OREANDA-NEWS. August 19, 2010. Mr. Paul Herbert, Chief Executive Officer of Ilim Group, Mr. Ilya Mikhalchuk, Governor of the Arkhangelsk Oblast, and Mr. Valery Elezov, Head of the Koryazhma Municipal Entity, have signed and Agreement in Arkhangelsk concerning the construction of a major health center in Koryazhma.

According to the Agreement, Ilim Group and personally Mr. Zakhar Smushkin, Chairman of the Board of Directors of the Company, will allocate a total of RUR 50 million for this project. Following the approval by the Legislative Assembly of the Arkhanglesk Oblast, additional RUR 30 million will be earmarked from the Oblast Budget to complete the construction. RUR 3 million will be added from the Koryazhma city budget. The city budget will also allocate RUR 65 million to purchase medical equipment, furniture and tools.

These joint efforts are intended to complete the construction of the health center, the beginning of which dates as far back as 1989, by the end of 2010. Implementation of the project will be widely publicized, with regular media coverage of the construction progress.

A special Committee headed by Mr. Alexander Dementyev, Deputy Governor of the Arkhangelsk Oblast, was created to supervise the compliance with project milestones.

According to the schedule, the first phase of funding will be provided by Ilim Group and Mr. Zakhar Smushkin personally.

Following its commissioning, the 300-bed health center will meet all the latest requirements for such facilities. It will have five operating rooms with a special air treatment system. The new health center is designed to serve not only Koryazhma city dwellers, but also a much wider population in the south of the Arkhangelsk Oblast.