PROJECT PROMOTER: - QZD GENERAL AGRICULTURAL WORK PLC.

PROJECT AREA: - OROMIA REGION, JIMMA ZONE, NEDIGIBE DISTRICT,

DACHA NEDI KEBELE.

MAY, 2023
Table of Contents
LIST OF TABLE.......................................................................................................................4
1. EXECUTIVE SUMMARY..................................................................................................5
2 .INTRODUCTION.................................................................................................................5
2.1 General Background........................................................................................................5
2.2 Project Objectives................................................................................................................8
2.2.1 General Objective.........................................................................................................8
2.2.2 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.....................................................................................................11
3.1 Market Analysis.............................................................................................................11
3.5 Target customers............................................................................................................12
3.7 Marketing promotion and strategy.................................................................................13
3.8. Competition..................................................................................................................13
3.9. The project facilities and Services plan.........................................................................14
4. TECHNICAL AND PRODUCTION ASPECT...................................................................17
4.2. Fruit farming process....................................................................................................19
4.3. Niger seed Farming Process..........................................................................................19
a) Land Development...................................................................................................19
b) Land Preparation, Sowing and Fertilization.............................................................19
c) Pre-harvest Management..........................................................................................20
d) Post-harvest Management........................................................................................20
4.5. Intended Irrigated System.............................................................................................20
4.5. Machineries and Equipment..........................................................................................21
4.6. Project Design and Engineering....................................................................................21
4.7. Utilities.........................................................................................................................21
4.8. Project implementation Plan.........................................................................................22
4.9. Organization and management......................................................................................22
5. FINANCIAL REQUIREMENT AND ANALYSIS..........................................................................22
5.1. Fixed Capital.................................................................................................................23
 5.2. Working Capital............................................................................................................25
5.2.1. Operating Expense at full Capacity........................................................................25
5.2.1 Operating Expense..................................................................................................25
5.2.3. Summary of investment cost..................................................................................26
5. 3. Financial Analysis...........................................................................................................27
5.4. Financial analysis and Statements.................................................................................28
5.4.2. Sources of Fund.....................................................................................................28
5.4.3. Depreciation Schedule...........................................................................................29
5.5. Financial Statement.......................................................................................................30
5.5.1. Income loss/statement............................................................................................30
5.4.2. Cash flow Statement..............................................................................................31

LIST OF TABLE
Table 1: Future Demand................................................Error! Bookmark not defined.
Table 4: Project-Implementation-Schedule..................................................................22

Table 7. Land development, buildings and Construction.............................................23

Table 8. Machinery and Equipment..............................................................................23

Table 9.man power........................................................................................................25

Table 10. Operating Expense........................................................................................25

Table 11.pre service expenses.......................................................................................26

Table 12. Summary of Total initial investment cost.....................................................26

Table 13. Source of fund...............................................................................................28

Table 14. Depreciation Schedule..................................................................................29

Table 15. : Bank Repayment schedule.........................................................................29

Table 16. Income/loss statement...................................................................................30

Table 17. Cash flow Statement.....................................................................................31

Table 18. Sales forecast................................................................................................32

1. EXECUTIVE SUMMARY
Ethiopia is one of the developing countries and around 85% of the total population depends on
agriculture most of the agricultural practice is rain fed crop production. However, due to the
backward method of farming, unreliable rainfall, including population and drought, the nation
faced a series of food shortage. These food shortages were followed by severing famines that
resulted in the loss of the lives of millions of citizens.

Mixed farming covers a wide range of products which can be grouped into vegetables, Fruit
farming, Dairy farming and oil seeds crop production. Jimma Zone has large areas and water
resources suitable for the production of mixed farming including fruits, vegetables, and dairy
farming. Compared to cereals, pulses and oil crops, fruits and vegetables are very high in
productivity per unit of land which can play a substantial role to increase the food supply area.
With a growing urban population, which is totally market dependent, and the current food supply
shortage, expansion in fruit and vegetable production will play a significant role in increasing the
food supply of the zone and region.

In order to provide mixed farm 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 farm. Accordingly, various facilities will be constructed phase by phase starting with
the most needed ones that are essential to commence the operation of its farm activities.

Since the project will be engaged in mixed farming the main sources of its annual revenue would
be from the domestic and international product sell. Based on the market price of Fruit and
vegetable, Niger seed and milk product in the area, the envisioned project set the fair price
(Before VAT) for its product.

2 .INTRODUCTION

2.1 General Background

Although horticultural crops are important for health and economy the amount and mode of
production are still weak in Ethiopia. Horticultural crops can be differentiated as fruit (permanent
crops) and vegetables (short season crops). Accordingly, permanent crops are long term crops
that occupy the field planted for a long period of time and largely harvested every year and do
not have to be replanted for several years after each harvest. These include tree crops such as
coffee, Enset, Chat, oranges, Mangoes, Bananas, papaya, Avocados…etc. The trees that yield
fruits like orange, Mangoes, Papayas, and others are known as fruit trees (CSA, 2001/02).

More than 47 thousand hectares of land is under fruit crops in Ethiopia. Bananas contributed
about 60.56% of the fruit crop area followed by Mangoes that contributed 12.61% of the area.
Nearly 3.5 million quintals of fruits were produced in the country. Bananas, papaya, mangoes,
and orange took up 55.32%, 12.53%, 12.78% and 8.35% of the fruit production, respectively
(CSA, 2008).

Ethiopia has a comparative advantage in a number of horticultural commodities due to its

favorable climate, proximity to European and Middle Eastern markets and cheap labor.
However, the production of horticultural crops is much less developed than the production of
food grains in the country. On average more than 2,399,566 tons of vegetables and fruits are
produced by public and private commercial farms, this is estimated to be less than 2 percent of
the total crop production. According to recent information obtained from the Central Statistics
Authority, the total area under fruits & vegetables is about 12,576 hectares in 2011. Of the total
land area under cultivation in the country during the same year, the area under fruits and
vegetables is less than one percent (i.e. 0.11%), which is insignificant as compared to food crops.

At present, many private commercial farms & private farmers are producing fruits and
vegetables both for domestic and export markets in the country. Processing plays an important
role in the conservation and effective utilization of fruits and vegetables. It converts perishable
fresh products to more durable processed products in cases of sluggish markets or when there is a
profit- generating demand for processed products. It also helps in generating rural employment.
Besides, processed fruits and vegetables are sources of foreign exchange earnings. In Ethiopia,
the number of fruits and vegetables processing industries is limited. Currently, there are only 5
fruits and vegetable processing plants in the country. These plants presently process limited
products: tomato paste, orange marmalade, vegetable soup, frozen vegetables, and wine. Most of
the processing plants fall in the small-scale processing unit’s category. In general, processed
products are mainly geared to domestic markets.

Ethiopia is one of the developing countries and around 85% of the total population depends on
agriculture most of the agricultural practice is rain fed crop production. However, due to the
backward method of farming, unreliable rainfall, including population and drought, the nation
faced a series of food shortage. These food shortages were followed by severing famines that
resulted in the loss of the lives of millions of citizens.

Most of Ethiopia’s cultivated land is under rain-fed agriculture. Due to lack of water storage and
large spatial and temporal variations in rainfall, there is not enough water for most farmers to
produce more than one crop per year and hence there are frequent crop failures due to dry spells
and droughts which have resulted in food shortage currently facing the country.
The major source of growth for Ethiopia is still conceived to be the agriculture sector. Hence,
this sector has to be insulated from drought shocks through enhanced utilization of the water
resource potential of the country, (through the development of small-scale irrigation, water
harvesting, and on-farm diversification) coupled with strengthened linkages between agriculture
and industry (agro-industry), thereby creating a demand for agricultural output.

In line with the above, different regions of the country are working hard so as to promote
irrigated agriculture and boost agricultural production both in quantity and quality.

Ministry of Water, Irrigation and Energy have been widely engaged in promoting irrigation to
make true the country dream. The ministry is working on the development and application of
water resources for sustainable development. Identifying irrigation projects, undertaking
feasibility studies and going to implementation are among the duties considered helpful in using
the water resources.

In parallel, the Ministry of Water, Irrigation and Energy and Ministry of Agriculture have been
widely allowing investors to participate in farming investment whereby the investors together
with the existing farmers feed the fast-growing and hungry industrialization of the country. The
investors play a wide role in transforming the agriculture-based economy of our country to
industry based economy.

It is not only about transforming the economy but also the government is working very hard on
quality production to make our country competing in international markets. In this point of view,
the investors also play a very great role.

Hence, it is obvious that the agricultural system has to be improved and irrigation practice should
be spread extensively to bring about sustainable food self-sufficiency and to earn foreign
exchange. Ethiopia has ample source of surface and subsurface water, resulting from this it is
named as” The water tower of East Africa.” Moreover, the irrigation potential is estimated to be
about 4025 million hectares of which only 5.8% is irrigated. (Source; a study carried out by
international water management institute-IWMI)

Nowadays, the implementation of small and medium scale irrigation scheme is being given
priority in the water sector development strategy of Ethiopia. These are the reasons where the
government provided farmland in a different part of the country including proposed area exists in
Oromia National Regional State, Jimma Zone, Nadi gibe district, decha Nedi Keble.
2.2 Project Objectives

2.2.1 General Objective

The major goal of this project is to contribute towards the growth of the Agricultural sector. Its
specific objectives include the following.

2.2.2 Specific objective

 To build and develop quality and quantity product that enable to provide standard goods to
consumer.
 To carry out trading and other refuted business activities that enable to generate a reasonable
to the invested capital.
 To develop modern business centre that would provide quality product on standard.
 To create employment opportunities.
 Contribute towards the eradication of poverty.
 To establish economically viable, socially acceptable and environmentally friend farm.

2.3 Project description

Mixed farming covers a wide range of products which can be grouped into vegetables, Fruit
farming, Dairy farming and oil seeds crop production. Jimma Zone has great potential and
suitable natural resources for the production of these groups of mixed crops. In fact, this project
refers to only essential mixed farming a production which includes. Vegetables (Tomato, Onion
and garlic), fruit (mango, Avocado and Banana), Oil seeds farming (Niger seed) and dairy
farming. These products can be supplied as green and fresh, chilled or frozen and packed
depending on the market location and requirement. Combining different kinds of mixed farming
production create a better opportunity for crop rotational practices and give the advantage of
utilizing common faculties such as washing, cleaning cooling and storage facilities. Plus
marketing fruits & vegetables facilitate an increase in marketable volume by attracting more
customers.

Jimma Zone has large areas and water resources suitable for the production of mixed farming
including fruits, vegetables, and dairy farming. Compared to cereals, pulses and oil crops, fruits
and vegetables are very high in productivity per unit of land which can play a substantial role to
increase the food supply area. With a growing urban population, which is totally market
dependent, and the current food supply shortage, expansion in fruit and vegetable production will
play a significant role in increasing the food supply of the zone and region.
Planned land use on farm site includes the construction of the house for residence and store,
planting of different verities of permanent and annual tree and crop species. Specifically: the
total land acquired for the project will be 100 ha. The land use of the proposed project will be:
Vegetable 30 ha (tomato 10 ha, Onion 10ha and garlic 10 ha), Fruit 30 (avocado 10 ha, Mango
10 ha and banana 10 ha) Niger seed 36 ha and 3 ha of land for dairy farming. 1 ha for
construction and environmental protection/conservation. Besides production, the organization
also plant tree species within farm like following irrigation and drainage channel.

On the other hand, unbalanced and inadequate nutritional status of the people is still a central
problem in the zone. Deficiency of essential food elements, such as protein, vitamins, and
minerals are widely observed as basic food intake is below the minimum requirement in the area.
Increase in blindness due to ΄Vitamin A΄ deficiency is an alarming circumstance in the country.
Therefore, fruits and vegetables are important sources of vitamins and minerals.

2.4 Project Rationale

Agriculture is the cornerstone of the development policy of the Government of Ethiopia.

According to the Rural Development Policy and Strategy document, the basic ingredient and
resource the country has for agricultural development is the abundant land and labor. Most of the
western lowlands are endowed with water resources are virgin and fertile. Up to recently, the
areas were not developed due to lack of capital and technology. Therefore, there is a strong
commitment from the government to make these fertile lands available for investors that have the
capital and technology to develop.

The existing promising investment opportunities, the demands of goods needs 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, the trend on such kinds of investment
found to not enough.

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

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

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

A. Source of Revenue

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

B. Employment opportunity

One of the problems that our country faced is unemployment. Therefore, the current objective of
the government is working on tackling the problem of unemployment and fostering the
development process either through creating self employment or employment in other
organization. Hence, this project will hire 6 individuals and more than 50 individual during every
season.

2.6 Project Location

The license area is located in Oromia National Regional State, jimma Zone, Nedi Gibe district,
decha Nedi kebele. The total area of land for the project is 100ha.
3. THE MARKET STUDY

3.1 Market Analysis

Fresh and Processed Fruits and vegetables, Niger seed and milk have a large domestic market in
Ethiopia, significantly higher than the exported volumes. The size of the Ethiopian population is
currently estimated at about above 100 million. This is a strong indication of the existence of
large potential demand for fresh fruit and vegetable crops in the country. The other customer of
Ethiopian fresh fruits and vegetables is processing plants, i.e., tomato processing plants and
vegetable canning factories which require tomato and various types of vegetables for processing.
The demand for fruit on the local market is high. This is a strong indication of the existence of
investment opportunities in fruit supply for the local market

Ethiopia exports fresh fruits and vegetables to the international markets. The major markets for
Ethiopian fresh fruits and vegetables are the European Union, the Arab countries and the
regional markets. Thus, there is a reliable demand for these Ethiopian products during a
particular period and a great volume. Therefore there is a strong business image for vegetables
and fruit markets.

3.2 The Demand-Supply Gap

There has been a significant growth in the number of local and international trades across the
country. This increase is mainly associated with the stimulation of economic activist and partly
due to an increase in the demand of fruit and vegetable production. 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 region. As a result there is a large gap between the developed and that
of the supply for fruit and vegetable production hence this project would not face any problem of
demand scarcity for it market and it would provide good goods to customers.

The price of fruits and vegetables is volatile and seasonal. Generally, fruits and vegetables are
much cheaper in rainy seasons. However, even in the rainy seasons the average price of fruits
and vegetables at major towns is estimated on average at birr 25 and 15 per kg respectively. It is
based on cost and competitors price.
 2009 2010 2011
Tomato 951,920Kg 1,509,352 Kg 1,558,240 Kg
Mixtures 339,039 Kg 980,419 Kg 1,237,883 Kg
Source: Ethiopian Customs Authority

3.4 Future market or Demand of fruits and vegetables

The future demand for fruits and vegetables is promising due to two main factors. First, an
increase in population in general and urbanization, in particular, is expected to amplify the
domestic consumption of fruits and vegetables. At the same time, an increase in income
inevitably improves the per capita consumption of fruits and vegetables in the future.

3.5 Target customers

Naturally, the target market of fruit, vegetables and milk product is those who benefit from the
business value chain is all encompassing; it is far – reaching. Every household consumes
produce from fruit farms howbeit deferent types and species of fruits. A fruit farmer should be
able to sell his or her farm produce to as many people as possible.

The target customers of this envisaged project include:-

 The surrounding community

 District ,regional and federal government
 Agricultural research institutes
 Agricultural technology and equipment suppliers
 Ginning factories
 Agro-processing factory
3.6. Sales and Marketing Strategy
Over and above, we have perfected our sales and marketing strategies by networking with
agriculture merchants, smoothie shops, fruit juice companies, supermarkets, grocery stores and
companies that rely on raw materials from the fruit farms who are likely to become our
customers.
The proposed project will adopt the following strategies in marketing our commercial farm
produce;
  Introduce our business by sending introductory letters alongside our brochure to stake
holders in the agriculture industry, companies that rely on fresh fruits for their raw
materials, supermarkets, grocery stores et al.
 Advertise our business and agriculture produce in agro – allied and food related
magazines
and websites
 Attend related agriculture and food expos, seminars, and business fairs et al
 6

3.7 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. The major marketing strategies to promote the project
and gain considerable market share include:

 Advertising through different means focusing on the existing service and products.
 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/ product and consistently improving with changing
situations.
 Seasonal discount pricing different others customer centric marketing strategies will be
used by the farm.

3.8. Competition

There are different forms of competition that may face the envisaged mixed farm. 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 farm under discussion has
diversified marketing strategies that could enable it to 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.

3.9. The project facilities and Services plan

In order to provide mixed farm 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 farm. Accordingly, various facilities will be constructed phase by phase starting with
the most needed ones that are essential to commence the operation of its farm activities.

Since the project will be engaged in mixed farming the main sources of its annual revenue would
be from the domestic and international product sell. Based on the market price of Fruit and
vegetable, and milk product in the area, the envisioned project set the fair price (Before VAT) for
its product.

Feature of the sector

Agriculture is the backbone of the economy and the most volatile sector mainly owing to its
dependency on rainfall and the associated seasonal shocks that affect productivity. More than
85% of the Ethiopian population depends on agriculture for their livelihood. Within the context
of the Ethiopian economy, the Agriculture sector traditionally includes economic activities such
as crop and livestock production in which the crop sector has been the major driving element.

The Ethiopian economy is basically comprised of smallholder farming as well as medium and
large scale commercial farming. Relatively speaking, commercial farms are not significant in
terms of area cultivated and volume of production, even though the role has slightly increased in
view of the recent phenomena associated with the establishment of flourishing cut flower farms
in the country which is largely dominated by foreign investment.

Ethiopia is potentially a wealthy country, endowed with abundant resource conducive to

agricultural development such as fertile soil and good rainfall over large regions. Agriculture
accounts for the lion share of the foreign exchange earnings. The sector contributes about 90% of
the total export of commodities. The country’s industrial development programs are closely tied
to value-added processing of agricultural outputs with equal emphasis to both large & medium
scale as well as small scale manufacturing industries. The sector registered significant growth for
the last four consecutive years due to good climatic condition accompanied by increasing crop
productivity through agriculture input intensification and area expansion.

Beneficiaries

The country will get a contribution to its national income through domestic consumption and
export. This project will provide employment opportunity to the local population, this will raise
the living standards of the people working in this project, and they also learn the latest
technologies in crop production and also make use of them in their own farm. The regional
government will also generate revenue in the form of land rent will be an additional source of
income on land resources.

The company, which is making an investment on the land and doing a lot of mixed agricultural
production (fruit and vegetable, pulse oil and dairy farming) activities in developing the land will
be benefitted in terms of return on their investment during the lease period.

Past and Present intervention

Mixed farming project has a technically strong, knowledgeable and experienced team to execute
the project on time. With the vast knowledge base in agri-business activities, the company has
tangible experience in making this project a success. Conflict in the area may retard plan of
project.

Justification of the project

Ethiopia has huge investment potentials for agricultural development. Currently, investment in
the agriculture sector is found to be more attractive and profitable in diverse sub-sectors ranging
from food products, industrial raw materials to bio-fuel. The agriculture sector accounts for 47%
of the Gross Domestic Products of the country, provides 85% of employment and 90% of foreign
currency earning.

Moreover, the country has a huge market potential for crop and livestock produced with
comparative advantage to the Middle East, Europe, and Asia. For the past five consecutive years,
the agriculture sector was growing faster with more than 11% average annual growth. In addition
to the contribution to the national growth, the growth has triggered the increase in the domestic
market has for both livestock and food crops.

Looking at the agro-climatic condition i.e. average temperature, rainfall, physic-chemical

properties of the soil and the distribution of the rainfall give an indication that the proposed land
is suitable for cultivation of various crops but especially fruit, vegetables, and cattle rearing.
The physic-chemical properties of the soil indicated in the information sheet provide further
confidence for the success of the project. Moreover, the planning on the financial part of the
project i.e. investment, cash flow, return on investment, profitability and the cost-benefit ratio
will show a positive trend. The expertise in the marketing of farm-produced in the international
market will provide an additional benefit to improve the financial health of the organization. The
statistic indicated in the financial report will provide us confidence in the project. It justifies the
investment and returns on the investment.

Support for the project

The financial support i.e., the equity infusion in the form of cash and kind for this project on
investments shall be received from promoters. The company shall receive equity infusion in the
form of cash or kind from any of these mentioned companies hereby for its project. The
company shall take the financial support in the form of project loan from either development
bank of Ethiopia or commercial bank of Ethiopia. In addition to our in-house team, we are also
interacting with the Ethiopian Institute of Agriculture Research to get timely support and
valuable advice in this project based on their experiences.

We are also expecting support from Agricultural office and responsible government officials for
identification of suitable land and facilitation of the documentation and import of farm
machinery and equipment, farm inputs for the success of this project. It appears to be a joint
project of mixed farm project and Ministry of Agriculture, Government of Ethiopia, as we need
lots of support from the regional Agriculture bureau at various level of implementation of
activities in this project. Without their help and support, it will not be possible to make this
project a success.
4. TECHNICAL AND PRODUCTION ASPECT

4.1. The Vegetable Production Flow

While production and cultural practices vary from one type of vegetable to another, the general
cultural practices for vegetable production discussed below apply:

a. Land Preparation

Prepare the field at least one month before planting by plowing and harrowing the area for
several times. Follow each plow with harrowing to efficiently prevent weeds from growing .

Prepare furrows at a distance required by each vegetable type to be grown. For wet season
cropping, prepare raised beds instead of furrows. In low and mid elevation areas, make deep
furrows with 0.5m wide. In high elevations, seed beds are prepared according to the width
requirement of each type of vegetable.

b. Seedling Production

Seedling production is necessary for those vegetables which cannot be directly seeded like
tomato, eggplant, cabbage and others. These can be produced through seed bed methods and tray
methods. Seed bed methods require incorporation of manure and rice hull ash or wood ash for
better seedling growth results.

c. Planting and Transplanting

There are vegetables that can be either sown directly in soil or be transplanted. Direct seeding is
carried out by broadcasting or by sowing the seeds in row, then covering the seeds through
spreading additional top soil.

To facilitate transplanting, there is a need to water the seed beds and gently uprooting the
seedlings and transplant it in lower at a distance required by each type of the vegetables,

d. Fertilization and Weeding

Applying the newly transplanted vegetable seedling with starter solutions using organic
fertilizers at the rate of 2t/gallon of H2O. However, there are vegetables that require larger
application o f organic fertilizer at planting to be followed with side dressing applications
especially on the vegetative stages of the grown vegetables. Fertilizers are best applied after
weeding to facilitate maximum utilization of NPK contents of fertilizers by the plants.

e. Trellising/ Vine Training/ Pruning

For those creeping and climbing vegetables, use trellis to protect the fruits from rotting and
malformation. Construct vertical and overhead trellis using Ipil-ipil or bamboo poles, abaca
twines or straw wires are done.

Train the vines on the vertical trellis (e.g. bitter gourd). Lateral shoots may be pruned leaving
only the main vine. Removing all female flowers below the overhead trellis enhanced full
development of well formed fruits.

f. Pest Management and Maintenance

An integrated pest and disease management is encouraged nowadays. IPM can be applied by
pruning and burning old infected leaves at regular intervals. Virus spread can be prevented by
using healthy seeds. Avoid nematode damage through crop rotation and use of organic manure.

Another method for pest management is to use botanical pesticides or soap a solution which is
found effective to control aphids and cabbage looper worms. Hot pepper extracts are sprayed to
leafy vegetables (petchay/lettuce) to control damping off, soft root and club root diseases.
Today’s generation of farmers used organic pesticides in controlling the occurrence of peace and
disease of plants.

g. Harvesting

Harvesting is done when vegetables have reached its full maturity growth stage. Some vegetables
are harvested with mature, green or fully ripened fruits or harvesting is done just before fruits are
fully ripe or when the peduncle starts to dry up (e.g. squash). Some mode of harvesting is done
according to the number of days after planting.
 production
Vegetables Total area Total production kg
kg/ha
3 Cabbage 12,180 3 36540
4 Red Onion 1,428 9 12852
5 Tomato 528 9 4752
6 Garlic 1,428 9 12852

4.2. Fruit farming process

I. Banana

Banana Plantation Spacing a good spacing in your commercial farming is also a key factor,
which decides the production. So, for Banana plantation spacing, planting should be done with
spacing 1.8 meters X 1.5 meter. This will make you able to plant more than 3600 banana plant
per unit hectare land & is also assumed to be most economical and efficient spacing for
commercial banana cultivation.

Fruit production kg/ha Total area Total production kg

1 Avocado 800 10 8000
2 Mango 800.00 10 8000
3 Banana 72,000.00 10 720000

4.3. Niger seed Farming Process

a) Land Development
Like other crops, Land clearing, leveling. Irrigation system and access and farm road
construction will be the land development activities for crop production tractor, leveling and
surveying instruments are expected to be employed for land development purpose.

b) Land Preparation, Sowing and Fertilization

Land development for crop production is followed by land preparation. Operation
includes ploughing, discing and harrowing. Sowing follows harrowing with fertilization.
For land preparation tractors with various bottoms like disc plough, disc harrows.
Fertilizers and drillers will be employed in general
 c) Pre-harvest Management
The pre-harvest management in Crop production usually involves irrigation water application on
river on Nedi River and underground water weeding and cultivation insect pest and disease
control, irrigation water application using different canals gravity and weed control will be
performed by casual labor. Moreover, Insect pest and disease control will be performed by
motorized sprayer.
d) Post-harvest Management
Post-harvest in Crop production farm comprise picking, Sorting, Grading, Packing
transporting. Storing and marketing general terms, picking, sorting and grading are
expected to be carried out manually by casual labor, while transporting or product will be done
by tractor driven trailers and trucks, from the farm and stores to markets respectively.

4.4. Dairy farming

production lit/head for 6 No of cow
Milk cow month head Total production /lit
Milk cow 21600 10 216000

4.5. Intended Irrigated System

With the changing climate delivering hotter, drier summers, many farmers are seeking solutions
by irrigating crops. Options for irrigation depend on a farm s size, crops grown, soil type, and
budget. The envisioned crop production farm will implement Surface irrigation system on Nedi
River and underground water when the river flow decreases winter time. Surface irrigation is
defined as the group of application techniques where water is applied and distributed over the
soil surface by gravity. It is by far the most common form of irrigation throughout the world and
has been practiced in many areas virtually unchanged for thousands of years. Surface irrigation is
often referred to as flood irrigation implying that the water distribution is uncontrolled and
therefore, inherently recent in reality, some of the irrigation practices grouped under this name –
involve a significant degree of management (for example surge irrigation). The process or
surface irrigation can be described using four phases. As water is applied to the top end of the
field it will flow or advance over the field length the advance phase refers to that length of time
as water is applied to the top end of the field and flows or advance over the field length. After the
water reaches the end of the field it will either run of or start to pond. Phase as the inflow ceases
the water will continue to runoff and infiltrate until the entire field is drained. The depletion
phase is that short period of time after Cut-off when length of the field is still submerged. The
recession phase describes the time period of water while the water front is retreating towards the
downstream end of the field. The depth or water applied to any point in the field is a function of
the opportunity time, the length of time for which water is present on the soil surface.

4.5. Machineries and Equipment

A. Farm tool

 Hoes
 Spades
 Axle
 Water pump
 Others
B. Agricultural Machineries

 Tractor
 Trailer
 Plough
 Seed bed
 Ridger
 Cultivator
 Disc hallow
 Corn-sheet
 Weeding comb
 manual spray
 bale collector
C. Vehicle

 trucks
 tractor

4.6. Project Design and Engineering

The proposed project comprises stock of different components to be executed different phases of
the project life. These activities include: Design and Construction of various buildings (store),
importing of few machineries and farming.

4.7. Utilities
The project needs to have the following utilities
  Water(river) for irrigation
 Fuel
 Supplementary Electricity supply.
 Telephone line
 Paved Road Transportation and Drainage Facility

4.8. Project implementation Plan

The project's implementation is expected to take 8 months. The major activities include
Bank loan processing. Construction of the building. Cleaning the area around the building.
Procurement of equipments and start rendering services. The time schedule for
the above mentioned major activities is presented below.
Table 1: Project-Implementation-Schedule
SN Activities date
1 Land Approval July,2023
2 Bank loan processing July, 2023
3 Building and construction work September, 2023
4 Site Development and land development September,2023
5 Irrigation system development Novembe,2023
6 Purchasing of Machines and Equipment Novembe,2023
7 Planting of crops December 2023

4.9. Organization and management

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
a CEO with the responsibility of supervising the overall activity of the plant. Depending
up on the nature of the center and the amount of work to be performs; there will be
auxiliary units under the general manager. At full capacity the farm will hire a total of 58
workers (29 Female and 29Male)
 8 permanent Workers
 50 temporary or seasonal Workers
The list of work-force and corresponding costs both for permanent are shown in the
in the next part of this document.

5. FINANCIAL REQUIREMENT AND ANALYSIS

The financial resource is a prime resource for undertaking any activities. Hence for
implementing the project is a total of 3Million ETB is required. From this 20% 601,612birr will
be covered by the promoter of the project while the rest 80% 2,406,448 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 Capital
A. Land development, buildings and Construction

The cost of buildings and construction is estimated at 312,320.00 Birr. Detailed financial
requirement presented in the following table.

Table 2. Land development, buildings and Construction

A. Land, Building & Construction

S.N Description of works Total Cost in birr

1 Building construction 300,000.00

2 Site Development 10,000.00

1st Year land lease & (10%) down

4 2320
payment
Total 312,320.00

B. Machinery and Equipment

The total cost of machinery and equipment is estimated at 217,280 birr.

Table 3. Machinery and Equipment

Unit cost in Total cost in

SN Description Measurement Qty
Birr Birr.
1 Plow no 1 1,000 1,000.00
2 Harrow no 1 800 800.00
3 Carabao no 1 6,000 6,000.00
4 Bolo no 1 180 180.00
5 Shovel no 2 300 600.00
6 Hoe no 2 300 600.00
7 Pail no 3 300 900.00
8 Scythe no 2 300 600.00
9 Knife no 2 250 500.00
10 Kegs no 5 500 2,500.00
11 100 kg sucking material no 200 20 4,000.00
12 auger, no 2 2000 4,000.00
13 Mower no 2 300 600.00
Mounted Medium Disc Harrow
14 no 2 5000 10,000.00
 15 Sprayers no 3 2500 7,500.00
16 Spade no 1 1000 1,000.00
17 water pumps no 3 20000 60,000.00
18 weighting scale no 2 10000 20,000.00
19 Refrigerator no 3 30,000 90,000.00
material coast of seedling
20 10000 1 5,000.00
(plastic) no
material coast of harvesting
21 50 30 1,500.00
(basket) no
Total no 217,280.00
C. Vehicle

S Description UOM Qty Unit Cost in Total cost in Birr Remark

N Fr.
1 Isuzu Unit 1 1,000,000.00 1,000,000.00 Duty Free
Tractor Unit 1 400,000.00 400,000.00
Total 1,400,000.00

D. Milk Cow purchase

Description unit Qty unit coast Total coast

Milk Cow no 10 30,000.00 300000

E. Office Equipments
SN Description Measurement Qty Unit cost in Total cost in
birr Birr
1 Managerial tables Unit 1 3,600.00 3,600.00
2 Managerial chairs Unit 1 2,000.00 2,000.00
3 Office table with chair Unit 1 3,000.00 3,000.00
4 Shelf Unit 4,500.00 0.00
5 Fax & Telephone machine Unit 1 2,500.00 2,500.00
Total 11,100.00
5.2. Working Capital

5.2.1. Operating Expense at full Capacity

a. salary Expense
The Wet coffee Hauling plant will create job opportunity for more than 58 labour forces. From
the total employee 8 are permanent and 50 are causal workers that are planned to be drawn from
local community. Accordingly from permanent workers 1 is female and 6 are male employee.
The proposed manpower requirement and the estimated annual labour cost including fringe
benefits are presented in the table below.

Table 4.man power

SN Position No Qualification Monthly salary in Annual salary in
Birr Birr
1 Farm Menager 1 BA in management 4000 48000
2 Livestock expert 1 Bsc in animal science 3000 36,000
3 Agronomy 1 Diploma in 2000 24,000
accounting
4 Guards/Security 2 Basic 1000 12,000
5 Driver 2 10 completed 2000 24,000
Total 7 144,000
Benefit (20%) 28,800
Grand Total 172,800

5.2.1 Operating Expense

Table 5. Operating Expense

S List of Items Quant List of Items Annual Assumptions Used

N ity cost in birr
1 Seedling Coast 100kg Seedling Coast 100,000.00
2 Fertilizer 500 kg DAP & Urea 50,000.00
 3 weed control chemical 100 lit Chemical 10,000.00
 4 forage preparation 100 kg Molasses 10,000.00
 coast
 5 labour coast of man power 4,000.00 10 workers for 10
seedling days=( 10*10*40)
 6 Labour coast of 12,000.00 30 workers for 10
planting days=( 30*10*40)
 7 labour coast of loading 5,000.00
and unloading
 8 labour coast of Labour 12,000.00 30 workers for 10
harvesting days=( 30*10*40)
9 Stationery supplies 1 Stationery 1,200.00 100 br/month
supplies
10 Promotional Cost 2 time Promotional Cost 3,000.00 Lump sum annual cost
11 Property Insurance 3 Property 3,000.00 1% of the building
Insurance
12 Cleaning Supplies 4 Cleaning Supplies 1,200.00 100 br. Per month
13 Electric consumption 7 Electric 1,200.00 20000KWH By Br.0.4736
consumption
14 Fuel 8 Fuel 63,000.00 1033 lit per year by Br. 61

15 Oil & Lubricants 9 Oil & Lubricants 6,300.00 10% of fuel cost
16 Telephone & fax 1 Telephone & fax 1,200.00 100 per month
17 Repair expense 11 Repair expense 6,000.00 2% of building cost
18 Miscellaneous costs 12 Miscellaneous 12,000.00 1000 per month
costs
Total Total 301,100.00

Table 6.pre service expenses

5.1.1   Pre-service Expenses
SN Description Cost in birr
1 Project proposal & EIA 30,000.00
2 Licensing fee and others
Total 30,000.00

5.2.3. Summary of investment cost

The total initial investment cost of the project including working capital is estimated at Birr 3
million. The major breakdown of the total initial investment cost is shown in Table 12.

Table 7. Summary of Total initial investment cost

 SN Description Cost in Birr
1 Land, building & construction 312,320.00
2 machines & Equipments 217,280.00
3 Vehicle 1,400,000.00
4 Office Equipment 11,100.00
Milk cow purchase 300,000.00
Total fixed investment cost 2,240,700.00
6 Salary expense 172,800.00
7 Operation Expense 301,100.00
8 Pre service Expense 20,000.00
Total Working capital 493,900.00
Sub total 2,734,600.00
11 Contingency (10%) 273,460.00
Total initial investment capital 3,008,060.00

5. 3. Financial Analysis
Underlying Assumption

The financial analysis of fruit, Vegetable and dairy farming is based on the data provided in the
preceding chapters and the following assumptions.

A. Construction and Finance

Land Preparation Period 2 months

Source of Finance 20 % Equity and 80 % Loan

Tax Holidays 10 Years

Bank Interest Rate 10 %

Discount for Cash Flow 18 %

Value of Land Based on Land Rent Rate of ONRS

Spare Parts, Repair & Maintenance 3 % of the Fixed Investment

B. Depreciation
Building 5%

Machinery and Equipment 10%

Office Furniture 10%

 Vehicles 20%

Pre-Production (Amortization) 20%

C. Working Capital (Minimum Days of Coverage)

Spare Parts In Stock and Maintenance 30 Days

Accounts Receivable 30 Days

Cash In Hand 30 Days

Accounts Payable 30 Days

5.4. Financial analysis and Statements

54.1. Underlying Assumption

5.4.2. Sources of Fund

The source of fund to finance the project is planned to be from two sources. These are
promoter’s equity and bank loan. The loan is expected to be obtained from one of the local
lending institutions. Since the project is expected to take some times to repay all its debts, the
bank loan is assumed to obtain on long term credit basis. Taking the financial position of the
promoters into account, equity contribution and bank loan to finance the total investment outlays
of the project are assumed to be 20% and 80% respectively. Accordingly, the total financial
requirement from the two sources will be

Table 8. Source of fund

601,612
Owners equity 20%
2,406,448
Bank loan 80%
3,008,060.00
Total 100%
5.4.3. Depreciation Schedule

Table 9. Depreciation Schedule

Original Value Depreciation Depreciation
SN Description
in Birr rate in % per year in Birr
1 Construction and Building 312,320.00 10 31,232.00

2 Bldg. machines & Equipments 217,280.00 10 21,728.00

3 Vehicle 1,400,000.00 5 70,000.00

4 Office Equipment 11,100.00 10 1,110.00

Total 1,940,700.00 124,070.00

5.4.4. Bank Repayment schedule

Table 10. : Bank Repayment schedule

Year Principal Interest rate Total annual year ending

payment (8.5%) Payment in balance
ETB
0 2406448

1 240644.8 204548.08 445192.88 2165803.2

2 240644.8 184093.272 424738.072 1925158.4

3 240644.8 163638.464 404283.264 1684513.6

4 240644.8 143183.656 383828.456 1443868.8

5 240644.8 122728.848 363373.648 1203224

6 240644.8 102274.04 342918.84 962579.2

7 240644.8 81819.232 322464.032 721934.4

8 240644.8 61364.424 302009.224 481289.6

9 240644.8 40909.616 281554.416 240644.8

10 20454.808 0
5.5. Financial Statement

5.5.1. Income loss/statement

Project revenue and production costs are listed and compared to see whether the project generate
profits or not. Starting from first year of the project operation, the project will generate a
reasonable amount of net profit for the owners throughout its life period. Profit and loss
statement shows that the project will generate net profit of ETB 7,068,409.15 in the first year and
increase to ETB 12,499,055.36 in the fourth year of the project life and hence it is found to be
profitable.
Table 11. Income/loss statement
Revenue Year 1 Year 2 Year 3 year 4 year 5
Sell 10,902,101.44 10,956,934.82 11,053,768.20 18,598,803.02 18,758,185.32

Expenses

Salary Expense 172,800.00 172,800.00 172,800.00 172,800.00 172,800.00

Operating Expenses 301,100.00 301,100.00 301,100.00 301,100.00 301,100.00

Deprecation Bld. 124,070.00 124,070.00 124,070.00 124,070.00 124,070.00

Machineries ,Equiq
& vehicle
Interest Expense3 204,548.08 184,093.27 163,638.46 143,183.66 122,728.85

Lease payment4 1,856.00 1,856.00 1,856.00 1,856.00 1,856.00

Total Expense 804,374.08 783,919.27 763,464.46 743,009.66 722,554.85

Profit before Tax 10,097,727.36 10,173,015.55 10,290,303.74 17,855,793.37 18,035,630.48

Tax (30%) 3,029,318.21 3,051,904.66 3,087,091.12 5356738.01 5410689.143

Net profit 7,068,409.15 7,121,110.88 7,203,212.62 12,499,055.36 12,624,941.33

5.4.2. Cash flow Statement
Table 12. Cash flow Statement

Year Year 0 Year 1 Year 2 Year 3 year 4

Equity Capital 902418

Loan principal 2105642

Net sale 0 10,902,101.44 10,956,934.82 11,053,768.20 18,598,803.02

Total Cash in
3,008,060 10,902,101.44 10,956,934.82 11,053,768.20 18,598,803.02
flow

Cash payment

Salary Expense 0 172,800.00 172,800.00 172,800.00 172,800.00

Investment 2,240,700 0 0 0 0

Pre operating
20,000 0 0 Vegetable 0
Expense

Operating Cost 0 301,100.00 301,100.00 301,100.00 301,100.00

Loan repayment 0 445,192.88 424,738.07 404,283.26 383,828.46

Lease payment 0 1,856.00 1,856.00 1,856.00 1,856.00

Tax payment 0 3,029,318.21 3,051,904.66 3,087,091.12 5,356,738.01

2,260,700.0
Total payment 3,777,467.09 3,779,598.74 3,794,330.39 6,043,522.47
0

Cash surplus/
747,360.00 7,124,634.35 7,177,336.08 7,259,437.82 12,555,280.56
deficit
Cumulative cash -
7,124,634.35 7,177,336.08 7,259,437.82 12,555,280.56
flow 155,058.00
 A. Vegetable
Cabbage Tomato Red Onion Garlic
Year Price Price Marketabl Price Price
Marketable Total Marketable Total Total Marketable Total
per per e per per
Yield Kg. Yield Kg. Yield Kg. lit
192780.
1 36546.7 15.00 548201.44 50,000 15.00 750000.00 12852 15.00 12852.00 60.00 771120.00
00
192780.
2 36546.76 15.50 566474.82 50000.00 15.73 786500.00 12852.00 15.00 12853.00 60.00 771180.00
00
192780.
3 36546.76 16.00 584748.20 50000.00 17.30 865000.00 12852.00 15.00 12854.00 60.00 771240.00
00
192780.
4 36546.76 17.60 643223.02 50000.00 19.03 951500.00 12852.00 15.00 12855.00 60.00 771300.00
00
192780.
5 36546.76 19.36 707545.32 50000.00 20.93 1046500.00 12852.00 15.00 12856.00 60.00 771360.00
00
716320 50000 192780.
6 19.36 21.00 1050000.00 12852.00 15.00 12857.00 60.00 771420.00
37000 00
7
735680 50,000. 192780.
8 19.36 21.00 1050000.00 12852.00 15.00 12857.00 70.00 899990.00
38000 00
739552 50,000.00 205632.
9 19.36 21.00 1050000.00 12852.00 16.00 12857.00 71.00 912847.00
38200 00
745360 50,000.00 218484.
10 19.36 21.00 1050000.00 12852.00 17.00 12857.00 72.00 925704.00
38500 00
755040 50,000.00 231336.
11 19.36 21.00 1050000.00 12852.00 18.00 12857.00 73.00 938561.00
39000 00
Table 13. Sales forecast

A. Vegetable
B. Sales forecast for fruit

B. Fruit farm
Yea Avocado Mango Banana
r Marketabl Price Total Marketabl Price Total Marketabl Price Total
e Yield per sell e Yield per sell e Yield per sell
kg Kg. Birr kg Kg. Birr kg Kg. Birr
1 0.00 0 0.00 0 0.00 0 0.00 0 0
2 0.00 0 0.00 0 0.00 0 0.00 0 0
3 0.00 0 0.00 0 0.00 0 0.00 0 0
16000 720000
4 8000.00
5 40000 8000 20 0 720000 10 0
16000 720000
5 8000.00
5 40000 8000 20 0 720000 10 0
16000 720000
6 8000.00
5 40000 8000 20 0 720000 10 0
16000 720000
 7 8000.00
5 40000 8000 20 0 720000 10 0
16000 720000
8000.00
8 5 40000 8000 20 0 720000 10 0
16000 720000
9 8000.00
7 56000 8000 20 0 720000 10 0
16000 720000
10 8000.00
7 56000 8000 20 0 720000 10 0
16000 720000
11 8000.00
7 56000 8000 20 0 720000 10 0
C. Oil Seed and Dairy

C. Oil seed D. Dairy farming Grand Total

Yea Niger seeds Milk sells sell/birr
r Marketabl Price Total Marketabl Price Total (A,B,C,D)
e Yield kg per sell e product per sell
Kg. Birr Kg. Birr
1 54000 100 5400000 216000 15 3240000 10902101.44
2 54000 100 5400000 216000 15 3240000 10956934.82
3 54000 100 5400000 216000 15 3240000 11053768.2
4 54000 100 5400000 216000 15 3240000 18598803.02
5 54000 100 5400000 216000 15 3240000 18758185.32
6 54000 100 5400000 216000 15 3240000 18770520
7 54000 100 5400000 216003 15 3240045 16040045
8 54000 100 5400000 216000 15 3240000 18918450
9 54000 100 5400000 216004 15 3240060 18964091
10 54000 100 5400000 216004 15 3240060 18995608
11 54000 100 5400000 216005 15 3240075 19031012
 Annex 1. operating cost
Operating years of the project
Description
1 2 3 4 5 6 7 8 9 10
A. Direct cost
301,100 301,100 301,100 301,100 301,100 301,100 301,100 301,100 301,100 301,100
Raw Material Cost
301,100 301,100 301,100 301,100 301,100 301,100 301,100 301,100 301,100 301,100
Sub-total
301,100 301,100 301,100 301,100 301,100 301,100 301,100 301,100 301,100 301,100
Total Direct cost

B. Indirect cost
172,800 172,800 172,800 172,800 172,800 172,800 172,800 172,800 172,800 172,800
  Wages and Salary
6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
  Repair and Maintenance
3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
  Property Insurance
0 0 0 0 0 0 0 0 0 0
  Utility
1,856 1,856 1,856 1,856 1,856 1,856 1,856 1,856 1,856 1,856
  Land lease
10,000.00 10,000.00 10,000.0 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
  Advertising and Promotion 0

12,000.00 12,000.00 12,000.0 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00
  Miscellaneous Expense 0

506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756
Total operating cost
 Annex.2 income statement
Operating years of the project
Description 1 2 3 4 5 6 7 8 9 10
Sales Revenue 10,902,101 10,956,935 11,053,768 18,598,803 18,758,185 18,770,520 18,918,450 18,964,091 18,995,608 19,031,012

Less: Operating cost 506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756

Income before Depreciation and 10,395,345 10,450,179 10,547,012 18,092,047 18,251,429 18,263,764 18,411,694 18,457,335 18,488,852 18,524,256
interest
Less: interest 204,548.08 184,093.27 163,638.46 143,183.66 122,728.85 102,274.04 81,819.23 61,364.42 40,909.62 20454.808

Income before Depreciation 10,190,797 10,266,086 10,383,374 17,948,863 18,128,700 18,161,490 18,329,875 18,395,971 18,447,942 18,503,801

Less: Depreciation 0 0 124,070 124,070 124,070 124,070 124,070 124,070 124,070 124,070

Profit /Loss Before Tax 10,190,797 10,266,086 10,383,374 17,948,863 18,128,700 18,161,490 18,329,875 18,395,971 18,447,942 18,503,801

Less: Tax (30%) 3,057,239.21 3,079,825.66 3,115,012.12 5,384,659.01 5,438,610.14 5,448,446.99 5,498,962.43 5,518,791.1 5,534,382.72 5,551,140.36
7

Net Profit or Loss After Tax 7,133,558.15 7,186,259.88 7,268,361.62 12,564,204.36 12,690,090.3 12,713,042.9 12,830,912.3 12,877,179. 12,913,559.6 12,952,660.8
3 7 4 40 7 3
 Annex 3. discounted cash flow
Description Investmen Project Life years
t Year
0 1 2 3 4 5 6 7 8 9 10
INFLOW
Net sales 0 10,902,101 10,956,93 11,053,768 18,598,803 8,000 8,000 8,000 8,000 8,000 8,000
revenue 5
TOTAL 0 10,902,101 10,956,93 112,053,76 18,598,803 8,000 8,000 8,000 8,000 8,000 8,000
INFLOWS 5 8
OUTFLOWS
Investment cost 2,240,700 - - - - - - - - - -
Operating cost 0 506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756
Income tax 0 3,057,239 3,079,826 3,115,012 5,384,659 5,438,610 5,448,447 5,498,962 5,518,791 5,534,383 5,551,140
TOTAL 2,240,700 3,563,995 3,586,582 3,621,768 5,891,415 5,945,366 5,955,203 6,005,718 6,025,547 6,041,139 6,057,896
OUTFLOWS
NET CASH -1120940 7,338,106.2 7,370,353. 7,432,000.0 12,707,388. - - - - - -
FLOW 3 16 8 01 5,937,366. 5,947,202. 5,997,718. 6,017,547.1 6,033,138.7 6,049,896.
14 99 43 7 2 36
NET PRESENT VALUE (NPV) 8,084,532.22
INTERNAL RATE OF RETURN (IRR) 1.39%
DISCOUNTED PAYBACK PERIOD (DPBP) 3.9years
 Annex 4 undiscounted cash flow
Project Years
Investment
Year Operating years
Description 0 1 2 3 4 5 6 7 8 9 10
INFLFOWS
Inflow Funds
Own Equity
301,585
Long-term Loan
1,206,339 0 0
Inflow Operations
3,254,120 3,273,654 3,321,496 3,425,761 3,493,363 3,563,710 20,000,000 20,000,000 20,000,000 20,000,000
Sales revenue
0 3,254,120 3,273,654 3,321,496 3,425,761 3,493,363 3,563,710 20,000,000 22,000,000 22,000,000 22,000,000
TOTAL INFLOWS
1,507,924 3,254,120 3,273,654 3,321,496 3,425,761 3,493,363 3,563,710 20,000,000 20,000,000 20,000,000 20,000,000
OUTFLOWS
Investment cost
1,120,940 0 0 0 0 0 0 0 0 0 0
Operating cost
0 262,756 262,756 262,756 262,756 262,756 262,756 262,756 262,756 262,756 262,756
Financing Cost
· Principal 120,634 120,634 120,634 120,634 120,634 120,634 120,634
0 0 0 0
·Interest 102,539 92,285 82,031 71,777 950,725 51,269 41,016 30,762 20,508 10,254
0
Income Tax
0 866,648 875,584 893,013 927,368 61,523 974,905 984,105 988,657 993,791 1,000,086
TOTAL OUTFLOWS 1,120,940 1,231,942 1,230,625 1,237,800 1,382,535 1,395,638 1,409,565 1,408,510 1,402,809 1,397,689 1,393,730
NET CASH FLOW
0 2,022,178 2,043,029 2,083,697 2,043,225 2,097,725 2,154,145 18,591,490 18,597,191 18,602,311 18,606,270
BEGINNING CASH BALANCE
0 0 2,022,178 4,065,206 6,148,903 8,192,128 10,289,853 12,443,999 31,035,489 49,632,680 68,234,991
ENDING CASH BALANCE
0 2,022,178 4,065,206 6,148,903 8,192,128 10,289,853 12,443,999 31,035,489 49,632,680 68,234,991 86,841,261
 Annex 5 undiscounted cash flow
Project Years
Investment
Year Operating years
Description 0 1 2 3 4 5 6 7 8 9 10
INFLFOWS
Inflow Funds
Own Equity
601,612
Long-term Loan
2,406,448 0 0
Inflow Operations 10,902,10 11,053,76 20,000,00 20,000,00
1 10,956,935 8 18,598,803 8,000 8,000 0 20,000,000 0 20,000,000
Sales revenue 10,902,10 11,053,76 20,000,00 22,000,00
0 1 10,956,935 8 18,598,803 8,000 8,000 0 22,000,000 0 22,000,000
TOTAL INFLOWS 10,902,10 11,053,76 20,000,00 20,000,00
3,008,060 1 10,956,935 8 18,598,803 8,000 8,000 0 20,000,000 0 20,000,000
OUTFLOWS
Investment cost
2,240,700 0 0 0 0 0 0 0 0 0 0
Operating cost
0 506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756 506,756
Financing Cost
· Principal 240,645 240,645 240,645 240,645 240,645 240,645 240,645
0 0 0 0
·Interest 0 204,548 184,093 163,638 143,184 5,438,610 102,274 81,819 61,364 40,910 20,455
Income Tax
0 3,057,239 3,079,826 3,115,012 5,384,659 122,729 5,448,447 5,498,962 5,518,791 5,534,383 5,551,140
TOTAL OUTFLOWS
2,240,700 3,768,543 3,770,675 3,785,407 6,275,243 6,308,740 6,298,122 6,328,182 6,327,556 6,322,693 6,318,996
NET CASH FLOW 13,671,81 13,677,30
0 7,133,558 7,186,260 7,268,362 12,323,560 -6,300,740 -6,290,122 8 13,672,444 7 13,681,004
BEGINNING CASH 14,319,81 33,911,73 21,320,87 48,665,13
BALANCE 0 0 7,133,558 8 21,588,180 9 27,610,999 8 34,992,695 9 62,342,446
ENDING CASH BALANCE 21,588,18 27,610,99 34,992,69 62,342,44
0 7,133,558 14,319,818 0 33,911,739 9 21,320,878 5 48,665,139 6 76,023,450