Construction of Educational Institution

PROJECT PROPOSAL

Group Members
Madiha Shahzeb ---1984171
Humera Suleman---1984169

TABLE OF CONTENTS
1 INTRODUCTION
1.1 Executive Summary
1.2 Description of Business
1.3 Objectives
1.4 Stakeholders

2 PRODUCT/SERVICE
2.1 Purpose
2.2 Geographical Potential for Investment
2.3 Critical Factors

3 PROJECT ECONOMIC VIABILITY

4 PROJECT PROFILE
4.1 PROJECT BRIEF
4.2 LOCATION OF PROJECT
4.3 JUSTIFICATION FOR THE CHOICE OF LOCATION
4.4 SCHOOL BUILDING AND FACILITATION
4.5 CONSULTATION AND PARTICIPATION

5 PROJECT APPRAISAL AND SENSITIVITY ANALYSIS

5.1 PROJECT APPRAISAL
5.2 OPERATIONAL NECESSITY
5.3 PROJECT APPRAISAL METHOD
5.4 PROJECT SENSITIVITY ANALYSIS
5.5 SUSTAINABILITY

6 MONITORING PROCEDURES
1. Introduction

1.1 Executive Summary

Education plays a vital role in the progress of any nation and is responsible for its advancement towards
success. This Feasibility Study is about setting up the venture of a High School (Franchise) in small cities of
Pakistan. The motive to propose small city is due to market saturation in metropolitan cities of Pakistan and
unavailability of quality education institutes in semi urban areas or small cities. The proposed school will
offer its services from the classes from Middle to Matric education. The school will be catering to children of
middle to low-income economic stratum, recognizing the need for a high caliber yet low-cost institute.

1.2 Problem Statement

Pakistani economy, characterized by multi-ethnic regions with a population of about 147,099,534 people
(population census, 2006) and diverse religious sects, is plagued with high levels of illiteracy (46%) and an
increasingly declining educational standard. It is estimated that more than 35 million of this population figure
are 15 years old or younger that is about 40 percent of the total population. This implies that almost 20 million
of these should be attending Nursery and primary schools. There is no doubt that primary school system in
Pakistan is facing serious problems, despite this huge number of pupils it has to cater for and the problem
facing the Pakistan education is the low standard facilities at the point of establishments.
Moreover, across the various geo-political zones within the country, the standards of education differ from
one region to the other with this being largely culture dependent. It should be noted that the standard of
education witnessed at the tertiary level can be traced to the worrisome standard at the Nursery and primary
school tiers of education, since the Nursery and primary school education is a foundation upon which all other
levels of education are built.

1.3 Justification of the Project

Though the establishment of private primary and secondary school is found to be continuously increasing over
time in almost all part of the country, the case of those Private Schools that follows the government and
International standards are very few. Moreover, the level of illiteracy rate is (46%) which is still very high when
compared with other countries of the world like India with illiteracy rate of just (30%). In line with this, the
United Nations (UN) has asserted that to ensure development in every nation of the world, attention must be
given to education prompting it to identify Universal Primary Education as one of the eight Millennium
Development Goals (MDGs).

Furthermore, to propel educational advancements in every nation, the United Nations Children Education
Fund (UNICEF) has proposed that about 26% of each country’s annual budget should be devoted to the
educational sector. Unfortunately, this has not turned out to be the case in Pakistan with a meager 6% of its
annual budget being allocated to education yet; the country expects to compete favorably with other world
nations in terms of educational achievements. In view of the obvious reluctance of the Pakistan government at
various levels to commit the much needed resources necessary to advance the level of education in the
country, the onus therefore lies with private entities that have passion for children and also know the value of
quality education to provide such.
4.0 PROJECT PROFILE

4.1 Project Brief

This project proposal is about education center construction of which will be known as Zikar Education
Centre. Upon completion, it will have primary education till matric. Secondary education will consist of
high school level. The official language will be English and Urdu, which will be used at all levels.

The proposed capacity of high School is 480 Students in one year. Initial capacity utilization is
estimated at 60% with a growth rate of 15% per annum. This production capacity is estimated to be
economically viable and justifies the capital as well as operational cost of the project. However,
entrepreneur’s knowledge of education industry, experienced management, qualified faculty and
location of institute are key factors for the success of this project

As mentioned earlier, the scope of this project proposal will be to construct the education center within
five years, whereby pre-secondary school will start simultaneously in one year while building
construction will be progressing. Secondary school is planned to commence in year three and advanced
level in year four.

The general goal of this school is to have a school center which will offer education of high quality
basing on Pakistan Ministry of Education curriculum. This center will provide accommodation to those
who are coming from a distant area and also provide tea as well as lunch to those who stay at home.

The education center has its plan in future to have branches in different regions depending on
availability of fund as it is in the process of requesting grants from the government. This is because
Punjab has made progress in making education as practical and market oriented as possible guided by
the government policy of education for self-reliance. The subject combinations are tailored towards
what is offered in tertiary and higher education

Project Purpose:

The school will start its operation by starting classes from Secondary to Matriculation (Secondary
school). Providing education from primary level onwards ensures consistent quality of education from
an early stage. The school can be opened in underdeveloped cities across Pakistan. The area should be
selected near the residents of middle/low-income group. The proposed project will provide
employment generation to local residents of low-income housing community. The legal status is
proposed to be ‘Sole Proprietorship’.

4.2 Location of the Project

`The high School shall be sited at, Bitholdi Colony, Sahiwal District, Punjab. At Bitholdi colony there are
about six plots of lands 1 kanal each ready to be sold to intended buyers at the rate of 850,000 per plots.
The Punjab ministry of education suggested that we use two plots of land, but due to the facility we
have in mind and to create a conducive and recreational environment for learning, we have decided to
buy 4 plots out of these six plots of land. The area where the school will be located, there is a public
primary school and several other privately owned schools. The area although just developing, has
potentials that can be easily tapped in before the development come to full state.

4.3 Justification for the Choice of the Location

The available schools in this area have poor teaching standard, inadequate facilities and poor staffing,
many parent prefer to send their children to far away distances where few standard schools exist. Also,
the recent construction of road serves as an easy access to the area by residents of Bitholdi colony, who
have decided to send their children to far away distance due to flooding during raining season. Finally,
this area still have some un-developed lands that can used for the construction of the project, since it is
a fast developing area.

2.2 Geographical Potential for Investment

All the semi-urban areas of Pakistan are the potential areas for investment in high school business as
education is a basic necessity for every kid. It is suggested to open the school in populated residential
areas so that target market could easily access the school. The proposed school will cater the middle
and low-income group of society, therefore, it is important to identify the area where these classes
reside.

Entrepreneur also needs to investigate the market dynamics like market competition, current market
growth rate and purchasing power of target market. Reasons to propose a small city is that all school
chains have already entered in metropolitan cities and the school market of metropolitan cities have
already become saturated. Beside this, as per the policy of franchisers they don’t offer franchise within
the radius of 4 kilometers in order to provide a fair chance of profit making for their franchise.

1.3 Stakeholders
 People living in vicinity (middle and lower middle class)
 Pakistan Schools Association
 Government of Pakistan
 Investors
 Age group of target market is young generation (i.e. 5 to 16 years)
4.4 School Buildings and Facilities

The school building will be constructed based on the standard issued by ministry of work, land and
Housing and transport in Sahiwal District, but rather than two plots, we have decided to use four plots
so as to have adequate space for recreation, playground and parking space.

Buildings for:
 Administration Block( reception, six offices, storerooms)
 Academic Block (14 class rooms, a library, multi purpose laboratory and a conference room)
 Boundary Wall

 External Development
Roads, Water supply, Over head Tank, Sewerage, Drainage, Sidewalks, Landscaping,
Electricity, Telephones & Entrance Gate ways.

 Laboratories Equipment for Electrical, Mechanical and Civil Engineering Departments

 Furniture and Fixture
 Operational Vehicles
 Generators
 Project Execution Staff

4.5 Consultation and participation

The project has also involved some experts especially for works like, conducting project feasibility study,
design and drawings, buildings constructions, risk analysis, project evaluation etc. registered
construction firm and its staffs are backed up with vast experience in the building design and
construction industry as well as projects planning; project appraisal and financial management .

5.0 PROJECT APPARAISAL AND SENSITIVITY ANALYSIS

Methodology of the study

The feasibility of the study is on the establishment of the primary and secondary school in Bitholdi
Colony, Sahiwal. The methodology is based on physical visitation and interview of school owners, the
ministry of education, the pressure groups that regulate the activities of private school in the state and
every other agents like property dealers, publishers etc. This information is analyzed using various
Investment appraisal techniques.

5.1 Project Appraisal 

Business dictionary defined project appraisal as a systematic and comprehensive review of the
economic, environmental, financial, social, and technical and other such aspects of a project to
determine if it will meet its objectives.
5.2 Operational necessity

Every project proposal should pass through this criterion for appraisal. In our education center, this
analysis will assist to determine the merit and acceptability of our school center in accordance with
under laid established criteria. This will be the final step before our project is accepted for financing. It
helps us know that our project is feasible against the situation on the ground that the objectives set
remain appropriate and that costs are reasonable.

5.3 Project appraisal methods

1. Social appraisal

The school facility is a lot more than just educational process. It will provide socially an experience to
students and educators and the community members, Depending on the quality of management,
safety and security.

A social appraisal will help us review the project design and the process of project identification by
implementing and monitoring its progress, from a social perspective. Particular attention will be paid
to the likely impact of the project on different stakeholders, their opportunities for participation,
and the project’s contribution to poverty reduction.

2. Institutional appraisal

This will help us ensures that the supporting institutions are in place and that they can operate
effectively within the existing legislative and policy environment. This project has identified
opportunities for institutional strengthening and capacity building at a relative cost.

3. Economic and financial appraisal

This helped our project to make an analysis of economic soundness of the project and quantification and
valuation of costs and benefits that ensured our financial viability.

4. Environmental appraisal

The plan was made to invite the government specialists in environmental appraisal. Environmental
Assessment (EA) will assist us to meet one of our goals of having a school center with a conducive
academic environment. Most countries have environment impact assessment (EIA) policy and
supporting legislation. Traditionally, EIA will be designed to operate at our project level to help us
identify impacts and mitigation measures for this project.

5. Technical appraisal

Technically, this project is going to be feasible .During the time of conducting technical appraisal, a
comprehensive review of all technical aspects of the project such as rendering judgment on merits of
technical proposals and operating costs will be clearly seen. Some of a checklist that will be used is:
 • To prove or test the technology that will be used to implement the entire tasks.

• To have a list of equipment and machinery to be installed with their cost and specifications.

• To know the equipment capacity and whether it is as per requirement etc.

5.4 Project Sensitivity analysis

Sensitivity analysis will be done in our project to help us determine which variables have the most
potential to affect this project. These variables include: task duration,   task start time, and success rate
and costs risks.

5.5 Sustainability:
In order to reduce the environmental footprint of the new building, construction must include the use of
energy-efficient materials, recycled materials and regional materials that all work together to ensure
maximum performance and cost-savings during the entire lifespan of the building.

1. Institutional sustainability:
After the successful completion of the school building, all the planned facilities will be used by teaching
and no teaching staff members and students for whom this whole project was planned.

The new learning institution will have fruitful impact on the students enrolled in this institute
The School and the resources shall be utilized optimally to cater to fresh batches of learners.

The implementing agency shall reach out to all the stakeholders and particularly the parent community
to for joint ownership to continue the program.

2. Project Economic Viability.

The financial and economic feasibility was carried out through various standard techniques of
assessing the viability of projects, both discounting and non-discounting were employed
and they all revealed that the project is viable and worth an investment to embark on.
The payback period shows that it will take one year, six months and 13 days for the
project to recover its initial investments while the return on Investment through the rate
of return reveals 154.3% and Average rate of Return shows 30.9% annually. The Cost
Benefit Analysis or Benefit Cost Ratio was also used and found to be 2.116, while the
Internal Rate of Return was 0.78 and the Net Present Value a nonnegative value of
120,479,048. Finally, we recommended that the project is feasible and viable; hence, it
should be embarking upon.

3. Environmental Sustainability:
The rain water harvesting structure installed at the roof top shall be useful during the droughts.
The students, teaching and non-teaching staff shall be urged to take the ownership of
cleanliness of the school premises and use the facilities properly.
6.0 Monitoring procedures.
Project staffs will regularly monitor the project. The chief functionary of the organization will also assess
the progress of the project through periodic review meetings with the project staff. Besides, the chief
functionary of the organization will conduct periodic evaluation of the various parameters assessing the
progress of the project in terms of various qualitative as well as quantitative indicators. The impact of
the project will be resulted in terms of increase in enrollment and improvement in infrastructure status
of the schools. It will provide in-process evaluation of the project that can again use as learning and
incorporated in ongoing project process. The monitoring arrangement and reporting formats should
include quantitative and qualitative information on the center.

Objectives which is maximally net output and profit.

The Major steps that have been adopted in analyzing the economic viability of this project are
 Identification and quantification of cost and benefits.
 Valuation of the cost and benefits.
 Comparison of the cost and benefits.
 In the economic feasibility, items such as sunk cost, transfer payments, taxes or subsidies
depreciation, loan repayment and interest payments are excluded in the analysis. All these items
constitute what distinguish economic analysis from financial analysis.