Bench-Sheko Cultural Center

BEANCH-SHEKO CALTURAL CENTER AND RE
INVESTMENT PROPOSAL
Promoter:- Beanch –Sheko Cultural Center PLC

Mobile: +251913275506
PEOJECT LOCATION: Mizan-Aman City Administrative

PREPARED BY: HARABIL CONSULTANCE SERVICS PLC
Consultant Person: Abrham Astatike
Mobile Phone: 0911384833
BEANCH-SHEKO CALTURAL CENTER AND RESORT(PLC)
CONTENTS
1. PART-I. PROJECT ID......................................................................................................3
2. EXECUTIVE SUMMARY.....................................................................................................5
3 BRIEF DESCRIPTION OF THE PROJECT...................................................................9
3.1PROJECT BACKGROUND................................................................................................9
3.2HE PROJECT...................................................................................................................... 10
3.2.1 Purpose of the project..............................................................................................10
3,2.2 Objective and scope of the project........................................................................10
3,2,3 Strategies....................................................................................................................10
3.3 PRODUCT AND SERVICES............................................................................................11

4. SALES AND MARKETING.............................................................................................12
4.1 CURRENT INDUSTRY AND MARKETING OVERVIEW............................................12
4.2 SNNPR TOURISM TREND...............................................................................................13
4.3 HOTEL STATISTICS OF MIZAN_AMAN TOWN.........................................................13
4.4 Market Study.................................................................................................................... 14
4.4.1Present Demand and Supply..................................................................................14
4.4.2 Projected Demand.....................................................................................................15
4.5 TARGET MARKET............................................................................................................ 16

4.7PRICING STRATEGY.....................................................................................................17
4.8PROMOTION AND ADVERTISING STRATEGY...........................................................17

5. TECHNICAL ANALYSIS.................................................................................................19
5.1 PROJECT LOCATION DETAILS.....................................................................................19
5.2 LOCATION ADVANTAGES.............................................................................................19
5.3 Plant Capacity.................................................................................................................. 21
5.4 Production Program......................................................................................................... 21
5.5 Raw Materials and Utilities...........................................................................................21
5.5.1 Availability and Source of Raw materials..........................................................21
5.5.2 Annual Requirement and Cost of Raw Materials and Utilities.....................21
5.5.3 Utility............................................................................................................................21
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6. Technology and Engineering......................................................................................22

6.1 Production Process...........................................................................................................22
6.2 Machinery and Equipment............................................................................................22
6.3 Furniture and Fixture......................................................................................................23
6.4 Project Motor and Vehicle...............................................................................................23
7. PROJECT ORGANIZATION AND MANPOWER REQUIREMENT...........................24
7.1 FORM OF BUSINESS.......................................................................................................24
7.2ORGANIZATIONAL STRUCTURE...................................................................................24
7.3 Training Requirement..................................................................................................... 26
8. PROJECT IMPLEMENTATION SCHEDULE................................................................27
9. SOCIO-ECONOMIC AND ENVIRONMENTAL..............................................................28
9.1 SOCIO-ECONOMIC JESTFICATION.............................................................................28
9.2 EMPLOYMENT AND INCOME GENERATION............................................................29
9.3 ENVIRONMENTAL IMPACTS OF RESORT.................................................................29
10. FINNCIAL BUDGET.........................................................................................................30
10.1TOTAL CAPITAL REQUIREMENT................................................................................30
10.2 SOURCE OF FINANCE................................................................................................30
10.3 RETURN OF PROJECT INVESTMENT.......................................................................30
10.4 FINANCIAL RESULTS AND VIABILITY.....................................................................31
10.4.1 Profitability...............................................................................................................31
10.4.2 Cash flow statement and balance sheet.........................................................31
10.4.3 Payback period.......................................................................................................31
10.4.4 Internal rate of return and net present value.................................................32
10.5 Loan Repayment Schedule.........................................................................................32

11. ANNEXURE.......................................................................................................................33
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1. PART-I. PROJECT ID
The Applicant
Promoter Bench- Sheko Cultural Center, PLC
Region: South Nation Nationality Regional State,
Zone: Bench- Sheko Zone
Nationalities Ethiopian
The Project
Name Bench- Sheko Cultural Center and Resort
Address: Mizan-aman City Administrative
Region: South Nation Nationality Regional State
Bench-Sheko Zone, Mizan-aman City Administrative City
Zone: Administration
Project Details
Type of the project Cultural Center & Resort
Products To offer a complete package Cultural Center & Resort standard
of lodging and dinning, recreational amenities for
tourists/visitors
Status of the business: New

Investment Request
Date of Applications August 30.2019
Deal Manager Mr. Petiros Shiferaw
Land 2,500 m2 : Lease Agreement
Future ( Plan) 1000 m2 additional
3
Description of  To conserve the Beanch-Sheko people Heritage & Indigenous

Project /Purpose Culture
 To serve as a place where tourists, visitors, vacationers and
leisure travelers could stay overnight, dine, and enjoy the
breathtaking view of Mizan-AmanForest Coffee side landscape
of the forest with various endemic birds and tourisms
attractions.
 To offer a complete package Beanch-Sheko & Resort hotel for
tourists/visitors,
 130 bed rooms
 55 Single, 45 Classic, 25 Family , and 5 Suite
 And conference hall for different clients for holding
meetings/seminars.
 Will have also healthiness and recreational facilities like
Sauna and massage
Gymnasium and Swimming Pool
Children Play Ground
 Beauty salon, shops, and front desk services.
 Travel Agency
Benefiters of the project JOB CREATIONS for 63 Employees
Project Construction One Year
Duration
Project Investment cost 25.600 million Et.Birr,
4.358 Million Et.Birr is in foreign currency
Is estimates as Project Investment Cost for the establishment

of the Project,
Project Source of Project will be partial finance from bank loan
Finance :
25 % Entrepreneurs Equity (Cash)……. Birr 7.07 Million Birr
75 % Loan……………………..………. Birr 18.529 Million Birr
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2. EXECUTIVE SUMMARY
The present investment proposal study is established with view to establish
new business of promoter, at Mizan-Aman town , by Mr. Petiros Sheferaw,
Nega Tizaze, Giremaye G/Tsadiq and W/r. Tsehay TilahunBeanch-Sheko &
Resort hotel and to seek Investment license, investment land permit. The investment
land has extent of 2,596m2at Mizan-Aman town near the Bench-Sheko forest coffee
side view. The prompterwant to 2,500 m2 out of the total land currently and will
plan extension 1000 m2 in the future.
The proposed project is specialized in commercial cultural heritage and resort hotel
industry with land resort hotel supply products of 130 guest rooms, restaurant and
bar facility which can serve 500 persons, conference room, sauna and steam, and
boots service at the landscape side of Bench-Sheko fores coffee.
The present number of tourists expected to visit the region for the proposed service-
rendering project is estimated at 2,190 persons and it is projected to reach at
3,832 persons by the year 2020. The cultural heritage and resort will mainly
target domestic and foreign tourist travels along the southern tourist’s circuit route
and also,
 Indigenous affluent Ethiopians seeking to escape from daily routine of work,
home and urban life.
 Local foreign residents working with Non-government organizations, foreign
missions and business.
 Local newly married couples seeking beautiful places to spend honeymoon
time.
 Foreign tourists from seeking to have the sun, lake side resorts and admire
Nationality Museum of Ethiopia, SNNPRS people
 Corporate organizations seeking for quiet places for retreats.
 Business people with differing interests
 Mizan-Aman and nearby residents how want to have marriage ceremony at
garden
The Cultural center and ResortHotel investment cost is ET. Birr 25.600 million. The
allocation of investment cost is mainly on Site and building development accounts
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50% of total investment. The built up are of buildings covers480m 2and cultural
center 1,596 M2 from the total of requested investment land. The breakdown of
total investment (‘000 Birr) is follows,
Total
25,600,487
Working Capital
377,347
Pre-production costs
2,699,959
Motor Vehicle and Boat

1,522,560
Furniture & Fixture

2,835,824
Machinery & equipment.

7,672,838
Civil works & Buildings

9,565,700
Installation Cost
838,500
Land
87,760
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The financial studies show the resort provides an internal rate of return (IRR) of 55%
and a payback period of 4 years. These results demonstrate that the project is
viable and provides healthy returns to the promoters.
Some of social economic benefits
 The project will employ 63 workers in permanent employment bases for more
than 10 casual laborers every year.
The envisage resort and hotel will contribute to the national economy by,
 increasing the foreign exchange income of the country by directly or
indirectly contributing to the tourism industry of the county
 Benefit from the tax of the hotel operations.
 Benefiting all the actors’ in the chain of tourism industry from the rural
community at tourism site to tour operators, traveler agency owners, and
others who participate in the chain will benefit from this project.
Other Strategic Significance of Project

 Hotel and Tourism industry plays important role in economic
development of the country by creating revenue tax from occupancy and
other tourism activities in the hotel chain.
 The tourism sector is growing fast and stands as the third foreign
exchange earner, following coffee and oilseeds.
 The Travel and Tourism Industry contributes GDP 1426 (US$ million) or 9.2 %
of the total GDP, and create 7.2% of the job opportunity of the country in the
year 2020.
 Increase the present number of the national and international standard hotels
and Resort outside Addis Ababa the capital city of Ethiopia.
Some of opportunities and government strategies considered by the owner
when planning to invest of Resort are,
 Strong effort is underway to improve Ethiopia’s image for the world tourists,
 The government commitment to use tourism industry for the fight against
poverty,
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 The long-term vision of the government is to make Ethiopia one of the top ten
tourist destinations in Africa by the year 2020, with an emphasis on
maximizing the poverty-reducing impacts of tourism,
 The demand supply gap of Hotel industry in large and shortage of
tourist standard hotel and Resortin Beanch-Sheko administrative Zone.
To full fill his desire after looking the gaps and opportunities the PLC
membershas Proposed New Investment of Beanch-Sheko Cultural Center and
Resort Hotelover 2,596square meter area and investment of Et. Birr 25.600
million birr for the envisaged project
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3 BRIEF DESCRIPTION OF THE PROJECT

3.1PROJECT BACKGROUND
Hotel and Tourism industry plays important role in economic development of the
country by creating revenue tax from occupancy and other tourism activities in the
hotel chain. The tourism sector is growing fast and stands as the third foreign
The Travel and Tourism Industry contributes GDP 1426 (US$ million) or 9.2 % of the
total GDP, and create 7.2% of the job opportunity of the country in the year 2007.
The study conducted by World Bank forecasted the tourism and travel industry will
grow at the rate of 4% from 2007-2017. Ninety percent of the international standard
hotels are located at Addis Ababa the capital city of Ethiopia.
The study conducted by World Bank- Pro-Tourism Strategy of Ethiopia, Japan-

Embassy Hotel Industry Study, and SNNPRG tourism strategy shows that un-
availability of international standard outside Addis Ababa along the tours circuit is
one of the major problem for the development of tourism industry of Ethiopia.
Various studies also shows that the supply of bed rooms of Ethiopia is least when
compared to other African courtiers has highest income from tourism sector but with
lowest number of tourist attraction heritage and natural resources cites.
The hotel industry and tourism growth expected to be increased due to the following
development observed at the senior and potentials,
 Ethiopian Air Lines provides international flights and connections to most
parts of the world. Ethiopia is reasonably well connected by international
flights and Ethiopian Air Lines has one of the best reputations amongst
African national airlines (World Tourism Organization, 2004).
 Presence of various International organizations has their offices in Addis
Ababa.
 Strong effort is underway to improve Ethiopia’s image.
 The government is committed to use tourism in the fight against poverty
 The involvement of the private sector, community and donor agencies is
growing significantly.
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 Ethiopia is still an untouched country and many tourists recommend visits to

Ethiopia
 The long-term vision of the government is to make Ethiopia one of the top ten
tourist destinations in Africa by the year 2020, with an emphasis on
maximizing the poverty-reducing impacts of tourism.
Having in to considerations all above bright opportunities, demand supply gap of
Hotel industry, and location advantages of Mizan-Aman being one of tourist
destination , location advantage of being on tourist circuit paths of Southern
Ethiopia, and tourism attraction potential of Beanch-Sheko Zone and its forest coffee
landscape, Beanch-Sheko Couture Center and ResortPLC planed and started
the envisaged Couture Center and Resort Investment Project over the area of
2,500m2 at the road side of Mizan-Aman town.
3.2 THE PROJECT

3.2.1Purpose of the project
 To serve as a place where tourists, visitors, vacationers and leisure
travelers could stay overnight, dine, and enjoy
 To offer a complete package three star resort and hotel lodging ,dining,
and recreational services for tourists/visitors to international and domestic
ones .
3,2.2 Objective and scope of the project
The prime goal is to be food sufficient and others include:-

 To maximize the owners profit earning from over all activities of the project,
 To generate foreign exchange by tourism products sales ,
 To fulfills government plan targets 2020.
3,2,3Strategies
In order to realize objectives the overall development program will incorporate the
following major strategies in relation to this envisaged project.
 First the certificate of investment and land is received to the project
 Temporary fencing and landscape works followed with building constructions
 The required machineries for the activities of the project are purchased and
imported
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 Furnishing with different cultural and modern furniture’s

 Employing of 66 employees and training
 Launch different marketing and promotionalactivities
 Start up
3.3 PRODUCT AND SERVICES
Beanch-Shekocultural Center And Resort Hotel there will have a plan to provide
accommodation and amenities.
 130 different designs single, classic family and , suites, rooms
 Assembly Hall
 Sauna with reception, bath, rest room, changing room , and foot bath facility
 Gymnasium with international standard machinery and other facility
 Swimming pool
 All other Service required for Three sitar hotel standard of SNNPRS
 Beautifully landscaped gardens, which will host weddings, meetings,
seminars or other events.
 Restaurant with bar, Laundry services ……etc.
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4. SALES AND MARKETING

4.1CURRENT INDUSTRY AND MARKETING OVERVIEW
Tourism is vital for the Ethiopia economy providing 9.2 % of GDP and 7.1 % of the
total employments in year 2007 according to World tourism organization report
valued at around US$ 1426 million. The long-term vision of the government is to
make Ethiopia one of the top ten tourist destinations in Africa by the year 2020,
with an emphasis on maximizing the poverty-reducing impacts of tourism.
The basis of Ethiopia’s tourism product is cultural, historical and natural sites. This
demand of tourism products of Ethiopia could be split into two distinct product
identities, a) a northern historic circuit and b) a southern ethnological and nature
based circuit. These two products account for more than 95% of tour packages sold
to Ethiopia
Fig 3-1 Tourism circuit of Ethiopia

International tourist arrival to the Region has shown a gradual growth every year.
Most international tourist comes to the SNNPRS to appreciate the untouched culture
of the diverse ethnic communities and the associated natural attractions. The ethnic
communities in Debub Omo including Hammer, Bena, Mursi, Ari and their cultural
practices as well as the Dorze and Konso people cultural practice are very well-
known and visited by many foreigners. Besides, NechSar and Mago National Parks
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are among the natural attraction found along the destinations visited by the tourist
together with the cultural practices of the communities.
In the recent years, the tourism sector in SNNPRS is encouraging and shows a
promising performance. The great promotion made for the Ethiopian millennium had
stimulated many Ethiopian Diasporas and foreigner to visit the country in 2008.
Tourism earning in the region increases by 46.6 % from 12,739995 Birr in 2007 to
23, 852410 Birr in 2008 (almost 50% increment).
4.2SNNPRTOURISM TREND
This growth rate in tourist arrivals in 2006/7 to 2007/8 due to Ethiopian millennium
quite impressive at 208% compared to the growth rates achieved in 2008/9 to
2009/10 which is 31 %. The average annual growth of tourists flow to SNNPR
regintown has shown 70 % at national tourist’s arrivals and 93 % at foreign tourist’s
arrivals and the target included Beanch-Sheko Zone.
Table 1: Summary of International Tourists by Purpose of Visit 2006-20010
Summary of International Tourists by Purpose of Visit 2006-20010

Year Nationals arrivals Foreigner arrivals Total
No % No % increase No % increase
increase
2006/7 19136 2532 21668
2007/8 57904 203% 8868 250% 66772 208%
2008/9 45212 -22% 8674 -2% 53886 -19%
2009/010 58405 29% 12452 44% 70857 31%
Average 45164 70% 8132 97% 53296 73%
Source: SNNPR Tourism Office
4.3HOTEL STATISTICS OF MIZAN_AMAN TOWN
The following table shows major hotels currently operating at Mizan-Amanthat could
have a market share with the envisage hotel are listed at regional tourism bureau
information’s and adding additional hotels not included in the tourism bureau
information but found by market research survey of the consultants. The total
number of establishment Hotel is 6 in number, 412 rooms, only considered as
compotators. The list of other hotels with amentias is attached at annexed
documents.
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TABLE 2: HOTEL ROOM SUPPLY AT WONIDOGENT-2010

HOTEL ROOM SUPPLY AT WONIDOGENT-2010
NAME OF HOTEL NO OF BRANCH NO OF NO OF BED
ROOM
Salayishe Hotel 1 100 100
Lewi Hotel 1 80 80
Birhan Hotel 1 60 60
Beanch Fire Hotel 1 75 75
GieenHotel 1 30 30
Others Hotel 1 67 67
6 412 412
Source : SNNPRS-Tourism Bureau and Consultant Survey
The situation in Bench-Sheko Zone tourism reception and its service is even worse.
On the one hand, its tourism potential is diversified: natural attractions that include
some of the highest and lowest places and forest coffee landscape in the project
area along with immense wild life including some endemic ones; a very old and well
preserved historical traditions with fascinating and natural forest, to witness that,
an attractive cultural diversity of about 5 nations and nationalities; and various
ceremonies and rituals of the Bench-Sheko and the surrounding place. Therefore,
this envasged project is vital attraction for tourism attraction.
4.4 Market Study

4.4.1Present Demand and Supply
The SNNPR Region encompasses one the major tourist attraction centers of the
country. The major ones are Natural coffee forest is the curdle of world coffee
biodiversity towns. These tourist attraction sites are registered under UNESCO as
world heritage centers. A number of domestic and foreign tourists visit these sites
every day.
Bench-Sheko Natural Forest Coffee is one of the most centers of attraction for both
domestic and local tourists which is visited almost every day throughout the year.
Of course, there are more tourists during the coffee production season.
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Usually most tourists arrive at the coffee blooming period around September to
October in the morning when it is hot at thesite. While watching the cascading of the
forest coffee in the fall, they need drinks, shelter from the hotsun and sometime
snack. But unfortunately there are no facilities to provide these services. Ifthere
were hotels and restaurants, many tourists could have made overnight stay at
Mizan-Aman town.
They would have preferred to watch the nature at sunset or sunrise. They could
have wanted to hear the sound of the wild animals and birds during the night. They
could have experienced what it feels during the night in rural Bench- Sheko Zone
where there are no noises of urban life. In short, they could have preferred to stay
near the nature watching. But thereis nothing there to make them stay. No
standard hotel, no restaurant, not even a shade, not even a food stand.Not even an
umbrella in other places, in other countries, all sorts of tricks are made tomake
tourists stay longer and spend more.They leave soon because there is nothing to
make them stay longer eventhough they are attracted by the natural beauty of the
fore’s landscape. The sooner they leave the less theyspend.
4.4.2 Projected Demand

Tourism industry is one of the potential sectors of the country to generate foreign
currency. Its contribution towards export and GDP growth is increasing. For
example in 2007 tourism has arrivals growth rate19% and contributed revenue
47% to the country's foreign currency and GDP growth, respectively,As indicated in
table 3 bellow, the number of tourists arriving in Ethiopia and receipts from
international inbound tourism is increasing from year to year.
Table 3: Tourists arrived in Ethiopia and corresponding Receipts
Year Arrivals GR% Revenue (in "000" Birr GR%
2002 428,000 252,000
2003 432,400 1% 577,800 129%
2004 510,154 18% 542,000 -6%
2005 603,335 18% 778,000 44%
2006 715,181 19% 676,000 -13%
2007 849,622 19% 991,200 47%
2008 1,011,448 19% 1,117,781 13%
2009 1,206,490 19% 2,567,894 130%
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Total 5,756,630 113% 7,502,675 343%

Averag
e 719,579 14% 937,834 43%
Source: Ministry of Culture and Tourism, tourism Statistics, 2002-2009, No 8
The number of tourists who had visited the national heritage during the last eight
expect 2004 indicates that there is sufficient demand for the services of a small
hotel and restaurant. Like many other tourist sites, the market for this hotel and
restaurant could be seasonal, but it can be profitable by working during the
“tourist season”. The hotel and the restaurant do not have to be very sophisticated
and expensively built. All they need is to be extremely clean and comfortable with
reasonable prices and efficient services. The food must be simple but carefully and
cleanly prepared and cooked. These are what “ferenjis” want in 3 rdworld countries.
Besides serving tourists, the hotel and restaurant at Bencha-Sheko cultural and
resort project could be a good recreationalcenter for wedding and also for
occasional ceremonies like Labor Day, graduation day, shortconferences and
trainings of Bench-Sheko and its surrounding towns. On the other hand, as GDP
and per capita income of the population increase local people will tryto spend their
leisure time with their families in such a resort, just like "ferenjis” do.
In this respect it is of paramount importance to establish neat, clean and medium
modern and traditional cultural center and restaurant at the Beanch-Sheko
Cultural and Resort project that could accommodate foreign and local tourists so as
to enjoy the beauty of the fores coffee landscape during the every year.
4.5 TARGET MARKET

Business Owners & Workers - Most of them work early in the morning, so the
Resort will open at 6:30. This group includes managers, factory employees, retail
clerks, professionals, tradesmen, laborers, and other food service workers. This
group will form the base clientele, as many will be repeat customers. A number of
tradesmen have promised to patronize the coffee shop & café every day. Fast,
accurate service will be provided, as these customers often have limited time to eat.
Local Residents & Workers- Small ads will be placed weekly in the coffee café
section of the local newspaper. Specials will be promoted with an A-frame sign and,
during slow periods, coupons and “2-for-1” deals will be offered. Menus will be
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distributed to local businesses and faxing in orders will be encouraged. Take-out

will be attractively boxed and given equal priority to sit-down services.
Tourists – The Ethiopia tourism well become increased and will be the potential
source of coffee tourism industry. Menus will be distributed to the local lodging
establishments to encourage their guests to come to the coffee resort.
Advertisements and listings will be placed in statewide and regional tourist guides
and publications. Menus will also be placed at information booths and other spots
likely to have tourist traffic
4.6 PRICING AND DISTRIBUTION
Pricing of a hotel and restaurant services could be classified into three main
categories i.e. food, beverage and bed rent. In this regard the daily average price
by category of service is given in table 4 bellow. Type of food to be prepared at this
site is more of "ferenji" culture.
Table 4: Average price of service by category
Type of Service Unit Price in Birr
Food 200/ meal / person
25 /bottle(excluding
Beverage whisky)
Bed Rent local 200/night/ person
CLASIIC ROOM 700
FAMILLY ROOM 1200
SUITE 3200
4.7 PRICING STRATEGY

The Beanch-Asheko Cultural and Resort PLC Project primarily utilizes competition
based pricing. The resort does not utilize coupons and discounts (other than opening
promotion) because they believe that the most valuable customer demographic of
daily coffee consumers is not influenced by discount programs or coupons..
4.8 PROMOTION AND ADVERTISING STRATEGY

Online Advertising - The Beanch-Asheko Cultural and Resort PLC Project will
advertise regularly on popular social media sites, such as Facebook. Compared to
traditional print advertising, this is a cost effective tactic that will allow them to
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reach prospects in a highly targeted way (e.g., based on criteria such as age,
gender, geography, etc.).
• Web Site - the Beanch-Asheko Cultural and Resort PLC Project will develop a
simple Web site, which will provide basic information about the business, the menu,
and links to their presence on the aforementioned social media channels.
• Radio Advertising - During the first six months of operation, and during the busy
holiday shopping season, the business will advertise on local radio stations
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5. TECHNICAL ANALYSIS
5.1PROJECT LOCATION DETAILS
Mizan- AmanTown is one of the coffee production administrative town in Beanch
Maji zone known for predominantly growing coffee. It is located 562km West of
Addis Ababa and about 7 km from Beanch-Sheko Zone capital city of Mizan town.
Based on the 2007 Census conducted by the Central Statistical Agency of Ethiopia,
Mizan and Mizan- Aman Town the number of total population of 242,658, of
whom 122,918 are men and 119,740 women; 30,348 or 12.51% of its population
are urban dwellers.
Location of a fuel station is determined by the availability of infrastructure and

distance to potential market areas. Potential suitable area selected for the
establishment modern fuel station that contains track washing and parking services
drivers lodging and store house for storage of oil rental and cafeteria and restaurant
service at specific site of Aman Kifele Ketema.
Aman Kifele Ketema is one of Mizan town kifele ketema in Beanch-Sheko Zone. It
lies on the international road, and has a latitude and longitude of 7°3′N
38°28′E7.050°N 38.467°ECoordinates: 7°3′N 38°28′E7.050°N 38.467°E and an
elevation of 1708 meters above sea level.
The locality of this project is technically feasible for establishment of modern fuel
station that contains track washing and parking services drivers lodging and store
house for storage of oil rental and cafeteria and restaurant service as it full files fuel
station and cafeteria and restaurant service establishment.
5.2 LOCATION ADVANTAGES

Commercial, business, infrastructure advantages being at Miza-Aman town a town
of Aman
 Being located at near to the international high way of Ethio-South Sudan;
 Availability of well -developed social and economic infrastructure facilities
such as modern telecommunication, electric power, higher education and
financial institutions, etc.
 The presence of abundant, easily trainable and inexpensive labor force in the
town and surrounding rural area;
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 An ideal transit spot for tourists; hot sprig and delicious fruit
 Site location on theMizan-Aman city the beautiful forest coffee landscape.
 Near natural forest coffee natural forest the availability of abundance and
variety of the birdlife
 The sun sets over the volcanic hills to the west of the forest coffee area
natural forest are most rewarding pleasures for guests.
The total land area is assumed to be 2,596 m2. The following table shows the
proposed space program with the various planned outlets and their respective areas
in square meters.
Table 5: GENERAL LAND UTILIZATION PLAN
GENERAL LAND UTILIZATION PLAN
S P A C E P RO G RA M PERCENTAGE T O T A L( M 2)
Total Project Area 1,500
Main terrace Building 23% 300
Other Buildings 10% 110
Children Play Ground 10% 100
Out Door Game 10% 120
Parking Lost 26% 146
Access Road 10% 110
Garden 15% 210
GRAND TOTAL 2596
Future Expansion 1,000
The total Cultural Central& Resort building space program shows that building has
2,596 m2 built up area. The following table shows the proposed space program with
the various planned outlets and their respective areas in square meters.
Table 6: S P A C E P RO G RA M UTILIZATION PLAN
TOTAL COST
COST ITEM U OM QAN. U NIT COST
(BIRR)
1. BU IL DING
Res ort M2 480 4,000.00 1,920,000.00
Cultura center M2 1,500.00 3,000.00 4,500,000.00
1980 6,420,000.00
2. OTHER BU IL DINGS
Service with laundry, Storage, and
M2 295 3,800.00 1,121,000.00
maintenance facility
L and s cope des ign and garden m2 400 1,500.00 600,000.00
Sub total 600,000.00
3. WATER SU PPL Y / TREATMENT/ DISPOSAL
Bore hole Pcs 1 350,000 350,000.00
Was tes Water Sys tems Ls 1 150,000 150,000.00
Sub total 500,000
3. OTHERS-CIVIL WORKS
Perimeter fencing Ml 440 1200 528,000
Parking L ot and Acces s M2 200 1200 240,000
Main gate and acces s No 2 15000 30,000
Sub total 642 798,000
Total (1-4) 8,318,000
Contingency ( 15 % ) 1,247,700
Grand total 9,565,700
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5.3 Plant Capacity
Working days are assumed to be 365/year for food and beverage and 300/ year.
The attainable capacity and revenue of the proposed hotel and restaurant for each
category of service is estimated as follows.
Production years Quantity/day Annual

Capacity Revenue In
Birr
Bed Rooms 130 10,950.00 11,683,656
Food 99 19,800 7,227,000
Beverage 247 20,650 7,537,250
Other Operation
Departments Revenues - 1,659,218
Total Revenue 40450 28107124
5.4Production Program
The service program of the proposed hotel and restaurant is assumed to start at
80% in the first year and increases by 10% until 100% is reached in the second
year.
5.5 Raw Materials and Utilities

5.5.1 Availability and Source of Raw materials
Required raw materials for hotel and restaurant service include food items,
beverages (hot and cold), room clothing, detergents and the likes. All raw materials
are available in the domestic market
5.5.2 Annual Requirement and Cost of Raw Materials and Utilities

The cost of annual requirement of raw materials of the project is estimated as
percentage of the respective service revenue as indicated in table 7 bellow
Table 7: Cost of raw materials as percentage of Revenue
Service Revenue Percentage Cost

Food 7,227,000 40 289,080,000
Beverages 7,537,250 60 452,235,000
Bed rent 11,814,513 20 236,290,264
Other Operation Departments
14,760,000
Revenues 1,476,000 10
Total 28,054,763 992,365,264
21
5.5.3 Utility
Utility cost of the project is estimated to be about Birr 30,000 per annum and cost of
office furniture is Birr 5,000
6. Technology and Engineering

6.1 Production Process
The main processes of establishing modern hotels and restaurants at Beanch-
Sheko Caltural Resort PL project include studying the market, securing land,
constructing buildings, equipping and furnishing the buildings and starting the
operations of the businesses.
6.2 Machinery and Equipment

Machinery and equipment required for a modern hotel and restaurant could broadly
be classified into four categories. These are;
 Bed room furniture,(includes beds, mattress, blankets, bed sheets,
tables, chairs, cap boards, etc)
 Hotel furniture and equipment’s (tables ,chairs, glasses etc)
 Restaurant furniture and equipment’s ( tables, chairs, refrigerator,
glasses, etc)
 Kitchen utensils ( forks, spoons, trays, dish, deep freezer, etc)
Estimated cost of such Machinery and Equipment for a Cultural Center and Resort
traditional hotel and restaurant is estimated in table 8 bellow.
Table 8: Estimated cost of furniture and fixture of the project
Units UOM Quantity Rate Cost
USD USD
GENERAL
TV Set Set 2 3,500 7,000
Multimedia (DSTV) set 2 2,045 4,090
Conference Room Equipment Set 2 4,500 9,000
Internet Eq Set 1 1,200 1,200
Sound and Security Systems Set 2 3,682 7,364
Health club equipment set 1 5,000 5,000
Sub-Total 33,654
FRONT OFFICE
Fax machines set 2 409 818
Money Safe set 40 164 6560
Office Requirements sets 1 1,136 1136
22
Units UOM Quantity Rate Cost

Computers set 6 682 4092
Printers set 2 227 454
Sub-Total 13,060
BED ROOMS
TV Set Set 75 540 40,500
Refrigerator set 75 800 60,000
Fridge Medium Set 1 545 545
Sub-Total 175,291
KITCHEN FACILITY
Kitchen equipment set 2 1,818 3,636
Cold Rooms Set 1 4,318 4,318
Dish Washing Eq Set 2 3,500 7,000
Restaurant equipment set 1 5,455 5,455
Sub-Total 20,409
OTHER FACILITY EQUIPMENT
Generator set 1 6,500 6,500
Laundry and Washing machines Set 1 4,545 4,545
Solar Systems set 1 4,545 4,545
Children outdoor and indoor
set 1 3,000 3,000
game equipment’s and accessories
Others set 1 1,136 1,136
Sub-Total 19,726
Total Cost In USD 262,140
Grand Total in Ethiopia BIRR 7,672,837.80
6.3 Furniture and Fixture

Estimated cost of such furniture and fixture for a traditional hotel and restaurant is
estimated in table 9 bellow
Units UOM Quantity rate Cost
Bed Room Furniture Single Set 55 500.00 27,500
Bed Room Furniture Classic Set 45 700.00 31,500
Bed Room Furniture Family Set 25 789.00 19,725
Bed Room Furniture Suite Set 5 2,110.00 10,550
Restaurant furniture’s Set 1 3,000.00 3,000
Bar Furniture Set 1 2,500.00 2,500
Swimming Pool Furniture Set 1 2,110.00 2,110
Total In USD 96,885
T otal Cost in Ethiopia Birr 2,835,823.95
6.4Project Motor and Vehicle

Estimated cost of Project Motor and Vehicle for a traditional hotel and restaurant is
estimated in table 10 bellow
23
Motor V ehicle
RAT E COST
EQUIPMENT UNIT QT .
USD USD
Mini Bus Set 1 12,000 12,000
Bus Set 1 25,000 25,000
Station Wage Set 1 15,000 15,000
Grand T otal ( USD ) 52,000
Grand T otal ( Et. bIrr ) 1,522,560.00
7. PROJECT ORGANIZATION AND MANPOWER REQUIREMENT

7.1 FORM OF BUSINESS
The business will is categorized Land Scape resortof Commercial Resort Hotel (Class
Three Star Hotel).Industry and is planned to registered under the name “Beanch-
Sheko Caltural Resort PL project”. The firm is as a proprietorship and owned by
the company members. .
7.2 ORGANIZATIONAL STRUCTURE

After a thorough assessment of the organizational structures of the existing similar
hotelindustry and the advice given by the selected expertise in Hotel management
fields and after revise of standards of the Country in the criteria of three sitar hotel,
the consultant has proposed the following organizational structure and following
manpower
Figure 2: Organizational Structure of the Hotel
24
MANGER OFFICE
HOTEL MANGER
ROOMS DEPARTEMNT
F & B DEPARTEMNT
OTHER SERVICES
ADMINSTRATION AND ACCOUNT
MARKETING AND SALES
25
Estimated cost of such Manpower Requirements Estimate for a project is

estimated ETH.NIRR 1,520,604 and their qualification described in table 9
bellow
Table 11: Manpower Requirements Estimate
EDUCATIONAL LEVEL EXPERIENCE NO OF

Title/Designation
EXPERIENCE (YEAR) PERSONS
MANAGER OFFICE
General manager BA in Hotel Managements 8 1
Accounts/Admin Officer BA in Accounting 3 1
Residents Hotel manager BA in Hotel Managements 5 1
Secretary casher Dip. In office management. 2 1
Messenger and cleaner 8th grade 1 1
Sub-Total 5
ADMINISTRATION AND ACCOUNTS
Accounting Clerk Diploma in Book Keeping 2 2
Purchaser Dip. Purchasing and Supply 0 1
Driver 3rd Grade License 2 4
Store Certificate in store management 2 1
Sub-Total 8
Maintenance and Security
Plumber TVT Collage 10+ 3 1 1
Electrician TVT Collage 10+ 3 1 1
Guard Experience 5
Technician 10+3 Building constructions 2 1
Gardener Certificate 2 2
Sub –total 10
MANAGEMENT AND ADMINISTRATIONS TOTAL 13
HOTEL SERVICE
Front Office Manager Dip. in Hotel Managements 2 2
Receptionist Certificate In hotel management 2 2
House Maid 8th grade 2 6
Laundry Machinist TVT Collage 10+ 3 2 1
Laundry Assistant Experience 2 2
Sub-Total 13
FOOD AND BEVERAGE
Food & Beverages Chef Diploma in food preparations 2 1
Assistant chefs Certificate in food preparation 2 2
Cooks Certificate in food preparation 2 1
Stewards /Waiters Certificate 2 14
Butchery Experience 1 1
Sub-Total 19
TITLE/DESIGNATION EDUCATIONAL LEVEL EXPERIENCE NO OF
25
EXPERIENCE (YEAR) PERSONS
OTHER SERVICES
Other Services manger Dip. in Hotel Managements 2 1
Gym Trainer Certificate 2 1
Spa and sauna Certificate 2 3
Taxi Driver 3rd Grade License 2 2
Sub-Total 10
HOTEL SERVICE AND PRODUCTION TOTAL 39
MARKETING AND SALES
OFFICE
Marketing officer B.sc in Marketing 2 1
Management
Sub total 1
HOTEL SERVICE AND PRODUCTION TOTAL 63
7.3 Training Requirement

Training of key personnel shall be conducted in collaboration with the suppliers
of the project service and machineries. The training should primarily focus on
the service providing and Resort machinery maintenance and trouble shooting.
Birr 40,000 will be allocated for training expense
26
8. PROJECT IMPLEMENTATION SCHEDULE

During the implementation period of the envisage Commercial Loge and Resort
project implementation the different activities likely to be undertaken have
been classified as follows based on activities category and schedule in one-
year period as shown in the activity chart shown at table -12
Table 122: Gant Chart of Pre-operating Activities year and months
Gant table of Pre-operating Activities
year and months
ACTIVITIES
1 2 3 4 5 6 7 8 9 10 11 12
Preparation phase -1
Acquiring investment certificate
Finalizing the necessary formalities
and securing the land
Preparing Design and BOQ
Machineries , Vehicle, and Equipment
Bid
Construction phase
Site work
Building and Site Work
Preparation Phase-II
Purchase Machineries and Equipment
Manpower recruitment
Training to Technical Staff
Preparation to Service –Marketeering
and Inaugurations
Full Scale Services
27
9. SOCIO-ECONOMIC AND ENVIRONMENTAL

9.1 SOCIO-ECONOMIC JESTFICATION
Based on the earlier assessment and analyses, we can learn that the proposed
project possesses a wide range of benefits that complement the financial
feasibility obtained later. The project has various socio-economic benefits in
that it would generate profit to the promoters; provide employment opportunity,
increasing theforeign exchange income, Benefiting all the actors’ in the chain of
tourism industry. Some of these benefits are briefed as follow:
Some of social economic benefits
 The project will employ63 workers in permanent employment bases for
more than 10 casual laborers every year.
The envisage resort will contribute to the national economy by,
 increasing the foreign exchange income of the country by directly or
indirectly contributing to the tourism industry of the county
 Benefit from the tax of the hotel operations.
 Benefiting all the actors’ in the chain of tourism industry from the rural
community at tourism site to tour operators, traveler agency owners,
and others who participate in the chain will benefit from this project.
Other Strategic Significance of Project
 Hotel and Tourism industry plays important role in economic
development of the country by creating revenue tax from occupancy
and other tourism activates in the hotel chain.
 The tourism sector is growing fast and stands as the third foreign
 The Travel and Tourism Industry contributes GDP 1426 (US$ million) or
9.2 % of the total GDP, and create 7.2% of the job opportunity of the
country in the year 2007.
 Increase the present number of the international standard hotels and
Resort outside Addis Ababa the capital city of Ethiopia.
28
9.2 EMPLOYMENT AND INCOME GENERATION

Consequently the project creates income of Birr 1,520,604 per year. This
would be one of the commendable accomplishments of the project.
9.3 ENVIRONMENTAL IMPACTS OF RESORT

Tourism, as any other economic activity, impacts the environment. Some the
major impacts are as follows
 Some of operational phase impacts at similar resorts
 The high consumption of fuels, electricity, food and water, the
generation of solid waste and the emission of pollutants confirm
 Loss or imbalance of fauna and flora biodiversity, including areas of
ecological interest.
 Reduction or shortage of quality water from public supplies to meet
the demands of touristic enterprises.
 Sanitary problems due to the production of solid waste and the
problematic of its disposal, and also the generation of residuary
water (effluents), especially in protected areas.
 Pollution of water
 Construction period impact- during constructions
Environmental Impact Assessment (EIA) poses as a widely spread tool,
potentially efficient in the prevention of environmental damage and in the
promotion of sustainable development will done prior to with project design.
The impact mitigation measures and monitoring plan will keep the Environment
Beanch-Sheko Caltural Resort PLC project.
29
10.FINNCIAL BUDGET
10.1 TOTAL CAPITAL REQUIREMENT
PROJECT ECONOMICS
CAPITAL COSTS Et Birr
Land acquisitions and development cost 87,760
Installation Cost 838,500
Site and Buildings 9,565,700
Machinery & equipment. 7,672,838
Furniture & Fixture 2,835,824
Motor Vehicle 1,522,560
Pre-production costs 2,699,959
Sub total 25223141
Working Capital 377,346.5
Sub total 5,000,000
CAPITAL INVESTMENT + WC 25,600,487
10.2 SOURCE OF FINANCE

Items Total Cost Fund Allocation
Loan Equity
Land acquisitions and development
cost 87,760 - 87,760
Installation Cost 838,500 - 838,500
Building and civil works 9,565,700 6,695,990 2,869,710
Furniture & Fixture 2,835,824 2,268,659 567,165
Vehicles 1,522,560 1,522,560 -
Machinery & equipment. 7,672,838 7,672,838 -
Total fixed investment cost 22,523,182 18,160,047 4,363,135
Pre production capital expenditure 2,699,959 - 2,699,959

Total initial investment 25,223,141 18,160,047 7,063,094
Initail Working capital at full capacity 377,347 369,800 7,547
Total Project Cost 25,600,487 18,529,847 7,070,641
Share 100% 72% 28%
10.3 RETURN OF PROJECT INVESTMENT
PROJECT RETURN BEFORE TAX
NPV ( Birr ‘000) 172,474
30
IRR 55%
PAYBACK PERIOD( Years) 4
10.4 FINANCIAL RESULTS AND VIABILITY

10.4.1 Profitability
According to the projected income statement, the project will start generating
profit in the first year of operation. Important ratios such as profit to total sales,
net profit to equity (Return on equity) and net profit plus 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.
10.4.2 Cash flow statement and balance sheet

The cash flow statement for the first 10 years of operation of the Resort has
been worked out based on profitability estimates. Based on the cash flow
statement, the projected balance sheet for the first 10 years of operation has
been forecasted. It may be seen that the Resort would have comfortable cash
position throughout the first 10 years of the loan period and also that the
reserve and surplus position have a steady growth during these years
indicating a healthy position of the firm
10.4.3 Payback period
The investment cost and income statement projection are used to project the
payback period. The project’s initial investment will be fully recovered within 4
years.
1,800,000,000
1,600,000,000
1,400,000,000
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
-
(200,000,000) 1 2 3 4 5 6 7 8 9 10 11
31
10.4.4 Internal rate of return and net present value
Based on the cash flow statement, the calculated IRR of the project is 55%
before tax and the net present value at 10 % discount rate is birr 177million
The NPV is calculated by subtracting the present value of all the costs incurred
for the project from the present value of the stream of benefits. As shown
below, the resulting NPV value is greater than zero; which implies that the
project is acceptable (profitable).
10.5 Loan Repayment Schedule

The loan repayment period is simply defined as the period (i.e. the number of
years) required paying the principal and interest of the original investment cost
throughout the project life. The business result obtained reveals that the
investment is financially viable and has a healthy cash flow forecast. The
outcome of the financial analysis reveals that: based on the following
repayment schedule were paid annual based. For the detailed information
shown below the table
Year Amount of Principal Instalment Interest Total

Outstanding due Payable at 12% Amount
1 18,529,847 3,088,308 2,223,582 5,311,889
2 15,441,539 3,088,308 1,852,985 4,941,292
3 12,353,231 3,088,308 1,482,388 4,570,695
4 9,264,923 3,088,308 1,111,791 4,200,099
5 6,176,616 3,088,308 741,194 3,829,502
6 3,088,308 3,088,308 370,597 3,458,905
26,312,382.
Total 18,529,847 7,782,536 1
32
11.ANNEXURE
11.1 INVESTMENT COSTS BREAK DOWN
11.1.1 Land acquisitions and development cost
1.Land acquisitions and
development cost
Cost item Unit Qnt Unit cost Total cost (Birr)
Land accusation Lease Payment m2 2,100 0.8 7,560
Temporary Fence Buildings Ml 440 125 55,000
Site clearing to remove tree and shrubs M2 2,100 12 25,200
Sub total 87,760
11.1.2 Pre-production costs

TYPE OF EXPENSES ASSUMPTIONS COST
Ocean Freight Cost 7% Of FOB machinery price 1,043,725
Insurance cost for foreign purchase 5% Of FOB machinery price 745,518
Installation Cost 3% Machinery Cost 235,391
Training and skill transfer 2% Machinery Cost 156,927
Spare Part 2% Of FOB machinery price 206,927
Amine Cost 1% of Investment 201,471
Total in Birr 2,589,960
33
12. FINANCIAL ANALYSIS

12.1 REVENUE ASSUMPTIONS ON AND PROJECTIONS
12.1.1 SUMMARY Revenues
Produc tion years Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8 Y-9 Y-10
Summary Revenue unit
Revenue of Bed Rooms Rent ( Birr ) 11,814,513 19,846,307 23,442,962 24,615,069 25,845,781 27,138,028 28,494,888 29,919,591 31,415,529 32,986,264
Food Revenues 7,227,000 11,382,525 17,927,477 28,235,776 44,471,347 70,042,372 110,316,736 173,748,859 273,654,453 431,005,764
Beverage 7,537,250 11,871,169 18,697,091 29,447,918 46,380,471 73,049,242 115,052,555 181,207,775 285,402,245 449,508,536
Other Operation Departments Revenues 1,476,000 1,659,218 1,866,593 2,101,517 2,367,888 2,670,189 3,013,581 3,404,015 3,848,352 4,354,516
G/Total Revenue 28,054,763 44,759,218 61,934,123 84,400,280 119,065,487 172,899,831 256,877,761 388,280,240 594,320,579 917,855,080
Good Sol d Expenc e birr 10,517,361 11,832,031 13,146,702 13,146,702 13,146,702 13,146,702 13,146,702 13,146,702 13,146,702 13,146,702
12.2 Cost of Goods Sold

12.2.1 Production Cost
Sr.No Items Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
utilization capacty 80% 90% 100% 100% 100% 100% 100% 100% 100% 100%
1 Food cost of goods sold 2,847,000 2,277,600 2,562,300 2,847,000 2,847,000 2,847,000 2,847,000 2,847,000 2,847,000 2,847,000 2,847,000
2 Beverage 1,154,313 923,450.40 1,038,881.70 1,154,313 1,154,313 1,154,313 1,154,313 1,154,313 1,154,313 1,154,313 1,154,313
3 Commission 92,163 73,730.40 82,946.70 92,163 92,163 92,163 92,163 92,163 92,163 92,163 92,163
4 Salary of Hotel Service & Production 677,004 541,603.20 609,303.60 677,004 677,004 677,004 677,004 677,004 677,004 677,004 677,004
5 Maintenance & Spair Part 336,823 269,458.46 303,140.77 336,823.07 336,823 336,823 336,823 336,823 336,823 336,823 336,823
6 Utilities:/Overhed Cost 336,823 269,458.46 303,140.77 336,823.07 336,823 336,823 336,823 336,823 336,823 336,823 336,823
7 Depercation 3,470,834 2,776,667.32 3,123,750.74 3,470,834.15 3,470,834 3,470,834 3,470,834 3,470,834 3,470,834 3,470,834 3,470,834
Sub-total Factory costs 8,914,960 7,131,969 8,023,465 8,914,961 8,914,961 8,914,961 8,914,961 8,914,961 8,914,961 8,914,961 8,914,961
34
12.2.2Total General & Administrative Expense

Items Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
utilization capacty Period (mths) 80% 90% 100% 100% 100% 100% 100% 100% 100% 100%
Mislinusanus Expese 12 2,136,064 1,708,851.48 1,922,457.91 2,136,064 2,136,064.34 2,136,064.34 2,136,064.34 2,136,064.34 2,136,064.34 2,136,064.34 2,136,064.34
Tel Communications 12 68,894 55,115.20 62,004.60 68,894 68,894.00 68,894.00 68,894.00 68,894.00 68,894.00 68,894.00 68,894.00
Laundry Service. 12 4,409 3,527.20 3,968.10 4,409 4,409.00 4,409.00 4,409.00 4,409.00 4,409.00 4,409.00 4,409.00
Housekeeping supplies 12 344,469 275,575 310,022.10 344,469 344,469.00 344,469.00 344,469.00 344,469.00 344,469.00 344,469.00 344,469.00
Commission 12 137,788 110,230.40 124,009.20 137,788 137,788.00 137,788.00 137,788.00 137,788.00 137,788.00 137,788.00 137,788.00
Utilities: Electricity, Water, Telep 12 696,516 557,212.80 626,864.40 696,516 696,516.00 696,516.00 696,516.00 696,516.00 696,516.00 696,516.00 696,516.00
Salary Of Manageral & Administrative 12 843,600 674,880.00 759,240.00 843,600 843,600.00 843,600.00 843,600.00 843,600.00 843,600.00 843,600.00 843,600.00
Sub -total Factory costs 4,231,740 3,385,392 3,808,566 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740
12.3 FINANCIAL PROJECTIONS

12.3.1 Projected income statement (‘000 birr)
INCOME STATEMENTS( Et birr '000)
Year 0 Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8 Y-9 Y-10
Gross revenue 28,054,763 44,759,218 61,934,123 84,400,280 119,065,487 172,899,831 256,877,761 388,280,240 594,320,579 917,855,080
Oil e Seed Oil Proc essing
Cost Of Produc tion/Less COGS 7,131,969 8,023,465 8,914,961 8,914,961 8,914,961 8,914,961 8,914,961 8,914,961 8,914,961 8,914,961
Gross Profit 20,922,794 36,735,753 53,019,161 75,485,318 110,150,525 163,984,869 247,962,800 379,365,279 585,405,618 908,940,118
(In % of Total Inc ome) 75% 82% 86% 89% 93% 95% 97% 98% 98% 99%
Administrative & Marketing Expense/V 3,385,392 3,808,566 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740
Total Operating Expenses: 3,385,392 3,808,566 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740 4,231,740
Operating Profit 17,537,402 32,927,186 48,787,421 71,253,578 105,918,785 159,753,129 243,731,059 375,133,538 581,173,878 904,708,378
(In % of Total Inc ome) 63% 74% 79% 84% 89% 92% 95% 97% 98% 99%
Other Inc ome 0 0 0 0 0 0 0 0 0 0
Total Operating Profit 17,537,402 32,927,186 48,787,421 71,253,578 105,918,785 159,753,129 243,731,059 375,133,538 581,173,878 904,708,378
Financ ial & Other Charges 0 0 0 0 0 0 0 0 0 0
Less Cost of Financ e 2,223,582 1,949,579 1,642,696 1,298,988 914,034 482,886 0 0 0 0
Total Financ ial & Other Charges 2,223,582 1,949,579 1,642,696 1,298,988 914,034 482,886 0 0 0 0
GROSS PROFIT 15,313,820 30,977,607 47,144,724 69,954,590 105,004,751 159,270,243 243,731,059 375,133,538 581,173,878 904,708,378
Inc ome (Corporate) Tax 0 0 16,500,654 24,484,107 36,751,663 55,744,585 85,305,871 131,296,738 203,410,857 316,647,932
Profit after Taxation 15,313,820 30,977,607 30,644,071 45,470,484 68,253,088 103,525,658 158,425,189 243,836,800 377,763,020 588,060,446
Ac c umul ated Profits - brought forward 0 15,313,820 46,291,428 76,935,499 122,405,982 190,659,070 294,184,728 452,609,917 696,446,717 1,074,209,737
Ac c umul ated Profits - c arried to the Bal anc e Sheet 15,313,820 46,291,428 76,935,499 122,405,982 190,659,070 294,184,728 452,609,917 696,446,717 1,074,209,737 1,662,270,183
RATIOS (%)
Gross Profit/Sal es 55% 69% 76% 83% 88% 92% 95% 97% 98% 99%
Net Profit After Tax/Sal es 55% 69% 49% 54% 57% 60% 62% 63% 64% 64%
Return on Investment 0 0 0 0 0 0 0 0 0 0
Return on Equity 0 0 0 0 0 0 0 0 0 0
35
12.3.2 Projected balance sheet (‘000 birr)

Year 0 Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8 Y-9 Y-10
Net income 15,313,820 30,977,607 30,644,071 45,470,484 68,253,088 103,525,658 158,425,189 243,836,800 377,763,020 588,060,446
Plus depreciation 3,470,834 3,470,834 3,470,834 3,470,834 3,470,834 3,470,834 3,470,834 3,470,834 3,470,834 3,470,834
Less increase in inventory - (570,558) (71,320) (71,320) - - - - - - -
Less increase in accounts receivable - (1,402,738) (835,223) (858,745) (1,123,308) (1,733,260) (2,691,717) (4,198,897) (6,570,124) (10,302,017) (16,176,725)
Plus increase in accounts payable - 213,959 26,745 26,745 - - - - - - -
Cash flow from operations - 17,025,318 33,568,644 33,211,585 47,818,010 69,990,662 104,304,775 157,697,126 240,737,510 370,931,838 575,354,555
Less investment (25,223,141) - - - - - - - - - -
Cash flow from operations and invests (25,223,141) 17,025,318 33,568,644 33,211,585 47,818,010 69,990,662 104,304,775 157,697,126 240,737,510 370,931,838 575,354,555
Plus net new equity capital raised 7,070,641 - - - - - - - - - -

Less dividends paid - - - - - - - - - - -
Plus net new long-term debt 18,529,847 (2,283,354) (2,557,356) (2,864,239) (3,207,947) (3,592,901) (4,024,049) - - - -
Plus net new bank borrowings - - - - - - - - - - -
Cash flow from ops, invests, and fin 377,347 14,741,964 31,011,288 30,347,346 44,610,063 66,397,761 100,280,726 157,697,126 240,737,510 370,931,838 575,354,555
Beginning cash balance - 377,347 15,119,311 46,130,599 76,477,945 121,088,007 187,485,768 287,766,494 445,463,620 686,201,130 1,057,132,968
Ending cash balance 377,347 15,119,311 46,130,599 76,477,945 121,088,007 187,485,768 287,766,494 445,463,620 686,201,130 1,057,132,968 1,632,487,523
12.3.3Projected cash flow statement (‘000 birr)

Production Years 0 Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8 Y-9 Y-10
Assets
Cash 377,347 15,119,311 46,130,599 76,477,945 121,088,007 187,485,768 287,766,494 445,463,620 686,201,130 1,057,132,968 1,632,487,523
Inventory - 570,558 641,877 713,197 713,197 713,197 713,197 713,197 713,197 713,197 713,197
Accounts receivable - 1,402,738 2,237,961 3,096,706 4,220,014 5,953,274 8,644,992 12,843,888 19,414,012 29,716,029 45,892,754
Total current assets 377,347 17,092,606 49,010,437 80,287,848 126,021,218 194,152,239 297,124,682 459,020,705 706,328,339 1,087,562,194 1,679,093,474
Gross property, plant & equipment 25,223,141 25,223,141 25,223,141 25,223,141 25,223,141 25,223,141 25,223,141 25,223,141 25,223,141 25,223,141 25,223,141
Less: Accumulated depreciation expense - -3,470,834 -6,941,668 -10,412,502 -13,883,337 -17,354,171 -20,825,005 -24,295,839 -27,766,673 -31,237,507 -34,708,342
Net property/equipment 25,223,141 21,752,307 18,281,472 14,810,638 11,339,804 7,868,970 4,398,136 927,302 -2,543,532 -6,014,367 -9,485,201
Total assets 25,600,487 38,844,913 67,291,909 95,098,486 137,361,022 202,021,209 301,522,818 459,948,007 703,784,807 1,081,547,827 1,669,608,273
Liabilities Initial balance Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 Year 5 Year 5 Year 5 Year 5
Accounts payable - 213,959 240,704 267,449 267,449 267,449 267,449 267,449 267,449 267,449 267,449
Notes payable/short-term debt - 0 0 0 0 0 0 0 0 0 0
Total current liabilities - 213,959 240,704 267,449 267,449 267,449 267,449 267,449 267,449 267,449 267,449
Long-term debt from 18,529,847 16,246,493 13,689,137 10,824,898 7,616,950 4,024,049 0 0 0 0 0
Shareholders equity 7,070,641 22,384,461 53,362,068 84,006,139 129,476,623 197,729,711 301,255,369 459,680,558 703,517,358 1,081,280,378 1,669,340,824
Total long-term debt and shareholders equity 25,600,487 38,630,954 67,051,205 94,831,037 137,093,573 201,753,760 301,255,369 459,680,558 703,517,358 1,081,280,378 1,669,340,824
Total liabilities 25,600,487 38,844,913 67,291,909 95,098,486 137,361,022 202,021,209 301,522,818 459,948,007 703,784,807 1,081,547,827 1,669,608,273
36
12.3.4Payback period internal rate of return
PROJECT WORTH MEASURE ( NPV, IRR, PB ) AFTER TAX . Birr '000

Year 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Cash flow -25,223,141 17,025,318 33,568,644 33,211,585 47,818,010 69,990,662 104,304,775 157,697,126 240,737,510 370,931,838 575,354,555
PV factor 100% 90.09% 82.64% 75.13% 68.30% 62.09% 62.09% 62.09% 62.09% 62.09% 62.09%
PV of cash flow -40,164 11,100 21,664 24,032 16,863 17,220 18,426 19,318 20,254 21,237 22,269
Cumultaive cash -40,164 -29,064 -7,400 16,632 33,495 50,715 69,141 88,459 108,714 129,951 152,220
NPV 172,474 -
IRR ( Bofer Tax ) 55%
Pay Back Period
PROJECT WORTH MEASURE ( NPV, IRR, PB ) BEFORE TAX
Year 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Cash flow -40,164 15,313,820 30,977,607 47,144,724 69,954,590 105,004,751 159,270,243 243,731,059 375,133,538 581,173,878 904,708,378
PV factor 100% 90.09% 82.64% 75.13% 68.30% 62.09% 62.09% 62.09% 62.09% 62.09% 62.09%
PV of cash flow -40,164 11,100 21,664 24,032 24,849 25,506 27,489 28,864 - - -
Cumultaive cash -40,164 -29,064 -7,400 16,632 41,480 66,987 94,476 123,340 123,340 123,340 123,340
NPV 123,340
IRR (Before Tax ) 59%
Pay Back Period 4y +8m
37
38

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BEANCH-SHEKO CALTURAL CENTER AND RE

Promoter:- Beanch –Sheko Cultural Center PLC

PEOJECT LOCATION: Mizan-Aman City Administrative

3,2.2 Objective and scope of the project........................................................................10

3.3 PRODUCT AND SERVICES............................................................................................11

4.4.2 Projected Demand.....................................................................................................15

4.5 TARGET MARKET............................................................................................................ 16

4.8PROMOTION AND ADVERTISING STRATEGY...........................................................17

5.5.2 Annual Requirement and Cost of Raw Materials and Utilities.....................21

6. Technology and Engineering......................................................................................22

10.4.2 Cash flow statement and balance sheet.........................................................31

10.4.3 Payback period.......................................................................................................31

10.4.4 Internal rate of return and net present value.................................................32

10.5 Loan Repayment Schedule.........................................................................................32

Status of the business: New

Description of  To conserve the Beanch-Sheko people Heritage & Indigenous

Is estimates as Project Investment Cost for the establishment

75 % Loan……………………..………. Birr 18.529 Million Birr

Motor Vehicle and Boat

Furniture & Fixture

Machinery & equipment.

Civil works & Buildings

Other Strategic Significance of Project

3 BRIEF DESCRIPTION OF THE PROJECT

The study conducted by World Bank- Pro-Tourism Strategy of Ethiopia, Japan-

 Ethiopia is still an untouched country and many tourists recommend visits to

3.2 THE PROJECT

3,2.2 Objective and scope of the project

The prime goal is to be food sufficient and others include:-

 Furnishing with different cultural and modern furniture’s

3.3 PRODUCT AND SERVICES

4. SALES AND MARKETING

Fig 3-1 Tourism circuit of Ethiopia

Summary of International Tourists by Purpose of Visit 2006-20010

TABLE 2: HOTEL ROOM SUPPLY AT WONIDOGENT-2010

4.4 Market Study

4.4.2 Projected Demand

Total 5,756,630 113% 7,502,675 343%

4.5 TARGET MARKET

distributed to local businesses and faxing in orders will be encouraged. Take-out

4.7 PRICING STRATEGY

4.8 PROMOTION AND ADVERTISING STRATEGY

Location of a fuel station is determined by the availability of infrastructure and

5.2 LOCATION ADVANTAGES

5.3 Plant Capacity

Production years Quantity/day Annual

5.5 Raw Materials and Utilities

5.5.2 Annual Requirement and Cost of Raw Materials and Utilities

Service Revenue Percentage Cost

6. Technology and Engineering

6.2 Machinery and Equipment

Units UOM Quantity Rate Cost

6.3 Furniture and Fixture

6.4Project Motor and Vehicle

7. PROJECT ORGANIZATION AND MANPOWER REQUIREMENT

7.2 ORGANIZATIONAL STRUCTURE

ADMINSTRATION AND ACCOUNT

MARKETING AND SALES

Estimated cost of such Manpower Requirements Estimate for a project is

EDUCATIONAL LEVEL EXPERIENCE NO OF

EXPERIENCE (YEAR) PERSONS

7.3 Training Requirement

8. PROJECT IMPLEMENTATION SCHEDULE

9. SOCIO-ECONOMIC AND ENVIRONMENTAL