Project Proposal For MMMM+Vegetable And Fruit Production

By: MMMM+ Cooperative Investors

Date: _____________________

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Project Proposal For MMMM+Vegetable And Fruit Production
 Project Proposal For MMMM+Vegetable And Fruit Production

WEST HARARGHE ZONE OF OROMIA REGIONAL STATE

GUMBI BORDODE WOREDA INVESTMENT AND INDUSTRY OFFICE

BORDODE

TO: Gumbi Bordode Woreda Investment and industrial expansion office

BORDODE

Subject: - To send the business plan Project proposal

This is to request your esteemed organization as to review our proposal regarding to established
MMMM+Vegetable and fruit production by MMMM+ partner investors. This could create job
opportunity for more than 140 people who have been unemployment, providing fresh vegetable for all
community in needs. This are play indispensable role in all economic development phase endeavor.
Due to lack of land but not capital and skill, we could not fulfill our desire. These enforced us to
request investment land by lease from your District to implement of the project. Here we are
exploring the issue, assignee, and then attached _____ page paper within this paper. Finally, we hope
that as your organization will be confirm and receive response for us.

With Best Regards

C/C To

Gumbi Bordode Woreda Administration Office

Gumbi Bordode Woreda Land Use Administration Office
Gumbi Bordode Woreda
Bordode
West Hararghe Zone Administration Office
West Hararghe Zone Land Use Administration Office
West Hararghe Zone Investment and Industrial Expansion Office
Chiro

Project Proposal For MMMM+Vegetable And Fruit Production

 Project Proposal For MMMM+Vegetable And Fruit Production

Table of Contents
Executive Summary..............................................................................................................................iii
1. Introduction.......................................................................................................................................1
1.1 Background..................................................................................................................................2
1.2 OBJECTIVE OF THE PROJECT................................................................................................2
1.3 THE PROJECT SITE AND LOCATION....................................................................................3
1.4 PURPOSE OFTHE PROJECT....................................................................................................4
1.5 PROMOTER’S BACKGROUND......................................................................................................4
1.6 The project Description..................................................................................................................5
1.7 SOCIAL AGRICULTURE...................................................................................................................5
1.8 SOCIO-ECONOMIC SITUATION.............................................................................................5
1.9 PROJECT BENEFIT FOR THE COUNTRY ECONOMY.........................................................8
2. Market and Demand Assessment.......................................................................................................9
2.1 OPERATING ACTIVITY SCHEDULE....................................................................................10
3. Organizational Plan and Personnel Summary..................................................................................11
3.1 Management and Organization..................................................................................................11
3.2 ORGANIZATIONAL STRUCTURE........................................................................................11
3.3 Labour Requirements and Expenses..........................................................................................12
2. Investment Cost of the Project.....................................................................................................13
5. Assumption of the Project Finance..............................................................................................14
6. DEPRECIATION OF FIXED INVESTMENT ITEMS...............................................................15
7. Financial Feasibility Study/Analysis................................................................................................16
7.1 Financing Plan...........................................................................................................................16
7.2 Forecasted Income Statement....................................................................................................17
7.3 Forecasted Cash-Flow................................................................................................................16
7.4 Forecasted Balance Sheet...........................................................................................................18
8. Environmental Impact of the Project...........................................................................................20
9. Economic and Social Benefits and Justification...........................................................................21

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Project Proposal For MMMM+Vegetable And Fruit Production
 Project Proposal For MMMM+Vegetable And Fruit Production

Executive summary

Project Name MMMM+ Vegetable and Fruit Production specialized in vegetable

production
Project Owner MMMM+ Partners
Nationality Ethiopian
Project location Oromia Regional State, West Hararghe, Gumbi Bordode District
Project composition Produce different vegetable mainly Tomato, Potato, Cabbage, onion,
sweet paper, green paper. etc.
Land Required 400 hectare
Initial investment Cost Total initial investment will be estimated to be 25,000,000.00 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 140 workers
 120 Temporary workers
 20 permanent workers
Technology Surface irrigation on river, rained, pond and underground water.
Farm input and Raw Materials All agricultural input.
Market share 60% Domestic and 40% for export
Benefit of Project Source of income, employment, production and supply of fresh
vegetable, VAT in agricultural sectors, foreign curry earning and
transformation of agricultural technology.
Type of organization: Private Investor
Project Contact Mutwakil Shafi
E-mail address: mutawakilshafii543@gmail.com
Telephone: +251904441579/0910433009

Project Proposal For MMMM+Vegetable And Fruit Production

 Project Proposal For MMMM+Vegetable And Fruit Production

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 favourability 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 agriculture investment projects to bring high-
quality agricultural 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
agriculture 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 agriculture 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.

1.1 Background of the project

Ethiopian economy is chiefly an agricultural with more than 85% of the country population
employed in this sector. Vegetable and Fruit production one of these sectors which is takes place
in Eastern and Central part of country. This including both East and west Harerghe, Shewa , and
Arsi and south western parts Ethiopia are the known cultivation zones of vegetables in the
country. Currently, Production of vegetables has been highly increasing as some 27,800 hac of
land is cultivated for production of vegetables, and fruits out of which, less than 10% of the
production is held by large state farms whereas smallholder farmers’ accounts for some 92% of
land and 90% of yield commercialized farms of the country. Mainly use imported or improved
varieties of seeds, while private smallholders mainly depend on traditional or local varieties. The
majority of vegetable production is organic by nature; however none of the farms in Ethiopia has
its production process certified against international recognized organic label which is very
important to compute in the international market.

Project Proposal For MMMM+Vegetable And Fruit Production

 Project Proposal For MMMM+Vegetable And Fruit Production

As Gumbi Bordode Woreda, it’s one of West Hararghe Zone distinct that established in 2009 and
276 km far from Addis Ababa in east direction and 75 Km from ciroo capital of west Hararghe
Zone. There are 171,835 total numbers of populations with 28,923 total numbers of households
living in the District its subdivided into Twenty-nine (29) kebele, with 17,545 cultivated land out
these 7000hac could be used for vegetable and fruit production. Gumbi Bordode District has
favorable conditions that would make it possible to produce almost all types of vegetables, which
could give yield three time per years by using both rained feed and irrigation. In District irrigation
potential is by dam and flood along across the river which are laga Arba ,Hardim and Qurqura
river.
Vegetables’ production is one of the important farm enterprises in Gumbi Bordode District and
it’s the surrounding areas. It’s considerable as source of income. Vegetables, which are valuable
for their high vitamins and mineral contents, are the diet of the domestic people. There is potential
for production and export market for high quality and fresh vegetables. As a consequence,
vegetable gardening should be improved and expanded to meet the domestic and export market
demand.
The vegetable production project will be performed considering the right vegetable crop, variety,
at the right time, with better farm management in order to get reasonable result. In this regard
producers of vegetables in the District and surrounding areas have developed considerable
experiences and benefits.
Even though, the District has all the above stated demand and high potential for vegetable
production. There is shortage of vegetable with high number of economic problem which is
unemployment in the woreda. These remain District leading to problem of insufficient supply of
vegetable and unemployment which affect people lives and livelihoods with addition to enable of
investment. This problem would be a bottleneck and re-forced the investors for this intervention.
The overall objective of this Business plan project will be to establishing vegetable and fruit produ
ction which going to expand investment and create job opportunity for more than for 20 person
directly and 120 person indirectly, these enhance basic source of balance diet, human needs and
accelerate economics development.

As the government of Ethiopia conducive investment policy and regulation that further attract
private sectors investment in the economic development through various investment and business
endeavors. To this effect the owner of the envisioned project has planned to invest in Oromia
regional state, West Hararghe zone, Gumbi Bordode District in high value vegetable production.
So this project implemented in done to confirm the market, technical and financial viability of this
project. The result of the project is very sound and promising for the owner to commence the
project in the district. In addition to the soil and agro ecological condition confirmed the
intervention of the promoter.

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Project Proposal For MMMM+Vegetable And Fruit Production
 Project Proposal For MMMM+Vegetable And Fruit Production

1.2. Project Objectives

1.2.1. General Objective

The objective of this business plan project proposal is invest vegetables production to narrow basic
economic problem which is unemployment at current situation, to dry up the problems from its source,
provided fresh vegetable and fruit for community, promote investment and improving economic
development. This is to play role on the eradication of poverty.

1.2.2. Specific Objectives of the project

The project has the following specific objectives.
 To supply vegetables 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 fresh Vegetable 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.

1.3. Project site and location

The project will be located in Oromia Regional State west Hararghe zone, Gumbi Bordode District that is
on a road Addis Ababa to Dire Dawa, Harar at adistance of 276 Km at east where the community service is
attractive and growing. And near country Djibouti, Somalia and Somali Land on both asphalt road and real
way. 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.

Project Proposal For MMMM+Vegetable And Fruit Production

 Project Proposal For MMMM+Vegetable And Fruit Production

1.2. Land Availability

There is sufficient cultivated land especially accessed for vegetable production investment to be used with
supplementary irrigation. The project site is very near (in a range of 5 to 12 km) to market. In this area,
damped water resource is available that could be extracted for irrigation. The alluvial soil of the District is
very conducive for vegetable production. 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. Source: OPALR No.1180/2020. Currently the Gumbi Bordode District administration has
embarked re-development schemes that intend to recycle irrigation land, which would invariably require
employing a land and property valuation system to pay adequate compensation for previous developments
as well as to allocate land for new developments. It has delivered considerable land to development, transiti
onal and expansion areas.

1.2. 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 Gumbi Bordode 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, Gumbi Bordode District is
the ideal place for vegetable 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

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 Project Proposal For MMMM+Vegetable And Fruit Production

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.

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 MMMM+ Vegetable and Fruit production
in Gumbi Bordode District.

1.3. 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.
1.4.1. 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.
1.4.2. 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.
1.4.3. 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.

1.5 PROMOTER’S BACKGROUND

The promoter, Mutawakil shafi Ismael 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 non profit endeavours.

Project Proposal For MMMM+Vegetable And Fruit Production

 Project Proposal For MMMM+Vegetable And Fruit Production

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

1.4. Project Description

The vegetable production project is assumed to be implemented on a total of 400 hectares of land out of
which 99.75 hectares are for vegetables production while the remaining 0.25 hectare of land is for built up
area. The project components include site selection, crop and variety selection, land preparation, including
manure, seeding, thinning, transplanting, weeding, cultivation, frequent irrigation, disease and pest control,
harvesting, transportation, storing and marketing. The selected vegetables of the projects include tomato,
pepper, Cole cabbage, onion, garlic, and potato. The production of the vegetables is performed in rotation
bases taking to consideration the appropriate time and market demand value. The project land preparation,
cattle dung manure, other inputs and harvested yield are transported using tractor rent for the farm. Dam,
surface water is extracted from dug well to be pumped by generator power to be used for supplementary
irrigation.

1.10. Market Situation

1.10.1. Supply and Demand
Vegetables such as tomato, onion, pepper, compact cabbage, bulb crops onion and potato are produced in
the woreda. The average area covered by vegetable crops in Gumbi Bordode District is about 374 hectares
and from which about 38,752 quintals was produced. Productivity in Gumbi Bordode District is 103.5
Qtls./ha. Vegetable market has big local and foreign market demand. Crops like tomato, onion, garlic,
potato, compact-cabbage and green pepper are highly demanded crops for fresh use. Locally and abroad
on the one hand, and some are used as a raw material for processed and canned industrial product at
medium level for export on the other hand. The yearly production of vegetables for the neighboring regions
is also huge. Generally, production of vegetables in the District and the neighbouring regions has been
increasing since 1991, due to high market demand. However, the current vegetable production could not
satisfy the domestic and export demand.

1.10.2. Projected Demand

The demand for vegetable product is mainly influenced by population growth and income raise the present
value for each Kgs of vegetables 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.
1.10.3. Farm Capacity
Considering the agro-climatic condition, pest, disease occurrence, and market demand the project is
planned to produce six types vegetable crops namely tomato, sweet pepper, compact cabbage, onion,
potato, papaya with outcome 2,420 tones of vegetables per annum .

2. Purpose of project
The initiatives are intended to be established by private investors as a business endeavour. 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 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.

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 Project Proposal For MMMM+Vegetable And Fruit Production

3. Project Service
MMMM+ vegetable and Fruit production is an interesting and new established farm which going to
produce Vegetable and fruit for people in need. It startup investment with good management business plan
to provide unique agricultural 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
Vegetable and fruit for more than 80,000 people per years domestically and export in and across country
away at Bordode road.

1.7 SOCIAL AGRICULTURE

The location is great to start the business providing nice and quality agricultural to the clients
because there are good agriculture offering institutions all around the town. The towns are
equipped with every form of public transit, utility, infrastructure, and social agricultural facility.
The proposed location is connected to Miesso District to the east, East shawa Zone to the west and
Ancar to the south, and Afar Region to the north.

3.1. Socio Economic Service

The town dwellers however, engaged in different service and commercial activity like wholesaler, trade
and retailer where agricultural production and industrial goods are traded. 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.

4. PROJECT BENEFIT FOR THE COUNTRY ECONOMY

 The last two decades, Ethiopia has been working tirelessly to transform its economy from a
closed, highly regulated, centrally planned and public dominated sector to an open,
deregulated and market-based economy. The reform program has resulted successful
economic growth rates, significantly higher volume of exports and private investment.
 Thus, by realizing the current enabling investment in Ethiopia in general and the investment
opportunities in Gumbi Bordode District is particular, the vegetable production project is
promoted to implement in Gumbi Bordode District.
 At present there is a great demand for fresh vegetables production for both domestic and
export markets. The establishment of such farm will have a foreign exchange saving effect to
the country by substituting the current imports. Moreover, there is also a considerable
production and export potential.
 This Business plan project proposal is to established vegetable and fruit production to
provided fresh vegetable and fruit for all who need in/around Gumbi Bordode District.
 There are high demand for both unemployment and insufficient fresh vegetable and fruit
supply at all level as general particularly in Gumbi Bordode District. The current demand
customer for estimated business plan proposed is total of 100,000 people per year.
 The overall total land required for these investment is 400hac required by Lease from your
District in long term (reference is 10 years at rate of 1.35 birr/ ).

Project Proposal For MMMM+Vegetable And Fruit Production

 Project Proposal For MMMM+Vegetable And Fruit Production

 The total cost of initial investment requirement is estimated at about Birr 25,000,000.00 ETB
out of which Birr 17,500,000 E.T.B is loan from bank in long term of reference of 10 years at
rate of 8% and the remaining 7,500,000.00 E.T.B is covered by promoter.
 The project will create employment opportunities for 140 persons. According to business
plan, the project will received of 9,000,000 ETB per year from supply of production. Out these
540,000 ETB will be repaid to yearly lease payment. From startup budget 2,500,000 ETB will
be utility of project operation and 1,407,976 will be profit of MMMM+ Vegetable and fruit
production in first years.
 In view of attaining the above stated objectives, especial attention is given in investigating the
probes and cons, which persist in the number of unemployment and insufficient of vegetable
due shortage of production in the area.

4. Management Summary

5.1. 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.

5.2. 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. General Manager, Secretary, Accountant, Accounting clerk,
Production Head, Store keeper, Sales man, Guard, Laborers, Mechanic and Driver

CEO

General Administration Manager Legal Advisors

Production department Internal Auditors and

Market Department
Seller inspection

Supervisor

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6. Cost of Investment
The project needs a total of ETB 25,000,000.00 for the implementation of the project Out of these
17,500,000.00 will be allocated for fixed investment capital. Cost of 7,500, 000.00 ETB will be allocated
for working capital during its project life.

7. Land Requirements
The total land requirement of the project is 400 hectare, out of which 0.5 hectare is a built-up area which
can accommodate product and raw material stores, offices and fences. Whereas 99.5 are cultivated land.

No Description Plot in hectare

1 Cabbage 55
2 Onion 40
3 Tomato 30
4 Potato 35
5 Sweet paper 45
6 Compact Cabbage 60
7 Corot 35
8 Garlic 45
Papaya 40
Green paper 14
9 Whitehouse 0.5
10 Nursery 0.2
11 Dike 0.2
12 Office 0.1
Total 400

The lease value of land at a rate of Birr 1.35 per m2 and for 10 years is estimated to be Birr 1,350,000

Description Unit Quant Cost in Birr

Lease Values of land in long term of 10 years Hectare 400 5,400,000
Lease payment at initial rate 20% Hectare 400 108,000

8. Source of fund for Vegetable and fruit production

Source of fund Share in % Amount in Birr
Own capital 30 7,500,000.00
Loan from bank 70 17,500,000.00
Total 100 25,000,000.00

9. Operational Cost
8.1. Raw Materials of the project

Six types of vegetable crop seeds, the pesticides and other Auxiliary materials required. The raw materials
requirement of the envisaged project
Table: cost required for input /Raw Materials Requirements will be 621,000 ETB

No Description Plot in hectare unit in price Quant Total Price

1 Cabbage 55 500 25 12500
2 Onion 40 500 300 150000

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 Project Proposal For MMMM+Vegetable And Fruit Production

3 Tomato 30 500 75 37500

4 Potato 35 300 250 75000
5 Sweet paper 45 750 300 225000
6 Compact Cabbage 60 600 60 36000
7 Corot 35 500 60 30000
8 Garlic 45 500 60 30000
9 Papaya 40 500 25 12500
10 Green paper 14 500 25 12500
Total 1180 621,000

8. Operational cost of project

No. Project activity Planned cost per year in birr

Land preparation for cultivatation 5,000,000
Machineries and Equipment 3,180,000
Infrastructure installation 2,000,000.00
Parches of input of agricultural production 621,000
Office equipment 2,500,000.00
Salary payment 3,316,692
Utility of project 3,400,000.00
Working capital 2,500,000

8. Summary of Initial Investment Cost

No. Cost Items Total Cost (‘000

Birr) %
1. Fixed Cost 16,080,000 63
Land lease value of 400 hac at rate of 1.35 5,400,000
birr
Building and Civil Work 3,000,000
Infrastructure Installation 2,000
,000.00
Plant Machinery and Equipment 3,180,000
Office Furniture and Equipment 2,500,000
2. Operating cost 9,216,692 37
Salary 3,316,692
Utilities 3,400,000
Working capital 10% 2,500,000
3. Total Investment Cost 25,000,000 100

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9.2. Pay back payment advance

Based on the qualified project benefit and cost of financial liability, the project assessed its cost
input, expense and overhead costs, with its revenue and timing returned payback period are
determined as repay back the advance monthly from income 8% of total cost in 10 years. The
source of revenue will be from totally ETB 17,500,000 to be collected per year. From these
revenues, the municipality will be pay to bank 8% of 1,400,000 per year in 10 years. Which
yearly ETB 18,900,000 ETB by through long-term advance. According to this will be repay
thought the year until 10 years (from 2024-2033)
Project Duration: 2024 – 2033 (10 years)

Project intervention: Gumbi Bordode District

Project Beneficiary: 100,000

Project Budget: ETB: 25,000,000.00 out of this 17,500,000ETB Loan from bank in long term

8.1. Summary of General Project Expenditures from 2024-2033

Summary of General Project Expenditures from 2024-2033

Direct Other land lease bank loan Income
Year cost expense payment payment Total Cost per year Profit

2,023 2,500,000 0 27,000 0 0 progress 0

2,024 5,000,000 300,000 540,000 1,750,000 7,592,024 9,000,000 1,407,976
2,025 5,100,000 306,000 135,000 756,000 6,299,025 9,180,000 2,880,975
2,026 5,202,000 312,120 135,000 756,000 6,407,146 9,363,600 2,956,454
2,027 5,306,040 318,362 135,000 756,000 6,517,429 9,550,872 3,033,443
2,028 5,412,161 324,730 135,000 756,000 6,629,918 9,741,889 3,111,971
2,029 5,520,404 331,224 135,000 756,000 6,744,657 9,936,727 3,192,070
2,030 5,630,812 337,849 135,000 756,000 6,861,691 10,135,462 3,273,771
2,031 5,743,428 344,606 135,000 756,000 6,981,065 10,338,171 3,357,106
2,032 5,858,297 351,498 135,000 756,000 7,102,827 10,544,934 3,442,108
Total 5,975,463 358,528 1,620,000 7,798,000 61,135,783 87,791,656 26,655,873

9. Project monitoring and evaluation

 Significant effort will be made for all activities of the restaurant.

 Seasonally implementation will be made by discussion effective report will be made

 In the middle term the discussion will be conducted

 Supervision documentation will be reported to concerned body

Project Proposal For MMMM+Vegetable And Fruit Production
 Project Proposal For MMMM+Vegetable And Fruit Production

 The team discussion will be initiated

 On the progress activities the report will be papered and the weakness of ongoing activities take
into consideration

 Control group will be established to achieve the activities hence,

10. Budget management

At the beginning of each year, budget should be established on annual basis. This annual budget should be
allocated to all departments based on the responsibility assigned to them. Accordingly, the budget will be
classified in to project plan, marketing plan, financial plan, and human resource plan. This annual plan will
be divided into quarterly, monthly, weekly and daily basis. Duties in each individual will be allocated to
individuals. At the end of each day, the result achieved and challenges faced, the operation will be reported
to immediate team leader. Based on the daily outcome, action should be taken by concerned body if there
is negative variation between plan and outcome. At the end of each week, the result of each section will be
reported to leaders. Annually the overall achievement will be evaluated through financial statements and
performance evaluation report. This annual report shows the current operation and performance
achievement and will be used to identify strength, weakness and used as a base by the accounting period
plan.
11. Conclusion
Vegetable production in Gumbi Bordode District great advantage for producer from the facts that the
District strategic location being nearer to export market. The availability human labor force of quarantine
and other services will make the ideal place for the project. The financial analysis of this vegetable
production project profile indicates that it will invest the total cost of birr 25,000,000.00 from this total
investment cost birr 7,570,000 will be allocated for fixed investment and the remaining birr 1,219,000.00
will be allocated for working capital during its project life and 4,620,000 ETB other utility of project.
The project also provides socio-economic benefits to the District: alleviating the existing shortage of
vegetable production, creating jobs and thereby reducing unemployment, and hence contributing its share
to the growth of the District economy through taxes paid on revenue and others.

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Project Proposal For MMMM+Vegetable And Fruit Production