Sakhalin Oblast, Transport Industry Investment Project

Project  purpose: To create transport infrastructure for optimal scheme of coal transportation with the volume up to 8 M tons per year for export and for internal usage in the Far-Eastern region of the Russian Federation

Dration and stages of project implementation: 5,5 years. The most part of capital investments includes the construction of the railway Ilyinsk – Uglyegorsk and terminal in the port of Korsakov

Investment project participants: Administration of Sakhalin region, Investment fund of Russian Federation, OJSC «Russian railways», private investor

Current implementation stage of the project: In 2005 OJSC “DNIIMF” (Vladivostok) worked up “The basis of investments into development of the infrastructure for transportation of coal, mined in Uglegorsk region, beyond the Sakhalin island”

Essential project documentation: Technical assignment for development of “The basis of investments into development of infrastructure for the transportation of coal, mined in Uglegorsk region, beyond the Sakhalin island”

Availability of the final state, departmental and environmental permission: At present time (30.05.06) the Regional State department “The management of capital construction” is adjusting The Basis with the public authority of Sakhalin region

Property and/or liability rights of investor to the results of implementation of the project: State guarantees

Estimated cost of the project: 553 M Euro

Type of state support: Capital investments

Sources of financing (%): Internal funds - 6,7; funds of state budget - 63,2; funds of foreign investor - 30,1

Payback period: 5,7 years (simple payback period); 6,9 years (discount payback period); inner norm of the yield 22%.

Means of attraction of the investments: credit

Initiator of the investment project: Transport Department of Sakhalin oblast, 39, Communist pr., Juzhno-Sakhalinsk, 693011