Name of License: Sibhat Yonas

Project Feasibility study Document for

Granite Block Mining
In Harawe area, of Harari Regional
state
Document Submitted to: Harari
Regional State, Investment ,Mines and
Energy Office
Introduction

Construction and industrial Materials are essential for economic development. Ethiopia is richly
endowed with these mineral resources. The attention given to the development of such minerals is
very limited despite of their decisive role in industrialization process. The investment can be seen from
this point of view and its realization can encourage the development of other similar resource found
elsewhere in the region as well as in the nation presenting. In our country, the number and type of
factories that require industrial mineral and rock row materials to produce different finished products
have been increased significantly in number and kind. `

In addition, the economic development of any country solely depends on the magnitude of
industrialization, which in turn, depend on the type and magnitude of industrial raw material used and
its final processed products. In is very obvious that mineral raw materials are the most dominate
industrial raw materials in industrialization process.

Despite the fact that the potential of industrial minerals and rock raw materials is found inconsiderable
size and type in different part of the country, the domestic supply problem of this natural resource is
becoming acute, hence has forced the situation to depend exclusively on import activities.
Nevertheless, this resource can be developed with simple technology, methods and relatively with less
amount of investment input. In this regard, the role of private sector is expected to be of the leading
rank in the development process.

Objective
The main objective of this mining project is to mine and process the granite body for decorative
dimension stone. At present, the market demand for the stone at local and abroad is very high. Because
of this, “Granite and Marble Company’ ’presents this proposal with the main objective of
developing and quarrying the granite with subsequent processing and polishing of the stone to any
acceptable standard size for sale abroad and in the country. Its implementation will also benefit the
employee, the consumer society and the government. In this respect the project is aimed to promote
the following objectives:-

 To promote industrially processed granite and supply the produces to the market at competitive prices.

 To provide direct and indirect employment to a large segment of the population.

 To create job opportunity for work less organized youths.

 Facilitate the transfer of modern technologies and lay bases for the nation’s manufacturing sector
development.

 Effectively use local inputs and strengthening the linkage between industries and other sectors of the
economy.

 Save foreign currency drain by substituting imports and generate foreign currency by promoting exports.
  Increase government revenue through the different forms of taxes. Which in turn used to facilitate social and
economic development.

Geographic Setting

Location

The license area is located in Harari regional state East of Harar town. specifically the area is named as
Harawe PA. It is about 10km from Harar town to Harawe PA and with an aerial coverage of 50,000m2

 The geographic coordinates of the project sites are described in a table as shown below.

Corner Longitude Latitude

A 90 15’52.63 ”N 420 12’03.45”E

B 90 15’54.26” N 420 12’07.96” E

C 90 16’02.65” N 420 12’02.99” E

D 90 16’00.13” N 420 11’57.09” E

The reasons of selecting the location for the proposed project are attributed to:-
 Its proximity to the raw material supply sources of Granite Migmatite and Gneiss minerals in the
region.
 Its proximity to services and facilities like road and transport facilities
 The existing conductive social and investment situations and increase number of private
investment.
 Its accessibility and ease of future development are some of the reasons behind selecting the area
for the proposed project.

Accessibility
The quarry site can be reach by the main asphalted road that runs from Addis Ababa to Jigjiga. The
area is found at the right side of the main asphalted road that runs from Harar to Harewe. So it is
accessible.

Physiography

Most part of Eastern Harerghe Zone is known for its mountains and rough topography.
 The Harewe district also shows such pronounced contract in topography and some parts of the area
is characterized by small mountains and vallies . In addition, the deposit area and the surroundings
lie in altitude of below 2,000m above the sea level.

Climate

The climate of the quarry site is almost Woina – dega type of the Ethiopian classification
characterized by hot temperature.

 The main rain rains from June to August season and the mean annual temperature is
between 150c-300c. In addition the surrounding area gets small amount of rainfall
during the rest of the year.

Socio – Economic condition

The inhabitant of the area are the Oromo people except for few settlers. Afan Oromo is the
language of the inhabitant and the surrounding people totally Muslims. The major cash crops
collected from the irrigated farms are Maize and sorghum.

Infrastructural Development

The village had a Health Post and elementary school to party satisfies their demand in health &
education. The area is a suitable for industrialization due to road access that runs from Harar to
Jigjiga on the highway and potential of construction and industrial materials.

Demand and Supply Trend

Demand Trend

The future demand for granite, like many other construction materials is a function of a number of
interrelated variables. These variables are essential in determining the magnitude and trend of
demand for construction materials are:-

 The overall economic development level and growth trend of the country.

 The pattern and growth trend of the industrialization process

 Government policies and regulations that have impact on the future level and trend of
industrialization activities. and

 Size of population and its growth rate considering all the above factors future demand
for the products is estimated to grow at a higher rate. Therefore the project under
consideration will have a reliable market prospects both locally and in export markets.

Supply trend
 The country’s requirement for granite is met through domestic production and imports. On the other
hand, the country exports high quality granites to various countries. Therefore. The apparent
consumption of granite is composed of domestic production minus export.

Price consideration

The price of the proposed material is determined based up on the production cost excluding
transport and fuel expenses. At the present condition on site sell price (mouth sale) of 7,000birr/m3
is negotiated between us and the buyer for our products, which is subject to change on the future
prevailing conditions.

Benefits and Beneficiaries

The beneficiary expected from the project activity are firstly the project owner and workless
youths which are organized by government. Then goes to the local people which including them
by daily labor, temporary and permanent worker and it will benefit our country by substituting the
imported construction material products from abroad. The company will also generate an income
tax. Royalty, and turn over tax for the government. Since the area is near the road no much effort
can be expected from the investor.

Social Benefits

The planned manpower of the project amounts are 22. These will create jobs that will contribute to
the reducing of the alarming unemployment growth rate in the country.

The project employees will acquire experiences in mining industry. This is believed to contribute
to the development of mining skills in the country.

Above all, the project will contribute to satisfying the demands of the ever – increasing
construction activities in our country and abroad.

Economic Benefits

The project’s employee which means the organized youths will benefit from the investor based
on the agreement that happened between the investor and the organized youth. While the project
owner and government shall gain profit from sales revenue and royalty and income tax.
Respectively from the project’s revenue. The local community will also get the job opportunity.
The overall benefit goes to the economic development of the country, in general.
1. Regional and Local geology

1.1 Regional Geology

The geological set up of the eastern part of the country comprise the Precambrian metamorphic
complex basement, Mesozoic sediments characterized by marine deposits (Limestone beds
succession) alternating with continental sediment. The Precambrian complex basement rocks of the
region are exposed largely in Eastern part of the region East of Harer Town and extend towards Dire
Dawa covering the area between Qarsa and Dhangago further to the east and to the west, mostly
cropped out in valleys where rivers resulted in deep gorges and wide valleys.

Kazminand other researchers classified the metamorphic complex basement of Ethiopia into three
groups based on metamorphic grade. Age relationship and deformation style. Named them lower,
middle and upper complex.

The lower complex

Consists of metamorphic rocks of high – grade metamorphic faces markedly characterized by high
grade gneisses.

The middle complex

Basement composed characteristically of volcano – sedimentary rocks subjected to regional

metamorphism of green schist to lower amphibole facies.

The upper complex

Basement is characterized by the rock association of volcano – sedimentary origin that underwent low
grade metamorphism (green schist fancies) and typically consist of chloritephylite, graphitic phylite,
ferruginous and graphitic quartzite marble lenses talc serpentine schist. Talc –chlorite schist etc.

Mesozoic rock succession

Are known to consist sedimentary rocks formed as a consequence of transgression and regression of
marine water body in the eastern and central part of the country. The whole stratigraphic succession
of Mesozoic sediments comprises (from old to young) Adigrat sandstone, Hamalie limestone and the
Ambaradom Sandstone (upper sandstone) formation.

The Adigrat Sandstone

Over lain directly on the Precambrian complex basement unconformable and consists conglomerates
(at basal), sandstone, siltstone, marl and graded to hamalie limestone.

The Amba – Aradam (upper sandstone) Formation

Is considered, as youngest sedimentary formation deposited during and after the transgression, hence,
is terrestrial igneous sediment.

1.2 Local Geology

1.2.1 Granite

The Harar granite body referred to in this proposal is selected and studied for its use as a dimension
stone quarry. Because of its location being on the main road from Harar to Harawe. The area has been
subjected to detail geological studies. Selected samples from the area have also been taken to
determine its properties for future quarrying of the stone. The sampling has shown that the rock can
take polish exhibiting smooth reflecting surfaces without scratches, pits or chips.

The Granite itself is fine to medium grained, light gray to gray with tints of black (biotite) and pink
(feldspar). The mineral constituents are mainly quartz, plagioclase and biotite.

They are often jointed giving a conspicuous blocky appearance to the outcrop. Fractures are
generally scarce with some being filled with quartz veins. From the sparing of the joints, most of
which have left the Granite outcrop it is easy to extract blocks of sizeable quarry dimensions. It is
possible to immediately start of the mining.

Geologically the region around Harewe is gneiss of the lower complex intruded by the granite body
which is post tectonic.

The granite body forms a prominent ridge extending North- South along a narrow belt which extends
4-5 kms N-S and 0.5-1 kms E-W. The contact with the underlying gneiss is simply an unconformity.
Estimated mineral constituents from hand specimen are:Quartz. Plagioclase and biotite.

The successful and economical working of granite quarries depends upon an intelligent application
of knowledge of the structure of the rock and its natural divisions in the mass. As well as upon
improved methods, tools, and machinery for quarrying. The topographical location of the quarry and
its relation to facilities for transportation are important factors that affect the productiveness and
greatly modify the actual cost of operations in a given place. The manufacturing process of granite
blocks and slabs involves the following operations: quarry opening, block production; cutting to
produce slab; polishing and tiling in terms of the market out let.

Mineralogy of Granite Rock

Mineralogical analysis of granite rocks can be done either using X-ray diffraction techniques or
thermal methods of analysis such as differential thermal analyzer (DTA) and Thermo-gravimetric
analyzer (TGA). DTA measures the endothermic decompotion while TGA measures the change in the
mass of the granite minerals.
 It is not easy in the field to determine the percentage of quartz. biotite and plagioclase of granite
rocks. Its color is, light gray to gray with tints of black (biotite) and pink (feldspar) in color

They are generally massive, with few ill-defined banding, fine to medium grained and well
crystallized. The banding of the rocks is due to variation in grain size and mineralogy.

Reserve Estimation

Though no drilling has been done on the project site to determine the depth of the deposit, minor
geological mapping was done in the area for the preliminary estimation of the reserve. The minimum
and average thickness of the deposit common to all the area under concession is taken and is
calculated using the polygon method.

The average mine-able depth is measured to be 20 meter. Furthermore the total area of the
proposed area is about 60,000m2.

Effects of unforeseen factors like weathering, intercalation of unwanted materials and non-resistant
inclusions in the rock, are assumed to lower its actual exploitable volume by about 60%. Therefore
the total mineable reserve of the granite rock deposits at the proposed project site is estimated as
follow.

Total Area = 50,000m2

Average minable thickness of the deposit =12m

Total mineable Reserve (volume)=50,000m2 *12m=600,000m3

No overburden or man-made structure is observed on the deposit, so that the recovery is

estimated to be high i.e. 60%

Therefore the recoverable reserve from the deposit will be:

600,000m3 *0.60 = 360,000m3 will be harvested from the project site throughout the project
life.

2. Mining Operation

2.1 Mining methods and Related Activities

The Harar Granite deposit can be mined by a simple surface kind quarrying. A semi-mechanized
method of quarrying shall be applied for the cutting of the stone block from the site. The quarry face
and height shall be chosen in such a way that it shall ensure the required safety of mining work, high
productivity of mine equipment and possible low extraction costs. During field visit to the area a
quarry face suitable to produce a block of 3*3 meters has been selected. No overburden material has
been found except for the consideration of limited agricultural lands. As the Harewe Granite body is
massive quarrying can possibly be by surface quarrying and benching. The Harewe Granite body is
quite extensive, the selected and studied section reserve alone amounts to well over 432,000m3.
Mining of the stone shall commence with direct cutting of the exposed outcrop face into acceptable
block size (3m*1.5m*1.5m), using such equipment as pneumatic hammer drills, compressors, etc. The
equipment to be deployed has been stated under resource equipment section.

2.2 Production Capacity

The production capacity of any mining operation can be affected by numerous factors, especially,
during the early stage of the execution of the operation. Some of the major capacity limiting situations
is given below for comparison.

- The history and stage of mine

- Mining conditions

- Capacity of machineries and equipment’s

- Availability of required skilled manpower and supplies

- Above all, the size of the needy market

Thus annual production of the operation will be solely depending on the achievement and gained
experiences during the pilot time. At present, it is planned to produce processed material of 2,500m3
per year.

2.3 Project Life

The life period of any mining process is a variable of the volume or tonnage of workable resource
deposit and the average annual production size of the final marketable production, provided that other
governing conditions remains constant is long.

3. Organization and Management

The organizational structure and management of the project is designed to have two major functional
bodies. The head quarter which is supposed to be established in Harar town undertakes annual budget
planning, control and evaluates the performance of the overall activities of the project. The site office
which is supposed to be established at the quarry site, undertakes technical activities like quarrying,
storing, loading and over all operation and maintenance works of the maintenance works of the
machineries.

The organization includes project manager, secretary, production and Technical unit. Marketing unit
and Administration and finance unit.

4. Resource Requirement of the Project

In order to realize the project implement in addition to the mineral resource, expenditure for the
purchase of machinery and equipment’s, vehicle, manpower (skilled and unskilled) etc. and related
financial requirements are considered. In addition, the intended project requires office and store etc. to
be constructed at the site.

4.1 Machineries and Equipment’s

Proposed machineries requirements of the project are presented on the following table.
Machinery Requirement

No Machinery Quantity
1 Compressor 1
2 Loader 1
3 Excavator 1
4 Generator 1
5 Jacking plant 3
6 Winch crane 30ton 1
7 Plugs and feather 100
8 Tungsten carbide chisels bits 800
9 Integrated drill rods 400
10 Pneumatic hammer/rock drill 5pcs
11 Pneumatic tungsten edge sharpener with replacement disk 1
12 Rubber hose and connection 2 rolls 40mts. Each
13 Demolishing agent 20 ton
14 1 set lifting and swing mechanism 1
15 Control panel 3pcs
16 Air bag polymer control 3pcs
17 Pick –up 1
18 Office and safety equipment’s
19 Hand tools

4.2 Manpower

The organization structure is designed in such a way that it enables to fully undertake the project
objective. It consist managing staffs, qualified personnel, and organized youths. Production Division
will handle the production activity of the project.

The designed manpower requirement of the project is 12 permanent employee and 10 contract
production workers. Except guards, all are good experience in their respective field of work. The
organizational structure and the manpower of the project are presented as follows.

Proposed Manpower

No Personnel Quantity
 1 General manager 1
2 Secretary 1
3 Driver 1
4 Technical manager 1
5 Accountant 1
6 Loader/Excavator Operator 1
7 Production workers (organized youths) 10
8 Store keeper 1
9 Sales man/cashier 1
10 Guards 4
Total 22

5. Financial Expenditures
5.1 Pre – Production Cost
No Description Cost(Birr)
1 Exploration and consultancy fee 100,000
2 License Fee 10,000
3 Land acquisition/ compensation 300,000
4 Access road maintenance 30,000
5 Office and store construction 150,000
6 Mobilization of Machineries 50,000
Total 640,000
5.2 Fixed Capital of the Project cost (in Birr)

No Machinery Quantity Unit cost Total cost

1 Compressor 1 2,500,000 2,500,000
2 Loader 1 5,500,000 5,500,000
3 Dump Truck 1 4,000,000 4,000,000
4 Generator 1 250,000 250,000
5 Jacking plant 3 50,000 150,000
6 Winch crane 30ton 1 450,000 450,000
7 Plugs and feather 100 100 10,000
8 Tungsten carbide chisels bits 1000 100 100,000
9 Integrated drill rods 500 200 100,000
10 Pneumatic hammer/rock drill 6 10,000 60,000
11 Pneumatic tungsten edge sharpener with 1 26,000 26,000
replacement disk
12 Rubber hose and connection 2 rolls 40 mts. 5,575 11,150
Each
13 Demolishing agent 10 ton 40,000 400,000
14 1 set lifting and swing mechanism 1 400,000 400,000
15 Control panel 2 pcs 15,000 30,000
16 Air bag polymer control 2 pcs 9,000 18,000
17 Pick –ups 1 2,500,000 2,500,000
18 Office and safety equipments 380,000 380,000
19 Hand tools 150,000 150,000
Total 17,035,150

5.3 Operating Cost

5.3.1 Salary and Wages
No Personnel Quantity Salary/month Salary /year
1 General manager 1 10,000 120,000
2 Secretary 1 4,500 54,000
3 Driver 1 4,500 54,000
4 Technical manager 1 6,000 72,000
5 Accountant 1 5,000 60,000
6 Loader Operator 1 6,000 72,000
7 Production workers 10 40,000 504,000
8 Sales man/cashier 1 4,500 54,000
9 Store keeper 1 3,000 36,000
10 Guards 4 6,000 72,800
Total 22 1,098,800

5.3.2 Fuel, Lubricants, and Maintenance Expense

No Machine Type Consumption Yearly Total Unit cost Total cost
Rate Lit.
1 Loader/excavator 15lit/hr 9,000 32.00 288,000
2 Compressor 10lit/hr 6,400 32.00 208,000
3 Generator 15lit/hr 3,600 32.00 115,200
4 Lubricants (10)% 61,120
Fuel cost)
5 Maintenance 250,000
6 Contingency 5% 46,116
Total 968,436

- Note, for all machineries- it is calculated on the basis of working hours per/day.

5.3.3 Utilities Expenditure

Includes materials to enhance the day to day activities of the project. The details are as follows.

No Item Cost(Birr/Year)
1 Stationary, cleaning agents etc 35,000
2 Telephone, Fax, Postage, internet 40,000
3 Others (unseen) 20,000
Total 95,000

5.3.4 Miscellaneous

No Item Cost (Birr/Year)

1 Travel and Perdiem 40,000
2 Insurance (2% of fixed capital) 340,703
3 Medical expense 10,000
4 Uniform and safety shoes 70,000
5 Environmental rehabilitation 30,000
Total 490,703

- Total operating cost = 2,652,939 birr

Project Cost Summary

 Description Project Cost (Birr)
1. Pre –production cost 640,000
Exploration and consultancy fee 100,000
License Fee 10,000
Land acquisition/compensation 300,000
Office and store construction 30,000
Access and road construction 150,000
Mobilization of Machineries 50,000
2. Fixed Capital Expenditure cost 17,035,150
Compressor 2,500,000
Loader 5,500,000
Dump Truck 4,000,000
Generator 250,000
Jacking plant 150,000
Winch crane 30ton 450,000
Plugs and feather 10,000
Tungsten carbide chisels bits 100,000
Integrated drill rods 100,000
Pneumatic hammer/rock drill 60,000
Pneumatic tungsten edge sharpener with 26,000
replacement disk
Rubber hose and connection 11,150
Demolishing agent 400,000
1 set lifting and swing mechanism 400,000
Control panel 30,000
Air bag polymer control 18,000
Pick –ups 2,500,000
Office and safety equipments 380,000
Hand tools 150,000
3. Annual operating Cost 2,652,939
Salary and wages 1,098,800
Fuel, Lubricants and Maintenance 968,436
Utilities 95,000
Miscellaneous 490,703
Total Project Cost 20,812,792

6. Fund Sources
 The overall project cost will be financed from bank loan by lease financing. So bank involvement in
the implementation of our project is very essential.

7. Financial Analysis
7.1 Preliminary Project profit and loss statement forecast for the first to tenth
years
No Description Amount (Birr) Amount (Birr)
1styear 2nd to 10th each year
1 Sales Revenue (=) 8,750,000 17,500,000
2 Royalty (3%) 262,500 525,000
3 Turn Over Tax (2%) 175,000 350,000
4 Operating cost 1,326,469.5 2,652,939
5 Annual Depreciation 1,703,515 1,703,515

The financial and profitability analysis of the project is due considering the following assumptions.

1. Depreciation is calculated from the time the project starts operation. Straight line depreciation over ten
years is applied machineries and light vehicles respectively
2. The fixed asset is assumed to have 10% of its initial cost after depreciation, as a salvage value.

3. The average price per m3 (7,000 birr) of granite block is assumed to be constant throughout the project
life.
4. The preproduction cost is considered to be cost required to make some verification of the resource,
license acquisition and other pre production operation expenses, amortized in 10 years.
5. The annual operating cost amount 2,652,939 Birr is considered for 100% capacity utilization,
supposed to be attained starting from the second year.
6. The tax, royalty and other similar points considered in the analysis are based on Mining Laws and
Regulation of Ethiopia.
Based on these assumptions and the data in the preceding sections, the projects financial evolution, in
terms of profit and loss statement (in birr), is presented in the following table.
No Description Years

1 Cash flow 0 1 2 3 4 5

A Pre-production 640,000
cost
B Fixed cost 17,035,150

C Operating cost 2,652,939

Total 20,812,792

2 Sales rvenue 8,750,000 17,500,000 17,500,000 17,500,000 17,500,000

3 Depreciation 1,703,515 1,703,515 1,703,515 1,703,515 1,703,515

4 Rayality (3%) 262,500 525,000 525,000 525,000 525,000

5 Operating cost 1,326,469.50 2,652,939 2,652,939 2,652,939 2,652,939

6 Total cost(-) 3,292,484.50 4,881,454 4,881,454 4,881,454 4,881,454

7 Taxable income 5,457,515.50 12,618,546 12,618,546 12,618,546 12,618,546

8 Income tax (35%) 1,910,130.425 4,416,491.10 4,416,491.10 4,416,491.10 4,416,491.10

9 Net profit 3,547,585.075 8,202,054.90 8,202,054.90 8,202,054.90 8,202,054.90

10 cash flow -17,675,150 -14,127,764.925 -5,925,710.03 2,276,344.87 10,478,399.77 18,680,454.6

8. Work Program
It is expected that the project will be ordered 6 months after singing agreement with the
licensing authority. The major activities after completion of the license acquiring process and
the sequences of their implementations during the initial year are as follows.

Procurement of mining equipment, machinery, etc.

Recruitment of necessary manpower.

Construction of access road and store, respectively.

Mobilization and installation of equipment

Pilot production and project commissioning

The following table presents the work schedule for the initial year of the project.

No Activities Months

1 2 3 4 5 6 7 8 9 10 11 12

1 Procurement

2 Recruitment

3 Civil work

Mobilization and
4
installation

Pre- production

It would be important to mention here additionally that the project will be managed and smartly
coordinated by well- experienced personnel management so that the task accomplishment will be effective
to implement the project according to this schedule.

Work program for 2014 – 2022year.

Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Production of 1,250 2,500 2,500 2,5000 2,500 2,500 2,500 2,500 2,500 2,500
granite in m3
9. Environmental Aspects Of The Project

Any type of natural resource extraction leaves negative scar on the area of the process, particularly where
preplanned conservation and reclamation programs are not under taken side by side with the extraction
activities.

Problems that can be generated as the consequence need to be addressed specifically with remedial
solution. Not only planning for the extraction of the extraction of the specific resource, but also long term
land use strategy must be designed simultaneously. Overall hazard – crushing conditions must be avoided
and/or minimized either during the process or after stoppage.

9.1 Expected Impacts

The possible negative environmental impacts that can be generated as the consequence of the mining
activity are:

 Destruction of natural topography or landform

 Sound pollution during mining operation and crushing

 Dust generation possibly throughout the process

 Down movement of rock fragments

 Increased erosion intensity

 Cut down of trees found within the operation site and

 Farmland disturbance

These are the foreseen possible impacts that can occur as the consequence of the activities of the project in
the vicinity of the site and in the surrounding.

9.2 Mitigation Measures

In view of environmental conservation, it is concern of this investment since the generation of the project
ideal. Hence, the problems that can be possibly arise as the result of the project activities and the
protective measures are not lined or planned with sufficiently allocated funds. Starting from the date of
commencement of the project we will assign the environmental work program.

The land to be quarried will get leveled and made topographically in agreement with the surrounding.

The stripped soil will get damped at selected part of the site and compacted by using bulldozer as to
minimize aggressive run-off water action against it.
Down movement rock debris can be controlled by employing bench method with sufficient.

The trees found around the site are mostly thorny bushes. If it is necessary to cut down them, then, after
the mining is advanced trees, which are friendly to the area, will be selected and planted.

If it is necessary to use farmland the farmers will be paid compensation on negotiation bases.

In general, based on the above setup plan and the licensing office advice, reclamation activities will take
place side by side with the mining operation. Subsequently, for the purpose, Birr 30,000 budget is
allocated annually. This figure can be changed whenever necessary.

10. Conclusion

The project is to be operationally profitable and has significant socio – economic benefits.

According to the projected income statement, the envisaged project starts earning profit from the first year
of operation. The income statement and other profitability indicators show that the project is viable. The
project is believed to have significant social and economic benefits that accrue to the society beyond those
financial returns to its owner.

The most remarkable social benefits can be expressed in terms of job creation that leads to reduction in the
level of unemployment.

The project directly employs 10 organized skilled youths 8 professionals and 4 unskilled persons. It is
obvious that in the sales and distribution activities outside the project, more persons can engage
themselves gainfully. Any manufacturing process using relatively modern technology helps to advance
technical awareness and skill development in a society. The project contributes to the overall
technological development of the nation.

By all considerations, the country and the promoter will benefit from the project. Therefore, the realization
of the project is justifiable on all grounds and should be recommended for implementation and deserve the
necessary support from all concerned.

Finally, considering the attractive financial and economical benefits the project is to produce, the company
has made the necessary preparation hoping that all the concerned offices and financial institutions should
give their support to facilitate the implementation of this plan.