«Construction of the Greenhouse Complex for Growing Vegetables with the Usage of the Thermal Water on the Basis of the Existent Geothermal Wells in the Village of Medvedevka of Dzhankoy District of the Autonomus Reppublic of Crimea»

Photoculture

Drip watering

Hydroponics

СО2 dosing

The Project Implementation Place

Medvedevka Village Council is an administrative-territorial unit, situated in the Northern part of Dzhankoy District of Crimea, in the steppe area of the peninsula, on the coast of Sivash. Population is about 1,3 thsd. people, area — 182,6 km², the village council was set up in 1930ies.

The Main Concept of the Project The existent resource – geothermal well in the Village of

Medvedevka of Dzhankoy District Prospective usage of the energy:

Heating the social objects of the Village of Medvedevka Creation of the modern greenhouse complex with total area of

4 ha (further the expansion is possible) with all-year-round cycle of production in the Village of Medvedevka with Using the existent natural energy.

Key peculiarity is the high level of innovation involvement, implementation of the resource- and energy-saving measures, positive influence on the ecological situation

Introduction of the Resource- and Energy-Saving Measures

Resource- and Energy-Saving Measures

Effect

Low volume technology of growing vegetable crops with drip watering

Decrease 20 times of the support medium, labour cost reduction for 10%, as there is no necessity in preparing and cultivation of soils, applying organic fertilizers, crop capacity increase for 10%, water economy – 20%, mineral fertilizers economy – 40, improvement of the quality of products (nitrate concentration < 80 mg/kg with maximum allowable concentration = 300 mg/kg)

PhotocultureCrop capacity increase for 10%, possibility to use intermediate crop combination (from October to February), increase of the volume of the vegetable products 1,5 times

Separating the heating loops of the greenhouses

Reduction of expenses on heat energy

Transfer to night additional lighting

Tariff decrease on electric energy, electric energy economy for 15%

Using modern lampsDecrease of electric energy consumption 2 times, reduction of term of plant starting for 3 days

Using thermal waters for partial heating the greenhouse complex

Decrease of expenses on heating from 10 to 20%

Positive Ecological Consequences of the Project Implementation

There will be separated and used dissolved in thermal water gas (methane) for generating electrical energy at the gas piston power generating set. The planned according to the preliminary forecasts heat generation for a season in the volume of 2895 Gcal will allow to substitute burning 504 tons of coal per year, what will diminish СО2 emissions in the heating season for 1121 tons.

To decrease the negative influence on the environment in the Project one stipulates СО2 extraction from the fume gas, which is generated during burning coal at the additional boiler room.

The Project Investment Requirements

Measure names Investment Volume

Thsd. grn. with VAT

Thsd. euro with VAT

Reconstruction and modernizing of the geothermal wells and geothermal heating substation

9000,2 839,3

Building and full equipment of the greenhouse complex

58527,3 5458,1

Building other production premises 3320,3 309,6

Total on capital investments 70847,9 6607,1

Working capital financing 4850,0 452,3

Total of investments 75967,9 7059,4

Details on Investment Costs for Fixed Production Assets

№ in sequence

Fixed assets Creation of new fixed assets, grn., without VAT

1 Geothermal heating substation 7692,51.1 Buildings, constructions, transmitting devices 5704,31.2 Equipment 1988,22 Greenhouse complex 50023,4

2.1 Buildings, constructions, transmitting devices 30360,0

2.2 Equipment 19663,4

3 Other production premises 2837,9

3.1 Of production purpose 2229,8

3.1.1 Buildings, constructions, transmitting devices 2229,8

3.1.2 Equipment 0,0

3.2 Of administrative purpose 608,1

3.2.1 Buildings, constructions, transmitting devices 365,3

3.2.2 Equipment 242,7

  Total, thsd. grn without VAT 60553,8

Anticipated Schedule of the Project Implementation

Pre-investment period• registration of land use documents• making a special permission for using the depths• executing the agreement of lease the geothermal heating substation• making marketing researches, scientific rationale• expertise having• negotiations with the suppliers of the equipment, machinery, raw materials

Year 1 (investment year)• attraction of the financial resources;• arrangement of the tender for the final selection of the suppliers of the equipment and transport, looking for contractors;• Reconstruction of the old buildings and constructing new buildings and constructions, repair and constructing utility networks, other

objects• manufacturing, delivery, assembly and start-up and shake-down of the equipment• Putting into operation the geothermal heating substation and greenhouse complex• Purchase of the agricultural equipment• Concluding agreements with potential buyers of the final production

Year 2 - 3• phased increase of the productivity of the vegetables of the protected ground and achieving the planned productivity by the end of 3

year of the Project implementation

Anticipated Indices of Manufacturing Products of the Greenhouse Complex

Index Unit of measure

Year 1

Year2

Year 3

Following periods

Tomato growing volume t 139 891 1002 1114

Cucumber growing volume t 261 1187 1336 1484

Heating Energy Production Volume, incl.: Gkal 1222 2895 2895 2895

for the needs of the greenhouse complex Gkal 688 1629 1629 1629

for the needs of the social and cultural sphere of the village

Gkal 535 1266 1266 1266

The Main Indices of the Economic and Social Efficiency of the Project

Index Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Total

Net income from sales of products, thsd. grn.

4164 22394

26890 31905 34138 36528 39085 41821 236926

Net profit, thsd. grn. 337 6405 9442 13185 14120 15120 16191 17336 92136

Profitability, % 8,1 28,6 35,1 41,3 41,4 41,4 41,4 41,5 38,9

Creating new vacancies, items

52     52

1 worker’s average monthly salary, grn.

2154 2305 2466 2639 2823 3021 3232 3459 2762

Payment of taxes, duties and statutory charges

341 2130 2679 3064 4813 8938 7908 8427 38300

Indices of the Investment Efficiency of the Project

Index Unit of measure

Meaning

Discount payback period - DPP years 6,3

Net Present Value of the Project - NPV thsd. grn. 21 712,6

Internal rate of return - IRR % 14,4

Profitability index - PI unit 1,25

Thank you for attention!

The Declarant/Applicant of the Project contacts:

Dzhankoy region state administration

Legal address of the Declarant:

Ukraine, the Autonomous Republic of Crimea, Dzhankoy, st. Lenina, 6.

Tel./fax (06564)31476

Support of the project

Ministry of Agrarian Policy and Food of the Autonomous Republic of Crimea

Simferopol, str. Kyivskaya, 81(0652) 27-67-10E-mail:plan_apk@mail.ru