Gold Mafia General Holdings

CONSTRUCTION OF A 100MW SOLAR PLANT IN

GWANDA, MATABELELAND SOUTH,
ZIMBABWE.
PR:01/23

COST MANAGEMENT PLAN

VERSION 1.0

29/03/2023

Gold Mafia General Holdings PGDPM -Group 2

 COST MANAGEMENT PLAN

DOCUMENT CONTROL

DOCUMENT INFORMATION

Information

Document Id Cost Management -01

Document Owner Gold Mafia General Holdings

Issue Date 29/03/2023

Last Saved Date 29/03/2023

File Name Cost Management

DOCUMENT HISTORY

Version Issue Date Changes

[1.0] 29/03/2023 [Section, Page(s) and Text Revised] -Nil

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DOCUMENT APPROVALS

Role Name Signature Date

Project Sponsor Gold Mafia General Holdings 29/03/2023

Project Review Group Gold Mafia General Holdings 29/03/2023

Project Manager Bunolo Makhurane 29/03/2023

Quality Manager Chipo Mapfukidze 29/03/2023

Procurement Manager Tapiwa Nyamukapa 29/03/2023

Communications Manager Natasha Gwati 29/03/2023

Project Office Manager Brian Masunga 29/03/2023

Risk Control Manager Juliet Gombe 29/03/2023

Production Manager Peter Chandiregera 29/03/2023

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COST UNITS OF MEASURE

Resource/Deliverable Units of Measure Level of Precision Level of Accuracy

Consulting team (ZETDC/ZPC, Day rate from consulting rate card Logged at a min of 30 minutes +/- 2 days start up, refined to +/-1
ZERA, Meteorological department) day following design stage

3rd party suppliers (Ministry of Fixed Fee. Any change orders Fixed amount. Pending change Assume supplier has ensured
Energy, EMA, Confederation of expressed in days. orders. accuracy to meet fixed fee.
Zimbabwe Industries, Local
Leadership (Councilor, DDC, PDC)

Phones Cost per phone & monthly contract Exact Exact for next 6 months
fee

Suppliers US$ rates Fixed amount. Pending change Assume supplier has ensured
orders. accuracy to meet fixed fee.

Contracted manpower Staff hours Clocked daily at start and end of As per prevailing labour contracts
shift

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ORGANIZATIONAL PROCEDURE LINKS

The project costs will be tracked in the Project Management Costs Tracker software which links directly to the project activities and various costs centres for
Gold Mafia General Holdings. The costs would be broken down by work package as shown by the WBS for the project. The Gwanda Solar Project work
package is as follows:

Scope Statement

 To construct a solar plant to supply 100MW of clean energy to 2,800 households in Matabeleland South by December 2024 so as to increase power
into the ZESA national grid and reduce power demand in the country thus reducing load shedding.

WBS for Solar project

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WBS Dictionary

LEVEL DEFINITON

L.0 Construction of a 100Mw solar plant

L.1.1 Preparation work prior to commencement of the project

L.2.1.1 Carry out pre-feasibility study through a non-interested third party

L.2.1.2 Carry out feasibility study focusing solely on the agreed technology, targets and funding model.

L.2.1.3 Determine solar farm location and grid connection point

L.2.1.4 Develop stakeholder register and engage stakeholders to acquire project support

L.1.2 Development of the infrastructure

L.2.2.1 Establishing the work zone

L.2.2.2 Determination of engineering contractor/partner and labour resourcing

L.2.2.3 Road network construction and securing of worksite

L.1.3 Purchasing of equipment and logistics

L.2.3.1 Procurement of accessories for civils

L.2.3.2 Procurement of electrical accessories

L.1.4 Plant Installation

L.2.4.1 Solar farm site clearance

L.2.4.2 Civil works, ground reinforcement and foundation backfilling

L.2.4.3 Installing the grounding grid

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L.2.4.4 Construction of control room

L.2.4.5 Construction of substation and switchyard

L.2.4.6 Assembly steel structures

L.1.5 Installation of electricals and supporting accessories

L.2.5.1 Install solar panels and accessories

L.2.5.2 Install inverters and accessories

L.2.5.3 Install transformers and accessories

L.2.5.4 Construction of HT Transmission lines

L.6 Project commissioning

L.2.6.1 Conformance inspection

L.2.6.2 Offload testing

L.2.6.3 Project closure

L.2.6.4 National grid tie-in

100MW GWANDA SOLAR PLANT PROJECT BUDGET

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BUDGET/$k US$3,300.00
30.3%
ACTUAL/$k US$1,000.00

I.D WBS CODE WBS NAME Materials Required Quantities Unit of Measure Unit Cost Total Cost % of Budget
1 L.0 Construction of a 100Mw solar plant
2 L.1.1 Preparation work prior to commencement of the project
3 L.2.1.1 Carry out pre-feasibility study through a non-interested third party
Carry out feasibility study focusing solely on the agreed technology,
4 L.2.1.2 targets and funding model. US$50,000.00 US$50,000.00
5 L.2.1.3 Determine solar farm location and grid connection point
Develop stakeholder register and engage stakeholders to acquire
6 L.2.1.4 project support Consultant 1 - 2%
7 L.1.2 Development of the infrastructure
8 L.2.2.1 Establishing the work zone Consultant 1- US$50,000.00 US$50,000.00 2%

L.2.2.2 Determination of engineering contractor/partner and labour resourcing Gold Mafia General Holdings US$200,000.00 US$200,000.00
9 1 6%
10 L.2.2.3 Road network construction and securing of worksite Group 5 1- US$200,000.00 US$200,000.00 6%
11 L.1.3 Purchasing of equipment and logistics
12 L.2.3.1 Procurement of accessories for civils Gold Mafia General Holdings 1 Lot US$800,000.00 US$800,000.00 24%
13 L.2.3.2 Procurement of electrical accessories Gold Mafia General Holdings 1 Lot US$1,000,000.00 US$1,000,000.00 30%
14 L.1.4 Plant Installation
15 L.2.4.1 Solar farm site clearance
16 L.2.4.2 Civil works, ground reinforcement and foundation backfilling
17 L.2.4.3 Installing the grounding grid Chinese Energy company 1 Lot US$500,000.00 US$500,000.00 15%
18 L.2.4.4 Construction of control room
19 L.2.4.5 Construction of substation and switchyard
20 L.2.4.6 Assembly steel structures
21 L.1.5 Installation of electricals and supporting accessories
22 L.2.5.1 Install solar panels and accessories
23 L.2.5.2 Install inverters and accessories Chinese Energy company 1 Lot US$400,000.00 US$400,000.00 12%
24 L.2.5.3 Install transformers and accessories
L.2.5.4 Construction of HT Transmission lines
25 L.6 Project commissioning
26 L.2.6.1 Conformance inspection
27 L.2.6.2 Offload testing Chinese Energy company/GM General Holdings 1 Lot US$100,000.00 US$100,000.00 3%
28 L.2.6.3 Project closure
29 L.2.6.4 National grid tie-in
Total Budget US$3,300,000.00

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PROJECT COST TOLERANCES

The following actions are the points at which action will need to be taken to correct a variance from the budget and various costs tracking techiniques for Gold
Mafia General Holdings solar project.

Approval up to xx% of overall budget

Tolerance Project Manager Program Office Project Board

0 to 199,999 2.50% >2.5-10.0% >10%

200,000 to 499,999 1.50% >1.5-7.5% >7.5%

Over 500,000 1% >1-5% >5%

RULES OF PERFORMANCE MANAGEMENT

 A project expense is the cost of what you need to complete a project. You need to cover all the expenses associated with your project before
executing that project. This occurs during the project planning phase when you’re developing a project budget.

 Cost tracking involves examining every phase and their necessary resources. The plan should cover all activities within the project and contain
sufficient contingency. At this point, everything should be accounted for. This includes all hardware, software and materials.

 A good way to monitor your expenses during a project is to set project milestones. At each milestone, you can assess your spending and ensure the
project is staying within scope. Then, if you notice cost overruns at any given milestone, you can determine how to reduce costs moving forward.

 Cost management plans include many figures and calculations that have established names. Before creating your plan, it's important to understand
the terminology so you can measure the correct items and produce an accurate report. The following key elements are of paramount importance
when coming up with a cost management plan, that is,:

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 Cost baseline: The cost baseline is an estimate of project costs based on the project's set timeline. You can use this baseline to assess project
performance.

 Earned value measurement (EMV): This technique involves measuring project progress based on the amount of work completed. Earned Value
Management (EVM) is a project performance management methodology that integrates cost, schedule, technical scope, and risk to assess progress
against a baseline. It uses that information to identify problems, and forecast cost (and, to a certain extent, schedule) at completion.

 Three-point estimation: This technique uses a formula to create the minimum and maximum estimates of a project's costs, length and amount of
work so you can calculate the ideal estimate value.

 Bottom-up estimation: With bottom-up estimation, you estimate the costs of the smallest details and add them together to estimate the total costs of
the project.

 Analogous estimation: You can calculate this estimate by comparing the costs of all past projects to your current ones.

 Parametric estimation: This estimate involves calculating the unit cost of each task, adding them together and comparing them to your budget.

 Work breakdown structure (WBS): This is a visual layout of a project showing the tasks you expect all team members to perform.

Gold Mafia General Holdings would use the EMV technique in tracking the project progress. Earned Value (EV) is a project Key Performance Indicator (KPI)
that represents a quantified value of the work accomplished to date. EV is calculated as the sum of the budget for all completed work on a project or portion
of a project (i.e., a WBS element, Control Account, or Work Package). This includes the budget of all work that is 100% complete, plus partial budgets for
work that is in-progress.

One of the most basic analyses that can be done with Earned Value is to compare Earned Value (EV) to Planned Value (PV) using the following formula:

EV – PV = SV

The result of this calculation is Schedule Variance (SV). SV provides a quantifiable measure of the volume of work, in terms of budget, that is behind
schedule. A negative SV indicates that the project is completing less work than planned, while a positive SV indicates the project is completing more work
than planned. A significant negative SV could indicate resource issues on the project that need to be addressed.

Another basic analysis technique used for tracking the Gwanda Solar Project by Gold Mafia General Holdings is to compare Earned Value (EV) to Actual
Cost (AC) using the formula:
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EV – AC = CV

This calculation yields the Cost Variance (CV). CV provides a very useful measure of whether the project is meeting its budget targets. A negative CV
indicates that the project is spending more money than planned on the work that is being performed, while a positive CV indicates the project is spending less
money than planned. A significant negative CV could be an indicator that the project will not complete within budget.

These values can also be expressed as percentages (ex. SV% and CV%), or as indices (ex. Schedule Performance Index – SPI, Cost Performance Index-
CPI) to provide insight into the significance of the variances and assist project managers focus on the most important problem areas for corrective actions.

COST REPORTING AND FORMAT

Costs will be recorded daily in on every standdown meeting.

Dashboards and other charts will be used for project team reporting and tracking:

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Costs will be exported from the software and reported weekly to the Customer and Gold Mafia Project Board on the Project Tracking or Status Report.

Any variances over project tolerance will be reported to the PMO as well as to the relevant approver for actioning.

ADDITIONAL DETAILS

 The currency used to manage the project would be strictly in US$, with all invoicing following suite.

 Other transactions outside the US$ would be as per prevailing exchange rate at the time.

 Currency exchange rates would be tracked on a weekly basis so as to manage any variations emanating from the exchange rates.

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