Eyana Proposal1

PROJECT TITLE: - PROPOSAL FOR MIXED USE BUILDING.
PROJECT OWNER: - Eyana Real estate Development and

Distribution Plc.
ADDRESS: - Wolkite, Sub-city: Bekur,
Kebele: Ediget Ber, House No 136/03
Phone: - +251937677498
PROJECT AREA: -Wolkite
Date:1/13/2023
Table of Contents
EYANA REALESTATE DEVELOPMENT AND DISTRIBUTION PLC. BUSINESS PLAN FOR MIXED
USE BUILDING
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......................................................................................................8
2.3 Project description...........................................................................................................8
2.4 Project Rationale..............................................................................................................9
2.5 The significance of the project.......................................................................................10
2.6 Project Location.............................................................................................................10
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..............................................15
3.5 Target customers............................................................................................................15
3.6 Marketing promotion and strategy.................................................................................16
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 Construction work 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..................................................................................................20
4.2.6 Construction Plan and process................................................................................21
4.3 Utilities..........................................................................................................................21
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5 Engineering and civil works.................................................................................................22

5.1 Land, Building and Civil Works....................................................................................22
5.2 Manpower and training requirement..............................................................................23
5.2.1 Manpower requirement...........................................................................................23
5.2.2 Labor Availability...................................................................................................24
5.3 Project implementation..................................................................................................24
5.4 Organizational Structure................................................................................................25
5.4.1 Organization and management....................................................................................25
6 Financial analyses.................................................................................................................30
6.1 Repair and Maintenance Cost........................................................................................30
6.2 Depreciation and Amortization......................................................................................31
6.3 Total Revenue................................................................................................................31
6.4 Discounted Payback Period...........................................................................................31
6.5 Cash flow.......................................................................................................................31
6.6 Benefit cost ratio............................................................................................................32
6.7 Internal Rate of Return..................................................................................................32
6.8 Net present value...........................................................................................................32
7. Environmental impact of the project................................................................................33
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List of tables
Table 1: Office Space Demand Forecast…………………………………………. 15
Table 2: The plan is that the ground will be partitioned in to different rooms…17
Table 3: land utilization Plan ………………………………………….……….…..18
Table 4: Utilities…………………………………………………………………… 22
Table 5: List of Building and Civil Works and Their Costs ……………………..22
Table 6: Manpower Requirement and Annual Labor Cost………………………23
Table 7: project Implementation schedule………………………………………. 24
Table 8: Repair and Maintenance Cost ……………………………………………31
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EYANA REALESTATE DEVELOPMENT AND DISTRIBUTION PLC. BUSINESS PLAN FORMIXED USE
BUILDING
1 Executive Summary
KEY INFORMATION HIGHLIGHTS
PROJECT OWNER Eyana Real estate Development and Distribution Plc.
PROJECT TITLE Mixed use Building
LAND REQUIREMENT 1200 M2
PROJECT AREA Wolkite, Bekur Sub-City
PROJECT COMPOSITION 1 basement and G+6
PRODUCTS TO BE MANUFACTURED
Rental Rooms
MARKET Domestic and International
COST OF THE PROJECT 40,200,828
PROJECT LIFE 10 YEARS
NUMBER OF WORKING DAYS 365 DAYS
FINANCIAL VIABILITY (AT 10% DISCOUNT RATE)
NPV (NET PRESENT VALUE) 59,678,404.80 BIRR
IRR (INTERNAL RATE OF RETURN) 48.45%
PBP (PAY BACK PERIOD) 3 years and 6 months
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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2 Introduction
2.1 General Background
The current fast and dynamic economic growth of Ethiopia especially in urban area necessitates
equivalent growth of building and construction sector. The sector should expand rapidly to
support the overall economic development sustainable.
In the building sector of the economy, the multipurpose in the one becoming rapidly expanding
in urban areas of the nation since dynamic economic development of urban economy requires the
construction of these buildings in towns to support the growing of business service sectors like
supermarkets, Beauty salon, shops, offices, cinemas, Computer Center, Cafeterias, restaurant,
assembly hall, guest house and other activities. In this regard, mixed used building expands in
the all parts of the country.
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 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,
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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, Eyana Real estate
Development and Distribution Plc. As its members has been living for long time in this town,
planned to construct in the town and undertaken this project proposal to acquire land and other
supports from the government. The promoter association is very ambitious and committed to
realize the project. Hence, we expect to get the necessary support from the government to make
the project to be operational.
Looking at the past trends and permits issues by the Government to the construction of real estate
properties including the mixed-use building in the major urban areas of the country specially in
Addis Ababa one can easily conclude that the momentum is more likely to continue.
Besides, the government polices and incentives for the private sector investment are very
promising that motivates the promoter to engaged in mixed use building business.
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2 Project Objectives
2.1 General Objective
The major goal of this project is to contribute towards the growth of the trade sector in Wolkite
town. Its specific objectives include the following.
2.1.1 Specific objective
 To construct and develop modern shops, offices, and restaurant, bedroom & 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 services of international standard in
order to attract foreign visitors and thereby contribute towards the generation of hard
currency for the country.
 To create employment opportunities for the population in the town and
 Contribute towards the beautification of the town 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 in Wolkite and its surrounding areas
by creating a differentiated experience capitalizing on personal service. The proposed project
will have a total area of 1200m2, designed to reader a multipurpose giving business, which will
in turn plays significant role towards solving shortage of business center in Wolkite town.
The historical nature of Wolkite as business unique location is in one of the most attractive parts
of the country. The occurrence of the town is along the major highway to most of south west and
western parts of the country including Jimma, Bonga, Gambelia and Tepi towns laid a fertile
ground for future promising growth of the town. The owner plans the project to render banking
and insurance, shopping facility, bank and cafeteria services to create high quality class to satisfy
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the interest of customers in the town. Based on environmental and other considerations, the
Eyana association 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 restaurant and café.
2.4 Project Rationale
Internationally the economic growth of this country is experiencing, the good governance created
and even if the town is in its nascent stage of development this project is the very few of its kind
in the town that is feasible and would be a model development in promoting and attracting
different urban investments.
In order to respond to the created environment, the town is in need of major, basic and feasible
urban projects to be developed.
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 town, the trend on such kinds of
investment found too minimal. Since there is no that much of such kind of modern tourist
facilities and business station in the town to accommodate the existing demand of these services
in the town and the surrounding areas. The mismatch between the demand and supply of such
kind of services is easily observed in the town.
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.
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2.5 The significance of the project
The envisaged project deemed to add to the economic development of the nation in general and
Guraghe zone and Wolkite town 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 and VAT are collected from undertaking business activities. Therefore,
the building will serve as sources of revenue for the town.
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
development process either through creating self-employment or employment in other
organization. Hence, this project will hire 26 individuals and more than ninety individuals during
construction.
2.6 Project Location
As aforementioned on the introductory part the envisioned project is intended to be located in

Guraghe zone Wolkite town at about 150 km from Addis Ababa to the south west. The town is
ideal for the business because of its geographical proximity for capital city of the country, Addis
Ababa and its main highway extends to most of southern and western towns the nation. The
town’s economic catchment extends beyond the woreda attracting peasants from Abeshige,
Kebena and Cheha woredas who trade cereals, vegetables, cattle and other items at the weekly
market. Therefore, the following plots of land are proposed by Eyana Association to construct
the mixed-use building at one of them.
1. A plot in Bekur sub city near “old kokeb hotel” Infront of “Wolkite merkato Yegebeya
maekel” as shown from satellite image below
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Wolkite Merkato
Yegebeya Maekel
Proposed Land
Old kokeb hotel
Soresa Hotel
2. A plot in Bekur sub city near “Soresa hotel” Infront of “Yejoka Hotel” as shown from
satellite image belo
Yejoka Hotel
Soresa Hotel
Proposed Land
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3. A plot in Bekur sub city near “Foyat Tarikua hotel” commonly known as “Abeshige
police tabiya” as shown from satellite image below
Proposed Land
Foyat Tarikua hotel
4. A plot in Bekur sub city near “Tabsiya kitfo” Infront of ‘’Sirano Hotel’’ commonly known as
‘’Tefera Hotel’’ as shown from satellite image below
Tabsiya kitfo
Proposed Land
Sirano hotel
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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 Wolkite town and from every corner of the country,
the town has been inviting skilled and unskilled labor forces; in addition, its midway location
from Jimma to Addis Ababa increases service demand to passengers and introduction of
governmental institutions like hospitals, university and colleges and private manufacturing
industries increases dwellers that need services. Above all the increase in the number of
populations 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, Wolkite is the dynamically growing
town 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 Town every day. From prior business experiences, the demand of mixed-use building is very
high and hence the demand and the supply gap are very wide.
3.2 The Demand-Supply Gap
Wolkite town is well known for its peaceful and welcoming community which made it home for
other communities from many areas around the country. Guraghe zone is a major producer of
commercial crops like ‘’Guraghe Chat’’, Eucalyptus products, ‘’Sebat bet buna’’ and bamboo.
Fikir, wow, Girar, Aden and Tsedey are among water bottling companies located in the Zone.
Zebidar brewery is also among the industries. Wolkite town is also a major business center and
commercial route that attracts thousands of business travelers. These are also the most important
groups of potential customers that include both the local and foreign tourists and the modern
business community who choose services that range from economic to high class standards.
These groups would also choose a healthy comfortable climate that combines a more traditional
type with that of modern shops, offices, bedrooms restaurants and cafeterias. Even though when
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compared with similar zonal towns in Ethiopia, Wolkite seems to be left behind to developed
mixed use buildings, the existing supply is far behind the growing demand for standard service.
Hence, the project will solve the serous demand problem in the town.
Over the last decade, 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 town.
Since Wolkite 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 town. 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 center and it would provide good service to
customers.
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 Wolkite 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 and NGOs 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.
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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;
Table 1: Office Space Demand Forecast
Office space demand under base Office space demand under high
case economic case economic
Years 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: -
1. Business Community
2. Nearby business organizations
3. The government bureau
4. Small and medium enterprises
5. Nongovernmental organizations
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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.
 Seasonal discount pricing different others customer centric marketing strategies will be
used by the company.
 Advertising through social media and developing website for 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 Cope 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 competitors all over the town now and in the future.
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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.
Table 2: The plan is that the floors will be partitioned in to different rooms:
Building Description Measur Unit price in Total

e Birr
Basement Storage Service M2 250 250*300*12= 900,000.00
Ground Supermarket, Pharmacy, M2 500 500*300*12= 1,800,000.00
Banking & Insurance
1st floor -2nd Beauty salon, shop, M2 300 300*300*12*2= 2,160,000.00
floor Computer Center,
Cafeteria and Restaurant
3rd floor Different governmental M2 250 250*300*12= 900,000.00
and other offices
4thfloor-6th floor Apartments M2 220 220*300*12*3= 2,376,000.00
Total for one block 8,136,000
Total for the twin blocks 16,272,000.00
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 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, bedrooms restaurant and café based on these
classifications. Based on the market price of similar mixed-use buildings in the area, the
envisioned building 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
14,149,565.22.
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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 six floors.
The purpose of the building explained as follows;
 The ground floor, first floor and second floor are designed for different business centers
like banks, supermarket, beauty salon (man and women), Computer center, pharmacy,
internet café, boutiques, different shops and other business activities,
 Third floor is designed for Offices.
 4-6 floors designed for Apartments.
Besides, the buildings will have enough parking facility for its customers, green area in its
compound and space for future construction.
4.1.1 Land Use Plan
The total land required for the envisioned project is estimated to be 1200m 2. The total area for the
construction of the building will be 600m2 for two twin blocks each will cover area of 300 m2,
as revealed below.
Table 3: land utilization Plan
No Description Land M2
Basement Ground First floor-Six floors
1 Building (G+6)
1.1 Basement 600
1.2 Ground 600
1.3 First floor-six floors 600
1.4 Parking & Green area 600
and space for future
construction
Total 1200
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4.2 Construction work and Technology
4.2.1 Construction schedule
The construction project is proposed to be started on June 2023, and is expected to be finished on
April 2026. As seen in the abbreviated construction schedule above, a majority of the schedule’s
time is made up of five major activities; concrete, building Enclosure, masonry, mechanical and
Electrical install. Concrete activities include processes such as placing foundations and slab on
deck. The Building Enclosure Phase includes erecting the scaffolding that will allow for exterior
sheathing installation and bricklaying.
Mechanical and Electrical install coincide with each other due to the need for coordination
between the two divisions. There are several periods of construction during the schedule in
which there are 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 construction activities before
the required Date of completion.
This date of completion is practical based on the time of year in which the building will be
completed. The team allowed a two-week contingency for any setbacks. Typically, winter
construction tends to cause unforeseen delays that negatively impact a construction project.
These conditions can and will almost undoubtedly impact the project schedule by causing
unforeseen delays and project inefficiency.
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 will
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 will be made to the bays if
specific layouts are necessary. The frame will be made up of a grid with repeating standard
structural bays. Included in the structural system are bay sizes, shape and size of structural
members, floor compositions and curtain walls. These elements were established to resist gravity
ad lateral loads as appropriate.
The gravity load design will be completed for two frames; one of structural steel and one of
reinforced concrete. The structural steel frame will 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 will 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 will be 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 will be calculated based on the
requirements of the minimum Design loads for Buildings and other Structures.
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
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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 will meet their needs in terms of time, cost and quality.
Based on a general program of the project owners the consultant who is 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 will be 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 enter the tendering stage.
At this stage contractors study the project document analyze and subsequently determine the
construction methods, built up their unit rates and submit their bids for the works. The promoter
of this project intends to compare the bids and award the contract for the lowest responsible
bidder. This, is of course, presupposes that the favorable proposal does not exceed the allocated
budget.
After the award is made and the contract signed between this project owners and the contractor,
the project constructor is expected to prepare and submits a detailed construction program which
includes material schedule, manpower requirement and cash flow forecast.
After the award is made and the contract signed between this project owner and the contractor,
the project constructor is expected to prepare and submits a detailed construction program which
includes material schedule, manpower requirement and cash flow forecast.
4.3 Utilities
A number of utilities world be put in place in order to ensure smooth functioning of the project.
These utilities include:
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Table 4: Utilities
No Description Qty. Unit cost Cost (Birr)

1 Electricity supply, kWh 50,000 1.30*50,000 65,000
2 Water Supply m3 300 300*2000 600,000
3
Telephone and Internet Broadband 20,000
4
Fuel, Oil and lubricant 2000 60*2000 120,000
Total 805,000
5 Engineering and civil works
5.1 Land, Building and Civil Works
The Mixed-use building has a total site area of 1200 m 2. The building floor area has covered 600
m2 and the remaining 600 m2 is left for construction, green area and parking. 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 work 349,463.34
2 concrete work 2,420,682.93
Sub total 2,770,146.26
B. SUPER STRACTURE
1 Concrete work 9,691,698.06
2 Block work 689,418.00
3 Roofing 213,885.00
4 Carpentry and joinery 404,700.00
5 Metal works 1,026,075.00
6 Finishing 3,889,224.30
7 Painting 344,748.60
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8 Electrical installation 9,045,412.50

9 Sanitary installation 1,438,777.50
Subtotal 26,743,938.9
6
A+B 29,514,085.2
3
Vat (15%) 4,427,112.79
Grand total 33,941,198.0
0
As shown on Table 5, the total cost of building and civil work is estimated at Birr 33,941,198.00.
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 in salary in
Birr Birr
1 General manager 1 BA in management 10,0 120,000
00
2 Building admin 1 BA in Acct/Mgt 8,0 96,000
00
3 Secretary 1 10+2 in secretariat science 3,0 36,000
00
4 HRM Officer 1 10+2 in HRM/Management 4,0 48,000
00
5 Technical and 1 Diploma in building maintenance 8,0 96,000
maintenance manager 00
6 Finance head 1 BA in Accounting 6,0 72,000
00
7 IT Technician 1 Diploma in computer science/IT 6,0 72,000
00
8 Marketer 1 Diploma in marketing 5,0 60,000
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00
9 Accountant 1 Diploma in accounting 4,0 48,000
00
10 Guards/Security 4 Basic 2,5 30,000
00
11 General Service head 1 Diploma in Management 6,0 72,000
00
12 Purchaser 1 Diploma in purchasing &Sup Mgt 3,5 42,000
00
13 Electrician 1 10+2 in general electricity 4,0 48,000
00
14 Plumber 1 10+2 in general mechanic 3,5 42,000
00
15 Casher 1 10+1 in bookkeeping 3,5 42,000
00
16 Cleaner 5 Unskilled 3,0 36,000
00
17 Maintenance officer 1 10+2 in General mechanic 3,5 42,000
00
18 Driver 1 10 completed 2,50 30,000
0
Total 26 86,0 1,032,000
00
Benefit (20%) 17,2 206,400
00
Grand Total 103,2 1,238,400
00
5.2.2 Labor Availability
Workers for this type of project are available throughout the year. No foreseeable problems are
expected as most of the work requires no previous skills.
5.3 Project implementation
The project’s implementation is expected to take 36 months. The major activities include Bank
loan processing construction of the building, cleaning the area around the building, Procurement
of equipment and start rendering services. The time schedule for the above matured major
activities is presented below:
Table 7: project Implementation schedule
24
BUILDING
SN Activities Date
1 Land request processing January – February, 2023
2 Land approval March, 2023
3 Bank loan processing April-May 2023
4 Site Development May 2023
5 Building and construction work June, 2023-April 2026
6 Preparation for service May, 2026
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
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.
25
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.
 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
26
BUILDING
 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
Eyana General Assembly
General Manager
Building Maintenance Marketing

administration Department Department
Personnel Promotion
Finance
&Property Officers
IT Supervisors
Figure 1. organizational structure
27
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 40,200,827.60 ETB is required. From this 30%
(12,060,248.28) birr will be covered by the promoter of the project while the rest 70%
(28,140,579.32) 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.N Description of works Total Cost in birr
1 Building construction 33,941,198.00
2 Site Development 150,000
3 Design and supervision 220,000.00
4 1st Year land lease 40,000
Total 34,351,198.00
B. Building Machineries and Equipments

SN Description Measure Qty Unit cost in Total cost in
ment Birr Birr.
1 Generator Unit 1 300,000.00 300,000.00
2 Carpentry tool box Set 1 27,000.00 27,000.00
3 Electrician tools box Set 1 18,500.00 18,500.00
4 Plumber tools kit Set 1 12,300.00 12,300.00
5 Fire extinguisher Unit 6 26,000.00 156,000.00
(Security Equipment)
6 Elevator Unit 1 750,000 750,000
Total 1,123,800 1,263,800
C. Vehicle
SN Description UOM Qty Unit Cost in Total cost in Birr Remark
Fr.
1 Mini-Bus Unit 1 600,000.00 600,000.00 Duty Free
Total 600,000.00
D. Office Equipments
SN Description Measurement Qty Unit cost in Total cost in
birr Birr
1 Managerial tables Unit 1 12,600.00 12,600.00
28
BUILDING
2 Managerial chairs Unit 1 19,500.00 19,500.00

3 Office table with chair Unit 7 12,000.00 12,000.00
4 Secretarial table with chairs Unit 1 8,500.00 8,500.00
5 Computer with chairs Unit 1 15,000.00 15,000.00
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 4900
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 343,511.98 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 2 br
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 687,023.96 2% of building cost
13 Miscellaneous costs 40,000.00 6000 per month
Total 1,387,535.94
Pre-service Expenses
SN Description Cost in birr
1 Project proposal 100,000.00
2 Licensing fee and others
Total 100,000.00
Summary of Total initial investment cost
SN Description Cost in Birr Percentage Share
29
BUILDING
1 Land, building & construction 34,351,198.00 85.45%

2 Building machines & Equipment 1,263,800 3.14%
3 Vehicle 600,000.00 1.49%
4 Office Equipment 101,800.00 0.25%
5 Total fixed investment cost 36,316,798.00 90.34%
6 Salary expense 1,238,400 3.08%
7 Operation Expense 1,387,535.94 3.45%
8 Pre service Expense 100,000.00 0.25%
9 Total Working capital 805,000 2.00%
10 Sub total 3,530,936 8.78%
11 Contingency (10%) 353,093.6
Total initial investment capital 40,200,827.60
(5+10+11)
6 Financial analyses
The financial analysis of this mixed-use project is based on the data presented in the previous
chapters and the following assumptions: -
Finishing period 3 years

Source of finance 30 % equity
Debt finance 70 % 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.
30
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 6,392,952.08 at the beginning
of the project to Birr 16,030,493.30 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 years and 6 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 12,060,248.28. At the
end of the project life, this amount will rise to Birr 23,700,268.42. The detail is presented in
Annex.
31
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
n
Bt
 (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 48.45% 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
32
BUILDING
the NPV is non-negative. Accordingly, the net present value of the project at 10% discount rate
is found to be Birr 59,678,404.80 which is acceptable.
7. Environmental impact of the project
The EIA of the project activities was determined by identifying the environmental aspects and
then undertaking an environmental risk assessment to determine the significant environmental
aspects. The environmental impact assessment has included all phases of the project namely
construction phase and operational phase.
The building has both positive and negative impact
Positive impact of the project
The positive impacts of the project are: -
 Generation of employment opportunity

 Source income for the government through business income tax
 Income generation for the promoter
 Being exemplary for other investors who want to engage in the same business line.
Negative impact of the project
The project has the following negative impacts:
1. noise and Dust emission during Construction

There are some noises during the construction due to the construction operation and the
company will use construct the construction during the day time. Again, there is the
emission of dust which will be mitigated by sprinkling water on the service.
2. problem on workers on construction

During construction there are some problems that will materialize on workers. These are:
damage on operation by using machines, construction materials and others. To mitigate such
impact the company will provide safety insurance and safety equipment.
3. swages during operation
33
BUILDING
During operation there are some wastes emitting from the mixed-use building. These are wastes
from the latrine and will be mitigated by using modern waste treatment technology.
34
EYANA REALESTATE DEVELOPMENT AND DISTRIBUTION PLC. BUSINESS PLAN FORMIXED USE BUILDING
Annex 1. Sales Revenue

Description Project year
1 2 3 4 5 6 7 8 9 10
Ground floor Rent 3,600,000 3,960,000 4,356,000 4,791,600 5,270,760 5,797,836 6,377,620 7,015,382 7,716,920 8,488,612
Size 600 600 600 600 600 600 600 600 600 600
unit price 500 550 605 665.5 732.05 805.255 885.7805 974.35855 1071.7944 1178.9738
Rent for shop 1-2floor 4,320,000 4,752,000 5,227,200 5,749,920 6,324,912 6,957,403 7,653,144 8,418,458 9,260,304 10,186,334
Size 600 600 600 600 600 600 600 600 600 600
unit price 300 330 363 399.3 439.23 483.153 531.4683 584.61513 643.07664 707.38431
Rent for office 3rd floor 1,800,000 1,980,000 2,178,000 2,395,800 2,635,380 2,898,918 3,188,810 3,507,691 3,858,460 4,244,306
Size 600 600 600 600 600 600 600 600 600 600
unit price 250 275 302.5 332.75 366.025 402.6275 442.89025 487.17928 535.8972 589.48692
Rent for Apartments 4-6 floor 4,752,000 5,227,200 5,749,920 6,324,912 6,957,403 7,653,144 8,418,458 9,260,304 10,186,334 11,204,967
Size 600 600 600 600 600 600 600 600 600 600
unit price 220 242 266.2 292.82 322.102 354.3122 389.74342 428.71776 471.58954 518.74849
Basement 1,800,000 1,980,000 2,178,000 2,395,800 2,635,380 2,898,918 3,188,810 3,507,691 3,858,460 4,244,306
Size 600 600 600 600 600 600 600 600 600 600
unit price 250 275 302.5 332.75 366.025 402.6275 442.89025 487.17928 535.8972 589.48692
19,689,12 28,826,84
Total Sale 16,272,000 17,899,200 21,658,032 23,823,835 26,206,219 31,709,525 34,880,477 38,368,525
0 1
35
Annex 2. operating cost

Operating years of the project
Description 1 2 3 4 5 6 7 8 9 10
A. Direct cost
Raw Material
Cost 276,999 276,998 276,997 276,996 276,995 276,993 276,992 276,991 276,990
277,000
Sub-total
Total Direct
cost
B. Indirect cost
 Wages and
Salary 1,238,400 1,362,240 1,498,464 1,648,310 1,813,141 1,994,456 2,193,901 2,413,291 2,654,620 2,920,082
 Repair and
Maintenance 687,023.96 755,726 831,299 914,429 1,005,872 1,106,459 1,217,105 1,338,815 1,472,697 1,619,967
 Property
Insurance 343,511.98 377,863 415,649 457,214 502,936 553,229 608,552 669,408 736,348 809,983
 Utility 805,000 885,500 974,050 1,071,455 1,178,601 1,296,461 1,426,107 1,568,717 1,725,589 1,898,148
 Land lease 40,000 44,000 48,400 53,240 58,564 64,420 70,862 77,949 85,744 94,318
 Advertising
and Promotion 50,000.00 55,000 60,500 66,550 73,205 80,526 88,578 97,436 107,179 117,897
 Miscellaneous
Expense 40,000.00 44,000 48,400 53,240 58,564 64,420 70,862 77,949 85,744 94,318
Total operating
cost 3,480,936 3,829,030 4,211,932 4,633,126 5,096,438 5,606,082 6,166,690 6,783,359 7,461,695 8,207,865
36
Annex.3 income statement
Operating years of the project

Description 1 2 3 4 5 6 7 8 9 10
Sales
Revenue 16,272,000 17,899,200 19,689,120 21,658,032 23,823,835 26,206,219 28,826,841 31,709,525 34,880,477 38,368,525
Less:
Operating 3,480,936 3,829,030 4,211,933 4,633,126 5,096,438 5,606,082 6,166,690 6,783,360 7,461,695 8,207,865
cost
Income
before
Depreciation
12,791,064 14,070,170 15,477,187 17,024,906 18,727,397 20,600,136 22,660,150 24,926,165 27,418,782 30,160,660
and interest
Less: interest
3,658,275.31 3,658,275.31 3,658,275.31 3,658,275.31 3,658,275.31 3,658,275.31 3,658,275.31 3,658,275.31 3,658,275.31 3,658,275.31
Income
before
Depreciation 9,132,789 10,411,895 11,818,912 13,366,631 15,069,121 16,941,861 19,001,875 21,267,890 23,760,506 26,502,385
Less:
Depreciation 0 0 3,601,680 3,601,680 3,601,680 3,601,680 3,601,680 3,601,680 3,601,680 3,601,680
Profit /Loss
Before Tax 9,132,789 10,411,895 8,217,232 9,764,951 11,467,442 13,340,181 15,400,195 17,666,210 20,158,827 22,900,705
Less: Tax
(30%) 2,739,836.61 3,123,568.53 2,465,169.70 2,929,485.32 3,440,232.51 4,002,054.41 4,620,058.51 5,299,863.01 6,047,647.96 6,870,211.41
Net Profit
or Loss 6,392,952.08 7,288,326.56 5,752,062.63 6,835,465.75 8,027,209.18 9,338,126.96 10,780,136.51 12,366,347.02 14,111,178.58 16,030,493.30
After Tax
37
Annex. 4 loan disturbance
Installment Periods (in years)

Item 0 1 2 3 4 5 6 7 8 9 10
Loan disbursed 28,140,579
Principal 28,140,579 3,517,572 3,517,572 3,517,572 3,517,572 3,517,572 3,517,572 3,517,572
Interest (13%) 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275
Total 31,798,855 3,658,275 3,658,275 3,658,275 7,175,848 7,175,848 7,175,848 7,175,848 7,175,848 7,175,848 7,175,848
Outstanding
Balance
38
Annex. 5 Man power
SN Position No Qualification Monthly salary Annual 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 maintenance manager 1 Diploma in building maintenance 8,000 96,000
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
Benefit (20%) 17,200 206,400
Grand Total 103,200 1,238,400
39
Annex 6. discounted cash flow

Investment
Project Life years
Year
Description
0 1 2 3 4 5 6 7 8 9 10
INFLOW
Net sales
revenue 0 16,272,000 17,899,200 19,689,120 21,658,032 23,823,835 26,206,219 28,826,841 31,709,525 34,880,477 38,368,525
TOTAL
INFLOWS 0 16,272,000 17,899,200 19,689,120 21,658,032 23,823,835 26,206,219 28,826,841 31,709,525 34,880,477 38,368,525
OUTFLOWS
Investment
cost 40,200,828 - - - - - - - - - -
Operating cost
0 3,480,936 3,829,030 4,211,933 4,633,126 5,096,438 5,606,082 6,166,690 6,783,360 7,461,695 8,207,865
Income tax
0 2,739,837 3,013,820 3,315,202 3,646,723 4,011,395 4,412,534 4,853,788 5,339,166 5,873,083 6,460,391
TOTAL
OUTFLOWS 40,200,828 6,220,773 6,842,850 7,527,135 8,279,848 9,107,833 10,018,616 11,020,478 12,122,526 13,334,779 14,668,256
NET CASH
FLOW 12,060,248.28 10,051,227.39 11,056,350.13 12,161,985.15 13,378,183.66 14,716,002.03 16,187,602.23 17,806,362.45 19,586,998.70 21,545,698.57 23,700,268.42
59,678,404.80
NET PRESENT VALUE (NPV)
48.45%
INTERNAL RATE OF RETURN (IRR)
3.52years
DISCOUNTED PAYBACK PERIOD (DPBP)
40
Annex 7 undiscounted cash flow

Project Years
Investment
Description Operating years
Year
0 1 2 3 4 5 6 7 8 9 10
INFLFOWS
Inflow Funds
Own Equity
12,060,248
Long-term Loan 28,140,579 0 0
Inflow Operations
16,272,000 17,899,200 19,689,120 21,658,032 23,823,835 26,206,219 28,826,841 31,709,525 34,880,477 38,368,525
Sales revenue
0 16,272,000 17,899,200 19,689,120 21,658,032 23,823,835 26,206,219 28,826,841 31,709,525 34,880,477 38,368,525
TOTAL INFLOWS
40,200,828 16,272,000 17,899,200 19,689,120 21,658,032 23,823,835 26,206,219 28,826,841 31,709,525 34,880,477 38,368,525
OUTFLOWS
Investment cost 40,200,828 0 0 0 0 0 0 0 0 0 0
Operating cost 0 3,480,936 3,829,030 4,211,933 4,633,126 5,096,438 5,606,082 6,166,690 6,783,360 7,461,695 8,207,865
Financing Cost
·
0 0 0 0 3,517,572 3,517,572 3,517,572 3,517,572 3,517,572 3,517,572 3,517,572
Principal
·Interest 0 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275 3,658,275
Income Tax 0 2,739,837 3,013,820 3,315,202 3,646,723 4,011,395 4,412,534 4,853,788 5,339,166 5,873,083 6,460,391
TOTAL
OUTFLOWS 34,512,183 9,879,048 10,501,125 11,185,410 15,455,696 16,283,681 17,194,464 18,196,326 19,298,374 20,510,626 21,844,104
NET CASH FLOW 0 6,392,952 7,398,075 8,503,710 6,202,336 7,540,154 9,011,755 10,630,515 12,411,151 14,369,851 16,524,421
41
BEGINNING
CASH BALANCE 0 0 6,392,952 13,791,027 22,294,737 28,497,073 36,037,227 45,048,981 55,679,496 68,090,647 82,460,498
ENDING CASH
BALANCE 0 6,392,952 13,791,027 22,294,737 28,497,073 36,037,227 45,048,981 55,679,496 68,090,647 82,460,498 98,984,919
Annex. 8 Civil works
No Description
Total price
A. SUB-STRACTURE
1 excavation and earth works 349,463.34
2 concrete work 2,420,682.93
Sub total 2,770,146.26
B. SUPER STRACTURE
1 Concrete work 9,691,698.06
2 Block work 689,418.00
3 Roofing 213,885.00
4 Carpentry and joinery 404,700.00
5 Metal works 1,026,075.00
6 Finishing 3,889,224.30
7 Painting 344,748.60
8 Electrical installation 9,045,412.50
9 Sanitary installation 1,438,777.50
Subtotal 26,743,938.96
A+B 29,514,085.23
Vat (15%) 4,427,112.79
Grand total 33,941,198.00
42

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PROJECT TITLE: - PROPOSAL FOR MIXED USE BUILDING.

PROJECT OWNER: - Eyana Real estate Development and

ADDRESS: - Wolkite, Sub-city: Bekur,

Kebele: Ediget Ber, House No 136/03

PROJECT AREA: -Wolkite

5 Engineering and civil works.................................................................................................22

Table 3: land utilization Plan ………………………………………….……….…..18

Table 6: Manpower Requirement and Annual Labor Cost………………………23

Table 7: project Implementation schedule………………………………………. 24

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

PROJECT OWNER Eyana Real estate Development and Distribution Plc.

PROJECT TITLE Mixed use Building

LAND REQUIREMENT 1200 M2

PROJECT AREA Wolkite, Bekur Sub-City

PROJECT COMPOSITION 1 basement and G+6

MARKET Domestic and International

COST OF THE PROJECT 40,200,828

PROJECT LIFE 10 YEARS

NUMBER OF WORKING DAYS 365 DAYS

FINANCIAL VIABILITY (AT 10% DISCOUNT RATE)

NPV (NET PRESENT VALUE) 59,678,404.80 BIRR

IRR (INTERNAL RATE OF RETURN) 48.45%

PBP (PAY BACK PERIOD) 3 years and 6 months

THE PROJECT IS TECHNICALLY FEASIBLE, FINANCIALLY AND COMMERCIALLY VIABLE

2.1 General Background

2.1 General Objective

2.1.1 Specific objective

2.3 Project description

2.4 Project Rationale

2.5 The significance of the project

2.6 Project Location

As aforementioned on the introductory part the envisioned project is intended to be located in

Old kokeb hotel

Foyat Tarikua hotel

3 The market Study

3.1 Market Analysis

3.2 The Demand-Supply Gap

3.3 Current supply of Mixed-use building

3.4 Future market or Demand of commercial Building rental

Table 1: Office Space Demand Forecast

3.5 Target customers

The target customers of this envisaged project include: -

3.6 Marketing promotion and strategy

3.8 The project facilities and Services plan

Building Description Measur Unit price in Total

4.1 Description of the project Service

 Third floor is designed for Offices.

 4-6 floors designed for Apartments.

4.1.1 Land Use Plan

Table 3: land utilization Plan

4.2 Construction work and Technology

4.2.1 Construction schedule

4.2.2 Architectural Design & Layout

4.2.3 Structural design

4.2.4 Reinforced concrete

4.2.5 Foundation Design

4.2.6 Construction Plan and process

No Description Qty. Unit cost Cost (Birr)

5 Engineering and civil works

5.1 Land, Building and Civil Works

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

8 Electrical installation 9,045,412.50

5.2 Manpower and training requirement