The Republic of North Ossetia−Alania

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The Republic of North Ossetia−Alania
The Republic of North Ossetia−Alania is located in the North Caucasus region of Russia and occupies about 8 thousand square kilometers (0,05% of total area of Russian Federation), 48% of which is the mountainous landscape.
702,3 thousand people reside on the territory of the republic (0,5% of the total population of Russia), making it one of the most densely populated provinces of the country (88,0 persons per square kilometer). About 70 percent of the population is urban. The capital of the republic is the city Vladikavkaz (314,5 thousand). Other sizeable towns are Mozdok (42,8 thousand), Beslan (35,5 thousand), Alagir (21,5 thousand). The population is multi−ethnic: Ossetians — 62,7%, Russians — 23,2%, Ingush — 3%, Armenians — 2,4%, Kumyks — 1,8%, Georgians — 1,5% and others.
Nature and climate allow the republic to successfully develop various spheres of production, and the mineral resources available on its territory create the necessary prerequisites.
Most widely spread mineral resources are polymetal ores, containing mostly zinc and lead. Of practical interest are exposed and prospective deposits of limestone, dolomites, marble, basalt. Inert construction materials (clay, sand, gravel, road−metal) are also intensively used. There are also oil fields on the territory of the republic, with prospective deposits of oil of about 10 million tons.
Republic of North Ossetia−Alania possesses substantial energy potential of its many mountain rivers, which is currently utilized by five hydroelectric stations. In 2010 a cascade of Zaramag hydroelectric stations will be completed with total capacity of 352 MWt and annual output of 812 million KwtHours.
Investment potential of North Ossetia−Alania lies firstly in the traditional branches of industry: polymetals, electronics, food industry, construction materials production, wood processing, textiles and others. At the same time we see tourism and recreational resorts, as well as hydroenergy production, as the most attractive spheres for development and investment.
To expedite the process of attracting investment the republic has developed an adequate legal base, that will provide for state support and an investor−friendly climate.
North Ossetia−Alania is the republic that has highly developed industry and agriculture. The major sectors of national economy are:
Non−Ferrous Metallurgy. Main products of local metallurgical plants are lead, zinc, tungsten, molybdenum, solid and heavy alloys based on them; rolled copper and nickel, magnesium alloys.
This branch of industry is represented by JSC "Electrozinc" and JSC "Kristall" that now belong to UGMC Holding, and also JSC "Pobedit", JSC "Magnit" and some others.
Chemical Industry. The main kinds of products by local plants are polymeric films, liquid and film photoresistors, lacquers and paints, sulphuric acid, moulded and plastic materials and products.
Mechanical Engineering and Electrotechnics. The assortment of products made by local producers: gas and electric stoves, electromagnetic contactors and starters, tractor headlights, motor generators, pneumatic starters and cylinders, transformer substation sets.
Electornics. The priority direction of development for local enterprises is scienceintensive production: microchannel plates for night−vision devices, resistors, gas−dis−charging and UHF−devices.
Construction Materials Production. The industry is represented by a number of plants producing reinforced concrete structures, metal constructions, plants producing bricks, dolomite, gravel, road metal, sand.
Food Industry. The main products are ethyl alcohol, vodkas, natural wines and champagne wines. The leading producers are JSC "Istok", JSC "Salyut" andsome others. Other important goods produced locally are corn starch, corn oil, molasses, glucose, dextrin. Fruit and vegetable processing is also well developed.
Besides, the industrial sector is represented by enterprises producing glassware for various needs, corrugated cardboard and cardboard packaging, railroad passenger carriage and freight wagon repairing plant.
Agriculture. The important crops are grain crops (wheat, corn, barley), as well as potatoes, sunflower, vegetables and some technical cultures. Gardening is being developed. Milk and meat production prevails in animal husbandry. In the framework of implementation of the national project seven farm complexes for 70 thousand head will be constructed.
Transport. The republic possesses a developed transport and communication infrastructure. The section of the North Caucasus Railroad, two major transcaucasus highways — Georgian Military and Transcaucasian Roads, Federal Highway "Kavkaz" — all go through the territory of strategically located North Ossetia−Alania, serving as a bridge between Russia and Europe on the one side and Transcaucasia and Middle East countries on the other. The airport of "Vladikavkaz" (Beslan) is successfully functioning and is an air transport juncture of federal and international importance.
Communications. The republic has the highest level of telephone service coverage in the North Caucasus region and in Russia. The programs, aimed at providing mobile telephone service to the mountainous areas of the republic, are under way, thus creating necessary prerequisites for development of tourism and recreation.
Tourism. In the mountainous Ossetia there is a number of year−round tourist bases and alpine camps. But the potential for development of tourism, mountain skiing and recreational resorts is far from being realized in North Ossetia−Alania.
There are over 250 springs of natural mineral and fresh water on the territory of the republic. Total daily capacity of these springs is over 15 thousand cubic meters. The mineral spring waters of Ossetia possess unique balneological properties, chemical and gas composition.
Educaton and Science. There are 13 higher educational institutions working in North Ossetia−Alania (6 of them are State universities and institutes), 217 of secondary schools, dozens of professional lyceums and colleges. The percentage of persons with higher education diplomas is one of the highest in Russian Federation.
Having taken into consideration the high level of scientific potential of the republic it was decided to create Vladikavkaz Science Centre of the Russian Academy of Sciences and the Government of Russian Federation, which will coordinate scientific and research work in the republic.
Healthcare. 31 hospitals, 110 day−clinics, 10 sanatoriums work in the republic. There is also Centre of Family Planning and Reproduction, Preventive Medicine Centre, AIDS Centre and the Territorial Fund of Compulsory Medical Insurance, which helps to make all the medical services accessible, — that found their place in the healthcare system of the republic.
Culture. There are 8 theatres, philharmonic society, chamber choir, state orchestra of national instruments, folk dance group, there are 3 museums, 159 libraries.
Sports. North Ossetia−Alania is by right considered the sports−oriented republic. 41 kinds of sports are practiced here. The most popular are: freestyle wrestling, arm wrestling, djudo, football, volleyball, fencing, weight lifting, track and field athletics, gymnastics, thekwando, karate and others.
The republican sports infrastructure includes 889 various facilities. The most important of them are "Spartak" stadium for 40 thousand spectators, "Manezh" sports complex for 3,5 thousnd spectators, freestyle wrestling training centre, sports complexes in Oktiabrskoe, Beslan, Alagir.
The Republic of North Ossetia−Alania, possessing exclusive economic, natural, cultural and educational potential, can be quite rightfully viewed as one of the most attractive regions for investment and fruitful cooperation in the south of Russia.

Creating the Mamison Mountain Recreational Complex in the Republic of North Ossetia−Alania
The Aims of Mamison Project Creating a world−class popular mountain ski resort with the pistes that will provide for training and practice of any level skiers and snowboarders. The area and the terrain enable international contests in many winter sports.
Sanatorium and spa therapy of various deceases using mineral waters. Mass invigoration

of citizens.

All−year resort; wide range of summer and winter sporting programs and amusements.
The possibility of summer−time training the sportsmen at the resort's glaciers. Creating

the necessary infrastructure for comfortable accommodation and resort servicing of up to

30 000 clients daily.
Equipping the resort with up−to−date mountain−ski facilities. Construction of up−to−date brace−up system to extend the ski season up to more than 200 days annually, depending of the piste routing.
Construction of the pistes summing up to more than 100 km followed by certification by

the International Ski Federation (FIS).

Application of the up−to−date environmental technologies for recovery and maintaining

the unique eco−system around Mamison gorge.

The Effects Excepted
Powerful push to mass mountain ski sports in the Russian Federation.
Creating the facility base for enhancing the sport achievements, for training the Olympic−level sportsmen, for highest−level mountain−ski and snowboard tournaments.
Enhancing the Russian spa and tourist industry in competitive abilities and service level.

The grow of investment attraction of the Republic of North Ossetia−Alania.

Creation of local jobs.
Improvement of the environmental situation in Mamison gorge, namely reasonable use of

the natural resources and forestation.

Restoration of the monuments of the Ossetian medieval architecture.

Mamison gorge is part of Tualet South intermontane depression located between Dividing and Great Ranges of Great Caucasus mountains.

Depression is formed by lower Jurassic shale and flysch sediments.
Mamison gorge is directed toward the south.
It is a wide mountain dale well excavated in the Upper Jurassic light clay slate by the
Quaternary glaciers and rivers.
Mamisondon is a main river; its valley is 1 800−2 000 m above sea level.

Smooth slopes of surrounding mountains are covered with small hardwood and softwood

copses, bushes, and, mainly, subalpine and alpine meadows.
The Main Features of Mamison Mountain Recreation Complex

Mamison gorge is 95 km away form Vladikavkaz.

The total pistes of only the 1st stage of Mamison Complex are 100 km minimum, the

longest ones being of 8 km.

Total area for skiing/snowboarding is 2 500 ha.
The areas suitable for building is more than 500 ha.
Mountain ski piste elevation difference is 1 900 to 3 200 m resulting to 1 300 m; this

enables official international contests.

Piste section (mountainside) slope is 10 to 40°.
All types of pistes, according to the international classification.
Several investment targets for building accommodation and service facilities.
The number of ski lifts for the 1st stage is 15 including all types: cabinet lifts, chair lifts,

platter pulls, belt elevators.

Lifting capacity is 5 to 6 thousand persons per hour.
The total number of the holiday−makers during the 1st stage of development is 10 000 persons. sanatorium/resort capacity is 1 700 rooms, 500 suits of rooms, 2 000 rooms in hotels, 800 rooms in cottages.
Guaranteed and stable snow blanket deeper than 1 m.
All conditions for fitting brace−up equipment.
Explored mineral water sources (15), some of which have wells.


Mean annual temperature in the region is +8°C, while minimum mean−monthly temperature over 6 snow−covered months is −5.5°C, maximum mean−monthly temperature over

July and August is +14.2°C; there are 250−300 sunny days per year.
Mean annual precipitation is up to 650−700 mm, 25% of which fall in winter.
One−time snowfall resulting in 0.5−0.6 m deep blanket is a usual matter in the region.
Extreme one−time snowfall is resulting in up to 3 m deep blankets nave been observed

(winter 1987−87).

Stable snow blanket up to 1 m deep at 2 000+ m remains until mid May, according to

perennial observations in Bubudon, Kozykom, Halatsa and Zemegon cirques.

No disastrous floods in Mamisondon river have ever been observed.
Average monthly water flow range is up to 1 m3/s, in winter months and up to 15 m3/s in

summer time.

In high water periods when precipitations are extremely high, water flow of Mamisondon

river similar with Zakka river, for short period can increase 100 m3/s.

The Status of Infrastructure Elements
Territory of planned development (Lisri, Kalak, Zgil settlements) is located at the distance in range 10−18 km from federal all−season road (TransKAM, transcaucasian highway) and connected with it by earth Military Ossetian road built in 1897 and functioned almost 100 years under different loads till mid−90−ties of the last century.
In 2007, the lead hydroelectric station (installed capacity of 15 MW), from among the

Zaramag chain, will be completed around the dam, 18 km from Kalak settle.

Since 2007 JSC "Gasprom" is constructing gas pipelines to South Ossetia. One of gas

distribution stations will be located in Zaramag settlement, low pressure gas pipeline is

planned from this station to mountain recreation complex "Mamison" to provide resort

with gas.

Mamison is a wide dale with suitable slopes extended to about 25 km. This mountain

area is unique as it possesses all the conditions required for all−year recreation activities

such as:

• snowboarding and skiing at the prepared slopes;

• landing to virgin snow (heliski);

• off−piste ski tours;

• all year round glacier skiing over tracks up to 3 km in length is very important for pro−

fessional sportsmen;

• the peaks of "4B" category for the climbers, the passes of various difficulty for the out−


• the river of the 2nd category for rafting;

•the slopes suitable for sky−surfing and paragliding;

• very suitable for mountain bikers;

• jeeping, horse riding, hunting;

• the sources of mineral water different in composition and properties for spa and climate

therapy in off−season.

Spa Therapy
There are several dozens of the mineral water sources in Mamisondon river valley south−

west to north−east on the both sides and in upper Zemagondon river; the largest of them

are: Kartasuar, Zgil, Kalak, Kamskho, Dvugoloviy (Double−headed), Lisri, the sources of Tibskiy and Zaramag mineral water fields.
Mineral water availability allows construction of several health resorts. Sanatorium and
SPA treatment will promote all−year round complex functioning.
The Economic Characteristics of "Mamison" Project

• forecasting time−frame — 20 years;

• investment period — 7 years;

• priority investment value is 15 278.3 mln. roubles (436.5 mln. euro), including:

• investments to basic infrastructure 3 278 mln. roubles. (93.7 mln. euro),);

• investments to mountain skiing tracks arrangement, 5 000 mln. roubles.

(142.9 mln. euro),);

• investments to construction of tourist and resort infrastructure — 7 000 mln. roubles.

(200 mln. euro),)

• net present value (NPV), 2 509 mln. roubles. (71.7 mln. euro),);

• internal rate of return (IRR), % — 17;

• return period (RP), years, — 15 from investing commencement;

• quantity of planned working places − 3 100;
Project Initiator

Tourism and Resorts Committee of the RNO−A,

1 Svobody Square, Vladikavkaz, RNO−A, 362040

Chairman of the Committee — Oleg V. Karsanov

Tel.: +7 8672 53 85 94, 53 11 81


Midget power plant constriction on small rivers of

The Republic of North Ossetia−Alania
Significant shortage of electric power and energy, high cost of purchased electric power at rich local hydraulic resources arises problem of midget hydropower industry development at the territory of the Republic of North Ossetia−Alania.
Midget power plant constriction will distinctly influence development of economy as in

areas of station construction, so as over the whole republic territory. Midget power plant constriction will contribute rapid and qualitative improvement of residential population living conditions, strengthening of production basis and set up conditions for tourism recreational industry.

Investigation of river network in Republic of North Ossetia−Alania found economically sound stream energy of mountain rivers of 5.2 milliard kW. More than the half of this stream energy is concentrated in Urukh river basin in favorable topographical and geological conditions (relatively stable water flow, steep slop of rivers with high specific rate of flow).
With relation to technical and economy practicability the priority direction is construction of midget power plants at Urukh river and its confluents. The government of RNO–Alania approved concept of Urukh river stream energy usage and layout of 17 power plants with total capacity 240 MW while annual output of more 980 millions kW, developed by scientific and technical association "INSET" (St. Petersburg). Construction budget is 8.53 milliard rubles.
Data collection regarding topographical and geological conditions for other mountain rivers in areas of planned midget power plant construction and their efficiency assessment are being carried out.
To induce investments to construction of power industry objects the Law of Republic of

North Ossetia−Alania was passed regarding preferential income tax treatment for electric

power plants putting into operation at the territory Republic of North Ossetia−Alania.
Besides these plants have got preferences regarding property tax and transport tax.
Power plant construction in Republic of North Ossetia−Alania is priority direction of republic sources of power supply based on development of own perpetual and clean water energy resources.
Investment project initiator:

Fuel and energy committee of Republic of North Ossetia−Alania,

Chairman of Committee — Peter I. Katsalov,

362040, RNO−A, Vladikavkaz, Svoboda sq.5,

phone.: (8672) 54−02−23,

fax: (8672) 54−07−88


Development of Oil Deposits of Kharbizhenskoe Oil−Field

on the Territory of the Republic of North Ossetia−Alania
Goal of the Project.

Reconstruction works of oil−wells of Kharbizhenskoe oil−field.


Mozdok District, Republic of North Ossetia−Alania.

Project Production Capacity.

Oil deposits on balance — 4 634 thousand tons.

Extractable deposits — 2 320 thousand tons.

Estimated production of one oil−well is 23−26 thousand tons a year.

Finished Product.

Sphere of Use.

Supplying oil and oil products.
Project Stage.

The research and estimation of development of Kharbizhenskoe oil−field

was done in 2000.

(by LLC "Orenburggazinform", LLC "Volga Ural NIPI Gaz").

Required Investment.

185 million rubles to start operation of one oil−well.

Indicators of Project Effectiveness.

Payback period — 2 years.

Possible Forms and Terms of Financing.

Direct investment.

Creation of a joint venture with the investor.
Project Initiator.

"Sevosetinneftegazprom" Concern,

General Director —

Kazbek V. Urtaev,

23 Sadonskaya Street, Vladikavkaz, RNO−Alania,

Tel.: +7 8672 51−94−95, 51−94−65

Technical Re−Equipment of JSC "Pobedit"
Goal of the Project.

Technical reequipment of JSC "Pobedit" aimed at expansion of production and increasing of competitiveness of its products.


1 Divizionnaya Street, Vladikavkaz, RNO−Alania.

Finished Product.

Hard alloys, round rolled refractory metal, powdered and lumped refractory metals.

Project Stage.

Major directions of re−equipment of existing enterprise have been determined.

Sphere of Use.

Any industrial productions and processes requiring the use of hard alloys, resistance to pressure, tear and wear under normal and high temperatures.

Required Investment.

810 million rubles.

Indicators of Project Effectiveness.

Payback period — 8 years.

Possible Forms and Terms of Financing.

Direct investment.

Possible controlling share of stock.
Project Initiator.

JSC "Pobedit"

General Director —

Felix V. Baroev,

1 Divizionnaya Street, Vladikavkaz, RNO−Alania.

Tel.: +7 8672 76−77−49

Fax: +7 8672 76−60−90
Construction of Mozdok midget power plant at 21 km of

Tersko−Kumsky Canal

Investment Project Purpose.

Construction and operation of midget power plant at 21km of Tersko−Kumsky Canal.

Finished Product.

Electric power.

Field of Product Use.

Electric power supply for domestic needs of economics and population.


The Republic of North Ossetia−Alania, Mozdok District (the boundary with Stavropol Territory).

Project Production Capacity.

7500 kW with annual average power generation — 25 mln. kW•h.

Project Stage.

Feasibility study.

Required Investment.

210 mln. rubles.

Indices of Project Effectiveness.

Payback Period — 5 years.

Possible Forms and Terms of Financing.

Direct investment.

Joint venture with the investor.
Investment Project Initiator.

Director of FSA "Operation Management of Tersko−Kumsky Waterworks

Facility " — Ivan M. Philatov,

RNO−Alania, Mozdok, Mira St., 33,

Phone: (86736) 3−78−08, 3−78−15

Chairman of Fuel and Power Committee,

RNO−Alania — Peter I. Katsalov,

RNO−Alania, Vladikavkaz, Svobody Square, 5,

Phone: (8672) 54−02−23, 54−07−88

Production of Microchannel Plates — "Mikrat"

Goal of the Project.

Enhancement of production of new generation microchannel plates for both

Russian and foreign markets. Expansion of the production facilities.

44 Nikolaev Street, Vladikavkaz, RNO−Alania.

Project Production Capacity.

1 000−1 500 million rubles a year.

Finished Product.

Microchannel plates of second to fourth generation, fiber−optic plates, detectors with microchannel and fiber−optic plates, microchannel fiber−optic transformers of second generation, night−vision devices.

Sphere of Use.


Project Stage.

Basic technologies have been implemented and industrial production of base assortment of microchannel plates has started.

Required Investment.

300 million rubles.

Period of Project Implementation.

Years 2007−2010.

Indicators of Project Effectiveness.

Payback Period — 2 years.

Possible Forms and Terms of Financing.

Creation of a joint venture with the investor.

Project Initiator.

LLC Vladikavkaz Technological Centre "Baspik",

General Director —

Soslan K. Kulov,

44 Nikolaev Street, Vladikavkaz, RNO−Alania.

Tel.: +7 8672 74−93−66

Expansion in Production of Chipped Dolomite

and Grounded Dolomite of Various Fractions

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