Hashim Tune Authorized Accountancy and Management Consultancy Service Tel.

0913315038

PROJECT PROPOSAL
FOR
MIXED USE COMMERCIAL BUILDING CONSTRUCTION PROJECT (G+5)

Promoter: AMINU SHEHABIB HASEN

Contact Person: Aminu SheHabib Hasen, Contact address: +251-949-05-13-28
Project Location: Oromia Regional State, East Wollega Zone, Nekemte town
Administration

CONSULTING FIRM:
Hashim Tune Authorized Accountancy and Management Consultancy Service
Address: Nekemte City, Near By Kedistmekael Building, 1st Floor
Phone No: 0913-31-50-38, Consultant: Hashim Tune Sado (Assistant Professor)

October, 2022

Nekemte, Oromia, Ethiopia

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Hashim Tune Authorized Accountancy and Management Consultancy Service Tel. 0913315038

Table of Contents
Executive Summary...........................................................................................................iii
1. Introduction..................................................................................................................1
2. Mixed use Building Description...................................................................................3
3. Background of the project............................................................................................4
4. Background of the Promoter........................................................................................5
5. Project Rationale/Justification......................................................................................5
6. Name of promoter, contact person, Legal form of business........................................6
7. Economic Background of Ethiopia..............................................................................6
7. Project Description.......................................................................................................7
7.1. Project Beneficiaries.........................................................................................................7
7.2. Support for the project......................................................................................................8
7.3. Project Objectives.............................................................................................................8
7.3.1. General Objective......................................................................................................8
7.4. Specific Objectives...........................................................................................................8
8. Significance of the Project...........................................................................................8
9. Technical Study............................................................................................................9
9.1. Study of the Project Site....................................................................................................9
9.2. Infrastructure and institution in the Project Site...............................................................9
9.3. Description of the Project Service..................................................................................10
9.4. Land Use Plan.................................................................................................................10
9.5. Construction work and Technology................................................................................11
9.5.1. Construction schedule..............................................................................................11
9.5.2. Architectural Design & Layout...............................................................................11
9.5.3. Structural design......................................................................................................12
9.5.4. Reinforced concrete.................................................................................................12
9.5.5. Foundation Design...................................................................................................12
9.5.6. Construction Plan and process.................................................................................13
10. Environmental Impact Assessment............................................................................13
11. Market Study..............................................................................................................14
11.1. Current Mixed-Use Commercial Building in Nekemte town Administration................15
11.2. Future Mixed-Use Commercial Building in Nekemte town Administration..................15
11.3. Market Demand Analysis................................................................................................16
11.4. Demand-Supply gap........................................................................................................17
11.5. Target Customers............................................................................................................17
11.6. Market Penetration..........................................................................................................17
11.7. Marketing Promotion and Strategy.................................................................................17
11.8. Competition.....................................................................................................................18

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Hashim Tune Authorized Accountancy and Management Consultancy Service Tel. 0913315038

12. Socio Economic study................................................................................................18

12.1. Socio-economic benefit for the society...........................................................................18
12.2. Economic benefit for the community..............................................................................18
12.3. Economic contribution to the country.............................................................................19
13. Project Facilities and Service Plan.............................................................................19
14. Organizations and Management.................................................................................20
14.1. Organization Structure....................................................................................................21
14.2. Management....................................................................................................................21
14.3. Man power Requirement and Availability......................................................................21
15. Working Capital Cost.................................................................................................22
15.1Utilities (Infrastructure)..............................................................................................22
15.2Other Operating Expense...........................................................................................23
Table 6: Other Operating Expense....................................................................................23
16. Capital Cost................................................................................................................23
16.1Machine and Vehicle..................................................................................................23
16.2Building Constriction Cost.........................................................................................24
16.3Building Machineries and Equipment’s.....................................................................24
16.4Office Equipment and Furniture.................................................................................25
Table 10: Office Equipment and Furniture...................................................................25
17. Financial Analysis and its results...............................................................................25
17.1 Financial Requirement....................................................................................................25
17.2 Source of Finance............................................................................................................26
18. Financial Feasibility.................................................................................................26
18.1 Projected Profit and Loss Statement........................................................................27
18.2 Projected Cash flow Statement................................................................................28
19. Viability and Other measures of Project feasibility...................................................29
20. Loan Repayment Schedule.........................................................................................31
21. Project Implementation Schedule...............................................................................31
22. Conclusion and Recommendation..............................................................................31

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 Executive Summary
1. Project Name Mixed Use Commercial Building Construction Project (G+5)
2. Project Promoter Aminu SheHabib Hasen
3. Project Type Services
4. Project Promoter The promoter of the project is the owner himself (the investor) and
those of who are benefiting from the project.
5. Nationality Ethiopian
6. Project Location Oromia Regional State, East Wollega Zone, Nekemte town
Administration, Specific kebele will be decided based on the concerned
government body.
7. Premises Required 1000m2
8. Full production Capacity After completion, the building will have one basement and 500m 2 on
each of the six floors. Among these floors, the first three floors will be
used for the following services Parking Service, Supermarket,
Pharmacy, Banking, Insurance, Beauty salon, shop, Computer Center,
Cafeteria and Restaurant, communal parking services and others. While
the remaining three floors will be used for different governmental and
other offices rents.
9. Total investment capital 15,499,300.00 (ETB)

10. Job opportunity Permanent Employees: 55

Temporary employees: 65 Total employees: 120
11. Benefit Expected The expected benefit of the project is to rent different kinds of rooms for
different purposes for the esteemed customers.
12. Technology to be used The firm will use environment friendly technology which can be
operated by local people.
13. Sources of Finance Out of Br. 15,499,300.00, 80% (Br. 12,399,440.00) from Bank at an
interest rate of 14.5% and 20% (Br. 3,099,860.00) own contribution.
14. Feasibility of the project Generally, the project is technically, financially and commercially
viable as well as socially and economically acceptable. Hence, the
project is worth implementing.
15. Market Destination Peoples and businesses living in Nekemte town Administration as a
whole, immediate zones and Regions and other parts of Ethiopia.
 1. Introduction

Mixed-use buildings aren’t a novel concept at all. Traditionally, humans settled in mixed-use
patterns, pooling all their resources into one central area. Historical examples can be found in the
old market squares of ancient Rome where shops, apartments, administrative offices, and often a
library were intermixed.

The industrial age, however, brought new zoning laws and a stricter division between living and
working spaces. The emergence of the car reinforced this trend, bringing with it an acceptance of
traveling long distances between home, office, and shopping and an exodus from city living to
suburban life.

But now developers are once again embracing mixed-use development. People are returning to
cities, and high-density development is trending. In addition, a relaxation in mixed-use zoning
laws since the 1990s has helped to pave the way for architects and city planners to develop
creative concepts that fulfill a variety of city dwellers’ needs in a single location.

The current fast and dynamic economic growth of Ethiopia especially in urban area necessitates
equivalent growth of building and construction sector. The sector should expand rapidly to
support the overall economic development sustainable.

In the building sector of the economy, the multi- purpose in the one becoming rapidly expanding
in urban areas of the nation since dynamic economic development of urban economy requires the
construction of these buildings in towns to support the growing of business service sectors like
supermarkets, Beauty salon, shops, offices cinemas, Computer Center, Cafeterias, restaurant,
assembly hall, guest house and other activities. In this regard, mixed used building expands in
the all parts of the country.

Investment and property development play an important role in any emerging markets or
economies. Property generally comprises residential houses and commercial real estate property
(mainly mixed use building) developed for rental business and sale. The property investment
market in Ethiopia remained under developed for several years. As a consequence, the supply of

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residential houses and non-residential real estate that can be used for residence, office space,
shopping malls and catering services in the urban centers of the country is disproportionately low
to cope with the growing demand in the country spinning from the average growth in GDP of 5.5
percent over the last ten years and population increase. The relatively good performance of the
macro-economy (real growth in GDP, low inflation rate and growth in investment and export
sector) has stimulated unprecedented investment growth in the property sector over the last five
years. The growth of investment in the property market over the last five years in consistent with
the global experience suggesting that investment in the residential and commercial property (real
estate) is greatly influenced by the performance of the macroeconomic conditions. In general, a
stable macroeconomic condition leads to economic and business growth and develops investors’
confidence.

An efficient and effective construction industry can enhance national competitiveness and create
enormous employment opportunities. During the GTP I period, the construction industry on
average grew at 28.7% per annum, pushing its share in GDP to rise from 4% in 2009/10 to 8.5 %
by 2014/15. Moreover, measures were undertaken to build the capacity of the sector and to
increase the contribution of the sector in the national economy. This includes the launching of
the Ethiopian Construction Industry Development policy framework, the establishment and
operationalization of the Ethiopian Construction Management Institute and the preparation and
implementation of Construction Industry Strategic Reform program. It was also planned to
increase the number of domestic contractors and consultants in the industry that are
internationally competitive to 20 and 10 respectively by the end of the GTP I period. The
accomplishment exceeded the target and by the end of 2014/15, and there are now more than 41
domestic construction contractors and 35 domestic construction consultants that are considered
as internationally competitive. During the plan period, low level of capacity and weak
performance of contractors and consultants as well as the prevalence of rent seeking has been
identified as the major challenges of the industry. These challenges have caused delays in
implementation of construction projects and incur additional construction cost. Moreover, this
has had negative bearings on the supply side of the economy through both consumption and
exports. It also affects the competitiveness and the critical role of the sector on industrial and
infrastructure development.

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Currently, Ethiopian government (particularly Nekemte town Administration) is encouraging
private investors to invest their valuable resources on what they think be important for
themselves and the country. With this pulling force, many mixed-use commercial buildings are
expanding throughout the country. To fill the gap of demand and supply of such mixed-use
commercial buildings, many have been installed in different regions of Ethiopia. However, in
Nekemte town Administration with the existing demand, we can say that there are no adequate
mixed-use commercial buildings. From the preliminary survey result of the consultant, in
Nekemte town, the buildings available are not adequate to satisfy the upcoming needs of
customers. It is this gap and opportunity given by the government to the model farmers that
initiated Aminu SheHabib Hasen to construct mixed use commercial building in Nekemte town
Administration on land size of 1000m2.

2. Mixed use Building Description

A mixed-use building aims to combine three or more uses into one structure such as residential,
hotel, retail, parking, transportation, cultural, and entertainment. Whatever the combination, it
brings together several uses within either one building or a small area. The two most common
forms of mixed-use design are:

Vertical: As a single, multi-story building, a typical mix places apartment on the upper levels
and retail or offices at street level. A basement level provides parking and/or access to
underground public transportation.

Horizontal: Spread over several buildings, such as a city block or around an open space or
courtyard, these individual buildings serve one or two specific uses while creating a microcosm
within a neighborhood.

As urban populations boom, the pressure for buildings to “do” more with less increases. Yet, a
successful design for mixed-use development comprises more than cramming as much as
possible into one building. It must bear in mind the needs of its future occupants as well as its
impact on its surroundings and how the wider neighborhood can profit.

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When a mixed-use building or development seamlessly adapts to its context, the combined
effect is greater than the sum of its parts. Some benefits include:
 Greater housing variety and density
 Better energy efficiency and sustainability
 Stronger neighborhood character
 Better integration with city services, like public transportation
 More flexibility to adapt to changing needs, thus increasing the building’s long-term life
cycle
Mixed-use planning can transform a business district that closes down at night into an area that
is vibrant around the clock. It can bring people together who normally wouldn’t meet, take cars
off the street, and even provide much-needed oases of nature.

3. Background of the project

Mixed use commercial buildings are places where we can get many of the products/services in
the same building. These days, many of the countries are encouraging investors to construct
such type of building so that the service sector of them will boost. In this type of building, we
can get services like, shops, boutiques, electronics material, agricultural materials, beauty
salon, consultancy services, etc. Though it is not as such common in the whole country, the
owner will intensively promote this type of services via different mass media.
The long-term goal of the project is become the best choice in Nekemte town Administration
and its surrounding areas by creating a differentiated experience capitalizing on personal
service. The proposed project will have a total area of 1000m 2 where every infrastructure is
available, designed to reader a multipurpose giving business, which will in turn plays
significant role towards solving shortage of business center in Nekemte town.

In order to attract its clients to the service, the project owner will develop high standard rooms
of best choices that can be used for services like Parking Service, Supermarket, Pharmacy,
Banking, Insurance, Beauty salon, shop, Computer Center, Cafeteria and Restaurant,
different governmental and other offices, and Apartments.

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 4. Background of the Promoter
Aminu SheHabib Hasen is a model farmer and business man who are living in Gida Ayana town
administration. Following the government policy of encouraging Model farmers and private
investors to invest in service sector, Aminu SheHabib Hasen is planning to construct mixed use
building and rent them for different purposes in Nekemte town Administration though specific
site and kebele for the project will be decided by the government body where every
infrastructure is available, on a land size of 1000m2. The mixed-use commercial building is
planned to be used, the first three floors will be used for the following services Parking Service,
Supermarket, Pharmacy, Banking, Insurance, Beauty salon, shop, Computer Center,
Cafeteria and Restaurant, Communal parking services and others. While the remaining three
floors will be used for different governmental and non-governmental and other offices rent.

Hence, Aminu SheHabib Hasen is planning to engage in renting rooms for the aforementioned
services after getting an investment license for the land size of 1000m 2 where every
infrastructure is available.

5. Project Rationale/Justification
Internationally the economic growth of this country is experiencing, the good governance created
and even if the town is in its nascent stage of development these projects are the first in kind in
the town are feasible and would be a model development in promoting and attracting different
urban investments in Nekemte town Administration is the capital city of East Wollega Zone. In
this city, there are different traders trading their products/services not getting very appropriate
area. Though there is market for whatever the products or services that the individual traders
have, there is shortage of buildings having appropriate market location. As per the information
obtained from the municipality, till today, there are no adequate mixed-use commercial buildings
in the town. As a result, the municipality is happy to have such type of building in the town and
thereby give any support for those who want to involve in such types of investment and others.
The existing promising investment opportunities, the demands of service need along with
relatively sound investment support made by the government in such kinds of feasible projects,
compelled the project promoter to initiate the multipurpose oriented business project to be
established. Despite the promising business opportunities of the town, the trend on such kinds of

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investment found to be minimal. Since there is no such kind of modern tourist facilities and
business station in the town to accommodate the existing demand of these services in the town
and the surrounding areas. The mismatch between the demand for and supply of such kind of
services is easily observed in the town.

Hence, the existing shortage or absence in the supply of these services, along with its
commercial and administrative access, better location and infrastructure access, escalating trend
of urbanization and business activities, thus it is with such reason that this project is identified
and proposed and assumed to be more profitable. This initiated the owner Aminu SheHabib
Hasen to request land size of 1000m2 and construct mixed use commercial building in Nekemte
town Administration. Thus, Aminu SheHabib Hasen is planning to construct mixed use
commercial building on the aforementioned land and can contribute his share towards the
country’s economic growth in creating job opportunity for 120 individuals and paying tax for the
government.

6. Name of promoter, contact person, Legal form of business

 Name of the project: Mixed Use Commercial Building Construction Project
 Promoter: Aminu SheHabib Hasen
 Legal form of business: Sole Proprietorship

7. Economic Background of Ethiopia

The economy of Ethiopia is a mixed and transition economy with a large public sector.
The government of Ethiopia is in the process of privatizing many of the state-owned businesses
and moving toward a market economy.

However, the banking, telecommunication and transportation sectors of the economy are
dominated by government-owned companies.

Ethiopia has one of the fastest-growing economies in the world and is Africa's second most
populous country. Many properties owned by the government during the previous regime have
now been privatized and are in the process of privatization. However, certain sectors such
as telecommunications, financial and insurance services, air and land transportation services, and

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retail, are considered as strategic sectors and are expected to remain under state control for the
foreseeable future.

Ethiopia has huge investment opportunities that attract many investors. As a result, the country is
encouraging many interested investors specially model farmers from different area of the country
to engage in industry and service. By identifying these opportunities, this project owner wants to
construct Mixed use Commercial Building in Nekemte town Administration in the form of Sole
Proprietorship. Hence, the owners have an inner motive to invest what they have that they think
will benefit themselves and their country.

From different business experiences Aminu SheHabib Hasen had previously, the owner found
that engaging in such services will make him more profitable.

As a result, this Mixed use Commercial Building Construction project is intended to be

established in Nekemte town Administration on the land size of 1000m2 which will be decided by
the government body where there is every infrastructure. The project will provide employment
opportunity for 120 individuals and thereby contribute to the Gross Domestic Product (GDP) of
the country. The objective being increasing mixed use commercial building rent services as the
foundation of economic growth, the attainment of the creation of employment opportunities in
harmony with sound management of natural resources will increase.

7. Project Description
7.1. Project Beneficiaries

The expected beneficiaries of this project are:

 Business community
 Business organization
 Our country in getting revenue in the form of tax
 Government and non-government organizations will also be the expected beneficiaries of
this project.

For instance, with regard to job opportunity, the expected beneficiaries of the project, getting
employment opportunity, will be 55 employees will be recruited on permanent basis and 65
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casual workers will be recruited on temporary basis; in aggregate 120 employees will be
recruited. This will reduce poverty and unemployment in the town in particular and in the
country in general.

7.2. Support for the project

The project has support from the government and community being it is in line with the
country’s development objectives.

7.3. Project Objectives

7.3.1. General Objective

The major goal of this project is to contribute towards the growth of the service sector in
Nekemte town. Its specific objectives include the following.

7.4. Specific Objectives

 To construct and develop modern shops, offices, and restaurant & cafeteria facilities that
enable to provide standard services to customers.
 To undertake trading and other refuted business activities that enable to generate a reasonable
profit to the invested capital.
 To develop modern business center that would provide full services on city standard.
 To create employment opportunities.
 Contribute towards the beautification of the city through the construction of modern building
infrastructure and facilities.
 To establish economically viable, socially acceptable and environmentally friend mixed use
Building.

8. Significance of the Project

The envisaged project deemed to add to the economic development of the city in general in
specific with following ways:

A. Source of Revenue

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As public policy of any nation, the government collects different forms of taxes from different
business organizations and individuals. Among the different forms of taxes, business income
taxes, payroll income tax and VAT are collected from undertaking business activities. Therefore,
the building will serve as sources of revenue for the city.

B. Employment opportunity

One of the problems that our country faced is unemployment. Therefore, the current objective of
the government is working on tackling the problem of unemployment and fostering the
development process either through creating self-employment or employment in other
organization. Hence, this project will hire 120 individuals and more than eighty individuals
during construction.

9. Technical Study

9.1. Study of the Project Site

Nekemte, also spelled as Nekemte (Oromo: Naqamtee, Amharic: ነቀምቴ), is a market town and
separate woreda in western Ethiopia. Located in the East Wollega Zone of the Oromia Region,
Nekemte has a latitude and longitude of 9°5′N 36°33′E and an elevation of 2,088 meters.
Nekemte was the capital city of the East Wollega Zone, and is home to a museum of Machaa
Oromo culture and Kumsa Moroda. Nekemte is host city to the newly built Wollega University
as of 2007. Nekemte is at the center of the road network for south-western Ethiopia.

9.2. Infrastructure and institution in the Project Site

The project area is found in Nekemte town Administration which has got convenient accessible
road throughout the year. The area is covered by mobile line telecommunication facilities and
hence there would be easy communication of the project affairs within the project and with the
external bodies.
There are also relevant national and local institutions around the district with which we will work
in collaborations.
 Bureau of regional, zonal and woreda level investment office

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  Bureau of regional, zonal and woreda level construction and land use office
 Financial institution and banks.
 Civil society organizations including cooperatives and farmers organization etc.
The role of these institutions and their expected synergy will be utilized for the successful
implementation of the project.

9.3. Description of the Project Service

The envisioned mixed purpose building will provide different rental services to the different
customer groups for different purpose. The building will have basement, ground and five floors.
The purpose of the building explained as follows;

 The ground floor, first floor and second floor designed for different business centers like
banks, supermarket, beauty salon (man and women), Computer center, pharmacy,
internet café, boutiques, different shops and other business activities,
 3rd-5th floors designed for Offices.

9.4. Land Use Plan

The total land required for the envisioned project is estimated to be 1000m 2.The total area for the
construction of the building will be 500m2, as revealed below.

Table 1: Land Utilization Plan

SN Description Allotted land size (m2)

1 Main Building 500
2 Parking and inner roads 400
3 Green area 100
Total land 1000

9.5. Construction work and Technology

9.5.1. Construction schedule

The construction project is proposed to be started on December 2022, and is expected to be
finished on September 2024. As seen in the construction schedule, a majority of the schedule’s
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time is made up of five major activities; concrete, building Enclosure, masonry, mechanical and
Electrical installation. Concrete activities include processes such as placing foundations and slab
on deck. The Building Enclosure Phase includes erecting the scaffolding that will allow for
exterior sheathing installation and bricklaying.

Mechanical and Electrical install coincide with each other due to the need for coordination
between the two divisions. There are several periods of construction during the schedule in
which there are multiple construction activities occurring at the same time.

The construction site must be organized accordingly as these processes take place. As with any
construction project, the goal of the schedule will to complete all construction activities before
the required Date of completion. This date of completion is practical based on the time of year in
which the building will be completed. The team allowed a two-week contingency for any
setbacks. Typically, winter construction tends to cause unforeseen delays that negatively impact
a construction project. These conditions can and will almost undoubtedly impact the project
schedule by causing unforeseen delays and project inefficiency.

9.5.2. Architectural Design & Layout

Although functional spaces for the project were laid out in significant detail, the rest of the
building had designated spaces but set layouts. It was at the discretion of the project promoter to
devise typical layouts for the non-detailed commercial and office spaces. To make sure that the
building’s layouts were practical, the project owner researched typical architectural layouts for
laboratory and executive office spaces. The walls and partitions throughout the floor will
congruent with the structural frame and column locations.

9.5.3. Structural design

One of principle deliverables of the project is the structural design of the building. The structural
bays were coordinated with the layout of the building adjustments will be made to the bays if
specific layouts are necessary. The frame will be made up of a grid with repeating standard
structural bays. Included in the structural system are bay sizes, shape and size of structural

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members, floor compositions and curtain walls. These elements were established to resist gravity
ad lateral loads as appropriate.

The gravity load design will be completed for two frames; one of structural steel and one of
reinforced concrete. The structural steel frame will choose for further design based on cost per
square foot, local availability of material and constructability considerations, such as erection
and fabrication. The steel system will then be designed for lateral loading with necessary
adjustment being made to framing.

9.5.4. Reinforced concrete

The project group prepared hand structural design calculations for a typical bay of a reinforced
concrete frame. In all reinforced concrete bay designs, a superimposed dead load of 8 pounds per
square foot will be assumed for mechanical equipment, floor coverings and ceilings.

Similarly, the design of the typical bay accounted for the use of different commercial space, in
which a live load of 1000 pounds per square was assumed. Loads will be calculated based on the
requirements of the minimum Design loads for Buildings and other Structures.

9.5.5. Foundation Design

The design of a superstructure may be accurate, have considered all possibilities and still fail
because the substructure is incapable of distributing the applied loads to the supporting soil.

Foundation design takes more into consideration than merely the loading from the columns.
While the main part of the project focused on the structural frame and its alternate designs, a
preliminary foundation plan was designed based upon maximum load carried from the
superstructure through the columns. The foundation design conducted by the project team
consisted of the selection of foundation type, determination of the bearing capacity and the
design for typical interior and exterior spread footings.

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 9.5.6. Construction Plan and process

The construction process for this project is normally a disjointed three mages development by
which the conceptualized need of the promoter of this project is translated into a functional
facility that will meet their needs in terms of time, cost and quality.

Based on a general program of the project owners the consultant who is going to be hired makes
site studies, develops structural designs, prepares drawings and specifications, determines
quantities involved and estimated the resultants costs. All these activities will be done in the first
phase of the project which is the design stage after the document are produced by the designers
have been received, and the works secured the project is supposed to enter the tendering stage.
At this stage contractors study the project document analyze and subsequently determine the
construction methods, built up their unit rates and submit their bids for the works. The promoter
of this project intends to compare the bids and award the contract for the lowest responsible
bidder. This, is of course, presupposes that the favorable proposal does not exceed the allocated
budget.

After the award is made and the contract signed between this project owners and the contractor,
the project constructor is expected to prepare and submits a detailed construction program which
includes material schedule, manpower requirement and cash flow forecast.

10. Environmental Impact Assessment

The proposed project is almost environment friendly in that it does emit /release less toxic gases
or chemical. Rather it is in favor of environment being many plants are going to be planted for
the sake of decoration and the like. The EIA of the project activities was determined by
identifying the environmental aspects and then undertaking an environmental risk assessment to
determine the significant environmental aspects. The environmental impact assessment has
included all phases of the project namely construction phase and operational phase.

The building has both positive and negative impact

The positive impact of the project is: -

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  Create employment opportunity
 Source income for the government through business income tax
 Generate Income for the promoter (wealth maximization)
 Being exemplary for other investors who want to engage in the same business line.
 Fill the shortage of mixed use building
The project has the following negative impacts:
 Noise and Dust emission during Construction: There are some noises during the
construction due to the construction operation is performed in the day time. Again, there
is the emission of dust which will be mitigated by sprinkling water on the service.
 Risk and hazard will be occurred on workers participating on construction: During
construction there are some problems that will materialize on workers. These are: damage
on operation by using machines, construction materials and others. To mitigate such
impact the company will provide safety insurance and safety equipment.
For further information, the impact of this business can be obtained from the EIA document
separately prepared for the business.

11. Market Study

Today, more than ever, marketing has put emphasis on satisfying the customer needs. The
customer tends to make decisions on buying a product or a service based on their perception of
the value and satisfaction that the product or service delivers. From the company’s point of view
the goal of marketing is to first build and then manage profitable customer relationships. In order
to achieve this it is not enough only to first market the product and then sell it but make sure that
the product being sold will meet the standards and be enough to fulfill the customer’s
expectations. Therefore, the owner must be aware and understand its customers; their needs,
wants and demands. That is why many companies put a lot of effort and money into making
different kinds of customer surveys analyzing their customers’ behavior and learning about the
different way of delivering the superior customer value and satisfaction.

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 11.1. Current Mixed-Use Commercial Building in Nekemte town Administration

Commercial building/office sector has shown a dynamic change in the past few years. The
reason for this could be rapid economic growth and a supporting public infrastructural
development. Other factors relevant in the specific case of commercial buildings are the large
increases in national and international businesses, particularly firms in the services sector.

The business of multipurpose buildings in Nekemte town is booming highly due to the recent
rapid growth experienced in Ethiopia. As a result, a good number of local and international
organizational are coming in place. Government offices which used to operate in limited spaces
all over the city are also concentrating on leasing new and modern buildings. Increasing numbers
of international organization and NGOs which in the past had typically converted residences into
office space are now moving towards renting whole floors or even multiple floors in modern
city-center commercial buildings.

11.2. Future Mixed-Use Commercial Building in Nekemte town Administration

The demand for office space is a derived demand because firms rent space as an input to the
production of services or goods they provide to businesses and households in the local regional
or national economy.

Following our survey of office space users in Nekemte town, there are mainly firms providing
banking, cafeteria and restaurants, bed room, supermarkets service, computer Center Crevice.
The different customers for commercial buildings also include shops and offices that are
currently renting out to provide their goods and services.

Future demand for office space is actually driven from growth in number of offices in the city
which in turn is influenced by the macro-economic growth in the country. Assuming that
demand for office space is directly related to the growth in the economy, the forecast for office
space demand is shown in the following table;

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Table 2: Office Space Demand Forecast

Office space demand under base Office space demand under high case
case economic economic
2010/2011 9,916,543 11,304,859
2011/2012 11,007,363 12,057,416
2012/2013 12,218,173 12,953,878
2013/2014 13,562,173 13,963,577
2014/2015 15,054,011 14,554,534
2015/2016 16,709,952 14,987,431
Source: Estimation based on GTP’s forecasted Ethiopian Economic Growth

11.3. Market Demand Analysis

Currently, as per the information obtained from Nekemte town Administration Cultural and
Tourism Bureau, there are no adequate numbers of buildings that give mixed use services.
Besides, business owners in the town are in need of a building that can give many services.
Moreover, the government policy is also encouraging private investors in different businesses
that directly or indirectly contribute to the GDP of the country.
From the preliminary survey that the consultant conducted, there is high demand for such service
in Nekemte town Administration. Besides serving as Financial institutions, Government and
non-government office; the building could be a good center where different services like beauty
salon and gymnasium can be obtained in the town of Nekemte town Administration and its
surrounding towns.
On the other hand, as GDP and per capita income of the population increase local people will try
to spend their leisure time with their families in the green area.
In this respect it is of paramount importance to establish neat, clean, and modern mixed-use
commercial buildings in Nekemte town Administration that could service the interest of
merchants.

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 11.4. Demand-Supply gap

Currently, as per the information obtained from Nekemte town Administration Cultural and
Tourism Bureau, there are few hotels and pension houses in Nekemte town Administration.
These hotels will give a maximum of 2-3 services like bed services, hall renting and bar and
restaurant. The other buildings found in the town were constructed for similar purpose. However,
Nekemte town is becoming market center for many traders. From the preliminary survey that the
consultant conducted, there is high demand of for such service in Nekemte town.

11.5. Target Customers

The target customers of this envisaged project include: -

1. Business Community
2. Business organization
3. The government bureau
4. Non-governmental organizations

11.6. Market Penetration

Entering the market depends on how best we can advertise the product and convinces customers
to use the service. To make this possible, the owner will do the following:
 Provide price discount for a certain period of time
 Always keep the neatness of the building for customer attraction

11.7. Marketing Promotion and Strategy

In order to penetrate and gain considerable market share, one of the major marketing strategies
for the project is consistently rendering quality service to its tenants. Due emphasis must be
placed on improving quality of service and facilities. The major marketing strategies to promote
the project and gain considerable market share include:

 Advertising through different means focusing on the existing service and facilities
 Promote in association to the key location and nearby business
 Working on sustained promotional work.

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  Working on public relations to reach and influence key personas and organization with a
capacity of making decision.
 Keeping the quality of its service/ facilities and consistently improving with changing
situations.
 Seasonal discount pricing different others customer centric marketing strategies will be
used by the company.

11.8. Competition

There are different forms of competition that may face the envisaged mixed-use building. These
are price and non-price-based competition. Moreover, there are different competitors that will
compete with the project either directly or indirectly. But the mixed-use building under
discussion has diversified marketing strategies that could enable it Cope up with the different
competitors in the market. Moreover, it will frequently conduct competitors research which
focuses on, the strength and the weaknesses, the different competitors’ strategies, the techniques
they use in rendering the service, their customer handling methods, and others. Generally, the
project has many other projects all over Nekemte town villages which compete with it.

12.Socio Economic study

12.1. Socio-economic benefit for the society

The major beneficial impacts of this project are change in employment and income opportunity,
infrastructure, community development, communication, transport, educational, commercial,
recreational and medical facilities. In addition, this project will accommodate many labor forces;
the income of these labor forces will help them in fulfilling their households’ basic need (food,
health, schooling, and social necessities)

12.2. Economic benefit for the community

As the matter of fact, any organization has social responsibility in creating job opportunity and
involving in different social affairs. The economic benefit of this project is not far from this
truth. In this regard, in aggregate 120 individuals will get job opportunity.

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 12.3. Economic contribution to the country

This project has paramount importance in reducing unemployment rate and helping service
sector in creating market linkage for micro and Small Enterprises and for other organizations and
households thereby supplementing the country’s GTP of industry objectives. Furthermore, it will
benefit the country in terms of paying taxes.

13.Project Facilities and Service Plan

In order to provide mixed use business center building services of a high standard, it has been
planned to construct and develop the infrastructure and facilities that would viable to meet the
requirements of an international standard business center. Accordingly, various buildings and
facilities will be constructed phase by phase starting with the most needed ones that are essential
to commence the operation of its business activities. With the completion of construction, the
building will provide a combined service such as shops, offices, restaurant and café service as
well as modern business center that primarily serve its guests and major clients.

Table 3: The plan is that the ground will be partitioned in to different rooms:

Unit price
Building Description Measure Total
in Birr

Basement Parking Service Cars 5/per hour 402,500.00

Ground 1 and 1st floor Supermarket, Pharmacy, Banking & Insurance M2 500 6,348,000.00
Beauty salon, shop, Computer Center, Cafeteria 2
nd rd M 350 4,443,600.00
2 floor-3 floor and Restaurant
th th Different governmental and None Gevernmental 2
4 floor -5 floor M 250 3,174,000.00
offices, Meeting Hall
Total Revenue Including VAT 14,368,100.00
VAT 1,874,100.00
Total Revenue 12,494,000.00

(Note that out of 1000m2, only 800m2 is assumed to be used for renting)

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Since the project will be engaged in mixed use building the main sources of its annual revenue
would be from the rental of building spaces such as shops, offices, and banking, café and
restaurant. Therefore, the sources of revenue have been classified in to one category namely the
rental of banking and supermarket, offices, shops, Meeting Hall, restaurant and café based on
these classifications. Based on the market price of similar mixed-use building in the area, the
envisioned building set the following fair price (after VAT) for its service, hence when the
building construction fully get operational, it is assumed to generate a yearly income of ETB
14,368,100.00 including VAT.

14. Organizations and Management

Business form: this business is going to be established in the form of Sole Proprietorship. The
organizational structure of the project is designed by including all the necessary personnel under
the right division. At the top of the organizational structure, there will be manager with the
responsibility of supervising the overall activity of the building. Depending up on the nature of
the center and the amount of work to be performed; there exist auxiliary units under the general
manager.

Employees under each unit will be supervised by the department head that is accountable for the
general manager. General Manager is appointed by the owner.

As clearly shown in the organizational structure, the organization has one general manager and
three main sections. Under the general manager there are the, Marketing Department,
Maintenance and Building administration department. Under building admin dep’t two sections
are exist i.e., HRM & finance and general service.

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 14.1. Organization Structure

General
Manager

Building Maintenance Marketing

Administration Department Department

Personnel and
Finance Officers IT, Electricity Supervisors Promotion
Property

Note that: This organizational structure depicts the overall flows of accountability and reporting
structure of the project. Its detail will be prepared during the implementation time.

14.2. Management

The overall management and staffing structure of the proposed project would be compatible and
up to date in line with present-day requirement. The general management of the project is to be
hold by the owner.

The project requires its own organizational structure and associated human resources. The
following positions are suggested as the minimum positions for the project. Daily laborers will
cover most of the routine activities of the building. The following positions are proposed for the
project's production.

14.3. Man power Requirement and Availability

The project under study would recruit 55 professionals and 65 non-professionals. The
availability of the planned professional and skilled man power would not be a problem to the
project owner, since the country has creating much more professional from different university
and colleges.

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Table 4: Human Resource Requirement of the project
Monthly Annual salary
SN Position No Qualification
salary in Birr in Birr
1 General Manager 1 BA in management 6,500.00 78,000.00
2 Building Admin 1 BA in Acct/Mgt 5,000.00 60,000.00
3 Secretary 1 10+2 in secretariat science/Above 2,500.00 30,000.00
4 HRM Officer 1 10+2/Above in HRM/Management 5,000.00 60,000.00
Technical and Maintenance
5 1 Diploma/above in building maintenance 5,000.00 60,000.00
Manager
6 Finance Head 1 BA in Accounting and Finance 5,000.00 60,000.00
7 IT Technician 1 Diploma/above in computer science/IT 3,500.00 42,000.00
8 Marketer 2 Diploma/above in marketing 3,000.00 72,000.00
9 Accountant 1 Diploma/above in accounting 3,000.00 36,000.00
10 Guards/Security 4 Basic experience 1,500.00 72,000.00
12 Purchaser 2 Diploma/above in purchasing &Sup Mgt 3,000.00 72,000.00
13 Electrician 2 10+2/above in general electricity 3,000.00 72,000.00
14 Plumber 2 10+2/above in general mechanic 3,000.00 72,000.00
15 Cashier 1 10+2/above in Accounting 3,000.00 36,000.00
16 Cleaner 6 Unskilled 1,500.00 108,000.00
17 Maintenance Officer 4 10+2/above in General mechanic 3,000.00 144,000.00
18 Driver 4 3rd/above driving license 4,500.00 216,000.00
19 General Service Staffs 20 10+3/above in any field and above 3,000.00 720,000.00
Total 55 64,000.00 2,010,000.00
Frienge Benefit (20%) 17,200.00 402,000.00
Daily Labor 65 10th complete (80 br. Per day) 2,400.00 1,872,000.00
Grand Total 120 103,200.00 4,284,000.00

15. Working Capital Cost

15.1 Utilities (Infrastructure)

The site should have availability of the utilities such as gas, electricity, water, sewer, telephone
and so on. The cost of access to these services must be taken into account when estimating the
development costs.

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Table 5: Utility Expense

unit of Unit Price unit cost (0-

No. description measurement Quantity (0-8week) 8week) Annual
1 Water m3 5,000 0.6 3,000.00 150,000.00
2 Electric power kWh 2,000 2 4,000.00 200,000.00
Total 350,000.00

15.2 Other Operating Expense

The project will incur different expenses which are listed here under:

Table 6: Other Operating Expense

No Item Cost
1 Sundry expenses 80,000.00
2 Repair and maintenances 50,000.00
3 Pre-operative and Preliminary Expenses 150,000.00
4 Technical Knowhow 50,000.00
5 Provision of Contingencies 12,000.00
Total Other Cost 342,000.00

16. Capital Cost

16.1 Machine and Vehicle

The project will incur the following machine and vehicles for smooth running of the project:

Table 7: Machine and Vehicle

Sr no Items Qtty uni cost Total Cost

1 Hilux 1 1,500,000.00 1,500,000.00
2 Other necessary item 10% 150,000.00 150,000.00
Total 1,650,000.00

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 16.2 Building Constriction Cost

The mixed use building will require the following cost. The detail of each part is presented in the
table below:

Table 8: Construction Cost

No Item Total Cost

1 Site Development 95,200.00
2 Design and Supervision 100,000.00
3 Land Lease First Year 54,000.00
Sub Total 249,200.00
A - Sub Structure
4 Excavation and earth work 1,005,000.00
5 Concrete Work 1,050,600.00
6 Masonery Work 1,020,000.00
Sub Total - (A) 3,075,600.00
B - Super Structure
1 Concret Work 500,000.00
2 Block Work 852,300.00
3 Roofing Work 761,500.00
4 Carpentery Joinery Work 600,000.00
5 Metal Work 360,000.00
6 Wall floor and floor finish 410,000.00
7 Sanitary Installations 450,000.00
8 Electrical Installations 310,000.00
9 Painting 400,000.00
10 glazing work 340,000.00
11 Sub Total - (A) 4,983,800.00
Total Cost of Building 8,308,600.00

16.3 Building Machineries and Equipment’s

The project requires the following building machinery and equipment’s for the success full
completion of the project.

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Table 9: Building Machineries and Equipment’s

No Description Measurement Unit cost in ETB Total cost in ETB

1 Generator Unit 120,000.00 120,000.00
2 Carpentry tool box Set Set 40,000.00 40,000.00
3 Electrician tools box Set Set 45,300.00 45,300.00
4 Plumber tools kit Set Set 22,000.00 22,000.00
5 Fire extinguisher(Security Equipment) Unit 20,000.00 20,000.00
Total 247,300.00 247,300.00
16.4 Office Equipment and Furniture

The under listed office furniture and equipment’s are required for the project accomplishments.

Table 10: Office Equipment and Furniture

Total cost in
No. Description Measurement Qty Unit cost in birr
Birr
1 Managerial tables Unit 5 8,500.00 42,500.00
2 Managerial chairs Unit 5 6,200.00 31,000.00
3 Office table with chair Unit 5 7,500.00 37,500.00
4 Secretarial table with chairs Unit 1 7,500.00 7,500.00
5 Computer with chairs Unit 5 16,000.00 80,000.00
6 Shelf Unit 5 10,000.00 50,000.00
7 Filing cabinets Unit 3 16,000.00 48,000.00
8 Guest chairs Unit 5 2,500.00 12,500.00
9 Fax & Telephone machine Unit 1 2,400.00 2,400.00
10 Carpet and Curtain Unit 3 2,000.00 6,000.00
Total 317,400.00

17.Financial Analysis and its results

17.1 Financial Requirement

The mixed use building will require the following Initial Investment Cost. The detail of each part
is presented in the table below:

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Table 11: Total Investment Cost of the Project

Initial Investment Cost

No Items Cost in Birr
1 Salary and Wage 4,284,000.00
2 Land,Building and Conistruction 8,308,600.00
3 Machine and Vehicle 1,650,000.00
4 Building Machineries and Equipments 247,300.00
5 Offi ce Equipments 317,400.00
6 Utitlities 350,000.00
7 Sundry expenses 80,000.00
8 Repair and maintenances 50,000.00
9 Pre-operative and Preliminary Expenses 150,000.00
10 Technical Knowhow 50,000.00
11 Provision of Contingencies 12,000.00
10 Total cost of the project 15,499,300.00
Bank Loan(80%) 12,399,440.00
Owners equity(20%) 3,099,860.00

17.2 Source of Finance

The project investment cost is planned to be covered from two financial sources that is from the
owner's contribution and bank loan. Out of the total investment cost of Br 15,499,300.00, Br.
12,399,440.00 (80%) expects to be covered by bank and other sources and the rest of Br.
3,099,860.00 (20%) will be contributed by the owner's equity in the form of cash.

The promoter’s equity will be used for covering the total working capital while the remaining
balance of investment cost that will be covered by the bank loan is used for construction of the
mixed use building.

18. Financial Feasibility

The business is expected to grow significantly in its operational especially in the coming five
years as it meets the market need for an alternative to local community-oriented users. The
financial outcome of the project in the forecasted operational period has a positive implication
that the implementation of the project has great impact for the owner, economy as well as for the
local people. The detail measuring financial outcomes are described here under.

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Important Assumptions on Financial Plan

The following are assumed to forecast revenue, cost and expenses depending on past business
experiences.

- Revenue from sales is increasing at 10% per year

- Expenses of the project are increasing at 20% per year.
- Building is depreciated at 5% on straight line and machinery at 20% on pulling method per
year.
- Long term loan will be obtained from Commercial Bank of Ethiopia. The bank loan will be
repayable within the five year. Bank loan and interest will semiannually per year and
14.5% interest rate is assumed on outstanding loan- balance. It is assumed that 50% of the
cash flow before investing and financing is used for investing in fixed asset only when
excess cash balance exists.
- The Promoter can withdraw when there is surplus cash and invest from own others source
when there is a deficit.
- The rent price for parking area is 5 birr per hour for one car and it’s assumed to serve 200
cars per day for 350 days per year.
- The building is constructed on land size of 500m2 and the net rentable area is 460m2.
- The rent price for ground and 1st floor is 500 birr per M2 of the building.
- The rent price for 2nd & 3rd floor is 350 birr per M2 of the building.
- The rent price for 4th and 5th floor is 250 birr per M2 of the building.

18.1 Projected Profit and Loss Statement

- The envisaged business is financially profitable as shown by the projected profit and loss
statement. The net income is progressively increasing. There is a positive net income
provided by the business over the ten years business period. The projected profit and loss
statement for 5th years shows that the project will register a net profit of Birr
3,285,362.28 during the first year and Birr 4,707,306.73 at the end of the project year,
implying that the project could run profitable business venture provided that it maintained
the required competitive quality and with fair price. The statement is shown here under.

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Table 12: Projected Profit and loss Statement
Aminu SheHabibi Hasen Mixed Use Commercial Building Construction Project

Profit and Loss Statement for the Year ended June 30....

Item 1st 2nd 3rd 4th 5th

Total Sales 12,494,000.00 13,743,400.00 15,117,740.00 16,629,514.00 18,292,465.40
Operating Expenses:
Human Power Requirement 4,284,000.00 5,140,800.00 6,168,960.00 7,402,752.00 8,883,302.40
Utitlities 350,000.00 420,000.00 504,000.00 604,800.00 725,760.00
Depreciation Expence 693,370.00 693,370.00 693,370.00 693,370.00 693,370.00
Sundry expenses 80,000.00 96,000.00 115,200.00 138,240.00 165,888.00
Repair and maintenances 50,000.00 65,000.00 84,500.00 101,400.00 121,680.00
Pre-operative and Preliminary Expenses 150,000.00 - - -
Technical Knowhow 50,000.00 60,000.00 72,000.00 86,400.00 103,680.00
Provision of Contingencies 12,000.00 14,400.00 17,280.00 20,736.00 24,883.20
Total Operating Cost 5,669,370.00 6,489,570.00 7,655,310.00 9,047,698.00 10,718,563.60
Income before interest and tax 6,824,630.00 7,253,830.00 7,462,430.00 7,581,816.00 7,573,901.80
Interest Expense 1,797,918.80 1,438,335.04 1,078,751.28 719,167.52 359,583.76
Income before tax 5,026,711.20 5,815,494.96 6,383,678.72 6,862,648.48 7,214,318.04
Income Tax (35%) 1,741,348.92 2,017,423.24 2,216,287.55 2,383,926.97 2,507,011.31
Net Income 3,285,362.28 3,798,071.72 4,167,391.17 4,478,721.51 4,707,306.73
18.2 Projected Cash flow Statement
The cumulative cash balance shows a balance of Birr 7,518,000.00 in the first year which will
surge up to Birr 8,267,271.80 at the end of projection period, indicating that the project will not
face liquidity constraint to finance its operational cost and can meet its debt obligation. The
detail projection is indicated as follows.
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Table 13: Projected Statement of Cash Flow
Aminu SheHabib HasenMixed Use Commercial Building Construction Project

Projected Cash Flow Statement for the Year ended June 30...
Item 1st 2nd 3rd 4th 5th
Cash inflows:
Cash from Sales 12,494,000.00 13,743,400.00 15,117,740.00 16,629,514.00 18,292,465.40
Total cash Inflows 12,494,000.00 13,743,400.00 15,117,740.00 16,629,514.00 18,292,465.40
Cash Outflows:
Human Power Requirement 4,284,000.00 5,140,800.00 6,168,960.00 7,402,752.00 8,883,302.40
Utitlities 350,000.00 420,000.00 504,000.00 604,800.00 725,760.00
Sundry expenses 80,000.00 96,000.00 115,200.00 138,240.00 165,888.00
Repair and maintenances 50,000.00 65,000.00 84,500.00 101,400.00 121,680.00
Pre-operative and
Preliminary Expenses 150,000.00
Technical Knowhow 50,000.00 60,000.00 72,000.00 86,400.00 103,680.00
Provision of Contingencies 12,000.00 14,400.00 17,280.00 20,736.00 24,883.20
Total Operating Cost 4,976,000.00 5,796,200.00 6,961,940.00 8,354,328.00 10,025,193.60
Interest Expense 1,797,918.80 1,438,335.04 1,078,751.28 719,167.52 359,583.76
Income Tax (35%) 1,741,348.92 2,017,423.24 2,216,287.55 2,383,926.97 2,507,011.31
Total cash outflows 4,976,000.00 5,796,200.00 6,961,940.00 8,354,328.00 10,025,193.60
Net Cash Flow 7,518,000.00 7,947,200.00 8,155,800.00 8,275,186.00 8,267,271.80

19. Viability and Other measures of Project feasibility

Financial Profitability: The envisaged business is financially profitable as shown by the

projected profit and loss statement. The net income is progressively increasing. There is a
positive net income provided by the business over the five years business period.

Based on data from cash flow statement above, the following criteria of business feasibility are
presented.
Net Present Value (NPV): - This is the sum of present values of all the net cash flows that are
projected to occur over the life of the business. The formal selection criterion for the NPV
measure of business worth is to accept all independent businesses with a positive NPV when
discounted at the opportunity cost of capital, here 14.5%. In this case, given the business has
positive value of Br. 11,576,969.01, it means that the business will contribute Br.
11,576,969.01, toward the wealth maximization of the business owner, hence it is financially
feasible.

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Internal Rate of Return (IRR): This is the discount rate that makes the present value of all
expected future cash flows equal to zero; or, in other words, the IRR is the discount rate that
causes NPV to equal Br.0. It is a yield—what we earn, on average, per year. The internal rate of
return (IRR) of the project is 44% after tax discounted at 14.5%. The project is viable being 44%
is greater than 14.5%.
Payback Period: - Payback period is the time to be taken by the borrower to pay back the entire
money for the lender. Thus, the payback period for this project is 2 years.
Benefit Cost Ratio (BCR): - BCR is the ratio of the discounted values of benefits to the
discounted value of costs. A ratio of at least one is required for acceptability and the ratio of one
indicates that the NPV of zero at a particular discount rate. In this business case, BCR of Birr
BCR=1.75 shows, for every one Birr invested in this business, the return would be Birr 1.75,
which is significantly acceptable.

Net Benefit Cost Ratio (NBCR): - NBCR is the ratio of net present value to the present value of
cost. A ratio greater than zero (0) is needed for the business to be financially acceptable; in this
business, the ratio of 1.75 is in excess of the hurdle rate required to make the business financially
feasible.
Table 14: Decision Criteria

Year Cf PVF Total PVCF

0 15,499,300.00
1 7,518,000.00 1.145 6,565,938.86
2 7,947,200.00 1.311025 6,061,821.86
3 8,155,800.00 1.50112363 5,433,130.13
4 8,275,186.00 1.71878655 4,814,551.29
5 8,267,271.80 1.9680106 4,200,826.86
27,076,269.01
INITIAL INV 15,499,300.00
NPV 11,576,969.01
IRR 0.44
PBP 2 Years
DPP 2 Years and 7 months
PCR 1.75

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 20. Loan Repayment Schedule
Table 15: Loan Repayment Schedule

Lease Status Year

1 2 3 4 5
Balance of loan at the Beginning 12,399,440.00 9,919,552.00 7,439,664.00 4,959,776.00 2,479,888.00
Periodic payment 2,479,888.00 2,479,888.00 2,479,888.00 2,479,888.00 2,479,888.00
Interest Expense 1,797,918.80 1,438,335.04 1,078,751.28 719,167.52 359,583.76
Ending Balance of loan 9,919,552.00 7,439,664.00 4,959,776.00 2,479,888.00 -

21.Project Implementation Schedule

The project's planned the investment activities in simultaneous manner starting with obtaining
land from investment office, land development, and construction of building. The detail
implementation plan is described here under.
S.N Activity 2022 to 2025
Oct Nov Dec Jan 2025
1 Project Proposal Preparation and
submission
2 Acquire land investment license

3 Start construction for the building

4 Start the Work

22. Conclusion and Recommendation

When the project is evaluated from the financial, social, ecological and economic points of
views, it was found to be worth doing. Therefore, the promoter deserves special support and
priority from all stakeholders (especially the government) to get a land size of 1000m 2 and
materializes its objectives which are absolutely consistent with the national development
objective of the country, Ethiopia.

Mixed use Commercial Building Construction Project Promoter contact +251-949-05-13-28 Page 31