The Irkutsk region has the Russia’s largest industrial complexes: the fuel-and-energy, mining, timber-industry and petrochemical complexes.
     As of today, industrial enterprises  of the Irkutsk region are characterized by a high proportion of depreciated fixed assets. This is due to the inadequate size of capital placements or investments directed toward reproduction of these assets.
     A significant requirement for investments is observed in the industrial sectors of electrical power engineering, non-ferrous metallurgy, coal mining industry, and timber and wood-working industry, as well as mechanical engineering and metal working. It should be noted that these sectors of the economy have the greatest proportion in the total volume of export earnings.
     To sustain competitiveness of products manufactured by enterprises of the Irkutsk region requires putting the technological base into correspondence with the level thereof in major competitors in the domestic and external markets.
     Thus the Irkutsk region’s industry has a need for the attraction of investments for the reconstruction, modernization and creation of new production facilities on the part of national as well as foreign investors.
OOO “Quartz Technologies”
“Organization of the production for extraction and deep processing of quartz-containing rock of the Irkutsk region to further obtain high quality sorts of silicon and electrical technology products (Solar-Grade Silicon)
     The project is intended to organize in the region – in a phase-by-phase manner, on the basis of enterprises of the Irkutsk region and the Republic of Buryatia – a deep processing of quartz raw materials from deposits of east Siberia, in order to attain priority positions as regards extraction, manufacture and sales of products from specially pure quartz raw materials, through the pursuance of the following kinds of activity:
– exploitation of active deposits of specially pure quartzites (“Bural-Sardag”, Eastern Sayan), and veiny and granulated quartz (“Patom”, Bodaibo district), and search and organization of the extraction of new unconventional natural sources of chemically pure and readily concentrated quartz raw materials;
– development of high technologies for concentration of quartz raw materials and obtaining of “solar” grades of silicon by the method of direct carbothermic reduction;
– organization of productions of specially pure quartz concentrates, multicrystalline silicon (multisilicon) for solar power engineering, quartz crucibles for growing ingots of mono- and multisilicon, silicon plates for photoelectric converters of current (PEC), and PEC and household self-contained power supply systems of “solar” power engineering (addressed in separate business plans).
The project comprises 2 phases of implementation.
Project phase I – commissioning of the capacities for pilot-industrial production of quartz middlings for the annual program of 500 t/year. Erection and start-up and adjustment work is currently underway).
Project phase II – commissioning of the capacities for production of solar-grade silicon and multisilicon for the annual program of 4000 t/year.
The cost of the project is: phase I = 5 000 thous. rbls, phase II = 15 000 000 USD.
     The merits of the project are:
     1. The technological justifiability of the project is supported by many years of research and development work done at the Institute of Geochemistry SB RAS in the field of searching the raw materials base of highly pure quartz raw materials, and refining processes of industrial silicon in melt and of obtaining polycrystalline silicon with columnar structure (multisilicon) protected by patents and forming the basis of the project.
     The technology that has been developed for concentration of quartz middlings has been successfully tested in a number of enterprises of Russia resulting in obtaining pilot lots (technological samples) of quartz middlings. The testing results were used to upgrade the flow chart of obtaining “solar-grade” silicon. The technology of obtaining multisilicon was tried out on growth furnaces of the Institute of Geochemistry and protected by patents. Multisilicon samples of scrap were obtained and tested for compliance with the requirements.
     2. The availability of the own raw materials base with sufficient balance reserves of high quality quartz raw materials, protected at TKZ, with purchased equipment for project phase I, the construction and erection  work at the completion stage, and with the existence of trained key specialists.
     3. The existence of preliminarily agreed-upon decisions as to the execution of design work related to the reconstruction of the OOO “AEMZ” industrial site (Angarsk) to accommodate the production facility for “solar-grade” silicon, and the ISC SB RAS industrial site (Irkutsk) to accommodate the production facility for multisilicon; as well as the designing and delivery by OAO “VNIIETO” (Moscow) of the 7 MW ore-smelting furnace with the gas cleaning system, and the delivery by OAO “KrasMash” (Krasnoyarsk) of equipment for growth and cutting of multisilicon ingots.
      4. The sales market for products of phase I has been formed in the process of conducting technological tests to pilot lots (technological samples) of raw materials. Tests of technological samples are promising and speak in favor of the competitiveness of the products under the project with the products manufactured by the firm Unimin (USA) of lota St + lota 4 quality.
     The planned production program is balanced with the need of major customers of quartz middlings, Russian enterprises. (OAO “PKhMZ” (Podolsk) – production of quartz crucibles for growing monocrystalline silicon – 150 t/year; OAO “Lisma” (Saransk) – production of lighting items – up to 2000 t/year; OAO “OChKS Plant” (Gus-Khrustalny) – production of  diffusion tubes  – up to 100 t/year; and FGUP “GKhK” (Krasnoyarsk-26) – production of quartz crucibles for growing monocrystalline silicon – up to 500 t/year).
     The internal need for the manufacture of quartz crucibles for growing multisilicon constitute up to 500 t/year.
     Export deliveries – formation of the market of microelectronics products – up to 50 t/year.
     The sales market for phase II products – multisilicon that ensure the efficiency of the photoelectric converter of current at a level of 13-15%, according to estimates made by Planetary Engineering Group Earth, increases every year by 25% and is predicted to reach 18 000 t by the year 2012, which is practically unlimited for the production volumes under the project.
     Proposal to the investor: It is planned to issue the charter capital of OOO “Quartz technologies” from 24 500 thous. rbls to 99 500 thous. rbls with the shared participation of the investor in the amount of 51.7% of the charter capital (contribution 51 500 thous. rbls). Furthermore, it is intended to utilize a credit in the amount of $18 000 000, with the repayment period of 4 years, at the interest rate agreed upon by the parties, and with the interest payment terms.
     There is a need for a bilateral discussion of the matter related to the investor’s withdrawal / further participation in the implementation of project phase III from the time of final settlement for phase II.
OOO “Siberian Cedar”
Organization of the production of flavonoides from Siberian larch timber waste
     The chief objectives of the project are:
·       to attract investments for technological reequipment of the existing capacities for logging;
·       to construct new facilities for outputting sawn timber using state-of-the-art equipment;
·       to carry out technological re-equipment of wood chemistry enterprises in Zima, Irkutsk region.
     The project is implemented within the comprehensive program of development of the wood chemical complex that includes the following technological stages and enterprises:
·       timber logging and forest rehabilitation in the volume of 400 000 cub. m per year on the territories of the Zima, Balagansk and Kuitun districts;
·       the enterprises specializing in sawn materials and finished products in the volume of up to 153 000 cub. m per year, with partial utilization of waste to obtain process heat. This enterprises includes the facilities for sawn materials in a broad range, and products based on cementing nonstandard sawn materials or on special orders;
·       the chemical enterprise specializing in deeper processing of wood waste to obtain a gamut of products: dihydroquercytine, oxalic acid, quercytine, industrial carbon, native resins (222 t/year), and arabinogalactane (770 t/year);
·       products of an ancillary nature: transport, and carrying out construction and repair work.
     The following parts of the project have been implemented to date:
     – The enterprise has been set up for timber logging; capital expenditures in the amount of 14.3 US dollars have been incurred.
     – The enterprise for wood processing has been set up and modernized; capital expenditures in the amount of 22.4 US dollars have been incurred.
     Equipment of Italian and German manufacture has been introduced in the enterprises. In spite of the high technology equipment in use, the volumes of waste (as large as 40%) are significant, starting from the root system to timber sawing waste.
     The technologies of the third part of the project will permit an almost 100% processing of waste to obtain a broad gamut of products.
    Raw materials for this range of products are provided by lignine and waste of large wood and other coniferous tree species.
     To implement the project it is planned to utilize the idle facilities of the Zima plants: the hydrolysis plant and the colophony-extraction plant that were previously based on similar chemical-technological processes using wood as raw material.
     The selection of  the above-mentioned facilities is based on results from analyzing the affinity of technologies, the raw materials used, the design features of buildings, and of a part of equipment.
     In accordance with the implementation schedule of the comprehensive project, the commissioning periods of the facilities are planned to be as follows:
     – dihydroquecytine – 3.3 t/y (2002-2004)
     – oxalic acid – 50.0 thous. t/y (2005-2008)
     – industrial carbon – up to 50.0 thous. t/y (2003-2005)
     – quercyne – 30.0 thous. t/y (2004-2005)
     – native resins – 22.0 t/y (2003-2004)
     – arabinogalactane – 70.0 t/y (2003-2004)
     – dihydroquercytine – 30.0 t/y (2006-2008)
     In accordance with the estimated expenditures, the cost of the project is estimated at 26.7 million US dollars, including the production of dihydroquercytine – 3.156 million US dollars.
     The spheres of application of products of the chemical complex:
     Dihydroquercytine – food industry, manufacture of biologically active additives.
     Native resin – raw material for the pharmacological industry, manufacture of turpentine, tailic oil, colophony, etc.
     Arabinogalactane – raw material for the manufacture of  medical preparations, fermentative synthesis, manufacture of composite and expensive paints, and manufacture of high quality paper and pressboard.
     Native wood bipolymer – raw material for the manufacture of feed for cattle, manufacture of monocrystalline cellulose pulp, activated carbon, etc.
     The period of recoupment of the projects is 2-3 years, and the net profit amounts to 188 292 thous. US dollars.


Appendix 7.
Name of enterprise
Place of project
Essence of the project
Project cost,
Timber-industrial complex
1. Ust-Uda
“Obtaining of electrical and thermal power from logging waste in the village of Anosovo, Ust-Uda district”
The goal of the proposed project is to create the power generating installation burning biofuels based on wood cutting waste used to generate electrical and thermal power in the village of Anosovo, Ust-Uda district, Irkutsk region.
The project intends to replace the existing 800 kW diesel generator power plant DG-22M by the 750 kW power plant burning biofuels. This would supplant diesel fuel for the amount of 8629 thous. rubles.
600 thous. US dollars.
The borrowed funds amount to 343.7 thous. US dollars, or 57.3%.
Period of recoupment:
15 months.
Net value proceeds NVP – 809.8 thous. US dollars.
Investment profitability index PI – 1.22.
Internal rate of profitability IRR – 44.7%.
2. OOO “Sibtara” “Manufacture of 3-5-ply corrugator and corrugated containers from it, and bumpy pads for eggs”
The goal of the project is to set up in the city of the enterprise for manufacturing corrugators and packing containers from it. The project foresees the acquisition of the production base and a set of process equipment for manufacturing products. Within the framework of the project, it is intended to manufacture and sell the following products:
– corrugator – 35 — thous. sq. m per year;
– corrugated containers of 16 names – 48 593 thous. pcs per year;
– paper bags – 4 680 thous. pcs per year;
– bumpy pads – 9 720 thous. pcs per year.
42 mln rbls, own funds – 12 mln rbls, borrowed funds – 30 mln rbls.
Period of recoupment: 2.7 years.
Net profit for the last year of the accounting period after repayment of credit: 56.2 mln rbls.
Mining industry
3. Group of companies “New Reality” “Gold mining by the method of underground leaching”
The method holds good prospects in the Bodaibo district, irkutsk region, and in the Republic of Buryatia, where there are numerous deep-seated placers with complicated mining-technical conditions (high water content) which are unprofitable for open-cast or underground mining.
This method is successfully employed in the extraction of uranium, from where it was assimilated to gold mining. Financial calculations of chemical leaching of gold in the seam were carried out for  a particular placer. The placer lies in the Bodaibo district, Irkutsk region. The length of the industrial profile of the reserves of the calculated placer is 2865 m, the mean width is 30.3 m, the mean occurrence depth  of the seam is 57.84 m, the mean thickness of the adjusted seam is 2.7 m, and the mean content is 15.162 g/m3. The gold reserves are 1940.7 kg by category C1+C2. In the area BL. 11, 2, 16 of length 820 m, the richest area is with the mean metal content of 56.304 g/m3.
Sum of investments –
 1 746 000 $
Period of recoupment
2.5-3 years.
Annual profit for full capacity (year 4) – 2 000 000 $ per year.
Method of attraction of funds – credit or sales of the interest in the project.
Projected annual volume of extraction – 256 kg.
Break-even point – 33 kg.
4. Cheremkhovo District ADMINISTRA-TION of the municipal formation “Mining of bituminous coal on the manifestation Golumet through a stripping with the output of 10-20 thous. t per year”
There is a possibility of setting up a new coal mining enterprise on the basis of the Golumet manifestation, with the expected reserves of 300-350 thous. t. Such an enterprise would make it possible to improve the situation in the coal supplies of the said sector plus provide new jobs ranging from 8 to 11.
The promising prospects of the activity is supported by the effectively operating analogous strippings in the Zima, Zalari, Nukuty and Ekhirit-Bulagatsky districts.
Needs for investments:
1. Geological prospecting 4000 thous. rbls.
2. Acquisition of technical means 6450 thous. rbls.
3. Construction of the dwelling house 250 thous. rbls.
Total: 10700 thous. rbls.
Prime cost of extraction of 1 t of coal: 209.3 rbls.
Construction complex
5. ZAO “Akademstroi-
“Construction system Ekotermozhilstroi”
·       To create in the region new production capacities for the manufacture effective building materials on the basis of artificial pumice (cellular concrete of non-autoclave hardening).
·       To create a new architecture-construction system of dwelling houses of a new generation.
·       To ensure the construction of modern dwelling low-storied houses of the Irkutsk City site.
375 mln rbls.
Borrowed funds: 75 mln rbls.
Own funds: 300 mln rbls.
Period of recoupment – 1.5 year.
Net profit for the last year of the accounting period – 15 mln rbls.
“Organization of the manufacture of sandwich panels from local materials for dwelling low-storied buildings”
The goal of the project is to create the production capacities with the use of new technologies and materials capable of meeting the region’s needs for rapidly constructed and inexpensive housing.
The present project foresees organization of the manufacture of fully prefabricated sandwich panels for the assembly of dwelling low-storied buildings.
20 mln rbls, required amount fo investments 10 mln rbls, own funds – 10 mln rbls.
Period of recoupment – 2 years.
Net profit for the last year of the accounting period – 10 mln rbls.
“Organization of the manufacture of building and packing materials, and wood processing at the sites of OAO “Cheremkhov-
The open joint-stock company “Cheremkhovkrovlya” is located at 150 km from Irkutsk in Cheremkhovo. In 2004 the enterprise was declared insolvent (bankrupt), and the proceedings in bankruptcy were initiated in respect thereof for a period of 12 months.
The extensive production areas make it possible to accommodate on the territory of the enterprise several production facilities.
Industrial conversion of the plant is possible, both partial and complete to switch over to other kinds of building materials.
These would include such production facilities as the manufacture of  gypsum pressboard, wall materials, dry building mixtures, corrugator, deep processing of timber, and other building materials at the investor’s discretion.
There is all that is necessary for this. The proximity to the Bratsk water reservoir whose shore areas provide over 500 thousand m3 of timber logged per year, permits sawn timber to be delivered by the cheapest means of transport, the river transport. The distance from the port in Svirsk to the plant is 20 km.
The enterprise OAO “Cheremkhovkrovlya” is offered for sale. The sale shall be by a single lot. The sales price is 12 million rubles.  
8. OOO “DV Sibir” “Construction of the plant for the manufacture of building structures of cellular concrete using the “HEBEL” Germany technology”
The project foresees the construction of the panel plant HEBEL 8500 for the manufacture of wall and reinforced elements, with the capacity of about 100 thous. cub. m per year, which corresponds to about 100 thous. sq. m of the total area. According to the analysis made by the enterprise, the HEBEL technology and know-how was recognized as the most efficient for the conditions of the Irkutsk region.
 The use of  porous concrete, produced by this technology, makes the construction cost substantially cheaper, provides saving of material, lowers the labor content of construction work, and reduces the period of construction.
20 mln US dollars.  
9. OOO “Elstream” “Organization of the production of ornamental stucco moulding elements for finishing interiors and faces of buildings”
The project contemplates the creation of production facilities with the use of new technologies, capable of providing a broad selection and  high quality of manufactured products for finishing internal rooms and faces of buildings in the “classic” and “empire” style.
The project provides for the manufacture of a broad range of stucco moulding products (gypsum, and cement mixtures with additions of biopolymers) for internal and external finishing of rooms, architectural elements of face finishing, facing stone (imitation of natural stone), and products from the landscape development of territories.
4.8 mln rbls.
Own funds 1.6 mln rbls.
Borrowed funds 3.2 mln rbls.
Period of recoupment – 2 years.
Net profit for the last year of the accounting period after repayment of credit – up to 2.6 mln rbls.
10. MP
plant “Khimik”
“Organization of the production of water-dispersive paintwork materials”
The production facilities are planned to be placed at the production base of the municipal enterprise Cheremkhovo plant “Khimik”. The production infrastructure is already available in the plant. An approximate annual output would amount to 1536 t of paintwork materials, and the volume of marketable products – 101 183 thous. rbls (in terms of 128 t per month at the price of 13.14 rbls kg).
10.2 mln rbls.
Own funds 1.7 mln rbls.
Borrowed funds 8.5 mln rbls.
Period of recoupment – 2.6 years.
Volume of annual proceeds – 40.0 mln rbls.
Net profit – 4.6 mln rbls.
11. OOO “Baikaltermo-dom” (Tulun glass factory” “reconstruction of the Tulun glass factory”
The goal of the project is the modernize the production of glass containers and window (sheet) glass on the basis of the Tulun glass factory. The glass factory has its own quarry of quartz glass sands, as well as a well-developed infrastructure of auxiliary service shops and production facilities.
In addition, there is a significant practical experience of maintaining the glass melting process in furnaces fed by electrical power.
The capacity of the enterprise is 54 mln pcs of glass containers, and 1560 thous. m2 of window glass per year.
In 2002 the factory was declared insolvent (bankrupt); the proceedings in bankruptcy are open till July 2003.
At the present time the owner of the factory has taken the decision about the sale. The tentative value is 34 mln rbls, but it is not an ultimate one and is subject to a reduction.
200290 thous. rbls.
Period of recoupment – 42 months.
Net value proceeds – 125623 thous. rbls.
Profitability index 1.65.
12. Irkutsk A.E. Favorsky Institute of Chemistry, Siberian Branch, Russian Academy of Sciences “Development of the production technology for organic mineral fertilizer based on hydrolysis lignine”
The goal of this project is to develop the environmentally safe industrial technology for accelerated processing of lignine – cellulose waste with the use of the association of microorganisms to obtain high quality mineral fertilizer and conducting marketing research for the purposes of its introduction. 500 thous. rubles. Period of recoupment – 3 years.
13. “New preparation with a broad spectrum of action “Metropol”
For treating against anaerobic infection, the comprehensive prolonged drug preparation metropol has been developed. 24600 thous. rbls ($ 820 thous.) Period of recoupment – 2.5 years.
14. OOO
plant”, Irkutsk A.E. Favorsky Institute of Chemistry SB RAS
“ organization of the manufacture of efficient drug preparations having no equal in the medical practice”
Should the project be successfully implemented, it is planned to launch the industrial-scale output of the following medical drug preparations: TRECREZAN, FERACRYL, and MIVAL 25 mln. rbls.
Period of recoupment – 2 years.
Net profit for the last year of the accounting period after repayment of credit: 22.5 mln rbls.
15. OOO
“Construction of the pilot integrated plant for solid household waste recycling (ZPBO), Sverdlovsky district, Irkutsk
The goal of the project is to set up a state-of-the-art integrated system for solid household waste (SHW) recycling from the housing-and-municipal system of the city.
This comprehensive method makes it possible to isolate at the early stage as much as 40% of secondary raw materials ready for sales in the emerging market of secondary resources. The remainder of SHW would be recycled using natural biotechnological methods to obtain products required for agricultural development:
biohumus – fertile humin component of soil that is the product of metabolism of rain worm industrial species;
protein feed addition for cattle breeding obtained from the surplus biomass of worms.
As a result, it is planned to recycle 99.5% of SHW.
127 mln rbls.
Own funds – 17 mln rbls (patent, parent live-stock).
Borrowed funds 110 mln rbls.
Period of recoupment – 4.5 years.
Balance-sheet profit 60 mln rbls.
16. GUP UK 272 / 15 GUIN of Russia’s Ministry of Justice for Irkutsk region “Manufacture of rubber crumb and powder from used automobile tyres with textile and metal cord”
The project foresees a processing of used automobile tyres using the method of mechanical grinding, and the manufacture of rubber crumb and powder, with the end product to be subsequently used in other productions.
The place of project implementation – the territory of the industrial area of the enterprise of the Institution UK-272/15.
By recycling tyres, it would be possible to obtain: rubber powders, rubber crumb, cord fiber, and metal cord. Rubber powders are used in the manufacture of tyres and rubber-industrial products. Rubber crumb is employed in the manufacture of rubber materials of building, industrial and household purposes, as well as in the manufacture of road and sports pavements. Textile cord fiber is used to manufacture heat-insulating materials. Metal cord is utilized to manufacture heat-insulating materials.
82 500 thous. rbls, required amount of investments – 50 000 thous. rbls, own funds – 32 500 thous. rbls.
Period of recoupment – 4.1 years.
Net profit for the last year of the accounting period after repayment of credit – 19 456 thous. rbls.
17. OOO
“Organization of the recycling system for the polymer component of household and industrial waste to obtain polymer products of industrial and civil purposes”
The goal of the project is to utilize secondary raw materials from polymer materials of household and industrial waste for the manufacture of highly profitable industrial and civil products in the form of plastic tubes, lining material and equipment for biological purification works. It is planned to implement the project in Angarsk using the existing free industrial areas with a developed engineering infrastructure of OAO “Angarsk Petrochemical Company” and the municipal unitary enterprise specializing in collection and recycling of solid household waste (SHW). 1500 thous. rbls, own funds 250 thous. rbls.
Period of recoupment – 1.17 year.
Net profit for the last year of the accounting period after repayment of credit – 5 800 thous. rbls.
Food and manufacturing industry
18. OAO
“Tulun hydrolysis plant”
“Production of absolutized alcohol”
Production of absolutized alcohol in the existing shop for the manufacture of industrial ethyl alcohol. Absolutized alcohol is used in the medical, perfumery, radio electronics and other sectors of the industry.
35 mln rbls.
Preferred form of investment – investment credit, interest on credit 1/2 refinancing rate, period 1/2 year, guarantee – pledge.
Period of recoupment – 3 years.
Net profit for the last year of the accounting period after repayment of credit – 48 mln rbls.
19. OAO “Tulun hydrolysis plant” “reconstruction of the building for production of vodka”
Production of liquors, including vodka. Vodka products GOST 12712-80, approximate annual output 2 mln dl, production cost 60 a l. Main raw material for production  is food alcohol produced in the own enterprise.
For the production of alcohol, it is planned to use raw materials from agricultural enterprises of the Irkutsk region, and glass containers would be delivered by the Tulun glass factory.
60 mln rbls.
Preferred form of investment – investment credit, interest on credit 1/2 refinancing rate, period 1/2 year, guarantee – pledge.
Period of recoupment – 4 years.
Net profit for the last year of the accounting period after repayment of credit – 15.2 mln rbls.
20. ZAO “Parus” “Construction of the plant for bottling of pure drinking water from Lake Baikal”
The project foresees the construction of the enterprise to specialize in bottling of drinking water from Baikal. The project anticipates investment of financial resources in the amount of 4800000 $ US, which are planned to be directed toward acquisition of equipment for the manufacture of PET bottled with a capacity of 0.5-1.5 liters, the bottling line with the capacity of 6000 bottles per hour, and the packing line for finished products.
The remainder would be used to replenish circulating funds.
The range of manufactured products at the early stage would include aerated and non-aerated drinking water. Subsequently, it is planned to produce on this basis drinks with the use of raw-materials capabilities of the Baikal region.
Capital investments for the project – total 4.8 mln US dollars.
Net discounted profit (minusinflation and plus risks) 7465 thous. US dollars.
Profitability index of investments 1.56.
Internal profitability rate minus inflation and plus risk 143%.
Period of recoupment 1 year 7 months.
21. OOO
The present project foresees organization of the manufacture of  Baikal oilfish (C. baicalensis (Pallas)) fat. The bioorganic chemistry sub-chair at the Buryat Branch SB RAS has carried out pharmacological research on Baikal oilfish fat using laboratory animals. The findings obtained indicate the desirability of bringing the results obtained to the phase of introduction and continuing the related investigations in conjunction with exploration and development of new pharmaceutics and cosmetics.
280 000 .
Conditions – credit for 2 years at 27% per annum.
Period of recoupment – 17 months. Net value proceeds – 206.4 thous. US dollars, internal rate of return, IRR – 135.7, profitability index 1.73.
22. ANO “Irkutsk agency for business development” “Creation and development of the business – innovation incubator in Irkutsk”
Creation of the structure capable of providing the most efficient comprehensive support to small business entities in the innovation sphere during the start period.
The incubator would provide favorable conditions for successful business activity during early stages, which would augment the chances to survive for small enterprises. The chief purpose of the business incubator involves providing initial support to small business, rendering assistance to entrepreneurs, who desire but are unable to independently launch their own business, incur significant capital expenditures for  starting business, and need comprehensive assistance in order to secure a faster development.
17.5 mln rbls.
Borrowed funds 16.5 mln rbls.
Own funds 1.0 mln rbls.
Period of recoupment – 4.5 years.
Net profit for the last year of the accounting period after repayment of credit – 6.39 mln rbls.
23. OOO “Techcenter” “Supermarket of the “Cash&Carry” format with 2500 sq. m of floor space”
The project provides for the construction in the city of Angarsk of a supermarket for trading in foodstuffs and related commodities at low prices. Funds are necessary for the completion of the construction of the supermarket and for the creation of the trademark. As of today, sales equipment has been paid for. In the future, it is possible to maintain cooperation with a foreign partner in the sphere of deliveries of foodstuffs and related commodities. 1500 000 US dollars.
Period of recoupment – 3 years.
Net profit for the last year of the accounting period after repayment of credit – about 500 000 US dollars.
24. OOO
Territorial agency for business development “Bookkeeping service”
“Creation of the social-economic center”
The present project foresees the modernization of the existing territorial agency for business development, and the creation on its basis of the social-business center. Services of the center include distance training to entrepreneurs, and physical persons who have temporarily found themselves unemployed, protection of the rights of entrepreneurs, extension of the services related to the keeping of bookkeeping, and automated processing of financial statements. The project would render services to all sectors of the economy, including entrepreneurial activity.
1878 thous. rbls.
Of them, uncompensated funding – 1244 thous. rbls.
Period of recoupment – 3 years.
Net profit for the last year of the accounting period after repayment of credit 776.9 thous. rbls.
25. OOO firm “Avtospets-detal” “Development of enterprises for the production of medium-size motor-road bridges and specialized automobiles”
The project foresees the production of medium-size motor-road bridges and a broad gamut of special-purpose automobile modifications for municipal services, light and food industries, small business, and recreation, on the basis of the chassis of the GAZ-3307 and GAZ-33021 automobiles.
13.8 mln rbls.
Own funds – 1.7 mln rbls.
Borrowed funds – 12.1 mln rbls.
Period of recoupment – 1 year.
Volume of proceeds per annum – 61.1 mln rbls.
Net profit – 10.8 mln rbls.
26. OOO
Garment and knitted wear factory
“Creation of the garment factory in the city of Ust-Ilimsk for the manufacture of small-scale production of men’s and ladies’ wear , as well as of the knitted wear facility at the shop-showroom “Venets”
The goal of the project is to upgrade the shop-showroom “Venets” by converting it into the garment – knitted wear factory for the manufacture of small-scale production of men’s and ladies’ wear. 500 thous. rbls.
Period of recoupment – 1.8 year.
Net profit for the last year of the accounting period after repayment of credit – 311.7 thous. rbls.
27. ZAO Tourist complex “Russia – Baikal” “Construction of the floating tourist hotel with support-lifting device “Russia-Baikal” for 30 persons
Lake Baikal
The proposed project would allow a combination of the pre-existing tourism infrastructure  on the lake’s shore and water tourism into a single program, expanding the geography of tourist routes. It is a novel method in the sphere of tourism and a new application in the field of  shipbuilding. This project includes a useful model of a floating hotel, equipped with the support-lifting device to be installed in the near-shore area of the water body. Communication between the hotel and the shore would be effected through a passage bridge.
It is planned to install the hotel on the ground in the prescribed place, along the lake’s shore area: Posolsky sor, Barguzinsky and Xhivyrkuisky gulfs, Maloye more, etc.
1.697 mln US dollars.
Period of recoupment – 3.06 years.
Net profit for the last year of the accounting period after repayment of credit – 553.7 thous. US dollars.
28. Nongovern-mental
enterprise “Social – ecological expedition “InterBAIKAL”
“Natural – historical tourist complex Baikalian – Mongolian Asia” on Olkhon island”
Olkhon island
The goal is to create a special tourist territory on Olkhon island. Combination of unique landscapes and the sacred essence of Olkhon with a deeply ecological nature of shamanism create unprecedented conditions for setting up a natural – historical preserve where to promote ecolo-ethnographic tourism, and the “ideological” basis for the routes on the island would be provided by topics from Buryat myths. From 4 to 6 mln US dollars, of them, 30% are anticipated from the state support.
By the time of completion of the project, the number of visitors  of the natural; – historical complex would be as large as 100 to 150 thous. tourists per year.
Average cost of a tour day – from 30 to 40 US dollars,
average tour duration – 4 days.
29. Shelekhov City Administration “Organization of the sports – tourist center”
The base of the project is provided by the territory of the former young-pioneer camp “Orlenok”, with about 4 ha of the total area, located on the Olkhinskoye plateau along the Bolshaya Olkha river. The project foresees the reconstruction of the camp and its conversion to the sports-tourist center, rigging of the center with modern equipment, sports-tourist appliances, and preparation of hiking routes. As of today, a part of investments (funds of the local budget) 553 thous. rbls. has begun to be utilized. 6770 thous. rbls., of them, own funds 2555 thous. rbls., funds of the local budget – 623 thous. rbls., funds of the external investor – 3592 thous. rbls.
Period of recoupment – 2.42 years.
Net profit for the last year of the accounting period after repayment of credit – about 4 000 thous. rbls.
Agro-industrial complex
30. OOO
“Bookkeeping service”
“Goose breeding farm”
The project provides for breeding and rearing of geese in the leased production areas of the farms of the Cheremkhovo district with the use – on the rights of limited and unlimited uncompensated use – of arable lands registered in Goszemzapas (State Land Reserves) or on the rights of limited uncompensated (compensated) lease. 5340 thous. rbls., of them, 4200 – budgetary funding in the form f a budgetary credit and  compensation of interest on the use of borrowed funds, own funds – 570 thous. rbls.
Period of recoupment – 1 year.
Net profit for the last year of the accounting period after repayment of credit – 4408.1 thous. rbls.
Other sectors
31. OAO Irkutsk international exhibition center “SIBEXPOCENTRE” “Second phase of construction (expansion with partial reconstruction)”
The project foresees the construction of the main exhibition complex of the pavilion in front of the existing one, construction in the interfaces between them, and the new construction in the rear of the area.
Construction of  the landing stage and a umber of auxiliary structures would create a single technological whole – from the delivery, warehousing and mounting of exhibits to arrangement of exhibitions and presentation, and related services.
The basis of the project is formed by the use of state-of-the-art light metal structures and quality materials for external and internal finishing, and novel engineering and technological solutions.
8887 thous. US dollars, including 8221 thous. US dollars – for the completion of the construction and reconstruction of the exhibition complex, $666 thous. US dollars – acquisition of exhibition equipment, and computer and office equipment.
Period of recoupment – 36 months.
Net profit value – 2573.7 thous. US dollars.
Profitability index (PI) – 1.26.
Internal rate of return (IRR) – 19.96%.
32. OAO “Siberian porcelain” “Manufacture of competitive porcelain products”
Usolye district
The project foresees the conversion of process furnaces and boilers from liquid fuel (boiler oil) to producer gas in order to reduce the prime cost of porcelain articles, heat energy for heating the village of Mishelevka, exploitation of the opencast coal colliery, and promotion of other kinds of activity: extraction of loam, manufacture of bricks, logging and working of commercial timber. 76.1 mln rbls.
Period of recoupment – 3.5 years.
Net profit for the last year of the accounting period after repayment of credit – 17 mln rbls.
33. OAO Garment firm “VID” “Reconstruction and technical upgrading of the production facilities of OAO “Garment firm “VID”
The project foresees the reconstruction of the existing production specializing in sewing men’s classic suits, which would allow an improvement of the quality of products to European standards and increase the competitiveness of products. Funds would be utilized to purchase and install equipment from firms producing sewing equipment.
5 mln rbls.
Own funds – 3 mln rbls.
Borrowed funds – 2 mln rbls.
Period of recoupment – 2 years.
Net profit for the last year of the accounting period after repayment of credit – 3750 thous. rubles.
34. ZAO “Taiga – product” “Manufacture of health-improving products on the basis of medicinal herbs from ecologically clean areas in the Prebaikalia and East Siberia
The project foresees an increase in the sales volumes of ZAO “Taiga-product”, which requires investments in the amount of 20 mln rbls to be utilized for the promotion of products in Moscow and in the Moscow region, as well as for sustaining the demand in the already exploited areas. Investments would be fully compensated as early as the year 2006.
The mission of the enterprise is to introduce into the man’s everyday life products based on natural law materials within the state program of health improvement of the nation. In its activity, the enterprise drawn on the latest scientific research in the field of modern medicine and pharmacology.
The production process is effected using specially developed equipment, with the use of manual labor. The enterprise’s activity primarily focuses on wholesale drug medicines warehouses, drugstore networks, drugstores, specialized shops for health, health-improving institutions, as well as on the end consumer.
20 mln rbls.
Period of recoupment – 2 years.
Net profit by the year 2008 – 47.743 mln rbls.