Professional Documents
Culture Documents
Prepared by
Economic Performance Sector
Central Department of Feasibility Studies
General Department of Economic Feasibility Studies
March 2021
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I. Basic Information
Market Gap:
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It is clear from the study that the market gap reached $97.4 million
during the year 2018, equivalent to 311,680 tonnes approximately.
The market gap and distribution of Egypt's imports from countries are
shown as follows:
Distribution Outlets
Export to countries where such industry is not available;
Glass, soap and detergent manufacturers;
Companies that use the product as inputs in other industries.
Market Study Conclusion
In light of the market study, and in accordance with growth drivers and
competitive strength, it is clear that there is a demand for the product
and the presence of a market gap in Egypt and several other countries,
which provides great marketing opportunities in the local market or in
export.
III. Technical Study
1. Project Location: Qena Governorate
2. Land: land surface area of 8000 m2
3. Buildings: construction of buildings on a surface area of 4000 m2 with single
storey building. The building is divided into two sections, where one is
administrative and the other section includes the factory, stores and
production facilities.
4. Final Product: Sodium carbonate - Sodium bicarbonate - Calcium chloride.
5. Labour Required: 125 workers and administrative officers.
6. Main Raw Materials and Supplies:
Calcium carbonate
Salt preparation, washing unit
Coke
Calcium chloride
Sodium Sulphide
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Ammonia
Chlorides washing (centrifugal) unit
7. Main Machinery and Equipment:
Carbonization and absorption Unit
Furnaces unit
Carbonate bunkers
Packing units
Vibrating and product separation unite
Filters for purification
Storage area for the final product
8. Production Capacity: 320,000 tonnes/annum
The data mentioned in the technical study are estimated data according to
the data received from the Industrial Development Authority (IDA).
9. Fields of Usage:
Primarily used in glass industry;
Manufacture of soap and household detergents;
Manufacture of pulp (paper);
Treatment of sewage water;
Used in sodium chloride saline to relieve pain;
Used in veterinary medicine as superficial wounds disinfectant.
this study; and that this value may change with the change of circumstances by
the limitation period of the report or by the change of the economic climate in
general.
Incorporation and pre-commencement expenditure have been assumed that they
are fully depreciated with the first year of revenue as per the Egyptian Accounting
Standards.
The estimated income statements have been prepared on the assumption that there
is no fundamental change in the revenue values and expected annual costs during
the study period.
The annual cash flows were estimated using the indirect estimation method by
making the necessary adjustments to the results of the estimated income
statements for the years under study.
The study assumed that all purchases include VAT.
2. Annual Sales:
Depreciatio Annual
Depreciatio n Rate
Item Cost Depreciatio
n Years
n
Buildings, Finishes and
Infrastructure
Machinery
Lorry Vehicles
Cranes, forklift, etc.
Incorporation Expenses
Total
4.4. Other Expenses:
Electricity, water, fuel and other expenses that estimated at EGP
10,000,000.
4.5. Based on the foregoing, the value of the running costs for the
operating cycle (not including depreciation of the first year) is as
follows:
Item Total
Buildings 12,000,000
Machinery 900,000,000
Lorry Vehicles 5,000,000
Cranes, forklift, etc. 8,000,000
Incorporation Expenses 1,000,000
Materials 865,000,000
Salaries 11,892,000
Other operation costs 10,000,000
Total 1,812,892,000
4.6. Based on the foregoing, the total investment costs of the first year
amounted to EGP 1,812,892,000.
5. Project Financial Statements and Indicators, and Expected Profitability Ratios:
The financial statements and indicators, and profitability ratios are among the
most important tools used to assess the economic viability of projects. The
assessment comes upon calculating the net income of the project and the net cash
inflows of the project, as well as the net present value of money resulting from an
increase in the inflation rate using the prevailing interest rate.
Financial indicators are also used to make a comparison between the available
investment options, and to compare between the average ROI and the payback
period for each project separately.
5.1. Expected Income Statement for the First Five Years of the Activity:
Assuming a 10%-annual-increase in return and costs
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Year السنة
Cash flow التدفق النقدي
Discount factor %10 معامل الخصم
10%
Net Present صافي القيمة الحالية
Value (NPV)
Year 1 السنة األولى
Year 2 السنة الثانية
Year 3 السنة الثالثة
Year 4 السنة الرابعة
Year 5 السنة الخامسة
Total اإلجمالي
Year السنة
Net Annual Profit صاف الرب ح السنوي
ي
Annual Rate of Return معدل العائد سنويا
Year 1 السنة األوىل
Year 2 السنة الثانية
Year 3 السنة الثالثة
Year 4 السنة الرابعة
Year 5 السنة الخامسة
Investment Costs التكاليف االستثمارية
Average Return on متوسط العائد عىل االستثمار
Investment
6. Payback period
The payback period is calculated as follows:
Year السنة
Annual Cash Inflow التدفق السنوي الداخل
Cumulative Cash Flow التدفق التراكمي
610,143,730
2
689,687,027
0.88
2 0.88