А.  А. Project possibilities description

А1. Project name:

а. Short name:

Technical re-equipment of PA «Gomselmash»

b. Full name:

Technical re-equipment of PA (production association) «Gomselmash» for 2005-2010.

c. Brief description:

Project represents by itself combination of annual actions for reorganization of production
capacities without stop of working production for 6 years from 2005 till 2010 inclusive. As result of project
realization production capacities, created earlier with «inflexible» technologies, will be replaced with «flexible»,
that allows to respond rapidly to customers requests and to provide constant increase of production volumes, execution
of all parameters of social-economic development.

А2. Project status:

Project is on the realization stage.

А3. Organisations involved and their roles (contact persons, phone, fax, e-mail address, home-page):

PA «Gomselmash» - project initiator, 246004, Gomel,
Shosseinaya str. 41; fax 54-91-93, teletype 110115 «Алмаз», e-mail:
gomselmash@tut.by; 
http://www.gomselmash.by; borrower: Zhmailik Valery Alekseevich, general director, phone: (+375-0232) 58-90-93

А4. Project description (approach, objectives, components, outputs,
phases, duration, total financing, benefits, transition impact, etc.):

Application of the project for technical re-equipment by reorganization of production capacities
without stop of working production.

А5. Background / history / overall program / related or similar projects:

Object of PA «Gomselmash» activity is production and sales of grain and forage harvesting combines
and other agricultural machines, spare parts, consumers goods, execution of design and technological services, building
works, paying services.

А6. Environmental impact summary:

Application of progressive equipment and technologies will allow to reduce volume of harmful
rejections to environment, to reduce negative load to environment and to improve ecological situation in nearby region.

А7. Possible obstacles / problems / risk assessment:

Lack of credits for continuation of financing; non-stable deliveries of raw materials and components.

А8. Project implementation and payback period (years):

6 / 6

А9. Project industry:

agricultural machinery building

B. Capital Cost Items (investment requirements for the Project):

В1. Physical components:

В2. Capital investment, M$:

Costs for technical reequipment

80,5*

B3. Sub-projects by location:

B4. Project cost, M$:

Not provides

-

C1. Types of resources (grants, investments, equity/ownership, etc.):

Own funds

21,1*

D1. Financing required, type of financial assistance:

Required financing of investment costs.

D2. Sources of financing:

D3. Type of financial instrument:

D4. Amount, M$

Investors funds

Long-term bank credits (including currency)

59,4*

D5. Data about financial institutions involved into the Project
implementation:

JSC «BPS-bank», JSSB «Belarusbank», foreign banks

E. Demand (users) and revenues:

E1. Type of users/ markets, volumes, pricing, revenues, benefits/savings:

Main sales markets are Belarus and Russia, also products deliver to Ukraine, Kazahstan, Uzbekistan,
Moldova, foreign countries – Lithuania, Latvia, Estonia, Czech, Bulgaria, Serbia, China, Argentina, Iran.

Е2. Financial sources:

ЕЗ. Revenues (sales) M$:

Gain from products sales, works, services (without taxes and gain deductions)

1746,2*

F. Operating and Maintenance Costs

F2. Cost item

F3. Amount, M$:

Raw materials, fuel and energy for production:

868,6*

Staff expences:

330,7*

Amortization:

38,8*

Other:

378,7*

Total:

1616,8*

G. Net income

G1. Net income and value

G2. Amount, M$:

Net profit

45,5*

Н. Project Information Source

Н1. The form is completed by (full name and position)

Lis Dmitry Andreevich, deputy general director for financial questions

Н2. Organization (name and address):

PA «Gomselmash», Republic of Belarus, 246004, Gomel, Shosseinaya str. 41

Н3. Tel. \ Fax \ E-mail:

Phone: (+375-232) 58-90-93; fax: (+375-232) 54-91-93; e-mail:
gomselmash@tut.by

Н4. Date:

19.02.2009

Н5. The project is subordinate to/ under the jurisdiction of:

Ministry of Industry of the Republic of Berlarus