Feasability Study Falesti - English

1
Feasibility Study regarding Creation of the

Industrial Park on the Territory of
Falesti Plant of Street Cleaning Machines JSC,
Falesti

Beneficiaries:
Ministry of Economy of the Republic of Moldova
United Nations Development Program in RM

Executor:
ProConsulting LLC
MD-2004, Chisinau Municipality, Republic of Moldova
23/9 Mitropolit Petru Movila St.
tel./fax: 21-00-89

Feasibility study regarding creation of the Industrial Park on the territory of Falesti SEP JSC, Falesti
Study was developed by ProConsulting LLC, tel./fax: 21-00-89
2
C ONTE NT
ABBREVIATIONS .............................................................................................................................................................. 6
EXECUTIVE SUMMARY .................................................................................................................................................... 7
1. INTRODUCTION....................................................................................................................................................... 8
1.1. DESCRIPTION OF THE PROJECT IDEA AND THE CONCEPT OF THE INDUSTRIAL PARK ...................................................... 8
1.2. GOAL AND OBJECTIVES OF THE STUDY. .................................................................................................................... 9
1.3. BRIEF PRESENTATION OF THE ECONOMIC ENTITY ..................................................................................................... 9
1.4. PRESENTATION OF THE ELABORATING COMPANY. .................................................................................................. 10
1.5. METHODOLOGY. ................................................................................................................................................. 10
2. ANALYSIS OF THE REGION .................................................................................................................................. 12
2.1. ANALYSIS OF BUSINESS ENVIRONMENT. .................................................................................................... 12
2.1.1. Sectorial analysis. ....................................................................................................................................... 12
2.1.2. Analysis of the regional activity of enterprises. ......................................................................................... 17
2.1.3. Analysis of employed labor force................................................................................................................ 22
2.2. ANALYSIS OF INVESTMENT CLIMATE. ........................................................................................................ 23
2.3. ADMINISTRATIVE-TERRITORIAL ORGANIZATION. ................................................................................................... 26
2.4. ANALYSIS OF THE SOCIO-ECONOMIC ENVIRONMENT. ............................................................................................... 27
2.4.1. Analysis of the demographic situation. ...................................................................................................... 27
2.4.2. Analysis of labor force. ............................................................................................................................... 30
2.4.3. Analysis of populations well-being and labor productivity. ..................................................................... 33
2.5. ANALYSIS OF PHYSICAL INFRASTRUCTURE. .............................................................................................. 34
2.5.1. Analysis of natural resources. .................................................................................................................... 34
2.5.2. Analysis of transport infrastructure. ......................................................................................................... 35
2.5.3. Analysis of utilities infrastructure. ............................................................................................................. 36
2.5.4. Analysis of educational infrastructure. ...................................................................................................... 39
2.5.5. SWOT analysis of the region / Falesti locality. .......................................................................................... 40
3. LEGAL FRAMEWORK ............................................................................................................................................ 41
3.1. ANALYSIS OF LEGAL FRAMEWORK OF RM. ............................................................................................................. 41
3.2. ANALYSIS OF LEGAL CONFORMITY OF THE MANAGING ENTERPRISE .......................................................................... 43
4. ECONOMIC ENTITY PRESENTATION ................................................................................................................. 45
4.1. PROFILE OF THE ENTERPRISE. .............................................................................................................................. 45
4.1.1. General presentation. ................................................................................................................................. 45
4.1.2. Brief historical review ................................................................................................................................ 45
4.1.3. Field of activity. Products and services of the enterprise. ......................................................................... 46
4.1.4. Dimension of the company. ........................................................................................................................ 47
4.2. POTENTIAL OF THE ENTERPRISE. .......................................................................................................................... 50
4.2.1. Diagnosis and infrastructure of location. .................................................................................................. 50
4.2.2. Technical diagnosis. ................................................................................................................................... 50
4.2.2.1. Description of real estate. .................................................................................................................................. 50
4.2.2.2. Description of equipment and facilities. ........................................................................................................... 55
4.2.3. Technological and operational diagnosis. ................................................................................................. 57
4.2.4. Human resources and organizational structure. ...................................................................................... 59
4.3. COMMERCIAL AND MARKETING DIAGNOSIS. ........................................................................................................... 62
4.4. ECONOMIC AND FINANCIAL DIAGNOSIS. ................................................................................................................. 63
4.4.1. Analysis of Balance Sheet ........................................................................................................................... 64
4.4.2. Analysis of financial results. ....................................................................................................................... 66
4.4.3. Analysis on the basis of financial indicators. ............................................................................................. 67
4.4.3.1. Indicators of liquidity: ....................................................................................................................................... 67
4.4.3.2. Indicators of profitability. ................................................................................................................................. 68
4.4.3.3. Indicators of financial stability.......................................................................................................................... 69
4.5. SWOT ANALYSIS OF THE ENTERPRISE. ................................................................................................................. 70
3
5. SCENARIOS OF THE INDUSTRIAL PARK DEVELOPMENT............................................................................... 72
5.1. DETERMINATION OF THE SCENARIO FOR THE INDUSTRIAL PARK DEVELOPMENT. ....................................................... 72
5.2. SELECTION, ANALYSIS AND SUBSTANTIATION OF THE OPTIMUM SCENARIO. ............................................................... 74
5.3. IDENTIFICATION OF POTENTIAL RESIDENT ENTERPRISES ........................................................................................ 80
5.4. IDENTIFICATION OF THE SOURCES OF FINANCE. ...................................................................................................... 81
5.5. ORGANIZATION OF THE INDUSTRIAL PARKS ACTIVITY ............................................................................................ 84
6. ACTION PLAN ......................................................................................................................................................... 89
6.1. LEGAL ACTION PLAN . .......................................................................................................................................... 89
6.2. OPERATIONAL ACTION PLAN. ............................................................................................................................... 93
7. INVESTMENT AND FINANCIAL DIAGNOSIS ...................................................................................................... 94
7.1. ESTIMATION OF THE NECESSARY VOLUME OF INVESTMENTS. ................................................................................... 94
7.2. FINANCIAL PLAN. ................................................................................................................................................ 98
7.2.1. Forecast of incomes of the Managing enterprise ...................................................................................... 98
7.2.2. Forecast of expenses of the Managing enterprise. ................................................................................... 100
7.2.3. Forecast of financial results. .................................................................................................................... 100
7.2.4. Forecast of cash flow. ............................................................................................................................... 103
7.2.5. Forecast of the balance sheet. .................................................................................................................. 106
7.2.6. Forecast of financial indicators ............................................................................................................... 111
7.2.6.1. Indicators of profitability. ............................................................................................................................... 111
7.2.6.2. Liquidity indicators. ......................................................................................................................................... 112
7.2.6.3. Indicators of financial stability........................................................................................................................ 113
7.2.6.4. Turnover indicators. ........................................................................................................................................ 114
7.3. ESTIMATION OF INVESTMENT EFFICIENCY ........................................................................................................... 116
8. SOCIAL AND ECONOMIC AND ENVIRONMENTAL IMPACT OF THE INDUSTRIAL PARK ON THE REGION
117
9. CONCLUSIONS ...................................................................................................................................................... 119
Lists of tables
Table 1. Indicators of the industrial production by the types of ownership, 2008-2009. ........................................................ 15
Table 2. Industrial production by the types of activity, 2009. ............................................................................................... 15
Table 3. Main sectoral indicators of Falesti district, 2006-2009. ........................................................................................... 16
Table 4. Number of economic entities by mediums and size of the enterprise, 2008-2009..................................................... 17
Table 5. Activity of economic entities by the volume of sales, millions MDL, 2008-2009. ....................................................... 18
Table 6. Volume of sales referred to the number of enterprises, millions MDL 2008-2009. ................................................... 19
Table 7. Distribution of enterprises by fields of activity, Falesti district. ............................................................................... 20
Table 8. Average number of employees................................................................................................................................ 22
Table 9. Structure of investments in fixed capital by the types of ownership. ........................................................................ 24
Table 10. Structure of investments in fixed capital by the sources of finance, 2009. .............................................................. 24
Table 11. Population density, 2010. ..................................................................................................................................... 28
Table 12. Natural movement of population from Falesti, 2008-2009. ................................................................................... 29
Table 13. Natural movement of population from Falesti, 2008. ............................................................................................ 32
Table 14. Total availability of population in area of 30 km around Falesti locality, 2007........................................................ 32
Table 15. Distribution of land resources by land categories, Falesti district, 2008-2009. ....................................................... 34
Table 16. SWOT analysis of the region. ................................................................................................................................ 40
Table 17. Evolution of sales by groups of products or services.............................................................................................. 47
Table 18. Real estate of Falesti plant of street cleaning machines JSC. ................................................................................ 50
Table 19. Balance value of real estate of Falesti PSCM JSC. ................................................................................................. 52
Table 20. Interpretation of equipment and facilities of Falesti PSCM JSC. ........................................................................... 55
Table 21. List of fixed assets, whose wear is calculated for tax and financial purpose for 2008-2010. .................................... 56
Table 22. Structure of staff in terms of education. ............................................................................................................... 60
Table 23. Structure of staff in terms of age. .......................................................................................................................... 60
Table 24. Structure of staff in terms of professional specialization. ...................................................................................... 60
Table 25. Express analysis of Falesti PSCM JSC within 2006-01.10.2010. ........................................................................... 63
Table 26. Situation regarding commercial receivables of Falesti PSCM JSC, 1.10.2010, MDL. ............................................... 65
Table 27. Financial results of Falesti PSCM JSC , 2006-01.10.2010. ..................................................................................... 66
Tabelul 28. Liquidity indicators for the period 2006-2009. .................................................................................................. 67
Table 29. Profitability indicators for the period 2006-2009. ................................................................................................. 68
Table 30. Financial stability indicators................................................................................................................................. 69
Table 31. SWOT analysis of Falesti PSCM JSC. .................................................................................................................... 70
Table 32. Determination of scenarios of the industrial parks activity. .................................................................................. 72
4
Table 33. Analysis of scenarios of the industrial parks activity. ............................................................................................ 74
Table 34. Risks of choice of the scenario 1 and elimination methods..................................................................................... 78
Table 35. Benefits of the scenario 1 by the categories of beneficiaries .................................................................................. 79
Table 36. Methods of financing of the Industrial Park in the light of the investor State and/or Local public administration. 81
Table 37. Methods of financing of the Industrial Park in the light of the private investor. ...................................................... 82
Table 38. Comparison of options of identification of funding sources for the industrial park. ................................................ 83
Table 39. Identification of services, provided by the Managing Enterprise. ........................................................................... 84
Table 40. Legal action plant with the view to creating and organizing the industrial parks activity. ...................................... 89
Table 41. Schematic presentation of the legal action plan. .................................................................................................... 92
Table 42. Action plan for rehabilitation of the Managing Enterprise's constructions and infrastructure ................................ 94
Table 43. Assessed value of general construction works and internal and external networks to be executed for rehabilitation
of the production process of the enterprise Falesti PSCM JSC. .................................................................................. 95
Table 44. Investment structure. ........................................................................................................................................... 96
Table 45. Incomes, forecasted for the Managing Enterprise, thousand MDL (VAT including). ................................................ 99
Table 46. Forecast of financial results for the forecast period, thousand MDL. .................................................................... 101
Table 47. Cash flow dynamics, thousand MDL. ................................................................................................................... 104
Table 48. Balance sheet dynamics, thousand MDL. ............................................................................................................. 107
Table 49. Structure of assets for the forecast period. .......................................................................................................... 109
Table 50. Main indicators of profitability ........................................................................................................................... 111
Table 51. Main liquidity indicators. ................................................................................................................................... 112
Table 52. Main indicators of financial stability. .................................................................................................................. 113
Table 53. Main indicators of turnover. ............................................................................................................................... 114
Table 54.Determination of investment efficiency. .............................................................................................................. 116
Table 55. Determining investment efficiency. .................................................................................................................... 117
List of figures
Figure 1. Branch structure of GDP, 2008. ............................................................................................................................. 12
Figure 2. Indices of industrial specialization by the number of staff, 2007............................................................................. 12
Figure 3. Scheme of location of NDR economic sectors, 2010. ............................................................................................... 13
Figure 4. Potential of the NDR agro-industrial sector, 2010. ................................................................................................. 14
Figure 5. Evolution of the share of types of enterprises from Falesti as compared to the total NDR, 2008-2009. .................... 18
Figure 6. Structure of sales by enterprises from Falesti according to the form of organization of the enterprise, 2009. .......... 19
Figure 7. Private investments per capita, Falesti district. MDL. ............................................................................................. 23
Figure 8. Structure of private investments by the types of economic activities, %, Falesti district. ......................................... 25
Figure 9. Geographical location of Falesti district within NDR and closeness to CDR and Romania......................................... 26
Figure 10. Resident population, 2008-2010. ........................................................................................................................ 27
Figure 11. Dynamics of sex structure of the population of Falesti district.............................................................................. 28
Figure 12. Structure and share by age groups of population of Falesti district, 2010. ............................................................ 29
Figure 13. Population working in the main fields of activity, Falesti, 2009. ........................................................................... 30
Figure 14. Level of education of the population, Falesti, 2009. .............................................................................................. 30
Figure 15. Road, railroad and water passageways of NDR. ................................................................................................... 35
Figure 16. Density of water-supply networks, km/100 km2 in districts, 2008 ...................................................................... 36
Figure17. Density of water-supply, sewage and purification networks. ................................................................................ 37
Figure 18. Scheme of gas networks. ..................................................................................................................................... 38
Figure 19. Level of deprivation in development regions, NDR, CDR, SDR. .............................................................................. 40
Figure 20. Structure of authorized capital of Falesti plant of street cleaning machines. ....................................................... 48
Figure 21. Evolution of staff of Falesti PSCM, 2007-2010. .................................................................................................. 48
Figure 22. Dynamics of wages fund, 2007-2009. .................................................................................................................. 49
Figure 23. Evolution of sales revenues, 2006 III quarter of 2010. ....................................................................................... 49
Figure 24. Organizational chart of Falesti plant of street cleaning machines. ......................................................................... 59
Figure 25. Average salary for the employee of Falesti PSCM JSC, 2007-2009. ..................................................................... 61
Figure 26. Integrated organizational chart of the Managing enterprise. ................................................................................ 86
Figure 27. Elementary organization of the Managing enterprise. .......................................................................................... 86
Figure 28. Relations, created within the Park, in the light of activity organization. ............................................................... 87
Figure 29. Model of organization of the industrial parks activity. ......................................................................................... 88
Figure 30. Dynamics of the Managing enterprise's financial results. ................................................................................... 101
List of schemes
Scheme 1. Geographical location of Falesti Plant of Street Cleaning Machines JSC within the district. ................................. 27
Scheme 2. Area of demographic situation research. ............................................................................................................. 31
Scheme 3. Geographical location of Falesti plant of street cleaning machines JSC. .............................................................. 50
Scheme 4. Structure of location of real estate items on the area of Falesti PSCM. ................................................................... 51
Scheme 5. Organization of technical and production infrastructure of the industrial park. .................................................... 89

List of photos
Photo 1. General view of the enterprises territory. .............................................................................................................. 45
Photo 2. Main production shop (Block II, Unfinished)........................................................................................................... 53
Photo 3. Floor. .................................................................................................................................................................... 53

5

List of Annexes
Annex 1. Estimate for complete repairs and infrastructure renovation, Falesti PSCM JSC. ................................................. 120
Annex 2. Investment structure. ......................................................................................................................................... 122
Annex 3. Provision of rental services. ................................................................................................................................ 122
Annex 4. Forecast of operating income (VAT including). .................................................................................................... 122
Annex 5. Forecast of forecast consumption and operating expenses (VAT including). ......................................................... 122
Annex 6. Forecast cash flow. ............................................................................................................................................. 122
Annex 7. Forecast financial results..................................................................................................................................... 122
Annex 8. Forecast balance sheet. ....................................................................................................................................... 122
Annex 9. Calculation of investment efficiency with a discount of up to 30% on rental price. ................................................ 122
Annex 10.Financial indicators. .......................................................................................................................................... 122
Annex 11. Calculation of wear. .......................................................................................................................................... 122

6
ABBREVIATIONS
RDA Regional Development Agency;
GMS General Meeting of Shareholders;
CPA Central Public Authority;
LPA Local Public Authority;
NBS National Bureau of Statistics;
APC Agricultural Production Cooperative;
FC Fiduciary Company;
COOP Consumer Cooperative;
DC District Council;
TPC Town Planning Certificate;
DAESI Documentation on assessment of the environmental and social impact;
IE Individual Enterprise;
JV Joint Venture;
SME Small and Medium Enterprise;
FDI Foreign Direct Investments;
IT Information Technologies;
EFC Enterprise with Foreign Capital;
SE State Enterprise;
MDL Moldovan lei (national currency);
MCN Moldovan construction norms;
PIB Gross Domestic Product;
DN Distribution Network;
TER Technical Expertise Report;
DSR Debt Service Ratio;
CDR Central Development Region;
NDR Northern Development Region;
SDR Southern Development Region;
RM Republic of Moldova;
JSC Joint-Stock Company;
CA Commercial Association;
NI Natural Increase;
LLC Limited Liability Company;
VAT Value-Added Tax;
PSCM Plant of Street Cleaning Machines;
UNIDO United Nations Industrial Development Organization;
USD United States Dollar (American Dollar);
ATU Administrative Territorial Unit;

ha hectare
km kilometer
inh. inhabitants
abt. about
dist. district
vil. village
w/n without number
7
EXECUTIVE SUMMARY
The present feasibility study has been developed in order to determine viability of the creation of the
industrial park on the territory of Falesti Plant of Street Cleaning Machines JSC of Falesti with
orientation to industrial production, the activity carried out on the area of 13.2 ha.
The analysis of the regions potential to create the industrial park is focused on: existence of resources
available for the development of industrial activity from the point of view of sectoral development of
economy in the region as well as of the directions of specialization of the Plant; business sector of the
district is mostly consisted of SMEs dynamic part of economy representing an identification area of
potential residents of the park correlated with availability of labor force; represents an impressive
factor for delimitation of resources necessary to create the industrial park; geographic proximity to
the European Union through Romania creates an effect of acceleration of the investment process;
transport infrastructure in the northern region is developed, resulting in 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 can be implicitly implemented by
creating optimum working conditions of the industrial park.

The region of Falesti district and of the district centre particularly corresponds to the concept of
creation of the industrial park from simple considerations that an industrial park is welcomed in the
regions, where nothing appears on its own, and Falesti corresponds to the peculiarities of these
regions.
The results of the factorial analysis of the current situation of Falesti PSCM JSC identify the lack of
optimum conditions for the creation of the Industrial Park on the basis of the resources available at the
moment of the study, the situation which can be improved by implementing certain strategic
development directions.

As a result of the analysis of the situation in the region and of the company, two directions of the
industrial park development have been identified. On the basis of a number of indicators resulting in
the substantiation of the optimum scenario of activity, the following points have been identified:
orientation of the parks activity to industrial production with provision of additional services and
inclusion of a Business Incubators activity; choice of the source of finance having as synergetic
components Falesti PSCM JSC, private investor in cooperation with the Local Public Authority;
creation of a new enterprise as Managing Enterprise in order to manage the activity of the industrial
park, as well as with reference to the need for it to become a resident enterprise of the industrial park;
potential residents can be represented by local enterprises, as well as by foreign economic entities
among which G.P.I JSC, represented by Mr. Mauro Giovetti from Italy, has been identified.
Investments in the development of the technical and production infrastructure for the creation of the
Industrial Park were estimated at 321 272 000 MDL which are to be invested in 5 stages within 24
months.
Creation of the industrial park according to the identified model will have a positive social-economic
impact on the region by means of efficient use of its resource potential, by obtaining the associated
benefits, at the same it will also contribute to the economic development in the country. Construction
of the modern utilities infrastructure within the project of the industrial park will also reduce the
environmental pollution existing under current conditions.
Finally, it is emphasized that the project of creation of the industrial park on the territory of Falesti
PSCM JSC in Falesti will be EFFICIENT provided that the following conditions are observed: the
optimum scenario, proposed action plan and the amount of the estimated investment. Meanwhile, it is
necessary that the Managing Enterprise analyses the option to become a resident of the industrial
park. In this way, the enterprise's operating income would increase significantly, which positively
affects the term of recovery of the expected investment.
8
1. INTRODUCTION
1.1. Description of the project idea and the concept of the industrial park
The idea of the project consists in the creation of the industrial park on the territory of Falesti PSCM
JSC of Falesti, which at the moment operates with a minimum production capacity, having fixed assets
and unused real estate.
Falesti district is characterized as an industrial region. Falesti locality is the resident city of Falesti
district, its economic attractiveness is also conditioned by its closeness to Balti municipality the
northern capital of the Republic of Moldova, as well as by geographic closeness with the European
Union through territorial bordering with Iasi county, Romania. In this context, the concept of creation
of the industrial park on the territory of the enterprise Falesti PSCM JSC of Falesti is focused on
acceleration of the social-economic development of the mentioned region by means of: attraction of
local and foreign investments; implementation of modern and innovative technologies; development
of the sector of small and medium enterprises; application of advanced management practices; a more
efficient use of the public patrimony and creation of jobs.
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
qualitative and competitive products on outlets, etc., and as an associated effect, acceleration of
investment processes in the country is required. Thus, the industrial park is an efficient instrument of
the economic growth at the national and regional levels due to its impact on the development of
production intended for export and development of home consumption in the country.

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 above mentioned premises, as well as availability of the associated land with the area of abt. 13,2
ha, situated next to the national highway R14 and railroad, existing infrastructure conditions and
economic potential of the region have determined the emergence of the idea to create the industrial
park on the territory of Falesti PSCM 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 a territory, the area of which (13,2 ha) allows carrying out carrying out
various industrial activities corresponding to the legislation in force
1
;
- Existence of spaces of production purpose and industrial production equipment facilitate the
carrying out of activities within the industrial park;
- Interest on the part of potential foreign investors for the purpose of industrial use of existing
assets, the majority of which are not introduced in the commercial circulation.
The developed feasibility study provides for the opportunities to create the industrial park and
optimum 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
Law No. 182 of 5.07.2010 on Industrial Parks, art. (5), i.(e).
9
1.2. Goal and objectives of the study.
The goal of the feasibility study on creation of the industrial park on the territory of Falesti PSCM
JSC consists in substantiation of technical-economic and legal viability of the present project.
Objectives of the feasibility study consist in confirmation of opportunities to create the park based
on the positive social, economic and environmental impact on the region development; opportunity to
develop economic activities in the region and attract residents in the park; existence of the human
potential of the region necessary for the parks activity and existence of regional infrastructure
necessary for the parks activity.
They derive from the main goal and refer to:
- establishment of the concept of the industrial park and indication of the planned types of
activity;
- assessment of the social, economic and environmental impact of 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 the creation of the industrial park;
- estimation of the investment necessary for creation of the park and funding sources; as well as
financial forecasting for activity of the Managing Enterprise.
Objectives for the creation of the industrial park refer to:
- attraction of local and foreign investments;
- 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 the
activity within the park;
- development of human resources by improving the quality of professional training within the
park.
- adoption of operational practices of foreign companies in activities of production of pieces
from machinery and equipment construction industry.
1.3. Brief presentation of the economic entity
Joint-stock company Falesti plant of street cleaning machines is located in the industrial zone of
Falesti.
Legal address: 61 Eminescu St., Falesti, Republic of Moldova. The headquarters of the executive
authority is situated at the same address
Falesti PSCM JSC is established according to the Law on Joint-Stock Companies, Law on
Entrepreneurship and Enterprises, Law on Securities and other legislative acts of the Republic of
Moldova which operate on the basis of the statute, approved in new edition in 2009.
The Company is founded by reorganization of the state enterprise Falesti plant of street cleaning
machines, registered on September 15, 1992, being the legal successor in its property rights and
obligations, related to the corresponding land and refers to open joint-stock companies. The
registration number of the enterprise is 151052150. The company is given unique identification code
(IDNO) 1005600014663.
The construction of the Plant started in 1987 but has not been finished even until now. Within 1987-
1988 Metallurgical section was put into operation and within 1991-1993 the activity in the
10
Production shop I as well as a number of related constructions started. Constructions planned
according to the project and remained at the initial stage of construction have been preserved.
According to the companys articles of association, it has the right to carry out the following types of
activity:
- Construction of street cleaning machine plant;
- Production of consumer goods;
- Rendering of transport services to individuals and legal entities within the country and abroad;
- Commercial activity;
- External economic activity;
- Other activities which do not contradict the legislation in force.
The enterprise is situated on a territory of 13,2 ha. In the past it was one of the enterprises of national
importance, destined for processing and production of street cleaning equipment and component
parts for the whole Soviet Union.

Executive management is performed by the Managing Team, headed by the General Director
(Manager). 29 persons work in the company, however, there is no well-structured organizational
scheme. The problem of staff has become a chronic one, characterized by aging of the existing labor
force and, at the same time, by the lack of specialists in the priority fields, such as: production,
marketing, planning, etc.

At present, the enterprise Falesti PSCM JSC is in a decrease period, being dependent on periodical
production orders and operating under poor conditions of technical infrastructure and without
utilities infrastructures necessary for good functioning of the operating activity.

1.4. Presentation of the elaborating company.
The feasibility study has been developed by ProConsulting LLC which has operated on the consulting
market of the Republic of Moldova since 2003. The companys 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.
- Negru Mihaela Financial Consultant.
- 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. Also, the
feasibility study was developed according to the UNIDO Methodology, subsequently adjusted to the
specific nature of the given project.
11
For the development of the present feasibility study a number of tools and techniques, depending on
stages of the project lifecycle, have been used.
- Data collection. For this purpose, the team of consultants developed the diagnostic analysis of
the region and Falesti PSCM JSC using the following methods:
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.
12
2. ANALYSIS OF THE REGION
2.1. ANALYSIS OF BUSINESS ENVIRONMENT.
The Joint-Stock Company Falesti Plant of Street Cleaning Machines is situated in Falesti, Falesti
district a component part of the Northern Development Region. As a result, the regional analysis of
Falesti, as the core of the study with the view to determining the viability of the creation of the
Industrial Park on the basis of Falesti PSCM is performed also from perspective of locality belonging
to the Northern Development Region, hereinafter NDR.
2.1.1. Sectorial analysis.
NDR study in the light of sectorial specialization is relevant from the beginning, by relating the share
of sectors in the Gross Domestic Product of the Region (GDP).
The latest available data regarding Gross Domestic Product (GDP) of the NDR are as of 2008 and are
amounted to 7,22 milliards MDL or 21% of the allocable national GVA
2
.
Economic sectors contribute differently to the formation of the regional GDP. Within recent years, the
trend of changing the branch structure of the regional economy is observed. Thus, in 2008, the share of
agriculture in GDP made up 25%, having reduced as compared to the previous years by 6-11%. At the
same time, the share of services increased in the same proportion reaching 47% (see Figure 1 and
Figure 2).
Figure 1. Branch structure of GDP, 2008.
Figure 2. Indices of industrial specialization by the number of staff, 2007.

Source: Powell 2009 (Regional statistical report).
At the level of NDR the relatively developed potential is the industrial one. Main industrial
agglomerations are (see Figure 3. ):
a) extractive industry;
b) production of garments, furs fabrication and dyeing;
c) production and distribution of electric and thermal energy, gas and hot water;
d) food and beverage industry;
e) production of equipment and medical, precision, optical instruments.
On the basis of the analysis of the Figure 3, in the zone of Falesti district, the main directions of the
sectorial economy are represented by:
- sugar production;

2
Data regarding GDP in the region are taken from the Matthew Powell with reference to the Study, implemented
by Expert Grup.
Agricu
lture
Indust
ry
Constructio
n
Services
Pharmaceutical industry
Food and beverages
industry
Electric power distribution
and production
Footwear manufacturing
Mining industry

13
- machinery production;
- production of wines, champagnes and spirits;
- production of construction materials;
- electric and thermal power plants;
- oil storage, etc.
At the same time, sectorial organization of economy of the Falesti district has determined the need to
create in prospects in this region a Free Economic Zone which by activity, advantages and
opportunities, involved as concept, will have a decisive role in the change of business culture as well as
of qualitative and quantitative indices of the district in whole.
Figure 3. Scheme of location of NDR economic sectors, 2010.

Source: North Regional Development Agency.
Out of total NDR area, 70% are agricultural lands, the region contributes about 40% to the total
agricultural production in the country.
Agriculture agro-industrial sector.
The regions agro-industrial potential consists of 51 production cooperatives, 25 joint-stock
companies, over 530 limited liability companies and over 90 farm households and individually
registered enterprises.
Meat processing
Main branches
Oil production

Tobacco processing
Sugar production
Oil storage

Chemical industry

Machinery production

Manufacture of asphalt

Production of dairy products

Production of garments

Cereals processing and storage

Manufacture of construction materials

Manufacture of ceramic products

wine, champagne, alcoholic beverages

Production of canned food, juices and non-alcoholic
beverages

Manufacture of carpets

Free economic zone existing situation

Free economic zone forecasting

Industrial parks forecasting

Woodworking and furniture manufacture

Electrical engineering

Production of poultry meat and eggs

Glass production

Petrol processing

Waste treatment

Oil extraction

Metallurgical industry

Manufacture of leather

Electric and thermal
power plants

Footwear production

Printing industry

pharmaceutical products

Storage of radioactive wastes

Aeromarine services

Shipbuilding

14
Figure 4. Potential of the NDR agro-industrial sector, 2010.

Source: North RDA.
In this sense, Falesti district is characterized by a decreased agricultural mechanization index and
namely by 3,06-3,67 units per 1 ha of arable land. At the same time, the district is not strongly
dependent on the agricultural sector despite the fact that it is one of the districts with the largest share
of rural population from the North RD of the country.
The share of the agricultural sector in global production of the district in 2008 made up abt. 12%.
With an area of 81 thousand ha of agricultural lands (arable land 46 thousand ha), but with soil
productivity of only 65 (as compared to regional medium of 70), the harvest in the district is lower
than the regional medium.
The area of eroded lands is one of the largest in the region 31,9 thousand ha.
Falesti district is the leader as regards the total quantity of harvested sugar beet (158 751 tonnes in
2008), but not as regards harvest per ha. Falesti district is one of the fewest from NDR, where vines are
still cultivated (near Singerei). Animal husbandry does not represent an important part of the
agricultural sector, with the exception of ovines and caprines, where Falesti is the leader in the region,
as well as among leaders of the livestock in the country.
The number of agricultural enterprises per 100 inhabitants makes up 8,19 (including farm
households) slightly over the regional medium, but the majority of them are small enterprises. Only
100 of 7 644 agricultural enterprises cultivate areas with over 10 ha.
Industry.
According to data of NBS, the volume of the industrial production of Falesti district makes up 393,1
millions MDL for 2008.
In the district there are 98 industrial enterprises, the volume of the industrial production per
enterprise being relatively high 4 millions MDL. Most enterprises are from agro-industrial sector
(mills, oil mills, bakeries). There are only 7 enterprises from light industry (enterprises with foreign
Fertility ground level
Wine
Type of
enterprises
Beverages
Meat
Milk
Pharmaceutical
Greenhouse
Ceramics
Lees
Sweets
Bread
Tobacco
Glass
Sugar
Paperboard
concentrated
food
Mill houses
Level of mechanization
Units per 1 ha
Quality
level
15
capital, specialized in garment fabrication), but also 6 large enterprises in heavy industry (production
of pipes, metal fabrication).
Proximity to the border with Romania and existence of railroads with branching in the district allows
establishing external relations and creates opportunities for export, these advantages contribute in
their turn to the development of certain industrial branches. Also, there are industrial areas which can
be used due to the fact that Falesti by tradition was the industrial zone. These advantages contributed
to the development of the industrial sector in the district as well as to the creation of relatively large
enterprises (there are some enterprises with over 100 employees). But namely industrial enterprises
were mostly affected by the crisis and in 2009 some of them even reduced the number of employees.
These aspects represent major premises for the creation of the industrial park, which by concentrating
economic activities to the industrial production, will be able to redress the current situation.
The volume of the industrial production by the types of ownership is presented in the table below.
Table 1. Indicators of the industrial production by the types of ownership, 2008-2009.
January December, 2008 January December, 2009
At current prices,
thousand MDL
In % as
compared I
XII, 2007
At current prices,
thousand MDL
In % as
compared to I
XII, 2008
Total 393 139 246,1 179 259 45,6
Private ownership 49 137 108,4 35 528 72.3
Mixed ownership without foreign
participation
2003 98,2 123 137 + 61,4 times
Foreign ownership 23 611 137,5 20 594 87,2
Source: Falesti DC.
The situation regarding the industrial production depending on the types of activity is represented in
the following table.
Table 2. Industrial production by the types of activity, 2009.
December, 2009 January December, 2009
At current prices,
thousand MDL
In % as
compared to
XII. 2008
At current prices,
thousand MDL
In % as
compared to I
XII 2008
Industry Total 120 994 2215,2 179 259 +48,2
Processing industry 120 994 2215,2 179 529 +48,2
Out of them:
Food and beverage industry 115 495 9269,3 147 673 +2,9
Panification and production of confectionery 369 109,5 3 773 +10,22
times
Beverage production 1 636 244,5 20 763 +12,69
times
Production of garments 2 487 177,5 20 594 +8,2 times
Production of work clothes 2 487 177,5 20 594 +8,2 times
Production of finished metal products 2 638 109,3 10 150 +3,8 times
Production of metal products for
constructions
2 402 113,9 10 150 +4,2 times
Metal working and coating 154 64,7 0 0
Production of other metal articles 82 124,2 0 0
Production of machinery and equipment 374 93 842 +2,2 times
Production of agricultural machinery 32 168,4 0 0
Production of other special purpose
machinery
342 140,8 842 +2,2 times
Source: Falesti DC.
The situation in the industrial sector of Falesti district economy during recent years has been dictated
by enterprises from light industry, which, for example, in the first six months, 2010 made up 65,8% of
the total volume of the industrial production (32 043 thousand MDL).
Services.
Despite a sufficiently developed industrial sector, service sector is less diversified in Falesti district.
16
Also, communications enterprises have a significant share in the volume of provided services, which
registered a modest increase of 0,3% in 2008 as compared to the previous year.
Transport enterprises, registered on the territory of the district, are specialized only in passenger
transport. For the period of first 6 months of 2010, abt. 297 thousand passengers were transported,
having increased by 3,4% as compared to 2009. At the same time, during the first six months of 2010,
the emergence of the segment of goods transportation by means of motor transport enterprises was
also registered. Thus, abt. 1000 tonnes of goods, having registered an indicator of 697 thousand
tonnes/km, were transported.
In the district there is no enterprise with foreign capital rendering services. In general, the number of
enterprises rendering services is one of the lowest in the region. For servicing the agricultural sector
alone, the number of technological servicing plants is lower than the medium in the region, making up
31 units. In general, for the first six months, 2010 the value of paid services, provided for the
population, registered a decrease by 5.4% as compared to 2009, having reached a value of 54 millions
MDL.
Trade.
Retail trade represents the main activity in the sector, both by officially registered and unregistered
units. The total value of sales of retail trade goods in the first six months of 2010 made up 105
millions MDL, having increased by 13,6% as compared to 2009. However, unauthorized sector has
a higher share.
Main dynamic indicators regarding the sectorial analysis of Falesti district are presented in the table
below.
Table 3. Main sectoral indicators of Falesti district, 2006-2009.

Source:http://statistica.expert-grup.org/index.php/fleti/306-falesti-principalii-indicatori-economici-i-
ociali.html
Potential of resources for the industrial park.
Aspects of sectoral development of Falesti district economy with reference to the administrative
center as well, defines a premise for identification of the industrial parks profile. They refer to:
Activities of industrial production of machinery, equipment, pieces, household goods, etc;
Provision of services on maintenance of agricultural and industrial complex;
Activities of processing primary agricultural production;
Additional production activities (packaging materials, etc.)
These possible fields of activity result from resources available in the region, from sectoral
distribution of the regions economy, as well as from the technical potential of the Plant, and are based
on the following arguments:
1. Existence of industrial areas, which can be used due to the fact that Falesti traditionally was
the industrial zone;
2. Material and technical base for the agricultural sector is relatively developed 31
technological stations of machines with over 700 aggregates. Their condition is not
satisfactory, therefore, there are constant repair costs referred to: costs for spare parts,
additional costs for labor force, etc. If on the territory of the industrial park an economic entity,
oriented to the provision of maintenance services, is created, costs for technological stations
would decrease, both because parts would be produced on the spot and labor force would be
qualified while the repair time would be reduced.
As for processing of the agricultural production of cereals, the direction of activity for the industrial park
would not be appropriate, since on the territory of the district there are sufficient number of oil mills,
Industrial production as compared to the previous year
Retail trade as compared to the previous year
as compared to the previous year
Services, provided to
population
17
mills, bakeries, specialized in this segment. The same is the situation with processing of sugar beet (the
district being the leader in terms of volume) and processing of technical grape varieties. In this sense, in
the existing district there is Sugar Factory of Joint-Stock Company Sudzucker Moldova and Winery.
3. However, the district is the leader in the country as regards the production of ovine and
caprine livestock undeveloped segment in the country, but which, at the same time, has a
high potential. In this way, processing of livestock production has important resources to carry
out an activity within the industrial park.
4. Trends of development of sectors of processing agricultural products of vegetable or animal
origin need the potential of package production so that the region launches a final product on
the market, but not only raw material, which is all concentrated in the central zone. In this
regard, production of materials for packing (milk products, for dried vegetable products)
would determine depolarization of economic activities between the economic center of the
country and the region according to the formula: territory of the country produces raw
materials while the center packs and sells the final product, whose final value is comparatively
higher as compared to the price of raw materials.

Expected benefits for the district.
The development of this branch within the industrial park will condition:
- Increase in the number of local economic entities with production economic orientation;
- Creation of jobs, reduction in unemployment rate, increase of purchasing power of population,
improvement of the populations well-being, increase of allocations to the local budget by
allocating taxes;
- Growth of industrial production with value added to the local, regional Domestic product;
- Diversification of outlet, satisfaction of populations demand with local production;
- Development of the export potential through the proximity to the European Union, etc.
2.1.2. Analysis of the regional activity of enterprises.
The development of entrepreneurship is the main goal of the regional development. According to the
data of the State Chamber of Registration, in particular, of the Balti Territorial Office, as of October 01,
2010 in Falesti district 2 148 enterprises are registered, making up abt. 15% of the total number of
economic entities, registered in districts Singerei, Glodeni, Riscani and Balti municipality.
According to the NBS for 2009, out of 2 148 enterprises, abt. 227 enterprises are registered in Falesti.
The number of enterprises of Falesti denotes an increase by 2,2% of the entrepreneurial sector (see
Table 4. Number of economic entities by mediums and size of the enterprise, 2008-2009).
Table 4. Number of economic entities by mediums and size of the enterprise, 2008-2009.
Total number
of enterprises
Large
enterprises
Medium
enterprises

Small
enterprises
Micro
enterprises
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Total number in RM 42 121 44 633 1 012 975 1 686 1 589 8 329 8 264 31 095 33 805
Northern Region 5 385 5 492 138 131 327 305 1 252 1 228 3 668 3 828
Falesti 271 277 8 7 34 27 81 79 148 164
Source: NBS.
Analyzed at the national level, the Northern Region covers abt. 12% of the number of economic
entities which activate on the territory of the country.
Within the region, Falesti has a 6% average share of local economic entities as compared to the total
NDR (see Figure 5).

18
Figure 5. Evolution of the share of types of enterprises from Falesti as compared to the total
NDR, 2008-2009.

Source: NBS. Authors calculation.
Both at level of the country and of the region, but at the same time, at the level of locality, the first
place, by the number of enterprises, is taken by Micro enterprises, which for Falesti have a share of
59% for 2009, when a 0.25% increase in number was also registered. However, it can be observed
from the Figure 5 that Medium enterprises predominate as the NDR component demonstrating a
positive quality of entrepreneurship in the locality.
As for the quality of entrepreneurship in terms of obtained results, the situation is changing from the
perspective of two analyzed indicators:
1. Volume of sales, registered per total types of enterprises;
2. Average volume of sales per enterprise per each type.
The largest volume of sales of enterprises by the form of organization is registered for Large
Enterprises. At the level of country, the total share of their sales makes up 61% which is by 4% more
than the share at the level of Northern Region and respectively by 38% more than the level, registered
by large enterprises of Falesti.
The value of sales, registered by enterprises from Falesti for 2009 is 580 millions MDL (see table 5)
making up 3,3% of the value of sales by enterprises from Northern Region and respectively 0,4% at
the national level.
Table 5. Activity of economic entities by the volume of sales, millions MDL, 2008-2009.
Total RM Northern Region Falesti
Total number of
enterprises
2008 175 058 23 473 931
2009 146 447 17 561 580
Large enterprises 2008 110 074 14 498 326
2009 88 966 9 945 132
Medium enterprises 2008 23 306 3 352 226
2009 20 318 2 810 163
Small enterprises 2008 33 598 4 480 324
2009 29 104 3 729 232
Micro enterprises 2008 8 079 1 142 54
2009 8 057 1 076 52
Source: NBS

Out of the value of sales by enterprises, operating on the territory of Falesti, the largest share belongs
to Small Enterprises having 40%, followed by Medium Enterprises with a 12% difference (see Figure
6).

Small
Medium
Large
19
Figure 6. Structure of sales by enterprises from Falesti according to the form of organization of
the enterprise, 2009.

Source: NBS. Authors calculations.
Referring to the number of enterprises for each form of their organization, it is determined that the
largest average volume of sales, made by an enterprise belongs eventually to Large Enterprises. Each
of 7 Large Enterprises, operating in Falesti, registered in 2009 an average of abt. 19 millions MDL of
sales (see Table 6 below).
Table 6. Volume of sales referred to the number of enterprises, millions MDL 2008-2009.
Total number
of enterprises
Large
enterprises
Medium
enterprises
Small
enterprises
Micro
enterprises
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Total in RM 4,16 3,28 108,77 91,25 13,82 12,79 4,03 3,52 0,26 0,24
Northern
Region
4,36 3,20 105,06 75,92 10,25 9,21 3,58 3,04 0,31 0,28
Falesti 3,44 2,10 40,81 18,87 6,66 6,05 4,00 2,95 0,37 0,32
Source: NBS. Authors calculations.
According to accumulated obtained data, as regarding entrepreneurial activity of Falesti, each
registered and acting enterprise, has an average of annual sales making up 2,10 millions MDL
according to data of 2009.
According to the dynamic analysis of the situation of entrepreneurship in the light of the registered
business figure, a decrease of indicators in 2009 as compared to 2009 is observed. If for those three
analyzed average values (National, Northern Regional and Falesti locality) an increase in the number
of established enterprises (with 5% for Falesti) was registered, then the volume of their sales
determined a 38% decrease, for example, for Falesti. This trend was also observed at the national
level, where the value of sales of enterprises decreased by 16%, as well as in the Northern Region this
indicator having also decreased by 25% as compared to 2008.
For all three analyzed values, the biggest decrease in value of sales was registered for Large
Enterprises:
- 60% for Falesti;
- 31% for Northern Region;
- 19% at the national level.
The main reason consists in the conditions, created by the world economic-financial crisis, which
reduced the purchasing power of consumers, transformed in the decline in demand and,
correspondingly, operational and financial stability of enterprises decreased, sometimes dramatically.
Out of the total number of enterprises, operating on the territory of Falesti district, abt. 430 of them
are the most important both in terms of volume of activity and stability of activity.
Depending on the type of ownership, there exist 5 enterprises, in which the state has either shares or
is the founder and among these: 3 Joint-stock companies, where the state has majority stake of over
90% and an enterprise, in which the state has abt. 8% of the block of shares.
Small
Medium
Large
20
Also, there is a consumer cooperative in the district, the Co-op belonging 100% to the state.
Particularly, 9 enterprises with foreign capital and a joint venture are operating in the industrial field.
As for the rest, enterprises are with local private capital.
Main fields of activity belong to the domains of industry, agriculture, trade (food products,
pharmaceutical products, construction materials, etc.), provision of transport services, mostly for
passengers, etc. (see table below).
Table 7. Distribution of enterprises by fields of activity, Falesti district.
No. Field of activity
Number
of
enterpr
ises
Name of the enterprise Location
1
(Processing
industry)
Heavy industry
6
1. JSC Protos Plant of pipelines from
Moldova;
2. Falesti PSCM JSC
3. Prit - 80 JSC
4. Fag LLC
5. JSC ISRT repair of agricultural equipment
6. Agas Ros LLC
Falestii Noi vil.
Falesti
Falesti
Falesti
Falesti
Falesti
2
(Processing
industry)
Light industry
7
1. EFC Marthatex LLC
2. EFC Antile Moldova
3. EFC Textre LLC
4. Belig Service LLC
5. Plastic Manufacturing EFC
6. EFC Romina Cablaggi LLC
7. EFC Gabriedil LLC
Falesti
Falesti
Glingeni vil.
Falesti
Falesti
Albinetul Vechi vil.
3
Processing
industry
14
1. Winery Mold Nord" JSC
2. Avicola Nord" JSC
3. JV Sudzucker Moldova"
4. Corn seeds calibration plant" JSC
5. Falesti panification enterprise JSC
6. Heuveland" LLC
7. Tobacco fermentation plant" JSC
8. Cereal collection enterprise JSC
9. Miledi LLC
10. Trimobil Design LLC
Etc.
Falesti
Falesti
Falesti
Rautel vil.
Falesti
Logofteni vil.
Falesti
Falesti
Falesti
Falesti
4
Constructions 16
1. Adirem Con" LLC
2. Agas Ros" LLC
3. ICM2 JSC
4. Metal" JSC
5. JV Falesti construction"
6. Chirservix" LLC
7. IE Savciuc Anatolie"
8. Amicrist" LLC
9. Polimer Gaz Conducte" LLC
10. Frizas-Group" LLC
11. Prodianit" LLC
12. . EFC Gabriedil LLC
13. Megacom Construct LLC
Etc.
Falesti
Falesti
Falesti
Falesti
Falesti
Calinesti vil.
Calugar vil.
Falestii Noi vil.
Falestii Noi vil.
Pirlita vil.
Rautel vil.
Falesti
5
Service provision 36
1. Drumuri Falesti" JSC
2. JV Asociatia pietelor
3. CCPC JSC
4. Falesti bus stop
5. Uniteh service" JSC
6. Machinery and equipment station No. 294
7. EFC Moldromsat Group LLC TV
Etc.
Falesti
Falesti
Falesti
Falesti
Falesti
Rautel vil.
Falesti

6
Pharmacy 4
1. Agromed" LLC
2. Primafarm" LLC
Falesti
Falesti
21
3. Solid Farm" LLC
4. Sinteza Farm" LLC
Falesti
Falesti
7
Transport 41
1. Falesti motor transport enterprise JSC
2. LLC Plai CA
3. Rotmix Trans" LLC
4. Autotrans Nord" LLC
5. Lia-MC" LLC
6. Osoianu Transport LLC
7. IE Bologan Ion-Trans"
8. Trans Special" LLC
Etc.
Falesti
Falestii Noi vil.
Falesti
Falesti
Falesti
Calugar vil.
Falesti
Falesti

8
Trade 209
1. EFC Moldromsat-Group"
2. Nomad si Co" LLC
3. Hanuco" LLC
4. Nichifor" IE
5. Energia" LLC
6. Serveton Magazin Rapid LLC
7. Pizza Best
8. Agroprivat Servicii LLC
9. ,,ELITA-5 Altepi LLC
Etc.
Falesti
Falesti
Falesti
Falesti
Rautel vil.
Falesti
Falesti
Pocrovca vil.
Falesti
9

Consumer
cooperatives

6
1. Falesti UCOOP
2. Albinetul Vechi COOP
3. Falesti COOP
4. Ciolacu Nou COOP
5. Bocsa COOP
6. Rautel COOP
Falesti
Falesti
Ciolacul Nou vil.
Bocsa vil.
Rautel vil.
10
Agriculture 78
1. Viitorul agriculturii" APC
2. Agro Sovat" APC
3. Ginseng Moldovenesc" APC
4. Conactim Corn" LLC
5. ,,Elis- SV LLC
Etc.
Bocani vil.
Ciolacul Nou vil.
Falesti
11
Other branches 3
1. Tehner Com" LLC
2. Frunza Tudor-Tudorel" IE
3. Talpa Tudor" IE
Etc.
Glingeni vil.
Pirlita vil.
Pirlita vil.
Source: Falesti DC
As a result of conclusions, established within the sectorial analysis of Falesti district, orientation
towards industrial specialization of the district is observed. As it has been mentioned, the largest share
in the industrial sector of Falesti district belongs to the light industry with 65,8% of the volume of
industrial products for the first six months of 2010. It should be mentioned that light industry is
mostly represented by enterprises with foreign capital (see table 1).
Industrial activity in Falesti district is carried out by 24 enterprises, whose main fields of activity are:
5 Enterprises production of machines, equipment, pieces and metal articles;
14 Enterprises processing of agro food products, such as processing of meat, milk, vines,
vegetables, sugar beet, tobacco, etc.. (see Figure 4);
5 Enterprises of production of knitted garments and goods.
The business sector of the district, respectively of Falesti, is determined by Small and Medium
Enterprises both by number and by value of registered sales (68%). Large enterprises at the moment
do not have sufficient potential for development, in 2009 they had the biggest decline of activity abt.
60% of sales. As a result, creation of the industrial park will determine optimum conditions for the
activity especially for segment of SMEs which will be able to carry out mostly the industrial activity.

22
The benefits will be reflected in the further increase in jobs, continuous increase in the total number of
enterprises, increase in the number of industrial enterprises and, as a result, improvement of the
situation in the agricultural field, decrease in the number of agricultural enterprises that suffer losses
in the region. At the same time, decrease in jobs within large enterprises in the region could be
compensated by including the corresponding staff in the territory of the park, the viability of creation
of which is being examined. This fact will lead to reduction in unemployment rate at the district level,
followed by the improvement of the populations well-being.
2.1.3. Analysis of employed labor force.
The impact of economic crises on the enterprises activity, explained above, also affected the
employees of these companies. Beside the dynamic decrease in returns on sales, the number of
employees (see table 8) also decreased.
Table 8. Average number of employees.
Total number of
enterprises
Large
enterprises
Medium
enterprises
Small
enterprises
Micro
enterprises
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Total in RM
572 129 539 195 244 064 222 951 125 482 115 055 120 249 117 104 82 334 84 085
Northern Region
110 256 104 071 48 338 44 289 29 257 27 254 21 642 21 412 11 019 11 116
Falesti
6 918 6 430 1 717 1 807 3 282 2 358 1 451 1 718 468 547
Source: NBS.
Reduction in the number of employees is on average 6% for all the three analyzed average values. The
only trend of increase in number of employees was registered for micro enterprises both at the
national level, and at regional and local levels.
At the same time, as for large and medium enterprises, the increase of employed persons in 2009 was
registered only in Falesti, by 5% for large enterprises and respectively 18% for small enterprises. As a
result, these data reflect strategic orientation of entrepreneurship of Falesti to continue the activity
under crisis conditions by defining the future economic platform.
At the level of district, the average number of employees at the end of 2009 made up 6 430 persons,
72% of which worked in small and medium enterprises. The average monthly salary of employees
from Falesti district during 2009 made up abt. 1 821 MDL which increased by 12,7% as compared to
2008.
During the first months of 2010, the average monthly salary of employees reached the amount of
1 930 MDL which is by 8,6% more than during the similar period of the previous year, with a 1%
exceeding of the average in the Northern Region and 2% more as compared to the national level.
According to data, provided by NBS, both Falesti district and particularly Falesti demonstrate low, but
stable trends of maintenance and even growth in the productivity of local entrepreneurship and
especially in the productivity of labor.
Once the industrial park is created, resident enterprises will benefit from optimum conditions for
registration of a high level of labor productivity which will increase the quality of local
entrepreneurship. Main premises consist in providing advantageous conditions of activity (reduced
rental price, opportunity for equipping, opportunity to benefit from developed infrastructure, etc.)
resulting in reduction in fixed costs, which are generally very high and, as a result, enterprises will
have available resources for productivity development.
Beneficial impact of local authorities involvement in the development of partners and projects in the
region will be used and increased from the creation of the park and will result, first of all, in
development of the entrepreneurial spirit of population in the region, as well as in improvement of the
investment attractiveness of the region and raising possibilities to attract foreign investments in the
territory.
23
2.2. ANALYSIS OF INVESTMENT CLIMATE.
According to the data, provided by the State Chamber of Registration, for the first 9 months of 2010,
the total number of enterprises, registered in order to carry out entrepreneurial activity on the
territory of Falesti district, makes up 2 148 corresponding to the indicator of 23 per 1000
inhabitants. In the first analysis this indicator is relatively high for NDR, however, out of the total
number of enterprises abt. 83% are Farm Households, whose economic share to the districts economy
is not considerable.
Although the number of industrial and agricultural enterprises is comparable to the average of the
region, the number of commercial enterprises and enterprises providing services is small as compared
to the districts population. Respectively, tax basis is reduced. Revenues to the district budget in 2008
made up 33 985 millions MDL, or 346 MDL per capita, much lesser than the average on NDR (482
MDL). The share of transfers from the state budget is one of the highest in the region 75,5%.
A detailed analysis of the Investment Climate in Falesti district, developed by Expert -Grup:

Source: http://statistica.expert-grup.org/index.php/fleti.html
As a result, the corresponding conclusions on the study, developed by Expert - Grup refer to the fact
that companies expectations regarding local public authorities are very low, many times companies
being aware of legislative obstacles at the national level.
The analysis of the investment performance of Falesti district within NDR, defines a low position
caused by the constant failure in investment performance and investment stability bringing down the
district to the penultimate position within NDR.
In terms of investment diversification, the position of the district rises by 27 levels due to the fact that
it was an industrialized district in the past and opportunities for development of certain branches of
heavy industry were higher.
Also, availability of industrial spaces allowed for the development of light industry. As for the current
investment performance, the district takes the 17th place within NDR. (see figure 7).
Figure 7. Private investments per capita, Falesti district. MDL.

Source: NBS. Expert Grup.
Investment performance level
Current Investment performance
Dynamics of Investment performance
Investment stability
Investment diversity
Current investments
Investment opportunity
Economic situation
Communication and logistic level
positive
positive
negative
8 from 10

24
Despite investment advantages which the district has (availability of branched railroads, geographical
closeness to Romania, availability of industrial spaces), stock of foreign direct investments in the
district is not very high. There are 9 enterprises with foreign capital, while the balance of foreign
investments of 20 751 millions MDL results in foreign investments per capita which are lower than the
average in the country and NDR (even if excluding Balti). Thus, balance of FDI per capita is 222 MDL
making up 24% of the average in the region (45% if excluding Balti municipality) and 5% of the
average in the country. Out of them, only 55% are investments in authorized capital, the rest being
represented by portfolio investments, credits or borrowings.
For the period between January December, 2009 and first six months of 2010 with reference to the
similar period of 2008 and respectively 2009, the evolution of investments in fixed capital by types of
ownership showed a decreasing trend (see table 9).
Table 9. Structure of investments in fixed capital by the types of ownership.
January December, 2009 January June, 2010
Sales,
thousand
MDL
In % as
compared
to I XII
2008
In % as
compared
to the
total
Sales,
thousand
MDL
In % as
compared
to I VI
2009
In % as
compared
to the
total
Public 48 022 95,4 53,3 12 524 83 62,9
Private 27 446 58,6 30,5 2 339 23,3 11,8
Foreign 1 783 29,3 2 63 6,3 0,3
Joint ventures 12 398 36,3 13,8 4 966 33,2 24,9
Joint ventures without foreign
participation
10 129,9 0,1
Source: Falesti DC.
As for sources of finance of investments in fixed capital, for the period January December, 2009, the
corresponding indicator registered increases as compared to the similar period of 2008 by the types of
sources of finance, however, analyzed as a whole, these defined a decrease of abt. 35% (see table 10).
Table 10. Structure of investments in fixed capital by the sources of finance, 2009.
January December, 2009
Sales, thousand
MDL
In % as
compared to
I XII 2008
In % as
compared
to the total
Budgetary means 15 456 123 17,2
Economic entities own means 57 418 102 63,8
Credits and borrowings 8 570 153,5 9,5
Foreign investors means 8 332 277,3 9,3
Other sources 238 74,6 0,27
Source: Falesti DC.

By combining data from those two table above, it can be observed that as regards some decreases in
investment values by types of ownership, sources of finance of investments in fixed capital have
increased as compared to the period of 2008, which explains the beginning of revival of the investment
process in the region.
The largest investments, however, are concentrated in the hotel and restaurant sector, as well as in
agriculture. But investment diversification and high share of investments in hotels and restaurants (in
fact, bars and cafes) is partially resulted from total low investments in the district (see figure 8).

25

Figure 8. Structure of private investments by the types of economic activities, %, Falesti
district.

Source: NBS. Expert Grup.
The relatively low level of investments compared to the average in NDR is also resulted from
appreciation of actions undertaken by local public authorities to attract foreign investments.
Geographical closeness to the European Union creates an effect of foreign investment attraction. Abt. 9
enterprises with foreign capital operate in the locality providing a favorable investment climate for
attracting external finances with the view to creating technical and production infrastructure for the
industrial park.

Creation of the park will allow increasing foreign investments by extending industrial activities in the
district which will obviously improve investment visibility of the region and will allow for promotion
of transparency at the district level, as well as on the national level of investment projects which will
be used. Also we consider the development of the framework of partnership between private investors
and local authorities from the region to be a benefit.
Moreover, the list of immediate positive effects contains:
Advantages, offered by the industrial park as legal entity, will maximize the local investment
climate by attracting new economic entities which during their further activity will be
constantly accelerating the investment process for continuous development;

Improvement of the investment performance along with appearance of the investment
attractiveness of the region appears in the light of creation of the industrial park;

Orientation to the industrial segment will emphasis investment performances of the region by
attracting foreign economic entities, the majority of which, in terms of investment policy, are
oriented to the production field.
Improvement of relations between business environment and local public authorities by emphasizing
relations of interdependence since the approval of the decision to create the industrial park, etc.

Healthcare & social
assistance
Education

Public
administ.

Other
activities
Agriculture
Processing industry
Electrical power, gas and
water

construction Trade
Transp. Communic.
Hotels restaurants
Real estate transactions
26

2.3. Administrative-territorial organization.
Falesti is the residence of Falesti district, located in the North-East part of the Republic of Moldova,
constituting a component part of the Northern Development Region.
Within NDR, Falesti district borders on Glodeni district in the North, Balti municipality in the
North-East and Singerei district in the East (see figure 9). In the Southern part, it neighbors with
Ungheni district component part of the Central Development Region. The Western part of Falesti
district is close to Romania by bordering on Iasi County, neighboring with Botosani County.
Figure 9. Geographical location of Falesti district within NDR and closeness to CDR and
Romania.

Source: RDA. http://ro.jazz.openfun.org/wiki/Regiuni_istorice_ale_Rom%C3%A2niei
Geographical location of Falesti district implies comparative advantages with its neighbors, especially
from economic point of view and namely in terms of industrial development:
Both Glodeni and Singerei districts have moderate or even poor development of
industry. One of the reasons consists in their closeness to Balti municipality (highly industrialized)
which had a negative affect on their industrial development. Industrial production of Falesti district
is absolutely higher than the average in NDR if excluding Balti municipality from the analysis. An
advantage of industrial development of Falesti district as compared to Balti municipality, the main
economic entity in NDR, is orientation of industry to agroindustrial sector mills, oil mills, bakeries,
as well as availability of light and heavy industries.
Proximity to Romania offers advantages of export, especially due to the fact that the
main neighbor, Iasi County is developed, speaking industrially, mostly towards chemical,
pharmaceutical industry, metallurgical industry being hardly on the third place.
Falesti and implicitly economic entities, acting here, have all these net benefits, first of
all, as residents of the center of Falesti district, having the opportunity to communicate with all
administrative regions.
From administrative point of view, Falesti district includes 75 localities, with a total area of 1072,6
km2 or 107259,57 ha making up abt. 20% of the area, occupied by NDR.

The structure of component localities of Falesti district implies a number of 74 rural localities and one
city district center.

Availability of legal address and the headquarters of the Falesti Plant of Street Cleaning Machines, the
territory where most Production shops are situated on the territory of Falesti Noi village in the
immediate proximity (see scheme 1) provides the enterprise with the possibility to benefit from lines
of communications, development especially in district centers, as well as from high investment
attraction, especially due to the closeness to Single European Market.
NDR
Romania
Falesti Ungheni
27

Scheme 1. Geographical location of Falesti Plant of Street Cleaning Machines JSC within the
district.

Source: www.wikimapia.org. Authors presentation.
The district has 33 Local Public Authorities, that is abt.10% are from LPA of NDR, out of which 1 city
mayors office and 32 village mayors offices.
Within the analysis, it is considered to be appropriate to locate the new industrial park on the territory
of Falesti PSCM JSC taking into account the following aspects:
- Falesti district, from the geographical point of view, is located in the south of the Northern
Development Region on the boundary with the Central Development Region, characterized by
a high demand potential, the resident city being itself in the center of the administrative region
of the district ensuring lines of communications with all administrative territories;
- geographical closeness of the territory, on which the creation of the park is being studied, with
the European Union, represents a catalyst not only for the investment attraction, but also for
outlet diversification.
Expected benefits for the region.
As it is seen, location of the industrial park on the territory of the joint-stock society Falesti PSCM JSC
is much more than just advantageous, this having direct access and connection to at least 4 districts,
including Balti municipality the main economic center of the north of the country.

2.4. Analysis of the socio-economic environment.
2.4.1. Analysis of the demographic situation.
Data, provided by the National Bureau of Statistics, indicates a number of 17.6 thousand inhabitants
for Falesti.
The diagram below presents changed and structured data regarding the number of resident
population for the general situation of Falesti district for 2008-2010.
Figure 10. Resident population, 2008-2010.

Falestii Noi vil.
Falesti
PSCM
JSC
Falesti
district
28
Source. NBS. Authors presentation.
According to the presented data, the number of population of Falesti has remained relatively stable,
while the main reason for the decrease in the number of population for other localities of the district
consists in negative natural increase and human migration. Combination of the trend of population
from the rural and urban spaces demonstrates differences of better standard of living in urban
environment (represented by the stable tendency of population) compared to that from rural
environment, the population of which mostly migrates, which considerably results in decrease in the
number of population and acute problem is that it is labor force of the district which mostly migrates.
According to data, presented by Falesti LPA, in 2009, abt. 19,4% of the population went abroad
temporarily, while 2,3% of the population left for a period of over 1 year or for ever.
At the same time, in terms of the indicator characterizing the population density, Falesti is
distinguished from NDR context with a density of abt. 1 190 inh./km2 (see table below).
Table 11. Population density, 2010.
NDR Falesti district Falesti
Total population 1 013 700 inh. 92 907 inh. 17 600 inh.
Area 10 014 km2 1 972 km2 14,8 km2
Density of inhabitants /km2 101,23 inh/km2 47,10 inh/km2 1189,19 inh/km2
Source. NBS. Authors calculation.
As for the population gender structuring, for Falesti district the situation is almost the same with
NDR, the share of male population being 48% as compared to 52% of female population (in 2010
according to NBS).
Figure 11. Dynamics of sex structure of the population of Falesti district.

The difference for the populations structure on average of Falesti district is more prominent as
compared to the average in NDR, here abt. 82% of population from the district lives in rural space and
only 18% of population is from urban environment.
Having analyzed the total number of population by age groups (age pyramid), we state that both at
the level of NDR and of Falesti district analysis, this indicator is seriously affected by the
phenomenon of demographic aging. Current trends show a continuous decrease in the first age
groups, determined by reduced birth rate, which means that the process of population aging is still
ongoing, while its effects will be intensified within the following years.
The biggest share of 8,4% for NDR and 8,97% for Falesti district belongs to 15-19 age group. This
results from the natural increase during 1970-1990 (at present, persons of 35 years old).

Men Women
29

Figure 12. Structure and share by age groups of population of Falesti district, 2010.
Natural movement of population in Falesti especially identifies positive trends. In 2009, a positive
increase (PI=25) with a considerable growth as compared to the negative increase of 2008, -23. As
compared to the situation at the district level, natural increase in Falesti is superiorly positive. In the
district, in total for 2009, natural increase of population makes up -97 while during the first six months
of 2010, this indicator considerably increased up to 251 (see table below).
Table 12. Natural movement of population from Falesti, 2008-2009.
Falesti Falesti district
2008 2009 2009 First six months of
2010
Birth rate 163 pers 203 pers 1 159 pers 458 pers
Mortality rate 186 pers 178 pers 1 256 pers 709 pers
Natural increase -23 25 -97 -251
Demographic situation of Falesti offers favorable premises for the creation of the Industrial Park,
namely:
18% of population of the district is concentrated in the urban space providing qualified labor
force, which is mainly orientated to industrial, economic, trade fields. For the great majority of
rural localities, specialization is gross agriculture.
The number of population has a stable trend, which recently has established a number of abt.
17,6 thousand inhabitants;
The phenomenon of population aging is contrasted with a positive increase of natural
movement (PI = 25 for 2009) which will continuously offer considerable advantages in
determination of available labor force, especially under conditions of creation of an economic,
production and investment infrastructure still from this period;
male female
30
Analysis of the population pyramid notes a prevalence of over 80% of employable persons.
Existence of migration phenomenon describes a definitive immigration of only 2,3% of population of
Falesti, while abt. 19% of immigrated persons represents a category, including predominantly
employable persons who, once economic activities are started in the locality by creating the Industrial
Park, are ready to return for completing the employed staff.
2.4.2. Analysis of labor force.
63% of the population of Falesti district represents economically active population. At the end of the
first six months of 2010, abt.3,78% of them, among which 53,7% were females, did not have job
The unemployment rate for Falesti is about 7,84%, while the most important fields of activity of
working population are primary agriculture, Processing industry and commercial activity (see figure
below).
Figure 13. Population working in the main fields of activity, Falesti, 2009.

Source. Falesti LPA. Authors calculation.
On July 01, 2010 in Falesti district, measures with the view to reducing the unemployment rate by
employing the population were taken. A total of 90 jobs were created. Essential increases were
registered in the field of agriculture 46 jobs, followed by public health, where 32 jobs were created,
social assistance 22 jobs, public administration 4 jobs.
At the same time, within January June, 2010 940 persons were employed, out of them 336 persons
were employed in agriculture, 207 persons in industry, 132 persons in education, 38 persons - in
the field of health and 22 persons in the field of social assistance.
The level of education of labor force from Falesti indicates a 37% difference in favor of persons with
education (see Figure below).
Figure 14. Level of education of the population, Falesti, 2009.

Source. Falesti LPA. Authors calculation.
In conclusion, a prevalence of persons with specialized secondary and incomplete education is
observed, which may represent a catalyst factor for the development of branches, requiring poorly
qualified labor force or labor force, specialized in certain fields, such as primary agriculture, and
University
degree
Vocational
school
Incomplete
high school
Processing
industry
Agriculture
31
especially processing industry, representing a main offerer of jobs that do not require high
qualification.
At the same time, availability of labor force, abt. 8% of the active population, represents an advantage
for creation of the Industrial Park.
Geographic location of the Plant of Street Cleaning Machines, connecting urban and rural areas of the
district, represents an advantage for attracting persons with qualifications in:
industrial fields (especially urban population). From Falesti 32% have specialized education,
which mostly are professional specializations with production orientation while 48% of
population have incomplete education which may represent poorly qualified labor force.

fields of primary agricultural products processing. 40% of population being involved in
agriculture, there is potential of agricultural production, local processing of which will bring
benefit of district economy value in general and improvement of populations well-being in
particular;

tertiary field. Creation within the industrial park of activities, oriented to the provision of
services, for example, would increase those current 26% of populations involvement in
business.
In order to assess the labor force potential for the industrial park creation in Falesti on the basis of
Falesti PSCM JSC, a total research area of 30 km around the locality was identified (see figure below).
Scheme 2. Area of demographic situation research.

Source. www.point.md/map. Authors presentation.
Neighborhood with 4 districts (Glodeni district, Riscani district, Singerei district, Ungheni district) and
Balti municipality was determined.
Total availability of population and taking into consideration these districts, is presented in the table
below.
32

Table 13. Natural movement of population from Falesti, 2008.
Districts Total population of working
age
Employee mobility Unemployed
Employed Discharged
1 Balti
municipality
22 781 14 900 13 600 452
2 Falesti 19 155 2 200 3 000 337
3 Glodeni 12 162 1 800 2 200 402
4 Riscani 13 045 1 400 1 700 393
5 Singerei 20 806 1 400 2 000 293
6 Ungheni 24 648 3 800 4 000 895
376 613 25 500 26 500 2 772
Source. NBS.
The analysis of the data, presented in the above table, and geographical neighborhood of 30 km
around Falesti locality with the main set points identifies a high potential of the available labor force.
In particular including the number of employees, discharged from office and number of the
unemployed. As for Glodeni district more than half of the area is included in the area of 30 km.
The table contains the list of localities which are located in the range of 30 km. Within this area labor
force is deduced from the data, presented for the district.
Table 14. Total availability of population in area of 30 km around Falesti locality, 2007.

Locality District
Distance from
Falesti, km
Number of
working
population,
persons
Current
population
- total,
persons
Under
working
age
Above
working
age
1 Balatina Glodeni 29,94 3 021 5 544 951 1 572
2 Cajba Glodeni 27,5 1 023 1 714 366 325
3 Glodeni Glodeni 27,34 9 037 13 825 2 572 2 216
4 Corlateni Riscani 28,73 3 321 5 550 1 136 1 093
5 Balti Balti 24,87 100 402 143 206 22 300 20 504
6 Bilicenii Vechi Singerei 25,48 2 353 3 875 943 579
7 Singerei Singerei 29,93 9 028 13 360 2 554 1 778
8 Cornesti Ungheni 29,98 2 183 2 956 421 352
9 Petresti Ungheni 29,78 2 852 4 354 1 010 492
10 Taxobeni Falesti 23,51 1 356 1 725 339 30

Total 196 109
Source. NBS and calculations of ProConsulting LLC.
The analysis of the data, presented in the above table, and geographical neighborhood of 30 km
around Straseni locality with the main set points identifies a high potential of the available labor force
which can be se used by means of populations involvement within the created 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, abt. 34% of population is engaged in industrial
production. Moreover, the data show a level of over 20% of people with higher education, mostly in
Falesti. 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.
33
The situation of the unemployed, officially registered in Falesti 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 labor market while great majority of the population from villages
are not willing to make the corresponding registration. Nevertheless, it is seen that availability of
human 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 labor force.

Creation of the Industrial Park will lead, first of all, to the creation of new jobs alongside with existence
of active human resources, especially for production activity. This phenomenon will lead to growth in
purchasing power of households with effect of increase in contributions to local budget and
corresponding decrease in dependence of LPAs towards central ones, while surplus value could be
reinvested in development of local business environment.
2.4.3. Analysis of populations well-being and labor productivity.
Monthly average salary of an employee from NDR in 2008 made up 2089 MDL, representing 82% of
the average salary in the republic. Within 2005-2007 the labor productivity of employees as well as
evolution of the nominal salary was increasing. Within 2007-2008 productivity had a decreasing
trend, while the salary continued to grow.
Within January-June, 2010, in Falesti district, the average nominal monthly salary of an employee
from the district economy made up 1927,9 MDL increased by 8,6% as compared to the similar period
of the previous year.

Maximum levels were registered in the field of:
Transport and communications 3 054 MDL;
Processing industry 2 163 MDL;
Constructions 2 493 MDL;
Public administration 2 361 MDL;
Health 2 435 MDL.
Employees from piscicultural field and fields of culture and sport were paid 813 MDL and 115 MDL
respectively, which is below the average.
Main effects of creation of the Industrial Park on populations well-being consisted in creation of jobs
with high remuneration phenomenon specific to investment activities. The orientation of the Parks
activity to industrial production, activities of service rendering as well as option to export this
production through advantages, provided by neighborhood with the European Union, emphasizes the
number of advantages even more.
At present, abt. 29 persons work within the Plant of Street Cleaning Machines, representing a very
small number as compared to the total activity capacity. These aspects confirm the need to create an
Industrial Park on the territory of Falesti PSCM JSC means possible to create new economic
activities generating jobs.
Existence of available labor force correlated with unsteady situation in the field of labor remuneration
represents an impressive factor for determination of available resources for creation of the industrial
park.
Main aspects which can be represented by the benefits of creation of the industrial park are directly
reflected by creation of new jobs or better paid jobs.
Transformation into industrial park and facility provision, will make corresponding costs to be
significantly reduced, while by means of further investments, partner enterprises, under similar
conditions of activity, would be able to create new jobs or increase incomes, obtained by employed
34
persons beneficial fact for personal incomes and increase of the living standard of the local
population.

2.5. ANALYSIS OF PHYSICAL INFRASTRUCTURE.
2.5.1. Analysis of natural resources.
Main natural resource of NDR are high-quality soils which allow obtaining rich harvests of agricultural
industrial crops. 701,72 thousand ha of the total NDR area (1 001 394 thousands ha) are agricultural
lands making up 70% of the total area of the region.
Total area of Falesti district as of 01.01.2009 according to the data of the district Land Cadastre
makes up 107 259,57 ha, including:
Agricultural lands 80 457,34 ha (75%), out of which:
Arable land 57 738,86 ha (71.8%);
Perennial plantations 3 535,29 ha (4.4%);
Grazing lands and meadows 17 492,7 ha (21.7%);
Weed 1 690,49 ha (2.1%).
Lands in public property of the state 13 118,99 ha (12.2%);
Lands in public property of ATU 33 960,62 ha (31.7%);
Privately-owned lands 60 179,96 ha (56.1%).
Area of lands of rural localities as of 01.01.2009 makes up 8 335,8 ha or 7,8% of the total area of the
district.
Area of lands for transport, communications industry and other special destinations as of 01.01.2009
makes up 1 883,88 ha or 1,8% of the total area of the district. The share of from this land category
decreased as compared to the similar period of 2008 by 1,13 ha at the expense of reserve stock lands.
Lands intended for environment protection, health protection, entertainment activities make up 1,32
ha.
Area of forest area as of 01.01.2009 makes up 12 285,6 ha or 11,4% of the total area of the district, the
area which registered increases by 216,68 ha as compared to 2008 at the expense of lands with
agricultural destination and reserve stock.
Water resource lands make up 4 169,69 ha or 3,9% of the total area of the district.
The area of reserve stock lands decreased as compared to 2008 by 99,74 ha at the expense of forest
resources determining that at the beginning of 2009, their area makes up 26232,1 ha or 24,4% of the
total area of the district.
Table 15. Distribution of land resources by land categories, Falesti district, 2008-2009.
Name of land categories
Total area
Difference
01.01.2008 01.01.2009
1 Lands with agricultural destination 54 467,01 ha 54 351,18 ha -115,83 ha
2 Lands of localities 8 335,78 ha 8 335,8 ha +0,02 ha
3 Lands for transport industries and industries with other
special destinations
1 885,01 ha 1 883,88 ha -1,13 ha
4 Lands for environment protection, health protection,
entertainment activities
1,32 ha 1,32 ha -
5 Forest resource lands 12 068,92 ha 12 285,6 ha +216,68 ha
6 Water resource lands 4 169,69 ha 4 169,69 ha -
7 Reserve stock lands 26 331,84 ha 26 232,1 ha -99,74 ha
Total lands 107 259,57 ha 107 259,57 ha -
Source. Falesti DC.
35
For creation of the industrial park, the area, on which Falesti Plant of Street Cleaning Machines JSC is
currently situated, is enough 13,2 ha. However, as development perspective, from the analysis of
reserve stock, the potential of extension is available.
At the same time, existence of agricultural lands correspondingly implies the need for processing
machines and equipment representing a potential of demand for the industrial parks activity both
for production and maintenance, repair.
Creation of the industrial park will allow, in our opinion, for efficient use of agricultural lands, existing
in the region by using products and services within industries supporting agricultural activities.
2.5.2. Analysis of transport infrastructure.
Transport infrastructure of NDR is quite developed, having 11 stations of international connection
with neighboring countries Romania and Ukraine. The majority of connection stations are with
Ukraine. Main stations of transport infrastructure of NDR are:
- 4 stations of railroad transition: Criva Mamaliga, LargaKelmentt, OcnitaSokireani and
Valcinet Mahilyow-Podolsk;
- 6 stations of road transition: CrivaMamaliga, LargaKelmenti, OcnitaSokireani, Otaci
Mahilyow Podolsk and UnguriBronnita;
- 2 stations of water transition: SorocaTekinovka and CosautiYambol and
- 4 stations of road transition in simplified mode: MedvejaZelionaia, LipcaniPodvorievka,
Grimancauti Vaskivti and ClocusnaSokireani.
The figure below presents the structure of road, railroad and water passageways of NDR.
Figure 15. Road, railroad and water passageways of NDR.

.

Source: RDA.
Falesti district within NDR is boundary line with SDR through a multitude of republican and local
routes, such as R17 regional route or R57, R16 national routes, as well as connection of R14 national
Road communication routes
tiere
Railroad and water communication routes
Routes of communications:

National highway as
international

National route as international
National route
Regional route
Different-grade intersections
Customs

Density of road
networks

North
Stations :

Station Chisinau
Main large stations
Small station
Classification yard
Sector stations
Other objects of wagon
enterprise
Wagon depots
Customs stations
Barrages
Bridges
Platforms
Sea ports
Boat bridges
Railways:
Simple railways
Designed railways
Reconstruction of
railway sections
Double railways
Boat bridges

36
route which crosses mainly Singerei district. R16 national route and R17 regional route intersect
Falesti providing it with special advantages in the context of regional development.
Being bordered on Romania, Falesti district does not have direct road routes with it. Access to
Romanian part is possible by crossing R16 national road route up to intersection with border customs
point of Sculeni village. The length of the route up to the border point of Sculeni, Ungheni district is
about 27 km.
Public roads network of Falesti district makes up 107.76 km of routes with national roads coated with
asphalt concrete. District roads are stretched on the distance of 246.69 km, 106 km of which are
coated with asphalt concrete, while 140.69 km of roads are coated with rubble and gravel.
Falesti district has railroad transport infrastructure, but lacks water and air infrastructure. On the
territory of the district there are 5 railroad stations, one of which is on the territory of Falesti.
Configuration of railroads is of single type with a single line, while intensity of circulation of
passenger trains is 1-6 trains per day and 2-4 freight trains per day.
Transport infrastructure of Falesti district increases the regions attractiveness in order to create the
Industrial Park. For any economic activity it is very important to have communications and transport
infrastructure, but Falesti district as well as district center has local roads coated with asphalt
concrete, at the same time up to border point with Romania the route stretches on only abt. 27 km
which if driving with average speed of 60 km/hr can be crossed during 30 minutes at most.
It should be mentioned that all these aspects related to connectivity and transport infrastructure in the
northern region are the best developed, and thus, there are good prospects and higher attractiveness
for investors willing to invest in the industrial park. Situated in front of the railroad communications
hub of the locality and in immediate closeness to regional, local roads which are also connected to the
exit nothing but increases the investment attractiveness of enterprises.
Thus, regional infrastructure and well developed transport lines are successful factors for the
industrial park on the territory of the enterprise Falesti PSCM JSC.
In this regard, an intense development of the industrial park would recreate premises for development
of the whole regional infrastructure, and thus, a direct influence on the living standard of population
would be also felt.
2.5.3. Analysis of utilities infrastructure.
Water supply in NDR is provided mainly from underground water intakes but also from Prut and
Dniester rivers. According to statistical data, density of water-supply network in 2008 made up 39.2
km/km2. As regards this indicator, NDR is exceeded only by Chisinau municipality and is over national
average. Districts with the lowest share are Falesti, Riscani and Donduseni (see figure below).
Figure 16. Density of water-supply networks, km/100 km2 in districts, 2008

Source: RDA.
37
Out of 75 component localities of Falesti district, 13 localities have potable water-supply network,
while 5 localities are under construction of a potable water-supply system.
In Falesti, potable water supply is provided by 77 wells with a volume of 1 630 m3. In the locality
there is also an aqueduct to which 5 185 families are connected.
In general, water sources from Falesti are represented by:
- Ponds 31,46 ha;
- Artesian wells with a depth of 235 m;
- Prut river situated at a distance of 35 km.
Quality of potable water from the region is at the unsatisfactory level.

Figure17. Density of water-supply, sewage and purification networks.

Source: ADR. RDA.
Out of the total number of localities from Falesti district, only Falesti has a water purification system
and sewage system.
Falesti PSCM JSC lacks water-supply infrastructure which, in case of creation of the Industrial Park,
will determine investment of resources for the purpose of its construction.
Sewage networks in NDR are poorly developed, this situation being the same as the situation in the
country. Density of sewage networks is approximately 20 km/100 km2 which is lower as compared to
the national average of 22.6%.
There is no sewage system on the territory of Falesti PSCM JSC representing a disadvantage for
further activities to be carried out within the Industrial Park, the fact which will also determine
investment of resources for its construction.
On the territory of NDR natural gas supply pipelines cross territories of all districts with the
exception of Falesti district. According to the scheme of location of main networks of natural gas
supply, Falesti district is the only ATU from NDR which do not have natural gas pipelines on its
territory, these being only planned. (see Figure below).
Water mains:
Existing mains
Designed mains
Designed apeducts
Ground waters:
Fresh water deposits used for technical and production
purposes, the volume of approved reserves thousand
m3/day
Fresh water deposits used for domestic and potable
purposes the volume of approved reserves thousand
m3/day
Natural mineral table water deposits, the volume of
approved reserves thousand m3/day
Surface water intake
Water conditioning and reservoir stations
Mineral water deposits for external use, the volume of
approved reserves m3/day
Sewerage:

Purification stations
Purification stations to be
reconstructed
Existing departmental
purification stations

38
Figure 18. Scheme of gas networks.

Source: RDA.
In Falesti abt. 40% of apartments and 27% of houses are connected to natural gas. Thus, in the city a
total of 1 771 families are connected to gas pipeline, while 4 200 are to be connected to natural gas
supply network. At the same time, there are other 44 institutions which are also connected to natural
gas.
In the district 11 localities are supplied with gas by means of consumers connection to gas networks.
In 3 localities there is gas pipeline but to which domestic consumers are not connected.
According to the project on provision of gas supply Falestii Noi - Taxobeni, other 13 localities, where
projects on construction of intrarural gas supply networks are developed, will be connected to natural
gas supply network.
Electric power supply in NDR is provided by means of distribution networks which belong to the
State enterprise Electricity networks North" and Power-distribution enterprise RED Nord-Est JSC.
All localities from the region are connected to electricity. Near to the territory, where the Plant is
situated, a power supply station with capacity of 11 kW is built.
Fixed telephony in NDR is ensured by branches of the state enterprise Moldtelecom JSC. According
to the situation as of 01.01.2005, the region has 22 telephone stations per 100 inhabitants which is
less than the average in the republic, but more than in other regions.
Mobile telephony is represented by Orange, Moldcell and Unite networks, whose services cover
the whole territory. Although costs for services are high, according to data of mobile telephony
operators within recent three years, a trend of constant increase in the number of users is observed.
Indeed, utilities infrastructure defines the living standard of population of the analyzed region. As a
result of the above mentioned analysis, it can be concluded that the population of Falesti district does
not have conditions, good enough for living, in terms of utilities to which they access.
In this sense, at the previous prior to creation of the Industrial Park, it will be necessary to give
importance to the creation of utilities infrastructure. Out of all the above mentioned, Falesti PSCM
JSC is connected to electrical power network and it certainly has access to fixed and mobile telephony.

As a result, in order to carry out corresponding economic activities within the Industrial Park, it is
necessary to create natural gas supply infrastructure. In this case, the location of the Plant on the
territory of Falestii Noi itself offers an advantage from the moment of existence of the project on
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)

39
provision of gas supply Falestii Noi Taxobeni, to which the Industrial Park could be also connected
as entity. Thus, long-term advantages from this point of view do exist.
It will be necessary to build water-supply system since no system existed on the territory of the Plant.
Lack of thermal energy supply of real estate of the Plant leads to the decrease in the production
volume during winter season of the year, while as regards existing types of production shops, failure
to invest in the construction of thermal energy supply system will hinder effectiveness of the
Industrial Parks activities.
A less favorable aspect for the industrial parks activity is current lack of all utilities on the territory of
Falesti PSCM JSC. In this sense, there is a need for additional resources for the construction of
utilities infrastructure and external networks. In case of certain high cash investments in the interior
of the industrial park, creation of well-formed utilities infrastructure would ensure a good
functionality of component entities of the industrial park.
At the same time, since Falesti is district location and is situated near Balti municipality, it has definite
competitive advantages over other cities or districts. The main advantage is direct access to high
pressure gas pipelines which can serve for current consumption not only by local population, but also
by economic entities. Moreover, at the moment, project on provision of gas supply Falesti Taxoben
is under designing, representing a starting point for infrastructure development. In terms of effect on
the industrial park, this represents nothing but an advantage and opportunity to attract investors.
Under conditions of lack of connection to gas network, economic entities of the territory of the park
would be able to do it by themselves, with minimum costs and having extended opportunities in terms
of consumption.
Functioning of the power station of 110 KW in the immediate proximity to Falesti Plant of Street
Cleaning Machines represents a quite important determining factor. Moreover, in case of
development of certain new activities, based on alternative energy, the industrial park would have
direct access to electricity service provider, while direct sales of energy would be just a matter of time
for the future activity of the park.
Lack of thermal energy supply determines heavy costs for heating buildings on the territory of Falesti
PSCM JSC. On one hand, this would seem to be a negative factor, however, if it is to analyze possible
activities which can be carried out on the parks territory, then the lack of thermal energy would
become a favorable factor enterprises which will have the opportunity to produce thermal energy as
a result of activity of production of other products, a free and unrestricted sales market niche would be
created.
Benefits from the implementation of the industrial park consist in creation or improvement of the city
infrastructure and region on the whole, with positive effects on the environment. Construction of
interior and external networks of utilities infrastructure will also serve a part of localities, neighboring
with the industrial park which will lead to decrease in environmental pollution. Moreover, creation of
the industrial park will determine state authorities to build facilities, related to transport and
communications infrastructure with beneficial impact on the region.

2.5.4. Analysis of educational infrastructure.
The level of deprivation in fields shows that access to education in localities from NDR is higher than
in Central and Northern regions. At the same time, the level of economic deprivation is below the SDR
level and above the CDR level, while the level of medical assistance is the lowest.

40

Figure 19. Level of deprivation in development regions, NDR, CDR, SDR.

Source: Report on poverty and impact of policies, 2007.
As for Falesti, the level of education is abt. 40% of the total population of the locality. Out of them:
- 20% have higher education;
- 32% have specialized education;
- 48% have basic general secondary education.
See Figure
Figure 14.
As for specialized education, there is a vocational institution, with specialization in benchwork, etc. in
the locality.
At the same time, in Falesti, the educational system includes 6 kindergartens with 850 children, a
gymnasium with 184 pupils and a lyceum with annual number of abt. 2 018 pupils.
As it has been already mentioned, Falesti 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 city and Balti municipality, for example, 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 population from the region. 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.

2.5.5. SWOT analysis of the region / Falesti locality.
Table 16. SWOT analysis of the region.
Positive Negative
I
n
t
e
r
n
a
l

f
a
c
t
o
r
s

Strengths (S) Weaknesses (W)
Quite diversified industrial potential;
Existence of spaces available for industrial
activities;
Branched transportation network;
Capacities of thermal energy generation,
possibilities to store fuel;
Labor force is quite available and significantly
Poor quality of water prevents development of
organic agriculture;
Poor quality of soil determines decrease in volume
and quality of agricultural production;
Poor quality of potable water;
Due to the lack of protection infrastructure,
investments in agriculture are very weak;

NDR
CDR
SDR
41
cheaper than the average in the country and NDR
(salary represents abt. 62% of national average and
abt.77% of the average in NDR);
Increase in labor productivity;
Favorable climatic conditions for cultivation of
different crops, especially sugar beet and vine;

Use of outdated technologies and equipment within
production process;
High cost of capital and limited access to finances
foe economic entities;
Infrastructure of business support is poorly
developed;
Reduced level of economic entities location;
Reduced own revenues of LPA and dependence on
transfers from CPA;
Degradation of public utilities infrastructure;
Social infrastructure is poorly developed;
Quality of local roads is quite poor but not
significantly worse than the national average;
Reduced level of provision of gas supply;
Reduced demographic trends and population aging;
Shortage of qualified labor force;
Degradation of environmental quality, excessive
soil contamination and increase in frequency of
erosions and landslides.
E
x
t
e
r
n
a
l

f
a
c
t
o
r
s

Opportunities (O) Threats (T)
Favorable geographical location. Proximity to
Romania;
Developed transport infrastructure (branched
railroad, routes Balti Chisinau and Iasi Sculeni -
Balti);
Belonging to Euroregion Prutul de Sus (Upper
Prut) can be used to attract investments;
High level of priority, given by the Government to
reforms of regional development and
decentralization;
Creation of clusters, industrial parks and business
incubators.

Intensification of negative effects of the world
financial crisis and extension of economic
recession;
Political instability at the national level, expressed
by incoherence of policies in the field of regional
development and frequent modifications of
normative framework;
Limited connection with the EU through Romania;
Dependence on energy resources and energy price
fluctuations;
Continuous migration of economically active
population;
Frequent increase in natural disasters and extreme
weather conditions resulting from processes of
climate change.
Source: Developed by the author.
Industrial parks, in general, are welcomed in the regions, where nothing appears on its own, while
Falesti corresponds to the peculiarities of these regions due to:
- poor quality of soils which does not allow obtaining a rich harvest;
- majority are unemployed or left abroad. In terms of the level of citizens mobility, availability of
staff in case of creation of the industrial park, will be arranged economically. Only by means of
economic incentives the emigration trend can be inverted.
- prevalence of poverty. Falesti district ranks among the first three places in NDR by gravity of
living conditions. An investment approach of the entrepreneurial activity by means of facilities,
provided by industrial park, will allow resolving the poverty problem.
The most attractive sectors for investments in Falesti district with connection to Falesti are:
1. Construction of machines free space and labor force are available;
2. Agrofood industry processing of fruits and vegetables, milk products, meat processing;
3. Zootechny development of poultry farms, rehabilitation of complexes for cattle;
4. Light industry extension of existing capacities and attraction of new enterprises.

3. LEGAL FRAMEWORK
3.1. Analysis of legal framework of 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
42
organizations 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
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 favorable conditions in the process of privatization
of productive objects including the possibility of payment by installments 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 parcels of land being in public
property (except those of agricultural or forest destination), the investor has to pay in the first year at
least 25% of the parcel price, the rest of the payment can be staggered for the period of 10 years. The
last provision is of 5 years in case of lands adjacent to privatized objects. 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, whose
efficiency 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 who 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 identified as fundamental principles of the
economy (art. 9 of the Constitution of the Republic of Moldova). The government of the Republic of
43
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 limited under the pretext of inopportune nature or its uselessness. Private contracts are
discussed freely, then are registered with the notary for their legal authentication. Contracts of land
lease are registered with the bodies of the local public administration.
Activity of industrial park
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.
Main goals of this 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 alongside 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 administration of Falesti PSCM JSC and their analysis, it was
established that it is a:
- commercial joint-stock company, with the state as a majority shareholder;
- constituent document: Articles of association of Falesti PSCM JSC of 23.02.2009 (in new
edition);
- administrative body:
a) General Meeting,
b) Company Board,
c) General Director,
d) Audit Commission.
- shareholders:
a) State (by Public Property Agency) 94,120%,
b) Justar JSC 0,583%,
c) Europa Trust LLC 4,463%,
d) Others 0,830%.
General Meeting of shareholders has exclusive powers described in art.18 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.
44

Company Board exercises powers described in art. 32 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.
Registrar Registrator Centru JSC, 10 Calea Iesilor St., Chisinau.
Shares register reflects modifications, related to property ownership on the shares. These were
exposed on open outcry auction, but were not sold. The shares were exposed on stock exchange at
least 3 times, but were not bought.

Number of ordinary shares 15 435 775 with nominal value 1 MDL.
The assets less than the amount of the share capital. On 01.02.2010 modifications in the share capital
were introduced 15 435 775 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 unavailable.
STAFF 29 constant employees.
Absence of rules and strategies for human resources.
Absence of trade unions.
Requirements for environmental observance it was established that requirements for
environmental observance are within the allowable limits with issuance of the permit for
environmental emissions within established limits.
Conclusions:
In the light of correspondence to all the requirements of the Law on industrial parks
3
, the enterprise:
- is created in the form of a joint stock company, where the state through the Public Property
Agency is the majority shareholder 94,120%;
Uses a land:
- with area of 13,2 ha (legal limit for creation of the industrial park is 5 ha);
- category of land for constructions, belonging according to property rights to administrative
territorial unit of Falesti Noi vil. 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;
- 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 Falesti PSCM 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 an enterprise, managing the park, to be
established on its basis.

3
Law No. 182 of 15.07.2010 on industrial parks
45
4. ECONOMIC ENTITY PRESENTATION
4.1. Profile of the enterprise.
4.1.1. General presentation.
Joint-stock company Falesti Plant of Street Cleaning Machines is located in the industrial zone of
Falesti.
Photo 1. General view of the enterprises territory.

Short name of the enterprise is Falesti PSCM JSC.
Legal address: 61 Eminescu St., Falesti, Republic of Moldova.
Executive headquarters is at the same address.
4.1.2. Brief historical review
Construction of Falesti Plant of Street Cleaning Machines began in 1987 during the former USSR.
According to political conditions, which the USSR were going through during that period, construction
finishing covered more stages:
Stage I: 1987-1991.
Within the first stage, in 1987, Forge was built and put in commission, making up abt. 15% of the area
of Metallurgical section. Thus, within 1987 1988 Metallurgical section, composed of Forge and
Foundry, was put into operation. Foundry construction was finished during 1991.
As a result, the first stage of contraction of the Plant consisted in putting into commission of abt. 8.3%
of the planned total area.
Stage II: 1991-1993.
The second stage began with the construction of the Main shop and in 1991 96% of its area, that is
11 430 m
2
, was put in commission.
At the end of 1993, the Main shop was completely built which allowed for putting in commission 477
m
2
more.
In conclusion, within 6 years it was possible to build 18 117 m
2
of the area of the Plant, meant
exclusively for production process.
At the same time, in the context of carrying out of those two stages of Plant construction, additional
areas of the production space, built on an area of 22 565 m
2
, were put into operation and included:
- Compressed air station 658 m
2
;
- Storehouse for metal and finished goods 14 770 m
2
;
- Storehouse for oils, paints, chemicals, materials 1 953 m
2
;
- Station for water cooling, pumping, purification 572 m
2
;
46
- Reservoir for water accumulation, V 1000 cub.m. (2 units)- 3 066 m
2
;
- Sewage and purification systems - 540 m
2
;
- Charging-discharging platform - 404 m
2
;
- Auxiliary buildings of forge and foundry - 560 m
2
;
- Security post (3 units)- 42 m
2
.
Stage III: 1993 until present.
The third stage of the history of the Plant is static in actions, abt. 45% of the useful area of the Plant
remained under unfinished construction.
These constructions include:
- Main production shop 22 491 m
2
;
- Canteen 1 831 m
2
;
- Parking area 3 308 m
2
;
- Area for testing street cleaning machines 1 135 m
2
;
- Other auxiliary buildings 4 910 m
2
.
Currently, the total area of the Falesti plant of street cleaning machines makes up 13,2 ha. In order to
facilitate operating activities, a railroad line at a distance of 1,5 km was built on the territory.
From legal point of view, Falesti plant of street cleaning machines was constituted according to the
Law on Joint-Stock Companies, Law on Entrepreneurship and Enterprises, Law on Securities
Market and other legislative acts of the Republic of Moldova. As a result, the Joint-Stock Company
Falesti plant of street cleaning machines was registered with the State Chamber of Registration on
September 15, 1992 with state identification number fiscal code 1002602003026.
4.1.3. Field of activity. Products and services of the enterprise.
According to its articles of association, Falesti plant of street cleaning machines has the main goal of
activity to obtain revenues from entrepreneurial activity. In this regard, once this Plant was created,
definite types of activity, implementation of which will allow achieving the final goal, were established:
1. Construction of street cleaning machines;
2. Production of consumer goods;
3. Rendering of transportation services to individuals and legal entities in the country and
abroad;
4. Commercial activity;
5. Foreign commercial activity;
6. Other activities which do not contravene the legislation and do not require licenses;
As a result, besides types of activity, the company is also entitled to carry out other activities,
unforbidden by law.
If within 1987 1993, the Plant was operating at intensive capacities, having long-term cooperation
agreements with large companies from post-Soviet space with the view to producing main types of
products, provided by the articles of association. Then, starting with 1994, the production activity of
the plant is oriented only to occasional offers, which imply a constant reprofiling of the existing
equipment, since appeared orders do not correspond to the Plants production orientation.
At the moment, the production process within Falesti plant of street cleaning machines is focused on
production of the following products:
- Street cleaning equipment for winter;
- Metal forging;
- Metal panel for high pressure;
- Repair of ferrous and nonferrous metal equipment;
47
- Production of maize processing equipment;
- Equipment for separation of nut kernel by categories, from impurities;
- Production of fences, gates;
- Nonstandard equipment for railroad;
- Lathes for railroad;
- Forged products, gear wheels, reduction gears;
- Flanges for agricultural and petroleum industry;
- Shovels for processing and maintenance of roads, etc.
General analysis of enterprises products determines 4 main categories:
1. Special machines;
2. Forged products;
3. Metal working;
4. Equipment repair.
Evolution of the enterprises sales by types of products also determines its specialization (see table
17).
Table 17. Evolution of sales by groups of products or services.
Products / Services 2007 2008 2009 First six months
of 2010
% turnover % turnover % turnover % turnover
Special machines 32,6 53,1 2,4 -
Forged products 41,0 38,4 4,3 63,2
Metal working 26,4 8,5 5,6 15,7
Equipment repair - - 87,7 13,6
Source: Falesti plant of street cleaning machines JSC.
If during the period of 2007-2008, the enterprises specialization was oriented to production of special
machines, forged products as well as metal working, then by 2009 the production process within the
Plant practically reduced to only 12% of turnover, the main field of activity consisting in activities of
equipment repair, the activity mostly implying activities of rendering services to population, etc, thus,
within the first half of 2010, the Plant almost stopped producing Special machines which
corresponds to the specialization, focusing basically just on the production of forged products, metal
working and rendering equipment repair services.
At the same time, equipment engaged in the production process of the Plant, despite its increased
wear and tear, is capable, at the moment, to produce a large series of products predominantly for
constructions industry, domestic needs as well as other types of products from the category of heavy
industry.
4.1.4. Dimension of the company.
Joint-Stock Company Falesti plant of street cleaning machines is an enterprise with public-private
capital, where the State, represented by the Public Property Agency under the Ministry of Economy, is
the majority shareholder with abt. 94,12% of the authorized capital.
Authorized capital of the Joint-Stock Company makes up 15 435 775 MDL, formed of 15 435 775
ordinary nominal shares with nominal value of 1 MDL per share.
Structure by categories of authorized capital implies participation in the formation of share capital of a
total of 76 shareholders, including:
- 73 individuals 128 108 shares (abt. 0,88% of authorized capital);
- 3 legal entities 15 307 667 shares (99,12% of authorized capital):
Public property agency under the Ministry of Economy 14 528 748 shares;
Iustar JSC 90 000 shares;
Europa - Trust FC 688 919 shares.
48
See the figure below.
Figure 20. Structure of authorized capital of Falesti plant of street cleaning machines.

Source: Falesti plant of street cleaning machines JSC. Authors calculation.
The enterprise is located on an area of 13,2 ha. Out of total area intended for production activity of 74
357 m
2
only 57,7% were put in commission from the moment of construction, while 42,3% represent
unfinished constructions as far as back the 90s. Out of total available production area, during its
activity, the Plant did not operate at a capacity of 100%. At present, according to the information of
administration and production team of the Plant, it is operating at a capacity of just 15%. This fact is
explained by at least two primary factors:
- Lack of appropriate technological equipment and increased deterioration of the existing
equipment;
- Lack of marketing system resulting in sales ineffectiveness and dependence on periodical
orders, which mainly do not fully correspond to the production destination of the Plant.
Thus, in terms of technological equipment, usage of available production areas, organization of
production and sales system, Falesti plant of street cleaning machines JSC cannot be considered
operationally and organizationally efficient. On the basis of the brief description of the enterprises
potential, from perspective of production and organization, there are also problems for staff
employment and servicing.
The whole production process is organized and carried out by 29 persons, including:
- 4 engineers;
- 6 guards;
- 1 driver;
- 1 warehouse officer, etc.
As a result, strictly speaking, 11 persons are involved in the production process.
According to data, provided for the current period of analysis development, September October,
2010, the administrative staff is composed of 6 persons. The staff problem has become a chronic one
within recent years. Due to unsteady conditions in which the Plant is found, the number of staff has
been permanently decreasing. Even if the number of staff, engaged in the operational process within
the analyzed period, does not correspond to the production destination of a Plant at all, it has not
exceeded even the limit of 50 persons (within 2007-2010, see figure below).
Figure 21. Evolution of staff of Falesti PSCM, 2007-2010.

individuals
corporate
49
The trend, registered by the Falesti plant of street cleaning machines, regarding involvement of staff in
the production process, shows pessimistic values, incapable to determine productivity at the moment.
The only way to stimulate staff by the administrative team of the Plant, is to increase the wages fund
by abt. 3% annually.
Figure 22. Dynamics of wages fund, 2007-2009.

Thus, the average salary for an employee, within this period does not correspond to the single trend of
3% increase. Depending on the number of staff, existing for each analyzed period, the highest annual
salary for a person was registered in 2009 abt. 25 333 MDL, while the highest increase in average
salary for an employee was registered in 2008 abt. +17%.
The main explanation lies also in exogenous conditions, created by the world economic-financial crisis,
which affected the demand of the Plant even more, but, at the same time, emphasized its vulnerability
towards external conditions of business environment.
Availability of a miserable production infrastructure and in terms of the condition of the existing
production equipment, a small number of production staff, the absence of a sales marketing system,
nothing but perfectly explains the decrease in sales revenues by abt. 55% in 2009 as compared to
2006. Sales for III quarter of 2010 represent only 15% of sales of 2009 and respectively 7% of those,
registered in 2006.
Figure 23. Evolution of sales revenues, 2006 III quarter of 2010.

The primary reason of registration of such a volume of sales consists in production and, accordingly,
sales policy of the Plant, which at the moment is focused exclusively on appeared occasional orders.
On the basis of the analysis of this problem on the whole, it is determined that the Plant has been
operating according to this formula since 1994, the fact which determines chronicity of the situation.
Even if at the beginning of the 2000s some long-term agreements were registered, they did not last for
more than 2 years, while the production capacity made up 20% of the total at the moment of
establishment.
Under conditions, in which technical situation of the Plant is deplorable, the only source of survival at
the moment is human resources. And in this case, the Plants administration intends to keep this
resource, thus, within 2009 2010, in one year, the average salary for person increased by 17% with
an increase in sales only by 7% for 2008.
However, this direction of maintaining permanent activity of the Plant is not advantageous for long:
technical condition of equipment is equivalent to becoming out of date, while 72% of staff, engaged
in production, exceeds the age limit of 45-55. Consequently, over abt. 5 years, the Plant will be unable
to continue or carry out an economic activity in terms of income acquisition.
Based on all indicators described above, the following conclusions are made: dimension of the
enterprise is stated to be minimum not only from technical and technological, but also from economic
Salary
50
point of view, while total restructuring is inevitable under conditions, in which preservation of the
current situation will lead to incapacity of the Plant to carry out economic activity within abt. 5-7
years.

4.2. Potential of the enterprise.
4.2.1. Diagnosis and infrastructure of location.
Joint-Stock Company Falesti plant of street cleaning machines is located in the north-eastern part of
the Republic of Moldova, in Falesti district component part of NDR.
Although legal address of the enterprise refers to Falesti, geographical location of production sectors
are on the territory of Falestii Noi village at a distance of abt. 1,2 km from the entrance to the city.
Thus, those 13,2 ha, on which the Plant is located, is outside of Falestii Noi village parallel to R17
regional route.
Scheme 3. Geographical location of Falesti plant of street cleaning machines JSC.

Source: www.wikimapia.org
Immediate proximity to one of national road communications lines offers a strategic advantage to the
Plant in the context of organization of an efficient process of activity by facilitating commercial and
procurement relations in the context of further creation of an Industrial Park on this territory.

4.2.2. Technical diagnosis.
4.2.2.1. Description of real estate.
Total area, on which Falesti plant of street cleaning machines is situated, makes up 13.2 ha, where
main real estate items are located:
Table 18. Real estate of Falesti plant of street cleaning machines JSC.
No. Name of the item
Cadastral
number
Area of
buildings/
total, m
2

Location
Destination

Constructions in production
1 Main production shop W/n 11 907 61 Eminescu St., Falesti Production
SEP
JSC
51
2 Forge and Foundry
W/n
3 872
61 Eminescu St., Falesti
Production
3 Storehouse for metal
W/n
1 770
For storage
4 Storehouse for materials
W/n
1 803
For storage
5
Auxiliary buildings for forge and
foundry
W/n
560
Production
6 3 security posts
W/n
42
Security
Unfinished constructions
7 Production shop
W/n
22 491
Production
8 Canteen
W/n
1 582
Auxiliary
9 Other auxiliary buildings
W/n
4 910
Production
Administrative buildings
10 Emergency administrative building W/n 1 130 61 Eminescu St., Falesti Administrative
Lands
No. Name of the item
Cadastral
number
Area of
buildings/total,
ha
Location
Destination

11 Total land W/n 13,2 ha Falestii Noi vil. Production
As it has been mentioned before, as well as basing on the image, created by data, provided in the table
above, the considerable area of the Plant which is not finished is observed and, accordingly, it cannot
be engaged in the production process. The scheme below provides graphical location of the main real
estate items component parts of the Falesti plant of street cleaning machines.
Scheme 4. Structure of location of real estate items on the area of Falesti PSCM.

Source: www.wikimapia.org . Authors presentation.
Production department, sold
to the enterprise Protos JSC
Unfinished part of the
production block
Sold unfinished
administrative block
Unfinished block intended
for canteen
Production department of Falesti
SEP
Storehouse of finished goods
Industrial block
1
2
3
4
5
6
7
Temporary building,
reconstructed in administrative
block in 2008 of Falesti SEP
Emergency administrative
block
9
8
52
Based on the analysis of data from the table 2 and from the figure 6, the following three conclusions
can be made:
1. Areas are not sufficiently explored and neither are finished as construction principle - 33 675
m
2
;
2. Out of areas, engaged in the operating activity, practically only point 5 (see scheme 4) functions
at present, thus, 16 722 m
2
more of possible favorable space for a production process is
identified;
3. All real estate items, which the enterprise has according to the balance sheet, are in a very
deplorable condition.
Unsteady situation of the Plants real estate items is also concentrated on the analysis of their balance
value and the fact that, at the moment, out of all real estate items, the wear is calculated only for:
- Block No. 2 Forge and Foundry. Out of initial balance value of 1 242 469 MDL, current residual
value makes up 824 284 MDL;
- Main block, whose initial balance value is 675 397 MDL, while current residual value makes up
448 074 MDL;
- Administrative block of the Plant went out of use because it was built on the bad area, resulting
in very serious problems during operation period subsidence of area and appearance of
fissures and, consequently, total degradation of the building. This was also influenced by
failure to carry out repair and maintenance works within necessary period of time.
- During November of 2008, works on temporary building reconstruction were carried out
former bedroom of constructors in order to build necessary administrative buildings, whose
current residual value made up 29 176 MDL.
At the same time, total balance value of real estate of Falesti PSCM JSC at the end of 2009 made up 48
587 966 MDL, reflected in the table below.
Table 19. Balance value of real estate of Falesti PSCM JSC.
No. Name of the item Value
1. Buildings with production destination 34 112 610 MDL
2. Buildings with non-production destination:
- Dwelling houses, etc.
2 154 114 MDL
3. Special constructions:
- Internal roads, railroad, pumping station, etc.
11 850 703 MDL;
4. Transmission facilities:
- Electrical power, heating, etc.
461 539 MDL
For further creation of an Industrial Park, there are highly advantageous premises in terms of
available areas abt. 50.4 thousand m
2
. However, the condition of these areas, technical equipment
and non-existing infrastructure does not depict the idea of creation of an Industrial Park in such an
advantageous way. At this moment, one of the decisions which may transform existing production
areas in optimum areas for carrying out an economic activity within legal framework of the Industrial
Park consists in large investments for creation of conditions suitable for these types of activity.
In order to assess necessary financial resources, Express analysis of technical condition on the basis
of existing documentation and on-site researches, was developed. Thus, the general condition of
buildings and facilities was evaluated as being very deplorable. This is conditioned, first of all, by the
fact that some of them have not been finished and equipped appropriately and also, within recent 15
years, the enterprise has not operated at the planned capacity, therefore, most buildings and facilities
have been not operated appropriately.
Lack of financial resources did not allow for their maintenance in good condition by executing
necessary periodical repair works. From the moment of enterprise operation, no repair,
reconstruction or consolidation work was carried out, resulting in early high deterioration, some of
them even need to be demolished.
53
Some of the main buildings were built on bad area, resulting in very serious problems during
operation period appearance of fissures, ground water rise, impossibility to use the buildings.
At present, all buildings are not provided with necessary utilities and equipment, technical-sanitary
networks, well-appointed lines and access roads to interior. There are only power supply networks
and railroad which can be used in future, correspondingly with execution of improvement works.
Main production shop is a metal bearing frame construction with envelope (walls and roof) of zinc-
coated sheet with mineral wool core. Windows and lamps of the roof are formed of metal frame with
ordinary glass.
Photo 2. Main production shop (Block II, Unfinished).

A part of this building, 22 491 m2 was not finished and is formed only from used metal structure.
The roof is very deteriorated, there is no floor, the walls are partial and practically unusable.
Forge and foundry are formed of prefabricated reinforced concrete components (columns, trusses
and wall slabs and roof) with metal support system. Windows and lamps of the roof are also formed of
metal frames with ordinary glass, which is mostly absent. The floor has considerable fissures and
spaces of access to basement with equipment is flooded by underground waters.
Photo 3. Floor.

Storehouses for finished goods are formed of prefabricated reinforced concrete components
(columns, trusses and wall slabs and roof) with metal support system. Windows and lamps of the roof
are formed of metal frames with ordinary glass. The roof is deteriorated. Chemicals storehouse is in a
deplorable state and needs complete demolition.
Coating of internal roads with asphalt concrete was not finished. Also, parking lots are in deplorable
state and their area is insufficient.
There are electricity networks with corresponding capacity but which require substantial
rehabilitation.
54
Heating, water supply and sewage systems do not exist at all. They are out of use and partially
dismantled.
Green spaces have been grown with weeds and are not looked after.
Two-level administrative block representing a limestone construction, with reinforced concrete floor
and roof, is in the state of serious disrepair and cannot be rehabilitated.
Photo 3. Emergency administrative block.

Unfinished canteen is also in deplorable state.
All mentioned constructions and buildings can be consequently repaired and operated owing to
valuable equipment, found in them. Such an approach is required by forge and foundry, where
equipment is in good condition and can be used at the maximum capacity. Also the main production
shop can be used with corresponding interventions.
Conclusions main measures to be taken were identified, and namely:
- Major repairs of partially existing sewage systems. They must be redesigned and
implemented according to new requirements from efficient materials with long service
life.
- Major repairs of electricity networks. There is a need to mount pylons and repair
transformation panels.
- Construction of new water supply networks with designing according to planned
requirements.
- Construction of a boiler room and heating networks. Construction of a boiler room is
necessary in case of construction of a new administrative block and existence of
production areas with a higher comfort. (acquisition of equipment for automation, etc.)
Large production shops can be heated by means of special heating equipment from direct
gas network.
- Natural gas networks are nearby and no effort is needed for its supply to the enterprise.
- Demolition of emergency buildings (administrative block, canteen and storehouse of
chemicals).
- Implementation of drainage system for underground water disposal from the building
of Forge and Foundry.
- Running repairs to auxiliary constructions (garage, storehouse).
- Reconstruction and consolidation of production shops, by carrying out main works:
Active main production shop:
Change of the roof;
Change of windows and lamps of the roof;
Repair of the floor;
Painting, etc.
Unfinished main production shop:
Change of the roof;
55
Mounting of windows and lamps of the roof;
construction of the floor;
execution of outwalls from panels of SANDWICH type
Anticorrosive painting, etc.
Redesigning of buildings vertically and horizontally, thereafter
construction of partition walls and auxiliary boards.
The last will result in increase of the area of production buildings by 22 400 m2.
Forge and foundry:
Strengthening of bearing structure,
Strengthening of foundation and floors,
Repair of the roof,
Change of windows and lamps of the roof,
Finishing and dye works, etc.
Storehouse for finished products:
Repair of floors and walls,
Repair of the roof,
Change of windows and lamps of the roof,
Finishing and dye works, etc.
- Construction of access alleys and of a parking area for trucks,
- Construction of an auxiliary administrative block with bureaus, offices, canteen and
modern conference hall.
- Construction of additional storehouses, production areas, etc.
Out of the total area of the enterprise of 13,2 ha constructions are located on an area of approximately
8,0 ha, including access alleys and railroad with outside storage:
a. Active main production shop 11 907 m2,
b. Unfinished main production shop 22 491 m2,
c. Forge and foundry 3 872 m2,
d. Storehouse for finished products 1 803 m2,
e. Emergency administrative block 1 130 m2,
f. Unfinished canteen 1 583 m2,
g. Unfinished storehouse 432 m2.
h. Garage 453 m2.

4.2.2.2. Description of equipment and facilities.
According to annual financial reports, the enterprises balance sheet for III quarter of 2010 included
Fixed Assets in the amount of 52 778 581 MDL. On the basis of the immediate analysis it can be
concluded that from this point of view, dimension of the enterprise is strong, capable to carry out an
economic production activity with a constant increase and having such optimum conditions for
transformation into the Industrial Park. However, internal analysis of the quality of technical
equipment of the Plant defines a less positive reality. Out of total value of Fixed Assets, interpretation
for Machinery and equipment is presented in the following table.
Table 20. Interpretation of equipment and facilities of Falesti PSCM JSC.
No. Number of
units
Name of equipment (by sections, types) Value
1. 34 Forge 755 769 MDL
31 - Tool department 440 079 MDL
20 - Metalware department 400 057 MDL
31 - ZSU department 267 157 MDL
103 - Repair department 255 479 MDL
121 - Foundry 297 607 MDL
56
~ - Mechanical department 1 887 398 MDL
2 6 Transport means 190 788 MDL
3 ~ Other means 23 174 MDL
Source: Falesti plant of street cleaning machines JSC, 2009.
Total value of facilities and equipment, owned by Falesti PSCM JSC makes up 4 517 510 MDL. Thus,
according to the interpretation, equipment of the Plant represents 8.55% of the value of fixed assets.
At the same time, from the total set of fixed assets, actually within the current operational process abt.
11% of the number of existing equipment or only abt.20% of their value are used. In conclusion,
unused equipment within the operational process is either stored or, irrespective of increased wear,
cannot be used in the absence of direction of activity it may carry out.
The following table presents equipment, engaged in the current production process and whose wear is
calculated for tax and financial purpose. Within 2008-2010 modifications in this sense have not been
registered.
Table 21. List of fixed assets, whose wear is calculated for tax and financial purpose for 2008-2010.
No
.
Name Model Inventor
y
number
Balance
value
Entry Total
balance
value
Operating
period
Residual
value
1.09.2009
Date Value
1 Screw-cutting lathe 1K62 43004 7638 7 638 8 years
2 Screw-cutting lathe SN502 43006 36779 36 779 8 years
3 Vertical drilling machine 2H135 43019 1590 1 590 8 years
4 Rough grinding machine 3K631 43022 5933 59 33 8 years
5 Universal grinding
machine
3D692 43035 714 714 8 years
6 Universal milling machine FV36CP 43043 18105 18 105 8 years
7 Universal milling machine 6T121 43046 4321 4 321 8 years
8 Semi-automatic circular
saw machine
8662 43051 5555 5 555 8 years
9 Semi-automatic circular
saw machine
8663 43024 6820 6 820 8 years
10 Hot stamp press 8544 41001 164443 164 443 8 years
11 Cutting press 9584 41002 12183 12 183 8 years
12 Forging hammer 4140 41008 10231 12/08 20 565 30 796 8 years
13 Leather pressing 1838 41010 116231 116 231 8 years
14 Electric oven 914 41017 7533 7 533 8 years
15 Electric oven 50011 41022 3314 3 314 8 years
16 Screw-cutting lathe 163 w/n 17205 17 205 8 years
17 Electronics /205 w/n 26486 26 486 8 years
18 Power transformer 1000 w/n 9915 9 915 8 years
19 Rough grinding machine 633 42166 949 949 8 years
21 Grinding machine 633 44006 1042 1 042 8 years
22 Universal milling machine FV32 44011 12927 12 927 8 years
23 Shaping machine 7307 44012 7843 7 843 8 years
24 Screw-cutting lathe. 163 40012 12078 12 078 8 years
27 Vertical drilling machine 2132 40019 3108 3 108 8 years
28 Vertical drilling machine 2132 40020 3108 3 108 8 years
29 Horizontal milling drilling
machine
682 40030 10466 10 466 8 years
30 Saber saw 8725 40036 787 787 8 years
31 Bridge crane 5 40000 26986 26 986 8 years
32 Electric overhead crane 320 40001 6473 6 473 8 years
33 Sheet shears HD3221 40073 32556 32 556 8 years
34 Gear milling machine E3C050 40035 36679 36 679 8 years
35 Universal milling machine ESS400 40033 8649 8 649 8 years
37 Semiautomatic welder BC632 47067 882 882 8 years
38 Semiautomatic welder 303 43068 601 601 8 years
39 Printer w/n 1699 1 699 6 years
57
40 Computer w/n - 05/08 5 533 5 533 5 years
41 Xerox w/n - 05/08 2 166 2 166 5 years
42 Fax w/n - 08/08 1 437 1 437 5 years
43 Computer w/n - 12/08 6 552 6 552 5 years
Total equipment 707 684 36 285 743 696 76 325
Including until 1.01.08 707 684 - 707 684
After 01.01.08 36 285 743 696
44 Motor car 730 w/n 11 662 11 662 6 years
45 Renault motor car Megane w/n - 09/08 171 616 171 616 8 years
Total transport 11 662 171 616 183 278 166 092
Summarizing the information, provided by the enterprise regarding technical production equipment, it
is observed that equipment is affected more by obsolescence which is inevitable both due to the loss of
market value and equipment aging, as well as due to the simple lapse of time, since commissioning
until present. However, each producer pays attention to Physical depreciation of the equipment, which
he uses, and its productive properties at each stage of analysis. Thus, despite the increased age of the
existing equipment (in production and storing), they have preserved a part of their functional
qualities, especially due to the effort of the administrative team to improve production capacities of
eventual equipment by repairing it or by substituting some essential parts, resulting in increase of
production term of the equipment.
In conclusion, technical equipment of the Plant which has become totally obsolete, still can be used
within the production process as a result of enterprises capacity to reduce negative effects and losses,
caused by obsolescence.
Creation of the industrial park by involvement of the Falesti plant of street cleaning machines as
Managing enterprise will allow resolving the problem of assets, which are not introduced in economic
circulation, by eventual provision of resident enterprises with them for lease-based use in order to
carry out production activities.

4.2.3. Technological and operational diagnosis.
Peculiarities of technological and operational process result from identification of diagnosis of real
estate and equipment, used by the company in this sense.
The production capacity of the plant has not been used at the maximum, provided by the foundation
project, even since first commissions of production shops. And once the plant was out the Soviet
activity system, it was not able to create its own viable strategy, resulting in aggravation of the
situation, so that, at present, only 11% of available obsolete facilities are engaged in the production
process. These facilities include only 20% of balance value of existing equipment.
The rate of use of production spaces is only abt. 24% representing Main production shop (see item 5
from scheme 4). At the same time, out of the production area of this Shop, only the maximum of 15% is
effectively used within the production process.
This image is also confirmed by technical condition of the building as well as by the quality of
infrastructure, which actually does not exist.
Consequently, as regards organization of a technological process, this can be mentioned only in the
light of succession of actions and operations by means of which each appeared order is implemented
due to the fact that since 1994, the Plant has been activating (at abt. 95%) only on the basis of
periodical orders. This fact results in instability of defining an established technological process and
existence only of operating activity, oriented to production activity.
Technological process is determined by the specific nature of operational one, which as it has been
mentioned is variable differs from order to order by the type of the product, which is requested to be
implemented. Order documents have contractual form, implying implementation in due time by the
Plant of a definite product. Launch the production implies the following stages:
- Receipt of the call-off order;
58
- Analysis of the possibility to implement the order;
- Acceptance of the order;
- Calculation of production costs and determination of the price for order implementation;
- Launching of the production process. As it has been mentioned, the production process within
the plant is variable in terms of the existing order. Production stages and technological
specificity are adjusted to the desired characteristics which the product must have. Based on
them, types of lathes, which are to be engaged in the production process, will be determined; if
necessary, the lathe is adjusted by means of completion with certain pieces in order to
successfully implement the operational process.
- Determination of the final product lot;
- Order delivery.
Creation of the industrial park will lead to:
Acceleration of organization and improvement of the entrepreneurial process on the target
territory of Falesti PSCM;
Creation of necessary conditions and premises for reviewing business strategy of Falesti
PSCM JSC.
In case of Falesti PSCM JSC, research of feasibility of the industrial park creation on
the territory, on which it is located, may lead to restructuring of the activity
organization, thus, conditions for its transformation into the Managing enterprise of
the industrial park will be created.
Synthesizing the information above, we mention that Falesti PSCM JSC has
available resources for transformation into Managing enterprise of the industrial
park to lesser extent by administration, organization and carrying out of the current
activity. One of the explanatory reasons consisted in the lack of specialized staff.
Thus, this hypothesis can be subsequently studied in its essence, as well as to take
obligatory measures and eliminate the reasons of the problem from the context.
By collecting impacts of foundation of the industrial park and its associated effects, within the
production process of Falesti PSCM JSC, progresses in operational process organization on the basis
of improvement of production marketing activity by means of all its components will be undoubtedly
registered.

59
4.2.4. Human resources and organizational structure.
Organizational structure of the enterprise identifies the period of activity from the beginning of the foundation resulting in considerable non-conformity of the
current activity specificity to reality. The figure below presents organization chart of the enterprise, provided by the Plant creation project.
Figure 24. Organizational chart of Falesti plant of street cleaning machines.

Management and current organizational process is much more simple (see table 24). The activity, in general, is organized horizontally, thus, top-level managers
as well as the enterprises director are directly engaged in the activity organization, catalyzing the other organizational directions as well. However, this fact
failed to materialize in positive results of the Plants activity. As a result, in case of research of Falesti PSCM JSC as Managing enterprise of the Industrial
Park it is necessary to rearrange the organizational management structure in terms of content and orientation direction. It is necessary for the enterprises
advantages and disadvantages to be really analyzed in order to establish coherent and viable directions of activity for the future, as well as to complete the
organizational structure with specialists from the fields which at the moment are priority ones for the enterprise, such as: marketing, planning, even production
organization. In case of production, the enterprise has qualified specialists in the fields, who have been working since enterprise has started its activity, however,
in order to ensure continuous activity under current conditions of market economy, it is vital for any economic entity to complete positions with young and
qualified persons. Experience exchange between generations is an internal force which ensures activity and success for the enterprise for long, if knowledge is
applied efficiently.
Chief
Engineer
Deputy
Director
Chief
Accountant
Chief
Electrician
Economic
Department
Referent Lawyer
Pr Production hief

Marketing
Department
Storeho
use for
Finished
Goods
St Storehouse
for Metals
Goods
S torehouse
for Complete
Sets
Goods
Guard
department
Guards Chief of
Transport
Transport
departme
nt
Accounting
dep.
Energectic
dep.
Electricians
Cleaning
personnel
Master Master Master
Forge
and
Stamping
Departm
ent of
Processin
g
Mechanics
Department
Tooling
dep.
Experimental
dep.
60
Decrease in the production volume within recent years resulted also in the decrease in number of staff,
engaged in the operating activity (see
Figure 21. The current advantage of the staff structure consists in the fact that, in general, the qualified
staff has been kept abt. 93%).
Table 22. Structure of staff in terms of education.
No. Level of education Number
of
persons
Total
share, %
1 Higher education 10 34,48
2 Secondary education 17 58,62
3 Unqualified employees 2 6,9
Total 29 100
However, the analysis in terms of age shows staff aging, over 70% representing labor force with age
between 45 and 55 years old, which does not characterize positively the situation of the enterprise for
long (see the following table).
Table 23. Structure of staff in terms of age.
No. Age category Number of
persons
Total
share, %
1 Up to 35 years old 2 6,9
2 Between 35-45 years
old
6 20,7
3 Between 45-55 years
old
16 44,8
4 Over 55 years old 8 27,6
Total 29 100
In terms of staff qualification and specialization, over 58% represents professional qualifications, directly
engaged in the production process (see table 8).
Table 24. Structure of staff in terms of professional specialization.
No
.
Level of
professional
qualification
Number of
persons
Total share,
%
1 Director 1 3
2 Deputy director 1 3
3 Accountant 2 7
4 Lawyer 1 3
5 Human resources
specialist
(secretary)
1 3
6 Engineer 4 14
7 Master 1 3
8 Warehouse officer 1 3
9 Turner 1 3
10 Metalworker 8 28
1 Miller 1 3
12 Driver 1 3
13 Guard 6 21
Total 29 100
Unqualified
staff
Medium
education
University
degree
>
<
Guard
Driver
Miller
Metalworker
Turner
Warehouse
officer
Master
icer
Engineer
icer HR specialist
icer
Lawyer
Accountant
Deputy director
61
Majority of employed staff is engaged in ensuring security of the enterprise. For Falesti PSCM JSC
security ensuring implies reduction of risk of damaging production shops or even disappearance of
equipment due to theft. Thus, over 20% of employed staff is represented by guards.
Within its activity, organizational structure of the Plant was reduced to the maximum. The main reason
consisted in deterioration in financial situation, decrease in production volume as well as retirement of
staff. While the conditions, in which the Plant is currently found, are absolutely unattractive for young
and qualified labor force.
With the view to keeping the existing staff, within the last year, the enterprises administration started
increasing financial motivation of staff, so that within 2007-2009, the wages fund grew (see Figure 22. )
alongside with decrease in the number of employees (see
Figure 21. Annual average salary for an employee within Falesti PSCM JSC is around 25 300 MDL for
2009, the largest value is for 2007 2009 (see figure below).
Figure 25. Average salary for the employee of Falesti PSCM JSC, 2007-2009.

The largest increase was registered in 2008, as regards 2009, the indicator was increasing slower as a
result of accelerated worsening of the activity: decrease in production volume, drops in sales. Under such
conditions, however, financial attention to the employed staff did not have so much to suffer. Discharge of
2 persons was made on the basis of retirement, which does not affect negatively the quality of staff
motivation strategy in the form of growth of the wages fund.
Conclusions:
Diagnosis of the human resource segment within Falesti PSCM JSC demonstrates its addressing in the
light of external factors, of stages of the plants activity.
Soviet investment planning for creation of the Plant was affected by Soviet Union collapse
resulting in cessation of investments for full commissioning of the Plant.
High-level planning (five-year plans) of the activity fostered skills to implement orders by
administrative direction of the Plant.
Exit from the Soviet space led to disappearance of:
- Constant production demand;
- Stable outlet;
- Planning of the activity from the outside.
Transition period did not lead to rehabilitation of the management system: business strategy
became aleatory; the plant started a production reorientation on the basis of the same equipment,
resulting in increase in incurred additional costs. Lack of a concrete strategy of future
development of the plant in the absence of a perspective investment plant led to decrease in the
production volume and, correspondingly, these cumulative effects entailed obvious reduction in
staff.

Effects of creation of the industrial park on the territory of Falesti PSCM JSC on human resources of the
enterprise are revealed from double perspective:
1. Falesti PSCM JSC resident enterprise of the industrial park.
62
Creation of the industrial park implies existence of an optimum infrastructure for activity carrying out,
while concentration of many entrepreneurial activities will lead to development of entrepreneurial
culture. As a result, the enterprise has opportunities to reorient its business strategy for production of a
stable product range as well as with increasing demand, which will facilitate creation of long-term
contractual relations. This perspective will be directly resulted in increase in the qualitative level of
human resources conditions for the involvement of specialists from such fields as: marketing, planning
finances, as well as production in order to ensure activity continuity under conditions, in which the
present staff is found within pre-retirement period, will be created.
2. Falesti PSCM JSC Managing enterprise of the industrial park.
For the industrial park administration, the enterprise has to review the management system according to
the conditions mentioned above. Obtaining this title will bring a number of economic benefits to the
enterprise. Under current conditions, the enterprise does not have human resources necessary to fulfill
obligations, the motive for which it is necessary to rearrange the management system and the system of
ensuring with qualified staff.

4.3. Commercial and marketing diagnosis.
Commercial relations of the enterprise are determined by the operating activity specificity. Lack of
production planning, caused by dependence on occasional orders, entails the existence of a commercial
system which is sensible not only as regards relations with customers but also, as a result, with suppliers.
Constant reorientation of production does not allow for the enterprise to form large raw material
inventories which actually could not be used for production of each product.
Within its activity, the enterprise benefited from contractual relations with foreign enterprises, such as
countries from post-Soviet space, but recently from countries such as Romania, Italy etc.
The analysis of main customers for previous and current periods, demonstrates the following:
- Electromentaj, Balti;
- Vibropribor SE, Chisinau;
- Red Nord JSC, Falesti;
- Mecanica M LLC;
- Donetsk - Metal LLC;
- Asam CA, Romania;
- Vima Group CA, Romania;
- Bastai Groziano CA, Italy etc.
The enterprises sales policy is implemented on the basis of a single method Sales of products on the
basis of registered orders, in this sense there are two influential factors:
a. Image of the enterprise as producer, specialized in definite products, which are subsequently
requested by the customer;
b. Activity of the enterprises administrator with the view to establishing definite offers and
negotiations of contracts with production objective.
Origin of the existing problem in the sales system of the enterprise also consists in the common influence
of the following factors:
a. Degree of obsolescence and deterioration of the existing equipment;
b. Deplorable condition of production areas;
c. Lack of an exact, coherent and viable strategy of activity.
The first two separately analyzed items are in urgent need for investments for rehabilitation of the
situation in order to create favorable conditions for activity carrying out.
The complete analysis of those 3 items explains the reduced level of organization both of management
and, as a result, sales system. It is too soon to speak about an activity of enterprises promotion since it
was not included in operating activity actually.
Due to the lack of a favorable infrastructure for carrying out, in optimum conditions, a production,
organization activity can in no way lead to supporting qualified staff, much less to the organization of a
63
sales system, of contractual relations with suppliers in the manner by which enterprises development is
possible. Creation of an industrial park by involving persons, interested in improvement of the business
environment on the territory of the plant, will allow eliminating all negative effects of the activity
organization, but also, in terms of commercial environment, it will also allow creating a marketing system
- vital to ensure the Plants activity increase. By studying requirements and needs of the market, it will be
possible to determine future orientation of the enterprises production, while establishment of
advantageous and long-term contractual relations will allow for the enterprise to increase the qualitative
level of activity and, as a result, conditions, necessary for the transformation into the Managing enterprise
of the industrial park, will be created.
Creation of the industrial park must be treated as a strategic tool of determination of future direction of
activity of Falesti PSCM JSC taking into account the aspects according to which:
- from territorial, technical point of view, Falesti PSCM JSC has resources, necessary to
create an industrial park and eventually to become the Managing enterprise;
- from organizational perspective of human resources, of commercial policy there are
discrepancies which must be eliminated.
On the whole, as a result of the enterprises diagnosis in terms of technical, technological, organization
and commercial infrastructure perspective for creation of an industrial park becomes viable only in case
of implementation of an investment process in force for all these listed segments.
Conclusions:
- There are no marketing and sales activities.
- The enterprise depends on occasional orders appeared from the outside.
- Services are not promoted.

4.4. Economic and financial diagnosis.
Assessment of the organizational, technical, commercial and other situations of the enterprise did not
revealed a favorable image, implying the need to develop financial diagnosis (see table 25) in the context
of determination of eventual management decisions of the enterprise in future, referring to
determination of the opportunity to create the industrial park on the territory of Falesti PSCM JSC.
Table 25. Express analysis of Falesti PSCM JSC within 2006-01.10.2010.
Name of entry Un. 2006 2007 2008 2009
III quarter
of 2010
Characteristic of property
Total assets
Thousand
MDL
61 706 343 61 120 551 61 653 073 60 301 774 59 754 049
Long-term assets
Thousand
MDL
59 989 157 59 847 310 59 430 861 59 211 397 58 809 323
Current assets
Thousand
MDL
1 717 186 1 273 241 2 222 212 1 090 377 944 726
Net assets value
Thousand
MDL
55 241 752 59 331 850 61 000 798 59 685 610 59 030 552
Characteristic of liquidity
Total liquidity ratio times 0,27 0,71 3,41 1,77 1,31
Absolute liquidity ratio times 0,00 0,02 1,57 0,40 0,02
Net working capital, NWC
Thousand
MDL
-4 747 405 -515 460 1 569 937 474 213 221 229
Characteristic of financial stability
General liquidity ratio times 0,90 0,97 0,99 0,99 0,99
Autonomy ratio times 8,55 33,17 93,52 96,87 81,59
Share of long-term debts in
balance-sheet total
% 0% 0% 0% 0% 0%
Characteristic of return on equity
Return on total capital % 0% 7% 3% -1% -1%
Return on equity % 0% 7% 3% -1% -1%
Financial leverage times 0,12 0,07 0,02 0,01 0,01
Characteristic of business profitability
64
Return on sales (without VAT)
Thousand
MDL
2 057 861 1 857 435 2 004 150 929 367 146 322
Net income
Thousand
MDL
118 626 4 090 098 1 668 948 -781 064 -319 266
Business profitability % 6% 220% 83% -84% -218%
Margin of safety % 100% - - - -
Characteristic of business activity
Turnover of assets times 0,0 0,0 0,0 0,0
Turnover of long-term assets times 0,0 0,0 0,0 0,0
Turnover of receivables days 90,3 65,2 50,7 111,0
Turnover of advances
days
97,5 93,0 69,6 133,1
Stock turnover
days
86,6 80,9 60,2 121,8
4.4.1. Analysis of Balance Sheet
ASSETS.
Balance situation of the enterprise demonstrates the total value of assets in the amount of 59 754 049
MDL with a 3,16% decrease compared to 2006, especially at the expense of:
- decrease in balance value of long-term assets by 1 179 834 MDL (1,97%);
- reduction in value of stock of goods and materials by 393 725 MDL (35%).
The most important influence was exercised by the value of long-term assets, having 98% share of
balance sheet asset compared to 1,12% of stock of goods and materials for the last period of 2010.
Long-term assets.
Structure of long-term assets at the end of the reporting period reflects an exceed of asset value in the
course of execution by 18,6%:
- fixed assets - 23 941 107 MDL (40,7%);
- tangible assets in the course of execution 34 868 216 MDL (59,3%).
Analysis of the structure and value of tangible assets reveals one of the origins of general unbalance of the
enterprise:
major value of assets in the course of execution, dating from the stages of creation of the
enterprise, are reduced from its productive capacity, etc.;
Internal analysis of fixed assets of the enterprise, implemented in item 2.2. ,demonstrates the fact
that out of the total number of existing fixed assets, only abt. 11% are used, correspondingly, the
value of wear of 28 837 474 MDL is calculated only for 11% of fixed assets, registered on the
enterprises balance sheet. Thus, high degree of wear of technical equipment of the enterprise can
be deduced. At the same time, another conclusion, according to which the registered value of fixed
assets do not correspond to the market reality, resulting in unjustified increase in the enterprises
value ,is determined. In this sense, it is necessary to reevaluate tangible assets. Such a procedure
will facilitate the process of improvement of internal unbalance of the enterprise, including
regarding of study of the case of creation of an industrial park on the basis of current technical
equipping of Falesti PSCM JSC.

Short-term assets.
Thus, reduction of the value of balance sheet asset can be explained, first of all, by reduction of stocks of
goods and materials, determining a reduction in the general activity of the enterprise. One by one, effects
were also reflected on the relation with its consumers by reducing short-term receivables by about. 67%.
For the current situation, the reduction of receivables does not define an improvement in commercial
65
relations with its customers but rather a decrease of the activity. Out of the value of 143 231 MDL -
receivables on commercial invoices abt. 78% are current or overdue receivables (see table 26).
66
Table 26. Situation regarding commercial receivables of Falesti PSCM JSC, 1.10.2010, MDL.
No. Name of debtor
Balance as of
1.10.2010
Date of formation Assessment Breakdown
1 Agroservicii Ungheni JSC 2 810 03/2003 overdue Materials/services
2 Stecolin Chisinau 997 04/2003 overdue Materials/services
3 Acalifa Nord LLC 393 08/2004 overdue Materials/services
4 IE Tabaranu 600 02/2005 overdue Materials/services
5 Falesti Culture Direction 6.81 04/2005 overdue Materials/services
6 DPGCL Falesti 5220 04/2005 overdue Materials/services
7 Careu Prim Falesti 1 617 06/2005 overdue Materials/services
8 Commercial bank Banca Sociala 69 09/2005 overdue Materials/services
9 Balti Gaz LLC 400 10/2005 overdue Materials/services
10 CAPC Consateni 2 480 10/2005 overdue Materials
11 Cenagro Impex LLC 67 02/2006 overdue Materials
12 Avicola Nord JSC 893 03/2008 overdue Services
13 Voal Balti LLC 153 10/2006 overdue Services
14 Amicrist - Falesti LLC 143 10/2006 overdue Services
15 Rasovschii F. Ef. 403 08/2006 overdue Services
16 Electromontaj Balti 1 000 08/2004 overdue Services
17 Baltimetraut JSC 601 08/2008 overdue Services
18 Balti Police Commissariat 3 583 11/2008 overdue Services
19 Bodrug V. Falesti 140 11/2008 overdue Services
20 SE Vibropribor Chisinau 6590 12/2008 overdue Services
21 Aqua Termalis Falesti JSC 17 389 12/2008 overdue Services
22 Red Nord Falesti JSC 17 900 10/2009 current Services
23 Mecanica M LLC CA 1 500 07/2009 overdue Services
24 Hidroimpex JSC, Soroca. 5 985 09/2009 current Services
25 Donetsk Metal 6 697 07/2000 overdue Services
26 Asam Romania CA 2 862 06/2001 overdue Services
27 Vima Grup CA Romania 18 645 12/2003 overdue Services
28 Bastai Graziano Italy 44 077 12/2003 overdue Services
Total 143 231
Overall analysis of the situation regarding the enterprises receivables - over 79% are overdue (152 244
MDL). Since 2007, the funds registered on the enterprises settlement account recorded continuous
increases as compared to 2006. During the first 9 months of 2010, they increased by 231% (9 931 MDL).
Analysis of indicators of evolution of the enterprises financial situation, especially indicators of increase
67
does not either show a favorable situation - these trends of increase are definitely below the capacity,
specified alongside with the creation of the plant.
LIABILITIES.
Equity.
As for sources of finance of liabilities of the enterprise, they are largely formed of equity. At the end of the
period of analysis, this indicator registered an increase by 3 788 800 MDL (+ 7%), its share being 98,8%
of liabilities corresponding to the value of 59 030 522 MDL. This fact indicates a deterioration of financial
stability and appearance of financial risk. Equity is formed in proportion of 26,1% of authorized capital.
Long-term debts.
For the analyzed period, the enterprise did not attract long-term financial resources, but at the same time
did not register investment development activities. Equity financing of the activity focused on the support
of operating activity. This fact does not positively characterize organization of the enterprises activity,
while for future activities of the enterprise the need to attract resources of investment nature,
representing the only force capable to improve the current situation, is determined.
Short-term debts.
Short-term debts have a share of 1,2%, corresponding to 723 497 MDL in absolute value. Structure of
short-term debts implies:
- Debts on commercial bills - 43%;
- Debts on staff 17,7%.
Considerable share of debts on staff results from the accumulation of wages payable, corresponding to a
negative balance of the enterprises activity.
The enterprises financial situation from the point of analysis of balance sheet provides defects both in
the category of tangible assets and of current activity organization, which for the period of analysis
registered value reductions. In this case, creation of an industrial park on the basis of Falesti PSCM JSC
would represent a strategy of local economy development in the specific environment in order to address
appeared unbalances.
4.4.2. Analysis of financial results.
Analysis of the enterprises situation on the basis of financial results will allow determining its
investment performance as a result of synthesizing economic-financial input flows, processing and output
for the period of analysis.
Table 27. Financial results of Falesti PSCM JSC , 2006-01.10.2010.
Indicators
2006
2007 2008 2009
III quarter
of 2010
Net sales 2 057 861 1 857 435 2 004 150 929 367 146 322
Sales value 1 290 817 1 128 954 1 595 708 791 827 145 329
Gross profit (gross loss) 767 044 728 481 408 442 137 540 993
Other operating incomes 134 714 263 125 108 919 42 944 228 851
Business expenses 1 475 69
General and administrative expenses 672 645 849 603 923 149 965 455 551 342
Other operating incomes 160 337 358 549 57 653 10 681 33 658
Result from investment activity 51 325 1 547 562 14 657 35 890
Result from financial activity -14 -2
Net profit (net loss) 118 626 4 090 098 1 668 948 -781 064 -319 266
During the period of analysis, the enterprises total revenues registered rate of decrease except for 2008.
At the end of the reporting period, the enterprises revenues made up 146 322 MDL with a decrease of
1 911 539 MDL (-92,9%) as compared to 2006. The share of cost of sales in total registered revenues
68
makes up 99,3% or 143 329 MDL in absolute value. The cost of sales within five periods of analysis
decreased by 88,7% or 1 145 488 MDL.
At the end of the first 9 months of 2010, the enterprise registered a loss of 319 266 MDL, representing -
218% of total value of revenues. Net financial result decreased by 437 892 MDL (-369%).
The most important positive value of net financial result was registered in 2007 4 090 098 MDL, but
which were oriented to cover expenses from the tax amnesty program.
According to the enterprise's financial reports, the last income distribution was made in 2008 according
to the following destinations:
a. Payment of dividends 500 684 MDL, including the state 471 264 MDL;
b. Development fund 550 753 MDL;
c. Capital reserves (according to the articles of association) 83 447 MDL;
d. Recompense of administration bodies 53 406 MDL.

Remarkable reduction of net financial result within two consecutive periods represents a negative factor
for the enterprises activity.
Within the reporting period, marginal profit decreased by 643 273 MDL (by abt. 7 times) and made up -
550 349 MDL, negatively characterizing the situation of the enterprise by lack of reserves to cover costs
and profit.
Small difference between value of involved sales and costs reflects the dependence of the enterprise on
occasional production orders which lead to:
1. instability of money savings and recently to drop in sales;
2. constant need to adjust facilities, equipment to technical requirements of the product, implying
additional costs, which obviously can not be covered by the selling price of the product or service in
the manner so as to cover the costs, related to operating activity as well in order to obtain profit.
Under these conditions, it is necessary to establish a long- and medium-term development strategy with
the view to efficiently using assets of the enterprise and starting investment attraction activities. One of
the possible methods to attract investment capital consists in the creation of the Industrial Plant on the
territory of the Plant. Benefits, related to this development direction, will be reflected in the dimension of
registered financial indicators.
4.4.3. Analysis on the basis of financial indicators.
Assessment of performance and risks, to which the enterprise is subjected, lies in the analysis of
indicators such as:
4.4.3.1. Indicators of liquidity:
Tabelul 28. Liquidity indicators for the period 2006-2009.
Name of indicators u.m. 2006 2007 2008 2009
Current liquidity ratio times 0,27 0,71 3,41 1,77
Modification of current liquidity ratio times - 0,45 2,70 -1,64
Influence of modification of invested capital times - 0,63 0,93 -2,02
Influence of modification of fixed assets times - 0,02 0,23 0,34
Influence of modification of current liabilities times - -0,21 1,53 0,04
Liquidity ratio times 0,09 0,13 2,28 0,75
Absolute liquidity ratio times 0,00 0,02 1,57 0,40
Working Capital (WC) MDL -4 747 405 -515 460 1 569 937 474 213
Daily average payments MDL 5 458 4 606 5 285 3 696
Ratio of coverage of current payments with
monetary funds
days 0,8 7,8 193,8 66,9

During the period of analysis there is an increase in Working capital by 5 221 618 MDL (110%) making
up 474 213 MDL. Increase in the share of net working capital in total assets by 110,2% making up 0,8%
69
determines an improvement of solvency as well as assets financing at the expense of own resources. The
necessity of working capital at the end of the period makes up 299 061 MDL. Actual value of this indicator
is above the permissible value, representing an advantage by the fact the enterprise is able to fund its
current assets from its own resources.
: Sufficiency of working capital indicator determined assignment of corresponding liquidity ratios:
general liquidity with the value of 0,27 in 2006 and 1,77 in 2009 (the optimum recommended
level is 1,5-2) with an increase of over 5,6 times, positively characterizing solvency of the
enterprise;
current liquidity 0,75 (optimum recommended level is 0,7); for the last two years of analysis
exceeds the recommended level, positively characterizing the enterprises capacity to finance
current assets at the expense of its own resources, which implies a margin of safety;
absolute liquidity 0,40 (an optimum level, depending on the specificity of activity, would be
within limits 0,05-0,1) determining development of business under optimum conditions, taking
also into account the fact that corresponding indicators were gradually increasing from a period
to another.
At the end of the reporting period, free money resources are able to cover 66 payment days, with a
decrease as compared to the previous year by over 65%, corresponding also to the absolute liquidity
decrease from 1,57 times to 0,4 times.
According to liquidity ratios that characterize the current and previous situation of the enterprise, an
effort, made by the enterprise, to handle current payments is observed, while as funding source they refer
to internal capacities, which do not represent development factors for long and medium terms. In this
sense, the available potential to attract investment resources, oriented to rehabilitation of utilities and
technical infrastructure of the enterprise is identified with the view to creating optimum conditions for
carrying out production activity, on which metalworking is specialized. Creation of the industrial park is
appropriate due to the conditions it implies.
4.4.3.2. Indicators of profitability.
Table 29. Profitability indicators for the period 2006-2009.
Name of indicators 2006 2007 2008 2009
Return on total capital 0,2% 6,7% 2,7% -1,3%
Return on equity 0,2% 7,1% 2,8% -1,3%
Influence of turnover of all assets 0,00 0,00 0,01 -0,01
Influence of business profitability 0,00 0,07 -0,05 -0,03
Return on authorized capital 0,8% 26,5% 10,8% -5,1%
Return on fixed assets 0,2% 6,8% 2,8% -1,3%
Asset turnover
0,03 0,03 0,03 0,02
Profitability for the whole business
0,06 2,20 0,83 -0,84
Return on working assets 6,9% 273,5% 95,5% -47,2%
The enterprises activity during the reporting period is characterized by unbalance at all levels, analyzed
in previous chapters. Exit from the Soviet space regarding organization of activity, cessation of
investments in finishing the construction, reduction in the number and quality of contractual relations
with international customers, dependence on occasional orders, lack of investments in technical
equipment, constant reduction in qualified staff have reduced the value of financial results. As a result,
the enterprises capacity to use the equity to obtain profit has considerably reduced.
Return on total capital and, correspondingly, on equity decreased to the value of -1,3% in 2009, while
return on authorized capital registers losses of 2,1 MDL for each share. Thus, the enterprise does not
use efficiently its own resources. One of the reasons consists in the influence of return on assets use.
Continuous reduction of the ratio and registration of a negative value for the last period of analysis also
explains the influence on the reduction of return on equity by:
- Reduction of asset turnover;
70
- Reduction of return on sales with implications for reduction of return for the whole
business by -0,84, resulting in influence on decrease of return on equity by 0,03.
If the use of the enterprises fixed assets is not effective also due to their current technical and
technological characteristics, the effectiveness of the use of working assets is represented even less
positive return on working assets makes up -47,2% for 2009. One of the influential factors consisted in
the same two reasons:
a. Occasional orders and their non-conformity with the plants production destination;
b. Low technical condition of equipment and additional adjustment costs.
Thus, the obtained profit is unable to cover production and auxiliary costs, resulting in inefficient use of
equity.

Under present conditions, the enterprise is not able to develop its activity at its own expense neither is
able to renew its assets within a short period of time and without external financial assistance.
Investment resources attraction in the light of creation of optimum entrepreneurial conditions represents
one of the appropriate development directions in the future.
4.4.3.3. Indicators of financial stability.
Table 30. Financial stability indicators.
Name of indicators u.m. 2006 2007 2008 2009
Value of net assets MDL 55 241 752 59 331 850 61 000 798 59 715 030
Autonomy ratio times 8,55 33,17 93,52 96,87
Solvency ratio
times
0,90 0,97 0,99 0,99
Current assets to equity ratio
times
-0,09 -0,01 0,03 0,01
Share of own resources for current asset
financing
% -276% -40% 71% 43%
Equity ratio
times
-5,28 -0,80 4,50 1,59
Immobilization ratio
times
34,93 47,00 26,74 54,30
Equity sufficiency ratio
times
0,92 0,99 1,03 1,01
Share of long-term debts in balance-sheet total % 0% 0% 0% 0%
Total debt coverage ratio times - 1,1 29,2 -12,5
Financial autonomy ratio at the end of the period of analysis made up 96,87 times with an increase of
over 10 times or 3,4 times per year. The established limit of correlation between equity and debt capital
is 1, it is necessary to pay attention to the fact that the possibility to clear debts of the enterprise depends
on the level of assets liquidity and financing from own resources. Thus, under the described conditions,
these ratios for the current situation of the enterprise, the permissible value of the autonomy ratio is 0,8,
which in reality exceeds and, as a result, the enterprises financial stability is relatively positive. The
enterprise is on track, in other words external management resources of the activity in bad conditions do
exist, and what is more they will be manifested under optimum development conditions, created by the
potential investment activity.
Acceptable financial stability is characterized also by ratio of total paying capacity (solvency ratio),
which at the end of the period makes up 0,99 times with a 10,6% increase as compared to 2006 and
exceeds by abt. 0,5 units of the permissible limit.
Mobility of activity reflects an increase by 109,2% as compared to 2006, that is there is improvement of
mobility of working assets, involved in the operational process, which are financed in proportion of 43%
of the enterprises own resources.
Increase in immobilization ratio by 55% in 2009 as compared to 2006 and, respectively, by 103% as
compared to 2008 reflects a decrease in assets liquidity and, correspondingly, decrease in enterprises
opportunities to meet short-term obligations.
71
Value increase in the equity sufficiency ratio by abt. 9% for the entire period of analysis shows an
improvement of existing guarantees to attract foreign capital for activity financing. However, the situation
still remains unsteady due to reduction of the ratio within the last two years of analysis. Investment
resources attraction and establishment of strategic development directions still remains viable in these
conditions.
As it has been mentioned before, the enterprise finances its activity from its own resources while the
structure of current debts includes commercial and calculated short-term debts.
Conclusions for creation of the industrial park.
Having an important complex of fixed, although used, assets, Falesti PSCM JSC from the very beginning
has been enjoying favorable premises in terms of creation and its transformation into industrial park,
which will allow for essential increase in their value, from the moment the industrial park provides
facilities for the residents that will be activating on the territory. At the same time, significant share of
own resources determines a high level of the enterprise stability and superior security regarding
eventual creditors or investors, of course correlated with increased risk in terms of financial efficiency.
Analyzed in the light of financial indicators, Falesti PSCM JSC presents the beneficial situation regarding
liquidity, whose high level would provide increased management opportunities for the enterprise. A quite
difficult situation is reflected in rerun ratios, whose negative value confirms once again the need to
restructure the company and orient it to investment projects, which can attract investors able to increase
the value of available fixed assets and generate a favorable final financial result.
Thus, reduced opportunities of the enterprises management are not due to the lack of knowledge in the
field, but due to the fact that the Enterprises Falesti PSCM JSC, being an enterprise with capital, which is
mostly owned by the state, has real estate, found in a quite deplorable state, the fact which does not imply
opportunities to obtain revenues. At the same time, lack of utilities infrastructure significantly reduces
the investment attractiveness while during full economic crisis short-term benefits from the use of used
real estate and production equipment can not be achieved.
Expected benefits for the company.
In order to ensure optimum profitability conditions and create premises for a viable development, it is
necessary to reorient Falesti PSCM JSC by creating the industrial park which would allow combining a
production activity with increased opportunities to invest and attract foreign investments. Thus, the
Enterprise will be able to cover its expenses owing to the involvement of this foreign investment flow and
opportunities to create optimum conditions for the activity of resident enterprises. Availability of real
estate and equipment, in case of their renovation, will be used in different activities, while with their help
the Enterprise could obtain an added value, which will be used to create new development premises -
which will ultimately result in revenue generation.

4.5. SWOT analysis of the enterprise.
As a result of carrying out of the general diagnosis of the current situation of the enterprise Falesti
PSCM JSC with the view to determining viability of creation of the Industrial Park on the territory and on
the basis of the enterprises assets, SWOT analysis in the light of viability or impossibility to create the
industrial park was carried out.
Table 31. SWOT analysis of Falesti PSCM JSC.
Positive Negative
I
n
t
e
r
n
a
l

f
a
c
t
o
r
s

Strengths (S) Weaknesses (W)
Existence of areas available for industrial activities;
Production technical potential;
Internal transport network railroad;
Expected range of products;
Load-free area;
State majority capital facilitating decision-making
process;
Access rail and motor road;
Unsteady situation of buildings and facilities;
Construction of some buildings on the bad land
resulting in appearance of fissures, ground water rise,
impossibility to use equipment;
Buildings are not provided with necessary utilities and
technical equipment, technical-sanitary networks,
access ways and roads.
Deterioration and obsolescence of the existing
72
Area of over 5 ha (13,2 ha);
Connection to public utilities is possible;
The land does not need change in destination;
There are plans of land location;
The land is provided for use for an unlimited
period of time;
It is possible to propose to the Government to develop
and to Parliament to adopt concrete measures of
facilities establishment;
Geographical situation at the connection of access
roads of Ungheni (Europe) and big cities of Moldova.

equipment; Most facilities are preserved; High
maintenance costs.
Use of technologies and outdated equipment within
the production process;
Dependence on occasional orders resulting in
additional costs for equipment adjustment to
requirements of new products;
Lack of modern information systems;
Lack of utilities infrastructure;
Chronic problem of staff lack of specialists, etc.
Insufficient staff and capacities to achieve the set goal;
Salaries are low, the fact negatively influencing the
motivation and recruitment of highly-qualified staff ;
There are no policies and practices of human resource
management, development and assessment;
Land, in property of local public administration;
Lack of clear tax facility.
E
x
t
e
r
n
a
l

f
a
c
t
o
r
s

Opportunities (O) Threats (T)
Favorable geographical location. Proximity to
Romania.
Free assignment or transfer in gratuitous use of the
estate in public property of 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 land, in public property,
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
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 by the Managing enterprise of the
coefficient of reduction of up to 0.3 of the basic tariff
for annual land lease payment
4
;
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;
Possibility to finance from the state or local budget;
Possibility to establish private-public partnership.

Intensification of negative effects of the world
financial crisis and extension of economic
recession;
Decrease in demand on the part of main customers
resulting in reduction in activity from quantitative and
qualitative point of view;
Political instability at the national level, expressed
by incoherence of policies in the field of regional
development and frequent modifications of
normative framework;
Limited connection with the EU through Romania;
Dependence on energy resources and energy price
fluctuations;
Continuous migration of economically active
population;

Frequent increase in natural disasters and extreme
weather conditions resulting from processes of
climate change.

Results of factorial diagnosis of the current situation of Falesti PSCM JSC determines the lack of
optimum conditions for creation of the Industrial Park. Viability of the project on creation of the park on
the basis of the analyzed enterprise becomes possible exclusively under conditions of attracting financial
resources to launch the investment process with the view to developing technical and production
infrastructure. In this sense, it is necessary to study current options for the industrial park development
in the light of organization of activity and determination of optimum financing resources.

4
Law on state budget for 2010, No. 133 XVIII of 23.12.2009. Annex 8.
73
5. SCENARIOS OF THE INDUSTRIAL PARK DEVELOPMENT
5.1. Determination of 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 outlets, etc.,
while acceleration of investment processes in the country represents an adjacent effect.
Premises for creation of the Industrial Park result from the performed analysis of the region as well as of
the Enterprise Falesti PSCM JSC on the basis of which construction of the Park is planned and they
include:
1. The low level of diversification of economy of the district based at the moment on food industry
(see Table 2. Industrial production by types of activities, 2009. );
2. Discrepancies towards historical industrial specialization and productivity of enterprises from
this sector (6,15% of industrial production for 2009);
3. Lack of technical, utilities infrastructure, qualified staff, organization system;
4. High potential of sales of production in terms of geographic location;
5. Assessment of sectorial development of Falesti district identifies specialization with industrial
preference (see Table 3. The main sectoral ratios of Falesti district, 2006-2009.).

The synthesis of these performed analyses, as well as the concept of the Industrial Park concept, presents
the following fields of activity:
Table 32. Determination of scenarios of the industrial parks activity.
Model 1. Unidirectional specialization Model 2. Diversified specialization
Mission
Activization of innovation process, technological
modernization of the sector;
Diversification and growth of economic stability of
the city /district;
Main
specialization
Production of metal final products and machine and
equipment production.
Variant 1.
Food industry machinery and equipment
construction industry;
Variant 2.
Industry of construction materials machinery and
equipment construction industry;
Variant 3.
Machinery and equipment construction industry
industry of construction materials food industry.
Main
activities
Preservation of direction of activity of Falesti
PSCM JSC as well as provision of opportunities to
new residents to produce similar products.
- street cleaning machines;
- street cleaning equipment;
- metal working;
- piece production;
- production of equipment/facilities for construction
industry;
- production of equipment and pieces for equipment
of different types;
- production of equipment for agricultural products
processing (including production of package for
agricultural products):
: equipment for processing of corn ears, etc.;
: equipment for processing of vegetables and fruits
separator, metering equipment, etc.;
: facilities for production of animal feed, etc.;
- repair of facilities of all types: industrial-
agricultural, etc;
- technical maintenance of agricultural enterprises,
agricultural machinery, etc.;
Variant 1.
Slowdown in the development of heavy industry of
the district must be completed with the situation in
agriculture, but with industrial orientation. Thus,
the following is included:
- meat processing;
- milk products processing;
- vegetables/ fruits processing;
- production of animal feed;
- production of packages for agricultural products;
For machinery and equipment construction
industry, activities, established for the model 1, are
included.
Variant 2.
Material construction industry has been emphasized
as primary element. Constructions with metal
structure represent essential advantages of
development for the planned model.
For machinery and equipment construction
industry, activities, established for the model 1, are
included.
Variant 3.
74
- assembly activities.
As additional activity, the creation of Business
Incubator to dynamize production activities and
benefit from related advantages is observed.
Represents an approach, focused on three essential
fields for local economy, and includes activities,
mentioned in previously proposed variants.
Residents
Falesti PSCM JSC and other local economic entities,
foreign investors, oriented to machinery and
equipment construction industry. In particular,
basing on SME segment the most active from local
economy.
Falesti PSCM JSC and other local economic entities,
including:
- Logofat - Prim LLC- with possible orientation to
processing of meat, milk, packaging;
- Taras Scop - Agro LLC possible direction
processing of poultry meat, packaging, need to
produce feed, etc.;
- Miledi LLC- meat processing (slaughterhouse),
etc.;
- ATAI LLC vegetables and fruits processing,
packaging, etc.;
Residents of the park with the view to carrying out
the mentioned directions of activity can be
represented by both existing local and foreign
companies, interested in the Moldovan market. At
the same time, creation of the industrial park will
represent possible reasons for the creation of new
businesses according to the direction of the chosen
activity of the park, as well as the offered
conditions.
Development
perspectives
Regeneration of the existing production of Falesti
PSCM JSC and the use of preserved assets, not
included in the economic circulation as well as
continuous development of metal products, which
will result in decrease of dependence on export of
products, for which there are implementation
conditions on the territory of the country,
acceleration of the innovation process; increase in
quality of obtained products and new market
penetration, etc.
At the same time, in the sense of export market
penetration and attraction of new technologies, it is
proposed as the perspective of development of
potential industrial park to create a Free economic
zone within the Park.
Creation of a structure of network of the industrial
park with inclusion of directions of activity specific
to sectorial development of the district. Prospects
consisted in their adaptation to industrial
production - direction able to generate major added
value for future.
Source. Developed by the author.

75
5.2. Selection, analysis and substantiation of the optimum scenario.
In order to assess the optimum model of activity of the Industrial Park, a list of comparative norms has been identified, and namely:
- Resources (equipment and technologies, production capacity, infrastructure and utilities, staff qualification, system of raw material resources
organization, transport infrastructure, internal and regional specialization, etc.);
- Related branches (branches, generating offers for provided industrial production);
- Outlet (of directions of planned activity, export potential);
- Competition (competitions from the region);
- Effects (impact of creation of the Industrial Park on the current enterprise, general impact on the region).
The table below determines the opportunity of scenarios and directions of development, mentioned depending on the established criteria.
Table 33. Analysis of scenarios of the industrial parks activity.
Model 1. Unidirectional specialization Model 2. Diversified specialization
Resources
Internal factors.
1. Production areas
The existence of strongly favorable premises by means of available spaces on an area of abt. 50.4 thousand m. p. Condition is not satisfactory, only abt. 24%
represent the usable area, the difference is represented by production buildings for which constructions, not being put into operation. were not finished,

For the activities, oriented to processing of agricultural production,
production areas in current condition, as well as after rehabilitation
investments do not fully satisfy activity norms. For the processing of
agricultural production it is necessary to meet sanitary norms, which are
more complex and strict than for metal production, construction materials,
etc.
2. Equipment and facilities
Existence of equipment and facilities with destination of metal processing on the territory of the analyzed enterprise, which is affected by deterioration and
obsolescence.
Lack of equipment and facilities to carry out all planned types of activities.
3. Technology
The opportunity to adapt the existing equipment to technologies of metal production implementation.
Total opportunity. Partial opportunity.
4. Current specialization
Compliance of the enterprises specialization research basis with types of products, provided for in the scenario, including those from the article of
association:
- Construction of street cleaning machines;
- Production of consumer goods, etc.;
As well as other activities, carried out at present, such as:
- repair of equipment;
- metal forging;
- ferrous and nonferrous metal working;
- production of forged pieces, etc.
Total opportunity. Partial opportunity.
Non-conformity of the current specialization with the planned specialization
implies obstacles also in terms of equipping production areas, for example, for
76
agricultural production processing, as well as carrying out of these three
directions of planned activity in the neighborhood.
5. utilities infrastructure
Situation of utilities infrastructure is represented especially by:
- Lack of water supply system (existence of problem with surface water);
- Sewage system is in deplorable state;
- Electric power supply system is problematic;
- Lack of heating system;
- Unsteady situation of the road system, etc.
6. Human resources
Labor force, currently involved in the operational process of metal production is not sufficient, in terms of numbers, for employment and development of
proposed types of activity with metal production destination. According to the research, system of management organization as well as staff qualification
requires intense investments for the opportunity to apply possible scenarios.
Related branches
External factors
1. Specialization of the region /
locality
Historical specialization of the region / locality. Existence of the potential to develop industrial activities.
Major share of food industry in local economy increasing development
capacity; high potential and growth of the construction industry at the level of
regions and, respectively, of the country.
2. Branch development
a. industry
Industrial orientation of the region: 98 enterprises in the district industry. 37 enterprises out of 99 (industry and agriculture) operate in the industrial field -
abt. 37,4% - in Falesti. Existence of industrial spaces also can be used. Falesti traditionally was an industrial zone.
b. agriculture
- 62 of enterprises operate in agricultural field (in Falesti) abt.63%.
- Developed zootechnical potential, including:
- Logofat - Prim LLC livestock farm, 411 heads need to process milk,
meat, produce feed, packaging materials, etc.
- Taras Scop - Agro LLC poultry breeding, 1000 tonnes of meat per year
need to process meat, produce feed, packaging materials, etc.
- Miledi LLC- bovine and porcine breeding need to process meat, produce
feed, packaging materials, etc.
- ATAI LLC vegetables and fruits processing, etc.
- Unused potential of animal product processing;
- Development of livestock lack of activities of animal product processing:
- meat (there are only 2 enterprises);
- vegetables/ fruits (there is only 1 enterprise);
- milk (there are only 2 enterprises).
Lack of production of animal feed.
c. constructions
Lack of satisfaction of the demand, correlated with the existence of specialized equipment production capacity.
The need to invest additional resources for adjustment to production of
construction materials (including metal constructions).
3. Suppliers
For metal production there are relations with potential suppliers. Mostly, raw material is imported.
As for specialization of agricultural production processing and with
orientation to construction industry it is necessary to establish new
relationships with raw materials suppliers. For the other two directions of
activity, included in the scenario (agricultural and construction industries),
deliveries can be made also across the country.
77
4. Transport network
Transport infrastructure of Falesti district, including of Falesti enhances entrepreneurial attractiveness of the region with the view to implementing any of
these scenarios.
Outlet

Relations, established with local customers.
Outlet, oriented to the European Union by neighborhood with Romania.
Relations, established with foreign customers, determine increase in potential of export by means of qualitative/quantitative development of production
operational process.
Outlet potential for equipment and metal pieces (as well as for construction industry).
Outlet potential for products of agricultural product processing industry, etc.
Outlet available in the locality, in neighboring districts, in the republic.
Need to maintain and develop the level of agricultural mechanization: abt. 31
mechanization stations, whose situation is bad, operate in the district
Outlet potential of agricultural and animal products on local, district and
national market, generated by fresh condition of products.
Increasing demand for street cleaning machines to maintain national roads,
etc.

Competition

Falesti district / locality is characterized by industrial potential as well as by its unused capacities.
Geographical location implies advantages, comparative with its neighbors in terms of industrial development (see page 2,3 Regional analysis).
In the metallurgical field, for machinery and equipment production 4 enterprises, 2 of which are oriented to agricultural equipment production, are registered
in Falesti:
- "PROTOS" JSC Plant of pipelines from stopped its activity;
- Falesti plant of street cleaning machines JSC is kept on the market by continuing its activity;
- " Falesti enterprise, specialized in repair of machinery " JSC agricultural equipment;
- "Agroservice-Falesti" JSC agricultural equipment.
Lack of competition in production of equipment and facilities for construction
industry and for agricultural production processing.
- Minimum competition in agricultural / animal product processing;
- Lack of competition for production of animal feed.
Effects
Positive
Elimination of unused production space.
Solution of problems of existing assets, unintegrated in the economic circulation.
Use of entrepreneurial culture.
Acceleration of entrepreneurial process will imply the need to attract high-level qualification labor resources, resulting in attraction of emigrant labor force, as
well as young specialists. Unemployment reduction.
Attraction of labor force from a wider range of professional orientation fields.
Increase in investment potential of the locality, implicitly of the Industrial Park.
- Specialization will generate the quality of final products.
- Increase in potential / activity capacity.

Increase in export potential.
Creation of long-term / strategic relations with commercial partners (suppliers, customers, etc.)
Creation of the opportunity for resident Enterprises to have production space with spare units at a reduced lease price both of the production space and
equipment.

- Concentration on a diversified range of services to reduce the risk of
dependence on main partners;
78
- Correlation between differential directions of economic activity to
acceleration of local entrepreneurship development;
- Diversified specialization offers the opportunity to create a value chain for the
purpose of complex satisfaction of the customers potential;
Concentration on development of agricultural industry implies comparative
advantages at the level of the country: transition from development of heavy
industry to processing industry.
Creation of the value chain for resident enterprises: obtaining of final product capture of customers by the final product (local production) with guaranteed
quality from the producer.
Negative
Unidirectional specialization of the industrial park may imply lack of the
necessary number of qualified staff for proposed directions of activity
Lack of qualified local labor force for directions of proposed directions of
activity.
Concentration entrepreneurial activity will generate increased competition need to renovate technical equipment of production with modern facilities
increase in production costs rise in sales price of the final product for a market, which is not prepared yet for a such situation.

Risk of dependence on a single branch of activity in case of decline in demand,
economic depression.

Risk of incapability to identify in the optimum regime potential investors and resident enterprises.
- Lack of sufficient investment resources on the part of state structures to create utilities and technical infrastructure.
Risk of appearance of internal conflicts between the Enterprise basis for creation of the industrial park and possible resident enterprises.
Development of administrative red-tape in case of the existence of a single control body - Managing enterprise.

79
As a result of the comparative analysis of scenarios, proposed for creation of the industrial park, it was
determined to select model 1 of scenario, which implies unidirectional specialization of the
industrial park preserving the production destination of the enterprise, on the basis of which the
study of its creation is carried out - metal production, equipment and facilities for various
purposes. Primary arguments consist in:
- Compliance of specialization of metal production of Joint-Stock Company Falesti plant of street
cleaning machines with directions of activity, proposed in the planned scenario;
- Industrial specialization of the region / locality;
- Increase in positive effects by reducing production areas and equipment, not included in the
economic circulation;
- Increase in positive effects of implementation of the first scenario as compared to the second one,
proposed for resident enterprises, region as well as existence of resources to reduce related risks,
etc.
- Like any economic activity, the industrial parks activity according to the chosen optimum
scenario, involve certain negative effects or risks which may occur during creation or operation of
the park. The substantiation of the chosen model of the parks activity mostly depends on the
degree of their influence. It is important to mention the risks, which were identified when
choosing this type of scenario and proposed elimination methods.
Table 34. Risks of choice of the scenario 1 and elimination methods.
Name Elimination methods
Risk of failure to quickly find investors
and resident enterprises.
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.
Lack of sufficient resources from the state
for the creation of the necessary
infrastructure.

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 real
estate and equipment;
creation and maintenance of the dialogue between the
local public authorities 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.
Risk of occurrence of administrative and
corporate conflicts among the Enterprise,
on the basis of which the study of the
opportunity to create the industrial park
and future resident enterprises is carried
out

promotion of awareness of the enterprises contribution
to the development of important industries of the region;
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.
Development of administrative red-tape
due to the existence of a single control
correct establishment of legal-administrative framework
80
body of the managing enterprise. 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
local public authorities.

At the same time, substantiation of the optimum scenario implies identification of benefits of its future
implementation for all categories of involved beneficiaries according to the table below.

Table 35. Benefits of the scenario 1 by the categories of beneficiaries
Categories Benefits
Managing enterprise Concentration of sources of incomes on two directions:
- from administration of the industrial park;
- from carrying out of the main activity (as a proposal)
Minimization of the risk of dependence on certain directions of specialization in case of
slumps
Expenses optimization due to the lease of production spaces which currently are not
used;
Recognition of contribution it has together with resident enterprises to the
development of industries with the regional importance, and the GDP of the countrys
economy;
Related effects of the industrial parks administration will be also reflected on the
productivity and final prosperity of the involved staff, etc.
Resident enterprises Creation of advantageous conditions for starting a new activity with orientation of
production or development of existing directions of activity;
Increase in volumes of sales due to the increase in competitiveness of obtained products
machinery and equipment production and, accordingly, with impact on growth of local
demand;
Opportunity of enterprises to cooperate between them within the park, in order to
create synergistic effects at the regional level for the purpose of machinery and
equipment production;
Increase in the potential to attract foreign investors, resulted from diversification of
products from the same direction of activity;
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 for employees remuneration due to the increase in the
volume of production.
Benefit from reduction of costs for business starting.
Local and central
authorities
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.
Consumers
Improvement of the quality of the products produced within the park by means of
orientation to machinery and equipment production on the basis of modern
technologies, generating added value of production products and costs, respectively
reduced);
- Access to utilities of infrastructure created due to reorganization of enterprises in the
industrial park (water, sewage, heating, etc.)
Enterprises from
related branches and
economic entities
interested in the
partnership

Due to the diversity of products, related branches will also grow (probably those,
included in the scenario 2 of development as well) 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.
81

5.3. Identification of potential resident enterprises
According to the concept of the industrial park, its residents can be economic entities that carry out
economic activities on the basis of a contract, preliminarily concluded with the Managing enterprise.
Main directions of activity must correspond to the activity of industrial production, service rendering,
as well as use of scientific researches and / or technological development.
The diagnostic table of scenarios of the industrial park development (Table 32. ) identifies the origin of
the main residents of the park. As a result, they can be represented by both local companies (from
localities, district, region or country) and foreign economic entities, interested in carrying out their
activity according to the proposed directions.
214 enterprises in the field of machinery and equipment production
5
are operating in the Republic of
Moldova (according to NBS data for 2009). For most of them, working conditions are poor, however,
demand for such products is not satisfied for the domestic market all the more speaking about
comparative advantage for export, in case of resources investments in the renovation of technical basis of
activity and applied technologies.

On the whole, the current activity of these enterprises cannot be characterized as productive:
- In the enterprise abt. 23 employees low number of capacities, specific to an enterprise of such
dimension are working;
- Abt. 47% of them obtained profit in 2009; 604,8 thousand MDL of average profit belongs to each
enterprise demonstrates a non-productive sector;
Reasons lie in the lack of investments and a qualified management.
In this sense, conditions, created by the industrial park, will represent a pole of attraction for enterprises
in the field, thus, a source of identification of potential residents of the park being distinguished.
Creation of new enterprises (including subsidiary enterprises) on the basis of the existing staff and
attraction of new specialists represents an opportunity for local companies.
Industrial potential of the region also represents an attractive factor for foreign investors, for attraction
of which there is a need only for a stable normative framework, oriented in their favor and to obtain
related benefits for the region.
In case of the planned activity - machinery and equipment construction - the option of foreign
investors activity in terms of modern technologies which they can apply to the technical conditions is
observed.
For this direction, the opportunity to create an operational chain of cooperation between foreign and
local companies with the view to creating a closed cycle of production according to the following formula
is determined:


5
http://statbank.statistica.md/pxweb/Dialog/Saveshow.asp
Foreign companies

Local companies
Import of modern
technologies
Increase in activity
capacity
Domestic
market
Export
Assembly Finished product Production of parts
82
For this direction, with the District Council as well as with Local Public Authority, on the part of some
foreign investors, according to destination, the following companies were registered:
- From Japan for assembly of cables for machines;
- From Russia for assembly of transport means;
- From Italy for the purpose of metal working, production of pieces for agricultural equipment,
etc.
For other types of activity, mentioned in the optimum scenario, both local and foreign companies are
identified as potential residents.
5.4. Identification of the sources of finance.
The process of financing in the light of concept of the industrial park, provided by the law
6
refers to
creation of technical and production infrastructure of the industrial park.
The sources for their financing can be represented by:
- State budget or budget of administrative-territorial units;
- Co-financing (state budget, budgets of administrative territorial units, means of foreign donors,
means of regional development entities or means of economic entities).
According to the chosen optimum scenario and based on the current situation in the region and the
enterprise Falesti PSCM JSC, two options of attracting financial resources, necessary to create technical
and production infrastructure for the purpose of final creation of the industrial park were identified.
Option 1 implies that total or partial investor is STATE and/or Local Public Administration.
The action to choose this option is based on the provisions of the law on industrial parks
7
. The table
below identifies a number of methods, on the basis of which, the given option of financing can be
implemented.
Table 36. Methods of financing of the Industrial Park in the light of the investor State and/or
Local public administration.
Investor Source and method of obtaining
STATE
CPA State budget - exclusive
CPA
Foreign financing Borrowings, Investment funds,
Transboundary projects, etc.
Co-financing:
a. CPA LPA

b. CPA State as majority
shareholder of Falesti PSCM
JSC

c. CPA State as majority
shareholder of Falesti PSCM
JSC
d. parks residents (after their
selection)

a. from state budget and budget of local public
administration - exclusive

b. from state budget or by means of foreign financing and
sales of current assets of the plant:
- dwelling houses;
- a part from areas of some production investors with
conditions, established by them, to obtain the title of the
parks resident.

c. item b. and own financial resources of economic entities
resident enterprises of the park after joint creation of
optimum technical and production infrastructure.

6
Law No. 182 of 15.07.2010 on industrial parks.
7
Law No. 182 of 15.07.2010 on industrial parks.
83
Choice of the given option for financing technical and production infrastructure in order to create the
industrial park implies further advantages, offered by the state, in terms of added value, entailed by the
future operation of the park: development of entrepreneurial activity, increase in industrial production,
reduction of unemployment, improvement of populations well-being, increase in revenues to budget of
local public authority, decrease in financial dependence on the central public authority, etc.
Moreover, creation of a normative framework, advantageous for the entrepreneurial class, and the states
activity to invest in creation of such conditions will represent an additional guarantee for economic
entities (local and foreign) and obtaining the final result of entrepreneurial process acceleration.
Option 2 implies involvement of financial resources of the PRIVATE INVESTOR.
In case of lack of financial capacity of the State to invest in creation of the industrial park, the variant of
attraction of local or foreign private investor is being studied. The method to attract foreign investor
consists in selling Falesti PSCM JSC on the basis of investment competition or on the basis of Public-
Private Partnership and with reference to further conditions by the Public Property Agency (majority
stakeholder) of creation of the Industrial park on the basis of provision the plant with real estate
technical equipment. Peculiarities of investment sources and attraction process implementation is
presented in the table below.
Table 37. Methods of financing of the Industrial Park in the light of the private investor.
Investor Source and methods of obtaining
Private investor
Private economic entity Own resources of the investor
Private economic entity public
partner
On the basis of Private Public Partnership implying
attraction of own resources of the private investor
and a part of expenses, being supported by state
budget.
One of the forms of implementation of this source of
finance is:
- Subcontract;
- Fiduciary management agreement.;
- Lease agreement;
- Concession agreement;
- Civil society agreement.
Co-financing:
Private economic entity (entitled to
operate the parks activity) parks
residents (after their selection)

own resources of the private investor and own
resources of economic entities resident enterprises
of the park after joint creation of optimum technical
and production infrastructure.

Option 3 implies application of the synergy effect in order to compile resources, available with those 3
actors, involved in the analysis: Falesti PSCM JSC, PRIVATE and LOCAL PUBLIC AUTHORITY.
Another variant lies in the accumulation of material efforts of Falesti PSCM JSC and of a foreign investor
with indirect involvement of Local Public Authority in the light of the land, on which the Plant is located
and which is at the balance sheet of the mayors office of Falestii Noi village. The scenario lies in the
creation of an enterprise, within which the following participants will make its contributions in the
structure of authorized capital, expressed by:
- Falesti PSCM JSC existing assets;
- Private investor financial means, necessary for implementation of technical and production
infrastructure to start carrying out activity of the Industrial Park.
Participation of the Local Public Authority will aim at the area of 13.2 ha, on which the Plant is located,
while the relation of the LPA regarding the Managing Enterprise of the park is presented to be one of
cooperation referring to lease or gratuitous use of the land in order to efficiently carry out further
activity. With the view to determining the optimum scenario of identification of investment resources, it
is necessary to compare them in terms of advantages and disadvantages regarding the concept of the
industrial park as well as the method of carrying out its further activity. Thus, the table below provides
for these reference points.
84
Table 38. Comparison of options of identification of funding sources for the industrial park.
Option 1 Option 2 Option 3
Advantages Disadvantages Advantages Disadvantages Advantages Disadvantages
- Possibility to decide on the
creation of the industrial
park within the shortest
periods o time;
- Direct interest of the state
and/or LPA in development of
the industrial park;
- Budgetary austerity;
- The decision-making
process is bureaucratized;
-
- Dependence on political
fluctuations;
- Involvement of the state
and/or LPA can generate a
reticence on the part of
potential residents; ]
- Freedom of action, which
the private investor may have;
- Capacity to identify and
access financial resources for
full coverage of investment
cost;
- Possibility to make
decisions within the shortest
periods of time;
- Possibility to benefit and
use goods in public property.
- Risk of failure to sell
shares of Falesti PSCM
JSC;
- Long-term period,
necessary for organization
and carrying out
investment competition;
- Reticence of potential
investors regarding the risk
of their contract to be
declared void if they do not
observe the established
conditions;
- Bureaucratic obstacles
which might be faced by the
investor when making
decisions, which also
involve will of LPA or state
(by subordinate ministry)
- Accumulation of two
sources of finance, reducing
financial burden for each of
those two investors;
- Participation of Falesti
PSCM JSC along with a private
investor would generate LPAs
interest to grant the area of
13,2 ha by lease or in
gratuitous use, thus producing
revenues to local budget;
- Possibility to use the land
without using major
investments for its
procurement;
- A part of the existing assets
can be adjusted to the needs
while useless ones can be sold,
and the obtained sources can
be used for development;
- Obtaining of favorable
economic results resulting
from carrying out of activities
of the parks administration
with further orientation of the
Managing Enterprise to
become the resident of the
park as well.
- Partial dependence of
financial and decisional
nature;
- Dependence on
bureaucratic factor as regards
privatization of the land at
normative price and/or
transfer in gratuitous use of
other goods in public property
(which is, however,
moderated by LPAs interest
in the development of the
industrial park).

The comparative analysis of those 3 options of financing of technical and production infrastructure with the view to creating the Industrial Park demonstrates
viability of the III option. Main reasons consisted in availability of capacities, mentioned by each participant, in formation of investment capital for the creation of
the Industrial Park and advantages, involved by actions of each participant in the financing formula.
85
5.5. Organization of the industrial parks activity
According to the concept of the industrial park, management of its activity must be carried out by an
enterprise with administrative functions of the park and namely
8
:
to coordinate and monitor the process of technical and production infrastructure creation as well
as production activity of industrial park;
to organize competition of selecting residents of the industrial park;
to develop and promote strategies and programs of industrial parks development;
to attract investors for development of activities of production and service rendering within the
industrial park;
to ensure normal functioning of utilities networks according to technical requirements;
to develop technical and production infrastructure in compliance with technological needs;
to supervise observance of the provisions of agreements, concluded with the residents of the
industrial park;
to cooperate with specialized central bodies of public administration and local public
administration authorities;
to be responsible for efficient use and according to the destination of resources, allocated from the
state budget or budgets of administrative territorial units for creation of technical and production
infrastructure.
Within the conceptual approach of the industrial park, it is necessary to provide a wide range of services
in the organization of the management of the Industrial Enterprise. For the chosen direction of
development, it is proposed to divide services in two categories:
1. centralized services (main) a minimum number of services necessary for good functioning of
the park;
2. extension services (additional) offered for members of the industrial park fore the purpose of a
more efficient implementation of own business, taking into account benefits of the industrial park
location.
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 39. Identification of services, provided by the Managing Enterprise.
Service Relevance for the Managing enterprise Relevance for resident enterprises
Main services
Provision of utilities and communications
infrastructure
Possibility to offer prepared and
unprepared areas (as appropriate)
with the whole utilities infrastructure.
Guarantee of conditions for immediate
launch of production activities.

Complex provision of industrial production,
storage and administrative areas
Ensuring of participants (resident
enterprises) attraction in the
industrial park.
Ensuring of all the conditions for
launching production operating
activities.
Preparation of production spaces according
to preferences of potential residents
Acquisition of additional income from
execution of works for area
preparation.
Possibility to carry out production
activity according to the conditions
imposed by the Resident enterprise
and peculiarities of the production
process.
Sublease of lands with engineering, technical
and communications infrastructure for
independent construction or together with
participating enterprises of production areas
Flexible arrangements of
implementation of investment process
in the creation of production
infrastructure of the park.
More flexible arrangements of
financing own activities in the
industrial park and possibility to
acquire the right of industrial property
within the industrial park.
Arrangement of territory and partial or total
space (repair services, etc.)
Acquisition of incomes from the parks
administration as a source from
Benefits from business service
according to modern standards.

8
Law No. 182 of 15.07.2010 on industrial parks, art. (18), par.(2).
86
exploitation of a trade and real estate
object.
Electric power supply up to the entrance into
the production building itself
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.
Heating
Cold and hot water supply
Telecommunications services
Air-conditioning
Maintenance of common zones, solid wastes
management
Fire protection
Guard and security system
Telecommunications and IT services
Acquisition of incomes from the parks
administration as a source from
exploitation of a trade and real estate
object.
Provision of modern information
standards and telecommunication
services.
Parking areas for motor cars and heavy
trucks
Ensuring modern conditions for
complying entrepreneurial
requirements.
Provision of health care services (first-aid
station)
Higher level of maintenance of the
industrial parks participants
Improvement of the quality of working
conditions of the staff
Additional services
Consulting services
Additional sources of income on
account of expansion of the sphere of
services provided to the parks
residents, as well as to organization
from the region.
Provision with the additional
conditions for business development
from enjoying qualified services.
Staff recruitment, organization of specialized
training sessions
Assistance regarding safety measures
Legal consulting
Technical, technological consulting,
organization of specialized training sessions
Production standardization
Marketing consulting, market study
Financial consulting, book-keeping
Customs brokerage consulting
Assistance in activity carrying out
Services of business assistance (secretary,
conference hall)
Transport services, catering services
It is proposed that the range of additional services, included in the parks administration management to
be as broad as possible due to the supporting concept, which the Managing enterprise must realize in its
relations with the park's resident enterprises.
According to the concept on provision of comprehensive package of main and additional services, there
are many approaches able to implement the planned functions of the Managing enterprise.
The full range of functions can be implemented directly within the structural units of the Management
enterprise, but also the possibility to provide certain services, based on third outsourcing companies.
Conceptually, organizational structure of administrative company must be formed on a linear basis. The
management structure of the industrial park is formed according to legal form and Articles of Association.
In general, it does not matter what legal organizational form the company, which will manage the
industrial park, has as long as its activity does not exceed legal limits. Thus, the Managing enterprise may
be organized in various forms: JSC, LLC, Civil Society, etc.
Key parties of the Managing enterprise can be represented by: see figure below.
87
Option 1.
Figure 26. Integrated organizational chart of the Managing enterprise.

Option 2.
Figure 27. Elementary organization of the Managing enterprise.

All structure units are closely related, their efficient functioning will depend on the detailed study of
functional responsibilities of specialists, provided by orders, regulations, standards of structural
individual units of the managing enterprise.
Managing Enterprise will be created by means of contribution of those influential factors: Falesti JSC and
of foreign investor according to the identified source of finance of technical and production infrastructure
- secretariat:
- legal department, etc.
- production infrastructure creation handling;
- accounting, etc.
Industrial parks administration
Management council (supervision)
Director
Foreign relations department
Real estate operations
department
Marketing department
Consulting department:
legal, technical, marketing,
financial, transport, etc.
Department of transport
services provision
Department of maintenance
of related infrastructure:
healthcare services, parking,
etc.
Energetic department
Real estate maintenance
department
Department of maintainance
of telecommunications
services and IT solutions.
Accounting department
Marketing department
Department of economic
analysis and financial
planning
Department of development
of relations between
resident companies (lease
and sales real estate
management)
Guard and security
department
Planning & organization
department of managing enterprise
Additional operations and services
department
Basic operations and services
department
Administration of managing
enterprise
88
for creation of the Industrial Park. Under these conditions, relations within the park, as well as
possibilities appeared for the Managing Enterprise are presented further.
Figure 28. Relations, created within the Park, in the light of activity organization.


Organization of the activity is based on management mechanisms of the Managing Enterprise which has
the obligation to facilitate the current activity of resident enterprises, thus optimum conditions for
establishing partnership and linear cooperation relations between resident enterprises are also created.
According to the option 3 of identification of resources of financing of the industrial park, established as
optimum, technical and production infrastructure of the industrial park will be implemented by means of
contribution of those two factors of influence: Falesti PSCM JSC and private investor.
It is necessary to take into account that the land, on which it is proposed to create the industrial park,
belongs to the Local Public Authority mayors office of Falestii Noi village, the reason for which it will be
led to the creation of relations between Managing Enterprise and LPA in order to have the opportunity to
continue the activity on the territory of 13,2 ha, which belongs to the mayors office of Falestii Noi vil. In
this sense, one of the solutions consists in lease of the land or gratuitous use relations by the mayors
office of Falestii Noi vil. towards the Managing Enterprise of the industrial park. At the same time, the
corresponding land has a certain grade of technical and production equipping. Therefore, we cannot
speak about creation of the industrial park completely at the expense of the private investor. At the same
time, facilities on the land, on which it is proposed to create the industrial park, belong to Falesti PSCM
JSC.
The most appropriate solution would be creation of the industrial park, whose administrator will be an
Enterprise with legal organizational form of a Limited Liability Company, while sources of finance for
development of technical and production infrastructure must serve those, presented in the option 3 of
identification of investment resources.
As a result of identifying the optimum scenario of development of the industrial park (in terms of specialization),
possible resources of financing of technical and production infrastructure as well as after defining options of
organization of the Managing Enterprise, types of services and relations with potential residents of the park the
following optimum variant of the parks activity has been established:
- selection of a source of finance according to the option 3;
- creation of a new enterprise such as Managing Enterprise by material participation of Falesti PSCM JSC
and of a private investor;
- identification of a real resident - Mauro Giovetti, G.P.I. LLC, Italy;
Rezident 1
Rezident 2 ..
Rezident n
Managing
Enterprise
Investor Falesti SEP JSC and private investor

Foundation of
III. Managing Enterprise
has two options
Industrial Park management
Carrying out of operating activity by
obtaining title of resident of the Park
Operation of relations
between members of the
Industrial Park
89
Potential resident and potential
participant in co-financing creation of
technical and production infrastructure
of the Industrial Park.
T
y
p
e
s

o
f

a
c
t
i
v
i
t
y

C
o
n
t
r
i
b
u
t
i
o
n

C
o
n
t
r
i
b
u
t
i
o
n

C
o
n
t
r
i
b
u
t
i
o
n

F
u
n
d
i
n
g

- orientation of the parks activity to industrial production activity with additional services and inclusion
of activity of a Business Incubator;
In order to create the Business Incubator, the Industrial Park will provide working areas equipped with necessary
technical infrastructure as well as a complete package of services and common facilities for economic entities in the
field of Small and Medium Enterprises. These directions of the parks activity are based on the reasons, such as:
reduction of migration of young labor force from the field of industrial production, stimulation of business start and
reduction of unemployment and ensuring professional training continuity.
A viable model for organization of the industrial parks activity is demonstrated in the following figure.
Figure 29. Model of organization of the industrial parks activity.

According to this type of organization, technical and production infrastructure of the industrial park can
be used according to the scheme below.
Managing Enterprise of the
industrial park
Resident 1
..

Resident n

Business Incubator
Lease

Consulting

Falesti SEP JSC
leti
Local Public Authority Private Investor
Lease or gratuitoue
use of the land with
area of 13.2 ha

Production assets

Financial means

G.P.I LLC
Mauro Giovetti
Interested in Forge / Foundry; 5000-
7000 m
2
production area; storage area
90
Scheme 5. Organization of technical and production infrastructure of the industrial park.
etc

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: (see the table below).
Table 40. Legal action plant with the view to creating and organizing the industrial parks activity.
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
Falesti PSCM JSC shareholders in
order to adopt the decision on priority
directions of development.
May, 2011
General Director of
Falesti PSCM JSC
Agenda of the General Meeting with
attached materials.
Convening the general meeting of
Falesti PSCM JSC shareholders in
order to adopt the decision on priority
directions of development. Adoption of
the GMS decision, including internal
reorganization of the company and
creation of the industrial park.
May, 2011
General Director of
Falesti PSCM JSC
GMS decision on the adoption of new
development priorities by creating
industrial park.
Making public the decision to all
stakeholders, including local public
authorities.
May, 2011
General Director of
Falesti PSCM JSC
Information provided by stakeholders,
including that published in the media.

Initiation of internal reorganization of
the company.
May-June,
2011
General Director,
Lawyer of
Falesti PSCM JSC
Implemented reorganization.
Foundation of joint venture, with
participation of Falesti PSCM JSC and
private investor
May, 2011
General Director of
Falesti PSCM JSC, foreign
investor
Created enterprise.
Storehouse
A UMS
Fleti
New production
department
Boiler
room
A UMS
Fleti
New administrative
department
Truck parking
A UMS Fleti
New production department
meant for abt. 2000 sq for
business incubator
Administrative areas for lease
Production areas for lease Shop
1 (with possibility to be remained
in the use of Falesti SEP JSC)
Production areas for lease
Shop 2. Repaired and
reconstructed in II levels
Production department
Mechanic department
oriented to the use by Italian
investor who, as a result, will
be the resident of the park.
91
Preparing materials necessary for
creation of the park and submission to
the Local Council.
June, 2011
Director of newly-created
joint venture
Copies of the GMS decision, of
documents of acts confirming land
ownership, of excerpts from the TCO.
Filing with the Local Council the
application on creation of the
industrial park and lease of the
corresponding land (Falesti PSCM
JSC)
June, 2011
joint venture
The application and related materials
filed with the Local Council.
Approval of the decision on creation of
the industrial park, lease and
establishment of the Committee for
creation and operation of the industrial
park.
July, 2011 Local Council
Decision of the Local Council to
approve the application and create the
Committee adopted and published in
the local media.
Signing the land lease contract
July, 2011
joint venture and Mayor of
Falesti municipality.
Land lease contract signed,
authenticated by notary and registered
with Falesti TCO.
Establishment of the Committee for
creation of the industrial park.

July, 2011 Mayor of the locality
Order of establishing the Committee
and creation of the Committee
Preparation of materials necessary for
presenting to the Ministry of Economy

July, 2011
joint venture
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
destination of the land or authorization
for construction of the object;
g) approval of the local council under
whose jurisdiction the land for
industrial park is;
h) feasibility study on creation of the
industrial park

Submitting to the Ministry of Economy,
the application for obtaining the title of
industrial park.
August,
2011
joint venture
Application filed and registered with
the ME with materials described above.
Obtaining the title of industrial park. October,
2011
Ministry of Economy
Title of the industrial park.
Block II. Activity planning and establishing cooperation relationship
Development of the activity plan.
June, 2011
Industrial Parks
administrator
Developed plan
Adoption of the activity plan by the
Company Board
June, 2011 Company Board
Adopted plan.
Filing requests with the Local Council
on participation of local public
authority in creation of the industrial
park.

July, 2011
Industrial Parks
administrator
Application registered and approved.
Development and signing of the
Agreement of Local public partnership
(if they choose to create the park on
PPP principles).
Septembe
r -
October,
2011
Lawyer, Industrial Parks
administrator
Signed agreements.
Development of procedures of park
activity and principles of cooperation
Septembe
r -
Lawyer, department
heads, Industrial Parks
Developed and adopted procedures
textbook.
92
with park residents. October,
2011
administrator
Drawing up contracts for collaboration
with residents.
June, 2011 Lawyer
Models of drawn up contracts.
Signing contracts with residents October,
2011-
permanen
t
Industrial Parks
administrator
Signed contracts
The schematic presentation of the legal action plan is given below.
93
Table 41. Schematic presentation of the legal action plan.

M
a
y

J
u
n
e

J
u
l
y

A
u
g
u
s
t

S
e
p
t
e
m
b
e
r

O
c
t
o
b
e
r

2011
Block I
Development, of study-based informative materials in order to submit them to the general meeting of Falesti PSCM JSC shareholders in
order to adopt the decision on priority directions of development.

Convening the general meeting of Falesti PSCM JSC shareholders in order to adopt the decision on priority directions of development.
Adoption of the GMS decision, including internal reorganization of the company and creation of the industrial park.

Making public the decision to all stakeholders, including local public authorities.
Initiation of internal reorganization of the company.

Foundation of joint venture , with participation of Falesti PSCM JSC and private investor
Preparing materials necessary for creation of the park and submission to the Local Council.
Filing application and attached materials with Local Council on creation of the park
Approval of the application, issuance of the decision of establishment of the Committee for creation and operation of the industrial park.
Signing the land lease contract
Establishment of the Committee for creation of the industrial park.
Preparation of materials necessary for presenting to the Ministry of Economy
Submitting to the Ministry of Economy, the application for obtaining the title of industrial park.
Obtaining the title of industrial park.
Block II
Foundation of a limited liability company
Development of contract schemes of cooperation relations between founder and newly-created LLC
Selection and approval of nominal component of LLC managers.
Development of managers tasks.
Block III
Development of the activity plan.
Adoption of the activity plan by the Company Board.
Filing requests with the Local Council on participation of local public authorities in creation of the industrial park according to the art.7 of
the Law on industrial parks.

Development and signing of Local Public Partnership Agreement
Development of procedures of parks activity and principles of cooperation with residents.
Drawing up contracts for cooperation with residents.
Signing contracts with residents
94
6.2. Operational action plan.

Activities necessary to rehabilitate constructions and objects belonging to "Falesti PSCM" JSC:
1. Development of necessary according to 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 (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 town planning certificate - TPC (5 necessary preliminary documents , including TER, art.
3, 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. Approval of design documentation by the citys Chief Architect (art. 11, p.a., Law RM on authorization
of execution of construction works No.163 from 09.07.2010);
8. Verification of design documentation by project inspectors accredited or by institutions authorized in
this field (Government Decision RM no.361 from 25.06.96 on construction quality assurance) - the
designer is responsible for submitting the technical design for verification (of the annex no. 1 from
Government Decision RM no.361 from 25.06.96 on construction quality assurance);
9. 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);
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. Registration of the 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 no.361 from 25.06.96 on
construction quality assurance);
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 no.285 from 23.05.1996 on receiving the approval of
construction and installations).

All these activities can be grouped into the following main stages with respective terms Table 42. Action
Plan for rehabilitation of enterprise's infrastructure and constructions.
95
Table 42. Action plan for rehabilitation of the Managing Enterprise's constructions and
infrastructure
No. Activities
Months
3 6 9 12 15 18 21 24
1
Development of (pre-) feasibility study including
determination of economic effects (1-2)
2
Performance of technical expertise and obtaining documents
and agreements necessary for designing (3-5)
3
Designing, prospecting works, copyright control, its expertise
and obtaining necessary approvals (6-12)
4
Performance of the construction and assembly works (13-
15), of which:
4.1 Repairs of production shops
4.2 Building new objects
4.3 Building external networks
4.4 - Building roads and parking areas
5 Acceptance of completed works and drawing up documents
Information and promotion actions.
Creation of 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, its fields of activity, benefits for
resident companies, participation conditions for new enterprises, 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 at different 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, etc.) both in Moldova and
at international (branch) exhibitions;
Development of basic principles for the industrial park participants (type of activity,
requirements towards the participant, etc..);
Direct information delivery to enterprises, which could be included in the park.
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
enterprises and in case of the need to attract new residents with specific parameters.

7. INVESTMENT AND FINANCIAL DIAGNOSIS
7.1. Estimation of the necessary volume of investments.
In order to create the industrial park according to the concept, established by the legislation in force, it is
necessary to have an optimum technical and production infrastructure. As a result of study of the current
situation in the region and within the enterprise itself on the basis of which creation of the industrial park
is analyzed, premises do not allow implementing the project idea. In this sense, the need to allocate
investment resources for situation rehabilitation was identified.
96
At the same time, investment resources, which will be allocated for creation of the industrial park, must
also generate incomes to ensure the term of recovery of the investment by obtaining added value.
The data, presented in the chapter 2 of the study, reveal that Falesti PSCM JSC has a wide range of real
estate and equipment in a bad or deplorable state.
Based on the premises, according to which out of total area of the enterprise of 13.2 ha, constructions
represent an area of about 8,0 ha, including access alleys and railroad with outside storage, their
distribution refer to:
a. Active main production shop 11 907 m2,
b. Unfinished main production shop 22 491 m2,
c. Forge and foundry 3 872 m2,
d. Storehouse for finished products 1 803 m2,
e. Emergency administrative block 1 130 m2,
f. Unfinished canteen 1 583 m2,
g. Unfinished storehouse 432 m2.
h. Garage 453 m2.
In order to identify the necessary investments, first of all, the nature of works which will be necessary to
be executed, was established (see Scheme 5):
As a result, necessary investments for improving the situation at the enterprise can be divided into four
categories:
Investments for complete repair works;
Investments for building networks;
Investments for roads and parking areas;
Investments for new objects.
According to the above listed categories, it is necessary to assess the following works with the
corresponding number:
Works of complete repair in active areas 17 565 m2;
Works of complete repair in inactive areas 22 491 m2(2 levels);
Roads and parking areas - 15 000 m2;
External networks:
o water supply 2,2 km;
o sewage 1,8 km;
o natural gas 1,5 km;
o electric 2,5 km.
New objects:
o Administrative department 1 500 m2(building with 3 levels of 500 m2 each);
o Storehouses and production spaces - 12 500 m2;
o Boiler room 500 m2.
Investments in creation of technical and production infrastructure in order to create the Industrial Park
amount to 321 272 000 MDL.
Table 43. Assessed value of general construction works and internal and external networks to be
executed for rehabilitation of the production process of the enterprise Falesti PSCM JSC.
No. Name of the object Area Cost
Total,
thousand
MDL
1 Complete repair works in active areas 17 565
Construction works 1 920 33 724,80

Networks 1 120 19 672,80

Total costs 3 040 53 397,60
97
2 Complete repair works in inactive areas 22 491


Networks 1 072 24 110,35

Total costs 4 950 111 330,45
3
Constructions that need demolition 3 613


Total costs 1 440 5 202,72
4
New constructions offices, with conference hall and canteen 1 500


Networks 1 616 2 424,00

Total costs 8 501 12 751,50
5 New constructions boiler room, storehouses and production areas 13 000


Networks 1 016 13 208,00

Total costs 8 001 104 013,00
6
Construction of external water supply, sewage, gas supply, electricity
networks in the main connection points.

Water network construction, km 2,20 280 616,000

Sewage network construction, km 1,80 220 396,000

Gas supply network construction, km 1,50 280 420,000

Complete repair of electricity network, km 2,50 145 362,500

Total costs 1 794,500
7
Roads and parking areas 15 000

Implementation of road pavement, including additional works 0,55

Total costs 0,55 8 250,00
TOTAL PER OBJECTIVE 296 740

of which:

Total construction works per objective 227 280,12

Total roads and parking areas 8 250,00

Total internal networks per objective 59 415,15

Total external networks per objective 1 794,500

Total other works according to the estimate 24 532
Overall construction estimate is presented in the Annex 1.
As regards identification of sources of finance, at the stage of determination of structure of investments
necessary for creation of the industrial park, they were distinguished only by the destination source
own or attracted.
Table 44. Investment structure.
Investment articles
Area,
sq.m.
Total
investments
Resources
Own Attracted
MDL MDL MDL
Complete repair works in active areas: 17 565 53 397 600 53 397 600
construction works 33 724 800 33 724 800
networks 19 672 800 19 672 800
Complete repair works in inactive areas 22 491 111 330 450 111 330 450
construction works in two 87 220 100 87 220 100
98
networks
levels
24 110 350 24 110 350
Constructions that need demolition 3 613 5 202 720 5 202 720
New constructions offices, with conference hall and
canteen
1 500 12 751 500 12 751 500
networks 2 424 000 2 424 000
New constructions boiler room, storehouses and
production areas
13 000 104 013 000 104 013 000
networks 13 208 000 13 208 000
Construction of external water supply, sewage, gas supply,
electricity networks in the main connection points.
1 794 500 1 794 500
Roads and parking areas 15 000 8 250 000 8 250 000
Other costs according to the estimate 24 532 230 24 532 230
Total, sum 73 169 321 272 000 MDL 24 532 230 MDL 296 739 770 MDL
Total, % 100% 8% 92%
Placement of financial resources for investing in development of industrial production represents a
strategic point of economic growth in the whole country. By starting profitable activity of an Industrial
Park it will directly contribute to the formation of an industrial sector in economy of the country capable
to become a sustainable segment of gross domestic product by developing production, oriented to export
mostly. At the same time, these investments need to be supported by additional costs in creating internal
and external utilities of the industrial park.
The analysis of cumulative costs, related to execution of these works on improvement of the condition of
buildings and constructions was made taking into account those, mentioned above (see the table above).
A large part of investment costs were directed at demolishing constructions in deplorable state and
construction of new buildings with administrative, production, storage destination as well as parking
areas, internal roads, boiler room, etc.
At the same time, creation of utilities is a component, required by the legislation in force regarding
creation of industrial parks, the component which provides for a limited contribution on the part of
government authorities to corresponding investment budgets for the region or the field. Creation of
internal and external road networks of the park, or better to say their renovation, creation of a water
supply and sewage system, as well as of a disposal plant represent urgently needed premises for the
industrial parks activity since attraction of strategic investments both for the parks administrator and
for the entire region or economic area of activity is a condition much more than necessary in the context
of creating the industrial park.
99
7.2. Financial plan.
7.2.1. Forecast of incomes of the Managing enterprise
The optimum scenario, chosen for development of the Industrial Park implies direct effects on the Managing enterprise by registering incomes from types of
delimited services provided by the same optimum option of activity.
Consequently, as a result of project implementation and launching of the Industrial Parks activity, main sources of incomes of the Managing Enterprise refer to:
1. Registration of incomes from lease of production, storage, parking areas, etc.;
2. Registration of incomes from rendering additional services: consulting, etc.
As for the activity, oriented to the lease of production areas, forecast of related incomes was made, taking into account the possibility of granting facilities,
provided by p. e), art. (1) of the Law No. 182 of 15.07.2010 on industrial parks. In this sense, the price for renting those three types of areas, mentioned above,
was initially calculated according to the Law of state budget for 2010, No. 133 XVIII din 23.12.2009, Annex 8 with further application of a reduction coefficient
of up to 30% (see table below. Annex 3). Application of reduction coefficient of up to 30% according to the item (e) of the Law No. 182 of 15.05.2010 on industrial
parks implies, eventually, a pessimistic approach of financial forecast of the industrial parks activity. In case of non-application, financial results will register
considerably high values.
Type of activity Area, m2 Pai = Tb x (1
+ K1 + K2 +
K3) x K4 + S,
Tb K1 K2 K3 K4 S Applied reduction according
to the legislation
I. Production, storage, parking: 88 047 m2
Production, storage 82 675 m2 480
MDL/m2
127,40 0,45 0,50 0,56 1,50 1,00 25%
Forge and foundry 3 872 m2 489
MDL/m2
127,40 0,50 0,50 0,56 1,50 1,00 25%
Roads and parking 1 500 m2 489
MDL/m2
127,40 0,50 0,50 0,56 1,50 1,00 25%
II. Administrative area 1 500 m2 669 MDL
127,40 0,50 0,50 1,50 1,50 1,00
30%
Out of total area of the space, directed at carrying out operating activities of the park (see Annex 1) for the lease, abt. 8 047 m
2
of production area, including
storage and administrative areas will be oriented to creation of the Business Incubator on the territory of the Park. As regards lease of spaces, the
activity of the Managing Enterprise is divided into categories:
a) Production, storage areas representing incorporated or attached buildings 82 675 m2;
100
b) Production areas separate buildings 3 872 m2;
c) Parking roads - separate buildings 1 500 m
2
;
d) Administrative area 1 500 m
2
;
As a result, value, structure of forecasted incomes from the activity of the industrial park are presented in the table below..
Table 45. Incomes, forecasted for the Managing Enterprise, thousand MDL (VAT including).
I an II an III an IV an V an VI an VII an VIII an IX an X an XI an XII an
1. Venituri din prestarea serviciilor de baz
Locaiunea spaiilor de: 31 713 031 33 298 683 34 963 617 36 711 798 38 547 388 40 474 757 42 498 495 44 623 420 46 854 591 49 197 320 51 657 186 54 240 045
Producere, depozitare 29 741 980 31 229 079 32 790 533 34 430 059 36 151 562 37 959 141 39 857 098 41 849 952 43 942 450 46 139 573 48 446 551 50 868 879
Forjeria i turntoria 1 420 683 1 491 717 1 566 303 1 644 618 1 726 849 1 813 192 1 903 851 1 999 044 2 098 996 2 203 946 2 314 143 2 429 851
Drumuri i parcare 550 368 577 886 606 781 637 120 668 976 702 425 737 546 774 423 813 144 853 801 896 491 941 316
Locaiunea spaiilor administrative 702 293 737 407 774 277 812 991 853 641 896 323 941 139 988 196 1 037 606 1 089 486 1 143 960 1 201 159
subtotal 32 415 324 34 036 090 35 737 894 37 524 789 39 401 028 41 371 080 43 439 634 45 611 616 47 892 196 50 286 806 52 801 147 55 441 204
2. Venituri din prestarea serviciilor suplimentare
Asisten / Consultan 760 000 798 000 837 900 879 795 923 785 969 974 1 018 473 1 069 396 1 122 866 1 179 009 1 237 960 1 299 858
subtotal 760 000 798 000 837 900 879 795 923 785 969 974 1 018 473 1 069 396 1 122 866 1 179 009 1 237 960 1 299 858
Total Venituri Operaionale 33 175 324 34 834 090 36 575 794 38 404 584 40 324 813 42 341 054 44 458 107 46 681 012 49 015 063 51 465 816 54 039 106 56 741 062

XIII an XIV an XV an XVI an XVII an XVIII an XIX an XX an XXI an XXII an XXIII an XXIV an XXV an
1. Venituri din prestarea serviciilor de baz
Locaiunea spaiilor de: 56 952 048 59 799 650 62 789 632 65 929 114 69 225 570 72 686 848 76 321 191 80 137 250 84 144 113 88 351 318 92 768 884 97 407 329 102 277 695
Producere, depozitare 53 412 323 56 082 939 58 887 086 61 831 440 64 923 012 68 169 163 71 577 621 75 156 502 78 914 327 82 860 043 87 003 045 91 353 198 95 920 858
Forjeria i turntoria 2 551 343 2 678 910 2 812 856 2 953 498 3 101 173 3 256 232 3 419 044 3 589 996 3 769 496 3 957 970 4 155 869 4 363 662 4 581 846
Drumuri i parcare 988 382 1 037 801 1 089 691 1 144 176 1 201 384 1 261 454 1 324 526 1 390 753 1 460 290 1 533 305 1 609 970 1 690 468 1 774 992
Locaiunea spaiilor administrative 1 261 216 1 324 277 1 390 491 1 460 016 1 533 016 1 609 667 1 690 151 1 774 658 1 863 391 1 956 561 2 054 389 2 157 108 2 264 964
subtotal 58 213 264 61 123 927 64 180 124 67 389 130 70 758 586 74 296 516 78 011 341 81 911 908 86 007 504 90 307 879 94 823 273 99 564 437 104 542 658
2. Venituri din prestarea serviciilor suplimentare
Asisten / Consultan 1 364 851 1 433 093 1 504 748 1 579 985 1 658 985 1 741 934 1 829 031 1 920 482 2 016 506 2 117 332 2 223 198 2 334 358 2 451 076
subtotal 1 364 851 1 433 093 1 504 748 1 579 985 1 658 985 1 741 934 1 829 031 1 920 482 2 016 506 2 117 332 2 223 198 2 334 358 2 451 076
Total Venituri Operaionale 59 578 115 62 557 021 65 684 872 68 969 115 72 417 571 76 038 449 79 840 372 83 832 391 88 024 010 92 425 211 97 046 471 101 898 795 106 993 734


Incomes from rendering main services:
Incomes from rendering additional services
Lease of areas:
Production, storage
Forge and foundry
Roads and parking
Lease of administrative areas
Assistance/consulting
additional services
Total operating incomes
additional services
Incomes from rendering main services:
Incomes from rendering additional services
Lease of areas:
Production, storage
Forge and foundry
Roads and parking
Lease of administrative areas
Assistance/consulting
additional services
Total operating incomes
additional services
101
For the first year of activity, a 100% occupation level is forecasted, basing on the period of abt. 48 months
of investing in technical and production infrastructure a sufficient period for the Managing Enterprise
to identify and select resident enterprises.
Thus, at the end of the first year of activity, the lease of production buildings and activity-related areas
(warehouses, parking areas, etc. ) will register as an income source the amount of 32,42 millions MDL.
The last year of forecast reveals an increase by abt. 3 times or registering 104,50 millions MDL of sales.
2. Incomes from additional service (consulting) rendering.
Incomes from the Managing Enterprises consulting activity focus, as the customer category, mainly on
the industrial parks residents. These services are focused on technical consulting services, accounting
services, various legal services or others as well. A pessimistic forecast of these services would indicate a
sales volume of abt. 760 thousand MDL per year, which will reach the value of 2,5 millions MDL at the end
of 2014.

7.2.2. Forecast of expenses of the Managing enterprise.
The activity of the Managing enterprise is given by its specificity - the enterprise uses huge spaces for
leasing to the industrial park residents.
This aspect is crucial and involves a specific
assignment of expenses.
Leased available spaces are not liable for
additional expenses, the amount of expense is
calculated as accumulated physical and moral
wear. In this sense, buildings that are newly-built
or those repaired together with the existing
equipment have a service life of abt. 40 years,
which explains the fact that indirect
consumptions have the largest share of 86,6% of
total output (see annex 5).

Other expenses, supported by the enterprise, refer to expenses of promotion and attraction of new
residents, sums which annually amount to 80-258 thousand MDL, which would reflect a share of 0,7% of
their total.
Expenses, related to the administrative body represent the second largest component, although
compared with a share of 12,5%. The Managing Enterprise is an asset management enterprise and 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 78% are expenses for labor 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 the Managing Enterprise for the forecast period are marked by two main areas of
activity: lease of production areas and lease of related assets as well as provision of additional services,
mostly consulting services in various fields. In this regard, it should be mentioned that launching the
industrial parks activity according to the scenario, identified as optimum, will essentially contribute to an
obvious increase in net incomes and other financial results within the forecast period.

Data, presented in the figure below, reflect a favorable situation.

Indirect
Commercial
rect
Adm.
nnlre
ct
Other
102
Figure 30. Dynamics of the Managing enterprise's financial results.

As it is shown, the Managing Enterprises incomes have continuously increasing trend as compared to a more slow increase of registered costs. Therefore, net
income determines a stable and dynamic increase towards the end of the forecast period compared to the first year.
The data presented in the figure above shows that new investments made in the created industrial park will result in obtaining net sales with continually
growing trend. Taking into account that the activity of the Managing Enterprise is oriented to rendering services of available area lease, all expenses, related to
electricity consumption, staff and others are transmitted to people who rent. In this respect, the cost of sales includes current maintenance expenses of staff,
directly involved in the production process, or wear of fixed assets and equipment, which are directly granted under lease.
Finally, the net profit obtained by the enterprise, is experiencing a positive trend reaching the value of 15 millions MDL in the first forecast year and over 66
millions MDL in 25th forecast year.
In terms of factors influencing the net profit, the situation is the following.
Table 46. Forecast of financial results for the forecast period, thousand MDL.
Forecast period: Year I - XII
Breakdown of financial results year I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII
Gross Profit 18 482 19 826 21 238 22 721 24 278 25 913 27 629 29 431 31 323 33 310 35 397 37 587
Results from operating activity 17 093 18 369 19 708 21 114 22 590 24 140 25 768 27 477 29 272 31 156 33 135 35 212
Results from investment activity
Income from
sales
Sales cost
Net profit
103
Results from financial activity

Results of financial and economic activity
17 093 18 369 19 708 21 114 22 590 24 140 25 768 27 477 29 272 31 156 33 135 35 212
Income tax
1 709 1 837 1 971 2 111 2 259 2 414 2 577 2 748 2 927 3 116 3 313 3 521
Net profit 15 384 16 532 17 737 19 002 20 331 21 726 23 191 24 730 26 345 28 041 29 821 31 691
Forecast period: Year XIII - XXV
Breakdown financial results
year XIII year XIV year XV year XVI
year
XVII
year
XVIII year XIX year XX year XXI year XXII year XXIII year XXIV
year
XXV
Gross Profit 39 887 42 302 44 838 47 508 50 304 53 240 56 323 59 560 62 959 66 527 70 274 74 209 78 340
Results from operating activity 37 394 39 684 42 089 44 622 47 273 50 058 52 981 56 051 59 275 62 659 66 213 69 944 73 862
Results from investment activity
Results from financial activity

Results of financial and economic activity
37 394 39 684 42 089 44 622 47 273 50 058 52 981 56 051 59 275 62 659 66 213 69 944 73 862
Income tax
3 739 3 968 4 209 4 462 4 727 5 006 5 298 5 605 5 927 6 266 6 621 6 994 7 386
Net profit 33 654 35 716 37 880 40 159 42 546 45 052 47 683 50 446 53 347 56 393 59 591 62 950 66 476
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 times in the 25 years of
forecast activity.
The operating result of the Managing Enterprise, obviously increasing about 4 times during the forecast period, offers the possibility to cover any losses that may
result from differences in exchange rate - a factor that does not dependent on the enterprises management, but on the current situation of the Moldovan
economy and national currency instability.
An important factor with a less favorable effect is expenses on the income tax from the first forecast year. 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, whose
amounts are also reflected in the cash flow.

104
7.2.4. Forecast of cash flow.
The cash flow forecast for the period of those 25 forecast years shows a proper management of trade
receivables able to cover payments, related to forecast loan repayments.
The Table below is the summary of cash inflows and outflows.

The data presented in the table above reflect a situation favorable to the Managing Enterprises activity
generating sufficient liquid financial resources to cover its immediate payments. The previously outlined
data show that during the forecast period the enterprise will finance its activity from internal resources,
generated by its operating activity, as confirmed by the positive value of the cash flow from operating
activity of the enterprise during this period.
The specificity of funding consists in the fact that during investment period (abt. 24 months before
launching of the parks activity itself), investments in demolition of buildings in deplorable state, repairs
of buildings, construction of new buildings and related infrastructure will be made in proportion of 8% by
the Managing Enterprise.
For the second investment year, expenses, related to repair, construction of new buildings as well as
utilities infrastructure, are expected to be covered from external sources of finance, either being
attracting from international investment funds, or being obtained from external borrowings for
Government or Cross-border Projects. Meanwhile, attracted sources of finance are expected to be repaid
since the first year of activity of the industrial park.
Since the generated revenues are sufficient, while 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.
Thus, starting from the first forecast year of the activity itself, income tax payment was also taken into
account.
At the same time, in strict conformity with positive financial results of the enterprise, starting with the
first forecast year, the Enterprise intends to pay dividends amounting to 40% of the annually obtained
profit (for the pessimistic forecast variant), for which the investments, made by the chosen investor, will
be recovered within abt. 24,8 years. (reference to Annex 9).
Finally it is found that the Managing Enterprise of the industrial park will generate enough resources and
funds to cover all current needs, including distribution of dividends to its shareholders.
105
Table 47. Cash flow dynamics, thousand MDL.
Forecast period: Year I XII

year I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII
Operating Activity
1. Total cash earnings 31 517 34 751 36 447 42 154 40 229 42 240 44 352 46 570 48 898 51 343 53 910 56 606
earnings from sales 30 795 32 334 33 909 39 401 37 431 39 303 41 268 43 331 45 498 47 772 50 161 52 669
2. Total cash payments 722 758 796 924 878 921 968 1 016 1 067 1 120 1 176 1 235
- payments to suppliers and
contractors 9 108 9 876 10 402 11 612 11 564 12 181 12 832 13 514 14 233 14 988 15 781 16 615
- payment of income tax 1 069 1 116 1 168 1 227 1 289 1 350 1 418 1 486 1 562 1 642 1 726 1 815
Net flow from operating activity 1 709 1 837 1 971 2 111 2 259 2 414 2 577 2 748 2 927 3 116 3 313 3 521
Investment Activity 22 409 24 875 26 045 30 541 28 665 30 060 31 520 33 056 34 666 36 355 38 129 39 991
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 investment
activity
Financial Activity
- earnings from loans and credits
- earnings from the issue of own
shares
8. Total payments
payments on loans and credits 11 154 12 613 14 095 15 601 17 132 18 691 20 277 21 892 23 538 25 216 26 929 28 676
- dividend payment 5 000 6 000 7 000 8 000 9 000 10 000 11 000 12 000 13 000 14 000 15 000 16 000
9. Net flow from financial
activity 6 154 6 613 7 095 7 601 8 132 8 691 9 277 9 892 10 538 11 216 11 929 12 676
10. Total Net Flow ( 11 154) ( 12 613) ( 14 095) ( 15 601) ( 17 132) ( 18 691) ( 20 277) ( 21 892) ( 23 538) ( 25 216) ( 26 929) ( 28 676)
Exchange differences 11 255 12 262 11 950 14 940 11 533 11 369 11 244 11 164 11 128 11 139 11 201 11 315
Cash balance at the beginning of
the period
Cash balance at the end of the
period 11 255 23 517 35 467 50 407 61 940 73 309 84 553 95 717 106 844 117 983 129 184

106
Forecast period: Year XIII XXV

XIII year XIV year XV year XVI year XVII year
XVIII
year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
Operating Activity
1. Total cash earnings 62 408 65 528 68 805 72 245 75 857 79 650 83 633 87 814 92 205 96 815 101 656 106 739 62 408
earnings from sales 58 068 60 971 64 020 67 221 70 582 74 111 77 816 81 707 85 792 90 082 94 586 99 316 58 068
2. Total cash payments 1 361 1 430 1 501 1 576 1 655 1 738 1 824 1 916 2 011 2 112 2 218 2 329 1 361
- Payments to suppliers and
contractors 18 398 19 360 20 364 21 425 22 538 23 707 24 934 26 223 27 576 28 997 30 489 32 056 18 398
- payment of income tax 1 994 2 093 2 191 2 300 2 415 2 536 2 663 2 796 2 936 3 083 3 237 3 398 1 994
Net flows from operating
activity 3 968 4 209 4 462 4 727 5 006 5 298 5 605 5 927 6 266 6 621 6 994 7 386 3 968
Investment Activity 44 010 46 169 48 441 50 821 53 320 55 943 58 699 61 591 64 629 67 818 71 167 74 683 44 010
- earnings from the output of
long-term assets
5. Total cash payments
- payments for purchase of
long-term assets
6. Net flow from investment
activity
Financial Activity
- earnings from loans and
credits
- earnings from the issue of
own shares
8. Total payments
payments on loans and
credits 32 286 34 152 36 064 42 018 48 021 54 073 26 918 21 339 22 557 23 837 25 180 26 590 32 286
- dividend payment 18 000 19 000 20 000 25 000 30 000 35 000 6 740 18 000
9. Net flow from financial
activity 14 286 15 152 16 064 17 018 18 021 19 073 20 178 21 339 22 557 23 837 25 180 26 590 14 286
10. Total Net Flow
( 32 286) ( 34 152) ( 36 064)
( 42
018)
( 48
021)
( 54
073)
( 26
918)
( 21
339)
( 22
557)
( 23
837)
( 25
180)
( 26
590)
( 32
286)
Exchange differences 11 724 12 017 12 377 8 802 5 299 1 870 31 780 40 253 42 072 43 982 45 987 48 093 11 724
Cash balance at the beginning
of the period
Cash balance at the end of the
period 151 989 163 713 175 729 188 106 196 909 202 207 204 077 235 858 276 110 318 182 362 164 408 151 151 989
107
7.2.5. Forecast of the balance sheet.
Analysis of the structure of the balance sheet of the Managing Enterprise during the forecast period of the
industrial parks activity reflects a favorable situation, which allows carrying out a profitable economic
and financial activity. The table below shows the dynamics of the balance sheet (see Annex 9. ).
During its activity, the Managing Enterprise of the industrial park will develop a constantly growing
activity, characterized by its specificity and reflected in the data, forecasted in financial statements. Thus,
taking into account the investments, made by the Managing enterprise in creation of infrastructure, in
utilities, in repair and renovation of buildings as well as in construction of new buildings for the good
carrying out of the production activity, the property increases from 355,7 millions MDL in the first
forecast year up to 955,2 millions MDL in the 25
th
forecast year, reflecting an increase of abt. 2,5 times
(year XXV as compared to year I).

I. Analysis of assets.
The table above shows the key changes in the structure of assets for the first forecast period I year
XXV year.
For the period I year - XXV year, the major changes in the assets of the company are the following ones:

- Long-term investments in assets, made during the years I - XXV 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 enterprise as well as accumulation of receivables at the end of
the reporting year as a result of an activity carried out.

II. Analysis of liabilities.
Equity.
As a result of investments, made from the funds of the Managing enterprise, authorized capital value is
identified up to 48,5 millions MDL which includes values of current fixed assets of the enterprise as well
as value of investments in the industrial park from own resources. Further, the profits resulted from the
activity, carried out by the enterprise and accumulated from one period to another determine an increase
in net profit, which implies a final value of 954 millions MDL in XXV year of equity or 99% of the total
funding sources.

Long-term loans.
As it has been noted, the investments, made by the enterprise in years I 2, are expected to be made by
the Managing Enterprise with opportunities to attract external sources from various regional projects. In
this respect, at the end of the first forecast year the total amount of attracted resources is expected to
make up 297 millions MDL, which constitutes 82% of total funding sources. Taking into account the
specificity of the industrial parks activity, loans need to be attracted for an average period of 10-15
forecast years, for which the dynamics of respective loans shows a downward trend for those 25 forecast
years and will completely disappear by complete payment in XX forecast year with the final installment
payment.

108
Table 48. Balance sheet dynamics, thousand MDL.
Forecast period: Years I XII
Indicators, MDL I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year
Total Assets 355 672 366 214 376 959 387 965 399 300 411 036 423 232 435 969 449 319 463 364 478 190 493 885
Long-Term Assets 336 799 328 384 319 969 311 555 303 140 294 726 286 311 277 897 269 482 261 067 252 653 244 238
- fixed assets 345 213 345 213 345 213 345 213 345 213 345 213 345 213 345 213 345 213 345 213 345 213 345 213
Short-Term Assets 18 873 37 830 56 989 76 410 96 160 116 310 136 921 158 073 179 837 202 296 225 537 249 647
- short-term receivables 7 618 14 312 21 522 26 003 34 220 43 001 52 368 62 356 72 993 84 314 96 354 109 149
- financial resources 11 255 23 517 35 467 50 407 61 940 73 309 84 553 95 717 106 844 117 983 129 184 140 498
Total Liabilities 355 672 366 214 376 959 387 965 399 300 411 036 423 232 435 969 449 319 463 364 478 190 493 885
Equity 63 857 80 389 98 126 117 128 137 459 159 186 182 377 207 107 233 451 261 492 291 313 323 004
- authorized capital 48 473 48 473 48 473 48 473 48 473 48 473 48 473 48 473 48 473 48 473 48 473 48 473
- retained earnings 15 384 31 915 49 652 68 655 88 986 110 712 133 904 158 633 184 978 213 019 242 840 274 531
Long-Term Debts 291 740 285 740 278 740 270 740 261 740 251 740 240 740 228 740 215 740 201 740 186 740 170 740
- long-term bank loans 291 740 285 740 278 740 270 740 261 740 251 740 240 740 228 740 215 740 201 740 186 740 170 740
Short-Term Debts 75 85 93 97 101 110 115 123 128 132 137 141
- debts on commercial bills 75 85 93 97 101 110 115 123 128 132 137 141

109
Forecast period: Year XIII XXV
Indicators, MDL XIII year XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
Total Assets 510 550 528 277 547 165 567 333 584 888 599 950 612 643 656 360 709 718 766 122 825 726 888 688 955 177
Long-Term Assets 235 824 227 409 218 995 210 580 202 165 193 751 185 336 176 922 168 507 160 093 151 678 143 263 134 849
- fixed assets 345 213 345 213 345 213 345 213 345 213 345 213 345 213 345 213 345 213 345 213 345 213 345 213 345 213
Short-Term Assets 274 727 300 868 328 171 356 753 382 723 406 199 427 307 479 438 541 211 606 030 674 048 745 425 820 328
- short-term receivables 122 738 137 155 152 441 168 647 185 814 203 992 223 229 243 580 265 100 287 848 311 884 337 274 364 084
- financial resources 151 989 163 713 175 729 188 106 196 909 202 207 204 077 235 858 276 110 318 182 362 164 408 151 456 244
Total Liabilities 510 550 528 277 547 165 567 333 584 888 599 950 612 643 656 360 709 718 766 122 825 726 888 688 955 177
Equity 356 659 392 374 430 254 470 414 512 960 558 012 605 695 656 141 709 488 765 881 825 473 888 422 954 898
- authorized capital 48 473 48 473 48 473 48 473 48 473 48 473 48 473 48 473 48 473 48 473 48 473 48 473 48 473
- retained earnings 308 185 343 901 381 781 421 940 464 487 509 539 557 222 607 668 661 015 717 408 777 000 839 949 906 425
Long-Term Debts 153 740 135 740 116 740 96 740 71 740 41 740 6 740
- long-term bank loans 153 740 135 740 116 740 96 740 71 740 41 740 6 740
Short-Term Debts 152 163 171 180 189 198 208 218 229 241 253 266 279
- debts on commercial bills 152 163 171 180 189 198 208 218 229 241 253 266 279

110
Table 49. Structure of assets for the forecast period.
Forecast period: Years I XII
Indicators, MDL I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year
Total Assets 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Long-Term Assets 94,69% 89,67% 84,88% 80,30% 75,92% 71,70% 67,65% 63,74% 59,98% 56,34% 52,84% 49,45%
- fixed assets 97,06% 94,27% 91,58% 88,98% 86,45% 83,99% 81,57% 79,18% 76,83% 74,50% 72,19% 69,90%
Short-Term Assets 5,31% 10,33% 15,12% 19,70% 24,08% 28,30% 32,35% 36,26% 40,02% 43,66% 47,16% 50,55%
- short-term receivables 2,14% 3,91% 5,71% 6,70% 8,57% 10,46% 12,37% 14,30% 16,25% 18,20% 20,15% 22,10%
- financial resources 3,16% 6,42% 9,41% 12,99% 15,51% 17,84% 19,98% 21,95% 23,78% 25,46% 27,02% 28,45%
Total Liabilities 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Equity 17,95% 21,95% 26,03% 30,19% 34,43% 38,73% 43,09% 47,50% 51,96% 56,43% 60,92% 65,40%
- authorized capital 13,63% 13,24% 12,86% 12,49% 12,14% 11,79% 11,45% 11,12% 10,79% 10,46% 10,14% 9,81%
- retained earnings 4,33% 8,71% 13,17% 17,70% 22,29% 26,93% 31,64% 36,39% 41,17% 45,97% 50,78% 55,59%
Long-Term Debts 82,02% 78,03% 73,94% 69,78% 65,55% 61,25% 56,88% 52,47% 48,01% 43,54% 39,05% 34,57%
- long-term bank loans 82,02% 78,03% 73,94% 69,78% 65,55% 61,25% 56,88% 52,47% 48,01% 43,54% 39,05% 34,57%
Short-Term Debts 0,02% 0,02% 0,02% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03%
- debts on commercial
bills
0,02% 0,02% 0,02% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03%

111
Forecast period: Year XIII - XXV
Indicators, MDL
XIII year XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year
XXV
year
Total Assets 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Long-Term Assets 46,19% 43,05% 40,02% 37,12% 34,56% 32,29% 30,25% 26,95% 23,74% 20,90% 18,37% 16,12% 14,12%
- fixed assets 67,62% 65,35% 63,09% 60,85% 59,02% 57,54% 56,35% 52,60% 48,64% 45,06% 41,81% 38,85% 36,14%
Short-Term Assets 53,81% 56,95% 59,98% 62,88% 65,44% 67,71% 69,75% 73,05% 76,26% 79,10% 81,63% 83,88% 85,88%
- short-term
receivables
24,04% 25,96% 27,86% 29,73% 31,77% 34,00% 36,44% 37,11% 37,35% 37,57% 37,77% 37,95% 38,12%
- financial resources 29,77% 30,99% 32,12% 33,16% 33,67% 33,70% 33,31% 35,93% 38,90% 41,53% 43,86% 45,93% 47,77%
Total Liabilities 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Equity 69,86% 74,27% 78,63% 82,92% 87,70% 93,01% 98,87% 99,97% 99,97% 99,97% 99,97% 99,97% 99,97%
- authorized capital 9,49% 9,18% 8,86% 8,54% 8,29% 8,08% 7,91% 7,39% 6,83% 6,33% 5,87% 5,45% 5,07%
- retained earnings 60,36% 65,10% 69,77% 74,37% 79,41% 84,93% 90,95% 92,58% 93,14% 93,64% 94,10% 94,52% 94,90%
Long-Term Debts 30,11% 25,69% 21,34% 17,05% 12,27% 6,96% 1,10% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%
- long-term bank loans 30,11% 25,69% 21,34% 17,05% 12,27% 6,96% 1,10% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%
Short-Term Debts 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03%
- debts on commercial
bills
0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03%

Short-term funding sources.
Like any economic activity, lease of available spaces is more or less influenced by various purchases. In this regard, in the future the Managing Enterprise will
have some liabilities that will not affect its paying capacity or significant debt since their weight does not exceed 0.02% of total assets, i.e. the amount of 75
millions MDL at end of the last forecast year.

112
7.2.6. Forecast of financial indicators
Evolution of main financial indicators of the enterprise during the analysis period is presented in Annex 10.
7.2.6.1. Indicators of profitability.
Calculations and forests made for an analyzed period shows business profitability and its profitable activity.
Table 50. Main indicators of profitability

Indicators Year I
Year
II
Year
III
Year
IV
Year
V
Year
VI
Year
VII
Year
VIII
Year
IX
Year
X
Year
XI
Year
XII
Year
XIII
Year
XIV
Year
XV
Year
XVI
Year
VII
Year
XVIII
Year
XIX
Year
XX
Year
XXI
Year
XXII
Year
XXIII
Year
XXIV
Year
XXV
Investment
Profitability 5% 5% 6% 6% 6% 7% 7% 8% 8% 9% 9% 10% 10% 11% 12% 13% 13% 14% 15% 16% 17% 18% 19% 20% 21%
Return On Equity
(ROE)
27% 26% 24% 21% 19% 17% 15% 14% 13% 13% 12% 11% 11% 10% 10% 10% 9% 9% 9% 9% 8% 8% 8% 8% 8%
Return On Assets
(ROA) 4% 5% 5% 5% 5% 6% 6% 6% 6% 6% 7% 7% 7% 7% 7% 7% 8% 8% 8% 8% 8% 8% 8% 8% 8%
Gross Margin (%)
67% 68% 70% 71% 72% 73% 74% 75% 76% 77% 78% 79% 80% 81% 82% 82% 83% 84% 84% 85% 86% 86% 87% 87% 88%
Net Profit Margin
56% 57% 58% 59% 60% 61% 62% 63% 64% 65% 66% 67% 68% 68% 69% 70% 70% 71% 71% 72% 73% 73% 73% 74% 74%
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 higher final of this final forecast value makes up 8%. Decrease at the end of the forecast period is explained by the accumulation of
profit, which is the reason why the Managing Enterprise shall identify an investment policy.
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 forecast period, thus confirming the profitability of the business and an additional MDL for the asset will generate a profit of 0,04 to 0,07 MDL
over a period of 12 months or 0,8 MDL for the last year of forecast.
Evolutionally, this indicator has an overall upward trend, which is beneficial, indicating that the direction of enterprises development is correct.
The table shows that the gross profit margin exceeds 88% at the end of the forecast period with a 21% increase compared with the first year of forecast. 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 14 years.
This may arise as a result of favorable 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 enterprise to obtain profit, given that costs, expenses, and paid tax are taken into
account, and the value of over 70% determines the profitability of the enterprise. This value is specific to companies involved in leasing of spaces available.
113
7.2.6.2. Liquidity indicators.
Liquidity is one of the main indicators characterizing the ability of the enterprise to carry out its immediate payments. The indicators characterizing the level of
liquidity are the following.
Table 51. Main liquidity indicators.
Forecast period: Years I - XII
Indicators Year I Year II Year III Year IV Year V Year VI Year VII Year VIII Year IX Year X Year XI Year XII
Liquidity Ratio (Coverage) 252 445 613 788 952 1,057 1,191 1,285 1,405 1,533 1,646 1,771
Intermediate Liquidity
(Acid Test)
252 445 613 788 952 1,057 1,191 1,285 1,405 1,533 1,646 1,771
Immediate liquidity 150 277 381 520 613 666 735 778 835 894 943 996
Working capital
(thousand, MDL)
18 798 37 745 56 896 76 313 96 059 116 200 136 806 157 950 179 709 202 164 225 400 249 506
Forecast period: Years XIII - XXV
Indicators
Year XIII Year XIV Year XV Year XVI Year XVII Year XVIII Year XIX Year XX Year XXI Year XXII Year XXIII Year XXIV Year XXV
Liquidity Ratio
(Coverage)
1 807 1 846 1 917 1 985 2 028 2 050 2 054 2 195 2 360 2 516 2 666 2 808 2 943
Intermediate Liquidity
(Acid Test)
1 807 1 846 1 917 1 985 2 028 2 050 2 054 2 195 2 360 2 516 2 666 2 808 2 943
Immediate liquidity 1 000 1 004 1 027 1 047 1 044 1 021 981 1 080 1 204 1 321 1 432 1 537 1 637
Working capital
(thousand, MDL)
274 575 300 705 328 000 356 574 382 534 406 001 427 099 479 220 540 981 605 789 673 795 745 159 820 049
As shown in the Table above, the overall liquidity (coverage liquidity) for the forecast period is well above the minimum acceptable threshold (1,5). On the one
hand an excessive liquidity is a factor that the enterprise is not able to invest its available resources. On the other hand, the enterprises 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.
114
7.2.6.3. Indicators of financial stability.
In terms of solvency indicators, it can be concluded that for the Managing Enterprise they are acceptable.
Table 52. Main indicators of financial stability.
Forecast Period: Years I - XII
Capital Adequacy Ratio 18% 22% 26% 30% 34% 39% 43% 48% 52% 56% 61% 65%
Leverage Ratio 4,6 3,6 2,8 2,3 1,9 1,6 1,3 1,1 0,9 0,8 0,6 0,5
Financial Stability Coefficient 0,1 0,1 0,2 0,2 0,2 0,3 0,3 0,4 0,4 0,4 0,5 0,5
Interest Coverage Ratio 888 907 926 943 960 976 991 1 005 1 019 1 032 1 044 1 056
Debt Service Ratio 3,3 3,0 2,7 2,9 2,3 2,1 2,0 1,9 1,9 1,8 1,7 1,7
RDD 4,8 4,2 3,7 3,4 3,2 3,0 2,9 2,8 2,7 2,6 2,5 2,5
Forecast Period: Years XIII - XXV
Indicators Year XIII Year XIV Year XV Year XVI Year XVII Year XVIII Year XIX Year XX Year XXI Year XXII Year XXIII Year XXIV Year XXV
Capital Adequacy Ratio
70% 74% 79% 83% 88% 93% 99% 100% 100% 100% 100% 100% 100%
Leverage Ratio
0,4 0,3 0,3 0,2 0,1 0,1 0,0 0,0 0,0 0,0 0,0 0,0 0,0
Financial Stability Coefficient 0,5 0,6 0,6 0,6 0,7 0,7 0,7 0,7 0,8 0,8 0,8 0,8 0,9
Interest Coverage Ratio
1 067 1 078 1 088 1 098 1 107 1 116 1 124 1 132 1 140 1 147 1 154 1 161 1 167
Debt Service Ratio
1,7 1,7 1,6 1,6 1,4 1,2 1,1 5,7 0,0 0,0 0,0 0,0 0,0
RDD 2,5 2,5 2,4 2,4 2,0 1,8 1,6 8,7 0,0 0,0 0,0 0,0 0,0
If we were to consider the Enterprise 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 investment years determines a temporary increase in borrowing up to about 30% of total funding sources, which would not
involve the negative 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 the financial stability coefficient has minimum values, further development of the enterprise involves an increase and safety
for future periods.
The enterprises ability to pay off the debts of main creditors is determined by the relation exposed through the interest coverage ratio, debt service or RDD.
115
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 enterprise, and its framing within 2,5 to 0 confirms once again that credit and interest
payments will not threaten its current activity.
7.2.6.4. Turnover indicators.
In terms of revenue generation abilities following the use of each component of enterprises assets, the values of these indicators are given by the enterprises
specificity - lease of available spaces. Given that the available buildings have considerable values (over 300 million MDL), assents indicators will generate enough
unfavorable values, but these are obtained in conditions when during income calculation pessimistic options of development were taken into account.
Table 53. Main indicators of turnover.
Forecast period: Years I - XII
Time of turnover of assets
(days)
4 615 4 474 4 337 4 265 4 192 4 121 4 051 3 984 3 918 3 856 3 797 3 741
Time of turnover of long term
assets (days)
4 491 4 236 3 994 3 718 3 459 3 215 2 986 2 771 2 570 2 381 2 203 2 037
Time of turnover of current
assets
124 238 342 546 734 906 1 065 1 212 1 349 1 475 1 593 1 703
Time of turnover of short-term
receivables (days)
50 90 129 193 266 337 391 461 528 594 659 722
Time of turnover of loan debt
(days)
0,49 0,53 0,56 0,99 1,02 1,06 1,06 1,07 1,08 1,07 1,08 1,07

116

Forecast period: Years XIII - XXV
Indicators
Year
XIII
Year XIV
Year XV Year XVI
Year
XVII
Year
XVIII Year XIX Year XX Year XXI
Year
XXII
Year
XXIII
Year
XXIV
Year
XXV
Time of turnover of assets (days)
3 688 3 640 3 595 3 554 3 505 3 449 3 388 3 403 3 428 3 446 3 537 3 642 3 745
Time of turnover of long term assets (days)
1 882 1 736 1 600 1 472 1 353 1 241 1 137 1 039 948 863 784 710 642
Time of turnover of current assets
1 807 1 904 1 995 2 082 2 152 2 208 2 251 2 363 2 480 2 583 2 753 2 932 3 104
Time of turnover of short-term receivables
(days)
784 844 903 961 1 017 1 072 1 125 1 177 1 228 1 277 1 326 1 373 1 419
Time of turnover of loan debt (days)
1,08 1,08 1,08 1,09 1,11 1,11 1,11 1,12 1,12 1,12 1,12 1,13 1,13
During the forecast period, in terms of turnover indicators, an increase in the business dynamics is observed, while most of the indicators indicate decreased
duration of turnover.
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 about 40
years.
117
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
made investment. In this respect, it is necessary to analyze the efficiency of investment thought the net
present value method NPV (Net Present Value)
Option 1. Application of the reduction coefficient of up to 30% to the annual lease payment.
Table 54.Determination of investment efficiency.
Investment Value I 321 272 000 MDL
Discount Rate r
10%
Period of Recoverability T 24,8 years
Net Present Value NPV 2 014 222 MDL
Rates of Return RR 10,1%
Profitability Index (PI) 1,01
Net Present Value (NPV) is a fundamental criterion for economic and financial assessment 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 Falesti PSCM JSC based on a newly
created enterprise with managing duties, the total value of investment falls within 321 272 000 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:
( )
I
r
CT VV
VAN
n
t
t

+
=0
1
, under
VV - sales revenue CT total costs
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 2 014 222 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 2 million MDL indicates that the investment
will now generate a positive final value within the considered period (25 years).
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 enterprise a level of
10%. Mathematically the value of IRR is expressed by the expression:
The period of recovery of the investment, given the above assumptions, is estimated at 28,8 years and
reflects, in conditions when the discount rate would be similar to the internal rate of discount, the period
during which the enterprise 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 a period of
recovery of 10-20 years and that within the financial calculations the most pessimistic forecasts were
taken into account, a 28,8-years recoverability is acceptable for the companys investments, when in the
first investment year, payments of dividends shall already be made. In addition, the recoverability of the
investment was calculated based only on the basis of the industrial park management activity. Therefore,
if the Managing Enterprise should opt for the a parallel production activity, the period of investment
recoverability would be much less taking into account the added value that the production-oriented
industrial activities have and also in terms of the industrial park and of the prospect of benefiting from
the advantages created by the prospect of founding a Free Economic Zone within the park.
118

Option 2. Application of full price annually calculated for lease
Table 55. Determining investment efficiency.
Investment Value I 321 272 000 MDL
Discount Rate r
10%
Period of Recoverability T
18,4 years
Net Present Value NPV
114 123 982 MDL
Rates of Return RR
13,4%
Profitability Index (PI)
1,36

Therefore, according to option 2, the term of recovery of the planned investment is considerably shorter
compared with option 1 of the investment efficiency. However, for an activity exclusively oriented
towards lease of production spaces and of adjacent land, these results are considered reliable. However,
from the view point of the investor, it is necessary to take measures to make efficient the recovery of
investment resources, which could be achieved through operational production activity of the Managing
Enterprise. Accordingly, it is necessary to obtain the title of the industrial park resident by the Managing
Enterprise to increase accrued income, which will lead to more limited terms of recovery of planned
investment resources.
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 increase in the level of
industrialization of the country through:
- Creation of a concentration pole of manufacturers, service providers, investors, suppliers and
beneficiaries on the territory of the Northern development region, unique in this regard, which,
due to its proximity to the centre of Northern development region Balti, as well as due to its
proximity to the European Union, will increase the investment 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;
- Development of infrastructure and upgrading industrial park utilities;
- Depolarization of economic activities in the Republic mainly concentrated in Chisinau
Municipality.
Impact on the region.
Creation of the industrial park aims to improve social and economic situation and the development of the
North of the Republic of Moldova and efficient use of its resources potential by:
- creating within the park over 500 new jobs at the end of the 25
th
forecast year, of which 25 will be
provided by the Managing Enterprise with an average salary of 3 500 MDL per month;
119
- increasing taxes paid to the state budget amounting to over 5 million MDL (see Annex 6) in the
year when the Managing Enterprise launched the industrial 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 in accordance and creating optimal
conditions for the development of a Business Incubator;
- substantial contribution to increasing revenues from sales in the region amounting over 106,9
million MDL since its launch till the last forecast year (see Annex 4).
- supporting the industrial complex by providing leased spaces of about 88 047m
2
;
- providing companies of the region a territory of activities with modernized spaces for offices,
storage spaces of finished products, as well as specialized spaces for installing large capacity
industrial equipment;
- supporting Small and Medium Enterprise sector by providing about 2000 sq.m. as space for
production and activity;
- providing some price discounts for rental payment, insuring utilities (electricity, gas, water,
sewage, access roads on the territory and on the area near the park);
- providing companies of the park with access to railway, connection to the capital of the
Republic and direct access and connection with no less than 4 districts;
- 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;
- increase of direct investments in the region amounting to about 322 million MDL managed by
the Managing Enterprise (see Annex 2).

Environmental impact.
The activity of the Managing Enterprise related to lease of available spaces does not generate a negative
impact on the environment. Activity of companies within the industrial park have a relatively small
impact on the environment, which is caused by maintenance of specialized equipment and use of raw
materials for production of metal processing equipment and parts. Therefore the activity can be classified
in category B of environmental risk under conditions when the Managing Enterprise will closely monitor
the operation process.
Moreover, benefits from creation of the industrial park lies in improving the improvement of
infrastructure of the City and region as a whole with positive implications on the environment by carrying
out repair of roads, gas, water and heat supply networks, which will also serve a part of neighboring
localities of the industrial park, which will allow reduction of environmental pollution. Moreover, the
creation of the industrial park will determine the central authorities to build transport and
communication infrastructure facilities, reconstruction of the industrial wastewater treatment plant with
beneficial impact on the region.

120
9. CONCLUSIONS
In general, the end of this study shows that the concept of building an industrial park on the territory
of Falesti PSCM JSC in Falesti is considered feasible in terms of identifying and attracting
investment resources to develop technical and production infrastructure. 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 enterprises management, including
by applying marketing and promotion practices under the selected optimal scenario;
economic and financial perspective, which proved the viability of the project, the benefits of
increased economic performance of the Managing Enterprise, as well as of the economic benefits
of potential of resident companies;
technical and operational perspective, which proved the positive impact of modernization and
complete repairs of the analyzed enterprises buildings, as well as planning new construction
transferred according to projects design within the industrial park as a whole, but also on
improving the city appearance and raising its quality of life by creating simultaneous utilities
infrastructure and the effectiveness of the recoverability of assets invested in these works.
However, the concept of creating optimal conditions for the activity of the Business Incubator will
accelerate the development of entrepreneurship for SMEs;
market perspective, which shows boosting industrial production in the region as a whole, and that
of the analyzed enterprise, particularly of the potential resident and other residents selected by
the Managing Enterprise. Immediate results will determine support of domestic producers of the
industrial branch, and respectively the opportunity for increase in the 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 Falesti PSCM
JSC in Falesti will be EFFICIENT in conditions of observing: the optimum scenario, proposed action plan
and the amount of the estimated investment. Meanwhile, it is necessary that the Managing Enterprise
analyses the option to become a resident of the industrial park. In this way, the enterprise's operating
income would increase significantly, which positively affects the term of recovery of the expected
investment.
121
A N N E X
Annex 1. Estimate for complete repairs and infrastructure renovation, Falesti PSCM JSC.
General estimate in amount of:
321 272 th.
MDL

Including recoverable amounts:
0.000
th. MDL

GENERAL ESTIMATE no.
Drawn up in current prices: quar. IV, year 2010
No.
No.
esti
m.
Name of expenses chapters and of objectives
Amount, th. MDL
Total
amount, th.
MDL
Construction
works
Mountin
g works
Equipme
nt,
furniture
,
inventor
y
Other
works
1 2 3 4 5 6 7 8
Chapter 1 Preparation of the land lot for construction of object
Total Chapter 1 0,00 0,00 0,00 0,00 0,00
Chapter 2 Objects of basic investments
1
Complete repair of active spaces
44 498,00 44 498,00
2
Complete repair of inactive spaces
92 775,38 92 775,38
3
Demolition works
4 335,60 4 335,60
4
New buildings - offices. conference hall and canteen
10 626,25 10 626,25
5
New buildings - boiler room, storage and production
facilities
86 677,50 86 677,50
Total Chapter 2 238 912,73 0,00 0,00 0,00 238 912,73
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
Chapter 5 Communications and transport objects

Interior roads and parking
6 875,00 6 875,00
Total Chapter 5 6 875,00 0,00 0,00 0,00 6 875,00
Chapter 6
Civil engineering and external networks (water,
sewage, heat, gas)

Water supply networks
513,33 513,33

Sewage systems
330,00 330,00

Gas supply networks
350,00 350,00

Electric power networks
302,08 302,08
Total Chapter 6 1 495,41 0,00 0,00 0,00 1 495,41
Chapter 7 Arrangement of territory and green spaces
Arrangement of territory and green spaces 187,50 187,50
Total Chapter 7 187,50 0,00 0,00 0,00 187,50
Total Chapter 1-7 247 470,64 0,00 0,00 0,00 247 470,64
Chapter 8 Site organization
NCML March
1, 2001 4.1.
an. 1 pag.5
Buildings and temporary buildings k=1.4*0.8=1.12%
Total Chapter 8 0,00 0,00 0,00
including the amount of reimbursement 0,00 0,00 0,00
Total Chapter 1-8 247 470,64 0,00 0,00 0,00 247 470,64
122
including the amount of reimbursement 0,00 0,00 0,00
Chapter 9 Other expenses
NCML April
1, 2001 an.A
pag.5
Additional expenses for construction and mounting works
in cold weather 0.8%
1,979,77 1 979,77 0,00
CPL January
1, 2001. an.B
pag.31;
calcul.
Payment for electricity 2,177,74 2 177,74 0,00
Total Chapter 9 4 157,51 0,00 0,00 0,00 4 157,51
Total Chapter 1-9 251 628,15 0,00 0,00 0,00 251 628,15
Repayment amount including temporary objects 0,00 0,00 0,00
Chapter 10 Maintenance Directorate (technical supervision)
CPL January
1, 2001. an.C
pag.31.
Technical Supervision - 1,0% 2 516,28
Total Chapter 10 2 516,28 2 516,28
Chapter 11 Training of operating staff 0,00
Total Chapter 11 0,00 0,00
Chapter 12 Design works, prospecting, copyright control
Contract Design works
Min.Ecol.RM
1306-01-07
of June 13,
2003 p.2
Copyright control
Min.Ecol.RM
1306-01-07
of June 13,
2003 p.1
par. 5
Performance of expertise
Total Chapter 12 7.062,00
Total Chapter 1-12 251,628,15
251
628,15
0,00 0,00 2 516,28
Including the amount of reimbursement 0,00 0,00 0,00
CPL January
1, 2001. p.6
11 pag 17
Reserve funds for unforeseen expenses 2% 5,032,56 5 032,56 0,00 0,00 50,33
Total including reserve 256 660,71 0,00 0,00 2 566,61 266 430,56
CPL January
1, 2001.
p.6.12 pag
17
Breakdowns in the fund of construction normative base
(CNB) 0,0%
1,283.30 1 283,30 0,00 0,00 12,83
Total inc. CNB 257 944,01 0,00 0,00 2 579,44 267 726,69
CPL January
1, 2001. p.6
14
Value added tax (VAT) 20% 51,588.80
51
588,80
0,00 0,00 515,89
Total inc. VAT 309 532,82 0,00 0,00 3 095,33 321 272
Including the amount of reimbursement 0,00 0,00 0,00

123
Annex 2. Investment structure.
Annex 3. Provision of rental services.
Annex 4. Forecast of operating income (VAT including).
Annex 5. Forecast of forecast consumption and operating expenses (VAT including).
Annex 6. Forecast cash flow.
Annex 7. Forecast financial results.
Annex 8. Forecast balance sheet.
Annex 9. Calculation of investment efficiency with a discount of up to 30% on rental price.
Annex 10.Financial indicators.
Annex 11. Calculation of wear.
Annex 12. Calculation of investment efficiency without applying a discount of up to 30% on the
price of the lease.

Anenx 2. Investment structure
Own Attracted
MDL MDL MDL
Reparation of active spaces: 17 565 53 397 600 53 397 600
construction 33 724 800 33 724 800
network engineering 19 672 800 19 672 800
Reparation of non-active spaces: 22 491 111 330 450 111 330 450
construction 87 220 100 87 220 100
Demolition of Buildings 3 613 5 202 720 5 202 720
New buildings - offices, with conference room and cantine 1 500 12 751 500 12 751 500
construction 10 327 500 10 327 500
New construction - boiler room, storage and industrial spaces 13 000 104 013 000 104 013 000
Construction of external networks with water, sewer, gas, electricity
connection in the main points
1 794 500 1 794 500
Roads and parking 15 000 8 250 000 8 250 000
Other expenses according to the estimate 24 532 230 24 532 230
Total, amount 321 272 000 24 532 230 296 739 770
Total, % 100% 8% 92%
Resources
Investment item
Space
(sq.m.)
in 2 levels
total amont
Annex 3. Income from lease of available spaces
Type of activity Space (sq.m.)
Pai = Tb x
(1 + K1 + K2
+ K3) x K4 x
S,
K2 K3 K4 S,
Discount
accord. to
law*
Production and storage 82 675 m2 480 lei/m2 0,50 0,56 1,50 1,00 25%
Forging and foundry 3 872 m2 489 lei/m2 0,50 0,56 1,50 1,00 25%
Roads and parking 1 500 m2 489 lei/m2 0,50 0,56 1,50 1,00 25%
II. Administrative space 1 500 m2 669 lei 0,50 1,50 1,50 1,00 30%
I year II year V year VI year VII year VIII year IX year X year XI year XII year
Space for leasing:
I. Production, storage, parking: 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2
Production and storage 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2
Forging and foundry 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2
II. Administrative space 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2
Rental price:
I. Production, storage, parking:
Production and storage 360 lei/m2 378 lei/m2 437 lei/m2 459 lei/m2 482 lei/m2 506 lei/m2 532 lei/m2 558 lei/m2 586 lei/m2 615 lei/m2
Forging and foundry 367 lei/m2 385 lei/m2 446 lei/m2 468 lei/m2 492 lei/m2 516 lei/m2 542 lei/m2 569 lei/m2 598 lei/m2 628 lei/m2
Roads and parking 367 lei/m2 385 lei/m2 446 lei/m2 468 lei/m2 492 lei/m2 516 lei/m2 542 lei/m2 569 lei/m2 598 lei/m2 628 lei/m2
II. Administrative space 468 lei 492 lei 569 lei 598 lei 627 lei 659 lei 692 lei 726 lei 763 lei 801 lei
Staffing 25 25 25 25 25 25 25 25 25 25
Average salary per month 3 500 lei 3 675 lei 4 254 lei 4 467 lei 4 690 lei 4 925 lei 5 171 lei 5 430 lei 5 701 lei 5 986 lei
Production, storage, parking 31 713 031 33 298 683 38 547 388 40 474 757 42 498 495 44 623 420 46 854 591 49 197 320 51 657 186 54 240 045
Production and storage 29 741 980 31 229 079 36 151 562 37 959 141 39 857 098 41 849 952 43 942 450 46 139 573 48 446 551 50 868 879
Forging and foundry 1 420 683 1 491 717 1 726 849 1 813 192 1 903 851 1 999 044 2 098 996 2 203 946 2 314 143 2 429 851
Roads and parking 550 368 577 886 668 976 702 425 737 546 774 423 813 144 853 801 896 491 941 316
Administrative space 702 293 737 407 853 641 896 323 941 139 988 196 1 037 606 1 089 486 1 143 960 1 201 159
Annual income, lei 32 415 324 34 036 090 39 401 028 41 371 080 43 439 634 45 611 616 47 892 196 50 286 806 52 801 147 55 441 204
* Law no. 182 from 15.07.2010 on industrial parks, art. 12, par.(1), pt. (e)
I year II year V year VI year VII year VIII year IX year X year XI year XII year XIII year XIV year XV year
Space for leasing:
I. Production, storage, parking: 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2
Production and storage 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2
Forging and foundry 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2
Roads and parking 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2
II. Administrative space 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2
Rental price:
Production and storage 360 lei/m2 378 lei/m2 437 lei/m2 459 lei/m2 482 lei/m2 506 lei/m2 532 lei/m2 558 lei/m2 586 lei/m2 615 lei/m2 646 lei/m2 678 lei/m2 712 lei/m2
Forging and foundry 367 lei/m2 385 lei/m2 446 lei/m2 468 lei/m2 492 lei/m2 516 lei/m2 542 lei/m2 569 lei/m2 598 lei/m2 628 lei/m2 659 lei/m2 692 lei/m2 726 lei/m2
Roads and parking 367 lei/m2 385 lei/m2 446 lei/m2 468 lei/m2 492 lei/m2 516 lei/m2 542 lei/m2 569 lei/m2 598 lei/m2 628 lei/m2 659 lei/m2 692 lei/m2 726 lei/m2
II. Administration space: 468 lei 492 lei 569 lei 598 lei 627 lei 659 lei 692 lei 726 lei 763 lei 801 lei 841 lei 883 lei 927 lei
Staffing 25 25 25 25 25 25 25 25 25 25 25 25 25
Average salary per month 3 500 lei 3 675 lei 4 254 lei 4 467 lei 4 690 lei 4 925 lei 5 171 lei 5 430 lei 5 701 lei 5 986 lei 6 285 lei 6 600 lei 6 930 lei
Production, storage, parking 31 713 031 33 298 683 38 547 388 40 474 757 42 498 495 44 623 420 46 854 591 49 197 320 51 657 186 54 240 045 56 952 048 59 799 650 62 789 632
Production and storage 29 741 980 31 229 079 36 151 562 37 959 141 39 857 098 41 849 952 43 942 450 46 139 573 48 446 551 50 868 879 53 412 323 56 082 939 58 887 086
Forging and foundry 1 420 683 1 491 717 1 726 849 1 813 192 1 903 851 1 999 044 2 098 996 2 203 946 2 314 143 2 429 851 2 551 343 2 678 910 2 812 856
Roads and parking 550 368 577 886 668 976 702 425 737 546 774 423 813 144 853 801 896 491 941 316 988 382 1 037 801 1 089 691
Administrative space 702 293 737 407 853 641 896 323 941 139 988 196 1 037 606 1 089 486 1 143 960 1 201 159 1 261 216 1 324 277 1 390 491
Annual income, lei 32 415 324 34 036 090 39 401 028 41 371 080 43 439 634 45 611 616 47 892 196 50 286 806 52 801 147 55 441 204 58 213 264 61 123 927 64 180 124
XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2
82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2
3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2
1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2
1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2
748 lei/m2 785 lei/m2 825 lei/m2 866 lei/m2 909 lei/m2 955 lei/m2 1 002 lei/m2 1 052 lei/m2 1 105 lei/m2 1 160 lei/m2
973 lei 1 022 lei 1 073 lei 1 127 lei 1 183 lei 1 242 lei 1 304 lei 1 370 lei 1 438 lei 1 510 lei
25 25 25 25 25 25 25 25 25 25
7 276 lei 7 640 lei 8 022 lei 8 423 lei 8 844 lei 9 287 lei 9 751 lei 10 238 lei 10 750 lei 11 288 lei
65 929 114 69 225 570 72 686 848 76 321 191 80 137 250 84 144 113 88 351 318 92 768 884 97 407 329 102 277 695
61 831 440 64 923 012 68 169 163 71 577 621 75 156 502 78 914 327 82 860 043 87 003 045 91 353 198 95 920 858
2 953 498 3 101 173 3 256 232 3 419 044 3 589 996 3 769 496 3 957 970 4 155 869 4 363 662 4 581 846
1 144 176 1 201 384 1 261 454 1 324 526 1 390 753 1 460 290 1 533 305 1 609 970 1 690 468 1 774 992
1 460 016 1 533 016 1 609 667 1 690 151 1 774 658 1 863 391 1 956 561 2 054 389 2 157 108 2 264 964
67 389 130 70 758 586 74 296 516 78 011 341 81 911 908 86 007 504 90 307 879 94 823 273 99 564 437 104 542 658
Annex 4 Forecast operational income (VAT including)
I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year
amount amount amount amount amount amount amount amount amount amount amount amount
A C D E F G G G G G G
1. Income from basic services
Rental spaces: 31 713 031 33 298 683 34 963 617 36 711 798 38 547 388 40 474 757 42 498 495 44 623 420 46 854 591 49 197 320 51 657 186 54 240 045
Production and storage 29 741 980 31 229 079 32 790 533 34 430 059 36 151 562 37 959 141 39 857 098 41 849 952 43 942 450 46 139 573 48 446 551 50 868 879
Forging and foundry 1 420 683 1 491 717 1 566 303 1 644 618 1 726 849 1 813 192 1 903 851 1 999 044 2 098 996 2 203 946 2 314 143 2 429 851
Roads and parking 550 368 577 886 606 781 637 120 668 976 702 425 737 546 774 423 813 144 853 801 896 491 941 316
Administrative spaces rental 702 293 737 407 774 277 812 991 853 641 896 323 941 139 988 196 1 037 606 1 089 486 1 143 960 1 201 159
subtotal 32 415 324 34 036 090 35 737 894 37 524 789 39 401 028 41 371 080 43 439 634 45 611 616 47 892 196 50 286 806 52 801 147 55 441 204
2. Income from additional services
Consulting 760 000 798 000 837 900 879 795 923 785 969 974 1 018 473 1 069 396 1 122 866 1 179 009 1 237 960 1 299 858
subtotal 760 000 798 000 837 900 879 795 923 785 969 974 1 018 473 1 069 396 1 122 866 1 179 009 1 237 960 1 299 858
Total operational income 33 175 324 34 834 090 36 575 794 38 404 584 40 324 813 42 341 054 44 458 107 46 681 012 49 015 063 51 465 816 54 039 106 56 741 062
VAT from sales 5 458 850 5 731 793 6 018 382 6 319 302 6 635 267 6 967 030 7 315 381 7 681 150 8 065 208 8 468 468 8 891 892 9 336 486
Net sales 27 716 473 29 102 297 30 557 412 32 085 283 33 689 547 35 374 024 37 142 725 38 999 861 40 949 855 42 997 347 45 147 215 47 404 575
XIII year XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
amount amount amount amount amount amount amount amount amount amount amount amount amount
A
1. Income from the provision of basic services
Rental spaces, such as: 56 952 048 59 799 650 62 789 632 65 929 114 69 225 570 72 686 848 76 321 191 80 137 250 84 144 113 88 351 318 92 768 884 97 407 329 102 277 695
Roads and parking 988 382 1 037 801 1 089 691 1 144 176 1 201 384 1 261 454 1 324 526 1 390 753 1 460 290 1 533 305 1 609 970 1 690 468 1 774 992
Administrative spaces rental 1 261 216 1 324 277 1 390 491 1 460 016 1 533 016 1 609 667 1 690 151 1 774 658 1 863 391 1 956 561 2 054 389 2 157 108 2 264 964
subtotal 58 213 264 61 123 927 64 180 124 67 389 130 70 758 586 74 296 516 78 011 341 81 911 908 86 007 504 90 307 879 94 823 273 99 564 437 104 542 658
Consulting 1 364 851 1 433 093 1 504 748 1 579 985 1 658 985 1 741 934 1 829 031 1 920 482 2 016 506 2 117 332 2 223 198 2 334 358 2 451 076
subtotal 1 364 851 1 433 093 1 504 748 1 579 985 1 658 985 1 741 934 1 829 031 1 920 482 2 016 506 2 117 332 2 223 198 2 334 358 2 451 076
Total operational income 59 578 115 62 557 021 65 684 872 68 969 115 72 417 571 76 038 449 79 840 372 83 832 391 88 024 010 92 425 211 97 046 471 101 898 795 106 993 734
VAT from sales 9 803 311 10 293 476 10 808 150 11 348 558 11 915 985 12 511 785 13 137 374 13 794 243 14 483 955 15 208 153 15 968 560 16 766 988 17 605 338
Net sales 49 774 804 52 263 544 54 876 722 57 620 558 60 501 585 63 526 665 66 702 998 70 038 148 73 540 055 77 217 058 81 077 911 85 131 807 89 388 397
Annex 5. Forecast consumption and expenses (VAT including)
Discount accord. to law*
Indirect consumptions Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
1. Indirect consumptions
Taxes 150 000 157 500 165 375 173 644 182 326 191 442 201 014 211 065 221 618 232 699 244 334 256 551
Reparation and maintenance of fixed assets 800 000 840 000 882 000 926 100 972 405 1 021 025 1 072 077 1 125 680 1 181 964 1 241 063 1 303 116 1 368 271
Fixed assets depreciation 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569
Total indirect consumptions 9 368 169 9 415 849 9 465 913 9 518 481 9 573 676 9 631 632 9 692 485 9 756 380 9 823 471 9 893 916 9 967 883 10 045 549
Managing expenses Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
A B C D E F G G G G G G G
1.Commercial expenses
Marketing, promotion 65 000 68 250 71 663 75 246 79 008 82 958 87 106 91 462 96 035 100 836 105 878 111 172
Other expenses 15 200 15 960 16 758 17 596 18 476 19 399 20 369 21 388 22 457 23 580 24 759 25 997
subtotal 80 200 84 210 88 421 92 842 97 484 102 358 107 476 112 849 118 492 124 417 130 637 137 169
2. General and administrative expenses
Salary + social insurance 1 050 000 1 102 500 1 157 625 1 215 506 1 276 282 1 340 096 1 407 100 1 477 455 1 551 328 1 628 895 1 710 339 1 795 856
Transportation 100 000 105 000 110 250 115 763 121 551 127 628 134 010 140 710 147 746 155 133 162 889 171 034
Banking and telephone expenses 50 000 52 500 55 125 57 881 60 775 63 814 67 005 70 355 73 873 77 566 81 445 85 517
Administrative mainenance 20 000 21 000 22 050 23 153 24 310 25 526 26 802 28 142 29 549 31 027 32 578 34 207
Taxes 55 000 57 750 60 638 63 669 66 853 70 195 73 705 77 391 81 260 85 323 89 589 94 069
Other General and administrative expenses 65 000 68 250 71 663 75 246 79 008 82 958 87 106 91 462 96 035 100 836 105 878 111 172
subtotal 1 340 000 1 407 000 1 477 350 1 551 218 1 628 778 1 710 217 1 795 728 1 885 515 1 979 790 2 078 780 2 182 719 2 291 855
3.Other operational expenses
Other operational expenses 25 000 26 250 27 563 28 941 30 388 31 907 33 502 35 178 36 936 38 783 40 722 42 758
subtotal 25 000 26 250 27 563 28 941 30 388 31 907 33 502 35 178 36 936 38 783 40 722 42 758
Total Operational expenses 1 445 200 1 517 460 1 593 333 1 673 000 1 756 650 1 844 482 1 936 706 2 033 542 2 135 219 2 241 980 2 354 079 2 471 782
Total expenses 10 813 369 10 933 309 11 059 246 11 191 480 11 330 326 11 476 114 11 629 191 11 789 922 11 958 690 12 135 896 12 321 962 12 517 332
Indirect consumptions Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont
Taxes 269 378 282 847 296 990 311 839 327 431 343 803 360 993 379 043 397 995 417 894 438 789 460 729 483 765
Reparation and maintenance of fixed assets 1 436 685 1 508 519 1 583 945 1 663 143 1 746 300 1 833 615 1 925 295 2 021 560 2 122 638 2 228 770 2 340 209 2 457 219 2 580 080
Fixed assets depreciation 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569
Total indirect consumptions #! #! #! 10 389 551 10 488 300 10 591 987 10 700 858 10 815 172 10 935 202 11 061 234 11 193 567 11 332 517 11 478 414
Managing expenses Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont
A G G G
1. Commercial expenses
Marketing, promotion 116 731 122 567 128 696 135 130 141 887 148 981 156 430 164 252 172 464 181 088 190 142 199 649 209 631
Other expenses 27 297 28 662 30 095 31 600 33 180 34 839 36 581 38 410 40 330 42 347 44 464 46 687 49 022
subtotal 144 028 151 229 158 791 166 730 175 067 183 820 193 011 202 661 212 794 223 434 234 606 246 336 258 653
Salary + social insurance 1 885 649 1 979 932 2 078 928 2 182 875 2 292 018 2 406 619 2 526 950 2 653 298 2 785 963 2 925 261 3 071 524 3 225 100 3 386 355
Transportation 179 586 188 565 197 993 207 893 218 287 229 202 240 662 252 695 265 330 278 596 292 526 307 152 322 510
Banking and telephone expenses 89 793 94 282 98 997 103 946 109 144 114 601 120 331 126 348 132 665 139 298 146 263 153 576 161 255
Administrative mainenance 35 917 37 713 39 599 41 579 43 657 45 840 48 132 50 539 53 066 55 719 58 505 61 430 64 502
Taxes 98 772 103 711 108 896 114 341 120 058 126 061 132 364 138 982 145 931 153 228 160 889 168 934 177 380
Other General and administrative expenses 116 731 122 567 128 696 135 130 141 887 148 981 156 430 164 252 172 464 181 088 190 142 199 649 209 631
subtotal 2 406 447 2 526 770 2 653 108 2 785 764 2 925 052 3 071 305 3 224 870 3 386 113 3 555 419 3 733 190 3 919 849 4 115 842 4 321 634
3. Other operational expenses
Other operational expenses 44 896 47 141 49 498 51 973 54 572 57 300 60 165 63 174 66 332 69 649 73 132 76 788 80 627
subtotal 44 896 47 141 49 498 51 973 54 572 57 300 60 165 63 174 66 332 69 649 73 132 76 788 80 627
Total Operational expenses 2 595 372 2 725 140 2 861 397 3 004 467 3 154 690 3 312 425 3 478 046 3 651 948 3 834 546 4 026 273 4 227 587 4 438 966 4 660 914
Total expenses #! #! #! 13 394 018 13 642 991 13 904 412 14 178 904 14 467 121 14 769 748 15 087 507 15 421 154 15 771 483 16 139 329
Annex 6. Forecast cash flow
Total Total Total Total Total Total Total Total Total Total Total Total
I year II year I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year
I Operational Activity
A Cash earnings
Earnings fromsales
earnings from space leasing 30 794 557 32 334 285 33 909 105 39 401 028 37 430 977 39 302 526 41 267 652 43 331 035 45 497 587 47 772 466 50 161 089 52 669 144
earnings from additional services 722 000 758 100 796 005 923 785 877 596 921 475 967 549 1 015 927 1 066 723 1 120 059 1 176 062 1 234 865
earnings from debt 1 658 766 1 741 704 1 828 790 1 920 229 2 016 241 2 117 053 2 222 905 2 334 051 2 450 753 2 573 291 2 701 955
other earnings
Total earnings 31 516 557 34 751 152 36 446 814 42 153 603 40 228 802 42 240 242 44 352 254 46 569 867 48 898 360 51 343 278 53 910 442 56 605 964
B Cash payments
Payments to suppliers and contractors 1 068 800 1 115 990 1 168 040 1 227 091 1 289 296 1 349 811 1 417 801 1 486 441 1 561 914 1 642 409 1 726 130 1 815 286
Salary and social insrance payments 1 050 000 1 102 500 1 157 625 1 215 506 1 276 282 1 340 096 1 407 100 1 477 455 1 551 328 1 628 895 1 710 339 1 795 856
Interest payments
Payment of income tax 1 709 314 1 836 852 1 970 768 2 111 379 2 259 021 2 414 045 2 576 820 2 747 734 2 927 193 3 115 626 3 313 480 3 521 227
Other payments (including VAT) 5 279 626 5 821 110 6 105 808 7 058 398 6 739 096 7 076 710 7 430 462 7 802 360 8 192 286 8 601 500 9 031 309 9 482 399
Total payments 9 107 740 9 876 453 10 402 240 11 612 375 11 563 695 12 180 661 12 832 183 13 513 990 14 232 721 14 988 430 15 781 257 16 614 768
NET FLOWfromOPERATIONAL ACTIVITY 22 408 817 24 874 699 26 044 574 30 541 228 28 665 107 30 059 581 31 520 071 33 055 876 34 665 639 36 354 848 38 129 184 39 991 196
C Investment Activity
Earnings fromthe output of long termassets
Payments for purchase of long termassets 24 532 230 296 739 770
Payments for purchase of preparatory term 24 532 230
Payments for demolition work 5 202 720
Payments for reparation work 164 728 050
Payments for new objects construction 116 764 500
Payments for exterior construction of Networks 1 794 500
Payments for building of roads and parking lots 8 250 000
Interest received
Dividends received
Other
NET FLOWfromINVESTMENT ACTIVITY -24 532 230 -296 739 770
D Financial Activity
Earnings fromloans and credits 296 739 770
Earnings fromthe issue of own shares 24 532 230
Others
Sub-total 24 532 230 296 739 770
E Payments for loans and credits 5 000 000 6 000 000 7 000 000 8 000 000 9 000 000 10 000 000 11 000 000 12 000 000 13 000 000 14 000 000 15 000 000 16 000 000
Dividend payments 6 153 529 6 612 668 7 094 764 7 600 964 8 132 475 8 690 561 9 276 551 9 891 841 10 537 895 11 216 252 11 928 527 12 676 416
Payments for purchasing of own shares
Others
Sub-total 11 153 529 12 612 668 14 094 764 15 600 964 17 132 475 18 690 561 20 276 551 21 891 841 23 537 895 25 216 252 26 928 527 28 676 416
NET FLOWfrom FINANCIAL ACTIVITY 24 532 230 296 739 770 (11 153 529) (12 612 668) (14 094 764) (15 600 964) (17 132 475) (18 690 561) (20 276 551) (21 891 841) (23 537 895) (25 216 252) (26 928 527) (28 676 416)
NET FLOWfromeconomic activity 11 255 288 12 262 031 11 949 810 14 940 264 11 532 632 11 369 021 11 243 520 11 164 036 11 127 744 11 138 596 11 200 657 11 314 780
Exchange differences
H TOTAL NET FLOW 11 255 288 12 262 031 11 949 810 14 940 264 11 532 632 11 369 021 11 243 520 11 164 036 11 127 744 11 138 596 11 200 657 11 314 780
I Cash balance at the beginning of the period 11 255 288 23 517 319 35 467 129 50 407 392 61 940 025 73 309 045 84 552 565 95 716 601 106 844 345 117 982 941 129 183 598
J Cash balance at the end of the period 11 255 288 23 517 319 35 467 129 50 407 392 61 940 025 73 309 045 84 552 565 95 716 601 106 844 345 117 982 941 129 183 598 140 498 379
Investment Period
Total Total Total Total Total Total Total Total Total Total Total Total Total
A Cash earnings
Earnings fromsales
earnings from space leasing 55 302 601 58 067 731 60 971 117 64 019 673 67 220 657 70 581 690 74 110 774 77 816 313 81 707 129 85 792 485 90 082 109 94 586 215 99 315 526
earnings from additional services 1 296 608 1 361 439 1 429 511 1 500 986 1 576 035 1 654 837 1 737 579 1 824 458 1 915 681 2 011 465 2 112 038 2 217 640 2 328 522
earnings from debt 2 837 053 2 978 906 3 127 851 3 284 244 3 448 456 3 620 879 3 801 922 3 992 019 4 191 620 4 401 201 4 621 261 4 852 324 5 094 940
other earnings
Total earnings 59 436 262 62 408 075 65 528 479 68 804 903 72 245 148 75 857 406 79 650 276 83 632 790 87 814 429 92 205 151 96 815 408 101 656 179 106 738 987
B Cash payments
Payments to suppliers and contractors 1 902 100 1 993 805 2 093 496 2 190 686 2 300 221 2 415 232 2 535 993 2 662 793 2 795 933 2 935 729 3 082 516 3 236 642 3 398 474
Salary and social insrance payments 1 885 649 1 979 932 2 078 928 2 182 875 2 292 018 2 406 619 2 526 950 2 653 298 2 785 963 2 925 261 3 071 524 3 225 100 3 386 355
Interest payments
Payment of income tax 3 739 361 3 968 402 4 208 895 4 462 160 4 727 341 5 005 781 5 298 143 5 605 123 5 927 452 6 265 898 6 621 265 6 994 402 7 386 194
Other payments (including VAT) 9 957 177 10 455 603 10 978 383 11 528 550 12 104 977 12 710 226 13 345 737 14 013 024 14 713 675 15 449 359 16 221 827 17 032 919 17 884 564
Total payments 17 484 288 18 397 742 19 359 702 20 364 271 21 424 558 22 537 858 23 706 824 24 934 238 26 223 023 27 576 247 28 997 132 30 489 062 32 055 587
NET FLOWfrom OPERATIONAL ACTIVITY 41 951 974 44 010 334 46 168 777 48 440 632 50 820 591 53 319 547 55 943 452 58 698 551 61 591 406 64 628 904 67 818 276 71 167 117 74 683 400
Payments for purchase of long termassets
Payments for purchase of preparatory term
Payments for demolition work
Payments for reparation work
Payments for newobjects construction
Payments for exterior construction of Networks
Payments for building of roads and parking lots
Interest received
Dividends received
Other
NET FLOWfrom INVESTMENT ACTIVITY
Earnings fromloans and credits
Earnings fromthe issue of own shares
Others
Sub-total
E Payments for loans and credits 17 000 000 18 000 000 19 000 000 20 000 000 25 000 000 30 000 000 35 000 000 6 739 770
Dividend payments 13 461 699 14 286 246 15 152 020 16 063 778 17 018 429 18 020 813 19 073 316 20 178 444 21 338 828 22 557 232 23 836 555 25 179 845 26 590 300
Others
Sub-total 30 461 699 32 286 246 34 152 020 36 063 778 42 018 429 48 020 813 54 073 316 26 918 214 21 338 828 22 557 232 23 836 555 25 179 845 26 590 300
NET FLOWfrom FINANCIAL ACTIVITY (30 461 699) (32 286 246) (34 152 020) (36 063 778) (42 018 429) (48 020 813) (54 073 316) (26 918 214) (21 338 828) (22 557 232) (23 836 555) (25 179 845) (26 590 300)
NET FLOWfrom economic activity 11 490 276 11 724 088 12 016 757 12 376 854 8 802 162 5 298 735 1 870 136 31 780 338 40 252 578 42 071 672 43 981 721 45 987 271 48 093 100
H TOTAL NET FLOW 11 490 276 11 724 088 12 016 757 12 376 854 8 802 162 5 298 735 1 870 136 31 780 338 40 252 578 42 071 672 43 981 721 45 987 271 48 093 100
I Cash balance at the beginning of the period 140 498 379 151 988 654 163 712 742 175 729 499 188 106 353 196 908 515 202 207 250 204 077 386 235 857 724 276 110 302 318 181 974 362 163 695 408 150 966
J Cash balance at the end of the period 151 988 654 163 712 742 175 729 499 188 106 353 196 908 515 202 207 250 204 077 386 235 857 724 276 110 302 318 181 974 362 163 695 408 150 966 456 244 066
Annex 7. Forecast financial results
Indicators
No row
1. Net sales 01 27 716 473 29 102 297 30 557 412 32 085 283 33 689 547 35 374 024 37 142 725 38 999 861 40 949 855 42 997 347 45 147 215 47 404 575
2. Cost of sales 02 9 234 836 9 275 849 9 318 913 9 364 131 9 411 609 9 461 461 9 513 805 9 568 767 9 626 477 9 687 072 9 750 697 9 817 504
3. Gross Profit 03 18 481 637 19 826 448 21 238 498 22 721 152 24 277 938 25 912 563 27 628 920 29 431 094 31 323 378 33 310 275 35 396 517 37 587 071
4. Other operational income 04
5.Commercial expenses 05 66 833 70 175 73 684 77 368 81 236 85 298 89 563 94 041 98 743 103 680 108 864 114 308
6. General & administrative expenses 06 1 300 833 1 365 875 1 434 169 1 505 877 1 581 171 1 660 230 1 743 241 1 830 403 1 921 923 2 018 019 2 118 920 2 224 866
7.Other operational expenses 07 20 833 21 875 22 969 24 117 25 323 26 589 27 919 29 315 30 780 32 319 33 935 35 632
8. Results from operating activities (3+4-5-6-7) 08 17 093 137 18 368 523 19 707 677 21 113 790 22 590 207 24 140 446 25 768 197 27 477 335 29 271 931 31 156 256 33 134 797 35 212 265
9.Results from investment activity 09
10. Results from financial activity 10
11.Results of financial and economic activity (8+9+10) 11 17 093 137 18 368 523 19 707 677 21 113 790 22 590 207 24 140 446 25 768 197 27 477 335 29 271 931 31 156 256 33 134 797 35 212 265
12.Results from exceptional activity 12
13.Profit before taxes (11+12) 13 17 093 137 18 368 523 19 707 677 21 113 790 22 590 207 24 140 446 25 768 197 27 477 335 29 271 931 31 156 256 33 134 797 35 212 265
14.Income tax 14 1 709 314 1 836 852 1 970 768 2 111 379 2 259 021 2 414 045 2 576 820 2 747 734 2 927 193 3 115 626 3 313 480 3 521 227
15.Net profit (13+14) 15 15 383 824 16 531 670 17 736 909 19 002 411 20 331 187 21 726 402 23 191 377 24 729 602 26 344 738 28 040 630 29 821 317 31 691 039
Indicatorii Cod. rnd XIII year XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
1. Net sales 01 49 774 804 52 263 544 54 876 722 57 620 558 60 501 585 63 526 665 66 702 998 70 038 148 73 540 055 77 217 058 81 077 911 85 131 807 89 388 397
2. Cost of sales 02 9 887 651 9 961 305 10 038 641 10 112 361 10 197 250 10 286 384 10 379 975 10 478 245 10 581 429 10 689 772 10 803 532 10 922 981 11 048 401
3. Gross Profit 03 39 887 154 42 302 240 44 838 080 47 508 197 50 304 335 53 240 280 56 323 023 59 559 902 62 958 626 66 527 286 70 274 379 74 208 826 78 339 996
5.Commercial expenses 05 120 023 126 024 132 325 138 942 145 889 153 183 160 842 168 885 177 329 186 195 195 505 205 280 215 544
6. General & administrative expenses
06 2 336 110 2 452 915 2 575 561 2 704 339 2 839 556 2 981 534 3 130 611 3 287 141 3 451 498 3 624 073 3 805 277 3 995 540 4 195 318
07 37 414 39 284 41 249 43 311 45 477 47 750 50 138 52 645 55 277 58 041 60 943 63 990 67 190
8. Results from operating activities (3+4-5-6-7)
08 37 393 607 39 684 016 42 088 945 44 621 605 47 273 414 50 057 813 52 981 432 56 051 232 59 274 522 62 658 977 66 212 654 69 944 015 73 861 944
10. Results from financial activity
10
11.Results of financial and economic activity (8+9+10)
11 37 393 607 39 684 016 42 088 945 44 621 605 47 273 414 50 057 813 52 981 432 56 051 232 59 274 522 62 658 977 66 212 654 69 944 015 73 861 944
12.Results from exceptional activity
12
13.Profit before taxes (11+12)
13 37 393 607 39 684 016 42 088 945 44 621 605 47 273 414 50 057 813 52 981 432 56 051 232 59 274 522 62 658 977 66 212 654 69 944 015 73 861 944
14.Income tax
14 3 739 361 3 968 402 4 208 895 4 462 160 4 727 341 5 005 781 5 298 143 5 605 123 5 927 452 6 265 898 6 621 265 6 994 402 7 386 194
15.Net profit (13+14) 15 33 654 246 35 715 614 37 880 051 40 159 444 42 546 072 45 052 032 47 683 289 50 446 109 53 347 070 56 393 079 59 591 389 62 949 614 66 475 750
Annex 8. Forecast balance sheet
ASSETS No I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year
1 2 3 8 9 10 11 12 13 14 15 16 17 18 19
1
1.1
Long-Term Assets Intangible
assets Intangible assets
(111,112) 010
- - - - - -
Intangible assets amortization (113) 020
Intangible assets ( 010-020) 030 - - - - - - - - - - - -
1,2
Long-Term material Assets
working material assets (121) 040

Land(122) 050
Fixed assets (123) 060 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107
Depreciation of fixed assets (124,126) 080 (8 414 569) (16 829 139) (25 243 708) (33 658 278) (42 072 847) (50 487 417) (58 901 986) (67 316 556) (75 731 125) (84 145 695) (92 560 264) (100 974 834)
Long-Term material Assets (040+050+ 060+070-
080) 090
336 798 538 328 383 968 319 969 399 311 554 829 303 140 260 294 725 690 286 311 121 277 896 551 269 481 982 261 067 412 252 652 843 244 238 273
Total chapter 1 (030+090+160+170) 180 336 798 538 328 383 968 319 969 399 311 554 829 303 140 260 294 725 690 286 311 121 277 896 551 269 481 982 261 067 412 252 652 843 244 238 273
2 2.1 CURRENT ASSETS Raw
materials&components stocks
Materials (211) 190
- -
Animal rearing and fattening (212) 200 - -
Work in progress inventory(213-214) 210 - -
Production in progress (215) 220
Finished goods (216) 230 - - - - - - - -
Shipped goods(217) 240 - -
Total 2.1 (190+200+210 + +220+140+150) 250 - - - - - - - - - - - -
2,2
Accounts receivable Accounts
receivable fromcustomers (221) 260
7 618 105 14 312 314 21 521 983 26 002 699 34 219 823 43 000 774 52 368 201 62 356 337 72 992 900 84 313 503 96 353 733 109 148 561
Adjustments on doubtful debts (222) 270
Receivables fromrelated parties (223) 280
expenses paid in advance (224) 290
Receivables frombudget(225) 300
Preliminary Claims (226) 310
Receivables frompersonnel (227) 320
Other receivables(229) 340
Total 2.2 (260-270+280+ 290+300+310+320+
330+340) 350
7 618 105 14 312 314 21 521 983 26 002 699 34 219 823 43 000 774 52 368 201 62 356 337 72 992 900 84 313 503 96 353 733 109 148 561
2,4
Cash Cash (241)
400
1 125 529 2 351 732 3 546 713 5 040 739 6 194 002 7 330 905 8 455 257 9 571 660 10 684 434 11 798 294 12 918 360 14 049 838
Current accounts in local currency(242) 410 10 129 759 21 165 587 31 920 416 45 366 653 55 746 022 65 978 141 76 097 309 86 144 941 96 159 910 106 184 647 116 265 238 126 448 541
Current accounts in foreign currency (243) 420
Other cash (244, 245, 246) 430
Total 2.4 (400+410+ 420+430) 440 11 255 288 23 517 319 35 467 129 50 407 392 61 940 025 73 309 045 84 552 565 95 716 601 106 844 345 117 982 941 129 183 598 140 498 379
2,5 Other current assets (251, 252) 450
TOTAL chapter 2 (250+ 350+390+440+450) 460 18 873 393 37 829 633 56 989 112 76 410 092 96 159 848 116 309 819 136 920 766 158 072 938 179 837 245 202 296 444 225 537 331 249 646 939
TOTAL ASSETS (180+460) 470 355 671 931 366 213 601 376 958 510 387 964 921 399 300 108 411 035 509 423 231 887 435 969 489 449 319 226 463 363 856 478 190 174 493 885 212
LIABILITIES No I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year
1 2 3 8 9 10 11 12 13 14 15 16 17 18 19
3 3.1 EQUITY Share and
additional capital Share capital
(311) 480
48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337
Additional capital (312) 490
Unpaid capital (313) 500
Total.3.1 (480+490-500-510) 520 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337
3,3 Profit and loss surplus (331) 570
Retained earnings (uncovered loss) of previous
years (332)
580 15 383 824 31 915 494 49 652 403 68 654 814 88 986 001 110 712 402 133 903 780 158 633 382 184 978 119 213 018 749 242 840 067
Net profit (loss) (333) 590 15 383 824 16 531 670 17 736 909 19 002 411 20 331 187 21 726 402 23 191 377 24 729 602 26 344 738 28 040 630 29 821 317 31 691 039
Total 3.3 ( 570580 590600) 610 15 383 824 31 915 494 49 652 403 68 654 814 88 986 001 110 712 402 133 903 780 158 633 382 184 978 119 213 018 749 242 840 067 274 531 105
TOTAL chapter 3 (520+560610640) 650 63 857 161 80 388 831 98 125 740 117 128 151 137 459 338 159 185 739 182 377 117 207 106 719 233 451 456 261 492 086 291 313 404 323 004 442
4. 4.1 Long term liabilities Financial
Long term liabilities Bank credits
(411,412)
660
Loans (413) 670 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770
Others (414) 680
Total 4.1 (660+670+680) 690 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770
4,2
Accounted Long term liabilities Lease
Long term liabilities (421)
700
Special revenues (423) 720
Revenues received in advance (424) 730
Total 4.2 (700+710+720+ 730+740+750) 760
Total chapter 4 (690+760) 770 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770
5 5.1 Short term liabilities Financial
short term liabilities Bank credits
(511,512)
780
Loans (513) 790
Current share of long-term liabilities (514) 800
Total.5.1 (780+790+800+810) 820
5,2
Short term commercial liabilities
Short term commercial liabilities (521)
830 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000
Short term liabilities to related parties (522) 840
Total 5.2 (830+840+850) 860 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000
5,3
Acconted Short term liabilities
Accounted salary (531)
870
Other accounted liabilities to personnel (532) 880
Accounted Social insurance (533) 890
Taxes payable (534) 900
Shareholders payable (537) 930
Others (539) 950
Total 5.3 (870+880+890+
900+910+920+930+940+950)
960
TOTAL chapter 5 (820+860+960) 970 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000
TOTAL LIABILITIES (650+770+970) 980 355 671 931 366 213 601 376 958 510 387 964 921 399 300 108 411 035 509 423 231 887 435 969 489 449 319 226 463 363 856 478 190 174 493 885 212
Nr.
n.s.
ASSETS No I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year XIII year XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
1 2 3 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
1
1.1
Long-TermAssets Intangible
(111,112) 010
- - - - - -
Intangible assets ( 010-020) 030 - - - - - - - - - - - - - -
1,2
Long-Termmaterial Assets

Land(122) 050
Fixed assets (123) 060 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107
Depreciation of fixed assets (124,126) 080 (8 414 569) (16 829 139) (25 243 708) (33 658 278) (42 072 847) (50 487 417) (58 901 986) (67 316 556) (75 731 125) (84 145 695) (92 560 264) (100 974 834) (109 389 403) (117 803 973) (126 218 542) (134 633 112) (143 047 681) (151 462 251) (159 876 820) (168 291 390) (176 705 959) (185 120 529) (193 535 098) (201 949 668) (210 364 237)
Long-Termmaterial Assets (040+050+
060+070-080)
090
336 798 538 328 383 968 319 969 399 311 554 829 303 140 260 294 725 690 286 311 121 277 896 551 269 481 982 261 067 412 252 652 843 244 238 273 235 823 704 227 409 134 218 994 565 210 579 995 202 165 426 193 750 856 185 336 287 176 921 717 168 507 148 160 092 578 151 678 009 143 263 439 134 848 870
Total chapter 1 (030+090+160+170) 180 336 798 538 328 383 968 319 969 399 311 554 829 303 140 260 294 725 690 286 311 121 277 896 551 269 481 982 261 067 412 252 652 843 244 238 273 235 823 704 227 409 134 218 994 565 210 579 995 202 165 426 193 750 856 185 336 287 176 921 717 168 507 148 160 092 578 151 678 009 143 263 439 134 848 870
Materials (211) 190
- -
Finished goods (216) 230 - - - - - - - -
Total 2.1 (190+200+210 + +220+140+150) 250 - - - - - - - - - - - - - -
2,2
receivable from customers (221) 260
7 618 105 14 312 314 21 521 983 26 002 699 34 219 823 43 000 774 52 368 201 62 356 337 72 992 900 84 313 503 96 353 733 109 148 561 122 738 101 137 155 197 152 441 210 168 646 927 185 814 393 203 991 694 223 229 322 243 580 294 265 100 277 287 847 722 311 884 000 337 273 555 364 084 051
Total 2.2 (260-270+280+ 290+300+310+320+
330+340)
350
7 618 105 14 312 314 21 521 983 26 002 699 34 219 823 43 000 774 52 368 201 62 356 337 72 992 900 84 313 503 96 353 733 109 148 561 122 738 101 137 155 197 152 441 210 168 646 927 185 814 393 203 991 694 223 229 322 243 580 294 265 100 277 287 847 722 311 884 000 337 273 555 364 084 051
2,4
Cash Cash (241)
400
1 125 529 2 351 732 3 546 713 5 040 739 6 194 002 7 330 905 8 455 257 9 571 660 10 684 434 11 798 294 12 918 360 14 049 838 15 198 865 16 371 274 17 572 950 18 810 635 19 690 852 20 220 725 20 407 739 23 585 772 27 611 030 31 818 197 36 216 369 40 815 097 45 624 407
Current accounts in local currency(242) 410 10 129 759 21 165 587 31 920 416 45 366 653 55 746 022 65 978 141 76 097 309 86 144 941 96 159 910 106 184 647 116 265 238 126 448 541 136 789 789 147 341 468 158 156 549 169 295 718 177 217 664 181 986 525 183 669 647 212 271 951 248 499 272 286 363 777 325 947 325 367 335 869 410 619 659
Other cash (244, 245, 246) 430
Total 2.4 (400+410+ 420+430) 440 11 255 288 23 517 319 35 467 129 50 407 392 61 940 025 73 309 045 84 552 565 95 716 601 106 844 345 117 982 941 129 183 598 140 498 379 151 988 654 163 712 742 175 729 499 188 106 353 196 908 515 202 207 250 204 077 386 235 857 724 276 110 302 318 181 974 362 163 695 408 150 966 456 244 066
TOTAL chapter 2 (250+ 350+390+440+450) 460 18 873 393 37 829 633 56 989 112 76 410 092 96 159 848 116 309 819 136 920 766 158 072 938 179 837 245 202 296 444 225 537 331 249 646 939 274 726 755 300 867 939 328 170 709 356 753 280 382 722 908 406 198 943 427 306 708 479 438 018 541 210 579 606 029 696 674 047 695 745 424 522 820 328 117
TOTAL ASSETS (180+460) 470 355 671 931 366 213 601 376 958 510 387 964 921 399 300 108 411 035 509 423 231 887 435 969 489 449 319 226 463 363 856 478 190 174 493 885 212 510 550 459 528 277 073 547 165 274 567 333 276 584 888 333 599 949 800 612 642 995 656 359 735 709 717 727 766 122 274 825 725 704 888 687 961 955 176 986
Nr.
n.s.
LIABILITIES Cod I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year XIII year XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
1 2 3 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
3
3.1
EQUITY Share and
(311) 480
48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337
Total.3.1 (480+490-500-510) 520 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337
3,3
Profit and loss surplus (331)
570
years (332)
580 15 383 824 31 915 494 49 652 403 68 654 814 88 986 001 110 712 402 133 903 780 158 633 382 184 978 119 213 018 749 242 840 067 274 531 105 308 185 352 343 900 966 381 781 017 421 940 461 464 486 534 509 538 565 557 221 854 607 667 963 661 015 033 717 408 112 776 999 500 839 949 114
Net profit (loss) (333) 590 15 383 824 16 531 670 17 736 909 19 002 411 20 331 187 21 726 402 23 191 377 24 729 602 26 344 738 28 040 630 29 821 317 31 691 039 33 654 246 35 715 614 37 880 051 40 159 444 42 546 072 45 052 032 47 683 289 50 446 109 53 347 070 56 393 079 59 591 389 62 949 614 66 475 750
Total 3.3 ( 570580 590600) 610 15 383 824 31 915 494 49 652 403 68 654 814 88 986 001 110 712 402 133 903 780 158 633 382 184 978 119 213 018 749 242 840 067 274 531 105 308 185 352 343 900 966 381 781 017 421 940 461 464 486 534 509 538 565 557 221 854 607 667 963 661 015 033 717 408 112 776 999 500 839 949 114 906 424 864
TOTAL chapter 3 (520+560610640) 650 63 857 161 80 388 831 98 125 740 117 128 151 137 459 338 159 185 739 182 377 117 207 106 719 233 451 456 261 492 086 291 313 404 323 004 442 356 658 689 392 374 303 430 254 354 470 413 798 512 959 871 558 011 902 605 695 191 656 141 300 709 488 370 765 881 449 825 472 837 888 422 451 954 898 201
4.
4.1
Long termliabilities Financial
Long termliabilities Bank credits
(411,412)
660
Loans (413) 670 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770 153 739 770 135 739 770 116 739 770 96 739 770 71 739 770 41 739 770 6 739 770
Others (414) 680
Total 4.1 (660+670+680) 690 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770 153 739 770 135 739 770 116 739 770 96 739 770 71 739 770 41 739 770 6 739 770
4,2
Accounted Long termliabilities Lease
Long termliabilities (421)
700
Total 4.2 (700+710+720+ 730+740+750) 760
Total chapter 4 (690+760) 770 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770 153 739 770 135 739 770 116 739 770 96 739 770 71 739 770 41 739 770 6 739 770
5
5.1
Short termliabilities Financial
short termliabilities Bank credits
(511,512)
780
Loans (513) 790
Current share of long-termliabilities (514) 800
Total.5.1 (780+790+800+810) 820
5,2
Short termcommercial liabilities
Short termcommercial liabilities (521)
830 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000 152 000 163 000 171 150 179 708 188 693 198 128 208 034 218 436 229 357 240 825 252 866 265 510 278 785
Short termliabilities to related parties (522) 840
Total 5.2 (830+840+850) 860 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000 152 000 163 000 171 150 179 708 188 693 198 128 208 034 218 436 229 357 240 825 252 866 265 510 278 785
5,3
870
Others (539) 950
Total 5.3 (870+880+890+
900+910+920+930+940+950) 960
TOTAL chapter 5 (820+860+960) 970 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000 152 000 163 000 171 150 179 708 188 693 198 128 208 034 218 436 229 357 240 825 252 866 265 510 278 785
TOTAL LIABILITIES (650+770+970) 980 355 671 931 366 213 601 376 958 510 387 964 921 399 300 108 411 035 509 423 231 887 435 969 489 449 319 226 463 363 856 478 190 174 493 885 212 510 550 459 528 277 073 547 165 274 567 333 276 584 888 333 599 949 800 612 642 995 656 359 735 709 717 727 766 122 274 825 725 704 888 687 961 955 176 986
Annex 9. Calculation of investment efficiency
Investment recovery with discount of 30% from rental price
Indicators III year IV year V year VI year VII year VIII year IX year X year XI year XII year
Capital investment 321 272 000
Inputs Suprafaa, m.p. 30 557 412 32 085 283 33 689 547 35 374 024 37 142 725 38 999 861 40 949 855 42 997 347 45 147 215 47 404 575
Outputs 4 405 933 4 668 302 4 943 790 5 233 053 5 536 778 5 855 690 6 190 547 6 542 148 6 911 328 7 298 967
ratio of Actualization -321 272 000 26 151 479 27 416 980 28 745 756 30 140 971 31 605 947 33 144 171 34 759 307 36 455 200 38 235 887 40 105 608
Updated flow 10% 1,33 1,46 1,61 1,77 1,95 2,14 2,36 2,59 2,85 3,14
Treasury flow 19 647 993 18 726 166 17 848 853 17 013 792 16 218 848 15 462 001 14 741 339 14 055 058 13 401 445 12 778 883
Accumulated flow 0 -321 272 000 -259 372 377 -240 646 211 -222 797 358 -205 783 565 -189 564 717 -174 102 716 -159 361 377 -145 306 319 -131 904 874 -119 125 992
Period of Recoverability T 24,8 ani
Rates of Return IRR 10,1%
Profitability Index IP 1,01
Indicators XIII year XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
Inputs Suprafaa, m.p. 49 774 804 52 263 544 54 876 722 57 620 558 60 501 585 63 526 665 66 702 998 70 038 148 73 540 055 77 217 058 81 077 911 85 131 807 89 388 397
Outputs 7 705 988 8 133 361 8 582 101 9 046 544 9 540 944 10 060 064 10 605 140 11 177 470 11 778 416 12 409 410 13 071 953 13 767 623 14 498 077
ratio of Actualization -321 272 000 42 068 816 44 130 184 46 294 620 48 574 014 50 960 642 53 466 601 56 097 858 58 860 678 61 761 639 64 807 649 68 005 958 71 364 183 74 890 319
Updated flow 10% 3,45 3,80 4,18 4,59 5,05 5,56 6,12 6,73 7,40 8,14 8,95 9,85 10,83
Treasury flow 12 185 837 11 620 857 11 082 564 10 571 121 10 082 291 9 616 438 9 172 448 8 749 265 8 345 886 7 961 359 7 594 780 7 245 291 6 912 077
Accumulated flow 0 -321 272 000 -106 940 154 -95 319 298 -84 236 734 -73 665 613 -63 583 322 -53 966 883 -44 794 435 -36 045 171 -27 699 285 -19 737 926 -12 143 146 -4 897 855 2 014 222
Annex 10. Financial indicators
I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year XIII year
liquidity indicators
Liquidity Ratio (Coverage) 252 445 613 788 952 1 057 1 191 1 285 1 405 1 533 1 646 1 771 1 807
Intermediate Liquidity (Acid Test) 252 445 613 788 952 1 057 1 191 1 285 1 405 1 533 1 646 1 771 1 807
Immediate liquidity 150 277 381 520 613 666 735 778 835 894 943 996 1 000
Working capital (thousand, MDL) 18 798 37 745 56 896 76 313 96 059 116 200 136 806 157 950 179 709 202 164 225 400 249 506 274 575
financial stability
Capital Adequacy Ratio 18% 22% 26% 30% 34% 39% 43% 48% 52% 56% 61% 65% 70%
Leverage Ratio 4,57 3,56 2,84 2,31 1,90 1,58 1,32 1,11 0,92 0,77 0,64 0,53 0,43
Interest Coverage Ratio 888,12 907,35 925,67 943,11 959,73 975,55 990,62 1004,97 1018,64 1031,66 1044,06 1055,87 1067,11
Debt Service Ratio 3,25 3,04 2,71 2,87 2,28 2,14 2,02 1,93 1,86 1,80 1,75 1,71 1,68
debt service rate 4,76 4,16 3,74 3,43 3,19 3,01 2,87 2,76 2,67 2,60 2,55 2,51 2,47
turnover speed
Time of turnover of assets (days) 4 615 4 474 4 337 4 265 4 192 4 121 4 051 3 984 3 918 3 856 3 797 3 741 3 688
Time of turnover of long term assets (days) 4 491 4 236 3 994 3 718 3 459 3 215 2 986 2 771 2 570 2 381 2 203 2 037 1 882
Time of turnover of current assets 124 238 342 546 734 906 1 065 1 212 1 349 1 475 1 593 1 703 1 807
(days)
50 90 129 193 266 337 391 461 528 594 659 722 784
Time of turnover of loan debt (days) 0,49 0,53 0,56 0,99 1,02 1,06 1,06 1,07 1,08 1,07 1,08 1,07 1,08
Number of days per period, days 365 366 367 368 369 370 371 372 373 374 375 376 377
profitability
Investment Profitability 5% 5% 6% 6% 6% 7% 7% 8% 8% 9% 9% 10% 10%
Return On Equity (ROE) 27% 26% 24% 21% 19% 17% 15% 14% 13% 13% 12% 11% 11%
Return On Assets (ROA) 4% 5% 5% 5% 5% 6% 6% 6% 6% 6% 7% 7% 7%
Gross Margin (%) 67% 68% 70% 71% 72% 73% 74% 75% 76% 77% 78% 79% 80%
Net Profit Margin 56% 57% 58% 59% 60% 61% 62% 63% 64% 65% 66% 67% 68%
* Permanent Capital = Equity + Long Term Debt
Forecast
XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
Liquidity Ratio (Coverage) 1 846 1 917 1 985 2 028 2 050 2 054 2 195 2 360 2 516 2 666 2 808 2 943
Intermediate Liquidity (Acid Test) 1 846 1 917 1 985 2 028 2 050 2 054 2 195 2 360 2 516 2 666 2 808 2 943
Immediate liquidity 1 004 1 027 1 047 1 044 1 021 981 1 080 1 204 1 321 1 432 1 537 1 637
Working capital (thousand, MDL) 300 705 328 000 356 574 382 534 406 001 427 099 479 220 540 981 605 789 673 795 745 159 820 049
financial stability
Leverage Ratio 0,35 0,27 0,21 0,14 0,08 0,01 0,00 0,00 0,00 0,00 0,00 0,00
Interest Coverage Ratio 1077,82 1088,02 1097,91 1107,16 1115,97 1124,36 1132,35 1139,97 1147,21 1154,12 1160,69 1166,95
Debt Service Ratio 1,65 1,63 1,62 1,35 1,18 1,05 5,72
debt service rate 2,45 2,44 2,43 2,04 1,78 1,60 8,73
turnover speed
Time of turnover of assets (days) 3 640 3 595 3 554 3 505 3 449 3 388 3 403 3 428 3 446 3 537 3 642 3 745
Time of turnover of long termassets (days) 1 736 1 600 1 472 1 353 1 241 1 137 1 039 948 863 784 710 642
Time of turnover of current assets 1 904 1 995 2 082 2 152 2 208 2 251 2 363 2 480 2 583 2 753 2 932 3 104
Time of turnover of short-termreceivables
(days)
844 903 961 1 017 1 072 1 125 1 177 1 228 1 277 1 326 1 373 1 419
Time of turnover of loan debt (days) 1,08 1,08 1,09 1,11 1,11 1,11 1,12 1,12 1,12 1,12 1,13 1,13
Number of days per period, days 378 379 380 381 382 383 384 385 386 387 388 389
profitability
Investment Profitability 11% 12% 13% 13% 14% 15% 16% 17% 18% 19% 20% 21%
Return On Equity (ROE) 10% 10% 10% 9% 9% 9% 9% 8% 8% 8% 8% 8%
Return On Assets (ROA) 7% 7% 7% 8% 8% 8% 8% 8% 8% 8% 8% 8%
Gross Margin (%) 81% 82% 82% 83% 84% 84% 85% 86% 86% 87% 87% 88%
Net Profit Margin 68% 69% 70% 70% 71% 71% 72% 73% 73% 73% 74% 74%
* Permanent Capital = Equity + Long TermDebt
Forecast
Anexa 11 Calculation of wear
Calculation of wear
Depreciation ratio Residual value
Value of annual
depreciation
(%) lei lei
Fixed assets have received by the
administrative Enterprise at their net value
3% 8 630 328 8 414 569
Total 3% 8 630 328 8 414 569
Investment recovery without discount of 30% from rental price
Outputs 5 404 797 5 717 110 6 045 038 6 389 363 6 750 904 7 130 522 7 529 121 7 947 650 8 387 105 8 848 534
Updated flow 10% 1,33 1,46 1,61 1,77 1,95 2,14 2,36 2,59 2,85 3,14
Treasury flow 26 402 147 25 173 313 24 002 948 22 888 156 21 826 195 20 814 468 19 850 513 18 931 996 18 056 704 17 222 539
Outputs 9 333 033 9 841 758 10 375 918 10 930 051 11 518 627 12 136 631 12 785 535 13 466 885 14 182 302 14 933 490 15 722 237 16 550 422 17 420 016
Updated flow 10% 3,45 3,80 4,18 4,59 5,05 5,56 6,12 6,73 7,40 8,14 8,95 9,85 10,83
Treasury flow 16 427 510 15 669 726 14 947 393 14 260 276 13 603 758 12 977 838 12 381 057 11 812 028 11 269 432 10 752 017 10 258 590 9 788 019 9 339 226
Accumulated flow 0 -321 272 000 -32 935 378 -17 265 652 -2 318 259 11 942 018 25 545 775 38 523 613 50 904 670 62 716 698 73 986 130 84 738 147 94 996 737 104 784 756 114 123 982
Anenx 2. Investment structure
Own Attracted
MDL MDL MDL
Reparation of active spaces: 17 565 53 397 600 53 397 600
construction 33 724 800 33 724 800
Reparation of non-active spaces: 22 491 111 330 450 111 330 450
construction 87 220 100 87 220 100
Demolition of Buildings 3 613 5 202 720 5 202 720
New buildings - offices, with conference room and cantine 1 500 12 751 500 12 751 500
construction 10 327 500 10 327 500
New construction - boiler room, storage and industrial spaces 13 000 104 013 000 104 013 000
Construction of external networks with water, sewer, gas, electricity
connection in the main points
1 794 500 1 794 500
Roads and parking 15 000 8 250 000 8 250 000
Other expenses according to the estimate 24 532 230 24 532 230
Total, amount 321 272 000 24 532 230 296 739 770
Total, % 100% 8% 92%
Resources
Investment item
Space
(sq.m.)
in 2 levels
total amont
Type of activity Space (sq.m.)
Pai = Tb x
(1 + K1 + K2
+ K3) x K4 x
S,
K2 K3 K4 S,
Discount
accord. to
law*
Production and storage 82 675 m2 480 lei/m2 0,50 0,56 1,50 1,00 25%
Forging and foundry 3 872 m2 489 lei/m2 0,50 0,56 1,50 1,00 25%
Roads and parking 1 500 m2 489 lei/m2 0,50 0,56 1,50 1,00 25%
II. Administrative space 1 500 m2 669 lei 0,50 1,50 1,50 1,00 30%
Space for leasing:
I. Production, storage, parking: 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2
Production and storage 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2
II. Administrative space 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2
Rental price:
Production and storage 360 lei/m2 378 lei/m2 437 lei/m2 459 lei/m2 482 lei/m2 506 lei/m2 532 lei/m2 558 lei/m2 586 lei/m2 615 lei/m2
Forging and foundry 367 lei/m2 385 lei/m2 446 lei/m2 468 lei/m2 492 lei/m2 516 lei/m2 542 lei/m2 569 lei/m2 598 lei/m2 628 lei/m2
Roads and parking 367 lei/m2 385 lei/m2 446 lei/m2 468 lei/m2 492 lei/m2 516 lei/m2 542 lei/m2 569 lei/m2 598 lei/m2 628 lei/m2
II. Administrative space 468 lei 492 lei 569 lei 598 lei 627 lei 659 lei 692 lei 726 lei 763 lei 801 lei
Staffing 25 25 25 25 25 25 25 25 25 25
Average salary per month 3 500 lei 3 675 lei 4 254 lei 4 467 lei 4 690 lei 4 925 lei 5 171 lei 5 430 lei 5 701 lei 5 986 lei
Production, storage, parking 31 713 031 33 298 683 38 547 388 40 474 757 42 498 495 44 623 420 46 854 591 49 197 320 51 657 186 54 240 045
Production and storage 29 741 980 31 229 079 36 151 562 37 959 141 39 857 098 41 849 952 43 942 450 46 139 573 48 446 551 50 868 879
Forging and foundry 1 420 683 1 491 717 1 726 849 1 813 192 1 903 851 1 999 044 2 098 996 2 203 946 2 314 143 2 429 851
Roads and parking 550 368 577 886 668 976 702 425 737 546 774 423 813 144 853 801 896 491 941 316
Administrative space 702 293 737 407 853 641 896 323 941 139 988 196 1 037 606 1 089 486 1 143 960 1 201 159
Annual income, lei 32 415 324 34 036 090 39 401 028 41 371 080 43 439 634 45 611 616 47 892 196 50 286 806 52 801 147 55 441 204
Space for leasing:
I. Production, storage, parking: 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2
Production and storage 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2
Forging and foundry 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2
Roads and parking 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2
II. Administrative space 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2
Rental price:
Production and storage 360 lei/m2 378 lei/m2 437 lei/m2 459 lei/m2 482 lei/m2 506 lei/m2 532 lei/m2 558 lei/m2 586 lei/m2 615 lei/m2 646 lei/m2 678 lei/m2 712 lei/m2
Forging and foundry 367 lei/m2 385 lei/m2 446 lei/m2 468 lei/m2 492 lei/m2 516 lei/m2 542 lei/m2 569 lei/m2 598 lei/m2 628 lei/m2 659 lei/m2 692 lei/m2 726 lei/m2
Roads and parking 367 lei/m2 385 lei/m2 446 lei/m2 468 lei/m2 492 lei/m2 516 lei/m2 542 lei/m2 569 lei/m2 598 lei/m2 628 lei/m2 659 lei/m2 692 lei/m2 726 lei/m2
II. Administration space: 468 lei 492 lei 569 lei 598 lei 627 lei 659 lei 692 lei 726 lei 763 lei 801 lei 841 lei 883 lei 927 lei
Staffing 25 25 25 25 25 25 25 25 25 25 25 25 25
Average salary per month 3 500 lei 3 675 lei 4 254 lei 4 467 lei 4 690 lei 4 925 lei 5 171 lei 5 430 lei 5 701 lei 5 986 lei 6 285 lei 6 600 lei 6 930 lei
Production, storage, parking 31 713 031 33 298 683 38 547 388 40 474 757 42 498 495 44 623 420 46 854 591 49 197 320 51 657 186 54 240 045 56 952 048 59 799 650 62 789 632
Roads and parking 550 368 577 886 668 976 702 425 737 546 774 423 813 144 853 801 896 491 941 316 988 382 1 037 801 1 089 691
Administrative space 702 293 737 407 853 641 896 323 941 139 988 196 1 037 606 1 089 486 1 143 960 1 201 159 1 261 216 1 324 277 1 390 491
Annual income, lei 32 415 324 34 036 090 39 401 028 41 371 080 43 439 634 45 611 616 47 892 196 50 286 806 52 801 147 55 441 204 58 213 264 61 123 927 64 180 124
88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2 88 047 m2
82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2 82 675 m2
3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2 3 872 m2
1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2
1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2 1 500 m2
973 lei 1 022 lei 1 073 lei 1 127 lei 1 183 lei 1 242 lei 1 304 lei 1 370 lei 1 438 lei 1 510 lei
25 25 25 25 25 25 25 25 25 25
7 276 lei 7 640 lei 8 022 lei 8 423 lei 8 844 lei 9 287 lei 9 751 lei 10 238 lei 10 750 lei 11 288 lei
65 929 114 69 225 570 72 686 848 76 321 191 80 137 250 84 144 113 88 351 318 92 768 884 97 407 329 102 277 695
61 831 440 64 923 012 68 169 163 71 577 621 75 156 502 78 914 327 82 860 043 87 003 045 91 353 198 95 920 858
2 953 498 3 101 173 3 256 232 3 419 044 3 589 996 3 769 496 3 957 970 4 155 869 4 363 662 4 581 846
1 144 176 1 201 384 1 261 454 1 324 526 1 390 753 1 460 290 1 533 305 1 609 970 1 690 468 1 774 992
1 460 016 1 533 016 1 609 667 1 690 151 1 774 658 1 863 391 1 956 561 2 054 389 2 157 108 2 264 964
67 389 130 70 758 586 74 296 516 78 011 341 81 911 908 86 007 504 90 307 879 94 823 273 99 564 437 104 542 658
amount amount amount amount amount amount amount amount amount amount amount amount
A C D E F G G G G G G
1. Income from basic services
Rental spaces: 31 713 031 33 298 683 34 963 617 36 711 798 38 547 388 40 474 757 42 498 495 44 623 420 46 854 591 49 197 320 51 657 186 54 240 045
Production and storage 29 741 980 31 229 079 32 790 533 34 430 059 36 151 562 37 959 141 39 857 098 41 849 952 43 942 450 46 139 573 48 446 551 50 868 879
Forging and foundry 1 420 683 1 491 717 1 566 303 1 644 618 1 726 849 1 813 192 1 903 851 1 999 044 2 098 996 2 203 946 2 314 143 2 429 851
Roads and parking 550 368 577 886 606 781 637 120 668 976 702 425 737 546 774 423 813 144 853 801 896 491 941 316
Administrative spaces rental 702 293 737 407 774 277 812 991 853 641 896 323 941 139 988 196 1 037 606 1 089 486 1 143 960 1 201 159
subtotal 32 415 324 34 036 090 35 737 894 37 524 789 39 401 028 41 371 080 43 439 634 45 611 616 47 892 196 50 286 806 52 801 147 55 441 204
Consulting 760 000 798 000 837 900 879 795 923 785 969 974 1 018 473 1 069 396 1 122 866 1 179 009 1 237 960 1 299 858
subtotal 760 000 798 000 837 900 879 795 923 785 969 974 1 018 473 1 069 396 1 122 866 1 179 009 1 237 960 1 299 858
Total operational income 33 175 324 34 834 090 36 575 794 38 404 584 40 324 813 42 341 054 44 458 107 46 681 012 49 015 063 51 465 816 54 039 106 56 741 062
VAT from sales 5 458 850 5 731 793 6 018 382 6 319 302 6 635 267 6 967 030 7 315 381 7 681 150 8 065 208 8 468 468 8 891 892 9 336 486
Net sales 27 716 473 29 102 297 30 557 412 32 085 283 33 689 547 35 374 024 37 142 725 38 999 861 40 949 855 42 997 347 45 147 215 47 404 575
amount amount amount amount amount amount amount amount amount amount amount amount amount
A
1. Income from the provision of basic services
Rental spaces, such as: 56 952 048 59 799 650 62 789 632 65 929 114 69 225 570 72 686 848 76 321 191 80 137 250 84 144 113 88 351 318 92 768 884 97 407 329 102 277 695
Roads and parking 988 382 1 037 801 1 089 691 1 144 176 1 201 384 1 261 454 1 324 526 1 390 753 1 460 290 1 533 305 1 609 970 1 690 468 1 774 992
Administrative spaces rental 1 261 216 1 324 277 1 390 491 1 460 016 1 533 016 1 609 667 1 690 151 1 774 658 1 863 391 1 956 561 2 054 389 2 157 108 2 264 964
subtotal 58 213 264 61 123 927 64 180 124 67 389 130 70 758 586 74 296 516 78 011 341 81 911 908 86 007 504 90 307 879 94 823 273 99 564 437 104 542 658
Consulting 1 364 851 1 433 093 1 504 748 1 579 985 1 658 985 1 741 934 1 829 031 1 920 482 2 016 506 2 117 332 2 223 198 2 334 358 2 451 076
subtotal 1 364 851 1 433 093 1 504 748 1 579 985 1 658 985 1 741 934 1 829 031 1 920 482 2 016 506 2 117 332 2 223 198 2 334 358 2 451 076
Total operational income 59 578 115 62 557 021 65 684 872 68 969 115 72 417 571 76 038 449 79 840 372 83 832 391 88 024 010 92 425 211 97 046 471 101 898 795 106 993 734
VAT from sales 9 803 311 10 293 476 10 808 150 11 348 558 11 915 985 12 511 785 13 137 374 13 794 243 14 483 955 15 208 153 15 968 560 16 766 988 17 605 338
Net sales 49 774 804 52 263 544 54 876 722 57 620 558 60 501 585 63 526 665 66 702 998 70 038 148 73 540 055 77 217 058 81 077 911 85 131 807 89 388 397
Indirect consumptions Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
Taxes 150 000 157 500 165 375 173 644 182 326 191 442 201 014 211 065 221 618 232 699 244 334 256 551
Reparation and maintenance of fixed assets 800 000 840 000 882 000 926 100 972 405 1 021 025 1 072 077 1 125 680 1 181 964 1 241 063 1 303 116 1 368 271
Fixed assets depreciation 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569
Total indirect consumptions 9 368 169 9 415 849 9 465 913 9 518 481 9 573 676 9 631 632 9 692 485 9 756 380 9 823 471 9 893 916 9 967 883 10 045 549
Managing expenses Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
A B C D E F G G G G G G G
1.Commercial expenses
Marketing, promotion 65 000 68 250 71 663 75 246 79 008 82 958 87 106 91 462 96 035 100 836 105 878 111 172
Other expenses 15 200 15 960 16 758 17 596 18 476 19 399 20 369 21 388 22 457 23 580 24 759 25 997
subtotal 80 200 84 210 88 421 92 842 97 484 102 358 107 476 112 849 118 492 124 417 130 637 137 169
Salary + social insurance 1 050 000 1 102 500 1 157 625 1 215 506 1 276 282 1 340 096 1 407 100 1 477 455 1 551 328 1 628 895 1 710 339 1 795 856
Transportation 100 000 105 000 110 250 115 763 121 551 127 628 134 010 140 710 147 746 155 133 162 889 171 034
Banking and telephone expenses 50 000 52 500 55 125 57 881 60 775 63 814 67 005 70 355 73 873 77 566 81 445 85 517
Administrative mainenance 20 000 21 000 22 050 23 153 24 310 25 526 26 802 28 142 29 549 31 027 32 578 34 207
Taxes 55 000 57 750 60 638 63 669 66 853 70 195 73 705 77 391 81 260 85 323 89 589 94 069
Other General and administrative expenses 65 000 68 250 71 663 75 246 79 008 82 958 87 106 91 462 96 035 100 836 105 878 111 172
subtotal 1 340 000 1 407 000 1 477 350 1 551 218 1 628 778 1 710 217 1 795 728 1 885 515 1 979 790 2 078 780 2 182 719 2 291 855
Other operational expenses 25 000 26 250 27 563 28 941 30 388 31 907 33 502 35 178 36 936 38 783 40 722 42 758
subtotal 25 000 26 250 27 563 28 941 30 388 31 907 33 502 35 178 36 936 38 783 40 722 42 758
Total Operational expenses 1 445 200 1 517 460 1 593 333 1 673 000 1 756 650 1 844 482 1 936 706 2 033 542 2 135 219 2 241 980 2 354 079 2 471 782
Total expenses 10 813 369 10 933 309 11 059 246 11 191 480 11 330 326 11 476 114 11 629 191 11 789 922 11 958 690 12 135 896 12 321 962 12 517 332
Indirect consumptions Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont
Taxes 269 378 282 847 296 990 311 839 327 431 343 803 360 993 379 043 397 995 417 894 438 789 460 729 483 765
Reparation and maintenance of fixed assets 1 436 685 1 508 519 1 583 945 1 663 143 1 746 300 1 833 615 1 925 295 2 021 560 2 122 638 2 228 770 2 340 209 2 457 219 2 580 080
Fixed assets depreciation 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569 8 414 569
Total indirect consumptions #! #! #! 10 389 551 10 488 300 10 591 987 10 700 858 10 815 172 10 935 202 11 061 234 11 193 567 11 332 517 11 478 414
Managing expenses Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont Amont
A G G G
1. Commercial expenses
Marketing, promotion 116 731 122 567 128 696 135 130 141 887 148 981 156 430 164 252 172 464 181 088 190 142 199 649 209 631
Other expenses 27 297 28 662 30 095 31 600 33 180 34 839 36 581 38 410 40 330 42 347 44 464 46 687 49 022
subtotal 144 028 151 229 158 791 166 730 175 067 183 820 193 011 202 661 212 794 223 434 234 606 246 336 258 653
Salary + social insurance 1 885 649 1 979 932 2 078 928 2 182 875 2 292 018 2 406 619 2 526 950 2 653 298 2 785 963 2 925 261 3 071 524 3 225 100 3 386 355
Transportation 179 586 188 565 197 993 207 893 218 287 229 202 240 662 252 695 265 330 278 596 292 526 307 152 322 510
Banking and telephone expenses 89 793 94 282 98 997 103 946 109 144 114 601 120 331 126 348 132 665 139 298 146 263 153 576 161 255
Administrative mainenance 35 917 37 713 39 599 41 579 43 657 45 840 48 132 50 539 53 066 55 719 58 505 61 430 64 502
Taxes 98 772 103 711 108 896 114 341 120 058 126 061 132 364 138 982 145 931 153 228 160 889 168 934 177 380
Other General and administrative expenses 116 731 122 567 128 696 135 130 141 887 148 981 156 430 164 252 172 464 181 088 190 142 199 649 209 631
subtotal 2 406 447 2 526 770 2 653 108 2 785 764 2 925 052 3 071 305 3 224 870 3 386 113 3 555 419 3 733 190 3 919 849 4 115 842 4 321 634
3. Other operational expenses
Other operational expenses 44 896 47 141 49 498 51 973 54 572 57 300 60 165 63 174 66 332 69 649 73 132 76 788 80 627
subtotal 44 896 47 141 49 498 51 973 54 572 57 300 60 165 63 174 66 332 69 649 73 132 76 788 80 627
Total Operational expenses 2 595 372 2 725 140 2 861 397 3 004 467 3 154 690 3 312 425 3 478 046 3 651 948 3 834 546 4 026 273 4 227 587 4 438 966 4 660 914
Total expenses #! #! #! 13 394 018 13 642 991 13 904 412 14 178 904 14 467 121 14 769 748 15 087 507 15 421 154 15 771 483 16 139 329
Total Total Total Total Total Total Total Total Total Total Total Total
I year II year I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year
A Cash earnings
Earnings fromsales
earnings from space leasing 30 794 557 32 334 285 33 909 105 39 401 028 37 430 977 39 302 526 41 267 652 43 331 035 45 497 587 47 772 466 50 161 089 52 669 144
earnings from additional services 722 000 758 100 796 005 923 785 877 596 921 475 967 549 1 015 927 1 066 723 1 120 059 1 176 062 1 234 865
earnings from debt 1 658 766 1 741 704 1 828 790 1 920 229 2 016 241 2 117 053 2 222 905 2 334 051 2 450 753 2 573 291 2 701 955
other earnings
Total earnings 31 516 557 34 751 152 36 446 814 42 153 603 40 228 802 42 240 242 44 352 254 46 569 867 48 898 360 51 343 278 53 910 442 56 605 964
B Cash payments
Payments to suppliers and contractors 1 068 800 1 115 990 1 168 040 1 227 091 1 289 296 1 349 811 1 417 801 1 486 441 1 561 914 1 642 409 1 726 130 1 815 286
Salary and social insrance payments 1 050 000 1 102 500 1 157 625 1 215 506 1 276 282 1 340 096 1 407 100 1 477 455 1 551 328 1 628 895 1 710 339 1 795 856
Interest payments
Payment of income tax 1 709 314 1 836 852 1 970 768 2 111 379 2 259 021 2 414 045 2 576 820 2 747 734 2 927 193 3 115 626 3 313 480 3 521 227
Other payments (including VAT) 5 279 626 5 821 110 6 105 808 7 058 398 6 739 096 7 076 710 7 430 462 7 802 360 8 192 286 8 601 500 9 031 309 9 482 399
Total payments 9 107 740 9 876 453 10 402 240 11 612 375 11 563 695 12 180 661 12 832 183 13 513 990 14 232 721 14 988 430 15 781 257 16 614 768
NET FLOWfromOPERATIONAL ACTIVITY 22 408 817 24 874 699 26 044 574 30 541 228 28 665 107 30 059 581 31 520 071 33 055 876 34 665 639 36 354 848 38 129 184 39 991 196
Payments for purchase of long termassets 24 532 230 296 739 770
Payments for purchase of preparatory term 24 532 230
Payments for demolition work 5 202 720
Payments for reparation work 164 728 050
Payments for new objects construction 116 764 500
Payments for exterior construction of Networks 1 794 500
Payments for building of roads and parking lots 8 250 000
Interest received
Dividends received
Other
NET FLOWfromINVESTMENT ACTIVITY -24 532 230 -296 739 770
Earnings fromloans and credits 296 739 770
Earnings fromthe issue of own shares 24 532 230
Others
Sub-total 24 532 230 296 739 770
E Payments for loans and credits 5 000 000 6 000 000 7 000 000 8 000 000 9 000 000 10 000 000 11 000 000 12 000 000 13 000 000 14 000 000 15 000 000 16 000 000
Dividend payments 6 153 529 6 612 668 7 094 764 7 600 964 8 132 475 8 690 561 9 276 551 9 891 841 10 537 895 11 216 252 11 928 527 12 676 416
Others
Sub-total 11 153 529 12 612 668 14 094 764 15 600 964 17 132 475 18 690 561 20 276 551 21 891 841 23 537 895 25 216 252 26 928 527 28 676 416
NET FLOWfrom FINANCIAL ACTIVITY 24 532 230 296 739 770 (11 153 529) (12 612 668) (14 094 764) (15 600 964) (17 132 475) (18 690 561) (20 276 551) (21 891 841) (23 537 895) (25 216 252) (26 928 527) (28 676 416)
NET FLOWfromeconomic activity 11 255 288 12 262 031 11 949 810 14 940 264 11 532 632 11 369 021 11 243 520 11 164 036 11 127 744 11 138 596 11 200 657 11 314 780
H TOTAL NET FLOW 11 255 288 12 262 031 11 949 810 14 940 264 11 532 632 11 369 021 11 243 520 11 164 036 11 127 744 11 138 596 11 200 657 11 314 780
I Cash balance at the beginning of the period 11 255 288 23 517 319 35 467 129 50 407 392 61 940 025 73 309 045 84 552 565 95 716 601 106 844 345 117 982 941 129 183 598
J Cash balance at the end of the period 11 255 288 23 517 319 35 467 129 50 407 392 61 940 025 73 309 045 84 552 565 95 716 601 106 844 345 117 982 941 129 183 598 140 498 379
Investment Period
Total Total Total Total Total Total Total Total Total Total Total Total Total
A Cash earnings
Earnings fromsales
earnings from space leasing 55 302 601 58 067 731 60 971 117 64 019 673 67 220 657 70 581 690 74 110 774 77 816 313 81 707 129 85 792 485 90 082 109 94 586 215 99 315 526
earnings from additional services 1 296 608 1 361 439 1 429 511 1 500 986 1 576 035 1 654 837 1 737 579 1 824 458 1 915 681 2 011 465 2 112 038 2 217 640 2 328 522
earnings from debt 2 837 053 2 978 906 3 127 851 3 284 244 3 448 456 3 620 879 3 801 922 3 992 019 4 191 620 4 401 201 4 621 261 4 852 324 5 094 940
other earnings
Total earnings 59 436 262 62 408 075 65 528 479 68 804 903 72 245 148 75 857 406 79 650 276 83 632 790 87 814 429 92 205 151 96 815 408 101 656 179 106 738 987
B Cash payments
Payments to suppliers and contractors 1 902 100 1 993 805 2 093 496 2 190 686 2 300 221 2 415 232 2 535 993 2 662 793 2 795 933 2 935 729 3 082 516 3 236 642 3 398 474
Salary and social insrance payments 1 885 649 1 979 932 2 078 928 2 182 875 2 292 018 2 406 619 2 526 950 2 653 298 2 785 963 2 925 261 3 071 524 3 225 100 3 386 355
Interest payments
Payment of income tax 3 739 361 3 968 402 4 208 895 4 462 160 4 727 341 5 005 781 5 298 143 5 605 123 5 927 452 6 265 898 6 621 265 6 994 402 7 386 194
Other payments (including VAT) 9 957 177 10 455 603 10 978 383 11 528 550 12 104 977 12 710 226 13 345 737 14 013 024 14 713 675 15 449 359 16 221 827 17 032 919 17 884 564
Total payments 17 484 288 18 397 742 19 359 702 20 364 271 21 424 558 22 537 858 23 706 824 24 934 238 26 223 023 27 576 247 28 997 132 30 489 062 32 055 587
NET FLOWfrom OPERATIONAL ACTIVITY 41 951 974 44 010 334 46 168 777 48 440 632 50 820 591 53 319 547 55 943 452 58 698 551 61 591 406 64 628 904 67 818 276 71 167 117 74 683 400
Payments for purchase of long termassets
Payments for purchase of preparatory term
Payments for demolition work
Payments for reparation work
Payments for newobjects construction
Payments for exterior construction of Networks
Payments for building of roads and parking lots
Interest received
Dividends received
Other
NET FLOWfrom INVESTMENT ACTIVITY
Earnings fromloans and credits
Earnings fromthe issue of own shares
Others
Sub-total
E Payments for loans and credits 17 000 000 18 000 000 19 000 000 20 000 000 25 000 000 30 000 000 35 000 000 6 739 770
Dividend payments 13 461 699 14 286 246 15 152 020 16 063 778 17 018 429 18 020 813 19 073 316 20 178 444 21 338 828 22 557 232 23 836 555 25 179 845 26 590 300
Others
Sub-total 30 461 699 32 286 246 34 152 020 36 063 778 42 018 429 48 020 813 54 073 316 26 918 214 21 338 828 22 557 232 23 836 555 25 179 845 26 590 300
NET FLOWfrom FINANCIAL ACTIVITY (30 461 699) (32 286 246) (34 152 020) (36 063 778) (42 018 429) (48 020 813) (54 073 316) (26 918 214) (21 338 828) (22 557 232) (23 836 555) (25 179 845) (26 590 300)
NET FLOWfrom economic activity 11 490 276 11 724 088 12 016 757 12 376 854 8 802 162 5 298 735 1 870 136 31 780 338 40 252 578 42 071 672 43 981 721 45 987 271 48 093 100
H TOTAL NET FLOW 11 490 276 11 724 088 12 016 757 12 376 854 8 802 162 5 298 735 1 870 136 31 780 338 40 252 578 42 071 672 43 981 721 45 987 271 48 093 100
I Cash balance at the beginning of the period 140 498 379 151 988 654 163 712 742 175 729 499 188 106 353 196 908 515 202 207 250 204 077 386 235 857 724 276 110 302 318 181 974 362 163 695 408 150 966
J Cash balance at the end of the period 151 988 654 163 712 742 175 729 499 188 106 353 196 908 515 202 207 250 204 077 386 235 857 724 276 110 302 318 181 974 362 163 695 408 150 966 456 244 066
Indicators
No row
1. Net sales 01 27 716 473 29 102 297 30 557 412 32 085 283 33 689 547 35 374 024 37 142 725 38 999 861 40 949 855 42 997 347 45 147 215 47 404 575
2. Cost of sales 02 9 234 836 9 275 849 9 318 913 9 364 131 9 411 609 9 461 461 9 513 805 9 568 767 9 626 477 9 687 072 9 750 697 9 817 504
3. Gross Profit 03 18 481 637 19 826 448 21 238 498 22 721 152 24 277 938 25 912 563 27 628 920 29 431 094 31 323 378 33 310 275 35 396 517 37 587 071
5.Commercial expenses 05 66 833 70 175 73 684 77 368 81 236 85 298 89 563 94 041 98 743 103 680 108 864 114 308
6. General & administrative expenses 06 1 300 833 1 365 875 1 434 169 1 505 877 1 581 171 1 660 230 1 743 241 1 830 403 1 921 923 2 018 019 2 118 920 2 224 866
7.Other operational expenses 07 20 833 21 875 22 969 24 117 25 323 26 589 27 919 29 315 30 780 32 319 33 935 35 632
8. Results from operating activities (3+4-5-6-7) 08 17 093 137 18 368 523 19 707 677 21 113 790 22 590 207 24 140 446 25 768 197 27 477 335 29 271 931 31 156 256 33 134 797 35 212 265
10. Results from financial activity 10
11.Results of financial and economic activity (8+9+10) 11 17 093 137 18 368 523 19 707 677 21 113 790 22 590 207 24 140 446 25 768 197 27 477 335 29 271 931 31 156 256 33 134 797 35 212 265
12.Results from exceptional activity 12
13.Profit before taxes (11+12) 13 17 093 137 18 368 523 19 707 677 21 113 790 22 590 207 24 140 446 25 768 197 27 477 335 29 271 931 31 156 256 33 134 797 35 212 265
14.Income tax 14 1 709 314 1 836 852 1 970 768 2 111 379 2 259 021 2 414 045 2 576 820 2 747 734 2 927 193 3 115 626 3 313 480 3 521 227
15.Net profit (13+14) 15 15 383 824 16 531 670 17 736 909 19 002 411 20 331 187 21 726 402 23 191 377 24 729 602 26 344 738 28 040 630 29 821 317 31 691 039
Indicatorii Cod. rnd XIII year XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
1. Net sales 01 49 774 804 52 263 544 54 876 722 57 620 558 60 501 585 63 526 665 66 702 998 70 038 148 73 540 055 77 217 058 81 077 911 85 131 807 89 388 397
2. Cost of sales 02 9 887 651 9 961 305 10 038 641 10 112 361 10 197 250 10 286 384 10 379 975 10 478 245 10 581 429 10 689 772 10 803 532 10 922 981 11 048 401
3. Gross Profit 03 39 887 154 42 302 240 44 838 080 47 508 197 50 304 335 53 240 280 56 323 023 59 559 902 62 958 626 66 527 286 70 274 379 74 208 826 78 339 996
5.Commercial expenses 05 120 023 126 024 132 325 138 942 145 889 153 183 160 842 168 885 177 329 186 195 195 505 205 280 215 544
6. General & administrative expenses
06 2 336 110 2 452 915 2 575 561 2 704 339 2 839 556 2 981 534 3 130 611 3 287 141 3 451 498 3 624 073 3 805 277 3 995 540 4 195 318
07 37 414 39 284 41 249 43 311 45 477 47 750 50 138 52 645 55 277 58 041 60 943 63 990 67 190
8. Results from operating activities (3+4-5-6-7)
08 37 393 607 39 684 016 42 088 945 44 621 605 47 273 414 50 057 813 52 981 432 56 051 232 59 274 522 62 658 977 66 212 654 69 944 015 73 861 944
10. Results from financial activity
10
11.Results of financial and economic activity (8+9+10)
11 37 393 607 39 684 016 42 088 945 44 621 605 47 273 414 50 057 813 52 981 432 56 051 232 59 274 522 62 658 977 66 212 654 69 944 015 73 861 944
12.Results from exceptional activity
12
13.Profit before taxes (11+12)
13 37 393 607 39 684 016 42 088 945 44 621 605 47 273 414 50 057 813 52 981 432 56 051 232 59 274 522 62 658 977 66 212 654 69 944 015 73 861 944
14.Income tax
14 3 739 361 3 968 402 4 208 895 4 462 160 4 727 341 5 005 781 5 298 143 5 605 123 5 927 452 6 265 898 6 621 265 6 994 402 7 386 194
15.Net profit (13+14) 15 33 654 246 35 715 614 37 880 051 40 159 444 42 546 072 45 052 032 47 683 289 50 446 109 53 347 070 56 393 079 59 591 389 62 949 614 66 475 750
ASSETS No I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year
1 2 3 8 9 10 11 12 13 14 15 16 17 18 19
1
1.1
Long-Term Assets Intangible
(111,112) 010
- - - - - -
Intangible assets ( 010-020) 030 - - - - - - - - - - - -
1,2
Long-Term material Assets

Land(122) 050
Fixed assets (123) 060 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107
Depreciation of fixed assets (124,126) 080 (8 414 569) (16 829 139) (25 243 708) (33 658 278) (42 072 847) (50 487 417) (58 901 986) (67 316 556) (75 731 125) (84 145 695) (92 560 264) (100 974 834)
Long-Term material Assets (040+050+ 060+070-
080) 090
336 798 538 328 383 968 319 969 399 311 554 829 303 140 260 294 725 690 286 311 121 277 896 551 269 481 982 261 067 412 252 652 843 244 238 273
Total chapter 1 (030+090+160+170) 180 336 798 538 328 383 968 319 969 399 311 554 829 303 140 260 294 725 690 286 311 121 277 896 551 269 481 982 261 067 412 252 652 843 244 238 273
Materials (211) 190
- -
Finished goods (216) 230 - - - - - - - -
Total 2.1 (190+200+210 + +220+140+150) 250 - - - - - - - - - - - -
2,2
receivable fromcustomers (221) 260
7 618 105 14 312 314 21 521 983 26 002 699 34 219 823 43 000 774 52 368 201 62 356 337 72 992 900 84 313 503 96 353 733 109 148 561
Total 2.2 (260-270+280+ 290+300+310+320+
330+340) 350
7 618 105 14 312 314 21 521 983 26 002 699 34 219 823 43 000 774 52 368 201 62 356 337 72 992 900 84 313 503 96 353 733 109 148 561
2,4
Cash Cash (241)
400
1 125 529 2 351 732 3 546 713 5 040 739 6 194 002 7 330 905 8 455 257 9 571 660 10 684 434 11 798 294 12 918 360 14 049 838
Current accounts in local currency(242) 410 10 129 759 21 165 587 31 920 416 45 366 653 55 746 022 65 978 141 76 097 309 86 144 941 96 159 910 106 184 647 116 265 238 126 448 541
Other cash (244, 245, 246) 430
Total 2.4 (400+410+ 420+430) 440 11 255 288 23 517 319 35 467 129 50 407 392 61 940 025 73 309 045 84 552 565 95 716 601 106 844 345 117 982 941 129 183 598 140 498 379
TOTAL chapter 2 (250+ 350+390+440+450) 460 18 873 393 37 829 633 56 989 112 76 410 092 96 159 848 116 309 819 136 920 766 158 072 938 179 837 245 202 296 444 225 537 331 249 646 939
TOTAL ASSETS (180+460) 470 355 671 931 366 213 601 376 958 510 387 964 921 399 300 108 411 035 509 423 231 887 435 969 489 449 319 226 463 363 856 478 190 174 493 885 212
LIABILITIES No I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year
1 2 3 8 9 10 11 12 13 14 15 16 17 18 19
3 3.1 EQUITY Share and
(311) 480
48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337
Total.3.1 (480+490-500-510) 520 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337
3,3 Profit and loss surplus (331) 570
years (332)
580 15 383 824 31 915 494 49 652 403 68 654 814 88 986 001 110 712 402 133 903 780 158 633 382 184 978 119 213 018 749 242 840 067
Net profit (loss) (333) 590 15 383 824 16 531 670 17 736 909 19 002 411 20 331 187 21 726 402 23 191 377 24 729 602 26 344 738 28 040 630 29 821 317 31 691 039
Total 3.3 ( 570580 590600) 610 15 383 824 31 915 494 49 652 403 68 654 814 88 986 001 110 712 402 133 903 780 158 633 382 184 978 119 213 018 749 242 840 067 274 531 105
TOTAL chapter 3 (520+560610640) 650 63 857 161 80 388 831 98 125 740 117 128 151 137 459 338 159 185 739 182 377 117 207 106 719 233 451 456 261 492 086 291 313 404 323 004 442
4. 4.1 Long term liabilities Financial
Long term liabilities Bank credits
(411,412)
660
Loans (413) 670 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770
Others (414) 680
Total 4.1 (660+670+680) 690 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770
4,2
Accounted Long term liabilities Lease
Long term liabilities (421)
700
Total 4.2 (700+710+720+ 730+740+750) 760
Total chapter 4 (690+760) 770 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770
5 5.1 Short term liabilities Financial
short term liabilities Bank credits
(511,512)
780
Loans (513) 790
Current share of long-term liabilities (514) 800
Total.5.1 (780+790+800+810) 820
5,2
Short term commercial liabilities
Short term commercial liabilities (521)
830 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000
Short term liabilities to related parties (522) 840
Total 5.2 (830+840+850) 860 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000
5,3
870
Others (539) 950
Total 5.3 (870+880+890+
900+910+920+930+940+950)
960
TOTAL chapter 5 (820+860+960) 970 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000
TOTAL LIABILITIES (650+770+970) 980 355 671 931 366 213 601 376 958 510 387 964 921 399 300 108 411 035 509 423 231 887 435 969 489 449 319 226 463 363 856 478 190 174 493 885 212
Nr.
n.s.
ASSETS No I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year XIII year XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
1 2 3 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
1
1.1
Long-TermAssets Intangible
(111,112) 010
- - - - - -
Intangible assets ( 010-020) 030 - - - - - - - - - - - - - -
1,2
Long-Termmaterial Assets

Land(122) 050
Fixed assets (123) 060 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107 345 213 107
Depreciation of fixed assets (124,126) 080 (8 414 569) (16 829 139) (25 243 708) (33 658 278) (42 072 847) (50 487 417) (58 901 986) (67 316 556) (75 731 125) (84 145 695) (92 560 264) (100 974 834) (109 389 403) (117 803 973) (126 218 542) (134 633 112) (143 047 681) (151 462 251) (159 876 820) (168 291 390) (176 705 959) (185 120 529) (193 535 098) (201 949 668) (210 364 237)
Long-Termmaterial Assets (040+050+
060+070-080)
090
336 798 538 328 383 968 319 969 399 311 554 829 303 140 260 294 725 690 286 311 121 277 896 551 269 481 982 261 067 412 252 652 843 244 238 273 235 823 704 227 409 134 218 994 565 210 579 995 202 165 426 193 750 856 185 336 287 176 921 717 168 507 148 160 092 578 151 678 009 143 263 439 134 848 870
Total chapter 1 (030+090+160+170) 180 336 798 538 328 383 968 319 969 399 311 554 829 303 140 260 294 725 690 286 311 121 277 896 551 269 481 982 261 067 412 252 652 843 244 238 273 235 823 704 227 409 134 218 994 565 210 579 995 202 165 426 193 750 856 185 336 287 176 921 717 168 507 148 160 092 578 151 678 009 143 263 439 134 848 870
Materials (211) 190
- -
Finished goods (216) 230 - - - - - - - -
Total 2.1 (190+200+210 + +220+140+150) 250 - - - - - - - - - - - - - -
2,2
receivable from customers (221) 260
7 618 105 14 312 314 21 521 983 26 002 699 34 219 823 43 000 774 52 368 201 62 356 337 72 992 900 84 313 503 96 353 733 109 148 561 122 738 101 137 155 197 152 441 210 168 646 927 185 814 393 203 991 694 223 229 322 243 580 294 265 100 277 287 847 722 311 884 000 337 273 555 364 084 051
Total 2.2 (260-270+280+ 290+300+310+320+
330+340)
350
7 618 105 14 312 314 21 521 983 26 002 699 34 219 823 43 000 774 52 368 201 62 356 337 72 992 900 84 313 503 96 353 733 109 148 561 122 738 101 137 155 197 152 441 210 168 646 927 185 814 393 203 991 694 223 229 322 243 580 294 265 100 277 287 847 722 311 884 000 337 273 555 364 084 051
2,4
Cash Cash (241)
400
1 125 529 2 351 732 3 546 713 5 040 739 6 194 002 7 330 905 8 455 257 9 571 660 10 684 434 11 798 294 12 918 360 14 049 838 15 198 865 16 371 274 17 572 950 18 810 635 19 690 852 20 220 725 20 407 739 23 585 772 27 611 030 31 818 197 36 216 369 40 815 097 45 624 407
Current accounts in local currency(242) 410 10 129 759 21 165 587 31 920 416 45 366 653 55 746 022 65 978 141 76 097 309 86 144 941 96 159 910 106 184 647 116 265 238 126 448 541 136 789 789 147 341 468 158 156 549 169 295 718 177 217 664 181 986 525 183 669 647 212 271 951 248 499 272 286 363 777 325 947 325 367 335 869 410 619 659
Other cash (244, 245, 246) 430
Total 2.4 (400+410+ 420+430) 440 11 255 288 23 517 319 35 467 129 50 407 392 61 940 025 73 309 045 84 552 565 95 716 601 106 844 345 117 982 941 129 183 598 140 498 379 151 988 654 163 712 742 175 729 499 188 106 353 196 908 515 202 207 250 204 077 386 235 857 724 276 110 302 318 181 974 362 163 695 408 150 966 456 244 066
TOTAL chapter 2 (250+ 350+390+440+450) 460 18 873 393 37 829 633 56 989 112 76 410 092 96 159 848 116 309 819 136 920 766 158 072 938 179 837 245 202 296 444 225 537 331 249 646 939 274 726 755 300 867 939 328 170 709 356 753 280 382 722 908 406 198 943 427 306 708 479 438 018 541 210 579 606 029 696 674 047 695 745 424 522 820 328 117
TOTAL ASSETS (180+460) 470 355 671 931 366 213 601 376 958 510 387 964 921 399 300 108 411 035 509 423 231 887 435 969 489 449 319 226 463 363 856 478 190 174 493 885 212 510 550 459 528 277 073 547 165 274 567 333 276 584 888 333 599 949 800 612 642 995 656 359 735 709 717 727 766 122 274 825 725 704 888 687 961 955 176 986
Nr.
n.s.
LIABILITIES Cod I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year XIII year XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
1 2 3 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
3
3.1
EQUITY Share and
(311) 480
48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337
Total.3.1 (480+490-500-510) 520 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337 48 473 337
3,3
Profit and loss surplus (331)
570
years (332)
580 15 383 824 31 915 494 49 652 403 68 654 814 88 986 001 110 712 402 133 903 780 158 633 382 184 978 119 213 018 749 242 840 067 274 531 105 308 185 352 343 900 966 381 781 017 421 940 461 464 486 534 509 538 565 557 221 854 607 667 963 661 015 033 717 408 112 776 999 500 839 949 114
Net profit (loss) (333) 590 15 383 824 16 531 670 17 736 909 19 002 411 20 331 187 21 726 402 23 191 377 24 729 602 26 344 738 28 040 630 29 821 317 31 691 039 33 654 246 35 715 614 37 880 051 40 159 444 42 546 072 45 052 032 47 683 289 50 446 109 53 347 070 56 393 079 59 591 389 62 949 614 66 475 750
Total 3.3 ( 570580 590600) 610 15 383 824 31 915 494 49 652 403 68 654 814 88 986 001 110 712 402 133 903 780 158 633 382 184 978 119 213 018 749 242 840 067 274 531 105 308 185 352 343 900 966 381 781 017 421 940 461 464 486 534 509 538 565 557 221 854 607 667 963 661 015 033 717 408 112 776 999 500 839 949 114 906 424 864
TOTAL chapter 3 (520+560610640) 650 63 857 161 80 388 831 98 125 740 117 128 151 137 459 338 159 185 739 182 377 117 207 106 719 233 451 456 261 492 086 291 313 404 323 004 442 356 658 689 392 374 303 430 254 354 470 413 798 512 959 871 558 011 902 605 695 191 656 141 300 709 488 370 765 881 449 825 472 837 888 422 451 954 898 201
4.
4.1
Long termliabilities Financial
Long termliabilities Bank credits
(411,412)
660
Loans (413) 670 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770 153 739 770 135 739 770 116 739 770 96 739 770 71 739 770 41 739 770 6 739 770
Others (414) 680
Total 4.1 (660+670+680) 690 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770 153 739 770 135 739 770 116 739 770 96 739 770 71 739 770 41 739 770 6 739 770
4,2
Accounted Long termliabilities Lease
Long termliabilities (421)
700
Total 4.2 (700+710+720+ 730+740+750) 760
Total chapter 4 (690+760) 770 291 739 770 285 739 770 278 739 770 270 739 770 261 739 770 251 739 770 240 739 770 228 739 770 215 739 770 201 739 770 186 739 770 170 739 770 153 739 770 135 739 770 116 739 770 96 739 770 71 739 770 41 739 770 6 739 770
5
5.1
Short termliabilities Financial
short termliabilities Bank credits
(511,512)
780
Loans (513) 790
Current share of long-termliabilities (514) 800
Total.5.1 (780+790+800+810) 820
5,2
Short termcommercial liabilities
Short termcommercial liabilities (521)
830 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000 152 000 163 000 171 150 179 708 188 693 198 128 208 034 218 436 229 357 240 825 252 866 265 510 278 785
Short termliabilities to related parties (522) 840
Total 5.2 (830+840+850) 860 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000 152 000 163 000 171 150 179 708 188 693 198 128 208 034 218 436 229 357 240 825 252 866 265 510 278 785
5,3
870
Others (539) 950
Total 5.3 (870+880+890+
900+910+920+930+940+950) 960
TOTAL chapter 5 (820+860+960) 970 75 000 85 000 93 000 97 000 101 000 110 000 115 000 123 000 128 000 132 000 137 000 141 000 152 000 163 000 171 150 179 708 188 693 198 128 208 034 218 436 229 357 240 825 252 866 265 510 278 785
TOTAL LIABILITIES (650+770+970) 980 355 671 931 366 213 601 376 958 510 387 964 921 399 300 108 411 035 509 423 231 887 435 969 489 449 319 226 463 363 856 478 190 174 493 885 212 510 550 459 528 277 073 547 165 274 567 333 276 584 888 333 599 949 800 612 642 995 656 359 735 709 717 727 766 122 274 825 725 704 888 687 961 955 176 986
Outputs 4 405 933 4 668 302 4 943 790 5 233 053 5 536 778 5 855 690 6 190 547 6 542 148 6 911 328 7 298 967
Updated flow 10% 1,33 1,46 1,61 1,77 1,95 2,14 2,36 2,59 2,85 3,14
Treasury flow 19 647 993 18 726 166 17 848 853 17 013 792 16 218 848 15 462 001 14 741 339 14 055 058 13 401 445 12 778 883
Outputs 7 705 988 8 133 361 8 582 101 9 046 544 9 540 944 10 060 064 10 605 140 11 177 470 11 778 416 12 409 410 13 071 953 13 767 623 14 498 077
Updated flow 10% 3,45 3,80 4,18 4,59 5,05 5,56 6,12 6,73 7,40 8,14 8,95 9,85 10,83
Treasury flow 12 185 837 11 620 857 11 082 564 10 571 121 10 082 291 9 616 438 9 172 448 8 749 265 8 345 886 7 961 359 7 594 780 7 245 291 6 912 077
Accumulated flow 0 -321 272 000 -106 940 154 -95 319 298 -84 236 734 -73 665 613 -63 583 322 -53 966 883 -44 794 435 -36 045 171 -27 699 285 -19 737 926 -12 143 146 -4 897 855 2 014 222
I year II year III year IV year V year VI year VII year VIII year IX year X year XI year XII year XIII year
Liquidity Ratio (Coverage) 252 445 613 788 952 1 057 1 191 1 285 1 405 1 533 1 646 1 771 1 807
Intermediate Liquidity (Acid Test) 252 445 613 788 952 1 057 1 191 1 285 1 405 1 533 1 646 1 771 1 807
Immediate liquidity 150 277 381 520 613 666 735 778 835 894 943 996 1 000
Working capital (thousand, MDL) 18 798 37 745 56 896 76 313 96 059 116 200 136 806 157 950 179 709 202 164 225 400 249 506 274 575
financial stability
Capital Adequacy Ratio 18% 22% 26% 30% 34% 39% 43% 48% 52% 56% 61% 65% 70%
Leverage Ratio 4,57 3,56 2,84 2,31 1,90 1,58 1,32 1,11 0,92 0,77 0,64 0,53 0,43
Interest Coverage Ratio 888,12 907,35 925,67 943,11 959,73 975,55 990,62 1004,97 1018,64 1031,66 1044,06 1055,87 1067,11
Debt Service Ratio 3,25 3,04 2,71 2,87 2,28 2,14 2,02 1,93 1,86 1,80 1,75 1,71 1,68
debt service rate 4,76 4,16 3,74 3,43 3,19 3,01 2,87 2,76 2,67 2,60 2,55 2,51 2,47
turnover speed
Time of turnover of assets (days) 4 615 4 474 4 337 4 265 4 192 4 121 4 051 3 984 3 918 3 856 3 797 3 741 3 688
Time of turnover of long term assets (days) 4 491 4 236 3 994 3 718 3 459 3 215 2 986 2 771 2 570 2 381 2 203 2 037 1 882
Time of turnover of current assets 124 238 342 546 734 906 1 065 1 212 1 349 1 475 1 593 1 703 1 807
(days)
50 90 129 193 266 337 391 461 528 594 659 722 784
Time of turnover of loan debt (days) 0,49 0,53 0,56 0,99 1,02 1,06 1,06 1,07 1,08 1,07 1,08 1,07 1,08
Number of days per period, days 365 366 367 368 369 370 371 372 373 374 375 376 377
profitability
Investment Profitability 5% 5% 6% 6% 6% 7% 7% 8% 8% 9% 9% 10% 10%
Return On Equity (ROE) 27% 26% 24% 21% 19% 17% 15% 14% 13% 13% 12% 11% 11%
Return On Assets (ROA) 4% 5% 5% 5% 5% 6% 6% 6% 6% 6% 7% 7% 7%
Gross Margin (%) 67% 68% 70% 71% 72% 73% 74% 75% 76% 77% 78% 79% 80%
Net Profit Margin 56% 57% 58% 59% 60% 61% 62% 63% 64% 65% 66% 67% 68%
* Permanent Capital = Equity + Long Term Debt
Forecast
XIV year XV year XVI year XVII year XVIII year XIX year XX year XXI year XXII year XXIII year XXIV year XXV year
Liquidity Ratio (Coverage) 1 846 1 917 1 985 2 028 2 050 2 054 2 195 2 360 2 516 2 666 2 808 2 943
Intermediate Liquidity (Acid Test) 1 846 1 917 1 985 2 028 2 050 2 054 2 195 2 360 2 516 2 666 2 808 2 943
Immediate liquidity 1 004 1 027 1 047 1 044 1 021 981 1 080 1 204 1 321 1 432 1 537 1 637
Working capital (thousand, MDL) 300 705 328 000 356 574 382 534 406 001 427 099 479 220 540 981 605 789 673 795 745 159 820 049
financial stability
Leverage Ratio 0,35 0,27 0,21 0,14 0,08 0,01 0,00 0,00 0,00 0,00 0,00 0,00
Interest Coverage Ratio 1077,82 1088,02 1097,91 1107,16 1115,97 1124,36 1132,35 1139,97 1147,21 1154,12 1160,69 1166,95
Debt Service Ratio 1,65 1,63 1,62 1,35 1,18 1,05 5,72
debt service rate 2,45 2,44 2,43 2,04 1,78 1,60 8,73
turnover speed
Time of turnover of assets (days) 3 640 3 595 3 554 3 505 3 449 3 388 3 403 3 428 3 446 3 537 3 642 3 745
Time of turnover of long termassets (days) 1 736 1 600 1 472 1 353 1 241 1 137 1 039 948 863 784 710 642
Time of turnover of current assets 1 904 1 995 2 082 2 152 2 208 2 251 2 363 2 480 2 583 2 753 2 932 3 104
Time of turnover of short-termreceivables
(days)
844 903 961 1 017 1 072 1 125 1 177 1 228 1 277 1 326 1 373 1 419
Time of turnover of loan debt (days) 1,08 1,08 1,09 1,11 1,11 1,11 1,12 1,12 1,12 1,12 1,13 1,13
Number of days per period, days 378 379 380 381 382 383 384 385 386 387 388 389
profitability
Investment Profitability 11% 12% 13% 13% 14% 15% 16% 17% 18% 19% 20% 21%
Return On Equity (ROE) 10% 10% 10% 9% 9% 9% 9% 8% 8% 8% 8% 8%
Return On Assets (ROA) 7% 7% 7% 8% 8% 8% 8% 8% 8% 8% 8% 8%
Gross Margin (%) 81% 82% 82% 83% 84% 84% 85% 86% 86% 87% 87% 88%
Net Profit Margin 68% 69% 70% 70% 71% 71% 72% 73% 73% 73% 74% 74%
* Permanent Capital = Equity + Long TermDebt
Forecast
Anexa 11 Calculation of wear
Calculation of wear
Depreciation ratio Residual value
Value of annual
depreciation
(%) lei lei
Fixed assets have received by the
administrative Enterprise at their net value
3% 8 630 328 8 414 569
Total 3% 8 630 328 8 414 569
Outputs 5 404 797 5 717 110 6 045 038 6 389 363 6 750 904 7 130 522 7 529 121 7 947 650 8 387 105 8 848 534
Updated flow 10% 1,33 1,46 1,61 1,77 1,95 2,14 2,36 2,59 2,85 3,14
Treasury flow 26 402 147 25 173 313 24 002 948 22 888 156 21 826 195 20 814 468 19 850 513 18 931 996 18 056 704 17 222 539
Outputs 9 333 033 9 841 758 10 375 918 10 930 051 11 518 627 12 136 631 12 785 535 13 466 885 14 182 302 14 933 490 15 722 237 16 550 422 17 420 016
Updated flow 10% 3,45 3,80 4,18 4,59 5,05 5,56 6,12 6,73 7,40 8,14 8,95 9,85 10,83
Treasury flow 16 427 510 15 669 726 14 947 393 14 260 276 13 603 758 12 977 838 12 381 057 11 812 028 11 269 432 10 752 017 10 258 590 9 788 019 9 339 226
Accumulated flow 0 -321 272 000 -32 935 378 -17 265 652 -2 318 259 11 942 018 25 545 775 38 523 613 50 904 670 62 716 698 73 986 130 84 738 147 94 996 737 104 784 756 114 123 982

Feasability Study Falesti - English

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Feasability Study Falesti - English

Uploaded by

Copyright:

Available Formats

1

Feasibility Study regarding Creation of the

You might also like