Creation of industrial complex for Creation of industrial complex for

extraction and complex waste-free extraction and complex waste-free

processing of peat with acquisition of soil processing of peat with acquisition of soil

modificator «AridGrow» for production of modificator «AridGrow» for production of

environmentally clean agricultural productsenvironmentally clean agricultural products

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Factors of success of the project

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Population increase The limited area of arable land

Erosion, salinization, desertification of soil

Increase in fertilizer consumption up to 14% annuallyIncrease in fertilizer prices up to 30% annually

Structure of the object

Peat extracting section:Milled peat 600 thousand m3 per

annum

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Fuel and energy complex:

Electric powerEnergy resources

Diesel fuel

Fish breeding complexes

Peat processing section:Soil modificator: 480 thousand м3 per annum

Pelletized soil conditioner :15 thousand tn per annumBioadditive : 72 thousand м3 per annum

The boundaries of the projectProspects of development

Peat in the Chuvash Republic

38 peat deposits 656 haTotal geological reserves of peat 10038,5 thousand tnWith relative humidity of 40% 50129 thousand м3

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Advantages of fertilizers - soil modificators

In short terms create self-renewable sustainable fertile soil system

Reduce pollution degree and soil salinity Reduce irrigation water consumption by

3-4 times Completely replace synthetic mineral

fertilizers Minimize soil revegatation costs when

preparing planting area (with 20-40 $ / m2 up to 1-2 $ / m2)

Increase survival rate of plants transplanted

Increase crop capacity by 30%

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Projects and resultsThe territory of Sakhir in Bahrain

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Cucumber plantation «AridGrow» (Qatar)

Lawn grass (United Arab Emirates, Qatar, Bahrain)

Commodity market of soil modification fertilizers

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Volume of world consumption of fertilizers – 70

млрд.$

Persian Gulf countries– 21,2 bln

$ (106 mln м3)Russia

External marketInternal market

Main consumers of soil modification fertilizers:

Kingdom of BahrainQatarIran

JordanInterested in buying:

EgyptChina

TurkmenistanKazakhstan

Project performance evaluation

Main indicators of the project performance evaluation (2012-2018 years):Net Present Value of the project (NPV) 14,9 mln. EUR (596,5 mln. RUR)

Pay-Back Period of the project (РВР) 5,5 years

Internal rate of return of the project (IRR) 54,8%

Profitability of sales under the project 36,71 %

Net profitability under the project 27,34%

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Project cost 32.25 mln. EURO (1290 mln. RUR)Attracted investment 24 mln.EURO (893 mln. RUR.)

Number of new jobs 154

Risks of the project

Changes in the USD exchange rate Risks connected with specificity of deliveries to the Gulf States Political situation in the world Legislative risks connected with imposition of export customs duties Increase in freight tariffs for transit by railway and sea shipping

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Advantages of the Chuvash Republic in the project implementation

Availability of peat deposits with peat reserves of appropriate quality and quantity

Availability of stock-farms and poultry farms on the nearest territory (supply of primary products for additive production)

Developed transport infrastructure Competitive salaries

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Project implementation will make possible:

Creation of conditions for the sustainable development of agriculture in the Chuvash Republic

Reduction of risks of fires in peat bogs

Increase of population employment rate in the sphere of peat extracting and processing as well as in agriculture

Positioning of the Chuvash Republic as the region planting ecologically clean products

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Investors are invitedInvestors are invited

Corporation of Development of the Chuvash Republic, JSCGeneral Director – Anatoly DanilovEmail: anikdan@mail.ruTel: (8352)62-05-50