Feasability Study CAAN - English

fnorm
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI
Beneficiaries: Ministry of Economy of the Republic of Moldova United Nations Development Program in RM Executor: ProConsulting LLC MD -2004, 23/9 Mitropolit Petru Movila St. Chisinau, Republic of Moldova, tel./fax: 21-00-89 CHISINAU, December 2010
CONTENTS
ABBREVIATIONS .............................................................................................................................................................. 6 EXECUTIVE SUMMARY .................................................................................................................................................... 7 1. INTRODUCTION....................................................................................................................................................... 9 1.1. 1.2. 1.3. 1.4. 1.5. 2. DESCRIPTION OF THE PROJECT IDEA AND THE CONCEPT OF INDUSTRIAL PARK ............................................................. 9 GOAL AND OBJECTIVES OF THE STUDY ..................................................................................................................... 9 BRIEF PRESENTATION OF AN ECONOMIC ENTITY .................................................................................................... 10 PRESENTATION OF ELABORATING COMPANY .......................................................................................................... 11 METHODOLOGY .................................................................................................................................................. 11
ANALYSIS OF THE REGION .................................................................................................................................. 12 2.1. ANALYSIS OF BUSINESS ENVIRONMENT ..................................................................................................... 12 2.1.1. Sectorial analysis ........................................................................................................................................ 12 2.1.2. Analysis of regional activities of enterprises ............................................................................................. 19 2.1.3. Analysis of the district budget .................................................................................................................... 19 2.1.4. Participation in district and national projects .......................................................................................... 21 2.2. ANALYSIS OF THE INVESTMENT CLIMATE ................................................................................................. 21 2.3. ADMINISTRATIVE-TERRITORIAL ORGANIZATION .................................................................................................... 23 2.4. ANALYSIS OF SOCIO-ECONOMIC ENVIRONMENT ...................................................................................................... 24 2.4.1. Analysis of demographic situation ............................................................................................................. 24 2.4.2. Labour force analysis ................................................................................................................................. 25 2.4.3. Analysis of the population well-being and labour performance ............................................................... 28 2.4.4. ANALYSIS OF PHYSICAL INFRASTRUCTURE ........................................................................................... 30 2.4.5. Analysis of natural resources ..................................................................................................................... 30 2.4.6. Analysis of transport infrastructure .......................................................................................................... 31 2.4.7. Analysis of public utility infrastructure ..................................................................................................... 33 2.4.8. Analysis of vocational and higher education institutions ......................................................................... 36
3.
LEGAL FRAMEWORK ............................................................................................................................................ 38 3.1. 3.2. ANALYSIS OF THE LEGAL FRAMEWORK OF THE RM ................................................................................................ 38 ANALYSIS OF LEGAL CONFORMITY OF THE MANAGING ENTERPRISE .......................................................................... 39
4.
ECONOMIC ENTITY PRESENTATION ................................................................................................................. 42 4.1. PROFILE OF THE ENTERPRISE ............................................................................................................................... 42 4.1.1. General presentation .................................................................................................................................. 42 4.1.2. Brief historical review ................................................................................................................................ 42 4.1.3. Fields of activity .......................................................................................................................................... 42 4.1.4. Dimensions of the enterprise ...................................................................................................................... 43 4.2. ENTERPRISES POTENTIAL ................................................................................................................................... 43 4.2.1. Diagnosis and infrastructure of location ................................................................................................... 43 4.2.2. Technical diagnosis .................................................................................................................................... 46
4.2.2.1. 4.2.2.2. Real estate description ...................................................................................................................................... 46 Description of facilities and equipment ........................................................................................................... 51 The list of enterprises ........................................................................................................................................ 52 Buildings ............................................................................................................................................................. 55 Equipment .......................................................................................................................................................... 55 Management and organizational structure ...................................................................................................... 57 Structure of human resources........................................................................................................................... 57
4.2.3.
Operational diagnosis ................................................................................................................................ 52
4.2.3.1. 4.2.3.2. 4.2.3.3.
4.2.4.
Human resources and organizational structure ....................................................................................... 56
4.2.4.1. 4.2.4.2.
4.3. COMMERCIAL AND MARKETING DIAGNOSIS ............................................................................................................ 58 4.4. ECONOMIC AND FINANCIAL DIAGNOSIS .................................................................................................................. 59 4.4.1. Balance sheet analysis ................................................................................................................................ 59 The study was developed by ProConsulting LLC, tel./fax: 21-00-89 2
4.4.2. 4.4.3. Analysis of financial results ........................................................................................................................ 62 Analysis on the basis of financial indices ................................................................................................... 64
Liquidity ratios ................................................................................................................................................... 64 Profitability ratios .............................................................................................................................................. 65 Ratios of financial stability ................................................................................................................................ 65 Analysis of rate of turnover............................................................................................................................... 66 Profitability analysis .......................................................................................................................................... 67
4.4.3.1. 4.4.3.2. 4.4.3.3. 4.4.3.4. 4.4.3.5.
4.5. 5.
SWOT ANALYSIS ............................................................................................................................................... 68
SCENARIOS OF THE INDUSTRIAL PARK DEVELOPMENT............................................................................... 69 5.1. 5.2. 5.3. 5.4. 5.5. 5.6. DETERMINING THE SCENARIO FOR THE INDUSTRIAL PARK DEVELOPMENT ................................................................ 69 SELECTION, ANALYSIS AND SUBSTANTIATION OF THE OPTIMAL SCENARIO................................................................. 74 SALES MARKET FOR PRODUCTION ACTIVITY: .......................................................................................................... 76 IDENTIFICATION OF POTENTIAL RESIDENT ENTERPRISES ........................................................................................ 80 IDENTIFICATION OF THE SOURCES OF FINANCING ................................................................................................... 81 ORGANIZATION OF THE INDUSTRIAL PARKS ACTIVITY ............................................................................................ 82
6.
ACTION PLAN ......................................................................................................................................................... 85 6.1. LEGAL ACTION PLAN .......................................................................................................................................... 85 6.2. OPERATIONAL ACTION PLAN ............................................................................................................................... 88 6.2.1. Activities necessary to rehabilitate constructions and objects belonging to the Straseni "CAAN" JSC ... 88
7.
FINANCIAL AND INVESTMENTAL DIAGNOSIS ................................................................................................. 90 7.1. ESTIMATION OF THE NECESSARY VOLUME OF INVESTMENTS.................................................................................... 90 7.2. FINANCIAL PLAN ................................................................................................................................................ 92 7.2.1. Forecast of the managing enterprise income ............................................................................................ 92 7.2.2. Forecast of expenses of the managing enterprise ..................................................................................... 94 7.2.3. Forecast of financial results ....................................................................................................................... 94 7.2.4. Forecast of cash flow .................................................................................................................................. 96 7.2.5. Forecast of the balance sheet ..................................................................................................................... 98 7.2.6. Forecast of financial indicators ............................................................................................................... 100
7.2.6.1. 7.2.6.2. 7.2.6.3. 7.2.6.4. Indicators of profitability ................................................................................................................................ 100 Liquidity indicators ......................................................................................................................................... 101 Indicators of financial stability ....................................................................................................................... 101 Turnover Speed Indicators.............................................................................................................................. 102
7.3. 8. 9.
ESTIMATION OF INVESTMENT EFFICIENCY ........................................................................................................... 103
SOCIAL AND ECONOMIC AND ENVIRONMENTAL IMPACT OF THE INDUSTRIAL PARK ON THE REGION 105 GENERAL CONCLUSIONS .................................................................................................................................... 108
List of tables
Table 1. Main socio-economic indices, Straseni .................................................................................................................... 12 Table 2. Situation in industrial sector of Straseni district, 2009 ............................................................................................ 14 Table 3. Agriculture in Straseni district ............................................................................................................................... 15 Table 4. Service sector of Straseni district, 2009 .................................................................................................................. 17 Table 5. Indices of regional activities of enterprises ............................................................................................................. 19 Table 6. Execution of Straseni budget, income taxes, taxes and basic payments, 2007-2008 .................................................. 20 Table 7. Execution of district budget in the part of expenses for 2008 (thousand MDL)......................................................... 20 Table 8. General demographic data ..................................................................................................................................... 25 Table 9. Total availability of population in area of 30 km around Straseni, 2007. .................................................................. 27 Table 10. Salaries in Straseni district, January-August 2010 ................................................................................................. 29 Table 11. Network of local roads ......................................................................................................................................... 33 Table 12. Enterprises infrastructure ................................................................................................................................... 43 Table 13. The list of real estate on the balance as of 30.06.2010 ........................................................................................... 46 Table 14. Facilities on the balance as of 30.06.2010 by groups ............................................................................................. 51 Table 15. Incomes, taxes and contributions paid by resident enterprises in 2009 (MDL) ...................................................... 53 Table 16. List of enterprises operating on the territory of CAAN JSC as of 01.10.2010 ........................................................ 53 Table 17. Total area and area of rented premises ................................................................................................................. 55 Table 18. Share of the equipment rented by the existing enterprises .................................................................................... 56
The study was developed by ProConsulting LLC, tel./fax: 21-00-89
Table 19. Structure by age ................................................................................................................................................... 58 Table 20. Structure of staff by education.............................................................................................................................. 58 Table 21. Dynamics of the number of employees and payroll (2008 - 9 months 2010) .......................................................... 58 Table 22. Balance sheet of CAANJSC , 2005 2009, MDL.................................................................................................... 59 Table 23. Dynamics of the balance sheet .............................................................................................................................. 61 Table 24. Profit and loss account, MDL ................................................................................................................................ 63 Table 25. Analysis of liquidity ratios of the enterprise .......................................................................................................... 64 Table 26. Return ratios ....................................................................................................................................................... 65 Table 27. Ratios of financial stability ................................................................................................................................... 65 Table 28. Turnover ratios ................................................................................................................................................... 66 Table 29. Profitability ratios................................................................................................................................................ 67 Table 30. Comparison of activity scenarios of the industrial park ......................................................................................... 72 Table 31. The methods to eliminate the risks of scenario 2 .................................................................................................. 74 Table 32. Benefits of scenario 2 according to categories of beneficiaries............................................................................... 75 Table 33. Total volume of fruit export during 2004-2009 ..................................................................................................... 76 Table 34. Total volume of vegetable export during 2004-2009 ............................................................................................. 77 Table 35. Advantages of packing house. ............................................................................................................................... 79 Table 36. Comparison of options of financing. ................................................................................................................ 81 Table 37. Services of the managing enterprise. .................................................................................................................... 84 Table 38. Legal Action Plan ................................................................................................................................................. 85 Table 39. Schematic presentation of the legal action plan .............................................................................................. 87 Table 40. Action Plan for rehabilitation of enterprise's infrastructure and constructions ...................................................... 89 Table 41. Investment structure ........................................................................................................................................... 90 Table 42. Amount of repair work......................................................................................................................................... 91 Table 43. Forecast income of the managing enterprise, thousand MDL (including VAT) ........................................................ 92 Table 44. Forecast of financial results for the period 2010-2020, thousand MDL (Annex 10. ) ................................................... 95 Table 45. Cash flow dynamics, thousand MDL ....................................................................................................................... 96 Table 46 Dynamics of balance sheet, thousand MDL, 2009-2020 .......................................................................................... 98 Table 47. Structure of assets for the period 2009-2020 ........................................................................................................ 99 Table 48. Main indicators of profitability ......................................................................................................................... 100 Table 49. Main liquidity indicators .................................................................................................................................... 101 Table 50. Main indicators of financial stability ................................................................................................................... 101 Table 51 Main indicators of turnover speed....................................................................................................................... 102 Table 52. Determination of investment efficiency (Annex 12. ) .......................................................................................... 103 Table 53. Forecast of business growth after creation of the park ........................................................................................ 105 List of figures Figure 1. The scheme of economic sectors location in the CDR ............................................................................................. 13 Figure 2. The structure of industrial branches in Straseni district, by number of enterprises, 2009 ....................................... 13 Figure 3. Distribution of employees in processing industry, Straseni district, 2009, No. of people ......................................... 15 Figure 4. Straseni: private investments per capita, MDL ....................................................................................................... 22 Figure 5. Straseni district: structure of investments by the type of economic activity, 2008, % .............................................. 22 Figure 6. Location of Straseni district and CAAN JSC within the CDR .................................................................................. 23 Figure 7. Map of localities of Straseni district ....................................................................................................................... 24 Figure 8. Structure of working population in the CDR, 2007 ................................................................................................. 26 Figure 9. Active population and unemployment rate in the CDR ........................................................................................... 26 Figure 10. Research area on demographic situation. ............................................................................................................ 27 Figure 11. Evolution of performance and labour remuneration in the industrial sector of the CDR, prices comparable to 2005=100% .............................................................................................................................................................. 29 Figure 12. Structure of Straseni district lands, ha ................................................................................................................. 30 Figure 13. Structure of agricultural crops ............................................................................................................................ 31 Figure 14. Network of routes in the CDR .............................................................................................................................. 32 Figure 15. Water supply networks density by districts, km/100 km2 .................................................................................... 33 Figure 16. The share of gasified localities by districts, % ...................................................................................................... 35 Figure 17. Gasification network, CDR .................................................................................................................................. 35 Figure 18. The scheme of the territory of the enterprise with the main buildings.................................................................. 47 Figure 19. Structure of CAAN JSC ...................................................................................................................................... 57 Figure 20. Organizational structure of CAAN JSC ............................................................................................................... 57 Figure 21. Evolution of revenues from leasing services ........................................................................................................ 59 Figure 22. Dynamics of the financial results, MDL ................................................................................................................ 62 Figure 23. Dynamics of liquidity ratios of CAAN JSC .......................................................................................................... 64 Figure 24. The scheme of location of CAAN JSC and the area proposed for the development ............................................... 69 Figure 25. Use of cold storages ............................................................................................................................................ 78 Figure 26. The organizational structure of the managing enterprise ..................................................................................... 83 Figure 27. Dynamics of enterprise's financial results ........................................................................................................... 95
Lists of photos
Photo 1. General view over the enterprise territory ............................................................................................................. 42 Photo 2. State of the road from Chisinau - Ungheni highway to the enterprise ...................................................................... 44 Photo 3. Ramp and cranes ................................................................................................................................................... 44 Photo 4. Condition of internal roads .................................................................................................................................... 45
Photo 5. Production block No. 1 (view from the railroad)..................................................................................................... 47 Photo 6. Block 2 (to the left) and garages (to the right) ........................................................................................................ 48 Photo 7. Block 3 (view from the side of the sanitary block ) ................................................................................................. 49 Photo 8. Administrative block (facade) ................................................................................................................................ 50 Photo 9. Sanitary block (4 floors) and canteen ..................................................................................................................... 50
List of Annexes
Annex 1. List of long term assets as of October 1, 2010 ...................................................................................................... 109 Annex 2 Leased equipment ............................................................................................................................................... 116 Annex 3. Estimate the expenses for capital infrastructure repairs and renovation .............................................................. 117 Annex 4. Investment structure .......................................................................................................................................... 118 Annex 5. Provision of fruits storage and sorting services in the industrial refrigerator ....................................................... 119 Annex 6. Income from lease of available spaces ................................................................................................................. 119 Annex 7. Forecast operational income (VAT including) ...................................................................................................... 119 Annex 8. Forecast consumption and expenses (VAT including) .......................................................................................... 119 Annex 9. Forecast cash flow .............................................................................................................................................. 119 Annex 10. Forecast financial results .................................................................................................................................. 119 Annex 11. Forecast balance sheet ...................................................................................................................................... 119 Annex 12. Calculation of investment efficiency .................................................................................................................. 119 Annex 13. Financial indicators .......................................................................................................................................... 119 Annex 14. Calculation of wear ........................................................................................................................................... 119
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI ABBREVIATIONS
NBS CAAN CU DESIA SME IE SE FH ME NCM GDP EDN CDR NDR SDR TEER RM JSC LLC VAT UNIDO ATU USD
National Bureau of Statistics Company for Unused Assets Rent Certificate of Urbanism Documentation of Environmental and Social Impact Assessment Small and Medium Enterprises Individual Enterprise State Enterprise Farm Household Ministry of Economy Norms in Construction of Moldova Gross Domestic Product Electric Distribution Networks Central Development Region Northern Development Region Southern Development Region Technical Expert Examination Report Republic of Moldova Joint Stock Company Limited Liability Company Value Added Tax United Nations Industrial Development Organization Administrative Territorial Unit American Dollar
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI EXECUTIVE SUMMARY The present feasibility study has been performed in order to determine viability of the concept of creation of the industrial park on the area of 28 ha on the territory of CAAN JSC (Company with private capital, 100%) of Straseni, resident town of Straseni district, situated in the Central Development Region (hereinafter CDR) of the Republic of Moldova, at the distance of 23 km from its capital - Chisinau municipality. The analysis of the regions potential determined the presence of resources available for the development of industrial activities within the park from the point of view of sectoral development of economy in the region as well as of the directions of specialization of enterprises currently existing on the territory of CAAN JSC. Thus, the regional potential supporting the industrial park creation is focused on: business sector of the district mostly consisted of SMEs dynamic part of economy representing an identification area of potential residents of the park correlated with availability of the employable population; high level of soil fertility, trends of annual growth of agroindustrial production and large share of its supplies to foreign markets, continuous trend of growth of retail sale sector in the district and considerable share of food products in this sector; high investment rating of Straseni district at the country level due to its closeness to the capital and growth in the number of foreign enterprises in the district; as well as on priority of the organizational measures in the activity of the local public administration, including in the context of public-private partnership development. At the same time, the district has well developed transport infrastructure, and thus, there are good prospects and higher attractiveness for investors willing to invest in the industrial park, while utilities infrastructure requires additional resources for renovation or construction, which may be implemented by creating working conditions of the industrial park. The results of the factorial analysis of the current situation of CAAN JSC identify opportunities of the industrial park creation on the basis of the resources available at the moment of the study (such as placement close to Chisinau municipality, availability of large production areas, experience in operating according to the principles of an industrial park, easy access ways, free working site, rich experience of the staff in technical, legal and accounting fields), as well as risks which, however, can be eliminated through application of certain strategic development directions. As a result of the analysis of the situation in the region and enterprise, the directions of the industrial park development have been identified. On the basis of a number of indices which led to the substantiation of the optimal scenario of activity, the following points have been identified: creation of the industrial park with the existing activities, new activities on the part of resident enterprises and own production activity related to construction and rent of freezing facilities by administrating enterprise; choice of the variant of financing from own sources of the owner and from borrowed funds (in this case the borrowed capital will make up about 37% of the amount of investment); providing CAAN JSC with the status of administrating enterprise directed at managing the activity of the industrial park and its production activity; identification of the residents who can be local enterprises as well as foreign economic entities included in several categories (the enterprises which will use refrigerated spaces and services of the packing house, current enterprises with a division of enterprises specialized in freezing field and other enterprises which, if necessary, can be transferred to other production sites, new enterprises which are engaged in main production activities as well as with other areas of activity, and new enterprises, activity of which will be determined by value chain). The investments in creation of technical and production infrastructure for establishment of the industrial park are estimated at 27 594 276 Euro which are to be invested in 2 stages during 24 months (2011-2012) and which will be repaid within 9.9 years. At the same time, the net profit obtained by the managing enterprise is estimated in a positive dynamics reaching the amount of 17,7 mln. MDL in 2011 and over 79 mln. MDL in 2020, reaching gross margin of 74% in 2020. Creation of the industrial park by the determined model will have a positive social-economic impact upon the region by means of: efficient use of its resource potential by obtaining the associated benefits (over 800 new jobs in the district, growth of tax collection to the state budget at over 22 mln. MDL in 2011, growth of medical and social insurance payments at over 4 mln. MDL in 2015, contribution to
The study was developed by ProConsulting LLC, tel./fax: 21-00-89 7
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI the growth of revenues from sales in the region in the amount of over 169 mln. MDL in 2011, growth of exports of local enterprises and investment attractiveness of the region, growth of direct investments in the region at about 48 mln. Euro etc.), it will also contribute to economic development of the country. Development of modern utilities infrastructure within the industrial park project will reduce environmental pollution. Finally, it is mentioned that the project of industrial park creation on the territory of CAAN JSC of Straseni will be EFFICIENT provided that the following conditions are observed: optimal scenario, proposed action plan and estimated amount of the investment.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI 1. INTRODUCTION 1.1. Description of the project idea and the concept of industrial park
According to the Law No.182 of 15.07.2010 on industrial parks, industrial park is a delimited area having technical and production infrastructure where economic activities are carried out, predominantly of industrial production, service rendering, implementation of scientific researches and/or technological development within a specific facilities framework with a view to maximizing the human and material potential of a region. The importance of the creation of industrial parks in the Republic of Moldova comes from the need of industrial development of economy able to lead to the optimization of the production costs, obtaining of qualitative and competitive products on the sales market, etc., and as an associated effect, investment processes acceleration in the country is required. Thus, industrial park is an efficient instrument of the economic growth at the national and regional levels due to its impact upon the development of production intended for export and development of home consumption in the country. Straseni is one of the most developed localities of the CDR, being a resident-town of Straseni district, the economic attractiveness of which is also conditioned by its closeness to Chisinau municipality the capital of the Republic of Moldova. In this context, the concept of industrial park creation on the territory of CAAN JSC of Straseni is focused on socio-economic development of the region by means of: attraction of local and foreign investments; implementation of modern and innovative technologies; development of small and medium enterprise sector; application of certain advanced management practices; more efficient use of public-private property and job creation. The above mentioned premises as well as availability of the associated site with the area of 14.8704 ha, situated next to rail-road and national highway Chisinau Soroca, existing infrastructure conditions and economic potential of the region have determined the emergence of the idea and stimulated creation of the industrial park on the territory of CAAN JSC according to the results of the feasibility study and on the basis of Law No. 182 of 15.07.2010 on industrial parks. Creation of the industrial park on the mentioned territory has several major characteristics: Creation of the park on the territory, the area of which allows carrying out various industrial activities; Existing infrastructure and assets of production and industrial storage purpose facilitate the carrying out of activities within the industrial park; Existence of current enterprises on the given territory, majority of which were created over 5 years ago and which carry out their activity according to the principles of industrial park; Experience of the staff of future managing enterprise as regards managing the activity of renting the site, rendering communal services and cooperation with future resident enterprises; High qualification of the staff of the managing enterprise allows rendering technical consulting and high quality legal-accounting services.
The developed feasibility study provides for the opportunities to create the industrial park and optimal scenario of its development based on recommendations of economic, technical and legal organization of activity of the industrial park and the expected effects upon the region. 1.2. Goal and objectives of the study
The main goal of the feasibility study on creation of the industrial park on the territory of CAANJSC consists in substantiation of technical-economic and legal viability of the present project. Objectives of the feasibility study refer to: establishment of the concept of industrial park and indication of the types of the planned activity;
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI assessment of the social, economic and environmental impact of the industrial park on the region development; description of economic activities of the region and possibility to involve the residents in the park as well as human potential of the region necessary for the park activity; diagnosis of the regional infrastructure necessary for the park activity as well as the condition of technical and production infrastructure which is to be connected to the industrial park; delimitation of the site and industrial park configuration; determination of the action plan for industrial park creation; estimation of the investment necessary for creation of the park and funding sources; as well as financial forecasting for activity of the managing enterprises. attraction of local and foreign investments (in vegetables and fruits storing and processing and in related infrastructure; in creation of the park facilities, including provision of modern and equipped areas, etc.); creation of competitive industrial sectors on the basis of modern and innovative technologies; carrying out of economic activities according to the opportunities of development specific to the corresponding zone, including more efficient use of public property; development of small and medium enterprises; creation of jobs within the industrial park and ensuring of equal access of all citizens to activity of the park; development of human resources by improving the quality of professional training within the park.
Objectives of the industrial park creation refer to:
1.3.
Brief presentation of an economic entity
Joint Stock Company Company for Unused Assets Rent (hereinafter CAAN JSC) is located in the industrial zone of Straseni at the distance of about 23 km from Chisinau. Legal address: 1 V. Crasescu St., Straseni, Republic of Moldova. The headquarters of the executive authority is situated at the same address. CAAN JSC, previously Masfrigcomplect (MFC) is founded according to the Law on privatization (No. 627-XII of 04.07.1991), Law on entrepreneurship and enterprises (No. 845-XII of 03.01.1992) and other normative acts of the Republic of Moldova according to the Declaration of Incorporation of September 28, 1995. The company was registered on December 27, 1995 in the State Register of enterprises and organizations under No. 151052150. The company was given the unique identification code (IDNO) 1005600014663. In 1996 the company was restructured as a result of the approval by the State Council of Creditors of the Restructuring Plan. Implementation of the Restructuring Plan conditioned the transition of the production nomenclature to LTD type companies founded by the companys shareholders (former employees of the plant). The company was established for the purpose of increasing the economic value of the existing assets and revenue obtaining. According to the companys Articles of Association it will carry out the following activities: Lease of production, auxiliary premises, machinery, available facilities and equipment; Sale of unused assets; Rendering of business consulting services.
10
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI The company is situated on the territory with the area of 14,8704 ha. Historically, it was one of the 4 enterprises of national importance, destined for production of freezing equipment for the whole Soviet Union. Executive management is performed by Managing Board headed by the General Director (Manager). 33 persons work in the company. The structure of the staff is appropriate there are consultants in such fields as: constructions, equipment, water-sewage system, etc. At present, CAAN is a joint stock company which, if fact, due to the launch of the restructuring project in the 90-s of the past century, operates according to the principle of an industrial park. However, since the analyzed period there was no Law on industrial parks, the company was founded on the basis of the Law on Rent (No. 861-XII of 14.01.1992) as a company for renting unused assets.
1.4.
Presentation of elaborating company
The feasibility study has been developed by ProConsulting LLC company which has operated on the consulting market of the Republic of Moldova since 2003. The company products portfolio refers to: Consulting in financial management. Consulting in strategic management. Consulting in investments and fund-rising. Business planning. Trainings and workshops. Insurance and real estate assessment.
Contact information. MD -2004, 23/9 Mitropolit Petru Movila St., Chisinau, Republic of Moldova. Tel./fax: +(373 22) 21-00-89. office@proconsulting.md Web: www.proconsulting.md
Team of consultants involved in the development of the present study: Palade Anatol - Project Manager. Radov Mariana Senior Consultant, Strategic Management and Investment Projects. Popelnitchi Svetlana Consultant, Marketing and Operational Analysis. Lungu Nicolae Senior Consultant, Financial Management. Vascan Grigore - Consultant in technical issues and restructuring. Utica Oleg - Consultant in legal issues.
1.5.
Methodology
The feasibility study for the creation of the industrial park was developed taking into account the practices of neighboring countries, in particular Romania, Russia, Hungary, Czech Republic. At the same time, the feasibility study was developed according to the UNIDO Methodology, subsequently adjusted to the specific nature of the given project. Within the development of the present feasibility study, a great number of instruments and techniques, depending on the stage of the project sustainability, were used. Data collection. For this purpose, the team of consultants developed the diagnostic analysis of the region and CAAN JSC using the following methods:
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Questionnaire method; Interview method; Observation; Analysis of internal and external reports; Study of the statistical sources; Empirical methods; Science-based methods.
Project development. Fundamental methods are numerous, among which the following ones were the most frequently used: Methods of forecasting: extrapolation of trends with the help of certain statistical and analytical methods; Methods of market research; Methods of strategic and operational diagnosis; Methods of financial modeling. Methods of strategic modeling; Methods of scenario building.
2. ANALYSIS OF THE REGION

Since CAAN JSC, the enterprise on the basis of which it is proposed to develop industrial park, is situated in the small town of Straseni, the regions potential was analyzed taking into account all components of socio-economic development. 2.1. ANALYSIS OF BUSINESS ENVIRONMENT
2.1.1. Sectorial analysis Main indices characterising the socio-economic environment of the region from the point of view of business environment include: Table 1. Main socio-economic indices, Straseni
Population (thousand people) Industrial production, % as compared to the previous year Investment in fixed capital, % as compared to the previous year Retail trade, % as compared to the previous year Services rendered to population, % as compared to the previous year Own revenues in the district budget, % of the total amount of revenues Real salary, % as compared to the previous year Mortality rate, per 1000 residents Crime rate, cases per 10000 residents Source: Statistical Yearbooks of the Republic of Moldova and Main socio-economic indices by development regions, districts and municipalities, different years, National Bureau of Statistics and the Ministry of Finance
The table reflects: the trend of growth of industrial production in 2006 2007 which because of the crisis decreased to the level of 2007 (72,7 % in 2009 as compared to 90,1% in 2007); a dramatic situation regarding capital investments in fixed capital, increase rate of which in 2009 made up practically 1/3 of the level of 2006 (37,7 % in 2009); a relatively stable situation in retail trade and rendered services; trend of annual decrease in own revenues in the districts budget (from 35% in 2006 to 20% in 2009); irregular fluctuations in real salary (decrease in 2007 as compared to 2006,
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI increase next year and decrease again because of the crisis in 2009). Distribution of economic sectors in Straseni district is reflected in the picture below. Figure 1. The scheme of economic sectors location in the CDR
Meat processing Oil production Electric and thermal power plants Tobacco processing Petrol processing Waste treatment Oil extraction
Production of canned food, juices and non-alcoholic beverages wine, champagne, alcoholic beverages Production of garments Cereals processing and storage Manufacture of construction materials Manufacture of ceramic products Manufacture of carpets Manufacture of leather Electrical engineering Production of poultry meat and eggs Woodworking and furniture manufacture Free economic zone existing situation Free economic zone forecasting Industrial parks forecasting Glass production
Sugar production Oil storage Chemical industry Machinery production Manufacture of asphalt Production of dairy products
Footwear production Printing industry pharmaceutical products Storage of radioactive wastes Aeromarine services Shipbuilding Metallurgical industry
Source: National Strategy of Central Development, 2010
Industry. The number of companies involved in the industry of the district is distributed in the following way (Figure 2): most of them are involved in production of food and beverages (26 in number), second position timber processing (15 companies), followed by production of other products from non-metalliferous minerals (15 companies) and furniture production (10 companies). Figure 2. The structure of industrial branches in Straseni district, by number of enterprises, 2009
others - 15 1 Tobacco product manufacture 26 - Food and beverage industry 4 - Textile product manufacture
10 Furniture production 2 Machinery and electrical equipment production 9 Machinery and equipment manufacture
15 Production of other products from nonmetalliferous minerals
9 - Production of garments; furs preparation and dyeing
15 - Woodworking and wooden item production 3 - Chemical industry 4 - Publishing, printing and reproduction of informative materials
7 - Rubber and plastic production
Source: NBS
13
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Thus, the majority is represented by enterprises from the agricultural product processing industry. In 2008 there were 18 wineries, this being the largest number at district level in the country. Thus, industrial production is concentrated in winery sector (wines, divin), and bakery products. There are also 6 enterprises of light industry (including textile industry) in the district. Availability of natural resources in the district also allowed for the development of extraction industry. Gravel, pebble, boulders and flint and stones are extracted for carving and construction, however, they are not used for production of construction materials at the local level. Revenues from sales produced by the districts industry are distributed in the following way (Table 2. Situation in industrial sector of Straseni district, 2009): revenue from sales in the whole industrial sector of Straseni district makes up about 300 mln. MDL, out of which over 80% come from processing industry (or about 248 mln. MDL). The largest share of processing industry belongs to food and beverage industry 61% of processing industry (or about 151 mln. MDL), followed by rubber and plastic production - 12% of processing industry (or about 29 mln. MDL). Table 2. Situation in industrial sector of Straseni district, 2009
Economic sector Number of companies Revenues from sales, 2009, thousand MDL Number of employees
Industry, total Extractive industry Processing industry, out of which Food industry and beverages Tobacco product manufacturing Textile product manufacturing Production of garments; furs preparation and dyeing Wood processing and wooden item production Publishing, printing and reproduction of informative materials Chemical industry Rubber and plastic production Production of other products from non-metalliferous minerals Machinery and equipment manufacturing Production of machinery and electrical equipment Furniture production Electrical and thermal energy, gas and water
Source: NBS
124 2 119 26 1 4 9 15 4 3 7 15 9 1 10 3
294 748 45 484 248 758 151 768 1 711 936 12 744 5 340 707 3 196 29 409 16 199 9 055 100 11 183 505
1 792 211 1 575 855 8 9 220 61 13 18 70 84 63 4 70 6
At the same time, per capital industrial production value is lower than average in the Central Development Region 2 506 as compared to 3 034 MDL, while in enterprise it makes up 2.93 mln. MDL. Industrial production value for 2009 made up per total in the district 188 mln. MDL (about 48% decrease as compared to 2008). The number of employees in industry is presented for 2009 in the following way: total in industrial sector there are 1 792 employees, out of which 1 575 (or 88%) are engaged in processing industry
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI (their distribution within the given branch is presented in Figure 3. Distribution of employees in processing industry, Straseni district, 2009, No. of people), 211 in extractive industry and 6 in energy sector. Figure 3. Distribution of employees in processing industry, Straseni district, 2009, No. of people
70 Furniture production others - 100 63 Machinery and equipment manufacture 7 Machinery and equipment manufacture 855 - Food and beverage industry
84 Production of other products from nonmetalliferous minerals 70 - Rubber and plastic production 18 - Chemical industry
13 - Publishing, printing and reproduction of informative materials 61 - Woodworking and wooden item production
220 - Production of garments; furs preparation and dyeing
9 - Textile product manufacture
8 Tobacco product manufacture
Source: NBS
With reference to Straseni. The first position is held by processing industry, especially viniculture. Straseni enjoys a rich variety of the best European vine sorts: Aligote, Sauvignon, Riesling, Cabernet, Muscat, Ottonet, Pinot, Merlot, Riesling de Italia, Isabella, from which high-quality champagne, dry, ordinary or sweet wine are produced. The industrial part of the town is situated in the North-West region of the town and is separated from the dwelling area by railroad. Winery and brick shop of the Plant of construction materials are situated in the North of the town. The town has and economically uses railroad. Agriculture. Because of not quite favourable conditions, agricultural harvest, though diverse one, is not very rich as compared to other districts of the CDR. Grape cultivation is very important for the district. At the same time, zootechnical sector is also developed, especially cattle and poultry breeding for slaughter, the field where Straseni holds the third position in the republic. Also pork breeding is quite developed in the district. The number of agricultural enterprises 11 041 12.1 per 100 residents is lower than average in the region. Majority are small enterprises, only 0,6% being agricultural enterprises with the area of over 10 ha. The number of technical stations for maintaining agricultural machinery is relatively small and does not satisfy the needs of the district (only 7 technical stations). The number of tractors in the district is 8,7 units/1000 ha as compared to regional average value of 11,2 units and national average value of 12,9 units. In the agricultural sector of the district main cultivated vegetal products are: cereal and legume crops, sun-flower, potato, squash, fruit and grapes. In the last 4 years the agrarian sector of the district was developing unevenly because of unfavourable climate conditions, excessive parcellation of lands, use of poor quality seeds and lack of financial sources, the fact reflected in Table 3. Agriculture in Straseni district. Table 3. Agriculture in Straseni district
Nr. 1.
Indices Global volume of agricultural products at current prices. Including: vegetal products Food production
Unit. thousand MDL thousand MDL thousand
01.01.06 495 000 378 000 117 000
01.01.07 327 000 222 000 105 000
01.01.08 300 000 193 000 107 000
01.01.09 573 000 488 000 85 000
01.01.10 593 000 501 000 92 000
15
MDL 2.
Global volume of agricultural products at prices compared to 2005 Including: vegetal products Food products
thousand MDL thousand MDL thousand MDL ton ton ton Ton Ton Ton Ton Ton ton thousand pcs ton
331 000 253 000 78 000 54 484 2 014 80 2 350 2 565 13 344 36 010 3 950 10 282 2 927 20,5 17 596 7 685 3 261 367 131 5 072 12 802 9 190 1 370 434 293 2 115 250 240 275
221 000 148 000 73 000 41 419 2 410 36 3 030 1 661 9 752 19 590 3 341 9 115 3 150 20,5 15 146 7 701 3 261 156 86 5 114 15 951 8 977 1 322 476 591 2 560 250 240 275
195 000 121 000 74 000 12 560 1 700 2 930 1 056 8 552 27 300 6 110 5 016 3 260 20,5 13 098 7 709 3 332 103 73 3 883 12 503 7 896 1 336 662 747 2 430 220 250 280
446 800 376 000 70 800 46 945 1 920 4 075 3 255 7 590 39 770 5 560 6 275 5 010 20,5 11 469 7 714 3 343 79 54 3 208 8 981 7 161 1 152 563 156 2 550 245 275 320
495 000 418 000 77 000 49 560 1 085 1 170 2 035 12 980 44 400 5 600 6 450 5 100 30 16 289 8 259 3 361 150 85 3 300 9 000 7 500 1 165 526 775 2 600 250 310 320
3.
Agricultural products by types: Cereal and legume crops - beans Sun-flower Soya Potato Vegetables Fruit and berries Grapes Cattle and poultry in live weight Milk Eggs Wool Areas sown with agricultural cultures: Annual cultures Vineyards Orchards
ha ha ha ha ha
4.
5. 6. 7.
Planted vines Planted orchards Flock of cattle and poultry Bovines Porcine Ovine and caprine Horses Poultry
heads heads heads heads heads Kg units g g
8. 9. 10. 11.
Medium production of milk from a cow Medium production of eggs from an egglaying hen Daily rate of bovine fattening Daily rate of pork fattening
Source: Information on the socio-economic situation in Straseni district (MET)
The situation in the table is due to: Satisfactory state of cereals; Revitalization of viticulture branch beginning with 2004, though reduction of its volume in 2009 because of low prices for grapes and absence of wine market, thus, in 2009 areas with non-productive vines grew by 9% as compared to 2008; Difficult state of pomiculture: non-conformity of agrotechnical requirements to the phytosanitary state (that is in regard of plants protection). Nevertheless, in the last 5 years new orchards were planted on the area of 418 ha; Higher harvests in vegetables in 2008 vs 2007 resulting from expansion of areas of protected lands, but, also decrease in vegetable areas in 2009 because of surplus of imported vegetables in the domestic market; Decrease in milk production connected with decrease in cow flock, though increase in cattle and poultry production as well as egg production in 2009 as compared to 2008;
16
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Concentration of animal production in individual sector population and farm households and emerging of possibilities of transition to artificial insemination of cattle with the spermatic material from reproducers with high genetic potential (at present there are 28 such points in the district); Low level of provision with agricultural equipment and outdating of the machine and tractor park, inability of agricultural land owners or holders to purchase new equipment.
Thus, Straseni district has a quite high agricultural potential, however, capacity of processing agricultural products is poor because of outdated technologies and fragmentation of agricultural areas into small parcels. Moreover, poor economic potential or agricultural enterprises and farm households, inefficient management of agricultural production have determined under-developed state of agricultural products processing sector. With reference to Straseni. The level of mechanization of agricultural farms covers 50% of the needs in agricultural machines and tractors. At present economic entities of the town hold: tractors 15 units, out of which only 3 were bought in the last 5 years; machines 17 units, all of which are older than 5 years; combines 4 units, all are older than 5 years. In general, agricultural equipment is physically and morally outdated, insufficient in number for practicing efficient agriculture. At present, for processing agricultural products the locality has: 2 corn and wheat mills; oil mill; bakery; fruit dryer; 2 refrigerators for storage of agricultural products with the capacity of 500 tonnes; plants for grape processing. In general, agricultural products are sold on the local market of the Republic of Moldova in proportion of 60%, and namely: industrial crops Straseni, Chisinau, cereal crops Straseni, Chisinau, Balti, fruit and vegetables - Straseni, Balti, Chisinau; while 40% of agricultural products are sold on foreign markets. Most areas of vineards and orchards were planted more than 20 years ago. These sorts today do not meet market requirements and need to be renewed. Thus, most fruits are sold to processing enterprises. Main economic entities operating in agriculture are: Growing agricultural products Secrieru LLC, Bacarji FH; Processing of agricultural products Vin Select LLC, Plai-Fruct JSC; Services rendering Ceaglei IE; trade URECOOP, ASECOP, Premium Consum LLC. Other economic entities carry out an activity on family principle, main occupation being cultivation of personal parcels in small proportions. These farm households have no potential for financing since are poorly developed and have no sufficient mortgage. Services. Service sector in Straseni district is mostly represented by retail trade, the volume of which was continuously growing until the crisis of 2009, after which it decreased by 4,1%. In the structure of paid services rendered to population the largest share belongs to public, postal services and communications and services of public catering. In the district there are both companies of transportation of goods and passengers. Passenger transportation is mostly performed by individual enterprises and limited liability companies. During 2008-2009 the volume of services provided for population by the economic entities from private and mixed sector with participation of foreign capital increased, while the volume of paid services by institutions of public form of property decreased. Retail trade. In 2009, consumer goods were sold in value of 251223,2 thousand MDL, registering a decrease by 4,1% as compared to 2008. In the structure of retail sale of goods the considerable share belongs to non-food goods making up 52,67%. Table 4. Service sector of Straseni district, 2009
Indices, 2009 Sale of consumer goods, total Services rendered to population Contract works Source: NBS thousand MDL 251 223,2 137 037 39 700
17
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Rendered services. During 2009, the population was provided with paid services in the amount of 137 037 thousand MDL, resulting, in comparable price conditions, in a 4,8% decrease as compared to 2008. At the same time, the volume of paid services rendered to population was due to the activity carried out by economic entities from the sectors: mixed (public+private) 3,57% of all the rendered services, private 45,76%, mixed (with foreign participation) 25,49%. In public sector 25,17%. Contract works. In 2009 contracting enterprises and organisations performed construction-erection works in the amount of 39,7 mln. MDL (at current prices) representing a 52% decrease as compared to 2008. In the structure of the performed works, works at new constructions with 51,5% in total volume predominate. Running repairs made up 48,5% of the total volume of performed contract works. In the structure of contract works in 2009 by the form of organization, the main volume of works was carried out by the economic entities with private form of property. Transportation of goods and passengers. In 2009 goods in the volume of 37.1 thousand tonnes was transported (representing a 23% decrease as compared to 2008). Goods traffic in 2009 made up 45.9 mln. tonnes/km or 0.5% increase as compared to 2008. Passenger transportation with mini-buses made up 1 539. 9 thousand passengers in 2009 (or about 60% more as compared to 2008) and passenger traffic of 31.6 mln. passenger/-km (or by 17% more as compared to 2008). Potential resources for the industrial park In the context of industrial park creation, we see the opportunity of its development in various directions, including industry of agricultural products processing, of manufacturing of agricultural equipment and facilities and of technical servicing for agro-industrial complex. This statement is based on: Complex industrial infrastructure available in the district which benefits from the activities in the areas with the share of national importance such as: viticulture industry (with a very large share in the country production), canning industry, bakery, meat production; Growth of agricultural production diversity, combining grape cultivation, zootechnical sector (cattle, poultry, pork breeding) and vegetal products cultivation; High level of soil fertility; Need for mechanization and agricultural sector servicing characterized by insufficiency of technological maintenance stations and existing outdating agricultural facilities; Trend of annual increase in agro-industrial production and large share of its supplies to the foreign markets.
Recovery of the mentioned branches is also justified by the significant development and continuous trend of growth in the retail trade sector of the district and significant share of food products in this sector. Expected benefits for the district Implementation of this branches within the industrial park will condition: Growth of the number of enterprises in the district and accordingly new jobs creation, Modernization and support of the agricultural sector of the region by implementing the mentioned industrial branches, Increase in industrial production and, correspondingly, agricultural production in the localities of the district, Increase in exports and investment attractiveness due to increase in volumes of sales in branches, Extension of local trade in agricultural and industrial products, Depolarization of economic activities in the Republic which are mostly concentrated in Chisinau municipality Growth of employees incomes and increase in living standards of population from the region.
2.1.2. Analysis of regional activities of enterprises Development of entrepreneurial activities is one of the main objectives of regional development in the CDR. During 2004-2008 the number of enterprises increased by 43%. The growth in the number of enterprises is registered with all types of enterprises, with the exception of medium enterprises the number of which decreased by 19%. This phenomenon can be explained by the fact that the number of enterprises increased on account of micro-enterprises. At the same time, the number of jobs reduced by 11%, mostly on account of medium and large enterprises. Although the number of enterprises is constantly growing, the level of enterprises localization is rather low and in 2008 it made up 54 enterprises per 10 000 residents, which is twice as little as in average in the country. Also, spatial distribution of enterprises sales is uneven, varying from district to district up to ten-fold. Straseni is one of the most active zones from economic point of view where over 65 SME operate per 10 000 residents. SME sector makes up 98% of all the enterprises and employs 62% paid workers. More than 73% of all the enterprises are micro-enterprises. They employ 14% of all paid workers and perform 7% of the total amount of business activity.
Table 5. Indices of regional activities of enterprises
Indices Number of SME per 10 000 residents, 2008 Micro-enterprises (0-9 employees), % Small enterprises (10-49 employees), % Medium enterprises (50-249 employees), % Dynamics of the number of employees in industry in 2007 (2004=100) (%) Dynamics in number of industrial enterprises in 2007 (2004=100) (%) Dynamics in number of service enterprises in 2007 (2004=100) (%) Dynamics in number of agricultural enterprises in 2007 (2004=100) (%) Share of the agricultural enterprises operating at loss in 2007, (%) Source: National Strategy for Central Development, 2010 CDR 52.84 74.29 21.05 4.65 96.6 100 136.9 103.6 45.57
Straseni district
65.46 73.29 21.87 4.84 94.1 100 149.8 136.1 36.7
Potential of resources for industrial park The region inclusion in the zones with the highest economic activity in the country determines continuous growth in the number of enterprises in the region, which reflects the potential of their involvement in the industrial park, especially among SMEs which make up the most significant part of the total enterprises in the region. Expected benefits for the district Benefits will be reflected in the further increase in the number of jobs, continuous growth in the number of enterprises per total, increase in the number of enterprises in industry and, as a consequence, improvement of the situation in agriculture, decrease in the number of agricultural enterprises in the region operating at loss. At the same time, jobs reduction at large enterprises in the region can be compensated by involving the corresponding staff in the territory of the industrial park which will be created.
2.1.3. Analysis of the district budget With a view to implementing provisions of the Action Program regarding socio-economic development of the district, a number of actions were undertaken for budget-financial situation stabilization. The district budget for 2008 established revenues in the amount of 124 754 thousand MDL and expenses in the amount of 125 254 thousand MDL. During the budget year, amendments were made both to the part of revenues and the part of expenses. As a result, final provisions on revenues from all the components made 138 418 thousand MDL. According to the situation as of January 1, 2009 the budget was executed in the volume of 139 196 thousand MDL, which made up 100.5% of the planned for the
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI reported period. As compared to the period of 2007, revenues by 1 809 thousand MDL less were accumulated. The sum of accounts payable of the institutions from the budget sector as of 01.01.2009 made up 8 153 thousand MDL while the sum of accounts receivable made up 703 thousand MDL. As compared to the indices of 2007 the debts increased by 2 026 thousand MDL and 408 thousand MDL respectively. No salaries payable were registered in the budget sphere for 2007-2008. Table 6. Execution of Straseni budget, income taxes, taxes and basic payments, 2007-2008
Categories Total general revenues including: Transfers from the state budget Total own revenues, out of them: Income tax on salary and other incomes Income tax on entrepreneurial activity Land tax Real estate tax Road tax Natural resources consumption tax License tax Land lease payments Business license fee Land improvement tax Tax for placement of outlets , service tax Collection of special fees Special funds revenues Other collections, taxes and payments 2008 139 196 104 003 35 194 15 660 6 222 2 669 941 707 870 309 565 296 438 572 4 632 36 1 275 % 2008/2007 117 127 95 120 58 97 131 139 68 56 105 97 107 129 123 199 69
Source: Information on socio-economic situation in Straseni district (MET)
Table 7. Execution of district budget in the part of expenses for 2008 (thousand MDL)
Categories State services of general purpose National defense Maintaining public order and national security Education Culture, arts, sports and events for the youth Healthcare protection Insurance and social assistance Agriculture, forestry, fishery and water industry Industry and construction Transports, roads, communications and computer science Public utilities and housing facilities maintenance Complex for fuel and energy Other services related to economic activity Expenses outside other main groups Net credits Total expenses Executed 13 025 502 4 139 86 134 8 276 3 037 10 662 2 183 1 830 8 118 339 2 350 -64 140 531 Source: Information on socio-economic situation in Straseni district (MET) % executed / plan 95.0 97.2 99.4 96.3 92.2 98.5 96.5 95.1 74.1 91.0 96.1 67.5 94.6
Analysis of the local public administration capacities for development demonstrated the existence of minimum financial possibilities. During 2004-2008 average volume of public expenditures per capita in CDR only made up about 1 160 MDL or a little more than 100 USD/75 Euro. Straseni district has the approximate level of this average value.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Potential of the resources for the industrial park creation In the context of the public budget, we can note the positive aspect of the financial resources allocation for education which contributes to training and professional development of young staff who may be employed by the potential enterprises on the territory of the industrial park. Expected benefits for the district We believe that the industrial park creation will allow for justification and increase in financial resources, presently insufficient or even unavailable in the local budget, which will support activities within the park, including by updating the existing transport and road infrastructure, which will provide benefits at the district level by means of improvement of the living conditions of the population. 2.1.4. Participation in district and national projects In order to have a deep understanding of the problems of district interest in economic and social areas and to solve them, the district participated in development of territorial, national plans: Local programs of socio-economic development for 2005-2015 in the context of the National program Moldovan Village; Program of socio-economic development of Straseni district for 2008-2011; Plan of Straseni district land improvement; Territorial action plan for labour force employment for 2009 District program on eradication of disorders because of iodine deficit; Territorial immunization program, Territorial program for prevention and combating virus hepatitis B,C and D, control and prevention of HIV/AIDS/STD or TB, etc.
Special attention is paid to strengthening cooperation and efficient collaboration relations of 3 structures: At local level mayors offices, local councils; At district level district council, districts chairman, decentralized and deconcentrated district services; At central level Parliament, Government, ministries, departments, agencies. Potential of the resources for the industrial park creation Organizational activity is the priority direction in the activity of the local public administration of the second level. Workshops, meetings, conferences, round-tables with participation of mayors, representatives of decentralized and deconcentrated services on the territory, public officials from mayors office are organized regularly. Thus, in 2009, for example, there were: 1 meeting and 7 conferences with participation of mayors of administrative territorial units, secretaries of local councils, public officials with various topics: Notarial actions, Powers of local public administration in 2009 Parliamentary elections, Development of Public-Private partnership. It is clear that the above listed activities represent the premises for the industrial park creation in the region, especially due to offered assistance in development of public-private partnership within the park. Expected benefits for the district Positive impact due to local authorities involvement in the development of partnerships and projects in the region will be used and enhanced through the park creation and will result, first of all, in the development of entrepreneurial spirit of the regions population, as well as in the improvement of investment attractiveness of the region and growth of opportunities of foreign investment attraction in the region. 2.2. ANALYSIS OF THE INVESTMENT CLIMATE
Entrepreneurial activity is quite intensive in Straseni district. There are 258 registered enterprises or 4.25 enterprises per 1000 residents, which is above the average for the region. The advantages of the district have allowed for business development so that tax base is above the average for the region.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Own per capita incomes of the district make up 385 MDL, a little higher than the regional average. Correspondingly, the dependence on the transfers from the state budget are lower than the regional average, although still high 74.7%. Investments in 2008 were approximately equally distributed among the following sectors: agriculture, processing industry, construction, electric energy, water and gas, transports and communications (Figure 4. Straseni: private investments per capita, ). Still according to current investment performance Straseni district takes a very favourable place ranking in the first half of district rating, on the 10th position, in 2008 private investments per capita being much more larger as compared to the average in the region (Figure 4). What makes Straseni district to take a lower position in the total rating is the Dynamics of the Investment Performance where the district takes the 34th place out of 38 positions. Thus, despite the high level of investments in 2008, historically they did not grow at a rate sufficiently high to compete with other districts of the country. Figure 4. Straseni: private investments per capita, MDL
Nation al Central Region
Figure 5. Straseni district: structure of investments by the type of economic activity, 2008, %
Healthcare & social assistance Education Other activities Agriculture
Extracting industry Processing industry
Public administ. Real estate transactions Transp. Communic. Trade construction Electrical power, gas and water
Source: calculations of authors based on NSB data
There are 31 enterprises with foreign capital in the district, a very high index for the republic, these being medium enterprises with medium capital about 1 843 thousand MDL per company. Thus, in 2008 the balance of foreign investments made up 57 mln. MDL or 625 MDL per capita, which equals to 33% of the region average. In 2009 the volume of investments in fixed capital made up 91 mln. MDL at current prices, or by 65% lower as compared to the previous year. The analysis of the structure of investments in fixed capital by the form of property shows that intensification of investment activity was basically determined by public property enterprises which made up about 58.5% of the total volume of investments in fixed
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI capital. The share of private sector enterprises in the total volume of investments in fixed capital made up 24.1%. In 2009 main sources of funding of the investment activity were: own resources of economic entities and population 31.7%; state budget 28.1%; foreign investments 23.1%. Potential of the resources for the industrial park creation Geographical closeness to Chisinau municipality provides an effect of local investment elimination. A number of evident competitive advantages of the capital as compared to Straseni district makes most companies give up investing in this district in favour of Chisinau. Nevertheless, Straseni district still has a high investment rating at the country level, which is obviously a great advantage to create the proposed park. At the same time, regional closeness to the capital may also be considered as an investment advantage, especially for the companies dealing with production, processing of raw materials, storage as well as organized collection of agricultural raw materials. Also, in the context of the industrial park creation, thanks to closeness to the capital, many companies may set their subdivisions or completely delocalize their activity to Straseni. At present, for example, about 40% of all the companies efficiently operating in the district either having headquarters in Chisinau, or founders are from the capital. Expected benefits for the district In our opinion, the park creation will allow for increase in foreign investments by means of extension of industrial activities in the district, which will obviously improve the investment visibility of the region and will allow for transparency promotion at both district and national level for the investment projects which will be implemented. We also consider development of the framework of partnership between investors and local administration of the district to be an advantage. Moreover, it is essential that the companies which already operate on the territory of CAAN JSC have well developed activities, while the enterprise transformation into the industrial park will produce an additional inflow of capital and will offer additional investment opportunities. Along with the industrial park creation, necessary utilities will be created (which presently either are unavailable or their cost exceeds 15% of the sale price). Installation of utilities will cut costs for resident enterprises, resulting in corresponding decrease in costs and increase in opportunities to make investments allowing for new jobs creation.
2.3.
Administrative-territorial organization
Joint-Stock Company CAAN (Company for unused assets renting) is situated in Straseni, Straseni district (Figure 6. Location of Straseni district and CAAN JSC within the CDR). In its turn, Straseni district is a part of Central Development Region. Figure 6. Location of Straseni district and CAAN JSC within the CDR
The immediate location of the analyzed district next to Chisinau municipality (at the distance of 23 km from Chisinau to North-West) should be emphasized (Figure 6. Location of Straseni district and
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI CAAN JSC within the CDR). Besides this neighbourhood, Straseni district has common border with the districts: Calarasi (North-West direction), Nisporeni (West), Hincesti (South-West), Ialoveni (South), Criuleni (East) and Orhei (North-East). Straseni district has the total area of 729.31 km (approximately 7% of the CDR area which makes up 10.636 km). The district consists of 39 localities among which: 2 towns (Straseni (resident town of the district) and Bucovat), 25 communes and 12 villages (Figure 7. Map of localities of Straseni district). Within the analyzed district Straseni has the area of 60.82 km (8.3% of the district). Figure 7. Map of localities of Straseni district
Source: www.infostraseni.md
Potential of the resources for the industrial park creation In the course of the analysis we consider location of the new industrial park on the territory of CAAN JSC appropriate in the light of the following aspects: from the geographical point of view, Straseni district is situated in the centre of the CDR, the resident town being situated right in the centre of the administrative region of the district, ensuring communication lines with all the administrative territories; location of the industrial park at the distance of 23 km from Chisinau municipality provides a high attractiveness from the point of view of investors since the market of Chisinau is the most developed trade market of the republic.
Expected benefits for the region Evidently, placement of the industrial park on the territory of CAAN JSC is much more than advantageous, since it has direct access and connections with at least 7 districts, including Chisinau municipality main economic centre of the country.
2.4.
Analysis of socio-economic environment
2.4.1. Analysis of demographic situation Population of the district makes up 91.5 thousand people (8.5% of the CDR population which makes up 1 065 thousand people). Villages with population of over 5 000 people are: Cojusna, Lozova,
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Vorniceni and Sireti. Within the analyzed district Straseni has a population of 21 867 people (20% of the district). Straseni district has a population distribution in favor of women (51%) and in favour of rural residents (75.1%), and average population density above the regional average (125.5 residents / km2 as compared to 100.2 in total in the CDR). Natural growth of the population from the district shows insignificant growth in the district of 0.1 per 1 000 residents, while the share of rural population is above the regional average, and namely 75.5% as compared to 60.8% (see Table 8. General demographic data) Table 8. General demographic data
Indices Population, thousand people, January 1, 2009 Rural population, % Urban population, % Average population density as of 01.01.2009, residents/km2 Percentage of female population as of 01.01.2008, % Percentage of urban population as of 1.01.2008, % Natural population growth per 1000 residents as of 01.01.2008 Source: NBS CDR 1 065 60.8 29.1 100.2 51.1 20.1 -0.7 Straseni district 91.5 75.1 24.9 125.5 50.9 24.9 0.1
With reference to Straseni, the total number of residents makes up 21 867 people (data of 2008, Plan of economic development of Straseni) divided into groups, by gender: female 11 145, (51%); male 10 722 (49%), and by age: up to 18 years old 4 274, (19.5%); from 18 to 60 years old 15 625, (71.5%); over 60 1 968 (9%). According to the data of the census of 2004, the population of the town made up 18 320 people. Thus, there is a trend of the town population growth in the recent period, mostly caused by the rise in birth rates but also due to the return of some categories of people who worked abroad (especially from the Russian Federation). Straseni, like most localities of the Republic of Moldova, faces the problem of the population migration abroad in search of a more well paid job. Thus, about 2 884 people temporarily left the locality while 43 people left for a period longer than a year or even permanently. Potential of the resources for the industrial park From the above mentioned data it is seen that for the industrial park activity it is essential to have the labour force both from Straseni, which presently has active population of over 15 thousand people, and from the district with a little more than 95 thousand people. A positive factor for the activity of the industrial park of CAAN JSC is also the fact that the migration process is very slow denoting the possibility that the employees are not subjects to voluntary migration essential factor for investment projects of any economic entity. Expected benefits for the region Transformation of CAAN JSC into industrial park will have a positive effect on the local population and, by means of further planned investments will result in dispersal of the activities concentrated in Chisinau municipality to rural and urban localities of the region, thus depolarizing economic activity.
2.4.2. Labour force analysis The share of economically active population in the total CDR makes up about 65% of the total population of the region. Out of these, about 51% are actively involved in labour. 41% of active population are employed in agriculture, which is mostly an agriculture for living (Figure 8. Structure of working population in the CDR, 2007).
25
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Figure 8. Structure of working population in the CDR, 2007
Agriculture Construction Transport & communic. Industry Commerce Others
In the whole region, Straseni district demonstrated the level above average of active population (66.3%) and one of the lowest rates of unemployment - 0.58%, second position after Orhei district with 0.38% (Figure 9. Active population and unemployment rate in the CDR). This fact is explained by closeness of Chisinau municipality where many residents of the district are employed. Figure 9. Active population and unemployment rate in the CDR
unemployment rate 2007, %
% of active population, 2007
With reference to Straseni district, economically active population is 51 326 people, making up 57.77% of the total population. The number of people employed in the economy makes up 49 992, correspondingly 1 334 are not officially employed in the labour market. Main activity of the towns population is agriculture, in this sphere being involved about 1 500 people or 63.8% of the total number of employable population; followed by trade where 350 people are employed (14.9%) and processing industry 200 people (8.5%). The level of unemployment is medium as compared to other localities of the Republic of Moldova. Thus, there are 300 registered unemployed or 12.8% of employable population. Dividing the population in Straseni (13.865 people with education) by level of education, the following can be stated: higher education 2 247 people (16.2%); secondary professional education 94 people (20.8%); incomplete secondary education (9 grades) 8 735 (63%). In order to assess the labour force potential for the industrial park creation in Straseni on the basis of CAAN JSC, a total research area of 30 km around the locality was determined (see Figure 10. Research area on demographic situation.).
26
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Figure 10. Research area on demographic situation.
Source. www.point.md/map..
Neighbourhood with 11 important localities from Straseni district (Bucovat, Cojusna village, Panasesti village, Capriana village), Ialoveni district (Ialoveni, Malcoci village) and from Chisinau (Chisinau, Ghidighici village, Durleti, Vatra and Truseni village) municipality was determined. Total availability of population taking into account the trend of employment of the population from these districts is presented in Table 9. Total availability of population in area of 30 km around Straseni, 2007. Table 9. Total availability of population in area of 30 km around Straseni, 2007.
Locality Capriana 2 3 4 5 6 7 8 9 10 11 Bucovat Cojusna Panasesti Malcoci Ialoveni Ghidighici Vatra Durlesti Truseni Chisinau Total District Straseni Straseni Straseni Straseni Ialoveni Ialoveni Chisinau municipality Chisinau municipality Chisinau municipality Chisinau municipality Chisinau municipality Distance from Straseni, km 15 13.39 11.8 9.7 13 25 22.5 12.9 22.2 19.2 23 Employable population, people 1 844 1 245 4 511 2 321 1 694 9 806 2 100 2 940 12 308 5 804 555 461 600 034 Current population total, people 2 610 1 771 6 542 3 525 2 518 15 041 4 342 3 900 20 428 8 290 755 200 Under employable age 448 267 1 248 784 510 3 507 651 560 4 320 1 176 104 959 Above employable age 318 259 783 420 314 1 728 1 591 400 3 800 1 310 94 780
Source. NBS and ProConsulting calculations
27
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI The analysis of the data presented in the above table and geographical neighbourhood of 30 km around Straseni locality with the main set points identifies a high potential of the available labour force which can be se used by means of populations involvement within the created industrial park. Potential of the resources for the industrial park From the above mentioned data, it is seen that the population is mostly employed in agriculture, the branch of economy with the lowest salaries but which continues having the essential share in the gross domestic product of the country. At the same time, presence of the agricultural activity in the region will serve as a premise for the development of industries of processing and supporting agricultural sector within the industrial park. Moreover, the data show a level of over 20% of people with higher education, mostly in Straseni. It is a positive factor for the activity of enterprises on the territory of the industrial park, these having sufficient human resources to select candidates for the available positions. Figure 9. Active population and unemployment rate in the CDR shows that the number of officially registered unemployed people in Straseni district is below local average being one of the lowest in the region. However, it should be taken into account that these are mostly young people who are not engaged in the labour market while great majority of the population from villages are not willing to make the corresponding registration. Nevertheless, it is seen that availability of labour resources is a positive factor for the activity of further development of the industrial park, enterprises operating on its territory having at their disposal a quite diverse market of the labour force. Expected benefits for the region Once CAAN JSC transformation into the industrial park directly implies an inflow of capital, and as a result of which growth of investments is also expected, factors which create new jobs, the direct effect will be focused on increase in the number of well paid jobs and, thus, improvement of living standards of the population.
2.4.3. Analysis of the population well-being and labour performance Presence of a large number of economic entities in Straseni district determined a level of monthly salary above the regional average in 2008 1 939 MDL (3% above the regional 23,3% below the national average). This also favors the level of consumption above the average 2 942 MDL per capita in 2008. In the structure of consumption expenses: food (48%) and non-food expenses (33%) prevail, expenditures for services making up 13%. We reduced share of expenses for healthcare (4% of total) and, especially, for education - just 1 MDL month, 10 times less than in the capital. In total in the Central DR during 2005-2008 labour performance of the employees essentially decreased alongside with the evolution of the real 2007-2008 performance had a decreasing trend while the salary continued to grow (
Figure 11. Evolution of performance and labour remuneration in the industrial sector of the CDR, prices comparable to 2005=100%). This might be caused by the fact that the companies from the
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI region try to keep the existing labour force in order not to make them to decide to emigrate in search of other jobs.
Figure 11. Evolution of performance and labour remuneration in the industrial sector of the CDR, prices comparable to 2005=100%
Labour productivity index Real remuneration
Source: National Strategy of the Central Development, 2010
Recent data of January-August, 2010 reflect average monthly salary of an employee of Straseni district economy which made up 2 255 MDL and increased by 7.3% as compared to the same period of 2009. In budget sphere average salary made up 2 238 MDL and increased by 11.7% as compared to 2009, in real sector 2 336 MDL making up 6.6% increase. Within this increase hotels and restaurants were identified more where salaries were increased by 75% (see the table below). Table 10. Salaries in Straseni district, January-August 2010
Type of activity Agriculture Extractive industry Processing industry Electrical energy, thermal energy, gas, water Constructions Trade, repairs Hotels, restaurants Transport, telecommunications Financial activity Real estate Public administration Education Healthcare and social assistance Other activities of collective, social services Entertainment, culture, sport January-August 2010, MDL 1 358 4 220 2 084 0 2 750 2 033 2 031 2 692 2 726 2 399 2 586 2 193 2 678 1 593 1 366 Growth rate as compared to 2009, % 108.9 85.3 97.2 0 100.9 109.4 174.9 95.9 94.6 111.1 99.4 117.1 111.6 100.9 99.5
Source: Operative information of salaries in Straseni district, 2010, NBS
29
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI For Straseni the situation is the following: according to the statistical data, at the end of the I trimester 2008 average revenues depending of the sphere of activity were observed. Thus, average income per capita made up: in primary agriculture 1 129 MDL, in processing industry 2 494 MDL, in business (trade) 2 224 MDL, retired 641 MDL. Potential of resources for the industrial park The main factor which determines registration of higher levels of salaries above the regional average is the district closeness to Chisinau municipality (the distance between Chisinau and Straseni is just 23 km), the fact for which investment inflow a has stronger dynamics and accordingly higher salaries, higher living standards of the population, which may be reflected as an important economic advantage in the industrial park creation in the region.
Expected benefits for the region Main aspects which can be represented as benefits of the industrial park creation are directly reflected in creation of new jobs or better paid jobs. Along with the transformation into the industrial park and provision of facilities, the corresponding costs will decrease significantly, while with further investments the partner companies under the similar conditions of activity would be able to create new jobs or increase incomes of the employees the beneficial fact for personal incomes and improvement of the level of the populations living standards.
2.4.4. ANALYSIS OF PHYSICAL INFRASTRUCTURE 2.4.5. Analysis of natural resources From the total areas of the district (72 931 ha), agricultural lands make up (31 189 ha) 43%, out of which 3 376 ha are in public ownership and 27 813 ha in private ownership (2008). Besides, the district area includes: area of towns, villages 5 894 ha (out of which in public ownership 1 931 ha, in private ownership - 3 963 ha); industrial, transport, telecommunications or other special destination areas 1 209 ha (public ownership - 1 008 ha, private ownership - 201 ha); environmental, healthcare, entertainment areas, areas of historical-cultural value, suburban and green zones - 68 ha (public ownership); forest areas 26 243 ha (public ownership); water areas - 380ha (public ownership) and reserve fund lands 7 948 ha (public ownership). Thus, the total area of the district consists of: lands in public ownership (56%) and lands in private ownership (44%). As it is seen, lands in public ownership, characterized by existence of forest resources of over 26 thousand ha prevail which would determine a share of over 35% of the whole area. Reflected data demonstrate that Straseni district has a significant agricultural potential which makes it possible to obtain products able to fully meet the populations needs for food consumption and create important available funds for export. Figure 12. Structure of Straseni district lands, ha
30
agricultural lands
towns, village s
industry, transport
nature, forestry healthc water are
stock
Source: Information on socio-economic situation in Straseni district (MET)
With reference to Straseni, area of which is 6 082 ha, 1 586 ha of which are agricultural lands. The locality is one of the smallest in the republic where the share of forest resources is impressive and makes up about 40% or 2 340 ha. Recreation zones consist of: bank of Ghidighici, 6 parks of culture and entertainment. Nearby there is national park "CODRII". The administrator of the national park is SE "Moldsilva" with administrative headquarters in Straseni. The largest share in agricultural lands in Straseni belongs to cultivation areas of vineyard and orchard plantations, specific to the given zone, the next position being occupied by cereal and industrial crops followed by vegetable farming. The detailed structure of cultivated agricultural crops can be seen in the figure below. Figure 13. Structure of agricultural crops
maize
floarea sunflower soarelui 7.8% porumb 6.1% legume vegetables 3.6%
vineyards
vii 28.9%
barley orz 14.0% orchards wheat grau

27.9% livezi 11.7%
Source: Plan of economic development of Straseni (2008)
CDR is characterized by the deposits of minerals useful for construction materials production carbonaceous rocks: limestone, marl, argillaceous raw material, sands, sand and gravel formations, diatomite and tripoli. The Centre zone is rich in carbonaceous rocks limestone which is widely used in construction for limestone calcination for rough stone and gravel as well as an additive to cattle and poultry food. In addition to carbonaceous minerals, deposits of clay, sandy clay, used as raw materials for bricks are developed in the region. Within Straseni district there is the only limestone extraction quarry of national importance, situated in Gornoe village. Presence of the available natural resources reflects nothing but new possibilities of business development, while green areas which predominate in Straseni district perfectly combine profitable activity with recreation opportunities of citizens thus, there are great opportunities for the development of regional tourism. Potential of resources for the industrial park For the industrial park activity under the conditions when regional economic activity is mainly based on agriculture, a positive factor is relative dispersion of lands by their destination 43% agricultural lands, about 35% are forest resource lands, 8% are towns and villages lands. This distribution allows
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI carrying out diverse activities on the park territory, from agricultural processing and to timber processing or rendering of services for different activities. At the same time, since Straseni has reduced areas of agricultural lands which makes a large part of the population to be concentrated on the industrial sphere of economy, representing a quite favourable intellectual potential for further operation of the industrial park. Expected benefits for the region In our opinion, creation of the industrial park will allow for efficient use of the existing agricultural lands in the region by using products and services of the industries supporting agricultural activities.
2.4.6. Analysis of transport infrastructure Administrative territorial location of the new industrial park in the centre of the development region also determines its perfect connection not just with the local administrative unities, but also with the main regional and international routes. The position of Straseni district in this part should be analyzed, in the first place, through the CDR, which is situated in the central part of the Republic of Moldova providing links between other regions. In the West the CDR is directly connected with Romania through 3 customs stations, including railroad station - railroad junction in Ungheni. In the East the regions connection with Ukraine and Russia goes through Transnistrian Region. In the North and South the regions connection goes through the NDR and SDR. The distances from the main cities are: Iasi, Romania 20-150 km, Cernauti, Ukraine 150220 km, Odessa, Ukraine 100170 km. Transport network of the CDR is represented by two types of transportation: motor and railroad. Traffic of goods and passengers is provided by motor transportation on local, republican and international levels. Railroad transportation is mostly used for traffic of goods and passengers on international level. Connections to international traffic refer to a dense network of international routes: European Economic Corridor IX (EC IX); Economic Budapest Odessa Corridor (BOC); Giurgiulesti - Briceni Corridor (GBC) (Figure 14. Network of routes in the CDR). From the CDR it is possible to move to the North through the international route: 2 Chisinau Soroca Ukrainian border and route 14 Brest Briceni Chisinau Tiraspol - Odessa; to the South: M3 Chisinau Giurgiulesti; to the East M21 Chisinau Dubasari; to the West M1 - Chisinau Leuseni. These routes will be supplemented with another international route in case of implementation of transport corridor Budapest - Iasi Chisinau Odessa. Other important international and national transport routes which go through the CDR are: Northern direction, to Cernauti Zhytomyr - Lvov Warsaw: 2 Chisinau - Soroca Ukrainian border; to Vinnitsa Kiev Moscow: 14 Brest Briceni Chisinau Tiraspol Odessa; Southern direction, to Galati Tulcea - Constanta - Varna Istanbul: M3 Chisinau Giurgiulesti and R3 Chisinau Hincesti - Basarabeasca South-East direction, to Odessa Nicolaev Kherson Yalta: R2- Chisinau - Bender and R30Anenii Noi Causeni - Stefan-Voda - Ukrainian border. Eastern direction, to Krasnie Okni Krivoi Rog Donetsk Voronezh: M21 Chisinau Dubasari and R5 Chisinau - Vadullui-Voda - Dubasari. Western direction to Iasi Tirgu Neamt Cluj Oradea Budapest: M1 - Chisinau Leuseni and R1 Chisinau - Ungheni.
Density of road networks Routes of communications Budapest Odessa Corridor BOC European Economic Corridor IX National highway as international BOC Regulations
Figure 14. Network of routes in the CDR
TheNational route developed study was IX international Regional route BOC international Different-grade intersections IX Customs
by ProConsulting LLC, tel./fax: 21-00-89
32
Connections with the inter-regional traffic. Connection with the NDR is made through Balti municipality (2, 14, R13, R14, R17 ) and the most popular roads are M14 and R14 - dual highways which do not meet the requirements of constantly growing flow of transport. Connection with the SDR is performed through roads M14, M3, R-3, R-30, R-34, out of which R3 is the most agglomerated and needs to be enlarged by at least one traffic lane. Connection with Transnistrian Development Region is possible through international route M1. Intra-regional road network. Maximum distance between the CDR localities in South-North direction is about 180 km, while in East-West direction - about 120 km and connection can be ensured by transit through Chisinau municipality. The distance between the main urban centres (Ialoveni, Straseni, Ungheni, Orhei, Hincesti) does not exceed 150 km. Network of local roads. Beside these roads there is a large branched network of roads of local importance. The length of motor roads in the CDR is presented in Table 11. Network of local roads, The share of national roads is 36.5%, overwhelming majority having hard coating. The largest number of roads is in Straseni and Ialoveni districts. Table 11. Network of local roads
Indices Density of public roads, km/100 km2, 2009 Density of public roads with hard coating, km/100 km2, 2009 Share of public roads with hard coating, %, 2009 Source: National Strategy of the Central Development, 2010 CDR 32.4 30.9 95.3
Straseni district
36.7 36.4 99.3
Potential of resources for the industrial park. It should be mentioned that all these aspects related to transport connections and infrastructure in the Centre region are the most developed, thus providing high prospects and a better attractiveness for the investors willing to invest in the industrial park. Location next to the railroad junction Chisinau - Ungheni and in direct closeness to the railroad station of Straseni only increases the investment attractiveness for companies. Thus, well developed regional infrastructure and transportation ways are the factors of success for the industrial park on the territory of CAAN JSC.
33
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Expected benefits for the region. In this sense, an intensive development of the industrial park will recreate the premises for development of the whole regional infrastructure and, thus, will directly influence the level of the populations living standards.
2.4.7. Analysis of public utility infrastructure Water and sewage network. The CDR has significant reserves of potable and mineral water with evident curative properties. The density of potable water distribution networks in the region is in average 13.2 km/100km2 (2008). The share in Straseni district is above regional average making up 14.1 km/100km2 (Figure 15. Water supply networks density by districts, km/100 km2). Figure 15. Water supply networks density by districts, km/100 km2
Underground waters from phreatic and deep water-bearing layers have a special importance for the CDR development. Unlike deep underwaters, phreatic waters undergo intensive anthropogenic pollution. Out of the total amount of deep underground waters extracted or studied, about 50% cannot be recommended for human consumption without preliminary treatment. These waters are characterized by increased content of mineralization, fluorine, hydrogen sulphide, iron, sodium, ammonia and other elements. Straseni district is crossed by the rivers: Byk 18 km, affluents - 37 km, Ichel 12 km, affluents 24 km, Isnovat 20 km, affluents 6 km. On the districts territory there are 78 water reservoirs, 122 artesian wells, out of which 47 rigs, 5.641 shaft wells are operated. However, in internal rivers the level of pollution remains high. Main sources of pollution are determined by communal sector by means of water treatment plants which dispose insufficiently purified wastewaters. Out of 13 wastewater treatment plants which operated in the district, only 5 of them are operating at present: Romanesti JSC, mayors office Bucovat -2 plants, Monastic Complex Capriana and Euro-Textile Straseni LTD. It should be mentioned here that, in general, sewage network in the NDR is poorly developed and technologies of wastewaters treatment are very outdated. Share of housing stock of the CDR having sewage network makes up 15.6% as compared to the national average of 22.6%. In regard of Straseni, water resources of the town make up 180 ha, formed by the area of the Byk river 7.11 ha, 5 ponds with the area of 18 ha and protected swamps and 920 wells with the total water volume of about 2 116 m. The town is provided with potable water by water supply system, with 7100 families using these services. The towns residents have access to sewage services. At the same time, for Straseni, it should be mentioned that in 2010 there were submitted applications for financing from the central public authorities for works on infrastructure modernization like the application for reconstruction of the pumping station and restoration of sewage networks, evaluated at 3 mln. MDL.
Waste management. In the CDR, infrastructure and management of solid wastes is poorly developed, both as regards quantity and quality. There is a high level of pollution of soils, waters and other environmental elements mostly caused by poorly developed infrastructure of collection of solid and liquid wastes, including toxic wastes. The region is characterized by unseparated collection of wastes and a very reduced share of recycled wastes. The CDR daily produces about 1000 tonnes of solid wastes which are presently collected and stored in about 350 small dumps at outskirts of the regions localities. Most of the dumps occupy large areas but are inadequately arranged. Natural gas supply for the CDR localities is provided from main gas pipelines at high pressure. In the North of the CDR there is natural main gas pipeline Iamburg - Elet - Cernauti and the branch line from it to Chisinau municipality, through the junction Soldanesti - Rezina, then through pipeline Ribnita Chisinau, along the CDR territory. The share of housing stock of the CDR connected to the natural gas network makes up 33.5%, which is lower than similar indices for SDR and Gagauzia as well as as compared to the national average of 34.9% (Figure 16. The share of gasified localities by districts, %). Besides natural gas, there are consumers of liquefied gas in the CDR (industrial sector, rural localities). Supply of consumers with liquefied gas is performed by Gaznosbat enterprise situated in Straseni. The map of the existing and forecasted natural gas networks is presented in Figure 17. Gasification network, CDR. Figure 16. The share of gasified localities by districts, %
As regards Straseni, the locality is connected to gas, the services of which being used by 5.304 families, making up about 50% of the total population of the town. At the same time, there are still 5 701 families which are not connected, this is mostly because of the lack of financial means.
35
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Figure 17. Gasification network, CDR
Natural gas networks Existing main gas pipelines Forecasted main gas pipelines Gas metering plants (existing) Gas reservoirs (existing) Gas-compressor stations (existing) Gas distribution stations (existing) (existing)
Electric energy supply for the localities of the CDR is performed by distribution networks belonging to the company Electric Networks Centru, the enterprise with foreign capital of Union Fenosa company and of the state enterprise Retelele Electrice de Distributie Nord. On the territory of the CDR there are two large stations with the capacity of 333 kW in Ialoveni and Straseni. Other more than 200 stations have the capacity of 35-110 kW. The CDR territory is crossed from the North to the South (Tiraspol Ialoveni - Straseni - Balti) by two high capacity overhead electric lines of 330 kW. All the localities of the region are connected to electric networks. At the local level there are problems with electricity supply in newly constructed sectors where technical projects of networks are required. The cost of the technical project is to be paid by the local public administration and potential consumers. Thus, connection to electric networks is delayed due to the lack of financial means. Thermal energy supply is a problem for most residents of apartment houses in the CDR. Housing blocks were provided with thermal energy from central heating networks which at present do not function. Thus, residents of housing blocks which are supplied with gas, installed autonomous boilers, others set ovens in blocks, while others use other electrical appliances for heat production during winter. The situation is similar in public institutions where either autonomous boilers or ovens are installed. Private sector (houses on ground) uses ovens both in urban and rural areas. Potential of resources for the industrial park A less favourable aspect for the activity of the industrial park is the lack or inadequate provision with water and sewage. In this sense, additional resources are necessary for installation of utilities for water supply and sewage systems. In case of large monetary investments in the interior of the industrial park, the creation of well done local sewage system would ensure a good functionality of the component entities of the industrial park. At the same time, since Straseni is situated not far from Chisinau municipality it will ensure certain competitive advantages in regard of other towns or districts. The main advantage is direct access to high pressure gas pipelines which can be used for current consumption not only by the population, but also economic entities. From the point of view of effect upon the industrial park, it represents nothing
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI but an advantage and opportunity to attract investors. In case of lack of connection to gas network, economic entities from the territory of the park can do it by themselves with minimum costs and having extended opportunities from the point of view of consumption. Functioning of electric stations of 330 Kw on the territory of Straseni as well as passing of 2 high voltage overhead lines are quite important decisive factors. Moreover, in case of development of some new activities based on alternative energy, the industrial park would have direct access to the electricity provider, while direct sale of energy would only be a question of time for the future activity of the park. Lack of thermal energy supply determines establishment of too high prices for heating of spaces on the CAAN JSC territory. On one hand, this would seem to be a negative factor, however, if analyzing the possible activities which can be carried out on the territory of the park, the lack of thermal energy would turn out to be a favourable factor companies which will be able to produce electricity as a result of the activity on production of other goods, will have a free and unrestricted sales market. Expected benefits for the region The benefits resulting from the industrial park implementation consist in creation or improvement of towns and regions infrastructure per total with positive effects upon the environment. Created or reconstructed water treatment plants will also service a part of neighbouring localities of the industrial park, which will reduce environmental pollution. Moreover, the industrial park creation will determine state authorities to construct the facilities related to transport and communications infrastructure with beneficial effect upon the region.
2.4.8. Analysis of vocational and higher education institutions The educational institutions network of Straseni district consists of: 32 preschool institutions, 39 school institutions, 3 extraschool institutions. The localities without school institutions are: Huzun village, affiliated to theoretical lyceum Ion Creanga, Micleuseni; Rasvet village, affiliated to gymnasium Bucovat. The district has 37 buildings destinated for preschool institutions. Currently only 33 kindergartens work. Localities Stejareni, Gornoe, Micleuseni, Huzun have no preschool institutions. In villages Rasvet, Dolna, Saca, Capriana, Tiganesti preschool institutions have not worked for 10-16 years, the buildings being in a deplorable state. Out of 32 preschool institutions, 12 work on natural gas, 16 with ovens, 4 with solid and liquid fuel. Out of 39 pre-university institutions, 18 work on natural gas, one with oven and 20 with solid and liquid fuel. Significant problems related to running water supply were revealed in most institutions. Most educational institutions need maintenance of lighting systems. The majority of educational institutions need updating school furniture and didactic materials. District educational institutions institutionalized: Total 12 596 students in 596 classes Primary education 4 999 students in 216 classes Gymnasium education 6 558 students in 313 classes Lyceum education 1 495 students in 72 classes Secondary education 144 students in 8 classes
Educational institutions of the district are provided with didactic staff of 950 teachers in preuniversity education and 325 teachers in preschool education. Didactic staff provision in 2008-2009 academic years made up 95.15% . From job offers provided by the educational institutions of the district for 2009-2010 the necessary number makes up 37 teachers. Out of the total number of didactic staff: - 196 specialists carry out didactic charge of more than 27 due to the lack of specialists, - 198 are pensioners. For a qualitative professional training 33 teachers undertake extramural studies. Out of the total number (1275) of
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI didactic staff, 850 (66 %) have didactic grades: Superior didactic grade 11, I didactic grade - 80, II didactic grade - 760. In Straseni cultural educational services are reflected in 4 gymnasiums covering 893 students; 1 lyceum with 1.860 students; 4 kindergartens with 934 children; 2 libraries and one cultural centre. Besides, Straseni has a public organization which supports the community development: public association of teachers and parents functioning within gymnasiums of the locality. Potential of resources for the industrial park As it has been already mentioned, Straseni almost does not have specialized higher educational institutions. This lack is explained by the fact that most young people that are willing to receive higher education, because of the small distance between the town and Chisinau municipality, go directly to the city, even though making everyday trips. Therefore, the level of education of the population is not considered to be below the regional average, quite the contrary, most lyceum leavers continue their education the fact allowing the industrial park to have staff specialized in the field, trained and often with work experience, but who might, at the same time, request a higher remuneration for their work. Expected benefits for the region Expected benefits refer to the improvement of qualification of the people engaged in the industrial activities of the park as well as increase in professional level of the regions population. This fact may then create conditions for involvement of new specialists didactic staff in the region as well as integration of students for the period of practical training within the park. Moreover, persistence of created jobs will indirectly entail a greater interest of the population in obtaining and completing higher education as well as experience exchange among didactic staff and those practically trained.
3. LEGAL FRAMEWORK 3.1. Analysis of the legal framework of the RM
General remarks The legal system of the Republic of Moldova has experienced a relatively good development within the last decade. Moldova has come closer to the standards of European countries and international organisations it adhered to (such as the World Trade Organization), however there is still a long way ahead to fully comply with the legislation. Extension and effectiveness of Moldovan trade legislation has improved but practical implementation of the Law still remains a great problem. Further on we point out the most important positive aspects of Moldovan legislation meant to encourage both local and foreign investors. Private property protection Article 1 of the Constitution of the Republic of Moldova stipulates supremacy of the principle of the rule of law. The state guarantees the right of private property (art.46 of the Constitution) and protects property of citizens of the Republic of Moldova, foreign citizens and stateless people (art.126-127 of the Constitution of the Republic of Moldova). The Constitution ensures that property both material and
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI intellectual, acquired legally cannot be confiscated, legal nature of property being presumed. In 2002 a number of articles contravening the principle of property security and alleged nature of private property, were excluded from Chapter V Tax Administration of the Fiscal Code of the Republic of Moldova. The article 23 (3) of the Law on privatization (No. 627-XII of 04.07.1991) stipulates that the state guarantees property rights to privatized property, right to participate in privatization provided equally to citizens of the Republic of Moldova, foreign citizens and stateless persons. Protection and promotion of investments According to article 126 of the Constitution the state ensures inviolability of investments of individuals and legal entities, including foreign persons. Article 5 of the Law on investments in entrepreneurial activity states that investors shall invest on the entire territory of the Republic of Moldova and in any field of entrepreneurial activity in compliance with antitrust legislation, environmental legislation, national security etc. The state ensures the regime of security and full and constant protection for all the investments regardless of their form. Investments and provided facilitations cannot be subject to any discrimination by nationality, residence, place of registration, etc., all the investors being provided with equal rights. The government of the Republic of Moldova offers favourable conditions in the process of privatization of productive objects including the possibility of payment by instalments of the price for the privatized objects, this possibility being important for attraction of investors. If an investor wants to start a totally new business and for this purpose wants to purchase a parcel of land being in public property (except those of agricultural or forest destination), the investor has to pay in the first year at least 50% of the parcel price, the rest of the payment can be staggered for the period of 3 years (according to the Law on normative price and procedure of land purchase and sale No.1308-XIII of 25.07.1997). In order to improve the business climate as well as to promote local and foreign investments, the government of the Republic of Moldova adopted the Decision On control regulation according to which all the state institutions executing functions of control and conformity assessment should go through a guillotine and only those will survive which really exercise functions of control important for consumers security, for public interest, for national security, etc. We believe this is a very appropriate measure, the efficiency of which will fully depend on the readiness of control and assessment bodies to give up their powers. Foreign investors With some notable exceptions foreign investors enjoy equal rights with the nationals. Moldova has signed bilateral agreements on investments with more than 25 countries, including the countries which are its principal trade partners or those which allocated important investments in the Republic of Moldova. Our country has also signed 13 international agreements on avoiding double taxation. Foreign investors have the possibility to invest in and control local companies, are protected by international agreements for investment protection and insurance. The government will approve the national program for investments promotion. The activity of foreign investors in the Republic of Moldova falls in jurisdiction of the Law on investments in entrepreneurial activity which establishes equal rights for national and foreign investors. Expression of free economic initiative Market, economic initiative and fair competition are indentified as fundamental principles of the economy (art. 9 of the Constitution of the Republic of Moldova). The government of the Republic of Moldova, central and local public administrations can only give orders to enterprises within the limits of their competences stipulated by legislation (art. 8 of the Law on enterprises and entrepreneurship). Losses, including missed profit, suffered by enterprises as a result of execution of illegal orders shall be recovered from the budget which finances the corresponding authorities. Economic initiative cannot be restricted under the pretext of inopportune nature or its uselessness. Private contracts are discussed freely, then are registered with the notary for their legal authentification. Contracts of land lease are registered with the bodies of the local public administration. Activity of industrial parks
39
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI The process of creation of industrial parks and conditions of activity of their residents are regulated by the Law on industrial parks (No.182 of 15.07.2010, in force since 03.09.2010). The main objectives of the Law (art.2) are: I. attraction of local and foreign investments; II. formation of competitive sectors in industry on the basis of modern and innovative technologies; III. carrying out of economic activities in compliance with the opportunities of development specific to the corresponding zone, including a more efficient use of public property; IV. development of small and medium enterprises; V. creation of jobs. This law is complete and its provisions are applied along with a number of other laws and legal acts, out of which we would mention: I. Civil Code of the Republic of Moldova; II. Tax Code of the Republic of Moldova III. Law on joint-stock companies, No. 1134 of 02.04.1997; IV. Law on limited liability companies, No.135 of 14.06.2007; V. Law on state registration of legal entities and individual entrepreneurs, No. 220 of 19.10.2007; VI. Law on investments in entrepreneurial activity, No. 81 of 18.03.2004; VII. Law on regulating entrepreneurial activity through licensing, No. 451 of 30.07.2001
3.2.
Analysis of legal conformity of the managing enterprise
From the documents provided by CAAN JSC administration and their analysis, it was established that it is a: Commercial joint stock company; Constituent document: Articles of Association No. 151052150 of 27.12.1995 (in new edition); Administrative body:
a) General Meeting, b) Company Board, c) General Director, d) Audit Commission. shareholders: e) GPI CapitalLTD 73.5% f) Vasile Rosioru 20.0% g) Draud ComLTD 0.14% h) Europa TrustLTD 0.02% i) Exiton SpradJSC 0.3% j) Others 6% General Meeting of shareholders has exclusive powers described in p.7.2. of Articles of Association and where decisions are taken with 2/3 of votes of those present at the meeting, but except the decisions regarding the election of the Company Board cumulative voting, while other decisions are taken with at least of half of votes represented at the meeting.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Company Board exercises powers described in p.8.1. of the Articles of Association, while decisions are taken with the vote of majority of members presented at the meeting, except for cases when the Law provides for taking decision by unanimous voting. Representations and branches unavailable. Companies in which participated as founder 2: Sudor JSC, CB Moldindconbank JSC. Loans and credits unavailable Adjacent land: area 14.8704 ha; category for construction; property of the administrative territorial unit, transmitted in use on the basis of Title No. 030004 of 27.07.1998 Interdictions unavailable Premises: Total area 74 947 m2; production 51 800 m2 Access ways: railroad: 0.672 km; motor road 2.1 km Trademarks, patents, registered licenses - 0 Registrar: Register -F, 9/4 Teilor St., Chisinau Shares register reflects modifications in property ownership for shares Number of ordinary shares 30 510 83 with nominal value 8 MDL The assets less than the amount of the social capital. On 01.02.2010 modifications in the social capital were introduced 24 408 664 MDL Obligatory and required registers (register: inventory, journal, ledger, purchases, sales, control) are present and completed. Order of organization and functioning activity is organized appropriately however management is inefficient DISPUTES Mayors Office of Straseni regarding payment and parameters of the land adjacent to the companys read estate (Economic Court) STAFF 33 employees: higher education 6; secondary school 20; vocational school - 7 Absence of rules and strategies for human resources Trade unions absence Total lease contracts 33 Tenants fields of activity trade, production, auto-service, joinery, bar, etc. Energy complex management through intermediary Elcoj Plus LLC. Contract concluded with this company should be terminated, and provision of access to electricity for future residents is to be ensured by the manager of future industrial park. Environmental protection requirements it is stated that environmental protection requirements are met at acceptable level (act on environmental protection examination No. 014858 of 02.04.2010) Conclusions: In the light of correspondence to all the requirements of the Law on industrial parks1, the enterprise:
Law #182 of 15.07.2010 on industrial parks The study was developed by ProConsulting LLC, tel./fax: 21-00-89 41
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI is created in the form of a joint stock company; uses a parcel of land adjacent to constructions: has area of 14.8704 ha (legal limits for industrial parks creation being of 5 ha);
- category of land for constructions, belonging according to property rights to administrative territorial unit of Straseni and was transmitted for use to the enterprise at the moment of its foundation for unlimited period of time; free of loads; - is not a subject of any litigations during examination and/or settlement process within judicial instance or arbitration (with the exception of litigation regarding payment and parameters of the parcel adjacent to the companys real estate); has access to national transportation motor and rail roads; connection of technical and production infrastructure of the park to public utilities is available.
Thus, from the formal point of view, the area on which CAAN JSC is situated, meets the main requirements of the Law 182/2010 for granting the title of industrial park, while primary legal aspects of the company create premises for a enterprise managing the park to be established on its basis.
4. ECONOMIC ENTITY PRESENTATION 4.1. Profile of the enterprise
4.1.1. General presentation CAAN JSC is situated in the industrial zone of Straseni at a distance of about 23 km from Chisinau. Photo 1. General view over the enterprise territory
Short name of the enterprise is CAAN JSC.

Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Legal address: 1 V. Crasescu St., Straseni, Republic of Moldova Executive headquarters is at the same address. 4.1.2. Brief historical review CAAN JSC, previously MFC. Masfrigcomplect was founded according to the law on privatization (No. 627-XII of 04.07.1991), Law on entrepreneurship and enterprises (No. 845-XII of 03.01.1992) and other normative acts of the Republic of Moldova according to declaration of incorporation of September 28, 1995. The company was registered on December 27, 1995 in the State Register of enterprises and organizations under No.151052150. The company received the unique identification code (IDNO) 1005600014663. In 1996 the company was restructured by means of adoption of Restructuring plan by the State Council of Creditors. Implementation of the Plan of Restructuring conditioned the transition of the production nomenclature to LTD type companies founded by the companys shareholders (former employees of the plant). From the moment of the implementation of the restructuring plan and up to now one of the main activities of the company is rent of production, auxiliary premises, machines, facilities and equipment. At present CAAN is a joint stock company which, in fact, due to the launch of the restructuring project in the 90-s of the past century operates according to the principle of industrial park. However, since there were no Law on industrial parks in the analyzed period, the company was founded on the basis of the Law on Lease as a company for renting of unused assets. 4.1.3. Fields of activity The company was created to enlarge the economic value of the existing assets and acquisition of incomes. According to the companys Articles of association it carries out the following activities: Rent of production, auxiliary premises, available machines, facilities and equipment; Sale of unused assets; Rendering of business consulting services.
Previously the company was producing freezing equipment for industrial refrigerators of various capacities intended to store fruit and vegetables and was provided with the equipment necessary for this activity. 4.1.4. Dimensions of the enterprise The company is situated on the territory of about 14.8704 ha. Historically it was one of 4 enterprises of the Soviet Union importance intended to produce freezing equipment for the whole Soviet Union. After collapse in the 90-s, the enterprise as the majority of large enterprises totally lost sales market and stopped production activities. Conclusions: The general situation of the enterprise reflects: Opportunity to extend the activities on the territory, taking into account vast area of about 13,7 ha. Large experience of the enterprise analyzed at the level on national orders and in the light of its specialization in freezing equipment production. Experience of the enterprise in activities of leasing its areas and equipment.
43
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI 4.2. Enterprises potential
4.2.1. Diagnosis and infrastructure of location General data on the enterprise infrastructure are presented in Table 12. Table 12. Enterprises infrastructure
1 2 3 4 5 6 7 The year of commissioning of the first constructions Area of the enterprises territory within fenced perimeter Area of the territory under constructions Area of green zones Area of access ways (asphalt roads, railroads, paved land) Railroad length Motor-roads length 1979 13.7 ha 7.5 ha 4.1 ha 3.3 ha 0.672 km 2 km
CAAN JSC is situated in the industrial zone of Straseni just in 23 km to the North-West from Chisinau. This zone is in the North-East part from Straseni along the river Byk. The territory of the enterprise is 14.8704 ha and is enclosed by a reinforced concrete fence. In the West and North-East the territory borders with other industrial enterprises, in the South and SouthWest there is a railroad Chisinau - Ungheni, in the East and South-East there is a territory supposed for the development of the industrial zone. The highway Chisinau - Ungheni is in the West, in parallel with the railroad. There is an asphalt road of about 2.5 km in length from the highway to the enterprise, however the asphalt surface is badly damaged and requires capital repair, and namely a new layer of road coating. From this length, 0.8 km (5 760 m2) also requires a total replacement because of complete degradation of the asphalt concrete layer of the road coating and massive pits appearing on the road.
Photo 2. State of the road from Chisinau - Ungheni highway to the enterprise
44
The company is connected with the railroad having its own railroad of about 0.672 km which is in a satisfactory condition. Wooden traverses were replaced for reinforced concrete ones. Loading ramp requires repair but, in general, it can be used. Cranes are in working condition. Photo 3. Ramp and cranes
Construction of interior roads allows for the use of all types of automobiles (TIRs, high-tonnage trucks, etc.), however as other infrastructure objects they require works of reconstruction of road coating of 2 000 m long or having area of 10 000 m2.
45
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Photo 4. Condition of internal roads
Electrical grid is in good condition, transformers have been recently repaired, and cable parameters allow using high capacity production facilities. Water and sewage networks are in a deplorable condition. Potable water supply is possible from aqueduct Micauti, and technical water supply from the existing aqueduct. Pumping station of sewage network is damaged and requires total renovation of equipment and network. Atmospheric precipitation disposal network is in better condition, however it also requires capital repair. In the past the enterprise had its own boiler station providing thermal energy to both the enterprise subdivisions and the town. Currently the boiler station is not longer controlled by the enterprise, it was transmitted to the mayors office and does not work now (is under insolvency procedure), so there is no centralized heating at the enterprise and in the town at all. At present the enterprise is connected to natural gas, pipelines being laid to centralized distribution blocks. Some companies operating on the territory of CAAN JSC have installed their own autonomous heating networks equipped with natural gas. Gas networks from the centralized distribution block to the building are installed by the companies which hold on lease the premises (Feralumin LLC, Mob-Elita LLC, Prodtehmet LLC, Masfrigcom LLC, Malidor Lux LLC, Brutaria Vianda LLC, etc.) Conclusions: regarding infrastructure: Taking into account the above stated situation, the conclusion about repair and upgrade of the following infrastructure objects has been made: Internal roads (requiring capital repair and which can be made after closing the pits and provision of a new layer of road coating); Water supply and sewage networks (which require to be changed, so, in the existing channels old objects will be removed and new ones will be installed); and the heating system, which requires to be reconstructed .
46
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI regarding location: the enterprises location in the industrial zone of the town allows attracting potential residents within the park and/or cooperating with the enterprises of the industrial zone; at the same time, the enterprises location next to the railway is advantageous, it will increase the park attractiveness in the light of ensuring potential residents with the access to railway and facilitating process of transportation of their goods.
4.2.2. Technical diagnosis 4.2.2.1. Real estate description
According to the attached scheme, the enterprise has the following constructions on its balance: Table 13. The list of real estate on the balance as of 30.06.2010
Year of commissioning 1979 1979 1979 1986 1986 1980 1979 1982 1979 1986 1986 1979 1982 2 1 1 1 1 1 Number of constructions 1 1 1 1 1 1 Initial value, thousand MDL 32 808 097 9 157 468 4 837 637 4 244 877 4 407 934 4 534 053 565 370 26 983 644 582 615 543 60 382 445 070 104 550 62 452 544 Residual value 30.06.2010, thousand MDL 12 316 063 3 211 457 1 123 132 2 007 239 1 984 111 1 301 495 77 588 499.9 107 890 184 434 24 227 84 833 31 071 22 454 039 Depreciation, thousand MDL 20 492 035 5 946 011 3 714 504 2 237 638 2 423 824 3 232 559 487 782 26 483 536 691 431 109 36 155 360 237 73 479 39 998 505
Name of construction
1 2 3 4 5 6 7 8 11 12 13 14 15
Production block No. 1 Production block No. 2 Production block No. 3 Sanitary block Administrative block Canteen Finished products warehouse Control posts Transportation section Compressor section Liquefied gas warehouse Metal warehouse Forestry products warehouse TOTAL
The scheme of the territory with the location of main buildings is shown in Figure 18. The scheme of the territory of the enterprise with the main buildings.
47
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Figure 18. The scheme of the territory of the enterprise with the main buildings
Private territories
The main buildings are over 30 old, and during recent 20 years they have not undergone capital repair. Taking into account the fact that the territory of the enterprise is along the Byk river , where underground waters come to the surface, all the buildings are built on pillar foundation to eliminate the risk of damaging them by underground waters. Buildings are in a satisfactory condition. Roofs of the production blocks are made of strong metal trusses coated with profiled plates. At present all roofs are in a deplorable condition and require capital repair. The condition of walls is satisfactory, it requires just running repair. Also pavement of the production spaces is deteriorated and requires reparation or total replacement. Production block No. 1: Photo 5. Production block No. 1 (view from the railroad) At present the buildings are not heated. Currently there is no central heating in Straseni. If production spaces do not require the mentioned height, second floor can be built, used for production or other activities (e.g. administration, sanitary rooms, etc.). Building of rectangular form in plan.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Axial dimensions - 240.8x144 metres. Distance between columns - 24 metres. Unsupported height 10.8 metres. Constructed surface 34 959.5 m2. Bearing structure prefabricated elements from reinforced concrete
According to the project this building was intended for main production space, department of painting and packing freezing equipment. Cranes.(20 tons, 10 tons, 5 tons) are in a satisfactory condition and can be used for production. The block is provided with electricity from 4 stations: No.1 - 2x1000 kW No.2 - 2x1000 kW No.3 - 2x1000 kW No.4 - 1x1000 kW Building of rectangular form in plan. Axial dimensions 144x72 metres. Distance between columns -18 metres. Unsupported height 10.95 metres. Constructed surface 10 599.0 m2
Production block No. 2:
Photo 6. Block 2 (to the left) and garages (to the right)
According to the project, block 2 included production of consumer products, repair department and instrumental department. The block is provided with electricity from 2 stations: No.5 - 250 kW; 1x1000 kW. No.6 - 1x1000 kW.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Production block No. 3: Building of rectangular form in plan. Axial dimensions - 132x36 metres. Distance between columns -18 metres. Unsupported height 7.35 metres. Constructed surface 10 599.0 m2 Axial dimensions - 12x36 metres. Height of one floor 3.3 metres. Total area 1 296 m2
On one side a sanitary block is built:
According to the project, block 3 included: department of repairs in constructions, department of products preparation and materials storehouse and a sanitary block. Photo 7. Block 3 (view from the side of the sanitary block )
The block is provided with electricity from station No.9 -1x1000 kW. Administrative block: Building of rectangular form in plan with 4 floors. Axial dimensions - 147x24 metres. Height of one floor 3.3 metres. Constructed surface 3 094.0 m2. Total area 12 376.0 m2.
50
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Photo 8. Administrative block (fasade)
Sanitary block: Building of rectangular form in plan with 4 floors. Axial dimensions 60x24 metres. Height of one floor 3.3 metres. Constructed surface 1 482.3 m2. Total area 5 929.0 m2.
Photo 9. Sanitary block (4 floors) and canteen
Canteen: Building of rectangular form in plan with 2 floors.

Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Axial dimensions - 48 x 24 metres. Height of one floor 3.3 metres. Constructed surface 1 188.3 m2. Total area 2 377.0 m2.
The administrative block together with canteen and sanitary block forms the facade of the main building of the enterprise. These buildings also require capital repair. Besides the mentioned buildings the enterprise has several garages for cars, compressor station and some other constructions which are in a dissatisfactory condition. For their further use capital repair is required. Currently some enterprises which rent production spaces have invested in repair or construction of supplimentary buildings.
4.2.2.2.
Description of facilities and equipment
The list of long-term assets on the balance as of October 1, 2010 is presented in Annex 1. All the facilities may be divided into several groups: Table 14. Facilities on the balance as of 30.06.2010 by groups
Number of units Year of commissi oning 1982-1996 1979-1997 1979-1985 2005-2006 1985-1996 45 1979-1991 Initial value, thousand MDL 483 320 4 807 359 2 236 27 252 69 155 1 543 154 Residual value 30.06.10, thousand MDL 15 345 186 440 0 650 9 276 98 124 Calculated depreciation, K MDL 437 947 4 620 919 2 236 26 601 59 879 1 445 030 % 96 96 100 98 86 94
Nr.
Group name
1 2 3
Power equipment and machines Working equipment and machines Measuring and adjustment devices and facilities and laboratory equipment Computing Other machines and facilities Transportation units
21 292 2 7
4 5 6
As it is seen from the table above, all the existing facilities are very old, depreciation being over 90%. Despite the fact most of the facilities are in a working condition, they are morally and physically depreciated, consume too much energy and are intended for very large volumes of production and require large exploitation expenses. All the cranes are in a satisfactory condition, they can be fully used if necessary. Conclusions: Regarding production spaces the situation is the following: Satisfactory condition of foundations, columns and beams or trusses. Need of repair and partial consolidation of walls, while for thermal energy conservation, their replacement with thermal insulation panels of SANDWICH type which would also provide an aesthetic facade with minimum costs for future maintenance during exploitation. Need of capital reconstruction of the roof, woodwork and floor as well as complete replacement of board coating with thermal insulation panels of SANDWICH type. Single-glazed metal windows should be replaced by double-glazed windows. If necessary, in order to enlarge production or administrative areas and to diminish height of production spaces it is possible to construct second floor.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI If area expansion is not required, it is possible to mount a supplementary suspended ceiling which will allow diminishing the height of space and cutting costs for maintenance, heating, lighting, etc. Regarding auxiliary administrative buildings the situation is the following: Need of capital repair of premises with replacement of doors and windows, internal networks, floors and execution of finishing works. Need to repair the roof (in this sense, a solution would be a roof carcass with two slopes and creation of spaces in attic which would enlarge administrative spaces). Regarding facilities and equipment: The situation in the table reflects an extremely high depreciation of the facilities and, accordingly, too high exploitation expenses. As regards cranes, they are in a satisfactory working condition, which means possibility of their use within the industrial park which will be created.
4.2.3. Operational diagnosis At present the enterprises activity is related to the rent of production, auxiliary premises, available machines, facilities and equipment and sale of unused assets. For the lease of production spaces a model contract has been developed which is concluded with each enterprise separately. The contract stipulates responsibilities and rights of the parties, orders of payment as well as price for 1 m2 of production area making up 127.4 MDL/m2 annually. This is the lowest possible price calculated according to the annex 8 to the State budget for 2010 No.133-XVIII of 23.12.2009. Non-production areas are offered for lease at 50% of the price of production areas. The same contract explains the order of formation of the annual rental price for facilities it makes up 10% of the residual value of the facility at the moment of the contract conclusion + 20 % VAT. The contract also provides for resident enterprises support in legal, informational sphere, secretariat services and staff selection as well as guarding of resident enterprises objects. These services are included in the rental price.
4.2.3.1.
The list of enterprises
Taking into account the fact that the main activity of the enterprise is lease of production areas and facilities, at present 33 enterprises are operating on the territory of CAAN JSC. They carry out the following types of activity: Manufacturing and maintenance of freezing equipment Metal working and facilities manufacturing Furniture manufacturing Transportation and vehicle repair services Consumer products production Bar, concert hall, bakery, etc. According to the information received from the National Bureau of Statistics in 2009 enterprises situated on the territory of CAAN JSC has performance as shown in Table 15. Incomes, taxes and contributions paid by resident enterprises in 2009 (MDL)
53
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Table 15. Incomes, taxes and contributions paid by resident enterprises in 2009 (MDL)
No. Activity Refrigeration branch production and services Branch furniture production Equipment production and metal working Construction materials (aluminium shape) Transportation and vehicle repair services Other activities (bakery, cafe, services etc.) TOTAL Number of enterprise s 6 4 6 2 7 9 33 Average number of staff 32 58 56 29 13 47 235 Sales revenues 7 241 560 8 215 257 5 880 403 283 275 208 744 3 324 001 25 153 240 Taxes paid to the budget 157 171 54 989 138 600 120 750 2 250 26 393 500 123 Health insurance contributio ns 33 389 56 592 68 288 83 393 3 266 9 082 254 010 Social insurance contributio ns 138 331 207 627 224 230 292 591 13 246 41 045 917 070
1 2 3 4 5 6
Source: NBS
The largest share in activities belongs to furniture production, including the largest number of employees 58, and about 33% of the total volume of sales. It is followed by refrigerating branch with 32 employees and 29% of the total volume of sales. A smaller share belongs to equipment production and metal working with 56 employees and 23% of the total volume of sales. Other activities are less significant with 47 employees and only 15% of the total volume of sales. General information on enterprises operating on the territory of the company as of 01-10-2010 is presented in Table 16. Table 16. List of enterprises operating on the territory of CAAN JSC as of 01.10.2010
No. and date of lease contract 001/3 of 06/05/05 003/3 of 14/05/05 004/3 of 20/05/05 008/3 of 20/05/05 009/3 of 20/05/05 011/3 of 21/05/05 014/3 of 01/06/05 019/3 of 01/07/05 028/3 of 23/09/06 035 of 17/01/1997 043/3 of 01/10/07 054/3 of 02/10/05 057 of 02/04/03 059/1 of 01/12/06 061/1 of 21/05/07 062/1 of 01/10/04 Location, no. on plan, block 3 Block 3 10 Garage - 10 2 Block 2 2 Block 2 11 transport department 1 Block 1 3 Block 3 2 Block 2 2 Block 2 1 Block 1 4 Administrative Block-and 7 4 administrative Block 1 Block 1 2 Block 2 1 Block 1 4 Administrative Block 278 98.5 Rented area m2 Production 138 126 338 462 0 126 106 259 130 467 726 25 12 156 249 46 Nonproduction 298 Total 436 126 805 1188 25 138 262 508 176 0 376.5
No. 1 2 3 4 5 6 7 8 9 10 11
Name Vaiur Mercur LLC Tact Zodiac LLC Debut Gama LLC Masfrigcom LLC Servocar LLC Electrobobina LLC Noi Bejenari IE GISS LLC Frigomas JSC Belmod LLC Prodtehmet LLC
Director Vartic Nicolae Gr Maslii Bogdan M Galuca Anton Gh Marinov Stefan Ion Cotaga V. Z. Taras Hariton Bejenari Ion Semion Suman Sergiu Gh. Bonta Petru Ion Grispeerdt Dierc Popa Gheorghe Ars.
Activity Consumer products Quail breeding Metal working Freezing equipment production Transportation services Fans production Furniture production Equipment repair Freezing equipment production Carpets Tools, equipment production Electric equipment servicing Aluminium shape Freezing equipment servicing Freezing equipment servicing Furniture production
12 13 14 15 16
Elcoj Plus Feralumin LLC Service Frig LLC Barbos Iacob IE Dimans ST LLC
Cojocaru I. Bednii Alexei Mindrila Valeriu Barbos Iacob Cionanu Nicolae
18 4720 136 153 810 72 135
18 4 720 208 288 810
54
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Jian Sergiu IE Victoria Olicedaevschi IE Mob Elita LLC Gunplast-E LLC Italprod LLC Divalconi LLC Cascald service Sperana Arhip IE Malidor-Lux Srbtoarea nunii LLC Brutria Vianda JSC Mnzatu Vasile IE Livcom Trans LLC Imex Agro LLC Erhan Marin IE Bigga Food LLC TOTAL 063/1 of 27/04/07 004/3 of 20/05/05 067/1 of 01/10/04 071 of 15/05/05 072 of 15/06/05 081 of 21/08/06 084 of 18/12/06 085 din 03/01/07 092 of 10/03/08 093 of 12/03/08 096 of 01/10/09 098 of 01/12/09 099 of 01/02/10 101 of 02/04/10 102 of 02/04/10 103 of 03/05/10 104 of 01/07/10 Jian Sergiu Olicedaevschi V Ciobanu Nicolae Cerneavschi A Cudreaov A Dicu Ion Coaga Valentin Arhip Igor Arefiev Liliana Grosu Mihaela Andreev Irina Rudi Iurie Minzatu Vasile Alecseev V Margina Vasile Erhan Marin Rusu Ion Freezing equipment servicing Transportation and repair services Furniture production Joinery from aluminium and PVC Winery equipment production Consumer goods production Sauna Vehicle repair services Bar Ceremonies Services Confectionery production Transport repair services Auto-service Auto-service Storage service Auto-service Bottle production 11 transport department 11 transport department Sanitary Block 5 1 Block 1 3 Block 3 4 Administrative Block 11 transport department apart 6 Canteen 1 floor 6 Canteen 2 floor 6 Canteen 11 transport department 11 transport department 10 Garage - 10 3 Block 3 11 transport department 2 Block 2 372 194 1457.7 179.8 972 772 40 144 147 648 320 108 126 90 172 36 820 14398.5 3441.5 72 45 78 156 68 288 18 432 372 194 1 745 197.8 1 404 772 108 144 225 804 320 108 126 135 172 108 820 17840
Brief description of enterprises: Masfrigcom LLC provides services of freezing equipment maintenance on the whole territory of the republic. Employees - about 20 people. For efficient use of the rented areas it partially constructed second floor. New areas are used as administrative premises, offices for technical staff, etc.; performed repair of the roof of the rented areas; installed gas pipe-line from the distribution block to production block 2; has autonomous gas heating. Prodtehmet LLC produces technological instruments and equipment. Employees - about 30 people; privatized a parcel of land on the territory and built a new production area. The rented equipment for production has been already redeemed. Debut Gama LTD produces and installs metal constructions of large size (tennis courts, mills, etc.). Employees - about 20 people. The rented equipment for production has been already redeemed. Noi Bejenari IE produces furniture for schools, kindergartens and by order. Employees about 7 people. Purchased new equipment for furniture production. This enterprise rents only production areas. Frigomas JSC offers services of installation and maintenance of freezing equipment. Used equipment is purchased abroad, repaired and offered to companies in Moldova. Service Frig LLC also offers services of installation and maintenance of freezing equipment, but works with high-performance equipment. It has only 2 employees while installation services are performed by subcontracted staff. Feralumin LLC produces profiles for windows and doors. They invested about 3 mln. USD in the business development; purchased modern equipment, repaired roof, partially built second floor used for offices, etc. Mob Elita LLC produces furniture (Entourage). They purchased high-performance equipment for production; privatized a parcel of land on the territory. Invested in construction of an
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI annex to the rented area; repaired roof, floor, replaced doors and windows, installed autonomous heating. Srbtoarea nunii LLC offers services for conducting festivities (weddings, christening parties, etc.). They purchased equipment for the kitchen, furniture and tableware for servicing. Repaired the roof and performed capital repair of festival halls.
4.2.3.2.
Buildings
CAAN JSC was created for lending production areas, equipment, etc. In order to carry out these activities the enterprise has created a number of conditions: Areas were divided into three categories production areas, non-production areas and areas for responsible storage. Payment is calculated differently depending on the type of the area.
Presently areas are only partially rented (Table 17. Total area and area of rented premises) Table 17. Total area and area of rented premises
Name of the building Total area, m2 Number of enterprises Rented area m2 Share of rented area Rented production area, m2 Share of rented production area
1 2 3 4 5 6 8 9 10 11 12
Production block No. 1 Production block No. 2 Production block No. 3 Sanitary block Administrative block Canteen Control posts Weighing scale Garages Transportation department Compressor department TOTAL
34 560 10 454 6 718 5 760 11 840 2 592 16 61 261 2 200 485 74 947
5 6 4 4 1 3
5 344 3 705 2 274 1 977 1 746 1 349 16
15% 35% 34% 34% 15% 52% 100% 0%
5 179 2 145 1 388 1 878 1 458 1 115 16
15% 21% 21% 33% 12% 43% 100% 0%
2 7
261 1 041
100% 47% 0%
216 876
83% 40% 0%
17 713
24%
14 271
19%
Although CAAN JSC was created for renting areas, the share of rented areas makes up only about 24%. Moreover, rented production areas makes up only 19%, thus, use of the enterprises real estate at present is very reduced.
4.2.3.3.
Equipment
According to the contracts, concluded with renting enterprises, they can also rent the available equipment. The annual sum of equipment rent makes up 10% of its residual value plus 20% VAT.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Enterprises can completely redeem this equipment at the residual price. The list of rented equipment is provided in Annex 2. Having consolidated the information on equipment renting we can state that a reduced number of equipment is rented (the share of use by groups is reflected in the following table. Most requested are transport units and cranes (massive equipment being in a satisfactory working condition). Table 18. Share of the equipment rented by the existing enterprises
No. 1 2 3 4 5 6 Name of the group Power machines and equipment Working machines and equipment Measuring, adjustment devices and facilities, and laboratory equipment Computing Other machines and equipment Transport units 45 9 Number of units on balance 21 292 2 7 Number of rented units 1 41 0 % 5% 14% 0% 0% 0% 20%
Conclusions: At present the activity of 33 enterprises on territory of CAAN JSC according to the principles of industrial park is considered to be beneficiary for further use of this experience within the park. Determination of the main directions of activity within the enterprises on the territory according to which it can be aimed at attracting potential resident enterprises: production and maintenance of freezing equipment, furniture production and auto and transport services and maintenance. Existing experience of the enterprises on the territory referring to investments in real estate with a view to creating adequate working conditions for employees. Incomplete use of production block No. 1, which is rented only at 17% mostly because of the unsatisfactory condition of the roof, too large production areas and absence of heating. Incomplete use of production block No. 2, which is rented only at 43% because of the fact that non-production areas are rented (about 48%). Incomplete use of administrative and sanitary blocks, which are rented at below 20% (mostly the first floor) and disuse of other floors. The existing equipment (with the exception of cranes) cannot be considered as asset possible to be used by newly attracted enterprises.
4.2.4. Human resources and organizational structure CAAN JSC was created for the use of production areas and equipment by means of their lease, organizational and legal support of renting enterprises and handling problems of general order (guarding, gas supply, access ways, etc.) In order to perform these tasks, the following structure of the company was created:
57
Figure 19. Structure of CAAN JSC CAAN JSC Company Board Executive Body (Management of property complex) Lessee Lessee Elcoj-PlusJSC energy complex management Lessee
4.2.4.1.
Management and organizational structure
Executive management is performed by the Management Team headed by General Director (Manager). The enterprise has 32 employees, however, there is no well structured management team. Since the company is engaged only in renting spaces and equipment and some consulting activities, the structure of staff is corresponding there are consultants in the field of: Construction, Equipment, Water-sewage systems. The company management does not cover all the necessary functions the positions of marketing and sales are totally absent. Figure 20. Organizational structure of CAAN JSC
Director
Deputy Director Staff Consultant Chief accountant Chief of guards Constructions Consultant Accountant
Water-sewage Consultant
Equipment Consultant
4.2.4.2.
Structure of human resources
Analyzing human resources structure by age we can state the share of staff over 45 years old makes up about 80%.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Table 19. Structure by age
Age group 1 2 3 4 up to 35 years old 35-45 years old 45-55 years old over 55 years old Total Number of people 3 3 13 14 33 Share in the total staff 9% 9% 39% 42% 100%
As it has been said the organizational structure is uneven. The majority of staff (management and consultants) has been working for a considerable period of time, in other words they have advanced experience and sufficient knowledge, but they do not have adequate motivation. Table 20. Structure of staff by education
Level of education 1 2 3 Higher education Vocational school
Secondary education
Number of people 6 7 20 33
Share in total staff 18% 22% 60% 100%
Total
The number of employees is practically unchanged. In order to save financial means the company applies part-time working schedule for some categories of staff (depending on the need). In these cases people work only 4 hours a day. Table 21. Dynamics of the number of employees and payroll (2008 - 9 months 2010)
Indices Average number of staff Payroll Monthly salary per employee 2008 32 686 596 1 788 2009 33 829 660 2095 2010 (9 months) 32 474 700 1 688
Conclusions: The presented data reflect the following situation: Uneven distribution of positions and functions in the organizational structure, because of which it represented as unbalanced and unclear. Absence of marketing and sales departments at the enterprise and, accordingly, absence of practice in the sphere. Trend of the staff aging at the enterprise (average age of the staff is about 50 years old). Insufficient material motivation of the staff (average monthly salary of up to 1700 MDL in 2010). Commercial and marketing diagnosis
4.3.
At the moment of the diagnostic analysis, there were no marketing and sales activities carried out in the enterprise actually. At the moment of CAAN JSC foundation, relevant information was placed in the Kompass information system, there was a number of TV shows on the national television (Mesager), however there is no activity of this kind now. All promotion activities are nothing more than information which is spread by the people who are already working on the territory of the enterprise.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI In such a situation we cannot count on a significant increase in the number of enterprises taking production areas on lease. Figure 21. Evolution of revenues from leasing services
2000 1500 1000 500 0 2007 1083
1424
1570
1788
2008
2009
2010 estimat
foreca st
Conclusions: Since within the company there are practically no marketing activities and activities of promotion of its services, the following conclusions are proposed to be taken into consideration: Sale of services is performed by means of personal promotion methods, due to long-term relations existing between CAAN JSC and its regular customers and which for the most part have been established and maintained by personal support of Director of CAAN JSC. Nevertheless, the opportunity to attract potential residents to the park and to increase the number of enterprises on its territory will allow launching and using promotion and marketing activities within the company, including by involving the staff in the field.
4.4.
Economic and financial diagnosis
4.4.1. Balance sheet analysis The most important factor of a companys activity is the property it has. This property is reflected in assets the enterprise has. Further on we will perform the analysis of the enterprises balance as a major factor in determination of financial stability. Financial analysis is performed for the period of 2005-2009, the overview of the balance for this period is presented below: Table 22. Balance sheet of CAANJSC , 2005 2009, MDL
Total Assets
I. Long-Term Assets Fixed Assets tangible assets in progress Long term financial investments Total Long-Term Assets II Short Term Assets stocks of commodities and materials Short-term receivables Short term financial investments financial resources Other short term assets Total Short Term Assets 2005 25 519 715 15 566 48 410 25 583 691 736 070 618 396 0 24 838 348 1 379 652 26 963 343 2005 30 510 836 0 2006 25 181 840 15 566 48 410 25 245 816 729 545 495 511 0 15 469 6 336 1 246 861 26 492 677 2006 30 510 836 0 2007 24 816 349 15 566 48 410 24 880 325 697 243 551 432 0 57 040 4 241 1 309 956 26 190 281 2007 30 510 836 0 2008 24 583 727 15 566 48 410 24 647 703 689 338 682 719 0 150 985 8 178 1 531 220 26 178 923 2008 30 510 836 0 2009 24 435 986 15 566 48 410 24 499 962 667 978 694 047 0 11 252 4 774 1 378 051 25 878 013 2009 30 510 836 0
Total Assets Total Liabilities

III. Equity authorized capital retained earnings
60
additional capital Reserves net profit of the accounting period) Total Equity IV Long Term Debt long-term bank loans Total Long Term Debt V Short Term Debt Short-term commercial debts Short term loans debt to founders and other participants Other Total Short Term Debt 0 368 820 -4 532 599 26 347 057 0 0 0 616 286 0 0 616 286 26 963 343 0 368 820 -4 856 098 26 023 558 0 0 0 469 119 0 0 469 119 26 492 677 0 368 820 -4 809 669 26 069 987 0 0 0 120 294 0 0 120 294 26 190 281 0 368 820 -4 808 394 26 071 262 0 0 0 107 661 0 0 107 661 26 178 923 0 368 820 -5 124 384 25 755 272 0 0 0 122 741 0 0 122 741 25 878 013
Total Liabilities
Assets analysis. Analysis of the enterprises assets shows the value of assets in the amount of 25 878 013 MDL at the end of 2009, 1 085 330 MDL or 4% less as compared to the end of 2005 and 300 910 MDL (1%) less as compared to the end of 2008. This factor shows a dynamic development of the enterprises activities. The structure of assets in this period did not undergo significant changes, showing an insignificant decrease in long-term assets in relative terms - from 94.9% on 31.12.2005 to 94.7% (relative decrease by 0.02%) at the end of 2009. This decrease in long-term assets is compensated by the increase of relative share of current assets by 0.02% during the analyzed period, from 5.1% in 2005 to 5.3% in total assets in 2009. From financial point of view, there is a certain stagnation in the activity indicating that the enterprise, although having important assets, cannot develop its activity with positive development trend. From the point of view of long-term assets structure, it is observed that the main components are: Fixed assets (99.7%); Long-term investments (0.2%); Long-term assets in the course of
execution (0.1%). As we can see, the main component of the balance sheet assets is specified by fixed assets of the enterprise which at the end of 2009 made up 87 607 660 MDL, with
depreciation level of 72% or accumulated depreciation of 63 171 674 MDL. The structure of fixed assets include: buildings (71.6%) with the most important book value (over 52% of building
value) of block 1; special constructions (11.5%); transmission constructions (9.1%), machines and equipment (6%), transport units (1.8%). As it is seen, CAAN JSC being a company dealing
with assets lending, has a specific structure of balance, having important buildings (most of them, under current conditions, being in the last decade of depreciation calculation) which are rented to contracted enterprises. At the same time the enterprise also has a range of specific equipment as well as transport units, but their value is minimal either as a result of calculated depreciation or because they are completely depreciated, if not from physical point of view, then from moral one point of view. Short-term assets at the end of 2009 made up 1 378 051 MDL which is by 153 168 MDL (1%) less as compared to 2005 and 0.1% as compared to 2008. In the structure of short-term assets at the end of 2009 prevailing positions refer to: short-term liabilities (50.4%); goods and raw materials stocks (48.4%); monetary funds (0.8%). An insignificant value of current assets is due to the enterprises specific activity, while most liabilities are predominantly due to calculated rental rates, whose term of payment has not come yet, or liabilities resulting from the current rent debts of the lessees. Analysis of liabilities. The enterprises liabilities represent the source of assets funding represented in the balance sheet by own and borrowed sources. Further on we will analyze changes in liabilities registered in the analyzed period of 2005-2009.
61
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Table 23. Dynamics of the balance sheet
1/1/ 2006 1/1/2007 1/1/2008 1/1/2009 1/1/2010
lei 0 -337 875
% -1% 0% 0%
lei 0 -365 491
% -1% 0% 0%
lei 0 -232 622
% -1% 0% 0%
lei 0 -147 741
% -1% 0% 0%
I. Long-Term Assets Intangible assets Fixed Assets tangible assets in progress Long term financial investments Total Long-Term Assets II. Short Term Assets stocks of commodities and materials Raw materials Finished products and goods for sale Short-term receivables Commercial debts financial resources Other short term assets Total Short Term Assets BALANCE III. Equity authorized capital Reserves Authorzed Reserves retained earnings Total Equity IV. Long Term Debt long-term bank loans Other Long Term Debt Total Long Term Debt V. Short Term Debt Calculated debts, inclusiv trade invoices receivables staff receivables receivables on extra budget settlements Other loans Other short Term Debt Total Short Term Debt BALANCE
-337 875 -6 525 -121 -6 404 -122 885 -174 603 -9 369 5 988 -132 791 -470 666
-1% -1% -0% -1% -20% -56% -38% +1 721% -10% -2% 0% 0% 0% +7% -1% -24% -50% +29% -15% +67% -24%
-365 491 -32 302 -27 482 -4 820 55 921 34 882 41 571 -2 095 63 095 -302 396
-1% -4% -11% -1% +11% +26% +269% -33% +5% -1% 0% 0% 0% -1% +0% -75% -94% +44% -86% +46% +772% -74% -1%
-232 622 -7 905 -7 204 -701 131 287 47 255 93 945 3 937 221 264 -11 358
-1% -1% -3% -0% +24% +28% +165% +93% +17% -0% 0% 0% 0% -0% +0% -12% -32% +5% +16% -85% +68% -11% -0%
-147 741 -21 360 -3 278 -18 082 11 328 -45 279 -139 733 -3 404 -153 169 -300 910
-1% -3% -2% -4% +2% -21% -93% -42% -10% -1% 0% 0% 0% +7% -1% +16% +8% +18% -25% +541% -40% +14% -1%
-323 499 -323 499
46 429 46 429
1 275 1 275
-315 990 -315 990
-147 395 -103 367 6 557 -57 502 6 917 228 -147 167 -470 666
-350 586 -97 562 12 972 -273 906 7 910 1 761 -348 825 -302 396
-13 994 -1 879 2 125 7 048 -21 288 1 361 -12 633 -11 358
16 428 300 8 126 -13 091 21 093 -1 348 15 080 -300 910
Own capital is of great importance in funding the enterprises assets, at the end of 2009 its share exceeded 99.5% making up the amount of 25 755 272 MDL. As compared to the previous years in terms of absolute values of own capital the decrease by 591 785 MDL or 2% as compared to 2005, and decrease of 315 990 MDL or 1% as compared to 2008 is observed. From the point of view of share in total sources of funding, an increase by 1.8%, from 97.7% in 2005 to 99.5% at the end of 2009 is observed. Increased share of own capitals correlated with the share proportionally to fixed assets shows that financing of the enterprises activity is made according to generally accepted economic principles long-term assets from long-term financial resources. An essential part of own capital is due to authorized capital distributed in the form of shares, the value of which has remained unchanged during the whole analyzed period 30 510 836 MDL. Increased depreciation of fixed assets and need of significant expenses for their maintenance entails an identification of losses from the performed activity, the fact for which at the end of 2009 uncovered losses for the previous year made up - 5 124 384 MDL, respectively an increase in losses by 591 485 MDL or 13% increase as compared to the end of 2005.
62
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Part of debt capitals consists exclusively of short-term debts which at the end of 2009 made up 122 741 MDL, including: Debts to the staff (44%) Debts to the budget (33%). Insurance debts (21%).
From the point of view of dynamics, short-term debts show a significant decrease, by 80% within 5 analyzed years, from 439 545 MDL in 2005 to 122 741 MDL at the end of 2009, correspondingly an increase by 15 080 MDL or 14% increase as compared to the end of 2008. 4.4.2. Analysis of financial results Evolution of financial results of CAAN JSC within the analyzed period is marked by occurrence of the global financial crisis which has contributed to the registration of financial stability in the recent period (2008-2009). Figure 22. Dynamics of the financial results, MDL
2 500 000 2 000 000 1 500 000 1 000 000 500 000 0 VV
Net sales
2005 948 644 728 168 220 476
2006 1 284 023 890 732 393 291
2007 1 574 424 1 005 948 568 476
2008 1 967 045 1 074 045 893 000
2009 1 966 966 927 912 1 039 054
Cost CV of sales
P.Brutprofit Gross
In the course of the analyzed 5 years (2005-2009) it was observed that the sales revenues increased more than twice, from 949 thousand MDL in 2005 to 1 967 thousand MDL at the end of
2009, representing a beneficial factor for the enterprises activity. A favourable aspect of this positive dynamics is due to a slower dynamics of costs of sales which during 2005-2008 increased from 728 thousand MDL to 1 074 thousand MDL, a 1.47 times increase, leading subsequently to its decrease to the amount of 923 thousand MDL during 2009, an decrease by 146 133 MDL or 13.6% decrease as compared to 2009. Decrease in the cost of sales is explained not by a better effectiveness of the enterprise management but by transition of some categories of expenses to the category of General and administrative expenses, the fact that leads to the initial increase in gross profit, however, eventually the net result of the enterprise may have different dynamics. The above listed premises have directly contributed to the obvious increase of the enterprises gross profit from 221 thousand MDL in 2005 to 1 039 thousand MDL at the end of 2009 (Figure 22. Dynamics of the financial results, ), indicating a 4.7 times increase during 5 analyzed years. It should be mentioned that revenues of CAAN JSC within the analyzed period are reflected by incomes obtained from the lease of available fixed assets, mainly real estate and production equipment. Since the rental price for production equipment is calculated as 10% of the residual value plus VAT, and residual value is very low as a result of accumulated depreciation and obsolescence, much of incomes are obtained from the lease of the available real estate. A small reflection of the sales revenue for lessees demonstrates that within 2008 they produced goods and provided services in the total amount of 25 mln. MDL, with sales for about 24 mln. MDL; during
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI 2009 the volumes of production and sales significantly decreased to the amount of 12 ml MDL, and during first 9 months of 2010 this dynamics continued sales making up a little higher than 3.6 mln. MDL. These aspects demonstrate an acute shortage of demand, of investments made and for a dynamic development it is necessary to create conditions more favourable for their activity. The dynamics of the total financial results within 2005-2009 is reflected in the table below: Table 24. Profit and loss account, MDL
Indicatorii
Net Sales Cost of sales Gross profit (total loss) Other operational income Commercial expenses General and administrative expenses Other operating expenses Result from operating activities: Profit (loss) Result from investing activities: Profit (loss) Result from financing activities: Profit (loss) Result from financial and economic activities: Profit (loss) Exceptional result: profit (loss) Profit (loss) before tax Expenes (savings from) on income tax Net profit (net loss)
2005 948 644 728 168 220 476 59 758 748 623 30 346 -498 735 465 920 -170 -32 985
2006 1 284 023 890 732 393 291 75 010 840 504 18 952 -391 155 65 519 2 137 -323 499
2007 1 574 424 1 005 948 568 476 117 504 958 226 34 014 -306 260 22 081 43 494 -240 685 287 114
2008 1 967 045 1 074 045 893 000 91 524 1 096 937 24 612 -137 025 138 300
2009 1 966 966 927 912 1 039 054 15 874 1 412 525 3 288 -360 885 29 904
1 275
-330 981
-32 985
-323 499
46 429
1 275
-330 981
-32 985
-323 499
46 429
1 275
-330 981
By the categories of expenses we can see a positive dynamics and in continuation growth of general and administrative expenses which increased 1.9 times more from 749 thousand MDL in 2005 to 1413 thousand MDL at the end of 2009, respectively an increase by 315 588 MDL or 28.7% only in the last period (2008-2009). The dynamics of growth is due to the fact that available real estate and equipment of the company are depreciated, expenses for administrative staff and production areas maintenance are quite considerable, and without a re-evaluation of available assets and launch of new investment projects (such as industrial park creation), the activity of CAAN JSC will support continuously growing administrative expenses. Other operational expenses make up an insignificant share in the total expenses borne by the company, and their decrease during the analyzed period prove that all the companys expenses are administrative ones. Less favourable aspect of the activity of CAAN JSC is the fact that registration of increasingly high administrative expenses results in the registration of losses from the operational activity of the enterprise, losses which during 2005-2009 varied within 137 025 - 498 735 MDL, 2008 being the most favourable year, but whose positive effects were clouded by the global financial crisis. All these previously reflected causes contributed to a registration of an unstable dynamics of the total financial result. If in 2005 losses made up 32 985 MDL, being significantly decreased on account of sales of the available assets (particularly equipment), so, absence of essential revenues from sales of the available assets led to their increase up to the amount of 323 thousand MDL in 2006, so that consequently, on account of extraordinary revenues obtained by the state, 2007 to be finished with a net profit of 46 mln. MDL. The positive dynamics was also maintained in 2008, but the financial economic crisis which essentially decreased possibilities of enterprises to rent fixed assets determined also the negative result in the amount of 331 thousand MDL.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Evolution of the financial results of CAAN JSC proves that without a restructuring and a reorientation of the activity, CAAN JSC cannot become a profitable company. 4.4.3. Analysis on the basis of financial indices 4.4.3.1. Liquidity ratios
Liquidity is an important factor in the activity of an enterprise for fulfilling current liabilities. Further on we will analyze liquidity ratios presented in the table below. Table 25. Analysis of liquidity ratios of the enterprise
01.01.2006 General Liquidity Current Liquidity Immediate liquidity Net Working capital General Liquidity change Influence of invested equity Influence of fixed assets Influence of current liabilities Coverage ratio of current cash payments 2,24 1,04 0,04 763 366 6,1 01.01.2007 2,66 1,09 0,03 777 742 0,42 -0,52 0,55 0,40 2,7 01.01.2008 10,89 5,06 0,47 1 189 662 8,23 0,10 0,78 7,35 13,0 01.01.2009 14,22 7,74 1,40 1 423 559 3,33 0,01 1,93 1,39 24,1 01.01.2010 11,23 5,75 0,09 1 255 310 -3,00 -2,94 1,37 -1,43 1,9
Total liquidity reflects possibility of the current assets belonging to the enterprise to be quickly transformed into liquidities necessary to satisfy due payment obligations. At the end of the analyzed period the value of the total liquidity ratio of the enterprise makes up 11,23, being over the recommended value. Also Figure 23. Dynamics of liquidity ratios of CAANJSC proves a positive dynamics of this ratio, increased from 2,24 to 11,23 or more than in 5 times. Figure 23. Dynamics of liquidity ratios of CAAN JSC
16,00 14,00 12,00 10,00 8,00 6,00 4,00 2,00 0,00 01.01.2006 01.01.2007 01.01.2008 01.01.2009 01.01.2010
General Liquidity Coeficientul lichditii generale (CR)
Current Liquidity Coeficientul lichiditii curente (QR)
Immediate Liquidity Coeficientul lichiditii absolute
The intermediary liquidity ratio reflects the enterprises capacity to pay short-term debts without the need to sell out trading stocks and materials. According to the practice, recommended value is between 0.7-1. For the analyzed enterprise the given ratio is much above the recommended ratio (7.74 in 2008 and 5.75 in 2009). Working capital in this period also shows an important increase from 763 thousand MDL in 2005 to 1 424 in 2008 so that its value during 2009 to be decreased to 1 255 thousand MDL. From the presented data we see 2 important aspects which should be mentioned: from the point of view of security and financial stability CAAN JSC can at anytime meet obligations of immediate payment, with the liquidation ratios confirming it; on the other hand, the net values registered above the recommended minimum indicate the fact that available means of the company are not re-invested, while their maintenance only diminishes the companys possibility to generate profit.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI The most important aspect of the analysis of liquidity ratios is the fact that their maintenance at rather high level is not because of the availability of cash resources but due to the absence of current debts, the enterprise timely paying off all payment obligations. Moreover, a large part of current assets represents the sums owed by lessees, the sums which are calculated but efficiently paid during the immediately following period. 4.4.3.2. Profitability ratios
Profitability represents the capacity of an enterprise to perform sales which exceed costs for their generation, activity costs. The set of relevant ratios describing the enterprises situation regarding efficiency is presented in Table 26. Return ratios. Table 26. Return ratios
Denumirea poziiilor Return on assets Return on Equity Return on stock Equity Return on fixed assets Return on current assets Influence of Return on Equity Influence of changes in turnover rate Influence of changes of ROS Influence of changes in sources of finance
u.m. 01.01.2006 01.01.2007 01.01.2008 01.01.2009 01.01.2010
% % % % % ori ori ori ori
0% 0% 0% 0% -2% 0,00 0,00 0,00 0,00
-1% -1% -1% -1% -25% -0,01 0,00 -0,01 0,00
0% 0% 0% 0% 4% 0,01 0,00 0,02 0,00
0% 0% 0% 0% 0% 0,00 0,00 0,00 0,00
-1% -1% -1% -1% -23% -0,01 0,00 -0,01 0,00
Since the global financial result of the enterprise is reflected by losses of the management period, from the point of view of profitability, this situation seems to be rather difficult for CAAN JSC. The data reflected in the above table, negative ones from the point of view of represented figures again prove the need for the enterprises restructuring and its orientation on investment projects which can attract investors able to increase the value of the available fixed assets and can generate favourable final financial result. Since the companys assets slightly exceed the value of 25 mln. MDL, achievement of favourable financial results is the main goal of the activity of CAAN JSC. 4.4.3.3. Ratios of financial stability
Analysis of financial stability of CAANJSC during the analyzed period shows a positively growing trend. This fact is proved by the analyzed ratios in the following table. Table 27. Ratios of financial stability
Denumirea poziiilor Net assdets value Autonomy ratio Solvency ratio Financial independence ratio Share of own sources of current assets Share of own sources of stock Immobilization ratio Share of own sources of fixed assets Self financing ratio Mobilization of invested capital Mobilization of accumulated capital Altman "Z" ratio Assets mobilization ratio
u.m. 01.01.2006 01.01.2007 01.01.2008 01.01.2009 01.01.2010
lei ori ori ori % ori ori ori % ori ori ori ori
26 347 057 42,75 0,98 0,03 55% 3,07 18,54 1,03 0,05
26 023 558 55,47 0,98 0,03 62% 3,13 20,25 1,03 0,50 0,05
26 069 987 216,72 1,00 0,05 91% 5,39 18,99 1,05 100% 8,87 8,87 0,53 0,05
26 071 262 242,16 1,00 0,05 93% 6,66 16,10 1,06 100% 183,45 183,45 0,58 0,06
25 755 272 209,83 1,00 0,05 91% 5,97 17,78 1,05 0,54 0,05
66
ROA Internal financial ratio Share of stakeholders capital in total liabilities Total assets turnover ori ori ori ori -0,15 1,13 0,04 -0,02 -0,17 1,15 0,05 -0,01 -0,17 1,16 0,06 -0,01 -0,17 1,17 0,08 -0,01 -0,18 1,18 0,08
Financial stability shows the degree of the enterprises dependence on the external financial sources and characterizes its capacity to fulfil current obligations. The most important ratios characterizing this state is Autonomy Ratio. During the analyzed period the value of this ratio is continuously growing from 42.75 in 2005 to 209.83 in 2009 the fact demonstrating persistent financial stability. As well as the Autonomy Ratio, other ratios presented in the Table 27. Ratios of financial stability show positive and growing values, the fact characterizing financial stability of the enterprise at the end of the analyzed period. The analysis of bankruptcy risk by means of Altman ratio for the analyzed enterprise shows the value of 0.54, which is below the level of 2.675 (when the enterprise is considered to be out of bankruptcy risk). The ratio value is determined by the negative return on assets, negative level of self-financing, reduced level of assets mobilization. It should be mentioned that CAAN JSC has a very high level of financial stability. One of the indices reflecting this statement is provided by the coefficient of total payment capacity which is equivalent to the unit value the explanation resulting from this is materialized in the fact that the enterprises assets are exclusively financed from its own sources of financing which, in the end, have the increased cost. In this sense, the share of own sources of financing is over 91% at the end of 2009 as compared to 55% in 2005 and 93% in 2008. 4.4.3.4. Analysis of rate of turnover
Analysis of the rate of turnover allows analyzing the efficiency of management of the enterprises assets and liabilities, which directly affects its financial situation. The turnover ratios in the analyzed period are presented in Table 28. Table 28. Turnover ratios
Denumirea poziiilor
Total assets turnover Total assets turnover period Fixed assets turnover Fixed assets turnover period
u.m. ori zile ori zile % ori zile zile zile zile zile zile zile zile zile zile zile zile zile zile
01.01.2006
01.01.2007
01.01.2008
01.01.2009
01.01.2010
0,04 10 232 0,04 9 709 71% 0,69 524 94,3 185,1 118,0 116,8 514,1 78,5 151,5 3,9 233,9 280,3 265,9 0,0 118,9
0,05 7 494 0,05 7 126 71% 0,98 368 69,6 135,8 62,7 94,4 362,5 43,5 104,8 3,9 152,2 210,4 125,3 0,0 100,7
0,06 6 023 0,06 5 731 72% 1,23 292 53,6 109,5 35,2 85,7 284,0 12,5 49,8 5,1 67,4 216,6 0,0 87,8
0,08 4 792 0,08 4 532 72% 1,38 260 39,8 87,1 35,7 78,4 241,0 0,9 16,8 3,1 20,9 220,1 281,5 0,0 78,9
0,08 4 764 0,08 4 498 72% 1,35 266 38,8 85,4 35,9 91,3 251,4 0,7 17,2 3,1 21,1 230,3 0,0 71,8
Depreciation index
Current assets turnover Current assets turnover period Net cycle Inventory turnover Turnover period of finished goods Turnover period of accounts receivable Other assets turnover
Cost cycle
Turnover period of accounts payable Deffered taxes & wages turnover period Other current liabilities turnover period Credit cycle Net cycle TURNOVER TO THE SPECIAL BASES Inventory turnover Turnover period of work in progress Turnover period of finished goods
67
(inventory) Turnover period of accounts receivable Other current assets turnover period Turnover period of accounts payable Deferred taxes & wages turnover period Other current liabilities turnover period
zile zile zile zile zile
118,0 49,8 68,6 97,3 2,5
62,7 70,0 35,9 65,1 2,9
35,2 68,7 20,7 48,8 4,1
35,7 71,0 1,3 14,6 2,9
35,9 76,7 1,3 16,1 2,6
Rate of turnover of Total Assets at the end of 2009 shows the value of 0.08 which corresponds to a turnover period of 4 764, a more than double increase in the rate of turnover, accordingly a decrease of the period over 2.1 times. Slow dynamics of total assets renewal is due to the fact that the enterprise has important assets, but obtained revenues are too small to provide an added value from their use. For the current assets the rate of turnover is 1.35 which corresponds to 266 days. This value has increased more than twice during 5 years of activity. Small values here are specific to a company whose activity is directed at leasing long-term assets. Since the enterprises assets are mostly composed of long-term assets, the turnover ratios of current assets will have high net values, which analyzed separately, could indicate an efficient activity. However, from general point of view, these indices do not reflect the real situation because of correlation with the turnover ratios of long-tem assets, it can be observed that the companys revenues are not sufficient to maintain the positive dynamics and ensure sustainable development. 4.4.3.5. Profitability analysis
Analysis of the profitability of the enterprises activity for the analyzed period of 2005-2009 shows the situation fluctuating from period to period. Table 29. Profitability ratios
Denumirea poziiilor
Return on Sales Return on sales Return On Direct Costs Return On General Expenses Return On Total Costs Gross margin Price index Operational leverage
u.m. % % % % % lei % %
01.01.2006 -56% -3% -36% 0% -36% -528 147 -56% 1,0%
01.01.2007 -35% -25% -26% 0% -26% -447 213 -35% 1,0%
01.01.2008 -25% 3% -20% 0% -20% -389 750 -25% 1,0%
01.01.2009 -10% 0% -9% 0% -9% -203 937 -10% 1,0%
01.01.2010 -19% -17% -16% 0% -16% -373 471 -19% 1,0%
In terms of profitability, the situation of CAAN JSC is also not so favourable. In this sense, registration of losses from the performed activity proves inability of the enterprises management to profitably manage the activity and generate financial resources able to ensure a sustainable development of activities. Conclusions: At the end of this point we make a conclusion that having an important complex of fixed assets, although used, CAAN JSC initially has favourable premises from the point of view of its transformation into industrial park, which will consequently allow for an essential increase in their value, since the industrial park will offer the facilities for the residents that will be operating on the territory. At the same time, an essential share of own means determine a high level of the companys stability and high security before potential creditors or investors, certainly correlated with the high risks from the point of view of financial efficiency. At the same time, it should be noted, gross profit increase rate during 5 analyzed years, which, however, has no major impact on the global result of the management period and which is mostly not because of a better efficiency of the enterprises management but due to transition of expenses to the category of General and administrative expenses, which caused by its increased share, conditions continuous losses of management activities per total. Analyzed in terms of financial indicators, CAAN JSC shows beneficial situation regarding liquidity, the high level of which, in total, would offer increased opportunities of the company's management,
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI however, in terms of investments, a too high liquidity leads to the premise of a less favourable management from the point of view of revenue production. A quite difficult situation is reflected in profitability ratios, the negative value of which again confirms the need for the company to be restructured and oriented at investment projects which can attract the investors able to increase the value of the available fixed assets and can generate a favourable final financial result. Moreover, the ratios reflect persistent bankruptcy risk within the whole analyzed period, determined by negative return on assets, negative level of self-financing, reduced level of asset mobilization. Against this background the positive point consists only in the total capacity of the enterprise assets payment, which are exclusively financed from own sources of financing. A general conclusion regarding the general financial situation of the company refers to the fact that the constraints on the basis of which the enterprises management operates are not because of the lack of their knowledge but due to the fact that real estate and equipment of CAAN JSC has a high level of depreciation and obsolescence, resulting in a lower attractiveness for investment activities and, thus, is likely to generate relatively lower revenues. At the same time, the lack of public utilities such as sewage, heating system, significantly reduces the investment attractiveness, while in the course of total economic crisis, short-term benefits from the use of real estate and used production equipment cannot be achieved. In order to ensure optimal profitability conditions and create premises for viable development it is required to redirect the activity of CAAN JSC by creating the industrial park which would allow combining production activities with increased possibilities to invest and attract foreign investments. Thus, the enterprise will be able to cover the expenses due to involvement of this flow of investments from outside and possibilities to create optimal conditions for activity of all the enterprises existing on the territory of CAAN JSC. Available real estate and equipment, if are renovated, could be used in various activities, and owing to this, the enterprise will be able to receive an added value to be used for creation of new development premises which in the end will result in profit generation .
4.5.
SWOT Analysis
WEAKNESSES Infrastructure is poorly developed Buildings require capital repair and renovation Insufficient financial resources Uneven organizational structure and lack of the staff qualified in the field of marketing Adjacent areas, the property of local public administration Energy complex management is through the intermediary Elcoj PlusLLC Salaries are low, the fact which has negative effect on motivation and recruitment of highly qualified staff Absence of policies and practices of management, development and assessment of human resources Absence of information system
STRENGTHS Location near Chisinau municipality Availability of large production areas Experience in operating according to the principles of an industrial park and General Director familiarized with the concept of industrial parks Easy access ways (motor and railroad) Possible connection to public utilities Free working site Land does not require change of destination Land adjacent to constructions is provided for use for an unlimited period of time Rich experience of the staff in technical, legal and accounting fields Practice of experience sharing among enterprises on the territory Availability of free adjacent area being in public property which can be use for expansion of the park area up to 28 ha.
OPPORTUNITIES Creation of the basis for development of refrigeration industry and completing value chain with necessary activities Creation of support for farmers in preserving fruit and vegetables crop Granting of the title of industrial park will eliminate the reason for which Mayors Office of Straseni initiated disputes regarding payment and parameters of the area adjacent to the companys real estate (Economic Court) Free assignment or transfer in gratuitous use of the property owned by the state to managing enterprise for creation and development of industrial park by the decision of its owner according to the Law on administration and denationalization of private property (only in case of fulfillment of the provisions of art. 12 (2) of Law No. 182 of 15.07.2010 on industrial parks) The right to privatize the property owned by the state adjacent to constructions at normative land price set at the moment of its transfer in use to the managing enterprise or under lease to the residents of the industrial park, only after purchasing and/or
THREATS Risk not to find sufficient financial resources (not to find potential investors) Risk of insufficient use of the available areas Disputes Mayors Office of Straseni regarding payment and parameters of the area adjacent to the companys real estate (Economic Court)
69
commission of the constructions and facilities with industrial and related destination, according to the Law on normative price and procedure of land purchase and sale (after fulfillment of the provisions of art.12, p.1, letter c of Law No.182 of 15.07.2010 on industrial parks) Granting of tax exemptions according to the Tax Code Application of the reduction coefficient of up to 0.3 to tariff on land rent payment by the managing enterprise Possibility to create the park with private-public partnership principles Optimization of state controls over the residents activity by establishing planned controls approved by Government Decision and unforeseen controls performed with consent of the Ministry of Economy
5. SCENARIOS OF THE INDUSTRIAL PARK DEVELOPMENT 5.1. Determining the scenario for the industrial park development
The industrial park creation is conditioned by the need of industrial development of economy able to bring about optimization of production costs, obtaining quality and competitive products on the sale market, etc., while acceleration of investment processes in the country represents an adjacent effect. Basic missions of the industrial park will be to create added value for its residents with direct effects on the socio-economic environment. The industrial park as a model of functioning will suppose creation of advantages for its residents. An important factor for the industrial park creation is also availability of a prior unused area planned for the enterprise development by means of extension. In case of the park creation the area can be privatized according to the Law on industrial parks (No. 182 of 15.07.2010). Figure 24. The scheme of location of CAAN JSC and the area proposed for the development
CAAN JSC
Territory for development in prospect
STRASENI
In case of industrial park creation it is possible to benefit from the facilities, stipulated in the legislation for both participating enterprises and newly attracted enterprises which will also benefit from the support on the part of the industrial parks administration.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Taking into account the fact that CAAN JSC has been already operating as a non-formal industrial park, this situation has been taken into consideration when choosing the optimal scenario of the industrial park creation. Scenario 1. Industrial park is created according to the existing concept: enterprises may have any type of activity, new types of activities of newly attracted enterprises may also appear. Managing enterprise (owner) invests in the park infrastructure and in capital repair of the buildings to eliminate drawbacks revealed within the study. Creation of a modern infrastructure and adequate activity conditions for resident enterprises will allow for the rent price to increase about two times. Completing the management team with marketing and sales departments and performing an efficient promotion of the industrial park will allow for an increase in the number of enterprises operating within the industrial park and the use of all available areas. These two components will increase the revenues from renting spaces from about 2 mln. MDL annually, obtained within recent years up to about 20 mln. MDL annually (provided that all the available areas are used). Scenario 2. This scenario will suppose creation of the industrial park with the existing activities, new activities on the part of the resident enterprises and the activity, related to construction and lease of freezing equipment by the managing enterprise. In this context it is proposed to construct a modern refrigerator for fruit and vegetable storage and a packing house. The refrigerator will be placed in production block No.1, planned square -14.4 thousand m2. In the same block there will be the packing house with the area of 10.0 thousand m2. Together they will make up a modern logistics centre, providing an efficient support to farmers in storing, preserving and selling fruit, vegetable, berry, grape products etc. At the same time refrigerating areas can be offered for lease to other interested economic entities. In this case investments will be related not only to infrastructure and capital repair but also to construction and equipping the logistic centre. According to the scenario 2, sources of incomes for the owner will result from both activities: lease of areas (with investments and provisions from the scenario 1) and activity of new production. At the same time, the enterprises existing on the territory keep their areas and their activitys profile, while potential residents can have activities from the refrigerating branch as well as other industrial activities and services rendering. Scenario 3. The industrial park is created according to the type of development of the regional cluster. Creation of the industrial park for the regional cluster supposes the concentration of activities on the whole line of value chain within a single sphere: production, installation and maintenance of freezing equipment. It will include the activities: raw material processing, production itself, installation, maintenance and repair of the equipment, research-innovation and training of specialists in the field. Taking into account the fact that in the past the enterprise was intended for the production of such kind of equipment, the scenario is quite attractive. However, at present, there are no companies which produce freezing equipment, activities are limited to repair and adjustment to the local conditions of the corresponding used equipment brought from Europe as well as installation and maintenance of new modern equipment. With a view to consolidating these activities it is necessary to invest in the creation of a company on assembling modern freezing equipment on the territory of the enterprise and its sales both on the
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI territory of Moldova and in neighboring countries, such as Ukraine, Russia, etc. This assembly line can be installed in Block 1. Enterprises which are not related to the selected profile can continue to operate on the territory of CAAN JSC in case if they are not situated on the territories intended for the cluster. Otherwise they can be placed on other areas available on the territory or removed from within the industrial park. Within the park, business infrastructure as well as favorable model of cooperation among the residents will be created. Thus, the principle of industrial clusters will work within the industrial park. The initiative of their development represents a new way of organizing efforts for economic development which are not limited to the traditional efforts of business costs reduction and general business environment improvement. At the same time, the residents of the industrial park will be also involved in the model of the clusters functioning. The efforts which are concentrated on the conglomerate will attract an interest and a broader involvement on the part of the involved companies. Besides, with the business diversity which will be developed on the territory of the industrial park, it is useful to create a business incubator for the benefit of all interested residents. Business incubator is a structure specialized on the creation of favorable, sustainable environment for emerging and efficient activity of innovative small and medium enterprises with development potential which implements original technical ideas. The main goal of the business incubator is efficient support for those planning creation of own business especially at the initial stage. Entrepreneur can be completely concentrated on the business idea, since all the problems related to business maintenance are supported by the incubator. This also allows for considerable decrease in business administrative costs. The positive result is the creation of new jobs within the business incubator and efficient development of innovative industries. Who can participate in the incubator: the enterprise which may request incubation should meet some principal common conditions: to be a new and/or innovative business, to be a private enterprise which has been carrying out a new and/or innovative production activity for less than 2 years, to be an enterprise developing a technology transfer, businesses, accordingly enterprises, contributing to local, regional or national development, to create new jobs, to have financial capacity to pay for the requested services. For efficient development and operation of residents of the industrial park regardless of the applied scenario, it is proposed to authorize within the park a customs control zone for the clearance of imported/exported goods both by road and rail transport which can represent an opportunity for business environment of Centre region of the Republic of Moldova. In this sense, CAAN JSC is ready, on the basis of existing properties, to create a logistics centre with the areas intended for store-houses and offices for offering of the whole set of customs services (customs stations, customs brokers, auxiliary services, branches (representations) of banks, which will serve economic entities (temporary storage warehouses, storehouses) and which is equipped with the mechanism of goods chargingdischarging both at railroad and from trucks. In order to compare the scenarios described above it is proposed to take into account a number of criteria which we consider to be important for the choice of optimal frameworks of carrying out of activities in the planned industrial park, which are the following: Resources (local raw material resources, productive capacity, equipment and technologies, infrastructure and facilities, staff qualification, organizational system) Market (industries planned in the region and on the Republican level, export potential of the planned industries) Related industries (suppliers and industries interacting with the planned industry within the park)
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Competition (competitors in the region) Effects (the impact of reorganization upon the enterprises existing on the territory, general impact upon the region).
Comparison of the scenarios according to the selected criteria is shown in Table 30. Comparison of activity scenarios of the industrial park . Table 30. Comparison of activity scenarios of the industrial park
Criterion Scenario 1 Existing productive capacities. Appropriate technologies existing on the territory. Different types of services existing on the territory. High and diverse qualification, rich experience of the staff of existing enterprises Resources Presence of cooperation relations among the parks enterprises. Availability of access ways for transport (motor and rail) Availability of spaces for production, storage. Possibility of technical support at the moment of creation of new enterprises Scenario 2 Points from scenario 1 are valid. Availability of spaces for creation of the mentioned businesses (refrigerator and packing house). Availability of access ways for transport (motor and rail) Vast technical support for the newly created enterprise. Existing suppliers for modern freezing equipment. Appropriate (and in some cases modern) technologies existing on the territory. Maintenance of the areas rented to the enterprises already existing on the territory, which carry out diverse activities, including those referred to refrigerating sphere Points from scenario 1 are valid. There is a need to create a centre for storage, preserving and sale of agricultural products. There is a considerable lack of modern and efficient refrigerating areas in the republic Farmers already have experience and abilities of growing fruits, vegetables, etc., but they need support in their storage and sale. Scenario 3 Cluster Points from scenario 1 are valid. Close relations with producers of modern freezing equipment from Europe. Suppliers with whom the activity in the field of freezing equipment is already being carried out Possibility to use modern production technologies (assembly) on the territory. Availability of access ways for transport (motor and rail) High and diverse qualification, rich experience of the staff of enterprises existing on the territory that serves and repairs freezing equipment and is less experienced in its production.
Potential for sales in the region as well as in other localities of the republic, especially in Chisinau, due to direct closeness. Regarding production activity: potential for sales for industrial freezing equipment due to the large share of agriculture in the region, Market for viticultural equipment due to the development of this branch in the region, for metal goods due to the intensification of development of production of agricultural facilities and equipment, and due to significant share of furniture production in the region, as well as the potential for sales even in the park for this direction, Growing existing market for furniture Related industries Local and foreign suppliers. Large share of related
Points from scenario 1 are valid. Potential for sales of industrial freezing equipment due to large share of agriculture in the region and at the republican level. Need to raise the level of mechanization in agriculture.
Local and foreign suppliers. Development of modern
Most suppliers are foreign. Large share of related industries in
73
industries in the volume of sales in the region referring to metal goods production, timber production, intensification of engineering industry development. agriculture is a priority for the Government. Grants and technical assistance offered to farmers allow for the intensive development of fruit, vegetable, table grape cultivation in Moldova Points from scenario 1 are valid. Minimum competition in production activity storage, preservation and sales of packed fruits and vegetables Absence of direct competitors for the services of renting modern refrigerating spaces for local producers. Positive effects from scenario 1 are valid (with the exception of the volume of investments). The owner will have two separate sources of incomes lease and production activity. Due to the creation of production activities storage, preservation and sales of packed fruits and vegetables, related industries (fruit and vegetable cultivation) will have a considerable impetus for sustainable development. Production activities: will use the existing areas with higher return for a service which is presently in great demand provide the local market with quality domestic food products throughout the year. will raise potential for export of fresh and frozen fruits and vegetables from Moldova. Creation of the logistic centre will enhance the image of republic on the international arena. Points from scenario 1 are valid. Absence of direct competitors for freezing equipment in the region. Imported goods are competitive. A competitive advantage would be the creation of business incubator and existence of all products and services of value chain in the same place. the volume of sales in the region referring to refrigerating sphere.
Absence of direct competitors for freezing equipment in the region. Competiti on Minimum competition on nonstandard equipment for viniculture. High competition for furniture production due to closeness to Chisinau. In the region, however, the companies located on the parks territory are in the top five. Requires minimum volume of investments (creation of infrastructure and capital repair of buildings). Due to product diversification, related industries will also grow and there will be even distribution of these within the economy of the region. Growth of the potential for attraction of foreign investments resulting from the diversification of types of activity of the resident enterprises. Positive effects Reduction in the period of launching new enterprises due to their quick inclusion in the organizational structure and already existing cooperation. Minimization of the risk of dependence on certain directions of specialization in case of supply and demand fluctuations on the market. Stress on diversification will increase the need of specialists and qualified workers. Increase in the number of resident enterprises will increase the number of jobs in the park and, accordingly, will reduce unemployment rate. Risk of failure to quickly find investors and resident enterprises Risk of occurrence of administrative and corporate conflicts among existing and newly attracted enterprises. Development of administrative red-tape due to the existence of a single control body of the managing enterprise.
Positive effects from scenario 1 are valid (with the exception of the volume of investments). Creation of the business incubator will allow for the acceleration of the processes of starting businesses from the cluster. Creation of the whole value chain will essentially increase the cumulative potential of the industrial park. Creation of an assembly line of modern freezing equipment will give the possibility to have modern freezing equipment at lower prices. Stress of quality will increase the need in specialists in the field. In case of emerging of local competitors as well as in case of imported goods there is competitive advantage of offering a complete range of activities totally covering the value chain in the branch.
Risk of insufficient financial resources (The necessary volume of investments is larger than it is specified in scenario 1) Risk of failure to quickly find investors and resident enterprises Risk of occurrence of administrative and corporate conflicts among existing and newly attracted enterprises, as
Specialization will determine concentration on very high quality and, by default, increase in need to purchase expensive imported modern technology . Specialization referred exclusively to one sphere may lead to failure to find sufficient suppliers and customers, as well as to find qualified staff for all long-term activities of the value chain. Extension of the period of new
Negative effects
74
well as risk of occurrence of conflicts of interests in the managing enterprise (the same owner, various activities, various priorities). Lack of sufficient resources from the state for the creation of the necessary infrastructure. Development of administrative red-tape due to the existence of a single control body of the managing enterprise enterprises attraction in the park due to complex organizational and legal procedures of nonconforming enterprises. Slow use of the existing areas due to the long process of releasing areas by nonconforming enterprises. Great risk of dependence only on one direction in case of economic slowdowns. Risk of failure to quickly find investors and resident enterprises Development of administrative red-tape due to the existence of a single control body of the managing enterprise.
5.2.
Selection, analysis and substantiation of the optimal scenario
After comparison of the 3 proposed scenarios, it is determined that appropriate choice is scenario 2 creation of the industrial park with the existing activities, new activities on the part of the resident enterprises and the activity related to construction and renting of freezing equipment by the managing enterprise justified by the increase in beneficial effects for the present enterprises from the territory, increase in positive effects upon the region, decrease in negative ones, and presence of a higher potential of resources for the implementation of this type of scenario as compared to other two variants. In case of impossibility to implement scenario 2 for various reasons, the existing concept will be developed according to scenario 1. Even if choosing optimal scenario there are some risks in the creation of the industrial park which can be eliminated according to the methods described in the table below. Table 31. The methods to eliminate the risks of scenario 2
Risk Risk of insufficient financial resources. Methods of elimination Attraction of foreign investments. Partial sales of assets Intensive promotion of the need for strategic industries development in the park and the region; Provision of benefits to develop advantageous cooperation within the park; Rapid provision of -legal framework on the parks territory; Intensive cooperation with the local public administration; Monitoring of the results of the investment made within the industrial park. Promotion, awareness of the enterprises contribution to the important industries of the region; Risk of occurrence of administrative and corporate conflicts among existing and newly attracted enterprises. Reflection of cooperation opportunities on the territory and creation of synergetic effect upon the whole park; Equitable provision of the same operation conditions and facilities for all the resident enterprises. Intensive promotion of the parks activities and products in order to attract foreign investors; Conclusion of agreements with the residents by which they will pay individually for creation of utilities, the sums which will be deducted from further sums of the rent or reduced from the price of privatization of parcels, real estate and equipment;
Risk of failure to quickly find investors and resident enterprises.
Absence of sufficient resources from the state for the creation of the necessary infrastructure.
75
Creation and maintenance of the dialogue between the local public administration and resident enterprises regarding common contribution to the development of the regions industry; Monitoring of the parks efficiency on the part of local public bodies. Correct establishment of legal-administrative framework of the industrial parks activity, which will set the criteria for selection and acceptance of new residents; Efficient monitoring of contract relations between the residents and manager; Control of the managing enterprises on the part of the LPA.
Development of administrative red-tape due to the existence of a single control body of the managing enterprise.
At the same time, it would be appropriately to indicate benefits specific to the optimal scenario which are demonstrated in the following table (indicated according to the categories of beneficiaries). Table 32. Benefits of scenario 2 according to categories of beneficiaries
Category Managing enterprise Benefits Ensuring of long-term revenues from two directions of activity. Development of an activity currently demanded on the market (storage, package and preservation of fruits and vegetables) Increase in the volume of revenues from the lease of spaces due to the expansion of the activity of enterprises on the territory; Minimization of risks of dependence on certain directions of specialization in case of slumps Improvement of internal infrastructure due to the increase in the number of residents and acquisition of investments for modernization and reorganization; Expenses optimization due to the lease of spaces which are not used at present; Recognition of contribution it has together with resident enterprises to the development of important industries of the region, and the GDP of the countrys economy; Improvement of conditions of employees remuneration due to the increase in production volumes of the resident enterprises. Residents (Enterprises currently operating on the territory and newly attracted enterprises) Maintenance of the existing activity of the enterprise on the territory, accordingly, maintenance of already established relations with customers and suppliers; Reduction of expenses related to business starting for new resident enterprises of agro-food profile; Increase in volumes of sales due to the increase in competitiveness of obtained products and, accordingly, growth of local demand (on account of extension of activities by means of creation of new types of activities within the park); Strengthening the potential of foreign investment attraction resulting from products diversification; Improvement of conditions for employees remuneration due to the increase in the volume of production and extension of activities resulting from implementation of new types of activities (refrigerating services) and packing house activity. Local and central authorities Consumers of the enterprises from the industrial park Increase in contributions to the local and national public budgets and increase in the number of jobs in the region due to the launching of new types of activities within the park requested on the market. Improvement of the quality of the products produced within the park (by means of creation of new types of activities based on modern technologies); Access to the diversity of products on the local markets, including to additional maintenance services. Due to the diversity of products. related industries will also grow and there will be their even distribution within the regions economy; Opportunities for development and extension of the activity due to the state support offered within the industrial park according to the legislation in force; Opportunities of interbranch cooperation.
Enterprises of related industries and economic entities interested in the partnership
76
5.3.
Sales market for production activity:
Thus, in this context, first of all we reflect the sales market for production activity of the managing enterprise as follows. Since Moldova is situated in a moderate climate zone and has fertile soils, traditionally agriculture of the republic is focused on fruits, vegetables and grapes. The market of fruits, vegetables and grapes of the Republic of Moldova is characterized by evident seasoning. The period of harvest in the country begins in May and lasts until October, when last apples and grapes are harvested. Thus, Moldova is a fruit, grape and vegetable supplier only during warm season of the year, and only during these seasons important amounts of fruits are exported abroad. Pomiculture is one of the main branches of agro-industrial complex. Covering just 6-7% of the area of arable lands of the republic, pomiculture within recent two decades has been constantly producing about 20% of monetary incomes from selling agricultural products. At present, development of pomiculture in the Republic of Moldova consists in efficient use of the existing orchards with unexhausted potential and their subsequent replacement with new orchards of highly intensive type, with a modern assortment and advanced technologies which ensure early harvesting (in the second year), high yield of fruits during fructification period (40-45 ton/ha), required quality and competitiveness in the domestic and external markets. During 2004-2009 Moldovan fruit exports recorded huge fluctuations. 2009 was marked with a record figure of fruit export (229 thousand tonnes) with total value of 136 mln. USD. The lowest level of export was registered in 2008 (127 thousand tonnes) mostly caused by drought of the previous year as well as customs restrictions of that period. Main export countries include CIS countries (Russia, Belarus, Ukraine), receiving about 84 % of the total Moldovan fruit export. In 2009 Russia was the most important export country for Moldova during the last 6 years (183 thousand tonnes of fruit), where 80% of the total fruit export were delivered. Other export countries were France, Greece, Turkey, where exports during 2004-2009 were practically stable. At the same time we should mention the rate of growth of fruit exports to such countries as Germany, Italy, especially in 2009. Export to Romania decreased by 75% as compared to 2004. Disadvantages of Moldovan exporters are reflected in inadequate calibrating, sorting and packing. Problems connected with supply, low quality and heavy competition imposed by suppliers from such countries as Poland, China, Italy, Greece (able to offer products of the same quality at lower prices) represent serious obstacles for Moldovan exporters that make efforts to penetrate this market segment. Table 33. Total volume of fruit export during 2004-2009
Source: NBS
77
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Viticulture is also a main branch of agriculture. The Republic of Moldova is on the 19th place in the world by the volume of annual grape production, according to the latest data (of 2007) of Food and Agriculture Organization of the United Nations. In the RM there are programs of support for pomiculture and viticulture support, which in different ways support the development of these fields. The largest grape producer is Italy - over 8.5 mln. tonnes of grapes annually, followed by France (6.5 mln) and China (6.3 mln). On the other hand, the largest table grape purchaser is the USA, with imports of 595 thousand tonnes annually, followed by Russia - 407 thousand tonnes and Germany 306 thousand tonnes (the two last are very attractive for the RM). The Republic of Moldova exports only 20 thousand tonnes of table grapes, being in 20 top exporters of these products. Moldovan producers export prices, however, are two or even three times less than those of their main competitors. Table grape consumption continuously grows and it especially intensifies during cold seasons of the year when the current harvest decreases in household production. Therefore, there appears the need for collection and fresh-keeping of grapes for their sale during deficiency of these products on the market. At present in Moldova out of 110 thousand ha of vines in harvest only about 5% are of table sorts. Out of these about 8 000 ha are given to table sort Moldova. More than 80% of areas with table sorts are aged, average annual harvest per hectare being only 1.5 tonnes instead of 4.5-5 tonnes. Vegetable growing in Moldova is characterized by instability but has a trend to grow. In Moldova vegetables are mostly cultivated on the open ground. During recent years vegetable growing in protected areas (greenhouses) by using modern technologies has been widely spread. But farmers incapacity to preserve the harvest does not allow maintaining adequate profitability and does not allow for steady supply of the products to the market. For this reason vegetable import has been already prevailing over the export from Moldova for a long period time and preserves a descending trade balance. During 2004-2009 Moldova exported about 114 thousand tonnes of vegetables in the total value of 28.4 mln. USD. Within last 2 years export considerably decreased. The main countries of vegetable export during the last 6 years were Belarus, Romania, Russia, with about 50% of the total volume of exports. Other export countries for Moldova were Switzerland, Hungary, Italy, Estonia, France, Germany. The highest export volumes were registered with Belarus in 2006 and 2007 (5274 and 5310 tonnes respectively). Largest transactions take place in season, since Moldova has no adequate capacities for extra-seasonal production. Table 34. Total volume of vegetable export during 2004-2009
Source: NBS
78
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI At the beginning of 2008 the Ministry of Agriculture and Food Industry, National Refrigeration Association (NRA) and the Agribusiness Development Project (ADP) carried out a study of cold storages of the Republic of Moldova intended to preserve fruit and vegetables. The study provided updated results on the similar activities undertaken by these three structures at the end of 2004. Analysis of refrigerators in the RM. The study identified 187 cold storages with a total capacity of 178 740 conventional tonnes (recalculated for apples). This figure constitutes an increased of 14 390 tonnes (9%) as compared to 2004, when 161 cold storages with a capacity of 164 350 tonnes were indentified. Despite the modest, though positive, increase of the total capacity, a significant increase in the operational cold storage capacity was identified (+14 330 tonnes or 23%). This increase was largely the result of the construction of 19 new cold storages during 2005-2007, with a total capacity of 10 350 tonnes. In the central zone of the country, 76% of the identified facilities are classified as operational or partially operational, compared to 57% in the Southern and Northern zones. Construction of new cold storages is more intensive in the Central zone (2 900 tonnes) as compared to the Northern zone (2 540 tonnes) and the Southern zone (1 200 tonnes). The analysis of the received data shows that the main products passing through the cold chain are apples (63%) followed by grapes (22%). Very few cold storages (<10%) processed two or more products. Figure 25. Use of cold storages
Unused
Used
Source: The Ministry of Agriculture and Food Industry, National Refrigeration Association and the Agribusiness Development Project . Study of cold storages in the Republic of Moldova. 2008.
apple s
vines s
vegetables s
others
The focus on a single product, coupled by the situation when cold storages do not have raw materials in their area of location and limited access to the information on the spaces which can be rented, inevitably leads to a very low degree of capacity utilization (average 32%). Considering that in all parts of the country there is the possibility to handle a full conveyor of products, and capacity utilization is attainable.
At the same time, the reduced degree of capacity utilization does not mean absence of products. Thus, it is estimated that less than 55% of the volume of exported grapes was included in the cold chain. While for apples this index is estimated at 27% at most. If we take into consideration that some of the products from the cold storage are sold on the local market, then the share of products which pass through the cold chain is reduced to 13, respectively, 16%. For other products, such as stone fruits, berries and vegetables, the situation is even more unfavorable. A large number of the cold storages do not have suitable access roads and they lack continuous water supply and sewage systems, which are essential for meeting international food safety requirements. Only 5 cold storages have certified food safety management systems (HACCP or ISO 22000) and only two companies hold GlobalGAP certificates. For the last 10-15 years, the main cold storage activity in the Republic of Moldova was storing fresh products for a 3-4 month period in order to benefit from higher out of season prices. Most products
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI were delivered to market segments of lower value of the CIS countries, being sorted and packed manually in an inadequate way. At the same time the EU market and other segments of the CIS countries market (especially due to fast development of supermarkets network) require consolidation of farm fresh products in homogeneous lots that do not need to be sorted and packed in the importing countries. Since the state of existing cold storages demonstrate: unjustified attempts to minimize investment costs, insufficient thermal and hydro-isolation, doors that do not ensure chamber air tightness, lack of humidifiers and sufficient cooling capacity necessary for freezing systems, the market situation reflects the following trends: Inability to maintain optimum temperature and relative humidity regime Increased electric energy expenditures Expensive cold storage operational costs At the same time, a clear general trend of converting to Freon-using cooling systems was observed, while the share of Ammonia-using systems decreased dramatically. At the same time, EU regulations clearly establish the necessity to convert to environment-friendly cooling agents (ammonia, water, carbon dioxide, propane, etc.). Thus, the risk of losing specialists in the domain of facilities with environment-friendly agents is obvious, and it will generate high conversion costs in 15-20 years. Moreover, a large number of the cold storages do not have suitable access roads, lack continuous water supply and sewage systems, which will significantly encumber the implementation process of the international food quality and safety standards. As to cold storage equipping the situation on the market of the RM looks in the following way: 1. There are only 2-3 cold storages which have sorting lines; 2. There are only 3 -4 cold storages with the systems of fast freezing (precooler); 3. There are only 3-4 cold storages which have the lines of carton box formers according to the international standards (tray former); 4. There are only 3 cold storages which have CA/ULO atmosphere control systems. Besides, due to the fact that according to the scenario 2 (optimum) it is planned to have a packing house near the cold storage, it would be appropriate to analyze the following advantages of this activity, which will directly affect the analyzed market (Table 35). Table 35. Advantages of packing house. Characteristics: Consolidation of available volumes of fruits and vegetables Application of modern technologies of sorting, storage and packaging Scale economies during materials procurement and products sales Manner of informing farmers regarding market demands Result/advantage: Access to market segment with application of modern trade formats Higher prices for delivered production Lower operating costs without prejudicing profitability of agricultural producers Operative adjustment of production activity to market demands
Thus, construction of the cold storage and a packing house will allow for the sale of products not only on the local market but also for export. The end consumers focus on naturalness, while importers
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI focus on a longer time of the products preserving. The focus can be made both on CIS countries and Europe. Factors which determine the consumers to increase fruit and vegetable consumption during winter are the following: numerous changes in the economy, deterioration of general ecological conditions, change in living system and consumers awareness. The factor that determines the choice of fresh fruits and vegetables in favor of processed ones is beside the increase in prices for processed products, the latter loses qualitative tastes and vitamin contents. Another factor in favor of fresh fruits and vegetables to be chosen by the end consumer is fast preparation and use for food. 5.4. Identification of potential resident enterprises
Resident enterprises can be divided into four categories for the industrial park which will be created on the territory of CAAN JSC: A. Enterprises which will use refrigerating areas and services of packing house provided by the managing enterprise. The cold storage will be placed in the production block 1 with the capacity of 30 thousand tonnes with the following dimensions: area - 14 400 m2, volume- 155 520 m3 Specialization of the companies from this category storage and preservation of fruits, vegetables, berries, table grapes, etc. B. Current enterprises, with a division of specialized companies into refrigerating direction and other companies which, if necessary, may be transferred to other production areas. Enterprises which are involved in the main production activities: Production of industrial freezing equipment. The range of products is focused on the satisfaction of the requirements of enterprises from agricultural and trade sector in the field of: freezing and storage of food products at low temperatures, storehouses for food products storage, shops, restaurants, etc.; climate control facilities for technological production; freezing equipment for products storage at various stages of production processes. Services of installation, adjustment and maintenance of freezing equipment. Enterprises with other directions of activity: Production of furniture, joinery from aluminium and PVC. Range of products is focused on the satisfaction of the consumers needs in the sphere of production of office furniture; home furniture; etc. Production of viticultural equipment and bottles production. Metal processing and production of metal goods, aluminium profiles. Repair, installation, storage of furniture. Repair, installation, storage of viticultural equipment, bottles storage. Repair, installation, storage of metal goods. Enterprises with supplementary activities: Transportation and motor-repair services. Catering services and festive organization (canteen, festive hall ) Terminal services; Handling and storage services; Brokerage services; Hotel services.
81
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI C. New enterprises, the activities of which will be determined according to the value chain (production, repair, installation, maintenance of freezing equipment). D. New enterprises with other types of activities, for the full use of the available spaces.
5.5.
Identification of the sources of financing
Taking into account that during implementation of the present project Feasibility study of industrial park creation at CAAN JSC from Straseni the owner has been changed and at the auction of December 7, 2010 the share of the state was sold to a private investor, therefore, the financing for creation of the industrial park from the state resources becomes inappropriate. The sources of financing for the creation of the industrial park infrastructure can be determined in the following way: Option 1. Own sources of the owner Option 2. Own sources and sources from sales of real estate which is not important for the industrial park development Option 3. Own sources and borrowed sources Option 4. External investments (foreign and/or local, on the part of potential residents and/or non-resident investors interested in the parks activity, as well as from obtained unrecoverable funds such as grants) Table 36. Comparison of options of financing.
Option 1 Advantage Disadvantage Advantage Option 2 Disadvantage
- Possibility of prompt - Risk not to have - Freedom of actions - Risk of failure to sell unused assets; and unlimited sufficient which the private - Expenses related to the sale of unused access to own sources of investor can enjoy; assets which may result in the sources of financing; - Possibility to identify increase of assets price which will financing; and access condition the decrease in their - Financial and additional competitiveness. decisional independent independence financial sources. - Possibility to make decisions in short time; - Financial decisional independence. and
Table 36. Continuation.

Option 3 Advantage - Possibility of prompt and unlimited access to own sources of financing; - Access to borrowing (credits) Disadvantage Risk of failure to identify and attract potential investors; Long time required for Advantage Access to nonrecoverable funds; Possibility to obtain additional Option 4 Disadvantage Funds may be withdrawn by penalties applied in case of non82
in case of insufficient own funds; - Existence of various commercial, financial structures able to provide credits which allow negotiating the rate of bank interest. - Increase in the managing enterprises capacity of financing from borrowed sources. - Possibility to cover in short time and in full amount the needs of financing for the creation of the industrial park. accessing to bank credit. sources residents; from observance of the assumed conditions; Risk of failure to attract a sufficient number of residents or residents with poor financial capacity; Risk of failure to identify nonresidents interested in the park development
Financing of technical and production infrastructure of the industrial park as well as modernization of its utilities directly depends on the scenario selected for the park creation. Conclusions: In order to ensure the optimal scenario development frameworks, the variant of financing from own sources of the owner and from the sources borrowed by him (Option 3) is considered to be efficient (as it is demonstrated in calculations of financial forecasts). In this case the borrowed capital will make up about 37% of the amount of investments (see chapter 7 of the present study). If variant of financing from own sources of the owner and from the sources borrowed by him (Option 3) cannot be implemented, all the possible options will be applied at the stage of implementation. 5.6. Organization of the industrial parks activity
With the view to implementing the project of the industrial park creation and proceeding from scenarios and options identified as optimal, we can conclude the Administrator of the industrial park will be represented by CAAN JSC, the shareholders of which are private individuals and legal entities of private law. In order to ensure the functionality of the industrial park, the parks Administrator will receive the right to use the area, within which the industrial park will be operating. This requires the industrial parks Administrator to file an assignment application to Straseni Local Council regarding the lease of the area and on the basis of the assignment decision of the Local Council a contract of lease should be concluded with the Mayors office of Straseni. The term of the contract of lease should be not less than the period for which the industrial park is created, that is 30 years (the conditions for the area transmission will be determined by the owner of the corresponding area). Upon approval of the scenario of the industrial parks activity, various categories of areas should be delimited depending on their further use: Areas intended for production activity, Areas intended for production activities and maintenance of freezing equipment Areas intended for other production activities (furniture production, non-standard equipment, etc.) Areas intended for offices, other types of activities (services, trade, IT, or other adequate activities, areas intended for customs control zone).
83
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Activities of rendering IT services represent an opportunity since this sector is currently growing. At the same time, since the region has new specialized human capital and it is near to Chisinau, it allows for an adequate use of the administrative areas of the enterprise for the development of this type of activity. At the initial stage of the industrial parks activity, models of cooperation among the residents will be established. If necessary, some current residents may be transferred to other available areas to release the areas for planned activities. Adequate placement of the industrial parks residents will be arranged by its Administrator as a result of specific nature of the activities carried out by the economic entities. The managerial team will be headed by the director of the managing enterprise. The activity of the managing enterprise, including at the initial stage of the industrial park creation is classified by the following activities: Ensuring of reconstruction and modernization of the existing spaces and their lease (for existing and newly attracted residents ); Ensuring of construction and lease of spaces of freezing equipment for agro-food products preservation; Activity of sorting and packing houses for vegetables and fruits; Consulting services (juridical, accounting, etc.). Services within customs control zone.
For the management of the industrial parks activities, it is appropriate to reorganize the organizational structures existing in CAAN JSC into organizational structure of the managing enterprise (the figure below). The staff of the managing enterprise is planned to be about 40 people. Figure 26. The organizational structure of the managing enterprise
MANAGING ENTERPRISE
Marketing department
Real estate department
Development department
Administrative department
Promotion Attraction of residents Information
Accounting Space management Infrastructure management
Legal Business Technical consulting
Secretary security sanitary services
Source: Developed by ProConsulting
The managing enterprise will have the following responsibilities and obligations: Coordination of the process of creation of the industrial parks infrastructure, Elaboration of the strategies for the industrial park development, Attraction of investors for the development of industrial parks activities, Organization of operational activities of the industrial park,
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Cooperation with the specialized central bodies of public administration and with the local public administration in direction of efficient development of all activities of the park, Development of plans of informatization and promotion of the parks activities to attract potential residents, Organization of competitions for selection of optimal residents of the industrial park, Ensuring of functioning of utility networks according to the technical requirements, Sustainable development of production infrastructure according to the technological needs, Ensuring of contract conditions observance by the resident enterprises. Operating revenues of the managing enterprise of the industrial park where technical and production infrastructure is created on the account of the private investor will be obtained from the lease of areas on the territory of the park as well as from production activity and from the activities of rendering consulting services and other services, as appropriate. Within the previously mentioned responsibilities by the managing enterprise the following table provides a list of services and a brief description of their relevance for the managing enterprise as well as for resident members of the industrial park. Table 37. Services of the managing enterprise.
Service Services of cold storage and packing house Lease of refrigerating areas and services of the packing house Main services Provision of utility and communication infrastructure Complex provision of industrial production, storage and administrative areas Preparation of production areas according to the preferences of potential residents Possibility to offer prepared and unprepared areas (as appropriate) with the whole utility infrastructure. Ensuring of participants (resident enterprises) attraction in the industrial park. Acquisition of additional income from execution of works for area preparation. Acquisition of incomes from the parks administration as a source from exploitation of a trade or real estate object. Guarantee of conditions for immediate launch of production activities. Ensuring of all the conditions for launching production operational activities. Possibility to carry out production activity according to the conditions imposed by the resident enterprise and peculiarities of the production process. Relevance for managing enterprise Acquisition of incomes from the main activity, extension of the experience in the field and attraction of residents on the line of value chain Relevance for resident enterprises Provision of modern conditions for product storage and packing, relations of cooperation between enterprises on the refrigeration chain.
Total or partial arrangement of the territory and areas (reparation services, etc.) Provision with electricity up to the entrance to the production area itself Heating Hot and cold water supply Telecommunication services Air-conditioning Maintenance of common zones, solid wastes management Fire protection Provision of guarding and security system Provision of health care services (first-aid station) Additional services Consulting Staff recruitment, organization of specialized training sessions Assistance regarding safety measures Legal consulting Technical, technological consulting,
Guarantee of rendering an assigned volume of services provided for resident enterprises and obtaining a safe source of income from further exploitation of the provided services.
Benefits from business service according to modern standards.
Higher level of maintenance of the industrial parks participants
Improvement of the quality working conditions of the staff
of
Additional sources of income on the account of expansion of the sphere of services provided to the parks residents.
Provision with the additional conditions for business development from enjoying qualified services.
85
organization of specialized training sessions Financial consulting, book-keeping Services of business assistance (secretariat, Xerox, fax) Other services (services of transportation, services of terminals, services of handling and storage, services of brokers, hotel services)
6. ACTION PLAN 6.1. Legal Action Plan
In order to create the Industrial Park, legally the distribution of actions necessary for the strategic implementation of the project include: Table 38. Legal Action Plan Block Period Executors Deliverable
Block I. Adoption of Decision on creation of industrial park

Development, of study-based informative materials in order to submit them to the general meeting of CAAN JSC shareholders in order to adopt the decision on priority directions of development. Convening the general meeting of CAAN JSC shareholders in order to adopt the decision on priority directions of development, to adopt the GMS decision, including the completion of Articles of Association with types of activities related to management of companies and its internal reorganization. Making public the decision to all stakeholders, including local public authorities. Initiation of internal reorganization of the company. General Director Agenda of the General Meeting with attached materials.
May 2011
May 2011
General Director
GMS decision on the adoption of new development priorities by creating industrial park, including the completion of the Articles of Association with types of activities related to management of companies and its internal reorganization.
May 2011
General Director
Information provided by stakeholders, including that published in the media.
May-June 2011
General Director, Lawyer
Implemented reorganization.
Preparing materials necessary for creation of the park and submission to the Local Council.
May 2011
Lawyer, department heads, General Director
Copies of the GMS decision, of documents of acts confirming land ownership, of excerpts from the TCO.
Filing with the Local Council the application to create the park and establish a Committee for creation and operation of the industrial park, with attached materials.
June 2011
General Director
The application and related materials filed with the Local Council.
86
Approval of the decision of the Local Council on the creation of industrial park and establishment of the Committee for creation and operation of the industrial park. Establishment of the Committee for creation of the industrial park. Decision of the Local Council to approve the application and create the Committee adopted and published in the local media.
July 2011
Local Council
July 2011
Mayor
Order of establishing the Committee and creation of the Committee
Filing with the Straseni Local Council the application on leasing land and adoption of such decision
July 2011
General Director
Decision to lease the land approved and communicated to the "CAAN" JSC and passed for execution to Mayor of Straseni
Signing the land lease contract July 2011
General Director and Mayor of Straseni
Land lease contract signed, authenticated and registered with Straseni TCO.
Preparation of materials necessary for obtaining the title of industrial park
July 2011
Lawyer, department heads, General Director
a) copies of the acts of incorporation of the managing company; b) copies of documents confirming the right of use for at least 30 years or ownership of land and buildings for the creation of industrial park; c) plan of location of the land designed for the industrial park; d) declaration of land tenant or of owner regarding the conditions set out in art. 5 let. a) and b) e) approves of owners of public utility networks; f) cadastre file on changing land use or authorization for construction of the objective; g) approval of the local council under whose jurisdiction the land for industrial park is; h) feasibility study on creation of the industrial park. Application filed and registered with the ME with materials described above.
Submitting to the Ministry of Economy, the application for obtaining the title of industrial park. Obtaining the title of industrial park.
August 2011
General Director
September 2011
Ministry of Economy
Title of the industrial park.
Block II. Activity planning and establishing collaborative relationship

Development of the activity plan. June 2011 General Director Developed plan.
Adoption of the activity plan of the Company Board. Filing requests with the Local Council on privatization of land designed for existing construction (for new construction,
June 2011
Company Board General Director
Adopted plan.
July 2011
Registered decision.
application
and
recorded
87
additional requests shall submit). Development of procedures of park activity and principles of collaboration with park residents. Lawyer, department heads, General Director of the managing enterprise Drawing up contracts for collaboration with residents. SeptemberOctober 2011 Lawyer of the managing company General Director of the managing enterprise Models of drawn up contracts. Developed textbook. and adopted procedures
SeptemberOctober 2011
Signing contracts with residents
October 2011permanent
Signed contracts
Table 39. Schematic presentation of the legal action plan

May June July August September October
SCHEMATIC PRESENTATION OF THE LEGAL ACTION PLAN
2011
Block I
Development, of study-based informative materials in order to submit them to the general meeting of CAAN JSC shareholders in order to adopt the decision on priority directions of development. Convening the general meeting of CAAN JSC shareholders in order to adopt the decision on priority directions of development, to adopt the GMS decision, including the completion of Articles of Association with types of activities related to management of companies and its internal reorganization. Making public the decision to all stakeholders, including local public authorities. Initiation of internal reorganization of the company. Preparing materials necessary for creation of the park and submission to the Local Council. Filing with the Local Council the application to create the park and establish a Committee for creation and operation of the industrial park, with attached materials. Approval of the decision of the Local Council on the creation of industrial park and establishment of the Committee for creation and operation of the industrial park. Establishment of the Committee for creation of the industrial park. Filing with the Straseni Local Council the application on leasing land and adoption of such decision Signing the land lease contract Preparation of materials necessary for obtaining the title of industrial park Submitting to the Ministry of Economy, the application for obtaining the title of industrial park. Obtaining the title of industrial park.
Block II
Development of the activity plan. Adoption of the activity plan of the Company Board. Filing requests with the Local Council on privatization of land designed for existing construction (for new construction, additional requests shall submit). Development of procedures of park activity and principles of collaboration with park residents. Drawing up contracts for collaboration with residents. Signing contracts with residents
88
6.2.
Operational Action Plan
6.2.1. Activities necessary to rehabilitate constructions and objects belonging to the Straseni "CAAN" JSC 1. Development of study in accordance with Constriction Rules of the RM "Construction design. Instructions on the procedure of development, endorsement, approval and framework-content of the construction project documentation CRM A. 07.02.-99, art. 4.1. 2. Development of Documentation on assessment of environmental and social impact / (according to art.13, Law RM on the quality of construction no.721-XIII from 02.02.96) 3. Performance of technical expertise of basic constructions and drawing up technical expertise report - TER (art. 3, p.c., Law RM on authorization of execution of construction works no.163 from 09.07.2010) 4. Obtaining the certificate of urbanism - CU (art.6, p.2, Law RM on authorization of execution of construction works no.163 from 09.07.2010) which is attached to the land location plan indicating its size / boundaries, sanitary, approval; environmental approval; fire service approval (art. 6, p.2, Law RM on authorization of execution of construction works no.163 from 09.07.2010) 5. Based on the CU the applicant / beneficiary will obtain (art. 10, p.1, Law RM on authorization of execution of construction works no.163 from 09.07.2010): notes of connection to utility networks; - plan of tracking network; - topographical survey; - geotechnical prospectings. 6. Drawing up design documentation (art. 13, Law RM on the quality of construction no.721-XIII from 02.02.96) 7. 8. Approval of design documentation by the town's Chief Architect (art. 11, p.a., Law RM on authorization of execution of construction works No.163 from 09.07.2010) Verification of design documentation by project inspectors accredited or by institutions authorized in this field (The Government Decision on ensurance of the quality of construction no. 361, dated on 05.06.1996) - the designer is responsible for submitting the technical design for verification (according to the chap. I, art.11 annex no. 1 to the Government Decision RM on construction quality assurance no.361 from 25.06.96) Approval of design documentation by the beneficiary. (art. 11, p.5, Law RM on authorization of execution of construction works no.163 from 09.07.2010)
9.
10. Signing by the beneficiary and the designer the contract on the author supervision (art. 12, p. 1, f), Law RM on authorization of execution of construction works No.163 from 09.07.2010) 11. Obtaining the construction authorization (6 preliminary necessary documents, including those of p. 5 above, art. 12, p.1, Law RM on authorization of execution of construction works no.163 from 09.07.2010) 12. Registering a building permit from the State Construction Inspectorate (art. 12, p.10, Law RM on authorization of execution of construction works no.163 from 09.07.2010) 13. Signing by the beneficiary and technical responsible officer the contract on verification of construction works (chap. IV, art. 42 of the annex no.1 from Government Decision RM on construction quality assurance no.361 from 25.06.96)
14. Notification of the State Construction Inspectorate on the commencement of construction (art. 23, p.1, Law RM on authorization of execution of construction works No.163 from 09.07.2010) 15. Carrying out the construction process, drawing up technical books of construction (chap. III, art. 22, g, Law RM on the quality of construction no.721-XIII from 02.02.96) 16. Final reception (Government Decison RM on receiving the approval of construction and installations no.285 from 23.05.1996) All these activities can be grouped into the following main stages with respective terms . Table 40. Action Plan for rehabilitation of enterprise's infrastructure and constructions
No. Activities Development of (pre-) feasibility study including determination of economic effects (1-2) Performance of technical expertise and obtaining documents and agreements necessary for designing (3-5) Designing, prospecting works, copyright control, its expertise and obtaining necessary approvals (6-12) Performance of the construction and assembly works (13-15), of which: - Building access roads - Building external networks - Repairs on production halls - Repair of administrative + auxiliary buildings - Building of internal roads Acceptance of completed works and drawing up documents Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
4 4.1 4.2 4.3 4.4 4.5 5
6.2.2. Information and promotion actions Creating an effective industrial park needs attracting resident companies for most efficient use of available space. In order to achieve this goal, broad information on creation of the park's, its fields of activity, benefits for resident companies, participation conditions for new companies, etc. is needed. The information campaign includes the following activities: Developing and publishing an informational booklet about the industrial park , Placing appropriate information in the media (advertising in newspapers, magazines, TV, radio, etc.) , Development of the park presentation for beneficiaries and authorities, Presentation of information within various specialized meetings, to local authorities, concerned ministries etc., Development of a web-site and its promotion, Promotion of the park at specialized exhibitions (e.g. Made in Moldova, Agroteh, etc.) both in Moldova and at international (branch) exhibitions, Development of basic principles for the industrial park participants (type of activity, requirements towards participants, etc..), Direct information delivery to companies, which could be included in the park,
90
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI The activities will be carried out consistently throughout the entire period of the industrial park construction, until the completion of the available park areas available with appropriate resident companies and in case of the need to attract new residents with specific parameters. 7. FINANCIAL AND INVESTMENTAL DIAGNOSIS 7.1 Estimation of the necessary volume of investments Creation of any industrial park provides for the allocation of additional funds to create related facilities or new investments in infrastructure designed to generate additional income from use and ultimately create added value. The data presented in chapter 2 of the study shows that "CAAN" JSC has a vast set of buildings in a more or less good condition. Based on the assumptions that the total area of buildings makes up about 75 000 m2 distributed mainly as follows: Building 1 34 560 m2 Building 2 10 454 m2 Building 3-6 718 m2 Administrative Building 5 760 m2 Other buildings 17 455 m2. Most of the investment will target the restructuring of production capacities based on the optimum scenario for which a complex of positive effects was identified with immediate positive impact on the economic and social environment. Overall analysis of the assets of "CAAN" JSC reveals that around 17 700 m2 out of the available area are subject to land lease contract with the companies currently working on these areas and that will become residents of the new industrial park. For the efficient use of available spaces, it is proposed to create a mega-complex with a cold storage with a capability of 30 000 tonnes of fruit an area of 14 400 m2. At the same time, in order to ensure full service and necessary for future tenants of the cold store rooms, it is proposed to build rooms for sorting and packing fruit and vegetables. The space needed to set up the packing house (room) will make up 10 080 m2, and all will be created in the main building no. 1 that is the largest one (Lxlxh = 144x240, 8x10, 8 m). Investments in creation of cold storage buildings, based on projected area, amounts to 9 million EURO given the fact that the estimates of expenses for purchasing the entire set of machinery and refrigerating machinery, make up an average of 300 EURO per square meter (Tables below, and Annex 4. ). Table 41. Investment structure
Investment objectives Investment in construction of the refrigerator, including cold store machinery cold store machines Investment in the construction of a packing house, including Machinery for packing house packaging machines Investing in creating utilities (road, sewerage, water, gas, etc. .) Investing in repair of building Total 10 080 Area (m2) 14 400 Total investment 9 000 000 5 400 000 3 600 000 3 265 920 1 959 552 1 306 368 1 111 247 14 217 109 27 594 276
50 020
In order to create the complex of rooms for the operation of packing houses it is foreseen to provide an allocation of 3 265 920 EURO taking into account the fact that packing houses do not need cold storage complexes and specific storage technologies, about 40% of expenses are made for the purchase of equipment for sorting and packaging fruits.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI The created cold store facilities are factors that can contribute to achieving the main goal for which industrial parks are built - creation of an industrial sector in Moldova's economy which shall contribute to sustainable development of the gross domestic product by developing export-oriented production. At the same time, these investments need to be supported by additional costs in creating internal and external utilities of the industrial park. A very important component of future activity of the park is renovation of all remaining available areas (which would occupy an area of about 50 020 m2). According to preliminary calculations, the renovations would amount to 14 217 109 EURO, which equates the total estimated costs of about 4 500 MDL / m2. (estimate of expenditure see Annex 3). Table 42. Amount of repair work
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Building Name Production building no. 1 Production building no. 2 Production building no. 3 Sanitary building Administrative building Canteen Interior roads - 2 km Access road - 0.8 km Local Road - 1.7 km Water supply networks Sewerage system Gas supply networks Heating systems Land management Designs and expertise works Total U.M. m2 m2 m2 m2 m2 m2 m2 m2 m2 m m m p Quantity 34 959,5 10 599 4 861 5 929 12 376 2 377 10 000 5 760 12 240 1 800 2 000 1 500 10 Estimated cost per 1 u.m., th. MDL 2,80 2,80 2,50 8,00 8,00 8,00 0,42 0,52 0,32 0,30 0,25 0,30 330,00 Total amount, th. MDL 97 886,6 29 677,2 12 152,5 47 432,0 99 008,0 19 016,0 4 200,0 2 995,2 3 916,8 540,0 500,0 450,0 3 300,0 300,0 21,65 343 140
A specification that may be mentioned is the fact refers to the fact that the amount of 97 886 600 MDL reflected as expenses for the repair of the Building 1, will not be considered since the construction of cold storage rooms will be carried out in this building, and this amount is already included in investment costs. The fourth component of investments in the parks activity aims its proper use. At the same time, creation of utilities is a component required by applicable law on creation of industrial parks, component that provides for a contribution of government authorities limited to investment budgets for the related region or field. Creation of the network of park-related internal and external roads, better to say their renovation, creation of a water supply system and a sewage treatment plant are urgently needed for the activity of the industrial park since attracting strategic investors for both park administrator and for the entire economic region or zone is a necessary condition in the context of creating the industrial park. Finally, it should be noted that investment in the industrial park created within the territory of CAAN JSC amounts to 27 594 276 EURO. Given the necessary investments to be made and the need to allocate them in a relatively short period of time, they will be made in stages: Stage I Spring - summer 2011 The construction of the cold storage complex and of the packing house on 50% of the area foreseen for these facilities, would allow storage of 15,000 tons of fruit during the season of 2011- 2012.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Creation of utilities and repair of buildings. Based on the assumptions related to the fact that investment in the repair of buildings and available facilities will attract more investors, it is expected that about 65% of these expenses will be made during the year 2011, and the remainder will be completed during the year 2012. Stage II Spring - summer 2012 It is expected to expand cold store capabilities up to 30 000 tonnes of fruit, coupled with an extension of the packing house facilities, so that beginning with the season of 2012-2013 the managing company of the industrial park could be able to operate at maximum capability. These stages and their contents may change, given the financial vision and possibilities of the managing company.
7.2 Financial Plan 7.2.1 Forecast of the managing enterprise income
The optimal scenario recommended for the operation of the industrial park involves a direct effect on the future activity of the managing company of the industrial park "CAAN" JSC. The income of the managing company of the industrial park will be established based on 4 basic activities (Annex 7. Forecast operational income (VAT including) Table 43. Forecast income of the managing enterprise, thousand MDL (including VAT)
Income 1. Income from lease of available spaces, including - current residents - new residents 2. Income from the refrigerator 3. Income from the operation of the packing house 4. Income from consulting and other services * Total 2011 8 152,3 4 428,3 3 724,1 20 250,0 1 125,0 150,0 29 677,3 2012 14 425,4 4 649,7 9 775,7 51 933,9 12 562,5 157,5 79 079,3 2013 15 146,6 4 882,1 10 264,5 64 992,4 24 825,0 165,4 105 129,4 2014 15 904,0 5 126,3 10 777,7 68 242,0 26 066,3 173,6 110 385,9 2015 16 699,2 5 382,6 11 316,6 71 654,1 27 369,6 182,3 115 905,2
Table 43. Continuation

Income 1. Income from lease of available spaces, including - current residents - new residents 2. Income from the refrigerator 2016 17 534,1 5 651,7 11 882,4 75 236,8 2017 18 410,8 5 934,3 12 476,6 78 998,6 2018 19 331,4 6 231,0 13 100,4 82 948,6 2019 20 297,9 6 542,5 13 755,4 87 096,0 2020 21 312,8 6 869,7 14 443,2 91 450,8 93
3. Income from the operation of the packing house 4. Income from consulting and other services * Total 28 738,0 191,4 121 700,4 30 174,9 201,0 127 785,4 31 683,7 211,1 134 174,7 33 267,9 221,6 140 883,4 34 931,3 232,7 147 927,6
*Amounts are estimated only for consulting services because of the lack of data for other types of services. 1. Income from real estate leasing (See Annex 6. Income from lease of available spaces ) Currently, "CAAN" JSC has leased about 17 700 m2 of its total space of 74 500 m2. Of the remaining space, 24 480 m2 will be occupied by the cold storage complex and the packing house, while the area of park administration will cover about 1000 m2. This would amount to an area of about 31 000 m2 available for leasing. The lease payment for the park residents will vary based on the following categories: - for existing companies the lease payment will amount 250 MDL / m 2 per year, following a growth trend of 5% annually for each year. - for new attracted companies a price of 300 MDL / m2 per year will be set, which will follow a growth trend of 5% annually. The proposed minimum price of 250 MDL / m2 per year was estimated for the following reasons: according to the study of the market of industrial space lease, it was identified that the price for such services in the towns of the republic (Straseni, Calarasi, Cahul, Ungheni) falls between 1.3 to 1.6 EURO/m2 per month, or 250-307 MDL / m2 per year. This price may be paid provided that an adequate infrastructure of company is created (roads, water, sewage, etc.). The increase in price must be directly related to the conditions created for resident companies. Classification in categories of residents takes into account the fact that current companies have already invested in the infrastructure of real estate, due to which these spaces will not be subjected to renovation. Other available spaces will be leased to the extent they will be repaired and restored. For the year 2012 a level of 40% of available spaces occupation is expected, and in the following years these spaces will be completed up to 100%. In this respect, the income from available spaces leasing will exceed 8.1 million MDL for the year 2011, 14.4 million MDL for the year 2012 reaching 21.3 million MDL at end of the year 2020. In terms of categories, this income will be relatively distributed in 32% of revenues from space leasing for existing companies and the other 68% being revenues from spaces leasing to new attracted companies. 2. Revenues from refrigerator and operation of packaging (See Annex 5. Provision of fruits storage and sorting services in the industrial refrigerator) As mentioned in previous paragraphs, the maximum storage capacity of refrigerators will make up 30 000 tonnes of fruit (apples), volume that will be available at maximum capacity in late 2012. In this regard, the price for storage of fruits and vegetables will focus on an average price of 0.30 bani / kg per month. Taking into account that a volume of 15 000 tonnes of fruit will be available in autumn 2011, revenues from the operation of refrigerators will be available by the end of August 2011 when harvesting of apples and other fruits likely to be stored in the refrigerator will start. Refrigerator operation is scheduled for a period of 10 months each year, sanitation and restoring works will take place in April - May - June, or within a 60 day period between these three months. During summer early fruits and vegetables will be stored in the refrigerator that have a relatively short storage period (usually two months), which will allow obtaining revenues during summer. In
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI this regard, for 2011 revenues from cold store spaces will make up 20.2 million MDL, following an increase of up to 51.9 million MDL in 2012, 91.4 million MDL respectively at the end of 2020. With reference to the operation of sorting and packing house for fruits and vegetables, currently forecast takes into account only the amount of stored fruits given the maximum cold store capabilities. The pessimistic forecast of these revenues determines an average price for sorting and packaging in the amount of 50 MDL per kg, which would generate a sales volume of 1.1 million MDL from this activity at the end of 2011, 12.6 million MDL respectively in 2012 and increased up to 34.9 million MDL at the end of 2020 correlated with an annual growth of 5% for provision of the respective service. 3. Income from providing consulting and other services Income from the companys consulting activity focuses on provision of the respective services provided mainly to industrial park residents. These services are focused on technical consulting services, accounting services, various legal services or others as well. A pessimistic 29% forecast of these services would indicate a sales volume of about 150 000 MDL per year, which will reach 232 700 MDL at the end of 2020.
Direct expens C. Dir. es
C. exp. Indir t
Indirec
Ch. Com. ercial
Comm
Gene
CGA ral &

admi nistr.
Other Alte. Ch. Op.
1% 66%
4% 0%
7.2.2
Forecast of expenses of the managing enterprise
The activity of the managing company is given by its specificity - the company uses huge spaces for leasing to the industrial park residents. This activity is crucial and involves a specific assignment of expenses (see Annex 8. Forecast consumption and expenses (VAT including). Leased available spaces are not liable for additional expenses, the amount of expense is calculated as accumulated physical and moral wear (Annex 14. of wear). In this regard, cold store machinery has a service life of 10 years, which explains the fact that indirect consumptions have the largest share of 66% of total output. Direct expenses include expenses related to current operation activity, which preponderance is determined by provision of consulting services: In relative terms this consumption falls within 2-3%. The bulk of the salaries represent salaries of operational staff (about 10 people) with an average annual gross salary of 3 000 MDL. Other expenses, incurred by company refer to promotional costs and costs for attracting new residents, amount to 80-100 thousand MDL per year, which would reflect a 0.5% share of the total. Expenses related to the administrative body constitute the second largest component, although compared with a share of 9-10%, "CAAN" JSC as an asset management company does not have any categories of expenses related to production activity, most of them focus on staff remuneration, mainly reflected by the administrative staff, or costs for its maintenance. Thus, out of the total volume of these expenses 79% are expenses for labour remuneration, the others focusing on various categories maintenance, office supplies, communication expenses, taxes, or similar. 7.2.3 Forecast of financial results
Financial results of "CAAN" JSC for the forecast period, are marked by four main areas of activity: space leasing, leasing of refrigerators, activity of sorting and packing fruits and vegetables and consulting services provided by the staff of the company. In this regard, revenues and expenses have been mentioned in previous paragraphs, further paragraphs present dynamics of net financial results. The data represented in the figure below show a favourable situation.
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Figure 27. Dynamics of enterprise's financial results
140 000,0 120 000,0 100 000,0 80 000,0 60 000,0 40 000,0 20 000,0 0,0 -20 000,0
Net sales
2009 1 967,0 927,9 -331,0
2010 2 154,7 1 012,7 40,8
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
VV, mii lei CV, mii lei

Cost of sales
24 731,1 65 899,4 87 607,8 91 988,2 96 587,6 101 417,0 106 487,9 111 812,3 117 402,9 123 273,0 5 369,7 14 265,0 31 869,2 31 939,6 32 013,5 32 091,1 32 172,6 32 258,1 32 347,9 32 442,2
Gross profit P.Net, mii lei
17 725,4 44 924,9 35 941,4 42 259,3 48 767,0 55 474,1 62 390,6 69 526,9 74 374,0 79 463,5
The data presented in the Figure above shows that new investments made in the created industrial park will lead to achieving net sales in constant growth. Commencement of storage of fruits, vegetables and grapes since the autumn of 2011 will enable the company to generate a sales volume of over 25 million MDL, and subsequently will increase up to123 million MDL, or about 5 times in the 10 years of forecast. Given that the activity of the company is focused on providing services of leasing of available spaces, all expenses related to electricity consumption, staff and others are passed to residents. In this regard, the cost of sales includes current expenses of maintaining the staff directly employed in the production process or usage of fixed assets and equipment which are leased directly. Finally, the net profit obtained by the company is experiencing a positive trend reaching 17.7 million MDL in 2011 and over 79 million MDL in 2020. The trend of increasing net profit is determined by the fact that investments in 2012 are expected to be financed from attracted resources (foreign loans or international projects) on which basis in 2013 interest payments occur directly diminishing obtained economic benefits. As for factors influencing the net profit, the situation is as follows. Table 44. Forecast of financial results for the period 2010-2020, thousand MDL (Annex 10. )
Breakdown of financial results Gross Profit Results from operating activities Results from investment activity Results from financial activity Results of financial and economic activity Income tax Net profit 2010 1 142,0 3,5 37,4 0,0 40,8 0,0 40,8 2011 19 361,4 17 725,4 0,0 0,0 17 725,4 0,0 17 725,4 2012 51 634,4 49 916,6 0,0 0,0 49 916,6 -4 991,7 44 924,9 2013 55 738,6 39 934,9 0,0 0,0 39 934,9 -3 993,5 35 941,4 2014 60 048,6 46 954,7 0,0 0,0 46 954,7 -4 695,5 42 259,3 2015 64 574,1 54 185,6 0,0 0,0 54 185,6 -5 418,6 48 767,0
Table 44. Continuation.

Breakdown financial results Gross Profit 2016 69 325,9 2017 74 315,3 2018 79 554,1 2019 85 054,9 2020 90 830,8 96
Results from operating activities Results from investment activity Results from financial activity Results of financial and economic activity Income tax Net profit 61 637,9 0,0 0,0 61 637,9 -6 163,8 55 474,1 69 322,9 0,0 0,0 69 322,9 -6 932,3 62 390,6 77 252,1 0,0 0,0 77 252,1 -7 725,2 69 526,9 82 637,8 0,0 0,0 82 637,8 -8 263,8 74 374,0 88 292,8 0,0 0,0 88 292,8 -8 829,3 79 463,5
As shown in the Table above, the factors influencing the increase in net profit refers to an obvious increase in gross profit of over 4.5 times in the 10 years of forecast activity, from 19.36 million MDL in 2011 up to 90.8 million MDL in 2020. The operating result of the company, which obviously increases about 4.8 times during the forecast period offering the possibility to cover any losses that may result from differences in exchange rate - a factor that does not dependent of companys management, but of the current situation of the Moldovan economy and national currency instability. An important factor with a less favourable effect is expenses on the income tax from 2012. According to the strategy approved by government authorities, the income tax of legal entities would be reintroduced since January 1, 2011. For reasons related to more active support of entrepreneurs, the income tax at an annual level of 10% will be introduced since January 1, 2012, for which financial results also comprise expenses (savings) on income tax, which amounts are also reflected in the cash flow.
7.2.4
Forecast of cash flow
The cash flow forecast for the period 2010-2020 shows a proper management of inventories and trade receivables able to cover interest payments and loan repayments. The Table below is the summary of cash inflows and outflows. Table 45. Cash flow dynamics, thousand MDL
2011 Operational Activity 1. Total cash earnings earnings from sales 2. Total cash payments - Payments to suppliers and contractors - interest payments - payment of income tax Net flows from operating activities Investment Activity 4. Total cash earnings - earnings from the output of long term assets 5. Total cash payments - payments for purchase of long term assets 6. Net flow from investing activities Financial Activity 7. Total cash earnings - earnings from loans and credits - earnings from the issue of own shares 8. Total payments payments on loans and credits - dividend payment 9. Net flow from financial activities 28 193,5 28 193,5 7 611,6 1 490,0 20 581,9 2012 76 609,2 76 609,2 20 818,2 1 564,5 4 991,7 55 791,0 2013 103 905,0 103 905,0 38 522,2 1 642,7 14 000,0 3 993,5 65 382,8 2014 110 335,3 110 335,3 37 656,5 1 724,9 11 200,0 4 695,5 72 678,8 2015 115 917,0 115 917,0 36 678,4 1 811,1 8 400,0 5 418,6 79 238,6
257 542,3 257 542,3 (257 542,3) 245 000,0 245 000,0 8 039,6
183 966,2 183 966,2 (183 966,2) 140 000,0 140 000,0 11 824,9
45 970,7 28 000,0 17 970,7 19 412,1
49 129,6 28 000,0 21 129,6 23 549,2
52 383,5 28 000,0 24 383,5 26 855,1 97
10. Total Net Flow Exchange differences Cash balance at the beginning of the period Cash balance at the end of the period 8 039,6 9,2 8 048,8 11 824,9 8 048,8 19 873,7 19 412,1 19 873,7 39 285,8 23 549,2 39 285,8 62 835,0 26 855,1 62 835,0 89 690,1
Table. 45 Continuation
2016 Operational Activity 1. Total cash earnings earnings from sales 2. Total cash payments - Payments to suppliers and contractors - interest payments - payment of income tax Net flows from operating activities Investment Activity 4. Total cash earnings - earnings from the output of long term assets 5. Total cash payments - payments for purchase of long term assets 6. Net flow from investing activities Financial Activity 7. Total cash earnings - earnings from loans and credits - earnings from the issue of own shares 8. Total payments payments on loans and credits - dividend payment 9. Net flow from financial activities 10. Total Net Flow Exchange differences Cash balance at the beginning of the period Cash balance at the end of the period 121 716,3 121 716,3 35 767,2 1 901,7 5 600,0 6 163,8 85 949,1 2017 127 802,3 127 802,3 34 935,9 1 996,7 2 800,0 6 932,3 92 866,4 2018 134 192,4 134 192,4 34 189,0 2 096,6 7 725,2 100 003,4 2019 140 902,0 140 902,0 36 050,8 2 201,4 8 263,8 104 851,2 2020 147 947,1 147 947,1 38 005,6 2 311,5 8 829,3 109 941,5
55 737,1 28 000,0 27 737,1 30 212,0 30 212,0 89 690,1 119 902,1
59 195,3 28 000,0 31 195,3 33 671,1 33 671,1 119 902,1 153 573,1
34 763,5 34 763,5 65 239,9 65 239,9 153 573,1 218 813,0
37 187,0 37 187,0 67 664,2 67 664,2 218 813,0 286 477,3
39 731,8 39 731,8 70 209,7 70 209,7 286 477,3 356 687,0
The data presented in the Table above reflect a situation favourable to the companys activity generating sufficient liquid financial resources to cover its immediate payments. The data outlined above show that during the forecast period the company will finance its activity from internal resources generated by its operating activity, as confirmed by the positive value of the cash flow from operating activities during this period. The specificity of funding consist in the fact that during 2011, investment in repair of buildings, creation of cold store complex and packing house will be made by the managing company on the account of associates financial resources. For the year 2012 the expansion of the cold store capabilities, completion of investments in buildings and creation of utilities are expected to be coved from external sources of funding, either being attracting from foreign investors, or being obtained from the resources of international programs, including those related to cross-border funds. In this respect, a maximum interest rate was considered given the market conditions of 10%, the respective expenses being presented as interest expense. Meanwhile, contracted foreign sources are expected to be repaid within a period of five years, credit and loan payments being properly represented. Since the generated revenues are sufficient, and the coverage of all payments and according to the state fiscal policy, since 2012 the tax on income of 10% of the generated profit will already come into force, theses expenses are reflected in the category of payments. Since 2013 the company intend to pay dividends amounting to 50% of the annual profit, for which the investments made by investors will be recovered within about 10 years. Finally it is found that the
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI managing company of the industrial park will generate enough resources and funds to cover all current needs, including distribution of dividends to its shareholders. 7.2.5 Forecast of the balance sheet
Analysis of the structure of the balance sheet of "CAAN" JSC during the forecast period of the investment project reflects a favourable situation, which allows a profitable economic and financial activity. The Table below shows the dynamics of the balance sheet (Annex 11. sheet). Table 46 Dynamics of balance sheet, thousand MDL, 2009-2020
Indicators, MDL Total Assets Long-Term Assets - Fixed Assets Short Term Assets - stocks of commodities and materials - short-term receivables - financial resources Total Liabilities Equity - authorized capital - retained earnings Long Term Debt -long-term bank loans Short Term Debt - debts on commercial bills - short-term calculated debt 2009 25 878,0 24 500,0 87 607,7 1 378,1 668,0 694,0 11,3 25 878,0 25 755,3 30 510,8 (5 124,4) 122,7 4,2 118,5 2010 25 933,9 24 258,4 87 607,7 1 675,5 667,4 994,0 9,2 25 933,9 25 796,1 30 510,8 (5 083,5) 137,8 4,5 133,3 2011 289 124,8 277 692,0 185 735,0 11 432,7 1 801,6 1 577,0 8 048,8 289 124,8 288 521,5 275 510,8 12 641,8 603,3 456,6 146,6 2012 474 109,2 448 733,7 529 116,1 25 375,5 1 347,8 4 148,5 19 873,7 474 109,2 333 446,5 275 510,8 57 566,8 140 000,0 140 000,0 662,7 479,5 183,3 2013 464 113,0 418 272,0 529 116,1 45 841,1 958,6 5 590,9 39 285,8 464 113,0 351 417,2 275 510,8 75 537,5 112 000,0 112 000,0 695,9 503,4 192,5 2014 457 277,5 387 810,3 529 116,1 69 467,2 690,7 5 935,5 62 835,0 457 277,5 372 546,8 275 510,8 96 667,1 84 000,0 84 000,0 730,7 528,6 202,1
Table. 46. Continuation

Indicators, MDL Total Assets Long-Term Assets - Fixed Assets Short Term Assets - stocks of commodities and materials - short-term receivables - financial resources Total Liabilities Equity - authorized capital - retained earnings Long Term Debt -long-term bank loans Short Term Debt - debts on commercial bills - short-term calculated debt 2015 453 697,5 357 348,6 529 116,1 96 348,9 416,8 6 235,6 89 690,1 453 697,5 396 930,3 275 510,8 121 050,6 56 000,0 56 000,0 767,2 555,0 212,2 2016 453 780,9 326 886,8 529 116,1 126 894,1 437,7 6 547,6 119 902,1 453 780,9 424 667,3 275 510,8 148 787,7 28 000,0 28 000,0 1 113,6 890,8 222,8 2017 457 339,9 296 425,1 529 116,1 160 914,7 459,6 6 875,0 153 573,1 457 339,9 455 862,6 275 510,8 179 983,0 1 477,2 1 243,3 233,9 2018 492 485,1 265 963,4 529 116,1 226 521,7 482,5 7 218,8 218 813,0 492 485,1 490 626,1 275 510,8 214 746,5 1 859,0 1 613,4 245,6 2019 530 073,1 235 501,7 529 116,1 294 571,4 506,7 7 579,7 286 477,3 530 073,1 527 813,1 275 510,8 251 933,5 2 260,0 2 002,1 257,9 2020 570 225,8 205 040,0 529 116,1 365 185,8 532,0 7 958,7 356 687,0 570 225,8 567 544,9 275 510,8 291 665,2 2 680,9 2 410,1 270,8
During its activity, the managing company of the industrial park "CAAN" JSC will develop a constant growing business, characterized by its specificity and reflected in the data reflected in financial statements. Thus, taking into account the investments made by the managing company in creating infrastructure, utilities, in repair and renovation of buildings and in construction of the cold store complex and packing house, the property increases from 25.9 million MDL in 2009 up to 289.1 MDL in 2011 and reaches 570.2 million MDL in 2020, reflecting an increase of about 2 times in 10 years (2020 compared to 2011).
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Table 47. Structure of assets for the period 2009-2020
Indicators, MDL Total Assets Long-Term Assets - Fixed Assets Short Term Assets - stocks of commodities and materials - short-term receivables - financial resources Total Liabilities Equity - authorized capital - retained earnings Long Term Debt -long-term bank loans Short Term Debt - debts on commercial bills - short-term calculated debt 2009 100.0% 94.7% 338.5% 5.3% 2.6% 2.7% 0.0% 100.0% 99.5% 117.9% -19.8% 0.0% 0.0% 0.5% 0.0% 0.5% 2010 100.0% 93.5% 337.8% 6.5% 2.6% 3.8% 0.0% 100.0% 99.5% 117.6% -19.6% 0.0% 0.0% 0.5% 0.0% 0.5% 2011 100.0% 96.0% 64.2% 4.0% 0.6% 0.5% 2.8% 100.0% 99.8% 95.3% 4.4% 0.0% 0.0% 0.2% 0.2% 0.1% 2012 100.0% 94.6% 111.6% 5.4% 0.3% 0.9% 4.2% 100.0% 70.3% 58.1% 12.1% 29.5% 29.5% 0.1% 0.1% 0.0% 2013 100.0% 90.1% 114.0% 9.9% 0.2% 1.2% 8.5% 100.0% 75.7% 59.4% 16.3% 24.1% 24.1% 0.1% 0.1% 0.0% 2014 100.0% 84.8% 115.7% 15.2% 0.2% 1.3% 13.7% 100.0% 81.5% 60.3% 21.1% 18.4% 18.4% 0.2% 0.1% 0.0%
Table. 47 Continuation.
Indicators, MDL Total Assets Long-Term Assets - Fixed Assets Short Term Assets - stocks of commodities and materials - short-term receivables - financial resources Total Liabilities Equity - authorized capital - retained earnings Long Term Debt -long-term bank loans Short Term Debt - debts on commercial bills - short-term calculated debt 2015 100.0% 78.8% 116.6% 21.2% 0.1% 1.4% 19.8% 100.0% 87.5% 60.7% 26.7% 12.3% 12.3% 0.2% 0.1% 0.0% 2016 100.0% 72.0% 116.6% 28.0% 0.1% 1.4% 26.4% 100.0% 93.6% 60.7% 32.8% 6.2% 6.2% 0.2% 0.2% 0.0% 2017 100.0% 64.8% 115.7% 35.2% 0.1% 1.5% 33.6% 100.0% 99.7% 60.2% 39.4% 0.0% 0.0% 0.3% 0.3% 0.1% 2018 100.0% 54.0% 107.4% 46.0% 0.1% 1.5% 44.4% 100.0% 99.6% 55.9% 43.6% 0.0% 0.0% 0.4% 0.3% 0.0% 2019 100.0% 44.4% 99.8% 55.6% 0.1% 1.4% 54.0% 100.0% 99.6% 52.0% 47.5% 0.0% 0.0% 0.4% 0.4% 0.0% 2020 100.0% 36.0% 92.8% 64.0% 0.1% 1.4% 62.6% 100.0% 99.5% 48.3% 51.1% 0.0% 0.0% 0.5% 0.4% 0.0%
I. Analysis of assets . The Table above shows the key changes in the structure of assets for the first forecast period - 2011 to 2020. For the period 2011 - 2020, the major changes in the assets of the company are the followings: - Long-term investments in assets made during the years 2011-2012 have an increased share for the first forecast period and, in terms of share in total assets, they are reduced as a result of moral and physical wear calculation; - Short-term assets, which for the first forecast period have an insignificant share, at the end of the forecast period increases considerably. The increase is determined by the accumulation of funds on the settlement account of the company, following a profitable activity. II. Analysis of liabilities . Ownership equity. As a result of investments made from the funds of the managing company "CAAN" JSC, equity value is increased up to 275 million. MDL. Further, the profits generated following the activity and
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI accumulated from one period to another determine an increase in net profit, which implies a final value of 291.6 million MDL in 2020 or 51.1% of the total funding sources. Long term loans. As noted, the investments made in 2012 are expected to be made from external sources: external donors and various regional projects. In this respect, at the end of 2012 the total amount of attracted resources is expected to make up 140 million MDL, which constitutes 29.5% of total funding sources. Loans are expected to be attracted for a period of five years, for which the dynamics of respective loans shows a downward trend and will completely disappear in 2016 with the final instalment payment. Short-term funding sources Like any economic activity, leasing of available spaces is more or less influenced by various purchases. In this regard, in the future CAAN" JSC will have some liabilities that will not affect its paying capacity or significant debt since their weight does not exceed 0.4% of total assets, i.e. the amount of 2 680,9 thousand MDL at end of 2020. 7.2.6 Forecast of financial indicators
Evolution of main financial indicators of the company during the analysis period is presented in the Annex 13. of the business plan. 7.2.6.1 Indicators of profitability Calculations and forests made for an analyzed period shows business profitability and its profitable activity. Table 48. Main indicators of profitability
Indicators Investment Profitability Return On Equity (ROE) 2009 -1% 2010 0% 2011 7% 11% 2012 10% 14% 2013 8% 10% 2014 10% 12% 2015 11% 13% 2016 13% 14% 2017 14% 14% 2018 16% 15% 2019 17% 15% 2020 18% 15%
Return On Assets (ROA) Gross Margin (%) Net Profit Margin
-1% 53% -17%
0% 53% 2%
11% 78% 72%
12% 78% 68%
8% 64% 41%
9% 65% 46%
11% 67% 50%
12% 68% 55%
14% 70% 59%
15% 71% 62%
15% 72% 63%
14% 74% 64%
Return on equity (ROE) is one of the most important indicators of efficiency, being used by owners or potential donors in making an investment decision. During the forecast period a high level of this value of 11%, which is constantly growing determines the profitability of invested funds. Return on assets (ROA) measures the profitability of the project as relative value of the total engaged assets. The ROA indicator has a value of over 8% throughout the entire forecast period, thus confirming the profitability of the business and that a MDL supplemented to the asset will generate a profit of 0.08 MDL within a period of 12 months or 0.14 MDL for the last forecast year. Evolutionally, this indicator has an overall upward trend, which is beneficial, indicating that the direction of companys development is correct. The table shows that the gross profit margin exceeds 60% throughout the forecast period. This fact is positively appreciated as being determined by the growth of sales revenue with a higher rate than the increase in cost of sales during forecast 10 years. This may arise as a result of favourable price conjuncture, but also by increasing the existing volume of demand. Net profit margin is the best method of diagnosing the overall ability of the company to obtain profit, given that costs, expenses, and paid tax are taken into account, and the value of over 41% determines
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI the profitability of the company. This value is specific to companies involved in leasing of spaces available. 7.2.6.2 Liquidity indicators Liquidity is one of the main indicators characterizing the ability of the company to carry out its immediate payments. The indicators characterizing the level of liquidity are the following. Table 49. Main liquidity indicators
Indicators Liquidity Ratio (Coverage) Intermediate Liquidity (Acid Test) Immediate liquidity Working capital (thousand, MDL) 2009 11,23 5,75 0,09 1 255,3 2010 12,16 7,28 0,07 1 537,7 2011 18,95 15,96 13,34 10 829,5 2012 38,29 36,25 29,99 24 712,8 2013 65,88 64,49 56,46 45 145,2 2014 95,07 94,12 86,00 68 736,5
Table. 49. Continuation.

Indicators Liquidity Ratio (Coverage) Intermediate Liquidity (Acid Test) Immediate liquidity Working capital (thousand, MDL) 2015 125,58 125,03 116,91 95 581,7 2016 113,95 113,55 107,67 125 780,5 2017 108,93 108,62 103,96 159 437,5 2018 121,85 121,59 117,70 224 662,7 2019 130,34 130,12 126,76 292 311,4 2020 136,22 136,01 133,05 362 504,9
As shown in the Table above, the overall liquidity (coverage liquidity) for the period 2011-2020 is well above the minimum acceptable threshold (1.5). On the one hand an excessive liquidity is a factor that the company is not able to invest its available resources. On the other hand, the companys specific related to space leasing does not provide any debts to suppliers and the permanence of available cash liquidity reflect indicators much higher than the minimum acceptable values. 7.2.6.3 Indicators of financial stability
In terms of solvency indicators, it can be concluded that for "CAAN" JSC they are acceptable. Table 50. Main indicators of financial stability
Indicators Capital Adequacy Ratio Leverage Ratio Financial Stability Coefficient Interest Coverage Ratio Debt Service Ratio debt service rate 2009 99,5% 0,00 0,05 2010 99,5% 0,01 0,06 2011 99,8% 0,00 0,04 2012 70,3% 0,30 0,05 2013 75,7% 0,24 0,10 4,98 1,46 1,9 2014 81,5% 0,19 0,15 6,36 1,60 2,1
102
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Tab. 50 Continuation.
Indicators Capital Adequacy Ratio Leverage Ratio Financial Stability Coefficient Interest Coverage Ratio Debt Service Ratio debt service rate 2015 87,5% 0,13 0,21 8,69 1,74 2,4 2016 93,6% 0,06 0,28 13,38 1,90 2,7 2017 99,7% 0,00 0,35 27,54 2,09 3,1 2018 99,6% 0,00 0,46 2019 99,6% 0,00 0,55 2020 99,5% 0,00 0,64 -
If we were to consider the company in terms of financial stability, when it is easy to see that funding of the current activity is made mostly from its own resources. Borrowings contracted in 2012 will cause a temporary increase in borrowing up to the 30% of total funding sources, which would not involve the downside risks to the business. The correct funding relation between assets and their sources, determined by the financial stability coefficient confirms a correct management maturity. Although for the first forecast years (2010-2013) the financial stability coefficient has minimum values, further development of the company involves an increase and safety for future periods. The companys ability to pay off the debts of main creditors is determined by the relation exposed through the interest coverage ratio, debt service or RDD. One of the most relevant indicators in this regard is the debt service ratio, which explains the correlation between the generated net profit, and interest and loan payments. Its optimal value makes up 1.2, and the specificity is that the RDD is calculated only for investment projects. In this regard, calculation of the RDD took into account only credit payments related to the investment goals of the company, and its framing within 1.9 to 3.1 confirms once again that credit and interest payments will not threaten its current activity. 7.2.6.4 Turnover Speed Indicators In terms of revenue generation abilities following the use of each component of companys assets, the values of these indicators are given by the companys specificity - lease of available spaces. Given that the available buildings have considerable values (over 400 million MDL), assents indicators will generate enough negative values, but these are obtained in conditions when during income calculation pessimistic options of development were taken into account. Table 51 Main indicators of turnover speed
Indicators Time of turnover of assets (days) Time of turnover of long term assets (days) Time of turnover of current assets Time of turnover of short-term receivables (days) Time of turnover of loan debt (days) Time of turnover of stocks of commodities and materials (days) 2009 4 830,0 4 560,0 269,9 127,7 1,6 267,0 2010 4 388,5 4 129,8 258,6 143,0 1,6 240,6 2011 2 324,9 2 228,2 96,7 19,0 15,7 83,9 2012 2 119,5 2 017,3 102,2 15,9 12,0 40,4 2013 1 954,5 1 806,1 148,4 20,3 5,6 13,2 2014 1 828,0 1 599,2 228,8 22,9 5,9 9,4
103
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Table. 51 Continuation.
Indicators Time of turnover of assets (days) Time of turnover of long term assets (days) Time of turnover of current assets Time of turnover of short-term receivables (days) Time of turnover of loan debt (days) Time of turnover of stocks of commodities and materials (days) 2015 1 721,3 1 408,0 313,3 23,0 6,2 6,3 2016 1 637,5 1 234,7 402,8 23,1 8,2 4,9 2017 1 561,5 1 068,2 493,2 23,0 12,1 5,1 2018 1 550,3 917,9 632,4 23,0 16,2 5,3 2019 1 589,5 779,5 810,0 23,0 20,4 5,6 2020 1 633,4 654,0 979,4 23,1 24,9 5,9
During the forecast period, in terms of turnover speed indicators, an increase in the business dynamics is observed, while most of the indicators indicate decreased duration of rotation. For companies leasing real estate, it is specific that the indicators of the turnover period are relatively high. The main reason is that generated revenues, compared to the balance of available assets, have rather big discrepancy, which is explained by the need of moral and physical wear of buildings within 30 years. 7.3 Estimation of investment efficiency
In any activity, a key factor of the decision to invest or not is given by the future flows generated by the investment. In this respect, it is necessary to analyze the efficiency of investment thought the net present value method NPV (Net Present Value) Table 52. Determination of investment efficiency (Annex 12. )
Investment Value Discount Rate Period of Recoverability Net Present Value Rates of Return Profitability Index I R T NPV RR (PI) 459 905 036 MDL 10% 9,9 years 4 201 022 MDL 10% 1 01
Net Present Value (NPV) is a fundamental criterion for economic and financial evaluation of investment projects. NPV represents the capital surplus for a certain period of investment life. Given the fact that the positive value of NPV is a necessary prerequisite for investment projects, a higher value as it would lead to greater profitability of the project. For the activity of the industrial park formed on the territory of CAAN JSC of Straseni, the total value of investment falls within 27 594 276 EURO (459 905 036 MDL) distributed by components in accordance with the annexes presented in this study. In determining the value of VAN, the following mathematical formula was taken into account:
VAN
VV - sales revenue CT total costs
VV CT I , where t 1 t 0 r
n
r discount rate at a level of 10% t considered year n number of periods
Calculations determine the net value of the NPV in the amount of 4 201 022 MDL. This is an intrinsic value, which confirms the profitability of the business, but does not involve a final decision since there is no any predetermined level of comparison. The value over 4,2 million MDL indicates that the investment will now generate a positive final value within the considered period (10 years).
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Internal Rate of Return (IRR), expresses the level of income equalizing the cost of capital, which equals the updated income with undated expenses, making the amount of income to be equal to zero. IRR is the minimum threshold of profitability of a project, below which it is not effective. The estimated value, calculated depending on the considered marginal criteria, shows for the managing company a level of 10%. Mathematically the value of IRR is expressed by the expression:
with the same meanings of indicators as those mentioned above. The period of recovery of the investment, given the above assumptions, is estimated at 10 years and reflects, in conditions when the discount rate would be similar to the internal rate of discount, the period during which the company would cover all costs of the investment made of profits generated by this investment. The profitability index of the investment is estimated at 1,01 and shows the value of the updated surplus capital per every reinvested MDL. The investment requirement for any investment project is that this amount should be greater than the unit. Given that investments in constructions have periods of recovery of over 10 years and that within the financial calculations the most pessimistic forecasts were taken into account, a 10-year recoverability is acceptable for the companys investments, when in 2013 payments of dividends shall already be made.
105
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI 8 SOCIAL AND ECONOMIC AND ENVIRONMENTAL IMPACT OF THE INDUSTRIAL PARK ON THE REGION
Impact on the country's economic development. Creation of the industrial park has a direct impact on economic development and industrialization of the country through: Creation of a concentration pole of manufacturers, service providers, investors, suppliers and beneficiaries on the territory of the Center development region, which, due to its proximity to the capital, will increase the attractiveness of the region, as well as of the country as a whole; Increase in the economic activities in industry, and therefore the increase of its share in the countrys GDP; Attraction of foreign and private investments, with direct implications in the economic growth of the state, due to the creation of new production capability, more jobs, new consumers and taxpayers; Providing access to distribution channels of foreign investors; Increase in trade balance if they are export-oriented products.; Support of the increase in the revenues to the state budget due to paid taxes and contributions paid (see Table above); Development of infrastructure and upgrading utilities of the industrial park; Depolarization of economic activities in the Republic mainly concentrated in Chisinau Municipality.
Impact on the region. Table 53. Forecast of business growth after creation of the park
Indicators Revenues from sales, thousand MDL Existing companies New companies Managing company Average number of staff, persons Existing companies New companies Managing company Tax and VAT, MDL Existing companies New companies Managing company Health insurance contributions, paid in MDL Existing companies New companies Managing company. Social insurance contributions, paid in MDL Existing companies New companies Managing company 2008 75 880, 2 73 913,1 1 967,0 236 203 33 2009 80 422,6 78 455,7 1 967,0 237 204 33 2010 83 163,0 83 163,0 2 154,7 240 207 33 2011 169 037,5 88 152,8 54 985,0 25 899,8 407 224 143 40 22 404,7 11 684,0 7 287,9 3 432,8 612,0 304,6 194,1 113,4 2 212,9 1 094,4 697,3 421,2 106
252,1 252,1 1 149,2 1 149,2
276,9 276,9 994,9 994,9
280,9 280,9 1 009,6 1 009,6
Table. 53. Continuation.

Indicators Revenues from sales, thousand MDL Existing companies New companies Managing company Average number of staff, persons Existing companies New companies Managing company Tax and VAT, MDL Existing companies New companies Managing company Health insurance contributions, paid in MDL Existing companies New companies Managing company Social insurance contributions, paid in MDL Existing companies New companies Managing company 2012 296 229,8 93 442,0 137 458,0 65 329,8 644 247 357 40 40 716,7 12 385,1 18 219,1 10 112,5 939,2 335,0 485,1 119,1 2 413,1 1 203,8 767,0 442,3 2013 331 761,2 99 048,5 145 705,5 87 007,2 705 272 393 40 46 899,2 13 128,2 19 312,3 14 458,7 1 027,2 368,5 533,6 125,0 2 632,3 1 324,2 843,7 464,4 2014 350 796,9 104 991,4 154 447,8 91 357,6 771 299 432 40 49 770,7 13 915,9 20 471,0 15 383,8 1 123,7 405,4 587,0 131,3 2 872,3 1 456,7 928,1 487,6 2015 370 931,1 111 290,9 163 714,7 95 925,5 844 329 476 40 52 613,7 14 750,8 21 699,2 16 163,6 1 229,5 445,9 645,7 137,8 3 135,2 1 602,3 1 020,9 512,0
Source: NBS and forecasts of ProConsulting
Creation of the industrial park aims to improve social and economic development of the CDR of the Republic of Moldova and efficient use of its resources by: creating within the park over 800 new jobs in late 2015, of which 40 will be provided by the managing company with an average salary of 250 EURO per month; increasing taxes in the state budget amounting to over 22 million MDL in the year of park launch 2011, of which the managing company and resident companies will bring a total of 10 million MDL. The year of valorization and modernization of the entire area - 2012 will record a substantial almost double increase up to 40 million MDL of taxes paid to the budget of the park; increasing medical contributions amounting to over 1 million of employees and employers, by 2015 and social insurance contributions making up over 3 million MDL in 2015) ((see Table 53. Forecast of business growth after creation of the park ). increasing living standards of people in the region, due to provision of stable employment and income; raising the qualification of persons engaged in industrial activities of the park, enhancing professional development of population in the region. attracting new specialists - teachers in the region and integrating of students to carry out their practical work experience within the park; substantial contribution to increasing revenues from sales in the region amounting over 169 million MDL since its launch in 2011, amounting over 296 million MDL in the following year and 370 million MDL in 2015. The contribution of new attracted companies in this regard will make up on average of 60 percent. supporting the region's agricultural complex by using advanced refrigerator and packing house (with a huge capacity of 30 000 tonnes), valued at an estimated amount of over 12 million EURO;
107
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI providing direct access to companies in the region to leasing spaces of the refrigerator in order to store the agricultural production and services of packing house, which will facilitate the collaboration of companies of the same profile and will allow a general increase in the competitiveness of the region; providing companies of the region a territory of activities with upgraded production, spaces for storing finished products and specialized spaces for installing large capacity industrial equipment, as well as office spaces; providing some price discounts for rental payment, insuring utilities (electricity, gas, water, sewerage, access roads on the territory and on the area near the park); insuring companies of the park with access to railway, connection to the capital of the Republic and direct access and connection with no less than 7 districts; insuring safety for property of park residents; providing terminal, handling, storage, brokers, hotels services; providing technical, legal and accounting consulting services on the territory of the park and for companies of the region; increasing export of local enterprises and investment attractiveness of the region due to higher volume of sales within branches, expansion of local marketing of agricultural and industrial products; attracting new and modern technologies in the region and raising the level of innovativeness of products and services in the region; increasing exports of local enterprises and investment attractiveness of the region through increase in direct investments in the region in the amount of about 28 million EURO by the managing company and by potential residents, estimated at around 20 million EURO.
Impact on the managing enterprise will generate: extraordinary increase in sales revenues, which is expected to achieve by 2020 about 95 million MDL, mainly from production activity; use of staff experience and its involvement in leasing refrigerator spaces and packing house, which will bring about 50% of annual return; upgrading existing spaces and normal term of recoverability within 9,9 years of investments; raising efficiency of assets currently available to the company; reduction of the speed of stocks rotation that will lower the risk of aging products and will decrease the innovativeness coefficient of these products; making effective the organizational process and launch of marketing activities and promotion at the company; use of technical, accounting and legal experience of the staff of the company in provision of consulting services.
Environmental impact. The managing company activity related to storage of fruits and vegetables is an activity that has a relatively small impact on the environment, involving the use of substances for the maintenance of refrigeration equipment and eventual wastes formed as a result of packing vegetables and fruits. Therefore the activity, can be classified in category B of environmental risk in conditions when the company strictly monitors the storage and operation processes of teflon-based refrigeration equipment.
108
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI In order to reduce the environmental impact, minimize the risk of air pollution, soil or groundwater, the company will regularly monitor: - waste management - methods and places of collecting and storing wastes of all types generated from storage of fruits and vegetables are identified; - will update sanitary permits for waste management methods; - refrigeration equipment will meet international environmental standards, and they will be annually inspected and checked in order to prevent environmental accidents. Moreover, benefits from implementing industrial park lies in improving the overall infrastructure of the town and region as a whole with positive implications on the environment by carrying out repair of roads, gas and water supply networks, which will also serve a part of neighbouring localities of the industrial park, which will allow reduction of environmental pollution. Moreover, the creation of the industrial park will determine the state authorities to build transport and communication infrastructure facilities, reconstruction of the industrial wastewater treatment plant with beneficial impact on the region. 9 GENERAL CONCLUSIONS In general, the end of this study shows that the concept of building an industrial park on the territory of "CAAN" JSC in Straseni is considered feasible. This conclusion is based on the approaches from the following perspectives: legal and organizational perspective, which denotes the lack of any major impediments to implement this concept, and raising the quality of managing companys management, including by applying marketing and promotion practices; economic and financial perspective, which proved the viability of the project, the benefits of increased economic performance of the managing company, current companies operating on the territory, as well as of the economic potential of resident companies; technical and operational perspective, which proved the positive impact of modernization and capital repairs of the park as a whole, as well as on improving the town appearance and raising the quality of life and the effectiveness of the recoverability of assets invested in these works; market perspective, which shows, in addition to launching production activity (services of the refrigerator and the packing house) for the managing company, the substantial contribution to the creation of refrigerating chain in the region, supporting local agriculture producers, and, respectively, the opportunity to increase national export competitiveness; project impact perspective, which has shown fiscal, social, economic and environmental benefits both at regional and country level.
Finally, it is emphasized that the project of building the industrial park on the territory of "CAAN" JSC in Straseni will be EFFICIENT in conditions of observing: the optimal scenario, proposed action plan and the amount of the estimated investment.
109
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Annex 1. List of long term assets as of October 1, 2010
Types of fixed assets B IV Machinery and equipment, total : including: 1. Machinery and power equipment 10072 10075 10077 10090 10091 10092 11661 10099 10100 10158 10159 10160 10161 10918 11471 11472 11790 11791 12224 12225 SHIELD C 952219 TRANSFORMER 313 160/5 Network Distributor 0,4KW (building no.5 ) RECTIFIER 67/140 RECTIFIER 67/140 80/110 Power equipment DEVICE USING SPRAY ELECTROLESS PLATING-2 N130 * DISTRIBUTION NETWORK 0.4 KW (Building no.2) DIESEL GENERATOR -5 -5.0 STATION 5 48-22 HYDRAULIC STATION 2 48 84 STATION 2 13 26 EQUIPMENT -164 RECTIFIER 67/140 RECTIFIER 90/25 * EQUIPMENT FOR HOT WATER SUPPLY * EQUIPMENT FOR HOT WATER SUPPLY WELDING MACHINE -1230 -303 WELDING MACHINE -350 TOTAL 2. Working machinery and equipment 10076 10088 10089 10153 10169 10176 10180 10181 10197 10170 10187 10188 10189 10190 10191 10198 10204 10205 10210 10212 10213 10214 10216 10217 10225 10227 HIGH-FREQUENCY DEVICE FOR MELTING METALS 60/074 Vulcanizer medium sett. RECTIFIER 150/18 REFRIGERATING UNIT. -800 BENCH-TYPE DRILLING MACHINE 2 112 HYDRAULIC PRESS . 2135 LUBRICATING REFUELLING UNIT -101 OIL-FILLING PUMP 3155 WELDING MACHINE -504 DRILLING MACHINE 2 -53 OVERHEAD CRANE / 1 OVERHEAD CRANE / 0.5 OVERHEAD CRANE / 0.5 OVERHEAD CRANE / 0.320 OVERHEAD CRANE / 2 WELDING MACHINE -312 HORIZONTAL MILLING MACHINE 6 -82 HORIZONTAL MILLING MACHINE 6 -80 CYLINDRICAL GRINDING MACHINE 3 -12 CYLINDRICAL GRINDING MACHINE 3 - 151 SURFACE GRINDING MACHINE 3 722 SURFACE GRINDING MACHINE 3 722 SURFACE GRINDING MACHINE 3 725 SURFACE GRINDING MACHINE 3 722 Omnimill versatile machine 676 SCREW-CUTTING LATHE. 16 -20 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 79.01 Jan-83 Jan-82 85.01 77.08 80.01 86.01 86.01 86.01 80.04 Jan-80 80.01 80.01 79.01 80.01 88.01 84.01 80.01 77.01 78.01 87.01 83.01 78.01 79.01 May-79 77.01 65586.0 1426.8 4329.6 1984.0 1500.0 2535.0 6882.0 5022.0 4464.0 7216.0 1625 1625.0 1625.0 1625.0 3500.0 3273.0 11616.0 10800.0 20680.0 32001.0 38640.0 38650.0 38640.0 38500.0 10000 22000.0 0.00 214.17 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 0.00 1152.42 0.00 0.00 0.00 4684.14 1322.22 0.00 0.00 0 0.00 65586 1213 4330 1984 1500 2535 6882 5022 4464 7216 1625 1625 1625 1625 3500 3273 10464 10800 20680 32001 33956 37328 38640 38500 10000 22000 100.00 84.99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 90.08 100.00 100.00 100.00 87.88 96.58 100.00 100.00 100.00 100.00 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 21 90.01 86.11 Jan-83 87.01 82.01 88.01 Jan-83 83.01 80.01 85.01 87.01 87.01 87.01 85.01 83.01 82.01 90.01 90.01 96.11 96.11 6753.6 4969.2 8265.6 4330.0 4397.0 3310.0 11168.4 28240.8 193438.2 22386.0 1623.6 3000.0 5412.0 24203.4 4280.4 8560.8 22900 86468.9 8326.8 1285.2 453320 1859.0 775.58 0 0.00 0.00 870.23 0.00 0.00 0.00 0.00 775.62 716.58 1292.70 3201.36 0.00 0.00 0.00 0 4854.98 999.12 15345 4895 4194 8266 4330 4397 2440 11168 28241 193438 22386 848 2283 4119 21002 4280 8561 22900 86469 3472 286 437975 72.47 84.39 100.00 100.00 100.00 73.71 100.00 100.00 100.00 100.00 52.23 76.11 76.11 86.77 100.00 100.00 100.00 100.00 41.69 22.26 Unit 7 Year 8 Initial amount, th. MDL 9 Residual amount, th. MDL 11 Wear, th. MDL 10 Wear% 12
110
10238 10240 10242 10243 10246 10248 10249 10250 10251 10252 10253 10254 10278 10265 10280 10288 10289 10305 10306 10308 10320 10330 10332 10336 10339 10348 10352 10355 10357 10368 10369 10372 10371 10376 10384 10388 10390 10391 10394 10399 10400 10402 10404 10416 10424 10425 10426 10429 10438 10440 10447 10450 Screw-cutting lathe. 675 INTERNAL GRINDING MACHINES. 3 228 ELECTROMAGNETIC PULSE EROSION MACHINE . 4 723-01 MILLING AND FAX MACHINES 6 463 AUT. LATHE CUTTING CIRCULAR 8 663-100 Combined press-scissors, 229 AIR HAMMER -4132 FORGE CHIMNEY SETTING "" ELECTRON-10 " BRIDGE CRANE / 5 Bridge crane / 5 Elec. Overhead crane / 3 Surface grinding machine. 371 HAMMER 4136 Screw-cutting lathe.1620 1 HORIZONTAL BORING MACHINE . 2 614-1 UNIVERSAL GRINDING MACHINE 3 642 Bridge crane / 5 OVERHEAD CRANE / 3 ELEVATOR -55 Vertical Drilling Machine .2 135 LIFT / 300 VIBRATION UNIT FOR GRINDING AND POLISHING OF DETAILS 1616 REVOLVER LATHE 1 340 Lapping Machine. 2112 Crank press. 2324 25 Straight side single-action one point press. 2326 40 STRAIGHT SIDE SINGLE-ACTION ONE POINT PRESS. 2128 63 Straight side single-action one point press. 2130 100 INJECTION MOULDING MACHINE 3132-250 INJECTION MOULDING MACHINE 3134-500 BRIDGE CRANE / 5 Grinding machine. 3 634 MONORAIL / 3 OVERHEAD CRANE / 3 CONTOUR WELDING MACHINE -4 -2201 MECHANIZED WAREHOUSE -14 GRINDING MACHINE 3 633 STAND FOR BENDING STEEL ROLLS791220 AUT. STAMP MACH. /AIR COOLED STAMP MACH. WITH RES. STR. CANTILEVER REVOLVING CRANE -222 / 1 CANTILEVER REVOLVING CRANE -222 / 1 CANTILEVER REVOLVING CRANE -222 STAND FOR TESTING STRENGTH AND DENSITY BRIDGE CRANE / 10 SCREW-CUTTING LATHE1 64 Grinding machine 3633 Grinding machine 3633 Welding machine 1230 -303 Welding machine 508 506 WALKING CRANE / 0,5 Bridge crane / 10 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 00.80 81.09 86.05 87.01 87.05 Jul-85 80.02 79.01 81.12 78.12 Dec-78 Feb-81 Jan-80 84.04 Nov-78 85.1 78.11 Dec-78 81.02 82.02 Jan-88 86.01 90.01 88.12 Jan-87 Feb-83 Sep-88 88.01 Oct-83 81.12 86.12 78.12 Aug-84 84.01 79.01 83.01 80.01 81.01 83.01 87.01 84.01 84.01 85.01 85.07 83.12 82.05 Feb-80 Jan-88 Jan-90 Jan-90 89.01 Dec-84 15600 27750.0 38060.0 5600.0 36079.0 4526 20150.0 8350.0 5855.0 28200.0 28200 4030 21000 26500.0 24000 48900.0 4500.0 28500 5600.0 10200.0 10038 8000.0 6493.0 16500.0 1500 13650 17850.0 19440.0 30857 40250.0 47600.0 28000.0 2500 2700.0 5600.0 4849.0 12200.0 2080.0 1292.5 10290.0 2500.0 2500.0 2500.0 3450.0 28000.0 28600.0 2340 2014 4600 4300 1800.0 28200 600 0.00 0.00 1647.58 3003.42 526 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 4213.23 0.00 0 0.00 0.00 0 0.00 1588.22 3648.58 0 0.00 0 256.29 0 0.00 0.00 0.00 0.00 267.87 0.00 0.00 0.00 0.00 0.00 0.00 248.03 248.03 410.53 678.6 2625.0 0.00 0 0.00 0 0.00 763.58 99.4 15000 27750 38060 3952 33076 4000 20150 8350 5855 28200 28200 4030 21000 26500 24000 44687 4500 28500 5600 10200 10038 8000 4905 12851 1500 13650 17850 19184 30857 40250 47600 28000 2500 2432 5600 4849 12200 2080 1293 10290 2252 2252 2089 2771 25375 28600 2340 2014 4600 4300 1036 28101 96.15 100.00 100.00 70.58 91.68 88.38 100.00 100.00 100.00 100.00 100.00 1 100.00 100.00 100.00 91.38 100.00 100.00 100.00 100.00 100.00 100.00 75.54 77.89 100.00 100.00 100.00 98.68 100.00 100.00 100.00 100.00 100.00 90.08 100.00 100.00 100.00 100.00 100.00 100.00 90.08 90.08 83.58 80.33 90.63 100.00 100.00 100.00 100.00 100.00 57.58 99.65
111
10452 10455 10456 10460 10467 10468 10474 10484 10485 10488 10491 10492 10502 10511 10514 10534 10537 10538 10539 10540 10549 10555 10556 10557 10568 10569 10583 10586 10592 10595 10602 10605 10607 10608 10618 10619 10620 10621 10622 10624 10625 10626 10632 10634 10637 10641 10642 10646 10652 10653 10659 10682 10691 10692 SCREW-CUTTING LATHE 16 20 (to trim the frontal part of the engine) Winding machine -20 Device for balancing impeller Welding machine -300 -547 60370 WALKING CRANE BRIDGE CRANE / 10 Winding machine 5214 CANTILEVER REVOLVING CRANE / 0,5 MONORAIL WITH ELECTRIC TELPHER / 0,5 RAMPS * PUMPING STATION 2- LIFT WELDING TRANSFORMER-303, N 407 RE-GASIFIER -215 * FIRE STATION EQUIPMENT * STATION EQ. FOR TREAT. PROD. AND RAIN WASTEWATER THREAD-CUTTING MACHINE * LOW PRESSURE AIR SYSTEM * SYSTEM AIR PRESSURE OVERHEAD CRANE WITH EL.TEL./ 2 * EQUIPMENT FOR WATER RECYCLING COMPRESSOR STATION * ADDITIONAL EQUIPMENT OF COMPRESSOR STATION * EQUIPMENT OF INTAKE HEATING LIFT -17 LAPPING MACHINE 2 -112 PLANNING MACHINE 7112 BORING MACHINE 2 -622 TURNING AND BORING LATHE 1516 Combined shearing press 229 BRIDGE CRANE / 10 CANTILEVER REVOLVING CRANE / 0,5 WASHING MACHINE -95 CANTILEVER REVOLVING CRANE / 0,5 WELDING TRANSFORMER -300 MECHANICAL WAREHOUSE -14 ABRASIVE CUTTING MACHINE 8 242 DEVICE FOR HEAT CUTTING PIPE -854 ABRASIVE CUTTING MACHINE 8 242 Machine For cutting SHEETS. -70 BRIDGE CRANE / 10 *Saw Machine 8725 PLASMA CUTTING DEVICE -404 TUMBLING DRUM CRANK PRESS 2330 100 CRANK PRESS MECH. 2130 100 CRANK PRESS 2132 160 FRICTION PRESS 1734 250 FRICTION PRESS 1734 250 GUILLOTINE-SHEARS. 3222 BRIDGE CRANE / 10 BRIDGE CRANE / 10 BENDING ROLLS 4- 2424 MACHINE 16 20 REVOLVER LATHE. 1 -341 REVOLVER LATHE 1 340 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 84.01 Jan-88 Jan-87 Jan-86 84.01 84.01 Jan-81 87.01 86.01 85.01 88.01 81.01 82.01 87.01 87.01 87.01 80.01 80.01 79.01 79.01 84.01 84.01 82.01 80.01 79.01 80.01 84.01 Jan-85 78.01 86.01 90.01 88.01 81.01 84.01 84.02 86.12 84.12 84.12 84.12 Nov-82 86.01 85.12 79.01 84.01 82.07 82.01 84.12 79.1 84.12 84.12 84.04 83.01 83.01 84.01 16730 2080 2303 3596 2500.0 28000.0 2290 2500.0 1700.0 7068.0 6928.0 1300.0 1984.0 16693.6 15363.6 2168.0 92920.0 51600.0 4000.0 25935.8 12765.0 31766.0 23000.0 1500.0 56700.0 48915.0 62836.0 4526 28000.0 2300.0 8960.0 1890.0 1300.0 13200.0 24500.0 20270.0 24500.0 3527.3 28000.0 5646 10270.0 4700.0 30857.0 30857.0 49371.0 46700.0 46790.0 42000.0 28200.0 28200.0 84000.0 32490.0 11080.0 16500.0 0.00 0 0 0 248.0 2777.9 0 735.53 0.00 0.00 0.00 0.00 0.00 0.00 0.00 637.85 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4075.47 0.00 0.00 527.18 1362.71 678.91 0.00 0.00 0.00 0.00 2917.1 0.00 4445.0 0 0.00 1257.8 0.00 0.00 0.00 0.00 0.00 0.00 4476.8 4476.8 0.00 0.00 379.05 0.00 16730 2080 2303 3596 2252 25222 2290 1764 1700 7068 6928 1300 1984 16694 15364 1530 92920 51600 4000 25936 12765 31766 23000 1500 56700 48915 58761 4526 28000 1773 7597 1211 1300 13200 24500 20270 21583 3527 23555 5646 10270 3442 30857 30857 49371 46700 46790 42000 23723 23723 84000 32490 10701 16500 100.00 100.00 100.00 100.00 90.08 90.08 100.00 70.58 100.00 100.00 100.00 100.00 100.00 100.00 100.00 70.58 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 93.51 100.00 100.00 77.08 84.79 64.08 100.00 100.00 100.00 100.00 88.09 100.00 84.13 100.00 100.00 73.24 100.00 100.00 100.00 100.00 100.00 100.00 84.12 84.12 100.00 100.00 96.58 100.00
112
10693 10694 10698 10700 10703 10711 10712 10713 10714 10716 10717 10718 10724 10725 10726 10727 10728 10730 10731 10732 10733 10775 10776 10781 10785 10789 10797 10798 10799 10800 10804 10805 10806 10807 10808 10810 10815 10821 10825 10826 10828 10841 10830 10843 10844 10846 10847 10849 10860 10872 10873 REVOLVER LATHE 1 340 REVOLVER LATHE 1 340 RADIAL DRILLING MACHINE 2 55 DIAMOND-GRINDING MACHINE 3 22 GRINDING MACHINE 3 692 KNEE-AND-COLUMN MILLING MACHINE 6 82 HORIZONTAL BROACHING MACHINE 7534 Bridge crane 5 BRIDGE CRANE / 5 VERTICAL DRILLING MACHINE 2 135 2 VERTICAL DRILLING MACHINES. 2 135 2 VERTICAL DRILLING MACHINES. 2 135 2 REVOLVER LATHE. 1 -365 VERTICAL DRILLING MACHINES 2 135 2 VERTICAL DRILLING MACHINES 2 135 2 VERTICAL DRILLING MACHINES 2 135 2 ROUGH GRINDING MACHINE3 634 N71685 REVOLVER LATH. 1 341 GRINDING AND POLISHING MACHINE3 854 GRINDING AND POLISHING MACHINE 3 854 GRINDING MACHINE 3 633 WALKING CRANE / 1 STAND FOR TESTING STRENGTH AND DENSITY WELDING MANIPULATOR -11050 Tube bending machine -23 * HORIZONTAL BROACHING MACHINE 7 57 HEATING RINSING BATH 266 STAMP-MACHINE FOR STAMPING AND ASSEMBLY -18 STAMP-MACHINE FOR STAMPING AND ASSEMBLY -18 STAMP-MACHINE FOR STAMPING AND ASSEMBLY -18 WALKING CRANE / 1 BRIDGE CRANE / 10 BRIDGE CRANE / 5 Machine for bending steel rolls Tube bending machine 21 * GRINDING MACHINE 3 634 LEAK TEST VACUUM CHAMBER DELIVERY-ACCEPTANCE TESTING STAND 182 795 BRIDGE CRANE / 10 BRIDGE CRANE / 5 CANTILEVER REVOLVING CRANE 222 / 0,5 WELDING MACHINE -303 312 CANTILEVER REVOLVING CRANE -222 / 0,5 * GRINDING MACHINE 3 633 LINE OF PRODUCING INSIDE FINNED TUBES Cutting machine 23202 SEMI-AUTOMATIC LINE FOR PROCESSING TUBES 20/10 BRIDGE CRANE / 10 BRIDGE CRANE / 5 Vertical drilling machines 2 125 REFRIGERATING INSTALLATION 1420 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 85.01 84.01 84.12 77.01 92.01 82.12 84.12 Dec-84 84.12 84.01 84.01 84.01 81.07 84.12 84.12 84.12 85.11 79.1 83.12 83.12 83.01 84.01 83.01 84.01 Jan-77 80.01 84.01 87.01 87.01 87.01 84.01 83.01 84.01 Jan-86 Jan-81 84.01 81.01 88.01 84.01 84.01 83.01 92.01 84.01 83.01 85.01 Jan-87 87.01 83.01 Dec-78 Jan-88 84.12 16500.0 16600.0 14625.0 5600.0 3800.00 11616.0 41360.5 28000 28200.0 32040.0 32040.0 32040.0 16000.0 32040.0 32040.0 32040.0 2500.0 11080.0 3500.0 3500.0 1900.0 1800.0 3930.0 6280.0 2590 51104.0 12253.0 10294 10294 10294 2500.0 28200.0 28200.0 4204 3500 3270.0 11750.0 1500.0 28500.00 28200.00 2500.00 4200.0 2500.0 2750.0 500000.0 3080 64796.0 28200.0 28200 8990 5900.0 0.00 0.00 1741.29 1861.02 1861.02 167.85 4924.5 98.7 4476.8 0.00 0.00 0.00 0.00 0.00 0.00 0.00 545.9 0.00 328.1 328.1 65.0 178.58 0.00 0.00 0.00 0.00 0.00 0 0 0 248.03 964.7 2797.7 0 0 324.42 0.00 0.00 2827.49 2797.72 85.52 0.00 248.0 94.1 0.00 0.00 0.00 964.7 0.00 0.00 0.00 16500 16600 12884 3739 1939 11448 36436 27901 23723 32040 32040 32040 16000 32040 32040 32040 1954 11080 3172 3172 1835 1621 3930 6280 2590 51104 12253 10294 10294 10294 2252 27235 25402 4204 3500 2946 11750 1500 25673 25402 2414 4200 2252 2656 500000 3080 64796 27235 28200 8990 5900 100.00 100.00 88.09 66.77 51.03 98.56 88.09 99.65 84.12 100.00 100.00 100.00 100.00 100.00 100.00 100.00 78.16 100.00 90.63 90.63 96.58 90.08 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 90.08 96.58 90.08 100.00 100.00 90.08 100.00 100.00 90.08 90.08 96.58 100.00 90.08 96.58 100.00 100.00 100.00 96.58 100.00 100.00 100.00
113
10875 10878 10882 10883 10884 10885 10886 10887 10891 10890 10893 10894 10897 10899 10903 10904 10905 10912 10913 10915 10920 10929 10938 10941 10974 10984 10985 10986 10987 10988 10989 10990 11004 11005 11006 11007 11008 11020 11879 11882 11025 11032 11033 11035 11038 11047 11050 11064 11196 11633 11634 11635 11635 11639 11648 EL. OVERHEAD CRANE / 2 GRINDING MACHINE 3 634 GRINDING AND POLISHING MACHINE 3 853 GRINDING AND POLISHING MACHINE 3 853 OVERHEAD CRANE / 2 GANTRY CRANE 10 GANTRY CRANE 10 GANTRY CRANE 20 WALKING CRANE WALKING CRANE STACKER CRANE Overhead crane / 3 STACKER CRANE / 2 WALKING CRANE 221 STACKER CRANE / 1 TRANSFER BED 300 TRANSFER BED -4, 74 BALANCING MACHINE 800 STACKER CRANE Muffle Furnace 1,62,5-1/1 Vertical drilling machine 2 Overhead crane / 3 AUTOMATED WELDING MACHINE -513 600 Automated welding machine -300 OVERHEAD CRANE / 3 BRIDGE CRANE / 5 BRIDGE CRANE / 10 N 510272 EL. OVERHEAD CRANE / 5 N 1152 EL. OVERHEAD CRANE / 5 N 5863 El. overhead crane / 3,2 El. overhead crane / 3 3N 608 EL. OVERHEAD CRANE / 3 N 607 BRIDGE CRANE / 5 N 16150 BRIDGE CRANE N 14392 BRIDGE CRANE N 16004 BRIDGE CRANE / 10 N 49386 BRIDGE CRANE N 14611 Electric furnace -7 6,3 10/6--1 Testing machine for breakdown GRINDING MACHINE -631 BRIDGE CRANE / 5 REVOLVER LATHE. 1 340 101 VERTICAL DRILLING MACHINES 2 175 WALKING CRANE / 0,5 FLEXIBLE MANUFACTURING UNIT -30410000 Machine for cutting pipe at angle STAMP-MACHINE FOR STAMPING ELECTRIC FURNACE 1/12,5-0,25 PC "Robotron"1715/1,6 Electrical Baking case 3 electric cooker. comp. 4448 Refrigerator unit Refrigerator unit 0,80 Refrigerator installation 4 Dough machine with electric drive 1 1 1 1 1 1 1 1 1 1 1 2 1 1 2 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Apr-91 84.12 84.12 84.01 88.02 88.09 Dec-87 87.12 87.01 Jan-87 Jan-85 Jan-85 Jan-89 Jan-85 Jan-85 Jan-85 84.01 80.01 82.01 82.01 83.01 81.01 78.01 86.01 79.01 88.01 82.01 Jan-87 83.01 87.01 83.01 85.01 85.01 79.01 83.01 Jan-82 Jan-83 Jan-80 86.01 Jan-86 79.01 86.01 86.07 81.01 81.01 Jan-81 Jan-84 84.01 84.12 84.12 84.12 84.12 83.12 Jan-85 Jan-91 4000.0 2500.0 3500.0 3500.0 3490.0 79350.0 79350.0 108809.0 2540.0 2540.0 74710.0 5600 20000.0 5080.0 20000.0 10200.0 20400.0 5470.0 20000.0 2604 4650 5600 4600.0 4200 5600.0 28000.0 28000.0 5900.0 5900.0 5900 5600 5600.0 28200.0 28200.0 28600.0 28000.0 28200.0 8600 1267.35 1267.35 1840 28600.0 16500.0 14520.0 1800.0 68000.0 4320 10320.2 1674.0 1100 2418 4780 2356 2356 4750 2120 396.84 0.00 0.00 0.00 119.4 0.00 0.00 4219.18 0.00 912.39 0.00 0 0.00 1120.94 0.00 0.00 0.00 0.00 0.00 0 0 0 0.00 0 0.00 4813.4 5495.9 0.00 0.00 0.00 0.00 555.6 4476.75 4476.8 4540.3 4445.0 2643.8 0 0 0 0 4540.0 0.00 1080.4 656.3 554.2 0 0.00 0.00 0 0 0 0 0 0 0 3603 2500 3500 3500 3371 79350 79350 104590 2540 1628 74710 5600 20000 3959 20000 10200 20400 5470 20000 2604 4650 5600 4600 4200 5600 23187 22504 5900 5900 5900 5600 5044 23723 23723 24060 23555 25556 8600 1267 1267 1840 24060 16500 13440 1144 67446 4320 10320 1674 1100 2418 4780 2356 2356 4750 2120 90.08 100.00 100.00 100.00 96.58 100.00 100.00 96.12 100.00 64.08 100.00 100.00 100.00 77.93 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 1 100.00 82.81 80.37 100.00 100.00 100.00 100.00 90.08 84.13 84.13 84.12 84.13 90.62 100.00 100.00 100.00 100.00 84.13 100.00 92.56 63.54 99.19 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
114
11636 11640 11658 11682 11683 11808 11816 11818 11820 11822 11824 11836 11844 11845 10848 11854 11858 11860 11861 11863 11881 11886 11887 11898 11899 11901 11915 11921 11922 11927 11937 11938 11950 12109 12110 12115 12117 12119 12223 12233 12161 12177 12193 12218 12219 COLD STORE - 2601(COND.) REFRIGERATING UNIT -800 (WAREHOUSE) FREIGHT LIFT -500 ELECTRICAL POWER UNIT -61/5 OPERATIONAL COMMUNICATION INSTALLATION -20 MACHINE -125 AUTOMATED STAMP MACHINE WITH UNWINDING DEVICE EL. EROSION MACHINE 4 721 1 TURNING LATHE 11- AUTOMATIC BELT-CUTTING MACHINE 8554 SEMI-AUTOMATIC WELDING MACHINE -312 Vertical drilling machine2132 INDUCTION FURNACE-0,4 - 1 AUTOMATIC TURNING LATHE Screw-cutting lathe 1616 PROF. KNURLING MACHINE UPW 25-100 STAND FOR HYDRAULIC TESTING1 -761 CUTTING MACHINE -1 Stand for testing for leaks STAND FOR TESTING VALVES FOR LEAKS BALANCING MACHINE 9 714 ELECTRIC OVERHEAD CRANE(OVERHEAD CRANE) 3,2 BENDING MACHINE -3428 DRYING CABINET FOR POLISHING WHEELS MACHINE FOR BENDING STEEL ROLLS TEST STAND -92 EXHAUST HOOD -1 WELDING EQUIPMENT -50 WELDING EQUIPMENT 1401 GRINDING MACHINE 634 * GRINDING AND POLISHING MACHINES .2- . 853 MACHINE FOR BENDING STEEL ROLLS WELDING INSTALLATION 501 Refrigerator unit 0,80 UNIVERSAL MACHINE COFFEE MAKER -119 REFRIGERATED CASE -192061 COLD STORE -2 WELDING MACHINE -1230 -303 El. overhead crane 3 TELEFAX 505 ELECTROLYSE INSTALLATION """" VIDEO PLAYER 11702 VIDEOCOP VCP-P-1 E DUST EXTRACTION UNIT DUST EXTRACTION UNIT TOTAL 3. Machinery and equipment for measurement, control and laboratory equipment WEIGHBRIDGE -30 SPECTROPHOTOMETER -4 TOTAL 4. Computers 12205 PC 48633 1 Apr-95 6149.52 0 6150 100.00 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 2 1 1 1 1 1 1 1 2 292 87.01 85.01 83.01 85.01 85.01 89.01 91.05 91.05 91.11 90.07 91.09 Jan-90 89.01 91.12 Jan-84 89.01 89.01 91.09 Apr-91 91.02 91.08 89.01 91.01 91.03 89.01 91.01 89.01 89.01 89.01 91.01 90.01 90.01 82.01 Jan-89 90.01 90.01 90.01 91.01 97.06 Oct-09 92.01 93.09 94.01 97.06 97.06 5500.0 1984.0 20336.0 2658.8 7840.0 2860.0 10320.0 35200.0 22001.0 21500.0 4600.0 10840 15000.0 8400.0 16970 4880.0 2980.0 1750.0 2045.2 1320.6 4608.0 5200.0 3785.0 1089.0 4250.0 1100.0 2666.0 4600.0 4600.0 2500.0 8540.0 4700.0 1472.0 1517.85 2840.0 1150.0 6240.0 4500.0 8326.8 3358.3 4500.0 2100.0 1200.0 3350.0 6700.0 4807276 0.00 0.00 0.00 702.74 1025.30 1213.24 2971.4 7596.97 6647.91 3860.24 0.00 0 0.00 2026.19 0.00 2070.27 131.7 1045.63 0.00 355.2 2728.42 2205.89 2097.68 481.45 85.90 286.0 0.00 0.00 0.00 1385.53 2089.0 1002.9 0.00 0.00 0.00 0.00 0.00 487.89 3330.7 3358.3 981.97 672.00 568.01 1704.69 3157.38 186440 5500 1984 20336 1956 6815 1647 7349 27603 15353 17640 4600 10840 15000 6374 16970 2810 2848 704 2045 965 1880 2994 1687 608 4164 814 2666 4600 4600 1114 6451 3697 1472 1518 2840 1150 6240 4012 4996 0 3518 1428 632 1645 3543 4620836 100.00 100.00 100.00 73.57 86.92 57.58 71.21 78.42 69.78 82.05 100.00 100.00 100.00 75.88 100.00 57.58 95.58 40.25 100.00 73.10 40.79 57.58 44.58 55.79 97.98 74.00 100.00 100.00 100.00 44.58 75.54 78.66 100.00 100.00 100.00 100.00 100.00 89.16 60.00 0.00 78.18 68.00 52.67 49.11 52.87
10029 11155
1 1 2
79.01 85.01
2979.3 2556.6 5535.9
0.00 0.00 0.00
2979 2557 5536
100.00 100.00
115
12206 12212 12229 12230 12231 12232 Monitor "Bridge" PC 4862-80 FAX Celeron PC Printer, copier, scanner PC TOTAL for group IV : 5. Other machinery and equipment Invent. 12211 11626 11627 11628 12228 12091 11414 11457 11386 11835 12201 12202 12208 12209 "Veronica" Set Furniture set "Casa mare" Furniture set "Casa mare" Furniture set "Cabinet" Chair 20 feet container One section wagon master cabin master cabin Injection mould device Injection mould for cover gas heater Injection mould for cover gas heater Type-casting machine M/Plastic 9031 Type-casting machine M/Plastic 9057 TOTAL other machinery and equipment 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 15 Jan-88 Jan-88 May-05 Jan-90 Jan-90 Jan-85 May-85 Jan-89 Dec-92 Dec-92 Mar-96 Mar-96 Mar-96 Jan-86 1519.5 1805 1805 1942.5 2612.5 1471.5 1644 2160 3762.5 3762.5 25540 4690 4690 6710 5040 69155 0 0 0 256.28 168.36 0 0 1512 264 300 3869.43 2906.4 9276 1519.5 1805 1805 1943 2613 1471.5 1387.72 1991.64 3762.5 3762.5 24028 4426 4390 2840.57 2133.6 59879 1 1 1 1 1 1 7 322 Apr-94 May-96 12.2005. 2006.03 2006.03 2006.09 1073.6 5302.74 1816.67 4880.98 2689.75 5333.33 27247 5293379 0 0 0 0 0 474.5 475 202260 1074 5303 1817 4881 2690 4859 26772 5091118 100.00 100.00 100.00 100.00 100.00 91.10
116
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Annex 2 Leased equipment
Company No. 1 2 3 4 1 2 3 4 5 6 7 8 9 10 1 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 1 2 3 4 1 1 2 3 1 2 3 4 1 1 1 2 3 1 2 Machine Name Distribution Networks 0,4 kwt Press Crane / 3 tone Drilling machine-tool 2C-132 Universal Machine 676 Combined Press 229 Strung de filetat 16 K 20 1 Drilling machine-tool 2H-135 Drilling machine-tool 2M-112 Grinding machine-tool 3 633 Welding Equipment Machine-tool 87256 Machine tools for cutting pipe at angle Furnace 1.6x2.5-1/M1 Mr/2 Crane / 5 tone Semitrailer 9370 5410 Semitrailer 9370 Semitrailer 9370 55102 5410 5410 5410 5410 Crane / 1 T Apparatus for reeling TT-20 Balancing Stand Welding machine BC 300 C A-547 6 Apparatus for reeling 5214 ACPH Electric furnace CHO 7 6,3 10/6 1 Equipment for testing Equipment -631 Machine for bending tubes BMC-23B Bending machine Machine for bending tubes 21 Cutting machine 23202 Crane / 3 tone Press Machine C 229 A Crane / 5 tone Sanding machine 3 71 Crane / 5 tone Welding machine 508 Sanding machine 3 634 Stand for testing (hermecity) Threader 1 A 64 Crane / 3 tone Crane / 10 tone Crane / 10 tone Crane / 5 tone Crane / 10 tone Crane / 5 tone Number of units 1 1 1 1 4 1 1 1 1 1 1 1 1 1 1 10 1 1 1 1 1 1 1 1 1 1 1 1 10 1 1 1 1 1 2 1 8 1 1 1 1 4 1 1 1 1 1 3 1 1 1 1 4 1 1 1 1 1 1 1 3 1 1 2 1977 1986 1981 1987 1981 1985 1978 1980 1978 1990 1984 1991 1982 1979 1984 1984 1984 1984 1984 Year of commission ing 1983 1983 1987 1990 1979 1985 1978 1988 1987 1980 1990 1982 1987 1982 1978 1987 1987 1991 1991 1989 1990 1990 1991 1991 1980 1988 1987 1986 1981 1985 1991 1991 Initial amount, th. MDL 8,266 30,857 5,600 10,840 47,297 10,000 4,526 24,000 10,038 1,500 2,340 4,600 5,648 4,320 2,604 69,574 28,500 28,500 8,625 57,800 8,625 8,625 57,800 57,800 57,800 57,800 57,800 1,625 374,300 2,080 2,303 3,596 2,290 8,600 2,535 1,840 23,244 2,590 4,204 3,500 3,080 13,374 5,900 5,900 4526 28,200 21,000 53,726 28,200 4,300 2,500 2,045 37,045 28,600 29,600 5,600 5,600 28,200 28,000 28,000 84,200 28,500 28,200 56,700
Vaiur Mercur SRL Total
Livcon Trans SRL
Total Debut-Gama SRL Total
Servocar SRL
Total
Electrobobina SRL
Total Service-Frig SRL
Total Noi-Bejenari I Total GISS SRL Total Frigoma SRL Total Barbos Iacob I Total Italprod SRL Total Feralumin SRL Total Divalconi SRL Total
117
Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Annex 3. Estimate the expenses for capital infrastructure repairs and renovation
General estimate in amount of: Including recoverable amounts: 321,075 0.000 Th. MDL Th. MDL
GENERAL ESTIMATE Reconstruction of buildings and constructions of Straseni CAAN JSC Deawn up in current prices: quarter IV 2010
Amount, th. MDL No. No. estimate Name of chapters of expenses, objects Construction works 4 Mounting works 5 Equipment, furniture, inventory 6 other works 7 Total amount, th. MDL
1 Chapter 1
3 Preparation of the site for object construction Total Chapter 1
0.00
0.00
0.00
0.00
0.00
Chapter 2 1 2 3 4 5 6 7
Objects of basic investments Production building no. 1 Production building no. 2 Production building no. 3 Sanitary building Administrative building Canteen Heating systems Total Chapter 2 239,371.00 78,310.00 22,740.00 9,821.00 37,600.00 77,200.00 13,700.00 550.00 550.00 1,900.00 1,900.00 0.00 78,310.00 22,740.00 9,821.00 37,600.00 77,200.00 13,700.00 2,450.00 241,821.00
Chapter 3
auxiliary and service objects Total Chapter 3 0.00 0.00 0.00 0.00 0.00
Chapter 4
Energy Objects Total Chapter 4 0.00 0.00 0.00 0.00 0.00 0.00 3 160.00 2 100.00 2 860.00 8,120.00 0.00 0.00 0.00 3,160.00 2,100.00 2,860.00 8,120.00
Chapter 5
Communications and transport objects Interior roads - 2 km Access road - 0.8 km Local road - 1.7 km Total Chapter 5
Chapter 6
Civil engineering and external networks (water, sewer, heat, gas) Water supply networks Sewerage system Gas supply networks Total Chapter 6 430.00 390.00 400.00 400.00 0.00 0.00 0.00 430.00 390.00 400.00 400.00
Chapter 7
Territory management and green spaces Total Chapter 7 Total Chapter 1-7 0.00 247,891.00 0.00 550.00 0.00 1,900.00 0.00 0.00 0.00 250,341.00
118
Chapter 8 NCML 01.03.01 4.1. an. 1 pag.5 Site organization Buildings and provisory buildings k=1,4*0,8=1,12% Total Chapter 8 including the amount of reimbursement Total Chapter 1-8 including the amount of reimbursement Chapter 9 NCML 01.04-2001 an.A pag.5 CPL 01.01.01. an.B pag.31; calcul. Other expenses Additional expenses for construction works - time mounting figure 0,8% 1,983.13 4.40 1,987.53 0.00 0.00 247,891.00 0.00 0.00 0.00 550.00 0.00 1,900.00 0.00 0.00 0.00 0.00 250,341.00 0.00
Payment for electricity Total Chapter 9 Total Chapter 1-9 The repayment amount including temporary objects
2,181.44 4,164.57 252,055.57 0.00
4.84 9.24 559.24 0.00 0.00 1,900.00 0.00 0.00
2,186.28 4,173.81 254,514.81 0.00
Chapter 10 CPL 01.01.01. an.C pag.31.
Maintenance of directorate (technical supervision ) Technical Supervision - 1,0% Total Chapter 10 2 545.15 2,545.15 0.00 0.00 2,545.15 2,545.15 0.00 0.00
Chapter 11
Training of operating staff Total Chapter 11
Chapter 12 Contract Min.Ecol.RM 1306-0107 of June 13,.03 p.1 par. 2 Min.Ecol.RM 1306-0107 of June 13,.03 p.1 par. 5
Design work, prospecting, copyright control Design works Copyright inspection 3,610.00 0.00
Expertise Total Chapter 12 Total Chapter 1-12 including the amount of reimbursement 252 055,57 0.00 5 041,11 257,096.68 559.24 0.00 11.18 570.42 38.00 1,938.00 50.90 2,596.05 1,900.00 2,545.15
361.00 3,971.00 261,030.96 0.00 5,220.62 266,251.58
CPL 01.01.01. p.6 11 pag 17
Reserve funds for unforeseen expenses 2% Total including reserve
CPL 01.01.01. p.6.12 pag 17
Deductions into the fund of construction normative base 0,5% Total inc. CNB Value added tax 20% Total inc. VAT including the amount of reimbursement
1,285,48
2.85
9.69
12.98
1,311.01
258,382.16 51 676,43 310,058.60 0.00
573.28 114.66 687.93 0.00
1,947.69 389.54 2,337.23
2,609.03 521.81 3,130.84
267,562.58 53,512.52 321,075 0.00
Total inc. BNC Value added tax 20% Total inc. VAT including the amount of reimbursement
258,382.,16 51,676.43 310,058,60 0.00
573.28 114.66 687.93 0.00
1,947.69 389.54 2,337.23
2,609.03 521.81 3,130.84
267,562.58 53,512.52 321,075 0.00
Annex 4. Investment structure

Feasibility Study on Industrial Park Creation on the territory of CAAN JSC, STRASENI Annex 5. Provision of fruits storage and sorting services in the industrial refrigerator Annex 6. Income from lease of available spaces Annex 7. Forecast operational income (VAT including) Annex 8. Forecast consumption and expenses (VAT including) Annex 9. Forecast cash flow Annex 10. Forecast financial results Annex 11. Forecast balance sheet Annex 12. Calculation of investment efficiency Annex 13. Financial indicators Annex 14. Calculation of wear
120
Anenx 4. Investment structure
Investment item Investment in construction of the refrigerator, including refrigeration equipment refrigeration machinery Investment in the construction of a packing house, including packing house equipment packing house machinery Investing in utilities (road, sewer, water, gas, etc.. ) Investing in the repairation of buildings Total, amount Total, % Ratio Eur = Ratio Usd =
Size (LxlxH m) 144x100x10,8
Space (sq.m.) 14 400
Volume(cub. m.) 155 520
Capacity(t) 30 000
total amount 9 000 000 5 400 000 3 600 000
144x70x10,8
10 080
108 864
21 773
3 265 920 1 959 552 1 306 368 1 111 247
50 020
14 217 109 27 594 276 100%
16,00 12,00
Phase 1 - 2011 spring - summer Investment item Investment in construction of the refrigerator, including refrigeration equipment refrigeration machinery Investment in the construction of a packing house, including packing house equipment packing house machinery Investing in utilities (road, sewer, water, gas, etc.. ) Investing in the repairation of buildings Total, amount Total, % 62 260 Size (LxlxH m) 144x50x10,8 Space (sq.m.) 7 200 Volume(cub. m.) 77 760 Capacity(t) 15 000 total amount 4 500 000 2 700 000 1 800 000 144x35x10,8 5 040 54 432 10 886 1 632 960 979 776 653 184 722 311 9 241 121 16 096 392 100%
Annex 5. Provision of fruits storage and sorting services in the industrial refrigerator
2011 Total available volume 15 000 ton
2012 30 000 ton
2013 30 000 ton
2014 30 000 ton
2015 30 000 ton
2016 30 000 ton
Price per kg storage services (lei 0,30 lei/kg/month 0,32 lei/kg/month 0,33 lei/kg/month 0,35 lei/kg/month 0,36 lei/kg/month 0,38 lei/kg/month / month) Price per kg (sorting and 0,50 lei/kg 0,55 lei/kg 0,60 lei/kg 0,63 lei/kg 0,66 lei/kg 0,69 lei/kg packaging) (lei / kg) Sales plan for 2011 jan 0% Storage Income sorting and packaging Income Total Sales plan for 2012 jan 70% Storage Income sorting and packaging Income Total Sales plan for 2013 jan 70% Storage Income sorting and packaging Income Total Incomes Storage Income sorting and packaging Income Total 6 945 750 2 475 000 9 420 750 lei 2011 20 250 000 1 125 000 21 375 000 lei feb 55% 5 457 375 2 475 000 7 932 375 lei 2012 51 933 938 12 562 500 64 496 438 lei mar 35% 3 472 875 3 300 000 6 772 875 lei 2013 64 992 375 24 825 000 89 817 375 lei apr 0% 0 5 775 000 5 775 000 lei 2014 68 241 994 26 066 250 94 308 244 lei may 0% 0 0 0 lei 2015 71 654 093 27 369 563 99 023 656 lei jun 10% 992 250 0 992 250 lei 2016 75 236 798 28 738 041 103 974 839 lei 3 150 000 1 125 000 4 275 000 lei feb 55% 2 475 000 1 125 000 3 600 000 lei mar 35% 1 575 000 1 500 000 3 075 000 lei apr 0% 0 2 625 000 2 625 000 lei may 0% 0 0 0 lei jun 10% 472 500 0 472 500 lei 0 0 0 lei feb 0% 0 0 0 lei mar 0% 0 0 0 lei apr 0% 0 0 0 lei may 0% 0 0 0 lei jun 0% 0 0 0 lei
2018 30 000 ton
2019 30 000 ton
2020 30 000 ton
Price per kg storage services (lei 0,40 lei/kg/month 0,42 lei/kg/month 0,44 lei/kg/month 0,47 lei/kg/month / month) Price per kg (sorting and 0,73 lei/kg 0,77 lei/kg 0,80 lei/kg 0,84 lei/kg packaging) (lei / kg)
Sales plan for 2011 jul 0% Storage Income sorting and packaging Income Total 0 0 0 lei aug 70% 3 150 000 0 3 150 000 lei sep 100% 4 500 000 0 4 500 000 lei oct 100% 4 500 000 0 4 500 000 lei nov 95% 4 275 000 375 000 4 650 000 lei dec 85% 3 825 000 750 000 4 575 000 lei Total 0% 20 250 000 1 125 000 21 375 000 lei
Sales plan for 2012 jul 35% Storage Income sorting and packaging Income Total 1 736 438 825 000 2 561 438 lei aug 70% 6 615 000 2 887 500 9 502 500 lei sep 100% 9 450 000 0 9 450 000 lei oct 100% 9 450 000 0 9 450 000 lei nov 95% 8 977 500 825 000 9 802 500 lei dec 85% 8 032 500 1 650 000 9 682 500 lei Total 0% 51 933 938 12 562 500 64 496 438 lei
Sales plan for 2013 jul 35% Storage Income sorting and packaging Income Total Incomes Storage Income sorting and packaging Income Total 3 472 875 1 800 000 5 272 875 lei 2017 78 998 638 30 174 943 109 173 581 lei aug 70% 6 945 750 6 300 000 13 245 750 lei 2018 82 948 570 31 683 690 114 632 260 lei sep 100% 9 922 500 0 9 922 500 lei 2019 87 095 998 33 267 874 120 363 873 lei oct 100% 9 922 500 0 9 922 500 lei 2020 91 450 798 34 931 268 126 382 066 lei 0 0 0 lei nov 95% 9 426 375 900 000 10 326 375 lei 0 0 0 0 lei dec 85% 8 434 125 1 800 000 10 234 125 lei 0 0 0 0 lei Total 0% 64 992 375 24 825 000 89 817 375 lei 0
Annex 6. Income from lease of available spaces
2010
Spaces occupied by current residents lease price current residents 17 713 127,40 lei/sq.m.
2011
17 713 250,00 lei/sq.m.
2012
17 713 262,50 lei/sq.m.
2013
17 713 275,63 lei/sq.m.
2014
17 713 289,41 lei/sq.m.
2015
17 713 303,88 lei/sq.m.
Annual income
Spacesoccupied by new residents lease price new residents
2 256 636 lei

31 034
4 428 250 lei

12 414 300,00 lei/sq.m.
4 649 663 lei

31 034 315,00 lei/sq.m.
4 882 146 lei

31 034 330,75 lei/sq.m.
5 126 253 lei

31 034 347,29 lei/sq.m.
5 382 566 lei

31 034 364,65 lei/sq.m.
Annual income Total
3 724 080 lei 8 152 330 lei
9 775 710 lei 14 425 373 lei
10 264 496 lei 15 146 641 lei
10 777 720 lei 15 903 973 lei
11 316 606 lei 16 699 172 lei
2016
2017
17 713 335,02 lei/sq.m.
2018
17 713 351,78 lei/sq.m.
2019
17 713 369,36 lei/sq.m.
2020
17 713 387,83 lei/sq.m.
Annual income
5 651 694 lei

31 034 382,88 lei/sq.m.
5 934 279 lei

31 034 402,03 lei/sq.m.
6 230 992 lei

31 034 422,13 lei/sq.m.
6 542 542 lei

31 034 443,24 lei/sq.m.
6 869 669 lei

31 034 465,40 lei/sq.m.
Annual income Total
11 882 437 lei 17 534 130 lei
12 476 558 lei 18 410 837 lei
13 100 386 lei 19 331 379 lei
13 755 406 lei 20 297 948 lei
14 443 176 lei 21 312 845 lei
Annex 7. Forecast operational income (VAT including)
Operational income 1. Income from lease of available spaces, including - current residents - new residents 2. Income from refrigerator 3. Income from the operation of the packing house 4. Income from consulting services Total VAT from SALES Net sales
2011 amount 8 152 330 4 428 250 3 724 080 20 250 000 1 125 000 150 000 29 677 330 4 946 222 24 731 108
2012 amount 14 425 373 4 649 663 9 775 710 51 933 938 12 562 500 157 500 79 079 310 13 179 885 65 899 425
2013 amount 15 146 641 4 882 146 10 264 496 64 992 375 24 825 000 165 375 105 129 391 17 521 565 87 607 826
2014 amount 15 903 973 5 126 253 10 777 720 68 241 994 26 066 250 173 644 110 385 861 18 397 643 91 988 217
2015 amount 16 699 172 5 382 566 11 316 606 71 654 093 27 369 563 182 326 115 905 154 19 317 526 96 587 628
Operational income 1. Income from lease of available spaces, including - current residents - new residents 2. Income from refrigerator 3. Income from the operation of the packing house 4. Income from consulting services Total 0 VAT from SALES Net sales
2016 amount 17 534 130 5 651 694 11 882 437 75 236 798 28 738 041 191 442 121 700 411
2017 amount 18 410 837 5 934 279 12 476 558 78 998 638 30 174 943 201 014 127 785 432
2018 amount 19 331 379 6 230 992 13 100 386 82 948 570 31 683 690 211 065 134 174 704
2019 amount 20 297 948 6 542 542 13 755 406 87 095 998 33 267 874 221 618 140 883 439
2020 amount 21 312 845 6 869 669 14 443 176 91 450 798 34 931 268 232 699 147 927 611
0% 0% 0% 0% 0% 20 283 402 21 297 572 22 362 451 23 480 573 24 654 602 101 417 010 106 487 860 111 812 253 117 402 866 123 273 009
Annex 8. Forecast consumption and expenses (VAT including)

2011 Direct consumptions Raw material Electrical power Salary Other costs subtotal Total direct consumptions amont 45 000 50 000 360 000 5 000 460 000 460 000 2012 amont 47 250 52 500 378 000 5 250 483 000 483 000 2013 amont 49 613 55 125 396 900 5 513 507 150 507 150 2014 amont 52 093 57 881 416 745 5 788 532 508 532 508 2015 amont 54 698 60 775 437 582 6 078 559 133 559 133
2011 Indirect consumptions Reparation and maintenance of fixed assets fixed assets depreciation subtotal Total indirect consumptions amont 1 000 000 4 093 056 5 093 056 5 093 056
2012 amont 1 050 000 12 924 519 13 974 519 13 974 519
2013 amont 1 102 500 30 461 711 31 564 211 31 564 211
2014 amont 1 157 625 30 461 711 31 619 336 31 619 336
2015 amont 1 215 506 30 461 711 31 677 217 31 677 217
2011 Managing expenses 1. Commercial expenses Marketing, promotion Other commercial expenses subtotal 2. General and administrative expenses Salary + social insurance Transportation Banking and telephone expenses Administrative mainenance Taxes Other General and administrative expenses subtotal 3. Other operational expenses Interest rate Other operational expenses subtotal Total Operational expenses Total expenses 0 30 000 30 000 1 701 000 7 254 056 1 260 000 130 000 60 000 20 000 51 000 70 000 1 591 000 70 000 10 000 80 000 amont
2012 amont
2013 amont
2014 amont
2015 amont
73 500 10 500 84 000 1 323 000 136 500 63 000 21 000 53 550 73 500 1 670 550 0 31 500 31 500 1 786 050 16 243 569
77 175 11 025 88 200 1 389 150 143 325 66 150 22 050 56 228 77 175 1 754 078 14 000 000 33 075 14 033 075 15 875 353 47 946 713
81 034 11 576 92 610 1 458 608 150 491 69 458 23 153 59 039 81 034 1 841 781 11 200 000 34 729 11 234 729 13 169 120 45 320 964
85 085 12 155 97 241 1 531 538 158 016 72 930 24 310 61 991 85 085 1 933 870 8 400 000 36 465 8 436 465 10 467 576 42 703 926

2016 Direct consumptions Raw material Electrical power Salary Other costs subtotal 0 Total direct consumptions Suma 57 433 63 814 459 461 6 381 587 090 587 090 0 2017 Suma 60 304 67 005 482 434 6 700 616 444 616 444 0 2018 Suma 63 320 70 355 506 556 7 036 647 266 647 266 0 2019 Suma 66 485 73 873 531 884 7 387 679 630 679 630 0 2020 Suma 69 810 77 566 558 478 7 757 713 611 713 611 0
2016 Indirect consumptions Reparation and maintenance of fixed assets fixed assets depreciation subtotal 0 Total indirect consumptions Suma 1 276 282 30 461 711 31 737 992 31 737 992 0
2017 Suma 1 340 096 30 461 711 31 801 807 31 801 807 0
2018 Suma 1 407 100 30 461 711 31 868 811 31 868 811 0
2019 Suma 1 477 455 30 461 711 31 939 166 31 939 166 0
2020 Suma 1 551 328 30 461 711 32 013 039 32 013 039 0
2016 Managing expenses 1. Commercial expenses Marketing, promotion Other commercial expenses subtotal 2. General and administrative expenses Salary + social insurance Transportation Banking and telephone expenses Administrative mainenance Taxes Other General and administrative expenses subtotal 3. Other operational expenses Interest rate Other operational expenses subtotal 0 Total Operational expenses Total expenses 0 5 600 000 38 288 5 638 288 7 770 955 40 096 037 0 0 1 608 115 165 917 76 577 25 526 65 090 89 340 2 030 564 89 340 12 763 102 103 Suma
2017 Suma
2018 Suma
2019 Suma
2020 Suma
93 807 13 401 107 208 1 688 521 174 212 80 406 26 802 68 345 93 807 2 132 092 2 800 000 40 203 2 840 203 5 079 503 37 497 753 0 0
98 497 14 071 112 568 1 772 947 182 923 84 426 28 142 71 762 98 497 2 238 697 0 42 213 42 213 2 393 478 34 909 555 0 0
103 422 14 775 118 196 1 861 594 192 069 88 647 29 549 75 350 103 422 2 350 632 0 44 324 44 324 2 513 152 35 131 948 0 0
108 593 15 513 124 106 1 954 674 201 673 93 080 31 027 79 118 108 593 2 468 163 0 46 540 46 540 2 638 809 35 365 459 0 0
Annex 9. Forecast cash flow

Total 2009 I A Operational Activity cash earnings earnings from sales earnings from space leasing earnings from refrigerator leasing earnings from packing house earnings from consulting earnings from receivables other earnings Total earnings cash payments Payments to suppliers and contractors Salary and social insrance payments interest payments payment of income tax other payments (including VAT) Taxes VAT Others Total payments NET FLOW from OPERATIONAL ACTIVITY C Investment Activity earnings from the output of long term assets payments for purchase of long term assets payment for refrigerator construction payment for packing house construction payment for utilities payment for reparation of buildings Interest received Dividends received others NET FLOW from INVESTMENT ACTIVITY D Financial Activity earnings from loans and credits earnings from the issue of own shares others Sub-total payments for loans and credits dividend payment payments for purchasing of own shares others Sub-total NET FLOW from FINANCIAL ACTIVITY NET FLOW from economic activity Exceptional earnings (payments) H TOTAL NET FLOW Exchange differences I J Cash balance at the beginning of the period Cash balance at the end of the period 150 985 11 252 11 252 9 206 9 206 8 048 827 8 048 827 19 873 720 19 873 720 39 285 798 39 285 798 62 834 963 62 834 963 89 690 057 (139 733) (2 046) 8 039 621 11 824 894 19 412 078 23 549 165 26 855 094 1 689 483 2 046 935 28 193 464 7 744 714 19 237 500 1 068 750 142 500 76 609 211 13 704 104 49 337 241 11 934 375 149 625 1 483 867 76 609 211 1 564 500 1 701 000 4 991 661 12 561 002 53 550 12 507 452 20 818 162 55 791 049 103 904 985 14 389 309 61 742 756 23 583 750 157 106 4 032 064 103 904 985 1 642 725 1 786 050 14 000 000 3 993 490 17 099 938 56 228 17 043 710 38 522 203 65 382 783 110 335 251 15 108 775 64 829 894 24 762 938 164 962 5 468 683 110 335 251 1 724 861 1 875 353 11 200 000 4 695 473 18 160 771 59 039 18 101 732 37 656 457 72 678 794 115 917 015 15 864 213 68 071 389 26 001 084 173 210 5 807 118 115 917 015 1 811 104 1 969 120 8 400 000 5 418 555 19 079 643 61 991 19 017 652 36 678 422 79 238 592 Total 2010 Total 2011 Total 2012 Total 2013 Total 2014 Total 2015
61 642 1 751 125 461 616 960 750 498 825
64 640 2 111 575 556 635 992 864 601 503
28 193 464 1 490 000 1 620 000 4 501 577 51 000 4 450 577 7 611 577 20 581 886
498 825 1 921 191 (170 066) 30 333 -
601 503 2 151 001 (39 426) 37 380 -
257 542 265 72 000 000 26 127 360 11 556 968 147 857 937
183 966 155 72 000 000 26 127 360 6 222 983 79 615 812
30 333 -
37 380 -
(257 542 265) 245 000 000 245 000 000 -
(183 966 155) 140 000 000 140 000 000 -
28 000 000 17 970 705
28 000 000 21 129 629
28 000 000 24 383 499
(139 733)
(2 046)
245 000 000 8 039 621
140 000 000 11 824 894
45 970 705 (45 970 705) 19 412 078
49 129 629 (49 129 629) 23 549 165
52 383 499 (52 383 499) 26 855 094

Total 2016 I A Operational Activity cash earnings earnings from sales earnings from space leasing earnings from refrigerator leasing earnings from packing house earnings from consulting earnings from receivables other earnings Total earnings cash payments Payments to suppliers and contractors Salary and social insrance payments interest payments payment of income tax other payments (including VAT) Taxes VAT Others Total payments NET FLOW from OPERATIONAL ACTIVITY C Investment Activity earnings from the output of long term assets payments for purchase of long term assets payment for refrigerator construction payment for packing house construction payment for utilities payment for reparation of buildings Interest received Dividends received others NET FLOW from INVESTMENT ACTIVITY D Financial Activity earnings from loans and credits earnings from the issue of own shares others Sub-total payments for loans and credits dividend payment payments for purchasing of own shares others Sub-total NET FLOW from FINANCIAL ACTIVITY NET FLOW from economic activity Exceptional earnings (payments) H TOTAL NET FLOW Exchange differences I J Cash balance at the beginning of the period Cash balance at the end of the period 121 716 286 16 657 424 71 474 958 27 301 139 181 870 6 100 896 121 716 286 1 901 660 2 067 576 5 600 000 6 163 792 20 034 195 65 090 19 969 104 35 767 222 85 949 064 28 000 000 27 737 062 55 737 062 (55 737 062) 30 212 002 30 212 002 89 690 057 119 902 059 Total 2017 127 802 281 17 490 295 75 048 706 28 666 196 190 964 6 406 120 127 802 281 1 996 743 2 170 955 2 800 000 6 932 290 21 035 935 68 345 20 967 590 34 935 922 92 866 359 28 000 000 31 195 304 59 195 304 (59 195 304) 33 671 055 33 671 055 119 902 059 153 573 114 Total 2018 134 192 404 18 364 810 78 801 141 30 099 505 200 512 6 726 436 134 192 404 2 096 580 2 279 503 7 725 213 22 087 733 71 762 22 015 971 34 189 028 100 003 376 34 763 457 34 763 457 (34 763 457) 65 239 919 65 239 919 153 573 114 218 813 033 Total 2019 140 902 025 19 283 050 82 741 198 31 604 481 210 537 7 062 758 140 902 025 2 201 409 2 393 478 8 263 782 23 192 120 75 350 23 116 769 36 050 788 104 851 237 37 187 019 37 187 019 (37 187 019) 67 664 218 67 664 218 218 813 033 286 477 251 Total 2020 147 947 126 20 247 203 86 878 258 33 184 705 221 064 7 415 896 147 947 126 2 311 479 2 513 152 8 829 280 24 351 726 79 118 24 272 608 38 005 636 109 941 490 39 731 758 39 731 758 (39 731 758) 70 209 732 70 209 732 286 477 251 356 686 983
Annex 10. Forecast financial results
No row 1. Net sales 2. Cost of sales 3. Gross Profit 4. Other operational income 5.Commercial expenses 6. General & administrative expenses 7.Other operational expenses 8. Results from operating activities (3+4-5-67) 9.Results from investment activity 10. Results from financial activity 11.Results of financial and economic activity (8+9+10) 12.Results from exceptional activity 13.Profit before taxes (11+12) 14.Income tax 15.Net profit (13+14) 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
2009 1 966 966 927 912 1 039 054 15 874
2010 2 154 668 1 012 694 1 141 974 17 307
2011 24 731 108 5 369 723 19 361 385 66 667
2012 65 899 425 14 265 019 51 634 406 70 000 1 621 550 26 250 49 916 606
2013 87 607 826 31 869 236 55 738 590 73 500 1 702 628 14 027 563 39 934 900
2014 91 988 217 31 939 612 60 048 605 77 175 1 787 759 11 228 941 46 954 731
1 412 525 3 288 (360 885) 29 904
1 152 525 3 288 3 468 37 380
1 544 333 25 000 17 725 385
(330 981)
40 848
17 725 385
49 916 606
39 934 900
46 954 731
(330 981)
40 848
17 725 385
49 916 606 (4 991 661)
39 934 900 (3 993 490) 35 941 410
46 954 731 (4 695 473) 42 259 258
(330 981)
40 848
17 725 385
44 924 946
0 No row 1. Net sales 2. Cost of sales 3. Gross Profit 4. Other operational income 5.Commercial expenses 6. General & administrative expenses 7.Other operational expenses 8. Results from operating activities (3+4-5-6-7) 9.Results from investment activity 10. Results from financial activity 11.Results of financial and economic activity (8+9+10) 12.Results from exceptional activity 13.Profit before taxes (11+12) 14.Income tax 15.Net profit (13+14) 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
2015 96 587 628 32 013 507 64 574 121 81 034 1 877 147 8 430 388 54 185 553 54 185 553 54 185 553 (5 418 555) 48 766 997
2016 101 417 010 32 091 097 69 325 912 85 085 1 971 004 5 631 907 61 637 916 61 637 916 61 637 916 (6 163 792) 55 474 124
2017 106 487 860 32 172 566 74 315 294 89 340 2 069 554 2 833 502 69 322 897 69 322 897 69 322 897 (6 932 290) 62 390 607
2018 111 812 253 32 258 109 79 554 144 93 807 2 173 032 35 178 77 252 128 77 252 128 77 252 128 (7 725 213) 69 526 915
2019 117 402 866 32 347 929 85 054 937 98 497 2 281 684 36 936 82 637 819 82 637 819 82 637 819 (8 263 782) 74 374 038
2020 123 273 009 32 442 240 90 830 769 103 422 2 395 768 38 783 88 292 796 88 292 796 88 292 796 (8 829 280) 79 463 516
Annex 11. Forecast balance sheet
1 1.1
ASSETS Long-Term Assets Intangible assets Intangible assets (111,112) Intangible assets amortization (113) Intangible assets ( 010-020) Long-Term material Assets 1,2 working material assets (121) Land(122) Fixed assets (123) Natural ressources (125) Depreciation of fixed assets (124,126) Long-Term material Assets (040+050+ 060+070-080) Long-Term financial Assets Long1,3 term investments unrelated parties (131) Long-term investments related parties (132) Change of Long-term investments (133) Long-term receivables (134) Deffered income tax (135) expenses paid in advance (136) Total 1.3 (100+110+120+ +130+140+150)
No
2008 -
2009 15 566 87 607 660 (63 171 674) 24 451 552 48 410 48 410 24 499 962 165 214 45 129 457 635 667 978 173 280 387 20 694 499 686 694 047 1 000 10 252 11 252 4 774 1 378 051 25 878 013
2010 15 566 87 607 660 (63 413 231) 24 209 995 48 410 48 410 24 258 405 162 668 45 018 459 682 667 368 303 240 20 694 670 016 993 950 1 305 7 900 9 206 5 013 1 675 536 25 933 941
2011 159 414 905 185 735 020 (67 506 287) 277 643 638 48 410 48 410 277 692 048 185 442 1 616 188 1 801 630 1 483 867 93 123
2012 -
2013 -
2014 -
010 020 030 040 050 060 070 080 090
15 566 87 513 844 (62 930 117) 24 599 293 48 410
529 116 080 (80 430 806) 448 685 274 48 410 48 410 448 733 684 194 714 1 153 079 1 347 793 4 032 064 116 404 -
529 116 080 (110 892 517) 418 223 563 48 410 48 410 418 271 973 204 449 754 102 958 551 5 468 683 122 224 5 590 907 5 570 811 33 714 987 39 285 798 5 803 45 841 060 464 113 033
529 116 080 (141 354 228) 387 761 852 48 410 48 410 387 810 262 214 672 476 012 690 684 5 807 118 128 335 5 935 454 8 910 134 53 924 829 62 834 963 6 093 69 467 193 457 277 456
100 110 120 130 140 150 160 170 180 48 410 24 647 703 168 330 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 45 291 469 467 6 250 689 338 218 559 455 2 572 461 133 682 719 360 370 380 390 400 410 420 430 440 450 460 470 21 410 129 575 150 985 8 178 1 531 220 26 178 923 1 141 341 6 907 486 8 048 827 5 263 11 432 709 289 124 757 2 818 137 17 055 584 19 873 720 5 527 25 375 507 474 109 191
Other Long-term assets (141,142) Total chapter 1 (030+090+160+170) 2 2.1 CURRENT ASSETS Raw materials&components stocks Materials (211) Animal rearing and fattening (212) Work in progress inventory(213-214) Production in progress (215) Finished goods (216) Shipped goods(217) Total 2.1 (190+200+210 + +220+140+150) Accounts receivable 2,2 Accounts receivable from customers (221) Adjustments on doubtful debts (222) Receivables from related parties (223) expenses paid in advance (224) Receivables from budget(225) Preliminary Claims (226) Receivables from personnel (227) Short-term receivables on income calculated (228) Other receivables(229) Total 2.2 (260-270+280+ 290+300+310+320+ 330+340) Current financial investment 2,3 Current financial investment in unrelated parties (231) Current financial investment in related parties (232) Decrease of short-term investments (233) Total 2.3 (360+370+380) Cash Cash 2,4 (241) Current accounts in local currency(242) Current accounts in foreign currency (243) Other cash (244, 245, 246) Total 2.4 (400+410+ 420+430) 2,5 Other current assets (251, 252) TOTAL chapter 2 (250+ 350+390+440+450) TOTAL ASSETS (180+460)
1,4
1 576 990 -
4 148 467 -
Nr. LIABILITIES n.s. 3 3.1 EQUITY Share and additional capital Share capital (311) Additional capital (312) Unpaid capital (313) Capital withdraw (314) Total.3.1 (480+490-500-510) Reserves 3,2 Reserves according to law (321) Reserves according to statutory doc. (322) Others (323) Total 3.2 (530+540+550) 3,3 Profit and loss surplus (331) Retained earnings (uncovered loss) of previous years (332) Net profit (loss) (333) Used profit (334) Total 3.3 ( 570580 590600) Secondary capital 3,4 Differences from revaluation of long term assets (341) Grants (342) Total 3.4 (620630) TOTAL chapter 3 (520+560610640) 4. 4.1 Long term liabilities Financial Long term liabilities Bank credits (411,412) Loans (413) Others (414) Total 4.1 (660+670+680) Accounted Long term liabilities 4,2 Lease Long term liabilities (421) Anticipated long-term revenue (422) Special revenues (423) Revenues received in advance (424) Deffered tax(425) Others (426) Total 4.2 (700+710+720+ 730+740+750) Total chapter 4 (690+760) 5 5.1 Short term liabilities Financial short term liabilities Bank credits (511,512) Loans (513) Current share of long-term liabilities (514) Others (515, 516) Total.5.1 (780+790+800+810) Short term commercial liabilities 5,2 Short term commercial liabilities (521) Short term liabilities to related parties (522) Revenues received in advance(523) Total 5.2 (830+840+850) Acconted Short term liabilities 5,3 Accounted salary (531) Other accounted liabilities to personnel (532) Accounted Social insurance (533) Taxes payable (534) Preliminary liabilities (535) Extrabudget liabilities (536) Shareholders payable (537) future expenses and payments provisions (538) Others (539) Total 5.3 (870+880+890+ 900+910+920+930+940+950) TOTAL chapter 5 (820+860+960) TOTAL LIABILITIES (650+770+970)
Cod
2008 30 510 836
2009 30 510 836 30 510 836 368 820 368 820 14 991 (4 808 394) (330 981) (5 124 384) 25 755 272 4 221 4 221 52 699 24 990 38 829 2 002 118 520 122 741 25 878 013
2010 30 510 836 30 510 836 368 820 368 820 (5 124 384) 40 848 (5 083 536) 25 796 120 4 521 4 521 60 825 46 083 25 738 654 133 300 137 821 25 933 941
2011 275 510 836 275 510 836 368 820 368 820 (5 083 536) 17 725 385 12 641 850 288 521 506 456 621 456 621 66 908 50 691 28 312 719 146 630 603 251 289 124 757
2012 275 510 836 275 510 836 368 820 368 820 12 641 850 44 924 946 57 566 795 333 446 451 140 000 000 140 000 000 140 000 000 479 452 479 452 83 634 63 364 35 390 899 183 288 662 740 474 109 191
2013 275 510 836 275 510 836 368 820 368 820 39 596 090 35 941 410 75 537 500 351 417 156 112 000 000 112 000 000 112 000 000 503 425 503 425 87 816 66 532 37 159 944 192 452 695 877 464 113 033
2014 275 510 836 275 510 836 368 820 368 820 54 407 872 42 259 258 96 667 129 372 546 785 84 000 000 84 000 000 84 000 000 528 596 528 596 92 207 69 859 39 017 991 202 074 730 670 457 277 455
480 490 500 510 520 530 540 550 560 570 580 590 600 610 620 630 640 650 660 670 680 690 700 710 720 730 740 750 760 770 780 790 800 810 820 830 840 850 860 870 880 890 900 910 920 930 940 950 960 970 980
30 510 836 368 820 368 820 (4 809 669) 1 275 (4 808 394) 26 071 262 3 921 3 921 44 573 3 897 51 920 3 350 103 740 107 661 26 178 923
Nr. n.s. 1 1.1
ASSETS Long-Term Assets Intangible assets Intangible assets (111,112) Intangible assets amortization (113) Intangible assets ( 010-020)
No
2015 -
2016 529 116 080 (202 277 649) 326 838 431 48 410 48 410 326 886 841 236 676 201 000 437 676 6 406 120 141 489 6 547 610 17 002 372 102 899 687 119 902 059 6 717 126 894 062 453 780 903
2017 529 116 080 (232 739 360) 296 376 720 48 410 48 410 296 425 130 248 509 211 050 459 560 6 726 436 148 564 6 875 000 21 777 000 131 796 114 153 573 114 7 053 160 914 727 457 339 857
2018 529 116 080 (263 201 071) 265 915 009 48 410 48 410 265 963 419 260 935 221 603 482 538 7 062 758 155 992 7 218 750 31 028 162 187 784 871 218 813 033 7 406 226 521 727 492 485 146
2019 529 116 080 (293 662 782) 235 453 298 48 410 48 410 235 501 708 273 982 232 683 506 665 7 415 896 163 792 7 579 688 40 623 095 245 854 156 286 477 251 7 776 294 571 380 530 073 088
2020 529 116 080 (324 124 493) 204 991 587 48 410 48 410 205 039 997 287 681 244 317 531 998 7 786 691 171 981 7 958 672 50 578 987 306 107 996 356 686 983 8 165 365 185 818 570 225 815
010 020 030 040 050 060 070 080 090
529 116 080 (171 815 939) 357 300 141 48 410 48 410 357 348 551 225 405
1,2
Long-Term material Assets working material assets (121) Land(122) Fixed assets (123) Natural ressources (125) Depreciation of fixed assets (124,126) Long-Term material Assets (040+050+ 060+070-080)
1,3
Long-Term financial Assets Longterm investments unrelated parties (131) Long-term investments related parties (132) Change of Long-term investments (133) Long-term receivables (134) Deffered income tax (135) expenses paid in advance (136) Total 1.3 (100+110+120+ +130+140+150)
100 110 120 130 140 150 160 170 180
1,4
190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350
191 429 416 834 6 100 896 134 752 6 235 647 -
360 370 380 390 400 410 420 430 440 450 460 470
12 718 244 76 971 812 89 690 057 6 398 96 348 936 453 697 487
Nr. LIABILITIES n.s. 3 3.1 EQUITY Share and additional capital Share capital (311) Additional capital (312) Unpaid capital (313) Capital withdraw (314) Total.3.1 (480+490-500-510) Reserves 3,2 Reserves according to law (321) Reserves according to statutory doc. (322) Others (323) Total 3.2 (530+540+550) Profit and loss surplus (331) 3,3 Retained earnings (uncovered loss) of previous years (332) Net profit (loss) (333) Used profit (334) Total 3.3 ( 570580 590600) Secondary capital 3,4 Differences from revaluation of long term assets (341) Grants (342) Total 3.4 (620630) TOTAL chapter 3 (520+560610640) 4. 4.1 Long term liabilities Financial Long term liabilities Bank credits (411,412) Loans (413) Others (414) Total 4.1 (660+670+680) Accounted Long term liabilities 4,2 Lease Long term liabilities (421) Anticipated long-term revenue (422) Special revenues (423) Revenues received in advance (424) Deffered tax(425) Others (426) Total 4.2 (700+710+720+ 730+740+750) Total chapter 4 (690+760) 5 5.1 Short term liabilities Financial short term liabilities Bank credits (511,512) Loans (513) Current share of long-term liabilities (514) Others (515, 516) Total.5.1 (780+790+800+810) Short term commercial liabilities 5,2 Short term commercial liabilities (521) Short term liabilities to related parties (522) Revenues received in advance(523) Total 5.2 (830+840+850) Acconted Short term liabilities 5,3 Accounted salary (531) Other accounted liabilities to personnel (532) Accounted Social insurance (533) Taxes payable (534) Preliminary liabilities (535) Extrabudget liabilities (536) Shareholders payable (537) future expenses and payments provisions (538) Others (539) Total 5.3 (870+880+890+ 900+910+920+930+940+950) TOTAL chapter 5 (820+860+960) TOTAL LIABILITIES (650+770+970)
Cod
2015 275 510 836
2016 275 510 836 275 510 836 368 820 368 820 93 313 566 55 474 124 148 787 690 424 667 346 28 000 000 28 000 000 28 000 000 890 770 890 770 101 658 77 019 43 016 1 093 222 787 1 113 557 453 780 903
2017 275 510 836 275 510 836 368 820 368 820 117 592 386 62 390 607 179 982 994 455 862 650 1 243 281 1 243 281 106 741 80 870 45 167 1 148 233 926 1 477 207 457 339 857
2018 275 510 836 275 510 836 368 820 368 820 145 219 536 69 526 915 214 746 451 490 626 107 1 613 416 1 613 416 112 078 84 914 47 426 1 205 245 623 1 859 039 492 485 146
2019 275 510 836 275 510 836 368 820 368 820 177 559 432 74 374 038 251 933 470 527 813 126 2 002 058 2 002 058 117 682 89 160 49 797 1 265 257 904 2 259 962 530 073 088
2020 275 510 836 275 510 836 368 820 368 820 212 201 712 79 463 516 291 665 228 567 544 884 2 410 132 2 410 132 123 566 93 618 52 287 1 329 270 799 2 680 931 570 225 815
480 490 500 510 520 530 540 550 560
275 510 836 368 820 368 820 -
570 580 590 600 610 620 630 640 650 660 670 680 690 700 710 720 730 740 750 760 770 780 790 800 810 820 830 840 850 860 870 880 890 900 910 920 930 940 950 960 970 980 72 283 630 48 766 997 121 050 628 396 930 284 56 000 000 56 000 000 56 000 000 555 026 555 026 96 817 73 352 40 968 1 041 212 178 767 204 453 697 488
Annex 12. Calculation of investment efficiency
2011 Capital investment Inputs Outputs ratio of Actualization Updated flow Treasury flow Accumulated flow 0 -459 905 035 -459 905 035 10% 459 905 036 22 921 430 2 819 248 1,10 18 274 711 20 102 183 -441 630 324
2012
2013
2014
2015
63 999 263 3 019 648 1,21 50 396 376 60 979 615 -391 233 948
85 612 656 17 179 160 1,33 51 415 098 68 433 496 -339 818 850
89 893 289 14 538 118 1,46 51 468 595 75 355 170 -288 350 254
94 387 953 11 905 024 1,61 51 215 409 82 482 929 -237 134 845
Period of Recoverability Net Present Value Rates of Return Profitability Index
T VNA RIR (PI)
9,9 ani 4 201 022 MDL 10% 1,01
0 Capital investment Inputs Outputs ratio of Actualization Updated flow Treasury flow Accumulated flow -459 905 035 -459 905 035 10% 459 905 036
2016
2017
2018
2019
2020
99 107 351 9 280 275 1,77 50 705 042 89 827 075 -186 429 803
104 062 718 6 664 289 1,95 49 980 795 97 398 429 -136 449 008
109 265 854 4 057 504 2,14 49 080 472 105 208 351 -87 368 536
114 729 147 4 260 379 2,36 46 849 541 110 468 768 -40 518 995
120 465 604 4 473 398 2,59 44 720 017 115 992 206 4 201 022
T VNA RIR (PI)
9,9 ani 4 201 022 MDL 10% 1,01
Annex 13. Financial indicators
Optimal value Formula
Forecast 2008 2009 2010 2011 2012 2013 2014
liquidity indicators
Liquidity Ratio (Coverage) Intermediate Liquidity (Acid Test) Immediate liquidity Working capital (thousand, MDL) >1,5 >0,7 >0,1
Current assets / Current liabilities (Cash + Short-term receivables) / Current Liabilities Cash / Current Liabilities Current Assets-Current Liabilities
14,22 7,74 1,40 1 423,6 99,6% 0,00 0,05 366 -
11,23 5,75 0,09 1 255,3 99,5% 0,00 0,05 4 830,0 4 560,0 269,9 127,7 1,6 267,0 365 -1% -1% 53% -17%
12,16 7,28 0,07 1 537,7 99,5% 0,01 0,06 4 388,5 4 129,8 258,6 143,0 1,6 240,6 365 0% 0% 53% 2%
18,95 15,96 13,34 10 829,5 99,8% 0,00 0,04 2 324,9 2 228,2 96,7 19,0 15,7 83,9 365 7% 11% 11% 78% 72%
38,29 36,25 29,99 24 712,8 70,3% 0,30 0,05 -
65,88 64,49 56,46 45 145,2 75,7% 0,24 0,10 4,98 1,46 1,9
95,07 94,12 86,00 68 736,5 81,5% 0,19 0,15 6,36 1,60 2,1 1 828,0 1 599,2 228,8 22,9 5,9 9,4 365 10% 12% 9% 65% 46%
financial stability
Capital Adequacy Ratio Leverage Ratio Financial Stability Coefficient Interest Coverage Ratio Debt Service Ratio debt service rate >1,2 >30% <2,33
Equity / Total assets Loan Capital / Equity (Permanent Capital - Activelle long term) / Total assets * Profit before tax + interest / interest amount (Interest payment + payment + Net loans) / (Interest + Payment loans LDAP) (Net income + depreciation + interest over the period) / (loan + interest over time) average balances of assets x n / net sales average balances of long term assets x n / net sales average balances of current assets x n / net sales Average balances of short-term debt x n / net sales Average debt balances payable x n / cost of sales Average balances of goods and materials stocks x n / cost of sales n Net profit / investment cost Net profit / average equity Net profit / average assets gross profit / net sales Net profit / net sales
turnover speed
Time of turnover of assets (days) Time of turnover of long term assets (days) Time of turnover of current assets Time of turnover of short-term receivables (days) Time of turnover of loan debt (days) Time of turnover of stocks of commodities and materials (days) Number of days per period, days
2 119,5 2 017,3 102,2 15,9 12,0 40,4 366 10% 14% 12% 78% 68%
1 954,5 1 806,1 148,4 20,3 5,6 13,2 365 8% 10% 8% 64% 41%
profitability
Investment Profitability Return On Equity (ROE) Return On Assets (ROA) Gross Margin (%) Net Profit Margin * Permanent Capital = Equity + Long Term Debt
0 Optimal value Formula
Forecast 2015 2016 2017 2018 2019 2020
Liquidity Ratio (Coverage) Intermediate Liquidity (Acid Test) Immediate liquidity Working capital (thousand, MDL) >1,5 >0,7 >0,1 0 >30% <2,33 0 0 0 >1,2
Current assets / Current liabilities (Cash + Short-term receivables) / Current Liabilities Cash / Current Liabilities Current Assets-Current Liabilities Equity / Total assets Loan Capital / Equity (Permanent Capital - Activelle long term) / Total assets * Profit before tax + interest / interest amount (Interest payment + payment + Net loans) / (Interest + Payment loans LDAP) (Net income + depreciation + interest over the period) / (loan + interest over time) average balances of assets x n / net sales average balances of long term assets x n / net sales average balances of current assets x n / net sales Average balances of short-term debt x n / net sales Average debt balances payable x n / cost of sales Average balances of goods and materials stocks x n / cost of sales n Net profit / investment cost Net profit / average equity Net profit / average assets gross profit / net sales Net profit / net sales
125,58 125,03 116,91 95 581,7 87,5% 0,13 0,21 8,69 1,74 2,4 1 721,3 1 408,0 313,3 23,0 6,2 6,3 365 11% 13% 11% 67% 50%
113,95 113,55 107,67 125 780,5 93,6% 0,06 0,28 13,38 1,90 2,7 1 637,5 1 234,7 402,8 23,1 8,2 4,9 366 13% 14% 12% 68% 55%
108,93 108,62 103,96 159 437,5 99,7% 0,00 0,35 27,54 2,09 3,1 1 561,5 1 068,2 493,2 23,0 12,1 5,1 365 14% 14% 14% 70% 59%
121,85 121,59 117,70 224 662,7 99,6% 0,00 0,46 1 550,3 917,9 632,4 23,0 16,2 5,3 365 16% 15% 15% 71% 62%
130,34 130,12 126,76 292 311,4 99,6% 0,00 0,55 1 589,5 779,5 810,0 23,0 20,4 5,6 365 17% 15% 15% 72% 63%
136,22 136,01 133,05 362 504,9 99,5% 0,00 0,64 1 633,4 654,0 979,4 23,1 24,9 5,9 366 18% 15% 14% 74% 64%
financial stability
Capital Adequacy Ratio Leverage Ratio Financial Stability Coefficient Interest Coverage Ratio Debt Service Ratio debt service rate
turnover speed
profitability
Annex 14. Calculation of wear
Initial cost
lei
Depreciation ratio
(%)
Residual value
lei
Value of annual depreciation

lei
Refrigerator equipment phase 1 Packing house equipment phase 1 Refrigerator equipment phase 2 Packing house equipment phase 2 Current fixed assets Utilities new investments in repairs Total
72 000 000
26 127 360 72 000 000 26 127 360 24 194 429 17 779 951 227 473 749
10% 10% 10% 10% 5% 5% 5%
7 200 000 2 612 736 7 200 000 2 612 736 1 209 721 888 998 11 373 687 20 835 193
6 480 000 2 351 462 6 480 000 2 351 462 1 149 235 844 548 10 805 003 30 461 711
196 254 720
Investment item Investment in construction of the refrigerator, including refrigeration equipment refrigeration machinery Investment in the construction of a packing house, including packing house equipment packing house machinery Investing in utilities (road, sewer, water, gas, etc.. ) Investing in the repairation of buildings Total, amount Total, % Ratio Eur = Ratio Usd =
Size (LxlxH m) 144x100x10,8
Space (sq.m.) 14 400
Volume(cub. m.) 155 520
Capacity(t) 30 000
total amount 9 000 000 5 400 000 3 600 000
144x70x10,8
10 080
108 864
21 773
3 265 920 1 959 552 1 306 368 1 111 247
50 020
14 217 109 27 594 276 100%
16,00 12,00
2012 30 000 ton
2013 30 000 ton
2014 30 000 ton
2015 30 000 ton
2016 30 000 ton
Price per kg storage services (lei 0,30 lei/kg/month 0,32 lei/kg/month 0,33 lei/kg/month 0,35 lei/kg/month 0,36 lei/kg/month 0,38 lei/kg/month / month) Price per kg (sorting and 0,50 lei/kg 0,55 lei/kg 0,60 lei/kg 0,63 lei/kg 0,66 lei/kg 0,69 lei/kg packaging) (lei / kg) Sales plan for 2011 jan 0% Storage Income sorting and packaging Income Total Sales plan for 2012 jan 70% Storage Income sorting and packaging Income Total Sales plan for 2013 jan 70% Storage Income sorting and packaging Income Total Incomes Storage Income sorting and packaging Income Total 6 945 750 2 475 000 9 420 750 lei 2011 20 250 000 1 125 000 21 375 000 lei feb 55% 5 457 375 2 475 000 7 932 375 lei 2012 51 933 938 12 562 500 64 496 438 lei mar 35% 3 472 875 3 300 000 6 772 875 lei 2013 64 992 375 24 825 000 89 817 375 lei apr 0% 0 5 775 000 5 775 000 lei 2014 68 241 994 26 066 250 94 308 244 lei may 0% 0 0 0 lei 2015 71 654 093 27 369 563 99 023 656 lei jun 10% 992 250 0 992 250 lei 2016 75 236 798 28 738 041 103 974 839 lei 3 150 000 1 125 000 4 275 000 lei feb 55% 2 475 000 1 125 000 3 600 000 lei mar 35% 1 575 000 1 500 000 3 075 000 lei apr 0% 0 2 625 000 2 625 000 lei may 0% 0 0 0 lei jun 10% 472 500 0 472 500 lei 0 0 0 lei feb 0% 0 0 0 lei mar 0% 0 0 0 lei apr 0% 0 0 0 lei may 0% 0 0 0 lei jun 0% 0 0 0 lei
2018 30 000 ton
2019 30 000 ton
2020 30 000 ton
Price per kg storage services (lei 0,40 lei/kg/month 0,42 lei/kg/month 0,44 lei/kg/month 0,47 lei/kg/month / month) Price per kg (sorting and 0,73 lei/kg 0,77 lei/kg 0,80 lei/kg 0,84 lei/kg packaging) (lei / kg)
Sales plan for 2011 jul 0% Storage Income sorting and packaging Income Total 0 0 0 lei aug 70% 3 150 000 0 3 150 000 lei sep 100% 4 500 000 0 4 500 000 lei oct 100% 4 500 000 0 4 500 000 lei nov 95% 4 275 000 375 000 4 650 000 lei dec 85% 3 825 000 750 000 4 575 000 lei Total 0% 20 250 000 1 125 000 21 375 000 lei
Sales plan for 2012 jul 35% Storage Income sorting and packaging Income Total 1 736 438 825 000 2 561 438 lei aug 70% 6 615 000 2 887 500 9 502 500 lei sep 100% 9 450 000 0 9 450 000 lei oct 100% 9 450 000 0 9 450 000 lei nov 95% 8 977 500 825 000 9 802 500 lei dec 85% 8 032 500 1 650 000 9 682 500 lei Total 0% 51 933 938 12 562 500 64 496 438 lei
Sales plan for 2013 jul 35% Storage Income sorting and packaging Income Total Incomes Storage Income sorting and packaging Income Total 3 472 875 1 800 000 5 272 875 lei 2017 78 998 638 30 174 943 109 173 581 lei aug 70% 6 945 750 6 300 000 13 245 750 lei 2018 82 948 570 31 683 690 114 632 260 lei sep 100% 9 922 500 0 9 922 500 lei 2019 87 095 998 33 267 874 120 363 873 lei oct 100% 9 922 500 0 9 922 500 lei 2020 91 450 798 34 931 268 126 382 066 lei 0 0 0 lei nov 95% 9 426 375 900 000 10 326 375 lei 0 0 0 0 lei dec 85% 8 434 125 1 800 000 10 234 125 lei 0 0 0 0 lei Total 0% 64 992 375 24 825 000 89 817 375 lei 0
2010
2011
17 713 250,00 lei/sq.m.
2012
17 713 262,50 lei/sq.m.
2013
17 713 275,63 lei/sq.m.
2014
17 713 289,41 lei/sq.m.
2015
17 713 303,88 lei/sq.m.
Annual income
2 256 636 lei

31 034
4 428 250 lei

12 414 300,00 lei/sq.m.
4 649 663 lei

31 034 315,00 lei/sq.m.
4 882 146 lei

31 034 330,75 lei/sq.m.
5 126 253 lei

31 034 347,29 lei/sq.m.
5 382 566 lei

31 034 364,65 lei/sq.m.
Annual income Total
3 724 080 lei 8 152 330 lei
9 775 710 lei 14 425 373 lei
10 264 496 lei 15 146 641 lei
10 777 720 lei 15 903 973 lei
11 316 606 lei 16 699 172 lei
2016
2017
17 713 335,02 lei/sq.m.
2018
17 713 351,78 lei/sq.m.
2019
17 713 369,36 lei/sq.m.
2020
17 713 387,83 lei/sq.m.
Annual income
5 651 694 lei

31 034 382,88 lei/sq.m.
5 934 279 lei

31 034 402,03 lei/sq.m.
6 230 992 lei

31 034 422,13 lei/sq.m.
6 542 542 lei

31 034 443,24 lei/sq.m.
6 869 669 lei

31 034 465,40 lei/sq.m.
Annual income Total
11 882 437 lei 17 534 130 lei
12 476 558 lei 18 410 837 lei
13 100 386 lei 19 331 379 lei
13 755 406 lei 20 297 948 lei
14 443 176 lei 21 312 845 lei
Operational income 1. Income from lease of available spaces, including - current residents - new residents 2. Income from refrigerator 3. Income from the operation of the packing house 4. Income from consulting services Total VAT from SALES Net sales
2011 amount 8 152 330 4 428 250 3 724 080 20 250 000 1 125 000 150 000 29 677 330 4 946 222 24 731 108
2012 amount 14 425 373 4 649 663 9 775 710 51 933 938 12 562 500 157 500 79 079 310 13 179 885 65 899 425
2013 amount 15 146 641 4 882 146 10 264 496 64 992 375 24 825 000 165 375 105 129 391 17 521 565 87 607 826
2014 amount 15 903 973 5 126 253 10 777 720 68 241 994 26 066 250 173 644 110 385 861 18 397 643 91 988 217
2015 amount 16 699 172 5 382 566 11 316 606 71 654 093 27 369 563 182 326 115 905 154 19 317 526 96 587 628
Operational income 1. Income from lease of available spaces, including - current residents - new residents 2. Income from refrigerator 3. Income from the operation of the packing house 4. Income from consulting services Total 0 VAT from SALES Net sales
2016 amount 17 534 130 5 651 694 11 882 437 75 236 798 28 738 041 191 442 121 700 411
2017 amount 18 410 837 5 934 279 12 476 558 78 998 638 30 174 943 201 014 127 785 432
2018 amount 19 331 379 6 230 992 13 100 386 82 948 570 31 683 690 211 065 134 174 704
2019 amount 20 297 948 6 542 542 13 755 406 87 095 998 33 267 874 221 618 140 883 439
2020 amount 21 312 845 6 869 669 14 443 176 91 450 798 34 931 268 232 699 147 927 611
0% 0% 0% 0% 0% 20 283 402 21 297 572 22 362 451 23 480 573 24 654 602 101 417 010 106 487 860 111 812 253 117 402 866 123 273 009

2011 Direct consumptions Raw material Electrical power Salary Other costs subtotal Total direct consumptions amont 45 000 50 000 360 000 5 000 460 000 460 000 2012 amont 47 250 52 500 378 000 5 250 483 000 483 000 2013 amont 49 613 55 125 396 900 5 513 507 150 507 150 2014 amont 52 093 57 881 416 745 5 788 532 508 532 508 2015 amont 54 698 60 775 437 582 6 078 559 133 559 133
2011 Indirect consumptions Reparation and maintenance of fixed assets fixed assets depreciation subtotal Total indirect consumptions amont 1 000 000 4 093 056 5 093 056 5 093 056
2012 amont 1 050 000 12 924 519 13 974 519 13 974 519
2013 amont 1 102 500 30 461 711 31 564 211 31 564 211
2014 amont 1 157 625 30 461 711 31 619 336 31 619 336
2015 amont 1 215 506 30 461 711 31 677 217 31 677 217
2011 Managing expenses 1. Commercial expenses Marketing, promotion Other commercial expenses subtotal 2. General and administrative expenses Salary + social insurance Transportation Banking and telephone expenses Administrative mainenance Taxes Other General and administrative expenses subtotal 3. Other operational expenses Interest rate Other operational expenses subtotal Total Operational expenses Total expenses 0 30 000 30 000 1 701 000 7 254 056 1 260 000 130 000 60 000 20 000 51 000 70 000 1 591 000 70 000 10 000 80 000 amont
2012 amont
2013 amont
2014 amont
2015 amont
73 500 10 500 84 000 1 323 000 136 500 63 000 21 000 53 550 73 500 1 670 550 0 31 500 31 500 1 786 050 16 243 569
77 175 11 025 88 200 1 389 150 143 325 66 150 22 050 56 228 77 175 1 754 078 14 000 000 33 075 14 033 075 15 875 353 47 946 713
81 034 11 576 92 610 1 458 608 150 491 69 458 23 153 59 039 81 034 1 841 781 11 200 000 34 729 11 234 729 13 169 120 45 320 964
85 085 12 155 97 241 1 531 538 158 016 72 930 24 310 61 991 85 085 1 933 870 8 400 000 36 465 8 436 465 10 467 576 42 703 926

2016 Direct consumptions Raw material Electrical power Salary Other costs subtotal 0 Total direct consumptions Suma 57 433 63 814 459 461 6 381 587 090 587 090 0 2017 Suma 60 304 67 005 482 434 6 700 616 444 616 444 0 2018 Suma 63 320 70 355 506 556 7 036 647 266 647 266 0 2019 Suma 66 485 73 873 531 884 7 387 679 630 679 630 0 2020 Suma 69 810 77 566 558 478 7 757 713 611 713 611 0
2016 Indirect consumptions Reparation and maintenance of fixed assets fixed assets depreciation subtotal 0 Total indirect consumptions Suma 1 276 282 30 461 711 31 737 992 31 737 992 0
2017 Suma 1 340 096 30 461 711 31 801 807 31 801 807 0
2018 Suma 1 407 100 30 461 711 31 868 811 31 868 811 0
2019 Suma 1 477 455 30 461 711 31 939 166 31 939 166 0
2020 Suma 1 551 328 30 461 711 32 013 039 32 013 039 0
2016 Managing expenses 1. Commercial expenses Marketing, promotion Other commercial expenses subtotal 2. General and administrative expenses Salary + social insurance Transportation Banking and telephone expenses Administrative mainenance Taxes Other General and administrative expenses subtotal 3. Other operational expenses Interest rate Other operational expenses subtotal 0 Total Operational expenses Total expenses 0 5 600 000 38 288 5 638 288 7 770 955 40 096 037 0 0 1 608 115 165 917 76 577 25 526 65 090 89 340 2 030 564 89 340 12 763 102 103 Suma
2017 Suma
2018 Suma
2019 Suma
2020 Suma
93 807 13 401 107 208 1 688 521 174 212 80 406 26 802 68 345 93 807 2 132 092 2 800 000 40 203 2 840 203 5 079 503 37 497 753 0 0
98 497 14 071 112 568 1 772 947 182 923 84 426 28 142 71 762 98 497 2 238 697 0 42 213 42 213 2 393 478 34 909 555 0 0
103 422 14 775 118 196 1 861 594 192 069 88 647 29 549 75 350 103 422 2 350 632 0 44 324 44 324 2 513 152 35 131 948 0 0
108 593 15 513 124 106 1 954 674 201 673 93 080 31 027 79 118 108 593 2 468 163 0 46 540 46 540 2 638 809 35 365 459 0 0

Total 2009 I A Operational Activity cash earnings earnings from sales earnings from space leasing earnings from refrigerator leasing earnings from packing house earnings from consulting earnings from receivables other earnings Total earnings cash payments Payments to suppliers and contractors Salary and social insrance payments interest payments payment of income tax other payments (including VAT) Taxes VAT Others Total payments NET FLOW from OPERATIONAL ACTIVITY C Investment Activity earnings from the output of long term assets payments for purchase of long term assets payment for refrigerator construction payment for packing house construction payment for utilities payment for reparation of buildings Interest received Dividends received others NET FLOW from INVESTMENT ACTIVITY D Financial Activity earnings from loans and credits earnings from the issue of own shares others Sub-total payments for loans and credits dividend payment payments for purchasing of own shares others Sub-total NET FLOW from FINANCIAL ACTIVITY NET FLOW from economic activity Exceptional earnings (payments) H TOTAL NET FLOW Exchange differences I J Cash balance at the beginning of the period Cash balance at the end of the period 150 985 11 252 11 252 9 206 9 206 8 048 827 8 048 827 19 873 720 19 873 720 39 285 798 39 285 798 62 834 963 62 834 963 89 690 057 (139 733) (2 046) 8 039 621 11 824 894 19 412 078 23 549 165 26 855 094 1 689 483 2 046 935 28 193 464 7 744 714 19 237 500 1 068 750 142 500 76 609 211 13 704 104 49 337 241 11 934 375 149 625 1 483 867 76 609 211 1 564 500 1 701 000 4 991 661 12 561 002 53 550 12 507 452 20 818 162 55 791 049 103 904 985 14 389 309 61 742 756 23 583 750 157 106 4 032 064 103 904 985 1 642 725 1 786 050 14 000 000 3 993 490 17 099 938 56 228 17 043 710 38 522 203 65 382 783 110 335 251 15 108 775 64 829 894 24 762 938 164 962 5 468 683 110 335 251 1 724 861 1 875 353 11 200 000 4 695 473 18 160 771 59 039 18 101 732 37 656 457 72 678 794 115 917 015 15 864 213 68 071 389 26 001 084 173 210 5 807 118 115 917 015 1 811 104 1 969 120 8 400 000 5 418 555 19 079 643 61 991 19 017 652 36 678 422 79 238 592 Total 2010 Total 2011 Total 2012 Total 2013 Total 2014 Total 2015
61 642 1 751 125 461 616 960 750 498 825
64 640 2 111 575 556 635 992 864 601 503
28 193 464 1 490 000 1 620 000 4 501 577 51 000 4 450 577 7 611 577 20 581 886
498 825 1 921 191 (170 066) 30 333 -
601 503 2 151 001 (39 426) 37 380 -
257 542 265 72 000 000 26 127 360 11 556 968 147 857 937
183 966 155 72 000 000 26 127 360 6 222 983 79 615 812
30 333 -
37 380 -
(257 542 265) 245 000 000 245 000 000 -
(183 966 155) 140 000 000 140 000 000 -
28 000 000 17 970 705
28 000 000 21 129 629
28 000 000 24 383 499
(139 733)
(2 046)
245 000 000 8 039 621
140 000 000 11 824 894
45 970 705 (45 970 705) 19 412 078
49 129 629 (49 129 629) 23 549 165
52 383 499 (52 383 499) 26 855 094

Total 2016 I A Operational Activity cash earnings earnings from sales earnings from space leasing earnings from refrigerator leasing earnings from packing house earnings from consulting earnings from receivables other earnings Total earnings cash payments Payments to suppliers and contractors Salary and social insrance payments interest payments payment of income tax other payments (including VAT) Taxes VAT Others Total payments NET FLOW from OPERATIONAL ACTIVITY C Investment Activity earnings from the output of long term assets payments for purchase of long term assets payment for refrigerator construction payment for packing house construction payment for utilities payment for reparation of buildings Interest received Dividends received others NET FLOW from INVESTMENT ACTIVITY D Financial Activity earnings from loans and credits earnings from the issue of own shares others Sub-total payments for loans and credits dividend payment payments for purchasing of own shares others Sub-total NET FLOW from FINANCIAL ACTIVITY NET FLOW from economic activity Exceptional earnings (payments) H TOTAL NET FLOW Exchange differences I J Cash balance at the beginning of the period Cash balance at the end of the period 121 716 286 16 657 424 71 474 958 27 301 139 181 870 6 100 896 121 716 286 1 901 660 2 067 576 5 600 000 6 163 792 20 034 195 65 090 19 969 104 35 767 222 85 949 064 28 000 000 27 737 062 55 737 062 (55 737 062) 30 212 002 30 212 002 89 690 057 119 902 059 Total 2017 127 802 281 17 490 295 75 048 706 28 666 196 190 964 6 406 120 127 802 281 1 996 743 2 170 955 2 800 000 6 932 290 21 035 935 68 345 20 967 590 34 935 922 92 866 359 28 000 000 31 195 304 59 195 304 (59 195 304) 33 671 055 33 671 055 119 902 059 153 573 114 Total 2018 134 192 404 18 364 810 78 801 141 30 099 505 200 512 6 726 436 134 192 404 2 096 580 2 279 503 7 725 213 22 087 733 71 762 22 015 971 34 189 028 100 003 376 34 763 457 34 763 457 (34 763 457) 65 239 919 65 239 919 153 573 114 218 813 033 Total 2019 140 902 025 19 283 050 82 741 198 31 604 481 210 537 7 062 758 140 902 025 2 201 409 2 393 478 8 263 782 23 192 120 75 350 23 116 769 36 050 788 104 851 237 37 187 019 37 187 019 (37 187 019) 67 664 218 67 664 218 218 813 033 286 477 251 Total 2020 147 947 126 20 247 203 86 878 258 33 184 705 221 064 7 415 896 147 947 126 2 311 479 2 513 152 8 829 280 24 351 726 79 118 24 272 608 38 005 636 109 941 490 39 731 758 39 731 758 (39 731 758) 70 209 732 70 209 732 286 477 251 356 686 983
No row 1. Net sales 2. Cost of sales 3. Gross Profit 4. Other operational income 5.Commercial expenses 6. General & administrative expenses 7.Other operational expenses 8. Results from operating activities (3+4-5-67) 9.Results from investment activity 10. Results from financial activity 11.Results of financial and economic activity (8+9+10) 12.Results from exceptional activity 13.Profit before taxes (11+12) 14.Income tax 15.Net profit (13+14) 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
2009 1 966 966 927 912 1 039 054 15 874
2010 2 154 668 1 012 694 1 141 974 17 307
2011 24 731 108 5 369 723 19 361 385 66 667
2012 65 899 425 14 265 019 51 634 406 70 000 1 621 550 26 250 49 916 606
2013 87 607 826 31 869 236 55 738 590 73 500 1 702 628 14 027 563 39 934 900
2014 91 988 217 31 939 612 60 048 605 77 175 1 787 759 11 228 941 46 954 731
1 412 525 3 288 (360 885) 29 904
1 152 525 3 288 3 468 37 380
1 544 333 25 000 17 725 385
(330 981)
40 848
17 725 385
49 916 606
39 934 900
46 954 731
(330 981)
40 848
17 725 385
49 916 606 (4 991 661)
39 934 900 (3 993 490) 35 941 410
46 954 731 (4 695 473) 42 259 258
(330 981)
40 848
17 725 385
44 924 946
0 No row 1. Net sales 2. Cost of sales 3. Gross Profit 4. Other operational income 5.Commercial expenses 6. General & administrative expenses 7.Other operational expenses 8. Results from operating activities (3+4-5-6-7) 9.Results from investment activity 10. Results from financial activity 11.Results of financial and economic activity (8+9+10) 12.Results from exceptional activity 13.Profit before taxes (11+12) 14.Income tax 15.Net profit (13+14) 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
2015 96 587 628 32 013 507 64 574 121 81 034 1 877 147 8 430 388 54 185 553 54 185 553 54 185 553 (5 418 555) 48 766 997
2016 101 417 010 32 091 097 69 325 912 85 085 1 971 004 5 631 907 61 637 916 61 637 916 61 637 916 (6 163 792) 55 474 124
2017 106 487 860 32 172 566 74 315 294 89 340 2 069 554 2 833 502 69 322 897 69 322 897 69 322 897 (6 932 290) 62 390 607
2018 111 812 253 32 258 109 79 554 144 93 807 2 173 032 35 178 77 252 128 77 252 128 77 252 128 (7 725 213) 69 526 915
2019 117 402 866 32 347 929 85 054 937 98 497 2 281 684 36 936 82 637 819 82 637 819 82 637 819 (8 263 782) 74 374 038
2020 123 273 009 32 442 240 90 830 769 103 422 2 395 768 38 783 88 292 796 88 292 796 88 292 796 (8 829 280) 79 463 516
1 1.1
ASSETS Long-Term Assets Intangible assets Intangible assets (111,112) Intangible assets amortization (113) Intangible assets ( 010-020) Long-Term material Assets 1,2 working material assets (121) Land(122) Fixed assets (123) Natural ressources (125) Depreciation of fixed assets (124,126) Long-Term material Assets (040+050+ 060+070-080) Long-Term financial Assets Long1,3 term investments unrelated parties (131) Long-term investments related parties (132) Change of Long-term investments (133) Long-term receivables (134) Deffered income tax (135) expenses paid in advance (136) Total 1.3 (100+110+120+ +130+140+150)
No
2008 -
2009 15 566 87 607 660 (63 171 674) 24 451 552 48 410 48 410 24 499 962 165 214 45 129 457 635 667 978 173 280 387 20 694 499 686 694 047 1 000 10 252 11 252 4 774 1 378 051 25 878 013
2010 15 566 87 607 660 (63 413 231) 24 209 995 48 410 48 410 24 258 405 162 668 45 018 459 682 667 368 303 240 20 694 670 016 993 950 1 305 7 900 9 206 5 013 1 675 536 25 933 941
2011 159 414 905 185 735 020 (67 506 287) 277 643 638 48 410 48 410 277 692 048 185 442 1 616 188 1 801 630 1 483 867 93 123
2012 -
2013 -
2014 -
010 020 030 040 050 060 070 080 090
15 566 87 513 844 (62 930 117) 24 599 293 48 410
529 116 080 (80 430 806) 448 685 274 48 410 48 410 448 733 684 194 714 1 153 079 1 347 793 4 032 064 116 404 -
529 116 080 (110 892 517) 418 223 563 48 410 48 410 418 271 973 204 449 754 102 958 551 5 468 683 122 224 5 590 907 5 570 811 33 714 987 39 285 798 5 803 45 841 060 464 113 033
529 116 080 (141 354 228) 387 761 852 48 410 48 410 387 810 262 214 672 476 012 690 684 5 807 118 128 335 5 935 454 8 910 134 53 924 829 62 834 963 6 093 69 467 193 457 277 456
100 110 120 130 140 150 160 170 180 48 410 24 647 703 168 330 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 45 291 469 467 6 250 689 338 218 559 455 2 572 461 133 682 719 360 370 380 390 400 410 420 430 440 450 460 470 21 410 129 575 150 985 8 178 1 531 220 26 178 923 1 141 341 6 907 486 8 048 827 5 263 11 432 709 289 124 757 2 818 137 17 055 584 19 873 720 5 527 25 375 507 474 109 191
1,4
1 576 990 -
4 148 467 -
Nr. LIABILITIES n.s. 3 3.1 EQUITY Share and additional capital Share capital (311) Additional capital (312) Unpaid capital (313) Capital withdraw (314) Total.3.1 (480+490-500-510) Reserves 3,2 Reserves according to law (321) Reserves according to statutory doc. (322) Others (323) Total 3.2 (530+540+550) 3,3 Profit and loss surplus (331) Retained earnings (uncovered loss) of previous years (332) Net profit (loss) (333) Used profit (334) Total 3.3 ( 570580 590600) Secondary capital 3,4 Differences from revaluation of long term assets (341) Grants (342) Total 3.4 (620630) TOTAL chapter 3 (520+560610640) 4. 4.1 Long term liabilities Financial Long term liabilities Bank credits (411,412) Loans (413) Others (414) Total 4.1 (660+670+680) Accounted Long term liabilities 4,2 Lease Long term liabilities (421) Anticipated long-term revenue (422) Special revenues (423) Revenues received in advance (424) Deffered tax(425) Others (426) Total 4.2 (700+710+720+ 730+740+750) Total chapter 4 (690+760) 5 5.1 Short term liabilities Financial short term liabilities Bank credits (511,512) Loans (513) Current share of long-term liabilities (514) Others (515, 516) Total.5.1 (780+790+800+810) Short term commercial liabilities 5,2 Short term commercial liabilities (521) Short term liabilities to related parties (522) Revenues received in advance(523) Total 5.2 (830+840+850) Acconted Short term liabilities 5,3 Accounted salary (531) Other accounted liabilities to personnel (532) Accounted Social insurance (533) Taxes payable (534) Preliminary liabilities (535) Extrabudget liabilities (536) Shareholders payable (537) future expenses and payments provisions (538) Others (539) Total 5.3 (870+880+890+ 900+910+920+930+940+950) TOTAL chapter 5 (820+860+960) TOTAL LIABILITIES (650+770+970)
Cod
2008 30 510 836
2009 30 510 836 30 510 836 368 820 368 820 14 991 (4 808 394) (330 981) (5 124 384) 25 755 272 4 221 4 221 52 699 24 990 38 829 2 002 118 520 122 741 25 878 013
2010 30 510 836 30 510 836 368 820 368 820 (5 124 384) 40 848 (5 083 536) 25 796 120 4 521 4 521 60 825 46 083 25 738 654 133 300 137 821 25 933 941
2011 275 510 836 275 510 836 368 820 368 820 (5 083 536) 17 725 385 12 641 850 288 521 506 456 621 456 621 66 908 50 691 28 312 719 146 630 603 251 289 124 757
2012 275 510 836 275 510 836 368 820 368 820 12 641 850 44 924 946 57 566 795 333 446 451 140 000 000 140 000 000 140 000 000 479 452 479 452 83 634 63 364 35 390 899 183 288 662 740 474 109 191
2013 275 510 836 275 510 836 368 820 368 820 39 596 090 35 941 410 75 537 500 351 417 156 112 000 000 112 000 000 112 000 000 503 425 503 425 87 816 66 532 37 159 944 192 452 695 877 464 113 033
2014 275 510 836 275 510 836 368 820 368 820 54 407 872 42 259 258 96 667 129 372 546 785 84 000 000 84 000 000 84 000 000 528 596 528 596 92 207 69 859 39 017 991 202 074 730 670 457 277 455
480 490 500 510 520 530 540 550 560 570 580 590 600 610 620 630 640 650 660 670 680 690 700 710 720 730 740 750 760 770 780 790 800 810 820 830 840 850 860 870 880 890 900 910 920 930 940 950 960 970 980
30 510 836 368 820 368 820 (4 809 669) 1 275 (4 808 394) 26 071 262 3 921 3 921 44 573 3 897 51 920 3 350 103 740 107 661 26 178 923
Nr. n.s. 1 1.1
ASSETS Long-Term Assets Intangible assets Intangible assets (111,112) Intangible assets amortization (113) Intangible assets ( 010-020)
No
2015 -
2016 529 116 080 (202 277 649) 326 838 431 48 410 48 410 326 886 841 236 676 201 000 437 676 6 406 120 141 489 6 547 610 17 002 372 102 899 687 119 902 059 6 717 126 894 062 453 780 903
2017 529 116 080 (232 739 360) 296 376 720 48 410 48 410 296 425 130 248 509 211 050 459 560 6 726 436 148 564 6 875 000 21 777 000 131 796 114 153 573 114 7 053 160 914 727 457 339 857
2018 529 116 080 (263 201 071) 265 915 009 48 410 48 410 265 963 419 260 935 221 603 482 538 7 062 758 155 992 7 218 750 31 028 162 187 784 871 218 813 033 7 406 226 521 727 492 485 146
2019 529 116 080 (293 662 782) 235 453 298 48 410 48 410 235 501 708 273 982 232 683 506 665 7 415 896 163 792 7 579 688 40 623 095 245 854 156 286 477 251 7 776 294 571 380 530 073 088
2020 529 116 080 (324 124 493) 204 991 587 48 410 48 410 205 039 997 287 681 244 317 531 998 7 786 691 171 981 7 958 672 50 578 987 306 107 996 356 686 983 8 165 365 185 818 570 225 815
010 020 030 040 050 060 070 080 090
529 116 080 (171 815 939) 357 300 141 48 410 48 410 357 348 551 225 405
1,2
Long-Term material Assets working material assets (121) Land(122) Fixed assets (123) Natural ressources (125) Depreciation of fixed assets (124,126) Long-Term material Assets (040+050+ 060+070-080)
1,3
Long-Term financial Assets Longterm investments unrelated parties (131) Long-term investments related parties (132) Change of Long-term investments (133) Long-term receivables (134) Deffered income tax (135) expenses paid in advance (136) Total 1.3 (100+110+120+ +130+140+150)
100 110 120 130 140 150 160 170 180
1,4
190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350
191 429 416 834 6 100 896 134 752 6 235 647 -
360 370 380 390 400 410 420 430 440 450 460 470
12 718 244 76 971 812 89 690 057 6 398 96 348 936 453 697 487
Nr. LIABILITIES n.s. 3 3.1 EQUITY Share and additional capital Share capital (311) Additional capital (312) Unpaid capital (313) Capital withdraw (314) Total.3.1 (480+490-500-510) Reserves 3,2 Reserves according to law (321) Reserves according to statutory doc. (322) Others (323) Total 3.2 (530+540+550) Profit and loss surplus (331) 3,3 Retained earnings (uncovered loss) of previous years (332) Net profit (loss) (333) Used profit (334) Total 3.3 ( 570580 590600) Secondary capital 3,4 Differences from revaluation of long term assets (341) Grants (342) Total 3.4 (620630) TOTAL chapter 3 (520+560610640) 4. 4.1 Long term liabilities Financial Long term liabilities Bank credits (411,412) Loans (413) Others (414) Total 4.1 (660+670+680) Accounted Long term liabilities 4,2 Lease Long term liabilities (421) Anticipated long-term revenue (422) Special revenues (423) Revenues received in advance (424) Deffered tax(425) Others (426) Total 4.2 (700+710+720+ 730+740+750) Total chapter 4 (690+760) 5 5.1 Short term liabilities Financial short term liabilities Bank credits (511,512) Loans (513) Current share of long-term liabilities (514) Others (515, 516) Total.5.1 (780+790+800+810) Short term commercial liabilities 5,2 Short term commercial liabilities (521) Short term liabilities to related parties (522) Revenues received in advance(523) Total 5.2 (830+840+850) Acconted Short term liabilities 5,3 Accounted salary (531) Other accounted liabilities to personnel (532) Accounted Social insurance (533) Taxes payable (534) Preliminary liabilities (535) Extrabudget liabilities (536) Shareholders payable (537) future expenses and payments provisions (538) Others (539) Total 5.3 (870+880+890+ 900+910+920+930+940+950) TOTAL chapter 5 (820+860+960) TOTAL LIABILITIES (650+770+970)
Cod
2015 275 510 836
2016 275 510 836 275 510 836 368 820 368 820 93 313 566 55 474 124 148 787 690 424 667 346 28 000 000 28 000 000 28 000 000 890 770 890 770 101 658 77 019 43 016 1 093 222 787 1 113 557 453 780 903
2017 275 510 836 275 510 836 368 820 368 820 117 592 386 62 390 607 179 982 994 455 862 650 1 243 281 1 243 281 106 741 80 870 45 167 1 148 233 926 1 477 207 457 339 857
2018 275 510 836 275 510 836 368 820 368 820 145 219 536 69 526 915 214 746 451 490 626 107 1 613 416 1 613 416 112 078 84 914 47 426 1 205 245 623 1 859 039 492 485 146
2019 275 510 836 275 510 836 368 820 368 820 177 559 432 74 374 038 251 933 470 527 813 126 2 002 058 2 002 058 117 682 89 160 49 797 1 265 257 904 2 259 962 530 073 088
2020 275 510 836 275 510 836 368 820 368 820 212 201 712 79 463 516 291 665 228 567 544 884 2 410 132 2 410 132 123 566 93 618 52 287 1 329 270 799 2 680 931 570 225 815
480 490 500 510 520 530 540 550 560
275 510 836 368 820 368 820 -
570 580 590 600 610 620 630 640 650 660 670 680 690 700 710 720 730 740 750 760 770 780 790 800 810 820 830 840 850 860 870 880 890 900 910 920 930 940 950 960 970 980 72 283 630 48 766 997 121 050 628 396 930 284 56 000 000 56 000 000 56 000 000 555 026 555 026 96 817 73 352 40 968 1 041 212 178 767 204 453 697 488
2011 Capital investment Inputs Outputs ratio of Actualization Updated flow Treasury flow Accumulated flow 0 -459 905 035 -459 905 035 10% 459 905 036 22 921 430 2 819 248 1,10 18 274 711 20 102 183 -441 630 324
2012
2013
2014
2015
63 999 263 3 019 648 1,21 50 396 376 60 979 615 -391 233 948
85 612 656 17 179 160 1,33 51 415 098 68 433 496 -339 818 850
89 893 289 14 538 118 1,46 51 468 595 75 355 170 -288 350 254
94 387 953 11 905 024 1,61 51 215 409 82 482 929 -237 134 845
T VNA RIR (PI)
9,9 ani 4 201 022 MDL 10% 1,01
0 Capital investment Inputs Outputs ratio of Actualization Updated flow Treasury flow Accumulated flow -459 905 035 -459 905 035 10% 459 905 036
2016
2017
2018
2019
2020
99 107 351 9 280 275 1,77 50 705 042 89 827 075 -186 429 803
104 062 718 6 664 289 1,95 49 980 795 97 398 429 -136 449 008
109 265 854 4 057 504 2,14 49 080 472 105 208 351 -87 368 536
114 729 147 4 260 379 2,36 46 849 541 110 468 768 -40 518 995
120 465 604 4 473 398 2,59 44 720 017 115 992 206 4 201 022
T VNA RIR (PI)
9,9 ani 4 201 022 MDL 10% 1,01
Optimal value Formula
Forecast 2008 2009 2010 2011 2012 2013 2014
Liquidity Ratio (Coverage) Intermediate Liquidity (Acid Test) Immediate liquidity Working capital (thousand, MDL) >1,5 >0,7 >0,1
Current assets / Current liabilities (Cash + Short-term receivables) / Current Liabilities Cash / Current Liabilities Current Assets-Current Liabilities
14,22 7,74 1,40 1 423,6 99,6% 0,00 0,05 366 -
11,23 5,75 0,09 1 255,3 99,5% 0,00 0,05 4 830,0 4 560,0 269,9 127,7 1,6 267,0 365 -1% -1% 53% -17%
12,16 7,28 0,07 1 537,7 99,5% 0,01 0,06 4 388,5 4 129,8 258,6 143,0 1,6 240,6 365 0% 0% 53% 2%
18,95 15,96 13,34 10 829,5 99,8% 0,00 0,04 2 324,9 2 228,2 96,7 19,0 15,7 83,9 365 7% 11% 11% 78% 72%
38,29 36,25 29,99 24 712,8 70,3% 0,30 0,05 -
65,88 64,49 56,46 45 145,2 75,7% 0,24 0,10 4,98 1,46 1,9
95,07 94,12 86,00 68 736,5 81,5% 0,19 0,15 6,36 1,60 2,1 1 828,0 1 599,2 228,8 22,9 5,9 9,4 365 10% 12% 9% 65% 46%
financial stability
Capital Adequacy Ratio Leverage Ratio Financial Stability Coefficient Interest Coverage Ratio Debt Service Ratio debt service rate >1,2 >30% <2,33
Equity / Total assets Loan Capital / Equity (Permanent Capital - Activelle long term) / Total assets * Profit before tax + interest / interest amount (Interest payment + payment + Net loans) / (Interest + Payment loans LDAP) (Net income + depreciation + interest over the period) / (loan + interest over time) average balances of assets x n / net sales average balances of long term assets x n / net sales average balances of current assets x n / net sales Average balances of short-term debt x n / net sales Average debt balances payable x n / cost of sales Average balances of goods and materials stocks x n / cost of sales n Net profit / investment cost Net profit / average equity Net profit / average assets gross profit / net sales Net profit / net sales
turnover speed
2 119,5 2 017,3 102,2 15,9 12,0 40,4 366 10% 14% 12% 78% 68%
1 954,5 1 806,1 148,4 20,3 5,6 13,2 365 8% 10% 8% 64% 41%
profitability
0 Optimal value Formula
Forecast 2015 2016 2017 2018 2019 2020
Liquidity Ratio (Coverage) Intermediate Liquidity (Acid Test) Immediate liquidity Working capital (thousand, MDL) >1,5 >0,7 >0,1 0 >30% <2,33 0 0 0 >1,2
Current assets / Current liabilities (Cash + Short-term receivables) / Current Liabilities Cash / Current Liabilities Current Assets-Current Liabilities Equity / Total assets Loan Capital / Equity (Permanent Capital - Activelle long term) / Total assets * Profit before tax + interest / interest amount (Interest payment + payment + Net loans) / (Interest + Payment loans LDAP) (Net income + depreciation + interest over the period) / (loan + interest over time) average balances of assets x n / net sales average balances of long term assets x n / net sales average balances of current assets x n / net sales Average balances of short-term debt x n / net sales Average debt balances payable x n / cost of sales Average balances of goods and materials stocks x n / cost of sales n Net profit / investment cost Net profit / average equity Net profit / average assets gross profit / net sales Net profit / net sales
125,58 125,03 116,91 95 581,7 87,5% 0,13 0,21 8,69 1,74 2,4 1 721,3 1 408,0 313,3 23,0 6,2 6,3 365 11% 13% 11% 67% 50%
113,95 113,55 107,67 125 780,5 93,6% 0,06 0,28 13,38 1,90 2,7 1 637,5 1 234,7 402,8 23,1 8,2 4,9 366 13% 14% 12% 68% 55%
108,93 108,62 103,96 159 437,5 99,7% 0,00 0,35 27,54 2,09 3,1 1 561,5 1 068,2 493,2 23,0 12,1 5,1 365 14% 14% 14% 70% 59%
121,85 121,59 117,70 224 662,7 99,6% 0,00 0,46 1 550,3 917,9 632,4 23,0 16,2 5,3 365 16% 15% 15% 71% 62%
130,34 130,12 126,76 292 311,4 99,6% 0,00 0,55 1 589,5 779,5 810,0 23,0 20,4 5,6 365 17% 15% 15% 72% 63%
136,22 136,01 133,05 362 504,9 99,5% 0,00 0,64 1 633,4 654,0 979,4 23,1 24,9 5,9 366 18% 15% 14% 74% 64%
financial stability
Capital Adequacy Ratio Leverage Ratio Financial Stability Coefficient Interest Coverage Ratio Debt Service Ratio debt service rate
turnover speed
profitability
Annex 14. Calculation of wear
Initial cost
lei
Depreciation ratio
(%)
Residual value
lei
Value of annual depreciation

lei
Refrigerator equipment phase 1 Packing house equipment phase 1 Refrigerator equipment phase 2 Packing house equipment phase 2 Current fixed assets Utilities new investments in repairs Total
72 000 000
26 127 360 72 000 000 26 127 360 24 194 429 17 779 951 227 473 749
10% 10% 10% 10% 5% 5% 5%
7 200 000 2 612 736 7 200 000 2 612 736 1 209 721 888 998 11 373 687 20 835 193
6 480 000 2 351 462 6 480 000 2 351 462 1 149 235 844 548 10 805 003 30 461 711
196 254 720

Feasability Study CAAN - English

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Feasability Study CAAN - English

Загружено:

Авторское право:

Доступные форматы

fnorm

Operational diagnosis ................................................................................................................................ 52

4.2.3.1. 4.2.3.2. 4.2.3.3.

Human resources and organizational structure ....................................................................................... 56

4.4.3.1. 4.4.3.2. 4.4.3.3. 4.4.3.4. 4.4.3.5.

SWOT ANALYSIS ............................................................................................................................................... 68

ESTIMATION OF INVESTMENT EFFICIENCY ........................................................................................................... 103

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

Objectives of the industrial park creation refer to:

Brief presentation of an economic entity

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

Presentation of elaborating company

2. ANALYSIS OF THE REGION

Source: National Strategy of Central Development, 2010

15 Production of other products from nonmetalliferous minerals

9 - Production of garments; furs preparation and dyeing

7 - Rubber and plastic production

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

1 792 211 1 575 855 8 9 220 61 13 18 70 84 63 4 70 6

220 - Production of garments; furs preparation and dyeing

9 - Textile product manufacture

8 Tobacco product manufacture

Unit. thousand MDL thousand MDL thousand

01.01.06 495 000 378 000 117 000

01.01.07 327 000 222 000 105 000

01.01.08 300 000 193 000 107 000

01.01.09 573 000 488 000 85 000

01.01.10 593 000 501 000 92 000

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

heads heads heads heads heads Kg units g g

Source: Information on the socio-economic situation in Straseni district (MET)

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

65.46 73.29 21.87 4.84 94.1 100 149.8 136.1 36.7

Source: Information on socio-economic situation in Straseni district (MET)

Extracting industry Processing industry

Source: calculations of authors based on NSB data

Analysis of socio-economic environment

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

Source: National Strategy of Central Development, 2010

unemployment rate 2007, %

% of active population, 2007

Source: National Strategy of Central Development, 2010

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

Source. NBS and ProConsulting calculations

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

Source: National Strategy of the Central Development, 2010

Source: Operative information of salaries in Straseni district, 2010, NBS

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

The study was developed by ProConsulting LLC, tel./fax: 21-00-89

nature, forestry healthc water are

Source: Information on socio-economic situation in Straseni district (MET)

barley orz 14.0% orchards wheat grau

Source: Plan of economic development of Straseni (2008)

Figure 14. Network of routes in the CDR

by ProConsulting LLC, tel./fax: 21-00-89

Source: National Strategy of the Central Development, 2010

36.7 36.4 99.3