financial overview of the investment program

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2

Financial Overview oFinancial Overview oFinancial Overview oFinancial Overview o

Financial Overview oFinancial Overview oFinancial Overview oFinancial Overview offff the the the the Investment Program onInvestment Program onInvestment Program onInvestment Program on

in the Vicinity of Noragavit District of Yerevanin the Vicinity of Noragavit District of Yerevanin the Vicinity of Noragavit District of Yerevanin the Vicinity of Noragavit District of Yerevan

2012

2012

Investment Program onInvestment Program onInvestment Program onInvestment Program on the the the the 6666 ha Greenhouse ha Greenhouse ha Greenhouse ha Greenhouse

in the Vicinity of Noragavit District of Yerevanin the Vicinity of Noragavit District of Yerevanin the Vicinity of Noragavit District of Yerevanin the Vicinity of Noragavit District of Yerevan

Երևանի ջերմատնային գոտու ծրագրի

Financial Overview of the Investment Program on the 6 ha Greenhouse in the Financial Overview of the Investment Program on the 6 ha Greenhouse in the Financial Overview of the Investment Program on the 6 ha Greenhouse in the Financial Overview of the Investment Program on the 6 ha Greenhouse in the

Vicinity of Noragavit District of YerevanVicinity of Noragavit District of YerevanVicinity of Noragavit District of YerevanVicinity of Noragavit District of Yerevan

International experience shows that

greenhouse is 3-6 ha. Taking this into consideration, calculations are made for a 6 ha

greenhouse. In the meantime, the construction and operation of the greenhouse is possible to

carry out on a phased basis starting from 1 ha.

In case of applying standard technology

constructing a 6 ha greenhouse in the vicinity of Noragavit

9,88 mln. USD (VAT excluded).

the prices submitted by a number of greenhouse producers and distributors.

In order to fund the aforementioned investments and to

total amount of investments will constitute approx.

possible to fund through loans (

TableTableTableTable 1111. . . . Investment costs for a Investment costs for a Investment costs for a Investment costs for a 6 6 6 6 ha greenhouse without assimilation lightingha greenhouse without assimilation lightingha greenhouse without assimilation lightingha greenhouse without assimilation lighting

Investments

Area (6,5 ha)

Right to use outer infrastructures*

Greenhouse

Total capital investmentsTotal capital investmentsTotal capital investmentsTotal capital investments

Replenishment of current assets

Total investmentsTotal investmentsTotal investmentsTotal investments

*Includes the right to use the infrastructures of the centralized system providing thermal, electric energy and

as well as water discharge.

**On top of that, it also includes loan service fees

Capital InvestCapital InvestCapital InvestCapital Investmentsmentsmentsments

ծրագրի ներդրումների կատարման աջակցմանFinancial Overview of the Investment Program on the 6 ha Greenhouse in the Financial Overview of the Investment Program on the 6 ha Greenhouse in the Financial Overview of the Investment Program on the 6 ha Greenhouse in the Financial Overview of the Investment Program on the 6 ha Greenhouse in the


nternational experience shows that the most optimal size of a state

6 ha. Taking this into consideration, calculations are made for a 6 ha


starting from 1 ha.

In case of applying standard technology solutions, the capital investments for

ha greenhouse in the vicinity of Noragavit district of Yerevan will constitute

VAT excluded). The amount of investments is calculated

ber of greenhouse producers and distributors.

In order to fund the aforementioned investments and to replenish

will constitute approx. 10,64 mln USD, the 80 % of which is

(Table 1).

ha greenhouse without assimilation lightingha greenhouse without assimilation lightingha greenhouse without assimilation lightingha greenhouse without assimilation lighting

Investments

USD Specific weight in the

743 333,3

337 500,0

8 796 666,38

9 877 499,71

Replenishment of current assets** 760 000

10 637 499,71

the infrastructures of the centralized system providing thermal, electric energy and

loan service fees for the first two years of operation.

աջակցման մեխանիզմները

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the most optimal size of a state-of-the-art

6 ha. Taking this into consideration, calculations are made for a 6 ha


solutions, the capital investments for

istrict of Yerevan will constitute

on the assumption of

ber of greenhouse producers and distributors.

replenish current assets, the

mln USD, the 80 % of which is

Specific weight in the

total investments

7,0%

3,2%

82,7%

92,9%

7,1%

100,0%

the infrastructures of the centralized system providing thermal, electric energy and gas supply,




The greenhouses to be constructed in the vicinity of Noragavit district of Yerevan will

take advantage of the infrastructures of the centralized system providing thermal, electric

energy and gas supply, as well as water discharge. In the result, in

constructing greenhouses in another area

approximately 2,8 fold.

According to the calculations, the production cost of tomatoes grown

Noragavit district of Yerevan

constructed elsewhere. This, in the

heating costs due to the use of the heat resources of the TPP

condusive to production cost reduction is the reduction in the depreciation costs and loan interest

costs, caused by the reduced investme

As 80% of the investment in the calculations

interest costs of the long-term loan constitute an essential part in the structure of the production

cost. After the complete repayment of the loan the total production cost of tomatoes which makes

0.81 USD will decrease by some

Production Production Production Production CCCCostostostost

Other

constant

costs 10%10%10%10%

Maintnance

4 %

Depreciation

13 %

Interest

amount,

29%

If using the resources If using the resources If using the resources If using the resources

of the Yerevan TPPof the Yerevan TPPof the Yerevan TPPof the Yerevan TPP





energy and gas supply, as well as water discharge. In the result, in

in another area, investments in the infrastructures will be reduced

calculations, the production cost of tomatoes grown

is 15% lower than that of tomatoes grown in a greenhouse

in the first place, is accounted for by the considerable reduction

use of the heat resources of the TPP (some 40-


costs, caused by the reduced investment in the infrastructure.

As 80% of the investment in the calculations done is planned to be made

term loan constitute an essential part in the structure of the production


USD will decrease by some 30% to make 0.57 USD.

Structure of Structure of Structure of Structure of PPPProduction roduction roduction roduction CCCCostostostost

Variable

costs (for

heating

without

gas)

34%34%34%34%

Gas for

heating

11%11%11%11%

If using the resources If using the resources If using the resources If using the resources

of the Yerevan TPPof the Yerevan TPPof the Yerevan TPPof the Yerevan TPP

Other

constant

costs 8%8%8%8%

Maintnance

4 %

Depreciation

12 %12 %12 %12 %

Interest

amount,

29%

If using an independent heating systemIf using an independent heating systemIf using an independent heating systemIf using an independent heating system


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energy and gas supply, as well as water discharge. In the result, in comparison with

investments in the infrastructures will be reduced

calculations, the production cost of tomatoes grown in the vicinity of

tomatoes grown in a greenhouse

the considerable reduction in

-50%). Another factor


to be made through loans, the

term loan constitute an essential part in the structure of the production


Variable

costs (for

heating

without

gas)

29%

Gas for

heating

18%18%18%18%constant

8%8%8%8%

If using an independent heating systemIf using an independent heating systemIf using an independent heating systemIf using an independent heating system




The calculations were made

20% equity. In this case the average profitability

the loan, and 54% after the repayment of the loa

payback period will constitute 5 years, and the discounted payback

Table Table Table Table 2222. . . . Financial DataFinancial DataFinancial DataFinancial Data

LongLongLongLong----term credit term credit term credit term credit ((((US dollarUS dollarUS dollarUS dollar))))

Total interest amount Total interest amount Total interest amount Total interest amount ((((USDUSDUSDUSD))))

Credit repayment period Credit repayment period Credit repayment period Credit repayment period ((((yearyearyearyear))))

Grace periodGrace periodGrace periodGrace period ((((yearyearyearyear))))

LongLongLongLong----term credit interest rateterm credit interest rateterm credit interest rateterm credit interest rate (%)(%)(%)(%)

Profitability by revenue for the first 6 yearsProfitability by revenue for the first 6 yearsProfitability by revenue for the first 6 yearsProfitability by revenue for the first 6 years

Profitability by revenue since the 7Profitability by revenue since the 7Profitability by revenue since the 7Profitability by revenue since the 7

Payback periodPayback periodPayback periodPayback period ((((yearyearyearyear))))

DiscountedDiscountedDiscountedDiscounted payback periodpayback periodpayback periodpayback period ((((yearyearyearyear))))

Financial ResultsFinancial ResultsFinancial ResultsFinancial Results



The calculations were made by the scenario of funding through 80% long

In this case the average profitability will comprise 39,60% before the full repayment of

repayment of the loan, starting from the sixth year of

years, and the discounted payback period will be

7 895 259,9

2 139 921,87

10%

Profitability by revenue for the first 6 yearsProfitability by revenue for the first 6 yearsProfitability by revenue for the first 6 yearsProfitability by revenue for the first 6 years**** 39,60%

Profitability by revenue since the 7Profitability by revenue since the 7Profitability by revenue since the 7Profitability by revenue since the 7thththth yearyearyearyear 5

6,5


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the scenario of funding through 80% long-term loans and

before the full repayment of

, starting from the sixth year of operation. The

will be 6,5-7 years.

7 895 259,9

2 139 921,87

5

1

10%

39,60%

54%

5

,5-7







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financial overview of the investment program

Documents

ha right

investment costs

number of greenhouse

aforementioned investments

outer infrastructures

electric energy

centralized system

loans tabletabletabletable