Giurgiulesti Free Economic Zone (G-FEZ) Overview...EU and CIS road network / E584, E87 Rail connection to EU and CIS rail networks via GIFP’s Mixed-Gauge Rail Terminal Direct access

Giurgiulesti – Free Economic Zone (G-FEZ)

Overview

June 2014

Content

Owner and Management of Business Park

Free Economic Zone & Free Trade Areas

Location

Infrastructure Connections

Human Resources

Utilities

Site Map

Offer

ICS Danube Logistics SRL

General Investor and Operator of Giurgiulesti International Free Port

Multi-modal Logistic Service Supplier

Host Investment Agreement

A wholly-owned subsidiary of Danube Logistics Holding BV (The Netherlands)

Activities

Port Operation - Giurgiulesti International

Free Port

Short-Sea / River Shipping

Inland Transportation

Forwarding Business Park

Giurgiulesti International Free Port

Black Sea & Danube River Port

Location: km 133.8 / mile 72.2 of the river Danube

Multi-modal Logistic Centre

Business Park

Entitlement for 120 ha of land (leased for 99 years)

Free Zone Status until 2030

Facilities

Oil Product Terminal

Vegetable Oil Terminal

Grain Terminal

Dry Bulk Cargo Terminal

Container & General Cargo Terminal

Mixed-gauge Rail Terminal (under construction)

Ro-Ro Terminal (under construction)

Business Park

Total Investment to Date: > USD 75m

Management of G-FEZ

Experienced, multi-national management team

Extensive experience in: – Real estate development

– Project management

– Tax

– Finance

Free Zone Regime

Free Zone Regime & Incentives until 2030

Exemption from import/export duties, VAT and excise taxes

Exemption from VAT for goods and services received from territory of Moldova

Exemption from import duties into the rest of Moldova for goods that originate from G-FEZ

75% reduction of corporate income tax during the first 10 years of operation (i.e. 3% instead of 12% in 2014)

50% corporate income tax reduction until 2030 (i.e. 6% instead of current applicable 12%)

Free Trade Regimes

Autonomous Trade Preferences (ATP) with EU

Initialized Agreement for Deep and Comprehensive Free Trade

Agreement (DCFTA) with EU

Central European Free Trade Agreement (CEFTA) with

countries of the Western Balkans

CISFTA: Russia, Ukraine, Belarus, Armenia, Kazakhstan; yet to

be ratified by Kyrgyzstan and Tajikistan

Bi-lateral Free Trade Agreements with CIS countries

Azerbaijan, Georgia, Kyrgyzstan, Uzbekistan

WTO member since 2001

Location

Distance

EU Border 0.5 km

UKR Border 0.5 km

Regional Road Distances

Distance

Chisinau, MD 226 km

Balti, MD 336 km

Bucharest, RO 242 km

Ploesti, RO 209 km

Buzau, RO 140 km

Focsani, RO 104 km

Barlad, RO 114 km

Bacau, RO 202 km

Iasi, RO 239 km

Galati, RO 17 km

Reni, UKR 8 km

Interregional Road Distances

Distance

Chisinau, MD 226 km

Bucharest, RO 242 km

Kiev, UKR 686 km

L’viv, UKR 776 km

Minsk, BY 1,238 km

Moscow, RU 1,532 km

Krakow, PL 1,106 km

Budapest, HU 999 km

Vienna, AT 1,283 km

Belgrade, RS 854 km

Ruse, BG 316 km

Istanbul, TR 749 km

TRACECA

• Transport Corridor Europe Caucasus Asia

• Giurgiulesti is TRACECA port

• TRACECA road connection: M3 (E584) to Chisinau will be finished by 2015

Transport Links

EU and CIS road network / E584, E87

Rail connection to EU and CIS rail networks via GIFP’s Mixed-Gauge Rail Terminal

Direct access to sea and river transportation at Giurgiulesti International Free Port

Weekly Container Feeder Service to Constanta

Proximity to international airports in Bucharest, Chisinau

Ideal location for production and distribution of goods to Central and Eastern European and CIS markets

Human Resources Market

Unemployment rate in the region: 5.6%

Employment rate in the region very low: 38.4% - Romania 59%, EU aims for 75% in 2020

Return of emigrated work force from Russia - enforcement of laws in Russia - finalization of construction sites in Sotchi

Predominant Romanian speaking and bilingual Romanian-Russian work-force

Human Resources Catchment Area

Romania

430,000

Moldova 100,000

Ukraine 150,000

Human Resources Market Study

no. locality population able-bodied population attendance at company

presentation

no. of questionnaries -

applicants

1 Cahul 35000 15000 800 800

2 Lebedenco 2860 900 10 10

3 Pelinei 2300 1000 60 100

4 Gavanoasa 2400 1000 30 30

5 Alexandru Ion Cuza 2600 1000 100 100

6 Crihana Veche 4500 1500 110 140

7 Manta 4000 1500 40 43

8 Vadul lui Isac 3200 1200 67 100

9 Colibas 6500 2500 160 320

10 Brinza 2640 1000 100 175

11 Valeni 3100 1200 100 200

12 Slobozia Mare 6000 2000 300 300

13 Cislita Prut 1375 500 no presentation 180

14 Giurgiulesti 3000 1000 120 330

15 Vulcăneşti 15350 6000 no presentation no presentation

16 Cişmichioi 5170 2000 no presentation no presentation

17 Etulia 3600 800 no presentation no presentation

103595 40100 1997 2828

Summary, work force research of Cahul-Giurgiulesti-Vulcanesti region, Nov.2010

total

Actual Salaries

in MDL p.m. in € p.m.

Worker non-qualified 3,388 194

Worker qualified 6,383 365

Operator CNC machine 9,072 518

Head workman, foreman 10,602 606

Director of production 22,171 1,267

- salaries for Moldovan employees - minimum monthly salary is MDL 1,100 / € 63 - average monthly salary is MDL 4,225 / € 241 1 € = 17.5 MDL

Transport for Employees

Bus shuttle service - currently 8 times a day (4/4) - organized by each respective company

Regular bus service from Cahul to Giurgiulesti - stops in every village - 1 hour transit time - earliest arrival in Giurgiulesti at 7.30 - latest departure from Giurgiulesti at 19.00 - fare: 25 MDL (1.43 €)

Passenger train between Cahul and Giurgiulesti - fare: 5 MDL (0.29 €)

Utilities: Electricity

Newly constructed 110 kV substation

0.4 kV / 10 kV electricity connections

10 MW power

Tariffs:

Tariffs w/o VAT < 0.4 kV 6 – 10 kV 35 – 110 kV

Lei / kWh 1.58 1.40 1.17

€ cent / kWh 9.0 8.0 6.7

Utilities: Gas Supply

Provided by Cahul Gaz

Low, medium, and high pressure gas connections - low pressure: < 0.005 MPa - medium pressure: > 0.005 – 0.3 MPa - high pressure: > 0.3 – 1.2 MPa

Capacity: 550 m³ / hour

Tariffs:

Tariffs w/o VAT Low Medium High

Lei / m³ 6.221 5.835 5.537

€ cent / m³ 35.5 33.3 31.6

Further Utilities

Water - Newly constructed fresh water wells - Capacity 17 m³ / hour, water pressure 1.5 bar - Tariff (Apa Canal Cahul): Lei / m³ 27.97; € / m³ 1.60

Sewage - Assignment of service by tenant (collecting tank and delivery by truck)

- Connection to public sewage network within next few years

Telecom - Fiber-optic cable connection

Site will be connected to road networks and utilities

G-FEZ Masterplan

Giurgiulesti – Free Economic Zone

SEIZE THE OPPORTUNITY

www.g-fez.md

[email protected]