Solar Energy Implementation

(Business Plan, Benefit Management Plan, Scope Of

Project, Critical Path)
Institute of Cardiology, Faisalabad
By Ocentra Engineering Services

Group Members:
Qamar Hassan Iqbal- 51070
Muhammad Shoaib-52514
Shahan Ali-50105
Institute of Cardiology, Faisalabad

 Background:
Faisalabad Institute of Cardiology, Faisalabad is third specialized autonomous institute for
heart disease was established on Tuesday 13th November 2007.
 The objectives of this institute are:-
Provide cardiac diagnostic and treatment healthcare facilities of highly specialized nature.
Train medical, paramedical and staff nurses to provide optimum cardiac care.
Provide research facilities in the field of Cardiology and Cardiac Surgery.
To facilitate post-graduation training programs in collaboration with CPSP and UHS.
Become a center of initiating public health awareness programs to prevent cardiac diseases.
Provide advanced cardiac life support training to medical personnel and basic life support
programs (BLS) training at community level to save precious human lives.
Objectives: (Implantation of Solar)

The objectives of this project are to:

 Reduce energy costs for the hospital
 Provide a reliable source of energy to the hospital
 Reduce the carbon footprint of the hospital
Scope:

 Site survey and analysis

 Design and installation of solar panels
 Integration of solar panels with the hospital's existing electrical systems
 Commissioning of the solar project
 Training of hospital staff on the use and maintenance of the solar project
Constraints:

The constraints of this project are:

 Limited budget of 59,250,000 PKR
 Limited timeline of 6 months for implementation
Analysis:

Assumptions:
The assumptions of this project are:
 30% reduction in energy costs
 5% increase in the value of the hospital due to the installation of solar panels
 20% reduction in carbon footprint
NPV Analysis:
 Initial Investment 59,250,000 PKR Net Cash Flow: Year 1: 25,894,875 PKR Year
2: 26,536,379 PKR Year 3: 27,193,765 PKR Year 4: 27,867,426 PKR Year 5:
28,557,764 PKR, Discount Rate: 12% Time Period: 5 years
NPV = CF₁ / (1 + r)¹ + CF₂ / (1 + r)² + CF₃ / (1 + r)³ + CF₄ / (1 + r)⁴ +
CF₅ / (1 + r)⁵ - Initial Investment
NPV = 25,894,875 / (1 + 0.12)¹ + 26,536,379 / (1 + 0.12)² + 27,193,765 /
(1 + 0.12)³ + 27,867,426 / (1 + 0.12)⁴ + 28,557,764 / (1 + 0.12)⁵ - 59,250,000
NPV ≈ 104,090,502.36 – 59,250,000 PKR
NPV ≈ 44,840,502.36 PKR
The NPV of the project is approximately 44,840,502.36 PKR.
 IRR Analysis:

NPV (At Lower Rate) = 25,894,875 / (1 + 0.20)¹ + 26,536,379 / (1 + 0.20)² + 27,193,765 / (1 + 0.20)³ +
27,867,426 / (1 + 0.20)⁴ + 28,557,764 / (1 + 0.20)⁵- 59,250,000

Calculating each individual term:

NPV = 25,894,875 / 1.20 + 26,536,379 / 1.44 + 27,193,765 / 1.728 + 27,867,426 / 2.0744 + 28,557,764 /
2.48928 – 59,250,000

NPV (At Lower Rate) ≈ 69,748,504.43-59,250,000 PKR

NPV (At Lower Rate) = 10,498,504 PKR

NPV = 25,894,875 / (1 + 0.30)¹ + 26,536,379 / (1 + 0.30)² + 27,193,765 / (1 + 0.30)³ + 27,867,426 / (1 +

0.30)⁴ + 28,557,764 / (1 + 0.30)⁵- 59,250,000
IRR Analysis:
Calculating each individual term:
NPV (At higher Rate) = 25,894,875 / 1.30 + 26,536,379 / 1.69 + 27,193,765 /
2.197 + 27,867,426 / 2.8561 + 28,557,764 / 3.71293 – 59,250,000
NPV (At higher Rate) ≈ 25,894,875 / 1.30 + 26,536,379 / 1.69 + 27,193,765 /
2.197 + 27,867,426 / 2.8561 + 28,557,764 / 3.71293 – 59,250,000
NPV (At Higher Rate) ≈ 16,899,850.57-59,250,000 PKR
NPV (At Higher Rate) = -42350150 PKR
IRR= 0.2+ ((10,498,504 / (10,498,504 +42350150))*(0.3-0.2)
IRR = 0.2+ (10,498,504 /52848654)*0.1
IRR= 0.2+0.02
IRR = 0.22 (22%)
Payback Period Analysis:
Recommendations:
 Proceed with the Project
 Optimize Financing Options
 Conduct Detailed Risk Assessment
 Monitor Government Incentives and Policies
 Engage Stakeholders
 Periodic Performance Monitoring
 Promote Sustainability and Environmental Benefits
Implementation Plan:
 Starting Date: 01-Nov-2022
 Ending Date: 30-Apr-2023
Implementation Plan:
Work Breakdown Structure (WBS):
Implementation Plan:
 Dependencies
 Site Assessment
 Engineering and Design
 Permitting and Approvals
 Procurement
 Training and Handover:
Implementation Plan:
 Task Durations:
 Site Assessment
 Engineering and Design
 Permitting and Approvals
 Procurement
 Installation
 Electrical Connection
 Commissioning and Testing
 Training and Handover
Implementation Plan:
 Resource Allocation:
 Project Manager
 Solar Energy Experts
 Engineering Team
 Procurement Team
 Installation Team
 Electricians
 Permitting and Regulatory Team
 Training and Support Staff
Implementation Plan:
 Milestones:
 Site Assessment Complete
 Engineering Design Finalized
 Permits and Approvals Obtained
 Procurement Completed
 Installation and Mounting Complete
 Electrical Connection Established
 Commissioning and Testing Done
 Training and Handover
Implementation Plan:
 Gantt chart with Critical Path:
Conclusion:
The implementation of a solar project for a Cardiology Hospital is a viable
project with a positive NPV and a relatively short payback period. The project
meets the objectives of reducing energy costs, providing a reliable source of
energy, and reducing the carbon footprint of the hospital. Since the project's IRR
is greater than the minimum acceptable rate of return, it can be safely assumed
that a profit will be made from it. Therefore, it is suggested that the project be
continued.
Thank You