А.  Project opportunity description

А1. The project name

(a) The short name:  

Starting the production of cardan shafts for cars
equipped with the joints of equal angular velocity and driveshafts

(b) The full name: 

Starting the production of cardan shafts for cars
equipped with the joints of equal angular velocity and driveshafts

(c) Brief description : 

Setting up the production of cardan shafts for cars
equipped with the joints of equal angular velocity and driveshafts.

 А2.  The project state:

Find below the stages which have been realized in
accordance with this project:

all the necessary scientific and technical,
research and development works done;

working design documentation worked out;

the lot of sample cardan shafts for cars equipped
with the joints of equal angular velocity and driveshafts produced and
positive findings got.

А3.The participating organizations and their role
(contact persons, phone, fax, e-mail, Internet page):

“Belcard” Open Joint-Stock Company -object of
implementation;

Republic of Belarus

230026 Grodno, 38 Schastny Street

Victor Ivanovich Kravchenko-Manager

Tel.: (8 10 375 152) 52 41 00; tel/fax (8 10 375
152) 52 41 01 (reception room);

Ghenady Alexandrovich Kostiukovich-Scientific and
Technical Centre, Director

Tel.: (8 10 375 152) 52 41 18;

www.belcard.grodno.by

E-mail:

belcardmarket@tut.by

 А4.  The project description:

Within the limits of realization of the investment
project one foresees setting up the production of cardan shafts for cars
equipped with the joints of equal angular velocity and driveshafts. The
project realization will require the additional equipment of 110 units
of modern equipment. Total value of the equipment including VAT will
make 24 397,1 thousand USD.

А5.  Preconditions / history / general program /
connected or similar project: 

“Belcard” Joint-Stock Company has been continuously
updating the driveshaft and gimbal drives design. However, the major
task remains both optimization of the serial production and working out
of driveshafts of new prospective design.

The major attention in part of raising the
technical standard of the serial driveshafts is paid to lowering the
specific consumption of materials, improving the quality of complete
items, implementing of new materials and progressive technologies.

Among the major tendencies of cooperation with
automobile companies in Russia one should point out the woks for
driveshaft wheels and gimbal drives with the joints of equal angular
velocity. Based on the marketing research done on this topic one can
draw a conclusion that in case of mastering the mass output of the
joints of equal angular velocity “Belcard” JSC will get the possibility
to more widely extend the spheres of cooperation with the leading
producers of automobile facilities. That is why “Belcard” JSC has been
processing its work within limits of working off research and
development design of this shafts.

А6.  A brief description of influence on an
environment::

The realization of the project does not have
unfavorable ecological consequences.

А7.  Possible obstacles / problems / risk degree:

1. Risk of insufficient demand for the goods
produced.

2. Technological risks.

3. Risk of resources supply.

А8.  A term of project realization and compensation
(years):

Time period for project implementation makes 9
years.

Pay-back period makes 8.7 years.

А9. A project belonging to industry:

Mechanical engineering

В.  Capital expenses (the total investments
necessary for the project realization)

В1.  Physical components of the project

В2.Investments (cost),
thousand USD

Purchase and installation of equipment,
transportation costs included

20 675,51

VAT paid for realization of capital investments

3 721,59

Total:

24 397,1

С.  The origin of the capital source (owners,
partners, sponsors, etc.)

С1.  A source kind

С2. The sum, thousand USD

Own resources

-

D.  Required investments, lacking means

D1.  Financial lack, a kind of the financial helps
(credit, partnership, etc.)

 To realize the project they plan to take the
currency credit the value of which equals the value of the necessary
equipment to be purchased. The reason is financing gap.

D2.  Financing source

D3.  Type of financial action

D4.  The sum, thousand
USD

Means of investor.

Direct investment

24 397,1

Е.  Demand (customers) and income

Е1.  Type the customers / markets, volumes, prices,
income, estimated benefits / savings:

Major users of “Belcard” JSC users are the
companies of conveyer type producing automobile, autotractor,
road-building and agricultural facilities which use gimbal drives and
parts to them as complete items

Е2.  Income

Е3.  The sum, thousand
USD

Takings from sale (deducting the taxes from
takings) for the period of realization

143 370

F.  Operational cost

F1.  Components of costs, an amortization policy,
the organization of manufacture, etc.

Project realization assumes purchasing of new kinds
of raw materials and complete items, mainly, produced in the Republic of
Belarus and Russian Federation using of highly effective labour
potential (361 people), extra charge of sinking fund by linear method.

F2.  Expenses

F3.  The sum, thousand
USD

Material costs

53 708

Expenses for labor pay

23 112

Deduction for social needs

8 089

Amortization of major facilities and non-material
actives

13 017

Other expenses

512

Sales costs

2 399

Total:

100 837

G. The net profit

G1.  The volume of net profit

G2.  The sum, thousand
USD

Net income value (E2 revenues minus F2 costs minus
taxes from the income)

30 850

Н. Information source of the project

Н1.  The form is filled in by (whom, the name, the
position):

The economist of Scientific and Technical Center of
Belkard JSC

Tatyana Vasylievna Ghavrylenko

Н2.  The organization (the name and the address):

"Belcard" Open Joint-Stock Company

Republic of Belarus

230026 Grodno, 38 Schastny Street

Н3.  Phone \ Fax \ E-mail:

tel: 8-10-375-152-52-41-32, Email:

belcardmarket@tut.by

Н4.   Date:  

March 2008

Н5. Departmental belonging of the project:

The Ministry of Industry of the Republic of Belarus