КBy December 2005 Continental Management will present its plan of Baikalsky reorganization to the Ministry of natural resources: CEO

May 26, 2005. /Lesprom Network/. Continental Management will present the new project of Baikalsky pulp and paper enterprise (Irkutsk region, Russia) reorganization worth $50-120 million, Continental Management CEO Vyacheslav Krylov said during the conference titled ‘Preserve Baikal’. According to Vyacheslav Krylov the Finnish Yaakko Poyry consulting company will present the project plan and will design Baikalsky development concept by mid-August 2005, then the company will work out the business plan and pass it to the Ministry of natural resources for state environmental examination. According to the corporate plans, the Ministry of natural resources intends to carry out the examination in 1Q 2006. In 3Q 2005 Yaakko Poyry will start the fulfillment of a number of environmental measures necessary for the installation of closed water circulation. Ikrtusk region administration will return 100% environmental payments to Baikalsky for the funding of the environmental measures. In 2Q 2006 Continental Management and Baikalsky will start the fulfillment of Baikalsky reorganization in accordance with the modern environmental and economic demands. Vacheslav Krylov said that the shareholders decided to fulfill the previously agreed program to stop dumping into Baikal worth $11 million within 2005-2006 as planned. Speaking on the previous reorganization project (the 1st stage of the project was estimated at $33.5 million, including $22 million to be allocated by the World Bank) Vyacheslav Krylov characterized the project as a badly worked out one. According to Vyacheslav Krylov, the project did not meet the modern technical requirements (the transition to the Euro when equipment prices increased 30%). Vycheslav Krylov said that the project did not include reorganization, it was more about the improvement of the environment-friendly production cycle while it remained economically inefficient. The CEO said he hoped tha Russian and foreign investors would express their interest in the project. Continental Management said it was ready to invest $1 million in the construction of purification facilities in Baikalsk.