Investment Office ANRS

Project Profile on the Establishment of High

School

Development Studies Associates

(DSA)

October 2008
Addis Ababa
 Table of Contents

1. Executive Summary................................................................................1
2. Service Description and Application.....................................................1
3. Market Study, School Capacity and Service Delivery Program........2
3.1 Market Study.......................................................................................................2
3.1.1 Present Demand and Supply........................................................................2
3.1.2 Projected Demand........................................................................................9
3.2 School Capacity.................................................................................................14
3.3 Service Program.................................................................................................14
4. Equipments and Utilities......................................................................15
4.1 Availability and Source of furniture and Equipment.........................................15
4.2 Annual Requirement and Cost of furniture and Equipment..............................15
5. Location and Site...................................................................................15
6. Service Delivery Process and Engineering.........................................16
6.1 Service Delivery Process...................................................................................16
6.2 School Furniture and Equipment.......................................................................16
6.3 Civil Engineering Cost......................................................................................16
7. Human Resource and Training Requirement....................................17
7.1 Human Resource................................................................................................17
7.2 Training Requirement........................................................................................17
8. Financial Analysis.................................................................................17
8.1 Underlying Assumption.....................................................................................17
8.2 Investment..........................................................................................................18
8.3 Service Costs.....................................................................................................19
8.4 Financial Evaluation..........................................................................................20
9. Economic and Social Benefit and Justification..................................21
ANNEXES....................................................................................................22
 1. Executive Summary
This profile envisages the establishment of high school (s) in Amhara Region to enroll
550 students.

The present demand for standard high schools in urban centers of the Region, mainly in
zonal towns, is very crucial.

The total investment requirement is estimated at Birr 2.1 million out of which 56.2% is
for furniture and equipment.

The plant will create employment opportunities for 19 persons.

The project is financially viable with an internal rate of return (IRR) of 17.9% and a net
present value (NPV) of Birr 1.0 million discounted at 18%.

2. Service Description and Application

These are high schools from 9th to 10th grades and college preparatory classes which
provide high standard and rigorous teaching and learning for students who can afford to
pay the tuitions. The schools will be similar to those like St. Joseph, Cathedral, School of
Tomorrow and Nazareth in Addis Ababa. These schools are known for their rigorous
teaching and almost all students from these schools pass national examinations. This
project idea is to establish such private high schools at least in the major urban centers of
the Region.

In developed countries the best and most efficient, though expensive, social services are
provided by the private sector. The participation of the private sector in the provision of
social and other services will expand the volume of these services and also will reduce
the burden on public institutions which provide such services. It will also give more
choices to users of these services. Those who can afford will go to private organizations

1
and the rest will use the services of state or public institutions. This is what is happening
mainly in Addis Ababa to day in the areas of health and education.

Education is key to change and progress, therefore, the Government of Ethiopia has
adopted a new Education Sector Development Policy and Program in 1994 to make this
sector as one of the pillars for poverty reduction and benefit of the masses. In line with
the Government Policy and Program, the Amhara Reginal Government has developed its
own Policy and Program.

3. Market Study, School Capacity and Service Delivery

Program

3.1 Market Study

3.1.1 Present Demand and Supply

The general education supply and standards of the Amhara Region in relation to the
country is presented bellow.

Table 1 indicates that the ratio of total school age population to total population is about
24.8% and the ratio of the total enrolled students to the total population is about 13.2 %,
which is below the developing world standard of 15%, while the ratio of the total enrolled
students to total school age population is about 53.4%, which indicates that about 47% of
the school age population of the country did not enroll in 1994 E.C.

At Regional level, Tigray has the highest gross enrollment ratio (GER) in both Primary
(77.6%) and Secondary (38.3%) schools among the six populated Regions (excluding
Addis Ababa), followed by SNNPR (67.1%) and then by Oromia (62.4%) in Primary
schools and vice versa in Secondary Schools (15.9% in the latter and 13.2% in the
former). Whereas Amhara Region has very poor GER both in primary (58.1 % ) and
secondary (12.0%) education which is last third in both cases from Somali and Afar
Regions.

2
The present low enrollment rate of the region is directly related to the supply sides of
educational inputs. The existing 25,657 sections which are supposed to serve 1,282,850
school age children are obliged to enroll 655,198 extra students.

The very high gross enrollment ratio exhibited in Gambella and Benshangul Gumuz
seems that students enrolled are above the school age population.

The number of Existing Primary and Secondary Schools and Students Enrolled by
Regions in 1994 E.C is indicated bellow in table 2. There were a total of 12,087 Primary
(of which 619 are non-government) and 435 Secondary (of which 54 are Non-
government) Schools in the country during 1994 E.C. with a total of 117,308 class rooms
of which 108,888 are Primary serving 7,982,760 students and 8,420 Secondary sections
serving 684,630 students.
Table -1-
Population, school Age Population and Enrollment Ratio By Region (1994 E.C.)
Population in ‘000’
No

3
 P
(7
1 Tigray 3,797
2 Afar 1,243
3 Amhara 16,748
4 Oromia 23,023
5 Somalia 3,797
6 B.Gumuz 551
7 SNNPR 12,903
8 Ganbela 217
9 Harrari 166
10 A.Ababa 2,570
11 D.Dawa 330
Total 65,345
Sourece: Education Statistics Annual Abstract,1994 E.C (2001/02)
Out of the total schools, 3,060 are located in Amhara Region, of which 2,975 and 85 are
Primary and Secondary schools, respectively. The Primary schools have a total of 25,657
sections serving 1,948,048 students while the Secondary schools have 1,556 Sections
serving 119,986 students.

In the same table we can also look at the student-section ratio of each Region. In this
respect, students per section in Primary School are higher in Amhara Region (75.9) next
to SNNPR (79.72) among populated Regions. But students per section in Secondary
Schools are higher in Somali Region (134.7) Followed by Afar (108.0). Amhara Region
is 8th with 77.1 student section ratio.

Table-2-
No of Primary and Secondary Schools and Students Enrolled by Region (1994 E.C )
No. Region School Enrollment Sections Student/
section
Primary Secondary Primary Secondary Primary Secondary Primary Secondary

4
1 Tigray 926 41 588941 72280 9023 903 65.3 80.0
2 Afar 142 7 29124 3455 695 32 41.9 108.0
3 Amhara 2975 85 1948048 119986 25657 1556 75.9 77.1
4 Oromia 4592 139 2946790 225274 40177 2835 73.3 79.5
5 Somali 272 14 106572 5253 1474 39 72.3 134.7
region
6 B..Gumu 275 12 102009 5977 1735 91 58.8 65.7
z
7 SNNPR 2352 84 1770419 114527 22224 1271 79.7 90.1
8 Gambell 143 7 40497 2069 654 36 61.9 57.4
a
9 Harrari 48 4 27271 6402 514 80 53.1 80.0
10 A. 303 58 385093 122421 6115 1484 63.0 82.5
Ababa
11 D. Dawa 61 4 37996 6986 620 93 61.3 75.1
12089 455 798276 684630 108888 8420 73.3 81.3
0
Source: Education Statistics Annual Abstract, 1994 E.C (2001/02)

In the Amhara Region, the provision of social services by the private sector is almost
non-existent. However,regional information indicates that NGOs are participating mainly
in basic education programs. In the region there are 16 accredited and 14 pre-accredited
private colleges located in 8 towns. Their capacities are 4,952 (accredited colleges) and
3,154 (pre-accredited colleges). Out of the figures 3,705 (74.82% - accredited) and 2,289
(72.57% - pre-accredited) designated for 10+1 teacher training programs and the
remaining 1,247 (25.18% accredited) places are assigned for other fields of study.

Moreover, there are also one TTC, two TTI’s, 131 CSTC ’s and 20 middle level TVET
institutions in the region. These institutions could not meet the human resource demand
of the region.

5
 The project idea of private high schools in the region stems from the fact that such high
schools are in great need by many parents in the major urban centers, like Bahir Dar,
Gondar, Dessie- Combolcha, Debre Birhan and Debre Markos to make a private high
school a financially viable and rewarding venture.
.
The quality, access, equity and efficiency of the existing educational service delivery
system of the country are in general below standard. A brief look of education service
delivery of the Amhara Region especially with reference to Secondary level is indicated
below.

The new Education Policy of Ethiopia (1994) sets the following norm for this level of
education. “Secondary Education will be of four years duration, consisting of two years
of general secondary education which will enable students identify their interest for
further education, for specific training and for work. General education will be
completed at the first cycle (grade 10). The second cycle secondary education and
training will enable students to choose subjects or areas of training which will prepare
them adequately for higher education and for work)”

The comprehensive secondary education (grade 9+10) is meant for 15 and 16 year age
groups. Since this is the termination of general education, those who complete the level
are expected to join the medium & intermediate technical vocational skill training
programs which provide three level certification depending on training duration. Hence,
10+1, 10+2 & 10+3 entitle certificate level 1, certificate level 2 and diploma respectively.

Higher secondary education (grade 11 & 12) designed for 17 & 18 year age group. If
successful the group is to pursue tertiary education. Table 3 shows trends of secondary
education in the ANRS.

Table 3: Trends Secondary Education in the AARS

Indicato Unit 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05
rs
Gross % 5.9 6.7 7.4 8.1 8.3 8.0 13.05 13.87 19.3
Enrollm
ent Ratio
Net 9.8
Enrollm

6
ent Ratio
Gross 10.9 11.4 13.71 17.0 *
Participa
tion Rate
Number No 77 80 81 81 82 85 87 99 110
of
Schools
Number No 2,264 2,194 2,286 2,269 2,415 2,746 2,587 2,731 3,865
of
Teachers
Teacher No 1:32 1:40 1:43 1:50 1:50 1:43 1:43 1:42 1:56
Student
Ratio
Section No 1:62 1:70 1:71 1:77 1:79 1:77 1:66 1:58 1:73
Student
Ratio
Textboo 1:1 1:1 1:1
k
Student
Ratio
Repetiti % 11.43 9.80 8.16
on Rate
Drop out Rate %
16:05 14:02 11:29
Promotion Rate %
72.52 76:52 80.55
Number No 75,778 87,432 98,428 110,970 120,107 119,697 105,253 131,519 169,993
of
Students
School
Facilitie 2722
s (65.1%)

TV ----

Library

1024
(24.5%)

Latrine

2,448 (58.5%)
Clinic

1095 (26.2%)
Water

7
 52.6%
1 shifts

Shift System

46.9%
2 shifts

Source: DSA, ANRS' potential Assessment Survey, Education Sector final Report, 2006.
*About 83% of the population age 15 to 16 are out of the education system.

A. Access
Out of 106 Woredas in the Amhara National Regional State 27 Woredas do not have
secondary schools. In the period 1996/97-2000/01, the average annual student number
growth was 14.62% (male 14.9, females 14.2) while number of teacher average annual
growth was only 1.6%. The average annual growth rate for gross enrollment ratio was
10.1% (male 10.0 and female 9.9). Pupil section ratio grew by 14.0% and 6.8%
respectively.

Available information indicates that to meet the goal of increasing access to education the
ANRS has planned to construct 481 lower primary schools, upgrade 220 primary schools,
expand 2,024 classrooms in existing overcrowded schools, maintain and expand other
facilities. The task of construction requires technical skills, capital and immense work,
which requires the participation of the private sector investment.

B. Equity
Equity is expected to address the question of gender and zonal gaps. In 2003/04 the gross
participation was 13.71% (17.7% male, 9.57% female). The zonal disparity in provision
of secondary education is shown in table 4.
The disparity among the zones above the regional average reads as; Bahir Dar(50.1%,
South Wollo(10.3%), North Gonder(9.7%), Awi(9.6%) and North Shewa (8.8%). On the
other end, zones below the regional average are; Oromiya (4.0%), Wag Himera(4.1%),
West Gojjam (5.5%), South Gonder (5.9%), North Wollo (6.1%) and East Gojjam(7.6%).

8
The gender parity index is highest at North Gonder zone and lowest at South Wollo,
Oromiya and North Wollo zones.

Table 4: Supply and indicators of Secondary Education for 2000/01 by Zone

Gender Pupil Pupil
Gross Enrollment parity teacher Section % of Qualified
Zone Ratio Index Ratio Ratio Teachers
Male Female Total
Male Female Total
West 6.3 4.7 5.5 0.7 52 86 50 42 49
Gojja
m
Awi 10.1 9.1 9.6 0.9 46 75 40 67 41
East 8.4 6.8 7.6 0.8 49 80 53 50 53
Gojja
m
North 10.0 7.5 8.8 0.7 40 68 35 29 35
Gojam
Oromi 4.9 3.0 4.0 0.6 41 62 54 100 55
ya
South 12.2 8.4 10.3 0.6 53 80 43 16 42
Wollo
North 7.7 4.5 6.1 0.6 60 79 32 25 32
Wollo
Wag 4.5 3.7 4.1 0.8 50 77 45 0 43
Humer
a
South 6.9 4.8 5.9 0.7 46 70 36 0 35
Gondo
r

North 9.0 10.3 6.7 1.1 53 89 37 14 36

Gondo
r
Bahir 59.2 43.1 50.1 0.7 55 86 52 64 54

9
 Dar
Region 9.1 7.4 8.3 0.8 50 79 42 33 41
Source: DSA, ANRS' potential Assessment Survey, Education Sector final Report, 2006.
C. Quality
Quality in education is a necessity which needs to be reflected in goals, content, learning
environment, processes, mode of assessment plus internal efficiency and teacher
qualification etc. Our education system suffers from lack of almost all the quality
measures.

The average annual growth rate of student population in the period 1996/97-2000/01 was
14.62%, while that of teachers was only 1.6%. Pupil teacher ratio also grew by 14.0% in
the same period, while pupil section ratio increased by 6.8%. This means more students
per section & per teacher affecting quality negatively. In the period under consideration
regionally percent of qualified teachers was 41% male & 33% female). 59% of the
teaching force in the secondary level is under qualified. The aforementioned problems
coupled with shortage and poor quality of instructional materials add to the inadequacy of
secondary education quality in the region.

D. Efficiency
Internal efficiency could be measured among other things by reviewing trends in
repetition rate, dropout rate, promotion rate and graduation rate. The second education
development program (ESDP-2003-2005) of the ANRS has set targets for these
important measures of internal efficiency, Except for graduation rate. Thus, promotion
rate will be raised to 80.55% (2004/05) from 72.52% in 2002/03. Repetition rate and
drop out rate shall be decreased from 11.43% in (2002/03) to 8.16% in (2004/05) and
from in 16:05% in (2002/03) to 11:29% in 2004/05 respectively.
In general the current education performance of the Region demands an overall
improvement with private sector participation.

3.1.2 Projected Demand

Sustainable development is about enhancing human well-being through time and hence
the importance of education for human resource development does not need any

10
elucidation. Globally, it has been observed that countries attached the highest priority to
education since the development of other sectors like health, agriculture and industry is
dependent on the development of education. The Government of Ethiopia accepts
education as fundamental right for its citizens as well as its commitment to provide
access to education to every citizen. But due to financial constraints of the Government

to spend on education sector, the Government has introduced the concept of Private
Partnership in its Education Sector Development Policy and therefore, the private sector
investment is being encouraged with various incentives to lower the burden of the
Government.

The education and training policy adopted by the nation in 1994 sets the following
environments to encourage private investment in the sector.
Governmental and non-governmental organizations can establish
training programs according to their needs.
Non-formal education and training programs will be organized by
the various development and social institutions in coordination with
the Ministry of Education.
The participation of various organizations and individuals will be
enhanced in production, supply and distribution of educational
support inputs.
The government will create the necessary conditions to encourage
and give support to private investors to open schools and establish
various educational and training institutions.
The Amhara National Regional State is one of the regions that has benefited from the
situation and has made certain efforts to facilitate the establishment and operation of
private set-ups in education.

After the proclamation that encourages the private sector participation in 1994, over 123
kindergartens, 70 primary schools, 6 secondary schools, 2 technical and vocational
institutes and 5 colleges were established and accredited in Amhara Region. At country
level about 964 kindergartens, 558 primary and 46 senior secondary non-government

11
schools have been constructed by the private sector in 2000/01. The enrollment figure
was 109,358 in kindergarten; 338,158 in primary and 13,748 in secondary schools.

In addition to the aforementioned facts and figures, the following quantitative figures are
presented to indicate the very wide gap of education service existing in Amhara Region.
Education is mainly a function of Population growth, urbanization and per capita income.
By the year 2005/06 the aggregate population size of the Amhara National Regional State
will be 19,154,503 .This will grow to 23,917,000 and 32,735,000 by 2015 and 2030
respectively (Population and Housing Census of Ethiopia). The implications of the
figures are very high for educational operations. As the population continues to grow
social and physical infrastructures are highly demanded. Today among other
infrastructures, schools are the priority demand of each Regional Government and the
Federal Government at large to meet their skilled manpower requirements and
materialize their development programs.

As indicated in the table 5 below, in year 2009 total projected school age population of
Ethiopia will be 23.8 million (17.2 primary and 6.6 million secondary). This school age
population is about 33% of the total population projected for the same year (73.1
million), whish is more than double to that of the developing countries share (15 %). If
we apply the third world class room ratio of 45 students per class room, the total number
of class rooms required in year 2009 is about 1,072,170 (774,090 for primary and
298,080 for secondary).

If we look at the projected school age population and the required class rooms by
Regions in year 2009, Amhara Region has 5.1 million school age population (4.4
primary and 1.7 million secondary), which is the second highest in the country, next to
Oromia Region. This school age population requires a total of about 274,320 class rooms
(197,685 for primary and 76635 for secondary).
Table -5-
Projected School Age Population Of Ethiopia By Region in 2009.
Population in ‘000.
No. Region Primary (7- Secondary Class room
14) (15-18)
Primary secondary

12
 Country total 17202 6624 774090 298080
1 Tigray 996 393 44820 17685
2 Afar 280 119 12600 5355
3 Amhara 4393 1703 197685 76635
4 Oromia 6113 2384 275085 107280
5 Somalia 896 403 40320 18135
6 Ben.Gumuz 140 58 6300 2610
7 SNNPR 3595 1316 161775 59220
8 Gambella 50 19 2250 855
9 Harrari 38 14 1710 630
10 Addis Ababa 411 183 18495 8235
11 Dire Dawa 82 29 3690 1305
Source: Population and Housing Census, Country level 1994 E.C.
In addition assessments of the state of education in the ANRS made by the DSA, has
revealed the following gaps existed in the areas of the educational delivery system in the
region.
Level of Literacy
The national literacy rate level is 29.2% and that of ANRS stands
at 23.1%. Gaps are 70.8% nation wide and 76.9% for ANRS.
Kindergarten Education
Region’s coverage of KG education is only 1.4% with a very high
gap of 98.6%
Primary Education (both first and second cycles)
Participation rate in the region at this level is 64.2% with unmet
need of 35.8%
Secondary Education (both first and second cycles)
In the secondary education system participation rate has reached
17% in the region with a gap of 83.0%.
Teacher Education/Training
2000/01 figures in teaching force qualification in the region have
indicated that 3.4% (first cycle primary), 66.3% (second cycle

13
 primary) and 58.6% secondary (both cycles) were under qualified
and/or unqualified. For 2005/06 alone there will be shortage of
12,768 teachers for all levels.
TVET
17 schools and 4 colleges are established to address the technical
and vocational needs in the area.
Non-Formal Education
Plays very important role in provision of basic education in the
inaccessible areas to increase participation rate at the primary
level.

Special Education
Meant to serve people with disabilities.
Construction
Can facilitate or constrain access in education depending in its
availability or shortage.
Textbook and Instructional Materials
They play important roles in availing quality education.

In general, therefore, in order to provide sufficient and quality education in the Region,
the participation and involvement of the community at large, NGOs, and private
investors in building schools, and providing schools with instructional materials,
equipment, furniture is vital.

Although, traditionally, private schools have been a luxury only the rich can afford, this
is not necessarily the case in the current re-emergence of the private sector in Ethiopia's
education system.

Experiences have shown that development partners in education have contributed a lot in
education delivery and continue to do so. To mention a few, they were involved in
construction, textbook production and distribution, production of furniture, supply of
educational materials and equipment. Sometimes the contributions are in the form of

14
cash, labor and skill/knowledge. The collaboration will be needed more as the demand
for quality education mounts.

3.1.3 School Fee

The proposed school will cater to the needs of children of medium and high income
groups. Currently three categories of schools are being run in Ethiopia, catering to three
main segments of the market, mainly higher medium and low-income groups. The
schools, which serve the high and medium income groups, are run by the private sector.
They usually charge high fees per month per student and these schools have large
facilities, enjoy repute due to their modern system of education by using scientific
techniques and have qualified and specialized faculty. Most private schools in Addis
Ababa fall in the medium category having fee range from Birr 200.00 to Birr 500.0 per
month per student. The third category (medium range) provides facilities even less than
the minimum required by the Ministry of Education, i.e. less space per student (minimum
required 12 sq. ft. per student and high student’ teacher ratio.

Parents are curious about the future of their children so they think extensively before
admitting their children in any school. Following are the main factors (not conclusive) on
the basis of which parents make choice of schools.
1. Distance from home
2. School track record/history
3. General reputation
4. Fees
5. Qualification and experience of the head of school and other faculty.
6. Physical infrastructural facilities.
7. Courses offered and medium of instruction.
Besides the above, there are some other subjective, social and status considerations which
also play an important role in making decision.
In these respect the proposed school is assumed to be of medium category and fulfills the
best standards of its kind, its service charge could be Birr 200.00 per month per student,
which is Birr 2,000.00 per annum excluding annual registration fee.

15
 3.2 School Capacity
The capacity of the proposed high school is assumed to enroll about 550 students at full
capacity.

3.3 Service Program

Reasonable time is required to promote the importance of private school and thus attract
parents towards the school. Therefore, the proposed school is assumed to start operation
at 50% capacity in the first year, 65% in the second year 75% in the third year, 85% in
the fourth year and 100% thereafter.

4. Equipments and Utilities

4.1 Availability and Source of furniture and Equipment

All essential school furniture and equipments such as computers, desks, blackboards,
cupboards and chalk are available locally.

4.2 Annual Requirement and Cost of furniture and

Equipment
The total cost of school facilities is estimated at about Birr 794,000 of which Birr 50,000
and 15,000 are costs of utilities and office furniture, respectively.

Table- 6- Required Furniture and Equipment

Furniture & Equipment Quantity Price/Unit Total (Birr)
Computers 20 10,000 200,000
Server 1 60,000 60,000
Printers (Laser) 1 5,000 5,000
Printers (Dot Matrix) 1 8,000 8,000
UPS 2 3,000 6,000
Books & Labs (Instruments) 150,000

16
Furniture & Fixture 300,000
Electrical & water 50,000
Office Furniture 15,000
Total 794,000

5. Location and Site

Investment opportunity regarding setting up of high school can be opened in big cities
where relatively high and medium income groups are settled, like Bahir Dar, Gondar,
Dessie, Debre Markos, Debre Berhan and Kombolcha.

6. Service Delivery Process and Engineering

6.1 Service Delivery Process
Education Service delivery is a noble and professional activity that requires experiences
and qualifications from different streams of disciplines. At different levels of education,
the teaching process is carried out as per the curriculum, standards, rules and regulations
set by the Ministry of Education of the country. Education service delivery follows the
following major steps.
- The school
- registers students at the beginning of each year/semester,
- allocates teaching periods to each teacher,
- provides teachers with necessary teaching materials (text books, chalks etc)
- Each teacher
- prepares weekly, monthly and annually lesson plan,
- delivers /lectures his lesson plans as per schedules,
- gives home works as required and corrects,
- gives tests and examinations as per schedules, corrects and records
on each student's card/ certificate and gives rank and then pass over same to the
school.

17
 6.2 School Furniture and Equipment
Even though the minimum requirement of furniture and equipments of a high school is
primarily determined by the Ministry of Education, private high schools are required to
supply extra and timely teaching materials so as to develop the all rounded development
of enrolled students.
6.3 Civil Engineering Cost
Private high schools do not have large student population. Average size of a private high
school is about 500 students. For a private high school of 550 students, about 9000m 2 of
land is required of which 800m 2 could be for building class rooms, library, and laboratory
and office buildings. The total construction and civil engineering cost of the school
building is estimated to be Birr 1,200,000.00 at Birr 1500.00 per meter square. Land lease
for social services is assumed to be 25% of normal charge.

7. Human Resource and Training Requirement

7.1 Human Resource

The proposed high school will require the following minimum staff.
Table -7- Required Human Resource
Position Number Salary/month/person Salary/ annum
Faculty Members
Subject specialist 2 2000 48,000
Senior Teachers 3 1500 54,000
Junior Teachers 5 1200 72,000
Administrative staff
Principal 1 2500 30,000
Accountant 1 1000 12,000
Librarian 1 750 9,000
Secretary 1 800 9,600
Guards 3 400 14,400
Cleaner 2 350 8,400

18
Total 19 275,400

7.2 Training Requirement

All teachers should be trained in pedagogical science either in government or private
education institutions and be qualified in each subject given in high schools.

8. Financial Analysis
8.1 Underlying Assumption
The financial analysis of high school project is based on the data provided in the
preceding sections and the following assumptions.

19
 A. Construction and Finance

Construction period 2 years

Source of finance 40% equity and 60% loan
Tax holidays 2 years
Bank interest rate 12%
Discount for cash flow 18%
Value of land Based on lease rate of ANRS
Spare Parts, Repair & Maintenance 3% of fixed investment

B. Depreciation

Building 5%
Machinery and equipment 10%
Office furniture 10%
Vehicles 20%
Pre-production (amortization) 20%

C. Working Capital (Minimum Days of Coverage)

Raw Material-Local 30 days

Raw Material-Foreign 120 days
Factory Supplies in Stock 30 days
Spare Parts in Stock and Maintenance 30 days
Work in Progress 10 days
Finished Products 15 days
Accounts Receivable 30 days
Cash in Hand 30 days
Accounts Payable 30 days

8.2 Investment
The total investment cost of the project including working capital is estimated at Birr 2.1
million as shown in table 8 below. The Owner shall contribute 40% of the finance in the
form of equity while the remaining 60% is to be financed by bank loan.

20
 Table 8: Total initial investment

Total Initial Investment

Item Cost
Land 6,750.00
Building and civil works 1,200,000.00
Office equipment 15,000.00
Vehicles 0.00
Plant machinery & equipment 729,000.00
Total Fixed Investment 1,950,750.00
Pre production capital expenditure 97,537.50
Total Initial Investment 2,048,287.50
Working capital at full capacity 86,473.45
Total 2,134,760.95

*Pre-production capital expenditure includes - all expenses for pre-investment studies,

consultancy fee during construction and expenses for company‘s establishment, project
administration expenses, commission expenses, preproduction marketing and interest
expenses during construction.

8.3 Service Costs

The total service cost at full capacity operation is estimated at about Birr 883 thousands
(see Table 9). Wages and salaries account for 31.2%.
Table -9- Total Service Cost

Total Service Cost at full Capacity

Items Cost
1. Raw materials 0.00
2. Utilities 50,000.00
3. Wages and Salaries 275,400.00
4. Spares and Maintenance 58,522.50
Service costs 383,922.50
5. Depreciation 153,907.50
6. Financial costs
346,064.22
Total Service Cost 883,894.22

21
 8.4 Financial Evaluation

I. Profitability

According to the income statement of the project, the school project will generate profit
starting from the second year of operation.

II. Breakeven Analysis

The break even point of the project is estimated by using income statement projection.
The Project breaks-even breaks evens at 32.7% of capacity utilization.

III. Payback Period

The project will pay back fully the initial investment in the sixth year.

IV. Simple Rate of Return

The simple rate of return of the project at full capacity utilization is 20.5%.

V. Internal Rate of Return and Net Present Value

Based on the cash flow statement, the calculated IRR of the project is 17.90% and the
NPV at 18% discount rate is over Birr 1.0 million.

VI. Sensitivity Analysis

The project will absorb shocks if school fee decreases 10%.

9. Economic and Social Benefit and Justification

Based on the foregoing presentation and analysis, we can say that the proposed project
possesses wide range of benefits that complement the financial feasibility obtained

22
earlier. It will Improve the standard of education to be given to students who can attend
these schools, produce students with strong academic background and with high potential
to go to higher education. In general the envisaged project promotes the socio-economic
goals and objectives stated in the strategic plan of the Amhara National Regional State.
These benefits are listed as follows :

A. Profit Generation

The project is found to be financially viable and earns on average a profit of Birr 0.30
million per year and Birr 3.0 million within the project life. Such result induces the
project promoters to reinvest the profit which, therefore, increases the investment
magnitude in the region.

B. Tax Revenue

In the project life under consideration, the region will collect about Birr 1.2 million from
corporate tax payment alone (i.e. excluding income tax, sales tax and VAT). Such result
creates additional fund for the regional government that will be used in expanding social
and other basic services in the region.

C. Employment and Income Generation

The proposed project is expected to create employment opportunity for 19 professionals

as well as support stuff. Consequently the project creates income of Birr 275 thousand
per year. This would be one of the commendable accomplishments of the project.

D. Pro Environment Project

The proposed production process is environment friendly.

E. Diversification and InterSectoral linkage.

The proposed project helps to diversify ANRS’ and Ethiopian economy. It contributes to
industrialization of the region as well as the county’s economy.

23
ANNEXES

24
 Annex 1: Total Net Working Capital Requirements (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4

Capacity Utilization (%) 0.00 0.00 75% 85% 100% 0%

1. Total Inventory 0.00 0.00 1430015.96 1620684.76 1906687.95 0.00

Raw Materials in Stock- Total 0.00 0.00 355090.91 402436.36 473454.55 0.00

Raw Material-Local 0.00 0.00 355090.91 402436.36 473454.55 0.00

Raw Material-Foreign 0.00 0.00 0.00 0.00 0.00 0.00

Factory Supplies in Stock 0.00 0.00 8618.68 9767.83 11491.57 0.00

Spare Parts in Stock and Maintenance 0.00 0.00 64814.73 73456.69 86419.64 0.00

Work in Progress 0.00 0.00 215466.91 244195.84 287289.22 0.00

Finished Products 0.00 0.00 430933.83 488391.67 574578.44 0.00

2. Accounts Receivable 0.00 0.00 1963636.36 2225454.55 2618181.82 0.00

3. Cash in Hand 0.00 0.00 227511.65 257846.54 303348.87 0.00

CURRENT ASSETS 0.00 0.00 3266073.07 3701549.48 4354764.10 0.00

4. Current Liabilities 0.00 0.00 1963636.36 2225454.55 2618181.82 0.00

Accounts Payable 0.00 0.00 1963636.36 2225454.55 2618181.82 0.00

TOTAL NET WORKING CAPITAL REQUIRMENTS 0.00 0.00 1302436.71 1476094.94 1736582.28 0.00

INCREASE IN NET WORKING CAPITAL 0.00 0.00 1302436.71 173658.23 260487.34 -1736582.28

1
 Annex 1: Total Net Working Capital Requirements (in Birr) (continued)
PRODUCTION
5 6 7 8 9 10

Capacity Utilization (%) 100% 100% 100% 100% 100% 100%

1. Total Inventory 1906687.95 1906687.95 1906687.95 1906687.95 1906687.95 1906687.95

Raw Materials in Stock-Total 473454.55 473454.55 473454.55 473454.55 473454.55 473454.55

Raw Material-Local 473454.55 473454.55 473454.55 473454.55 473454.55 473454.55

Raw Material-Foreign 0.00 0.00 0.00 0.00 0.00 0.00

Factory Supplies in Stock 11491.57 11491.57 11491.57 11491.57 11491.57 11491.57

Spare Parts in Stock and Maintenance 86419.64 86419.64 86419.64 86419.64 86419.64 86419.64

Work in Progress 287289.22 287289.22 287289.22 287289.22 287289.22 287289.22

Finished Products 574578.44 574578.44 574578.44 574578.44 574578.44 574578.44

2. Accounts Receivable 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82

3. Cash in Hand 303348.87 303348.87 303348.87 303348.87 303348.87 303348.87

CURRENT ASSETS 4354764.10 4354764.10 4354764.10 4354764.10 4354764.10 4354764.10

4. Current Liabilities 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82

Accounts Payable 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82

TOTAL NET WORKING CAPITAL REQUIRMENTS 1736582.28 1736582.28 1736582.28 1736582.28 1736582.28 1736582.28

INCREASE IN NET WORKING CAPITAL 1736582.28 0.00 0.00 0.00 0.00 0.00

2
 Annex 2: Cash Flow Statement (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 13863150.00 15599732.28 19963636.36 20661818.18 24392727.27 -2618181.82
1. Inflow Funds 13863150.00 15599732.28 1963636.36 261818.18 392727.27 -2618181.82
Total Equity 5545260.00 6239892.91 0.00 0.00 0.00 0.00
Total Long Term Loan 8317890.00 9359839.37 0.00 0.00 0.00 0.00
Total Short Term Finances 0.00 0.00 1963636.36 261818.18 392727.27 -2618181.82
2. Inflow Operation 0.00 0.00 18000000.00 20400000.00 24000000.00 0.00
Sales Revenue 0.00 0.00 18000000.00 20400000.00 24000000.00 0.00
Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00
3. Other Income 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL CASH OUTFLOW 13863150.00 13863150.00 13727821.73 11926383.93 16505664.06 286902.48
4. Increase In Fixed Assets 13863150.00 13863150.00 0.00 0.00 0.00 0.00
Fixed Investments 13203000.00 13203000.00 0.00 0.00 0.00 0.00
Pre-production Expenditures 660150.00 660150.00 0.00 0.00 0.00 0.00
5. Increase in Current Assets 0.00 0.00 3266073.07 435476.41 653214.61 -4354764.10
6. Operating Costs 0.00 0.00 5700688.04 6423291.77 7507197.38 281160.00
7. Corporate Tax Paid 0.00 0.00 0.00 0.00 3631190.90 0.00
8. Interest Paid 0.00 0.00 4761060.63 2121327.52 1767772.94 1414218.35
9. Loan Repayments 0.00 0.00 0.00 2946288.23 2946288.23 2946288.23
10. Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00
Surplus(Deficit) 0.00 1736582.28 6235814.63 8735434.25 7887063.21 -2905084.30
Cumulative Cash Balance 0.00 1736582.28 7972396.91 16707831.15 24594894.36 21689810.06

Annex 2: Cash Flow Statement (in Birr): Continued

3
 PRODUCTION
5 6 7 8 9 10
TOTAL CASH INFLOW 26618181.82 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00
1. Inflow Funds 2618181.82 0.00 0.00 0.00 0.00 0.00
Total Equity 0.00 0.00 0.00 0.00 0.00 0.00
Total Long Term Loan 0.00 0.00 0.00 0.00 0.00 0.00
Total Short Term Finances 2618181.82 0.00 0.00 0.00 0.00 0.00
2. Inflow Operation 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00
Sales Revenue 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00
Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00
3. Other Income 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL CASH OUTFLOW 19712237.12 15204202.82 14956714.60 11762938.17 11762938.17 11762938.17
4. Increase In Fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00
Fixed Investments 0.00 0.00 0.00 0.00 0.00 0.00
Pre-production Expenditures 0.00 0.00 0.00 0.00 0.00 0.00
5. Increase in Current Assets 4354764.10 0.00 0.00 0.00 0.00 0.00
6. Operating Costs 7507197.38 7507197.38 7507197.38 7507197.38 7507197.38 7507197.38
7. Corporate Tax Paid 3843323.66 4043608.03 4149674.41 4255740.79 4255740.79 4255740.79
8. Interest Paid 1060663.76 707109.17 353554.59 0.00 0.00 0.00
9. Loan Repayments 2946288.23 2946288.23 2946288.23 0.00 0.00 0.00
10. Dividends Paid 0.00 0.00 0.00 0.00 0.00 0.00
Surplus(Deficit) 6905944.69 8795797.18 9043285.40 12237061.83 12237061.83 12237061.83
Cumulative Cash Balance 28595754.76 37391551.94 46434837.34 58671899.17 70908961.01 83146022.84

Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED

CONSTRUCTION PRODUCTION

4
 Year 1 Year 2 1 2 3 4
TOTAL CASH INFLOW 0.00 0.00 18000000.00 20400000.00 24000000.00 0.00

1. Inflow Operation 0.00 0.00 18000000.00 20400000.00 24000000.00 0.00

Sales Revenue 0.00 0.00 18000000.00 20400000.00 24000000.00 0.00

Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00

2. Other Income 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL CASH OUTFLOW 13863150.00 13863150.00 7003124.74 6596950.00 11398875.63 -1455422.28

3. Increase in Fixed Assets 13863150.00 13863150.00 0.00 0.00 0.00 0.00

Fixed Investments 13203000.00 13203000.00 0.00 0.00 0.00 0.00

Pre-production Expenditures 660150.00 660150.00 0.00 0.00 0.00 0.00

4. Increase in Net Working Capital 0.00 0.00 1302436.71 173658.23 260487.34 -1736582.28

5. Operating Costs 0.00 0.00 5700688.04 6423291.77 7507197.38 281160.00

6. Corporate Tax Paid 0.00 0.00 0.00 0.00 3631190.90 0.00

- -
NET CASH FLOW 13863150.00 13863150.00 10996875.26 13803050.00 12601124.37 1455422.28
- - -
CUMMULATIVE NET CASH FLOW 13863150.00 27726300.00 16729424.74 -2926374.74 9674749.63 11130171.91
- -
Net Present Value (at 18%) 13863150.00 11748432.20 7897784.59 8400962.37 6499519.77 636178.49
- - -
Cumulative Net present Value 13863150.00 25611582.20 17713797.62 -9312835.25 -2813315.49 -2177136.99

Annex 3: DISCOUNTED CASH FLOW-TOTAL CAPITAL INVESTED (Continued)

PRODUCTION
5 6 7 8 9 10
TOTAL CASH INFLOW 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00

5
1. Inflow Operation 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00

Sales Revenue 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00

Interest on Securities 0.00 0.00 0.00 0.00 0.00 0.00

2. Other Income 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL CASH OUTFLOW 13087103.32 11550805.41 11656871.79 11762938.17 11762938.17 11762938.17

3. Increase in Fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00

Fixed Investments 0.00 0.00 0.00 0.00 0.00 0.00

Pre-production Expenditures 0.00 0.00 0.00 0.00 0.00 0.00

4. Increase in Net Working Capital 1736582.28 0.00 0.00 0.00 0.00 0.00

5. Operating Costs 7507197.38 7507197.38 7507197.38 7507197.38 7507197.38 7507197.38

6. Corporate Tax Paid 3843323.66 4043608.03 4149674.41 4255740.79 4255740.79 4255740.79

NET CASH FLOW 10912896.68 12449194.59 12343128.21 12237061.83 12237061.83 12237061.83

CUMMULATIVE NET CASH FLOW 22043068.59 34492263.18 46835391.39 59072453.22 71309515.06 83546576.89

Net Present Value (at 18%) 4042481.12 3908113.82 3283743.16 2758919.88 2338067.70 1981413.30

Cumulative Net present Value 1865344.12 5773457.95 9057201.11 11816120.99 14154188.69 16135601.99

Net Present Value (at 18%) 16,135,601.99

Internal Rate of Return 32.0%

Annex 4: NET INCOME STATEMENT ( in Birr)

PRODUCTION
1 2 3 4 5

6
 Capacity Utilization (%) 75% 85% 100% 0% 100%

1. Total Income 18000000.00 20400000.00 24000000.00 0.00 24000000.00

Sales Revenue 18000000.00 20400000.00 24000000.00 0.00 24000000.00
Other Income 0.00 0.00 0.00 0.00 0.00
2. Less Variable Cost 5029432.04 5700022.97 6705909.38 0.00 6705909.38
VARIABLE MARGIN 12970567.97 14699977.03 17294090.62 0.00 17294090.62
(In % of Total Income) 72.06 72.06 72.06 #DIV/0! 72.06
3. Less Fixed Costs 3292316.00 3344328.80 3422348.00 2902220.00 3422348.00
OPERATIONAL MARGIN 9678251.97 11355648.23 13871742.62 -2902220.00 13871742.62
(In % of Total Income) 54 56 58 #DIV/0! 58
4. Less Cost of Finance 4761060.63 2121327.52 1767772.94 1414218.35 1060663.76
5. GROSS PROFIT 4917191.34 9234320.70 12103969.68 -4316438.35 12811078.86
6. Income (Corporate) Tax 0.00 0.00 3631190.90 0.00 3843323.66
7. NET PROFIT 4917191.34 9234320.70 8472778.78 -4316438.35 8967755.20
RATIOS (%)
Gross Profit/Sales 27% 45% 50% #DIV/0! 53%
Net Profit After Tax/Sales 27% 45% 35% #DIV/0! 37%
Return on Investment 33% 39% 35% -10% 34%
Return on Equity 42% 78% 72% -37% 76%
Annex 4: NET INCOME STATEMENT (in Birr):Continued
PRODUCTION
6 7 8 9 10

7
 Capacity Utilization (%) 100% 100% 100% 100% 100%

1. Total Income 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00

Sales Revenue 24000000.00 24000000.00 24000000.00 24000000.00 24000000.00
Other Income 0.00 0.00 0.00 0.00 0.00
2. Less Variable Cost 6705909.38 6705909.38 6705909.38 6705909.38 6705909.38
VARIABLE MARGIN 17294090.62 17294090.62 17294090.62 17294090.62 17294090.62
(In % of Total Income) 72 72 72 72 72
3. Less Fixed Costs 3108288.00 3108288.00 3108288.00 3108288.00 3108288.00
OPERATIONAL MARGIN 14185802.62 14185802.62 14185802.62 14185802.62 14185802.62
(In % of Total Income) 59 59 59 59 59
4. Less Cost of Finance 707109.17 353554.59 0.00 0.00 0.00
5. GROSS PROFIT 13478693.45 13832248.03 14185802.62 14185802.62 14185802.62
6. Income (Corporate) Tax 4043608.03 4149674.41 4255740.79 4255740.79 4255740.79
7. NET PROFIT 9435085.41 9682573.62 9930061.83 9930061.83 9930061.83
RATIOS (%)
Gross Profit/Sales 56% 58% 59% 59% 59%
Net Profit After Tax/Sales 39% 40% 41% 41% 41%
Return on Investment 34% 34% 34% 34% 34%
Return on Equity 80% 82% 84% 84% 84%
Annex 5: Projected Balance Sheet (in Birr)
CONSTRUCTION PRODUCTION
Year 1 Year 2 1 2 3 4
TOTAL ASSETS 13863150.00 29462882.28 36343709.98 42893560.64 48812778.46 43248308.41

8
1. Total Current Assets 0.00 1736582.28 11238469.98 20409380.64 28949658.46 21689810.06
Inventory on Materials and Supplies 0.00 0.00 428524.31 485660.89 571365.75 0.00
Work in Progress 0.00 0.00 215466.91 244195.84 287289.22 0.00
Finished Products in Stock 0.00 0.00 430933.83 488391.67 574578.44 0.00
Accounts Receivable 0.00 0.00 1963636.36 2225454.55 2618181.82 0.00
Cash in Hand 0.00 0.00 227511.65 257846.54 303348.87 0.00
Cash Surplus, Finance Available 0.00 1736582.28 7972396.91 16707831.15 24594894.36 21689810.06
Securities 0.00 0.00 0.00 0.00 0.00 0.00
2. Total Fixed Assets, Net of Depreciation 13863150.00 27726300.00 25105240.00 22484180.00 19863120.00 17242060.00
Fixed Investment 0.00 13203000.00 26406000.00 26406000.00 26406000.00 26406000.00
Construction in Progress 13203000.00 13203000.00 0.00 0.00 0.00 0.00
Pre-Production Expenditure 660150.00 1320300.00 1320300.00 1320300.00 1320300.00 1320300.00
Less Accumulated Depreciation 0.00 0.00 2621060.00 5242120.00 7863180.00 10484240.00
3. Accumulated Losses Brought Forward 0.00 0.00 0.00 0.00 0.00 0.00
4. Loss in Current Year 0.00 0.00 0.00 0.00 0.00 4316438.35
TOTAL LIABILITIES 13863150.00 29462882.28 36343709.98 42893560.64 48812778.46 43248308.41
5. Total Current Liabilities 0.00 0.00 1963636.36 2225454.55 2618181.82 0.00
Accounts Payable 0.00 0.00 1963636.36 2225454.55 2618181.82 0.00
Bank Overdraft 0.00 0.00 0.00 0.00 0.00 0.00
6. Total Long-term Debt 8317890.00 17677729.37 17677729.37 14731441.14 11785152.91 8838864.68
Loan A 8317890.00 17677729.37 17677729.37 14731441.14 11785152.91 8838864.68
Loan B 0.00 0.00 0.00 0.00 0.00 0.00
7. Total Equity Capital 5545260.00 11785152.91 11785152.91 11785152.91 11785152.91 11785152.91
Ordinary Capital 5545260.00 11785152.91 11785152.91 11785152.91 11785152.91 11785152.91
Preference Capital 0.00 0.00 0.00 0.00 0.00 0.00
Subsidies 0.00 0.00 0.00 0.00 0.00 0.00
8. Reserves, Retained Profits Brought Forward 0.00 0.00 0.00 4917191.34 14151512.04 22624290.82
9. Net Profit After Tax 0.00 0.00 4917191.34 9234320.70 8472778.78 0.00
Dividends Payable 0.00 0.00 0.00 0.00 0.00 0.00
Retained Profits 0.00 0.00 4917191.34 9234320.70 8472778.78 0.00
Annex 5: Projected Balance Sheet (in Birr): Continued
PRODUCTION
5 6 7 8 9 10
TOTAL ASSETS 47571518.86 54060316.04 60796601.43 70726663.27 80656725.10 90586786.94
1. Total Current Assets 32950518.86 41746316.04 50789601.43 63026663.27 75263725.10 87500786.94

9
 Inventory on Materials and Supplies 571365.75 571365.75 571365.75 571365.75 571365.75 571365.75
Work in Progress 287289.22 287289.22 287289.22 287289.22 287289.22 287289.22
Finished Products in Stock 574578.44 574578.44 574578.44 574578.44 574578.44 574578.44
Accounts Receivable 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82
Cash in Hand 303348.87 303348.87 303348.87 303348.87 303348.87 303348.87
Cash Surplus, Finance Available 28595754.76 37391551.94 46434837.34 58671899.17 70908961.01 83146022.84
Securities 0.00 0.00 0.00 0.00 0.00 0.00
2. Total Fixed Assets, Net of Depreciation 14621000.00 12314000.00 10007000.00 7700000.00 5393000.00 3086000.00
Fixed Investment 26406000.00 26406000.00 26406000.00 26406000.00 26406000.00 26406000.00
Construction in Progress 0.00 0.00 0.00 0.00 0.00 0.00
Pre-Production Expenditure 1320300.00 1320300.00 1320300.00 1320300.00 1320300.00 1320300.00
Less Accumulated Depreciation 13105300.00 15412300.00 17719300.00 20026300.00 22333300.00 24640300.00
3. Accumulated Losses Brought Forward 0.00 0.00 0.00 0.00 0.00 0.00
4. Loss in Current Year 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL LIABILITIES 47571518.86 54060316.04 60796601.43 70726663.27 80656725.10 90586786.94
5. Total Current Liabilities 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82
Accounts Payable 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82 2618181.82
Bank Overdraft 0.00 0.00 0.00 0.00 0.00 0.00
6. Total Long-term Debt 5892576.46 2946288.23 0.00 0.00 0.00 0.00
Loan A 5892576.46 2946288.23 0.00 0.00 0.00 0.00
Loan B 0.00 0.00 0.00 0.00 0.00 0.00
7. Total Equity Capital 11785152.91 11785152.91 11785152.91 11785152.91 11785152.91 11785152.91
Ordinary Capital 11785152.91 11785152.91 11785152.91 11785152.91 11785152.91 11785152.91
Preference Capital 0.00 0.00 0.00 0.00 0.00 0.00
Subsidies 0.00 0.00 0.00 0.00 0.00 0.00
8. Reserves, Retained Profits Brought Forward 18307852.47 27275607.67 36710693.08 46393266.71 56323328.54 66253390.37
9. Net Profit After Tax 8967755.20 9435085.41 9682573.62 9930061.83 9930061.83 9930061.83
Dividends Payable 0.00 0.00 0.00 0.00 0.00 0.00
Retained Profits 8967755.20 9435085.41 9682573.62 9930061.83 9930061.83 9930061.83

10