А.  А. Project possibilities description

А1. Project name:

а. Short name:

Bus production factory

b. Full name:

Construction of bus production factory

c. Brief description:

The building of a bus production factory allows to increase production capacities of passenger vehicles in accordance
with the Program of Belarus automobile industry development, to create serial production of the most popular bus models, to increase quality
and to lower cost of manufacture of bus production, to enlarge export potential of Belarus, to organize additional work places, to reject
three - shift operating mode and to establish a research background of bus manufacturing for perspective bus models development

А2. Project status:

Preliminary development of technology is carried out at amalgamation factories, estimated costs are specifying, preliminary business plan is in progress, it is necessary to set production working area.

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

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

 The data analysis of MAZ bus sales and capacity of potential markets unambiguously forces to take measures to strengthen market positions and with the aim to keep these positions to stimulate the achieved production volumes. The mentioned actions are possible only under condition of flexible production, strong design and research complex taking into account the last achievements in science and engineering, and allowing keenly to response on mixed and conflicting users' demands on absolutely different markets.

 New factory manufacturing program provides bus production of large and extra large class in volume 2500 units per year.

 New bus generation will be max unified on frame and chassis elements which allow to organize its serial production on high tech level, to lower production cost and to bring down material charges.

 Assembly production will be organized at 4 independent lines with built-in frame grounding and painting chambers.

 Sub-assembly of bus units and assembly of own production items are provided to fulfil on separate areas located outside main assembly lines.

 Painting production will be located on two bus assembly lines and on powder painting line.

 After assembly busses will go into test area, bus development and distribution.

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

А6. Environmental impact summary:

The project provides use of technology which allows lowering ecological impact on surrounding environment.

А7. Possible obstacles / problems / risk assessment:

А8. Project implementation and payback period (years):

4 / 11,9

А9. Project industry:

Motor car construction

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

В1. Physical components:

В2. Capital investment, M$:

Capital outlays (equipment + building and assembly jobs + design work)

92,8

Cost for circulating assets

100,7

Total (sum should be equal С2+ D4)

193,5

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

D1. Financing required, type of financial assistance:

Credits, loans, Ministry of Industry innovative fund

D2. Sources of financing:

D3. Type of financial instrument:

D4. Amount, M$

Assets of banks

Credit

193,5

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

Not defined

E. Demand (users) and revenues:

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

Transport organizations of Belarus, Ukraine, CIS and other countries.
The sales analysis of MAZ buses and market capacity of Russia, Ukraine and other countries allows forecasting further steady growth of demand for passenger vehicles.
Costs for passenger vehicles are forecasted from 65 000 to 175 000 USD.

Е2. Financial sources:

ЕЗ. Revenues (sales) M$:

Revenue from sales

2 163 (USD million)

F. Operating and Maintenance Costs

F2. Cost item

F3. Amount, M$:

Material costs, remuneration of labour, taxes etc.

1 591,5 (USD million)

G. Net income

G1. Net income and value

G2. Amount, M$:

Net profit

571,5 (USD million)

Н. Project Information Source

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

Yushko Oleg Valerjevich, financial director

Н2. Organization (name and address):

JSC "Minsk Automobile Plant", Minsk, St. Socialisticheskaya 2.

Н3. Tel. \ Fax \ E-mail:

Н4. Date:

January 2010

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

Ministry of Industry of the Republic of Berlarus