and transit potential; - development of competitive transport solutions for the export of bulk goods utilizing super ships with the deadweight of up to 300,000 tonnes. 20 OFFSHORE DEVELOPMENT SUPPORT Investment project Renovation of Gazflot’s oil terminal in Murmansk to support Russian Arctic offshore activities Project owner: Limited Liability Company Gazflot Address: 117420, Moscow, Namyotkina str. 12A Head: Yuriy Shamalov Phone: +7 (499) 580-38-00, fax +7 (499) 580-39-34; e-mail: gazflot@gazflot.ru Project manager: Sergei Esipov Phone: +7 (499) 580-38-88 3-36-25, fax +7 (499) 580-39-34; e-mail: esipov@gazflot.ru Short description, goals and objectives of the project: The project envisions the renovation of the Murmansk oil terminal of Gazflot LLC to support the Russian Arctic offshore development. The refurbished facility will offer the following services: · intake, storage and transshipment of goods; · bunkering and material dispatch; · offshore logistical support; · maintenance and repair services; · drilling mud makeup and load-out on supply vessels; · acceptance of offshore fields and preparation for drill waste disposal. Duration: 2012-2014 Current status of the project: designing, collection of paperwork for building permit. Total investment: to be determined. Payback period of the project: no assessment of payback period performed since this is an infrastructure project for Gazprom. Expected results: Annual turnover is expected to reach 23,000 tonnes by 2020. Social effects of the project: 669 jobs will be created. Additional effects: a total of 1.21 hectares of land will be improved. 21 Investment project Gazprom’s offshore training centre Project owner: Limited Liability Company Gazprom Dobycha Shelf Address: 117418, Moscow, Novocheremushkinskaya str. 65 Head: Alexander Mandel Phone/fax: +7 (499)550-30-02, +7 (499) 550-30-03, e-mail: s_poddubskiy@shelf-dobycha.gazprom.ru Project manager: Nadezhda Kulygina Phone: +7 (499) 550-31-54 Short description, goals and objectives of the project: The project envisions construction of a new training centre of OAO Gazprom to provide training in offshore exploration, prospecting, development and operation, subsea pipeline transport and tanker transport. The objectives of the training centre are to: - provide theoretical and practical training for the offshore industry (subsea production facilities, offshore platforms, drill rigs, subsea pipelines, LNG plants, oil and gas tank farms, offload facilities, gas tankers); - retrain offshore staff; - provide scientific and methodological support to enhance efficiency and safety of offshore operations; - certify offshore specialists. The training centre will have the following facilities: - a 6,000m2 training building; - a “swimming pool” - a single-storey 38х48m tank building (1824m2); - ship damage control facility; - a 600m2 “Fire labyrinth” (24x50m) made of prefabricated 2.4x6.0m metal containers; - a 300m2 fire fighting facility (20x15m); - a 1500m2 facility imitating a real wayside station; - a freefall lifeboat – a metal structure with platforms on two levels; - a hotel for 350 beds; - a fitness and rehabilitation centre; - a garage for two cars. (The composition of the training centre is to be determined at the design stage). Number of students - 375. The centre will offer the following types of training: - fast-track professional training for workers and specialists; - professional retraining for workers and specialists; - refresher training for workers, specialists and management; - distance learning for engineering and management staff; - professional development of OAO Gazprom’s offshore staff to ensure efficient, safe and accidentfree operation; - emergency preparedness and response. Number of trainees per year – 3,000. Duration: 2010-2016 - 2010 – feasibility study of the training centre’s establishment; 22 - 2011 – development of terms of reference for design and survey work, obtaining a land allocation certificate, arranging public hearings; - 2012 – preparation of the tender for design and survey work; - 2012-2013 – design and survey work for the construction; - 2014-2015 – construction of the training centre; - 2016 – commissioning of the centre. Current status of the project: securing land title for the construction, preparation for tendering the engineering and survey work. Total investment: RUR1,224,630,000 (to be adjusted at the design phase) Sources of financing the project: - Design and construction phase (2012-2016) – RUR1,224.6m – OAO Gazprom; - During the operation phase annual operating costs will amount to RUR145.5m – OAO Gazprom (to be adjusted at the design phase). Payback period projects: 8.7 years Expected results: The establishment of the training centre will enable different types of offshore training to Russian and international standards. Social infrastructure will be developed on the shores of Lake Sredneye. New leisure facilities will be built as part of the training centre (fitness and rehabilitation centre and sport grounds). The construction of the training centre and its subsequent operation will create new jobs and orders for the local businesses and generate additional tax revenues. The construction of a modern training centre will benefit the residents of both the Lake Sredneye neighborhood and the city as a whole. 23 FISHERIES Investment project Establishment of a company to market live fish and seafood in Murmansk Project owners: 1. Limited Liability Company M-Interseafood; 2. Open joint-stock company First Northern Kola People’s Company Nasha Ryba (Our Fish) Address: 183000, Murmansk, Domostroitelnaya str. 7/7 Head: 1. Yuri Artemyev; 2. Vladimir Moskalenko Phone/fax: +7(8152) 47-24-88, +79522987262, e-mail: 51@our-fish.ru, Artemevfish@yandex.ru Project manager: Anatoliy Evenko – Head, Association of coastal fishermen and fish farms of the Murmansk region Phone: +79212835555 Short description, goals and objectives of the project: The project aims to develop the infrastructure for the marketing of live fish and seafood via a network of specialized shops Nash Okean (Our Ocean) in Murmansk. The company will purchase live fish and seafood from fishermen in Murmansk region, Karelia and Central Russia and then sell them via the specialized shops. Small volumes of dormant fish will be processed in-house and sold fresh or salted. The goal is to sell up to 1,000 tonnes of live fish and seafood per year in Murmansk. Duration: 2011-2013 Current status of the project: the project is 25% ready. Total investment: RUR60m, including - Disbursed investment – RUR12m, - Outside investment required – RUR48m. Sources of financing: - Murmansk city budget – RUR23m; - Own funds – RUR13m; - Commercial loans – RUR22m; - Other sources of financing – RUR2m Expected results: 1. Creation of new retail areas: - Inbuilt facilities in existing shops (7) – 140m2; - 3 mobile kiosks – 72 sq.m.; - 3 self-contained tanks for live fish – 75m2; - specialized fish shop Our Ocean - 750m2; - live fish storage shop – 500m2 2. Job creation – up to 60; 3. Landscaping – 1500m2 The annual turnover will reach RUR550m. 24 Investment project Integrated development of fish processing facility of the Suprimex Company Project owner: Limited Liability Company Suprimex Domestic Seafood Address: 183038, Murmansk, Profsoyuzov str. 24 Head: A.A.Valov Phone/fax: +7 (8152) 550-350, +7 (8152) 550-357, e-mail: meu@suprimex.ru Project managers: Melnik-Rusnak E.Yu. Phone/fax: 7 (8152) 550-350, +7 (8152) 550-357, e-mail: meu@suprimex.ru Short description, goals and objectives of the project: The project envisions the expansion and upgrade of the existing white fish processing facility. The facility processes both frozen and fresh fish ensuring maximum flexibility of production. The facility can currently process up to 400 tonnes of fish per month producing 8-12 tonnes of fillet per day. After a minor upgrade the capacity may be expanded to 700 tonnes of raw fish (15-17 tonnes of fillet per day). Future plans include a further expansion of the processing capacity to 2,500 tonnes (Phases 1&2) and then to 3,500 tonnes (Phases 1,2 &3) per month. Duration: 06.2012 – 06.2013. Current status of the project: Phase 1 of the project has been completed and commissioned. Phase 2 construction is in progress. Total investment: USD58.3m Sources of financing: - Own funds – USD13.3m - Outside investment required – USD45m. Payback period projects: 5 Expected results: Expansion and upgrade of existing white fish processing facility. 25 Investment project Establishment of a fisheries information and consulting centre in Murmansk Project owner: Murmansk Industrial Lyceum Address: 183001, Murmansk, Festivalnaya str. 24 Head: Grigoriy Shatilo Phone/fax: +7 (8152) 47-29-59, +7 (8152) 47-29-49, e-mail: gregor@e4u.ru Project managers: Anatoliy Evenko – Head, Association of coastal fishermen and fish farms of the Murmansk region, phone: +7 (8152) 62-62-28, +7 (8152) 45-22-78, +7 (8152) 45-27-81, e-mail: anat.evenko@yandex.ru; Artur Ilyasov, phone: +533075771, e-mail: ilyasov.artur@gmail.com Short description, goals and objectives of the project: The aim of the Murmansk fisheries information and consulting centre is to assist fishermen, fish processors and fish producers in the implementation of innovative projects, learning from the best Russian and international practices, expanding production and improving the quality of their products. Main objectives of the centre: 1. Information and advice: - Information support of fish producers via regional media and the Internet; - Consulting fish producers and the population of Murmansk and of remote coastal settlements of the region with regard to the fisheries sector (economics and planning, law, education, promotion). 2. Organization and methodological support: - Maintaining databases and information support systems; - Training seminars on relevant topics; - Publication of training and reference materials for the fisheries sector. 3. Innovation: - Facilitating innovation in the regional fisheries cluster; - Assisting in the introduction of technologies for marketing of live fish in Murmansk etc. 4. Trade shows: - Participation in and organization of fisheries shows showcasing the achievement of the regional fisheries cluster. Duration: 2010 - 2016 Current status of the project: A working group created to elaborate the bylaws of the centre. The group includes representatives of the business sector, government, NGOs and academia. Total investment: RUR6.05m Including disbursed investment – RUR0.05m Sources of financing: - Own funds – RUR1.95m, - Federal budget – RUR0.1m, - Murmansk city budget – RUR1.7m, - Outside investment (different grants) – RUR2.3m 26 Payback period: 6 years Expected results: Efficient development of fishing, fish processing and aquaculture of the Murmansk region through enhanced cooperation between various actors. 27 Investment project Construction of an advanced aquatic organisms’ processing centre in Murmansk Project owner: Murmansk State Technical University Address: 183010, Murmansk, Sportivnaya str. 13. Head: Alexander Ershov Phone: +7 (8152) 25-40-72, fax: +7 (8152) 23-24-92, e-mail: ErshovAM@mstu.edu.ru Кураторы projects: Svetlana Derkach Phone: +7 (8152) 45-73-02, fax: +7 (8152) 23-24-92, e-mail: DerkachSR@mstu.edu.ru Short description, goals and objectives of the project: Goals of the project: 1. Advanced processing of nonconventional raw materials using MSTU-developed innovative technologies (mainly in tins) 2. Development and commercialization of new fish and seafood processing technologies 3. Training and retraining of engineering staff 4. Using the profits to finance research The centre will have an annual capacity of 2.5 million tins per year during Phase 1 expanding to 5 million tins during Phase 2 resulting in a 12% increase in the production of tinned fish in the Murmansk region. The product range will include 8 new types of tinned fish and seafood. The raw material will be provided by local fishing companies. An area of 10 hectares in the vicinity of the University has been allocated for the centre. The centre will consist of two parts – a main one-storey process building and a two-storey annex accommodating administration, laboratories and classrooms. In addition to the main building a transformer substation and two self-contained lowtemperature storage facilities for semi-finished products (30 tonnes each) will be built. Duration: 2010 – tbd Current status of the project: Feasibility study completed. Total investment: RUR162.3m Sources of financing: - federal budget – RUR162.3m Payback period projects: 13years Expected results: A 12% increase in the production of tinned fish in the Murmansk region. Estimate annual revenues generated by wholesale of tinned fish will be RUR81.2m. Social effects of the project: - about 30 jobs will be created; - practical training of the students of the technological faculty of the MSTU; - training and retraining; - area improvement. Additional effects of the projects: - use of unconventional biological resources of the Barents sea; - development and commercialization of aquatic organisms’ processing technologies. 28 Investment project Coldstore upgrade at the Murmansk Fishing Port Project owner: Open joint-stock company Murmansk Fishing Port Address: 183001, Murmansk, Tralovaya str. 12 Head: Vladimir Sokolov Phone: +7 (8152) 47-72-81; fax: +7 (8152) 28-65-00, e-mail: mail@mmrp.murmansk.ru Project managers: 1. Lyudmila Shnyakina – head of economic analysis service Phone: +7 (8152) 28-68-22; fax: +7 (8152) 28-65-00, e-mail: ShnyakinaLN@mmrp.murmansk.ru 2. Irina Morozova – deputy head of economic analysis service Phone: +7 (8152) 28-72-54; fax: +7 (8152) 28-65-00, e-mail: MorozovaIV@mmrp.murmansk.ru Short description, goals and objectives of the project: The project envisions an upgrade of the existing cold store for the intake, storage and offload of frozen fish in the Fishing port of Murmansk. The upgrade will expand the capacity and improve the quality of service and enable uninterrupted operation of the chambers without stopping them for defrosting. The cold store was built in 1976-1977 and has 5 chambers which have never been upgraded. Every year the port has to stop the intake of fish as the chambers need to be defrosted (for two weeks each) which forces the port to move the fish from chamber to chamber and creates problems for the fishermen. The cold store will be upgraded chamber by chamber without taking it out of operation. The upgrade will increase the capacity of the cold store by 3,000 tonnes. Duration: 2012-2019 Current status of the project: Investment project is under review by a lender. Total investment: RUR131.1m Sources of financing: - Own funds – RUR4.1m, - Commercial loans - RUR127m. Payback period: 11 years Expected results: RUR210.9m in additional revenues in 2012-2019 46.6% profitability once the project is fully implemented. Social effects: 48 jobs will be retained and new jobs will be created. The upgrade of the cold store will improve the financial and economic situation of the Murmansk fishing port, increase throughput and enhance the port’s competitiveness, make it more attractive to cargo owners and shippers, improve profitability and increase tax and social revenues. 29 Investment project Construction of a 3,000 tonne cold store Project owner: Limited Liability Company RPK Golfstrim Address: 183038, Murmansk, Tri Ruchya str. Head: Alexander Zaitsev Phone: +7 (8152) 48-85-02; fax: +7 (8152) 54-92-19, e-mail: info@cargofish.ru Project manager: Alexander Zaitsev Phone: +7 (8152) 48-85-02; fax: +7 (8152) 54-92-19, e-mail: info@cargofish.ru Short description, goals and objectives of the project: The project envisions construction a 3,000 tonne cold store for frozen fish. The main aim of the project is to increase efficiency and quality of handling fishing vessels landing their catches in the port of Murmansk. Project’s milestones: - 2011-2012 – development and approval of design documentation; - 2012-2013 – construction of the cold store; - 2013 – commissioning. Duration: 2011-2013 Current status of the project: development of design documentation Total investment: RUR50m Sources of financing: - Own funds - RUR20m, - Commercial loans - RUR30m Payback period: 5 years Expected results: - Potential to increased throughput by 30,000 tonnes of frozen fish per year; - At least 30 new jobs will be created; - More attractive conditions for Russian shipowners in the port of Murmansk; - Faster handling of fishing vessels thus facilitating fish landings in Russian ports. 30 Investment project Construction of a series of long-line fishing ships and the study of demersal longline fishery efficiency in the Barents Sea Project owner: Limited Liability Company Persei Address: 183010, Murmansk, Shmidta str. 5, suite 37 Head: Alexander Chumakov Phone/fax: +7 (8152) 45-72-64, +7 (8152) 45-79-53, e-mail: perseimur@mail.ru Project manager: Valery Malashenko Phone/fax: +7 (8152) 45-72-64, +7 (8152) 45-79-53, e-mail: perseimur@mail.ru Short description, goals and objectives of the project: The project envisions building a series of 30 modern longliners to 2020-2025 in order to: - introduce and promote sustainable demersal longlining technologies (cod, haddock, halibut, catfish, redfish) and reduce negative impact on the flora and the fauna of the Barents Sea; - conduct large-scale studies of the efficiency of and possibilities for demersal longlining in unstudied areas, including the Eastern Arctic (The Kara Sea, etc); - intensify introduction of demersal longlining. - change the ratio between trawling and longlining from the current 95/5 to 50/50 - 60/40 by 2020 - 2025. Particulars of the lead ship: - Length overall – 47.5m. - Width – 11m. - Draft – 4.5m. - Refrigerating capacity – around 600m3. - Engine – around 1200 kV. - Crew – 20 persons. Expected annual output per vessel: 4,125 tonnes of frozen packed semifinished products, including: cod – 1,333t, haddock – 571t, halibut – 200t, spotted catfish - 667t, northern wolffish – 467t, halibut heads – 86t, cod liver – 35t, cod tongues – around 16t, feed farce – around 750t. Duration: 2011-2025 Current status of the project: development of the ship’s design, calculation of ship’s energy demand and required equipment and identifying equipment suppliers. Studying possibilities for funding the first 6-ship series. Total investment: Phase 1 (6 ships) – RUR3bn Sources of financing: - Own funds - RUR100m, - Commercial loans. Payback period: 4 years (optimistic scenario – securing quotas for newly-built ships) or 6 years (pessimistic scenario – leasing the ships out to quota holders or purchasing quotas on the market) Expected results: Significant increase in catches and fish production thanks to fishing large-sized fish (inaccessible to trawls) with the help of sustainable fishing technologies; lower impact on reproductive year-classes, reduced negative impact on the bottom flora and fauna through wider use of longlining. Around 120 jobs for graduates of maritime colleges and schools will be created over a five-year period. 31 TRADE, LOGISTICS, TRADE FAIRS Investment project International trade centre in Murmansk Project owner: Open Joint-stock Company International Business Centre Murman Address: 183766, Murmansk, Rusanova lane 10 Head: Andrey Ilyin Phone: +7 (8152) 55-47-20; fax: +7 (8152) 55-47-21, e-mail: vpresident@ncci.ru Project manager: Maria Tserenya Phone: +7 (8152) 55-47-20; fax: +7 (8152) 55-47-21, e-mail: ibc@ncci.ru Short description, goals and objectives of the project: The project of establishing the Murman international trade centre was initiated by the North Chamber of Commerce and Industry and Norway’s BB Eiendom AS in 2006. Norwegian Government’s fund Innovation Norway joined the project in 2010. The relevance of the project is strengthened by the growing potential of the region connected with the Shtokman project, development of Murmansk as an international transport hub and development of the industry, science and service sectors. The economic and political significance of the Murmansk region is increasing and it is becoming a key region for the growth of the Russian economy and its. The project envisions using an unfinished building of an oil&gas school situated at 72 Kolskiy avenue. Aims of the project: - provide comprehensive modern business services; - meet the local demand for modern conference, congress and trade show facilities; - create a regional market for office space, apartments and hotel accommodation. Duration: the project is divided in five construction phases Current status of the project: developing design and cost estimates for the entire construction project. Total investment: RUR4bn, Including disbursed investment – RUR68m Payback period: 11 years Expected results: - 100,500m2 of floor space; - Increased business activity in Murmansk and the region, job creation, high quality services in Murmansk, facilitation of international business ties, establishment of the most important business centre in the Arctic region; - Significantly improved look of the site selected for the International Trade Centre facing the city’s main road. 32 Investment project Construction of a shopping and entertainment complex in the central part of Murmansk (next to the Okay hypermarket). Phase 2 Project owner: Limited Liability Company Dorinda-Murmansk Address: 183000, Murmansk, Lenin av. 34 Head: Viktor Ivanov Phone/fax: +7 (8152) 59-63-19; Project manager: Viktor Ivanov Phone/fax: +7 (8152) 59-63-19 Short description, goals and objectives of the project: The project envisions construction of a five-level shopping and entertainment centre with a total floor space of 60,000m2 including a two-level parking lot. The centre will offer the following amenities: - shops; - cafes and restaurants; - services; - entertainment (cinemas, game areas, etc). Duration: commissioning scheduled for December 2013. Current status of the project: Total investment: own funds and loans. Expected results: commissioning of a multi-purpose complex of high importance for the population of Murmansk and the Murmansk region. 33 Investment project Establishment of a cumulative social wholesale and retail network in Murmansk Project owner: Limited Liability Company Agrostroi Registered address: 184380, Murmansk region, Kola, Provokzalnaya str. 28 Visiting address: 183034, Murmansk, Sverdlova str. 14/2 Head: Alexander Kulesh Phone/fax: +7(8152) 43-62-12, +79522909310 Project managers: Anatoliy Evenko – Head, Association of coastal fishermen and fish farms of the Murmansk region, phone: +7 (8152) 62-62-28, +79113031501; Ionas Shilkinis, phone: +7 (8152) 43-62-12, +79113339634 Short description, goals and objectives of the project: The overall goal is to implement the project Murmansk – the fishing capital of the High North. A secondary goal is to organize direct deliveries of Russian and CIS agricultural produce to the consumers in the Murmansk region by Agrorybsoyuz (Agricultural fisheries union). The retail price of the produce will be minimized thanks to utilization of holding’s own facilities such as warehouses, cold stores, rail lines, trucks, oil terminal, fish farming and processing plants, power supply units, etc. Agrorybsoyuz is a supplier of fuel, foods and water to the fishing and fish processing industries and receives fish in return for the supplies. Agrorybsoyuz member M-stroil have leased a modern fish processing facility in Belokamenka. The planned product range includes saltwater and freshwater fish (including live fish), fish roe and agricultural produce. Legal support will be provided by the Murmansk regional department of the International lawyers’ union established within Agrorybsoyuz. Fish will be sourced from fishing and fish processing companies of the Barents region. Project’s milestones: 1. Complete construction of Nash Okean (Our Ocean) shop (1,500m2) as part of Rybnyi Dom (Fish House) by 01.09.2012. 2. Expansion of Nash Okean to 3,000m2 by 01.09.2013. 3. Expansion of Rybnyi Dom to 5,000m2 and improvement of the surrounding area by 01.09.2014. 4. Gradual overhaul and expansion of two distribution centres to supply the Nash Okean network and its partners - 2012-2015. 5. Procuring motor transport and labour saving tools – 2012. 6. Construction of 3-5 fish kiosks (50m2) in each district of Murmansk using larch, pine and cedar delivered from the holding’s own sawmill in the Republic of Komi. 7. Use an existing building (1860m2) to set up a farm for producing live fish and aquatic organisms for the Nash Okean network. Duration: 2012-2015. Current status of the project: There is a case of the building for the Nash Okean shop with engineering utilities offering 1,500m2 usable floor area. There is an industrial building (1860m2) with engineering utilities and 600 m3 fiberglass tanks for farming fish and aquatic organisms. The company has its own boiler plant which is supplied with fuel oil from own oil terminal located 1.5 km away. The boiler plant will ensure the appropriate temperature conditions at the fish farm. The holding’s own facilities and resources (sawmill, building materials, rail lines, warehouses, transport, fuel, etc) will be used for the construction of the Nash Okean retail network. 34 Total investment: RUR263.5m, including - Disbursed investment – RUR45m Sources of financing: - Own funds – RUR85m (including RUR45m in disbursed investment), - Outside investment required – RUR178.5m Payback period projects: 5-7 Expected results: 1. The retail area will total 4,850m2. 2. 170 jobs will be created in Murmansk. 3. Improvement of city’s landscape. 35 Investment project Overhaul of the Murmansk oil terminal Project owner: Closed Joint-stock Company Exponeft Registered address: 183032, Murmansk, Lenin av. 3 Visiting address: Murmansk, Karla Marksa str. 27 Head: Andrey Pavliy Phone: +7 (8152) 48-70-71, fax +7 (8152) 48-71-00; e-mail: info@oilmurman.ru Project manager: Oleg Leskin Phone: +7 (8152) 48-70-71, fax +7 (8152) 48-71-00; e-mail: ojleskin@oilmurman.ru Short description, goals and objectives of the project: The project envisions an overhaul of the oil terminal (fuel and lubricants storage facility) located at 220 Vostochnaya objezdnaya doroga and 10 Promishlennaya str. in Murmansk. Aims of the investment project: wholesale trade, transshipment, storage. Planned product range: gasoline and diesel fuel. Duration: 2009-2015. Current status of the project: land allocation and expert review of design documentation. Total investment: RUR1.314bn, Including disbursed investment – unfinished construction – RUR65.2m Payback period projects: 10 years Expected results: Efficiency of the project: annual sales volume – 90,000 tonnes Social effects of the project: approximately 55 jobs will be created. 36 Investment project Construction of a B+ class warehouse at 14 Promishlennaya str. Murmansk Project owner: Open Joint-stock Company PLAZAGROUP Address: 183034, Murmansk, Promishlennaya str. 19, Greenwich Business Centre, suite 210 Head: Yuri Makarenko Phone: +7 (8152) 211-001; fax: +7 (8152) 211-004; e-mail: jsc@plazagroup.ru Project manager: Yuri Makarenko Phone: +7 (8152) 211-001; fax: +7 (8152) 211-004; e-mail: jsc @plazagroup.ru Short description, goals and objectives of the project: The project envisions construction of a modern B+ class warehouse with a total floor space of 9,800m2 responding to the market demand for modern warehousing and handling services. The terminal will meet international warehousing and handling requirements. The 2.5-hectare plot for siting the warehouse is situated at 14 Promishlennaya str. in the Northern Industrial Zone of Murmansk. The location of the facility in the immediate vicinity of M-18 federal motorway St.PetersburgMurmansk and a dedicated operational rail line will ease the cargo flow. Aims of the investment project: Meet the demand for B+ class professional warehousing facilities and high quality logistics services; Take the warehousing services to a whole new level. Create a new logistical system through the use of modern technologies, efficient logistics management and international storage and handling standards; Facilitate integrated development and landscaping of the Northern Industrial Zone in Murmansk; Optimize existing cargo flows and develop new transit routes; Reduce logistics costs. Duration: construction of the warehouse using an existing foundation – 1.5 years. Current status of the project: Leasehold of a 2.5-hectare industrial land plot with an existing foundation of 7,680m2; Design and basic permit documentation has been approved; Existing 323-meter rail line (within the land plot). Total investment: RUR400m, including - Disbursed own funds and loans: RUR130m, - Outside investment required: RUR270m Payback period: 10 years Expected results: Characteristics of the facility: built-up area: 8,840 m2; floor area – 9,800 m2; administrative building – 1,450 m2, warehouse area – 6,520 m2 divided in 5 sections 1,300 m2 each with 8-meter ceilings and 25 gates; floor and shelf storage (up to 7.15 meters high); 37 indoor railway dock – 1,800 m2; parking for 15 trucks and 30 cars with potential for further expansion; goods will be delivered by road and rail. Incoming cargo flow by road – 5-6 trucks (160 pallets totaling 80 tonnes) per shift. Incoming cargo flow by rail – 10 rail cars per shift. Social effects of the project: more than 150 jobs will be created. Additional effects of the project: improvement of 2.5 hectares in the Northern Industrial Zone of Murmansk. 38 Investment project Renovation of cargo handling area #1 of the Murmansk Sea Commercial Port Project owner: OAO Murmansk sea commercial port Address: 183024, Murmansk, Portovy lane 19 Head: Viktor Morozov Phone: +7 (8152) 48-06-44; fax: +7 (8152) 42-31-27, e-mail: office@portmurmansk.ru Project manager: Viktor Morozov Phone: +7 (8152) 48-06-44; fax: +7 (8152) 42-31-27, e-mail: office@portmurmansk.ru Short description, goals and objectives of the project: The project envisions a phased renovation of berths 1-12, warehousing facilities and utilities, introduction of modern mechanical appliances and a number of environmental protection measures. The new 533-meter long berthing with alongside depth of 14.8m will enable handling ships with displacement of up to 120,000 tonnes. Major cargos for District#1 are coal (75%), construction materials for the Shtokman field (13%), and iron ore concentrate and pellets (9%). The well-developed transport and power supply infrastructure on the eastern side of the Kola Bay will make it possible to carry out the overhaul on a tight schedule. The project will increase the port’s capacity and retain 100 jobs. The freight turnover of Cargo handling are #1 will increase twofold from 6.4m tonnes in 2008 to 12.9m tones in 2015. Duration: 2011-2015 Current status of the project: investment application for renovation of Berth#2 has been submitted to Rosmorport. Total investment: RUR9.2bn (inflation adjusted). Sources of financing: - Federal budget – RUR4.7bn (Federal target program Development of Russia’s transport system (2010-2015), subprogram «Development of export transport services»); - Non-budgetary sources – RUR4.5bn Payback period: 5.67 years (non-discounted), 6.15 years (discounted). Expected results: The overhaul will increase the competitiveness of the port through the construction of modern deepwater berths capable of handling large-capacity vessels, the attraction of new cargo and the increased capacity of its waterfront. 39 SOCIAL PROJECTS Investment project Construction of a multi-purpose sports complex in Murmansk Project owner: Committee of physical culture and sports of the Murmansk City Administration Address: 183025, Murmansk, Burkova 19A Head: Irina Andreeva Phone: +7 (8152) 44-28-49; fax: +7 (8152) 44-17-89, e-mail: sport-comitet@yandex.ru Project manager: Dmitry Blokhin Phone: +7 (8152) 44-17-89; fax: +7 (8152) 44-17-89, e-mail: sport-comitet@yandex.ru Short description, goals and objectives of the project: The project envisions construction of the first municipal sports and recreation centre for team sports on Sedova street. The centre is a trapezoid-shaped three-storey 44.8х40.8m building with a footprint area of 2 1653m , total floor space of 3750.5m2 and a total structural volume of 24126m3. The centre will be able to serve 188 visits per shift. The lobby, dressing rooms, a first-aid post, cafeteria and technical rooms will be situated on the ground floor. The gymnasium with stands for 170 spectators and a workout room will be situated on the second floor. Offices and another workout room will be situated on the third floor. The building will be fully wheelchair accessible. Duration: 2012 – removal of the remnants of the unfinished building and site preparation; 2013 – 2014 – construction and commissioning of the centre. Current status of the project: The design and cost estimates are currently under review by the state interagency expert review of the Murmansk region. The Committee of physical culture and sports and the Committee of urban planning and spatial development of the Murmansk city administration are applying to the Ministry of construction and spatial development of the Murmansk region and the Committee of physical culture and sports of the Murmansk region to allocate funds for the construction and to include the project in the long-term target program Development of physical culture and sports in the Murmansk region in 2011-2014. The Committee of physical culture and sports of the Murmansk city administration and the Committee of urban planning and spatial development are applying to the regional executive committee of United Russia Party to procure equipment and metal structures for the construction of the centre under the program run by United Russia with the Ministry of Sports, Tourism and Youth Policy of the Russian Federation. Total investment: RUR223.8m, including Disbursed investment – RUR8.8m (funded by the Murmansk municipal budget). Sources of financing: - Municipal budget – RUR36.8m, - Outside investment required – RUR187m. Payback period: -. Expected results: 40 - Meeting demand for athletic services Development of sports infrastructure in Murmansk. Increased efficiency of planning recreational and sports events Reduced costs for renting sports facilities for the municipal sports federations Competition on the sports facilities market Increased share of the city’s population regularly going in for sports to 15-20% area improvement Investment project Renovation of the Snezhinka sports complex in Murmansk Project owner: Committee of physical culture and sports of the Murmansk City Administration Address: 183025, Murmansk, Burkova 19A Head: Irina Andreeva Phone: +7 (8152) 44-28-49; fax: +7 (8152) 44-17-89, e-mail: sport-comitet@yandex.ru Project manager: Dmitry Blokhin Phone: +7 (8152) 44-17-89; fax: +7 (8152) 44-17-89, e-mail: sport-comitet@yandex.ru Short description, goals and objectives of the project: The project envisions renovation of the Snezhinka sports complex (aka KP-2) in Murmansk. The total area of Snezhinka sports complex is 26,140m2, including: - a parking lot (2,021m2); - a cross-country ski stadium (3,563m2); - a 2,155m ski track(10,220m2); - a skier’s house (30m2) The capacity of the sports complex is up to 1,500 persons a day. The project will include: 1. Renovation, widening and illumination of the 2155-meter long ski&running track. 2. Addition of a 3m wide walking track. 3. Secure parking lot. 4. Security checkpoint and parking barrier. 5. Overhaul of the two-storey skier’s house. 6. Construction of a heated building with dressing rooms, ski rental and a 50-seat cafe. 7. Illumination of all sites and the track Duration: 2012 – site preparation: zoning, removing debris, tearing down the existing building, levelling. 2013 – 2014 – overhaul of the Snezhinka sports complex Current status of the project: The design and cost estimates for the project were developed by Murmansk Construction Company LLC in late 2011 under a contract with the City Administration. The Committee of physical culture and sports and the Committee of urban planning and spatial development of the Murmansk city administration are applying to the Ministry of construction and spatial development of the Murmansk region and the Committee of physical culture and sports of the Murmansk region to allocate funds for the construction and to include the project in the long-term target program Development of physical education and sports in the Murmansk region in 2011-2014. Total investment: RUR124m, including Disbursed funds – RUR4m (allocated by the City of Murmansk). Sources of financing: 41 - Municipal budget – RUR19.6m, - Outside investment required – RUR104.4m Payback period: -. Expected results: - Meeting demand for athletic services - Development of sports infrastructure in Murmansk. - Increased efficiency of planning recreational and sports events - Reduced costs for renting sports facilities for the municipal sports federations - Competition on the sports facilities market - Increased share of the city’s population regularly going in for sports to 15-20% - Area improvement Investment project Establishment of Ecotourism Centre at the Sosnovaya rosha recreation centre Project owner: Murmansk municipal unitary company Zdorovie Address: 183038, Murmansk, Oktyabrskaya str. 2 Head: Alexei Markelov Phone/fax: +7 (8152) 45-32-78, cell +79537530377, e-mail: mmupzdorovie@mail.ru Project manager: Alexei Markelov Phone/fax: +7 (8152) 45-32-78, cell +79537530377, e-mail: mmupzdorovie@mail.ru Short description, goals and objectives of the project: The project envisions establishment of an ecotourism centre at the Sosnovaya rosha recreational centre located 37 kilometers from Murmansk on the shore of the Lower Tuloma water reservoir. Project partners: Committee of nature management and ecology of the Murmansk region (Chair Alexei Smirnov); WWF (head of the Barents Sea office Oleg Sutkaitis) Construction company OOO Rudservice (director Olga Urbanovskaya; - The objectives of the centre: coordinate and support environmental initiatives through seminars, conferences and publications offer ecological education and training to children and young people. develop ecotourism in the region establish an emergency response training centre. Project’s milestones: - development and approval of design and engineering documentation – 2012; 42 - Repair and restoration Phase 1 (renovation of a guest house for 30 beds, preparation of personal protection equipment storage facilities) – 2013; - Development and implementation of oil spill response and clean-up volunteer training programs – 2013; - Repair and restoration Phase 2 (renovation of the tent camp and guest houses, construction of an oil spill clean-up training ground) – 2014; - Development and implementation of ecological tours; development and implementation of ecological education programs for the Murmansk children and youth; hosting foreign guests and tourists; conferences, seminars, training sessions – 2014; - Development of snowmobile and ATV routes for ecological, historic and ethnographic tours in the Murmansk region – 2013-2014. Current status of the project: power supply system has been upgraded (650,000 kVh); security and maintenance of the centre (8,740 m2 of land). Searching for similar centres abroad for experience exchange. Total investment: RUR8.5m, including Disbursed investment – RUR1.8m, Outside investment required – RUR6.7m. Payback period: at least 8 years after completion of Phase 2. Expected results: The project will create an additional 200m2 of accommodation facilities, infrastructure for education and training and the organization of tours. The centre will be able to accommodate at least 50 visitors after completion of Phase 2. The project will create a unique centre combining development of ecotourism infrastructure, environmental protection, ecological and cultural enlightenment of the children and youth of Murmansk and the region. 43 Investment project Establishment of a multi-purpose sports and fitness centre Project owner: Murmansk municipal unitary company (MMUP) Zdorovie Address: 183038, Murmansk, Oktyabrskaya str. 2 Head: Alexei Markelov Phone/fax: +7 (8152) 45-32-78, cell +79537530377, e-mail: mmupzdorovie@mail.ru Project manager: Alexei Markelov Phone/fax: +7 (8152) 45-32-78, cell +79537530377, e-mail: mmupzdorovie@mail.ru 1. Façade renovation and area improvement Short description, goals and objectives of the project: The project envisions construction of an annex (ca. 150 m2) to Public Bath No. 5 at 9 Scherbakova str. in order to relocate the neighbouring outdoor market for 45 sellers and improve the surrounding area. Project’s milestones: - Development of the design and engineering documentation – Q1 2012; - Approval of the design by the authorities – Q2 2012; - Construction – Second half of 2012 – Q1 2013. The project is implemented by MMUP Zdorovie and a private investor Yuznyi Briz LLC. Current status of the project: front end engineering and design completed; queries to energy suppliers sent. Total investment: RUR4.5-5.0m Payback period: 2 years Expected results: At least 140m2 of retail area for small businesses will be created, the outdoor market will be closed and surrounding area will be improved. 2. Construction of a swimming pool Short description, goals and objectives of the project: The project envisions converting an existing Public Bath at Scherbakova str. 9 into a modern sports and fitness centre with two swimming pools. The project includes: - Restoration of a children’s pool (5x10m); - Construction of a new indoor 25-meter swimming pool with 5 lanes with a capacity to serve 30-35 persons an hour. Project’s milestones: - Land allocation for the new pool – Q1 2012; - Design approval with the authorities – Q1 2012; - Restoration of the existing swimming pool and construction of a new swimming pool – Second half of 2012 – Q1 2013. The project is implemented by MMUP Zdorovie and private investor T.I.Yarmolich. 44 Current status of the project: front end engineering and design completed. Cost estimates for the restoration of the old swimming pool developed. Cost estimates for the construction of a new swimming poll are under development. Total investment: RUR24-25m Payback period: 7-8 years Expected results: construction of the first swimming pool in the Pervomaiskiy district of Murmansk, improved quality of service, increased attendance. 45 TOURISM Investment project Development of domestic tourism in the Kola Peninsula Project owner: Limited Liability Company Arctic Travel Address: 183038, Murmansk, Shmidta str. 21, suite 34 Head: Tatyana Gorelkina Phone/fax: +7 (8152) 47-24-85, e-mail: arktiktravel@mail.ru Project manager: Andrei Sobolev Phone: +7 (8152) 47-35-37, fax 47-24-85, e-mail: arktiktravel@mail.ru Short description, goals and objectives of the project: The project envisions development of diving safaris and recreational fishing in the Barents Sea and organization of up to 6-day long cruises of the Kola Bay, the Barents and White Seas in the spring and summer (15 April through 15 October). Duration: 2011-2013. Current status of the project: two vessels purchased, one of them renovated and adapted for diving and fishing. Total investment: RUR12m, including Disbursed investment – RUR6m, Outside investment required – RUR5m. Sources of financing: - Own funds - RUR7m, - Murmansk regional budget – RUR3m, - Commercial loans – RUR2m. Payback period: 5 years Expected results: increased tourist services to 300 ship/days per year; job creation. 46 Investment project Renovation of Hotel Arktika in Murmansk Project owner: Open joint-stock company Hotel Arktika Address: 183038, Murmansk, Lenin av. 82 Head: Anton Basin Phone: +7 (8152) 45-72-06; fax: +7 (8152) 45-72-06; e-mail: ABasin@azimuthotels.ru Project manager: Anton Basin Phone: +7 (8152) 45-72-06; fax: +7 (8152) 45-72-06; e-mail: ABasin@azimuthotels.ru Short description, goals and objectives of the project: The project aims to renovate one of the symbols of Murmansk, the 19-storey Arktika hotel situated in the centre of the city. The hotel was commissioned in 1984. It is 63 meters tall and has a total area of 27,705m2. After the refurbishment the centre will offer the following amenities: - 191 hotel rooms; - a restaurant on the 17th floor, a restaurant (253 m2), a lobby bar and a coffee shop; - a business centre (7,698m2) and a conference room (530m2); - a SPA centre; - shopping area (3,235 sq.m.). Duration: 2013-2015. Current status of the project: the renovation design is currently under state expert review. A tendering process to select a general contractor started. Total investment: RUR1.4bn, including - disbursed investment: RUR49.8m, - outside investment required: RUR1.38bn Sources of financing: - own funds - RUR49.8m; - commercial loans – RUR1.38bn Payback period: 7 years Expected results: 1. Floor space available after the renovation: 191 rooms; restaurant – 253m2; lobby bar; coffee shop; business centre 7,698 m2 with a conference room (530m2); restaurant on the 17th floor; a SPA centre on the 17th floor; retail area – 3,235m2 2. Social effects of the project: - commissioning of a modern hotel and business centre; - creation of 107 jobs (currently the hotel has 15 employees). 3. Additional effects: 47 - landscaping of surrounding area (over 8,000m2); - a parking lot for 200 cars. 48 AGRICULTURE Investment project Uncooked smoked sausage shop Project owner: Limited Liability Company PO Melifaro Address: 183000, Murmansk, Tralovaya str. 3 Head: Anton Kazinov Phone/fax: +7 (8152) 79-84-10, e-mail: roz1@melifaro.mels.ru Project manager: Anton Kazinov Phone/fax: +7 (8152) 79-84-10, e-mail: roz1@melifaro.mels.ru Short description, goals and objectives of the project: The idea of the project is to establish the region’s first shop to produce 2.5-tonnnes of uncooked smoked sausage and meat delicacies per day. Duration: 2012 Current status of the project: construction Total investment: RUR150m, including Disbursed investment – RUR11m Sources of financing: - Own funds, commercial loans, leasing - RUR150m Payback period: 7 years Expected results: providing the region’s populace with fresh in-house foods. 49 INVESTMENT SITES Unfinished building projects in Murmansk № Description 1 International trade centre on Kooperativnaya OAO International Business Centre, street Rusanova lane, 10 Ph. 55-47-20 Refurbishment of a prophylactorium in Murmansk regional department of neighborhood No. 7 the Federal Taxation Service 2 Developer 3 Residential building for 60 apartments with a children’s club near 11 Lenin Av Ministry of Defense of the Russian Federation 4 Building of a health and disease control unit on Pavlova str. Ministry of Defense of the Russian Federation 5 Dormitory with a canteen on Dezhneva str. Ministry of Defense of the Russian Federation 6 ООО Gidrotehnik Dostoevskogo str. 16 7 Residential building for 45 apartments in neighbourhood 153 at the intersection of Sportivnaya and Khalturina streets Residential buildings on Orlikovoi str. 8 Market on Maklakova str. 9 OOO Arkada Ministry of Property Relations of the Murmansk region ZAO Rybnaya gavan Fitness center at the intersection of Papanina and Marksa streets 10 Administrative and laboratory building at 7 Tralovaya str. 11 Multipurpose sports complex in Cozy Valley 12 Multifunctional centre at 172A Kolskiy av. OOO Severnaya Laguna 13 Apartment buildings near 13 Burkova str. ZAO Proyektstroiservis 14 Underground walkway near Mir Cinema Capital Construction Department of the Murmansk City Administration E.N.Indeeva GOUP Training and sports centre OOO Nord Optima 50 LAND PLOTS PRIORITIZED FOR RESIDENTIAL DEVELOPMENT N п/п Location Cadastre number 1 Murmansk, Leninskiy district, Kirpichnaya str, Murmansk, Oktyabrskiy district, Starostina str. Murmansk, Oktyabrskiy district, Zavodskaya str. Murmansk, Oktyabrskiy district, Vorovskogo str. Murmansk, Leninskiy district, S.Kovaleva str. 51:20:003172:0 Mid-rise residential 062 buildings 0.4 Planned for Planned development in construction volume, m2 2012 1,060 51:20:002402:0 High-rise residential 072 buildings 0.8 2013 3,300 51:20:002127:0 High-rise residential 005 building 0.2 2014 1,260 deregistered 0.44 2014 4,610 0.41 2014 2,500 2 3 4 5 Permitted use Apartment building 51:20:003204:0 High-rise apartment 052 building with a service establishment Available area, ha Land in Murmansk available for development Location Total area, hectares Type of ownership Possible use Feasibility study for the construction Type of land allocation Distance to road 1 Koltsevoi (Drovyanoe) 3,618 State ownership Filling station No undetermined Located along the access road to Drovyanoe 2 Near 60 Geroev Rybachyego str. 2,163 State ownership Truck service station No undetermined 45m off M-18 motorway 3 4m off 11A S.Perovskoi str. 2,894 State ownership Tennis court No undetermined Approximately 120m to S.Pervoskoi str and 100m to Burkova str. 10,823 State ownership Fish processing facility No undetermined Located along Podgornaya str. 2,934 State ownership Skateboard park No undetermined 11,371 State ownership Fish processing facility No undetermined 4 5 6 Near 92 Podgornaya str. Near 4A Pomomareva str. 8m west of 38 Tarana str. Approximately 125m to Ponomareva str. Approximately 105m to Tralovaya str. 7 90m west of 86 Podgornaya str. 14,407 State ownership Auxiliary facilities for fish processing No undetermined Approximately 100m to Podgornaya str 8 Near 112 Kolskiy av 1,741 State ownership Car service station and car wash No undetermined Approximately 57m to the exit from M18 motorway to Kolsky av 9 Near 16 Dostoevskogo str. 1,685 State ownership Administrative building No undetermined Approximately 50m to Dostoevskogo str. 10 Near 49 Podgornaya str 1,923 State ownership Car service station No undetermined Located along Podgornaya str. 15,621 State ownership Retail and warehouse No undetermined Approximately 100m to Metallistov lane 11,174 State ownership A parking lot No undetermined Located along Orlikovoi str. 11 12 Near 15 block 1 Domostroitelnaya str. Near 2 block 2 Kamennaya str 13 Near 3 Sverdlova str 13,322 State ownership Production shop No undetermined Approximately 40m to Sverdlova str. 14 Near 3 Sverdlova str 3,414 State ownership Industrial building No undetermined Located along Sverdlova str. 52 15 Near 31 Kopytova str. 293,187 State ownership Multipurpose sports and business centre No undetermined Located along the southern entrance to the city Information on the cost of construction and distances to engineering utilities is unavailable. Contact person: Tatyana Zherebtsova, depauty chairperson of the Committee of urban planning and spatial development of the Murmansk city Administration, ph. +7 (8152) 45-35-40 ________________________________________________________________________________________________________ Перевод выполнен НО «Бизнес ассоциация иностранных инвесторов» NGO FIBA (Foreign Investors Business Association)