INVESTMENT OPPORTUNITIES. In the name of God

Transcription

1 2017

2 INVESTMENT OPPORTUNITIES 1 In the name of God

3 2 IN IRAN S FREE ZONES Investment opportunities In Iran s Free zones Tel: Site: invest@freezones.ir

4 INVESTMENT OPPORTUNITIES 3 Contents Prologue... 4 From Law on the Administration of Free Trade-Industrial Zones of the Islamic Republic of Iran... 5 From Regulations for Investment in Free Trade-Industrial Zones of the Islamic Republic of Iran Legal Incentives for the Investment in the Free Zones Overal Road Map of Iranian Free Zones toward IRAN Process of investment Free Zones Kish Free Zone Investment Oppertunities Qeshm Free Zone Investment Oppertunities Chabahr Free Zone Investment Oppertunities Aras Free Zone Investment Oppertunities Arvand Free Zone Investment Oppertunities Anzali Free Zone Investment Oppertunities Maqu Free Zone Investment Oppertunities FOREIGN INVESTMENT PROMOTION AND PROTECTION ACT

5 4 IN IRAN S FREE ZONES Prologue Iranian free zones have turned into great platforms for investment and business in various fields due to the necessity of continuous development and increase of Iran s national economic share in the global economy as well as the necessity of realizing objectives of Iran2025 Vision and participation and active roles of the private sector on the one hand and capacities, capabilities and Geo-economic advantages of these zones together with their financial incentives and noticeable facilities on the other hand. Functions of free zones for investment is so important that they are referred to as mechanisms for attracting investment and exports at the same time. Consequently, in the upstream documents of Iran, it has been emphasized to establish, administer and expand free zones to attract, facilitate and promote investment and production therein. In line with these overriding documents and strategic policies of the Iranian government for transparency and providing equal opportunities for capital owners and entrepreneurs, the present book some laws, regulations, financial incentives and amenities for investment in Iran s free zones have been presented together with some investment opportunities in seven free trade zones of the country to be used by real and legal investors.

6 INVESTMENT OPPORTUNITIES 5 From Law on the Administration of Free Trade-Industrial Zones of the Islamic Republic of Iran

7 6 IN IRAN S FREE ZONES Section 1: Objective Article.1: In order to accelerate infrastructure-related, development, economic progress, enhancing investment, increase of public income, creation of productive employment, regulation of goods and labor market, active involvement in regional and global market, manufacturing and exportation of industrial and processing goods and offering desirable public services, the government is hereby authorized to administer the following zones as the Free Trade-Industrial Zones in accordance with the present Law and the other legal principles. Section. 2-Definitions Article. 3- In this law, the following terms are used instead of the following phrases: Country: Islamic Republic of Iran. Zone: Free Trade-Industrial Zone. Organization: Organization in charge of the administration of each Free Trade-Industrial Zones. Parliament: Islamic Consultative Assembly.

8 INVESTMENT OPPORTUNITIES 7 Section.3- Duties Article. 8- The organization and its affiliated companies are permitted to conclude necessary contracts with natural or legal persons, whether foreign or domestic. It is also permitted to cooperate with domestic or foreign investors for the implementation of development and productive projects, in compliance with the due provisions of the Constitution. Disputes and claims arising out of the concluded contracts shall be examined and settled in accordance with the mutual agreements and contractual commitments of both parties concerned. Article.11- Issuance of licenses for any kind of permissible economic activity, construction of buildings and installations and embarking on various occupations by legal or real persons could be conducted by the organization if such occupations lack persons-in-charge. Article. 12- Regulations governing employment of workforce, social insurance and security and issuance of entry visa to foreign nationals shall be based on rules which are to be approved by the Board of Ministers. Article. 13 (Amended in ): Real and legal persons engaged in any kind of economic activity in a zone are exempt from payment of income and property tax as determined by Direct Taxes Law for a duration of 20 calendar year25 from the date of the commencement of the operation, mentioned in the permit with respect to any type of economic activity in the Free Zone. Upon the lapse of the initial 20 years, the issue shall be subject to the tax regulations proposal by the Board of Ministers and passed by Islamic Consultative Assembly

9 8 IN IRAN S FREE ZONES Article. 14: Commercial trades between zones and foreign countries, after being registered at the customs office, is excluded from provisions of export import regulations. Governmental regulations of export and import of goods and customs formalities within each zone shall be approved by Board of Ministers. Trade transactions between the zones and the rest of the country, whether of commercial nature or by travelers, is governed by the general export-import regulations of the country. Article. 15- Importation of goods, up to the amount of added value31, produced into a free zone to other parts of the country shall be exempt, upon approval of Board of Ministers, from payment of all or a part of customs duties and commercial benefit tax33.34 Article. 16: Importation of goods the raw materials of which are wholly or partly supplied domestically will be exempted from certain taxes. They will be exempt from paying some or all of customs fees and business profit taxes. Article. 20- Inflow and outflow of capital and profits generated by economic activities in each zone are permitted. The required regulation for attraction and protection of investment in each zone and arrangements and participation of foreigners in activities of each zone shall be approved by the Board of Ministers. Article 21 (Amended on ): The legal rights of investors the capital investment of whom has been decreed by the Board of Ministers, shall be guaranteed and protected. Should the capital of such investors be nationalized to the favor of the public or their properties being dispossessed of, a fair compensation shall paid by the government. The regulations on manner of admitting such investments and manner of compensation shall be in accordance to the bylaw approved by the Board of Ministers.

10 INVESTMENT OPPORTUNITIES 9 Article 22 (Amended on ): Registration of companies, intellectual and industrial property rights, as well as registration of ships, vessels and the aircraft in the zone, shall be, based on article of the Constitution48, and in accordance with the bylaw approved by the Board of Ministers. Article. 29 (Amended by Islamic Consultative in and by Expediency Discernment Council in ): Establishing and activity of stock exchanges, funded by domestic and foreign capital, in free zones should be based on regulations and bylaw60 that are enforceable in 6 months after data of approval by Board of Ministers. The relevant regulations should be offered by the Supreme Council of the Securities and Exchange.

11 10 IN IRAN S FREE ZONES From Regulations for Investment in Free Trade-Industrial Zones of the Islamic Republic of Iran

12 INVESTMENT OPPORTUNITIES 11 Article. 1-In this approval letter, the following abbreviated terms are used: Mainland: Islamic Republic of Iran minus Free Trade-Industrial Zones Authority: Administrative Organization in each Free Trade- Industrial Zone Zone: Any Free Trade-Industrial Zone in Islamic Republic of Iran Investment: Application of capital in different forms in economic activities for production of items and offering services. Foreign Investors: All capital initiatives addressed in article 3 of present law (except for Rial-based values) that foreign investors put into the zones. Article. 2-All real and legal persons and entities (Iranian and foreign) as well as international organizations could invest in the zones independently or in cooperation with authority and its subsidiaries. The resulting capital is covered by current set of regulations. Article. 3-Based on existing regulations, capital is defined as: A-Rial-based capital and convertible currencies in zones B-Machineries, equipment, tools and tools C-Industrial ownership rights such as patent of invention, technical knowledge, and trademarks D-A part or all of transferrable special profit obtained in free zones and added to main capital reservoir or used in another legally authorized activity. Note (Amended in ): In special cases, admission of raw materials and half-manufactured parts could be regarded as a part of foreign investment. Article. 4-The capitals will be admitted based on the following conditions and regulations: A-If they are used in permitted activities of each zone.

13 12 IN IRAN S FREE ZONES B-If they go through complete steps of investment and capital registration as described in articles 6 and 7. C (Amended in )-If they do not require assignment of an exclusive right or privilege to investor by authority. Article. 5 (Amended in ): Foreign investors could invest in economic activities of the zone as much as they desire. Article. 6 (Amended in ): As stated in article 2, investors who desire to enter their capital into free zones should fill in an application form and a questionnaire developed by secretariat and authorities of the zones. They should deliver the forms to authority in each zone. The received applications forms should be reviewed by authorities within the zone. Investment license should be issued by authority of each zone. Note. 1 (Amended in ): Foreign investors request which require offering guarantee (as addressed in article 21 of Amended Law on Administration of Free Trade-Industrial Zones of Islamic Republic of Iran132), should be managed and planned by a committee made up of representatives of secretariat of the Supreme Council of Free Zones (head of committee), Organization for Investment, Economic and Technical Assistance (Ministry of Economic Affairs and Finance) and Management and Planning Organization of Iran. Based on committee s suggestion and approval of majority of member ministers of the Supreme Council of Free Zones, an investment license will be issued for them. Note. 2 (Amended in ): Any modification of specifications in the questionnaire or investment license should be communicated to the authority and approved by licenseissuing entity. Note. 3 (Amended in ): The investors who apply for investment license should receive exploitation license from the authority.

14 INVESTMENT OPPORTUNITIES 13 Article. 7-The recipients of investment license should import a definite part of the capital into the zone for initialization of operational operations as highlighted in investment license. Article. 8-Entry and registration of capital in free zones should be done in the following manner: 1-Capital addressed in paragraph A of article 3 of current regulations should be deposited into relevant banking accounts based on type of investment. In addition, equivalent Rial or foreign currency rate should be registered at date of depositing as investment capital in authority branches of each zone. 2-Capitals covered by paragraphs B to D in article 3 of these regulations should be within limits denoted in investment license as well as related documents. After review by authority of each zone, the capital should be changed into convertible currencies at date of discharge. In addition to currency rate, equivalent value of capital (based on market value) should be registered as investment capital in representative branches of authorities in every zone. 3-Capitals addressed in paragraph E of article 3 of current law should be verified by authority of each zone and registered as capital in representative branches of authorities in each zone. Scheduling of assignment of technical knowledge to investment account is presumed to be equivalent with transfer of technical knowledge. 4-Capitals addressed in paragraph F of article 3 of current law should be approved by accounting institutes that authority of each zone authorizes. The capitals are registered in books of authority in each zone as investment capital. The capitals should have the following characteristics: A-Aimed to increase capital to develop investment in the same unit after receiving approval of authority in each zone.

15 14 IN IRAN S FREE ZONES B-Aimed to increase capital for expending on other items in the same unit after informing authority in each zone C-Aimed to invest in other activities than those for which license has been issued (after satisfaction of article 6 of current law). 5-Whenever a part or all of non-cash capital is recognized by authority as partial, defective or unusable, if it does not match specifications in the application form or if it is overestimated, that part of price which has not been approved by organization will not be included in capital account. 6-If capital goods as addressed in paragraphs B and C of article 3 of current regulations belong to foreign investors and have been previously used in mainland, the goods could be transited from mainland to free zone after receiving license from relevant entities. Transfer of these products is considered as a case of domestic capital transfer and it will be subjected to regulations of current approval letter. Article. 9-Investors could insure the capital they import into the zone. In the case of accidents, the insurance company should substitute for investor based on insurance regulations. The substitution will be possible by paying for the losses but it will not be recognized as transfer of capital. Article. 10 (Amended in ): Capital of final investors that are covered by article 6 of present regulations are supported by existing regulations and possess the same advantages and facilities. Note (Amended in ): The capital of foreign investors the admission of which (as addressed in note 1 of article 6) is approved by majority of member ministers of the Supreme Council of Free Zones should be fairly compensated by government of Islamic Republic of Iran if it is nationalized or investors are dispossessed. Compensation, in this case, should be done in equivalent amount of foreign currency before

16 INVESTMENT OPPORTUNITIES 15 nationalization or dispossession. In 3 months from date of nationalization or dispossession, foreign investor should apply for compensation of losses. The application should be delivered to authority in each zone. Article. 11-All units established in the zone based on investment license should forward a report of their performance and financial statements to the authority. The financial statements should be confirmed by an accounting body selected by the authority. Article. 12-Exit of special profit, main capital and profits of conducting economic activities based on foreign capital and capitals offered by Iranians in foreign currencies as well as resources earned by sale or transfer of this capitals from these zones are permitted. Based on request of these investors, authority in each zone should issue a license in 1 week from reception of investors request after verifying the fact that whether capitals exiting the zone are aligned with terms of investment license and the following note is observed. Note. In every zone, its authority should consider tax exemptions as discussed in article 13 of Law on 133Administration of Free Trade-Industrial Zone and finality of values to be exported. Article. 13-Payments of installments of main load and its relevant expenses, patent contracts, technical knowledge, technical and engineering aids, business signs, and similar contracts could be done based on investment projects, associated contracts and financial statements after notification to authorized organization. Article. 14-After agreement of authority of each zone, the investors could transfer their shares to other investors. In this case, recipient of shares will substitute for first investor. Article. 15-Transfer of capital from a zone to another should match investment regulations in zone of origin and destination.

17 16 IN IRAN S FREE ZONES Article. 16-Disputes between foreign investor and Iranian investor should be settled based on written contracts and agreements. Article. 17 (Amended in ): If foreign capital belongs to foreign state(s), it will be regarded as private capital and covered by business regulations. As a result, it is not covered by governmental and diplomatic exemptions.

18 INVESTMENT OPPORTUNITIES 17 Legal Incentives for the Investment in the Free Zones

19 18 IN IRAN S FREE ZONES From Regulations on Foreign Investment in Free Zones Foreign investors can invest in economic activities in the Zone in any proportion. Foreign investors requests received in any Zone will be reviewed by the Organization of the same Zone and the investment license will be issued by the same Zone. The owner of the investment is obliged to import the specific percentage of the capital to the Zone within a period of time set in the investment license to start the operations specified in the investment license. The operating of the activity stipulated in the investment license is subject to the issuance of operating license by the Free zones Organization. Foreign investors in the Free Zones are entitled to enjoy the privileges of the Foreign Investment Encouragement and Protection Act in Islamic Republic of Iran. The investor can insure the capital which was imported to the Zone. In case of any accident, if the insurance institute becomes the successor of the investor based on the regulations of the insurance policy, this succession is known valid by indemnifying the insured for the damage; however, this is not considered as a capital transfer. Taking specific profit and the money related to the origin and the benefits gaining from economic activities of the foreign capitals as well as the money gained from selling or assigning these capitals out of the Zone is permitted. The investors are allowed to assign the shares or their own shares to other investors if the Free zones Organization agrees. In this case, the assignee will be the successor of the first investor in any respects.

20 INVESTMENT OPPORTUNITIES 19 The dispute cases between the foreign investor and Iranian party shall be settled according to the written contracts and agreements. Exemption from paying direct taxes on income and property Any natural or legal persons engaged in various economic activities in the Trade-Industrial Free Zones are exempt from paying tax for 20 years on income and assets subject to the Direct Taxes Act since the operation day stipulated in the license for any economic activities in the Free Zone. Exemption from the payment of Value Added Tax on commodity and services within the limits of the Free Zones Transferring the commodity (purchasing and selling) within the territory of any Zone is exempted. Running services within the territory of any Zone is exempted. By getting permit from the Free zones Organization, providing the contract services of non-residents to the residents in any Zone is exempted from paying the tax subjected to the Value Added Tax (to the amount of the services performed). Exporting commodity and services from the Zone to abroad is exempted. Importing the commodity and giving services to the mainland are subjected to the rules and regulations of the Value-Added Tax.

21 20 IN IRAN S FREE ZONES Frome Regulations on Exports, imports, and customs Affairs in the Free Zones Overseas trade transactions of the Zones and/or transactions with other Free and Special Economic Zones, as well as transactions within the geographical territory of any Free Zone are subjected to the regulations on the Export, Imports, and Customs of the Free Zones and executed within the framework of the Law on Administration of the Free Zones. The order of the goods imported to the Free Zones, with the minimum formalities, is incompliance with the regulations designated by the Free zones Organization. The importation of any good to the Free Zones is allowed with the exception of the goods that are forbidden or illegal as per the Islam orders, or under the rules of the state where the name of the Free Zones is stipulated in, or according to the special regulations of the Free Zone. Importation of the goods by the purpose of storage, distribution, re-exportation, transshipment, and foreign transit to the warehouses run under the control of the Organizations of the Free Zones is permitted within the specific deadlines (set by the Organizations of the Free Zones). The exportation of the goods manufactured in the Zone to foreign countries or other Free Zones of the country is authorized, regardless of whether the raw materials used in their production are originated from inside the country, foreign countries or other Free Zones of the country. Returning back of the very goods imported to the Zone from abroad, or returning back of the goods imported from other parts of the country into the Zone is

22 INVESTMENT OPPORTUNITIES 21 permissible in accordance with the permit of the Zone Authority. The importation of the goods manufactured or processed in the Free Trade-Industrial and Special Economic Zones is allowed without any limitations amounting to the permitted percentage of goods importation determined by Commission setting the added value based on the total added value, the used material and domestic parts to the total price of the produced good. Furthermore, there is no need to register the order or open any letters of credit and it is neither subjected to the unauthorized and limited authorized requirements. Remark: the surplus of the permitted percentage quota of the goods imported to the Zone is subjected to the registration of the order for the foreign material used in the goods. The rights of the imported components and foreign raw material (imported from foreign country to the Zone) used in the goods manufactured or processed in the Trade- Industrial Free Zones and Special Economic Zones will be calculated and applied upon the final product to the country after the subtraction of the exemption gained by the added value (determined by the Commission which sets the added value) Remark: the Commission setting the added value is comprised of a representative from any Free or Special Economic Zones, representative of Customs of Iran, a representative of the Ministry of Industry, Mine, and Trade, and a representative of the Secretariat of the Supreme Council of the Free Zone.

23 22 IN IRAN S FREE ZONES The exemption of the production line equipment and machineries (first and second hand) is from payment of the Customs tariffs taken for the entry to the Free Zones. Visa-Free Residence, Entry, and Departure for the Foreign Nationals For direct entry into the authorized points of arrival and departure in the Free Zone, foreign nationals are there is no requirement to obtain a visa beforehand. A residence permit is issued for the duration of two weeks and may be renewed, up to six months upon the proposal by the Authority. To enter into the Free Zones adjacent to the other parts of the country where direct entry is not possible, foreign nationals have to obtain an entry visa from the Islamic Republic of Iran legations abroad. The request for the issuance of residence permit for the foreign nationals is applied through the Free zones Organizations.

24 INVESTMENT OPPORTUNITIES 23 The regulations on Employment of Workforce in the Free Zones It is allowed to utilize the services, expertise, and the skills of the foreign national experts in the workplace located in the Free Zone. Remark: under any circumstances, the proportion of the foreign workers should not exceed more than ten percent of the total staff of the each Zone. The work permit for the foreign nationals is issued at the discretion and by the request of the Organizations of the Free Zones and by the Labor and Employment Services Office. Company Registration in the Free Zones The registration of a company is permissible with 100 percent foreign ownership in the Companies, and Industrial and Intellectual Property Rights Registry Office. Any company registered in the Zone and run its principal office in the same Zone is considered as Iranian registered company in the Zone. The registration of any branch or agency for the foreign legal persons is permissible in the Companies, and Industrial and Intellectual Property Rights Registry Office.

25 24 IN IRAN S FREE ZONES Transferring of the land By the permission from the Free zones Organization, the object of the sale or leasing land contracts is allowed to be transferred to the third party. The necessary time limit for starting and constructing the building is set in the land assigning contracts. In case no action is taken within the aforementioned time limit written in the contract, the Organization can terminate the said contract. Leasing the land to the foreign investors is permitted. Absolute selling and transferring of the land to the foreign nationals is forbidden. In cases where the foreign investments result in the establishment of Iranian company, the land ownership is allowed under the name of the company in accordance with the investment plan and at the discretion of the Organization. From Regulations on Insurance Upon the proposal of the Organization, the insurance and reinsurance operations in the Free Zones are conducted by the institutions registered based on one of the following forms and acquired license from Bimeh Markazi (Central Insurance of IR Iran) of Iran in compliance with the regulations of this bylaw: The Iranian insurance joint stock or cooperative company cooperating with the Iranian and/or foreign natural or legal shareholders with all their shares in registered form. Institute and/or insurance agency

26 INVESTMENT OPPORTUNITIES 25 Upon the observance of the regulations on Establishment and Operation of Insurance Institute and the Regulations on the Registry in the Free Zones, the establishment of a branch by insurance institutes is permissible. The registration of insurance institute subject to the submission of registration permit will be issued by the Bimeh Markazi (Central Insurance of IR Iran) of Iran. Under the provisions of the Act on Establishment of Bimeh Markazi (Central Insurance of IR Iran) and Insurance Operation (including governmental and nongovernmental), the insurance institutes are allowed to operate in the Free Zones as one of the following forms: Establishing a branch and creating an agency by the observance of the Act on Establishment of Bimeh Markazi (Central Insurance of IR Iran) and Insurance Operation. The establishment of an insurance institute with the cooperation of domestic and foreign natural and legal persons is allowed within the respective regulations. From Monetary and Banking Regulations in Free Zones The banks and institutes, either with Iranian or foreign capitals and/or with the Iranian and foreign cooperation, are allowed to be registered in the Zone. The establishment of a bank, an institute, and operating the branches of the Iranian or Foreign Banks and institutes in the Zone are subject to the proposal of the Zones Organization, the agreement of the Secretariat of the Supreme Council of the Free Zones, issuance of establishment permit by Central Bank of Iran and the

27 26 IN IRAN S FREE ZONES registration of the company in the Company Registry Office of the Zones Ogranization. The establishment of representative offices for Iranian or foreign banks and institutes is subject to the agreement of the Free Zone Organization and the Secretariat of the Supreme Council of the Free Zone, and obtaining the approval of the Central Bank of Iran pertaining to the responsible person in charge of the representative and registry office in the Zone. The capitals of the banks and the institutes can be owned 100 percent by the foreign or Iranian national or the combination of the both. Under the authorized license, the Zone banking units can perform overseas banking operations. The overseas banking units shall not be entitled to perform banking operations and transactions by Iranian Rial. They are acquired to do all their operations and transactions exclusively by foreign exchange. The registration of a bank or an institute in the Zone is permitted in compliance with the regulations stipulated in the Trade Act through public or private joint company with the registered shares. Under the proposal the Organization, the agreement of the Secretariat and the issuance of the license by the Central Bank, a currency exchange can be established. There is a probability of the overseas banks with different international procedures. The establishment of a currency exchange in the Zone is subject to the proposal of the Organization and the issuance of the license by the Central Bank. The establishment of the currency exchange is exclusively authorized in a form of general partnership.

28 INVESTMENT OPPORTUNITIES 27 Overal Road Map of Iranian Free Zones toward IRAN Mission of Free Trade-Industrial Zones Main mission of free trade-industrial zones for realization of demised macro objectives includes: creating distinct environments through efficient and integrated management void of ordinary bureaucracy found in the mainland; enjoying free entry and exit of capital and benefits made by economic activities; existence of specific employment regulations; specification of financial incentives and tax exemption; possibility of foreign trade transactions excluded from national regulations about import, export and custom; and exemption of foreign nationals from visa requirements 2. Vision of Free Trade-Industrial Zones In light of existing enormous economic, social, and cultural potentialities and capacities and line with compiling and right implementation of developmental programs as well as effective guidance and leadership, free trade-industrial zones of the Islamic Republic of Iran within the time framework of 2012 would become pioneer free zones in the Middle East, Southwest Asia, Central Asia and Caucuses. They would enjoy up-to-date infrastructures, clear, easy and competitive business environment attractive for investors. They would play an effective role in national economic growth and strengthening strategic links with regional and international economies and they would turn into an

29 28 IN IRAN S FREE ZONES exemplary pattern for other regions of the country in terms of social, economic and cultural development. 3. Values observed in Free Trade-Industrial Zones Integrity: Integrity and honesty in interactions with people and stakeholders are emphasized values in free tradeindustrial zones and they function as the most important pillars for strengthening social capital in individual and collective communications. Citizen rights and stakeholder satisfaction: Observing dignity of people and citizens rights as well as gaining satisfaction of stakeholders, investors, economic actors and colleagues in management of free tradeindustrial zones are of great importance and value. Trustworthiness: Safeguarding national, organizational and public resources and people s rights in free trade-industrial zones and functioning as trustees regarding these resources are among fundamental values whose strengthening is a necessity to be practiced by all walks of life. Keeping promises: Keeping promises is regarded as the guarantor for gaining public confidence and improving social capital in free trade-industrial zones and we do our best to internalize such a value in managers, staff and all stakeholders. Rule of law: Rule of law is considered the main guarantor of order, discipline and justice. Rule of law is a valuable concept for all affairs of free trade-industrial zones. Creativity and innovation:

30 INVESTMENT OPPORTUNITIES 29 Creativity and innovation are valuable elements and pivotal foundations in the process of individual, organizational and social development. Innovators and creators would be praised and supported in free tradeindustrial zones. Integration, cohesion and systematic approach: Integration, internal cohesion and systematic approach in organizations and communities are seriously emphasized as important foundations of growth and sustainable and balanced development in free trade-industrial zones. Protecting and safeguarding environment: Undoubtedly, survival and sustainable development of the country hinges upon protecting and safeguarding the environment and our natural resources. Therefore, observing environmental standards and regulations, making optimal use of resources applying new technologies and maximum energy-saving to have clean and environmentally-friendly zones are important values emphasized in all individual, organizational and collective activities. 4. Strategic objectives of free trade-industrial zones A- Assisting realization of dynamic growth, improving indices of resilient economy and realizing objectives of the 20-year prospect macro document. B- Assisting diversification of national economic links to regional and international economies especially with those of regional countries and neighbors. C- Contribution to development and expedition of regional growth and improvement and social, economic and cultural empowerment of local communities.. 5. Strategies:

31 30 IN IRAN S FREE ZONES 5-1 First strategic objective: Assisting realization of dynamic growth, improving indices of resilient economy and realizing objectives of the 20-year prospect macro document. Strategies: - Expanding and facilitating production of goods and services in pivotal businesses, creating comparative advantages for zones and attracting domestic and foreign investors. - Expanding export of goods and services and active presence in regional and global markets. - Assisting transfer of advanced technologies to various parts of national economy and strengthening knowledge-based economy. - Facilitating and expediting procurement of necessary and strategic goods of the country. - Facilitating and assisting finance through developing money and capital markets in zones. - Improving business environment in zones through promoting transparency, preventing and combating economic, financial and administrative corruption, improving, simplifying and modifying processes and regulations, improving public services provided by organizations in zones and strengthening the unified window. - Developing infrastructures related to pivotal businesses in zones (sites, access ways, infrastructure affairs, transportation and communication). - Strengthening human capital, creating productive employment and contributing to reduction of poverty at regional and national levels. 5-2 Second strategic objective: Assisting diversification of national economic links to regional and international economies especially with those of regional countries and neighbors. Strategies: - Defining investment opportunities in proportion to needs and demands of markets and our comparative advantages in relation

32 INVESTMENT OPPORTUNITIES 31 to regional and neighboring countries to produce products and services in the cycle and the chain of value and the regional production chain. - Attracting regional and international investors for operation in zones. - Facilitating and encouraging export of goods and services to global and regional markets. - Participating in joint ventures with economic actors in regional and neighboring countries for marketing and market development of free zones. - Paving the ground for presence, operation, visit and easy trips of foreign nationals particularly from regional and neighboring countries 5-3 Third strategic objective Strategies: - Development of zones based on Master and strategic plans. - Goal-oriented development of infrastructural affairs (water, electricity, and gas) in free zones. -Goal-oriented development of transportation infrastructures in synergies with national, regional and international networks. -Goal-oriented development of information and telecommunication infrastructures in zones. - Development of efficient techno-vocational and skilldeveloping training centers at various levels based on needs and pivotal business demands of zones - Developing health and medical centers in line with needs of local community, economic actors and regional visitors. - Expanding economic, social and cultural capacities, potentialities and talents of local communities and organizing them for value creation.

33 32 IN IRAN S FREE ZONES - Planning and executing smart programs for sociocultural improvement of local communities and gaining their maximum participation in the development of zones. - Encouraging and motivating recruiting skillful labor force in businesses and industries created in zones.

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35 34 IN IRAN S FREE ZONES Process of investment Free Zones Submission of the written request by investors Reception of the written request and presenting business forms of investment Filling out investment forms by investors (presenting business plan as well as technical and financial documents in proportion to the plan Modification of the plan by investors Reviewing the proposed plan at the investment management department Approve No Yes Location proposal by the department of development and infrastructure Yes Any modification needed? Investors approve the proposed location No Finish Discussing the case in the commission of economic affairs / property appraisal and pricing Concluding a contract with investors Offering the land for investment Investors agree Notifying the approval Investors disagree Finish

36 INVESTMENT OPPORTUNITIES 35 Kish Free Zone Investment Oppertunities Headquarters: Sanaee St., Kish Free Zone Organization, Kish Island, I.R.IRAN Tel: Fax: Postal code: Tehran Office: No.35, Corner of Kish St., after Jahan Koudak Crossroad, Africa Highway, Tehran, I.R.IRAN Tel: Fax: Postal code: PO Box:

37 36 IN IRAN S FREE ZONES The resolution germane to making Kish Island exempt from tax was adopted in 1980 by the Revolution Council. This resolution was in line with the Tax Exemption Act of Southern Ports based on which certain ports were exempted from customs and import tariffs levied against legal consumer goods. However, as a free zone, Kish Free Zone started its operation on August 29, 1993 in an area of 9.15 acres following passage of the law concerning administration procedures of free zones by the Islamic Consultative Assembly (Iranian Parliament). Upon adopting another resolution by the Islamic Consultative Assembly on December 19, 2010 Hammurabi Island as well as the Greater Faror and the Lesser Faror Islands were annexed to Kish Free Zone. As the most important tourism hub among southern islands, Kish Free Zone enjoys appropriate transportation and marine infrastructures particularly its international airport expanding to handle up to 8 million passengers. Its port is developing. There is a modern passenger terminal, hotels, accommodation services, modern recreational and touristic service centers as well as various attractions and valuable touristic marine products. Some environmentally-friendly infrastructures including an airport and a port at Hamurabi island has been constructed to transform it to the calm and healthy tourism destination. Its proximity to oil fields and platforms which need logistics and support, existence of support capacities for providing equipment and establishment of headquarters of oil companies, offshore petroleum industries and marine drilling companies with more than 200 drilling service companies are among other features of Kish Free Zone. Some decent universities have established their international campuses at Kish Free Zone to prevent immigration of students who want to pursue their post-graduate studies abroad. Some knowledge-based and high-tech industries are active in this region. Some infrastructures have been envisaged there for establishment of financial regional and international markets. Relying on all these features, Kish Free Zone intends to become one of the main tourism, trade and offshore industry hubs in the region.

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39 38 IN IRAN S FREE ZONES Special axis of civilizations: Roman civilization 1. Project title: Special axis of civilizations- construction of Roman civilization 2. Location: Between Melal square and Hormoz square- Block No The Project:The Project: The proposed block is located adjacent to the especial axis of civilizations.considering the multipurpose recreational tourism identity of thisaxis, thepresent multi-function project employing original architectural elements of Roman civilization has been suggested as the representative of Roman civilization through the axis of civilizations. The primary purpose of applying symbolic architecture of Roman civilization is to illustrate the historical status of the civilization in the mind of audience as well as to depict thesymbolic architectural characteristics of the erain order to strengthen the nature of Tourism. Followings are some incentives for the present plan: 1. Estimated percent gross density for the project 2. Predicted multi-function plan for commercial project 3. Located in the new multi-purpose recreational-tourism zone in the island 4. The maximum permitted height was considered for the project based on flight altitude Range 6. Constructed Area: m²

40 INVESTMENT OPPORTUNITIES Access to infrastructures NO Required infrastructure Distance to project site 1 Water On project site 2 Power On project site 3 Tele- communication On project site 4 Main Road On project site 5 Airport 1/36 kilometers 6 Harbor 2/6km kilometers 8 - Investment methods A: Partnership B:Rent land

41 40 IN IRAN S FREE ZONES Special axis of civilizations Islamic Iranian civilization 1. Project title: Special axis of civilizations- Islamic Iranian civilization 2. Location: Between Melal square and Hormoz square- Block No The Project: The proposed block is located adjacent to the especial axis of civilizations. Considering the multipurpose recreational tourism identity of this axis, the present multi-function project employing original architectural elements of Islamic Iranian civilization such as wind tower and domes has been suggested as the representative of this civilization through the axis of civilizations. The primary purpose of applying symbolic architecture of Iranian Islamic civilization is to illustrate the historical status of the civilization in the mind of audience as well as to depict the symbolic architectural characteristics of the era in order to strengthen the nature of Tourism. Followings are some incentives for the present plan: 1. Estimated percent gross density for the project 2. Predicted multi-function plan for commercial project 3. Located in the new multi-purpose recreational-tourism zone in the island 4. The maximum permitted height was considered for the project based on flight altitude range 4. Annual Capacity: various in different seasons 5. Total Area: 3/10371 m² 6. Constructed Area: 5/51856 m²

42 INVESTMENT OPPORTUNITIES Access to infrastructures NO Required infrastructure Distance to project site 1 Water On project site 2 Power On project site 3 Tele- communication On project site 4 Main Road On project site 5 Airport 1 kilometers 6 Harbor 2 km kilometers 8 - Investment methods A: Partnership B:Rent land

43 42 IN IRAN S FREE ZONES Special axis of civilizations Greek civilization 1. Project title: Special axis of civilizations- Greek civilization 2. Location: Between Melal square and Hormoz square- Blocks No. 9 & 8 3. The Project: The proposed blocks are located adjacent to the especial axis of civilizations. Considering the multi-purpose recreational tourism identity of this axis, the present multi-function project employing original architectural elements of Greek civilization has been suggested as the representative of Greek civilization through the axis of civilizations. The primary purpose of applying symbolic architecture of Greek civilization is to illustrate the historical status of the civilization in the mind of audience as well as to depict the symbolic architectural characteristics of the era to empower the nature of Tourism. Followings are some incentives for the present plan: 1. Estimated percent gross density for the project 2. Predicted multi-function plan for commercial project 3. Located in the new multi-purpose recreational-tourism zone in the island 4. The maximum permitted height was considered for the project based on flight altitude range 4. Annual Capacity: Various in different seasons 5. Total Area: m² 6. Constructed Area: m²

44 INVESTMENT OPPORTUNITIES Access to infrastructures NO Required infrastructure Distance to project site 1 Water On project site 2 Power On project site 3 Tele- communication On project site 4 Main Road On project site 5 Airport 1/5 kilometers 6 Harbor 3 km kilometers 8 - Investment methods A: Partnership B:Rent land

45 44 IN IRAN S FREE ZONES Special axis of civilizations Chinese civilization 1. Project title: Special axis of civilizations- Chinese civilization 2. Location: Between Emam square and Melal square- Blocks No. 7 & 6 3. The Project: The proposed blocks are located adjacent to the especial axis of civilizations. Considering the multi-purpose recreational tourism identity of this axis, the present multi-function project employing original architectural elements of Chinese civilization has been suggested as the representative of Chinese civilization through the axis of civilizations. The primary purpose of applying symbolic architecture of Chinese civilization is to illustrate the historical status of the civilization in the mind of audience as well as to depict the symbolic architectural characteristics of the era to empower the nature of Tourism. Followings are some incentives for the present plan: 1. Estimated percent gross density for the project 2. Predicted multi-function plan for commercial project 3. Located in the new multi-purpose recreational-tourism zone in the island 4. The maximum permitted height was considered for the project based on flight altitude range 4. Annual Capacity: various in different seasons 5. Total Area: 40615/35 m² 6. Constructed Area: 162/461 m² 7. Project completion period: 4 years 8. Estimated fixed capital:.

46 INVESTMENT OPPORTUNITIES Estimated working capital:. 10. Access to infrastructures NO Required infrastructure Distance to project site 1 Water On project site 2 Power On project site 3 Tele- communication On project site 4 Main Road On project site 5 Airport 0/5 kilometers 6 Harbor 3 km kilometers 11 - Investment methods A: Partnership B:Rent land

47 46 IN IRAN S FREE ZONES 1. Project title: Safin traditional cafes and trade stands 2. Location: Old Safin districtoject: Despite the significant and tremendous changes which have serious and adverse effects on physical-environmental structure of old Safin over these years, this district still preserves and represents invaluable remnants of Iran southern cultural heritage through its architectural and rural environment structure. Regarding these facts, it is of utmost importance to reclaim and restore the lost identity of this district. On the other hand, the indigenous cultural potentials, architectural structure, and the unprecedented texture of the district provide the chance of area redevelopment and extensive production. With respect to the cultural potentials as well as the physicalenvironmental attractiveness of the Safin texture in terms of historical, natural, and cultural aspects, the project of tourism market with the aim of constructing a modern shopping center in the indigenous texture is on the agenda. The commercial complex with an area of 4,000 square meters and with the great emphasis on indigenous cultural-physical factors provides the visitors with the opportunity to purchase in a modern architectural complex built based on the values of historical texture. Annual Capacity: persons per year 5. Total Area: - 6. Constructed Area: 4000 sq. m.

48 INVESTMENT OPPORTUNITIES Project completion period: 2 years 8. Estimated fixed capital: 800 billion Rials 9. Estimated working capital:30 billion Rials 10. Access to infrastructu NO Required infrastructure Distance to project site 1 Water feasible at the project site 2 Power 150 meters to the nearest substation 3 Tele- communication feasible at the project site 4 Main Road 800 m 5 Airport 7 kilometers 6 Harbor 6 km kilometers 11 - Investment methods Partnership

49 48 IN IRAN S FREE ZONES 1. Project title: Safin traditional cafes and trade stands 2. Location: Old Safin district 3. The Project: Regarding the cultural potentials as well as the physicalenvironmental attractiveness of the Safin texture in terms of historical, natural, and cultural aspects, the project of the traditional cafes and trade which aims to attract tourists using local properties is on the agenda. This complex with approximately 350 square meters area and 500 square meters of backup space and with the emphasis on indigenous cultural- physical factors can provide tourists with the chance of taking advantage of visiting a place with indigenous architecture and modern architectural standards, based on values of historical texture. 4. Annual Capacity: 500,000 persons 5. Total Area: 500 sq. m. 6. Constructed Area: 350 sq. m. 7. Estimated fixed capital: 11 billion Rials 8. Estimated working capital: 3 billion Rials 9. Access to infrastructures 10 - Investment methods A: Partnership

50 INVESTMENT OPPORTUNITIES Project title: Safin tourism-residential village 2. Location: old Safin district 3. The Project: Regarding the cultural potentials as well as the physical environmental attractiveness of Safin texture in terms of historical, natural, and cultural aspects, the plan of the Tourism- Residential Village is on the focus to provide residential place based on the local properties. This residential complex with approximately 2,000 square meters accommodation area and also 5,000 square meters of backup space and with the emphasis on indigenous culturalphysical factors can provide tourists with the chance of taking advantage of dwelling in Tourism-Residential Village in a place with local architecture and new architectural standards, based on the values of historical texture. 4. Annual Capacity: 200,000 tourists per year 5. Total Area: 5000 sq. m. 6. Constructed Area: 2000 sq. m. 7. Estimated fixed capital: 78 billion Rials 8. Estimated working capital: 35 billion Rials

51 50 IN IRAN S FREE ZONES 9. Access to infrastructures NO Required infrastructure Distance to project site 1 Water At the project site 2 Power At the project site 3 Tele- communication At the project site 4 Main Road At the project site 5 Airport 7km 6 Harbor 6km 10 - Investment methods A: Partnership

52 INVESTMENT OPPORTUNITIES Project title: Safin cultural and sea restaurant complex 2. Location: Old Safin 3. The Project: Regarding the cultural potentials as well as the physicalenvironmental attractiveness of the Safin texture in terms of historical, natural, and cultural aspects, the project of sea restaurant and cultural complex with the purpose of creating modern cultural center in the indigenous texture of Safin along with offering catering services to tourists is on the agenda. This cultural- tourism complex with an area of 2700 square meters and with great emphasis on indigenous cultural-physical factors provides the possibility of offering services to tourists in a modern architectural area based on values of historical texture.e 4. Annual Capacity: persons per year 5. Total Area: Constructed Area: 2700 sq. m. 7. Estimated fixed capital: 54 billion Rials 8. Estimated working capital: 20 billion Rials 9. Access to infrastructures

53 52 IN IRAN S FREE ZONES NO Required infrastructure Distance to project site 1 Water At the project site 2 Power At the project site 3 Tele- communication At the project site 4 Main Road At the project site 5 Airport 7km 6 Harbor 6km 10 - Investment methods A: Partnership

54 INVESTMENT OPPORTUNITIES Project title: Indoor and Outdoor Amusement Park 2. Location: Near the City Park 3. The Project: The project is to construct an indoor and outdoor amusement park, an exciting roller coaster in accordance with the international standards to create a space for entertainment and fun that will be attractive to all ages. The outdoor section contains 18 different exciting games such as Vortex, Frisbee, flying swings, horror ring, space skate, ranger, spaceship, UFO, electric cars, Saba ship and waterfall for adults and flying seats, electric cars, Saba ship, train, rally, Dragon (around the water pool) and spacecraft for children. This section of the amusement park will be spread on an area of 20,000 square meters that 4080 square meters of its is allocated to the buildings, while the rest belongs to green space and landscaping. The indoor section includes a variety of exciting and adventurous electronic and mechanical games, bowling, the world of computer games, video game machines, prize machines, game machines for children, table games, mini-golf, multidimensional cinemas, restaurants, coffee shops and fast food. The amusement park will be spread on an area of 15,000 square meters of which 11,000 square meters will be allocated to the building while the rest belongs to green space and landscaping.

55 54 IN IRAN S FREE ZONES Constructing an exciting roller coaster in accordance with the international standards is another part of this project that will be made of steel structures. The approximate length is 2000 meters, the maximum height of 60 m, a speed of 150 kilometers per hour, during the approximate time of 3:30 and has 3 trains, each with a capacity of 32 people and will be 960 people per hour. The section on the site of the game Island, an area of 10,000 square meters and 5,000 square meters of space is intended to be sued for training purposes, while the rest belongs to green space and landscaping. 4. Annual Capacity: 1.5 million people 5. Total Area: 45,000 sm2 6. Constructed Area: 20,080 sm2 7. Estimated fixed capital: 2025 billion Rials 8. Estimated working capital: 25 billion Rials 9. Access to infrastructures NO Required infrastructure Distance to project site 1 Water on the project site 2 Power on the project site 3 Tele- communication on the project site 4 Main Road on the project site 5 Airport 5km 6 Harbor 12km 10 - Investment methods A: Partnership B: contracting

56 INVESTMENT OPPORTUNITIES Project title: Construction of a Ferris wheel with a height of 60 meters 2. Location: Near the City Park 3. The Project: The project is to construct a Ferris wheel with a height of 60 meters. This Ferris wheel has 6 capsules of each which having the capacity of 42 people. Also the time of per orbit will be 30 minutes. The project also has an area of 490-meter restaurant and a coffee shop as well as 490 meters of commercial area. The project will be constructed in an area of 5,000 square meters of which 1,000 square meters will be allocated to the buildings and the rest belongs to green space and landscaping. The substructure of the buildings is 1400 square meters. 4. Annual Capacity: 5,000 people 5. Total Area: 500 sm2 6. Constructed Area: 1400 sm2 7. Estimated fixed capital: 448 billion Rials 8. Estimated working capital: 41 billion Rials

57 56 IN IRAN S FREE ZONES 9. Access to infrastructures NO Required infrastructure Distance to project site 1 Water on the project site 2 Power on the project site 3 Tele- communication on the project site 4 Main Road on the project site 5 Airport 5km 6 Harbor 12km 10 - Investment methods A: Partnership B: contracting

58 INVESTMENT OPPORTUNITIES Project title: Concert Hall of Persian Gulf 2. Location: West of Kish Island (Cottage Area of Hoor) 3. The Project: At present a cultural and artistic center equipped with standard and full facilities which has a unique identity and index that is specialized with modern technical facilities and equipment to host music, theater, art and cultural activities, special events at the national and regional level is necessary in the country. Regarding the issue that Kish Island has the benefits of free zones and facilitates the conditions for the entry and stay of foreign tourists and international travelers, along with other tourist attractions is a good place to construct such a unique scale at the national level. In addition, the definition of such complex is aligned with general destination design and development goals in Kish Island. The project capacity is for 4,500 people simultaneously. The infrastructure is 42,000 square meters and the ground floor is 17,000 square meters. The main concert hall houses 2,500 to 3,000 people, the capacity of the theater hall is 500 people, and the capacity of two black box theater halls is 250 people, the capacity of the auditorium/cinema is 600 people and the capacity of two cinema halls is a total of 400 people. 4. Annual Capacity: Total Area: 200,000 sm2

59 58 IN IRAN S FREE ZONES 6. Constructed Area: 42,000 sm2 7. Estimated fixed capital: 853 billion Rials 8. Estimated working capital: 11 billion Rials 9. Access to infrastructures NO Required infrastructure Distance to project site 1 Water on the project site 2 Power on the project site 3 Tele- communication on the project site 4 Main Road on the project site 5 Airport 10km 6 Harbor 12km 10 - Investment methods A: Partnership B: contracting

60 INVESTMENT OPPORTUNITIES Project title: Food Courts of Museum and Symbol Beach Park 2. Location: West Island (Kish symbol -61hectare site) 3. The Project: The Greek ship and Kish Symbol together make an attractive tourist area. Also, Hoor nose, as the second tourist attraction spot makes this area more attractive. So a linear Food Court is suggested that can be continued by Hoor nose. Such a complex, especially in the evening, makes an active and alive space in the western part of the island. Also, Jahan Road that provides appropriate access for cars and enough space for parking is another factor making this linear beach complex (linear Food Court) enabled. 4. Annual Capacity: 3 million people 5. Total Area: sm2 6. Constructed Area: 1,500 sqm 7. Estimated fixed capital: 85 billion Rials 8. Estimated working capital: 30 billion Rials

61 60 IN IRAN S FREE ZONES 9. Access to infrastructures NO Required infrastructure Distance to project site 1 Water on the project site 2 Power on the project site 3 Tele- communication on the project site 4 Main Road on the project site 5 Airport 10km 6 Harbor 12km 10 - Investment methods A: Partnership B: contracting

62 INVESTMENT OPPORTUNITIES Project title: Subspecialty Hotel Hospital 2. Location: The south of the Island 3. The Project: The project pertains to the construction of a subspecialty hospital, with the aim of improving health tourism services. The project consists of the following sections: A hospital with 200 general care beds, 36 intensive care beds, and 60 emergency beds. 5 subspecialty clinics, 3 equipped operating rooms, and all specialty and subspecialty sections have been considered for this hospital. This hospital will be constructed in 3 stories with constructed area of 24,000 m2 and in a land area with 63,000 m2. This project also consists of a hotel with 250 equipped rooms which are considered for patients and their families. This hotel will be built in an area of 32,000 m2 and in 6 stories. A residential complex is considered for doctors and hospital personnel in this project. This complex has 42,000 m2 constructed area which will be built in an area of 70,000 m2. 4. Annual Capacity: 570,000 people per year 5. Total Area: m2 6. Constructed Area: 98,000 m2 7. Estimated fixed capital: 2420 billion Rials.

63 62 IN IRAN S FREE ZONES 8. Estimated working capital: 34 billion Rials. 9. Access to infrastructures NO Required infrastructure Distance to project site 1 Water on the project site 2 Power on the project site 3 Tele- communication on the project site 4 Main Road on the project site 5 Airport 5km 6 Harbor 10km 10 - Investment methods A: Partnership

64 INVESTMENT OPPORTUNITIES Project title: Construction of Hydrotherapy Center 2. Location: The South of the Island 3. The Project: This project is related to the construction of a health center with hydrotherapy, physiotherapy, massage therapy, acupuncture, and traditional medicine services. In this center, modern topical treatment services will be offered with most advanced equipments along with topical treatment specialists. This project consists of the following sections: Hot spa-cold spa and pools Wet-dry Sauna Jacuzzis and standing tubs Equipped body building salons Physiotherapy salons Counseling center of traditional medicine services Massage therapy service salons Ichthyo-therapy service salons Acupuncture service salons Medicinal plants and natural treatment products sale center Iranian traditional bathrooms offering massage and Iranian beverages Iranian local healthy natural beverage and edible buffets 4. Annual Capacity: 500,000 people per year 5. Total Area: 35,000 m2 6. Constructed Area: m2 7. Estimated fixed capital: 627 billion Rials

65 64 IN IRAN S FREE ZONES 8. Estimated working capital: 10 billion Rials 9. Access to infrastructures NO Required infrastructure Distance to project site 1 Water on the project site 2 Power on the project site 3 Tele- communication on the project site 4 Main Road on the project site 5 Airport 5km 6 Harbor 10km 10 - Investment methods A: Partnership B:Absolute purchase of land C:Rent land

66 INVESTMENT OPPORTUNITIES Project title: New Domestic and International Terminals and Power Room for Kish Airport 2. Location: Kish International Airport 3. The Project: The building for new passenger terminal at Kish Airport is 41,822 M2 and comprises public areas, customs (departure and arrival), corridors, passport control, restaurants etc. Besides, the power room(1865 M2) and its passage to connect it to the terminal main building, landscaping have been designed according to the latest world architecture and airport technology. The designs have been localized to preserve the cultural and Islamic bases. 4. Annual Capacity: 4.4 Million 5. Total Area: M2 6. Constructed Area: M2 7. Project Construction period: 5/2 year 8. Costs: 3500 million IRRs

67 66 IN IRAN S FREE ZONES 9. Access to infrastructures NO Required infrastructure Distance to project site 1 Water on the project site 2 Power on the project site 3 Tele- communication on the project site 4 Main Road on the project site 5 Airport 5km 6 Harbor 10km 10 - Investment methods A: Partnership B: contracting

68 INVESTMENT OPPORTUNITIES 67 Qeshm Free Zone Investment Oppertunities Headquarters: crose pardis, gheshm island Tel: Fax: Tehran office No.19 29th Alley, Khalid Eslambuli St, Tehran Tel : Fax :

69 68 IN IRAN S FREE ZONES

70 INVESTMENT OPPORTUNITIES 69 As per the resolution adopted by the Cabinet, establishment of Qeshm Free Zone on Qeshm island was finalized on January 27, Pursuant to the Qeshm Free Zone Island formally started its operation on August 29, 1993 in an area of 30,000 acres following passage of the law concerning administration procedures of free zones by the Islamic Consultative Assembly (Iranian Parliament). Some capacities and resources existing on Qeshm Free Zone include the strategic location of Qeshm Island in the Persian Gulf, proximity to Oman, existence of capacities for developing seabased industries and energy, oil, gas, steel and processing industries, enormous cheap natural and domestic resources together with energy industries relying on these natural resources, availability of hydrocarbon resources and gas fields surrounding the island for establishing energy parks, existing capacities for fishery industries as well as upstream and downstream industries, availability of potentialities for producing biotechnological products such as cosmetic materials, anti-cancer drug and gelatin food stuffs, existence of biotechnological educational centers, possibility of transferring technology and issuing engineering technical services in these fields, offering bunkering services to transit vessels passing the international waterway of the Persian Gulf considering the closeness of the island to the coastline and suitable depth of water for anchoring together with relevant services such as catering, repairing vessels and containers, offering welfare services and valuable natural tourism potentialities. Effective utilization of these potentialities in line with action plan framework for attracting domestic and international investors, increasing the share of the region in the GDP and regional development and growth are on the agenda of Geshm Free Zone Organization.

71 70 IN IRAN S FREE ZONES 15MW Gas turbine with CHP The electrical energy produced on-site reduces risk factors of transmission, network distribution and large power plants. In this way, a permanent production of electrical energy in the continuity of electric energy supply is guaranteed while the present network is still available. Investment Estimation: Fixed capital: 1.7 million Working capital: 1.3 million Total capital: 3 million Facilities to be presented: All infrastructural facilities, water, power, telecommunication and fuel supply, and all required permits have been received and the suitable land has been determined

72 INVESTMENT OPPORTUNITIES 71 Qeshm International Airport Development Qeshm International Airport, one of the five special airports of the Islamic Republic of Iran, opened in The other features of this airport are locating on the road A1 as an international airway to connect the west of the Middle East and Far East, suitable for passenger transportation, cargo transit, catering and selling fuel to passing aircrafts, the ability to store more than 3.5 million liters of fuel daily to gas up wide-body aircrafts, equipped with one of the most advanced airport firefighting vehicles (Panther 6 6), the airport category is 9 and so on. In order to launch and expansion of domestic and international flights, airport development and providing services to engage more cargo flights at the airport, along with the use of transit fuel is one of the priorities of Qeshm Free Area Organization for investment. Now Qeshm International Airport with more than 10 domestic and international flights on routes Tehran, Mashhad, Shiraz, Isfahan, Kermanshah and Dubai daily, is one of the major airports of the country.

73 72 IN IRAN S FREE ZONES Bunkering Terminal Construction Qeshm Island situation mainly the southern coastline which is only 5 seamiles far from the Persian Gulf International canal, is one of the most appropriate situations to make this island a giant fuel or bunkering center. Qeshm Free Zone Organization has started to support investment in Bunkering Terminal Construction to store exportable oil products (Mazut, diesel, etc.) and ships bunkering operation, due to the high traffic in the Strait of Hormoz. Project Capacity: 150 thousand tons in a year Situation of the Project s Progress: 7 % Internal Rate of Return: 27% Investment Estimation: Total capital: 100 million Facilities to be presented: All infrastructural facilities, water, power, telecommunication and fuel supply, and all required permits have been received and the suitable land handover has been determined.

74 INVESTMENT OPPORTUNITIES 73 Cage Fish Culture, Aquatics Production Processing And Aquatics Value Added Cage culture uses existing water resources (ponds, rivers, estuaries, open ocean, etc.). but confines the fish inside of some type of mesh enclosure. The mesh retains the fish, making it easier to feed, observe and harvest them. The mesh also allows the water to pass freely between the fish and surrounding water resource, thus maintaining good water quality removing waste. In Qeshm there are number of companies which already started the venture, with around production capacity of MT. There is also one pioneer company which has established the fish nursery with capacity of 2000 T per year in 24 cages and it is already playing its role in the market. According to a research on marine cage culture, done by Norwegian company REFA, Qeshm Island, due to environmental conditions, number of good quality sites available, has the exceptional potentials for practicing of fish cage culture and become hub of aquaculture. Considering the high potentiality of the Qeshm Island in using the unlimited sources of Persian Gulf to supply the primary materials from one side and supporting the inland (local) production from the other side, fish and shrimp processing which contains washing, applying chlorine, sorting, size-determination by grading machine and freezing and also creating a Value Added for the sea products like fish schnitzel, nugget, sausage, fish and shrimp chips, etc is economically feasible in massive scales. Layout of the Project: Project Location and Capacity: As it is specified in the above map, a district near the beach is considered in order to is allocate suitable land after presenting and approving the project plans.

75 74 IN IRAN S FREE ZONES Minimum Capacity with Economic Rationalization: Producing 5000 tons for a period of 8 to 10 months Land required for implementation of the project: About 10 hectares Investment Estimation: Fixed capital: 6 8 million Working capital: million for5-6 month period Total capital: 28 million Facilities to be presented: Infrastructural facilities, water, power, telecommunication and fuel supply, allocating suitable land after presenting and approving the plan and receiving all required permits

76 INVESTMENT OPPORTUNITIES 75 Combined Cycle Power Generation Plant To meet developmental requirements of the island in order to maintain reliable and constant support of power and water supply, a Combined Cycle Power Generation Plant, to produce electricity and potable water simultaneously, is under construction. This plant contains two gas units and a steam utility unit which can totally produce 500 MW of power. This plant is under construction in Kaveh Industrial park by sector by support of Qeshm Free Zone Organization. Project Capacity: 4 million Kilowatt/hour electrical power and 5.5 million cubic meters of water Situation of the Project s Progress: 8 % Internal Rate of Return: % Investment Estimation: Fixed capital: 381 million Working capital: 1.5 million Total capital: million Facilities to be presented: All infrastructural facilities, water, power, telecommunication and fuel supply, and all required permits have been received and the suitable land in Kaveh Industrial Park has been determined

77 76 IN IRAN S FREE ZONES Heavy Crude Oil Refinery Construction The studies by Foster wheeler British Company about the best and the most economic region in Iran for storage of oil and oil products, as a logistic region for Khark Island as well as supplying the feed for Bandar Abbas refinery development plan, Qeshm had been chosen as the best place for this purpose. The existence of the infrastructural installations, the strategic situation of this island, also the increasing trend of refinery products consumption, to reach a balance between refining and producing the crude oil, and finally establishment of tank farms of crude oil with 30 million barrels capacity, an oil refinery with feed supply from Soroosh and Nowrooz oil fields in the Persian Gulf is under construction in north of the Qeshm Island; to export and import different crude oil and various refinery oil products is considered very vital and important.

78 INVESTMENT OPPORTUNITIES 77 Project Capacity: 40 thousand tons of the exportable heavy crude oil in a day Situation of the Project s Progress: 4 % Internal Rate of Return: %

79 78 IN IRAN S FREE ZONES Investment Estimation: Total capital: 290 million Facilities to be presented: All infrastructural facilities, water, power, telecommunication and fuel supply, and all required permits have been received and the suitable land handover has been already done

80 INVESTMENT OPPORTUNITIES 79 PERSIAN GULF REGIONAL TRANSPORTATION NETWORK The development of Qeshm Island as well as Kaveh port to one of the largest ports of the country for export and import of goods both require appropriate facilities, easy and fast transit of goods to and from the island. The construction of the Persian Gulf Bridge which will connect Qeshm to the mainland as well as the implementation of a railway line and a highway can supply this need. Project objectives are construction of a bridge facility including marine, civil, structural, piping, electrical and any other necessary amenities and equipment to transport cars, trucks, trains, water, oil, gas and liquid products transporting pipe lines and cable connections (electricity, telecommunications, internet) from Qeshm Island to Iran s main land and vice versa. Investment Estimation: Total capital: 650 million

81 80 IN IRAN S FREE ZONES Facilities to be presented: Infrastructural facilities, water, power, telecommunication and fuel supply, allocating suitable land after presenting and approving the plan and receiving all required permits

82 INVESTMENT OPPORTUNITIES 81 Petrochemical Complex: Production of Propylene and By-products With due attention to the existence of Oil and Gas fields of Gavarzin, Salakh and Hengam regions in Qeshm Island, and to meet the Island needs of natural gas, considering the Oil and Gas projects of the organization as well as supplying the need to fuel for industries and gas-based power plants in Qeshm Island, it is essential to put all capacities and potentialities available in priority in order to supply the required gas. Further to the negotiations made with the Iranian National Petrochemical Industries Company, the best choice to invest in this field is Methanol and By-products of the chain of the Methanol classifications. To bring this fact into real, Qeshm Free Zone Organization fully supports both local and international investors. Project Capacity: 500 thousand tons of the Poly propylene and LPG by-products and Pyrolysis Petrol in a year Situation of the Project s Progress: Ready for establishing the constructing installations Internal Rate of Return: 22.7 % Investment Estimation: Fixed capital: 1325 million Working capital: 16 million Total capital: 1341 million Investment Type: Direct Investment

83 82 IN IRAN S FREE ZONES Shahid Zakeri Harbor Development Plan Passenger - port of Shahid Zakeri in Qeshm Island is on north coast of the old city of Qeshm. This port is considered among the most important harbors since it hosts more than 45 high speed vessels (under 1000 ton) sailing to and from Bandar abbas and Hormoz to Qeshm Isaland, daily. It includes a transit hall for passengers with a capacity of 400 people and equipped with 7 concrete finger-type jetty-posts and 2 floating jetties suitable to high and low tide due to which the depth of the jetties varies from 5.1 in low tide to 5.3 in high tide. Qeshm Island hosts lots of Iranian visitors in the second half of the year as well as Nowrooz holidays due to its suitable weather condition. In fact that this port is one of the most major marine routes for traveling to Qeshm Island, by increasing 40 percent in sea trips, we reach to 330 sea trips daily which shows the present facilities cannot response this number of visitors and passengers. Thus, the development of this port, enabling provision of better support services and reaching the visitors satisfaction, is inevitable essential.

84 INVESTMENT OPPORTUNITIES 83 Investment Estimation: 14 million Facilities to be presented: Infrastructural facilities, water, power, telecommunication and fuel supply, allocating suitable land after presenting and approving the plan and receiving all required permits

85 84 IN IRAN S FREE ZONES Solar Park 10 MW Iran with about 300 sunny days per year is one of the best countries in the world in terms of solar energy potential. Considering the geographical location of Qeshm Island, solar energy is one of the best ways to produce power and energy in comparison with the other models in terms of cost, transportation and maintenance. Investment Estimation: Total capital: 12 million Facilities to be presented: Infrastructural facilities, water, power, telecommunication and fuel supply, allocating suitable land after presenting and approving the plan and receiving all required permits

86 INVESTMENT OPPORTUNITIES 85 Water Desalination Plant Helping develop the industrial sector with a focus on an advanced technology is one of the Qeshm Free Area missions. In order to become hub of energy consuming industries such as steel, aluminum, petrochemical, needed to water supply infrastructure for the region. The aim of the proposal is needed to provide water-based industries in the region. Project Capacity: 100,000 m3 per 24 h Investment Estimation: Fixed capital: 63 million Working capital: 2 million Total capital: 65 million

87 86 IN IRAN S FREE ZONES Facilities to be presented: All infrastructural facilities, water, power, telecommunication and fuel supply, and all required permits have been received and the suitable land has been determined.

88 INVESTMENT OPPORTUNITIES 87 Chabahr Free Zone Investment Oppertunities Headquarters: chabahar Trade industrial Free Zone Organization, Chabahar, postal code: Tel: Fax: Tehran office No.19 29th Alley, Khalid Eslambuli St, Tehran Tel: Fax:

89 88 IN IRAN S FREE ZONES

90 INVESTMENT OPPORTUNITIES 89 Chabahar Free Zone was designated to be established to properties located on the eastern part of Chabahar Bay in tandem with the resolution adopted by the Board of Ministers on May 8, Chabahar Free Zone formally started its operation on August 29, 1993 in an area of 14,000 acres following passage of the law concerning administration procedures of free zones by the Islamic Consultative Assembly (Iranian Parliament). As the only Iranian free zone located on the gateway of the Indian Ocean, having access to the Subcontinent, being located on the international corridor connecting India to Russia and Central Asia and Afghanistan to high seas, Chabahar Free Zone is making efforts to transform into an investment, trade and transit hub for these areas. Chabahar Free Zone enjoys fishery and marine sources such as sea algae that can function as an important potentiality of the zone for upstream and downstream development of the local communities enjoying traditional experiences in this field. Chabahar enjoys great environmental potentialities in term of renewable energies such as wind, solar, thermal and wave energies which can be utilized for producing products and equipment dependent on these sectors and meeting needs of industries, agricultural and service activities through these types of energy sources. Some main tasks on the agenda for development of Chabahar Free Zone and attracting investment pursued by Chabahar Free Zone Organization include making use of mineral capacities existing in the zone and establishing processing industries for ferrous and non-ferrous ores, utilizing steel industries capacities and those of Negin Mokran Petrochemical Complex, and developing transportation infrastructures and energy resources.

91 90 IN IRAN S FREE ZONES Project introduction: automotive industries industrial park Sectionec: Infrastructure and industrial development The area of assigned site: 238 hectares Responsible unit : Economic and Investment Deputy Support unit : Infrastructure and technical deputy Project description&justi_cation / Objectives: The purpose of proposed Automotive industrial park in Chabahar Free Zone is to provide welfare, support centralized services and facilities and public infrastructures for establishment an automotive industry pole of Chabahar Free Zone for providing the domestic demands and exporting abroad.the intended industrial park has been localized and the preliminary studies have been done and it is ready to be accepted by the consultant for conducting expert studies for the implementation of projects. The expected infrastructures for industrial city are: Core facilities:parts ready to transfer, rental workshop spaces, Support facilities:enclosure, roads, Electricity, solid waste management and disposal system, refined water supply system, management of flowing waters, rainwater harvesting, sewage treatment, Landscape lighting Common facilities: Equipped laboratories, training center, trade and exhibition centers and holding conferences, warehouse, packing units, accommodation and personnel cafeteria Investment volume: Approximate investment: 82million dollars

92 INVESTMENT OPPORTUNITIES 91 Investment method: a.direct foreign and domestic investment b.participation with the private sector in the form of land lease based on long-term lease or participation in investment, in which land and licenses are provided by the Free Zone Organization How to start the project: Implementation of the project is possible after the submission of the proposal with the detailed plan to Chabahar Free Zone Organization and the confirmation.

93 92 IN IRAN S FREE ZONES Project introduction: Chemical industrial park The area of assigned site :37 hectares Responsible unit :Economic and Investment Deputy Project description and justification / Objectives: The purpose of proposed light chemical industry industrial park in Chabahar Free Zone is to provide welfare, support centralized services and facilities and public infrastructures for establishment of the light chemical industries for supplying domestic demands and export to abroad. The intended place has been located by the organization. And at present some units in the industrial park including Arvand company, Kandovan Pars company etc are active. The expected infrastructures for the industrial park are: Core facilities:prepared parcels of land, multi- storey and single- storey multi-purpose industrial sheds Support facilities: Enclosure, Road communications in the industrial park, Electricity network, industrial and drinking water Supply Network and Wastewater collection network,solid waste collection, management system of flowing waters, Central wastewater treatment, sidewalks, Telecommunication services,green space etc Common facilities: Equipped laboratories, trade and conference center, parts and product warehouse units, Research and Development Center,etc How to start the project: Implementation of the project is possible after the submission of the proposal with the detailed plan to Chabahar Free Zone Organization and the confirmation.

94 INVESTMENT OPPORTUNITIES 93 Documents required for the project:potential investors or developers are invited to implement the intended project in the Free Zone by investing and establishing a company. These companies will be subject to legal incentives in free zones Further details:the project can be converted to EPCF or Turnkey contracts. -The above mentioned amounts are only for preparatory operation and they are updated at the time of implementation.the investment required for the implementation of each separate designed unit is independent and it will be added to the above amount

95 94 IN IRAN S FREE ZONES Project Profile: Dates processing specialized industrial park Section:Infrastructure and industrial development The area of assigned site :About 24 hectares Responsible unit : Economic and Investment Deputy Project description and justification / Objectives: The purpose of proposed specialized dates processing industrial park in Chabahar Free Zone is to create a centralized complex with production, welfare infrastructure support facilities for these products for export and domestic use. The initial locating studies have been carried out by the consultant and at present three manufacturing units have been accepted. They are accepting the relevant plans in the industrial park. Specialized facilities: Outdoor spaces, rental workshop spaces, cold storage for keeping dates, patterned palm grove, Tissue culture laboratory research specialized center Support facilities: Enclosure, access roads, Electricity, solid waste management and disposal system, refined water supply system, management of water cause by water flood, rainwater harvesting, sewage treatment, Landscape lighting. Common facilities: Equipped laboratories, trade and exhibition centers, holding conferences, packing units, accommodation and personnel cafeteria, Research and Development Center Investment volume: Approximate cost:over8.5 million dollars Investment method: a.direct foreign and domestic investment b.participation with the private sector in the form of land lease based on long-term lease or participation in investment, in which land and licenses are provided by the Free Zone Organization How to start the project:implementation of the project is possible after the submission of the proposal with the detailed plan to Chabahar Free Zone Organization and the confirmation.

96 INVESTMENT OPPORTUNITIES 95 Documents required for the project:potential investors or developers are invited to implement the intended project in the Free Zone by investing and establishing a company. These companies will be subject to legal incentives in free zones Further details:the project can be converted to EPCF or Turnkey contracts. -The above mentioned amounts are only for preparatory operation and they are updated at the time of implementation.the investment required for the implementation of each separate designed unit is independent and it will be added to the above amount

97 96 IN IRAN S FREE ZONES Project introduction: construction of desalination system Section: Auxilliary facilities and infrastructures development The area of assigned site:about 90 hectares Responsible unit :Economic and Investment Deputy Project description and justification / Objectives: This project is designed to provide the water required for the region and neighboring areas located in a dry area with low annual rainfall. Currently, Chabahar Free Zone Organization purchases drinking water from a factory outside the area, but the industry growth will significantly change the daily water needs and water storage in the near future. Production of 100,000 cubic meters of water is intended to meet the needs of consumers of residential and light industries in the region. Investment volume: Approximate investment: 100 to 120 million dollars Investment method: a.direct foreign and domestic investment b.participation with the private sector in the form of land lease based on long-term lease or participation in investment, in which land and licenses are provided by the Free Zone Organization How to start the project: Implementation of the project is possible after the submission of the proposal with the detailed plan to Chabahar Free Zone Organization and the confirmation.

98 INVESTMENT OPPORTUNITIES 97 Documents required for the project:potential investors or developers are invited to implement the intended project in the Free Zone by investing and establishing a company. These companies will be subject to legal incentives in free zones Further details: The project can be converted to EPCF or Turnkey contracts. -the above mentioned amounts are only for preparatory operation and they are updated at the time of implementation.the investment required for the implementation of each separate designed unit is independent and it will be added to the above amount

99 98 IN IRAN S FREE ZONES Project introduction: Renewable Energies industrial park Section: Infrastructures and construction The area of assigned site:about 730 hectares Responsible unit: Infrastructure Deputy and Economic and Investment Deputy Project description and justification / Objectives: This project is for the production of energy from the renewable sources. Currently energy production is dependent on fossil fuels. This project is an indicator for reduction of greenhouse gases and, consequently, environmental protection. The geographical location of Chabahar for its proximity to the equator, and having 631 sunny days, has created a unique opportunity for the construction of solar industries. The project is intended for 400 megawatt-hours of solar energy. The project is considered to produce 5 million megawatts of solar energy. There are two registered projects with a capacity of 20 megawatts per hour and the excess demand for the free zone will be provided through new investments. Investment volume:approximate investment: 192 million dollars Investment method: a.direct foreign and domestic investment b.participation with the private sector in the form of land lease based on long-term lease or participation in investment, in which land and licenses are provided by the Free Zone Organization How to start the project: Implementation of the project is possible after the submission of the proposal with the detailed plan to the Free Zone Organization and the confirmation. Documents required for the project:potential investors or developers are invited to implement the intended project in the Free Zone by investing and establishing a company. These companies will be subject to legal incentives in free zones

100 INVESTMENT OPPORTUNITIES 99 Further details: - To provide sustainable energy needed by the industry (during a day and night), the need to build a combined cycle power plant with a capacity of 1000 MW is justifiable in a separate design and according to the estimates, the investment required for this project is over 200 million Euros. -The project can be converted to EPCF or Turnkey contracts. -the above mentioned amounts are only for preparatory operation and they are updated at the time of implementation.the investment required for the implementation of each separate designed unit is independent and it will be added to the above amount.

101 100 IN IRAN S FREE ZONES Project introduction: Fisheries industrial park Section:Infrastructure and industrial development The area of assigned site :45 hectares Responsible unit :Trade and industrial fishing Development Investment Company of Chabahar Free Trade Zone Project description and justification / Objectives: Considering the land preparation studies and expert studies due to maximum and optimal use of fishery potential of the region in line with land preparation, the industrial park of organization consists of three industrial park including Aquaculture industrial park, marine products processing industrial park and fishing region. At present, 80% of fishing comes from fishing piers on the coasts of the Gulf of Oman, which plays a major role in the Iranian market. The fisheries sector has a comparative advantage in Chabahar Specialized facilities:outdoor spaces, rental workshop spaces, ton cold storage, Fish auction market, The existence of a complete chain of aquatic breeding and processing, especially fish and shrimp Support facilities:enclosure, roads, Electricity, solid waste management and disposal system, refined water supply system, management of flowing waters, rainwater harvesting, sewage treatment, Landscape lighting Common facilities:reference equipped laboratories, training center, trade and exhibition centers and holding conferences, packaging units, accommodation and personnel cafeteria, Research and Development Investment volume:approximate investment:20million dollars Investment method: a.direct foreign and domestic investment b.participation with the private sector in the form of land lease based on long-term lease or participation in investment, in which land and licenses are provided by the Free Zone Organization How to start the project:implementation of the project is possible after the submission of the proposal with the detailed plan to Chabahar Free Zone Organization and the confirmation. Documents required for the project:potential investors or developers are invited to implement the intended project in the Free Zone by

102 INVESTMENT OPPORTUNITIES 101 investing and establishing a company. These companies will be subject to legal incentives in free zones Further details: -The project can be converted to EPCF or Turnkey contracts. -The above mentioned amounts are only for preparatory operation and they are updated at the time of implementation.the investment required for the implementation of each separate designed unit is independent and it will be added to the above amount

103 102 IN IRAN S FREE ZONES Project introduction: Food industrial park Section:Infrastructures and industrial development The area of assigned site :34 hectares Responsible unit :Economic and Investment Deputy Project description and justification / Objectives: The purpose of the proposed food industrial park in Chabahar Free Zone is to create an integrated site with the aim of supporting the producers and farmers and common infrastructure facilities for collecting, storing, processing and distributing the agricultural food products in Iran and neighboring countries (Afghanistan and Pakistan) with the aim of exporting, re-exporting and trading. The initial preparation (supplying the water, electricity and telecommunication distribution network) was carried out in this industrial park and more than 52 active units were accepted for processing and packaging rice, tea, spices etc in this industrial park. Specialized facilities:outdoor spaces, rental workshop spaces, Support facilities: Enclosure, roads, Electricity, solid waste management and disposal system, refined water supply system, management of flowing waters, rainwater harvesting, sewage treatment, Landscape lighting Common facilities:equipped laboratories, training center, trade and exhibition centers and holding conferences, packing units, accommodation and personnel cafeteria, Research and Development Center Investment volume: Approximate investment: 12 million dollars Investment method: a.direct foreign and domestic investment b.participation with the private sector in the form of land lease based on long-term lease or participation in investment, in which land and licenses are provided by the Free Zone Organization

104 INVESTMENT OPPORTUNITIES 103 How to start the project:implementation of the project is possible after the submission of the proposal with the detailed plan to Chabahar Free Zone Organization and the confirmation. Documents required for the project:potential investors or developers are invited to implement the intended project in the Free Zone by investing and establishing a company. These companies will be subject to legal incentives in free zones Further details: -The project can be converted to EPCF or Turnkey contracts. -The above mentioned amounts are only for preparatory operation and they are updated at the time of implementation.the investment required for the implementation of each separate designed unit is independent and it will be added to the above amount

105 104 IN IRAN S FREE ZONES Project introduction: Information and communication technology industrial park Section :Information and communication technology industries The area of assigned site :5 hectares Responsible unit:economic and Investment Deputy Project description and justification / Objectives: The purpose of the proposed information and communication technology industrial park in Chabahar Free Zone is to create an integrated site with the aim of supporting the producers and graduates and creating the usual infrastructure facilities for production and exports, due to the specific situation of Chabahar and the capability to become a regional hub in this regard. According to the studies carried out for the projects, investors / developers can contact Chabahar Free Zone for more information on the proposed plan. The intended infrastructures: Specialized facilities:skilled workforce, Educational and academic centers, rental locations, ready parcels of land, Fiber Optic Network(FALCON) Support facilities: light fiber in the area,data center,infrastructure, Human Resources Management, Technology Management Specialist, Internet,Intranet, E-Commerce, Database Common facilities:, Research and Development Centers, Universities, Technology Park and Technology Centers, Technology and Growth Center. Depending on the type of activity in the specialized industrial parks of the region, there is also the possibility of related activity. Specialized exhibitions Product Supply and presentation center Conference center Investment volume:approximate investment: 20 million dollars

106 INVESTMENT OPPORTUNITIES 105 Investment method: a.direct foreign and domestic investment b.the land is granted based on long-term lease or participation in the major investment as shares of the Free Zone Organization How to start the project:implementation of the project is possible after the submission of the proposal with the detailed plan to Chabahar Free Zone Organization and the confirmation. Documents required for the project:potential investors or developers are invited to implement the intended project in the Free Zone by investing and establishing a company. These companies will be subject to legal incentives in free zones Presentable concessions: a.tax exemptions b.entering without duties of machinery and raw materials c.entering some manufactured products of industrial park into the country up to value added without paying duties and need for order registration d.use of the other legal incentives for free zones Further details:the project can be converted to EPCF or Turnkey contracts. -The above mentioned amounts are only for preparatory operation and they are updated at the time of implementation. The investment required for the implementation of each separate designed unit is independent and it will be added to the above amount

107 106 IN IRAN S FREE ZONES Project introduction: Logistics industrial park Section: Infrastructure and transit development The area of assigned site : 150 hectares of lands near Shahid Kalantari Pier, within the boundaries of Chabahar Free Trade Zone Responsible unit :Transportation and Transit Deputy and Economic and Investment Deputy Project description and justification / Objectives: Logistics industrial park as a center for providing services for: -Import, warehousing, and transit of goods to Afghanistan and Central Asia -Import of raw materials for processing by 10% value added and subsequently export to Afghanistan and other neighboring countries According to the studies carried out for the projects, investors / developers can contact Chabahar Free Zone for more information on the proposed plan. Investment volume: Approximate investment: 200 million dollars Investment method a.direct foreign and domestic investment b.participation with the private sector in the form of land lease based on long-term lease or participation in investment, in which land and licenses are provided by the Free Zone Organization How to start the project:implementation of the project is possible after the submission of the proposal with the detailed plan to Chabahar Free Zone Organization and the confirmation. Documents required for the project:potential investors or developers are invited to implement the intended project in the Free Zone by investing and establishing a company. These companies will be subject to legal incentives in free zones

108 INVESTMENT OPPORTUNITIES 107 Presentable concessions: a.tax exemptions for 20 years b.full exemption from import duties of machinery and raw materials for re exporting c.use of the other legal incentives for free zones Further details: -The project can be converted to EPCF or Turnkey contracts. -The above mentioned amounts are only for preparatory operation and they are updated at the time of implementation. The investment required for the implementation of each separate designed unit is independent and it will be added to the above amount

109 108 IN IRAN S FREE ZONES Project introduction: Medical equipment industrial park Section:Infrastructures and industrial development The area of assigned site :About 12 hectares Responsible unit :Economic and Investment Deputy and Culture, Tourism and Social Affairs Deputy Support unit :Infrastructure and technical deputy Project description and justification / Objectives : The purpose of proposal for medical equipment industrial park in Chabahar Free Zone is to create a centralized complex with production, welfare infrastructure support facilities for production of medical industrial equipment for export and domestic uses. Specialized facilities:parts ready to transfer, rental workshop spaces, Support facilities : Enclosure, roads, Electricity, solid waste management and disposal system, refined water supply system, management of flowing waters, rainwater harvesting, sewage treatment, Landscape lighting Common facilities : Equipped laboratories, training center, trade and exhibition centers and holding conferences, packing units, accommodation and personnel cafeteria, Research and Development Center Investment volume: Approximate cost: 5 million dollars Investment method: a.direct foreign and domestic investment b.participation with the private sector in the form of land lease based on long-term lease or participation in investment, in which land and licenses are provided by the Free Zone Organization How to start the project:implementation of the project is possible after the submission of the proposal with the detailed plan to Chabahar Free Zone Organization and the confirmation.

110 INVESTMENT OPPORTUNITIES 109 Documents required for the project:potential investors or developers are invited to implement the intended project in the Free Zone by investing and establishing a company. These companies will be subject to legal incentives in free zones Current situation:currently, the developer's demand is registered and one industrial unit is being established Further details: -The project can be converted to EPCF or Turnkey contracts. -The above mentioned amounts are only for preparatory operation and they are updated at the time of implementation.the investment required for the implementation of each separate designed unit is independent and it will be added to the above amount

111 110 IN IRAN S FREE ZONES Aras Free Zone Investment Oppertunities Info@arasfz.ir Address: East Azarbaijan - Julfa official site of Aras Free Zone Phone: Fax: Tehran office No.19 29th Alley, Khalid Eslambuli St, Tehran Tel: Fax:

112 INVESTMENT OPPORTUNITIES 111

113 112 IN IRAN S FREE ZONES Pursuant to the resolution passed by the Islamic Consultative Assembly on August 24, 2003, Aras Free Zone was established in Jolfa in the northern part of East Azerbaijan province. According to the approval dated March 7, 2015, the area of this zone was increased to acres covering four separate areas namely Jolfa, Noordooz, Khodafarin, and Qoli Beyglu. Aras Free Zone is located close to Aras river and hence enjoys fertile lands for industrial agriculture and establishment of large cultivation complexes aiming at exports to Caucasian region. Aras Free Zone is close to metropolitan city of Tabriz as the top commercial and industrial hub of the region and enjoys industrial capacities for industries of the province for expanding production and their markets. It is planned to complete transportation infrastructures there. Relying on all these potentialities, Aras Free Zone intends to play an effective role in developing commercial and economic transactions with the Caucasus.

114 INVESTMENT OPPORTUNITIES 113 Project Introduction 1.Project title: 5-Star Hotel: Includes Services: Hotel, Restaurant, Swimming Pool, Ceremony Hall, Taxi Services, Buffet, Gym 2. Sector: Tourism 3. Location: Aras Free Zone (East Azerbaijan Province), Lands bound to Aras industrial park, Jolfa Nurduz border road 4.Project description (land, building, infrastructure establishment and ): Total land area: m² Floor area of Hotel: m² Installations: 3022 million rials 5. Capacity: Hotel Rooms: 100 (1-4 people), Gym: 50 people per day, Restaurant: 600 meals per day, Auditorium: 500 people, Swimming Pool: 500 m², 200 people per day, Taxi Services: 50 m², Buffet: Service for 60 people per day Project Status 6. Local / Internal raw material access 100 % 7. Sale : - Anticipated export market 100 % 8. Construction Period : - 9. Project Status : - Pre-Feasibility study available?no - Required land provided? No - Legal permits (establishment license, foreign currency quota, environment, etc) taken? No - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes

115 114 IN IRAN S FREE ZONES Financial Structure 10. Financial Table Description Local Currency Required Total Million Euro Million Equivalent in Rate Rials Million Euro Fixed Capital 311,664 33, Working Capital 7,018 33, Total Investment 318, Value of foreign equipment/machinery 0 million euro - Value of local equipment/machinery 0.87 million euro - Net Present Value (NPV): million euros for 10 Years - Internal Rate of Return (IRR) 30.18% - Payback Period (PP) 3.27 Year 11. Mode of Financing/ Investment Financing Investment

116 INVESTMENT OPPORTUNITIES 115 Project Introduction 1. Project title: Agro Products Export Terminal Roofed Warehouse, Open air Storage, Freezing Cold Storage, Refrigerating Cold Storage, Commodities Exchange Hall Services, Transportation Terminal Services, Sorting & Packaging Services, Restaurant Services, Quarantine Hall Services 2. Sector : Agriculture 3. Location: Aras Free Zone (East Azerbaijan Province), Lands bound to Aras industrial park, Jolfa Nurduz border road 4.Project description (land, building, infrastructure establishment and ): Total land area: m² Floor area of Roofed Warehouse: m² Floor area of Open air Storage: m² Floor area of Freezing Cold Storage: m² Floor area of Refrigerating Cold Storage: 6000 m² Floor area of Commodities Exchange Hall: 3000 m² Floor area of Sorting & Packaging: m² Floor area of Quarantine Hall: 1000 m² Floor area of Restaurant: 250 m² Floor area of Administrative Building: 1350 m² Floor area of Praying Room: 500 m² Installations: million rials 5. Capacity: Capacity of Roofed Warehouse: m² with boxes Capacity of Open air Storage: m² Capacity of Freezing Cold Storage: Storage Hall 5000 m², tons Capacity of Refrigerating Cold Storage: Storage Hall 3000 m², capacity 6000 tons Capacity of Terminal Services: 1000 trucks a day Capacity of Weigh Bridge (60 tons): 1000 trucks a day

117 116 IN IRAN S FREE ZONES Description Capacity of Trading Units: 300 shops Project Status 6. Local / Internal raw material access 100 % 7. Sale : - Anticipated export market 100 % 8. Construction Period 3 Year 9. Project Status : - Pre-Feasibility study available? - Required land provided? - Legal permits (establishment license, foreign currency quota, environment, etc) taken? - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Financial Structure 10. Financial Table Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fixed Capital 1,353,796 33, Working Capital 10,716 33, Total Investment 81,000 37, Value of foreign equipment/machinery million euro - Value of local equipment/machinery million euro - Net Present Value (NPV): Euro for 10 Years - Internal Rate of Return (IRR) 33.18% - Payback Period (PP) 1.27 Year 11. Mode of Financing/ Investment Financing Investment

118 INVESTMENT OPPORTUNITIES 117 Project Introduction 1. Project title: Construction of Aras international airport 2. Sector : Transportation 3. Location: Aras Free Zone 4. Project description: Today, airports are not built and used for transporting passengers, but they play a new significant role in economy. Thus, the designing of airports is done in the form of airport towns so in that form types of services; goods transportation, transnational commercial affairs, specialized high educations of different services in tourism and entertainment, and other peripheral services are provided. 5. Annual capacity: 1 m passengers in the first stage, 2 m passengers in the final stage Project Status 6. Local / Internal raw material access. % 7. Sale : - Anticipated export market 0 % 8. Construction Period 1 Year 9. Project Status : -Pre-Feasibility study available?yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes

119 118 IN IRAN S FREE ZONES Financial Structure 10. Financial Table Local Currency Required Equivale Description Billion nt in Rate Rials Fix Capital 4,000 Working Capital Total Investment 37,4 00 Million Euro Foreign Currency Required Million Euro Net Present Value (NPV): Euro for.. Year - Internal Rate of Return (IRR) 20 % - Payback Period (PP) 7 Year 11. Mode of Financing/ Investment Financing Investment Total Million Euro

120 INVESTMENT OPPORTUNITIES 119 Project Introduction 1. Project title: Production of electronic control unit (ECU) 2. Sector : Electric equipment and machinery 3. Location: Aras Free Zone 4. Project description: In automotive electronics, electronic control unit (ECU) is a generic term for any embedded system that controls one or more of the electrical system or subsystems in a motor vehicle. Taken together, these systems are sometimes referred to as the car's computer. (Technically, there is no single computer but multiple ones.) Sometimes one assembly incorporates several of the individual control modules (PCM is often both engine and transmission) 5. Annual capacity: 25,200 pcs Project Status 6. Local / Internal raw material access. % 7. Sale : - Anticipated export market 0 % 8. Construction Period 1Year 9. Project Status : -Pre-Feasibility study available?yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes

121 120 IN IRAN S FREE ZONES Financial Structure 10. Financial Table Local Currency Required Description Million Rials Rate Equivalent in Million Euro Total Million Euro Fix Capital 21,063 37, Working Capital 10,289 37, Total Investment 31,352 37, Internal Rate of Return (IRR) % - Payback Period (PP) 4 Years 11. Mode of Financing/ Investment Financing Investment

122 INVESTMENT OPPORTUNITIES 121 Project Introduction 1. Project title: Ferris wheel 2. Sector : Services, tourism-entertainment 3. Location: Aras Free Zone 4. Project description: In order to attract tourists and turning Aras into tourist hubs of Iran, necessity for creating exciting and adventurous entertainment attractions is increasingly felt. These attractions can by their own be a good reason for tourists to take a trip to Aras and stay longer there. There are reputable firms in the world can build such a Ferris wheel with high security and competitive attraction so that Aras would become a tourist destination in Iran. 5. Annual capacity: - Project Status 6. Local / Internal raw material access. % 7. Sale : - Anticipated export market 0 % 8. Construction Period 1 Year 9. Project Status : -Pre-Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes

123 122 IN IRAN S FREE ZONES Financial Structure Local Currency Required Description Equivalent Total Million Rials Rate in Million Million Euro Euro Fix Capital 170,000 37, Working Capital Total Investment Internal Rate of Return (IRR) 38 % - Payback Period (PP) 2.6 Year 11. Mode of Financing/ Investment Financing Investment

124 INVESTMENT OPPORTUNITIES 123 Project Introduction 1. Project title: International Exhibition Construction of roofed hall of the fair, Open air space platforms, Auditorium, Amphitheater, Buffet, Restaurant and Café, Parking space 2. Sector : Tourism 3. Services: Renting out the roofed stands, open air space platforms, amphitheater, buffet, restaurant and café, and parking services 4. Project description (land, building, infrastructure establishment and ): Total land area: m² from 130 ha land considered Floor area of Exhibition Hall: m² Floor area of Amphitheater: 1800 m² Floor area of Buffets: 200 m² Floor area of Office and Security Guard Building: 2000 m² Floor area of Restaurant and Cafe: 500 m² (in two separate spots) Floor area of Kids Playing Chamber: 500 m² Floor area of WC: 300 m² Floor Praying Room: 300 m² Installations: m rials 5. Capacity: Capacity of Open air Spaces: 80 spaces with average floor area of 150 m² Capacity of Restaurant and Café: In total 500 m² Capacity of Roofed Spaces: 120 spaces with average floor area of 150 m² Capacity of Amphitheater: 1800 m² in two 4 hour -shifts rented out Capacity of Parking: m²

125 124 IN IRAN S FREE ZONES Project Status 6. Local / Internal raw material access 100 % 7. Sale : - Anticipated offshore market 100 % 8. Construction Period 2 Years 9. Project Status : - Pre-Feasibility study available?no - Required land provided?yes - Legal permits (establishment license, foreign currency quota, environment, etc) taken? No - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes Financial Structure 10. Financial Table Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fixed Capital 722,309 33, Working Capital 17,480 33, Total Investment 739, Value of foreign equipment/machinery 0.06million euro - Value of local equipment/machinery million euro - Net Present Value (NPV): Euro for 10 Years - Internal Rate of Return (IRR) 35.66% - Payback Period (PP) 2.48 Year from the operation period (2 years construction) - Least Expected Profit Rate: 30 % 11. Mode of Financing/ Investment Financing Investment

126 INVESTMENT OPPORTUNITIES 125 Project Introduction 1. Project title:production of medical implants 2. Sector : Medical industry 3. Location: Aras Free Zone 4. Project description: An implant is a medical device manufactured to replace a missing biological structure, support a damaged biological structure, or enhance an existing biological structure. Medical implants are man-made devices, in contrast to a transplant, which is a transplanted biomedical tissue. The surface of implants that contact the body might be made of a biomedical material such as titanium, silicone or apatite depending on what is the most functional. In some cases implants contain electronics e.g. artificial pacemaker and cochlear implants. Some implants are bioactive, such as subcutaneous drug delivery devices in the form of implantable pills or drug-eluting stents. 5. Annual capacity: 40 tons Project Status 6. Local / Internal raw material access 40 % 7. Sale : - Anticipated export market 20 % 8. Construction Period 1 Year 9. Project Status : -Pre-Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes

127 126 IN IRAN S FREE ZONES Financial Structure 10. Financial Table Description Local Currency Required Total Million Equivalent in Rate Million Euro Rials Million Euro Fix Capital 41,400 37, Working Capital 20,000 37, Total Investment 61,400 37, Net Present Value (NPV): 2.1 million rials for a Year - Internal Rate of Return (IRR) 31 % - Payback Period (PP) 3.45 Years 11. Mode of Financing/ Investment Financing Investment

128 INVESTMENT OPPORTUNITIES 127 Project Introduction 1. Project title: Setting up offshore banking and foreign credit institutions 2. Sector : Services 3. Location: Aras Free Zone 4. Project description: Banks and credit institutions can be registered in the free zone with Iranian and foreign fund or with Iranian and foreign partnership. Setting up banks, institutions and opening Iranian and foreign bank and institution branches in the free zone is done permitted by Iran's central bank. Offshore banks are not allowed to do their transactions in Iranian rial but must exclusively do transactions with foreign currencies. 5. Annual capacity: Project Status 6. Local / Internal raw material access. % 7. Sale : - Anticipated export market % 8. Construction Period.. Year 9. Project Status : -Pre-Feasibility study available?yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes Financial Structure 10. Financial Table Local Currency Required Total Description Equivalent in Million Rials Rate Million Euro Million Euro Fix Capital 2,025,500 37, Working Capital 11. Mode of Financing/ Investment Financing Investment

129 128 IN IRAN S FREE ZONES Project Introduction 1. Project title: Construction of Jolfa-Aslanduz Rail road 2. Sector : Infrastructure transportation 3. Location: Aras Free Zone 4. Project description: The project aims to establish a railroad in the direction of Jolfa- Aslanduz-Pars Abad with the length of 242 km and its equipment to bridge the mentioned spots and finally connect to the Azerbaijan railroad system on the joint border. 5. Annual capacity: - Project Status 6. Local / Internal raw material access. % 7. Sale : - Anticipated export market 0 % 8. Construction Period: - 9. Project Status : -Pre-Feasibility study available?yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes Financial Structure 10. Financial Table Local Currency Required Description Billion Equivalent in Rate Rials Million Euro Fix Capital 7,000 37, Working Capital Total Investment Internal Rate of Return (IRR) 15 % - Payback Period (PP) 10 Year 11. Mode of Financing/ Investment Financing Investment Total Million Euro

130 INVESTMENT OPPORTUNITIES 129 Project Introduction 1. Project title: Sports village 2. Sector : Services, tourism-sport 3. Location: Aras Free Zone 4. Project description: This complex is like a park the heart of the region. With its functionalities and athletics and specialized attractiveness, it has, on the one hand, turned into a national and extra-regional image in the field of sporting activities, and on the other hand, like other successful sportsentertainment complexes of free zones in the world, it has become a national-regional symbol and a place for leisure and pastime and an attraction spot for tourists particularly from neighboring countries. 5. Annual capacity: - Project Status 6. Local / Internal raw material access. % 7. Sale : - Anticipated export market 0 % 8. Construction Period: - 9. Project Status : -Pre-Feasibility study available?yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes Financial Structure 10. Financial Table Local Currency Required Total Description Billion Equivalent in Rate Million Euro Rials Million Euro Fix Capital , Net Present Value (NPV): Euro for.. Year - Internal Rate of Return (IRR) 30 % - Payback Period (PP) 5 Year 11. Mode of Financing/ Investment Financing Investment

131 130 IN IRAN S FREE ZONES Arvand Free Zone Investment Oppertunities info@arvandfreezone.com Abadan Office Address: Abadan, Bereym, Ghayeghrani blvd, Arvand Free Zone Organization Telephone: Fax: Tehran Office No.19 29th Alley, Khalid Eslambuli St, Tehran Telephone: _ Fax:

132 INVESTMENT OPPORTUNITIES 131

133 132 IN IRAN S FREE ZONES Pursuant to the resolution passed by the Islamic Consultative Assembly on August 24, 2003, Arvand Free Zone was established in Abadan and Khoramshahr in Khoozestan province. The Cabinet specified the area of this special economic zone on May 29, 2005 covering Khoramshahr, Abadan, Minoo Island and Shalamcheh. In early 2014, Abadan and Khoramshar cities were added to this zone and its size increased to 37,400 acres from 17,200. Arvand Free Zone tries to develop and facilitate trade and export to south Iraq and develop industries aimed at exporting technical engineering services of marine, oil, gas and petrochemical industries by relying on its geographical location on the borderline between Iran and south Iraq as the large terminal for commercial transaction with Iraq; its closeness to the refinery and oil product hub of Abadan, ShimiShahr and enormous coastline industries with 8 small refineries and huge marine installation companies; existence of marine industries on Arvand possessing dry ponds, Arvandan 1 and 2 ship construction companies and marine structure building company. Develompent and prosperity of Abadan and Khoramshahr added to this zone as per of the approval made by Iranian government has been incorporated to the agenda of Arvand Free Zone Organization.

134 INVESTMENT OPPORTUNITIES 133 Project Introduction 1. Project title:sulphuric Acid 2. Sector: Downstream Petrochemical Industries Sub Sector: Chemical 3. Products / Services:Sulphuric Acid 4. location (address): Free Zone 5. Project description: It is consumed as an intermediary product in the fertilizer park. Project Status 6. Local / internal raw material access : 7. Sale :- Anticipated local market : The expected percentage of sale in these markets is 100%. - Anticipated export market : The expected percentage of sale in these markets is 0%. 8 Project total time (from start of activities to start of commercial operation in years) : Construction period is 2 years and effective life time for the project execution is 12 years. Start of activities :2017 Start of works at site :2017 End of Works : 2019 Start of commercial operation : 2019 Schedule 9- Project status :Arvand Free Zone - Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Partnership agreement concluding with local /foreign investor? Yes - Financing agreement concluding? Yes - Agreement with local /foreign contractor(s) concluding?yes - Infrastructural utilities (electricity water supply, telecommunication, fuel, road, etc) procured? Yes

135 134 IN IRAN S FREE ZONES - List of know- how, machinery, equipment, as well as seller /builder companies defined? Yes - Purchases agreement machinery, equipment and know-how concluded? Yes Financial Table 10- Financial structure : Descriptions Local Currency Required Million Rials Fix Capital Current Capital Rate Equivalent in Million Euro Total Investment Net present value (NPV): 42490Million Rials - Internal Rate of Return (IRR): 43% - Capital Rate of Return: 20% -Payback Period 5 years Foreign Currency Required Million Euro Total Million Euro

136 INVESTMENT OPPORTUNITIES 135 Project Introduction 1- Project title:opatan residential leisure complex 2- Sector: residential - leisure/sub Sector: residential - leisure 3- Products / Services: residential - leisure 4- location (address): Free Zone 5- Project description: The site of Opatan Residential-Leisure Township (with an approximate area of 244 ha) is located in the Province of Khuzestan, Abadan City and in the ha range of Arvand Free Trade Zone on the eastern bank of Arvand River. The site of this project as a large urban area is of high importance in the region due to its suitable location (in Arvand Free Trade Zone and Abadan City) and its large area. These characteristics provide the possibility to utilize the Opatan Township site as a region with high potentials in supplying the needs of surrounding urban areas and Abadan City. Opatan site is surrounded by four main streets. In the north-west part by Alborz Street from Bavardeh neighborhood, in northeast by Khosroabad road, in southwest and southeast by Bavardeh and Zolfaghari streets respectively. Entry to the site is only possible from southwest front and western corner (Figure No. 6). Opatan, the brilliant gem of Arvand Free Trade Zone and Abadan City Opatan Township is planned with a green city concept, a sustainable and healthy city to achieve a cleaner environment using renewable sources of energy, advanced transport systems, new construction technologies, waste recycling, etc. Integrated approach in urban development of this Township has made it an efficient model for new urbanism and upgraded level of social interaction. Compliance with ecological problems and using material and construction methods which are compatible with climate of the region is one of the important features of this township in achieving a healthy life. Opatan includes networks associated with dominant social and environmental functions and

137 136 IN IRAN S FREE ZONES the existing relations among residents, spaces and activities are established in the best way. Movement and transportation system includes car, pedestrian and bicycle networks and provide a variety of sustainable/stable connections. Green infrastructure as a living system is formed against gray infrastructure (road, pipe and cable). Connected green routes of Opatan provide high quality landscaping and urban design and create a sense of place and visual richness which brings dynamism and vitality for this township. Existing functions in this township provides a range of activities in local and regional scales and has made Opatan as a destination to attract population and capital in Arvand Free Trade Zone and Abadan City. Project Status 6- Local / internal raw material access : 7- Sale : - Anticipated local market : - Anticipated export market : 8 Project total time (from start of activities to start of commercial operation in years) : Start of activities : 2017 Start of works at site 2017 End of Works : 2022 Start of commercial operation : 2022 Schedule 9- Project status : - Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Partnership agreement concluding with local /foreign investor? Yes - Financing agreement concluding? Yes - Agreement with local /foreign contractor(s) concluding? Yes

138 INVESTMENT OPPORTUNITIES Infrastructural utilities (electricity water supply, telecommunication, fuel, road, etc) procured? Yes - List of know- how, machinery, equipment, as well as seller /builder companies defined? Yes - Purchases agreement machinery, equipment and know-how concluded? Yes Financial Table 10- Financial structure : Local Currency Required Descriptions Million Rials Fix Capital Current Capital Total Investment - Payback Period 1.75 year Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro

139 138 IN IRAN S FREE ZONES Project Introduction 1- Project title: Construction of a Subspecialty Hospital (Eye- Heart- Cancer, etc) with World Standards 2- Sector: Welfare Sub Sector: Service- Treatment 3- Products / Services: Treatment services 4- location (address): Free Zone 5- Project description: Today, Tourism Industry has a special importance, particularly in the health and treatment sector, and existence of a well-equipped hospital can provide the mental security of the tourists thus attracting health tourists in the Zone. Furthermore, the Center is capable of meeting the expectations of the Zone s people. Targets that have been considered for design and construction of Arvand Free Zone s Health Center are in line with the targets of Health Tourism Industry of the country. Also, since the level of medical services in Iran is very desirable in comparison with countries of Persian Gulf District, constructing an advanced health center is of the Organization s targets. Project Status 6- Local / internal raw material access : 7- Sale : - Anticipated local market : - Anticipated export market : 1. 8 Project total time (from start of activities to start of commercial operation in years) : Construction period is 2 years and effective life time for the project execution is 30 years. Start of activities : 2017 Start of works at site 2017 End of Works : 2019 Start of commercial operation : 2019 Schedule 9- Project status :Arvand Free Zone - Feasibility study available? Yes - Required land provided? Yes

140 INVESTMENT OPPORTUNITIES Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Partnership agreement concluding with local /foreign investor? Yes - Financing agreement concluding? Yes - Agreement with local /foreign contractor(s) concluding?yes - Infrastructural utilities (electricity water supply, telecommunication, fuel, road, etc) procured? Yes - List of know- how, machinery, equipment, as well as seller /builder companies defined? Yes - Purchases agreement machinery, equipment and know-how concluded? Yes Financial Table 10- Financial structure : Descriptions Local Currency Required Million Rials Rate Equivalent in Million Euro Fix Capital Current Capital Total Investment - Net present value (NPV): 45550Million Rials - Internal Rate of Return (IRR): 29% - Capital Rate of Return: 25% - Payback Period 4 years Foreign Currency Required Million Euro Total Million Euro

141 140 IN IRAN S FREE ZONES Project Introduction 1- Project title: Manufacturing electronic equipment (spotlight and projector) 2- Sector: Sub Sector:Industry 3- Products / Services: 4- location (address): Free Zone 5- Project description: It is usually thought that there is no difference between projector and spotlight and they have total different application. We will use projector if we want to focus the light on a spot, and we will use spotlight if we want to light the space. It is necessary to mention that the process of technology and manufacturing for two of them are same Project Status 6- Local / internal raw material access : 7- Sale : - Anticipated local market : The expected percentage of sale in these markets is 60%. - Anticipated export market : The expected percentage of sale in these markets is 40% Project total time (from start of activities to start of commercial operation in years) : Construction period is 2 years and effective life time for the project execution is 20years. Start of activities :2017 Start of works at site :2017 End of Works : 2019 Start of commercial operation : 2019 Schedule 9- Project status :ArvandFree Zone - Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes

142 INVESTMENT OPPORTUNITIES Partnership agreement concluding with local /foreign investor? Yes - Financing agreement concluding? Yes - Agreement with local /foreign contractor(s) concluding?yes - Infrastructural utilities (electricity water supply, telecommunication, fuel, road, etc) procured? Yes - List of know- how, machinery, equipment, as well as seller /builder companies defined? Yes - Purchases agreement machinery, equipment and know-how concluded? Yes Financial Table 10- Financial structure : Local Currency Required Descriptions Million Rials Fix Capital Current Capital 8450 Total Investment Rate Equivalent in Million Euro - Net present value (NPV): 1580Million Rials - Internal Rate of Return (IRR): 33% - Capital Rate of Return: 29% - Payback Period 3.4 years Foreign Currency Required Million Euro Total Million Euro

143 142 IN IRAN S FREE ZONES Project Introduction 1- Project title: Production of Clothing 2- Sector: Industry Sub Sector: Textile industries 3- Products / Services: Production of clothing 4- location (address): Free Zone 5- Project description: Project Status 6- Local / internal raw material access : 7- Sale : - Anticipated local market : The expected percentage of sale in these markets is 60%. - Anticipated export market : The expected percentage of sale in these markets is 40%. 8 Project total time (from start of activities to start of commercial operation in years) : Construction period is 2 years and effective life time for the project execution is 20 years. Start of activities :2017 Start of works at site :2017 End of Works : 2019 Start of commercial operation : 2019 Schedule 9- Project status :Arvand Free Zone - Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Partnership agreement concluding with local /foreign investor? Yes - Financing agreement concluding? Yes - Agreement with local /foreign contractor(s) concluding?yes - Infrastructural utilities (electricity water supply, telecommunication, fuel, road, etc) procured? Yes

144 INVESTMENT OPPORTUNITIES List of know- how, machinery, equipment, as well as seller /builder companies defined? Yes - Purchases agreement machinery, equipment and know-how concluded? Yes Financial Table 10- Financial structure : Descriptions Local Currency Required Million Rials Rate Equivalent in Million Euro Fix Capital Current Capital Total Investment - Net present value (NPV): 2347 Million Rials - Internal Rate of Return (IRR): 33% - Capital Rate of Return: 32% - Payback Period 3.1 years Foreign Currency Required Million Euro Total Million Euro

145 144 IN IRAN S FREE ZONES Project Introduction 1- Project title: Production Plan of Car Body Parts 2- Sector: Industry Sub Sector: Metallic Industries 3- Products / Services: Production Plan of Car Body Parts 4- location (address): Free Zone 5- Project description: Car body parts include treadle, fender, light place, hood, car trunk, bridges, etc. They are designed by the pull of iron sheet. Project Status 6- Local / internal raw material access : 7- Sale : - Anticipated local market : The expected percentage of sale in these markets is 90%. - Anticipated export market: The expected percentage of sale in these markets is 10%. 8 Project total time (from start of activities to start of commercial operation in years) : Construction period is 2 years and effective life time for the project execution is 20 years. Start of activities : 2017 Start of works at site 2017 End of Works : 2019 Start of commercial operation : 2019 Schedule 9- Project status :Arvand Free Zone - Feasibility study available?yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Partnership agreement concluding with local /foreign investor? Yes - Financing agreement concluding? Yes - Agreement with local /foreign contractor(s) concluding? Yes

146 INVESTMENT OPPORTUNITIES 145 -Infrastructural utilities (electricity water supply, telecommunication, fuel, road, etc) procured? Yes - List of know- how, machinery, equipment, as well as seller /builder companies defined? Yes - Purchases agreement machinery, equipment and know-how concluded? Yes Financial Table 10- Financial structure : Local Currency Required Descriptions Million Rials Fix Capital Current Capital Total Investment Rate Equivalent in Million Euro - Net present value (NPV): 1872Million Rials - Internal Rate of Return (IRR): 37% - Capital Rate of Return: 31% - Payback Period 3.2 years Foreign Currency Required Million Euro Total Million Euro

147 146 IN IRAN S FREE ZONES Project Introduction 1- Project title: Official, Commercial and Financial Complex of Arvand Free Zone 2- Sector: Trade Sub Sector: : Commercial- Financial 3- Products / Services: Financial Services 4- location (address): Free Zone 5- Project description: Every year many passengers and tourists visit Abadan and Khorramshahr, but the lack of modern and imposing markets is a problem for a zone which has the vision of becoming the tourism hub. Shopping and buying souvenir is the main part of each visitor s travel. Tourists, especially commercial ones, tend to stroll in imposing markets and have samples of different nations. It is suggested to construct two international markets in Arvand Free Zone to satisfy tourists needs with commercial functions Project Status 6- Local / internal raw material access : 7- Sale : - Anticipated local market : - Anticipated export market : 8 Project total time (from start of activities to start of commercial operation in years) : Construction period is 2years and effective life time for the project execution is 20 years. Start of activities : 2017 Start of works at site 2017 End of Works : 2019 Start of commercial operation : 2019 Schedule 9- Project status : Arvand Free Zone - Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes

148 INVESTMENT OPPORTUNITIES Partnership agreement concluding with local /foreign investor? Yes - Financing agreement concluding? Yes - Agreement with local /foreign contractor(s) concluding?yes - Infrastructural utilities (electricity water supply, telecommunication, fuel, road, etc) procured? Yes - List of know- how, machinery, equipment, as well as seller /builder companies defined? Yes - Purchases agreement machinery, equipment and know-how concluded? Yes Financial Table 10- Financial structure : Local Currency Required Descriptions Million Rials Rate Equivalent in Million Euro Fix Capital Current Capital Total Investment Net present value (NPV): 8726Million Rials - Internal Rate of Return (IRR): 25% - Capital Rate of Return: 33% - Payback Period 3 years

149 148 IN IRAN S FREE ZONES Project Introduction 1- Project title: International Exhibition Center 2- Sector: Trade Sub Sector: Commercial Services 3- Products / Services: Commercial services 4- location (address): Free Zone 5- Project description: This project is on the construction of an international exhibition center in Arvand Free Zone. The center includes different sections such as exhibition halls, international conventions indoor center, the administration buildings, warehouses, storage safe, emergency, fire station, security, mosque, parking, ceremonial, outdoor display platform, theme park, restaurant and coffee shop complex, residence and gas station. For this project, a land with an area of square meters has been considered of which square meters are allocated to buildings and the rest belongs to green space and the surroundings. Project Status 6- Local / internal raw material access : 7- Sale : - Anticipated local market : The expected percentage of sale in these markets is 50%. - Anticipated export market : The expected percentage of sale in these markets is 50%. 8 Project total time (from start of activities to start of commercial operation in years) : Construction period is 1.5 year and effective life time for the project execution is 20 years. Start of activities : 2017 Start of works at site 2017 End of Works : 2019 Start of commercial operation : 2019 Schedule 9- Project status :Arvand Free Zone

150 INVESTMENT OPPORTUNITIES Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Partnership agreement concluding with local /foreign investor? Yes - Financing agreement concluding? Yes - Agreement with local /foreign contractor(s) concluding? Yes - Infrastructural utilities (electricity water supply, telecommunication, fuel, road, etc) procured? Yes - List of know- how, machinery, equipment, as well as seller /builder companies defined Yes - Purchases agreement machinery, equipment and know-how concluded? Yes Financial Table 10- Financial structure : Local Currency Required Equivalent Descriptions Million Rate in Million Rials Euro Fix Capital Current Capital Total Investment Foreign Currency Required Million Euro Total Million Euro

151 150 IN IRAN S FREE ZONES - Net present value (NPV): 2174Million Rials - Internal Rate of Return (IRR): 32% - Capital Rate of Return: 29% - Payback Period 2.3 years

152 INVESTMENT OPPORTUNITIES 151 Project Introduction 1- Project title: Assembly of vehicles 2- Sector: Sub Sector: Industry 3- Products / Services: 4- location (address): Free Zone 5- Project description: Project Status 6- Local / internal raw material access : 7- Sale : - Anticipated local market : The expected percentage of sale in these markets is 100%. - Anticipated export market : The expected percentage of sale in these markets is 0%. 8 Project total time (from start of activities to start of commercial operation in years) : Construction period is 2 years and effective life time for the project execution is 20years. Start of activities :2017 Start of works at site :2017 End of Works : 2019 Start of commercial operation : 2019 Schedule 9- Project status :Arvand Free Zone - Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Partnership agreement concluding with local /foreign investor? Yes - Financing agreement concluding? Yes - Agreement with local /foreign contractor(s) concluding? Yes -Infrastructural utilities (electricity water supply, telecommunication, fuel, road, etc) procured? Yes

153 152 IN IRAN S FREE ZONES - List of know- how, machinery, equipment, as well as seller /builder companies defined? Yes - Purchases agreement machinery, equipment and know-how concluded? Yes Financial Table 10- Financial structure : Descriptions Local Currency Required Million Rials Fix Capital Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Current Capital Total Investment Internal Rate of Return (IRR): 25.9% - Capital Rate of Return: % - Payback Period 5.5 years

154 INVESTMENT OPPORTUNITIES 153 Project Introduction 1- Project title: Construction of a 5 star Hotel 2- Sector: Tourism Sub Sector: Service- Residential 3- Products / Services: Residential Services 4- location (address): Free Zone 5- Project description: With regard to different classes of incomes and various motives of tourists, tourist places have a variety of different residences so that tourists can pick out them according to their decisions. In the Arvand Free Zone s Tourism Development Project, building two five-star hotels is proposed to respond tourists with high incomes and commercial tourists Project Status 6- Local / internal raw material access : 7- Sale : - Anticipated local market : The expected percentage of sale in these markets is 60%. - Anticipated export market : The expected percentage of sale in these markets is 40%. 8 Project total time (from start of activities to start of commercial operation in years) : Construction period is 2 years and effective life time for the project execution is 30 years. Start of activities : 2017 Start of works at site 2017 End of Works :2019 Start of commercial operation :2019 Schedule 9- Project status : Arvand Free Zone - Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes

155 154 IN IRAN S FREE ZONES - Partnership agreement concluding with local /foreign investor? Yes - Financing agreement concluding? Yes - Agreement with local /foreign contractor(s) concluding? Yes - Infrastructural utilities (electricity water supply, telecommunication, fuel, road, etc) procured? Yes - List of know- how, machinery, equipment, as well as seller /builder companies defined? Yes - Purchases agreement machinery, equipment and know-how concluded? Yes Financial Table 10- Financial structure : Local Currency Required Descriptions Equivalent Million Rate in Million Rials Euro Fix Capital Current Capital Total Investment - Net present value (NPV): Million Rials - Internal Rate of Return (IRR): 32 % - Capital Rate of Return: 25 % - Payback Period 4 years Foreign Currency Required Million Euro Total Million Euro

156 2 INVESTMENT OPPORTUNITIES 155 Anzali Free Zone Investment Oppertunities Anzali Free Zone Boulevard martyr fatehi phase of trade and tourism, free trade-industrial zone Tel: Fax: P.O.Box: Tehran office No.19 29th Alley, Khalid Eslambuli St, Tehran Tel: Fax:

157 156 IN IRAN S FREE ZONES Based on the resolution passed by the Islamic Consultative Assembly on August 24, 2003, Anzali Free Zone was established in Anzali in Gilan province. The Cabinet specified the area of this special economic zone on May 29, 2005 covering Golshan, Anzali Port and Anzali Industrial Town with the total area of 8,609 acres. Anzali Free Zone can transform into a regional trade hub and develop product industries needed by vast Russian markets and play a vital role in increasing our share in those markets thanks to its proximity to Caspian Sea states; its access to one of one the most important trade corridors among Caspian Sea states through Caspian-Baku line in Azerbaijan, Türkmenbaşy in Turkmenistan, Aktau in Kazakhstan and Astrakhan in Russia; mixed railway-marine transportation capacity; and connecting railway systems of Ürümqi in China to Aktau in Kazakhstan to Caspian Port. Relying on these potentialities, Anzali Free Zone intends to complete its marine transportation infrastructures in the Caspian Port, construct and establish terminals, silos, freezing areas, multi-dimensional transportation systems and domestic and international banks, offer insurance policies, establish trade and transportation offices, offer trade logistics and support services, and attract economic actors and businessmen form Russian and CIS countries.

158 INVESTMENT OPPORTUNITIES 157 Project Introduction 1. Project title: Amusement park 2. Sector : Tourism Sub sector: Recreational 3.Products/Services 3. Location: Anzali Free Zone 4. Project description: This project is related to the construction of amusement park; in fact amusement park is a series of entertainment devices have been set to provide fun for a large group of people simultaneously. An amusement park is generally is set more complicated than a simple game field which includes different age groups, like children, teens and adults. Arrival more than 3 million tourists to the region and the increasing demand for recreational services caused the construction of the amusement park become one of the priorities for investment. 5. Annual capacity: 3,000 customer a day Project Status 6. Local / Internal raw material access 100 % 7. Sale : - Anticipated market : National 8. Construction Period 2 Year Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital 1,735, Working Capital 458, Total Investment 2,193,

159 158 IN IRAN S FREE ZONES 9. Project Status : - Feasibility study available?yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes -Partnership agreement concluded with local/foreign investor? Yes -financing agreement concluded?no - Agreement with local/foreign contractor(s) concluded? Yes - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes -List of know-how, machinery, equipment, as well as seller/builder companies defined? Yes -Purchase agreement for machinery equipments and know-how concluded? Yes Financial Structure 10. Financial Table - Value of foreign equipment/machinery45 million euro - Value of local equipment/machinery3 million euro - Net Present Value (NPV): 18.7 Million Euro for 15 Year - Internal Rate of Return (IRR) 24% - Payback Period (PP) 8 Year 11. Mode of Financing/ Investment Financing Investment

160 INVESTMENT OPPORTUNITIES 159 Project Introduction 1. Project title: caspian Port 2. Sector : Port Sub sector: port 3.Products/Services 3. Location: Anzali Free Zone 4. Project description: According to experts evaluation and forecasts, the engineering designs of the Caspian Port is going to be a third generation of modern and mega port; in which, the Port would be equipped, installed with latest technology, based on the location, it provides the factors of second and third generation of the port functions which include logistical centers of warehousing, goods processing, established and development of marine industries such as ship building, floating and etc. All these facilities would bring highly value-added products. 5. Annual capacity: 15 million tons per year Project Status 6. Local / Internal raw material access 100 % 7. Sale : - Anticipated market : National and International 8. Construction Period: 4 Year 9. Project Status : - Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes -Partnership agreement concluded with local/foreign investor? Yes -financing agreement concluded? Yes - Agreement with local/foreign contractor(s) concluded? Yes - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes

161 160 IN IRAN S FREE ZONES -List of know-how, machinery, equipment, as well as seller/builder companies defined? Yes -Purchase agreement for machinery equipments and know-how concluded? Yes Financial Structure 10. Financial Table - Value of foreign equipment/machinery70 million euro Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital Working Capital Total Investment Value of local equipment/machinery15 million euro - Net Present Value (NPV): 410 Million Euro for 30 Year - Internal Rate of Return (IRR) 32% - Payback Period (PP) 9 Year and 11. Mode of Financing/ Investment Financing Investment

162 INVESTMENT OPPORTUNITIES 161 Project Introduction 1. Project title: Domestic Tea Processing Plant 2. Sector : Food Industry 3. Location: Anzali Free Zone 4. Project description: In regard to the Anzali Free Zone is located in Guilan province and producing 95 percent of the country's tea, access to great domestic and international markets for these products by taking the legal advantages of the free zones for the construction of domestic tea production factories make it economically justifiable. 5. Annual capacity: 780 tons per year Project Status 6. Local / Internal raw material access 100 % 7. Sale : - Anticipated export market 100 % 8. Construction Period 1 Year 9. Project Status : -Pre-Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes -Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes Financial Structure 10. Financial Table Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital Working Capital Total Investment

163 162 IN IRAN S FREE ZONES - Value of foreign equipment/machinery0.08 million euro - Value of local equipment/machinery 0.11 million euro - Net Present Value (NPV): 0.5 Million Euro for 10 Year - Internal Rate of Return (IRR) 46% - Payback Period (PP) 3 Year 11. Mode of Financing/ Investment Financing Investment

164 INVESTMENT OPPORTUNITIES 163 Project Introduction 1. Project title: Five Star Hotel recreational business and service complex 2. Sector : Tourism Sub sector: Residental 3.Products/Services 3. Location: Anzali Free Zone 4. Project description: Due to welcome of domestic and foreign tourists and organizing national and international conferences and seminars, there will have demand for 4 and 5 star hotels that have acceptable degree of luxury, services and the high quality decoration and equipments. 4 and 5 star hotel s rooms is bigger than 3 stars hotel rooms. Other features of this hotel are 24-hour service, laundry, dry cleaning and luxury restaurant. Since these hotels provide different services will have glorious and memorable stay for guests. Managers of this hotel are working with regard to international standards, trained manpower and customeroriented approach to meet guests' expectations. 5. Annual capacity: 200 room Project Status 6. Local / Internal raw material access 100 % 7. Sale : - Anticipated market : National and International 8. Construction Period 3 Year 9. Project Status : - Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes -Partnership agreement concluded with local/foreign investor? -financing agreement concluded? Yes - Agreement with local/foreign contractor(s) concluded?no - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes -List of know-how, machinery, equipment, as well as seller/builder companies defined? Yes

165 164 IN IRAN S FREE ZONES -Purchase agreement for machinery equipments and know-how concluded? Yes Financial Structure 10. Financial Table Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro - Value of foreign equipment/machinery 15 million euro - Value of local equipment/machinery 7 million euro - Net Present Value (NPV): 18 Million Euro for 15 Year - Internal Rate of Return (IRR) 25 % - Payback Period (PP) 8 Year and 11. Mode of Financing/ Investment Financing Investment Total Million Euro Fix Capital 1,635, Working Capital Total Investment 2,241,

166 INVESTMENT OPPORTUNITIES 165 Project Introduction 1. Project title:health Village 2. Sector : Health Tourism Sub sector: Health 3.Products/Services 3. Location: Anzali Free Zone 4. Project description: This project is related to construction of health village. Inexpensive Medicare cost is the main reason for traveling of foreign tourism to Iran, in addition, scientific progress of Iranian doctors has promoted Medicare tourism position of Iran in the region, and also no need to entry visa for foreign nationals caused construction of medical centers be economically justifiable. 5. Annual capacity: 300 bed Project Status 6. Local / Internal raw material access 100 % 7. Sale : - Anticipated market : National and International 8. Construction Period 3 Year 9. Project Status : - Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes -Partnership agreement concluded with local/foreign investor?yes -financing agreement concluded?no - Agreement with local/foreign contractor(s) concluded? Yes - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes -List of know-how, machinery, equipment, as well as seller/builder companies defined? Yes -Purchase agreement for machinery equipments and know-how concluded? Yes

167 166 IN IRAN S FREE ZONES Financial Structure Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital Working Capital Total Investment 2,259, Financial Table - Value of foreign equipment/machinery 22 million euro - Value of local equipment/machinery 7 million euro - Net Present Value (NPV): 20.7 Million Euro for 15 Year - Internal Rate of Return (IRR) 28 % - Payback Period (PP) 8 Year and 3 month 11. Mode of Financing/ Investment Financing Investment

168 INVESTMENT OPPORTUNITIES 167 Project Introduction 1. Project title: Production of Airbag 2. Sector : Industry 3. Location: Anzali Free Zone 4. Project description: This project is related to construction of air bag factory, this is a new achievement of automotive industry for increasing car occupants safety. When severe collision happens, vehicle air bag in the front cabin of the car is able to be quickly filled with gas that prevents hitting occupants to the glass and the front cabin of the car. The main ingredient of this product is Nitrogen sodium 5. Annual capacity: 500,000 per year Project Status 6. Local / Internal raw material access 100 % 7. Sale : - Anticipated export market 100 % 8. Construction Period: 2 Year 9. Project Status : -Pre-Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes -Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes Financial Structure 10. Financial Table Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital 116, Working Capital 590, Total Investment 706,

169 168 IN IRAN S FREE ZONES - Value of foreign equipment/machinery1.92 million euro - Value of local equipment/machinery0.48 million euro - Net Present Value (NPV): 5.8 Million Euro for 10 Year - Internal Rate of Return (IRR)68% - Payback Period (PP) 3 Year and 7 month 11. Mode of Financing/ Investment Financing Investment

170 INVESTMENT OPPORTUNITIES 169 Project Introduction 1. Project title: Production of Anti-Lock Braking System (ABS) 2. Sector : Industry 3. Location: Anzali Free Zone 4. Project description: This project is about the construction of anti-locking system (ABS) that is used in different vehicles, raw materials required for this project is the steel and related alloys. The required land for this project is 6000 square meters with construction area of 2850 square meters and opens job vacancies for 48 people. 5. Annual capacity: 25,000 units per year Project Status 6. Local / Internal raw material access 100 % 7. Sale : - Anticipated export market 100 % 8. Construction Period 2 Year 9. Project Status : -Pre-Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes -Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes Financial Structure 10. Financial Table Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital Working Capital Total Investment

171 170 IN IRAN S FREE ZONES - Value of foreign equipment/machinery0.88 million euro - Value of local equipment/machinery0.23million euro - Net Present Value (NPV): Euro for 10 Year - Internal Rate of Return (IRR) 23% - Payback Period (PP) 6 Year 11. Mode of Financing/ Investment Financing Investment

172 INVESTMENT OPPORTUNITIES 171 Project Introduction 1. Project title: Production of edible oil from rice bran 2. Sector : Trade 3. Location: Anzali Free Zone 4. Project description: The project is related to production of edible oil from rice bran. Rice bran not only is used for production of edible oil, but also is used for food products, feed additives and pharmaceutical products. The main ingredient of this product is rice bran, considering that gillan is biggest producer of rice in the country, thus, easy access to raw materials of this product is considered a big advantage for production of edible oil. 5. Annual capacity: 500t/day Project Status 6. Local / Internal raw material access 100 % 7. Sale : - Anticipated market : National and International 8. Construction Period 3 Year 9. Project Status : -Pre-Feasibility study available? Yes - Required land provided? - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes - Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes

173 172 IN IRAN S FREE ZONES Financial Structure Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital Working Capital Total Investment Financial Table - Value of foreign equipment/machinery million euro - Value of local equipment/machinery million euro - Net Present Value (NPV): 7.23 Million Euro - Internal Rate of Return (IRR) 82 % - Payback Period (PP) 3 Year and 4 month 11. Mode of Financing/ Investment Financing Investment

174 INVESTMENT OPPORTUNITIES 173 Project Introduction 1. Project title: Refregirator and indoor Warehouse 2. Sector : Services Sub sector: Warehouse 3. Location: Anzali Free Zone 4. Project description: The Anzali free zone for its strategic position on the road and marine transit path has big potential to become transit hub of country. One of the most essential features for converting this area for providing better transit services is storage warehouses which are economically justifiable. 5. Annual capacity: tons per year Project Status 6. Local / Internal raw material access 100 % 7. Sale : Anticipated market : National and International 8. Construction Period 2 Year 9. Project Status : - Feasibility study available? Yes - Required land provided? Yes - Legal permissions (establishment license, foreign currency quota, environment, etc) taken? Yes -Partnership agreement concluded with local/foreign investor? Yes -financing agreement concluded? No - Agreement with local/foreign contractor(s) concluded? Yes -Infrastructural utilities (electricity, water supply, telecommunication, fuel, road, etc) procured? Yes -List of know-how, machinery, equipment, as well as seller/builder companies defined? Yes -Purchase agreement for machinery equipments and know-how concluded? Yes

175 174 IN IRAN S FREE ZONES Financial Structure Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital 1,375, Working Capital 343, Total Investment 1,718, Financial Table - Value of foreign equipment/machinery15 million euro - Value of local equipment/machinery 9 million euro - Net Present Value (NPV): 21.9 Million Euro for 20 Year - Internal Rate of Return (IRR) 32% - Payback Period (PP) 5 Year and 4 month 11. Mode of Financing/ Investment Financing Investment

176 INVESTMENT OPPORTUNITIES 175 Maqu Free Zone Investment Oppertunities central office Address: Maku Free Zone Organization's Building Number One, Maku- Bazergan Transit Road, Maku Free Zone, West Azerbaijan Phone: Fax: Tehran office No.19 29th Alley, Khalid Eslambuli St, Tehran

177 176 IN IRAN S FREE ZONES Maku Free Zone Establishment of Maku Free Zone was finalized based on the resolution passed by the Islamic Consultative Assembly on September 26, 2010 with an area of 397,000 acres. The Zone is located on the land gateway between Iran and Europe on the borderline between Iran and Turkey. Enjoying the vastest land territories, Maku Free Zone has tried to complete its infrastructures including an airport. In light of these capabilities, Maku Free Zone tries to make effective use of its service capacities related to transportation and transit, independent export terminals, welfare services, rest areas on highways, and other transportation services. In other words, we try to develop the Zone from all dimensions. Additionally, there are some potentialities in the Zone for establishing greenhouse complexes for valuable export products, investing in packaging industries and complementary agricultural processing industries, non- ferrous rich ore sources existing in the region, and industrial expansion capacity based on the supply chain in neighboring countries particularly Turkey. The above-mentioned features are among the axis pinpointed on the development agenda for Maku Free Zone that could contribute to realization of developmental objectives if utilizes appropriately.

178 INVESTMENT OPPORTUNITIES 177 Project Introduction 1. Project title: the production of smart polymer nano composites for the automotive industry 2. Sector: Manufacture Sub Sector : manufacture of plastics products 3. Products / Services : nano composites 4. Location : Maku Free Zone 5. Project description: Smart nano composites with shape memory are a category of complex combinations of smart polymers which have flexible applications for strength and formability due to their unique properties of structural dynamics. They use the applied stress caused by impact for deformation so the stress is not transmitted. On the other hand, if impact results in deformation it is possible to recover the form by applying temperature. With regard to these special properties, the automotive industry has seriously considered using smart composites in the body of automobiles in order to them lighter, increase passenger safety and the recover the shape of the components. 6. Annual capacity : 2500 tone/ year Project Status 7. Local/Internal raw material access: 0% 8. Sale: - Anticipated local market : 100% - Anticipated export market : 0% 9. Construction Period : 18 months Schedule : Start of activities : 1th month Start of works at site : 7th month End of works : 15th month Start of commercial operation : 16th month

179 178 IN IRAN S FREE ZONES 10. Project Status: - Pre-Feasibility study available? Yes No - Required land provided? Yes No - Legal permission (establishment license, foreign currency quota, environment, etc.) taken? Yes No - Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No - Agreement with local / foreign contractor(s) concluding? Yes No - Infrastructural utilities (electricity water supply, fuel, ) procured? Yes No - List of know how, machinery, equipment, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded?yes No Financial Table 11. Financial Table Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital Current Capital Total Investment Value of foreign equipment/machinery: 14.5 million euro - Value of local equipment/machinery: 0 million euro - Value of foreign technical know-how : 0 million euro - Value of local technical know-how : 0 million euro - Net Present Value (NPV): 29 million euro

180 INVESTMENT OPPORTUNITIES Internal Rate of Return (IRR): 55.3 % - Capital rate of return : 55.2% - Payback Period (PP): 2 years General Information 12- Project type : Establishment : Expansion and completion : 13- Company profile This project has no specified owner

181 180 IN IRAN S FREE ZONES Project Introduction 1. Project title: the production of aseptic multilayer sheets 2. Sector: Manufacture Sub Sector : manufacture of plastics products 3. Products / Services : aseptic multilayer sheets 4. Location : Maku Free Zone 5. Project description: in many cases in order to create a harmony between the desired food products maintenance needs and packing material, it is necessary to use multilayer packing material. A one layer packing alone is not able to meet all the requirements; thus multilayer packing materials are used. When it comes to choosing various layers used in the product packing, other than its inhibition of oxygen, light and moisture, an important issue is its impermeability to volatile compounds; especially for products such as coffee, spices and juices which are identified with their special flavor. Multilayer packing is used for ling-term food storage in ambient temperature. Due to the perfect sealing of this packing, it is necessary to use preservatives in the food products and this fact is a great advantage for food industry for this type of packing coating. The maintaining body of this type of packing is made of several layers of cardboard which plays a major role other than preventing light from passing through it. 6. Annual capacity : tone/year Project Status 7. Local/Internal raw material access: 100 % 8. Sale: 16.3 million euro - Anticipated local market : 50 % - Anticipated export market: 50 % Iraq & Turkey 9. Construction Period: 15 Month

182 INVESTMENT OPPORTUNITIES 181 Schedule : Start of activities : 1 th month Start of works at site : 3 th month End of works : 12 th month Start of commercial operation : 15 th month 10. Project Status: - Pre-Feasibility study available? Yes No - Required land provided? Yes No - Legal permission (establishment license, foreign currency quota, environment, etc.) taken? Yes No - Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No - Agreement with local / foreign contractor(s) concluding? Yes No - Infrastructural utilities (electricity water supply, fuel,) procured? Yes No - List of know how, machinery, equipment, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded? Yes No Financial Table 11. Financial Table Description Million Rials Local Currency Required Rate Equivalent in Million Euro Foreign Currency Required Millions Euro Total Million Euro Fix Capital Current Capital Total Investment

183 182 IN IRAN S FREE ZONES - Value of foreign equipment/machinery: million euro - Value of local equipment/machinery: 0 million euro - Value of foreign technical know-how : 0 million euro - Value of local technical know-how : 0 million euro - Net Present Value (NPV): million euro - Internal Rate of Return (IRR): 26.2 % - Capital rate of return : 25% - Payback Period (PP): 4 years General Information 12- Project type : Establishment : Expansion and completion : 13- Company profile This project has no specified owner

184 INVESTMENT OPPORTUNITIES 183 Project Introduction 1. Project title: the production of lightweight building panels 2. Sector: Manufacture Sub Sector : manufacture of plastics products 3. Products / Services : lightweight building panels 4. Location : Maku Free Zone 5. Project description: it is one of the new products used in the faced of building and interior decorating. Due to their composite structure, other than maintaining metallic appearance, lightweight building panels are light and act as sound and heat insulation. These composites are composed of several layers. The layers consist of aluminum with the thickness of 0.18 to 0.5 mm and layer placed in the outer outer part of faced made of a thin coating of PET or PVDF. The central layer on both sides of which aluminum layers are attached can be made of polyethylene or polyester. The overall thickness of the panels is 3 4 mm. 6. Annual capacity : 710 tone/year Project Status 7. Local/Internal raw material access: 20 % 8. Sale: 5.68 million euro - Anticipated local market : 50 % - Anticipated export market: 50 % Iraq & Turkey 9. Construction Period: 14 Month Schedule : Start of activities : 1 th month Start of works at site : 4 th month End of works : 11 th month Start of commercial operation : 12 th month 10. Project Status: - Pre-Feasibility study available? Yes No - Required land provided? Yes No

185 184 IN IRAN S FREE ZONES - Legal permission (establishment license, foreign currency quota, environment, etc.) taken? Yes No - Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No - Agreement with local / foreign contractor(s) concluding? Yes No - Infrastructural utilities (electricity water supply, fuel,) procured? Yes No - List of know how, machinery, equipment, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded? Yes No Financial Table 11. Financial Table Local Currency Required Description Million Rials Rate Equivalent in Million Euro Foreign Currency Required Millions Euro Total Million Euro Fix Capital Current Capital Total Investment Value of foreign equipment/machinery: 5.56 million euro - Value of local equipment/machinery: 0 million euro - Value of foreign technical know-how : 0 million euro - Value of local technical know-how : 0 million euro - Net Present Value (NPV): 5.32 million euro - Internal Rate of Return (IRR): 39.4 %

186 INVESTMENT OPPORTUNITIES Capital rate of return : 33% - Payback Period (PP): 3 years General Information 12- Project type : Establishment : Expansion and completion : 13- Company profile This project has no specified owner

187 186 IN IRAN S FREE ZONES Project Introduction 1. Project title: Dry Port 2. Sector: Services Sub Sector : Goods EX-IM Services 3. Products / Services : Dry Port 4. Location : Maku Free Zone 5. Project description: In fact, the dry port examined in the feasibility study is a combined terminal off shore connected to the seaport, providing the necessary and adequate facilities for handling traffic caused by several types of transportation, such as road, rail and air. Customers can send or receive their goods using any of these different methods. Therefore, dry ports are places inside the country, where containers are first transferred to, and administrative customs affairs are taken care of, then containers are transported through rail or trucks, and this is a combination of container-sea and then container-rail and truck-container. In addition to the basic services provided by the traditional terminals off shore, services such as warehousing, storage of empty containers, container repairs, and customs clearance are also provided in dry ports. 6. Annual capacity : tons Project Status 7. Local/Internal raw material access: 100% 8. Sale: - Anticipated local market : 100% - Anticipated export market : 0% 9. Construction Period : 24 months Schedule : Startt of activities : 1th month Start of works at site : 4th month End of works : 19th month Start of commercial operation : 24th month

188 INVESTMENT OPPORTUNITIES Project Status: - Pre-Feasibility study available? Yes No - Required land provided? Yes No - Legal permission (establishment license, foreign currency quota, environment, etc) taken? Yes No - Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No - Agreement with local / foreign contractor(s) concluding? Yes No - Infrastructural utilities (electricity water supply, fuel, ) procured? Yes No - List of know how, machinery, equipmend, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded?yes No Financial Table 11. Financial Table Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Milliion Euro Total Million Euro Fix Capital Current Capital Total Investment Value of foreign equipment/machinery: 0.47 million euro - Value of local equipment/machinery: 0 million euro - Vlue of foreign technical know-how : 0 million euro - Vlue of local technical know-how : 0 million euro

189 188 IN IRAN S FREE ZONES - Net Present Value (NPV): 4.2 million euro - Internal Rate of Return (IRR): % - Capital rate of return : 29 % - Payback Period (PP): 6.64 years General Information 12- Project type : Establishment : Expansion and completion : 13- Company profile This project has no specified owner

190 INVESTMENT OPPORTUNITIES 189 Project Introduction 1. Project title: poly vinyl alcohol production 2. Sector: Manufacturing Sub Sector : Manufacture of plastics in primary forms and of synthetic rubber 3. Products / Services :PVA 4. Location : Maku Free Zone 5. Project description: The product of this project is poly vinyl alcohol, or PVA. This substance is a chemical polymer with various uses in industry. PVA can be called a medical commodity which is used in the Manufacture of other products. This product is a nature-compatible and water-soluble polymer with excellent properties as well as emulsifier properties in the environment. therefore it can be considered as an environmentally friendly polymer. excellent chemical resistance and good physical properties have provided very extensive consumption areas for this polymer in a variety of industries. This polymer is a high quality adhesive and shows a good resistance against solvents, oils and greases and for the same reason, it has widespread applications in the adhesives industry. Films produced from poly vinyl alcohol have higher tensile strength and their resistivity is also very high. this chemical property of PVA increases its resistance to environmental factors and high strength of products against environmental factors. 6. Annual capacity : 7000 tone Project Status 7. Local/Internal raw material access: 20% 8. Sale: 6.15 million euro - Anticipated local market : 70% - Anticipated export market : 30% Iraq and turkey 9. Construction Period : 15th Month

191 190 IN IRAN S FREE ZONES Schedule : Start of activities :1 Month Start of works at site :4 Month End of works :11 Month Start of commercial operation :15 Month 10. Project Status: - Pre-Feasibility study available? Yes No - Required land provided? Yes No - Legal permission (establishment license, foreign currency quota, environment, etc) taken? Yes No - Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No - Agreement with local / foreign contractor(s) concluding? Yes No - Infrastructural utilities (electricity water supply, fuel, ) procured? Yes No - List of know how, machinery, equipmend, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded? Yes No Financial Table 11. Financial Table Description Million Rials Local Currency Required Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital Current Capital Total Investment

192 INVESTMENT OPPORTUNITIES Value of foreign equipment/machinery: machinery 7.95 million euro - Value of local equipment/machinery: machinery 0 million euro - Vlue of foreign technical know-how : 0 million euro - Vlue of local technical know-how : 0 million euro - Net Present Value (NPV): million euro - Internal Rate of Return (IRR): 21/9 % - Capital rate of return :20% - Payback Period (PP): 5 years General Information 12- Project type : Establishment : Expansion and completion : 13- Company profile This project has no specified owner.

193 192 IN IRAN S FREE ZONES Project Introduction 1. Project title: the production of LECA prefabricated components 2. Sector: Manufacture Sub Sector : Quarrying of stone, stand and clay 3. Products / Services : LECA prefabricated components 4. Location : Maku Free Zone 5. Project description: LECA consist of small, lightweight, bloated particles of burnt clay. The thousands of small, air filled cavities give LECA its strength and thermal insulation properties. the base material is plastic clay which is extensively pretreated and then heated and expanded in a rotary kiln. Finally, the product is burned at about 1100 C to form the finished LECA product. A collection of striking features such as light weight, low thermal conductivity, sound reduction, fire resistance, durability and chemical stability so this is so caused wide spread applications of this product in the construction industry, agriculture, environment, road construction and so on. 6. Annual capacity : m3 Project Status 7. Local/Internal raw material access: 100% 8. Sale: - Anticipated local market : 50% - Anticipated export market : 50% 9. Construction Period : 17 months Schedule : Start of activities : 1th month Start of works at site : 3th month End of works : 14th month Start of commercial operation : 17th month 10. Project Status: - Pre-Feasibility study available? Yes No

194 INVESTMENT OPPORTUNITIES Required land provided? Yes No - Legal permission (establishment license, foreign currency quota, environment, etc.) taken? Yes No - Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No - Agreement with local / foreign contractor(s) concluding? Yes No - Infrastructural utilities (electricity water supply, fuel, ) procured? Yes No - List of know how, machinery, equipment, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded? Yes No Financial Table 11. Financial Table Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital Current Capital Total Investment - Value of foreign equipment/machinery: 1.2 million euro - Value of local equipment/machinery: 0 million euro - Value of foreign technical know-how : 0 million euro - Value of local technical know-how : 0 million euro - Net Present Value (NPV): million euro - Internal Rate of Return (IRR): 33.5 % - Capital rate of return : 25%

195 194 IN IRAN S FREE ZONES - Payback Period (PP): 4 years General Information 12- Project type : Establishment : Expansion and completion : 13- Company profile This project has no specified owner

196 INVESTMENT OPPORTUNITIES 195 Project Introduction 1. Project title: production of prefabricated buildings 2. Sector: manufacturing Sub Sector : manufacture of structural metal products 3. Products / Services : 4. Location : Maku Free Zone 5. Project description: Metal prefabricated building are building which all of their structural parts are produced in the factory and their drawing and designs are given to the manufacturer and are constructed based on structural details in the structure drawing. Sheets, profiles, screws and bolts are manufactured as per standards and technical documentation, and cutting and drilling operation are carried out by qualified personal as per drawing with high precision. Then, welding and burr removal are done with high precision. After cleaning up and pouring welding seam, paining is done. It should be noted that the revolution housing foundation used this type of structure for the reconstruction of bam. 6. Annual capacity : Square meters Project Status 7. Local/Internal raw material access: 100% 8. Sale: 8.93 Million Euro - Anticipated local market :90% - Anticipated export market : 10% 9. Construction Period : 16 Month Schedule : Start of activities : 1thMonth Start of works at site : 3thMonth End of works : 14thMonth Start of commercial operation : 17thMonth 10. Project Status: - Pre-Feasibility study available? Yes No - Required land provided? Yes No

197 196 IN IRAN S FREE ZONES - Legal permission (establishment license, foreign currency quota, environment, etc) taken? Yes No - Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No - Agreement with local / foreign contractor(s) concluding? Yes No - Infrastructural utilities (electricity water supply, fuel, ) procured? Yes No - List of know how, machinery, equipment, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded? Yes No Financial Table 11. Financial Table Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital Current Capital Total Investment Value of foreign equipment/machinery: 2.18 million euro - Value of local equipment/machinery: 0 million euro - Value of foreign technical know-how : 0 million euro - Value of local technical know-how : 0 million euro - Net Present Value (NPV): 2.01 million euro - Internal Rate of Return (IRR): 34.9 %

198 INVESTMENT OPPORTUNITIES Capital rate of return :25% - Payback Period (PP):4 years General Information 12- Project type : Establishment : Expansion and completion : 13- Company profile This project has no specified owner

199 198 IN IRAN S FREE ZONES Project Introduction 1. Project title:fiberglass production 2. Sector: manufacturering Sub Sector : manufacture of glass and glass production 3. Products / Services : fiberglass production 4. Location : Maku Free Zone 5. Project description: the fibers which are made of glass melt are in continuous strings from, which are generally used as reinforcements, tissues and textiles. The most typical application of glass fibers is composite industry and they are available in different commercial froms with different chemical compositions so that each of them is suitable for a specific application. Almost 90% of fibers employed in engineering composites are glass fibers. Glass fibers have appreciate strength and hardness and maintain their mechanical properties at high temperatures. They exhibit good resistance against humanity and corruption and they are relatively chip materials. 6. Annual capacity : 7000 tone Project Status 7. Local/Internal raw material access: 30% 8. Sale: 5.27 million euro - Anticipated local market : 40% - Anticipated export market : 60% Iraq and turkey 9. Construction Period : 12 Month Schedule : Startt of activities :1 Month Start of works at site :4 Month End of works :10 Month Start of commercial operation :11 Month 10. Project Status: - Pre-Feasibility study available? Yes No

200 INVESTMENT OPPORTUNITIES Required land provided? Yes No - Legal permission (establishment license, foreign currency quota, environment, etc) taken? Yes No - Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No - Agreement with local / foreign contractor(s) concluding? Yes No - Infrastrauctural utilities (electricity water supply, fuel, ) procured? Yes No - List of know how, machinery, equipmend, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded? Yes No Financial Table 11. Financial Table Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Milliion Euro Total Million Euro Fix Capital 38,445 38, Current Capital 17,814 17, Total Investment 56,259 56, Value of foreign equipment/machinery: machinery 3.99 million euro - Value of local equipment/machinery: machinery 0 million euro - Vlue of foreign technical know-how : 0 million euro - Vlue of local technical know-how : 0 million euro - Net Present Value (NPV): 3.61 million euro

201 200 IN IRAN S FREE ZONES - Internal Rate of Return (IRR): % - Capital rate of return : 33% - Payback Period (PP): 3 years General Information 12- Project type : Establishment : Expansion and completion : 13- Company profile This project has no specified owner.

202 INVESTMENT OPPORTUNITIES 201 Project Introduction 1. Project title: Solar cell and module production 2. Sector: Manufacture Sub Sector : manufacture of electric motors, generators and transformers 3. Products / Services : Solar cell and module production 4. Location : Maku Free Zone 5. Project description: Solar cell or photovoltaic cell (PV Cell) is comprised of a semiconductor with an electric connection. The part absorbs solalar energy and converts it to electric energy. Light rays which are absorbed by solar cell release covalent bonds (atomic bonds of semi conductors) and then create negative free electrons and positive free cavities and the resulted electric power is given to chrge. 6. Annual capacity : KV Project Status 7. Local/Internal raw material access: 0% 8. Sale: - Anticipated local market : 80% - Anticipated export market : 20% 9. Construction Period : 14 months Schedule : Start of activities : 1th month Start of works at site : 4th month End of works : 12th month Start of commercial operation : 13th month 10. Project Status: - Pre-Feasibility study available? Yes No - Required land provided? Yes No - Legal permission (establishment license, foreign currency quota, environment, etc.) taken? Yes No

203 202 IN IRAN S FREE ZONES - Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No - Agreement with local / foreign contractor(s) concluding? Yes No - Infrastructural utilities (electricity water supply, fuel, ) procured? Yes No - List of know how, machinery, equipment, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded? Yes No Financial Table 11. Financial Table Local Currency Required Description Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital Current Capital Total Investment Value of foreign equipment/machinery: million euro - Value of local equipment/machinery: 0 million euro - Value of foreign technical know-how : 0 million euro - Value of local technical know-how : 0 million euro - Net Present Value (NPV): million euro - Internal Rate of Return (IRR): % - Capital rate of return : 33% - Payback Period (PP): 3 years

204 INVESTMENT OPPORTUNITIES 203 General Information 12- Project type : Establishment : Expansion and completion : 13- Company profile This project has no specified owner

205 204 IN IRAN S FREE ZONES Project Introduction 1. Project title: colored metal sheets production 2. Sector: manufacturing Sub Sector :manufacture of basic iron and steel 3. Products / Services :colored metal sheets production 4. Location : Maku Free Zone 5. Project description: colored metal sheets are steel sheets which their surfaces are being painted through given chemical procedures. First of all galvanized coil or cold rolled coil is skinned and is introduced to preparing section continuously and then it is made via different production stages and finally is to market 6. Annual capacity : ton / year Project Status 7. Local/Internal raw material access: 100% 8. Sale:90.86 Million Euro - Anticipated local market : 100% - Anticipated export market : 0% 9. Construction Period : 24 Month Schedule : Start of activities : 1thMonth Start of works at site : 9thMonth End of works : 22thMonth Start of commercial operation : 23thMonth 10. Project Status: - Pre-Feasibility study available? Yes No - Required land provided? Yes No - Legal permission (establishment license, foreign currency quota, environment, etc) taken? Yes No - Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No

206 INVESTMENT OPPORTUNITIES Agreement with local / foreign contractor(s) concluding? Yes No - Infrastructural utilities (electricity water supply, fuel, ) procured? Yes No - List of know how, machinery, equipment, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded?yes No Financial Table 11. Financial Table Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital Current Capital Total Investment - Value of foreign equipment/machinery: 2.79 million euro - Value of local equipment/machinery: 0 million euro - Value of foreign technical know-how : 0 million euro - Value of local technical know-how : 0 million euro - Net Present Value (NPV): million euro - Internal Rate of Return (IRR):86.05% - Capital rate of return :50% - Payback Period (PP): 2 year s General Information 12-Project type: Establishment: Expansion and completion: 13- Company profile This project has no specified owner.

207 206 IN IRAN S FREE ZONES Project Introduction 1. Project title: Anti lock Brake system (ABS) 2. Sector: Manufacturing Sub Sector:Manufacture of motor vehicles, trailers and semitrailers 3. Products / Services : Anti lock Brake system (ABS) 4. Location : Maku Free Zone 5. Project description: ABS stands for anti lock brake system which surrounds the brake system, steer and wheels and keep them in the direct path on the wet and slippery roads when wheels can get out of their path.in other words, anti lock brake system reduces the brake pressure and increases the performance of the brake system while locking wheels. Anti block system were first designed for trains and then planes in 1900.in 1960, car manufacturers began to produce ABS for luxury and expensive cars. Early systems were largely mechanical. Advanced electronic systems with high safety were used in expensive cars since Anti -block systems were developed rapidly in 1990s. Nowadays, the ABS system is used in many conventional vehicles. 6. Annual capacity : Project Status 7. Local/Internal raw material access: 50% 8. Sale: - Anticipated local market : 100% - Anticipated export market : 0% 9. Construction Period : 21 months Schedule : Start of activities :1th month Start of works at site :4th month End of works :19 th month Start of commercial operation :20th month

208 INVESTMENT OPPORTUNITIES Project Status: - Pre-Feasibility study available? Yes No - Required land provided? Yes No - Legal permission (establishment license, foreign currency quota, environment, etc.) taken? Yes No - Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No - Agreement with local / foreign contractor(s) concluding? Yes No - Infrastructural utilities (electricity water supply, fueled) procured? Yes No - List of know how, machinery, equipment, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded?yes No Financial Table 11. Financial Table Description Million Rials Local Currency Required Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital 46, Current Capital 32, Total 79, Investment - Value of foreign equipment/machinery:1.03 million Euro - Net Present Value (NPV): 3.40 million Euro - Internal Rate of Return (IRR): 37 % - Capital rate of return :35% - Payback Period (PP):3 year

209 208 IN IRAN S FREE ZONES Project Introduction 1. Project title: Establishing Industrial livestock complexes (milky and Fattened) 2. Sector: Industrial Sub Sector : Milk & Meat Production 3. Products / Services : Livestock Complexes 4. Location : Maku Free Zone 5. Project description: The project is intended for breeding fattened and milky livestock. The ISIC code associated with the product, on the website of Ministry of Industry, Mining and Trade (which is in the subgroup of manufacturing all kinds of rubber products) is The raw material of this plan includes hay, silage corn, concentrate, dry milk, corn seeds, hay seeds and sperm. The target market will initially be the provision of domestic needs and then, if the production surpasses domestic consumption, the rest is to be exported to Iraq and Iran s eastern neighbors. 6. Annual capacity : 4500 Ton Project Status 7. Local/Internal raw material access: 100% 8. Sale: - Anticipated local market : 100% - Anticipated export market : 0% 9. Construction Period : 21 months Schedule : Start of activities :1th month Start of works at site :4th month End of works :19 th month Start of commercial operation :20th month 10. Project Status: - Pre-Feasibility study available? Yes No - Required land provided? Yes No - Legal permission (establishment license, foreign currency quota, environment, etc.) taken? Yes No

210 INVESTMENT OPPORTUNITIES Partnership agreement concluding with local / foreign investor? Yes No - Financing agreement concluding? Yes No - Agreement with local / foreign contractor(s) concluding? Yes No - Infrastructural utilities (electricity water supply, fueled) procured? Yes No - List of know how, machinery, equipment, as well as seller / builder companies defined? Yes No -Purchases agreement machinery, equipment and know how concluded?yes No Financial Table 11. Financial Table - Value of foreign equipment/machinery: 0.78 million Euro - Value of local equipment/machinery: 0 million Euro - Value of foreign technical know-how : 0 million Euro Description Local Currency Required Million Rials Rate Equivalent in Million Euro Foreign Currency Required Million Euro Total Million Euro Fix Capital 159, Current 52, Capital Total 232, Investment - Value of local technical know-how : 0 million Euro - Net Present Value (NPV): 2.40 million Euro - Internal Rate of Return (IRR): 26.4 % - Capital rate of return :35% - Payback Period (PP): 5.56 year General Information

211 210 IN IRAN S FREE ZONES 12- Project type : Establishment : Expansion and completion : 13- Company profile This project has no specified owner