For Project proposal

International School
Project to be implemented in
Shager Koye Fache sub-city

Promoter; Zena Dori Delecha

August, 2023
Shager city, Ethiopia

Executive summary
1 Project name International School
2 Project owner Zena Diri Delocha
1
3 Nationality
4 Project location
5 Project Composition
6 Premises required
7 Total initial investment
capital
8 Employment
opportunity
Ethiopia
Shager Koye sub-city
Teaching different Grade level of students
(From Kg grade to 12 grade)
11,342 M2
Eth. Birr 63,000,000from this amount
30%(19,000,000) financed by the owner equity
and 70%( 43,000,000) financed by the bank
loan
The total man power required for the plant will
be 162 employs
 Permanent workers 162
 Skilled 158
 Un skilled 4

9 Technology Technology used for Education such as

Computer, Tv, Toy and other material
10 Give better quality education, source of revenue,
Benefits of the factory employment opportunity, benefit for the local
for the city community, and stimulate the local economy
administration /country and technology transfer.

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1. INTRODUCTION
The present fast and double digit economic growth of Ethiopia especially demands an equivalent
growth in service sector. The sector should expand rapidly to support the overall economic
development sustainably.

The County Council believes the best way to meet the demand for places for pupils from the
Fields development is to build a new 210- place Academy on the site we believe that learners
come first. We want our children and young people to enjoy learning, make good progress, and
achieve high standards. To do this, we need to ensure that best schools offer first class facilities,
and have sufficient places available, so as to offer real choice, good access, and the best
environment in which to learn. This is in keeping with our statutory duty and strategic priorities
to develop additional school places. Put simply we want to ensure that our schools are amongst
the best available and offer the right number of places at the time they are needed.
As part of our strategic vision, we have identified a need for International school places to serve
the Koye sub-city.
. The County Council believes the best way to meet this emerging demand for places is to
develop a new International Academy.
It is expected that the new school will open in September 2011. Details of the arrangements for
pupil admission will be agreed with the successful Academy Proposer and will be undertaken in
such a way as to not have a detrimental impact on other primary schools in the area.
The new school will also incorporate recreation facilities to be made available to the local
community. The school and recreation facilities will be designed by the County Council and
built on land located within the Koye sub-city. The school will be wholly funded by the County
Council using a combination of contributions from the housing developers (Section 106) and
other capital resources. An allocation for start-up and post opening revenue costs for the new
school will be agreed with the successful Academy Proposer in accordance with the County
Council’s policy on school growth. Further details of which may be found herein.
The County Council is not aware of any independent applications to run a Free School in the
locality.
This document sets out in further detail for Academy Proposers and other interested parties; why
we believe a new school will provide the best solution to improve choice, diversity and standards
for our children and young people, where it will be located, how this will be funded, how we
expect this to be run, and the process and timeline that we intend to follow. Please take time to

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read this information carefully, and make contact using the details provided should you require
any further information or guidance.
1.1 Background
Why the additional primary places are necessary in Koye sub-city The Education places a
statutory duty on the County Council to ensure that there is a strong supply of good school places
available to meet demand. The County Council has set out how it will meet the emerging
demand for school places in its strategic plan ‘In the Right Place- Strategy for School and Other
Educational Places which may be accessed via the following. The demand for additional places
arises as a result of the new homes being built on the School Fields development in Koye sub-
city. Analysis of the above factors shows that an additional 13 primary school places will be
required by September 2011, with demand steadily increasing in the following years. Current
arrangements The Koye sub-city area is served by different primary schools,
Riverside Primary School and High school. Both schools form a part of the Multi Academy
Trust. At present, both schools have distinct catchment areas. The table below shows the current
number on roll at each school. School Admission number Net capacity Current number on roll
High School Riverside Primary School Providing a new primary Academy would help relieve
the pressure on the other schools emerging from the housing development whilst providing for
parents and pupils greater choice. A new school would also offer the opportunity to improve
education generally by strengthening local partnerships and collaborative working, and bringing
new expertise and knowledge to the area. About the development An education Fields
development is on an area of land to the Oromia situated just off the A Lough borough Road. On
completion the development will comprise of different dwellings, a business park, fire station,
primary school and recreation centre and a local centre for retail and community uses.
A Section agreement was entered into on the March 2010 which secured various contributions
towards on-site facilities and off-site works. Contained within the agreement is the requirement
to provide a new primary school and recreation centre. Currently approximately 680 dwellings
are occupied on the site. The site for the new school and the location of the existing schools in
Koye sub-city are shown on the Specification area.
The government of Ethiopian has been implementing the five years growth and transformation
development plan which is promised to bring prosperity and development to its citizens with
collaboration with privet sector investment action; moreover, it has a conducive and favorable
investment police and guidelines for private sectors.

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Hence; the market potential for the envisioned business and favorable government policies for
private investor are taken as major project justification by the promoters to establish the
envisioned Education sector with best and new technology in Koye sub-city.

PROJECT JUSTIFICATION

Education is the best investment for the people because well educated people have more
opportunities to get a job which gives them satisfaction. Educated individuals enjoy respect
among their colleagues and they can effectively contribute to the development of their country
and society by inventing new devices and discoveries. Good People sacrifices their time and
money and sometimes even their health to raise educational level because they realize that
education is their passport to the future and for tomorrow.

Therefore, this project proposal is prepared to fill the gap seen in this town by building
Kindergarten and Primary School that will contain 7 class rooms and other blocks will be used
for the purpose of office, class, pedagogy center, library, and toilet

PURPOSE OF THE DOCUMENT

This particular pre-feasibility comes under the ‘Education’ sector, a sub-sector of the ‘Service’ division
and is in regard to setting up a “High School” in any big city of Ethiopia

The objective of this pre-feasibility study is primarily to provide an overview of the high school business.
This project pre-feasibility may form the basis of an important investment decision and in order to serve
this objective, the document covers various aspects of the business concept development, start-up,
marketing, finance and business management

5 Project Activities
The major activities of the project will be;
 To own the required plots at fair lease cost to support education.
 To build structures like classrooms, workshops, libraries, offices,
laboratories, play grounds, etc.
 To enhance the school and institute up to high school level
 To offer students with complete life changing skills
 To provide opportunities to them to become self-supporting members of
the society and to make students to become society builders
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  To maintain norms and values of the society in the school and among the
students
 Arrange tutorial sessions to children who are performing less in their
academic status to help them improve
 Help students to acquire different vocational skills as per their interest so
that they will be self- supportive and productive
 Monitor and follow up academic status of children/students and take
corrective actions to help them improve their performance.
 To create genuine and creative minded generation
 To introduce modern teaching and learning
 To teach children in their mother tongue
 To maintain the diversity of Ethiopian nations and nationalities in the
school as it is in the real Ethiopia.
 To exhaust a benefit that a country should get from youngsters at their
school age through different competitive stages and creativity researches.

3.6 Management
The overall project management will be carried out by the company's
management who have gained reasonable experience and relevant
qualifications. Subordinates and permanent workers will involve in various
activities to smoothly and safely handle the projects; Rooms, office
equipment’s, stationary, and other basic supplies will be provided to the
management body. All activities will be properly recorded, kept and financial
matters will be managed by professionals.

3.7 Project cost

The cost of the project is directly associated to construction of buildings for
teaching and learning purpose and furnishing basic facilities in these buildings
and also in the schools' compounds. Besides, certain implementation and
running costs are also articulated.

3.8 Project Duration

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The project purpose is to continually serve school age children and it is a
continues process that refine and update its area of focus to reach more
children and serve the society at large. However, the project will yearly renew
its certificate to comply to the legal frameworks of the country. Thus, as part of
the long-term plan, this proposal has been drafted in such a way that the
content and application will be refined as per the need of the situation of
business transactions.

1.2 Objective of the project

The projects are out to after quality living standard and indications to the school children and
equip the community with the correct doctrine such as;-

 To construct enough class room for learning purpose.

 To provide quality education for all.
 To implement the correct government educational policy and strategy.
 To generate creative and responsible generation.
 To teach a proper know ledge.
 To shape the children as role model.
 To improve the attitude of the community regarding to the quality education

CRUCIAL FACTORS & STEPS IN DECISION MAKING

1-1 SWOT analysis

Strengths
 Low student-teacher ratio
 Recognized by the BISE
 English as a medium of instruction
 Affordable to middle income group
 Accessible location
 Well-trained and qualified teaching staff
 Up-to-date and extensive curriculum
 Well maintained order and discipline

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  Environment conducive to joyful learning
 Adequate security measures
 Availability of adequate and modern facilities
 Contribution to societal development
Weakness

 Time required for gaining recognition in the society

 Higher rental cost for accessible locations
 Insufficient area for playing fields to practice sports such as cricket, hockey
etc.
Opportunities

 Overall increase in demand, linked with the growing population.

 Government incentives and policies conducive for private investment in
education sector
 Gap between number of school going age children and actual enrolments in
schools
 Growing general public awareness (especially in urban areas) about
importance of quality education
 Limited access to affordable, quality education.
 Minimal budget allocation by government to education sector
 Limited number of government/public schools
 Poor facilities in government schools

Threats

 New entrants can easily share the business

 Difficulty in retaining qualified teachers
Revival of public/government schools in the future through effective government
policies and regulations

1.3 The Economic significance of the project

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The envisaged project deemed to contribute to the economic development of the nation in
general and the city in specific with following ways;

A. Supply quality Education

The school will produce quality and affordable student through this it will serve its customers

B. Source of Revenue
As public policy of any nation, the government collects different forms of taxes from different
business organization and individual. Among the different forms of taxes, business income taxes.
VAT and payroll taxes are collected from undertaking business activities. Therefore, the factory
will serve as sources of revenue for both the city and nation in general.

C. 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 factory will hire around 142 persons.

D. Benefit for the local community

As a corporate responsibility the company will engage in different development activities on the
surrounding areas. This will better worth the community and contribute for the development of
the cities.

E. Stimulate the local and National Economy

The Schools has positive externality in the zone that will encourage the economic movement of
local economy relationship and transaction among different actors.

F. Technology Transfer
By implementation modern and new technology in schools, the project will transfer knowledge
to innovation of the nation. Technology used for research of science and technology is being
consider for the school.

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2. Location and Premises required

2.1Location
The envisioned project is planned to be located in Oromia regional State Shager Koye sub-city,
the main justification behind the selection of this location are:

 Strategically located to the central and largest market of nation

 Relatively advanced development in infrastructure (power, water, Telephone
internet, road etc.
 All road to the nearest market outlets
 Accessibility of skilled labor force
 Conducive investment policy and governance
 Environmentally fit to Education.
 Premises required

The total land holding of the project is 11342 m2 the premises required planned as follows in
table below

B Land use plan

The factor plant has already acquired a total of 11342 hectares, which is equivalent to 11342m2
areas of land. This land planned to use as follow indicated in table below

Table premises required and use plan

Table, Premises required and land Use plan

SN Description Land requirement (M2)

Production Hall

1 Educational class room 5000

2 ICT Room 650

3 Office 200

4 Staff Room 292

5 Guest Room 200

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6 Library 300

7 Pedagogical center 200

8 Hall Room 800

9 Toilet 200

10 Story 200

11 Clinic 300

12 Playing flied 3000

13 Total 11342

111 M2 *103.05 M2

Office
10 Library
Class Room

ICT Room
Guest House

Pedagogical
Staff Hall Room center Toilet

Story

Playing field

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 103.05 M2

2.2 Service description and application

creative play, social interaction and natural expression play is a significant aspect of a school
employing games ,songs ,specially chosen work materials and stories to address the need of
children .it is aimed at growing children in free atmosphere for home .accordingly it is some
times called ‘’children garden’’ .it service as a transitional stage from home to the more formal
schooling the followed. In class they are introduced to the alphabet , numbers and colors, they
study their bodies ,their families and their communities, they listen to stories read aloud; they
make art projects ,the y participate in skits and dramatic production and they learn about
holiday ,plants ,animals, and other topics in science and social studies .some kindergartens also
teach introductory reading and mathematical skills .

2.2.1 Recreational Facilities

The new primary school will also include a co-located recreation centre. It is expected that the
facilities will include a community room, changing rooms, kitchen, store room and a football and
cricket ICT room. The operational arrangements for running the recreation facility have yet to be
agreed, as such there will be an opportunity for the Academy to assist in shaping the
management arrangements for the facility, and to run these in due course.
Age Range
The school is intended to serve pupils between the ages of 4 and above. At present there are no
plans to incorporate early years’ provision on the site, although the County Council would
welcome proposals from Academy Proposers about how this might be achieved.
Gender
The school will be for both boys and girls. Admission Criteria The County Council requires that
Academy Proposers will abide by the Codes of Practice on Admissions and Admission Appeals,
and participate in the County Council’s co-ordinated scheme for admissions and, our Fair Access

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Protocol. The County Council expects Academy Proposers to adopt the same admission criteria
used to determine priority for places as in other local schools as set out in the following
Catchment Area New catchment arrangements for the school will be determined with the
Academy Proposer in conjunction with the two local primary schools. Equality and Diversity
All potential Academy Proposers are required to demonstrate their commitment to inclusion, to
promoting equality and diversity and to eliminating unlawful discrimination and harassment.
Equality and Human Rights Impact Assessment (EHRIA)An initial EHRIA undertaken by the
County Council shows that no particular individuals or groups will be disadvantaged by the
proposals for the new school. The new school will not have any specific specialist resourced
provision for pupils with special education needs. The Academy will nevertheless be expected to
serve children with special educational needs in its catchment area for whom mainstream
education is considered appropriate and to work with other providers and services in meeting the
needs of pupils with special educational needs and disabilities. Extended Services The County
Council expects the Academy sponsor to collaborate and engage with other providers and local
partners to develop extended services which meet the needs of local children, young people and
families in a coordinated, holistic way which can be accessed through all the partners in the
locality. These services may include: access to high quality childcare, out of hours learning
activities and clubs,
parenting support and community access to appropriate facilities. Academy Proposers are asked
to provide evidence in their application of their commitment towards the development o
fextended provision at the new school. Home to School Transport The Council will expect the
Academy Proposer to encourage safe and sustainable travel to the new school, including walking
and cycling, and to develop a comprehensive travel plan to support this. Home to school
transport will only be provided, therefore, in line with the Local Authority’s Home to
School/College Transport policy i.e. when it is stipulated within a child’s statement of Special
Educational Need, or a child has an identified medical need which prevents them from walking
or cycling to school and/or the distance from the child’s home to the school is beyond the
statutory walking distance of 2 miles measured by straight line distance or where it is the child’s
designated school. Funding Arrangements As this new school will be an Academy, the
successful Academy Proposer will need to enter into a revenue funding agreement with the
Secretary of State for Education, for the operation of the school, to be effective from the date of
the school’s opening. As this will be an Academy established to meet basic need, the County

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Council will be responsible for funding an amount to support pre-opening revenue costs and
post-opening diseconomies. The new school will be funded on the basis of estimated pupil
numbers in accordance with The Schools and Early Years Finance Regulations. The new school
will be a recoupment Academy and the annual revenue budget will replicate the County
Council’s formula for funding schools, subject to protection and additional payments in
accordance with the budget policy for academies operated by the Education Funding Agency.
Academy Proposers wishing to express an interest in the new primary school should do so by
completing the application form available online. Please ensure that you complete the
Application Form as fully as possible, providing an electronic copy and posting also a full hard
copy and short executive summary (maximum two sides A4) to the address provided for
submission. Your application should be accompanied by the appropriate signed Form of
Proposal and declarations detailed on the Application Form. Please note that the closing date and
time for receipt of completed applications Having invited Expressions of Interest from
Academy Proposers, detailed evaluation will be undertaken in accordance with the assessment
criteria provided within this document, and the accompanying application form. A two stage
process will be followed to determine the County Council’s preferred Academy sponsor for the
new school, comprising of the initial written application, and followed by a presentation and
interview by shortlisted Proposers, and if necessary a visit to an existing similar Academy that
they currently operate. Each stage of the application process will be allocated a score, and for
those Academy Proposers shortlisted to the second stage, the total scores for each stage will be
aggregated to determine an overall evaluation mark to determine a preferred sponsor. Further
details of the scoring methodology to be used to evaluation are provided within the
accompanying Application Form.This will enable consideration by the County Council Cabinet
of a preferred provider.Subject to the Cabinet’s consideration, a submission will bemade to the
Regional School Commissioner (RSC), who is acting on behalf of Secretary of State for
Education, which will include all proposals received, with the Local Authority’s assessment of
these to assist the RSC in her decision.The RSC will carefully consider the County Council’s
submission and assuming their agreement, she will then make a recommendation to the Secretary
of State for Education who will make the final decision.Once a decision has been made, the
County Council will work closely with the chosen provider and the DfE (through the Education
Funding Agency) to conclude the development and operational details of the new school.

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2.3 Market study and service capacity

2.3.1 Market study

Current number of schools and type of operators.

Current education service providers in the city are many and varied including government,
private sectors , local communities ,foreign, NGO, Church ,Mosques, and missionaries school.

As can be seen from table below the private sector is dominant sector in the ownership of

This International school in the city level. Next to private sector is communities owning and
operating. the role of government is extremely acts. Owning the school facilities in the city. It
should be noted also that there are no private schools(1-12)by foreign communities.

Number of schools in Koye sub-city by type of ownership 2007---2009EC.

Ownership No of school

Preschool/KG Primary school[1---8] High school(9-12)

Government

Public

Private

NGO

Church

Missionary

Mosque

Foreign community

Total

The basic reason for the dominance of private sector in KG and primary schools are that ;

15
The government policy focuses on providing basic education for all and accordingly and the
government not much investigating in kg.

Comparatively kg school, which attracts the private investors with weak financial capacity than
primary school .

Current enrollment level

School enrollment ratio is one vital indicators that measures performance in education sector.

Enrollment at primary level in the city is still very low.

Project demand

The demand level for schools from primary level for the coming ten year estimated is based on
the standards established by the ministry of education and the population growth rate

Fee

Service fee depends on quality and types of service offered at this school.

Currently the monthly service changes per children vary from birr 350---600 per month.

Service capacity and program

service program

the project is envisaged to operate for 8 hours per days in a year on a single shift basis.

The plant will operate at 75%and 85% of its full capacity in the first ,second and third years
respectively and reaching 100% of its full capacity in the forth year of operation.

Material and input

Raw material

The major raw material required for the envisaged service are sanitary materials .most of the raw
materials and inputs required for running of Abdi Boru are locally available .the estimated
annual raw and auxiliary materials cost at full capacity is about Birr 36,000.

Source of technology/machinery

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The list of machinery ,and equipment is child education such as Toy , TV, and Video
set ,chairs and tables, black boards ,slid, computer , printer , playing equipment, libratory
chemicals and others.

3. Market Prospects
From the above market study for education, there exists educational quality gab in terms of
government and Private as well as NGO in Ethiopian market. Hence, the envisioned education
will be successful by entering in to this market.

3.1.1. Marketing Strategy and Promotion

The company will follow the following promotion methods

 Electronic Medias
 Advertising (Medias, flayer and news paper)
 Public Relation
 Branding

The marketing strategy mainly focus on the satisfying the needs and the requirement of the
customers and to be efficient in production and delivery of the products

3.1.2. Target Customers

The company targeted different customers mainly the business organization, educational
organizational, government bureaus and non-government bureau

4. Manpower and Organizational Management

4.1. Manpower
At the top of the organization structure, there will be a general manager with the responsibility of
supervising the overall activity of the factory, Depending up on the nature of the center and the
amount of work to be performs; there will be auxiliary units the general manager. Employees
under each unit will be supervised by unit head that is accountable for the general manager.

17
The company will use efficient trained staffs in the area of marketing to be competitive supplier
of printed materials. The opportunities of begin serviced by well skilled professionals well
enable the company to evaluate the internal weakness and strength of the company as well as to
assess the global opportunity and risk in the world market so that the company can cope up with
the dynamics of the market situation. The company will hire a total of 162 employees. Out of
this 162 permanent workers (158 skilled and 4 unskilled) The detail human power required,
monthly and yearly salary is indicated in part 5 financial part.

4.2. Organizational Structure 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 general
manager with the responsibility of supervising the overall activity of the plant. Employees under
each unit will be supervised by the department head that is accountable for the general manager.
General Manager is accountable to the owner of the factory as indicated in figure below.

Fig. Organizational Structure

Project organization
Owner/s

Manager

Secretary General Manager

Director

Production Dept. Admin.and Finance Dept. Marketing & Sales Dept.

Vice Director
School Administration

Secretary Record Office Library

Unit leader
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 Department

Staff Guard Store Keeper

Project Design Cycle

Project Implementation
Find Evaluation

Project Budget Situation

Analysis
Project design Cycle

Plan Assessment of An
organizational

Project Design &Planning frame work

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Hence the following section deals with the duties and responsibilities of some departments.

1. Manager
Duties and Responsibilities
She/he will plan, organize, direct and control the overall activities of the School.
She/he will devise policies and strategies that will enable the School to be
profitable.
She/he will incorporate modern technology innovation that will facilitate the service
delivery of the project center and increase customer’s satisfaction.
She/he will plan, organize, direct and control the human and non-human resources
of the factory so as to achieve the short and long run objectives of the organization.

2. Director
Duties and Responsibilities
It’s the core department of the project center with the following responsibilities.
Design and prepared plan based on the plant standard of education ministry.
Use modern manufacture, processing technology that will enhance the quality of
education..
Control on the quality of education inputs product and also the overall teaching
learning process..
Moreover control over the quality of the education.
3. Administration and Finance Department
Duties and Responsibilities
Will plan, organize direct and control the financial transaction of the factory by
using the entire necessary document.

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 Will develop sound financial control system by developing modern financial
control system.
Manage and execute the company national and international procurement
production.
Administer and control the company logistic resource.
Provide and manage general supportive service to the factory.
Will prepare the annual financial statement and prepare condensed reports for the
general manager. Owner and other concerned body.

4. Marketing and Sales Department

Duties and Responsibilities
Will handle the overall marketing activities of the organization which including
planning, organizing, directing and controlling.
Gather information on new products, designs, fashions, profiles etc.
Approval of new products profile and brand plan analyzes market research.
Plan and execute sales.
Will develop effective customer handling strategies.

5. Financial Requirement and Analysis

5.1. Total Initial Investment Cost

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The total amount of money that is required to establish the envisaged factory is estimated to be
birr 39,905,199.00

Table, Total Initial Investment Capital

SN Description Cost in birr

1 Land, Building & Constriction 46,243,000.00

3 Vehicles 4,050,000
4 Office Equipment 3,715,000.00
5 Initial Working capital 4,101,636.00

6 Pre service Expense 341,000

7 Contingency (10%) 5,454,563
Total Initial Investments Cost 5795563

5.1.1. Fixed Investment

A. Building & Construction

Description Land Requirement Unit Cost in Birr Total Cost in Birr

(M2 )
Educational class room 5000 3500 9,800,000

ICT Room 650 2500 4,750,000.00

Office 200 2540 1,550,500.00

Staff Room 292 334 100,000.00

Guest Room 200 150 52,500.00

Library 300 180,000.00

Pedagogical center 200 60,000.00

Hall Room 800 750,000.00

Toilet 200 3,000,000.00

Story 200 2000,000

Clinic 300 2,500,000

Playing flied 3000 1,500,000

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 Total 11342 26,243,000.00

B. Vesicle

SN Description Qty Unit Cost in Total Cost Remark

Birr in Birr
1 Student service 3 500,000.00 1,500,000.00 Duty free
2 Worker Service bus 1 1,200,000.00 1,200,000.00 Duty free
3 Mini Bus 1 650,000.00 650,000.00 Duty free
4 Other Vehicles 2 350,000.00 700,000.00 Duty free
Total 5 4,050,000.00

C. Office Equipments

SN Description Qty Unit Cost in Total Cost in

Birr Birr
1 Managerial Tables With Chair 5 15,500.00 77,500.00
2 Secretarial Chair With Table 1 5,500.00 5,500.00
3 Office tables 15 5,000.00 75,000.00
4 Office Chair 25 3,500.00 87,500.00
5 Computer With its accessories 10 15,000.00 150,000.00
6 Printer 5 5,000.00 25,000.00
7 Shelf 1 7,500.00 7,5000.00
8 Filing Cabinets 2 5,000.00 10,000.00
9 Telephone and Fax machine 1 2,000.00 2,000.00
10 Curtain and Carpet LS 200,000.00
11 Other Misc. Office Equip. LS 75,000.00
Total 715,000.00

D. Initial Working Capital

The initial working capital is estimated to be birr.3, 101,636.00

E. Pre-Service Expense

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 SN Description Cost in Birr
1 Project Proposal 15,000.00
3 Promotion and Advertisement 200,000.00
4 Worker Capacity Building 100,000.00
5 Licensing Fee and Other 1,000.00
316,000.00

5.1.2. Project Action Plan

The projects implementation is expected to take 2 year. The major activities include Construction
o the building, cleaning the area around the building, procurement of equipment and start
rendering service. The time schedule for the above mentioned majored activities is presented
below;

Table project-implementation

SN Activity Date
1 Land Approval April 2023
2 Site Development May 2023
4 Building and Construction June,2023- Fab,2024
5 Registration May ,2024
6 Class proogram February 2024

5.2. Annual Production Cost at Full Capacity

1. Raw Materials and Inputs

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The total amount of raw materials and inputs estimated to be br.11, 353,495.6 at full capacity of
operation. It is based on ration output analysis, which is 50% of the direct raw materials out of
the buying price. These materials including the domestic.

2. Salary Expense

No position Qualification Required salary

Monthly Annually
1 Director Degree 1 5000 60000
2 Vice director Degree 1 4500 54000
34 Accountant Level IV 1 2500 30000
4 Nursery Level IV 3 1500x3 54000
5 General service Level IV 1 1500 18000
6 Secretary Level IV 1 1500 18000
7 Driver Level III 5 1200 72000

8 Teachers Degree 100 5000x 6000000

9 Assistance teacher Diploma 50 3000 1800000
10 Guard Grade 8 1 500 6000
11 cleaners Grade 8 2 650x2 15600
Total 162 8070000

3. Other Operating Expenses

SN Description Annual Cost in Assumption used
brii
1 Property insurance 249,210.00 1% of fixed investment cost
2 Audit & Legal Fee 24,000.00 2000 per month
3 Uniforms 20,000.00 100*200 per month
4 Telephone 12,600.00 1050 per month
5 Cleaning goods supplies 12,000.00 1000 per month
6 Repair and maintenance 623,025.00 2.5% of the Fixed cost
7 Advertisement 250,000.00 % of sales
8 Stationery and other office 10,800.00 900 per month
supplies
9 Electricity 52,500.00 0.75*70,000KW per year
10 Water 5,000.00 1.5*2500m3 per year
11 Fuel 180,000.00 9000 lit*2 br per year

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 12 Oil and lubricant 18,000.00 10%of fuel cost
13 Miscellaneous Expense 60,000.00 5000 per month

Total 1,517,135.00

5.3. Financial Analysis and Statements

5.3.1. Underlying Assumption

The financial analysis of the envisioned factory is based on the data provided in the preceding
sections and the following assumptions

A. Constriction and Finance

Constriction Period 2 years
Source of Finance 30% equity and 70%
loan
Bank Interest rate 10%
Load Repayment 10 year
Tax holding 2 year
Operating Costs Increase by 5% after 3 year
Raw Material and Wage increase by 5% after 3 year
Salary and Wage increase by 5% after 3 year

B. Deprecation
Building 5%
Machinery and Equipment 10%
Office Furniture 10%
Vehicles 20%

C. Working Capital
Accounts receivable 30 days
Raw material local 30 days
Work in Progress 5 days

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 Finished products 30 days
Cash in hand 5 days
Accounts payable 30 days

5.3.2. Sources of Fund

SN Description %Share Amount (in Birr)

1 Owners Share 30 19,000,000
2 Bank loan 70 43,000,000
Total 100 63,000,000

5.3.3. Depreciation Schedule

SN Description Original Value in Depreciation Depreciation per
Birr rate in % year
1 Construction and Building 26,243,000.00 5 1,312,150
3 Vehicle 4,050,000 10 405,000
4 Office Equipment 715,000.00 20 143,000
Total 51,103,000.00 1,860,150

5.3.4. Balance Sheet

Asset
Current Asset Value in Birr
Cash 3,177,364
Inventor of raw materials and inputs 3,101,636
Total Current Asset 6,27,000.00
Fixed Asset
Land, Building and Construction 46,243,000.00
Office Equipment 715,000
Vehicles 4,050,000
Total Fixed Asset 43,000,000
Total Asset 39,905,199.00

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 Liability
Account Payable 43,000,000
Owners Equity
Capital 19,000,000
Total Liability and Owner’s Equity 59,905,199.00

5.3.5. Profitability

According to the projected income statement, the project will start generation profit in the 1 st
year of operation. Important ratios such as profit to total sale, net profit to equity |(return on
Equity) and net profit pulse interest on total investment (return on total investment) show an
increasing trend during the life time of the project.

The income statement and the other indicators of profitability show that the project is viable.

5.3.6. Pay-Back period

The investment cost and income statement projection are used to project the pay-back period.
The project’s initial investment will be fully recovered with in 6.1 year of operation.

6. Future Development

Every busine.ss under taking is it large or small should have future development plan. It is a
plain fact that business activates are undertook in a dynamic business nature and different
environment. Therefore, the factory will have an expansion phase depending on the condition of
the industry character particularity in producing the profile itself installing the plant, in this
regard; the factory will expand its capacity to produce new paper in the future.

7. ENVIROMENTAL IMPACT OF THE PROJECT

7.1. Socio-Economic Environment

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The promoter will provide the land on lease, and all required compensation will be paid for the
project. The livelihood of the local peoples around the project area is skilled people of various
occupation and economic background.

7.2. Environmental Impact Assessment of the project

Current the issue of environment and envelopment get due emphasis and thus every citizen
called expert their maximum effort for fighting against any negative impacts on the environment
so as to result in a win-win solution on common agenda that is creating environmental friendly
business environment. The project has some no impact on the environment and the independent
EIA report is required.

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