FINANCING OUTLINE

Project Title

PURCHASE OF HEAVY EQUIPMENT

Project Goals and Objective

 To procure dumptruck, backhoe and bulldozer for fast and better delivery of
services.

Project Location

The equipment when purchase will be stationed at the Malabog quarry and
Nabunturan quarry.

Scope of Work

The equipment when purchased will be used for the loading and hauling services
of limestone materials from limestone yard stockpile to the barge.

Technical Specification (For Equipment)

Engine Number of
Type of Vehicle Number Type of Fuel
Displacement Cylinders
10-Wheeler 1 unit Diesel
Dumptruck
Backhoe with 1 unit Diesel
breaker
Bulldozer 1 unit Diesel

Financing Viability

The operation and maintenance of the heavy equipments need a total cost of
Php 8,177,920.00 per annum. The would-be expenditures annually is based from the
experience incurred in operating and maintaining the equipment for one (1) year such
as fuel, oil (motor and transmission) and replacement of spare parts due to repair.

Breakdown Costs:

Type of
Fuel Oil Spare Parts Total
Vehicle
Dumptruck P 2,077,920.00 P 20,000.00 P 200,000.00 P 2,297,920.00
Backhoe 1,872,000.00 150,000.00 400,000.00 2,422,000.00
Bulldozer 2,808,000.00 150,000.00 500,000.00 3,458,000.00
TOTAL P 8,177,920.00
Risk Analysis

The conditions that may interrupt the regular operation of the business are as
follows:

 Malfunctioning of the trucks

 Irregular maintenance
 Over usage

Therefore, the following should be done to prevent and mitigate possible

problems that may arise during the operation of business:

 Proper allocation of fund for repair, rehabilitation and other expenses to be

incurred of the equipment.
 Come up with systematic schedule for maintenance and checking of truck’s
condition.

Prepared by:

FELIXBERTO T. CALVA JR.

Proprietor
SDC Trucking Services