1. Description of project possibilities

А1. Name of the project

(a) Short name Technical rearmament of the phthalic anhydride manufacture with the power increase up to 48 thousand tons (b) Full name: Technical rearmament of the phthalic anhydride manufacture with the power increase up to 48 thousand tons at JSC «Lakokraska»

 (c) The project presupposes that the equipment will be bought for the reconstruction of the technological line «А», steam-condensation department (section) and distillation section. Realization of the project will afford to increase manufacture volume (quantities), phthalic anhydride realization quantities and export operations.

А2. State of the project

The project is at the realization stage. The first and the second stages of the project are already fulfilled (reconstruction of the crystallization and packing departments, reconstruction of the technological line «B»). We need the company-investor in order to finish the project (to reconstruct the technological line «А», steam-condensation department (section) and distillation section).

А3. The participating organizations and their role (contact persons, phone numbers, a faxes, an e-mail addresses)

(а) JSC «Lakokraska», Lida – borrowing company. The Republic of Belarus, Grodno Region, Lida, Ignatov Street, 71.

Director – Sidorov Ivan Petrovich, tel. (01561) 2-14-06, fax (01561) 2-27-55; (01561) 2-17-14.

А4. Description of the project

Introduction of the project at JSC «Lakokraska», Lida is realized by the reconstruction of the technological line «А», steam-condensation department (section) and new building of the distillation section.

А5. Preconditions / history / the general program / related or similar projects

JSC «Lakokraska», Lida has the experience of exploitation of the similar objects. Section (guild) of the phthalic anhydride manufacture has been working since 1976; as a result it needs to be reconstructed because of the moral and physical wear (deterioration) of equipment. So we make provision for purchase and installation of the modern equipment for the phthalic anhydride manufacture.

А6. Short description of influence on the environment

After the technical rearmament of the manufacture of the phthalic anhydride the maximal ground concentrations of nitrogen dioxide reduce to 0,02-0,03 parts of maximum-possible concentration. The maximal ground concentrations of other substances and sums do not change. Gross overfaults of the harmful substances from the sourses of JSC “Lakokraska”in the atmosphere reduce to  32,6 tons a year and make up on the whole 7246 tons a year. Worked out catalysts from the production of the phthalic anhydride are sent for reprocession, worked out oils are realized to the consumers. Oiled rag and oil-products wastes from the oil-traps are directed to burning. The weighted substances are taken out on the range of technical domestic wastes (TDW).

А7. Possible obstacles /problems/ level of risk

Assured sale of the product, both for own consumption, and on an export

А8.  Project implementation and recoupment period

The realization period of the project – 2009-2013, the period of getting compensation (reward) is 6,3 years.

А9. The branch of industry the Project belongs to

Petrochemical branch

В. Articles of capital expenses (the total investments necessary for realisation of the project)

В1. Physical components of the project (the equipment, works, services, etc. necessary for project realisation)

В2.Capital investments(million USD)

Work in building and installation

8,79

Equipment

16,60

Others

2,15

Total:

27,54

С.  Sponsor means / own means

С1. The origin capital  (million US dollars)

С2. Amount

(million USD)

Internal funds JSC «Lakokraska»

3,44

D. Necessary financial assistance

D1. Necessary financing, necessary type of financial participation

Lack of required funds is  24,1 mln USD. Type of financial assistance— crediting

D2.Sources of financing

D3. Type of financial instrument            (credit, loan, direct investment)

D4. Amount

(million USD)

Investor's funds

Credit, loan, direct investment

24,1

Е. Demand( consumers) and income

Е1.  Type of consumers /  markets, volumes, pricing, income, estimated benefit / savings:

During a few nearest years average annual growth rates for the phthalic anhydride will be 3,2% or 100,0 thousand tons.

JSC «Lakokraska» is planning to sell the phthalic anhydride at the following markets: South-Eastern Asia (China) –              13 000 tons, Europe – 15 000 tons, Russia – 12 760 tons, the Ukraine – 2 000 tons, the Republic of Belarus – 240 tons.

Е2. Revenues (Sales)

Е3. Amount (million USD)

39,3

F. Industrial expenses and updating costs

F1. Components of expenses, strategy of a cover of costs, the organization of production, the grant and etc.

To implement the project, the enterprise has unused production space, utilities and liner networks, power sources, and part of equipment required therefore. No need of new buildings and structures.

F2. Items of expenses

F3. Amount (million USD)

Raw materials and main substances, additional substances, salary, charges for supporting and exploitation of equipment, common processual charges, common economic charges, depreciation of the main facilities, administrative charges

30,6

G. Net Income Value

G1. Receipts E2 less operating expenses F2

G2. Amount (million USD)

8,7

Н. Sources of information for the project

Н1. The form is filled (Name, position):

Teslyukevich I.S., deputy of main engineer on perspective development and investments

Н2. Enterprise (name and address):

JSC «Lakokraska», Lida, the Republic of Belarus, 231300, Ignatov Street, 71

Н3. Tel.\fax\Е-mail:

(01561) 22755, (01561) 21714, support@lidalkm.by 

Н4. Date: 18.12.2009

Н5. Departmental accessory of the project: concern "Belneftekhim"