Dear Sirs,

For your information we suggest the following stages of project development:

1. CONCEPT

It is necessary to develop the project concept, meaning

Determining project capacity and stages of reaching it. For example, in the first stage, the production should reach 3000 tons together with construction of general purpose factory units with the potential of doubling and tripling their capacity for growing and production of deep processed meat products.

For this purpose, it is necessary to organize at least one our visit to site in order to study basic information for establishing the project concept and determine the suitability of the existing production units, new sites, etc. presented by you for potential use.

It is advisable, and we are certain it will be useful for both parties, if you visit us to study the proposed technologies, develop a mutual program (financial, technical, technological, and marketing) of project execution.

2. BUSINESS PLAN

After studying the parties' capabilities and development of conceptual solutions it is necessary to prepare a business plan for calculation and understanding of the project price and for decision making on the part of the organization, providing project financing.

Besides developing the technical, technological and price aspects, the business plan determines (precision of + 10…15%) the cost, expenditure cover, project stability to external factors, and gives an economic forecast of the Poultry complex indices in case of capacity increase, etc.  The business plan alone is sufficient as a document, which will enable the customer to develop an acceptable financing model of the project, determine the executors of its parts (local and foreign), etc.

3. ORGANIZATION OF FINANCING

 After confirmation of the business plan and its approval in financing institutions, it is necessary to go through all the procedures of receiving "actual money" for the execution of each of the project stages. However, the financing institution (bank), will most probably just give its principle consent to project execution, and credit allocation will require a detailed preparation of a documentation file (construction and technological drawings, financial and production diagrams, equipment and shipment specifications, start up schedules and so on and so forth). For preparation of the required set of documents, it should undergo detailed processing in connection with the goals of each project stage, local conditions, financial resources, etc.

This stage is followed by tenders, based on quality and time schedules, organized to determine equipment suppliers, specifying shipment sets and batches, coordination of warranty service schedules, etc.

The documentation and the business plan, prepared and confirmed in such a way, will allow the bank (alongside with other documents it will require from you) to allocate credit facilities (or grant a guarantee) for project execution.

The facilities for developing conceptual solutions, organization of financing and design should be found before receiving the credit itself, however as a rule, these sums are later included in the credit amount.

A few words more on organization of financing.

Our company has experience in working with western banks to receive "cheap" money (presently 7-9% annually for the term of 5 years). However, there is one condition, the Customer should present guarantees, acceptable for our bank and insurance company (inter-bank transaction insurance). We are sure you have banks with an acceptable international rating, whose guarantees can be accepted.

Should you, however, manage to solve the financing problems on your own, the whole process will be much simpler and faster.

4. POULTRY COMPLEX CONSTRUCTION AND START-UP

The construction and start-up stage begins after preparation of technical documentation, solving financing problems, receiving all permission documents. This stage includes reconstruction, new construction, supply, equipment assembly and running-in, personnel training, management system establishment, etc.

5. TECHNOLOGICAL PROCESS ACCOMPANIMENT

After a unit or its self-sufficient part is ready for operation according to the time schedule indicated in our Business plan, the process of reaching the planned capacity starts. As a rule, the Customer makes a contract with us for project accompaniment during an agreed period of time with our staff of specialists to exercise technical supervision, including personnel training at site.