1. EURORAIL Project Organizational model

2. EURORAIL Project Initiator: Ministry of transport and communications of Ukraine Lviv Oblast State Administration Lviv City Council Cost: 500 mln. EUR Terms: 2010-2015 Prerequisites: Discrepancy of Ukrainian and CIS countries railways (1520) with the EU railway standard UIC (1435) Increased demand for fast and qualified communication between Ukraine (CIS) and Europe

3. EURORAIL Project

4. Project main statements Project subject: The construction of 84 km long EU standard rail track and all required infrastructure between Lviv and Polish- Ukrainian border (Prezemysl/Mostyska and Krakivets). Goal: to provide high speed railway connection between Lviv and Polish-Ukrainian border within III Euro transport corridor. Mechanism: Concession for construction and further operation of the rail track and its infrastructure. Participants: Cabinet of Ministers of Ukraine, Ministry of transport and communication of Ukraine, Lviv Oblast State Administration, Lviv City Council, private companiesЛьвівська обласна Рада, Львівська міська Рада, приватні компанії. Participation of Ministry of infrastructure of Poland is also needed.

5. Implementation algorithm 1. JSC Evrokoliya set up by experienced in this field companies. 2. The Cabinet of Ministers of Ukraine is to issue the Resolution regarding Eurorail Project implementation and assign core Ministry (Ministry of transport and communication of Ukraine) to be responsible for its realization. 3. The Concession Agreement is to be signed with the Company- contractor identified through the Tender. 4. The Concession Agreement is to be prepared and signed by Ministry of transport and communication of Ukraine, Lviv Oblast State Administration, Lviv City Council and JSC Evrokoliya and is to contain Project implementation mechanisms. 5. JSC Evrokoliya attracts all required financial funds and contractors for the Project implementation. 6. After the project is implemented it is to be managed and used by Ministry of transport and communication of Ukraine. The last is to make payments for the benefit of JSC Evrokoliya.

6. Project scheme JSC Eurokoliya Ministry of transport Rail track and infrastructure operation Ownership for the rail track and the part of infrastructure JSCEurokoliya Plots Specifications І Information Ministry of transport Lviv Oblast Administration Investme nts Lviv City Council Founders Construction process Euro rail track usage payments according to the Concession Agreement as the investments return source Ownership for the part of infrastructure

7. JSC Evrokoliya set up Evrokoliya is to be joint-stock company JSC Evrokoliya founders (companies) are to be able to provide qualified Project implementation. Companys dominant task – is to develop contract and legal platform for its further activity (including possible relations coordination between core Ministers of Ukraine and Poland and between Lviv Oblast Administration and Lviv City Council). JSC Evrokoliya is to hold a research on a Project, provide its feasibility study and approve the Project with all Participants. The last stage – Project Business Plan, investments attraction and Project implementation.

8. Concession Agreement Main regulations: Project participants collaboration mechanism. Participants obligations (land plots, information, specifications provision for the Project by its Participants). Constructed objects ownership (tracks, terminals, technical buildings, warehouses etc.). Relations among Project Participants on the after construction stage when the rail track and its infrastructure will be operated. Rail track and its infrastructure usage payments as the investments return source

9. Implementation phases Phase I: 2008 - 2009 Pre-feasibility study Memorandum of Understanding with Dutch MOVARES and NEA for pre- feasibility study, 133,000 EUR attracted from the Dutch government. Additional investment required for Phase 1 – 250,000 eur Phase II: 2009 – 2010 Pre-feasibility study presentation to all the stakeholders for final decision- making The establishment of the International Project Implementation Consortium Finalizing Project Finance Structure and Legal Model (PPP) Phase III: 2010 – 2013 Project Implementation: Construction the rail track from Polish/Ukrainian border to Lviv (86 km) New rail infrastructure development, including modern passenger and goods terminal near and in Lviv

10. Project impact assessment Increase of passenger and cargo flows Maximum shortening of the travel time Social and economic development of the region Ukraines integration with main European cities

11. Leonid Bogdanov, CEO bogdanov@unidevelop.combogdanov@unidevelop.com Yuryi Stetskiv, CFO stetskiv@unidevelop.comstetskiv@unidevelop.com Kyiv, Ukraine 01133 9 Lesi Ukrainki Blvd, Tel.: +38 044 585 10 80 Fax: +38 044 585 10 79 www.unidevelop.com