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1. SUMMARY OF INVESTMENT PROJECT "ROSE
CULTIVATION"
I. PROJECT INFORMATION
Project Title: «Flowers growing using the Dutch technology»
Project content: the use of existing land plot for farming purpose (a total area
makes 1 hectare) to create greenhouses for roses growing using the Dutch technology of
intensive cultivation. Landholder is a Ukrainian farm "Paradise". The total area of available land
is 12 hectares, but for the first stage of a business project would be used only one twelfth of the
available resources - 1 ha. The farm will contribute this land plot as in-kind project contribution.
Dan makes the area economy as intangible co-financing the new project. Funds for the project
realization as a financial contribution would be assured by the foreign investor or creditor.
Dutch cultivation technology is based on the creation of the most favorable
conditions for flowers growing:
- greenhouses with special glass to allow sunlight, but not allow harmful to plants
ultraviolet;
- modern technology of local watering - drip irrigation;
- ventilation system;
- special scheme of flowers planting.
Innovative component is the usage of available geothermal wells as greenhouses
heating. Its use will significantly reduce costs for heating, which is the competitive advantage of
agriculture.
The advantage of the project on this area is an advantageous geographical location
of Transcarpathian region (the bordering region), which is a significant factor for market
finding. Moreover, the Transcarpathian region has predominantly agricultural focus, so there

2. are no heavy manufacturing facilities that can pollute large areas of gardens or negatively affect
the quality of grown products.
The competitive advantages of the project are: the usage of the latest technologies
of Dutch cultivation of flowers, the comparatively cheap and skilled human sources, large
domestic sales market and the proximity of the EU (the potential sales market).
II. DEGREE OF THE PROJECT READINESS
There is an elaborated business plan. Terms of the project realization fully comply
with current national legislation, acts of executive authorities and local government acts. The
project is assured by staff and available facilities (land plot).
III. FORMS OF INVESTMENTS AND INVESTMENT
COOPERATION
Alleged form of investments: loan or investment funds (tabl.1.2.).
Tabl.1.2. Project’s financial support
Investments Amount, thousands $ Share (in %)
Total 1 463.19 100%
including Shareholders'
7.5 0%
equity
of these funds 7.5 0%
involved capital 1 455.69 100%
of these funds 1 455.69 100%
The form and terms of invested capital returning: investments and interest on used
funds will be returning during 3 years (36 months). Another possibility – the creation of joint
venture (the partners share is to be negotiated). The design calculation and analysis is provided
for 3.5 years of garden’s operation.
Investments risks: 1) the risk of yield level, 2) risk at the stage of care (phytosanitary
control).
Investor’s benefits: low risk of the project realization, an attractive rate of interest,
short period of refund.
IV. FINANCIAL AND ECONOMIC INDICATORS

3. Total project cost - USA $ 1 463.19 thousand, of which
- USA $ 7.5 thousand - the price of land for the project;
- USA $ 1 455.69 thousand – fund contribution of the investor or lender (required
investments)
Analyzed period - - 3.5 years.
Payback period - 3 years and 5 months (3.4 years).
Interest rate - 14% (in U.S. dollars).
Not discounted net present value (NPV) - USA $ 2 443.07 thousand
Discounted net present value (NPV) - USA $ 1 260.95 thousand.
Not discounted BCR (Benefit / Cost ratio) = 2.68 (or 268%).
Discounted BCR (Benefit / Cost ratio) = 1.95 (or 195%).
Contact person:
Matviy Kadar,
Investment Projects Leader of the Zakarpattya Investments Agency
Tel.: +38 (0312) 61-27-03, 61-27-65
Fax: +38 (03122) 3-24-03
e-mail: mkadar@investments.uz.ua
info@investments.uz.ua
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