The project sponsor is Prof Media, the media arm of the Interros group, one of the biggest Russian private economic groups, with investments, in addition to Prof Media, in mining (Norilsk Nickel), banking (Rosbank), power machines (Silovye Mashiny) and agribusiness (Agros) among others. The Interros group is controlled by Mr. Vladimir Potanin, a Russian investor and businessman. Interros currently owns 80% of Cinema Park. The remaining 20% of Cinema Park is owned by Studio Trite, a Russian company in the film production business in Russia, controlled by Mr. Nikita Mikhailkov, a Russian film producer.

The total project cost is estimated at $128 million. The proposed IFC investment is a $20 million A loan for IFC’s own account.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

* These investment figures are indicative

Cinema Park’s headquarters will be located in Moscow. The company operates two cinemas in Moscow and is planning to open additional cinemas in several cities in the Russian Federation, including Moscow, Saint Petersburg and other regional cities. Cinema Park will operate mainly in retail space in shopping malls and entertainment centers, as well as in free standing buildings in highly populated urban centers with good access to public transportation.

This is a category B project according to IFC''s Environmental and Social Review Procedure because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Potential environmental, social and health and safety issues associated with this project include site locations, previous land use and potential land acquisition issues (e.g. economic or physical displacement), fire & life safety and solid waste management. Applicable environmental and social policies and guidelines for this project are General Environmental Guidelines (PPAH, July 1, 1998), Fire & Life Safety Guidelines (December 2002) and General Health and Safety guidelines (IFC, July 1, 1998). Annual environmental monitoring reports (AMRs) will be required which detail project performance against the requirements of these documents, host country regulation and any other requirements incorporated into the investment agreement.
Location of environmental documents in locally affected community
An Environmental Review Summary will be available for public consultation beginning April 15, 2005 in the following locations: Moscow : Cinema Park Theaters: - Kaluzhskaya- Ulitsa Profsoyuznaya, 61, 3rd floor, open daily 10 am to 6 pm; - “Fifth Avenue”- Ulitsa Marshala Biryuzova, 32, 3rd floor, open daily 10 am to 6 pm. Central Public Libraries of the following cities : Saint Petersburg, Perm, Ufa, Krasnoyarsk, Ekaterinburg, Tyumen, Novosibirsk, each from 10 am to 6 pm.

The project’s expected development impact are in the following areas : - Affordable Leisure: Providing affordable, safe and good quality entertainment and cultural options for the Russian middle class, especially for the young. In-doors entertainment is particularly important in Russia given its severe weather conditions for most part of the year. - Infrastructure: Providing infrastructure for a modernizing and fast growing media sector, with spillover effects to other sectors of the economy. In addition, cinemas help create traffic and extend hours of shopping malls, which is critical to the success of modern retail, a sector IFC is promoting. Clustering leisure facilities like stores, cinemas and restaurants makes efficient use of urban infrastructure including parking lots and access facilities or services - Environmental and Social: The project will elevate environmental and social standards in the Russian cinema sector. The company will produce a Master Fire and Life Safety Plan following international standards (German DIN or equivalent), to be designed by international expert consultants acceptable to IFC. Cinema Park’s cinemas will include special facilities for the disabled at international standards, including special hearing aids for the hearing impaired in selected cinemas. - Local Content: By creating the audiences that creates demand for investors to inject money to the production side of the chain, the Project will indirectly support the production of local films. The company plans to become an advocate of local film production by supporting the Golden Eagle Award for young local film producers. - Piracy: The project will also help counter piracy in media products by increasing the supply of affordable, legitimate products widely within the Russian Federation and supporting an industry whose development will depend on a continued battle against piracy. - Job Creation: The project is expected to create over 500 permanent jobs throughout the country. - IFC Role: Through its investment, IFC will support the development, growth and diversification of a locally-owned and successfully operated company, a role IFC has played in only a select few of its general manufacturing projects to date in Russia. IFC also has a role to play by providing long-term financing that is otherwise not available in Russia today for projects in the media/entertainment sector. IFC’s participation in the project will also lend credibility to Interros on international markets which, given Interros’ considerable contribution to Russian GDP, will have a positive effect on the Russian economy as a whole.