PILOT PRIVATIZATION PROGRAM IN THE REPUBLIC OF...

PILOT PRIVATIZATION

PROGRAM IN

THE REPUBLIC OF BELARUS

This project is supported by a Trust Fund established by the Ministry of

Finance of Austria under the supervision of the World Bank

FINANCIAL ADVISORS SELECTION PROCESS

The newly created NATIONAL AGENCY OF INVESTMENT AND

PRIVATIZATION (NAIP) is seeking the services of globally

reputable Financial Advisors to assist with execution of a pilot

privatization program in Belarus in accordance with the best

international practice.

This project is supported by a Trust Fund established by the

Ministry of Finance of Austria under the supervision of the World

Bank.

Eight small and medium sized SOEs have been identified to

initiate the privatization program.

Only highly qualified advisory firms or internationally reputable

investment banks with proven international experience in

privatization in transition countries with at least 10 years

experience in privatization transactions will be selected.

The Financial Advisors hired by the NAIP and acting on its behalf

will be responsible for the following services (“Services”):

• Preparing the companies for privatization, including:

company analysis, valuation, market assessment, development

of privatization strategy and preparation of tender/sales

documents.

• Implementation of the pilot privatization, including:

launching and managing the bidding process, facilitating the due

diligence process, leading negotiations, preparing legal

documents and monitoring and supporting the closing of the

transaction(s).

Detailed information about the enterprises to be privatized and

the Expressions of Interest specifications can be found at

http://www.economy.gov.by/eng/naip.

Expressions of interest must be delivered in a written form to the

address below (in person, or by mail, or by fax, or by e-mail) by

January 9, 2012.

National Agency of Investment and Privatization

Attn: Dr. Dmitry Klevzhits, Director

14 Bersona Street

220050 Minsk, Belarus

Tel: 375-17-222-68-41

Mobile: 375-29-996-06-23

Fax: 375-17-200-37-77

E-mail: [email protected]

FINANCIAL ADVISORS SELECTION PROCESS

http://www.economy.gov.by/eng/naip










•Open Joint-Stock Company “Baranovichi Reinforced Concrete Products Plant” (Short name: OJSC “Baranovichi KZBK”)

•Web-site: www. zhelezobeton.by

NAME OF THE COMPANY

•Production of reinforced concrete and concrete constructions and products (96% of sales)

MAIN ACTIVITY

•Production of wall blocks; ready-mixed concrete; construction metal products, plaster and cement;

•Blacksmithing, pressing, stamping, profiling, metal powder OTHER ACTIVITIES

•640 employees PERSONNEL

100%

Private owners 0.975%

State

99.025%

INDICATORS YEAR

2009 2010 6M 2011

Value of net assets, BYR mn 18,756 21,829 23,208

Sales proceeds (products, work, services), BYR mn 62,719 84,291 57,225

Profit from sales of goods, work, services, BYR mn 2 ,26 4,008 2,645

Net profit, BYR mn 979 1,450 1,499

Profitability of sold products, work, services, % 4.1 5.9 5.6

Debtors‟ products, BYR mn 1,724 3,228 5,634

Accounts receivable, BYR mn 5,616 10,839 16,059

Average wage, BYR thsd 1,263.8 1,666.6 2,053.3

BARANOVICHI REINFORCED CONCRETE PRODUCTS PLANT

Ownership structure

Financials

General information General information

Location

Baranovichi

Address: Bersona str. 14, 220050, Minsk, Republic of Belarus

Tel. +375 17 222 68 41, GSM: +375 29 996 06 23

[email protected]

BARANOVICHI REINFORCED CONCRETE PRODUCTS PLANT

PRODUCTS, WORK,

SERVICES OUTPUT

YEAR

2008 2009 2010 6M 2011

Precast reinforced concrete

constructions

cu m 146

400

152 200 168 700 88 922

Bed plates thsd units 657 250 323 145

Ready-mixed concrete cu m 9 592 14 784 12 680 6 235

Building mortar cu m 888 1 037 782 366

Commercial reinforced steel t 18 12 16 4

Industrial work and services t 16 12 10

Production

KEY ADVANTAGES

Proximity to international markets such as Poland and Ukraine

Access to various modes of transportation including railways and

highway E35 which leads to Moscow and Warsaw

45 years experience

Raw materials purchased directly from Belarusian suppliers

Superior marketing expertise

Strengths of the Company

Sales

80.2 73.4 72.8

19.8 26.6 27.2

0

20

40

60

80

100

2009 2010 6 months of2011

Structure of sales, %

Domestic market External market

The main foreign customer is Russia.

Besides Russia the company is actively

increasing its exports to Lithuania, Latvia,

China and other countries.

The Company`s activities

are certified for

compliance with:

ISO 9001-2009

ISO 18001-2009

mailto:[email protected]

BELSANTEKHMONTAZH-2

Ownership structure

General information

Location

Financials

•Open Joint-Stock Company “Belsantekhmontazh-2 ” (Short name: OJSC “Belsantekhmontazh-2 ”)

•Web-site:www.bstm2.by NAME OF THE COMPANY

•Installation, sanitary engineering and ventilation works at the facilities of the industrial, residential, social infrastructure, healthcare and other sectors.

MAIN ACTIVITY

•Manufacture of gate valves, pipe and ventilation, pre-insulated pipes for heat pipelines;

•Production of pipeline fixtures, inflow chambers of flexible air ducts, plastic siphons, filters, adjustable and fixed bar grilles and many other metal structures

OTHER ACTIVITIES


100%


State

76.95% Minsk

Grodno

Borisov

Brest Pinsk

Baranovichi

Lida

Soligorsk

INDICATOR 2009 2010 6M 2011

Net assets value, BYR mn 39,481 51,450 55,166

Revenue from sales of goods, works, services, BYR mn 190,317 246,606 137,316

Goods, works, services sales profit, BYR mn 11,126 16,475 8,364

Net profit, BYR mn 8,234 12,315 5,793

Goods, works, services sales margins, % 5.8 6.7 8.0

Receivables, BYR mn 21,482 30,570 40,136

Payables, BYR mn 25,498 38,493 37,332

Average wage, BYR mn 1,411 1,761 2,218

Production


Sales

BELSANTEKHMONTAZH-2


are certified for

compliance with:

ISO 9001-2001


Tel. +375 17 222 68 41, GSM: +375 29 996 06 23

[email protected]

Goods, works, services Output Year

2009 2010 6M 2011

Construction BYR mn 136,926 163,091 96,063

Production BYR mn 25,440 33,726 19,958

Minsk-arena

National Library

Hotel “Europe 5*

Minsk Railway Station

KEY ADVANTAGES

Broad experience (among the completed projects are the

Minsk Automobile/Tractor/Engine Plants, Grodno Association

Azot, Soligorsk Potash Integrated Plant, Yubileinaya, Planeta,

Belarus and Europe Hotels, Palace of the Republic, National

Library, Minsk Subway)

Solid cooperation with foreign companies

Construction works held abroad

Main customers include:

Construction companies

Contracting organizations

Wholesale and retail companies

Industrial enterprises

99.3 99.3 100

0.7 0.7

0

20

40

60

80

100

2009 2010 6 months2011

Sales structure, %

Local market External market


AVTOMAGISTRAL

Ownership structure

Financials

General information

Location

•Open Joint-Stock Company “Avtomagistral” (Short name: OJSC “Avtomagistral”)

•Address: 8 Kizhevatova St., 220099, Minsk NAME OF THE COMPANY

•Construction of roads, airfields and sports facilities (40.8% of the total revenues for 2010).

MAIN ACTIVITY

•Sale of asphalt, bitumen emulsion, provision of road transport services, leasing of facilities, machinery, and equipment.

OTHER ACTIVITIES


100%


State

98.11% Minsk

INDICATORS YEAR

2009 2010 6M 2011


Revenues from sales of products/work/services, BYR mn 56,315 70,853 38,086

Profit from sales of products/work/services, BYR mn 2,735 3,563 1,532

Net profit, BYR mn 513 682 600

Sales margins, % 6.1 6.4 5.1


Accounts payable, BYR mn 7,673 7,550 14,446

Average wages, BYR mn 1,041.2 1,176.5 1,392


Tel. +375 17 222 68 41, GSM: +375 29 996 06 23

[email protected]

Production


Sales

AVTOMAGISTRAL

PRODUCTS, WORK, SERVICES OUTPUT YEAR

2009 2010 6M 2011

Volume of contract repair and construction

work performed by the company‟s staff,

including:

BYR mn 51,516 61,388 27,362

- construction BYR mn 14,485 13,524 3,909

- major repairs BYR mn 13,289 14,638 8,702

- ordinary repairs BYR mn 9,423 19,251 3,639

- maintenance BYR mn 12,668 13,179 10,879

- production facilities repairs BYR mn 1,651 796 233

KEY ADVANTAGES

execution of contract work by mobile units

extensive network of technological bases of branches located in

regions that have asphalt plants, lines of gravel enhancement and

washing, storage tanks for binding substances enable the

Company to carry out mobile road work throughout the country

production of the most popular road building materials on their

own (cationic bitumen emulsions, asphalt concrete mixtures)


are certified for

compliance with:

ISO 9001-2009

ISO 14001-2005

ISO 18001-2005

100 99.7 100

0

20

40

60

80

100

2009 2010 6 months of2011

Sales structure, %

Domestic market Foreign market

Main customers for the company`s

services and products are

Belarusian enterprises. Thin coating

of roads with hot asphalt mixtures is

the most sustainable type of work in

the market. The main customers for

cationic bitumen emulsion are

enterprises of Minsk and Grodno

Oblasts.


•Open Joint-Stock Company “Construction and Mounting Trust No. 8” (Short name: OJSC “CMT No. 8”)

•Address: 37 Kalvariyskaya str., 220073 Minsk

NAME OF THE COMPANY

•Construction of roads, airfields and sports facilities MAIN ACTIVITY

•Production of lumber, steel, asphalt concrete, mortar and concrete. OTHER ACTIVITIES


CONSTRUCTION AND MOUNTING TRUST №8

Ownership structure

Financials

General information General information

Location

100%


State

99.79% Minsk

Indicators Year

2009 2010 6M 2011



Profit from sales of products/work/services, BYR mn 383 1,716 1,484

Net profit, BYR mn 141 617 779




Average wages, BYR mn 1,368.8 1,548.6 1,921.1


Tel. +375 17 222 68 41, GSM: +375 29 996 06 23

[email protected]

Production

KEY ADVANTAGES

Relatively high productivity compared to its main competitors (CMT

№1, CMT №4, CMT №5, CMT №6)

20 years experience


Sales


are certified for

compliance with:

STB ISO 9001-2001

STB ISO 14001-2005

STB ISO 18001-2005

CONSTRUCTION AND MOUNTING TRUST №8

PRODUCTS, WORK, SERVICES, BYR mn YEAR

2009 2010 6M 2011

1. Public roads 35,852.5 53,408.9 52,916.1

Construction 32,771.1 49,690.2 47,453.7

Major repairs 454.5 2,201.3 1.4

Ordinary repairs 2,626.8 1,517.4 5,461

2. Other customers 32,997.4 21,933.2 11,186.2

Construction 14,348.3 15,843.2 3,785.1

Major repairs 18,183.3 3,391.0 7,401.1

Ordinary repairs 465.8 2,699.0

3. Total 68,849.9 75,342.1 64,102.3

Over the recent years the company has carried out its activities on the domestic market only. Main

markets include predominantly Minsk City, Minsk Oblast, Mogilev Oblast, and Vitebsk Oblast. For

20 years of its operations, the Company has built over 830 km of public roads, including of

national importance. It has built 224 thousand square meters of housing, as well as a number of

sites for industrial purposes.

STRUCTURE (%) 2009 2010 6M 2011

Domestic market 100 100 100

Foreign market n/a n/a n/a

Total 100 100 100


BELGAZSTROY

Ownership structure

General information

Location

•Open Joint-Stock Company “Belgazstroy” (Short name: OJSC “Belgazstroy”)

•Address: 4 Sovetskaya str., Minsk NAME OF THE COMPANY

•main contract activity and construction of gas pipelines, provision of gas supply, installation of engineering networks and structures, construction of heat pipelines from pre-insulated pipes, polymer pipe insulation for gas pipelines and pre-insulation for heat pipelines

MAIN ACTIVITY

•manufacture of units, parts and metal structures, welded joints quality control, tank diagnostics

OTHER ACTIVITIES


Financials

100%


State

50.6%

Minsk

Stolbtsy

Vitebsk

Borisov

Polotsk

Osipovichi

Bobruisk

INDICATORS

YEAR

2009 2010 6M 2011

OJSC SUBSIDIARIES

Net asset value, BYR bn 1.305 2.465 3.552 28.265

Revenue from sales of goods, works, services,

BYR bn 2.254 4.994 4.249 38.590

Goods, works, services sales profit, BYR bn 0.199 0.815 1.076 2.623

Net profit, BYR bn 0.541 1.108 1.446 2.333

Goods, works, services sales margins 10 19 36.94 8.25

Receivables, BYR bn 0.935 2.585 5.519 14.535

Payables, BYR bn 1.919 3.480 3.725 16.930

Average wage, BYR,‟000 2,272 3,944 5,008 1,859


Tel. +375 17 222 68 41, GSM: +375 29 996 06 23

[email protected]

Production


Sales

BELGAZSTROY


are certified for

compliance with:

ISO 9001-2009

PRODUCTS, WORK, SERVICES OUTPUT YEAR

2009 2010 6M 2011

1. Welded joints quality control BYR, bn 0.256 0.351 0.145

2. Main contract activity BYR, bn 0.714 0.497 0.779

3. Provision of advisory and consultancy services

for PDVSA GAS in construction of gas pipeline

networks and structures in Barinos BYR, bn 1.284 4.146 2.689

4. Goods sale BYR, bn n/d n/d 0.376

KEY ADVANTAGES

a strong position in the local market

demand for the company`s products abroad

a strategic partner - PDVSA GAS

long-term contracts for products supply

Main sales markets: Republic of

Belarus

Main competitors at the internal

market: SPA Beltopgaz

At the external market, in 2008

Belgazstroi OJSC concluded a

contract with PDVSA GAS for

providing advisory and consultancy

services in the sphere of construction

of gas pipeline networks and

structures in Barinos (Bolivarian

Republic of Venezuela).

43 17

33

57 83

67

0%

20%

40%

60%

80%

100%

2009 2010 6 months 2011

Sales structure, %



MEDPLAST

Ownership structure

General information

Location

Ownership structure

•Open Joint-Stock Company “Medplast” (Short name: OJSC “Medplast”)

•Web-site: www.medplast.by NAME OF THE COMPANY

•Production of the single-use syringe MAIN ACTIVITY

•Manufacturing of goods used in construction OTHER ACTIVITY


100%

Private owners

0.1%

State

99.9%

Gomel

INDICATORS YEAR

2009 2010 6M 2011




Net profit, BYR mn 1,968 1,685 1,011




Average wages, BYR mn 990.1 1,300.6 1,664.6


Tel. +375 17 222 68 41, GSM: +375 29 996 06 23

[email protected]

Production


Sales

MEDPLAST


are certified for

compliance with:

ISO 9001-2001

PRODUCTS OUTPUT (BYR mn)

2009 2010 6M 2011

Single-use injection syringes 16,412

(119 mn pieces)

21,937

(135 mn pieces)

19,833

(84 mn pieces)

Other plastic products 152 214 230

Output, total 16,564 22,151 20,063

KEY ADVANTAGES

Advantageous location – proximity to Russia and

Ukraine

Leading position at the market

(about 80% in 2010)

The main market for export sales is

Russia. The major strategic partners

on this market are the companies

„NikKomed‟Ltd. and „Camelia‟Ltd.

Currently the company is partnering

with „BogMark Ukraine‟ Ltd. for the

registration, certification and further

distribution of syringes in Ukraine.

90.6 87.3 91.9

9.4 12.7 8.1

0

20

40

60

80

100

2009 2010 6 months of 2011

Sales structure, %



KONFA

Ownership structure

Financials

General information

Location

•Open Joint-Stock Company “Konfa” (Short name: Konfa OJSC)

•Web-site: www.kk.by Name of the company/info

•Confectionery goods manufacture (spice cakes, cookies, pan goods, wafers and soufflé sweetmeat)

Main activity

•6.7 thousand tons of confectionery goods/year

•The total production floor space is 3,720 and the volume of production premises is 23.5 thsd m3.

Production capacity

•375 employees Personnel

100%

Private owners

75%

State

25%

Molodechno

INDICATORS YEAR

2009 2010 6M 2011

Net assets value, BYR mn 2,432.0 3,097.0 3,214.0

Revenue from sales of goods, works, services, BYR mn 22,078.0 27,311.0 25,617.0

Net profit, BYR mn 56.0 347.0 141.0

Goods, works, services sales margins, % 3.8 7.0 3.2

Receivables, BYR mn 4,335.0 5,290.0 8,476.0

Payables, BYR mn 3,759.0 4,591.0 6,233.0

Average wage, BYR thsd 741.0 904.0 1,133.0


Tel. +375 17 222 68 41, GSM: +375 29 996 06 23

[email protected]

Production

Personnel

Sales

KONFA

3 824 4 123

5 027 5 165 5 354

0

2 000

4 000

6 000

0

2 000

4 000

6 000

2006 2007 2008 2009 2010

Output structure in 2006-2010

Spice cakes Cookies Wafers

Souffle sweetmeat Pan goods TOTAL

17%

31%

13%

9%

10%

12%

8%

Personnel structure by age

under 25

25-30

36-40

41-45

46-50

51-55

56 and more

375 friendly and cohesive people presently

work in the Company.

The Company is represented by a young

and enthusiastic team of employees. More

than 60% of the staff are under 40

years old.

Konfa OJSC sells its products

predominantly in the local market. The

main export markets are Russia and

Germany. Wholesale depots and

retail chains are among the main

customers.

91.1 95.4 97.4

8.9 4.6 2.6

0

20

40

60

80

100

2009 2010 6M, 2011

Structure of sales, %



MINSK MARGARINE PLANT

Ownership structure

Financials

General information

Location

•Open Joint-Stock Company “Minsk Margarine Plant”

•Web-site: www. margarin.by NAME OF THE COMPANY

•production of margarine products (margarines, cooking and confectionery fats), mayonnaise, production of ketchup, horseradish and mustard.

MAIN ACTIVITY

•disposal of waste-soap stock;

•refining, freezing out and deodorization of fats and oils;

•packing of vegetable oil.

OTHER ACTIVITIES


100%

Private owners 6.2%

State

93.8%

Minsk

INDICATORS YEAR

2009 2010 6 M 2011




Net profit, BYR mn 4,006 5,220 5,345

Sales margins, % 14.1 10.3 14.0



Average wages, BYR mn 1,177.9 1,421.7 1,796.2


Tel. +375 17 222 68 41, GSM: +375 29 996 06 23

[email protected]

Production


Sales

The Company`s activities are

certified for compliance with:

STB ISO 9001-2009 since 2006

HACCP in the production of

mayonnaise products since 2010

MINSK MARGARINE PLANT

PRODUCTS, TONS 2008 2009 2010 6M 2011

Margarine 5,630 6,995 8,454 4,669

Mayonnaise 6,658 6,278 5,597 3,059

Packed vegetable oil 2,985 1,926 2,714 2,045

Unpacked vegetable oil 7 182 2,506 n/a

Ketchup 286 523 427 n/a

Horseradish 37 92 65 n/a

Mustard 10 74 64 n/a

KEY ADVANTAGES

an advantageous location in the center of Minsk

highly-qualified staff

natural high-quality products

20% market share for margarine products, 10% - for

mayonnaise products

The Company mainly operates on

the domestic market, but is

increasing its sales abroad. Main

consumers of the products are

state and private enterprises of

trade and industrial processing.

99 98.2 96.3

1 1.8 3.7

0

20

40

60

80

100

2009 2010 6 months of 2011

Sales structure, %



National Agency of Investment and Privatization

Address:

14 Bersona Street

220050 Minsk, Belarus

Director:

Dmitriy Klevzhits

Tel. +375 17 222 68 41

GSM: +375 29 996 06 23

E-mail: [email protected]

Website (Ministry of Economy): www.economy.gov.by

The official Agency`s website is under construction and coming

soon.

CONTACTS


http://www.economy.gov.by/

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