The Republic of North Ossetia−Alania



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Communication

By July 1st, 2007 there have been 20806 telephone subscribers

(including 515 telephone subscribers for the first half of year 2007).
Density of telephone numbers for 100 residents — 23.86

(for comparison 28.0 — for the whole republic).


Industrial Agriculture Sector

By the beginning of 2007 there were 62514 hectares of tillage, 543 hectares of peren−

nial plants, 1392 hectares of hayfields and 4701 hectares of pastures in−cluding

farms. 69482 hectares of agricultural grounds in total.


The main crops of plant cultivation are spiked grains, sunflowers, mustard, rape, soya

bean and vegetables. Favorable soil and climatic conditions with proper material sup−

port allow for big crops, gardening and wine growing. Plan for intensive development

of gardens and wineries is developed in the district based on JSC "Druzhba". The fol−

lowing provisions are made: planting of perennial in amount of 216 hectares, fruit

storage rebuilding and capacity increasing up to 1 500t, construction of fruit process−

ing shop and purchasing of perennial care technics in quantity of 45 units. In future

this program will be go on till 2015.


For the purpose of national project "Agro−Industrial Complex" in the theme

"Accelerated Development of Cattle Raising" JSC "Monolit" carries out rebuilding of

pigsty complex and breeding station rooms. Now complete rebuilding of diary com−

plex is implemented, where 260 cows from Germany are located, part of them provide

milk already. Milking machines from De−LaVal are installed in the cow house. Further

in the end of this year 130 high yield heads of cattle are planned to be delivered.


After reconstruction "Mozdoksky syrzavod" is putted into operation for integrated milk

processing.


Investment Potential

Mozdok District possesses developed infrastructure, road and transport network,

update communication system and power supply systems.
Investment potential of Mozdok district, first of all, is connected with development of

conventional agriculture industry and agricultural product processing.


Investors are proposed to use tillage with irrigative potential restoring. It allows to

cover territory of 15 thousand hectares with irrigation and increase crops up to

40–60 centner/hectare. Investment outlay for irrigation system restore is 125 mln.

rubles.
Over the territory of Mozdok district product pipelines connecting oil fields of Chechen

Republic with Center and Black Sea port Novorossiysk are laid, so oil refinery con−

struction is possible.


Promising direction in Mozdok district is development of hydrocarbon fields. There is

Kharbizhen oil field on the territory of the district, which perspective storage is

4.6 million tons with planned annual output of 26 thousand tones. Required invest−

ment value is 185 million rubles to put into operation only one well.

Project of Mozdok midget power plant construction is investment appeal. Power station

is 21 km of Terek−Kuma canal located, project capacity is 7500 kW, average annual

output is 25 million kW/h. Investment outlay is assessed as 210 million rubles.

Project of three gas — reciprocating midget thermal power plants with capacity of

200kW electric and 300kW thermal energy each is of high performance. At that

expenses for one midget thermal power plant amount 2.3 million rubles.


Promising investment sites are unused facilities and premises of district manufactur−

ing enterprises, particularly: JSC "Mozdokskaya shveinaya fabrika", works of rein−

forced concrete pressure pipe in Pavlodolskaya stanitsa, etc.
Development of Razdolnoye natural mineral water field is economically sound. This

water has therapeutic and balneal properties.


Employment

The number of unemployed citizens of Mozdok District registered in population

placement service on July 1st, 2007, is 1455 persons. Average monthly wage of

employees is 6187.6 rubles (for the Republic of North Ossetia−Alania —

7354.7 rubles).
Housing Facilities:

Water supply system — 87.8%;

Sewerage — 87.8%;

Central heating — 85.2%;

Hot water supply system — 76.4%;

Baths (showers) — 76.4%;

Gas supply — 96.1%;

Floor standing fryer and electric cooker — 0.3%.

PRAVOBEREZHNY DISTRICT
Description And Investment Potential of Pravoberezhny District

District territory — 441.29 km2, including:

• for agricultural production — 277.55 km2

• for industrial production — 6.06 km2

• for forestry production — 4.92 km2

• for settlement lands — 103.07 km2

• reserve lands — 46,18 km2

Population — 55.6 thousand people, including:

urban sector — 35.7 thousand people

rural sector — 19.9 thousand people

Administrative center — Beslan

Population density — 126,1 persons/km2


Industry

In Pravoberezhny district there are large−scale and medium−sized industrial enterpris−

es that provide the following products:

Beslan works "Avtospetsoboudovanie" — trailers and semitrailers for trucks;

Beslan broken stone works of JSC RRW — broken stone, gravel;

FSUE "Beslan elecromechanicheskiy zavod" — transformer station sets;

BZZhBI "Roszheldorstroy" — reinforced concrete products;

LLC "Zilginskiy kirpichny zavod" — building brick;

LLC "Stroymost" — reinforced concrete products;

Beslan autotransport enterprise — cargo and passenger transportation;

LLC "Interagrocompleks" — flour, all−mash, pasta;

JSC "Beslansky maisovy kombinat" — starch treacle, dry starch;

JSC "Istok", JSC "Salut", LLC "Feniks", JSC "Fayur−Soyuz" — ethyl alcohol, vodka

and alcoholic beverage;

Beslan bakery plant, Khumalag bakery plant — bread and bakery products.
Communication

By July 1st, 2007 there have been 12910 telephone subscribers

(including 164 telephone subscribers for the first half of year 2007).
Density of telephone numbers for 100 residents — 23.22

(for comparison 28.0 — for the whole republic).


Industrial Agriculture Sector

By the beginning of 2007 there were 20 887 hectares of tillage, 456 hectares of peren−

nial plants, 1 262 hectares of hayfields and 3 538 hectares of pastures in−cluding

farms. 26 143 hectares of agricultural grounds in total.


The main crops of plant cultivation are spiked grains, sunflowers, potatoes and

vegetables. Favorable soil and climatic conditions with proper material support allow

for big crops and gardening.
For the purpose of national project "Agro−Industrial Complex" in the theme

"Accelerated Development of Cattle Raising" JSC "Mir" has received 8 year credits for

pigsty farm construction. Up to now construction of 4 buildings is completed, equip−

ment and technology are supplied by German company "Big Dutchman". Further con−

struction of other 4 buildings is in process. Total capacity is 28 thousand heads. Simultaneously construction of all−mash works, slaughterhouse and meat processing complex is carried out. 865 pedigree animals have been transported from Latvia, the first litter of 1520 animals was received.
There is one stud farm "Beslansky" in the district where thoroughbred saddle horses

are bred.


On the district territory the largest enterprise in SFS JSC "Beslansky maisovy kombi−

nat" capable of processing 100 thousand tons of corns per year. In 2006 starch output

growth achieved 54.3%. Investment project is aimed to further increasing of produc−

tion output. Annular design capacity is 80 thousand tons of glucosefruit syrup used in

confectionary industry.
Investment Potential

Pravoberezhny District possesses developed transport and power supply infrastructure,

necessary for promising investment project implementation in industry and agricul−

ture.
In the district update high technology enterprises of alcohol and alcohol bev−erage

production are located. For the purpose of national project "Agro−Industrial Complex"

livestock complex for 28.5 pigs were constructed.


At the district area project implementation is planned for production of glu−cose fruit

syrups on the basis of JSC "Beslansky maisovy kombinat", transforming corns into

starch products and now it is able to process 200 tons of corns per year producing

treacle, starch, purified deodorized corn oil, liquid and dry feed.


In project provision is made for advanced technology production of sugar syrup with

high content of fructose and its variants as new generation of sweeters for confec−

tionary industry with annular volume of sales up to 80 thousand tons. Required invest−

ment amount is 650 million rubles.


Investors are suggested to arrange serial production of transformer substations and

also dolomite based insulators on Beslan electric mechanical works. Investment

amount is 27 million rubles.
Employment

The number of unemployed citizens of Pravoberezhny District registered in population

placement service on July 1st, 2007, is 1257 persons. Average monthly wage of

employees is 7515.1 rubles (for the Republic of North Ossetia−Alania —

7354.7 rubles).
Housing Facilities:

Water supply system — 86.1%;

Sewerage — 85.7%;

Central heating — 84.2%;

Hot water supply system — 69.1%;

Baths (showers) — 69.0%;

Gas supply — 95.0%;
PRIGORODNY DISTRICT
Description And Investment Potential of Prigorodny District

District territory — 1422 km2, including:

• for agricultural production — 587,26 km2

• for industrial production — 102,41 km2

• for forestry production — 526,47 km2

• for settlement lands — 202,0 km2

• areas of preferential protection (sanatoria etc.) — 4,0 km2

Administrative center — Octyabrskoe settlement

Population — 102.1 thousand people, including:

Population density — 71.7 persons/km2


Industry

In Prigorodny district there are large−scale and medium−sized industrial enterprises

that provide the following products:

LLC "MaYur" — tinned food;

JSC "Prestige", LLC "Mikhailovskoe", LLC "Rossiyskaya slava" — alcohol;

LLC "Irbis−1" — flour;

LLC "Granit", LLC "Vector", LLC "Avtotrassa", MUE "Chermen", MUE "Monolit",

MUE "Maiskoe" — nonmetallic mineral production;

LLC GZPK "Sevospotrebsoyuza" — blankets;

JSC "Nar" — paving tile, tombstons;

LLC agricultural complex "Rossia" — sunflower oil, flour;

LLC "Barkad"company — bread, bakery products;

LLC "Arkhonskptitsemash" — repair−and−building works.
Communication

By July 1st, 2007 there have been 11 844 telephone subscribers

(including 97 telephone subscribers for the first half of year 2007).
Density of telephone numbers for 100 residents — 11.6

(for comparison 28.0 — for the whole republic).


Industrial Agriculture Sector

By the beginning of 2007 there were 25 013 hectares of tillage, 605 hectares of peren−

nial plants, 2 612 hectares of hayfields and 6 505 hectares of pastures in−cluding

farms. 34 735 hectares of agricultural grounds in total.


The main crops of plant cultivation are spiked grains, corn, potatoes and vegetables.

Favorable soil and climatic conditions with proper material support allow for big crops

and gardening also.
Climatic and natural conditions and availability of mountain hayfields and pastures

make it possible to breed and fatten the beef strain of cattle as well as to develop sheep

breeding. The large variety of high−quality plants on high−mountain alpine meadows

decrease the necessity to include expensive food additives in breeding ration.


The most developed branch of livestock sector is poultry farming, where State breed−

ing enterprise "Mikhailovskoe" works successfully, producing annually 7 millions of

pedigree eggs, 200 thousand of chickens for other farms and inhabitants. At the

enterprise a shop with provided complete cycle of poultry processing, which can be

very economically effective.
Investment Potential

Prigorodny district possesses large investment potential with ramified road and com−

munication infrastructure. In the district there are 27 large−scale and medium−sized

industrial enterprises. District population is completely provided with transport, trade

and personal services and communication.
At the district area large−scale fields are prospected: marble limestone (Lartsidon

field), mineral and drinking water (Tarskoe settlement), high quality clay (Sunzha,

Tarskoe settlements), sand and sand−and−gravel mix (Kantyshev−2 field), gravel

(riverbeds of Gilzedon, Terek, Kambileevka rivers, etc), dolomite and volcanic ash

(Genaldon field).
Investment policy in the district is formed considering available storage of natural

resources and raw materials as for industry so as for agriculture.


Promising investment projects in the district are the following:
Brick works construction in Oktyabrskoe settlement (LLC "Progress"), annual design

capacity is 45 millions pieces of solid lining bricks. Investment outlay is 120 million

rubles. Clay from fields of Sunzha and Tarskoe settlements is used as raw materials

for brick production.


Arrangement of advanced technology stone processing production (LLC"Gimara"),

design capacity is 60 thousand m2 of polished tile from dolomite, white and black

marble per year. Required investment value is 1.3 million euros to purchase update

quarry and production equipment. Marble limestone from prospected Lartsidon field is

used as production raw material.
Arrangement of advanced technology woodworking production based on local raw

material with planned processing volume up to 15 thousand m3 of wood per year.


Required investment value is 600 thousand USA dollars including purchasing of nec−

essary equipment. Raw material for production is fine wood growing at the district

territory (beech, oak, elm, cherry−tree, nut−wood, etc).
There are favorable conditions for livestock sector development in the district.
Employment

The number of unemployed citizens of Prigorodny District registered in population

placement service on July 1st, 2007, is 2 134 persons. Average monthly wage of

employees is 5 242.5 rubles (for the Republic of North Ossetia−Alania —

7 354.7 rubles).
Housing Facilities:

Water supply system — 99.0%;

Sewerage — 98.8%;

Central heating — 82.2%;

Hot water supply system — 83.6%;

Baths (showers) — 83.6%;



Gas supply — 99.6%;

Floor standing fryer and electric cooker — 0.1%.

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