The Investment Proposal
" Diversification of Sudaksky region water supply
and antiflood dams constructions"
Mission
of the Investment Proposal
The essence of the project to be invested consists in diversification
of water supply sources of Sudaksky region and reduction of consumed
water cost at the expense of construction water inlet and water storage
hydraulic engineering constructions for rainwater interceptions. It
will enable competi-tive business, reducing of cost price of releasing
water to consumers and the price of its realization for various classes
of consumers. Analogue - water supply system in Alushta city (considering
population almost in 2 times bigger with less area of reservoir, Alushta
for 100 percents satisfies requirement for water due to interception
of a surface run-off). Besides danger of freshet flooding of a significant
part of region will disappear. In process of the project execution due
to reduction of the cost price of water and increase of profitability
of rendered services the industrial enterprise of plumbing-sewer facilities
in Sudak can assign additional funds for water supply systems restoration.
The main result of the project is constant water supply of resorts and
the population with potable water of required quality at decrease in
tariffs, increase number of holidaymakers , increase of investment appeal
of region.
The description of the existing situation
Presently water supply of Sudak is basically carried out due North Crimean
Channel (NCC) wa-ter from Frontovoye and Feodosyskoye reservoirs in
about 1,5 million m3 / year after clearing on Feodosia treatment plants.
In turn, these reservoirs are filled from North-Crimean channel starting
in area of New Kakhovka (river Dnepr, southern Ukraine), water moves
within distance about 300 kilo-meters and passes through the cascade
of pump stations thus its cost price raises.
The cleared water from reservoirs through steel pipeline (about 75
kms general extension) and cascade of the pump stations lifting water
on about 480 ms height goes in tanks with clean water of Sudak and further
through city water network to water-consumers. A designed capacity of
the pipeline is - up to 20 thousands m3 of water a day (at actual loading
of 14 - 16 percents).
Besides water of NCC city uses about 1,0 - 1,2 million m3 of underground
waters from meshes of wa-ter supply wells (11 chinks in all, 6,0 thousands
m3 a day total charge, 7 pieces working, 4,8 thou-sands m3 charge).
The cost price of this water is much lower than Dneprovskaya, and industrial
enter-prise of plumbing-sewer facilities (IEPSF) in Sudak makes use
of capacities of this source of water supply to the maximum. The lack
is seasonality of debit and its maximal values may be observed in spring.
As debit of well goes down city switches over to consumption of water
from Frontovoye and Feodo-syskoye water reservoirs (water moves through
some pump stations in pipeline of 80 kilometers length).
The local
enterprises also consume water from local sources and the ponds built
on them for farmland watering and other technical purposes, but this
water consumption is minimal.
According to estimates of experts from Krymgiprovodhoz Institute, drilling
of additional wells is possible, but is limited to available volumes
of underground waters and high expenses for their further operation
Considering prospective growth of water consumption in view of development
of region as a resort, the project on diversification of water supply
sources of region and its protection against floods is claimed. According
to estimates of experts, quality of this water after clearing will be
higher than sup-plied from Dnepr, and the cost price 3-4 times lower.
Such approach will help to solve problems with water supply of region
in Sudak and reduce the price of high profitability of the project providing.
In 2001 Crimean state design and survey Institute on meliorative and
hydroeconomic construction "KRYMGIPROVODHOZ" has developed
on the instructions of Executive Committee of Sudak (from 28.08.2000)
technical and economic assessment "Antiflood reservoirs at the
drainage of the local riv-ers for water supply of Sudak ", having
executed great volume of research and design works on selec-tion of
rational technical decisions.
Location of projected reservoirs is planned in the following areas:
" in the distance of 0,5 kms to the west of Lesnoye village (reservoir
"Lesnoye") with volume from 0,70 up to 1.0 million m3, height
of the dam 35 - 40 ms, length - 300 - 400 ms, volume of a dam body is
about 1,5 million m3 of ground;
" in 10 kms to the north of Sudak in the tract Dart - Bogaz with
volume 2,5 - 3,0 million m3, height up to 30 m, length of a dam 200
- 250 m; volume of a dam body is about 1 million m3.
Besides, from reservoir "Lesnoye" up to reservoir "Dar
- Bogaz" water supply network from rein-forced-concrete pipe and
steel pipes O 700 - 800 mm, by extent up to 15 kilometers is provided.
Thus volume of regulated drainage of Taraktash river can make 60 -
70 % or 3 - 3,5 million m3 / year that is quite enough for annual water
delivery in Sudak of 1,5 million m3 of potable water and satis-faction
of needs of city with long-term perspective till 2030 year.
Investment expenditures
The sum of investments for the main objects and infrastructure construction
(determined from works content of objects of analogues) makes $4532
thousands. Duration of ecopark construction is 27 months.
Above mentioned expenses are rough and should be specified during carrying
out of design and pros-pecting works at a stage "working draft".
According to the legislation on TPD "Sudak", the prospective
project is exempted from land tax within 5 years; the further sum of
the land tax is subject to the coordination with local authorities.
There are other privileges on profit tax, import duty, etc.
Parameters of economic efficiency of the project:
- Net profit with stored result (9 years of the project) - 0,8 million
dollars USA;
- Internal norm of profitability of the project (IRR) - 4,3 % for 9-th
year of the project and 10,1 % for 11-th year of the project;
- Efficient factor (CBR) - 1,013 (15-th year of the project);
- pay-back period(PP), discounted - 11,9 years (at the rate of discounting
of 5 % annual);
- pay-back period (PP), not discounted - 10 years;
- Index of profitableness (Pi)-1,008 (11-th year of the project).
- depreciated cost of fixed capital without cost of the ground - 2,7
million dollars USA (11-th year of the project).
The mentioned above factors are calculated by a traditional method
with application of a method of discounting and without taking into
account a depreciated (liquidation value) project cost.
Term of design operation of objects according the project is from 30
till 100 years.
As a result of the project execution there will be created 33 constant
workplaces for 3-rd year of the project. The region is protected from
floods and acquires alternative source of water supply with low cost
price of water. Additional means as taxes and tax collections will be
obtained in local state budgets in the sum of 0,35 million USD for 9
years of the project.
Expected results of the project:
- Realization of alternative water delivery for population and enterprises
of Sudaksky region at tariffs reduction;
- Increase of number of holidaymakers;
- Increase of investment appeal of region;
- Protection of region against catastrophic floods;
- Creation of the highly profitable independent managing subject;
- Maintenance of tax proceeds in about 120 thousands USD for 9-th year
of the project;
- Creation of additional workplaces;
- Predictable volume of proceeds is 1200 thousands USD a year, the profit
of 580 thousands USD a year;
- Payback period of the project - 10 years (since working draft development).
Lifetime of the objects planned in the project from 30 till 100 years.
To get the additional information as regarding the project, please,
appeal to economy department of ex-ecutive committee of city council
in Sudak:
Lenin Street 85-a, Sudak city, Autonomous Republic of Crimea, Ukraine.
Contact phone: 38 06566 2-20-96
You can to familiarize with other investment proposals at http://sudak.00server.com
and http://sudak.by.ru
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