DebreBirhan University

College of Business and Economics

Department of Management
Master of
Business Administration /MBA/Summer
Program
Course Title: Project Management (MBA731)
Project title:Construction of Public Toilets and Showers in
DeberBirhan Town
Submitted to: Haile Yeshanew/PhD /

Prepared by: 1. GoshmieMinda ID NO PGKP/426/07

2. MekonenMekete ID NO PGKP/360/07
3. TekleErgete ID NO PGKP/370/07

August 2017
DebreBirhan
Acknowledgment
We would like thanksto HaileYeshanew (Dr.) our instructor who provides this
assignment to contextualize how project management concepts and skills work and to
scale up our understanding about project proposal preparation. Secondly, our great
thanks go to AtoAsfachewDestawho is DebreBirhan town ad who gave us the
necessary information and on the actual practice about public toilet and shower in
DebreBirhantown.In addition to this, we would like to thanks to Mr. MhretuBrhani and
Mr. TAlegitaTeketel who helps as to select project sites, develop project plan and
estimate bill of quantities.

i
Abstract
Public toilets and showers are placed in areas accessed by many people, especially at
railway stations, bus stops, marketplaces, shopping areas, parking lots, and
entertainment events, etc. A larger number of visitors, not necessarily living in the
vicinity of the toilets and showers, but rather people who are passing by, normally uses
these. Thus, provision of public toilets and showers are needed due to protection of
human and environmental health. The project will undertake on public toilets and
showers in North Shoa Zone, DebreBirhan town, which is 130km far apart from Addis
Ababa. Five site public toilets and showers locations has been identified and proposed
in DebreBirhan town kebele 03, 06,07,08,09 which are more populous and marketable
area.
The total cost of building and civil works at area of 240 per m2, will be Birr 923521.55.
Cost for holding of land at lease rate of Birr 9.78 per m2 or 80 years is estimated at Birr
2347.2. Therefore, the total cost for land holding building and civil works is estimated at
Birr 925,868.75. Manpower requirements of the project are 25 persons, of which 22 are
direct operation workers and 3 are administrative and supervisory staff. Details of
manpower requirement and estimate of annual expenses for salaries is presented in
Table-7. The total manpower cost including pension benefit is estimated at Birr 567180.
The total investment cost of the project is estimated at 1135868.75 million, of which 50
% will be required from Bank. The project feasibility, from all points of view (Marketing
Technical, financial and Economic) is profitable. Therefore it is very a viable and
sustainable project for the owners and useful to the society.

ii
Table of Contents
Acknowledgment ........................................................................................................................................... i
Abstract ..................................................................................................................................................... ii
Chapter one .............................................................................................................................................. v
Project: Construction of public Toilets and showers in Deber Birhan Town ............................................ 1
Introduction .............................................................................................................................................. 1
1.2 Rational of the project .................................................................................................................. 2
1.3 Objective of the project ................................................................................................................ 3
1.4 Definition of the project ............................................................................................................... 3
1.5 Scope of the project ...................................................................................................................... 3
1.6 Promoters ..................................................................................................................................... 3
Chapter-2 .................................................................................................................................................. 4
Market and demand analysis .................................................................................................................... 4
Introduction .............................................................................................................................................. 4
2.2 Demand analysis ................................................................................................................................. 4
2.3 Market analysis ................................................................................................................................... 5
Chapter -3 ................................................................................................................................................. 8
Technical Analysis ..................................................................................................................................... 8
3.2 Location of project .............................................................................................................................. 8
3.3 Project Site ........................................................................................................................................ 10
3.4 Raw material and bill of quantity ...................................................................................................... 14
3.5 Service and Capacity ......................................................................................................................... 17
3.6 Human resource and organization.................................................................................................... 18
Chapter -4 ............................................................................................................................................... 20
Financial Analysis .................................................................................................................................... 20
4.2 Underlying Assumption..................................................................................................................... 20
4.3 Total initial investment cost.............................................................................................................. 21
4.4 Operation cost estimates .................................................................................................................. 21
4.5 Financial Evaluation .......................................................................................................................... 24
Chapter-5 ................................................................................................................................................ 25
Social, Economic and Environmental Analysis ........................................................................................ 25

iii
5.1 Social ................................................................................................................................................. 25
5.2 Economic ........................................................................................................................................... 25
5.3 Environmental Analysis ..................................................................................................................... 25
Conclusion ............................................................................................................................................... 26
Reference .................................................................................................................................................. V
Appendix------------------------------------------------------------------------------------------------------------------------vi

iv
List of Tables
Table 1: shareholders respective contribution to the project-------------------------3
Table-2 forecast the current demand-------------------------------------------------------5
Teble-3 customers of public toilets and showers----------------------------------------6
Table-4: project site----------------------------------------------------------------------------10
Table-5: bill of quantity-------------------------------------------------------------------------16
Table-6 project construction schedule-----------------------------------------------------17
Table-7 manpower requirements------------------------------------------------------------19
Table -8 assumption----------------------------------------------------------------------------21
Table-9 initial investment-------------------------------------------------------------------21
Table -10: Estimated operating cost of the project-------------------------------------21
Table- 11: repayment schedule-------------------------------------------------------------22
Table-12 depreciation cost-------------------------------------------------------------------22
Table13: project revenue --------------------------------------------------------------------22
Table14: Project income statement -------------------------------------------------------23
Table 15: project cash flow-------------------------------------------------------------------23
Table 16: Project Pay Back-------------------------------------------------------------------24
Table 17: Net present Value------------------------------------------------------------------24

List of Picture
Picture -1: public toilet quality and sanitation in Debre Brihan town---------------2
Figure -2 map of Debre Birhan town--------------------------------------------------------9
Figure- 3 Map of public toilet and showers locations in Debre Birhan town-----11
Picture -4: site plan view of the toilet and shower--------------------------------------12
Picture -5: site plan view of the toilet and shower--------------------------------------13
Picture-6: organizational structure chart--------------------------------------------------18

v
Chapter one

Project: Construction of public Toilets and showersin DeberBirhan

Town

Introduction
Project investment is a series of processes aimed at foregoing short-term economic
benefits from financial resources by investing them in land, buildings, equipment, and
other capital assets to produce products, goods, and services directly or through
investments in securities or direct loans to financial intermediaries with the objective of
maximizing economic benefits over the life of the investment.

In Ethiopia the sanitation and hygiene program is getting priority in the health extension
program. Many people living in urban areas still lock for access to safe and reliable
sanitation facilities. In spite of the fact that the majority of households lack sufficient
understanding of hygienic practices regarding food, water and personal hygiene
exemplary results are being observed in some urban kebeles that have declared open
defecation free status. It is now expected that the recently launched urban health
extension program will also enable to change situations in urban areas and enable the
town to cope up with the health problems related to unsafe unhygienic waste
management, including that of human excreta.

Toilet is a sanitation fixture used for the storing or disposal of human urine and feces. A
public toilets and showers are come in place in overcrowded settlements, where
residents do not own a private sanitation facility. In such a case, public toilets and
showers serve a role of facilities shared among residents of a local area and other
travelers. The number of users might vary depending on the settlement. Sometimes,
commuters and other floating population will use these toilets as well.
Shower is a place in which a person bathes under a spray of typically worm or hot
water. Indoors, there is a drain in the floor. Showers have temperature, spray pressure
and adjustable shower head nozzle.Popular outdoor destinations attract higher numbers
of visitors, and receive more impact to the surrounding natural resources. This can lead
to concentrations of human waste and other refuse, which pollutes the environment and
presents a serious human health hazard. Left unchecked, these conditions may force
land managers to restrict access, or implement user regulations designed to protect the
natural resources and enhance public health and safety. Portable toilet systems are
now available in a variety of designs, to accommodate a wide range of outdoor
activities. With a little research and preparation, we will be able to select a toilet system
that is right for our activity and group size.

1
Public toilets and showersare placed in areas accessed by many people, especially at
railway stations, bus stops, marketplaces, shopping areas, parking lots, and
entertainment events, etc. A larger number of visitors, not necessarily living in the
vicinity of the toilets and showers, but rather people who are passing by, normally use
these. Thus, provision of public toilets and showers are needed due to protection of
human and environmental health.

1.2 Rational of the project

DebreBirhan is a religious and historical place with very heavy floating population from
other places. The current state of DebreBirhan town has there is no public showers and
has two toilets but, the toilets block are dilapidated and need urgent attention in order to
save them from total collapse. The structures are old and not of standard, the roofs are
seriously leaking, the ceiling boards are completely destroyed, the walls are blighted
and toilets holes for the ones that are pit toilets are very worn out and weak that it could
collapse with a little pressure.

The need for a conduciveliving environment at the DebreBirhan town cannot be over
emphasized. There is a psychological correlation between a clean and decent living
environment and assimilation levels.

Our project has proposed to adopt new Universal Design Toilets and shower in the
place where toilets and showers are required to ensure hygienic, Environment and user-
friendly toilets and showers.

Picture -1: public toilet quality and sanitation in DebreBrihan town

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1.3 Objective of the project
 Generally the concept aims at creating a convenient, functional and attractive
toilets and showers block of international standard that will enhance clean
environment, healthy living and proper development of the community.
 To establish better urban toilets and showers standards and culture in
DebreBirahn town.
 To solvesanitation and hygieneproblem at all public places, markets, bus
stations, place of entertainments and along religious and historical places in
DebreBirhan town.
 To prevent pollution and to maintain hygienic environment in the town.
 To create employment opportunity to the community.
 To provide quality service of public toilets and showers and make profit.

1.4 Definition of the project

Project is an interrelated set of activities that has a definite starting and ending point
and results the accomplishment of unique and major outcome. Our project is interesting
ideas providepublic toilets and showers to DebreBrihan communitywitha life span of five
years from 01/01/2011 -30/12/2015E.C.

1.5 Scope of the project

The project will undertake on public toilets and showers in North Shoa Zone,
DebreBirhantown, which is 130km far apart from Addis Ababa. Five sitepublic toilets
and showerslocationshas been identified and proposed in DebreBirhan town kebele 03,
06,07,08,09 whichare more populous and marketable area.

1.6 Promoters
The owners of this proposed project, named GoshmieMinda (BSC), TeklieErgetie(LLB)
and MekonnenMekete (BA) who lives in DeberBirhan. The promoters have no business
experience.

The owner’s respective shareholding is shown as follows.

Name Share Registered Total paid

GoshmieMinda 208 1,000 208,000

TeklieErgetie 180 1,000 180,000

MekonnenMekete 180 1000 180,000

Total 568 3,000 568,000

Table 1: shareholders respective contribution to the project
3
Chapter-two

Market and demand analysis

Introduction
We use market and demand analysis to understand how much consumer demand
exists for public toilets and Showers service. This analysis helps project management
determine if the project can successfully enter a market and generate enough profits to
advance its business operations. While several methods of demand analysis may be
used, they usually contain a review of the basic components of an economic market.

There is no a well-established quantitative data to clearly see the future streams of

demand and supply. The data is completely qualitative. In most cases the first step in
project analysis is to estimate the potential size the market for proposed product or
service to be offered. Consequently it is possible to get an idea about the market that is
likely to be captured.

2.2 Demand analysis

The demand for public toilets and showers grows with the growth in population and high
level of urbanization changes through the years, the demand of increases due to
changes in life styles and improved standard of living will contribute to increasing the
demand of the projects.
The town promotes healthy lifestyles such as walking, cycling and active sports.
Outdoor activity and the continued development of recreation facilities and activities
require travel away from home. The provision of public toilet and showers facilities at
the market optimizes the benefits of the community. Public toilets and showers attract
more families to use and encourage longer visits of monarchs. Public toilets and
showers are a key requirement that will assist to connect people to places by providing
amenity to marketers, sport families and public transport users.
People usually need a public toilets and showers when they are away from their home.
A lack of public toilets and showers can greatly impact people with high needs. Some
may avoid or be reluctant to travel or partake of social activities where public facilities
are lacking.
In DebreBrihan town there is no standardized and quality public toilets and showers.
There are two public toilets in the bus station and market place but their services are not
addressee in terms of quantity and quality. And also there are no public showers or
beauty rooms in the town. Because of these reason and anther the community needs
public toilets and showers.
The potential customer of the public toilet and showers are the following

4
  Habitats of the town
 Visitors and Travelers
 Market place customers
 College and university community
 Sport family
Forecast current demand of the service
s.no Customer Total Percentage of Percentage of
population population used population used
public toilets public showers
(62%) 14%)
1 Habitats of the town 103450 64139 14483
2 Visitors and 360000 223200 50400
travelers
3 Market place 120000 74400 16800
customers
4 College and 15000 9300 2100
university
5 Sport family 600 372 84
Total 466050 371411 83867
Table-2 forecast the current demand

From the above table total demand the public toilets users are estimated 46605 and
public showers estimate 29953. Totally they have 76558customers of public toilets and
showers.

2.3 Market analysis

Market analysis is a quantitative and qualitative assessment of a market. It looks in to
the size of the market both in volume and in value, the various customer segments and
bayingpatterns, thecompetition and the economic environment in terms of barriers to
entry and regulations.

Market share

Market share might be that share of the market commanded by a firm’s product or
service. Its basic difficulty lies in the ambiguity of the term market. One normally thinks
of a market being a collection of persons (or institutions) that are likely to purchase a
certain class of product or service. For consumer products and services, the market is a
group of consumers who are potential buyers of a product or service. Those consumers
who never buy a product are outof the market. Market shares should mean shares of
potential consumers.

5
Our project covers 70 and 50 percent public toilets and showers market share
respectivelyfrom the total user of public toilet s and showers. The customers of our
project are shows in teble-3.

Marketing plan

Marketing plan is part of a business plan and is the foundation for identifying our
market, attracting prospects, converting them into customers, and retaining them as
customers. If it is carefully researched, thoughtfully considered, and evaluated, it will
help us firm set goals, implement strategies, and measure results. A good marketing
plan details what wewant to accomplish and helps us meet our objectives. It should:
Explain (from an internal perspective) the impact and results of past marketing
decisions. Explain the target market in which our business is competing. Set goals and
provide direction for future marketing efforts that are attainable. Set clear, realistic, and
measurable targets. Include deadlines for meeting those targets. Provide a budget for
all marketing activities. Specify accountability and measures for all activities. Be a fluid
document that is used, maintained, and updated as our business grows and succeeds.

From the total demand of Toilet and showercustomers the project addresses 70 percent
of toilet and 50 percent of shower customers.

s.no Customer Total public Total public Our public Our public Total
toilets user showers toilet showers customer
user customers customers of yearly
(70%) (50%)
1 Habitats of the 64139 14483 44897 7242 5561472
town
2 Visitors and 223200 50400 156240 25200 19353600
travelers
3 Market place 74400 16800 52080 8400 6451200
customers
4 College and 9300 2100 6510 1050 806400
university
5 Sport family 372 84 260 42 32256
Total 371411 83867 259988 41933.5 32204928
Teble-3 customers of public toilets and showers

Price
Determining the price to product or service can be challenging if don’t have some
historical price and demand data. Ways to determine price include cost of doing

6
business, cost to manufacture, amount do we need to charge to be profitable,
customers willing to pay and competitors charging.
The current price of government owned two public toilets are 1birr per customer. As per
the agreement between the public and the operating body, the toilets price should be 2
birr to 4birr and the Shower price is ranging from 10 birr up to 20 birr depending on the
current value of money and the capacity of the users to pay, It is very likely that the
provision of “cost for use” prevents a large number of people from using the available
public toilets and showers in the town.
Promotion
Public consultation was extended beyond the affected community in the project area, to
understand and the views of any member of the public that is knowledgeable on the
impacts of the project or is better informed on environmental trends of the project area.
During the consultation process stakeholders were identified and consulted to assess
their interests, concerns and their opinions in relation to the proposed project and
support that can be offered to the project. The stakeholders provide valuable inputs for
identification of impacts, formulating mitigation measures and preparation of
Environmental management and control plans.
Places
The place that public toilets and showers are operated are those sites which are
identified by the municipality an places where there are densely populated, market
places, stadium, schools and bus station. The project areas are will place in kebele 03,
06,07,08,09 which are more populous and marketable area.

7
Chapter –three

Technical Analysis
Introduction
The principles of technical analysis derive from the observation of financial markets. In
finance, technical analysis is a security analysis discipline for forecasting the direction of
raw material prices through the study of past market data, primarily price and
volume.Behaviorals economics and quantitative analysis incorporate substantial
aspects of technical analysis, which being an aspect of active management stands in
contradiction to much of modern portfolio theory. According to the weak-form efficient-
market hypothesis, such forecasting methods are valueless, since prices follow a
random walk or are otherwise essentially unpredictable.
Technical analysts also widely use market indicators of many sorts, some of which are
mathematical transformations of price, often including up and down volume, advance
and decline data and other inputs. These indicators are used to help assess whether an
asset is trending, and if it is its probability of its direction and of continuation.
Technicians also look for relationships between price and volume indices and market
indicators.

3.2Location of project
DebreBirhan is the capital of North Shoa Zone of ANRS and Basonna-WorenaWereda
of North Shoa Zone. It is specifically found with a relative location of at about 130km
north east of Addis Ababa, along the Addis Ababa to Dessie road and at a distance of
some about 695km southeast from Bahir Dar (the capital of ANRS). Its approximate
geographic coordinates (or its absolute locations) are between 09038'00''- 09041'00''
North Latitudes and 390 30'00''- 39032'00" East Longitudes.

8
Figure -2 map of DebreBirhan town

Its topography, generally, characterized with up and downs in almost all parts though
the elevation difference is not that much significant for most parts. While the total area it
owns (including its surrounding rural kebeles) is estimated to be around 18,000
hectares with its wereda status, the total urban area, it has 9 urban kebeles within its
municipal authority is demarcated as 5711 hectares.
The population is growing rapidly from time to time especially in the past two decades
and currently it supports an approximate population of nearly 103450.
Implementation of public toilets and showers will take place at public places under the
urbanprogramintervention areas and master plan ofDebreBirhan town. The type of
public toilets and showerswill be selected on the basis of land availability as well as
willingness and ability of the recipient body to provide matching fund as contribution
money.
The baseline study for the town of DebreBirhan mentioned the need of building public
toilets and showers in the town. The most problematic zones, where public toilets and
showers should be located, include the market places in kebele08, bus station in
kebele06,Stadum in kebele 03, Tebasie around university kebele 09, and Tebasie
around TVTE kebele 07. In thesekebele, there are no public toilets and showers the
vicinity of the bus station and market is actually the only place where open defecation
and urination is practiced. The bus station and market places has been chosen as the
first location for the public toilet and shower. Also, the market places, especially the

9
main market in kebele eight should be provided with public toilets due to health hazards
related to open defecation being practiced and the slum settlements located around the
market area. However, the bus station has been chosen as the first location. Normally
passengers practice open urination next to the bus stop or use nearby hotels. Provision
of public toilet and showerat the bus stop will surely allow for comfort and protect the
health of passenger leaving and arriving DebreBirhan.
The project sites are located in DebreBirhan town. The project locations are generally
undulating but are not located in areas prone to water-logging and flash flood. There are
no protected areas, wetlands, estuaries in or near the project location. The project sites
are not located in or near any historically, culturally, archaeologically or architecturally
significant or tourists area.

3.3Project Site
A few areas were identified in consultation with DebreBirhan town Municipal
Corporation to provide public toilets and showers. The identified areas are 1) Near the
Bus station/stop, 2) Near Public Market, 3) Near Tebasie TVTE 4) near the stadium
and 5) Tebasie near University.

N Kebel Location Status in hole Total

o e Toilet Showers Safety room Total area in
Male Femal Femal for women m2
e e
1 08 Main market 3 2 2 2 1 10 48
3 06 Bus station 3 2 2 2 1 10 48
5 03 Stadium 3 2 2 2 1 10 48
6 07 Around TVTE 3 2 2 2 1 10 48
8 09 Around university 3 2 2 2 1 10 48
Total 15 10 10 10 5 50 240
Table-4: project site

10
Figure- 4 Map of public toiletand showers locations in DebreBirhan town

Land acquisition

Total requirement of land for the project is 240sq.m. Details of land requirement for the
project of each toilets and showers are presented inTable-4 above,
Utilities
Telephone lines, electric poles and wires, water lines within the proposedproject
locations must require to construct the project as well as to operate the service. To
develop such types of service with the support of town administration can take an
agreement. Identify and include locations and operators of these utilities in the detailed
design documents to prevent unnecessary disruption of services during construction
phase.
Project disposal areas
Improper disposal of toilet contents only makes the problem worse. Portable toilet
systems must be disposed of properly, at designated locations or fixtures provided for
that purpose, such as dump stations and authorized vault toilets. For waste disposal
and cleaning of the container, consider assembling a box of supplies that we might want
to have on hand, such as gloves, bleach, disinfectant, brushes, bags, etc. Planning
ahead will make the job much easier and minimize inconvenience. The use of portable
toilets greatly reduces user impacts to campsites and natural resources.

11
DebreBirhantown has adisposal area in specific place of “Gara Dinku’’.by using truck
with rents and the waste disposed of our toilets is the same place that the town used.

Picture -4: site plan view of the toilet and shower

12
Picture -5: site plan view of the toilet and shower

13
3.4Raw material and bill of quantity
The amount of required raw material, bill of quantity and estimated its cost to build the
public toilets and Showers in DebreBirhan as follow: The total cost of building and civil
works at area of 240 per m2, will be Birr 923521.55. Cost for holding of land at lazes
rate of Birr 9.78 per m2 or 80 years is estimated at Birr 2347.2. Therefore, the total cost
for land holding building and civil works is estimated at Birr 925,868.75.

WoredaDebireBirhan
Construction Type Public toilet and Shower
Bill of Quantity and Specification

5 toilets and
Uni Unit Total showers
S.no Description t Quantity Price Price cost
1. Earth Work and Excavation
Excavate for the foundation for
1.1 the construction m3 13.8975 50 694.88 3474.4
Ditto but for the pipe trench
1.2 excavation m3 80 50 4,000.00 20000
Ditto but for the toilet pond for
1.3 loose soil m3 36 50 1,800.00 9000
Ditto but for the soft rock
1.4 excavation m3 36 100 3,600.00 18000
Ditto but for the hard rock
1.5 excavation m3 24 150 3,600.00 18000
3
1.6 pit excavation for the fencing m 2.2 50 110 550
2. Masonry Work 0
Foundation work for the all side
of the construction with 1:3
2.1 cement sand mortar mix ratio m3 5.8975 710 4,187.23 20936.15
3
2.2 Ditto but for the toilet pond m 32 500 16,000. 80000
Hard core filling for the floor
2.3 work m3 6.4 45 288 1440
masonry work for the purpose
2.4 of hand washing m3 6 710 4,260.00 21300
3
Ditto but for the pond cover m 2.4 950 2,280.00 11400
3. Concrete Work 0

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 5 toilets and
Unit Total showers
S.no Description Unit Quantity Price Price cost
C-20 Mass concrete for the
foundation of the all side wall
and pad with 1:2:3 cement
3.1 sand gravel mix ratio m3 5.559 1,235.0 6,865.37 34326.85
Ditto but for the free colleen
3.2 with 1:2:3 mix ratio m3 6.4 1,100.0 7,040.00 35200
Ditto but for the grade beam
3.3 with 1:2:3 mix ratio m3 2.624 1,235.0 3,240.64 16203.2
4. Metal Work 0
For the Grade beam and
4.1 colleen 0
ø12 mm bar Kg 21.312 118 2,514.82 12574.1
4.2 for the pad 0
ø12 mm bar Kg 31.968 118 3,772.22 18861.1

4.3 for the cover of the toilet -

ø14 mm bar Kg 15 128 1,920.00 9600

5. Pipe work -
2 inch pipe for the inlet to
5.1 reservoir M 80 120 9,600.00 48000
For all shower 1.5 inch Class B
5.2 pipe with Capping M 24 121 2,904.00 14520
5.3 Ditto but for and washing M 11 100 1,100.00 5500
1.5 inch nipples No 13 20 260 1300
1.5 inch get valve No 10 30 300 1500
1.5 inch foset No 13 20 260 1300
1.5 inch elbow No 12 20 240 1200
5.4 2 inch PVC for all toilet M 33 110 3,630.00 18150
5.5 1000 litt PVC roto No 1 8,000.00 8,000.00 40000
6. Break Work 0
Break work for all outside and
6.1 inside wall by 20 cm break m2 85.6 85 7,276.00 36380
7. Finishing Work 0

15
 5 toilets and
Unit Total showers
S.no Description Unit Quantity Price Price cost
Apply three coat of plastering
work all exposed surface with
7.1 1:2 cement sand mix ratio m2 171.2 84 14,380.8 71904
7.2 Ditto but for the floor m2 24 84 2,016.00 10080

8. Ceramic Work -
Apply Class A ceramic for all
8.1 shower and safety room m2 63.875 300 19,162.5 95812.5
8.2 toilet pad for safety room No 1 250 250 1250
8.3 toilet pad for safety room No 5 250 1,250.00 6250
8.4 Shower pad No 4 250 1,000.00 5000
9. Roof Work 0
Roof work by GC-28 with full
need of timber and eucalyptus
9.1 tree m2 24 280 6,720.00 33600

10. Door an Window Work -

10.1 LTZ with 1mm sheet metal door No 12 600 7,200.00 36000

11. Electric work -

11.1 2" waire for the boiler M 50 6 300 1500
Boiler installation No 4 500 2,000.00 10000
Socket No 4 10 40 200
1" for the bubble and Switch M 50 7 350 1750
Bubble No 10 10 100 500
Switch No 10 10 100 500
12. Corns Work 0
Apply 0.8mm thickness
Chipped for all work with full of
12.1 timber m2 24 250 6,000.00 30000

Sub Total 160,612.45 803062.25

Vat 15% 24,091.87 120459.35

Grand Total 184,704.31 923521.55
Table-5:bill of quantity

16
3.5Service and Capacity
Capacity planning doesn’t always mean planning for periods of peak demand. Capacity
requirements can vary greatly from times of peak demand to times of limited demand.
As a result there may be drastic differences in the resources required to maintain
normal operations during periods of peak demand. When planning for what levels of
capacity will be supported it’s important to understand and weigh the costs, benefits,
and risks of delivering, or not delivering, certain level of capacity. Because of this,
capacity planning is more of an art than a science
The services that will be provided by this public toilets and showers, when it operates in
full capacity are:-

 Public toilet service in five kebeles (03,06,07,08,09)

 Public shower services in five kebeles (03,06,07,08,09)
Service program
 Public toilets (open access): These toilets remain open almost 18hours
(from11:00 AMto 4:00 PM of local time) and are meant to be used exclusively by
the general public.
 Public toilets in markets: These are the toilet facilities only remain open during
the shopping hours and provide services for the people who use the markets.
Service capacity

The maximum capacities of the project one cite public toilet per customers is720
customers served per day. Thecapacities of one cite shower per customer are 144
customer served per day. The five maximum capacities of public toilets and showers
are 3600 and 720 customer served per day respectively

Implementation Schedule of the project

Gantt Chart (from sep, 2011 –august. 2015 E.C)

Activities Sep Oct Nov Dec Jan Feb Mar Apr May Gun Jul Aug

Cleaning
Building
Requirements of
labor
Purchase of
material
Start up
Table-6 project construction schedule

17
3.6Human resource and organization
The man power structure of the project will be organized in the one main departments
and supporting offices starting from the first year of operation on words. In general the
staff is divided into two groups the technical staff and administrative staff. The general
manager will have the necessary qualification and experience which enables him to
manage the whole work of the public toilets and showers project. Qualified and
experienced staff members who are responsible for the smooth operation and running
of the business will assist him.

The Administrative staff on the other hand will undertake the day to administration and
finance related activities, security, supply of raw materials, handling legal matters and
others. The organizational chart of the firm is proposed as follow:

Structure of organization

Manager

Finance and service

logistic officer supervisor

property
Casher cleaner guared
officer

Picture-6:organizational structure chart

Manpower requirement

Manpower requirements of the project are 25 persons, of which 22 are direct operation
workers and 3 are administrative and supervisory staff. Details of manpower
requirement and estimate of annual expenses for salaries is presented in Table-7. The
total manpower cost including pension benefit is estimated at Birr 567180.
Training requirement

18
Workers directly related to operation; supervisors, foreman and customer centered
services need to be given on-the-job training for one day by qualified personnel from the
project management team. The training cost is estimated to be Birr 50,000.

Requirement manpower plan

Monthly toltal total

Req Salary of monthly Annual
S.no Description .no qualification indivedual salary Salary
General
1 manager 1 BA 3500 3500 42000
Finance and
2 logistic officer 1 BA 3000 3000 36000
3 property officer 1 BA 2700 2700 32400
Service
4 supervisor 1 BA 2800 2800 33600
5 Cashier 1 BA 2500 2500 30000
6 Guard 10 10+ 1000 10000 120000
7 Cleaner 10 10+ 1500 15000 180000
17000 39500 474000
Sub-Total 25
1190 2765 33180
pension 7%
18190 42265 507180
Grand Total
Table-7 manpower requirements

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Chapter -four

Financial Analysis
Introduction
The primary objective of financial analysis is to forecast and/or determine the actual
financial impact, status and performance of a project. This enables the Bank to combine
that information with all other pertinent data (technical, economic, social, etc.) in order to
assess the feasibility, viability, and potential economic benefits, of a proposed or
continuing lending operation. A secondary objective is the provision of technical
assistance to a borrower enables them to make similar assessments and to apply the
techniques to other non-Bank investments. A tertiary objective is to encourage
borrowers and to make any necessary changes to their institutional and financial
management systems to facilitate the generation of appropriate data to support good
financial analysis. These objectives are intended to measure the achievement of
financial objectives of the borrower and the project and vary by the nature of the project
in terms of revenue-earning and non-revenue-earning categorization.
Financial statement analysis that distinguishes leverage in operations from leverage in
financing also distinguishes differences in contemporaneous and future profitability the
project. Leverage from operating liabilities typically levers profitability more than
financing leverage and has a higher frequency of favorable effects. Accordingly, for a
given total leverage from both sources, the project with higher leverage from operations
has higher price-tobookratios, on average. Additionally, distinction between contractual
and estimated operating liabilities explains further differences in our projectprofitability.

The financial analysis of the public toilets and showers project is based on the data
presented in the previous chapters and the following assumptions:

4.2Underlying Assumption
A. Construction and Finance
Construction period 1Year
Sources of finance 50% Equity
50 % Loan
Bank interest 9%
Discount cash flow 9%
Accounts receivables 30 days
Raw material local 30 days
Raw material import 90 days
Cash in hand 5 days

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 B. Depreciation

Building 5%
Equipment 10%
Office furniture 10%
Vehicles 15%
Table -8 assumption

4.3Total initial investment cost

The total investment cost of the project is estimated at 1135868.75 million, of which
50% will be required fromBank.

The major breakdown of the total initial investment cost is shown

S No. Cost Items Total Cost in Birr

1 Land lease value 2347.2
2 Building and Civil work 923521.55
3 Utility 10000
4 Administrative cost 200000
Total Investment cost 1135868.75

Tabl%e-9 initial investment

4.4Operation cost estimates

No. Item Y1 Y2 Y3 Y4 Y5
1 Salary 567180 567180 567180 567180 567180
2 Uniform 4000 4000 4000 4000 4000
3 Training 50000 50000 50000 50000 50000
4 Maintenance 6000 6000 6000 6000 6000
5 Administrative cost 30000 30000 30000 30000 30000
6 Utility 5000 5000 5000 5000 5000
7 Equipment and office furnit. 100000
8 Miscellaneous 4000 4000 4000 4000 4000
Sub total 771180 1091180 741180 751180 761180
5% contingency 38559 54559 37059 37559 38059
Total operation costs 766180 666180 666180 666180 666180
Table -10: Estimated operating cost of the project
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 Loan repayment schedule

Year Principal repayment Interest repayment Outstanding

birr birr balance (birr)
0 567934.5
1 113,587 51,114 454,348
2 113,587 40,891 340,761
3 113,587 30,668 227,174
4 113,587 20,446 113,587
5 113,587 10,223 -
Table-11: repayment schedule

Depreciation cost

No. Description Estimated value Depreciation Annual Dep.

(birr) rate % Value (birr)
1 Building and construction 923521.55 5% 46,176
3 Office furniture’s 100000 10% 5000

Total 1,023,522 0 51,176

Table-12 depreciation cost

Public toilet and Shower project revenue

Item service Y1 Y2 Y3 Y4 Y5
Toilet customers 259200 259200 259200 259200 259200
Price (Birr) 3 3 3 3 3
Revenue 777,600 777,600 777,600 777,600 777,600
Shower 41040 41040 41040 41040 41040
customers
Price (Birr) 20 20 20 20 20
Revenue 820,800 820,800 820,800 820,800 820,800
Grand total 1,598,400 1,598,400 1,598,400 1,598,400 1,598,400
sales
Table13: project revenue

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Project income statement

Project years
Description 1 2 3 4 5 Total
Gross revenue (grand 1,598,400 1,598,400 1,598,400 1,598,400 1,598,400 7,992,000
sale)
Less 15% VAT 239,760 239,760 239,760 239,760 239,760 1,198,800
Revenue after VAT 1,358,640 1,358,640 1,358,640 1,358,640 1,358,640 6,793,200
Less operating costs 766180 666180 666180 666180 666180 3,430,900
Income before interest 592,460 692,460 692,460 692,460 692,460 3,362,300
tax and Depression
Less Depression 51,176 51,176 51,176 51,176 51,176 255,880
Profit before tax and 541,284 641,284 641,284 641,284 641,284 3,106,420
interest
Less interest 51,114 40,891 30,668 20,446 10,223 153,342
Profit before tax(Gross) 490,170 600,393 610,616 620,838 631,061 2,953,078
Less tax ( 35%-7950) 163609.5 202,188 205,766 209,343 212,921 993,827
Net profit 326,561 398,205 404,850 411,495 418,140 1,959,251
Table14: Project income statement

Project cash flow statement

Description Projected years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash flow
Sales revenue 1,358,640 1,358,640 1,358,640 1,358,640 1,358,640
net vat
Total cash 1,358,640 1,358,640 1,358,640 1,358,640 1,358,640
inflow
Cash outflow
Operating cost 766180 666180 666180 666180 666180
Loan
repayment 164,701 154,478 144,255 257,842 227,174
Total cash 1135868.75 930,881 820,658 810,435 924,022 893,354
outflow
Net cash flow 427,759 537,982 548,205 434,618 465,286
Table 15: project cash flow

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4.5Financial Evaluation

Pay Back period

The investment cost and income statement projection are used to project the payback
period the project’s initial investment will be fully recovered within 2.68 years.

Year Cash flow Depreci Net cash PV of PV of Cumulativ Investment

ation flow after 9% cash e cash to recover
tax before flow flow
depreciation
0 1135868.8 1135868.8
1 326,561 51176 377,737 0.909 377,738 377,738 758131
2 398,205 51176 449,381 0.826 449,382 827,120 308,749
3 404,850 51176 456,026 0.751 456,027 1,283,146
4 411,495 51176 462,671 0.683 462,672 1,745,818
5 418,140 51176 469,316 0.621 469,317
Table 16: Project Pay Back

Payback period = year before full recovery+

Payback period = 2+ = 0.68

PBP = 2 year + 0.68 year = 2.68 years

Net present value

Year Cash flow Depreciation Net cash flow PV of Total PV
after tax before 10%
deprecation
0 1135868.75
1 326,561 51176 377,737 0.909 377,738
2 398,205 51176 449,381 0.826 449,382
3 404,850 51176 456,026 0.751 456,027
4 411,495 51176 462,671 0.683 462,672
5 418,140 51176 469,316 0.621 469,317
Total PV cash inflow 2,215,135
Total PV cash outflow 1135869
NPV 1,079,266
Table 17: Net present Value

24
Chapter-five

Social, Economic and Environmental Analysis

5.1 Social
 Useful to the slum dwellers, floating population and street vendors.
 Improve sanitation and health of the community
 Improve quality of life and provide basic dignity for the society.
 Provide High quality facility to customers.

5.2 Economic
 The project can create employment for 25unemployed persons.
 Improve tourism by improving the sanitation quality of the municipality.
 Minimizehealth cost of the society whichis spent towards the
health care related to transmission disease.
 The project will generate Birr 2.19 tax revenue to the country million

5.3 Environmental Analysis

The project is expected not to cause major negative impacts. Because, public toilets
and showers will be constructed in urban areas of DebreBirhan town thus, could be
constructed without causing impacts to biodiversity.
The project reviews possible project related impacts, in order to identify issues requiring
further attention and screen out issues of no relevance. The impacts and risks will be
analyzed during pre-construction, construction, and operational stages in the context of
the project’s area of influence. The primary impact areas are the locations where toilets
and showers blocks will be constructed, main routes/intersections which will be
traversed by construction vehicles; and borrow pits as sources of construction materials.
The secondary impact is the area outside of the delineated primary impact area in terms
of over-all environmental improvement.
In the case of this project
 Most of the individual elements are relatively small and involve straightforward
construction and operation, so impacts will be mainly localized and not greatly
significant.
 The predicted impacts are associated with the construction process, and are
produced because that process is invasive, involving excavation and earth
movementsand
 Being located in the built-up area of DebreBirhan town, will not cause direct
impact on biodiversity values. The project will be in properties held by the local
government and land donated by individuals and access to the subproject

25
 locations is through public rights-of-way and existing roads hence, land
acquisition and encroachment on private property will not occur.
To summarize the assessment of the present situation of public toiletsand showers
service in the town and the expectation of the public establishment facilities is critically
important. Positive impacts of the project are not related only to economic welfares of
residents, but it highly improves the worst environmental condition of the town.
Furthermore, it will solve the challenges of neat and quality of living local consumers. To
the contrary, considerable negative impacts will be induced during the construction and
operation of the project. Majority of those impacts can be minimized to an acceptable
level, when the project is designed, constructed and operated in accordance best
practices. Public and stockholder consultations revealed that the proposed public toilet
project is one of the upmost public demands which the municipality was not able to
provide to present. Lack of appropriate public toilets and showers facilities is leading the
town to worst environmental conditions. In conclusion there will be no severe or
immitigable impacts that can prevent the implementation of the proposed public toilets
and showers project provided that the recommended mitigation measures are properly
and timely implemented. However, for better environmental performance of the plant,
sludge management, and other alternative are components of the project that need to
be reconsidered.

Conclusion
Toilet is a sanitation fixture used for the storing or disposal of human urine and feces. A
public toilets and showers are come in place in overcrowded settlements, where
residents do not own a private sanitation facility. In such a case, public toilets and
showers serve a role of facilities shared among residents of a local area and other
travelers. The number of users might vary depending on the settlement.
Shower is a place in which a person bathes under a spray of typically worm or hot
water. Indoors, there is a drain in the floor. Showers have temperature, spray pressure
and adjustable shower head nozzle.

The Generalobjective of our project is creating a convenient, functional and attractive

toilets and showers block of international standard that will enhance clean environment,
healthy living and proper development of the community.

This project feasibility explained above, from all points of view (Marketing Technical,
financial and Economic) is profitable. Therefore it is very a viable and sustainable
project for the owners and useful to the society. Thepromoters should continue to
seriously consider realizing it in such a way as to get in to the actual and quick
implementation of this project. The project will pay the loan within five years, after
paying the loan the public toilets and showers complex may generate more profit that
canexpand on another project.
26
Reference
 Behrens.W, Hawranek. P.M.(1991),Manual for The Preparation of Industrial
Feasibility Studies,2nd ed,UNIDO, Vienna
 Lee G. Cooper and Masao Nakanish(2010),market share analysis, evaluating
competitive marketing effectives, 2nded, kluwer academic publisher, London
 Water Aid (2006),Implementation guidelines for public toilet,Bangladish

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Appendix

General question for Situation Analysis Public toilet & shower in DebreBirhan
town
Organization: ___________________

1. No of kebele in the town

2. Population No with male and female separately
3. Estimated No of traveler in a day on average
4. Estimated No of population in a market day
5. The existing condition of the town regarding to sanitation and hygiene
6. No’s and Functionality of existing public toilet and shower
7. No of average daily users of each public toiletand shower
8. Availability of water near sanitation facility
9. Using system of the toilet and shower by users in existing facility.
10.Need for rehabilitation in existing public toilets and shower
11.If needed, specificareas to be build.
12.Willingness to provide support related to provide land, different material and
facilitating to other organization.
13.Any other information which may be useful
14.Comments:

vii