Peat processing and production of soil modificator for agriculture
1. Creation of industrial complex forCreation of industrial complex for
extraction and complex waste-freeextraction and complex waste-free
processing of peat with acquisition of soilprocessing of peat with acquisition of soil
modificator «AridGrow» for production ofmodificator «AridGrow» for production of
environmentally clean agricultural productsenvironmentally clean agricultural products
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2. Factors of success of the project
2
Population increase The limited area of arable
land
Erosion, salinization,
desertification of soil
Increase in fertilizer consumption up to 14% annually
Increase in fertilizer prices up to 30% annually
3. Structure of the object
Peat extracting section:
Milled peat 600 thousand m3 per
annum
3
Fuel and energy
complex:
Electric power
Energy resources
Diesel fuel
Fish breeding complexes
Peat processing section:
Soil modificator: 480 thousand м3 per annum
Pelletized soil conditioner :15 thousand tn per annum
Bioadditive : 72 thousand м3 per annum
The boundaries of the
project
Prospects of development
4. Peat in the Chuvash Republic
38 peat deposits 656 ha
Total geological reserves of peat 10038,5 thousand tn
With relative humidity of 40% 50129 thousand м3
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5. 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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6. Projects and resultsThe territory of Sakhir in
Bahrain
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Cucumber plantation «AridGrow» (Qatar)
Lawn grass (United Arab Emirates, Qatar,
Bahrain)
7. 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 market
Internal market
Main consumers of soil
modification fertilizers:
Kingdom of Bahrain
Qatar
Iran
Jordan
Interested in buying:
Egypt
China
Turkmenistan
Kazakhstan
8. 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
9. 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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10. 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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11. 11
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
13. Investors are invitedInvestors are invited
Corporation of Development of the Chuvash Republic, JSC
General Director – Anatoly Danilov
Email: anikdan@mail.ru
Tel: (8352)62-05-50