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Chapter I

INTRODUCTION

EcoTree Corporation is an organization of a mixed group of scientists,
researchers and entrepreneurs whose task is to conduct studies relating to the
significance of fruit trees in the environment. This institution is located at 1234
University Circle, Mintal, Davao City, Philippines.

Company History
Ten (10) years ago, Grace M. Salcor founded EcoTree Corporation, a non-profit
organization that conducts research studies on the significance and benefits of trees in
the environment. Starting as an independent unit inside the University of
Southeastern Philippines - College of Agribusiness with the designation of validating
research studies about fruit trees, EcoTree Corporation expanded into an organization
recognized by the community and partnered with various institutions in and out of the
region and is now comprised of a mixed group of individuals sharing the same vision
of harnessing the potential of natural resources.

Company Mission
The goal of EcoTree Corporation is to associate researchers, scientists,
entrepreneurs and other stakeholders in the society to conduct studies and researches
of finding better ways of utilizing natural resources for the benefit of the community. It
is on its way to join affiliates in integrating emerging technologies to provide
innovative, cost-effective, and environmentally-friendly solutions to evolving problems
in todays world.
Our emphasis will be on providing thorough experiments and further studies
regarding the viability of fruit trees as a potential source of energy. A recent study
indicates that a fruit tree can generate electricity and can even be utilized to operate a
power plant.
By capitalizing on our renewable energy project in the EcoTree Corporation, we
will be able to build an eco-power plant which can support the power grid in the
country and utilize the benefits of trees to the environment through further research
studies.
Chapter II
STATEMENT OF THE PROBLEM

This project proposal seeks to address the need for investments in building a
150 MW eco-power plant that can be a potential supplement to the power grid in the
Philippines. Furthermore, this aims to gather support to proceed with the study of
finding out which fruit tree(s) generate the highest average kilowatt-hours (kWh),
conduct test experiments on the long term effect of the power plant on trees and the
environment, the effects on the photosynthesis process and the nutrient needs of the
trees.
By conducting further studies of how the benefits of fruit trees can be utilized
in our community, we are helping improve the lives of our future generation. The most
who can benefit of our study are our children. Fruit trees take time to grow and
develop. If we begin to venture in cultivating this technology, the benefits will soon be
realized in the next few years. We intend to increase prospective sources of energy in
this rapidly growing mass of electric consumers. For every 3 out of 5 children over 5
years old already use electrical gadgets, the demand for energy is getting higher.
Various organizations and government units have already been searching and
implementing ways to use renewable energy to supply these increasing demands.
Since the proposed eco-power plant will utilize fruit trees as the primary source
of energy, it is recommended to be built on a geographical location preferably with lots
of fruit tree varieties. The prospect location of the project site will be in Calinan, Davao
City.
The constituents involved in this project are primarily, the scientists,
researchers and entrepreneurs, the panel of investors and representatives of the
government, the fruit tree growers, and representatives from power distribution
companies.
EcoTree Corporation will raise partnership with local organizations and
government agencies that will aid in the attainment of this project. The institution will
run its operation on establishing an eco-power plant funded by individuals or groups
from various private and government sectors. It will establish connection with the local
government as well as with the agencies in the regions. Cooperation with these
constituents will increase awareness of the project plan and sources of potential
investors.

Davao City Investment Network
Seven members of Davao City Investment Network have each pledged to invest
$200,000 to be paid back in 5 years at 5% interest.

Edward Marcs Philippines, Inc.
This company that pioneers the selling and development of alternative sources
of energy is enthusiastic about our project. It has expressed the desire to coordinate
and support our research and development through its Club Earth products.

University of Southeastern Philippines Research and Extension Division
Our state university, particularly the College of Agribusiness, anticipates more
outreach programs in our research area. They plan to bring groups of students to do
research with our studies, and agriculture students may also serve as a pool of part-
time interns as needed.

Fruit Tree Farmers Association
This local association of fruit tree growers will assist us with gaining and
maintaining our cultivated area.




Chapter III
STATEMENT OF SOLUTION

The goal of the project is to build a 150 MW eco-power plant based on a recent
study that discovered the viability of fruit trees to be a source of energy, aside from all
other benefits in the environment. Moreover, this eco-power plant project aims to:
add to the power grid of the Philippines
utilize the benefits of trees to the environment
proceed with further studies with regards to the benefits of trees
invite investors that will support the funding of this project

EcoTree Corporation has worked on smaller projects similar with potato-
powered battery experiments that are usually done in school science laboratories.
Based from these experiments, the researchers did studies on other raw materials
such as fruit trees in generating electric current.
An experiment of Plantain trees in Sri Lanka which involved generating electric
output in a cell to power up a LED paved the way for doing an in-depth study and
experimentation for fruit trees. The experiment revealed that an average tree has
enough material that could light up 30 to 40 cells, lighting a bulb for almost a year.
With the current study conducted by EcoTree Corporation it is discovered that
a fruit tree can generate electricity on an average of 468 kilowatt-hours (kWh) during
the day and an average of 215 kWh during the night. It is in this discovery that the
researchers opted to construct a 150 MW power plant to be able to supply a much
larger amount of energy enough to provide and distribute electricity to various
households and industries.

Management Team and Key Personnel
The EcoTree Corporation initiated eco-power plant project requires proficient
experts for its supervision and management. Project leader should regularly update
each individual under his team. He should identify and mitigate risks and resolve the
issues and must also coordinate efforts for completing activities in plan. Each team
member in the research and development unit must cooperate in the advancement of
the projects completion.
The people involved in the supervision and management of this project are the
following:

Mary Grace Joy Salcor, currently EcoTree Corporations Chief of Research
Operations will be in charge of the project management and oversight entity. She will
serve the Senior Project Manager and will oversee the development of all the elements
involved in the project. She holds a degree in BS in Business Administration major in
Agribusiness and has experiences in various research fields and operations that
EcoTree Corporation has undergone. She is one with the team of scientists that led to
the discovery of tapping potential energy from fruit trees and has ever since been
promoting the various benefits of fruit trees in the society.

Robinson Costanilla Jr., presently an associate consultant of EcoTree Corp.
Research Division will serve as the Junior Project Manager and will assist Mary Grace
Joy Salcor in the project management and oversight. He has a degree in BS Forestry
and a long time part of the green movement. He has conducted seminars in green
construction that enables architects and engineers to build energy-efficient projects
with less damage to the forests.

Kharyll Clark Permangil, a project engineer and researcher at EcoTree
Corp.will serve as the Project Technology Officer and will take charge in the manual
operations of the project equipment and machinery. He holds a degree in BS
Electronics and Communications Engineering and has been involved in the
development of renewable energy resources scientific experiments at EcoTree Corp.

Aissa Jean Nilo, currently the Executive Secretary at EcoTree Corp. will serve
as the Research and Study Coordinator. She will take charge of the research
experiments and documentations of the fruit trees-eco-power plant project in
coordination with all the scientists and researchers. A graduate of BS in Agricultural
Ecosystems, she previously worked with environmental institutions specialising in
researching for alternative natural sources of energy.

Ariel Balili, currently a Senior Accountant at EcoTree Corp. will serve as the
Project Finance Officer and will take charge of all the finances and charges relating to
the project. He holds a degree in BS in Business Administration major in Financial
Management and was one of the successful partners of the regional investment
network. He is also one of the board members of the Bureau of Treasury in the city.

Leah Rubillar, currently the Head of Monitoring Division at EcoTree Corp. will
serve as the Quality Control Manager. She will take charge of monitoring the project
development ensuring quality and compliance with standards set. A graduate of BS in
Applied Economics and Management, she has spent years working as a consultant in
an energy conservatory firm and published research manuscripts associated with
energy efficient systems and construction.

Chapter IV
FUNDING REQUEST

The EcoTree Corporation eco-power plant project is seeking $ 328 million as
current funding requirement for capital expenditures to build a 150 MW eco-power
plant that could generate energy from fruit trees. It also aims to supplement the
ongoing research studies about how fruit trees can generate energy and its related
effects. This funding is requested from any open individual or sponsor, from various
private sectors, local and national government agencies.
According to the study, the total cost of capital to start a 1 MW power plant
with the discovered technology is estimated at Php 98 million with a monthly
operating and maintenance cost of Php 3,256. The total projected cost of the
completion of this 150 MW eco-power plant project amounts to an estimated $ 328
million.

Real Estate
The land property on which the project site will encompasses 1 hectare. 70% of
the land covers the plantation and production of various fruit trees, namely: coconut,
durian, jackfruit, mango, rambutan, and tamarind. The remaining 30% of the area will
be utilized for the construction and development of the 150 MW eco-power plant and
onsite office. The total cost of the acquisition of the land estimates to $900,000.

Building Construction Materials
On the property is a power plant which costs an estimate of $200 million for its
construction. The structure will be constructed to be used as the main area where all
the facilities used in the power generating and transmitting process are housed.

Machinery and Tools
Our power plant has facilities used for the operation of the power plant, such as
pH testers, and other equipment, which would amount to an approximate cost of $300
million.


Utilities
Acquisition and installation of water supply tanks, wells, electricity and lighting
fixtures, and other utilities would cost an estimate of $12,000.

Fruit Trees Development
The eco-power plants main source of energy is the fruit trees. To sustain the
environment and the procreation of fruit trees, there is a need to plant new seedlings.
These are covered in the management operational expenditures. The nursery costs of
new seedlings would estimate to $3,600. Establishment of these new seedlings would
cover approximately $300. Maintenance estimates to $60 in the first year and would
range to $40 for the next 5 years.
Fruit Tree Variety Buying Price Per Seedling Total Price for 55 Seedlings
Durian $ 1.34 $ 73.7
Jackfruit $ 1.12 $ 61.6
Mango $ 0.67 $ 36.9
Tamarind $ 0.67 $ 36.9
Rambutan $ 1.34 $ 73.7
Coconut $ 0.67 $ 36.9
TOTAL

$ 319.7

The construction project is expected to start by the third quarter of 2015, and is
projected to end by the mid-year of 2016. The grant funds will be initially needed by
April 2015. This will allow time for the accumulation of funds to be used for the start-
up construction, however we will keep on searching for investments and grants are
open within 1 year of operation.

Other Sources of Funding
EcoTree Corporation has used other sources of funding for their previous
operations and experimental studies. International Fund Corporation has already
granted $150 million in support to the ongoing researches of the EcoTree Corp. The
Davao City Investment Network also extended their support, and seven members from
the said organization have already pledged to invest $ 200,000 to be paid in 5 years at
5% interest
Chapter V
FINANCIAL INFORMATION

A financing of $ 328 billion will fund a project that installs 150 MW of fruit tree-
powered energy plant.

Estimated kWh Information
Year 1 Year 2 Year 3 Year 4 Year 5
kWh
Produced
54,000,000 64,800,000 77,760,000 93,312,000 111,974,400
Cost $10,800,000 $12,960,000 $15,552,000 $18,662,400 $22,394,880
Transmission
charge
$0.10
$0.10 $0.10 $0.10 $0.10
Total Cost $11,880,000 $14,256,000 $17,107,200 $20,528,640 $24,634,368


The table above shows the estimated kilowatt-hour produced by the eco-power
plant within the first five years of operation. On each year also is the calculated cost of
the generated electricity as per kilowatt-hour rate of $ 0.20. The amount of kilowatt-
hour produced from our eco-power plant increases by 20% annually. Funded
researches and thorough studies continue to find ways for the power plant to generate
more energy. The produced energy is the supplied energy to the power grid. Primarily,
the generated energy will be charged and is considered as the source of revenue of this
project.

Estimated Expenses Summary of New Seedlings
Year 1 Year 2 Year 3 Year 4 Year 5
Cost of Seedlings
purchased
$ 319.7 - - - -
Nursery costs $ 3,600 - - - -
Establishment of new
seedlings
$ 300 - - - -
Maintenance $ 60 $ 40 $ 40 $ 40 $ 40
TOTAL $ 4,279.7 $ 40 $ 40 $ 40 $ 40
Equivalent to 150MW, gradually
increasing yield by 20% annually

Multiplied by generation
rate of $0.20 per kWh

Assuming kuno...
Cost of generation charge x transmission charge plus cost
Gi sum up gikan sa
New Seedlings table
All other data kay
assuming lang

The seedlings are purchased so to have a next batch of fruit trees generation
after the mature ones are utilized in the study. The total expenses from the summary
of buying prices of the fruit trees variety is $ 319.70. The nursery expenses and the
establishment of the new seedlings would amount to $ 3,900. The maintenance of the
fruit trees is very vital. The first year it would require $ 60, but in the next succeeding
years it would just charge an additional of $ 40. For the first year, the total cost is
$4,279.7.

Estimated Expenses Summary of Monthly Salaries and Wages
Year 1 Year 2 Year 3 Year 4 Year 5
Senior Project
Manager
$800 $840 $880 $924 $970.2
Junior Project
Manager
$750 $787.5 $826.9 $868.2 $911.6
Project
Technology
Officer
$750 $787.5 $826.9 $868.2 $911.6
Research and
Study
Coordinator
$750 $787.5 $826.9 $868.2 $911.6
Project Finance
Officer
$750 $787.5 $826.9 $868.2 $911.6
Quality Control
Manager
$750 $787.5 $826.9 $868.2 $911.6
Staff & Crew $6000 $12600 $26464 $34730 $54705
Total Salary $10550 $17377.5 $31478.5 $39995 $60233.2
Tax Charge
(0.12)
$1266 $2085.3 $3777.4 $4799.4 $7227.9
TOTAL
ANNUAL
EXPENSES
$126,600 $208,530 $377,742 $479,940 $722,798.4
TOTAL
ANNUAL TAX
$15,192
$25,023.6 $45,329 $57,592.8 $86,735.8


Gi- x 12months ang Total Monthly
Salary sa employees
Gi- x 12 months ang Tax Charge
na monthly. Ex. $1266
There are salaries and wages expenses which totals at $126,600 annually. This
consists of the salaries and wages of the management team, and the staff and crew of
the project. The number of staff and crew starts at 20 during the first year, increases
to 40 on the second year, 80 on the third year, 100 on the fourth year, and 150 on the
fifth year. The salaries and wages of all the employees is gradually increasing by a rate
of 5% annually, thus the tax charge of which rate is 12% also increases. There is an
annual income tax charge of 40% for the revenues, and licenses and registration
permits will cover $30 annually.

Estimated Annual Expenses Summary
Year 1 Year 2 Year 3 Year 4 Year 5
Operating
and
Maintenance
Cost of
Power Plant
$128,937.6 $135,384.5 $142,153.7 $149,261.4 $156,724.4
Seedlings
Development
and
Maintenance
$ 4,279.7 $ 40 $ 40 $ 40 $ 40
Real Estate $ 900,000 - - - -
Utilities $ 12,000 $ 500 $ 550 $ 600 $ 650
Machineries
and
Equipment
$300,000,000
- - - $ 100,000
Salaries and
Wages
$ 126,600 $ 208,530 $ 377,742 $ 479,940 $ 722,798.4
Taxes and
Licenses
$2,419,230
$2,453,790 $2,505,630 $2,540,190 $2,592,030






The eco-power plant has a monthly operating and maintenance cost of $ 72.75.
To make facilities better, we project an increase of 5% gradually every year.
Land property of the project is bought and acquired so there is no more expense
after the first year.
Ang given data na monthly
maintenance of P 3256 gi- x 150MW x
12months x converted to dollars
Based on
Seedlings table
Assuming... $90 per sq.m. x 10,000
sq.m
Assuming... $90 per sq.m.
x 10,000 sq.m
Assuming again...
explanations below
Assuming napud...
$100,000 basig naay
paliton or ilisan or
iimprove after 4 years.
hehe
From Salaries and Wages
table
Income tax from 40% of Revenue plus total Taxes in
Salaries and Wages table plus $30 assuming Licensing
fees
The utilities expense sums up a total of $ 12,000 due to its acquisition and
installation, however, we see a need for maintenance of $ 500 in the second year and
constantly increasing by $ 50 in the succeeding year.
Machineries and tools are acquired during start-up period and are at a total of
$ 300 million. There is no need to leasing fee since this is bought as property of the
plant; however, by the fifth year an estimated $ 100,000 is budgeted to replenish the
machineries.
INCOME AND EXPENSE STATEMENT
(Projected Income Statement for 5 Years)

Year 1 Year 2 Year 3 Year 4 Year 5
REVENUE
Cost of Sales $11,880,000 $14,256,000 $17,107,200 $20,528,640 $24,634,368

EXPENSES
Operational
and
Maintenance

$ 133,217.3 $ 135,424.5 $ 142,193.7 $ 149,301.4 $ 156,764.4
General and
Administrative
(salaries and
wages plus
taxes)
$ 2,545,830 $ 2,662,320 $ 2,883,372 $ 3,020,130 $ 3,314,828.4
Real Estate
and Utilities
(plus
machineries)
$ 300,912,000 $ 500 $ 550 $ 600 $ 100,650
$ 303,591,047.3 $ 2,798,244.5 $ 3,026,115.7 $ 3,170,031.4 $ 3,572,242.8

PROFIT -$291,711,047.30 $11,457,755.50 $14,081,084.30 $17,358,608.60 $21,062,125.20

By the first year of operation of the power plant, the start-up expenses are higher since there is a lot to spend.
Profit begins to come up on the second year and beyond, gradually increasing each year
.


Chapter VI
EVALUATION AND REPORTING

There are various ways we can tell that this project is on its way to completion.
For us researchers, it is significant that we finish the construction of the eco-power
plant within its timeframe. We also anticipate almost half of the investments we need
to come by April 2015 that which are needed by the construction to begin. Within the
first years of operation, the grants and pledges have already been turned in. We can
measure success through the production of the power plant. Within the projected 5
years of operation, we have made researches and experiments that yielded better ways
to utilize fruit trees as sources of energy. We are able to determine which fruit tree
variety is able to generate the highest kilowatt-hours, find strategies to develop faster
growth of these trees, spend fewer charges in our expenses, and produce more
generated energy by the plant.
For this project to become self-sustaining, we will make the supply of electricity
commercially available to more consumers, thus, we will encourage not just the local
power distributors and nearby communities to tap their power source from us, but
also those in the regions.
This eco-power plant will then apply for a certificate of commerciality which
means that developers can proceed with the construction of the project and that upon
operation, the project would supply to the grid. The rate per kilowatt hour for this fruit
tree eco-power plant will be set at $0.20. The power generated will be transmitted and
distributed to consumers and sold at a friendly price.
EcoTree envisions more alliance with government agencies, private institutions,
and patrons in the coming years. As part of our advocacy in nurturing Mother Earth
and to promote the significance of trees in the environment, we will invite schools,
civic organizations, and other institutions to hold their tree-planting movements
within our site. This could also be a way we can utilize trees without the need to buy
new seedlings; therefore we will lessen our expenses in the purchasing cost.
Most probably, the main source of income after the grant is completed would be
from the generation charges, transmission and transport charges, the distribution
charges, and the retail charges that power companies and other customers pay in
exchange to the supply of energy that comes from the plant.
University of Southeastern Philippines
College of Governance and Business
Mintal Campus, Davao City







Business Proposal of EcoTree Corporation










In Partial Fulfillment of the Requirements for the Subject
Business Communication









Presented by:

Nilo, Aissa
Balili, Ariel
Rubillar, Leah
Permangil, Kharyll
Salcor, Mary Grace Joy
Constanillo, Robinson Jr.