Professional Documents
Culture Documents
PROJECT INFORMATION
Proposed Project:
Project Location
South western Ethiopia Oromiya Regional State, jimma town Awetu Mendera kebele
Project Type
: Service Industry
Requested Area:
The site is 2500 karemeter square in area, located at jimma town Awetu Mendera kebele
15 MillionOur value:-
Customer focus
Innovative culture
Cost effectiveness
Social responsibility
Recreational centers are places where peopleget entertainment and enjoyment. The facilities provided
include variousindoor and outdoor games, swimming pools, cinema halls and facilities tostage theaters
and music shows.
Job opportunity:
The envisaged project deemed to add to theeconomic development of the nation in general and zone
and town inspecific with following ways:A.
Source of RevenueB.
Employment opportunityC.
Sources of social serviceD.
IncomeE.
Source Of FundF.
Hospitality
Efficiency
Source Of Fund:
Implementation Period:
two year
Provide better Building service,employment opportunities, generation of income and benefits for
thelocal people.
Objective:
To construct and provide excellent child play care in a kid-friendlyatmosphere while ensuring our
customers, both parent and child,receive excellent service in a playful,
create both short and long term job opportunity for the localcommunity and develop the local skills base
Executive Summary
in Jimmatown Oromia Regional State. Demand projection divulges that there ishigh demand for
recreational centers in the region. Accordingly, theplanned plant is set to provide recreational services in
zonal capitals. The proposed Recreation Centre will meet the current and long-termneeds of the
community of jimma. The total investment cost of theproject including working capital is estimated at
Birr 15 million andcreates 85 job opportunity .The proposed infrastructure will support the
The proposedrecreation facility will enhance the tourism experience in many ways andcreate
opportunities for residents and businesses in Jimma town. The financial result indicates that the project
will generate profitbeginning from the first year of operation. Moreover, the project willbreak even at
29.6% of capacity utilization and it wills payback fully theinitial investment less working capital in 3
years. The result furthershow that the calculated IRR of the project is 25.7% and NPV discountedat 18%
of Birr 351,871.79 .In addition to this, the proposed projectpossesses wide range of economic and social
benefits such as increasing
the promoter
the owner of the envisagedproject, planned to establishment of recreational center in jimma townand
undertaken this project study to check the market, technical andfinancial feasibility of this project. The
promoter is very ambitious andcommitted to realize the project. Hence, they expects to get the
necessarysupport from Jimma investment and city administration to make theproject to be
operationalOpen navigation menu
Sc
Project to Be Implemented In Oromia Region Jimma Zone Jimma TownSubmitted To: Jimma City
Administration, land administration Agencyand Investment office
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Table of Contents
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PROJECT INFORMATION
Proposed Project:
Establishment of new recreation center
Project Location
South western Ethiopia Oromiya Regional State, jimma town Awetu Mendera kebele
Project Type
: Service Industry
Requested Area:
The site is 2500 karemeter square in area, located at jimma town Awetu Mendera kebele
15 MillionOur value:-
Customer focus
Innovative culture
Cost effectiveness
Social responsibility
Recreational centers are places where peopleget entertainment and enjoyment. The facilities provided
include variousindoor and outdoor games, swimming pools, cinema halls and facilities tostage theaters
and music shows.
Job opportunity:
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The envisaged project deemed to add to theeconomic development of the nation in general and zone
and town inspecific with following ways:A.
Source of RevenueB.
Employment opportunityC.
Sources of social serviceD.
IncomeE.
Source Of FundF.
Hospitality
Efficiency
Source Of Fund:
Implementation Period:
two year
Provide better Building service,employment opportunities, generation of income and benefits for
thelocal people.
Objective:
To construct and provide excellent child play care in a kid-friendlyatmosphere while ensuring our
customers, both parent and child,receive excellent service in a playful,
create both short and long term job opportunity for the localcommunity and develop the local skills
base.
AD
Executive Summary
in Jimmatown Oromia Regional State. Demand projection divulges that there ishigh demand for
recreational centers in the region. Accordingly, theplanned plant is set to provide recreational services in
zonal capitals. The proposed Recreation Centre will meet the current and long-termneeds of the
community of jimma. The total investment cost of theproject including working capital is estimated at
Birr 15 million andcreates 85 job opportunity .The proposed infrastructure will support the
.
The proposedrecreation facility will enhance the tourism experience in many ways andcreate
opportunities for residents and businesses in Jimma town. The financial result indicates that the project
will generate profitbeginning from the first year of operation. Moreover, the project willbreak even at
29.6% of capacity utilization and it wills payback fully theinitial investment less working capital in 3
years. The result furthershow that the calculated IRR of the project is 25.7% and NPV discountedat 18%
of Birr 351,871.79 .In addition to this, the proposed projectpossesses wide range of economic and social
benefits such as increasing
the project is technically feasible, financially and commercially viable aswell as socially and economically
acceptable. Hence the project is worthimplementing. To this effect,
the promoter
the owner of the envisagedproject, planned to establishment of recreational center in jimma townand
undertaken this project study to check the market, technical andfinancial feasibility of this project. The
promoter is very ambitious andcommitted to realize the project. Hence, they expects to get the
necessarysupport from Jimma investment and city administration to make theproject to be operational
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1. Introduction
Ethiopia is now well-known as among the five1/ fastest growingeconomies of the world. According to
IMF, the average growth of theeconomy is about 10.7% for the last 11 consecutive years, up to2013/14.
The development is broad-based and in paradigmtransformation. It is apparent that the development
policy and strategy ofthe Government created an enabling environment for the participation ofall
citizens, who reside both in and outside of the country, andcontributed for the achievement of the
stated fruits of development. Atthis juncture all the development actors in general and the
governmentin particular is determined to sustain the pace of on-going growth andtransformation of the
economy and it is explicitly indicated in the SecondFive Year (2015/16-2019/20) of Growth and
Transformation Plan. Thestated economic growth of the country brought a wide range of positivesocial
and economic outcomes, which includes, among others, theexpansion of all rounded business and
investments. The project hasmultifaceted contributions for the socio-economic development of anation.
In addition to the inclusive provision of best goods and qualityservices, it is also beneficial in terms of job
creation, revenue generationfor the government, an induced role in business and investmentexpansion
and facilitation, tourist attraction, etc.
has to first implement a plan to bridge the demand gap of the country ingeneral and to the city of jimma
in particular.The current fast anddynamic economic growth of Ethiopia especially in urban
areanecessitates equivalent growth of building and construction sector. Thesector should expand rapidly
to support the overall economicdevelopment sustainable
Service delivery is the provision of comprehensive and coordinatedservices to people in need. Human
service delivery is complex incontemporary Western societies, with high community
expectations,competing demands and often delivered under fiscal constraints.Specializations can mean
that individual service providers or agenciesdevelop the expertise to deliver a very specific service, yet
individuals,families and communities often experience multiple needs andinterrelated problems The
Government of the Federal DemocraticRepublic of Ethiopia, after closely examining youth issues,
gaveattention to youth problems and established the Ministry of Youth,Sports and Culture in October
2001. This ministry has the duty andresponsibility to follow up, direct and coordinate youth affairs.
TheMinistry of Youth, Sport and culture formulated a new National YouthPolicy in 2004. Following the
formulation of the National YouthPolicy, the Ethiopian government developed an Urban and RuralYouth
Development Package in 2006 and has started partneringwith different local governmental
organizations, community basedorganizations and international agencies for program implementation.
The Urban Youth Development Package is a comprehensive developmentpackage that is designed to
solve the socio- economic problems of urban youth.In Ethiopia youth Perception towards youth center
service deliveryhave not as such received significant research attention of concernedbodies. This has
resulted in scarce literature, low practice andintervention on the area of youth services delivery. To this
effect, the owner of the envisioned
who has been living forlong time in this town, planned to establishment of recreational center in Jimma
and undertaken this project study to check the market, technicaland financial feasibility of this project.
The promoter is very ambitious
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and committed to realize the project. Hence, expects to get the necessarysupport from the city
administration to make the project to beoperational. To this effect, the promoters of
Besides, the government policies and incentives for the private sectorinvestment are very promising
that initiate the promoter to engage in
Man's struggle for self-realization assumes many forms and has manyparts.The road to individual
integrity and dignity requires the exercise ofourrights and freedoms in responsible and constructive
ways. Importantamong these is the way each person chooses to exercise the right toenjoy in-creasingly
longer periods of respite from work and otherresponsibilities. We are changing from a work-centered
society to one inwhich people have abetter opportunity to balance their work withmeaningful
recreation experiences,These leisure experiences shouldbring a greater measure of satisfaction and
fulfillment into our dailylives. As we balance our individual lives in this manner, we contribute tothe
proper balance of society.Whether individually or as part of a groupsuch as the family, are find much of
the balancing experience throughsome form of recreation activity. The nature and quality of
theexperience, which we call recreation, determines in large measure thenature and quality of our lives.
The values we experience and demonstrate in our leisure behavior reflectthevalues we hold as
individuals and as a community of human beings.Recreation is first and foremost a personal matter. It is
something that aperson does voluntarily during his leisure because he believes that it willbe satisfying to
him. Enjoyment of the activity is basic to the recreation
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experience, but the values of recreation which give it depth and fullnessof meaning include the
maintenance and improvement of physical andpsychic well-being, the growth and development of
personality, and theeasing of social adjustments. Recreation is one of the keys to abundantliving.
Because of its importance in the building of our social fabric,recreationis more than a personal
responsibility. As ingenious andresourceful as man may be, his attempts to provide for
himselfrecreationally , meets an impasse unless he pools his resources withthose of his fellow man
toenable provision of certain kinds of recreationopportunity. The verythings that have given us
increased freedom and leisure havealso worked inmany ways to our disadvantage. The rapid increase
inpopulation and thenew leisure have created vast new economic marketsand helped to
promotefinancial affluence.During the past quartercentury while we have been depleting our
recreationresource potential,the recreation needs and demands of the population have increasedmany
times over. Scientific and technological advanceshave prolongedlife, produced labor-saving devices,
increased production per man-hourof work, and reduced the work day and the work week.
Longerlifecombined with compulsory retirement practices has produced anewleisure group of "senior
citizens." The increase in leisure providesforsmall allotments of time on weekdays, larger allotments on
weekendsandoccasional holidays, and substantial blocks of time for vacations. Ifthistime is to be enjoyed
and used in a manner that will contribute to thepositive growth of our culture, suitable recreation
opportunities must beconveniently accessible.
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The major goal of this project is to contribute towards the growth of thetrade sector in jimma town. Its
specific objectives include the following:
To provide excellent child play care in a kid-friendly atmosphere whileensuring our customers, both
parent and child, receive excellentservice in a playful, educational, and safe environment.
Establish recreation facilities to meet the needs of the population;
The proposed infrastructure upgrade will create both short and longterm job opportunity for the local
community and develop the localskills base.
To create a service-
expectations.
To create employment opportunities for the population in the townand Contribute towards the
beautification of the town through theconstruction of modern building infrastructure and facilities.
The proposed development will have numerous positive impacts to thearea residents and to the
general area. Some of the anticipated benefitsinclude:-
A. Source of Revenue
As public policy of any nation, the government collects different forms oftaxes from different business
organizations and individuals. Among the
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different forms of taxes, business income taxes, payroll income tax andVAT are collected from
undertaking business activities. Therefore, thebuilding will serve as sources of revenue for the town as
well as for theregion.
B. Employment opportunity
One of the problems that our country faced is unemployment. Therefore,the current objective of the
government is working on tackling theproblem of unemployment and fostering the development
process eitherthrough creating self-employment or employment in other organization. This will be a
significant impact since unemployment is currently quitehigh in this area hence, this project will hire 85
individuals
In addition to serving as a source of employment and income for theregion, the project renders social
services for different group of people.Hence, it is also providing the following services;
Since, the center encompasses different recreational areas; it willdivert the attention of the users from
different evil deeds.
As aforementioned on the introductory part the envisioned project isintended to be located in jimma
zone jimma town .Jimma city is found inoromia regional state at about 358 kms away from Addis
Ababa /finfinne
city ,in the south west direction .the city is located at 7O 40 ‘ N latitudeAnd 36 O6’ E longitude and the
total area of land of the
city wasestimated over 4,623 hectares .According to the 2007 population andhousing census of Ethiopia,
the total population of jimma for 2012 was
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estimated to be 3,868,151 and the jimma city population is alsoestimated to be above 149,164. Jimma
town is one of the oldest town in the southern western part of theregion and its strategic location and
availability of major infrastructuresmakes it the main market centre for coffee and cereal crop
productiveworedas of the zone and surrounding areas such as Illubabor zone oforomia region and
keficho shekicho and bench maji zone of southernregion and gambella region.The coverage of basic
infrastructure facilitiesare increasing dramatically in recent years following free market policy ofthe Fed
Regional Government of Oromia in particular.As has been the case in thepast, Government continuesits
commitment to give an opportunity forits national to invest on various feasible projects, with positive
presentvalue when compared to that of without project case. The coverage ofbasic infrastructure
facilities are increasing dramatically in recent yearsfollowing free market policy of the Federal
Democratic Republic of
Ethiopia’s (FDRE) in ge
neral and Regional Government of Oromia inparticular.With this understanding and inspired by current
fastdevelopment of the city, the applicant has developed strong desire ofinvesting in the town to
construct and operates
recreation centerEcologically
Jimma city lies in wet land Ecosystem .It is bounded by wet evergreenmountain forest land ecosystem.
Because of the climatic stability thegreen coverage of the city, is very significant and estimated to be
about35% including farmlands & vacant places. In the city green areas arefound long streets, in urban
parks, in public & private gardens, alongstream banks and flood plains, in stream and downstream,
ridges andhills and left over spaces.
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In spite of the rapid urban population growth and associated growingdemand for greenery during the
past 17 years, only few planned greenstructures, i.e. one municipal park (Aweytu), Aviation recreation
area,Boye recreation area, Millennium Park & three private parks weredeveloped for public greenery
and recreation in the city.
Area:
According to the current used master plan, Jimma city has the total areaof 4623 hectares. Information
on land zoning of the town shows, 25.7%of the total area of the town is to be covered by residential
buildings,2.65% by commercial activities, 4.01% by Industrial activities, 10.6% bysocial & public services,
2.6% by administrative zone, 15.4% is landreserved for construction of roads and the proportion of land
left forother infrastructures is about 39.1%.
For the proposed development to be feasible, accessibility plays a majorrole Before choosing project we
conducted feasibility studies and marketanalysis and identify the location that serve the market and
benefitgreatly and decided to settle at jimma townAwetu Menderakebele.Theproposed development
site is located within the jimma administrative cityAwetu kebele within the urban industrial area of
Jimma town.Theproposed project site is approximately2500m
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2. Service Description and Application
Recreational centers are places where people get entertainment andenjoyment. The facilities provided
include various indoor and outdoorgames, swimming pools, cinema halls and facilities to stage theaters
andmusic shows. At the same time these facilities also serve for conductingvarious ceremonies such as
wedding, and other assemblies. Thededicated sports facility is proposed to be provided by way of a
newCommunity Recreation Centre (including swimming pool, multi-userecreation hall, change rooms
and ancillary rooms and service areas). Itis to be integrated with the adjacent existing community sports
oval. Theproposed facilities are intended to balance the commercial and socialbenefits for all
community. to create a welcoming space to help cultivatea strong sense of community, promote health
and wellness in ourcommunity and support for the needs of local residents.There will also beindirect
benefits from complimentary development which will occuradjacent to the facility, promoting greater
business investment interest,regional awareness and tourism opportunities.The proposed
recreationfacility will enhance the tourism experience in many ways and createopportunities for
residents and businesses in jimma
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At present the recreational facilities available in the various are veryinadequate in terms of the type of
service and standards. As a matter offact, with the decentralization of government structures zonal
capitalshave become centers of important administrative functions as well ascommerce, industry,
education, etc. Accordingly, the population of theurban centers which are designated to be capitals of
respective zones hasincreased substantially. At the same time in these and other urbancenters of the
region the population number is increasing substantially.Nonetheless, there has not been a
corresponding increase in recreationalfacilities. For example, no indoor and outdoor games, no
swimmingpools, no musical shows, and no theaters in most of the places. Forexample if we assume that
10% of the population do pay visit to wellestablished recreational centers once in a week, then the
number ofindividuals in the target group would amount to 20,956 every month. This can be fairly
assumed as the current level of demand and at thesame time suggests the existence of ample demand.
Therefore, if wellequipped recreation facilities are established in zonal capitals, they willdefinitely have
enough customers.
3.1.2. Projected Demand
The future demand for recreational cervices in the zonal capital willincreases mainly due to population
increase. Moreover, the growth ofurbanization will attract additional traders, social workers and
familiesinto the towns. Consequently, the number of individuals that do visit theenvisaged type of
recreational services will also increase. In thisconnection if we assume that the number of population in
general
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17
increases by 3%, the target population will increases Substantially asshown in table 1 below.
According to the forecasted demand presented in table 1 above, thefuture is very promising provided
that quality and customer centeredservices are rendered by the recreational centers.
3.1.3. Pricing
The envisaged plant as a start up will focus on providing entertainmentactivities such as video games,
snooker, watching of video films andrefreshment drinks. Moreover, the center shall rent its hall
andcompound for weeding and meeting purposes. Based on the marketresearch result and the capacity
of the envisaged plant, the followingselling price is set.
• Birr 3 for one session video game• Birr 5 per snooker played
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• Birr 2,000 for renting the hall for weeding ceremony• Birr 600 per day for renting the hall for assembly
purpose• Birr 5 per person for watching video film and ;• Birr 15 on average per person for soft drinks,
hot drinks and food.
Nowadays the sphere of professional commercial activity is beingdeveloped rapidly in Ethiopia. There
are several operating modernhotel centers in large cities, the large amount of projects are
indevelopment and are going to entry into the market in the coming years. According to the plan
mentioned above for developing of the
providing them with safe and high quality goods and services in civilizedway, and also for making-up
principally new ways of market wholesaletrade providing goods that are high-performance and high-
demand oninner and outer market. In order to penetrate and gain considerablemarket share, one of the
major marketing strategies for the project isconsistently rendering quality service to its tenants. Due
emphasis mustbe placed on improving quality of service and facilities. The majormarketing strategies to
promote the project and gain considerable marketshare include:Advertising through different means
focusing on the existingservice and facilities Promote in association to the key location andnearby
business Working on sustained promotional work.organization with a capacity of making
decision.improvingwith changing situations.
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The marketing strategy for this new hotel is going to be driven basicallyby making available standard
excellent customer service and provision ofcomplimentary services. We will work hard to build a loyal
customerbase; customers that will always patronize us over and over again and aswell help us use word
of mouth publicity to get their friends andacquaintance to patronize us. Our marketing strategy is a
simple one:satisfied customers are our best marketing tool. When a customer leavesour business, they
know that they got the best price and service moneycan buy, our name and service will stand on its own
via our cheaperprocess and very competitive prices.In view of that, we are going to adopt the following
strategies to ensurethat we do not only attract customers but ensure that they become loyalcustomer.
Part of the marketing strategies that we will adopt is;Introduce our hotel by sending introductory
• Open
our business with a party so as to capture the attention ofresidence that is our first targets
• Advertise our our hotel on national dailies, local TV stations and local
radio station
• Promote online via our official website and all available social media
• Hire the services of experts to make our brands the first choice •
delivering consistent customer experiences to all our clients; making ourfirst impression count positively
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Thus, given the expected demand for the service, and the plannedtechnology, the envisaged plant is set
to attract the following number ofvisitors.
• 50 individuals per day for video game• 50 visitors per day to play snooker• 120 individuals per day t
The program is scheduled based on the consideration that the envisagedplant will work 300 days from 8
A.M till 8 P.M where the remaining dayswill be for maintenance. During the first year of operation the
plant willoperate at 70 percent capacity and then it grows to 85 percent in the2ndyear. The capacity will
grow to 100 percent starting from the 3rd year. This consideration is developed based on the
assumption thatmarket and logistics barriers would be eliminated gradually within thefirst two years of
operation.
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The raw materials used in providing the cervices stated earlier are mainlybeverages and various
ingredients used to prepare food.
The annual raw material and utility requirement and the associated costfor the envisaged plant is listed
in table 2 here under.
According to the above table the annual cost of material and utility at fullcapacity of operation is
estimated to be Birr 5 million
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5.1. Technology
The machineries and equipment required for providing the variousservices stated earlier is detailed in
table 3 below
The, total cost of machinery and equipment including is estimated to beabout Birr 4 million
The total site area for the envisaged plant is estimated to be2500m2 isallocated to the building for the
various game playing area, hall, café andrelated activities. The remaining space is left open compound.
Thefollowing outlines the functional components of the proposed multipleuse
Recreation Centre:
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lighting, Sewage collection from toilet facilities, Stormwater and runoffcollection, treatment and
disposal and screen fencing
Gymnasium
The envisaged gymnasium will composed of one machine room(200sq.mt), one Aerobics studio (100 sq.
mt)Laundry Center The laundry center provides in-house cleaning service to bed room, andsauna/stem
bathrooms by providing clean towels, linens, covers anduniform of the employees with the required
time and quantity. The mainprocesses of laundry center are sewing (if any), washing, and
squeezingdrying, folding and pressing. The laundry center will have a dailycapacity of providing 200
clean sets of towels, 300 sets of linen and cover100 sets of uniforms and other miscellaneous items.
ings, slidingstands, tunnels, merry go round, sand filled pits, and coin operated toyvehicles and different
kinds of arcade video games. The whole area of theplayground shall be free from any obstruction that
could result inaccident and the recreational tools are installed in such a way that theywill not cause any
accident. The arcade coin operated video game roomhaving an area of about 100 m2will be constructed
from prefabricatedmaterial with ventilation and lighting, and it will be carpeted. It shouldalso be free
from any visible electrical connections and free from anaccident or hazard. The provision of such service
doesn't have anyadverse impact on environment.
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The appropriate locations for the envisaged project in view of theavailability of infrastructure as well as
market for the output are jimmacity Awetu Mendera Kebele
activities include Bank loan processing construction of the building,cleaning the area around the
building, Procurement of equipment andstart rendering services. The time schedule for the above
matured majoractivities is presented below:
Activity
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The envisaged hotel requires 85 labor forces. The list of manpower andthe annual cost of labor is
indicated in Table
1 General manager 1 BA in management 3000 36,0002 Building admin 1 BA in Acct/Mgt 2500 30,0003
Secretary 1 10+2 in secretariat science 900 10,8004 HRM Officer 1 10+2 in HRM/Management 950
11,4005 Technical and maintenancemanager1 Diploma in building maintenance 1500 18,0006 Finance
head 1 BA in Accounting 2500 30,0007 IT Technician 1 Diploma in computer science/IT 1150 13,8008
Marketer 1 Diploma in marketing 1150 13,8009 Accountant 1 Diploma in accounting 1150 13,80010
Guards/Security 8 Basic 500 24,00011 General Service head 1 Diploma in Management 1500 18,00012
Purchaser 2 Diploma in purchasing &Sup Mgt 1150 13,80013 Electrician 1 10+2 in general electricity
1000 12,00014 Plumber 2 10+2 in general mechanic 1000 12,00015 Casher 4 10+1 in bookkeeping 850
20,400
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