Investment Proposal
"Construction and operation the of seasonal
autocamping in the Bugaz bay"

The present offer is presumable and developed at the base of settlement Solnechnaya Dolina village council proposal with the purpose to acquaint potential investor with prospects of activity in recreational sphere on the Territory of priority development "Sudak".
Contact person - the head of Solnechnaya Dolina village council Alexander S. Taratynov, phone/fax (06566) 35340.
To get the additional information as regarding the project, please, appeal to economy department of executive committee of city council in Sudak: Lenin Street 85-a, Sudak city, Autonomous Republic of Crimea, Ukraine. Contact phone: 38 06566 2-20-96

Mission of the investment proposal

With the purpose of ecological balance preservation in a Bugaz bay and health - improving, rest and entertaining services providing on the ground area and beach assigned for these purposes it is offered creating a seasonal auto-camping from collapsible constructions with an associated infrastructure for rest.
For realization of this project different variants can be considered, including:
1. Creation of joint venture on the following terms:
- Solnechodolinsky village council gives the land plot up to 2 hectares on the rent terms without rental payment;
- The investor finances expenses for construction and equipment of the autocamping.
2. Creation of independent enterprise with the prospect of the ground area purchase (the land price at the given ground area makes less of 3 USD per square meter);

1. Existing situation

The ground area up to 2 hectares is located in the bay Bugaz in 500 meters from seacoast. The coastal strip extension is 150 meters.

The ground area is located in 12 kilometers from Sudak and 14 kilometers from Solnechnaya Dolina settlement to which it is connected largely by asphalted road. In 2,3 kilometers distance there is located lake Bugaz where the fishing is possible. Presently its territory is not filled with any buildings or constructions and occupied by unorganized holidaymakers. There is fresh water well at the land lot and the power line is constructed not far. The shore has sandy and pebble beaches and seawater is remarkable for high ecological cleanliness and a transparency. At coast there is a lot of sea fish and rich underwater landscape. Just this place is used for a scuba diving and hunting.
Fig. 1. The land area location.

More over, there is an alternative variant on acquiring of the land lot at the sea shore directly that is in the departmental subordinacy at present. Solnechodolinsky village council arranges land lot cession in to lands of the Solnechnaya Dolina settlement community.

The auto camping description.
According to suggested variant the auto camping for 50 cars with 50 two beds bungalows construction is proposed.
For their operation it is planned to construct:
- Parking place for 50 motor vehicles;
- Playgrounds for big tennis, volleyball (hire of sports stock including);
- Sanitary - household unit (bio-toilets, shower rooms, washstands, tanks for water);
- Stand-alone wastewater clearing constructions;
- Beach constructions (awnings, bio-toilets, bathing-boxes),
- Other beach ctocks;
- Infrastructure (checkpoint, places for rest).

The sum of investments makes $87 thousands. Duration of complex construction is 2 months (plus 4 months for equipment and stock purchase).

Additional entertainments include horseback riding and fishing (in the Black Sea and Bugas Lake both).

Auto camping should to be under operation since May, 15 till September, 15 it is planned.
In an interseasonal period bungalows and infrastructure will be under watching.

Among communications only electric power line is necessary. In case of auto camping construction at the another land lot (at the sea shore) it should be predicted expenditures for a plastic plumbing construction.

It is planned that all constructions should be temporary (except bungalow) and made from collapsible constructions providing their reliable operation in windy conditions. After holiday season all constructions should to be disassembled and stored in warehouses till next summer.

Fig. 2. Land area view

Application of the suggested project variant will allow provide rendering of auto camping services with accommodation of clients in bungalows, including sanitation services and other profile services.

Application of the suggested project variant will allow provide rendering of auto camping services with accommodation of clients in tents, including sanitation services and other profile services, tickets sales to aqua - park and other infrastructure.

For calculation of the cash flow was applied taxation system for small enterprises - the 10 % Integrated Tax. The given model of the taxation is optimal and is applicable to the project, as the planned quantity of the workers makes 12 persons, and income less than $100 thousands per a year. At the request of the potential investor other model of taxation in calculations can be applied.

Economic efficiency coefficients of the project, 6 years of the project:

- Net profit with the saved up result - $0,103 million USD;
- Internal rate of return (IRR) - 18 %;
- Payback period (PP), discounted - 5,6 years (at the rate of discounting of 15 % annual);
- Payback period (PP), not discounted- 4,2 years;
- Profitableness index (Pi) -2,1
- Depreciated cost of fixed capitals excluding ground and business cost is $0,05 million (6-th year of the project).

As the basic results of the project:
- Creation of resort - entertaining complex;
- Attraction of clients from Sudak region, Ukraine and NIS countries;
- Preservation of Bugaz bay ecosystem;
- New work jobs making;
- Maintenance of gross revenues of the enterprise in the sum of $50 thousands (for 6th year of the project), and net profit more than $0,022 million for the same period

Fig. 3. Beach view near the proposed land lot.

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