Creation of an asphalt production line.

Project summary

The essence of the project:

The project involves the creation of an asphalt production line for the construction of public roads. The products will meet all the requirements of the local market for the production of asphalt concrete mixes, as well as comply with the international republican standards of the organization

production and quality control.

The project is expected to put into operation a new production line

with a capacity of 350 tons per hour. The preparatory period required for

installation and commissioning of equipment, selection, according to experts, will be 12

months.

The main sales market of the company is the construction of roads, airfields and

sports facilities, laying asphalt pavement.

The priority market for the company's products is construction and repair

roads, airfields, sports facilities and playgrounds. Sale of finished

products will be carried out by drawing up a supply contract for a period of

12 months to 5 years. Also, another important factor is that after

commissioning, production and, if necessary, will be able to work on

maximum possible power.

Products and competitiveness:

The most important condition guaranteeing the success of this project is: a growing

demand for asphalt due to increased road construction;

Production technologies and manufactured products pass all exams and for

obtaining the necessary permits in the republic;

Products have practically no competitors in terms of price and quality, since

the cost of production corresponds to the average market, and the quality of products will be confirmed by laboratory tests.

Necessary investments and financing:

The required investment is 5,500,000 euros, of which everything will be on credit

for 5 years at 5% per annum. Planned schedule for receiving funds in the amount of 5,500,000

euro for 6 months at the request of the debtor (for each tranche separately)

Evaluation of the economic efficiency of the project:

Planning horizon: 5 years.

Assortment planning: quarter.

Payback: PBP is 3 years from the date of receipt of funds;

Accepted discount rate - D: 5% per annum

Discounted payback period - DPBP: 3 years from the date of receipt of funds.

Net cash flow (Net Cash Flow): 17815.4 thousand Euro

Net present value - NPV: 21116.4 thousand euros

Internal rate of return - IRR: 138%

Yield (yield) index: 484.0%