PROJECT PROPOSAL FOR

ESTABLISHMENT OF MIXED USE

BUILDING.

PROJECT TO BE IMPLEMENTED IN:-

ADISSE ABEBA CITY

PROMOTER:-MICALE AMEBACHEW

Nov, 2021
ETHIOPIA

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Table of Contents
Executive Summary............................................................................5
Introduction........................................................................................6
General Background.........................................................................6
2 Project Objectives.............................................................................8
2.1 General Objective.......................................................................8
2.1.1 Specific objective..................................................................8
Project description............................................................................8
Project Rationale..............................................................................9
The significance of the project..........................................................9
Project Location..............................................................................10
3The market Study............................................................................11
Market Analysis..............................................................................11
The Demand-Supply Gap...............................................................11
Current supply of Mixed use building.............................................12
Future market or Demand of commercial Building rental...............12
Target customers............................................................................13
Marketing promotion and strategy..................................................13
Competition....................................................................................13
The project facilities and Services plan...........................................14
4 Technical Studies...........................................................................16
4.1 Description of the project Service/ Product mix........................16
4.1.1 Land Use Plan....................................................................16
4.2 Construction work and Technology...........................................17
4.2.1 Construction schedule........................................................17
4.2.2 Architectural Design & Layout............................................17
4.2.3 Structural design................................................................18
4.2.4 Reinforced concrete............................................................18
4.2.5 Foundation Design.............................................................18
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 4.2.6 Construction Plan and process...........................................19
4.3 Utilities.....................................................................................19
5 Engineering and civil works............................................................21
5.1 Land, Building and Civil Works................................................21
5.2 Manpower and training requirement.........................................22
5.2.1 Manpower requirement.......................................................22
Labor Availability.........................................................................23
Project implementation...................................................................23
Organizational Structure................................................................24
Organization and management.......................................................24
6 Financial analysis..........................................................................31
6.1 Repair and Maintenance Cost...................................................31
6.2 Depreciation and Amortization.................................................31
6.3 Total Revenue...........................................................................32
6.4 Discounted Payback Period......................................................32
6.5 Cash flow..................................................................................32
6.6 Benefit cost ratio......................................................................32
6.7 Internal Rate of Return.............................................................33
6.8 Net present value......................................................................33
7 Conclusions and Recommendations...............................................34
Conclusion.....................................................................................34
Recommendations..........................................................................35
References.........................................................................................36

List of table

Table 1: Office Space Demand Forecast…………………………………………. 12

Table 2: The plan is that the ground will be partitioned in to different rooms…14

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

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

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

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

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

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

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1. Executive Summary
1. Project Name Mixed Use Building

2. Project Owners Micale Amebachew

3. Nationality Ethiopian

4.Address

4. Project location Adisse Abeba

5.Project Composition Supermarket, Bank, Modren Jime Sporet ,develop

modern shops,hall, office, and restaurant & cafeteria
facilities that enable to provide standard services.
6. Premises Required 200 m2

7. Startup Capital For implementing this project, a total of

15,000,000.00Eth birr is required. From this 30%
4,500,000.000 birr will be covered by the promoter of
the project while the rest will be covered%70 or
10,500,000.00 by financial institutions.

8.Employment This project deemed to employ 60 permanent

Opportunity employees of which 9 are unskilled while the rest are
skilled.
9. For The country Source of income for the regional government as
business income tax

5
2 Introduction

2.1 General Background

The current fast and dynamic economic growth of Oromia region especially
in Nonoworeda ssilk ambatown 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 multi- purpose in the one
becoming rapidly expanding in Nonosince dynamic economic development
of urban economy requires the construction of these buildings in the city to
support the growing of business service sectors like supermarkets, Beauty
salon, shops, offices cinemas, Computer Center, Cafeterias, restaurant,
assembly hall, apartments and other activities. In this regard, mixed used
building expands in the all parts of the city.

Investment and property development play an important role in any

emerging markets or economies. Property generally comprises residential
houses and commercial real estate property (mainly mixed us 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
6
performance of the macroeconomic conditions. In general, a stable
macroeconomic condition leads to economic and business growth and
develops investors’ confidence. This certainly spurs large demand in the
property market for office space, shopping malls, catering services,
apartment and residential houses. Following growing demand trends, and
with the expectation of high return on their investment capital, large
number of land developers pooled their financial resources and invested in
the property market.

To this effect, the owner of the envisioned Mixed Use Building Mr Deraje
Abera who has been living for long time in this city, planned to construct in
Silk Amba and undertaken this project study to check the market,
technical and financial feasibility of this project. The promoter is very
ambitious and committed to realize the project. Hence, they expect to get
the necessary support from the city administration to make the project to
be operational.

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

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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 Silk amba. Its specific objectives include the following.

2.1.1Specific objective

 To construct and develop modern shops, offices, and restaurant&

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

2.3 Project description

The long-term goal of the project is become the best choice trade center in
the city. The proposed project will have a total area of 200m2, designed to
reader a multipurpose giving business, which will in turn plays significant
role towards solving shortage of business center in Silk amba.

The historical nature of the city as business unique location in one of the
most attractive centerin Ethiopian (100% urban center). The owners plan
the project to render banking and insurance, shopping facility, offices and
cafeteria services to create high quality class to satisfy the interest of
customers in the city. Based on environmental and other considerations,
the entrepreneur has determined the type and size of the building which is
8
already determined by the site; conceptual planning and preliminary
analysis have been carried out by analysts.

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

2.4 Project Rationale

The existing promising investment opportunities, the demands of service

need along with relatively sound investment support made by the
government in such kinds of feasible projects, compelled the project
promoter to initiate the multipurpose oriented business project to be
established. Despite the promising business opportunities of the city, the
trend on such kinds of investment found to not enough. The mismatch
between the demand for and supply of such kind of services in easily
observed in the city.

Therefore, the existing shortage or absence in the supply of these services,

along with its commercial and administrative access, better location and
infrastructure access, escalating trend of urbanization and business
activities, thus it is with such reason that this project is identified and
proposed and assumed to be more profitable.

In general, the country’s privatized and free market economy; good

governance creates a favorable environment for the development of
investment for private investors.

2.5 The significance of the project

The envisaged project deemed to add to the economic development of the

city in general in specific with following ways:

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 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 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 26individuals and more than eighty individual during
construction.

2.6 Project Location

The license area is located in Nono woreda, Silk Amba locally named as"
Civil Service". The total area of the project is 200 m 2. . It is surrounded by
main asphalt road at west part, south east by resident, south west
resident, and mixed use building at North part.

Mixed-useDevelopments
Mixed-use projects are developments which combine two or more
types of revenue producing real estate developments. Mixed-use
projects may be either low rise
suburbanprojectsorhighrise,highdensityurbanprojects.Mixed-
useprojectswere created to satisfy a convenience and marketing
demand using valuable property for itshighestandbestuse.
[1]Forinstance,tohaveahotelfunctionprovidesadvantage for office
visitors while creating a demand for the hotel itself. The synergy
created between the components creates vitality for the mixed-use
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development and generally combining different functions in one single
project is superior to each singledevelopment.

Mixed-use developments are characterized by :

 three or more significant revenue-producing uses (such as

retail/entertainment, office, residential, hotel, and /or
civic/cultural/recreation) that in well planned projects are
mutuallysupporting;

 significantphysicalandfunctionalintegrationofprojectcompon
ents(andthusa relatively close-knit and intensive use of
land), including uninterrupted pedestrian connections,and

 development in conformance with a coherent plan (that

frequently stipulates the
typeandscaleofuses,permitteddensitiesandrelateditems).
Integrated shared parking is a key component, improving land-use
efficiencies and reducing cost. Pedestrian circulation and orientation
are critical elements in the planning process, because without them,
the project will not work as a whole and will not achieve the desired
synergies and sense of place that are the hallmarks of mixed-
usedevelopments.Thissecondcriteriadistinguishesmixed-
usedevelopments from other real estate projects that may include three
or more significant revenue producing uses but do not fully integrate
them such as businessparks or master planned communities.

Physical configuration of mixed-use developments can be

categorized into three groups as below:

 Mixed-use Towers: These are single, high rise, high density

towers. Functions are layered vertically. Mostly located in
downtown. They have strikingphysical

profileandcreatelandmarkssohelpfulinmarketingthedevelopmen
tbuthavea disadvantage of creating less public outdoorspace.

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 Integrated Multi-Tower Structures: These structures
architecturally connect
individualbuildingsandtowersinonemulti-
componentdevelopment.Common building may be an
atrium, a shopping Centre or underground parking area.
Mostly found in downtown central business district (CBD)
or high density suburbandowntowns.

 Mixed-use Town Centers, Urban Villages and Districts: This

type of mixed-use projects is made up of variety of
individual buildings around streets, parks or squares and
seems like an urban district more than a single project.
Mostly developed outside downtowns. Mixed-use town
centers, urban villages and districts are clearly the
direction that most mixed-use designs are moving today.
They also offer greater flexibility for timing and phasing
projects, important factors in improving feasibility and
reducing risk.

Below are some examples of mixed-use developments from

Turkey and abroad. Figure 2.2 is an example for mixed-use
tower, including residences, a hotel,
shoppingarcade,offices,spafitness,conferenceroomsandparking
facilities. an example for integrated multi-tower structure,
including shopping center,
residences,officesandparkingfacilitiesandFigure2.4isanexampl
efortowncenter
andurbanvillageorganizedaroundaretailmainstreetincludingap
artments,ahotel, a cinema and retailstores.

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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 Nonoworeda silk amba and from every corner of the
country the city has been inviting skilled and unskilled labor forces to the
center; in addition, the number of both national and international offices
has been increasing. Above all the increase in the number of population
increases for the provision of different services. Nowadays, most of the
private business organizations need their own small-medium offices in
order to give their services and provide their products, and they prefer the
place that found in the center or close to the road.

As clearly indicated in the introductory part of this proposal,Nonois the

dynamically growing urban center of Ethiopia. Though the market demand
gap for mixed use building is not clearly understanding there is wider gap
for such demand as many merchants, organizations are flouring to the city
every day. From prior business experiences, the demand of mixed use
building is very high and hence the demand and the supply gap is very
wide.

3.2 The Demand-Supply Gap

There has been a significant growth in the number of local and

international trades across the country. This increase is mainly associated
with the stimulation of economic activist and partly due to an increase in
the flow of international and local traders in to the Silk amba. Since Nonois
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
13
the city. As a result, there is a large gap between the developed and that of
the supply for modern Bank and cafeteria accommodation hence this
project would not face any problem of demand scarcity for it business
Centre 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 Nono woreda in booming highly

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

3.4 Future market or Demand of commercial Building rental

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

Following our survey of office space users in several areas are mainly firms
providing banking, offices, cafeteria and restaurants, supermarkets,
computer center service. Future demand for office space is actually driven
from growth in number of offices in the city which in turn is influenced by
the macro-economic growth in the country. Assuming that demand for
14
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 Office space demand under

base case economic high case economic
Years Growth Growth
2010/201 9,916,543 11,304,859
1
2011/201 11,007,363 12,057,416
2
2012/201 12,218,173 12,953,878
3
2013/201 13,562,173 13,963,577
4
2014/201 15,054,011 14,554,534
5
2015/201 16,709,952 14,987,431
6
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. Business organization
3. The government bureau

4. Non-governmental organizations

3.6 Marketing promotion and strategy

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

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  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.

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 projects all over Nonoworeda silk amba villages
which compete with it.

SiteEvaluation

Theanswerforaquestionof,“asiteforaneed?Oraneedforasite?”dependsonthe
developer’s development strategy and assets. But for both circumstances
market research is the key to a successful development. In order to determine
the most appropriate product type for a specified site for its “highest and best
use” the
developershouldconductagoodmarketresearch.Foraspecifieduse,marketstudy

16
of regional or local areas which gives an understanding of trends and
demographics will lead to find the most suitable sitearea.

Asphysicalfeasibilityisoneofthedeterminantsofproject’soverallfeasibility,ina
feasibilityreport,oncethedecisionhasbeenmadetodevelopinaparticulararea,the
analystevaluatesthepotentialsiteandmakesrecommendationsonthissitebasedon
the criteria definedbelow:

Location

Theoldestclichéintherealestatebusinessisthatwhatmattersis:location,location,
location. Location refers to accessibility and visibility in real estate and they
are
thekeycriteriaforthevalueofsiteandtheintendeddevelopment.Thisisextremely
importantforsometypesofdevelopments.Someretaildevelopmentsrelyheavilyon
sightlinesfromsurroundingstreets.Someofficedevelopmentsmarketwellnotonl
y because of their proximity to freeways but their profile on the skyline.
Mixed-use projects usually have excellent access and good exposure. To
outdistance the competition, the developer’s site must be equal or better
than others within the
marketplace.Tenantswilloftenmaketheirfinaldecisionbasedonvisibilityandeas
e of access.

Proximity to some support services such as retail centers, educational and

cultural facilities, residential developments, recreational facilities etc. may
have positive affect on the development or lack of these may signify to a
niche in the market. Mixed-use projects are likely to generate considerable
auto and pedestrian traffic;
sitesshouldbeproximatetoexistingtravelpatternsandnumerousaccesspoints.

Adjacentlandhasalsoeffectonthesubjectsite.Presentandpossiblefutureplansfo
r the neighborhood should be reviewed carefully. Any inconvenience, of
which some
arelistedbelow,mayadverselyaffectthemarketabilityofthedevelopment[:

 Appearance, odor andnoise

 Overhead powerlines
17
  Cemetery

 Landfill

 Railroads, freeways,expressways

 Airport glidepaths

 Sewer and waterplants

 Manufacturingplants

 Quality ofsurrounding

Trafficpatternsshouldalsobeevaluatedwhenconsideringaccessibilityof
thesite;a heavy traffic may not be desired for some users. This
evaluation may be conducted with a trafficengineer.

3.3.1. Size andshape

The parcel size and configuration should meet the need for the
development. For specified uses minimum size of land parcels will be
required. Mixed-use projects
generallyhaveseveralfeaturesincommon,sositesneedtobesubstantiallyl
argeor allow high density construction. Shape of site is also
important; it should allow the designer to allocate best configuration
in optimumuse.

Planning guidelines, regulations andconstraints

The land should have the required zoning or have the probability of
being rezoned. But attention should be paid that rezoning process
may take long time, sometimes several years depending on the
community.Alsoitshouldbenotedthatparcelsizeisafunctionofzoningcla
ssification,i.e.open space, parking area and density is determined by
planning guidelines where thesize of the parcel is an important
criteria forevaluation.

Mixed-use projects need higher densities or larger site areas. For

instance, in downtown locations, mixed-use towers often have 20 to
30 stories or more. So, zoning should allow such density for mixed-

18
use projects.

19
Climatic and naturalinfluences

Understanding the nature of site and climatic conditions is extremely important in

estimating the site improvement costs. Even, this is important in deciding physical
feasibility of the development. Soil conditions, underground water, surface water,
mines, topographic conditions should all be reviewed. In a typical feasibility study this
is generally done by site visit and obtaining due diligence reports.

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 ground will be partitioned in to different rooms:

Building Description Measur Unit price Total

e in Birr
Basement Parking Service Cars 5/per 5*50*365=91,250
hour
Ground 1 Supermarket, M2 350 200*1100*12*2=9,240,000
and 2 Pharmacy, Banking
& Insurance
1 floor -3
st rd
Beauty salon, shop, M2 224 200*1100*12=2,956,800
floor Computer Center,
Cafeteria and
Restaurant
4th floor floor Different M2 219 200*1100*12=2,890,800
governmental and
other offices
Total 11,158,850

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

20
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 building in the area, the envisioned buildings set the
following fair price (Before VAT) for its service, hence when the building construction
fully get operational it is assumed to generate a yearly income of ETB 12,538,850.

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 twelve floors. The purpose of the building explained as follows;

 The ground floor, first floor second floor and third floor designed for different
business centers like banks, supermarket, beauty salon(man and women),
Computer center, pharmacy, internet café, boutiques, different shops and
other business activities,

 4-8floors designed for Offices.

 8-12 floors designed for Apartments.

4.1.1 Land Use Plan

The total land required for the envisioned project is estimated to be 200m 2. The total
area for the construction of the building will be 200m2, as revealed below.

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Table 3: land utilization Plan

No Description Land M2
Basemen Ground First floor-Twelve
t floor
1 Building (G+12)
1.1 Basement 200
1.2 Ground 200
1.3 First floor-Twelve 200
floor
Total 200

4.2 Construction work and Technology

4.2.1 Construction schedule

The construction project is proposed to be started on July 2019, and is expected to

be finished on July 2022. 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 schedulewill 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

22
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.

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 completed for two frames; one of structural steel and one
of reinforced concrete. The structural steel frame will chosen 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 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.

23
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 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

24
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 includeTable 4: Utilities

Cost
No Description Qty. Unit cost (Birr)
1 Electricity supply, kWh 100,000 1.30*10,000 130,000
2 Water Supplym3 50,000 10*500,000 500,000

3 Telephone and Internet

Broadband 20,000

4
Fuel, Oil and lubricant 2000 19*2000 38,000

Total 1,188,000

25
 BUSINESS PLAN FORMIXED USE BUILDING

5 Engineering and civil works

5.1 Land, Building and Civil Works

The Mixed use building has a total site area of 200 m 2. The building floor area
has covered 24 m2 and the remaining 136 m2 is left for construction. The type
of buildings and its corresponding civil construction cost is given on Table 5.

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

No Description Total price
A. SUB-STRACTURE
1 excavation and earth works 279,570.67
2 concrete work 1,936,546.34
Sub total 2,216,117.01
B. SUPER STRACTURE
1 Concrete work 2,753,358.45
2 Block work 551,534.40
3 Roofing 171,108.00
4 Carpentry and joinery 323,760.00
5 Metal works 820,860.00
6 Finishing 1,111,379.44
7 Painting 275,798.88
8 Electrical installation 1,236,330.00
9 Sanitary installation 1,151,022.00
Subtotal
6,395,151.17
A+B 9,611,268.18
Vat (15%) 3,541,690.23
Grand total 11,152,958.40

As shown on Table 5, the total cost of building and civil work is estimated at
Birr 10,152,958.40 and out of which the proponent has worked more than
birr 8.6 million.

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.

26
 BUSINESS PLAN FORMIXED USE BUILDING

Table 6: Manpower Requirement and Annual Labor Cost

Position No Qualification Monthly Annual

SN salary salary in
in Birr Birr
1 General manager 1 BA in management 10, 120,0
000 00
2 Building admin 1 BA in Acct/Mgt 8, 96,0
000 00
3 Secretary 1 10+2 in secretariat science 3, 36,0
000 00
4 HRM Officer 1 10+2 in HRM/Management 4, 48,0
000 00
5 Technical and 1 Diploma in building 8, 96,0
maintenance maintenance 000 00
manager
6 Finance head 1 BA in Accounting 6, 72,0
000 00
7 IT Technician 1 Diploma in computer 6, 72,0
science/IT 000 00
8 Marketer 1 Diploma in marketing 5, 60,0
000 00
9 Accountant 1 Diploma in accounting 4, 48,0
000 00
10 Guards/Security 4 Basic 2, 30,0
500 00
11 General Service head 1 Diploma in Management 6, 72,0
000 00
12 Purchaser 1 Diploma in purchasing 3, 42,0
&Sup Mgt 500 00
13 Electrician 1 10+2 in general electricity 4, 48,0
000 00
14 Plumber 1 10+2 in general mechanic 3, 42,0
500 00
15 Casher 1 10+1 in bookkeeping 3, 42,0
500 00
16 Cleaner 5 Unskilled 3, 36,0
000 00
17 Maintenance officer 1 10+2 in General mechanic 3, 42,0
500 00
18 Driver 1 10 completed 2,500 30,0
00
Total 26 86,000 1,032,000

27
 BUSINESS PLAN FORMIXED USE BUILDING

Benefit (20%) 17, 206,4

200 00
Grand Total 103 238,400
,200

5.2.2 Labor Availability

Workers for this type of plant 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 24 months. The major

activities include Bank loan processing construction of the building, cleaning
the area around the building, Procurement of equipment’s and start rendering
services. The time schedule for major activities is presented below:

Table 7: project Implementation schedule

SN Activities Date
1 Preparation Project Proposal May 2020
2 Bank loan processing June-July 2020
3 Site Development July 2020
4 Building and construction work August, 2019-July 2022
5 Preparation for service September, 2022
6 Service execution February, 2022

28
 BUSINESS PLAN FORMIXED USE BUILDING

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.

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

29
 BUSINESS PLAN FORMIXED USE BUILDING

 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.

30
 BUSINESS PLAN FORMIXED USE BUILDING

 Follow the overall status of the business and provide maintenance and
repair services

C. The marketing Department

 Will handle the overall marketing activities of the organization which

include planning, organizing, directing, and controlling.

 Will develop the marketing strategies for future multipurpose building

development

 Will develop effective customer handling strategies.

 Execute the promotion methods.

D. Technical and maintenance manager

 Will handle the overall physical maintenance and related issues

 Will make sure electricity and back up is organized.

 Follow up security issues and educate tenants

 Works in collaboration with general service to make sure tenants are well
served

Owners

General Manager

31
Building Maintenance Marketing
administration Department Department
 BUSINESS PLAN FORMIXED USE BUILDING
Promotion
Personnel
&Property Finance
Officers

5.6 Financial Requirement and Analysis

IT, Supervisors
The financial resource is a prime resource for undertaking any activities. Hence
Electricity
for implementing this mixed use building a total of 15,000,000ETB is
required. From this 30% 4,500,000birr will be covered by the promoter of the
project while the rest 70%(10,500,000) will be covered through loan from bank
at the prevailing interest rate.

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

5.1 fixed Investment

A. Land, Building & Construction
S. Description of works Total Cost in birr
N
1 Building construction 10,152,958.40
2 Site Development 50,000
3 Design and supervision 120,000.00
4 1st Year land lease 422,640
Total 10,745,598.40

B. Building Machineries and Equipments

SN Description Measur Qty Unit cost Total cost in
ement in 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 12 16,000.00 192,000.00
(Security Equipment)
6 Elevator Unit 1 750,000 750,000
Total 1,123,800 1,299,800

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 BUSINESS PLAN FORMIXED USE BUILDING

C. Vehicle
SN Description UOM Qty Unit Cost Total cost in Remark
in Fr. Birr
1 Mini-Bus Unit 1 300,000.00 300,000.00 Duty Free
Total 300,000.00

D. Office Equipment’s
SN Description Measurement Qty Unit cost Total cost
in birr in Birr
1 Managerial tables Unit 1 12,600.00 12,600.00
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 84,009.00 1% of the building
5 Cleaning Supplies 12,000.00 1000 br. Per month
6 Uniforms 12,000.00  
7 Water consumption 5,000.00 2500 m3 by 3.15 br
8 Electric consumption 130,000.00 100,000KWH By Br.1.30
9 Fuel 38,000.00 2000 lit per year by Br.19
11 Telephone & fax 20,000.00 1800 per month
12 Repair expense 72,018.00 2% of building cost
13 Miscellaneous costs 40,000.00 6000 per month
Total 513,027.00  

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 BUSINESS PLAN FORMIXED USE BUILDING

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
1 Land, building & construction 10,000,000 80.39%
2 Building machines & 1,299,800.00 3.77%
Equipments
3 Vehicle 300,000.00 1%
4 Office Equipment 101,800.00 0.29%
5 Total fixed investment cost 10,447,198.0 85.32%
0
6 Salary expense 238,400.00 3.59%
7 Operation Expense 513,027.00 1.49%
8 Pre service Expense 100,000.00 0.29%
9 Total Working capital 731,836.00 2.12%
10 Sub total 4,604,532.00 7.49%
11 Contingency (10%) 460,453.20  
Total initial investment capital 15,000,000  

34
 BUSINESS PLAN FORMIXED USE BUILDING

6 Financial analysis

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

Finishing period 2 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.

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

35
 BUSINESS PLAN FORMIXED USE BUILDING

project:

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

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

6.3 Total Revenue

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

6.4 Discounted Payback Period

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

6.5 Cash flow

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

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.

36
 BUSINESS PLAN FORMIXED USE BUILDING

6.7 Internal Rate of Return

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

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

6.8 Net present value

Net present value (NPV) is defined as the total present (discounted) value of a
time series of cash flows. NPV aggregates cash flows that occur during
different periods of time during the life of a project into a common measuring
unit i.e. present value. It is a standard method for using the time value of
money to asses’ long-term projects. NPV is an indicator of how much value an
investment or project adds to the capital invested. In principle a project is
accepted if the NPV is non-negative. Accordingly, the net present value of the
project at 10% discount rate is found to be Birr24,439,417which is
acceptable.

37
 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
5,240,000 7,164,000 8,180,400 9,298,440 10,528,284 11,881,112 12,369,224 13,006,146 14,806,761 15,787,437
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
350 385 424 466 512 564 620 682 750 825
Rent for shop and office 1-3 floor
2,956,800 3,252,480 3,577,728 3,935,501 4,329,051 4,761,956 5,238,152 5,761,967 6,338,163 6,971,980
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
224 246 271 298 328 361 397 437 480 528
Rent for shop and office 4-7 floor
2,890,800 3,179,880 3,497,868 3,847,655 4,232,420 4,655,662 5,121,229 5,633,351 6,196,687 6,816,355
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
219 241 265 291 321 353 388 427 469 516
Rent for shop and office 8-12 floor 1,980,000 2,217,600 2,439,360 2,439,360 2,683,296 2,683,296 2,951,625 2,951,625 3,246,787 3,246,787
Size 1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price 150 165 182 200 220 242 266 292 322 354
Parking
91,250 100,375 110,413 121,454 133,599 146,959 161,655 177,820 195,602 215,163
Size
1110 1110 1110 1110 1110 1110 1110 1110 1110 1110
unit price
5 5.50 6.05 6.66 7.32 8.05 8.86 9.74 10.72 11.79
Total Sale
17,158,850 18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721

Annex 2. operating cost

38
 BUSINESS PLAN FORMIXED USE BUILDING

Operating years of the project

Description 1 2 3 4 5 6 7 8 9 10
A. Direct cost                
   
Raw Material Cost

513,027   538,678 565,612 593,893 623,588 654,767 687,505 721,881 757,975 795,873
Sub-total
                   
Total Direct cost
                   
B. Indirect cost                    

  Wages and 238,400 1300,320 365,336 433,603 505,283 580,547 659,574 742,553 829,681 921,165
Salary

  Repair and 667,449.00 667,450.00 667,451.00 667,452.00 667,453.00 667,454.00 667,455.00 667,456.00 667,457.00 667,458.00
Maintenance

  Property 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00 4,275.00
Insurance

  Utility 1,188,000 1,247,400 1,309,770 1,375,259 1,444,021 1,516,222 1,592,034 1,671,635 1,755,217 1,842,978
  Land lease 422,640 422,641 422,642 422,643 422,644 422,645 422,646 422,647 422,648 422,649
  Advertising and 50,000.00 50,001.00 50,002.00 50,003.00 50,004.00 50,005.00 50,006.00 50,007.00 50,008.00 50,009.00
Promotion

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

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

                     

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 BUSINESS PLAN FORMIXED USE BUILDING

Annex.3 income statement

Operating years of the project

Description 1 2 3 4 5 6 7 8 9 10
Sales
Revenue 17,158,850 18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
Less: 4,123,791 4,270,766 4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022 5,551,686 5,775,275
Operating
cost
Income 13,035,059 14,643,569 16,380,679 18,055,279 20,145,379 22,184,667 24,705,145 27,191,888 30,232,314 33,262,446
before
Depreciation
and interest

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

Income 12,586,401 14,194,911 15,932,021 17,606,621 19,696,720 21,736,007 24,256,484 26,743,226 29,783,651 32,813,783
before
Depreciation

Less: 0.00 0.00 667,449 667,450 667,451 667,452 667,453 667,454 667,455 667,455
Depreciation

Profit /Loss 12,586,401 14,194,911 15,264,572.00 16,939,171.00 19,029,269.00 21,068,555.00 23,589,031.00 26,075,772.00 29,116,196.00 32,146,328.00
Before Tax
Less: Tax 3,775,920.30 4,258,473.30 4,579,371.60 5,081,751.30 5,708,780.70 6,320,566.50 7,076,709.30 7,822,731.60 8,734,858.80 9,643,898.40
(30%)
Net Profit or 8,810,480.70 9,936,437.70 10,685,200.40 11,857,419.70 13,320,488.30 14,747,988.50 16,512,321.70 18,253,040.40 20,381,337.20 22,502,429.60
Loss After
Tax

Annex. 4 loan disturbance

Installment Periods (in years )

Item 0 1 2 3 4 5 6 7 8 9 10
Loan disbursed                    
10,500,000

40
 BUSINESS PLAN FORMIXED USE BUILDING

Principal       3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218

10,500,000
Interest (13%) 4,486,583 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658 448,658
Total 10,545,111 448,658.00 448,658.00 448,658.00 3,899,876.00 3,899,876 3,899,876 3,899,876 3,899,876 3,899,876 3,899,876
Outstanding                    
Balance

Annex. 5 Man power

SN Position No Qualification Monthly salary in Birr Annual salary 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

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 BUSINESS PLAN FORMIXED USE BUILDING

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     103,200 238,400

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
17,158,850 18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
TOTAL
INFLOWS 0
17,158,850 18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
OUTFLOWS
                     

Investment
cost - - - - - - - -
15,000,000 - -
Operating cost
0 4,123,791 4,270,766 4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022 5,551,686 5,775,275

Income tax
0 3,775,920 4,258,473 4,579,371 5,081,751 5,708,780 6,320,566 7,076,709 7,822,731 8,734,858 9,643,898

TOTAL
8,529,23 12,213,44 13,161,75 14,286,54
OUTFLOWS 15,000,000 7,899,711 9,004,461 9,668,881 10,470,051 11,264,885 15,419,173
9 8 3 4

NET CASH 10,385,096.0 17,628,436.0 19,369,157.0 21,497,456.0

FLOW 10,850,695.00 9,259,139.00 11,801,308.00 12,973,528.00 14,436,599.00 15,864,101.00 23,618,548.00
0 0 0 0

      NET PRESENT VALUE (NPV) 244,439,417.00

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 BUSINESS PLAN FORMIXED USE BUILDING

      INTERNAL RATE OF RETURN (IRR) 34.13%

      DISCOUNTED PAYBACK PERIOD (DPBP) 3.9years

Annex 7 undiscounted cash flow

Project Years
Description Investment Year Operating years

0 1 2 3 4 5 6 7 8 9 10
INFLFOWS                      
Inflow Funds                      
Own Equity
4,500,000                  
Long-term Loan 0 0                
10,500,000
Inflow Operations
 
17,158,850 18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
Sales revenue
0
17,158,850 18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
TOTAL INFLOWS
15,000,000 17,158,850 18,914,335 20,805,769 22,642,409 24,906,650 27,128,986 29,841,884 32,530,910 35,784,000 39,037,721
OUTFLOWS                      
Investment cost 0 0 0 0 0 0 0 0 0 0
15,000,000
Operating cost 0 4,123,791 4,270,766 4,425,090 4,587,130 4,761,271 4,944,319 5,136,739 5,339,022 551,686 5,775,275
Financing Cost                      
· Principal 0 0 0 0 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218 3,451,218

·Interest 0 448,65 448,65 448,658 448,65 448,65 448,658 448,658 448,658 448,658 448,658

43
 BUSINESS PLAN FORMIXED USE BUILDING

8 8 8 8
Income Tax 3,775,92
0 4,258,473 4,579,371 5,081,751 5,708,780 6,320,566 7,076,709 7,822,731 8,734,858 9,643,898
0
TOTAL
8,348,369 8,977,897 9,453,119 13,568,757 14,369,927 15,164,761 16,113,324 17,061,629 13,186,420 19,319,049
OUTFLOWS 15,000,000
NET CASH FLOW 0 8,810,481 9,936,438 11,352,650 9,073,652 10,536,723 11,964,225 13,728,560 15,469,281 22,597,580 19,718,672
BEGINNING
0 0 8,810,481 18,746,919 30,099,569 39,173,221 49,709,944 61,674,169 75,402,729 90,872,010 113,469,590
CASH BALANCE
ENDING CASH
0 8,810,481 18,746,919 30,099,569 39,173,221 49,709,944 61,674,169 75,402,729 90,872,010 113,469,590 133,188,262
BALANCE

Annex. 8 Civil works

No Description
Total price
  A.    SUB-STRACTURE  
1 excavation and earth works
279,570.67
2 concrete work 1,936,546.34
  Sub total
1,216,117.01
  B.     SUPER STRACTURE
 
1 Concrete work
2,753,358.45
2 Block work
551,534.40
3 Roofing
171,108.00
4 Carpentry and joinery
323,760.00
5 Metal works 820,860.00
6 Finishing
1,111,379.44
7 Painting
275,798.88
8 Electrical installation
236,330.00
9 Sanitary installation
1,151,022.00
  Subtotal
8,395,151.17
  A+B
14,611,268.18
  Vat (15%) 541,690.23

44
 BUSINESS PLAN FORMIXED USE BUILDING

  Grand total
10,152,958.40

45