Investment Proposal
"Сonstruction and Maintanance of Cultural and Sport Complex-"Surozh"

1. Mission of the Investment Proposal
To construct and reconstruct the existing buildings in ordrer to create a cultural and sport complex with covered grand stands for 5000 places and a hotel for 100 customers to conduct football matches and other sport competitions, concerts and cultural activities.
Nowadays there is no a cultural and sport complex similar to the proposed in the project in Sudak and Crimea. The proposed for the construction is unique with its comprising components.
The Complex could be exploited all year round. The given Complex could be used as a training base for United Ukrainian Army Football Team and other football teams.

Picture 1. Location of the existing stadium

The planned complex is unique on structure of included components.

For the Project realization a joint venture could be created under the condition:
- "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 the Complex and equipping the Center and territory improvement;

Preliminary costs are calculated according to the standards taking into account every necessary expenditures, new technologies, technological solution complexity and construction conditions are included.

Preliminary Complex costs are 5 724 000 USD. Duration of the Complex construction is 2.2 years.

The Project realization allows provide sport competition and cultural activities (football matches, sport competitions, concerts and festivals) for the city population and its guests, hotel services, feeding sportsmen and actors, for people having their rest in Sudak, giving other additional services.
One of the attractive features of the Project proposed is children ground where children could spend their time while parents are watching concerts, competitions, etc.

Existent situation
Today the existing stadium is not used for its main purpose. The existing stadium construction and the land lot with the area of 2 hectares where they are situated are the base of "Surozh" Sudak Football Club but is not used on the direct destination. The land lot and stadium constructions are in the long-term leasing of the "Surozh" Sudak Football Club (50 years) since 1998. "Surozh" Sudak Football Club is the non-government sports - health organization and operates under the state privileges.

The stadium is located in the center of the city, in a park zone, The Black Sea is 100 meters from it.

Picture 2. View at existing stadium in Sudak

Coefficients of economic efficiency for 9 years of the project

- Net profit with the saved up result - 4,2 million USD;
- Internal rate of return (IRR) - 18 % (15 лет проекта);
- Cost benefit ratio (CBR) - 0,86 (at the rate of discounting of 12 % annual);
- Payback period (PP), discounted - 11,4 years (at the rate of discounting of 12 % annual);
- Payback period (PP), not discounted- 7,4 years;
- Profitableness index (Pi) -1,63 .
- Depreciated cost of fixed capitals excluding ground and business cost - 2,9 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.

Экономическое влияние проекта и его социальная значимость

As a result of the project 80 workplaces will be embed at the third year of the project. The object of sports and amusements will be constructed and it should to exert essential influences on Sudak as the favorable sports and cultural place that provide an additional vacationers and sportsmen at off-season. At the state budget should be attracted additional taxes in 2,3 million USD for 9 years of the project.

As the basic results of the project:
" Construction of the modern cultural - sports Complex;
" Attraction of the football and other teams for competitions and trainings, attraction of the artists and singers groups for cultural acting;
" Maintenance of steady development of the enterprise due to strategy of the advanced complex of sporst -cultural complex granting sports, amusement, cultural and other services;
" Maintenance of gross revenues of the enterprise in the sum of 2,1 million USD (since 9-th year of the project), and net profit more than 0,7 million USD at 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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