The investment proposal
"Construction and operation of the
rest-home in Morskoe village"

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.
Fig. 1. The land area location.

Mission of the investment proposal

To conduct sports health improving activities it is planned to construct a rest-home with the sport grounds for court tennis and basketball, also with covered swimming pool on a land lot given for these purposes.
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 3,4 hectares on the rent terms without rental payment (the price of the land plot is appreciated by the land appraisal and makes $575 thousands) and provides distribution network (water and power supply, sewerage, phone lines);
- The investor finances expenses for construction and equipment of the rest-home.

Existing situation

The flat surface land lot up to 3.4 hectares is located in the settlement Morskoe at the sea shore. From the west side the territory is bounded with the small river Voron, and road Sudak - Alushta from the north. At the north-west there is a territory of the "Solnechny Kamen" rest-home.

Fig. 2. The land lot view

Nowadays there is nothing on its territory and it is using for needs of the Morskoe State Farm - Factory. There is a certain amount of technical water to shower plants and sports fields. All village infrastructure (water supply, drainage, power lines) is located not far of the land lot.

Complex description
As variant complex can include:
- Hotel for 100 places with restaurant for 80 persons;
- Covered sea water swimming pool 8 x 15 meters;
- Sports grounds for court tennis and volleyball;
- Beach improvement and beach stock;
- Autonomous heating systems (three peaces);
- Drainage, land improving, planting, fencing.

Construction of 10 luxury three-room numbers three persons each and 35 two-man numbers is predicted by the proposal.

In total expenses for a construction and equipment installation within two years are planned in the sum $1545 thousands.
Duration of complex construction is 14 months.

Application of the suggested project variant will allow provide rendering of hotel service with accommodation of clients in double rooms and luxury numbers, including three meals a day and other profile services. One of the attractive features of the suggested option is the covered pool construction with seawater that will allow year-round functioning of the rest-house.

With a view of reduction of investment expenses, the covering of the swimming pool is planned to make from poly-carbonaceous materials. Their low heat conductivity (plus heating equipment) allows operate swimming pool all-the-year-round.

The poly- carbonaceous covering above pool protects it from a constant contamination and pollution of water, allows to lower the contents of chemical substances in the water preparation block and provides high mechanical parameters and shock durability, panels are not crumbled and do not burst.

 

To reduce the running expenses for heating of the rest-house it is offered to apply the new development (started in a batch production) of the research-and-production enterprise " Institute TEKMASH " (Perekopskaya street, 75, office 708, Kherson, 73039, Ukraine, phone/fax: (0552511981). It is autonomous heating system of a new type. The hydrodynamical heater TEC has no world analogues - for heating a liquid energy of its movement which turns into thermal due to creation cavitation is applied. Energy while disappearing of the air bubble heats up water. In result extremely high efficiency of heating of 85-94 % is achieved.

Economic efficiency coefficients of the project (7 years of the project ):
- Net profit with the saved up result - 1 million USD;
- Internal rate of return (IRR) - 10 %;
- Payback period (PP), discounted - 9 years (at the rate of discounting of 10 % annual);
- Payback period (PP), not discounted- 6,6 years (or 5 years since end of construction);
- Profitableness index (Pi) -2,0;
Depreciated cost of fixed capitals excluding ground and business cost - $0,7 million.

Above-listed factors are counted by a common method with discounting method application without depreciated cost (liquidation value) of the project.

As a result of the project on its second year 50 workplaces will be embed at the second year of the project. The new recreational will be constructed. Additional funds as taxes and dues in the sum $0,26 million of the project will be involved.

As the basic results of the project are follows:
- Creation of a rest-house with the luxury numbers;
- Attraction of clients from among representatives of average and large domestic business, the foreign citizens arriving to southeast Crimea for rest and health-improvement;
- New jobs creatiom;
- Maintenance of gross revenues of the enterprise in the sum of $0,6 million (for 9-th year of the project), and net profit more than $0,19 million for the same period.

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