Investment Proposal
Construction and Maintaince of Sport Football Center for Children
1.
Mission of the Investment Proposal is:
To conduct sports activities, year round competitions and tranings for
children, youth and master teams on football (on a land lot given for
these purposes), and open children and youth football sport center(Center)
with several football fields ( one field with artificial cover and two
fields with grass cover) and sports grounds for minifootball, tennis,
volleyball and basketball.
One of the reasons of the center construction is a scarce number of
fields with artificial and grass cover for training children and youth
teams in Ukraine.
The Center could be of interest while developing "Silk Path",
serving a base for United Ukrainian Army Football Team, training football
teams from CIS.
Picture 1. Position of the Center in Sudak
To realize the project a joint venture could be created under the condition
of:
- "Surozh" Sudak Football Club on agreement with municipal
executive body gives a land lot with the square of 2 hectars renting
it without charge;
- an investor pays expenses for constructing and equipping the Center
A potential investor could be Ukrainian Football Federation which could
use the Center as a training football base for Ukrainian teams.
According to preliminary estimate, the total amount of investments
for suggested variant ground area development makes 3,02 million USD
Duration of a football fields and playgrounds construction makes 3
months, buildings and structures 6 months, hotel - 2 years.
The Project realization allows to provide sport competitions and sport
activities (football trainings and matches, trainings for other kinds
of sport). One of the Project peculiarities is football fields with
artificial covers, causing master teams trainings in autumn, winter
and spring, while in summer children and youth could recreate themselves.
Land Lot Description
A flat surface land lot with the area of 4 hectares is
situated in Sudak not far from Aquapark which is 200 meters from the
Black Sea. The land lot with the area of 4 hectares where is situated
ground football field is in long-term leasing of the "Surozh"
Sudak Football Club that is the non-government sports - health organization
and works under the state privileges.
The land lot is in the long lease of the "Surozh"
Sudak Football Club. Nowadays there is nothing on its territory and
it is using any way. Close underground water is registered on the territory.
There is a certain amount of technical water to shower football fields
with a grass cover.
Fig. 1. The picture of the described land lot
Football Center designe Description
The Center comprises:
" 2 football fields with a grass cover 110 õ 70 m;
" 1 football field with artificial cover 110 õ 70 m;
" tennis courts, volleyball and basketball grounds;
" 2 multifunctional sport grounds with artificial cover 50 õ 30
ì;
" rooms for shower and clothes exchange;
" subsidiary buildings and stands for 500 places;
" patchment,concrete cover, protection walls;
" hotel for 100 customers, cafe for 80 places, a recovering center
and sauna, massage parlour.
Calculation of incomes and current expenses with respect to project
was done in view that Center provides services on football fields leasing
for 560 hours for play and training of the teams per year.
Economic efficiency coefficients of the project (9 years of the
project ):
- Net profit with the saved up result - 5,9 million USD;
- Internal rate of return (IRR) - 31 %;
- Cost benefit ratio (CBR) - 1,19 (under 15% annual rate of discounting);
- Payback period (PP), discounted - 5,3 years (at the rate of discounting
of 15 % annual);
- Payback period (PP), not discounted- 4,2 years;
- Profitableness index (Pi) -2,23
- Depreciated cost of fixed capitals excluding ground and business cost
- 1,2 million of USA dollars.
Above-listed factors are counted by a common method with discounting
method application without depreciated cost (liquidation value) of the
project.
Economic influence of the project and its social importance
The main incomes are planned to receive of football and sports grounds.
Sources of additional incomes will be: operation of hotel, entrance
tickets sales, additional services, delivery of sportsmen and clients
to the point of departure (airport, railway station) and etc.
For increasing of possible capacity of the Center in off-season the
additional work as regards mass advertising company will be held. The
purpose is to attract football teams for trainings at the open football
fields in a favorable off-season weather condition that is featured
for Sudak region.
The forecast of incomes of economic activities of the Center is designed
for 9 years and first of all, based on increasing of growth of level
it's capacity.
Conclusions:
As
the basic results of the project:
" modern sports - recreational Center of Ukraine for football training
and competitions construction and operation;
" additional possibility for health recovering of children and
adults, citizen and vacationers will appeared;
" attraction of an Ukrainian and foreign teams for trainings and
competitions is possible;
" 75 new jobs creation;
" The coming for training teams will increase a hotel fund capacity
at off season;
" Maintenance of gross revenues of the enterprise in the sum of
2,2 million USD (per year since 9-th year of the project), and net profit
0,7 million USD for the same period.
To get additional information on the Project please address Economics
Department executive Committee of Sudak Municipal Bodies:Crimean Autonomous
Republic,tel.(06566)22096,fax 22492
Contact person: Vladimir Arkadievich Novikov, Deputy major, tel. (06566)
22391.
You are welcome to visit our web-site for additional information:
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