Haileyesuse Dechasa
Haileyesuse Dechasa
Haileyesuse Dechasa
TOWN ADMINSTRATION
Table of Contents
1. INTRODUCTION.........................................................................................................................................5
1.1. Purpose of the Document........................................................................................................................7
1.2. Crucial Factors & Steps in Decision Making for Investment.................................................................7
2. Objectives of the project................................................................................................................................7
2.1. General Objectives...................................................................................................................................7
2.2. Specific Objective...................................................................................................................................8
2.3. Profile of the Promoter................................................................................................................................8
2.4. The Economic Significance of the Project..................................................................................................9
2.5. Location and Premises Required..............................................................................................................10
3. MARKET STUDY.......................................................................................................................................11
3.1. Scope of the Market Study....................................................................................................................11
3.2. Future Market Demand.........................................................................................................................11
3.3. Past Demand.........................................................................................................................................12
3.4. Forecasted Demand..............................................................................................................................12
3.5. Market Supply.......................................................................................................................................14
3.6. Target Customers..................................................................................................................................15
3.7. Market Prospects..................................................................................................................................15
3.8. Marketing Promotion and Strategy.......................................................................................................15
3.9. Service program....................................................................................................................................16
3.10. Sales Plan/Capacity..............................................................................................................................16
4. SERVICE MIX AND CIVIL WORK OF THE PROJECT.........................................................................16
4.1. Service Utility.......................................................................................................................................16
4.2. Civil Engineer Building and Civil Works.............................................................................................16
5. ORGANIZATION AND MANAGEMENT................................................................................................17
5.1. Organization and Management.............................................................................................................17
5.2. Man Power............................................................................................................................................17
5.3. Organizational Structure.......................................................................................................................17
6. FINANCIAL REQUIRMENT AND ANALYSIS.......................................................................................19
6.1. Total Initial Investment Cost................................................................................................................19
2 Hailyesuese Dechasa FUEL STATION
PROJECT PROPOSAL ON THE ESTABLISHMENT OF FUEL STATION IN SELAME BERE
TOWN ADMINSTRATION
EXECUTIVE SUMMARY
1. Project Name Fuel Station Project
3. Nationality Ethiopian
4. Project location
Gamo zone, Selambere Town Adminstration
1. INTRODUCTION
Due to increasing level of standard of living more Ethiopian are increasing the number of cars on
the road, the need for constant power supply to aid uninterrupted production of goods and
services and also for domestic use more Ethiopians are increasing the demand for fuel in order to
enjoy the usage of their generating sets and industrial plants.
In the growing of service expanding in urban areas the nation since dynamic economic
development of urban economy requires the construction of these Fuel station Plays a vital role
in towns to support the growing of business service sectors, the growth of the economy, the Fuel
station in the one becoming rapidly A fuel Station or Petrol station is a facility which sells fuel
and lubricants for automotive and industries. In addition to fuel and lubricants sales, the Modern
fuel service station provides different service like, sell gasoline, fuel, motor oils, lubricants, and
confectionery & Tier repair, Car Wash, and super markets and offices service. This indicates that
the investment in the fuel station plays a significant role in the regard, mixed economic
development of the country.
A gas station which also called a petrol station, filling Station, fueling station, or service Station
is a business facility which retails gas oil (petrol), diesel and lubricants for motor vehicles. Gas
stations offer one of three types of service to their customers: fall service, minimum service or
self-service. perhaps a small tip and a minimum service gas station has attendants that operates
the pumps This is often required due to Laws in some cities that prohibit customers from
operating the pumps themselves Although the gas station industry can be said to be a competitive
industry. But it does not in any way stop entrepreneurs who are creative and financially capable
to still make headway in the industry. It is indeed a profitable industry especially when the
business is well located. No doubt busy highways and busy cilices with growing population is
highly suitable for gas stations. The catch 1s that it there are automobile users in any city, then
the city would have need for a gas station
Ethiopia has experienced a lot of growth over the past decade and a half both economically and
in demography. This pushes for more petrol stations around the country; especially around the
Selambere town the demand supply gap is high. This growth has consequently increased the
number of investors and visitors. And the people of the Dana town need a petrol station to stay
close their business. This project aims at providing this target market requisite petrol station with
full facilities and Motel building service for the area. Our mission is to successfully build,
5 Hilyesuse Dechasa | FUEL STATION
PROJECT PROPOSAL ON THE ESTABLISHMENT OF FUEL STATION IN SELAME BERE
TOWN ADMINSTRATION
promote and provide quality fuel station. We plan to create an environment of convenience that
surpasses the standard level for other petrol station in area. The client of this petrol station
development will have every need met to ensure a total and comprehensive comfort.
Petroleum products are among the most valuable natural resources abundantly available in our
country while the country is not making it functional still. Ethiopia and people everywhere use
petroleum products as a fuel in their automobiles, generating sets industrial plants and for
cooking purposes in most of the area of the country, thus making petroleum products an essential
commodity that is needed for the daily operations of individual, industrial and national activities.
Ethiopia being non-oil producing nation, however still relies on imported petroleum products for
the servicing of the economy. Such petroleum utilized by almost everybody on daily basis at an
average of 10 liters daily usage.
The Ethiopian economy has been registering extraordinary, double digit, and economic growth
for the last nine years. When there is fast economic growth in one nation the income of the
citizen also increases this phenomenon changes the life style and modernization of the citizen.
In order to keep the economic growth long lasting there should be parallel growth and linkage in
all sectors of the economy such as manufacturing and service (tertiary) sector. The development of
hotel as one part of service sector has a great contribution to the economy in different ways.
However, the implementation of the fuel station project is concentrates in main woreda of the
nation. Hence, further investments in these areas are very vital for better service provision for the
citizens through that it supports the economic development.
The government of Ethiopia has developed that good investment policy packages and other
sectorial reforms at federal and regional level to attract a huge private investment for the wellbeing
of the nation and its citizens as a whole. Besides, it is also currently implementing the five years’
growth and transformation plan (2010/11-2014/15) that gave a space for the development
industrialization and tertiary sector by private sector.
Like the federal government investment policy packages and incentives, the South Ethiopia regional
state government has been exerting its maximum effort to expand investment opportunities in the
region, so as to foster the economic development of the region and subduing the region’s big enemy
that is the trap of poverty. Therefore, the regional government has been prepared a viable business
environment to attract many domestic and foreign investors so that the dream of making poverty
history turns to be true.
Therefore, the visible market gap, attractive investment policies and deep interest to contribute for the
6 Hilyesuse Dechasa | FUEL STATION
PROJECT PROPOSAL ON THE ESTABLISHMENT OF FUEL STATION IN SELAME BERE
TOWN ADMINSTRATION
development of birth town attracts the owners of the envisioned project to establish Fuel Station
Company in, Selambere town administration of South Ethiopia region.
1.1. Purpose of the Document
The objective of this feasibility study is establishment of fuel station aid potential entrepreneurs to
facilitate investment and provide an overview about petrol filling station business. The project
feasibility may form the basis of an important investment decision and in order to serve this
objective. The document covers various aspects of the business concept development start up. The
document also provides sectorial information brief on government policies and international
scenario. Which have some bearing on the project itself? This particular pre-feasibility is regarding
“fuel filling station which comes under “petroleum sector”
1.2. Crucial Factors & Steps in Decision Making for Investment
Key success factors
Following factors are the key in making this project profitable:-
Location of the project will play a pivotal role in the successful running of the fuel station. The daily
turnover of the cars largely depends on this important factor.
Selection of proper equipment is another key for carrying out of successful operations of the proposed
project.
A. Opportunities
The proposed project would have a number of competitive advantages:-
The project will increase the number of fuel station and provide fuel to more customers
reducing the problem of fuel scarcity in the area and reducing the cost. The City is a good
location because of the high rate of vehicular movement in and out of region.
B. Threats
The proposed project will be following threat:-
The processing of license may take time because of the satiation in the country.
Threat of likely increase in the prices of the petroleum facilitated by the government as a
result of the planned deregulation and removal of fuel subsidy,
The promoter of the project Haileyesuse Dechesa is a known business entrepreneur in the area and
also engaging in different business in Kucha Woreda and surrounding area. In addition, the owner of
this project hope this project to be the first of many other developmental projects to follow as they
look forward to share the responsibility of fighting poverty, reducing unemployment here in
Ethiopia. The promoter accumulated diversified skills in the area and also adopted working with
many people. Thus, it is these experiences which primarily motivated this investor to develop the
inception of this project idea.
The feasibility of the project has been carefully assessed and the promoters are confident that it will
be a total success. The business will be run by a team of competent management professionals who
have acquired practical achievement in related business fields. The marketing oriented approach to
placement of products and distribution will be primarily based on the need and preference of the
customers and end users.
The promoter also is visionary and ambitious business, who is committed to make a difference in
The envisaged project deemed to contribute to the economic development of the region in general
and the district/zone in specific with following ways:
By providing quality services, the project will satisfy the demand of the customers.
2. Source of Revenue
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 and
payroll taxes are collected from undertaking business activities. Therefore, the project has been
serving sources of revenue for regional government.
3. 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. In this regard,
project will hire 32employees.
Besides, during the construction work of the project extra jobs will be created particularly for local
community in construction part
4. Benefit for Local Community
Apart from employment opportunity for local community, as a corporate responsibility the project has
been engaged in different development activities. This will better worth the community in particular
The project will increase economic relationship and transactions among different actors
A. Project Location
Selambere town adminstration is one of the towns in the Gamo zone, Southern Ethiopia Region of
Ethiopia. Part of the Gamo Zone, Selambere town is the capital city of Kucha woreda and bordered on the
south by Dita and Deramalo, on the southwest by Zala, on the west by Demba Gofa, on the northwest by the
Dawro Zone, on the north by the Wolayita Zone, on the east by Boreda, and on the southeast by Chencha.
Kucha has Latitude: 6° 29' 59.99" N and Longitude: 37° 19' 60.00" E. It is 430km far from Addia Ababa and
78 km from Wolayta Sodo the Administrative and political capital of SER.
B. Land Requirement
The total land required by the project is estimated to be 1200M 2. The premises required and land use
plan is indicated in table below;
Table.1: Premises required and land use plan
SN Description
LAND NEEDED (M2)
1.3 Mini Café and Restaurant 100
2 Guard house 75
3 Store 100
4 Generator House 50
5 Fuel Station area 625
6 Parking, green area and road
100
Total 1200m2
3. MARKET STUDY
3.1. Scope of the Market Study
The petroleum 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 petroleum are the large increases in national and international businesses, particularly
firms in the services sector. The business of fuels in Dana Town in booming highly due to the recent
rapid growth experienced in Ethiopia. As a result, a good number of local and international
The project is targeted for Dana town district cross the vicinity and surrounding area. Hence, the scope of
market study of this project concentrates on the Selambere town and surrounding rural villages in general
fuels & lubricants amounts 2.5 billion liters and 25 million liters respectively. In Ethiopia more than half of
among the overall size of demand for fuels & lubricants amounts 2.5 billion liters and 25 million liters
respectively are consumed in Addis Ababa and its neighbor towns.
At present there are 710,000 vehicles in Ethiopia with more than 70 percent of them (410,000)
registered in Addis Ababa? However, the number of fuel stations in the capital stood at only 100.
2. Mass Organization 239 256 294 261 1657 2271 2880 3852 4417
4. C.D 819 815 921 1060 1050 1099 1394 1318 1511
5. AID Organization 3794 4280 4219 4052 4384 4828 6122 6292 7216
6. OAU 134 132 157 217 225 250 317 330 379
7. Commercial 30851 33311 34995 34931 50046 58120 73697 81761 93752
8. Taxi 10156 10632 12010 12506 14523 20062 25439 34282 39310
9. Private Commercial 9859 10661 11531 8245 14988 17263 21890 24014 27536
10 Private Cars 42258 43858 47905 53540 58221 65930 83600 89555 102690
Total 11206 121557 130264 132938 166309 192625 244252 270000 30960
Table: 3 Forecasted numbers of the vehicles in the country for the coming 10 years
No. Types of 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
License
1 Government 32448 33746 35096 36500 37960 39478 41057 42699 44407 46184 48031
2 Mass 4594 4777 4969 5167 5374 5589 5812 6045 6287. 6538 6800
organization
3 UN 1653 1719 1787 1859 1933 2011 2091 2175 2352 2352 2446
4 CD 1571 1634 1700 1768 183 1912 1988 2068 2151 2237 2326
5 Aid 7505 7805 8117 8442 8779 9131 9496 9876 10271 10681 11109
Organization
6 OAU 394 410 426 443 461 480 499 519 539 561 583
7 Commercial 10256 11220 11275 13429 4696 16072 17583 19236 21044 23022 25186
5 6 3 2 5 4 2 4 6 4
8 Taxi 42062 46015 50341 55073 60250 65913 72109 78880 86303 94415 10329
7 0
9 Private 29464 32233 35263 38578 42204 46171 50511 55259 60454 66136 72353
commercial
10 Private cars 17457 19098 20893 22857 25006 27356 29928 32741 35819 39186 42869
3 3 5 5 1 7 2 5 2 2 7
Total 39682 43152 46938 51069 55776 60497 65868 71730 77830 85119 92750
7 8 7 6 6 0 5 9 2 3
Sources Ministry of Transport
There are a number of factors which creates demand for Fuel Station in the area. The following major factors
are identified;
Economic activities
Population
Location Importance
Infrastructure (road)
Availability of different institutions
Energy Demand
These major demand factors for the project are explained as follows
1. Location Importance
The planned fuel station use project will be established in South Ethiopia Region, Gamo Zone
Selambere town, where the different construction is flourishing from time to time. Because this cash
crop area has easy access to the fundamental utilities and other facilities required for construction
area such as treated water supply, electric power, access to telephone line and easy access for
transportation and market outlet. Moreover, the regional government has been undertaking various
measures help boost the growth of investment endeavors in the area by allotting land, and providing
2. Infrastructure (Road)
In the district there exist asphalt all whether and dry whether roads that connects different areas that
will create a demand for the fuel station services.
In the district, there exist many governmental bureaus. Besides, there exist non-government
organizations (NGOs) and private companies. All these institutions are potential market demand for
the project
4. Energy Demand
The major source of domestic energy supply is agri-wastes, followed by firewood, animals dung,
charcoal and kerosene. Hence, there will be a good market demand potential for the envisioned
project (fuel station) in consumption of fuels for vehicles.
3.5. Market Supply
In the Selambere town there exist few service provider organizations. Standard cafeterias and fuel
station centers. Besides, all quality services in one organization is almost nonexistence in the
woreda kebele’s abroad.
3.6. Target Customers
The proposed gas station intends to open in an area with a lot of business potential. There is no doubt
one of the greatest strengths and advantages outlined in this gasoline station business plan is the
strategic location. The plan is to implement a unique business model that focuses on an exemplary
customer service approach and provision of topnotch products and services. The proposed gas station
will recover its entire startup capital after three years in operation. There is a projection of annual sales
growth of between 20-25%.
The target customers of the envisioned project are
From the above analysis of market, it can be deduced that there is a huge gap between demand and
supply for this business in the kebele as well as in the district that will give a lucrative market for the
envisioned project.
3.8. Marketing Promotion and Strategy
To reach customers different marketing ways will be used. Among the different marketing
strategies and tools for promotion controlling the market:
come up with the different competitors in the market. Moreover, customer satisfaction will be the
key marketing strategy of the building. Generally, the project has a competitive advantage since
there are no many standard fuel stations in the town.
3.9. Service program
The organization will initially operate at 70% of its capacity and will reach 100 %( full capacity)
service provision in the second year.
The Fuel Station will provide the following service. The project will provide different fuel energy
(like kerosene, benzene and Diesel) for end users by franchise based business from one of the oil
company. Besides, the projects will also sale different oil and lubricants for consumer. Moreover,
service like car wash and parking will be provided by the company.
As indicated in part 1 the total land requirement for the project is estimated to be 1200M 2.The
buildings are planned to accommodate fuel station, and other utility requirements as well as green
areas and parking.
In general, the buildings must be capable of being kept clean and provision should be made for
keeping the sewerages drained out properly and room temperature is attained to keep healthy
environment. In most environments, equipment should be totally enclosed in a light structure: where
the climate is suitable. A concrete floor, which can be swept, is usual.
The site will be encircled by a chain linked fence fastened to concrete posts. The project
construction is designed by professional engineers and construction will be done under close
supervision and Selambere town of the engineers.
Security
General service
Fuel section section
Coordinator Oil and liquor
section
Marketing section
17 Finance section
Hilyesuse Dechasa | FUEL STATION
Accountant
PROJECT PROPOSAL ON THE ESTABLISHMENT OF FUEL STATION IN SELAME BERE
TOWN ADMINSTRATION
Administration
section
General service
Fuel section section
Coordinator Oil and liquor
section
Marketing section
Finance section
Accountant
He/she will plan, organize, direct and control the human and non-human
resources of the organization (other departments) so as to achieve the short and long
run objectives of the organization.
A. Service Management Department
This is the core department that has six main sections (Fuel station, Car Wash, Parking area, Engine
Oil Shop, Vehicle Spare Parts and employee rooms) the main duties and responsibilities of this
department are
To render those outlined services of the project and manage the overall service delivery
system of the motel and fuel station in line with the customer need and satisfaction.
He/she will incorporate modern technological innovation that will facilitate the service
delivery of the fuel station Car Wash, Parking area, Engine Oil Shop, Vehicle Spare Parts and
employee rooms’ services that will increase customer’s satisfaction.
Will handle the overall marketing activities of the organization which include
planning, organizing, directing, and controlling.
Will develop the marketing strategies.
Will develop effective customer handling strategies
Plan and execute the promotion mix
Accordingly, the construction cost which covers the largest proportion of the total project capital calculated
to be 8,600,000.
Table: 6 Machineries required for the Fuel service is estimated to be ETB 12,000,000
canopy
Birr
Fuel tank 6 300,000 2,800,000
Birr
Dispensing fuel 2,500,000
pump
Plumping works Birr 200,000
Birr
Greasing pumps, 600,000
Compressors
Total 12,000,000
-
Tabel :10 Direct cost the company that imports them sets their selling price
Total
S. Required unit cost per cost per Annual purchasing
N Items volume/month/litter litter month price
1 Diesel 8000 36.5 292000 3504000
2 regular petrol 8000 38.5 308000 3696000
3 kerosene 3000 28.5 85500 1026000
4 Oils 190 97.851 18591.69 223100.3
704091.7 8449100
B. Depreciation
Building 5%
Machinery and equipment 10%
Office furniture 10%
Vehicles 20%
C. Working Capital
Amount(in birr)
SN Description % share
1 Owners Share 30 12,000,000
2 Bank Loan 70 28,000,000
Total 100 40,000,000
Annual revenue of the firm depends on the yearly sales amount. It is considered by yearly working
days’ capacity. The firm is expected to deliver service for 24 hours a day and all 30 days per month
and 365 days per annum. Therefore, the firm is planned to sell diesel gas of 8,500 litters, 8,500 litter of
regular petrol and 4,000 litter of kerosene per month.
It is expected that the selling prices of the fuel adjusted as per national government order. However,
currently average selling one litter diesel is birr 80 per litter. For those prices of regular petrol and
kerosene is birr 80 per litter. Therefore, to calculate annual revue collected of the fuel station this price
per litter is taken in to account. Therefore, at the initial year the total revenue collected from sales of
different kinds of gases and oils will be birr 21,552,000.00 -increases in 10% at the remaining year.
Table: 17 total revenue collected from sales of different kinds of gases
No Description Unit Sales Average Monthly Annual sales
/volume/mont selling Price sales revenue
h revenue
1 Kerosene Liter 4000 80 320000 3840000
2 Benzene Liter 8500 80 680000 8160000
3 Diesel Liter 8500 80 680000 8160000
4 Lubricant and Liter 500 200 100000 1200000
oil
5 Car Wash No of cars 200 80 16000 192000
Total 1796000 21,552,000.00
provided in these section these projection include profit or loss statement and statement of cash flow the projects
are proposed on an annual bases .The envisaged project will generate revenue of birr 21,552,000 during its first
year of operation and birr 23707200 during the second year of its operation on its word .The project will pay
approximately birr 4,200,000 interest on the long term loan during the first year and birr during the second
year of operation 3,780,000.00.finally the project will generate a net profit that grows from birr 3,291,275 in the
first year and to birr 7,177,749 during the fifth year of operation. .
10,189,85
Gross Profit 9,263,500 11,208,835 12,329,719 13,562,690
0
7.5.1. Profitability
According to the projected income statement, the project will start generating profit in the 1st
year of operation. Important ratios such as profit to total sales, net profit to equity (Return on
equity) and net profit plus interest on total investment (return on total investment) show an
increasing trend during the lifetime of the project. The income statement and the other
It should always be remembered that petrol filling stations once put into operation need to be closely
managed. This will ensure that the environment is always safeguarded. It is therefore important that the site
conduct regular site assessments to provide early indication of leaks or releases of product into the ground and
available risks. If there is considered to be a very high risk, a redevelopment should be considered. Other
methods to be considered, which will point to early indications of leaks are: There should be accurate records
of stocks and sales; modern stock control systems; associated with tank gauging systems, to provide an early
warning when stock losses are outside acceptable parameters; the project’s systems should be tested on a
regular basis as they get older, to attest they are sound; testing of both the tanks and lines should be by
precision tightness methods and; monitoring wells should be installed around the site to give an early
indication of a product release. Considering the proposed location, construction, management and mitigation
measures that will be put in place and the project’s contribution in the provision of petroleum products and
creating employment opportunities, its implementation is considered important and beneficial. The key effort
should be geared towards safeguarding the environment. This can be effectively overcome through close
following and implementation of the recommended Environmental Management Plan (EMP).
Currently the issue of environment and envelopment get due emphasis and thus every citizen called exert their
maximum effort for fighting against any negative impacts on the environment so as to result in a win-win
solution on common agenda that is creating environmentally friendly business environment. Therefore, this
fuel station project does not cause a negative impact on the environment.
Consistent with the government’s high priority of encouraging private investment in the agriculture sector,
these integrated projects aim at agricultural production with due care to reduce degradation and improve
productivity of natural resources. Given the fact that these projects intend to utilize the rain fed cultivation,
certainly these reliefs the existing degradation pressure on rural farm land imposed by the traditional farming
system.
More importantly, the projects aim at reversing the environmental degradation trends widely observable in the
area by breaking the nexus between poverty and degradations. In essence, the projects aim at solving the key
problem area by breaking the nexus between rural poverty, natural resource management and climate change
mainly by creating alternative and more lucrative income source for the local resource poor smallholder
farmers, who, otherwise should depend on the natural resource bases and hence causes the degradations. The
project promoters believe:
environment and natural resource degradation are often a direct cause of rural poverty;
rural poverty often exacerbates environment and natural resource degradation; and
Climate change increases the vulnerability of rural people and the ecosystems they depend on for
their livelihoods.
Thus, opening alternative source of income by creating job opportunities within the project can relieve the
current pressure on the rural land in the project area.
Reporting, Monitoring and Evaluation
Monitoring and evaluation will be an integral part of the process implementation periodic monitoring will be
conducted by the project. Periodic monitoring focuses on follow up of the day to day activities of each activities
project evaluation on the other hand focuses on the impacts based on its achieving will be processed on
participatory with its stokeholds.
a. Monitoring
Monitoring activities includes measuring the physical performance and quantity of the work done, con-elation of
the work done with set plan and time table.
b. Evaluation
Evaluation will be conducted three times during the project life year, at the beginning of project life, in the middle
and at the end of project life years.
The evaluation based on the overall goal and purpose. The scope of the evaluation will be:
The extent to which purposes the project have been fulfilled.
The expected profits will be maximized.
Impact contributed to socio-economic development of country.
The strategic objectives of the projects are highly consistent with the national development
30 Hilyesuse Dechasa | FUEL STATION
PROJECT PROPOSAL ON THE ESTABLISHMENT OF FUEL STATION IN SELAME BERE
TOWN ADMINSTRATION
objective which calls to “sustainably increase rural incomes and national food security, which
embodies the concepts of producing more, selling more, nurturing the environment, eliminating
hunger and protecting the vulnerable against shocks.
These projects are expected to create job opportunities for these potential migrants at their nearby
village and hence alleviate the pushing factor for migrations.
The projects aim at utilizing locally available technologies so as to encourage the backward and
forward linkage of the project and hence contribute towards the realization of Agricultural
Development Led Industrialization (ADLI) strategy of the country.
Finally, the projects will largely contribute towards the national economic development by
contributing to National GDP. GDP contribution originating from the agriculture sector has more
power of poverty reduction than other sectors (a one percent GDP growth rate originating in
agriculture sector has more potential for poverty reduction than two percent GDP growth rate
originating from the service sector).
Recommendation: - considering the viability of the project, as aforementioned, the project is
recommended for implementation.