BUSINESS PLAN FOR MIXED USE BUILDING

FEASIBLITY STUDY FOR THE BUILDING OF

MIXED-USE BUILDING (B+G+5) IN ADDIS ABABA
CITY ADMINSTRATION,NIFAS SILK LAFTO
SUBCITY, MEKANISA

PROJECT OWNER

Ahmed Tebek MosSa

MARCH, 2021
G.C

Addis Ababa

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 BUSINESS PLAN FOR MIXED USE BUILDING

Table of Contents
1 Executive Summary................................................................................................................5
2. Introduction...........................................................................................................................6
2.1 General Background........................................................................................................6
2. Project Objectives..................................................................................................................8
2.1 General Objective............................................................................................................8
2.1.1 Specific objective...............................................................................................9
2.3 Project description...........................................................................................................9
2.4 Project Rationale..............................................................................................................9
2.5 The significance of the project.......................................................................................11
2.6 Project Location.............................................................................................................12
3. The Market Study................................................................................................................13
3.1 Market Analysis.............................................................................................................13
3.2 The Demand-Supply Gap..............................................................................................13
3.3 Current supply of Mixed-use building...........................................................................14
3.4 Future market or Demand of commercial Building Rental............................................14
3.5 Target customers............................................................................................................15
3.6 Marketing promotion and strategy.................................................................................15
3.7 Competition...................................................................................................................16
3.8 The project facilities and Services plan..........................................................................16
4 Technical Studies..................................................................................................................18
4.1 Description of the project Service..................................................................................18
4.1.1 Land Use Plan.........................................................................................................18
4.2 Building and Technology...............................................................................................19
4.2.1 Construction schedule.............................................................................................19
4.2.2 Architectural Design & Layout...............................................................................19
4.2.3 Structural design.....................................................................................................20
4.2.4 Reinforced concrete................................................................................................20
4.2.5 Foundation Design..................................................................................................21
4.2.6 Construction Plan and process................................................................................21
4.3 Utilities..........................................................................................................................22
5 Engineering and civil works.................................................................................................23

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 BUSINESS PLAN FOR MIXED USE BUILDING

5.1 Land, Building and Civil Works....................................................................................23

5.2 Manpower and training requirement..............................................................................24
5.2.1 Manpower requirement...........................................................................................24
5.2.2 Labor Availability...................................................................................................25
5.3 Project implementation..................................................................................................25
5.4 Organizational Structure................................................................................................25
5.4.1 Organization and management....................................................................................25
6 Financial analysis.................................................................................................................32
6.1 Repair and Maintenance Cost........................................................................................32
6.2 Depreciation and Amortization......................................................................................32
6.3 Total Revenue................................................................................................................33
6.4 Discounted Payback Period...........................................................................................33
6.5 Cash flow.......................................................................................................................33
6.6 Benefit cost ratio............................................................................................................33
6.7 Internal Rate of Return..................................................................................................34
6.8 Net present value...........................................................................................................34
7. Conclusions and Recommendations....................................................................................35
Conclusion...........................................................................................................................35
References...............................................................................................................................37

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 BUSINESS PLAN FOR MIXED USE BUILDING

List of tables
Table 1: Office Space Demand Forecast……………………………………. 12

Table 2: The ground will be partitioned in to different rooms………………..4

Table 3: land utilization Plan ………………………………….……….…….16

Table 4: Utilities………………………………………………………………20

Table 5: List of Building and Civil Works and Their Costs …………………21

Table 6: Manpower Requirement and Annual Labor Cost……………..…….22

Table 7: project Implementation schedule…………………………………… 23

Table 8: Repair and Maintenance Cost ……………………………………….31

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 BUSINESS PLAN FOR MIXED USE BUILDING

1 Executive Summary
KEY INFORMATION HIGHLIGHTS

PROJECT OWNER AHMED TEBEK MOSSA

PROJECT TITLE Mixed use Building

LAND REQUIREMENT 500 M2

PROJECT AREA Addis Ababa, Nifa Silk Lafto Sub City

PRODUCTION CAPACITY B+G+5

PRODUCTS TO BE MANUFACTURED
Rental Rooms, office and meeting halls

MARKET Domestic and International

COST OF THE PROJECT 60,000,000.00 Birr

PROJECT LIFE 10 YEARS

NUMBER OF WORKING DAYS 365 DAYS

FINANCIAL VIABILITY ( AT 10% DISCOUNT RATE )

NPV (NET PRESENT VALUE) 54,439,417 BIRR

IRR (INTERNAL RATE OF RETURN) 34.13%

PBP ( PAY BACK PERIOD) 3year and 9month

ANALYSIS RESULT

THE PROJECT IS TECHNICALLY FEASIBLE, FINANCIALLY AND COMMERCIALLY VIABLE

AS WELL AS SOCIALLY AND ECONOMICALLY ACCEPTABLE. HENCE, THE PROJECT IS
WORTH IMPLEMENTING.

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 BUSINESS PLAN FOR MIXED USE BUILDING

2. Introduction

2.1 General Background

Ethiopia has embarked on a long-term development strategy which aims at achieving

sustainable human development with all pre-requisites for a middle-income country by the
year 2025. This envisages creation of a strong, diversified, resilient and competitive economy
that can effectively cope with the challenges of development and that can easily adapt to the
changing market and technological conditions in the regional and global economy. The
priorities identified as the essential catalyst for the attainment of the Vision 2025 objective
include development of infrastructure as an important ingredient towards attainment of faster
economic growth. The construction industry is a fundamental economic sector which
permeates most of the other sectors as it transforms various resources into constructed
physical economic and social infrastructure necessary for socio-economic development. It
embraces the process by which the physical infrastructure is planned, designed, procured,
constructed or produced, altered, repaired, maintained, and demolished. The construction
industry has important contributions to the Ethiopian economy, as demonstrated by its share
in the GDP. The sector has registered a remarkable growth, over the last 11 years there has
been increased investment on the development and expansion of various infrastructure
projects.

During the past decade robust public and private expenditure on infrastructure and other
construction works has served as a catalyst for Ethiopia’s rapid economic development. The
country has consistently invested more than 30% of GDP into Gross Fixed Capital Formation
(GFCF) expenditure since 2010 and as a result, Ethiopia has emerged as one of the fastest-
growing economies in the world. The market value of the construction sector is currently
estimated at more than US$7bn. According to the 2017 edition of African Economic
Outlook, construction activities in Ethiopia accounted for 15.9% of GDP at current prices
during the 2015/16 fiscal year.

The current fast and dynamic economic growth of Ethiopia especially in Addis Ababa necessitates
equivalent growth of building and construction sector. The sector should expand rapidly to support
the overall economic development sustainable.

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In the building sector of the economy, the multi- purpose in the one becoming rapidly expanding in
Addis Ababa since dynamic economic development of urban economy requires the construction of
these buildings in the city to support the growing of business service sectors like supermarkets,
Beauty salon, shops, offices cinemas, Computer Center, Cafeterias, Restaurant, Assembly hall,
apartments and other activities. In this regard, mixed used building expands in the all parts of the
city.

Investment and property development play an important role in any emerging markets or
economies. Property generally comprises residential houses and commercial real estate property
(mainly mixed-use building) developed for rental business, company office and sale. The property
investment market in Ethiopia remained under developed for several years. As a consequence, the
supply of residential houses and non-residential real estate that can be used for residence, office
space, shopping malls and catering services in the urban centers of the country is
disproportionately low to cope with the growing demand in the country spinning from the average
growth in GDP of 5.5% over the last ten years and population increase. The relatively good
performance of the macro-economy (real growth in GDP, low inflation rate and growth in
investment and export sector) has stimulated unprecedented investment growth in the property
sector over the last five years. The growth of investment in the property market over the last five
years in consistent with the global experience suggesting that investment in the residential and
commercial property is greatly influenced by the performance of the macroeconomic conditions. In
general, a stable macroeconomic condition leads to economic and business growth and develops
investors’ confidence. This certainly spurs large demand in the property market for office space,
shopping malls, catering services, apartment and residential houses. Following growing demand
trends, and with the expectation of high return on their investment capital, large number of land
developers pooled their financial resources and invested in the property market.

To this effect, the owner of the envisioned Mixed-Use Building Ethiopia-based company, Ahmed
Tebek Mossa, who has been living for long time in this city, planned to buy and rent in Nifas silk
lafto Sub-city (Mekanesa) and undertaken this project study to check the market, technical and
financial feasibility of this project. The promoter is very ambitious and committed to realize the
project to buy and rent B+ G+5 mixed use building. Hence, they expect to get the necessary
support from United Bank to make the project to be operational.

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Besides, the government policies and incentives for the private sector investment are very
promising that motivates the promoter to engaged in mixed use building business.

2. Project Objectives

2.1 General Objective

The major goal of this project is to contribute towards the growth of the trade sector in Addis
Ababa.

Its specific objectives include the following.

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2.1.1 Specific objective

 To construct and develop modern shops, offices, and restaurant & cafeteria facilities that
enable to provide standard services to customers.
 To undertake trading and other refuted business activities that enable to generate a
reasonable to the invested capital.
 To develop modern business center that would provide full services on city standard.
 To create employment opportunities.
 Contribute towards the beautification of the city through the construction of modern
building infrastructure and facilities.
 To establish economically viable, socially acceptable and environmentally friend mixed
use Apartment.

2.3 Project description

The long-term goal of the project is become the best choice trade center in the city. The proposed
project will have a total area of 500m2 in which the construction area is 250m 2, designed to reader
a multipurpose giving business, which will in turn plays significant role towards solving shortage
of business center in Addis Ababa.

The historical nature of the city as business unique location in one of the most attractive centers in
Ethiopian (100% urban center). The owners plan the project to render banking and insurance,
shopping facility, offices and cafeteria services to create high quality class to satisfy the interest of
customers in the city. Based on environmental and other considerations, the entrepreneur has
determined the type and size of the building which is already determined by the site; conceptual
planning and preliminary analysis have been carried out by analysts.

In order to attract its clients to the service, the project will develop high standard shop & banking
rooms and office of best choices and will also save best quality apartments, restaurant and café.

2.4 Project Rationale

Mixed-use projects are developments which combine two or more types of revenue producing real
estate developments. Mixed-use projects may be either low rise suburban projects or high rise, high

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density urban projects. Mixed-use projects were created to satisfy a convenience and marketing
demand using valuable property for its highest and best use. For instance, to have a hotel function
provides advantage for office visitors while creating a demand for the hotel itself. The synergy
created between the components creates vitality for the mixed-use development and generally
combining different functions in one single project is superior to each single development. Mixed-
use developments are characterized by:
 three or more significant revenue-producing uses (such as retail/entertainment, office,
residential, hotel, and /or civic/cultural/recreation) that in well planned projects are mutually
supporting;
 significant physical and functional integration of project components (and thus a relatively
close-knit and intensive use of land), including uninterrupted pedestrian connections,
 development in conformance with a coherent plan (that frequently stipulates the type and
scale of uses, permitted densities and related items).
Integrated shared parking is a key component, improving land-use efficiencies and reducing cost.
Pedestrian circulation and orientation are critical elements in the planning process, because without
them, the project will not work as a whole and will not achieve the desired synergies and sense of
place that are the hallmarks of mixed-use developments. This second criteria distinguishes mixed-
use developments from other real estate projects that may include three or more significant revenue
producing uses but do not fully integrate them such as business parks or master planned
communities.
Physical configuration of mixed-use developments can be categorized into three groups as below:
 Mixed-use Towers: These are single, high rise, high density towers. Functions are layered
vertically. Mostly located in downtown. They have striking physical profile and create land
marks so helpful in marketing the development but have a disadvantage of creating less
public outdoor space.
 Integrated Multi-tower Structures: These structures architecturally connect individual
buildings and towers in one multi-component development. Common building may be an
atrium, a shopping center or underground parking area. Mostly found in downtown central
business district (CBD) or high-density suburban downtowns.
 Mixed-use Town Centers, Urban Villages and Districts: This type of mixed-use projects is
made up of variety of individual buildings around streets, parks or squares and seems like

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an urban district more than a single project. Mostly developed outside downtowns. Mixed-
use town centers, urban villages and districts are clearly the direction that most mixed-use
designs are moving today. They also offer greater flexibility for timing and phasing
projects, important factors in improving feasibility and reducing risk. The existing
promising investment opportunities, the demands of service need along with relatively
sound investment support made by the government in such kinds of feasible projects,
compelled the project promoter to initiate the multipurpose oriented business project to be
established. Despite the promising business opportunities of the city, the trend on such
kinds of investment found to not enough. The mismatch between the demand for and
supply of such kind of services in easily observed in the city.

Therefore, the existing shortage or absence in the supply of these services, along with its
commercial and administrative access, better location and infrastructure access, escalating trend of
urbanization and business activities, thus it is with such reason that this project is identified and
proposed and assumed to be more profitable.

In general, the country’s privatized and free market economy; good governance creates a favorable
environment for the development of investment for private investors.

2.5 The significance of the project

The envisaged project deemed to add to the economic development of the city in general in
specific with following ways:

A. Source of Revenue

As public policy of any nation, the government collects different forms of taxes from different
business organizations and individuals. Among the different forms of taxes, business income taxes,
payroll income tax, lease payment and VAT are collected from undertaking business activities.
Therefore, the building will serve as sources of revenue for the city.

B. Employment opportunity

One of the problems that our country faced is unemployment. Therefore, the current objective of
the government is working on tackling the problem of unemployment and fostering the

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development process either through creating self-employment or employment in other

organization. Hence, this project will hire 26 individuals after completion of the project and more
than 400 individuals during construction.

2.6 Project Location

The license area is located in Addis Ababa City Administration;Nifas Silk lafeto Sub city, the total
area of the project is 500 m2.

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3. The Market Study

3.1 Market Analysis

There are a number of factors which affects the demand of standardized mixed-use building. Of
these factors, the most important to have influence is population growth and the level of income.
The currently expanding service industry in Addis Ababa and from every corner of the country the
city has been inviting skilled and unskilled labor forces to the center; in addition, the number of
both national and international offices has been increasing. Above all the increase in the number of
population increases for the provision of different services. Nowadays, most of the private business
organizations need their own small-medium offices in order to give their services and provide their
products, and they prefer the place that found in the center or close to the road.

As clearly indicated in the introductory part of this proposal, Addis Ababa is the dynamically
growing urban center of Ethiopia. Though the market demand gap for mixed use building is not
clearly understand there is wider gap for such demand as many merchants, organizations are
flouring to the city every day. From prior business experiences, the demand of mixed-use building
is very high and hence the demand and the supply gap is very wide.

3.2 The Demand-Supply Gap

There has been a significant growth in the number of local and international trades across the
country. This increase is mainly associated with the stimulation of economic activist and partly due
to an increase in the flow of international and local traders in to the Addis Ababa. Since Addis
Ababa is an important commercial center in addition there is a significant increase in business
activates and hence increasing the number of traders. Even though there is a lack of quantitative
estimates that depict the actual demand and also the annual growth rate commercial facilities are
scarce in the city. As a result, there is a large gap between the developed and that of the supply for
modern Bank and cafeteria accommodation hence this project would not face any problem of
demand scarcity for its business Centre and it would provide good service to customers.

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3.3 Current supply of Mixed-use building

Commercial building/office sector has shown a dynamic change in the past few years. The reason
for this could be rapid economic growth and a supporting public infrastructural development.
Other factors relevant in the specific case of commercial buildings are the large increases in
national and international businesses, particularly firms in the services sector.

The business of multipurpose buildings in Addis Ababa in booming highly due to the recent rapid
growth experienced in Ethiopia. As a result, a good number of local and international
organizational are coming in place. Government offices which used to operate in limited spaces all
over the city are also concentrating on leasing new and modern buildings. Increasing numbers of
international organization which in the past had typically converted residences into office space are
now moving towards renting whole floors or even multiple floors in modern city-center
commercial buildings.

3.4 Future market or Demand of commercial Building Rental

The demand for office space is a derived demand because firms rent space as an input to the
production of services or goods they provide to businesses and households in the local or national
economy.

Following our survey of office space users in several areas are mainly firms providing banking,
offices, cafeteria and restaurants, supermarkets, computer center service. Future demand for office
space is actually driven from growth in number of offices in the city which in turn is influenced by
the macro-economic growth in the country. Assuming that demand for office space is directly
related to the growth in the economy, the forecast for office space demand is shown in the
following table;

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Table 1: Office Space Demand Forecast

Office space demand under base Office space demand under high
case economic case economic
Years E.C Growth Growth
2010/2011 9,916,543 11,304,859
2011/2012 11,007,363 12,057,416
2012/2013 12,218,173 12,953,878
2013/2014 13,562,173 13,963,577
2014/2015 15,054,011 14,554,534
2015/2016 16,709,952 14,987,431
Source: estimation based on GTP’s forecasted Ethiopian Economic Growth

3.5 Target customers

The target customers of this envisaged project include: -

 Business Community
 Business organization
 The government bureau
 Non-governmental organizations

3.6 Marketing promotion and strategy

In order to penetrate and gain considerable market share, one of the major marketing strategies for the
project is consistently rendering quality service to its tenants. Due emphasis must be placed on
improving quality of service and facilities. The major marketing strategies to promote the project and
gain considerable market share include:

 Advertising through different means focusing on the existing service and facilities
 Promote in association to the key location and nearby business
 Working on sustained promotional work.
 Working on public relations to reach and influence key personas and organization with a
capacity of making decision.
 Keeping the quality of its service/ facilities and consistently improving with changing
situations.

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 Seasonal discount pricing different others customer centric marketing strategies will be
used by the company.

3.7 Competition

There are different forms of competition that may face the envisaged mixed-use building. These
are price and non-price-based competition. Moreover, there are different competitors that will
compete with the project either directly or indirectly. But the mixed-use building under discussion
has diversified marketing strategies that could enable it come up with the different competitors in
the market. Moreover, it will frequently conduct competitors research which focuses on, the
strength and the weaknesses, the different competitors’ strategies, the techniques they use in
rendering the service, their customer handling methods, and others. Generally, the project has
many other projects all over Addis Ababa villages which compete with it.

3.8 The project facilities and Services plan

In order to provide mixed use business center building services of a high standard, it has been
planned to construct and develop the infrastructure and facilities that would viable to meet the
requirements of an international standard business center. Accordingly, various buildings and
facilities will be constructed phase by phase starting with the most needed ones that are essential to
commence the operation of its business activities. With the completion of construction, the
building will provide a combined service such as shops, offices, restaurant and café service as well
as modern business center that primarily serve its guests and major clients.

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Table 2: The plan is that the ground will be partitioned in to different rooms:

Building Description Measure Unit Total

pric
e in
Birr
Basement Parking Cars 5/per 5*50*365=91,250
Service hour
Ground Supermarket, M2 350 350*1100*12*2=9,240,000
Bakery,
Pharmacy,
Banking &
Insurance
1st floor -2rd Beauty salon, M2 224 224*1100*12*3=8,870,400
floor shop, Computer
Center, Cafeteria
and Restaurant
3rd floor Different offices M2 219 219*1100*12*4=11,563,200
4th -5th floor Apartments & M2 150 150*1100*12*13=25,740,000
Meeting halls
Total 55,504,850.00

Since the project will be engaged in mixed building the main sources of its annual revenue would be
from the rental of building spaces such as different types of shops, offices, and banking, café and
restaurant. Therefore, the sources of revenue have been classified in to one category namely the rental of
banking and supermarket, offices, shops, restaurant and café, meeting halls based on these
classifications. Based on the market price of similar mixed-use building in the area, the envisioned
buildings set the following fair price (Before VAT) for its service, hence when the building construction
fully get operational it is assumed to generate a yearly income of ETB 55,504,850.00.

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4 Technical Studies

4.1 Description of the project Service

The envisioned mixed purpose building will provide different rental services to the different
customer groups for different purpose. The building will have basement, ground and 20 (twenty)
floors. The purpose of the building explained as follows;

 The ground floor, first floor second floor and third floor designed for different
business centers like banks, supermarket, beauty salon (man and women), Computer
center, pharmacy, internet café, boutiques, bakery, different shops and other business
activities,
 3rd floor designed for Offices.
 4th-5th floors designed for entertainment and meeting hall

4.1.1 Land Use Plan

The total land required for the envisioned project is estimated to be 500m 2. The total area for the
construction of the building will be 300m2, as revealed below.

Table 3: Land utilization Plan

No Description Land M2
Basemen Groun First floor- floor
t d Twenty
1 Building (G+5)
1. Basement 300
1
1. Ground 300
2
1. First floor- Floor Twenty 300
3
Total 300

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4.2 Building and Technology

4.2.1 Building

The building has been completed and is fully operational. The rest of the work will be completed
the next time and you will be able to earn extra income by renting out unoccupied rooms..

Mechanical and Electrical install coincided with each other due to the need for coordination
between the two divisions. There were several periods of construction during the schedule in
which there were multiple construction activities occurring at the same time.

The construction site must be organized accordingly as these processes take place. As with any
construction project, the goal of the schedule will to complete all the maintenance and finishing
activities. This date of completion of maintenance & finishing works are practical based on the
time of year.

4.2.2 Architectural Design & Layout

Although functional spaces for the project were laid out in significant detail, the rest of the
building had designated spaces but set layouts. It was at the discretion of the project promoter to
devise typical layouts for the non-detailed commercial and office spaces. To make sure that the
building’s layouts were practical, the project owner researched typical architectural layouts for
laboratory and executive office spaces. The walls and partitions throughout the floor were
congruent with the structural frame and column locations.

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4.2.3 Structural design

One of principle deliverables of the project is the structural design of the building. The structural
bays were coordinated with the layout of the building adjustments would be made to the bays if
specific layouts were necessary. The frame would be made up of a grid with repeating standard
structural bays. Included in the structural system were bay sizes, shape and size of structural
members, floor compositions and curtain walls. These elements were established to resist gravity
at lateral loads as appropriate.

The gravity load design was completed for two frames; one of structural steel and one of
reinforced concrete. The structural steel frame was choose for further design based on cost per
square foot, local availability of material and constructability considerations, such as erection and
fabrication. The steel system was then be designed for lateral loading with necessary adjustment
being made to framing.

4.2.4 Reinforced concrete

The project group prepared hand structural design calculations for a typical bay of a reinforced
concrete frame. In all reinforced concrete bay designs, a superimposed dead load of 8 pounds per
square foot was assumed for mechanical equipment, floor coverings and ceilings.

Similarly, the design of the typical bay accounted for the use of different commercial space, in
which a live load of 1000 pounds per square was assumed. Loads was calculated based on the
requirements of the minimum Design loads for Buildings and other Structures.
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4.2.5 Foundation Design

The design of a superstructure may be accurate, have considered all possibilities and still fail
because the substructure is incapable of distributing the applied loads to the supporting soil.

Foundation design takes more into consideration than merely the loading from the columns. While
the main part of the project focused on the structural frame and its alternate designs, a preliminary
foundation plan was designed based upon maximum load carried from the superstructure through
the columns. The foundation design conducted by the project team consisted of the selection of
foundation type, determination of the bearing capacity and the design for typical interior and
exterior spread footings.

4.2.6 Construction Plan and process

The construction process for this project is normally a disjointed three mages development by
which the conceptualized need of the promoter of this project is translated into a functional facility
that was meet their needs in terms of time, cost and quality.

Based on a general program of the project owners the consultant who was going to be hired makes
site studies, develops structural designs, prepares drawings and specifications, determines
quantities involved and estimated the resultants costs. All these activities was done in the first
phase of the project which is the design stage after the document are produced by the designers
have been received, and the works secured the project is supposed to construct by its own
company. And then, the project constructor was expected to prepare and submits a detailed
construction program which includes material schedule, manpower requirement and cash flow
forecast.

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4.3 Utilities

A number of utilities world be put in place in order to ensure smooth functioning of the project.
These utilities include:

Table 4: Utilities

Cost
No Description Qty. Unit cost (Birr)
1 Electricity supply, kWh 100,000 1.30*10,000 130,000
2 Water Supply m3 50,000 10*500,000 500,000
20,000
3 Telephone and Internet Broadband

2000 19*2000 38,000

4 Fuel, Oil and lubricant

Total
1,188,000

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5 Engineering and civil works

5.1 Land, Building and Civil Works

The Mixed-use building has a total site area of 500 m2. The building floor area has covered
300 m2 and the remaining 200 m2 is left for construction. The type of buildings and its
corresponding civil construction cost is given on Table 5.

Table 5: List of Building and Civil Works and Their Costs

No Description Total price

  A.    SUB-STRACTURE  
1 excavation and earth works 483,657.25
2 concrete work 3,350,225.34
  Sub total 3,833,882.42
  B.     SUPER STRACTURE  
1 Concrete work 13,413,310.11
2 Block work 954,154.51
3 Roofing 296,016.84
4 Carpentry and joinery 560,104.80

5 Metal works 1,420,087.80

6 Finishing 5,382,686.43
7 Painting 477,132.06
8 Electrical installation 12,518,850.90
9 Sanitary installation 1,991,268.06
  Subtotal 37,013,611.51
  A+B 40,847,493.93
  Vat (15%) 6,127,124.09
  Grand total 46,974,618.02

As shown on Table 5, the total cost of building and civil work is estimated at Birr 46,974,618.02
and out of which the proponent has worked more than birr 23.6 million.

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5.2 Manpower and training requirement

5.2.1 Manpower requirement

The list of manpower and the annual cost of labor is indicated in Table 6.

Table 6: Manpower Requirement and Annual Labor Cost

Position No Qualification Monthly Annual

SN salary /Birr salary /Birr
1 General manager 1 BA in management 10,000 120,000
2 Building admin 1 BA in Acct/Mgt 8,000 96,000
3 Secretary 1 10+2 in secretariat 3,000 36,000
science
4 HRM Officer 1 10+2 in HRM/ 4,000 48,000
Management
5 Technical and 1 Diploma in building 8,000 96,000
maintenance maintenance
manager
6 Finance head 1 BA in Accounting 6,000 72,000
7 IT Technician 1 Diploma in computer 72,000
science/IT 6,000
8 Marketer 1 Diploma in marketing 5,000 60,000
9 Accountant 1 Diploma in accounting 4,000 48,000
10 Guards/Security 4 Basic 2,500 30,000
11 General Service 1 Diploma in Mgnt 6,000 72,000
head
12 Purchaser 1 Diploma in purchasing 3,500 42,000
&Sup Mgt
13 Electrician 1 10+2 in general 4,000 48,000
electricity
14 Plumber 1 10+2 in general 3,500 42,000
mechanic
15 Casher 1 10+1 in bookkeeping 3,500 42,000
16 Cleaner 5 Unskilled 3,000 36,000
17 Maintenance 1 10+2 in General 3,500 42,000
officer mechanic
18 Driver 1 10 completed 2,500 30,000
Total 26 86,000 1,032,000
Benefit (20%) 17,200 206,400
Grand Total 103,200 1,238,400

24
 BUSINESS PLAN FORMIXED USE BUILDING

5.2.2 Labor Availability

Workers for this type of plant were available throughout the year. No foreseeable problems
are expected as most of the work requires no previous skills.

5.3 Project implementation

The building is in full swing, with some work to be completed. The major activities include
Bank loan processing to buy and rent the building. The time schedule for major activities is
presented below:

Table 7: project Implementation schedule

S Activities Date
N
1 Preparation Project Proposal March 2021
2 Bank loan processing Mar- April 2021
6 Service execution May, 2021

5.4 Organizational Structure

5.4.1 Organization and management

Organizational Structure

The organizational structure of the project is designed by including all the necessary
personnel under the right division. At the top of the organizational structure, there will be
manager with the responsibility of supervising the overall activity of the building.
Depending up on the nature of the center and the amount of work to be performs; there
exist auxiliary units under the general manager.

Employees under each unit will be supervised by the department head that is accountable
for the general manager. General Manager is appointed by the owners

25
 BUSINESS PLAN FORMIXED USE BUILDING

As clearly shown in the organizational structure, the center organization has one general
manager and three main sections. Under the general manager there are the, Marketing
Department, Maintenance and Building administration department. Under building admin
dept there exist two sections i.e., HRM & finance and general service. Further sub sections
are also organized under technical and maintenance manager. The following section deals
with the duties and responsibilities of each department.

A. The General Manager’s Duties and Responsibilities

 He/she will plan, organize, direct and control the overall activities of the
building.

 He/she will devise policies and strategies that will enable the center to be
profitable.

 He/she will incorporate modern technological innovation that will facilitate the
service delivery of the building to increase customer’s satisfaction.

 He/she will plan, organize, direct and control the human and non-human
resources of the building so as to achieve the short and long run objectives of the
organization.

B. Building Administration Department

The building Administration Department of the multipurpose building has two main
sections (HRM and Finance and General Service section). It has responsible for
undertaking the following activities;

 Manage the human resources and control employee’s activity

 Well non-human resources of the project, which include; effective handling of the
different resources of the building, and devise strategies of controlling against fraud
and damage.
 Will provide the right material or inventory to the center with right price at the right
time.

26
 BUSINESS PLAN FORMIXED USE BUILDING

 Will plan, organize direct and control the financial transaction of the building by
using all the necessary documents.
 Accountant and casher that will collect money from the customers.
 Will develop sound financial control system by developing modern financial
control systems.
 Will prepare the annual financial statements and prepare condensed reports for both
the General Manager and other concerned government body.
 Follow the overall status of the business and provide maintenance and repair
services

C. The marketing Department

 Will handle the overall marketing activities of the organization which include
planning, organizing, directing, and controlling.
 Will develop the marketing strategies for future multipurpose building development
 Will develop effective customer handling strategies.
 Execute the promotion methods.

D. Technical and maintenance manager

 Will handle the overall physical maintenance and related issues

 Will make sure electricity and back up is organized.
 Follow up security issues and educate tenants
 Works in collaboration with general service to make sure tenants are well served

27
 BUSINESS PLAN FORMIXED USE BUILDING

Owners

General Manager

Building Maintenance Marketing Service Delivery

administration Department Department Department

Personnel Promotion
&Property Finance
Officers

IT, Supervisors
Electricity

Figure 1.organizational structure

28
 BUSINESS PLAN FORMIXED USE BUILDING

5.6 Financial Requirement and Analysis

The financial resource is a prime resource for undertaking any activities. Hence for
implementing this mixed use building a total of 60,000,000.00 ETB is required. From this
10% 6,000,000.00 birr will be covered by the promoter of the project while the rest 90%
(54,000,000.00) will be covered through loan from bank at the prevailing interest rate.

Therefore the said amount of finance is needed for undertaking the following.

5.1 fixed Investment

A. Land, Building & Construction
S. Description of works Total Cost in birr
N
1 Building construction 46,974,618.00
2 Site improvement 86,500.00
3 Design and supervision 207,600.00
4 land lease 731,167.00
Total 47,999,885.00

B. Building Machineries and Equipment’s

SN Description Measure Qty Unit cost in Total cost in
ment Birr Birr.
1 Generator Unit 1 519,000.00 519,000.00
2 Carpentry tool box Set 1 46,710.00 46,710.00
3 Electrician tools box Set 1 32,005.00 32,005.00
4 Plumber tools kit Set 1 21,279.00 21,279.00
5 Fire extinguisher Unit 12 27,680.00 332,160.00
(Security Equipment)
6 Elevator Unit 1 750,000.00 750,000.00
Total 1,396,674.00 1,701,154.00

29
 BUSINESS PLAN FORMIXED USE BUILDING

C. Vehicle
S Descriptio UO Qt Unit Cost Total Remar
N n M y in Fr. cost in k
Birr
1 Mini-Bus Unit 1 519,000.0 519,000.0 Duty Free
0 0
Total 519,000.0
0

D. Office Equipment
SN Description Measurement Qty Unit cost in Total cost in
birr Birr
1 Managerial tables Unit 1 12,600.0 12,600.00
0
2 Managerial chairs Unit 1 19,500.0 19,500.00
0
3 Office table with chair Unit 7 12,000.0 12,000.00
0
4 Secretarial table with chairs Unit 1 8,500.00 8,500.00
5 Computer with chairs Unit 1 15,000.0 15,000.00
0
6 Shelf Unit   3,500.00 3,500.00
7 Filing cabinets Unit 1 1,500.00 1,500.00
8 Guest chairs Unit 1 4900.00 4900.00
9 Fax & Telephone machine Unit 1 1,300.00 1,300.00
10 Carpet and Curtain LS 1   23,000.00
Total   101,800.00

Working Capital

Operating Expenses

SN List of Items Annual cost in birr Assumptions Used

1 Audit and legal fee 48,000.00 4000 br/per ,month
2 Stationery supplies 12,000.00 1000 br/month
3 Promotional Cost 40,000.00 Lump sum annual cost
4 Property Insurance 84,009.00 1% of the building
5 Cleaning Supplies 12,000.00 1000 br. Per month
6 Uniforms 12,000.00  
7 Water consumption 5,000.00 2500 m3 by 3.15 br

30
 BUSINESS PLAN FORMIXED USE BUILDING

8 Electric consumption 130,000.00 100,000KWH By Br.1.30

9 Fuel 38,000.00 2000 lit per year by Br.19
11 Telephone & fax 20,000.00 1800 per month
12 Repair expense 72,018.00 2% of building cost
13 Miscellaneous costs 40,000.00 6000 per month
Total 513,027.00  

Pre-service Expenses
S Description Cost in birr
N
1 Project proposal 100,000.00
2 Licensing fee and others
Total 100,000.00

Summary of Total initial investment cost

S Description Cost in Birr Percentage

N Share
1 Land, building & construction 45,130,431.00 75.22%
2 Building machines & 2,248,654.00 3.74%
Equipment
3 Vehicle 519,000.00 0.86%
4 Office Equipment 101,800.00 0.17%
5 Total fixed investment cost 47,999,885.00 79.99%
6 Salary expense 1,238,400.00 2.06%
7 Operation Expense 887,536.71 1.48%
8 Pre service Expense 100,000.00 0.17%
9 Total Working capital 3,774,178.29 6.29%
10 Sub total 54,000,000.00 90.00%
11 Contingency (10%) 6,000,000.00  10.00%
Total initial investment 60,000,000.00  100.00%
capital

31
 BUSINESS PLAN FORMIXED USE BUILDING

6 Financial analysis

The financial analysis of this mixed-use project is based on the data presented in the
previous chapters and the following assumptions: -

Finishing period 5 years

Source of finance 10 % equity
Debt finance 90 % loan
Bank interest 13%
Discount cash flow 10%
Accounts receivable 30 days
Raw material (perishable) 3 days
Raw Material (nonperishable) 30 days
Cash in hand 5 days
Accounts payable 30 days
Repair and maintenance 5% of equipment cost

6.1 Repair and Maintenance Cost

The annual repair and maintenance cost of the plant is estimated based on the following
rates.

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 BUSINESS PLAN FORMIXED USE BUILDING

Table 8: Repair and Maintenance Cost

Item Rate
Machinery and equipment 5% of the total cost or Book value
Building and civil works 2% of the total cost or Book value
Utilities 5% of the total cost or Book value

6.2 Depreciation and Amortization

The following depreciation rates are applied to depreciate the assets of the project:

 Buildings and associated Civil works 5%, linear to scrap Value

 Machinery and Equipment’s 10%, linear to scrap Value

6.3 Total Revenue

Based on the projected profit and loss statement, the project will generate a profit
throughout its operation life. Annual net profit after tax increases from Birr 8,810,480 at
the beginning of the project to Birr 22,502,429 during the last year of operation year. The
detail is presented in Annex.

6.4 Discounted Payback Period

The payback period, also called pay–off period is defined as the period required
recovering the original investment outlay through the accumulated net cash flows earned
by the project. Accordingly, based on the projected cash flow it is estimated that the
project’s initial investment will be fully recovered within 3 year 9 months.

6.5 Cash flow

The projected cash flow of the envisaged project shows that the project would generate
positive net cash flows throughout the operation years. Cumulative cash flow generated
by the project towards the end of the first operation year will amount to Birr 9,259,139.
At the end of the project life, this amount will rise to Birr 23,618,548. The detail is
presented in Annex.

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 BUSINESS PLAN FORMIXED USE BUILDING

6.6 Benefit cost ratio

The BCR is defined as the ratio of the sum of the project’s discounted benefits to the sum
of its discounted investment and operating costs.

When BCR > 1, accept the project

When BCR < 1, reject the project

When BCR = 1, be indifferent

Bt n

 (1  r ) t
t 0
BCR  n
Ct
 (1  r ) t
t 0

BCR is 5 and positive this indicates this project would return 5 birr in benefits for each birr
spent.

6.7 Internal Rate of Return

The internal rate of return (IRR) is an indicator of the efficiency or quality of an

investment. A project is a good investment proposition if its IRR is greater than the rate of
return that could be earned by alternate investments or putting the money in a bank
account. Accordingly, the IRR of the project after tax is computed to be 34.13% indicating
the viability of the project.

6.8 Net present value

Net present value (NPV) is defined as the total present (discounted) value of a time series
of cash flows. NPV aggregates cash flows that occur during different periods of time
during the life of a project into a common measuring unit i.e. present value. It is a
standard method for using the time value of money to asses’ long-term projects. NPV is
an indicator of how much value an investment or project adds to the capital invested. In
principle a project is accepted if the NPV is non-negative. Accordingly, the net present

34
 BUSINESS PLAN FORMIXED USE BUILDING

value of the project at 10% discount rate is found to be Birr 54,439,417 which is
acceptable.

7. Conclusions and Recommendations

Conclusion

The objective of this proposed feasibility study is primarily to facilitate the entrepreneur
with the investment information and provide an overview about project. The proposed
feasibility may form the basis of an important investment decision and in order to serve this
objective, the document covers various aspects of Concept Development, Start-up,
Production, Marketing, Finance and Business Management.

The feasibility is based on the information obtained from various sources as well as
discussions with businessmen. For financial model, since the forecast/projections relate to
the future periods, actual results are likely to differ because of the events and circumstances
that don’t occur frequently as expected.

Whilst due care and attention has been taken in performing the exercise, no liability can be
inferred for any in-accuracy or omissions reported from the results thereof. It is essential
that our report be read in its entirety with financial model in order to fully comprehend the
impact of key assumptions on the range of values determined.

The project is accessible and has the necessary infrastructure such as road, telephone, water
and electric power. The proposed project clearly identifies all the necessary equipment,

35
 BUSINESS PLAN FORMIXED USE BUILDING

inputs, management of the company and the required man power. The highest authority in
the project will be vested in the hand of the owner. He will control the overall activities of
the proposed project. Demand projection divulges that there is high demand for building
rental in the country. Accordingly, the planned project is set to provide quality services in
the area.

The proposed project possesses wide range of economic and social benefits such as
increasing the level of investment, tax revenue and employment creation for both women
and youths. It will have also environmental concerns to protect it by planting trees around
its working area and by utilizing environmentally friendly raw materials. Generally, the
project is technically feasible, financially and commercially viable as well as socially and
economically acceptable. Hence the project is worth implementing.

36
 BUSINESS PLAN FORMIXED USE BUILDING

References

Chandra, P; 2006.Projects Planning, Analysis, Selection, Financing, Implementation, and

Review, six edition. Tata McGraw-Hill publishing company Limited, New Delhi.

Eyob Deraro (2013) Project Proposal for the construction of Mixed use Building.

Wikipedia: The Free Encyclopedia. Retrieved December 10, 2006 from the World Wide
Web www.wikipedia.org.

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 BUSINESS PLAN FORMIXED USE BUILDING

Annex 1. Sales Revenue

Descriptio  Project year
n
1 2 3 4 5 6 7 8 9 10
Ground floor Rent
9,240,000 10,164,000 11,180,400 12,298,440 13,528,284 14,881,112 16,369,224 18,006,146 19,806,761 21,787,437
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
350 385 424 466 512 564 620 682 750 825
Rent for shop and
office 1-3 floor 2,956,800 3,252,480 3,577,728 3,935,501 4,329,051 4,761,956 5,238,152 5,761,967 6,338,163 6,971,980
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
224 246 271 298 328 361 397 437 480 528
Rent for shop and
office 1-3 floor 2,890,800 3,179,880 3,497,868 3,847,655 4,232,420 4,655,662 5,121,229 5,633,351 6,196,687 6,816,355
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
219 241 265 291 321 353 388 427 469 516
Rent for shop and
office 4-5 floor 1,980,000 2,217,600 2,439,360 2,439,360 2,683,296 2,683,296 2,951,625 2,951,625 3,246,787 3,246,787
Size 1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price 150 165 182 200 220 242 266 292 322 354
Parking 91,250 100,375 110,413 121,454 133,599 146,959 161,655 177,820 195,602 215,163
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
5 5.50 6.05 6.66 7.32 8.05 8.86 9.74 10.72 11.79
Total Sale 17,158,850 18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721

Annex 2. operating cost

38
 BUSINESS PLAN FORMIXED USE BUILDING

Operating years of the project

Description 1 2 3 4 5 6 7 8 9 10
A. Direct cost                
   
Raw Material Cost 513,027 538,678 565,612 593,893 623,588 654,767 687,505 721,881 757,975 795,873
 
Sub-total
                   
Total Direct cost
                   
B. Indirect cost                    

  Wages and Salary 1,238,400 1,300,320 1,365,336 1,433,603 1,505,283 1,580,547 1,659,574 1,742,553 1,829,681 1,921,165

  Repair and Maintenance 667,449.00 667,450.00 667,451.00 667,452.00 667,453.00 667,454.00 667,455.00 667,456.00 667,457.0 667,458.00
0
  Property Insurance 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00

  Utility 1,188,000 1,247,400 1,309,770 1,375,259 1,444,021 1,516,222 1,592,034 1,671,635 1,755,217 1,842,978

  Land lease 422,640 422,641 422,642 422,643 422,644 422,645 422,646 422,647 422,648 422,649

  Advertising and 50,000.00 50,001.00 50,002.00 50,003.00 50,004.00 50,005.00 50,006.00 50,007.00 50,008.00 50,009.00
Promotion

  Miscellaneous Expense 40,000.00 40,001.00 40,002.00 40,003.00 44,003.30 48,403.63 53,243.99 58,568.39 64,425.23 70,867.75

Total operating cost 4,123,791 4,270,766 4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022 5,551,686 5,775,275

                     

39
 BUSINESS PLAN FORMIXED USE BUILDING

Annex.3 income statement

Operating years of the project

Description 1 2 3 4 5 6 7 8 9 10
Sales Revenue 17,158,850 18,914,33 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
5
Less: Operating cost 4,123,791 4,270,766 4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022 5,551,686 5,775,275

Income before 13,035,059 14,643,569 16,380,679 18,055,279 20,145,379 22,184,667 24,705,145 27,191,888 30,232,314 33,262,446
Depreciation and
interest

Less: interest 448,658.00 448,658.00 448,658.00 448,658.00 448,659.00 448,660.00 448,661.00 448,662.00 448,663.00 448663

Income before 12,586,401 14,194,911 15,932,021 17,606,621 19,696,720 21,736,007 24,256,484 26,743,226 29,783,651 32,813,783
Depreciation
Less: Depreciation 0.00 0.00 667,449 667,450 667,451 667,452 667,453 667,454 667,455 667,455

Profit /Loss Before 12,586,401 14,194,911 15,264,572.00 16,939,171.00 19,029,269.00 21,068,555.00 23,589,031.00 26,075,772.00 29,116,196.00 32,146,328.00
Tax
Less: Tax (30%) 3,775,920.30 4,258,473.30 4,579,371.60 5,081,751.30 5,708,780.70 6,320,566.50 7,076,709.30 7,822,731.60 8,734,858.80 9,643,898.40

Net Profit or Loss 8,810,480.70 9,936,437.70 10,685,200.40 11,857,419.70 13,320,488.30 14,747,988.50 16,512,321.70 18,253,040.40 20,381,337.20 22,502,429.60
After Tax

40
 BUSINESS PLAN FORMIXED USE BUILDING

Annex. 4 loan disturbance

Installment Periods (in years )

Item 0 1 2 3 4 5 6 7 8 9 10
Loan disbursed                    
24,158,528
Principal       3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,21 3,451,218
24,158,528 8
Interest (13%) 4,486,583 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658
Total 28,645,111 448,658.00 448,658.00 448,658.00 3,899,876.0 3,899,876 3,899,876 3,899,876 3,899,876 3,899,87 3,899,876
0 6
Outstanding                    
Balance

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 BUSINESS PLAN FORMIXED USE BUILDING

Annex. 5 Man power

SN Position No Qualification Monthly Annual salary

salary in Birr in Birr
1 General manager 1 BA in management 10,000 120,000
2 Building admin 1 BA in Acct/Mgt 8,000 96,000
3 Secretary 1 10+2 in secretariat science 3,000 36,000
4 HRM Officer 1 10+2 in HRM/Management 4,000 48,000
5 Technical and 1 Diploma in building maintenance 8,000 96,000
maintenance manager
6 Finance head 1 BA in Accounting 6,000 72,000
7 IT Technician 1 Diploma in computer science/IT 6,000 72,000
8 Marketer 1 Diploma in marketing 5,000 60,000
9 Accountant 1 Diploma in accounting 4,000 48,000
10 Guards/Security 4 Basic 2,500 30,000
11 General Service head 1 Diploma in Management 6,000 72,000
12 Purchaser 1 Diploma in purchasing &Sup Mgt 3,500 42,000
13 Electrician 1 10+2 in general electricity 4,000 48,000
14 Plumber 1 10+2 in general mechanic 3,500 42,000
15 Casher 1 10+1 in bookkeeping 3,500 42,000
16 Cleaner 5 Unskilled 3,000 36,000
17 Maintenance officer 1 10+2 in General mechanic 3,500 42,000
18 Driver 1 10 completed 2,500 30,000
  Total 25   86,000 1,032,000

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 BUSINESS PLAN FORMIXED USE BUILDING

  Benefit (20%)     17,200 206,400

  Grand Total     103,2 1,238,4
00 00

ex 6. discounted cash flow

ment Year Project Life years

1 2 3 4 5 6 7 8 9

                 

20,805,76 22,642,40
0
17,158,850 18,914,335 9 9 24,906,650 27,128,986 29,841,884 32,530,910 35,784,0
20,805,76 22,642,40
17,158,850 18,914,335 9 9 24,906,650 27,128,986 29,841,884 32,530,910 35,784,0
                 

- - -
12,183 - - - - -
4,123,79 4,270,76 4,761,27 4,944,31 5,136,73 5,339,02
4,425,090 4,587,130 5,551,6
1 6 1 9 9 2
3,775,9
20
4,258,473 4,579,371 5,081,751 5,708,780 6,320,566 7,076,709 7,822,731 8,734,858

7,899,7 8,529, 9,004,46 9,668,8 10,470,05 11,264,88 12,213,4 13,161,7

12,183 14
11 239 1 81 1 5 48 53

9,259,139. 10,385,096 11,801,308.0 12,973,528. 14,436,599.0 15,864,101.0 17,628,436. 19,369,157.

695.00 21,49
00 .00 0 00 0 0 00 00

  NET PRESENT VALUE (NPV) 54,439,417.00

  INTERNAL RATE OF RETURN (IRR) 34.13%

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 BUSINESS PLAN FORMIXED USE BUILDING

  DISCOUNTED PAYBACK PERIOD (DPBP) 3.9years

Annex 7 undiscounted cash flow

Project Years
Investmen
Description Operating years
t Year
0 1 2 3 4 5 6 7 8 9 10
INFLFOWS                      
Inflow Funds                      
Own Equity 10,353,655
                 
Long-term 24,158,528
0 0                
Loan
Inflow 17,158,850 18,914,335 20,805,769 22,642,409 24,906,65 27,128,986 29,841,88 32,530,910 35,784,000 39,037,721
Operations 0 4

Sales revenue 0 17,158,850 18,914,335 20,805,769 22,642,409 24,906,65 27,128,986 29,841,88 32,530,910 35,784,000 39,037,721
0 4
TOTAL 34,512,183 17,158,850 18,914,335 20,805,769 22,642,409 24,906,65 27,128,986 29,841,88 32,530,910 35,784,000 39,037,721
INFLOWS 0 4
OUTFLOWS                    
Investment 34,512,183
0 0 0 0 0 0 0 0 0 0
cost
Operating cost 0 4,123,791 4,270,766 4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022 551,686 5,775,275
Financing
                   
Cost

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 BUSINESS PLAN FORMIXED USE BUILDING

· Principal 0 0 0 0 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218

·Interest 0 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658
Income Tax 0 3,775,920 4,258,473 4,579,371 5,081,751 5,708,780 6,320,566 7,076,709 7,822,731 8,734,858 9,643,898
TOTAL 34,512,183
8,348,369 8,977,897 9,453,119 13,568,757 14,369,927 15,164,761 16,113,324 17,061,629 13,186,420 19,319,049
OUTFLOWS
NET CASH 0
8,810,481 9,936,438 11,352,650 9,073,652 10,536,723 11,964,225 13,728,560 15,469,281 22,597,580 19,718,672
FLOW
BEGINNING
113,469,59
CASH 0 0 8,810,481 18,746,919 30,099,569 39,173,221 49,709,944 61,674,169 75,402,729 90,872,010
0
BALANCE
ENDING
113,469,59 133,188,26
CASH 0 8,810,481 18,746,919 30,099,569 39,173,221 49,709,944 61,674,169 75,402,729 90,872,010
0 2
BALANCE

Annex. 8 Civil works

N Description
o Total price
  A.    SUB-STRACTURE  
1 excavation and earth works 483,657.25
2 concrete work 3,350,225.34
  Sub total 3,833,882.42
  B.     SUPER STRACTURE  
1 Concrete work 13,413,310.11
2 Block work 954,154.51
3 Roofing 296,016.84
4 Carpentry and joinery
560,104.80
5 Metal works 1,420,087.80
6 Finishing 5,382,686.43
7 Painting 477,132.06
8 Electrical installation 12,518,850.90

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 BUSINESS PLAN FORMIXED USE BUILDING

9 Sanitary installation 1,991,268.06

  Subtotal 37,013,611.51
  A+B 40,847,493.93
  Vat (15%) 6,127,124.09
  Grand total
46,974,618.02

46