1.

INTRODUCTION
This project profile deals with the establishment of private educational
institution
at Collegel e v e l i n O r o m i a N a t i o n a l R e g i o n a l S t a t e , s p e c i a l z o n e s u
r r o u n d i n g F i n f i n n e p a r t i c u l a r l y i n Oromia special zone Burayu town. The
planned project is set to enroll up to 2,000 students in theTVET, Undergraduate
(First degree in Regular, Extension and Distance modes of delivery)
andPostgraduate (Master’s degree)
programs.T h e p r o p o s e d p r o j e c t i s a l s o e x p e c t e d t o c r e a t e w i d e r a n g
e o f e m p l o y m e n t o p p o r t u n i t y t o considerable numbers of dwellers of
Burayu town and its vicinity in particular and to citizens of the country in general.
From this perspective, the project will provide permanent employment for 50
professionals as well as for 70 citizens on temporary basis.The total investment
cost including working capital for the project is estimated at Birr 50 million.The
company shall contribute 30 % of the finance in the form of equity while the
remaining 70%is from bank
loan.T h e a p p r o p r i a t e l o c a t i o n f o r t h e e n v i s a g e d p r o j e c t i n v i
e w o f t h e a v a i l a b i l i t y o f i n p u t , infrastructure and accessibility of the
market for its services is Burayu town within 60,000 squaremeters areas of
land. The financial result indicates that the project will generate profit
beginningfrom the first year of operation.The envisaged project possesses
wide range of benefits where it promotes the socio-economicgoals and
objectives stated in the strategic plan of the Oromia National Regional
State such asincreasing the level of educational investment, tax revenue, and
employment creation.In general, this project is technically feasible,
financially and commercially viable as well associally and economically
acceptable. Hence the project is worth implementing.The present fast and double
digit economic growth of Ethiopia especially demands an equivalentgrowth in
service sector. The sector should expand rapidly to support the overall
economicdevelopment sustainably.The County Council believes the best
way to meet the demand for places for pupils from theFields development
is to build a new 210- place Academy on the site we believe that
learnerscome first. We want our children and young people to enjoy learning,
make good progress, andachieve high standards. To do this, we need to ensure that
best schools offer first class facilities,
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and have sufficient places available, so as to offer real choice, go

o d a c c e s s , a n d t h e b e s t environment in which to learn. This is in keeping with
our statutory duty and strategic prioritiesto develop additional school places. Put
simply we want to ensure that our schools are amongstthe best available and offer
the right number of places at the time they are needed.As part of our strategic
vision, we have identified a need for International school places to servethe Burayu
Town.. T h e C o u n t y C o u n c i l b e l i e v e s t h e b e s t w a y t o m e e t t h i s
e m e r g i n g d e m a n d f o r p l a c e s i s t o develop a new International Academy.It
is expected that the new school will open in September 2011. Details of the
arrangements for pupil admission will be agreed with the successful Academy
Proposer and will be undertaken insuch a way as to not have a detrimental impact
on other primary schools in the area.T h e n e w s c h o o l w i l l a l s o i n c o r p o r a t e
r e c r e a t i o n f a c i l i t i e s t o b e m a d e a v a i l a b l e t o t h e l o c a l community.
The school and recreation facilities will be designed by the County
Council and built on land located within the Burayu. The school will be wholly
funded by the County Councilusing a combination of contributions from the
housing developers (Section 106) and other capitalresources. An allocation for
start-up and post opening revenue costs for the new school will beagreed
with the successful Academy Proposer in accordance with the County
Council’s policyon school growth. Further details of which may be found
herein.The County Council is not aware of any independent applications
to run a Free School in thelocality.This document sets out in further detail for
Academy Proposers and other interested parties; whywe believe a new school will
provide the best solution to improve choice, diversity and standardsfor our
children and young people, where it will be located, how this will be
funded, how weexpect this to be run, and the process and timeline that
we intend to follow. Please take time toread this information carefully, and
make contact using the details provided should you requireany further information
or guidance.
1.1.Background of the Project
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Ethiopia is a country that is on a journey to its renaissance targeting at achieving

peace,unity - with-diversity, broad and rapid socio-
economic growth, establishment of democraticsystems and good governance.The
Government has been engaged in a major effort to transform Ethiopian society and
place thecountry on a trajectory to become a lower middle-income
economy by the year, 2030. Over thelast several years, the economy grew by
nearly 10 per cent per annum, one of the fastest growthrates registered in the
world. During this time, significant attention has been given to
upgradingeconomic and social infrastructure and promoting pro-poor
spending on education, health, andother services to benefit the poor and the
marginalized.Understanding this crucial role, the education sector has
passed through a series
of successive, rolling Education Sector Development Programs (ESDP I-
V). Since theformulation of the 1st Growth and Transformation Plan (GTP I),
education was
given aspecial attention in the transformation of the economy from agriculture-led t
o industry-ledactivity and thereby supporting the manufacturing sector by
supplying the
required professionals and problem solving technological innovations. To achieve
its vision of becoming a lower middle income by 2030, Ethiopia has also develope
d the 2nd Growth andT r a n s f o r m a t i o n P l a n ( G T P I I ) b u i l t o n s e c t o r
p o l i c i e s , s t r a t e g i e s a n d p r o g r a m s a n d t h e U N sustainable development
goals. GTP II aims to achieve an annual average real GDP growth
rateo f 1 1 p e r c e n t , p u r s i n g a g g r e s s i v e m e a s u r e s t o w a r d s r a p i d i n d u
s t r i a l i z a t i o n a n d s t r u c t u r a l transformation such as increasing the
productive capacity and efficiency of the economy
byr a p i d l y i m p r o v i n g q u a l i t y , p r o d u c t i v i t y , a n d c o m p e t i t i v e n e s s o f
a g r i c u l t u r e a n d manufacturing industries, and accelerate Human capital
development and
technologicalcapacity building and ensure sustainability. Education is ins
trumental to attaining thesedevelopment goals through application of
science, technology and innovations. The latter aremajor instruments to
create wealth and bring about national
development.According to GTP II, greater shares of economic production will com
e from industry andmanufacturing with the consequent demands for middle - and
higher - level skilled manpower
to be supplied by the educational system. Achieving these visions require further e
xpansion of access to high-quality basic, general and tertiary education;
and special efforts to improve the
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overall literacy and numeracy level of the population and producing capa
ble universitygraduates that serve the industry.At the present Ethiopia is in a
period of economic recovery and executing different developmentactivities. With
relatively considerable macro-economic improvements being achieved
and the policy environment becoming more conducive than ever, wider
opportunities have been openedfor private investors to participate in a fertile
and diversified range of economic developmentactivities.The background
personality and business experiences of the owners of this project who
aretalented and extrovert business owners in different sectors in Ethiopia.And
having a long dream to engage in a large scale of business activities by
planting a
modern private college and now come to realize the company`s dream because of
the followingconducive investment situations.Best investment atmosphereSmart
investment policesGood investment incentivesGood governance and democratic
developmentHaving good financial capacity and work experiences plus the
socio-economic situation of Burayu town; East Finfinne Zone is really
promising for wide range of development.Accessibility of road transportation,
and availability of other infrastructures are a pushingfactor for such large
scale investment theses and another situations are good investment back grounds
for coming now.Because of the policy environment becoming more conducive than
ever and wider opportunitieshave been opened for private investors, this
project aims to plant a modern private College inOromia National Regional
State; west Finfinne Special Zone in BurayuTown.
2.Product Description and Application
These are private college from KG ,Primary ,secondary school programs
which provide highstandard and rigorous teaching and learning for students who
can afford to pay the tuitions. Thecollege will be similar to other colleges in
the country. This project idea is to establish such private college at least in
the major urban centers of the Region.
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In developed countries the best and most efficient, though expens

i v e , s o c i a l s e r v i c e s a r e provided by the private sector. The participation of th
e private sector in the provision of socialand other services will expand the
volume of these services and also will reduce the burden
on public institutions which provide such services. It will also
give more choices to users of theseservices. Those who can afford will go to
private organizations and the rest will use the servicesof state or public institutions.
This is what is happening mainly in Addis Ababa today in the areasof health and
education.
Education is a key factor to change and progress. Therefore, the
Government of Ethiopia hasadopted a new Education Sector Development
Policy and Program in 1994 to make this sector asone of the pillars for poverty
reduction and benefit of the masses. In line with the GovernmentPolicy
and Program, the Oromia Regional State has developed its own Policy and
Program.

2.1.Opportunities
The free market economy, the existence of a policy of giving incentives
like land, facilitating bank loan, tax free to imported working machineries
and equipment, free taxes during the
projecto p e r a t i o n p e r i o d f o r a f e w y e a r s , g o o d i n f r a s t r u c t u r e p r o v i s i
o n s a n d a v a i l a b i l i t i e s o f t h e necessary inputs as well as markets for the
outputs or services in Ethiopia make the investmentactivities conducive in the
country and the government of FDRE has already changed the waysa n d m e a n s
to attract any one to participate and invest his or her or their own
m o n e y a n d potentials in different investment activities
the way as he or she or they choose. This project isvery concerned and is based on
own equity and bank loan to establish modern private college inOromia National
Regional State; west Finfinne special Zone in Burayu Town in order to
givequality services to its customers.
2.2.Objectives of the project
1
Mission and Objectives of HUST
1
This feasibility study has mainly the following objectives summarized as follow:
Mission
The mission of
Hayu Boru School P.L.C
is to:
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
Educate highly-qualified manpower for scientific research and technology transfer
in the service of the socio-economic development of Vietnam, inparticular in
relevantf ieldsof science and technolog y
;conduct education and scientific and technological research in closeliaison with
theindustr y and commerce sectors;
 disseminate and

seek out co-operation with national and international organisations of theParties,

and the universities and schools of Vietnam, France and othercountries,
with a view to its
development
3.Major activities
2.1 Pre- Operating Activities and Expenses
The project implication phase embraces the period from the decision to
invest to the start of educational services. It includes a number of stages,
including negotiation and contracting, project design, construction and start-
up. If not planned properly, this phase may extend over enough time to
endanger the potential profitability of the project.During the implementation
phase a series of simulations and interacting investment activitiestake
place with different financial implications.Such activities include:Establishment of
project implication managementArrangement for technology supplyDetailed
engineering of equipment, tendering, evaluation of bids, awards of
contractsDetailed planning of civil works, tendering, evaluation of bids, award of
contractArrangements for financingConstruction periodBuild-up administration,
recruitment and training of staff and laborArrangements for supplies
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Arrangements for marketingEstablishment of contacts with authorities for timely

approval of license, contracts etc.
Project implementation costs are pre-production costs which are to be
capitalized. Theyare broken down as follows:
Project implementation managementSalaries and wages of managerial staffRent
and operation offices, motor, living quartersTravel and communication
expensesDuties & taxes during the implementation period
2.2 Detailed engineering of equipment and civil works, tendering and evaluation of bids
Salaries and wages of planning staffRent and operation offices, motor, vehicles
etc.Travel, transportation & communicationFee for various types of consultancy
2.3 Supervision and co-ordination of construction, installation, testing, trial
runs, start-upand commissioning.
Salaries and wages of site staffCost of foreign expertRent /e.g. living quarter,
offices/Supplies and utilities for test runs and start-upInterest during
constructionOthers
2.4 Build-up of administration, recruitment & training of staff and labor
Salaries and wages of administrative staff /including personnel recruitment
staff/Advertising cost related to recruitingS a l a r i e s a n d w a g e
training staff and/or training experts and /or
f e e s o r e x t e r n a l training /locally or aboard/, including travel and subsistence
paymentTraining materialsSalaries and wages of recruited staff and labor from
date of recruitment until productionstart-up
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Rent and operation of offices, training facilitates, living quarters etc.

2.5 Arrangement for supplies
Salaries and wages of purchasing staffTravel and other related
expensesCommunication
2.6 Arrangements for marketing
Salaries and wage for the sale and marketing staffTraining of salesman and
merchantsTravel expenseCommunication
2.7 Build-up on connections
cost for necessary approvals of operation and the like
2.8 Preliminary and capital issue expenses
Registration /incorporation feesPrinting and incidentalProspectuses and other
printing expensesPublic announcement expenseUnderwriting
commissionBrokerageLegal feesOther expenses
General activities to be done in the project
Mainly implement the placed project within a time of two years provide quality
servicesCreate job opportunitiesIncrease the income of the project and the
government revenue through taxationBuild quality building and will invest gardens
of the plant

Build the building based on the structural plan of the town and respect
reacted articlesTake investment license from East Finfinne (Sendafa town)Ask the
land permit depending on the proposal in order to implement the
envisaged projectAdjust the building plan taking into consideration the things that
facedTake over the specific site from the town service land administration
center Prepare drawing if necessary and bill of quantityRegularly supervise and
follow up the project
4.Design and Technical Activities of the Project
Strategically respecting investment policies and other lawsQuality services
deliveryCreating different job opportunities for the society.Capacity building for
the project workers and the society.Working with different stake-holders and
government bodiesAllocating appropriate finances for each activitiesUsing both
un-skilled and skilled human power Using the investment incentives and so forth
5. Market Prospects
The surrounding area of Burayu town, has large potential in human
resources and other relatedinputs. And also the town is a promising area of
large scale investment activities.In general, the strategic location of Burayu town
particularly Burayu town reinforces the role of the town as a center of production
and distribution.Moreover, the availability of educated human resources as well as
material resources is favorable because of the market prospects that the project
owners take of under estimation.
1.2The Economic significance of the project
The envisaged project deemed to contribute to the economic
d e v e l o p m e n t o f t h e n a t i o n i n general and the city in specific with following
ways;
A.Supply quality Education
The school will produce quality and affordable student through this it will serve its
customers
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B.Source of Revenue
As public policy of any nation, the government collects different forms
of taxes from
different business organization and individual. Among the different forms of taxe
s, business incometaxes.VAT and payroll taxes are collected from
undertaking business activities. Therefore, thefactory will serve as sources of
revenue for both the city and nation in general.
C.Employment opportunity
One of the problems that our country faced is unemployment. Therefore, the
current objective
of t h e g o v e r n m e n t i s w o r k i n g o n t a c k l i n g t h e p r o b l e m o f u n e
mployment and fostering thedevelopment process either thr
o u g h c r e a t i n g s e l f e m p l o y m e n t o r e m p l o y m e n t i n o t h e r organi
zation. Hence, this factory will hire around 142 persons.
D.Benefit for the local community
As a corporate responsibility the company will engage in different development
activities on thesurrounding areas. This will better worth the community and
contribute for the development of the cities.
E.Stimulate the local and National Economy
The Schools has positive externality in the zone that will encourage the economic
movement of local economy relationship and transaction among different actors.
F.Technology Transfer
By implementation modern and new technology in schools, the project will
transfer knowledgeto innovation of the nation. Technology used for research of
science and technology is beingconsider for the school.
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2 . L o c a t i o n a n d P r e m i s e s r e q u i r e d 2.1Location
The envisioned project is planned to be located in Oromia regional State Burayu
Town, the main justification behind the selection of this location are:

Strategically located to the central and largest market of nation

Relatively advanced development in infrastructure (power, water,
T e l e p h o n e internet, road etc.

All road to the nearest market outlets

Accessibility of skilled labor force

Conducive investment policy and governance

Environmentally fit to Education.

Premises requiredThe total land holding of the project is 11342 m
2
the premises required planned as follows intable below
B Land use plan
The factor plant has already acquired a total of
6000 m2
which is equivalent to 6000m
2
areas of land. This land planned to use as follow indicated in table below
Table premises required and use plan
Table,

103.05 M
2
2.2 Service description and application
creative play, social interaction and natural expression play is a
significant aspect of a schoolemploying games ,songs ,specially chosen
work materials and stories to address the need of children .it is aimed at
growing children in free atmosphere for home .accordingly it is
sometimes called ‘’children garden’’ .it service as a transitional stage from home
to the more formalschooling the followed. In class they are introduced to
the alphabet , numbers and colors, theystudy their bodies ,their families
and their communities, they listen to stories read aloud;
theym a k e a r t p r o j e c t s , t h e y p a r t i c i p a t e i n s k i t s a n d d r a m a t i c p r o d
u c t i o n a n d t h e y l e a r n a b o u t holiday ,plants ,animals, and other topics in
science and social studies .some kindergartens alsoteach introductory reading and
mathematical skills .
2.2.1 Recreational Facilities
The new primary school will also include a co-located recreation centre.
It is expected that thefacilities will include a community room, changing rooms,
kitchen, store room and a football andcricket ICT room. The operational
arrangements for running the recreation facility have yet to
bea g r e e d , a s s u c h t h e r e w i l l b e a n o p p o r t u n i t y f o r t h e A c a d e
m y t o a s s i s t i n s h a p i n g t h e management arrangements for the facility,
and to run these in due course.
Age Range
The school is intended to serve pupils between the ages of 4 and above.
At present there are
no plans to incorporate early years’ provision on the site, although the County Cou
ncil wouldwelcome proposals from Academy Proposers about how this might be
achieved.
Gender
The school will be for both boys and girls. Admission Criteria The County Council
requires thatAcademy Proposers will abide by the Codes of Practice on
Admissions and Admission Appeals,and participate in the County Council’s co-
ordinated scheme for admissions and, our Fair AccessProtocol. The County
Council expects Academy Proposers to adopt the same admission criteria
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post-opening diseconomies. The new school will be funded on the basis of estimat
ed pupilnumbers in accordance with The Schools and Early Years Finance
Regulations. The new schoolw i l l b e a r e c o u p m e n t A c a d e m y a n d t h e
annual revenue budget will replicate
the CountyCouncil’s formula for funding schools, subject to prote
c t i o n a n d a d d i t i o n a l p a y m e n t s i n accordance with the budget policy
for academies operated by the Education Funding Agency.Academy
Proposers wishing to express an interest in the new primary school
should do so
byc o m p l e t i n g t h e a p p l i c a t i o n f o r m a v a i l a b l e o n l i n e . P l e a s e
e n s u r e t h a t y o u c o m p l e t e t h e Application Form as fully as possible,
providing an electronic copy and posting also a full
hardc o p y a n d s h o r t e x e c u t i v e s u m m a r y ( m a x i m u m t w o s i d e s
A4) to the address provided for submission. Your application sho
u l d b e a c c o m p a n i e d b y t h e a p p r o p r i a t e s i g n e d F o r m o f Proposal and
declarations detailed on the Application Form. Please note that the closing date
andt i m e f o r r e c e i p t o f c o m p l e t e d a p p l i c a t i o n s H a v i n g i n v i t e d
E x p r e s s i o n s o f I n t e r e s t f r o m Academy Proposers, detailed evaluation
will be undertaken in accordance with the assessmentcriteria provided
within this document, and the accompanying application form. A two
stage process will be followed to determine the County Council’s
preferred Academy sponsor for thenew school, comprising of the initial
written application, and followed by a presentation andinterview
by shortlisted Proposers, and if necessary a visit to an existing
similar Academy thatthey currently operate. Each stage of the application
process will be allocated a score, and for those Academy Proposers
shortlisted to the second stage, the total scores for each stage will
beaggregated to determine an overall evaluation mark to determine a
preferred sponsor.
Further d e t a i l s o f t h e s c o r i n g m e t h o d o l o g y t o b e u s e d t o
e v a l u a t i o n a r e p r o v i d e d w i t h i n t h e accompanying Application
Form.This will enable consideration by the County Council Cabinetof a preferred
provider.Subject to the Cabinet’s consideration, a submission will
bemade to theR e g i o n a l S c h o o l C o m m i s s i o n e r
( R S C ) , w h o i s a c t i n g o n b e h a l f o f S e c r e t a r y o f S t a t e f o r Education,
which will include all proposals received, with the Local Authority’s assessment
of these to assist the RSC in her decision.The RSC will carefully consider
the County Council’ssubmission and assuming their agreement, she will
then make a recommendation to the Secretaryof State for Education who will
make the final decision.Once a decision has been made, theCounty Council
will work closely with the chosen provider and the DfE (through the
EducationFunding Agency) to conclude the development and operational details of
the new school.
2.3 Market study and service capacity
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2.3.1 Market study

Current number of schools and type of
operators.C u r r e n t e d u c a t i o n s e r v i c e p r o v i d e r s i n t h e c
i t y a r e m a n y a n d v a r i e d i n c l u d i n g government ,private
sectors ,local communities ,foreign, NGO, Church ,Mosques
, a n d missionaries school.As can be seen from table below the private sector is
dominant sector in the ownership of This International school in the city
level. Next to private sector is communities owning andoperating. the
role of government is extremely acts. Owning the school facilities in the
city. Itshould be noted also that there are no private schools(1-12)by foreign
communities.
Number of schools in Burayu by type of ownership 2007---
GovernmentPublicPrivateNGOChurchMissionaryMosqueForeign communityTotal
The basic reason for the dominance of private sector in KG and primary schools
are that ;
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The government policy focuses on providing basic education for all and
accordingly and thegovernment not much investigating in kg.Comparatively
kg school, which attracts the private investors with weak financial
capacity than primary school .
Current enrollment level
School enrollment ratio is one vital indicators that measures performance in
education sector.Enrollment at primary level in the city is still very low.
Project demand
The demand level for schools from primary level for the coming ten year estimated
is based onthe standards established by the ministry of education and the
population growth rate
Fee
Service fee depends on quality and types of service offered
a t t h i s s c h o o l . C u r r e n t l y t h e monthly service changes per children vary from
birr 350---600 per month.
Service capacity and programservice program
The project is envisaged to operate for 8 hours per days in a year on a single shift
basis.The plant will operate at 75%and 85% of its full capacity in the
first, second and third yearsrespectively and reaching 100% of its full capacity
in the fourth year of operation.
Material and inputRaw material
The major raw material required for the envisaged service are sanitary
materials .most of the rawm a t e r i a l s a n d i n p u t s r e q u i r e d f o r r u n n i n g o f
A b d i B o r u a r e l o c a l l y a v a i l a b l e . t h e e s t i m a t e d annual raw and auxiliary
materials cost at full capacity is about Birr 36,000.
Source of technology/machinery
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training. The preparatory level (grades 11

and 12) prepares the student for the
higher education or careers. National examinations are
administered at the end of grade 10 and12. According to the officials of
the MOE, approximately 30% of
students that reach 10
th
grade will continue to higher education. The rest of the students will
either
enroll inTVET, or leave the formal education system.
Technical and vocational education
(TVET)i s i n s t i t u t i o n a l l y s e p a r a t e f r o m t h e r e s t o f t h e e d u c a t i o n
system, and forms a paralleltrack. Students entering TVET stream after
completing grade 10, have different
optionso p e n t o t h e m , d e p e n d i n g o n t h e s c o r e r e c e i v e d i n t h e
national exam: Level I up toLevel V with different durations.
Students who complete TVET
training at Level IVafter grade 10 are considered to have completed first
year of college education and
can join colleges or universities to complete their undergraduate (degree) program
s. Thismeans, students that attain level 4 in TVET can
continue to higher education, hence, level4 TVET is considered by some as
the alternative route to get to the university.
The TVET program in
Ethiopia is primarily supply driven. Even though TVET strategy stressesthe
importance of ensuring that TVET is flexible enough to accommodate the demand
for,t h e a l l o c a t i o n o f s t u d e n t s t o T V E T i n s t i t u t i o n s , a s w e l l a
s t h e c u r r i c u l u m a n d t h e specialization offered are determined by
government.
In recent years, there has been considerable expansion in TVET
institutions in
Ethiopia, both in terms of public spending and increased provision by private insti
tutions. Number o f T V E T i n s t i t u t i o n s i n E t h i o p i a
is also provided by non-governmental organizations(NGOs). During the
years 2004 - 2009, averageannual increase in enrolment in TVET is30.5% (MOE,
2008). In the year 2008/09 (2001 E.C), there
w e r e t o t a l o f 4 5 8 T V E T institutions in Ethiopia. These institutions
enrolled total of 308,501 students in
regular,evening, summer and distance programs (Table 6.2). In 2007, Ethiopia was
the second in
Africa in terms of number of training institutions.
Table 6.2 TVET Enrollments by Gender, 2004 - 2009

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Source: Education Statistics Annual Abstract, 2010/11 (MOE, 2010)Government

sources estimate that private TVET providers currently provide
approximately3 0 % o f a l l
TVET in Ethiopia, while private TVET providers estimate their share of
them a r k e t t o b e a r o u n d 5 0 % .
Tables Table 6.3 and Table 6.4 present the graduates from
thegovernment and non-government TVET
i n s t i t u t i o n s i n 2 0 1 0 - 2 0 1 1 . A c c o r d i n g t o t h e s e tables, roughly half of
the graduates were enrolled in
public institutions in the academic year 2010-2011.
Table 6.3 TVET Government Graduates by Region and Level
Somali

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