STORE HOUSE PROJECT PROPOSAL

OROMIAREGIONAL STATE WEST HARARGE ZONE

ANCHER WOREDA

PROMOTER : - TANSAY BAQQALAA DARRIBEE

1
Table of Contents
1 EXECUTIVE SUMMARY.........................................................................................................2
2. INTRODUCTION.....................................................................................................................1
2 Background Of The Project......................................................................................................1
3 Project Objectives.....................................................................................................................2
3.1 General Objective.............................................................................................................2
3.2 Specific Objectives of the project.....................................................................................2
4 Project Site And Location.........................................................................................................2
4.1 Land Availability..............................................................................................................3
5 Justification and Rational Of the Project..................................................................................3
6 Policy Environment And Incentives.........................................................................................4
7 Promoter’s Background............................................................................................................4
8 Project Description...................................................................................................................5
8.1 Supply and Demand..........................................................................................................5
8.2 Projected Demand.............................................................................................................5
8.3 Strengths/weaknesses of the competition.........................................................................6
9 Purpose Of Project....................................................................................................................6
10 Project Service......................................................................................................................7
11 Social Store House................................................................................................................7
12 Socio Economic Service........................................................................................................7
13 Project Benefit For The Country Economy..........................................................................7
14 Management Summary.........................................................................................................8
14.1 Management and organization......................................................................................8
14.2 Management and structure............................................................................................8
3.3 Labour Requirements and Expenses......................................................................................9
15 Investment Cost Of The Project.........................................................................................10
16 Assumption of the Project Finance.....................................................................................12
16.1 Depreciation Of Fixed Investment Items....................................................................13
16.2 Financial Feasibility Study/Analysis...........................................................................13
16.3 Financing Plan.................................................................................................................14
16.4 7.2 Forecasted Income Statement................................................................................14
16.5 7.3 Forecasted Cash-Flow...........................................................................................17
16.6 7.4 Forecasted Balance Sheet......................................................................................19
17 Environmental Impact of the Project............................................................................17-21

1
 1 EXECUTIVE SUMMARY
Project Name Store House Project
Project Owner Tansay Baqqalaa Darribee
Nationality Ethiopian
Project Location Oromia Regional State, West Hararghe,
Ancher District
Project Composition Multipurpose store house service business.
Land Required 220 M2
Promoters :- Adrress Oromia Regional State, West Hararghe,
Ancher woreda
Initial Investment Total Initial Investment Will Be Estimated To
Capital Needed Be 5,000,000.00 Etb. From This 30% Will Be
Covered By Promoter Of The Project. The
Rest Of 70% Will Be Covered By Loan From
Bank In Long Term Reference Of 10 Years.
Employment Opportunity At Full Capacity Of Farm Hire 35 Workers
 30 Temporary Workers
 5 Permanent Workers
Farm Input And Raw All Store House Input.
Materials
Benefit Of Project Source Of Income, Employment, product,
material In Store House Sectors, Foreign
Curry Earning And Transformation Of Store
House Technology.
Type Of Organization: Farmer Investor
Project Contact Tansay Baqqalaa Darribee

2
3
 1. INTRODUCTION
In order to promote the economic and social development of the nation, Ethiopia's present
administration has adopted a market-oriented economic policy. The government has supported
investment policies as a part of its policy changes, creating numerous opportunities for private
investors to place their capital in nearly all economic sectors. Access to land, the presence of
good governance, the presence of good infrastructure, market accessibility, and the favorability
of the area for commercial activities are some of the factors that spur the development of the
private sector. Other factors include the establishment of Store House investment projects to
bring high-quality Store House and economic technology to market.
The country's quick economic growth was fuelled by the present effective economic policy,
which provided opportunities for the private sector to engage in any type of development work.
This investment program is a result of initiative in an area that has not been deeply touched by an
Store House investment project. This promotes both domestic and international private investors'
participation in all economic sectors, whether as a single person or as a partnership.
With the goal of solving the town's socio-economic difficulties and contributing to its growth
through Store House provision and job employment, this project proposal aims to demonstrate
the technical viability, administrative capacity, and financial sustainability of the project to the
relevant departments. On the basis of this, the private sector has begun to mobilize and spend
their knowledge and financial resources in a variety of investment activities that they believe will
be advantageous for them and the nation.

2 Background Of The Project

The long-term goal of the project is become the best choice in Ancher woreda and its
surrounding areas by creating a differentiated experience capitalizing on personal service. The
proposed project will have a total area of 220m2, designed to reader a multipurpose giving
business, which will in turn plays significant role towards solving shortage of Store house in
Ancher town.
The historical nature of the town as business unique location in one of the most attractive parts of
the occurrence of the town along the along the Ethiopian Dindin park laid a fertile ground for
future promising growth of the town. The owner plans the project to render service and
insurance, shopping facility, bank and store services to create high quality class to satisfy the
interest of customers in the town. Based on environmental and other considerations, the
entrepreneur has determined the type and size of the building which is already determined by the
site; conceptual planning and preliminary analysis have been carried out by analysts.
In order to attract its clients to the service, the project will develop high standard store house &
store rooms and office of best choices and will also save best quality store and coffe, national
and international dish and various types of service.

1
 3 Project Objectives
3.1 General Objective
The objective of this business plan project proposal is invest store house to narrow basic economic
problem which is unemployment at current situation, to dry up the problems from its source, provided
fresh store house and fruit for community, promote investment and improving economic development.
This is to play role on the eradication of poverty.

3.2 Specific Objectives of the project

The project has the following specific objectives.
 To store products to the domestic and export market,
 To create additional job opportunities in the District,
 To transfer knowledge to the surrounding farmers
 To support the government in livelihood improvement efforts
 To generate additional foreign currency to the country
 To contribute to the development of the region
 To boost up unemployment by job creation and provide store house for community.
 To promote local economy and encourage development
 To reduce unemployment, economic independent and make people to learn more about job
 To provide early needs to the people in need
 To support individual and communities directly or indirectly.
 To increase income and reduce poverty.

4 Project Site And Location

The project will be located in Oromia Regional State west Hararghe zone, The main town of district is
Cheleleka, located at 120 km from the zonal capital of chiro and 296 km from Finfinne. Its
borders are Gumbi -Bordede and Awash -Fentale in the North, Aseko and Golelcha district in
the south, Fentale District in the west, Daro lebu, Habro and Guba -koricha District in the south
East directions.. The main reason to choice this location is
 Strategically located to geopolitics and joint of sea road way to nearest eastern port by high road
of country trade door.

 Relatively ,advanced development in infrastructure(power, Water, Telephone, Road, etc)

 Appear on the road to the nearest market out late, availability of skill labor force.

 Conducive investment policy and environmentally and geographically very fit to vegetable
production.

2
 4.1 Land Availability
There is sufficient cultivated land especially accessed for Agriculturalproduction investment to b
e used with store house. The project site is in the market. The land lease price and period for
different uses is already set in which for commercial activities. The arrangement of the lease
payment is based on advance payment (20 percent of lease price). The rest of the payment will
be accomplished up to 20 years with a bank interest included. Which would invariably require
employing a land and property valuation system to pay adequate compensation for envious
developmentsas well as to allocate land for new developments. It has delivered considerable land
to development, transitional and expansion areas.

5 Justification and Rational Of the Project

It can argue that the economic development possible only when economic input met the same as basic
human needs possible for life. These can possible only when favorable condition fulfilled and all body
concerned. In Ancher District there is huge number of unemployment with vast gap of economic job
opportunity this stated problem in the project one can wetness and sharp contrast to expect, as needs
comfortable condition for proposed. Mostly from the situation on the ground, Ancher District is
the ideal place for store house production investment because District has conducive agro-climatic
condition, existence of local and foreign markets, strong linkages on strategic place with the surrounding
regions and the nearby countries on the road Addis Ababa to (Djibouti, Somalia and Somali land),
availability of land both in quantity and quality for vegetable production and other development activities
of production related to investment, increased trend of information technology based production
utilization capacity and coverage, the compact nature of bureaucratic lines, are the main conducive
environments for the project implementation. Despite this entire enormous plan, an individual does not
have required land to invest and create job opportunity in a reality. To this end, He needs support from all
concerned body. So that, He can changed, from this miserable condition it have been long been trapped
in. And hope that the readers sense the severe condition of the area that we plead volunteer all concerned
sympathizers to put heads together to change the hideous condition of our economic dependence and
replaced by comfortable condition, happy and make us productive citizen on there is an environment. We
anticipate that if our economic dependence change and become developed, the country trained to virtue.

3
Finally, to address existing bottlenecks problem of shortage vegetable and unemployment are a problem
needs urgently intervention. Even though government were started to practice job creation by investment
many years ago to confront the problems of unemployment due to lack of investors, it could not fulfill the
desire. Hence, we have confirmed that the establishment of investment is our primary interest and top
priority. All have revealed a positive attitude towards the foundation of this investment and fully agreed
to be a guest for it when his farm is start up production. In view of addressing the above stated problems
in the introductory part is rationalized this intervention for Tansay Baqqalaa Darribee store house
in Ancher District.

6 Policy Environment And Incentives

The Ethiopian government has taken significant measures to encourage and promote investment in the
country. The private sector is encouraged to invest in almost all areas of the economy. The expanded
effort to realize free market system, liberalization of trade rules, promulgation of investment rules, the
launching of economic opportunity and development policy and land development and management
policies are some of the measures taken. The newly launched investment rule is the outcome of a series of
amendment of the 1180/2020 proclamation. The aim of this proclamation is to facilitate services to the
investors, to provide integrated services in one stop-shop, strengthen institutional mechanisms to fit to the
required facilitation works.
4.1. Free market economy: In contrast to the socialist oriented command economic system pursued by
the previous Derg regime, the government is now following policies, which are in line with the principles
of market economic system. The role of the private sector in the economic development process of the
country is recognized and the government practically expressed its readiness for dialogues with
representatives of the business community and work hand-in-hand with the private sector. This situation
will allow a timely detection of constraints in the sector and proposal of appropriate remedial measures
and consequently, create a favorable condition for the development of the trade and industry sector.
4.2. Industrial Development Strategy: The industrial development strategy of Ethiopia is formulated
with the objective of offering better opportunity for the development of industrial and trade sector
especially for agro-processing and other export-led industrial developments. It has been found necessary
to encourage the integration of domestic and foreign investors in the industrial development of the
country and the involvement of the society for industrial development.
4.3. Rules and Regulations: Besides, the various conditions that create conducive atmosphere for the
industrial and trade development, the Proclamation No. 1180/2002 i.e. Reenactment of the Investment
Proclamation, is another important stepping-stone to lure investment opportunities in the city. Council of
Ministers Regulations No. 1180/2020 (2020), i.e. Regulation of Investment Incentives and Investment
Areas Reserved for Domestic Investors on the other hand also provides incentive by exempting from
income tax for a certain period conditioned on some aspects.

7 Promoter’s Background
The promoter Tansay Baqqalaa Darribee is a young, motivated, and enthusiastic and
committed who has good truck of record. The promoter possesses excellent entrepreneurial skills
and extensive experience in creating, managing, and operating a variety of successful businesses.
The promoter's goal is to continuously look for opportunities to grow the business while utilizing
his established abilities and providing his best effort for the benefit of the nation as a whole and
the Oromia Region in particular. The promoter has a moral obligation to conduct this business
fairly and in a way that will improve its standing in both commercial and nonprofit endeavors.

4
As a result, the promoter has created a plan to carry out the planned store house development
project that would enhance the District reputation, help the area, and act as a model investment
venture.

8 Project Description
The Store house project is assumed to be implemented on a total of 220 m2 of land out of which 150m2
are for store house while the remaining 0.70 m2 of land is for diffent service up area. The project
components include site selection, leveling and variety selection, land preparation, including
transportation, storing and marketing. The selected Store of the projects include tomato, pepper, Cole
cabbage, onion, garlic, and potato. The house of the store is performed in rotation bases taking to
consideration the appropriate time and market demand value Market Situation

8.1 Supply and Demand

Ancher Calalaqa town is situated in very Centre of Ethiopian tawlaa production area which is
highly known for its industrial content and special purpose. These days Dindin forest is brand
name Dindin national park. Ancher Calalaqa town is also a major business center and
commercial route that attracts thousands of business travelers. These are also the most important
groups of potential customers that include both the local and foreign tourists and the modern
business community who choose services that range from economic to high class standards.
These groups would also choose a healthy comfortable climate that combines a more traditional
type with that of modern shops, offices, bedrooms restaurants and cafeterias. Even though when
compared with similar zonal towns in the region Ancher Calalaqa seems to have no developed
store house, the existing supply is far behind the growing demand for standard service. Hence,
the project will solve the serous demand problem in the town.
Over the last decade, there has been a significant growth in the number of local and international
trades across the country. This increase is mainly associated with the stimulation of economic
activist and partly due to an increase in the flow of international and local traders in to the town.
Since Ancher Calalaqa is an important commercial center store in addition there is a significant
increase in business activates and hence increasing the number of traders to the town. Even
though there is a lack of quantitative estimates that number of traders to the town. Even though
there is a lack of quantitative estimates that depict the actual demand and also the annual growth
rate store facilities and urban commercial facilities are scarce in the city. So far in the town there
is no development of such kind standard building and it is the first of its kind in the town and
will promote other investors from the town and the surrounding areas. They are mostly villa type
premises modified as show rooms and sailing posits. As a result there is a large gap between the
developed and that of the supply for modern bed rooms; organisation and store accommodation
hence this project would not face any problem of demand scarcity for it business Centre and it
would provide good service to customers.
.

5
 8.2 Projected Demand
The demand for store house product is mainly influenced by population growth and income raise
the present value for each Kgs of products increased enormously proving the shortage the
product. Hence by taking the estimated unsatisfied domestic and export demand as a base, great
effort should be applied to address the future unsatisfied demand for the products.

Some factors that increase the demands are; -

 The site is easily accessible transportation facilities,
 There is a gap between the demand and supply.
 The existing Store House investment project Store House not considerable with
quality, price and market demand of the goods and Store House are some of the
factors.

The project aims to raise the income of the legal income groups by providing high-quality
training at a reasonable cost in a variety of areas. Due to the large disparity between the supply
and demand of Store House products, which ensures the market, it is easy to generalize from the
overall market assessments that the proposed investment would be successful. The project will
thus be successful and viable in the area.

8.3 Strengths/weaknesses of the competition

Strengths

 They are in market

 Familiar with customers
 have enough capital to marginalize market.

Weaknesses:

 They are not managed by educated person

 They are not mechanizes the farming activity.

9 Purpose Of Project
The initiatives are intended to be established by private investors as a business endeavor. The
primary goals of this project proposal are for the promoter to legalize the land, receive the
investment certificate, and benefit from any investment benefits.The project is planned to
produce vegetable and fruit which is as economic development venture. Investment has legalized
by proclamation and it has all governmental institutional patent right and gerent. The main

6
purpose of these business plan project proposal is to promoting job opportunity, these will be
realized by establishing basic economic development, human needs and health care as well as
accelerate economic development by rendering quality of balance diet to community and
implement economic development plan moreover. The client aimed to increase the profit of
project capital in the form of revenue.

10 Project Service
Tansay Baqqalaa Darribee store house is an interesting and new established store which
going to store products and material for people in need. It startup investment with good
management business plan to provide unique Store House investment and quality of production
which make enjoy their customers in and around the woreda. Timely Established farm will be
offer the promising economic opportunity, provide affordable source of Vitamins and minerals
needed for good health. It can also enhance people physique and prolong people’s life. It will
provide production three times per years. It can supply product and fruit for more than 80,000
people per years domestically and export in and across country away at Ancher road.

11 Social Store House

The location is great to start the business providing nice and quality store house to the clients
because there are good Store House offering institutions all around the town. The towns are
equipped with every form of public transit, utility, infrastructure, and social Store House facility.
The proposed location is connected to are Gumbi -Bordede and Awash- Fentale in the North,
Aseko and Golelcha district in the south, Fentale District in the west, Darolebu, Habro and Guba
koricha District in the south East directions.
.

12 Socio Economic Service

Agriculture is the major contributing sector to the District’s economy. Hence, majority of the
population in Ancher is predominantly engaged in mixed farming agriculture. Agriculture, and
Animal rearing being the backbone of the District’s economy, the sector is showing a
considerable improvement due to better extension services and the provision of adequate
agricultural inputs and the life standard of the rural society show significant improvement. These
business plan projects will be created job opportunity, generate revenue, and for Government in
the form of tax starting from operation of the project and growing economic development.

7
 13 Project Benefit For The Country Economy
The goal of this project is to solve the Vegetable and fruit Store House issue. Products for the
market and other clients in the surrounding agribusiness investment projects have shown to be
quite beneficial in boosting the economies of nations like Ethiopia. This activity tends to support
different Store House while also producing income to support employment and raising their
level of living. Starting with the project's operation, the initiative will also bring in money for the
government in the form of taxes.

14 Management Summary
14.1 Management and organization
The organization structure is designed in such a way that it can enable for fully undertake the
objectives. Private investors will direct the overall activities and major project decision. The
project will need the contribution of all concerned from starting to end.

14.2 Management and structure

Top-level management regularly reviews actual performance against budgets, forecasts, and
prior period results. Top management will be involved in developing 3-year and annual
performance plans and targets in accordance with goal for measuring and reporting results
against those plans and targets. The project has the following management structures

Senior
Manager

Accountants Parchesar store kepper

Driver

8
 3.3 Labour Requirements and Expenses

No. Positions. No. Of Monthly Monthly Annually

Personals Payment/Wages Total(Birr) Total(Birr)

1 Senior Manager 1 4000 4,000 48,000

2 Accountants 1 2000 2000 24,000
3 Purchasers 1 1500 1500 18,000
4 Sales Persons 1 1500 1500 18,000
5 Driver 1 1500 1500 18000
6 Daily Workers 30 352000
Total 35 478,000

14.2.1.1 Cost Of Investment

The project needs a total of ETB 5,000,000 for the implementation of the project Out of
these 2800 ,000.00 will be allocated for fixed investment capital. Cost of 2200, 000.00
ETB will be allocated for working capital during its project life.

9
 14.2.1.2 Land Requirements
The total land requirement of the project is 220 m2, out of which 150 m2 is a built-up area which can
accommodate product and raw material stores, offices and fences. Whereas 70 m 2 are Parking area .

No. Description Land requirement Hectares (m2)

1 Construction area 150m2

2 Building Guard room area

3 parking and green area 70m2
Total 220m2

The lease value of land at a rate of Birr 1.35 per m2 and for 10 years is estimated to be Birr

14.2.1.3 Source Of Fund For Store House

Source of fund Share in % Amount in Birr

Own capital 30 1,500,000.00

Loan from bank 70 3,500,000.00

Total 100 5,000,000.00

15 Investment Cost of The Project

a.Capital Requirement

10
For the procurement of machinery, working capital, buildings, and other facilities,
the project requires a total of ETB 5, 000,000.

Store House Project

Forecasted Initial Investment Capital
No Description Cost
1 Fixed Investment Capital
Machinery And Equipment 2000000
Fixture Cost 500000
Cost Of Building 300000
Total Fixed Cost 2800000
2 Working Capital
Wage And Salary 478000
Operating Expense 1100000
Misc. Expense 400000
Other Expense 222000
Total Working Capital 2200000
Total Investment Capital 5000000

b.Fixed Capital

The anticipated amount of fixed investment capital is 2800,000. This will go toward the
necessary fixed assets.

c. Working Capital

The project's initial working capital is projected to cost ETB 2200, 000. Working capital
expenses are anticipated for the price of provided materials, electricity, water, telephone,
advertisement expense, wage and salary charges, etc.

11
 d. Sources of Investments Capital

The total investment cost of the project is expected to be financed from two sources; equity and
debt. Owner’s contribution is expected to be 30% and the remaining balance is expected to be
financed through the bank loan.

16 Assumption of the Project Finance

a.Revenue

Revenue of the project will be mainly derived from the sales of products and other Store House
is expected to generate most return of the project and also contribute to the growth income of the
project.

b.The Profitability

The project's cost of inputs, expenses, and overhead costs are evaluated, together with its revenue
and timing return (payback period), to determine whether it is profitable based on the qualified
project benefit and cost of the financial liabilities. The project's promoter sincerely hopes that all
relevant organizations will continue to support the projects' success.

Store Houseal Investment Project

Bank loan Repayment Schedule (payback period) within Ten years
principal Per cent of Balance of
Year Repayment Interest Rate Total payment Principal
Due (10%) outstanding

0 0 0 3,500,000
1 350,000 350,000 700,000 3,150,000

12
 2 350,000 315,000 665,000 2,800,000
3 350,000 280,000 630,000 2,450,000
4 350,000 245,000 595,000 2,100,000
5 350,000 210,000 560,000 1,750,000
6 350,000 175,000 525,000 1,400,000
7 350,000 140,000 490,000 1,050,000
8 350,000 105,000 455,000 700,000
9 350,000 70,000 420,000 350,000
10 350,000 35,000 385,000 -

16.1 Depreciation Of Fixed Investment Items

The straight-line method has been used to depreciate/amortize all fixed items of the
project. The depreciation rate applied for all fixed assets is given below.

Store Houseal project

Forecasted Depreciation of Fixed Asset

Annual Depreciation
S/n Item Original Value
% Amount(Br.)
1 Building & Constructions 300000 10 30000
2 Machinery and equipment 2000000 10 200000
3 Fixture 500000 10 50000
Total 2800000 - 280000

16.2 Financial Feasibility Study/Analysis

This Store House Project financial feasibility study depends on the assumptions that are made
below. These are annual assumptions that show the consistent growth of the business investment
project. As well, some of the underlying and general assumptions are:
 The project assumes that it stays in line with the continuing advances in technology and
business.

13
  The project is expected to be self-sustained in terms of finance with the payment they
obtain from their clients back from the service they provide.
 Overall activities of the project will grow from time to time and finally will be one of the
medium size industries through expanding their business from time to time.
 The interest rate assumed to be 10% over the ten years.
 The profit income tax rate is assumed to be 10% in the projection period.

16.3 Financing Plan

This Store House project generally requires a total of birr 5,000,000 to meet estimated
capital requirements as well as to cover various costs incurred to start and run the
operation. Hence, to meet estimated capital requirements as well as to cover various costs
incurred to start and run the operation, the business expects to borrow birr 3500,000 from
financial institutions (such as banks) at the beginning year of the project, which will be
repayable with 10% interest rate within ten years on Annual basis.

16.4 7.2 Forecasted Income Statement

The Forecasted Income Statement for the ten years is prepared using the forecasted sales
and the costs. In the year beginning, the Store House expects a Total Sale of birr
3,200,000 by providing the supply of various kind of production store services, for the
district and throughout the Zone &country. In the year beginning and successive years,
the Investment project expects a 10% increase in the total sales and which provides this
total amount of sales products with the cost of 200000 will be incurred beginning and rise
by five per cent successively during the projection.

14
15
 Store Houseal Project Proposal
Forecasted Income Statement (in birr)

year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9

11047267
3,200,000 3520000 3872000 4259200 4685120 8299975.872 9129973.46 10042970.81 9
ood 342067.871 377129.82
200,000 210000 220500 231525 243101.25 325778.9254 6 359171.2652 8
3,310,00
3,000,000 0 3,651,500 4,027,675 4,442,019 7,974,197 8,787,906 9,683,800 10,670,138

581011.98 817542.213
478000
501900 526995 553344.75 8 778611.6316 2 858419.3238 901340.29
1337056.8 1881373.29 2074214.0
1100000
1155000 1212750 1273387.5 8 1791784.089 4 1975441.959 6
684135.743 754259.65
400000
420000 441000 463050 486202.5 651557.8507 2 718342.5304 7
and 269842.38 379695.337
222000
233100 244755 256992.75 8 361614.6071 5 398680.1044 418614.11
280000 280000 280000 280000 280000 280000 280000 280000 280000

se
350,000 315000 280000 245000 210000 175000 140000 105000 70000
and 2,905,00
2,830,000 2,985,500 3,071,775 3,164,114 4,038,568 4,182,747 4,335,884 4,498,428
0

DA
170,000 405,000 666,000 955,900 1,277,905 3,935,629 4,605,159 5,347,916 6,171,710
fore
170,000 405,000 666,000 955,900 1,277,905 3,935,629 4,605,159 5,347,916 6,171,710

x 17,000 40,500 66,600 95,590 127,791 393,563 460,516 534,792 617,171

153,000 364,500 599,400 860,310 1,150,115 3,542,066 4,144,643 4,813,124 5,554,539

16
 16.5 7.3 Forecasted Cash-Flow

The cash-flow for ten years has been forecasted based on the Forecasted Income Statement
prepared earlier, other assumptions made in the earlier parts.

╬ The beginning cash balance is zero as of First year 1 of the project.

╬ The cash payments for costs and expenses are taken from the Forecasted Income Statement.
╬ The cash received from provision of Product services is taken from the Forecasted Income
Statement.
╬ Bank loan repayment with its interest rate percent and Fixed Investment cost are already list
at the beginning.

17
 Store House project
Forecasted Cash Flow Statement
Cash Inflows: year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year10
Beginning Cash 2,283,00 4,152,50 19,266,83 33,415,12 41,775,51 51,108,39
0 6,335,650 8,862,398 25,938,935
Balance 0 0 0 0 1 6
3,200,00 3,520,00 3,872,00 11,047,26 12,151,99 13,367,19
Sales 4,259,200 4,685,120 9,129,973 10,042,971
0 0 0 8 5 4
3,500,00
Borrow from Bank - - - - - - - - -
0
6,700,00 5,803,00 8,024,50 10,594,85 13,547,51 28,396,80 44,462,38 53,927,50 64,475,59
Total Cash Inflows 35,981,906
0 0 0 0 8 4 7 6 1
Cash Outflows:
Labor cost 478,000 501,900 526,995 553,345 581,012 817,542 858,419 901,340 946,407 993,728
Supplies/Sales /
200,000 210,000 220,500 231,525 243,101 342,068 359,171 377,130 395,986 415,786
expense
Other costs and
222,000 233,100 244,755 256,993 269,842 379,695 398,680 418,614 439,545 461,522
expenses
Bank Loan Principal
350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000 350,000
Repayment
Bank Loan Interest
350,000 315,000 280,000 245,000 210,000 175,000 140,000 105,000 70,000 35,000
Repayment
Construction of
300,000
Building - - - - - - - - -
Cost of furniture 500,000 - - - - - - - - -
Acquisition of
2,000,00
Equipment and
0
Machine - - - - - - - - -
Profit Tax 17,000 40,500 66,600 95,590 127,791 393,563 460,516 534,792 617,171 708,516
4,417,00 1,650,50 1,688,85
Total Cash Outflows 1,732,453 1,781,747 2,457,868 2,566,787 2,686,876 2,819,109 2,964,551
0 0 0
2,283,00 4,152,50 6,335,65 11,765,77 25,938,93 41,775,51 51,108,39 61,511,03
Net Cash Balance 8,862,398 33,415,120
0 0 0 1 5 1 6 9

18
 16.6 7.4 Forecasted Balance Sheet

The Forecasted Balance Sheet for the ten years of Store house project will be prepared considering the
management’s expertise, future economic conditions, and the following assumptions:
╬ In order to attract customers, the business will provide the services on credit and will have
Accounts Receivable balance of birr 200000 in the year of the projections.
╬ Assuming that there will be no major fixed asset sales and retirements, the balance of fixed
assets is stated at net book value for the coming years.
╬ In the year beginning, the estimated retained earnings will increase by the net profit and no
dividend will be paid.
╬ Bank loan balance. It is assumed that, from the loan balance of birr 3500,000, the business
expects to pay a total of the principal and 10% interest within the payback period.

19
 Store House project Proposal
Forecasted Balance Sheet
ASSETS
Current Assets: year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year 10
Cash on Hand 2,283,000 4,152,500 6,335,650 8,862,398 11,765,771 25938935 33415120 41775511 51108396 61511039
Accounts Receivable 200,000 220,000 242,000 266,200 292,820 627,686 690,454 759,500 835,450 918,995
Stock - - - - -
26,566,62
Total Current Assets 2,483,000 4,372,500 6,577,650 9,128,598 12,058,591 34,105,574 42,535,011 51,943,846 62,430,034
1
Fixed Assets: - - - - - - - - -
Building 300,000 - - - - - - - -
furniture 500,000 - - - - - - - - -
Equipment and Machine 2,000,000 - - - - - - - - -
Other Assets - - - - - - - - -
Total Fixed Assets 2,800,000 - - - - - - - - -
26,566,62
Total Assets 5,283,000 4,372,500 6,577,650 9,128,598 12,058,591 34,105,574 42,535,011 51,943,846 62,430,034
1
LIABILITIES AND
CAPITAL
Liabilities
Accounts Payable
Long Term
Liabilities(Bank Loan 700,000 665,000 630,000 595,000 560,000 525,000 490,000 455,000 420,000 385,000
including Interest rate)
Total Liabilities 700,000 665,000 630,000 595,000 560,000 525,000 490,000 455,000 420,000 385,000
Capital:
Paid-up-Capital
26,076,62
Retained Earning 4,583,000 3,707,500 5,947,650 8,533,598 11,498,591 33,650,574 42,115,011 51,558,846 62,045,034
1
26,076,62
Total Capital 4,583,000 3,707,500 5,947,650 8,533,598 11,498,591 33,650,574 42,115,011 51,558,846 62,045,034
1

20
Total Liabilities and 26,566,62
5,283,000 4,372,500 6,577,650 9,128,598 12,058,591 34,105,574 42,535,011 51,943,846 62,430,034
Capital 1

21
 17 Environmental Impact of the Project
Environmental management is concerned with implementation of the measures necessary to
minimize or offset adverse impacts and to enhance beneficial impacts. Unless the mitigation
and benefit enhancement measures identified in the EIA are fully implemented, the prime
function of EIA, which is to provide a basis for shaping the project so that overall
environmental performance is enhanced, cannot be achieved.

The project is no environmental damage and ecological disserved during the implementation
period at the production period of the project, raw materials are used by the project, wastage
products of the project, external impacts of the project and ways of wastage disposal in the
project life span should be seen critically. In the case of this project solid and liquid wastages
are controlled by using different system of environmental conservation.

Generally, the project will have a positive impact on the environment, although there are
some temporary adverse impacts during construction and operation phases could occur. On
balance, the project has overall beneficial effects. To properly manage those environmental
impacts and to tackle unforeseen situations that could occur during the project lifecycle, the
company shall develop a comprehensive environmental monitoring program and work on
proposed mitigation measures so that recommended mitigation measures are implemented and
remain effective.