Investment Proposal
"Construction and operation the of seasonal
auto camping at the Choban Kule cape"

The present offer is presumable and developed at the base of Morskoe village council proposal with the purpose to acquaint potential investor with prospects of activity in recreational sphere on the Territory of priority development "Sudak".
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
Contact person - the director of Morskoe State Farm - Factory Ivan K. Ischuk phone/fax (06566)38030, 38016.

Mission of the investment proposal

With the purpose of health - improving, rest and entertaining services providing on the ground area and beach assigned for these purposes it is offered to create a seasonal auto-camping from collapsible constructions with an associated infrastructure for rest.
For realization of this project different variants can be considered, including creation of Joint Venture on the following terms:
- Morskoe State Farm - Factory gives the land plot up to 3 hectares on the rent terms without rental payment;
- The investor finances expenses for construction and equipment of the auto camping.

Existing situation

The ground area up to 3 hectares is located in east part of the Choban Kule cape near the seacoast.
From the west side the territory is bounded with the small river Choban Kule Uzen, and road Sudak - Alushta from the north. (Fig. 1.).

 

Fig. 1. The land area location.

The ground area is located in 5 kilometers from Morskoe village.
Nowadays there is nothing on its territory and it is using for rest casually by unorganized vacationers. The shore has sandy and pebble beaches and seawater is remarkable for high ecological cleanliness and a transparency.

Fig. 2. The land lot view

The auto camping description.
According to suggested variant the auto camping for 50 cars with 50 four beds tents pitching 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);
- Kitchen;
- Sanitary - household unit (bio-toilets, shower rooms, washstands, tanks for fresh water);
- Water-supply well;
- Infrastructure (checkpoint, places for rest).

Created infrastructure will allow to Sudaksky region businessmen on a rent terms to organize objects of trade and food services, including an ice-cream parlor, a cafe of national cuisines, a disco, a diving center and other establishments.

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

The sum of investments makes $68.4 thousands. Duration of complex construction is 3 months (plus 3 months for equipment and stock purchase).

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, and other infrastructure operation.

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, 5 years of the project:

- Net profit with the saved up result - $0,107 million USD;
- Internal rate of return (IRR) - 45 %;
- Payback period (PP), discounted - 3,2 years (at the rate of discounting of 15 % annual);
- Payback period (PP), not discounted- 2,7 years;
- Profitableness index (Pi) -2,7
- Depreciated cost of fixed capitals excluding ground and business cost is $0,04 million (5-th year of the project).

As the basic results of the project:
- Creation of the auto camping with the Sanitary - household infrastructure;
- Attraction of clients from Sudak region, Ukraine and NIS countries;
- Maintenance of gross revenues of the enterprise in the sum of $60 thousands (for 6th year of the project), and net profit more than $25 thousands for the same period

Fig. 3. Beach under the planned auto camping.

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