Address: 42-A Oktyabrsky Ave., 327018, Nikolaev, Ukraine.

Phone: (0512) 22-03-47, 50-21-47.

Teletype: 272131 "DISK"

E-mail: admin@zarya.comcentre.nikolaev.ua

Pattern of ownership: state-owned.

Chief of the enterprise: Mr. Vladimir Kholyavko, General Director.

Sector of activity: production of gas turbines, reducers and gas turbine equipment. At present the Association produces gas turbines of capacities 6,10,15,16,25 MW, gas turbine units, installations on their basis intended for transportation of natural gas and electric energy production, reducers for shipbuilding as well.

2. Contents of the project

The purpose of the project is the modernisation and reconstruction of the existing works with the aim of gas turbines (capacities 3,10,25 МW) production at the level of world standards in engineering, environmental protection and competitiveness, as well as of additional equipment for turbine installations at compressor stations being modernised.

The main consumers are joint-stock company "Ukrgazprom", Russian Concern "Gazprom", Navy of India, Iran. The other potential consumers of gas turbine engines are enterprises using gas turbines for producing of electric power in the independent conditions. Considering this fact, the total volume of sales can be divided between the national market (30 %), export to countries of the CIS (60 %), export to other countries (10 %).

The direct investments in fixed capital assets.

Under the project there have been executed: the project idea evaluation; pre-investment research; feasibility study; business-plan elaboration with the development of preliminary stages of the project; technical and calculation documents preparation and pre-production works.

Total value of the project is USD 64 000 thousand, including:

• pre-investment research and preparatory work- USD 6 500 thousands;
• technical designing and the new production development- USD 12 500 thousand;
• modernisation, reconstruction, expansion, new construction- USD 38 000 thousand;
• updating of circulating assets- USD 7 000 thousand.

Annual volume of production - USD 100 000 thousand.

Crediting of a part of the project connected with purchase of the equipment for acceleration of modernisation and pre-production- for the term up to 10 years.

Volume of investing:

• Own resources- USD 22 000 thousand;
• Credit funds- USD 42 000 thousand, including foreign credits- USD 30 000 thousand.

Net profit - USD 15 000 thousand.

Payback time of the investments- 7 years.