brief summary of investment program

1

2

Brief summary ofBrief summary ofBrief summary ofBrief summary of

invinvinvinvestment programestment programestment programestment program

2012

2012


estment programestment programestment programestment program

Երևանի ջերմատնային գոտու ծրագրի


The Investment Program on the Construction and Development of Vicinity of the Yerevan TPP has been approved by the RA Government protocol decree № 17 of May 3,

• In order to implement the program, the RA Government has allocated 69 ha area

anticipated to build totally 50 ha greenhouse

• The land area has been preliminarily

suggestion, the sizes of the lots may become smaller

• The land is to be alienated to investors at

the amount of investment for main supply infrastructures, i.e. thermal and electric energy, water

and gas supply, as well as water discharge infrastructures

built up to the marginal section of investors

infrastructures;

• The program is funded through private investments;

• The investor is absolutely free in realising the products.

provide assistance in case if an investor w

products in foreign markets.

The program has been approved by the RA Government

• Land is sold not at market price,

• The thermal energy of the TPP

by 40% compared with heating through boiler working with gas

• According to the RA Government decree it is possible to postpone

of the goods and equipment imported for the greenhouse construction for 3 years.

• In order to involve borrowings

the land value which makes up

• Obtaining favorable conditions for the realization

intergovernmental agreements

The Armenian Harvest Promotion Centre CJSC, which is a public

of which is owned by the government and 51%

management company. The Program management

assistance:

ծրագրի ներդրումների կատարման աջակցմանBrief summary ofBrief summary ofBrief summary ofBrief summary of invinvinvinvestment programestment programestment programestment program

on the Construction and Development of State-of-the-Art Gicinity of the Yerevan TPP has been approved by the RA Government protocol decree № 17 of May 3,

2012 session

the program, the RA Government has allocated 69 ha area

anticipated to build totally 50 ha greenhouse mainly for vegetable production;

reliminarily divided into 9 lots each with 5-11 ha

suggestion, the sizes of the lots may become smaller - up to 3 ha;

is to be alienated to investors at 7000 AMD per m2 with full ownership rights


and gas supply, as well as water discharge infrastructures. The main supply infrastructures are to be

built up to the marginal section of investors’ plots of land, after which, investors build the

The program is funded through private investments;

absolutely free in realising the products. The program management company

provide assistance in case if an investor wishes. It is anticipated to realize the major part of the

products in foreign markets.

The program has been approved by the RA Government and receives the following state support:

price, but on the cadastral value;

TPP is provided in such tariff which results in reducing heating expenses

with heating through boiler working with gas ;

According to the RA Government decree it is possible to postpone the deadline for paying


In order to involve borrowings the government provides guarantee in the amount equal to

the land value which makes up 135 000 USD per 1 ha;

Obtaining favorable conditions for the realization of the products in foreign markets

intergovernmental agreements;

The Armenian Harvest Promotion Centre CJSC, which is a public-private cooperation company 49% shares

of which is owned by the government and 51% - by private sector, is entitled to be the program

. The Program management is authorized to provide investors with the following

Program Description

GGGGovernmentovernmentovernmentovernment SSSSuuuuppppppppoooorrrrtttt

PPPPrrrrooooggggrrrraaaammmm MMMMaaaannnnaaaaggggeeeemmmmeeeennnntttt CCCCoooommmmppppaaaannnnyyyy

աջակցման մեխանիզմները

2 | P a g e

Art Greenhouses in the icinity of the Yerevan TPP has been approved by the RA Government protocol decree № 17 of May 3,

the program, the RA Government has allocated 69 ha area, on which it is

mainly for vegetable production;

ha area. At the investors’

with full ownership rights including


. The main supply infrastructures are to be

’ plots of land, after which, investors build the

The program management company will

ishes. It is anticipated to realize the major part of the

the following state support:

which results in reducing heating expenses

the deadline for paying the VAT


provides guarantee in the amount equal to 80% of

in foreign markets on the basis of

private cooperation company 49% shares

by private sector, is entitled to be the program

provide investors with the following



� Facilitation of the relations with state agencies, including

permissions;

� In the process of attracting financal resources

� In the process of the realisation of the grenhouse pruducts in foreign markets through creating the

“umbrella” brand and establishing cooperation with large buyers.

• Investment for 1 ha will make up

• Profitability in terms of return makes up

• In case of a 6 ha greenhouse,

• Unlike the main competitor

Morocco, Iran, Israel, etc.), import from the RA into the CIS countries is exempt from 15%

customs duty;

• 0 tariff is applied for the VAT in case of export of goods from Armenia.

Program may be financed both by

financing by the latters.

As for the program implementation

greenhouse, as well as pledged future cash flows

possible financial mechanisms.

The following funding conditions

program:

• Investment co-financing at the

• Interest rate of the involved borrowings

• Financing period - at least 5

• Grace period for payback- at least

Main Financial Characteristics of the ProgramMain Financial Characteristics of the ProgramMain Financial Characteristics of the ProgramMain Financial Characteristics of the Program

ծրագրի ներդրումների կատարման աջակցմանBrief summary ofBrief summary ofBrief summary ofBrief summary of invinvinvinvestment programestment programestment programestment program

Facilitation of the relations with state agencies, including in the process of

In the process of attracting financal resources from foreign financial institutions

realisation of the grenhouse pruducts in foreign markets through creating the

umbrella” brand and establishing cooperation with large buyers.

will make up 1.4 - 2 mln USD;

in terms of return makes up 50-60% in case of 100% funding from own equity;

ha greenhouse, payback period will be 4,5 years;

Unlike the main competitor countries importing vegetable to the CIS countries

, import from the RA into the CIS countries is exempt from 15%

0 tariff is applied for the VAT in case of export of goods from Armenia.

both by RA resident /non-resident financial institutions

mplementation, payback may be guaranteed by the land area and real estate of the

pledged future cash flows, emission of the shares of the financier

The following funding conditions are considered for feasible and effective

financing at the amount equal to 20-25% of the total program price

Interest rate of the involved borrowings - ≤ 7.5% including insurance and other costs;

5 years;

at least 1-2 years.

Main Financial Characteristics of the ProgramMain Financial Characteristics of the ProgramMain Financial Characteristics of the ProgramMain Financial Characteristics of the Program

Investment financingInvestment financingInvestment financingInvestment financing

աջակցման մեխանիզմները

3 | P a g e

in the process of obtaining document

from foreign financial institutions or markets;

realisation of the grenhouse pruducts in foreign markets through creating the

funding from own equity;

countries importing vegetable to the CIS countries (Turkey, China,

, import from the RA into the CIS countries is exempt from 15%

institutions and through joint

by the land area and real estate of the

, emission of the shares of the financier and other

considered for feasible and effective implementation of the

25% of the total program price;

including insurance and other costs;



ծրագրի ներդրումների կատարման աջակցմանBrief summary ofBrief summary ofBrief summary ofBrief summary of invinvinvinvestment programestment programestment programestment program աջակցման մեխանիզմները

4 | P a g e

brief summary of investment program

Documents