The tender

TENDER COMMISSION FOR LEASE RIGHT FOR
THE AIRPORT COMPLEX OF THE MUNICIPAL COMPANY "INTERNATIONAL AIRPORT DONETSK "
AND SELECTION OF APPRAISAL COMPANIES
FOR INDEPENDENT
PROPERTY VALUATION

ANNOUNCES A TENDER ON THE RIGHT TO RENT AIRPORT COMPLEX OF MUNICIPAL COMPANY "INTERNATIONAL AIRPORT DONETSK "

Leased facility: A standalone structural unit "Airport Complex" of the municipal company "International Airport Donetsk" is owned jointly by territorial communities of villages, settlements and towns governed by Donetsk Regional Council.

Address: 1v, ul. Vzlyotnaya, Donetsk 83021 , Ukraine .

The Airport Complex was established on 18 July, 2008 and provides specialized services to passengers, cargoes and post, as well as commercial and technical services to aircrafts (AC) with a guaranteed general level of flight and aviation safety. The unit employs 756 people.

The main airport services include:

1. Providing airport services to passengers:

• providing services to passengers in air terminal;

• ensuring aviation safety of passengers.

2. Ground handling of AC:

• filling AC with aviation POL;

• technical services to AC;

• special vehicle services to AC.

3. Ensuring payload mass for AC:

• transportation of passengers;

• airstairs;

• supply with flight meals;

• automated and manual passenger check-in;

• check-in and transportation of luggage;

• aircraft guard, etc.

4. Services to AC crew:

• transportation of crew;

• medical control;

• life-saving services.

5. Commercial goods handling.

6. VIP-Terminal services.

Also, the complex provides non-airport services, such as:

Sale of flight meals and catering.
Purchase, storage, analysis and sale of POL.
Hotel services.
Placing advertisements.
Providing places for rent.

The complex includes 167 buildings and constructions with the total net area of 27,650 sq.m. located on the land plot of total area of 48,850 sq.m.

Non-residential facilities in the air terminal, hotel, cargo storage, dockage, and special vehicles service to the area of 2,335sq.m. have been leased out.

According to the balance-sheet as of 31 July, 2008 , the accounts receivable and payable make UAH 272,600 and UAH 59,800 respectively.

Four special vehicles for AC maintenance are in credit-line pledge: anti-icers (2 pcs.), NEOPLAN bus and a tow-tractor for the period from 26.12.2008 to 25.12.2009.

The tender will take place on 24 April 2009 at 14:00 in premises of Donetsk Regional Council at: Room 1016, 34 Pushkina av., Donetsk. The envelopes with bids will be opened in presence of bidders.

The tender bids will be accepted before 17 April 2009 inclusive from 9.00 till 16.00 at: Room 322, 34 Pushkina av., Donetsk. For information, please dial: 334 22 07, 340 38 21.

For information, please dial: 334 22 07, 340-38-21.

The tender will take place in consistency with the Tender Provisions on Right to Rent Airport Complex of Municipal Company "International Airport Donetsk" approved by the resolution of the Regional Council dated 24.07.2008 No. 5/17-507 and published in Zhizn newspaper dated 29.07.2008 No.110.

Legal entities and individuals with appropriate expertise in investment projects can bid.

Individuals and entities with tax payable to the budget and arrears of rent for using the common property or those, who otherwise violated previously signed rental agreements, are not allowed to bid.

Tender terms and conditions:

1. To retain the core activity profile of the Airport Complex and ensure its effective operation;

2. To observe Airport Complex Exploitation Standards;

3. To maintain capacity of the Airport Complex on the level of 2007 with subsequent increase to up to 1,500 passengers per hour by 2012;

4. To expand the number and improve the quality of services provided by the Airport Complex to meet the international standards;

5. To ensure competitiveness of the Airport Complex in domestic and international markets of air transportation services;

6. To carry out a comprehensive reconstruction of the terminal in line with the international standards ICAO pursuant to the comprehensive action plan for preparation and hosting EURO 2012 finals in Ukraine as well as with due regard to the available project of reconstruction of the facility;

7. To retain jobs;

8. To create new jobs after reconstruction of the Airport Complex;

9. To ensure the wages for Airport Complex employees at the amount not lower than the industrial average;

10. To create safe and harmless working conditions;

11. To take measures to protect the environment in order to meet the environmental standards of Airport Complex exploitation;

12. Reconstruction term;

13. The rental fee amounts to at least UAH 3,971,950 per year with the possibility to review it following financial and economic performance of the tenant;

14. To observe the UEFA requirements to facilities within the framework of preparation and holding EURO-2012 finals in Ukraine ;

15. The tenant shall have no salary debts as of the date of the tender.

To participate in the tender the participants shall provide the Tender Commission with the tender bid, which is to include the following documents:

1. The bid for participation in the tender (the bid form is available on the website of Donetsk Regional Council you can also get it from the Tender Commission at the above mentioned address);

2. Draft lease agreement initialized by the potential tenant;

3. Proposals on rental fee (not less than the starting bid specified by the tender terms and conditions - UAH 3,971,950 per year);

4. Information about the previously concluded common property lease agreements and performance of commitments (please, specify the lessor, the leased facility, address and the effective period of agreement);

5. Tax Clearance Certificate;

6. Certificate of non-bankruptcy;

7. Information about the potential tenant:

a) for participants - legal entities:

- documents confirming the authorities of the legal entity representative;

- notarized copies of constitutional documents as amended;

- notarized copy of certificate of state registration;

- certificate from the Statistics Department on making an entry in the Single State Register of Ukraine;

- copy of the tax-payer certificate;

- bank statement on current account and account activity of the potential tenant;

b) for participants – individuals:

- ID documents of the potential tenant;

- copy of certificate of state registration of the individual as a subject of entrepreneurial activity;

- income declaration for the last three years.

8. Information on investment opportunities (sources of investment resources) of the potential tenant;

9. Commitments to perform all the above mentioned tender terms and conditions;

10. Investment background of the potential tenant (track of record in the investment market, number of projects, amount of investment projects, etc.)

11. Proposals on the investment amount and timelines for implementation of the investment project on reconstruction of the Airport Complex;

12. Business plan of Airport Complex development;

13. Information on the financial standing;

14. Additional proposals to the lease agreement.

The bids shall be submitted in envelopes and sealed by the tender participants; the envelopes shall be bear the inscription "for tender" and specify the address of the leased object, name and address of the bidder.

The Commission will consider only the bids submitted within the deadlines, and packed and sealed as required according to the terms and conditions as specified above.

I.G. Koval

Chairman of the Commission

BID for participation in the tender