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Investment project «Organizing manufacturing of erosion control mats in Mogilev Free
Economic Zone»
А. Project Opportunity Description
A1. Project Name:
Organizing manufacturing of erosion control mats in Mogilev Free Economic Zone
a. Short name:
Organizing manufacturing of erosion control mats
b. Full name:
Organizing manufacturing of erosion control blankets from biodegradable materials in Mogilev
Free Economic Zone
c. Summary description:
The project implies purchase of an automated line for manufacturing of erosion control mats
from biodegradable materials. The project implementation will allow to establish a modern hightechnology production using renewable natural resources, increase Belarusian exports abroad,
create new work places.
A2. Progress status:
Pre-investment stage. Search of investors is in progress.
A3. Organizations involved and their roles:
Mogilev FEZ Administration is the project initiator.
63, Leninskaya str., Mogilev, 212030 Republic of Belarus
Andrey Kiselev – Head of Investments and Foreign Economic Affairs Dpt.
Tel.: (+375 222) 31-19-81
Fax: (+375 222) 31-15-81
e-mail: [email protected]; www.fezmogilev.by
A4. Project description:
It is suggested to implеment the project in the territory of Mogilev Free Economic Zone. A
manufacturing facility should be built on an unoccupied lot.
Erosion control mats consist of decomposable natural fibers (such as coir, straw, hay, etc.)
stiched to a supporting sandwich type netting. They provide fast vegetation establishment, which
prevents erosion caused by wind, running and falling water. Furthermore, the mats retain soil
moisture, warm soil and stimulate humus formation.
Polypropylene (UV-stabilized and non-stabilized), jute and 100% biodegradable materials can be
used for the supporting netting.
The main advantages of the product are as follows:
- Erosion causing energies are absorbed while offering instant 100% soil protection. Can be
installed in running water trapping sediment fines.
- Seeds and indigenious plants can establish from within and below the mats, generating the
natural range of plants.
- Seeding and erosion control in a single operation.
- Mulching effect of the matting improves all-year round establishment.
- Choice between medium-term stabilization of surface root matrix or a totally biodegradable
system.
- Mats can be placed manually, often concurrently with the soiling operation. The are simple to
install and especially valuable for complicated situations.
2
Current uses of erosion control mats include new slope cuttings, lakesides, freshly top-soil
enbankments, sport fields, lining new water cources, protecting natural monuments, etc.
The product quality shall be provided by installation of modern automated equipment.
Implementation of the project in Mogilev Free Economic Zone will allow to increase its
economic efficiency because of the preferences provided to FEZ residents (exemption from
custom duties and VAT on imported goods, profit tax (for 5 years), etc.).
A4a. Project cost (mln. USD)
1.3
A5. Background / history / overall programme / related or similar projects:
The project actuality is stipulated by its ecological importance:
- processing different kinds of natural renewable raw materials, which are not used at the
moment;
- offering alternative materials for landscape and gardening works instead of the current total
ramping.
A6. Environmental summary:
This production is characterized by a minimal level of emissions into environment.
A7. Possible obstacles / problems / risk assessment:
Implementation of the project in Mogilev Free Economic Zone minimizes risks.
A8. Term of recoupment (years):
A9. Project’s branch:
Other
B. Capital Cost Items (additional requirements for project):
B1. Project physical components:
B2. Capital cost (mln. USD):
Development of a business-plan and design specifications and
estimates, construction of the manufacturing unit, equipment
transportation and assembly
B3. Sub-projects by location:
1.3
B4. Amount (mln. USD):
C. Capital Resources Available from Sponsors / Proposers:
C1. Resources “in kind”, grants, investments, equity /
ownership, etc.:
C2. Amount (mln. USD):
D. Required Financial Assistance:
D1. Financing gaps, type of financial assistance required:
An investor is wanted, the project may be implemented by several investors jointly.
D2. Sources of finance:
D3. Type of investment:
D4. Amount (mln. USD):
Investor’s capital
Direct foreign investments,
loan, leasing
1.3
3
D5. Financial organizations, involved in project realization:
Not considered
Е. Demand (users) and revenues:
Е1. Type of users / markets, volumes, pricing, revenues, quantifiable benefits / savings:
Products will be sold at the domestic market, in Russia and Ukraine
Е2. Revenues (Sales):
ЕЗ. Amount (mln. USD):
Investor’s own or borrowed assets
F. Operating and Maintenance Costs:
F1. Cost components, strategies for cost recovery, operating organizations, subsidies:
At investor’s discretion
F2. Cost Item:
F3. Amount (mln. USD):
At investor’s discretion
G. Net Income Value:
G1. Net Income Value:
G2. Amount (mln. USD):
Н. Project information source:
H1. This form was completed by:
Sergei Mirankov, Investments and Foreign Economic Affairs Dpt., Mogilev FEZ Administration
Н2. Organization (address):
Mogilev FEZ Administration
63, Leninskaya str., Mogilev, 212030 Republic of Belarus
НЗ. Tel / Fax / E-mail:
Tel. (+375 222) 31-19-81, fax: (+375 222) 31-15-81, e-mail: [email protected]
Н4. Date:
2010
Н5. Supreme organization:
Mogilev Free Economic Zone Administration