Offer to the investor

Total project cost: 118 mln RUB

Capital planned to be raised: 40 mln RUB and above

Investment purposes: construction and equipment of the roadside service facilities

Available investment options: any possible investment options will be considered

Internal rate of return (IRR):  34%

Planned payback period: 6 years

The length of the P257 Yenisey motor road segment, connecting Krasnoyarsk region, the Republic of Tyva and Mongolia, stretching through the territory of the Republic, is 400 km. The roadside service in the Republic of Tyva is mostly represented by non-chain small-sized businesses (container petrol stations, low budget facilities, module petrol stations). The main competitive disadvantage of such petrol stations is the low quality of the products and services they provide. Moreover, the roadside is poor in food and beverage facilities.

After the P257 motor road has been assigned a federal status, the comprehensive development of the roadside infrastructure increases its logistic significance and the potential demand for the roadside recreation and petrol station services.  At the same time, the petrol station service segment of the Republic of Tyva shows better stability compared to the average Russian values and keeps on growing at CAGT of 3%. The food and beverage market of the region is growing at CAGR 7%; the food retail market average growth rate constitutes 6%.

The idea includes the construction of a chain of roadside service facilities for the transport traffic. Additional value is created due to recreational areas, goods and food sales outlets, the establishment of hospitality services. The project is supposed to be implemented in several stages:

– Phase I. Shivilig village area. Petrol station with an integrated grocery shop and a cafeteria;

– Phase II. Khandagayty village area. Petrol station with an integrated grocery shop and a cafeteria;

– Phase 3. Shagonar town area. Petrol station, motel (5-6 rooms), café.

The distance of around 200 km between the facilities will prevent the competition.

Target values:

– average daily traffic: 3,000 motor vehicles;

– average daily fuel sales: 25,000 litres.

At the moment, the project is at the idea stage. The contact structure is being developed; the land plot issues are being solved.

Depending on the sufficiency of the assets and finance owned by the investor, Yenisey Siberia Development Corporation may offer the best fitting project financing plan involving the governmental financial support options.

The project was developed by Strategy Partners group with the support of Sberbank.

Republic of Tyva

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