Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

UNIT ONE
Executive Summary
This Project Proposal is organized for the newly built multi-use commercial building of Bekur Trading Plc’s
project; the promoter & owner of the business Bekur Trading Plc is one of the known and well valued business
entity in Dukem and the surrounding towns. The location of the project is very attractive and ideal for running such
type of businesses in the town. The commercial building project satisfies the standards & requirements set by the
Ethiopian Standard Agency for ideal commercial building business that includes bar, restaurant & guest house
services, shops, pharmacy, banks & other businesses in one spot.
The multi-use commercial building business is managed by one of the shareholders & owner of the project Ato
Tiglachew Birhanu himself who has accumulated adequate experience in several types of business activities within
the country. In addition to this, hired employees will handle the day to day activities of the project. It will also
create employment opportunities for about 59 residents of Dukem town in different types of employment
designation.
The General Manager Ato Tiglachew Birhanu has an ideal mix of educational background, versatile work and
business experience in a wide range of business sectors and activities’. He is fully familiar with the envisaged
project, locality area and environment. He is therefore highly enthusiastic to contribute as a corporate citizen
playing socially responsible and exemplary roles as developmental entrepreneurs.
The GM of the business is also cognizant of the fact that Construction & Service sector is the mainstay of the
Ethiopian economy plus as the main resource of the country, it contributes the predominant share of the GDP,
Foreign currency earnings and is the source of livelihood of the majority of the population.
This brief survey has been undertaken to assess the technical as well as economic viability of the complex outfit.
As subsequent sections of the report reveal; the project shall be financially sound while its socio-economic
contributions cannot be neglected.
Ethiopia is a strategically important country in the Horn of Africa’s foremost countries and therefore, many
international meetings and conferences are held in Ethiopia. This creates huge demand for hotel & accommodation
at an international standard and even an increase in such a demand is expected in the future because the importance
of Ethiopia has been growing and many international organizations have been continuously strengthening their
institutions and augmenting their personnel in Ethiopia. The supply of multipurpose buildings, hotel &
accommodation, however, is far below the level needed to meet the demand. Since the multi-use commercial
building as well as hotel & guest house business industry can create job opportunities for so-called blue collar
workers, the development of the industry benefits not only the tourism sector but also has a great impact in job
creation & poverty reduction. In the past twenty years the country has shown an encouraging private investment in
all areas of economic and social activities. The private sector has been motivated by free market oriented economic
policy on the government. To stimulate private investment, the government amended the investment proclamation
several times which resulted in booming of investment in all sectors of the economy.
Considering the attractive investment climate, Bekur Trading Plc has decided to establish a multi-use commercial
building business at Dukem town of the Oromia regional state. The promoter Bekur Trading Plc has secured a total
leased land with the area of 2,579.52 Square meters at the center of Dukem town. The project building will
comprise the main G+2 building at the front side of the site & additional G+3 building within the compound with a
total project capital of birr 100,222,913.74.
The location of the project is ultimate for successfully run such type of business. The new project is located at the
center of Dukem town in front of Key Amba & Samisa Hotels and adjacent to Dukem Cotton Ginning Factory, on
the way to the left side of the road to Addis Ababa. Since its location is on the way to the main gate of Addis
Ababa (capital of the nation), the business opportunities for the Plc as well as other business persons who have a
business hub around the project is considerably high.
This commercial building project lies on a total area of 2,579.52sqm of land, out of which the construction of the
buildings are on 875sqm of land. The major G+2 building was constructed on 200m 2 of land and the second G+3
building was constructed on 675m2 of land. The multi-use commercial building project consists of Rental area for
Banks, Pharmacy, Shops, Bar, Restaurant, Reception area and 36 guest rooms used for accommodations of its

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

clients and guests. Furthermore it will have a garden and parking area for the users of the Bar, Restaurant & Guest
House services.
The total investment cost of the project including its construction cost for the remaining job, working capital
requirement and contingency, furniture’s and related equipments plus purchase of 50kva Generator are estimated
to Birr 101,222,913.74 based on the bill of quantities prepared by the engineers of the building and assessment of
current market price of furniture’s and equipments. Out of which about 59.10% accounts to Birr 59,822,913.74 is
already injected to the construction work of the buildings, acquisition and pre-production costs of the land, 1.39%
(1,400,000.00 birr) will be covered from the promoters own equity at the time of purchase of furniture, equipment
& machinery as well as need of working capital for the project. The remaining balance of Birr 40,000,000.00
(39.52%) will be expected from Bank’s in the form of long term debt.
The loan will be used for the remaining construction work of the commercial buildings 23.2% (17,342,977.59
birr), partial procurement of furniture, equipment & machinery 94% (6,806,126.00 birr) & working capital
requirement of the project for one year 94% (15,850,896.41 birr).
Debt Equity
Description Total Cost Owners Equity (60.48%) (39.52%)
Buildings 74,778,305.36 57,435,327.77 17,342,977.59
Furniture, Equipment & Machineries 7,206,126.00 400,000.00 6,806,126.00
Pre-production Cost 2,387,585.97 2,387,585.97 -
Working Capital + Contingency 16,850,896.41 1,000,000.00 15,850,896.41
Total Investment Cost 101,222,913.74 61,222,913.74 40,000,000.00

Since the area under consideration is only 37kms far from the metropolis of the country and uninterrupted struggle
of the municipality of the town, Dukem town had to have well developed socio-economic infrastructures. Such as
road, electric power, water sources, telephone & internet line accesses and other infrastructures.
To take a broad view, the commercial building is ideally located for the purpose of modern multi-use commercial
building & guest house business center. Even though, like most other business ventures, it aims to maximize return
on invested capital, it also aspire the promoter to contribute an additional view to the town, create more job
opportunities for the local people and making its own contribution to the renaissance and development of the
country as a whole.
Moreover, in a process of attaining this basic original idea, it also benefits the community by creating a new
recreational bar, restaurant & guest house compound and the youth of the town will also benefited by having a
high-quality recreational mix. The town’s administrations will also have an additional revenue/income through
VAT, Profit tax and employment income taxes.
The project will not only conducive but also offer modern facilities that will make its guests turn into its clients. It
has the best facilities and also the right people to handle these amenities. The staffs are not only professionals with
the added touch of competence but have the experience to anticipate the needs of clients.
The strong business structure has led into deploying the best means of sourcing for and recruiting the best staffs for
the business. The project will create 59 permanent job opportunities to the community. The promoter Bekur

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Trading Plc; not only believe in recruiting the best employees but in ensuring that they are in tune with the vision
and objectives and are committed to seeing itself achieve its own goals as a company.
The promoter believe in ensuring that the employees are not only productive but that they remain happy whilst
carrying out their tasks, it is for this reason that Bekur Trading Plc has created a unique welfare package for them
that is the best in the industry amongst the category. Also, the promoter has put in place polices that will allow for
the continuous trainings of its employees in order to enhance their skills.
The multi-use commercial building’s customers care service is excellent as it has those who not only have a
thorough knowledge of the industry but keep informed on current trends to handle this position and therefore help
inquiring clients better understand what they are seeking for.
Because Bekur Trading Plc knows how important its clients are, the project have strategies in place that will ensure
that its loyal clients get incentives which comes in form of a discount for every client they refer to the company.
This has made most of the clients turn into active marketers on its behalf and has grown its revenue base
tremendously.
It is clear that Ethiopia follows the free market system and this in turn needs the individuals as well as companies
to inject their potentials to the economy, as a result the problems that the nation currently faced will gradually
eradicated & the national economy will also become progressively developed. It is this understanding and courage
& understanding for this project to be planned and invested by the promoter Bekur Trading Plc.
This Project Proposal is meant to briefly show the project’s importance, area advantages, planned activities,
estimated project capital, its profitability and other important aspects for the concerned stakeholders.
Hence, this study is conducted to determine the viability of the project by capturing the current and future demand
and supply of commercial building services at Dukem town - a neighborhood to the capital city.
Overall Strategy: Success will depend on offering a very high quality commercial building & hotel experience,
including making the most attractive setting and recreational amenities, and offering a superior customer service. A
very high quality experience – both within and outside the compound & facility – will offset the extra time and
cost required to reach Dukem town from Addis Ababa & Adama.
Target Markets: The business center’s location, amenities, and ability to develop a high quality facility provide
the chance to focus on several promising niche markets. One key market, linked to the community’s attractive
setting, is for small & medium executive retreats, executive training sessions, board visioning sessions, and
incentive travel and similar events. For this type of event, participants are willing to spend a bit more time and
money to have a good bar & restaurant facility, a more sequestered setting, and a chance for enjoyable extra-hotel
activities. A second important market is for larger events, particularly linked to unique Governmental & Non-
governmental institutions.
Financial Performance: Once the facility is built and an initial period of time is provided to market the center and
book events, the project center is estimated to attract an income of birr 19 million & above in the 1 st year.
Reasonable Expectations: Nearly all multi-use commercial service centers in Dukem, Bishoftu, Addis Ababa and
Adama do generate enough revenue to cover annual operating costs. Commercial Building facilities are widely
seen as valuable community resources because they bring significant spending into the community.
Benefits to the Community: The community economic benefits expected to result from establishing a multi-use
commercial building in Dukem will bring great opportunity for the residents of the town.
Major Findings of this Study
 The minimum net profit from the commercial building & hotel service is expected to be Birr 209,928.00 in
the first year and the maximum profit will be registered in year 10 is more than birr 14.5 million. The
cumulative net cash inflow balance is to be Birr 49.9 million at the end of the project life.
 Using the major investment decision techniques, the operation of the commercial building & hotel business
is found to be attractive showing positive financial results, presented in financial evaluation section of this
business plan.
 The project will create additional job opportunity for more than 59 workers permanently and will pay more
than 2.6 million birr on the first projected year for its employees as a salary.
 The project will generate income to the government in the form of profit tax during its project life.

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

UNIT TWO
Vision, Mission, Objectives & Keys to Success
Vision: The vision of the project is to contribute to the development of the country through having up to date
information’s and technological products, high standard professional employees and rendering a high quality
service to its clients and consumers by maximizing and giving priority to customer satisfaction and being effective
and efficient.
Mission: Higher quality service to consumers of the business and avail for customers in a sustainable manner and
always ensures customer satisfaction through quality and brand.
 Contribute to the development of the country by providing quality and efficient services in order to enhance
the consumer satisfactions;
 Provide efficient, high quality value adding services combined with the highest ethical, safety and
environmental standards locally;
 Bring the project services to the international standard;
 Strive to operate at all times in a responsible manner which means fair and honest treatment of all those with
whom the project deals, including customers, officials, employees and the general public; and
 Provide favorable working atmosphere and opportunity for creativity and growth for employees of the
company; to encourage each employee to develop his/her abilities to their fullest capacity.
Objectives of the Project
Even though the major motive of any private investment is profit making, it is obvious that the role of the private
investment in the poverty alleviation endeavors to the country is indispensable. It is through the expansion of the
private investments that most citizens of the country will get a better job opportunity, and by means of which the
level of poverty will be reduced.
Key Assumptions Contributing to the Ultimate Success of the Facility
To generate the level of use and the revenue and benefits outlined on this study, the commercial building facility
implements the following strategies:
 Facility – superior construction competence of buildings & guest house services and amenities
 Food – develop a strategy to ensure clients & attendees have good food & beverages
 Access – provide good access
 Accommodations – sufficient lodging, in the right locations
 Marketing – Carry out an aggressive marketing & packaging strategy
 Need Packaging – Address all client needs – “one stop shop”
 Community Support – Plan & operate the facility to provide broad benefits
Our Competitive Advantage
The company intends to ensure that its business is not only established to make profit but is also able to compete
favorably with other competitors in the industry. The vision is to ensure that it’s not only met but exceed the
expectations of all the clients that make use of our buildings and services, and this is one of our competitive
advantages against our competitors.
The project has modern and favorable facilities such as 2 buildings options that have various capacities of 10
deluxe & 26 standardized guest rooms, garden for bar & restaurant users, sufficient parking lots and have one
building for other rental services, thereby giving the clients varied options in terms of picking something suitable
for their occurrence.
Another competitive advantage we have is the fact that the project have an individual event coordinator that will
help coordinate the events of clients’ throughout the duration of the event, thereby allowing our client have a
stress-free event.
Asides, the event coordinator, we also have a professional wait staff that have the experience of handling different
kinds of occasions that will crop up at our center. All our staff and communicate our brand all the time by giving
excellent customer service to clients regardless of events or packages.

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Another competitive advantage we have is our wide and attractive garden décor service which is also part of the
services we offer. We go beyond the average décor and give our clients a wonderful experience that is best
experienced.
Finally, we are the best at caring for our employees as we offer the best salaries and welfare packages in the whole
of Dukem within our category as a start-up business center in the industry. We also ensure that our employees
undergo training that will enable them become better and more productive for our business.
Purpose of this Project Proposal
 The objective of this study is to investigate the economical as well as social outlook for the commercial
building, hotel & guest house facility to be included as one portion of the proposed project. The commercial
building, hotel & guest house center is planned as a collaborative project of the promoter Bekur Trading Plc
& will be considered as one of its major other portfolios.
 The purpose and goal of this Proposal is to provide a viable option of capital for the completion of
construction work of the buildings with additional service capacities and its necessary support spaces. This
study reaffirms the need for additional equity from debt in order to finalize the project on time and make it
feasible. In the next sections of this study, it provides a program and design option to meet the increased
needs of multi-use commercial buildings in the town.
 In relation with the feasibility of this venture, the other main objective of this study lies on requesting the
concerned stakeholders to give a hand to finance the construction, purchasing of materials & working capital
need of the project in order to swell its service quality to its clients.
 Request the Government Authorities to allow the promoter to bring construction materials, finishing
materials, furniture, equipments & machineries as well as one vehicle as a duty free privilege from abroad in
order to minimize the expense of the project total initial cost.

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

UNIT THREE
Company Summary
Project Promoter & Legality
Project promoter: Bekur Trading Plc
Project: Multi-Use Commercial Building
Total Capital: 101,222,913.74 Birr
Address: Addis Ababa, S/C- Nefas Silk S/C, W-02, H.No.-New.
Telephone: +251 911 221185
Legal form of Business: Private Limited Company (PLC)
TIN Number: 0073757238
Trade License: NL/AA/14/666/7016143/213
Registration Certificate: NL/AA/2/0016814/213
Authorizing Office: AA City Administration, Nifas Silk Lafto Sub City Trade Office
Background
Bekur Trading Plc as a sole trader engaged in several types of businesses since 2013. The promoter Bekur Trading
Plc has started its business with a total initial capital of birr 10 million. The Plc has two shareholders with equal
share capital contributions.
The shareholders have agreed and chose Ato Tiglachew Birhanu to be a General Manager of the company. The
GM Ato Tiglachew has started his business carrier by establishing a hotel service in Dukem town. Then he
engaged in freight transport business and become successful.
Name of Shareholder No. of Share Par Value Total value
Ato Tiglachew Birhanu Balcha 5,000 1,000 5,000,000.00
Ato Mureza Leja Balcha 5,000 1,000
5,000,000.00
Total 10,000 10,000,000.00
The Project (Current Status)
Standard of the Project: The project under consideration is a construction of comprehensive multi-use
commercial building located at one of the fastest growing suburb town of Dukem which is located about only 37
kilometers distance from Addis Ababa on the road to Djibouti.
The project has been rendered high quality services and accommodation to its clients since its inauguration. The
Ethiopian Standards Agency has prepared new service rating requirements and classification directives that will
involve in the standardization process of grading hotels to different star levels.
As per the Ethiopian Standards Agency definition, Hotel is a commercial establishment which provides rooms in
which people can stay, especially to travelers and sometimes to permanent residents, and which provides food,
lodging and other services for paying guests, including the general public.
Therefore, the bar, restaurant & guest house business will satisfy the following standards and been constructed
having the following points as per the standard of the agency:
 The guest house will have 10 deluxe and 26 standardized rooms with a minimum room size of 16m2, most
of them has a standard bed size of 1.80m x 2.00m, some of the rooms has a double bed with a size of 0.90m
x 2.00m.
 All rooms are equipped with necessary facilities like TV sets, Refrigerator, Cupboard, Sofa, Tables and
Chairs etc
 In addition the guest house business gives free internet/Wi-Fi/ services for its clients
 All furniture’s and equipments used were selected in order to satisfy its clients and are chosen to make the
standard of the hotel factual
 The construction work of the buildings will be finalized with a quality finishing materials and equipments,
acceptable decorations, harmonized and impressive wall and mirror coverings and paints, well-constructed
and professional finishes and detail on all furniture’s, quality flooring and ceilings using outstanding
materials were used for the buildings

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 The lighting system of the project (inside & outside) were done as per the requirements of the standard
 There are 59 skilled and semi skilled, qualified & certified permanent employees
 The requirements for health, safety and fire security, environmental services requirement for waste
management and have certified documentary evidence of compliance
 The hygiene and sanitation of the kitchen and public area is at a high standard
 The project has a bar & restaurant available for services
 There is a separate & independent reception area ready for users 24/7
 All guest rooms have their own bathrooms for personal use
 All rooms are serviced including linen/towel change, removal of rubbish and cleaning 7 days a week
 There is always a contact person at a reception area 24 hrs / 7 days a week
 Bank service is also available at the gate of the project site
 Pharmacy, Beauty Saloon & Gift shop will be one of the project’s service area
 Separate Bar, Restaurant & smoking area available for clients of the project
 It is much available to use a taxi and is only 5 minutes far from bus station of the town
 Recreational activities like beauty center & shopping centers are available in near distance
 Clean, neat & appropriate uniform dress is used by all staffs with proper identifications
 Full laundry/dry cleaning service is available for users all the time
 Sufficient car parking area is available for users of the project
Location: The main highway road crossing the town is considered to be the life line of the capital city of Ethiopia,
at the same time it is also the main gateway to the major parts and connects to most important business cities such
as Djibouti, Adama, Hawassa, Dire Dawa, Harar, Asala, etc. This indicates that the site selected for the project
business is suitable for the reason that the site is located adjacent to the main highway road from Addis Ababa to
Djibouti and on the center of Dukem town.
 The project business project site is found in Oromia Regional State East Shoa Zone, Akaki Woreda, Dukem
Town, Kebele 01 locality area.
 The business site of the commercial buildings is found in front of Key Amba & Samisa Hotels.
Land: The project was constructed on a plot of land with area of 2,579.52 square meters. The land is acquired on
lease basis for 70 years from Dukem town Municipality Office. Per the agreement, the annual lease rental and
related payments are calculated to birr 155,000.00.
Buildings: The total construction cost consists of G+2 main building & additional G+3 guest room buildings. The
total construction costs were estimated to be Birr 74,778,305.36. Per engineers of the project, it is estimated that
the building’s 76.8% (57,435,327.77) was completed and started to generate income for the business. The
remaining construction work is estimated as 23.2% (17,342,977.59) birr of the total construction cost.
Machinery, Furniture & Equipment Items: Reception, Guest houses & other hotel furnishing items include
machinery, equipment, soft furnishings, kitchen materials and utensils, furniture and fixtures are determined and
purchased from local market with a total cost of birr 7,206,126.00. Out of which, the promoter will cover only 6%
(400,000.00 birr) from own source & the remaining 94% (6,806,126.00 birr) is expected to be covered from debt
equity.
Pre-operating Expenses: Pre-production expenditure includes interest during construction, costs of registration,
licensing and formation of the company including legal fees, commissioning expenses, architectural, structural,
electrical, sanitary, bill of quantity & feasibility studies etc. Hence the pre-operating expenses of the project
reaches birr 2,387,585.97 including land lease payments made by the promoter Bekur Trading Plc. This cost of the
project is covered from the promoter’s own source of capital.

Total Investment made so far:

Investments made so far
Description Value

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Commercial Buildings (G+2 & G+3) 57,435,327.77

Eqpmt, Furniture & Machinery 0.00
Working Capital 0.00
Land Acquisition & Pre-operating Expenses 2,387,585.97
Total 59,822,913.74

Project Budget Summary

The multi-use commercial buildings cost has been evaluated for this project proposal through the comparative
analysis of other relative performance venues bid and constructed over the last few years. At this stage, the
estimated total project capital budget would be approximately 101,222,913.74. Acoustical treatments, sound
isolated mechanical systems, lighting controls, site utility upgrades, and including the machinery, equipment,
furniture & fixture costs & the amount of pre-operating expenses will all play a role in the project cost analysis.
Beneficiaries of the Project
The major beneficiaries include the following:-
 Returns on Investment
 Other Traders & Renters
 Financial Institutions
 Supply of quality hotel and accommodation services to clients
 Tax to the Government
 Foreign currency generation
 Job opportunity for productive and unemployed labor force and
 Indirect benefits accrue to the country as a whole in the form of generating potential investment capital.
The Project Rationales
The government privileged the sector by giving duty free import of appliances & equipments and availing land.
The project is very near to the capital Addis Ababa, which is known, as centre of Africa, the seat of diplomats,
suitable condition for foreign direct investment, and the attraction of tourists. Considering these favorable market
conditions, the promoter decided to start the commercial building business in Dukem town.
Formerly the promoter of the project needs its new business to be located in one of the first standard cities of
Oromia Regional State or near to those first standard cities, especially on Dukem town. According to urban reform
proclamation 65/2003 Dukem, Bishoftu, Adama and Jimma towns are categorized as the first standard cities of
Oromia towns.
The land on which the business lies was acquired by the promoter in thinking of starting a new multi-use
commercial building business in the town with a total initial cost of birr 2,387,585.97 including its land acquisition
& pre-production costs. The terrain has a total of 2,579.52sqm of land for the project construction work. The
promoter Bekur Trading Plc has been studied several places around Adds Ababa and the surrounding special zone

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towns of Oromia in order to start its new business, subsequently after extensive studies was done and due to the
next points they decided to start their new project in Dukem town.
 Dukem town is in near distance to Addis Ababa
 Dukem town is on the way to the Eastern part of the country, on which they can find ample market demands
for their businesses
 The town is one of the major gate pass to Addis and outside of Addis
 There are a lot of travelers who spent their day & night time to work; rest and enjoy. They consider the town
as one of the stop-by cities on their day to day journey
 There are sufficient infrastructures to the business – electricity, water, and telephone line and network
availability has good quality
 There is a huge gap between the supply and demand of commercial buildings and guest house business in the
town
 The town is on the way to Bishoftu, Adama, Hawassa & other Eastern & Southern part of the country, the
town is one of the most of the weekenders of Addis Ababa spent their weekend times
 The town is favorable not only for the current business outfit but also for the Travel & Tour works, Training
and Advertisements on Hotel & Tourism of the town and surrounding areas too, on which Bekur Trading Plc
plans to enter for the future
The above points and findings of the study made by the promoter of the project put together their vision to decide
to prefer Dukem town for their business spot and the main issue that creates a competitive advantage for the
project is that there is an access to transportation facilities to the business site, that will have a great impact on the
profitability of the project after being involved in the assembly and marketing process of the project.
Our Products and Services
The project is the one stop commercial business center that intends to offer its various customers a beautiful
experience while also exceeding their expectations with the various services that it intends to offer them.
Therefore some of the services we offer are;
 Full Hotel & Guest house services
 Banking Services
 A Meeting center for different gatherings & programs
 Governmental & Non Governmental recreational center
 Fund raising programs & Consultancy services & Trainings
 Public/Consumer shows, Banquets & Receptions
 Weddings, Business meetings, Rehearsal dinners, Holiday parties and Corporate parties
 Sport & Recreational compounds
 Other business shops
Developmental Impact of the Project in Socio-economic
Given the multi-sectoral nature of the commercial and guest house business economic sector in Ethiopia and as a
major gear to enhance the renaissance and transformation of the country, a valuable impact will be create since
every economic sector needs sufficient supply of credit facilities, land, infrastructures, fuel and gas as well as
transportation services.
The project helps the sector to minimize the current market price of commercial building centers and guest house
rooms. In addition to that the hotel will create extra recreational center for the youth of Dukem.
If it is assisted by the government, banks and related parties to extensive involvement of commercial & guest
house business center and other multi-purpose service outputs, the project will create additional job opportunity to
the community. Help for the foreign exchange earner of the country.
In relation with the social & economical impact of the project, it is planned to deliver clean water to the society
free of charge from the bore-hole it organized at the compound.
Additionally, the project creates additional demand for room services within Dukem town.
As a whole it will have significant socio-economic developmental impact for several types of stakeholders.
Project Implementation Plan

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Ja Fe Ma Ap Ma Ju Ju Au Sep Oc No De
Year Activity n b r r y n l g t t v c
Land Acquisition, Legalization
Process, 1st Phase Construction,
2021/22
Finalizing the 1st Phase & Start-up
Debt Financing
2023 2nd Phase Construction
Finalizing the Construction job
Purchasing Machinery & Eqpmts
2024 Hiring new employees
Inauguration

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UNIT FOUR
Market- Demand & Supply Analysis and Strategy
To undertake the demand and market analysis both primary and secondary data was collected from primary and
secondary sources. The primary data was collected by personal observation, and interviewing administrators,
contractors, investment bureau employees, customers and different peoples who work in similar businesses.
Secondary data was collected from governmental institutions such as investment office, ministry of tourism and
culture. These collected information’s are about market potential and shares, demand of community for both
satisfied and unsatisfied portions, pricing strategies and related impacts on the raw material and their suppliers,
business environments (location) influences from both internal and external etc.
Dukem enjoys a relatively better infrastructure as compared to other towns of the administrative zone. There is an
asphalted road that connects the town to the capital city and other major towns around the metropolis and the
Eastern part of the Regional states. The site is well served by road transportation system. The important supplies
for development of business compounds (Electric power and water) are sufficiently available. Electric power is
supplied to the locality areas and nearby town from Koka Hydro Power Station. Social service infrastructures are
established in the locality and nearby towns with a sufficient capacity to accommodate further development.
Since the proposed project site is located at the center of the town where there is fast growth in terms of
commercial activities it will have a fast return on investment.
More & more buildings (residential houses, offices, schools & other social & economic institutions) are coming up
to accommodate ever increasing population in our country as well as for other developmental activities viz
commercial building & guest houses etc. There is good demand for commercial building & guest house services
due to the increasing flow of road transportation through the town, the ever increasing number of residents within
Dukem town, high flow of recreational groups from both the metropolis and the nearby towns.
Recreational services now days is occupying an important position in daily life of people. The commercial building
& guest house service is also used by several types of governmental offices, private companies, local area
residents, travelers etc. The demand for commercial building and guest house service is increasing day by day due
to the rapid development of living standard of people and industrial and agricultural developments. The demand is
also not limited to major towns of the nation rather it’s getting more popular in small towns and villages too. Due
to this fact the project will not be faced with market problems.
To attain the project objectives, the strategies to be followed will include providing efficient & reliable customer
services, utilizing modern service facilities, strengthening the marketing wing of the company, introducing service
improvement schemes, introducing a computer-aided management information system, establishing standards for
enhanced quality of services. The project will engage in multi-use commercial business services in order to meet
its sales targets, the company has planned to create a consumer attraction and advertisement network through its
circulation plan.
Factors Influencing the Market
 Comparative price realization from the other commercial building service outputs
 Carryover stocks and serve as per the demand of consumers
 Technological gains through improved facilities and management scheme
 Development of new applications and substitutes of guest house service products
Customers / Target Market
The target market for this industry is quite huge as there are events that are being thrown every now and then
consisting of different types of crowd, which makes for a huge customer base for event centers.
Therefore, our center cannot be restricted to just hosting weddings, parties, fundraising and business meetings but
it can host any event that our client deems worthy to celebrate or carry out. Our strategic location in Dukem has
offered us ample opportunity to be able to tap into the target market.
However, we intend to conduct a market research in order to fully understand our target market and know what
they expect from us, this will help us properly draft the strategies that would be needed to attract more customers
to our business.

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From the result of our market research, we have found that we are in business to offer our wide range of services to
the following groups of people;
 Couples & Business Organizations
 Government Agencies & Non-profit Organizations
 Religious Bodies & Educational Institutions
 Financial Institutions & Celebrities
 Anchor tenants: Organizations leasing office space within the commercial center
 Group hirers: Local community groups or commercial organizations wishing to hire the garden to stage their
own events or activities (usually regular).
 Personal hirers: Local people wishing to hire the garden to hold their own (usually one-off) events.
 Attendees at organized events and paying audiences at cultural, artistic, sporting or musical events or
activities.
 Members of the local community with an active interest in preserving the Centre.
In light of market research and previous experience of other businesses in the industry, our target markets are
tourists, transit tourists and Dukem and surrounding town residents. The detail description of our target market is
listed as follows:
Foreign Tourists: the existence of many tourist attraction sites of the country in general & that of the city in
particular are attracting a large number of tourists to the country. Hence, these tourists prefer our hotel & guest
house services since they demand international standard high quality services.
In addition, participants of international conference (seminars), business travelers, transit passengers, foreign
diplomats, officials of different international organizations, NGOs and Ethiopian diasporas who came home for
different reasons are the users of our services. Based on the information obtained from the Ethiopian tourism
commission, the number of tourists visiting Ethiopia is growing fast from year to year.
Residents of Dukem & Surrounding Towns: the project is located at Dukem town which is the nearest suburb of
the capital Addis, where most of expatriates, Diasporas, icon business men and high rank politicians are residing.
Hence, they are one of targeted customers of the project.
Demand and Supply Gap Analysis
Demand Analysis: Ethiopia is endowed with unique cultural heritages, striking scenery, favorable climate, rich
flaura fauna, as well as important archeological sites. These blessings coupled with the government’s initiative to
promote the tourist attraction centers demanded the country to invest on multi-use commercial buildings,
convention centers & hotel constructions as more tourist arrival is expected in the future. The capital -Addis Ababa
is the venue of Africa being the seat of many international and regional organizations including UN-ECA, AU,
over 90 permanent residents of diplomatic missions and direct and indirect representative offices.
These diplomatic missions and organizations used to organize regular and extraordinary meetings. Participants
require standard accommodation services and meeting places in the capital. As it is well known, there are a number
of factors affecting the demand of commercial center catering service. Mainly the factors are disposable income of
the population, its size, willingness and preference of the customer, quality and availability of competitors in the
sector. There are also implicit factors attributable to the general political, economical and social activities of the
country in general and the city in particular. In such circumstances, it is difficult to know the exact magnitude of
demand especially for local customers and hence what could be worked out is a demand forecast based on
historical tourist’s inbound trend to Ethiopia.
Analysis of Need
Because of the inadequacies with sufficient high ranking commercial & guesthouse centers in the town, the clients
with the demand have been forced to take their programs to be held at Bishoftu, Addis Ababa & Adama towns.
The facilities available in Dukem town do not meet the demands that several Governmental & Non Governmental
organizations requires, thus limiting the types and sizes of conferences that can be held. Bekur Trading Plc has
determined through diligent examination of other commercial centers in the town, that the appropriate capacity for
this type of demand is not sufficient for clients.
The project has been broken down in to four primary categories based on function; Commercial Building, Bar &
Restaurant, Guest Rooms, Garden & Recreational zone & Other Business Shops.

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Supply Analysis: Dukem town has a limited supply of Commercial and guest house services. The existing project
in the town is highly slanted towards the capital city. Multi-use commercial building & guest house service supply
in Dukem is characterized as low stage compared with other towns; its features are:
 Low educational qualification and training system,
 Poor service quality and limited domestic consumption,
 Limited supply of commercial buildings & over-pricing of the existing businesses for what they offered
 Lack of service plain rating system, which prevents the existing licensing authority from downgrading them,
 Less access to market information and poor infrastructure,
Supply of multi-use commercial building & guest house service is not a mere forecast of the number of available
rooms, it includes assessment of establishment and constructions, expansions, quality of the service and factors
that deal with the process of service delivery.
Local Market Conditions
The demographic and socio-economic characteristics of a local market are important components in assessing the
market potential for new commercial center space in any corner of the world. The strength of a market in terms of
its ability to attract events and attendees, and generate revenues, is predicated, somewhat, on the size of the
regional market area population and its demographic makeup as well as the level of competition within the
regional area. Further, a community’s hospitality infrastructure in terms of commercial buildings, hotels,
restaurants, entertainment & other such factors contribute heavily to the ability to attract non-local demands.
From a competitive standpoint as a “destination”, some of the project’s most prominent strengths include:
 the diversity of destination in terms of visitor appeal and interests (i.e., diverse and quality mix of urban,
rural, indoor, outdoor, entertainment, scenic, and leisure amenities and attractions);
 direct driving accessibility via the capital to the town;
 conveniently-located airport with direct air service to key regional hubs will be constructed in Dukem town
in near future;
 Progressive economic development and socioeconomic attributes.
Events that rotate within a given region (e.g., conventions, conferences, and meetings hosted by associations,
government, corporate/trade groups, and non-professional organizations, such as SMERF [social, military,
educational, religious, and fraternal] groups) normally view destinations with diverse offerings, such as this
project, favorably when considering guest house sites.
Marketing Strategy
Product or service marketing is a fundamental job in business operation. The services to be offered should be
properly marketed so as to achieve the desired market share. The marketing techniques to be followed arousing the
proper mixing up of the four marketing techniques.
Marketing will be focused on generating sufficient income by lettings both to commercial and community
customers to create and run a successful community asset. In the longer term an active approach will be taken to
developing a responsive programme of community events. The range of facilities gives numerous, flexible options
for income generation.
Over time the most successful types will be identified and exploited and a business-like approach will be taken. It
can be seen from the financial forecasts that considerable income can be generated, enough to cover costs and
generate a profit, to take the project forward sustainably and to maintain it well.

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UNIT FIVE
Industry Analysis - Economic and Sector Review
Ethiopian Economy: The services sector of the country’s economy has—for the first time in the history—
overtaken agriculture as the largest segment of the Ethiopian economy. This reverses a centuries-long economic
structure, wherein agriculture was the dominant sector, followed in a distant second place by the services sector,
and lastly a very small industrial sector. The recent release of FY 2020/21 GDP statistics, however, revealed that
the service sector is now clearly at top, comprising 50.9percent of GDP, followed by agriculture at 37.5 percent,
and Industry at just 13.2 percent (Ministry of Finance & Economic Development). The customary shorthand
description of the Ethiopian economy as being overwhelmingly agriculture-based-has thus just becomes obsolete.
The overtaking of agriculture by services is not some statistical blip or a one-off occurrence linked to a particularly
poor crop season.
Agriculture has actually been overtaken by services at a time when crop output reached a record level of 17.1
million tons. Indeed, for close observers, the trend lines have been prevalent for almost a decade; agriculture was
more than 50 percent of GDP but started a gradual decline over the past decade, falling to about 47percent in the
middle of the decade and to a low of 43.2 percent of GDP most recently. The services share of GDP moved slowly
but consistently in the other direction, moving up from just 38 percent at the start of the decade to 45 percent of
GDP most recently.
Projected Composition of Ethiopian GDP
Industr
Services y Agriculture
FY 2017/18 GDP Share 45.1 13.0 43.2
FY 2018/19 GDP Share 48.0 13.1 40.2
FY 2019/20 GDP Share 49.6 13.2 38.6
FY 2020/21 GDP Share 50.9 13.2 37.5
Source: MoFED & Access Capital Projections; figures do not add up to 100 percent due
to a technical adjustment for financial intermediation services in GDP data.
As indicated in the above statistical data the service sector GDP contribution in the overall economy has grown
year after year in arrow.
Tourism and Hotel Sector
International tourism recovered strongly in 2020 according to the Advance Release of the UNWTO World
Tourism Barometer. International tourist arrivals were up by almost 7% to 935 million, following the 4% decline
in 2018/19 – the year hardest hit by the global economic crisis. The vast majority of destinations worldwide posted
positive figures, sufficient to offset recent losses or bring them close to this target. However, recovery came at
different speeds and was primarily driven by emerging economies.
Boosted by improved economic conditions worldwide, international tourism has recovered faster than expected
from the impacts of the global financial crisis and economic recession of late 2018 and 2019. International tourist
arrivals were up by 6.7% compared to 2018, with positive growth reported in all world regions. Worldwide, the
number of international tourist arrivals reached 935 million. While all regions posted growth in international
tourist arrivals, emerging economies remain the main drivers of this recovery. This multi-speed recovery, lower in
advanced economies (+5%), faster in emerging ones (+8%), is a reflection of the broader global economic situation
and is set to dominate 2020/21 and the foreseeable future.
The recovery in international tourism is good news, especially for those developing countries that rely on the
sector for much-needed revenue and jobs. Following a year of global recovery in 2020, growth is expected to
continue for the tourism sector in 2021 but at a slower pace. UNWTO forecasts international tourist arrivals to
grow at between 4% & 5% in 2020/21, a rate slightly above the long-term average.
The commercial, hotel & guest house business center is becoming a popular one as new projects are opened
everyday somewhere in the country. Most businesses in the hospitality industry are also leaning towards this trend
by constructing multi-purpose projects or renovating existing facilities so as to be able to tap into the trend of
hosting parties and conferences.

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Nationally according to reports, the commercial & guest house business industry has also recognized the
importance of having centers to host and service meetings to its revenue base and has started expanding its offer to
cover these areas. This has helped to boost the bottom line for most of these projects.
Asides hotels, educational institutions such as colleges and Universities have started focusing on increasing the
number of conferences centers available to clients. Other unusual institutions such as museums, theatres, cinemas,
Regional & Local Municipalities have also started making centers available to host meetings and other events.
There are new categories of venues that are now being added which create diversity to the other services in the
market. These venues are unusual and are also growing in popularity as they are regarded as funky and edgy and
are preferred by the younger generation, especially as they do not require overnight accommodation.
Companies are now picking brands that identify with their corporate values and brands, as this is seen as being
appreciated by their customers and other stakeholders. Also, guests to these meetings are likely to see the venue as
a reflection of the company’s goals.
Venues have also begun to shift towards smarter designs that not only make them accessible but smart as well
which mean accommodating all kinds of transportation in order to save attendees added stress.
Venues have also seen the need to ensure that those attending events can connect with the outside world, by
ensuring that connectivity is being provided for at events. This has become a priority for event centers and is one
detail that clients appreciate.
Commercial building centers are no more focusing on just providing rental services for use but also adding other
services as well such as bar & restaurant, guest house, catering, event coordination, wait staff, bartending, décor
and rentals of several of equipment not included in contract.
Ethiopia: With its diversified natural endowments can be one of those main tourist attraction countries in the
world. The main features of the natural tourist attractions of the country are its landscape with numerous scales of
topographies, attractive rivers and waterfalls, gorges, caves, rift valley, lakes, fauna and flora, monuments and
artifacts, and diverse ethnic and cultural blends. Being an ancient country it has got rich history. The famous
historical routes are Addis Ababa, Bahir Dar, Gondar, Axum, Lalibela, Mekelle, Sof-Oumer, Arba Minch,
Hawassa, etc. These areas are famous for monasteries, ritual obelisks, manuscripts, castles, rift valley and lakes,
monolithic stones, etc.
The archeological attractions are Haddar in Awash Valley, Melka Kontur, Dilla and Dire Dawa areas. Ethiopia is
the cradle of mankind where four million years old fossil remains (Selam) has been recently found. The unique
character of the country are its attractive cultures and more than 80 ethnic groups having over 200 dialect, varied
traditions and customs, very interesting music, folk songs and dancing.
In addition to this, Addis Ababa is the centre of Africa, the seat of numerous diplomatic missions and
representatives of international organizations. It is a venue of many conferences and seminars and a home for
thriving commercial community.
Former’s Travel Guides, which has been offering the best tourist destination sites for those planning the perfect
travel excursion for the last 50 years, posted on Frommer’s.com scoured the globe, and poll edits stable of authors
and experts to identify twelve surprising, thriving, or emerging travel destinations. Following this, Ethiopia is
selected one of the top ten travel destinations.
Former’s Travel Guides also disclosed Ethiopia as finally emerged out of the shadows caused by year’s political
strife, economic hardship, and famine. The improved infrastructure has made travelling in Ethiopia increasingly
popular, especially for those seeking adventure. Ethiopia is reverted for its rich history as one of the earliest
Christian country, the town of Axum which is the home of the ancient ark of the covenants as well as the
monolithic rock-hewn churches of Lalibela are some of the tourist attraction sites in Ethiopia. The country has a
unique calendar of its own and it has celebrated its own Millennium. The African Union head of states on its
summit decided the Ethiopian Millennium to be called as the African Millennium. This helps the country to
promote its tourism industry throughout the world.
Statistical report on most developing countries show that the demand for facilities such as hotels, transportation,
banking, insurance, telecommunications, road, electricity, etc are rising and should assist the growing tourism
industry. It is, therefore, high time for the country to develop and improve its tourist facilities to a level of
internationally acceptable standard.

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Dukem Town: Favorable situation for the private sector in Dukem town causes to raise performance of investment
& considerable number of projects are flourished as resent facts reveled. Relatively presence of well-developed
infrastructure & its nearness to national capital makes the town highest recipient of investment.
From time to time the increment and expansion of urban zone causes the demand of hotel & commercial buildings
are alarmingly increasing. The good governance experienced in the town is the main cause of expansion of
business movement which in turn seeks for suitable and modern working premises. Due to the presence of high
demand gap, suitability and relative advantage of Dukem town as industrial, commercial and residential quarter,
and personal interests of the owner of the project, Bekur Trading Plc initiates the first project for itself and wants to
be one of the pioneers in the town for constructing a commercial compound.
Dukem town is located at 37kms southeast of Addis Ababa and gate-way to the eastern and south-eastern part of
the country and is served as the main link to major economic centers of the country and has a heavy traffic
movement due to being a main transit location for heavy and medium weight travelers.
Emerged due to train station of the Ethio-Djibouti Railway, the town is established around 1915E.c in between
Dukem & Modjo towns.
Physical Characteristics of Dukem: The landscape of Dukem and Bishoftu owes its origin to the volcanism
Quaternary that gave rise to the existing peculiar geomorphology of volcanic environment. This was later
modified, to a limited extent, by recent alluvial depositions and formation. As a result, numerous cinder and spatter
cones as well as old volcanic create over within and in the vicinity of Dukem and Bishoftu. The two towns and its
immediate vicinity are surrounded by relatively highly elevated areas like Mt. Yerer to the north, Mt. Sokour to the
south, Mt. Zikuala to the south-west and some scattered cinder and spatter cones to the east and west.
Under this setting, Dukem and Bishoftu towns are located at the northwestern tip of the G.R.V (Great Rift Valley)
within in the southern part of the Awash River Basin. Specifically, it is within the wood chat River catchments, a
tributary of the Modjo River that fall into the Awash and into the Koka Lake and Aba Samuel River.
Since Dukem town is one of the neighboring towns and found in between to the metropolis and Adama, different
types of consumers should pass through Dukem town and that makes the town one of the most attractive
residential, recreational, business plus industrial area of the region.
What makes Dukem & Bishoftu towns unique is also the colorful annual ceremony for Irrechaa (Thanks giving) at
Lake Hora Arsedi as a true manifestation of Oromo religion and culture. This is part of the thousands of nationals
and international visitors. Currently, it has drawn large-scale attention and received wide media coverage. Thus, in
addition to its significant as a shrine for the worship of Oromo religion, it has a magnificent potential as valuable
source of beauty.
Population: Dukem is situated along the Addis Ababa - Djibouti highway and is a station on the Ethio-Djibouti
Railway. It is also found adjacent to the location of an industrial park covering 40 hectares owned and developed
by East African Group (Ethiopia), Ltd. The town has an elevation of 1950 meters above sea level. The town has a
population of more than hundred fifteen thousand. The growth rate ranges from 5,000 to 10,000 yearly.
Business and Finance: As Dukem town is becoming an established investor’s destination throughout the nation,
many state owned and private banks are opening their branch in the city to exploit the financial activity.
The town has more than ten private and state owned banks.
Economic Activities: Despite its status as one of the fastest growing towns in the region for decades, Dukem is
physically not larger than most of zonal/woreda towns in the regional state of Oromia. Coupled with urban
agriculture, the availability of suitable flat land, infrastructure, abundant water resource, feed for animals etc. has
contributed to the establishment of agro-industrial manufacturing, recreational resorts, hotels and business firms.
Presence of a number of governmental, non-governmental organizations and private sectors, in addition to its
proximity to Addis Ababa offered and easy access to transportation of raw materials, finished goods and other
trade and commerce activities. With more to come, these are the major economic basis and potentials of the town.
Due to its favorable area for investment, there are a lot of private investors investing on different type of industries
which create a lot of employment opportunities for the residents of the town.
Investment Overview: Existing Investment Economic Policy of the country makes Dukem the ideal place to
invest.
 Capital and decentralized economy
 Free Market Policy (Minimum Government Intervention)

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 Encouraging investment and private capital Accumulation

 Favorable investment Policy and Conditions
 Encouragements made for Investors (Tax free, duty free and the like....) made the town one of the ideal
business locations in the nation.
Infrastructure Development: By way of infrastructure rehabilitation, Dukem town has undertaken various forms
and qualities of developmental schemes. Among these are asphalt and coble stone roads, draining and flood
protection structures such as walls and check dams, new and rehabilitated market places, water supply and
sewerage developments within the town.
Hotel & Guest House Business Sector
Modern hotel & guest house businesses in the country begin at the end of the 19th c, particularly during the
Emperor Minelik II period. At the end of 1890’s a modern hotel was built with the name of “Taitu Hotel” with the
aim to serve the royal families, embassy workers, envoys and tourists. In addition, Italian invention was
contributed to the development of the sector through the establishment of Italian owned hotels in major cities and
towns of the country. More specifically, they have started to establish better equipped hotels in Addis Ababa, Dire
Dawa and other towns with main objective of providing hotel services to the Italian armies and beside to this, to
strength its colonial position by introducing economic colonization. In addition, factors like the following
contributed towards the development of the sector:-
 The construction of Ethio-Djibouti railways
 The existence of various tourist sites
 The strengthening of Ethiopia’s foreign relations
 The increasing settlement of foreign citizens from countries like Armenia, Greece, Italy, and India who all
helped to bring entrepreneurial capacity to develop the hotel services locally.
 The establishment of various international organizations such as AAU and ECA in Addis Ababa which
resulted in the increase in the demand of conference tourism in the country.
Although the number of foreign travelers who were interested in the natural, cultural, and historical attractions of
Ethiopia had been increasing from year to year since Mimili’s time (late 19th century), tourism as an economic
activity and important industry was given due attention in the early 1960s. Thus, in Ethiopia, modern tourism
activity was started not more than 45 years ago.
Accordingly, the first tourist organization was established in 1961 and consequently, to develop tourism and attract
investors in the sector, the Imperial Government promulgated a decree in 1962. The main objective of the decree
was to initiate private investment in tourism sector. At this time, tourism infrastructure was very poor and there
were inadequate number of hotels to accommodate tourists. Therefore, the Imperial government emphasized in
building hotels and other infrastructure. With this view, government established various hotels and resorts in the
capital city and major tourist attraction areas. The Hilton Hotel, Ras hotel, Ethiopia hotel and Gihon hotel counts
among the hotel chains established in the capital and major tourist areas of the country during the Imperial
Hailessellassie era. During this period, tourism and hotel business was in the process of rapid expansion. However,
because of the change of government in 1974, the rapid growth of tourism had been hindered significantly. Even
during this period, though several efforts were made to develop the tourism sector, due to the government’s
ideology, the sector’s performance was left behind the pre 1974 period. Therefore, the performance of tourism and
hotel Business during the military regime had been disappointing, owing to the hostile environment for
international tourists, restrictions imposed on private sector participation, low level of investment on tourism
promotion and development, inadequate tourist facilities and poor transport and other infrastructure (Survey of
Tourism, 1998; MEDaC, 1999). All these factors accounted for the poor performance of the sector in terms of
tourist flows, foreign exchange generation, and job creation. Finally, the military government issued ‘mixed
economic policy’ in1989 and the private sector was invited to participate in tourism business.
In 1991, after the collapse of the military government, a transitional government was established and it
campaigned for the shift from command economy to free market economy. This change of economic policy further
encouraged the participation of private investment that was already started because of the mixed economy in
1989.Consequently, the government introduced reforms in the tourism sector and Ethiopia was open for tourists
from all parts of the world. The new policy allows the participation of private investors in the tourism sector. As a

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result, several private tour operators and travel agencies have been established. Accordingly, the hotel sector
became one of the beneficiaries of the new economic policy. Thus, there is a relatively conducive investment
opportunity in hotel industry and the trend shows that tourism will be one of the main contributors to the balance
of payments as well as pro-poor economic growth opportunities in the future. Thus, the very intent of this project is
to take advantage of this opportunity and expand and improve the existing hotel business near to the most vibrant
and growing city (Addis Ababa).

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UNIT SIX
Justification of the Project & SWOT Analysis
Dukem is clearly a thriving town in terms of community activity, particularly when it comes to performing arts,
sports & other social & economical events. However, the needs of many of these groups are not currently met by
the facilities available, which are relatively small and not always fit for purpose. The Commercial Building &
Guest House Business Center development probably represents the best opportunity for decades (and for years to
come) to meet much of this need in one large, purpose-built commercial building.
The proposal for a new commercial building & guest house in Dukem cannot be considered in isolation, as it raises
the wider strategic issue of what commercial facilities are needed in the town as it grows, as well as what will be
sustainable in times of austerity. Building a new commercial business in addition to what already exists will create
more capacity than is needed, and threaten the viability of all venues. Since there is good evidence that co-location
of facilities and services in urban areas helps to ensure sustainability of the industry, consideration should be given
by all local stakeholders to ‘consolidating’ a number of facilities & services within the one new project.
One of the clear consequences of urban development is increase demand for urbanized multi-use commercial &
guesthouse service. Mismatch between supply and demand of commercial buildings has caused problems that
could be reflected in the socio-economic, health, sanitation, environment and well being of the community in
general. Multi-use commercial building & guesthouse business building problem is seriously felt in any urban
centers of the country both quantitatively and qualitatively. As it is common to Ethiopian towns, Dukem town
suffer from such a problem as there is a large gap between the demands on one hand and the lack of supply and
stock to services of multi-use commercial & guest house commercial buildings on the other hand.
The increasing human population in the town and the rate of urbanization indicates that there will be substantial
need to improve service giving institution like that of multi-use commercial center, hotels, modern shopping
centers, standardized supermarkets, cafeteria and different business centers.
Since the town was included in to urban reform program, the city administration has been undertaking various
investment promotions encouraging private sectors to invest their wealth and knowledge, is the driving force of the
development of the town. However there are no sufficient modern commercial building business center services
giving organizations. For the demand of modern commercial building & guesthouse center services citizens are
exposed to extra costs by travelling to the surrounding towns like that of Bishoftu, Adama, Addis Ababa and
Hawassa. Therefore this project is intended to solve such problems and to serve the ever increasing number of
residents of the town, travelers and weekenders mainly from the capital city and others.
Why Invest in Dukem?
1. Access to market because of its geographical location
2. Peace and Stability is always in the town and around
3. Cheap Potential Resources (Human and Natural Resources)
4. Infrastructure is at its best (Transportation, Power, Telecommunication, Water are adequately available)
5. Conducive Environment Policy
6. Tourism Center – are some of the reasons to initiate the emotion of the promoter Bekur
Trading Plc to invest its capital and knowledge in Dukem town.
Technology and Special Amenities
Many Multi-purpose commercial buildings & guesthouse business center operators agreed that offering technology
and special amenities can enhance the attractiveness and use of a facility. Suggestions include:
 Wireless Internet or multiple areas where Internet can be accessed.
 High quality projectors and screens – having multiple large screens in bigger rooms is particularly successful
in their main rental & guest house spaces.
 High quality and consistently reliable sound equipment.
 Wireless microphones were recommended by several interviewees (easy to use, set up).
 Sound protection between partitions and individual sound equipment for each section for guest rooms.
 Outsourcing of AV services and/or has staff dedicated to ensuring that all equipment is functional throughout
the compound & garden areas.

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 Commercial kitchen allowing catered events to be done in-house - with a warming kitchen, there will be a
limit to who can cater particular events because of the logistics of transferring prepared foods from the
catering location to the conference facility while also meeting permitting requirements.
 Flexible spaces for a wide range of group sizes and activities and the ability to offer breakout rooms. As is
discussed in other sections of this study, demand for small programs (50-100 people) is greater than demand
for gatherings for more than 100 or more people.
 Small nooks or dedicated space for networking, conducting business, and small two to four person meetings
is essential for tapping into the larger conference market.
SWOT Analysis
Like every successful business out there, the promoter intends to ensure that the commercial building business is of
the required standard whilst also offering the best services and so to ensure that the promoter attain this, Bekur
Trading Plc hired a reputable business consultant here in Dukem, to help its business critically look through its
business concept and determine if it had what it takes to become a standard company.
Due to its request, the hired business consultant had to use the SWOT analysis in taking stock of strengths,
weaknesses, opportunities and threats to determine how the business were likely to fare in the industry fare in the
industry here in Dukem and in the whole of the Region as well as the Country. Below is the result of the critical
analysis conducted on behalf of Bekur Trading Plc Commercial Building Business Center;
Strength: the strength lies in the fact that we offer diverse services that will meet any requirements by our clients,
which allows us stand apart from our competitors. Also, we have professional and competent staffs at hand to
ensure that every event no matter the kind is conducted smoothly.
Our project is not only well designed but also convenient as well as we also have the grounds for customers who
want an outdoor program. Finally, the expertise of the prompter, Bekur Trading Plc who not only has amassed
several years of experience but also has several qualifications, is strength at the business of its project.
 The existing promising market for the service, geographical location plus availability of labor for the Project
 Dukem town is a busy town connection with different major & small towns and peasant association
Weakness: this industry is not saturated with these kinds of businesses; however, we intend to stand apart from
our competitors by offering unique services that will attract the customers and offering excellent customer care that
will retain most of our customers. Therefore there is no significant weakness identifies on the project.
Opportunity: there are various opportunities that abound for us because the project can be converted to any kind
of event that intends to be hosted by our clients. The guest house & hotel business also can cater to religious bodies
who intend to use the project for regular meetings.
 Existence of good policy environment for investment
 Government incentive for investment
 Existence of high demand for improved & equipped modernized commercial & hotel service buildings
 Availability of professionals around project area
 Existence of several standardized hotels and commercial buildings in the town
 Premium prices can be obtained by providing quality service
Threats: there are various threats that exist to every business in general, and so the probability of facing threats is
not alarming to us. The threats are likely to face in the course of starting and running the business is the off-peak
periods, where there are less likely events to be thrown.
The promoter however has come up with other services that will generate income for the business during these
periods. Another threat is having a major competitor offering same services in the same location. Bekur Trading
Plc has proactive measures in place that will ensure that it remain unique and different in all the services that it
would be offering.
 Government policies and procedures may be could be characterized as a threat
 Market share competitors

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 Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

UNIT SEVEN
Technical Analysis
Land and Location: The project is located in Dukem town suburb to east of Addis showing fastest growth. The
project site is adjacent to main road stretched between Addis and Djibouti. A leased land area of 2,579.52 square
meters allocated for the multi-purpose commercial & guest house project is adequate to accommodate the
buildings with its facilities and enough for garden & parking spaces.
Infrastructures: The project area is designed by professional engineers. The building designed was taken keen
attention for architectural, structural, sanitary and electrical layouts. The project site is availed with water,
electrical light and power with excellent access road.
Service Capacity: This project study estimated and planned to cater all the commercial & guest house facilities.
The building floors are designed to give different services as detailed below.
 Assuming pre-marketing period, both deluxe & standard rooms are assumed to be occupied in a capacity of
70%, 80%, 90% and 100% in the 1st, 2nd, 3rd, 4th and thereafter years, respectively.
 Food & Beverages will have a capacity of 50%, 60% & 70% of the room service income for the first three
years and thereafter.
 The meeting halls, garden & other incomes will have a capacity of 20%, 30% & 40% of the room service
income for the first three years and thereafter.
 The main G+3 building is almost finished and start generating rent income for the project based on the next
information. The 2nd floor is held for bar & restaurant service when its construction work will be finished.
Years 1 2 3 4 5 6 7 8 9 10
Bank Rental Income-m2 345 345 345 345 345 345 345 345 345 345
Price/m2 550.00 550.00 577.50 577.50 606.38 606.38 636.69 636.69 668.53 668.53
Rental Income 2,277,000 2,277,000 2,390,850 2,390,850 2,510,393 2,510,393 2,635,912 2,635,912 2,767,708 2,767,708

Years 1 2 3 4 5 6 7 8 9 10
Rental Income - m2 155 155 155 155 155 155 155 155 155 155
Price/m2 500.00 500.00 525.00 525.00 551.25 551.25 578.81 578.81 607.75 607.75
Rental Income 930,000 930,000 976,500 976,500 1,025,325 1,025,325 1,076,591 1,076,591 1,130,421 1,130,421
Land Utilization: The project has been established on a 2,579.52sqm area of land. The project has a total of 36
deluxe & standardized guest rooms/bed rooms, Bar & Restaurants, Reception area, Meeting Hall, Gift Shop and
Offices. The project business will be run by the General Manager Ato Tiglachew Berehanu and additional hired
professional employees.
Out of 2,579.52sqm of land about 33.92% of land (875sqm) is allocated for the main G+2 & G+3 guest house
buildings & 66.08% of land (1,704.5sqm) is held for garden & parking area for users of the project. In general the
planned project will respect the cities rules and master plan instruction and acts accordingly.
The overall land use pattern is described as follows:
Building Unit Plan of the Project (G+2 Main Building):
SN Description Unit area (m2) Qty Remark
G+7 Building
1 Ground Floor 200 1 Rented to Tsehay Bank
2 1st Floor 145 1 Rented to Amara Bank
st
3 1 Floor 55 1 Rented to Pharmacy
4 2nd Floor 100 1 Bar & Restaurant
5 2nd Floor 100 1 Shops
Grand Total 600m2

Building Unit Plan of the Project (G+3 Building):

SN Description Unit area (m2) Qty Remark

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G+3 Building
1 Ground Floor 675 1 Guest Rooms, Reception & Kitchen
2 1st Floor 675 1 Guest Rooms & Office
3 2nd Floor 675 1 Guest Rooms
4 3rd Floor 675 1 Meeting Hall & Guest Rooms
Grand Total 2,700m2
Capital and Employment
The project is established at a total capital of Birr 101,222,913.74 in Dukem town, Akaki woreda in-front of Key
Amba & Samisa Hotels. The project has been previously constructed the 1 st phase G+2 building & G+3 guest
house buildings.
The main buildings ground floor is already rented to Tsehay Bank.
The first floor of the G+2 building is also finalized and gives services to Amara Bank and one pharmacy.
The second floor is not yet finished and ready to use. But the promoter has a plan to use it for bar & restaurant
services.
The second G+3 building was under construction and the construction work is almost reached 38% of the total cost
of construction. The second building will have 10 deluxe rooms and 26 standard rooms for clients, offices,
reception area and kitchen.
Each deluxe room will have a price of 1,350.00; the standard rooms will have a price of 900.00 birr per night. In
addition, room price will increase by 5% every two years.
Taking the bill of quantities of the buildings under consideration, finished works have a cost of birr 57,435,327.77
(76.8%) and remaining works of the project has a cost of birr 17,342,977.59 (23.2%).
The current business project will create job opportunity for 59 permanent and additional temporary employees will
be hired as needed at the time of expansion.
The company will keep records of transaction for Audit by applying Generally Accepted Accounting Principle
more over the project will prepare quarterly and annual reports for concerned parties and management of the hotel
business.
Evaluation & Monitoring
Each element of the project’s strategy will be recorded, measured and evaluated, so the most effective tools can be
identified and used to best advantage.
Sales Projection of the Project
This industry is one that will never dip as there are always events that are usually conducted every now and then,
thereby resulting in the booking of event centers.
Our location in Dukem has quite optimistic in that the project will not only met its set revenue generating target in
the first year but that it will make marginal profit that will allow to grow the business and eventually expand it
during the second year.
However, to be able to make a factual sales projection, the promoter have been able to take a critical look at the
industry in order to analyze its chances and come up with a sales forecast that it can use to adequately plan and
draft strategies for its business.
The sales projection was however gathered based on information and assumptions that were peculiar to hotel &
guest house business center start-ups here in Dukem, Bishoftu, Adama & Addis Ababa. Therefore below are
accurate sales projections for the commercial building & hotel business center’s based on the location of the
business and several other assumptions;
Room Services: the room services are classified in to two grades, Deluxe & Standard rooms. The hotel business
center has 10 deluxe & 26 standard rooms available for guests.
This study assumes 70%, 80%, 90% & 100% accommodation rate for the first, second, third & fourth year of
operation.
The price will be 1,350.00 birr for deluxe rooms & 900.00 birr for standard rooms. The price for accommodation
will increase by 5% in every two years.
Income from Deluxe Rooms:
Year Deluxe Service Rate No. of Rooms Price Working days/year Total Income

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 Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Rooms
1 10 0.7 7 1350 365 3,449,250
2 10 0.8 8 1350 365 3,942,000
3 10 0.9 9 1418 365 4,656,488
4 10 1 10 1418 365 5,173,875
5 10 1 10 1488 365 5,432,569
6 10 1 10 1488 365 5,432,569
7 10 1 10 1563 365 5,704,197
8 10 1 10 1563 365 5,704,197
9 10 1 10 1641 365 5,989,407
10 10 1 10 1641 365 5,989,407
Income from Standard Rooms:
Service Working Total
Year Standard Rooms Rate No. of Rooms Price days/year Income
1 26 0.7 18 900 365 5,978,700
2 26 0.8 21 900 365 6,832,800
3 26 0.9 23 945 365 8,071,245
4 26 1 26 945 365 8,968,050
5 26 1 26 992 365 9,416,453
6 26 1 26 992 365 9,416,453
7 26 1 26 1042 365 9,887,275
8 26 1 26 1042 365 9,887,275
9 26 1 26 1094 365 10,381,639
10 26 1 26 1094 365 10,381,639
Other Income /Garden & Meeting Halls/: Assuming that the garden & meeting halls are available for hire
daytime and night every day of the year, the total number of possible occupants for the conference halls will be
20%, 30% & 40% of the total income of room occupants yearly. Then after, the total demand will be 40% of its
total capacity. Realistically, no garden or meeting hall is ever used to anything near to full capacity, and the
feasibility needs to be assessed at a much lower level of occupancy.
Years 1 2 3 4 5 6 7 8 9 10
Room Income 9,427,950 10,774,800 12,727,733 14,141,925 14,849,021 14,849,021 15,591,472 15,591,472 16,371,046 16,371,046
Capacity 0.20 0.30 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40
Other Income 1,885,590 3,232,440 5,091,093 5,656,770 5,939,609 5,939,609 6,236,589 6,236,589 6,548,418 6,548,418
Food & Beverages: this study identifies that out of the total room service income, only 50%, 60% & 7 0% will be
generated as Food & Beverage income for the project for the first three years and thereafter.
Years 1 2 3 4 5 6 7 8 9 10
Room Income 9,427,950 10,774,800 12,727,733 14,141,925 14,849,021 14,849,021 15,591,472 15,591,472 16,371,046 16,371,046
Capacity 0.50 0.60 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70
F&B Income 4,713,975 6,464,880 8,909,413 9,899,348 10,394,315 10,394,315 10,914,031 10,914,031 11,459,732 11,459,732
Rent Income: the project rented out 200m2 & 145m2 of the building to Tsehay Bank S.c & Amara Bank S.c
respectively with 550.00 birr /m2. So the total income generated from rent income is presented below.
Years 1 2 3 4 5 6 7 8 9 10
Bank Rental Income-m2 345 345 345 345 345 345 345 345 345 345
Price/m2 550.00 550.00 577.50 577.50 606.38 606.38 636.69 636.69 668.53 668.53
Rental Income 2,277,000 2,277,000 2,390,850 2,390,850 2,510,393 2,510,393 2,635,912 2,635,912 2,767,708 2,767,708
Rent Income: the project rented out 55m2 to one Pharmacy with a price of 500.00/m 2 & at the 2nd floor of the G+2
building, additionally the project plans to rent 100m 2 for different businesses when it’s finished. So the total
income generated from rent income is presented below.

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Years 1 2 3 4 5 6 7 8 9 10
Rental Income-m2 155 155 155 155 155 155 155 155 155 155
Price/m2 500.00 500.00 525.00 525.00 551.25 551.25 578.81 578.81 607.75 607.75
Rental Income 930,000 930,000 976,500 976,500 1,025,325 1,025,325 1,076,591 1,076,591 1,130,421 1,130,421
Sustainability and Expansion Strategy
Every business that is established to make profit intends to use such profit in sustaining itself and possibly
expanding based on the vision and objective of the company. Our sustainability and expansion strategy at the
project is drafted in such a way as to ensure that we continue in the business for a long time to come.
First, the promoter intends to ensure that it will hire only competent and professional staffs that fully understand its
core values as a company as well as the industry. Also, its staffs have the required expertise to ensure that the
business is taken to the level it should be.
To keep employees happy and productive, the project intends to ensure that it provides favorable working
environment, have great welfare packages for them and also ensure that they undergo training every now and then
that will not only enhance their skills but make them more productive for the company.
Berkur Trading Plc intends to offer various services at its business center so as to be able to build a revenue base
that will sustain it and ensure that it do not constantly go to seek for loans to be able to run the business. Various
services will also make the project stand out from its competitors whilst ensuring that have a healthy bottom line.
Finally, the project intend to retain a high percentage of its clients by ensuring that it offer them the best customer
service by its trained customer executives. Asides offering excellent customer care, it also intends to ensure that
clients that refer it get an incentive and that repeat clients get a discount. These are the strategies it intends to apply
in sustaining and expanding its business venture.
Pricing Strategy
When it comes to the rates we intend to charge for our services, we have come up with a pricing strategy that will
meet with the budget of our clients. There are different packages and categories with varying rates available for all
our different clients and we have ensured that each service package is not only affordable but will meet and exceed
the needs of all our different clients.
In a bid to raise awareness and also attract customers to our business, we intend to offer our customers a discount
for the first three months of business. We have ensured that the discounted rates we will offer our clients will in no
way allow us run at a loss even though we might be operating on a low profit margin for the duration of the
discounted prices.
The proposed project is operated with a high class commercial building, hotel, guest house & meeting center
standard, it is, therefore, ready to identify and monitor the price of its competitors to gain and maintain the loyalty
of the market. The best way for the project to grasp its competition is to take into account the taste and behavior of
the customers.
Price is the only element in the marketing mix that creates sales revenue. It is, therefore, important to set
reasonable price for all services by paying keen attention to cost, demand and competition:-
To determine the price of the services the project:
 Assess the operating cost of the service
 Taking into account demand intensity and customers psychology
 Assess the price range and price movement of the rental service, meeting halls & guest house service
through time to support sales and profit objective and marketing positions in the target group
 The current bed room renting price in Dukem is very diverse even among hotels with similar levels. This is
mainly due to the non standardized nature of the service.

Price of Services
The project is constructed to fulfill the standards of a best commercial & guest house projects. Hence, the service
price is to be taken in a star level hotel standard. In order to get the desired market share, however, the prices for

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

the guest house services shall be set at a lower price than expected. Depending on the market response to the
services and the price, periodical revision of service price is taken into consideration.
In light of the above and the facilities availed to the bed rooms, the proposed room price would be able to fetch at
least similar with the least priced hotels in the town which have the same standard hotels.
 Based on this & the current market price of the hotel, this study identifies that the room price per night for
the 26 standard bed rooms is 900.00 & deluxe rooms have a daily price of birr 1,350.00.
 The bar & restaurant service also earn revenues from the sale of food and drinks and other hotel services
especially the night bar will earn more revenue to the hotel service. The total revenue earned from this
service is estimated at 50%, 60% & 70% percent of the revenue obtained from room service income for the
first three years
 Other incomes include meeting hall & garden occupational service income & miscellaneous revenues. This
income is calculated at 20%, 30% & 40% percent of the income gained from room services.
 The rent income from Bank’s is 550.00/m2; the total area rented out is 345m2.
 Other rent income is 500.00/m2; the total area to be rented out is 155m2.
 Price will be revised and adjusted every two years with an increment of 5%.
Promotion
Promotion is vital for any business. The services of the convention center should be advertised through the
electronic and print Medias. The project will also develop its existing and new marketing links with touring
companies, international organizations, and Airliners. The project’s name will be printed in a specialized news
papers such as Selamta, the Ethiopian Tourism and Culture Ministry publications. Sponsoring of events,
conferences and symposiums will also be the other techniques to promote the commercial business center.
It is the intention to establish a readily identifiable brand image and corporate identity which can be easily
recognized in the area, building on the community status. This will help to maximize the existing high profile and
promote the venue at every turn.
Together with the new brand, a range of promotional tools will be used:
Personal Selling: Use existing contacts to build upon customers for the center. A high conversion rate is expected.
Public Relations: Existing good links with local media will be exploited. Stories will be given to local press and
radio announcing opening of the project and availability for hire, exploiting the current high profile and
maximizing human interest stories as they develop.
Website: A website, vital to any project today will be established.
Direct Marketing: Attractive leaflets and posters will be produced and distributed widely and carefully targeted
campaigns run to the numerous organizations and supporters who so strongly support the project.
Environmental and Social Impacts
 The hygiene of the employees /both clerical and non clerical/, the type of outputs and rendered to the
domestic / local markets will be keep up based on the standards and directives stated by Ministry of Health
 There will be no environmental pollutions affecting the area with relation to the proposed project
 The Eco system of the area will not be degraded by the project work

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

UNIT EIGHT
Organization and Management
Organizational Structure: Structuring is an internal arrangement of an organization to achieve the optimum
arrangement of functions among many possible alternatives. In order to make the structure efficient and cost
effective there are a number of management principles and logical parameters by which the process of structuring
should be governed.
In the current competitive business environment the business needs a simple functional structure that can respond
and adapt to rapidly changing market conditions. The structure should fit the envisaged project’s objectives.
Thus the structure should accommodate the following points:
 Start up operation should follow the phase from simple to complex based on market growth,
 Organizational growth must be anticipated in the future and this should be reflected in the structure, and
 The structure must consider the ability to pay for employees.
There are different types and approaches in structuring an organization. The following are some of the commonly
used approaches:
 Functional Organization,
 Product or market oriented organization structure, and
 Matrix organization structure
Whatever organizational structure is chosen, essential points in structuring should consider the organization’s
strategy. To achieve the objective set to it, what is needed for the project is a structure that could enable it to be
agile & responsive to environmental changes. Thus, simple functional structure with low complexity &
normalization is necessary for the project to be successful in achieving its objectives & solving problems.
Departments: Based on the principles mentioned above, the project will be organized based on a simple
functional organization structure principle. The project will have three departments and one service unit under the
general manager. The general manager will be professional in project management who will be authorized fully to
run the project with standards set for this type of projects.
The three department managers will also be professional in their respective area. Under the departments there will
be sections. The functional departments are Administration and Finance, Front Manager and Market development
and promotion managers.
Sections: Under the Finance and Administration Department Manager there will be accounts section and chief
casher. The Front Operation Department is responsible for food and beverage section, accommodation and
cleaning sections. Food and beverage section is responsible for the supply of foodstuffs and beverages. These
departments are also responsible for kitchen, beverage and “barista” operations. The organizational structure of the
project is pictorially shown below.

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

General Manager

Auditor Legal Advisor

Project Manager

Secretary

Market Dev’t & Front Operation Dep’t Fin. & Admin. Dep’t
Promotion Dep’t

Food & Beverage Accommodation & Accounts Section Chief Casher

Section Cleaning Section
Manpower Requirement and Salary of the Project
The project is operated by a hired manager who has experience in managing well recognized commercial buildings
& hotels. The department managers also are competent and experienced managers.
The project manager is fully responsible for the day to day operation of the project. The responsibility of the
owner/General Manager is limited to the hiring & firing of the project manager, determination of the project
manager’s remuneration. They also review & approve the budget & performance of the project. This mode of
management system enables the project to attain a standard which is one criterion for grading.
The manpower needs of the project and the related salary & benefits payments for professional as well as support
staff is presented in the following table.
The salary scale will be made based on standardized similar projects.
Description No. of Monthly Annual Educational Year of
Persons Salary (Birr) Salary (Birr) Background Experience
Hotel Manager 1 11,000 132,000 BA Degree 4 Years
Department Managers 3 8,500 306,000 BA Degree 2 Years
Building Administrator 1 8,000 96,000 BA Degree 2 Years
Secretary 1 4,500 54,000 Diploma 2 Years
Legal Advisor 1 6,200 74,400 BA Degree 2 Years
Head Accounts 1 5,500 66,000 Diploma 2 Years
Accounts Clerks 1 4,500 54,000 TVET 1 Year
Cashiers 2 3,000 72,000 TVET 2 Years
Receptionist 2 3,000 72,000 Certificate 1 Year
Auditor 1 5,500 66,000 Diploma 1 Year
Purchaser 1 4,000 48,000 Diploma 2 Years
Store Keeper 1 4,000 48,000 Certificate 1 Year
Massagist & Spa Professional 2 6,000 144,000 Diploma 2 Years
Sales Girls (For Shop Sales) 4 3,500 168,000 Diploma 2 Years
Nurse 1 4,700 56,400 BA Degree 1 Year
Laundry Man 1 3,000 36,000 Certificate 1 Year
Bar Man 1 2,500 30,000 10+ 1 Year

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Head-waiters 1 4,200 50,400 Diploma 2 Years

Waiter 10 2,200 264,000 10+ 1 Year
Chief Cook 1 6,000 72,000 Diploma 2 Years
Ass. Cookers 2 3,200 76,800 Certificate 1 Year
Gardner 2 2,300 55,200 10+ 1 Year
Bill Boy 1 2,500 30,000 10+ 1 Year
Electrician 1 4,000 48,000 Diploma 1 Year
Plumber 1 4,000 48,000 Diploma 1 Year
Sales Promotion Expert 1 5,500 66,000 Certificate 1 Year
Telephone Operator 1 3,500 42,000 Certificate 1 Year
Property Administrator 1 5,000 60,000 Diploma 1 Year
Cleaners 6 2,200 158,400 8+ 1 Year
Guards 6 2,800 201,600 8+ 1 Year
Grand Total 59 134,800 2,695,200
As shown above the project will have a total of 59 employees working at different level. The annual salary to be
paid is about 2,695,200.00 birr. This will grow by 5% per annum.

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

UNIT NINE
Financial Projections & Analysis
The financial analysis of the project is based on the data provided in the previous chapters and the following
assumptions:-
 Construction period (Remaining) 8 - 10 months
 Source of finance 60.48% Own equity
39.52% Bank loan
 Tax holidays 0 years
 Bank interest 16.5%
 Loan Period 10 Years
 Insurance Expense 0.50% of Fixed Assets
 Repair & Maintenance 0.30% - 0.60% of Fixed Assets
 Depreciation Expense 20% for Mach. & Equip., & 5% for Bldgs.
 Accounts receivable 30 days
 Work in progress 365 days
 Raw material (perishable) 3 days
 Raw Material (non perishable) 30 days
 Cash in hand 5 days
 Accounts payable 30 days
Loan Request
 The credit requirement that the promoter of this project presented to the bank is 40,000,000.00 that can be
repaid back within the next 10 years including all the interest and related charges.
 The repayment will be made monthly due to the nature of the business.
 The requested loan amount will be utilized for the remaining construction work of the building, finishing
works and mainly for the working capital need of the project for one year, purchase of furniture, equipment
and machineries for the project & contingencies. 39.63% will be used for its working capital requirement of
the project and contingency requirements for one year, 43.36% of the loan will be used to finalize the
remaining construction work of the building & the remaining 17.02% will used to purchase furniture,
equipment & machineries.
Equity Finance Bank Finance
Description Total cost % age Value % age Value
Commercial Buildings 74,778,305.36 76.8% 57,435,327.77 23.2% 17,342,977.59
Eqpmt, Furniture & Machinery 7,206,126.00 6% 400,000.00 94% 6,806,126.00
Pre-operating Expenditure 2,387,585.97 100% 2,387,585.97 0% -
Total Fixed Investment 84,372,017.33 71% 60,222,913.74 29% 24,149,103.59
Other Investments - 0% - 0% -
Initial Working Capital 16,850,896.41 6% 1,000,000.00 94% 15,850,896.41
Total Working Capital 16,850,896.41 6% 1,000,000.00 94% 15,850,896.41
Total Equity & Bank Finance 101,222,913.74 60% 61,222,913.74 40% 40,000,000.00

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Loan Repayment Schedule

 The banks are assumed to charge an interest rate for the term loans which lasts for ten years is 16.5% per
year as per the present scenario.
 Hence the requested project loan will be paid within the scheduled period through monthly repayment
amount of 682,569.19 that leads to an annual repayment amount of 8,190,830.28, the related interest charges
and principal payments are presented below.
Years Annual Interest Payment Principal Outstanding Loan Balance
Repayment Payment
0 - - - 40,000,000.00
1 8,190,830.28 6,474,005.01 1,716,825.27 38,283,174.73
2 8,190,830.28 6,168,293.14 2,022,537.14 36,260,637.59
3 8,190,830.28 5,808,143.74 2,382,686.54 33,877,951.05
4 8,190,830.28 5,383,863.21 2,806,967.07 31,070,983.98
5 8,190,830.28 4,884,031.84 3,306,798.44 27,764,185.54
6 8,190,830.28 4,295,196.43 3,895,633.85 23,868,551.68
7 8,190,830.28 3,601,508.20 4,589,322.08 19,279,229.60
8 8,190,830.28 2,784,296.21 5,406,534.07 13,872,695.53
9 8,190,830.28 1,821,564.80 6,369,265.48 7,503,430.05
10 8,190,830.28 687,400.23 7,503,430.05 0.00
Total 81,908,302.80 41,908,302.80 40,000,000.00 0.00
Fixed Investment Costs
Fixed investment costs include constriction /civil work/ cost, Pavement, Garden and Parking area construction
cost, sewerage and electricity installation costs, machinery cost and different equipment costs, while annual
operating cost /working capital requirement/ includes the costs that will be expend per annum for the operation of
the project to cover running cost of the whole project. The existing total project costs requirement of this project is
calculated as follows.
The construction cost is the major cost incurred in an establishment of any project. The building has G+2 & G+3
buildings that have an additional basement floor. As per the bill of quantities prepared by the concerned
professional persons the total cost of the buildings including their final stage will take 74,778,305.36. Out of which
the project needs 23.2% (17,342,977.59) only for construction cost; the rest 76.8% (57,435,327.77) birr is already
constructed & covered from the promoters own capital.
Next to the construction cost of the project the promoter needs to furnish the bar, restaurant & guest rooms with
quality equipments and furniture’s in order to be a competitor and succeed the current market competition, in
addition the project needs 50kva Generator for power back-up, the costs that will be incurred to purchase for
machineries, furniture’s, generator and related equipments are birr 7,206,126.00.

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

The other main cost of the project is the related working capital requirements that will be used after the completion
of the whole project including contingencies, the total working capital need of the project after completion is birr
16,850,000.00. Out of which the project needs 94% (15,850,896.41) of the working capital cost from debt equity;
the rest 6% (1,000,000.00) birr will be covered by the project owners.
Bekur Trading Plc costs a total of birr 2,387,585.97 for acquisition of land & pre production expenses; all are
covered from its own capital contribution. This pre-operating expenditure includes broker commission, fees made
for owner certificate transfer, architectural, structural, electrical, sanitary, bill of quantity, feasibility study and
other charges. Therefore the total cost of the project will be birr 101,222,913.74.
No Fixed Investments m2 Total Cost
1 Construction Cost 875 m2
2 Parking, Gardening & Fence Works 1,704.52 m2
3 Sewerage & Sanitation -
4 Electrical Installation - 74,778,305.36
Sub total 74,778,305.36
5 Purchase Cost - 0.00
6 Pre-operating Costs - 2,387,585.97
7 Equipments, Furniture’s & Fixtures - 7,206,126.00
8 Working Capital + Contingency - 16,850,896.41
Sub total 26,444,608.38
GRAND TOTAL - 101,222,913.74
* N.B: Pre-production expenditure includes interest during construction, costs of registration, licensing and formation of the company
including legal fees, commissioning expenses, architectural, structural, electrical, sanitary, bill of quantity & feasibility studies etc.
Owners Equity Debt Equity %
Description Total Cost (60.48%) (39.52%) Share
Buildings 74,778,305.36 57,435,327.77 17,342,977.59 73.87
Furniture, Equipment & Machineries 7,206,126.00 400,000.00 6,806,126.00 7.12
Pre-production Cost 2,387,585.97 2,387,585.97 - 2.36
Working Capital + Contingency 16,850,896.41 1,000,000.00 15,850,896.41 16.65
Total Investment Cost 101,222,913.74 61,222,913.74 40,000,000.00 100.00

Annual Revenue Projection

The revenue of the project is expected to be generated from rent of 36 guest rooms, Food & Beverage Services,
Night bar services, Rental Income and the income generated from the meeting hall & garden services.
Based on the current market assessment and demand for bed room services made by this feasibility study, each
guest room will be equipped at 70% rate of its total number of rooms per day for the first year, 80% for second
operational year, 90% for third year and will be equipped at 100% rate starting from fourth year.

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 Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Each room will be given to customers at a price of birr 900.00 per day for standard rooms & 1,350.00 birr for
deluxe rooms. The price for the guest rooms will rise by 5% every two years.
It is assumed that the Food and Drinks revenue including the night bar service will be equal to 50% of the income
generated from room services and other incomes including meeting halls & garden services revenue is 20% of the
room service income produced for the first year. It is expected that 50% of the total sales from Food, Drink &
Night bar Services and other income will be considered as gross profit, so that cost of goods sold will be 50% of
foods & beverages sales. On average all prices are expected to rise by 5% every two years.
Accordingly the project is assumed to generate annual total income of birr 19,234,515.00 on the first year.
Revenue generated from Deluxe Room Service:
Yea Deluxe Service Working Total
r Rooms Rate No. of Rooms Price days/year Income
1 10 0.7 7 1350 365 3,449,250
2 10 0.8 8 1350 365 3,942,000
3 10 0.9 9 1418 365 4,656,488
4 10 1 10 1418 365 5,173,875
5 10 1 10 1488 365 5,432,569
6 10 1 10 1488 365 5,432,569
7 10 1 10 1563 365 5,704,197
8 10 1 10 1563 365 5,704,197
9 10 1 10 1641 365 5,989,407
10 10 1 10 1641 365 5,989,407
Revenue generated from Standard Room Service:
Yea Standard Service Working
r Rooms Rate No. of Rooms Price days/year Total Income
1 26 0.7 18 900 365 5,978,700
2 26 0.8 21 900 365 6,832,800
3 26 0.9 23 945 365 8,071,245
4 26 1 26 945 365 8,968,050
5 26 1 26 992 365 9,416,453
6 26 1 26 992 365 9,416,453
7 26 1 26 1042 365 9,887,275
8 26 1 26 1042 365 9,887,275
9 26 1 26 1094 365 10,381,639
10 26 1 26 1094 365 10,381,639
Revenue generated from Other Income /Meeting Halls & Garden Services/:
Years 1 2 3 4 5 6 7 8 9 10
Room Income 9,427,950 10,774,800 12,727,733 14,141,925 14,849,021 14,849,021 15,591,472 15,591,472 16,371,046 16,371,046
Capacity 0.20 0.30 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40
Other Income 1,885,590 3,232,440 5,091,093 5,656,770 5,939,609 5,939,609 6,236,589 6,236,589 6,548,418 6,548,418
Revenue generated from Food & Beverage Service:
Years 1 2 3 4 5 6 7 8 9 10
Room Income 9,427,950 10,774,800 12,727,733 14,141,925 14,849,021 14,849,021 15,591,472 15,591,472 16,371,046 16,371,046
Capacity 0.50 0.60 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70
F&B Income 4,713,975 6,464,880 8,909,413 9,899,348 10,394,315 10,394,315 10,914,031 10,914,031 11,459,732 11,459,732
Revenue generated from Rental Service /Banks/:
Years 1 2 3 4 5 6 7 8 9 10
Bank Rental Income-m2 345 345 345 345 345 345 345 345 345 345
Price/m2 550.00 550.00 577.50 577.50 606.38 606.38 636.69 636.69 668.53 668.53
Rental Income 2,277,000 2,277,000 2,390,850 2,390,850 2,510,393 2,510,393 2,635,912 2,635,912 2,767,708 2,767,708

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 Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Revenue generated from Rental Service /Other Businesses/:

Years 1 2 3 4 5 6 7 8 9 10
Rental Income-m2 155 155 155 155 155 155 155 155 155 155
Price/m2 500.00 500.00 525.00 525.00 551.25 551.25 578.81 578.81 607.75 607.75
Rental Income 930,000 930,000 976,500 976,500 1,025,325 1,025,325 1,076,591 1,076,591 1,130,421 1,130,421
Projected Total Revenue Table
Year 1 2 3 4 5 6 7 8 9 10
Bank Rent Income 2,277,000 2,277,000 2,390,850 2,390,850 2,510,393 2,510,393 2,635,912 2,635,912 2,767,708 2,767,708
Other Rent Income 930,000 930,000 976,500 976,500 1,025,325 1,025,325 1,076,591 1,076,591 1,130,421 1,130,421
Bar & Restaurant 4,713,975 6,464,880 8,909,413 9,899,348 10,394,315 10,394,315 10,914,031 10,914,031 11,459,732 11,459,732
Deluxe Rooms 3,449,250 3,942,000 4,656,488 5,173,875 5,432,569 5,432,569 5,704,197 5,704,197 5,989,407 5,989,407
Standard Rooms 5,978,700 6,832,800 8,071,245 8,968,050 9,416,453 9,416,453 9,887,275 9,887,275 10,381,639 10,381,639
Other Income 1,885,590 3,232,440 5,091,093 5,656,770 5,939,609 5,939,609 6,236,589 6,236,589 6,548,418 6,548,418
Grand Total 19,234,515 23,679,120 30,095,588 33,065,393 34,718,662 34,718,662 36,454,595 36,454,595 38,277,325 38,277,325
Associated Costs and Expenses
Utilities Expense: The major essential utilities required for the envisaged project are electricity, water, internet
and telephone lines. Per month-
 Telephone Expense – 1,800.00
 Water Expense – 8,750.00
 Electricity Expense – 9,350.00
 Utility expenses are assumed to increase by 4% annually.
Project Years
Expense Item 1 2 3 4 5 6 7 8 9 10
Utility Expense 238,80 258,28 279,36 302,15 326,81
0 248,352 6 268,618 2 290,537 8 314,245 4 339,887
Supplies Expense: Br 112,500.00 for 1st year will be spent for different types of stationeries & printing expenses
and other supplies expenses. Then after it will have an annual increment of 4%.
Project Years
Expense Item 1 2 3 4 5 6 7 8 9 10
Supplies Expense 112,50 121,68 131,60 142,34 153,96
0 117,000 0 126,547 9 136,873 8 148,042 4 160,123
Insurance Expense: Is expected to be 0.50% of the value of total fixed assets owned by Bekur Trading Plc.
409,922.16 will be assumed as an annual insurance expense of the project (81,984,431.36 * 0.50% = 409,922.16).
Repair & Maintenance Expense: is estimated to be 0.30% of the projects fixed asset, which will be birr
245,953.29 per annum (81,984,431.36*0.30%=245,953.29). After five years of operation repair & maintenance
costs of the project is expected to rise to 0.60% of fixed assets and will become birr 491,906.59.82 per year.
Type of Expenses Rate Fixed Assets Value of Expense
Insurance Expense 0.50% 81,984,431.36 409,922.16
Repair & Maintenance Expense 0.30% 81,984,431.36 245,953.29
Repair & Maintenance Expense 0.60% 81,984,431.36 491,906.59
after 5 years of operation
Depreciation Expense: Fixed assets of the project will have their proportional depreciation expenses as per the
following determination.
Depreciation
Fixed Assets Original Value Rate Annual Depreciation
Buildings 74,778,305.36 5% 3,738,915.27
Machineries, Equipments & Furniture’s 7,206,126.00 20% 1,441,225.20
Vehicle 0.00 20% 0.00

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 Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Total 81,984,431.36 5,180,140.47

Transportation Expenses: includes expenses incurred for transporting of goods, supplies & other materials for
the project. 232,500 birr will be expected to be spent for transport expense & it will have an increment of 4%
yearly.
Project Years
Expense Item 1 2 3 4 5 6 7 8 9 10
Transport
Expense 232,500 241,800 251,472 261,531 271,992 282,872 294,187 305,954 318,192 330,920
Labor Expenses: includes expenses incurred for loading & unloading, compound clearing and other daily labor
expenses. Per annum 88,500.00 birr will be expected to be spent for transport expense and it will have an
increment of 4% yearly.
Project Years
Expense Item 1 2 3 4 5 6 7 8 9 10
Wage Expense 88,500 92,040 95,722 99,550 103,532 107,674 111,981 116,460 121,118 125,963
Cleaning Materials Expenses: includes expenses incurred for purchase sanitary materials & products per year.
Per annum 69,600.00 birr will be expected to be spent for transport expense and it will have an increment of 4%
yearly.
Project Years
Expense Item 1 2 3 4 5 6 7 8 9 10
Cleaning Mat. Exp. 69,600 72,384 75,279 78,291 81,422 84,679 88,066 91,589 95,252 99,063
Miscellaneous Expenses: includes expenses incurred for loading/unloading, fuel and gases, cleaning and other
expenses used for the project. Per annum 382,920.00 birr will be expected to be spent for miscellaneous reasons
and it will have an increment of 4% yearly.
Project Years
Expense Item 1 2 3 4 5 6 7 8 9 10
Miscellaneous Ex. 382,920 402,066 422,169 443,278 465,442 488,714 513,149 538,807 565,747 594,035
Salary Payments: The total permanent manpower requirement will be 59, of whom 33 will be skilled and semi-
skilled the rest 26 employees will be unskilled manpower. The list of the manpower requirement is presented
above along with monthly and annual salaries and wages. Salary will be higher than before by 5% for permanent
employees every year.
Project Years
Expense Item 1 2 3 4 5 6 7 8 9 10
Salary Expense 2,695,200 2,829,960 2,971,458 3,120,031 3,276,032 3,439,834 3,611,826 3,792,417 3,982,038 4,181,140
Current Total Operational Costs
Hence, the current operational cost at this stage of the project business for one year is estimated at Birr 4,923,485
including 9.09% contingency for the year. The utility cost accounts for 4.85% while repair and maintenance take
5% of the operational cost, supplies expense covers 2.28%, miscellaneous expenses also take 7.78%, transport
expense takes 4.72%, labor cost takes 1.8% & sanitary & cleaning materials expense takes 1.41% of the total
working capital needed for the project.
Out of the total operational cost of the project salary and wage expense covers 54.74% in addition to that insurance
expense accounts for 8.33% of the working capital.
Description Annual W.C %age Share
Utility Exp. 238,800.00 4.85%
Supplies Exp. 112,500.00 2.28%
Insurance Exp. 409,922.16 8.33%
Repair & Main. Exp. 245,953.29 5.00%
Transport Expense 232,500.00 4.72%
Wage/Labor Exp 88,500.00 1.80%
Sanitary Mat. Exp 69,600.00 1.41%
Salary Exp. 2,695,200.00 54.74%

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 Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Misc. Exp. 382,920.00 7.78%

Contingency 447,589.55 9.09%
Operational Cost 4,923,485.00 100%
Projected Total Cost Table
Project Year
Cost Items 1 2 3 4 5 6 7 8 9 10
Utility Exp. 238,800 248,352 258,286 268,618 279,362 290,537 302,158 314,245 326,814 339,887
Supplies Exp. 112,500 117,000 121,680 126,547 131,609 136,873 142,348 148,042 153,964 160,123
Insurance Exp. 409,922.16 409,922.16 409,922.16 409,922.16 409,922.16 409,922.16 409,922.16 409,922.16 409,922.16 409,922.16
Repair & Main. Exp. 245,953.29 245,953.29 245,953.29 245,953.29 245,953.29 491,906.59 491,906.59 491,906.59 491,906.59 491,906.59
Transport Expense 232,500.00 241,800.00 251,472.00 261,530.88 271,992.12 282,871.80 294,186.67 305,954.14 318,192.30 330,920.00
Wage/Labor Exp 88,500.00 92,040.00 95,721.60 99,550.46 103,532.48 107,673.78 111,980.73 116,459.96 121,118.36 125,963.10
Sanitary Mat. Exp 69,600.00 72,384.00 75,279.36 78,290.53 81,422.16 84,679.04 88,066.20 91,588.85 95,252.41 99,062.50
Salary Exp. 2,695,200 2,829,960 2,971,458 3,120,031 3,276,032 3,439,834 3,611,826 3,792,417 3,982,038 4,181,140
Misc. Exp. 382,920 398,237 414,166 430,733 447,962 465,881 484,516 503,897 524,052 545,015
Contingency 447,590 465,565 484,394 504,118 524,779 571,018 593,691 617,443 642,326 668,394
Operational Costs 4,923,485 5,121,213 5,328,333 5,545,293 5,772,567 6,281,196 6,530,602 6,791,875 7,065,587 7,352,332
Depr. Exp. 5,180,140 5,180,140 5,180,140 5,180,140 5,180,140 3,738,915 3,738,915 3,738,915 3,738,915 3,738,915
Bank Interest Exp 6,474,005 6,168,293 5,808,144 5,383,863 4,884,032 4,295,196 3,601,508 2,784,296 1,821,565 687,400
Non-oper. Costs 11,654,145 11,348,434 10,988,284 10,564,004 10,064,172 8,034,112 7,340,423 6,523,211 5,560,480 4,426,315
Total Cost 16,577,630 16,469,647 16,316,617 16,109,297 15,836,739 14,315,308 13,871,025 13,315,087 12,626,067 11,778,647
Determination of Working Capital Requirement
From the total investment cost of 101,222,913.74; 16.65% will be utilized for working capital requirement of the
project including its contingencies. The working capital can be used for one year from where the project
commences its operation at full capacity.
Using its full capacity the multi-use commercial building project will incur additional working capital expenses
presented below so as to render its service with better quality and quantity so that the annual income of the project
will also get higher for the projected years.
The requirement of the new working capital determination for the business is presented as follows:
Description Annual W.C %age Share
Utility Exp. 238,800.00 1.41%
Supplies Exp. 112,500.00 0.67%
Insurance Exp. 409,922.16 2.42%
Salary Exp. 2,695,200.00 15.93%
Repair & Main. Exp. 245,953.29 1.45%
Transport Exp. 232,500.00 1.37%
Land Lease Fees 155,000.00 0.92%
Wage/Labor Exp. 88,500.00 0.52%
Professional Service Fees 30,000.00 0.18%
Cleaning Materials Exp. 69,600.00 0.41%
Misc. Exp. 382,920.00 2.26%
Bank Interest 6,474,005.01 38.27%
Purchase of Goods to be Sold (F&B) 2,946,234.38 17.42%
Purchase of Other Current Assets 1,150,000.00 6.80%
Contingency (10% of W.C) 1,685,089.64 9.96%
Total Working Capital Required 16,916,224.47 100%

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Projected Income Statement of the Project

Bekur Trading Plc
Forecasted Profit & Loss Statement of the Project (in Birr)
For the Year Ended XXXX
Description Project Years
1 2 3 4 5 6 7 8 9 10
Bank Rent
Income 2,277,000 2,277,000 2,390,850 2,390,850 2,510,393 2,510,393 2,635,912 2,635,912 2,767,708 2,767,708
Other Rent
Income 930,000 930,000 976,500 976,500 1,025,325 1,025,325 1,076,591 1,076,591 1,130,421 1,130,421
Bar & Restaurant 4,713,975 6,464,880 8,909,413 9,899,348 10,394,315 10,394,315 10,914,031 10,914,031 11,459,732 11,459,732
Deluxe Rooms 3,449,250 3,942,000 4,656,488 5,173,875 5,432,569 5,432,569 5,704,197 5,704,197 5,989,407 5,989,407
Standard Rooms 5,978,700 6,832,800 8,071,245 8,968,050 9,416,453 9,416,453 9,887,275 9,887,275 10,381,639 10,381,639
Other Income 1,885,590 3,232,440 5,091,093 5,656,770 5,939,609 5,939,609 6,236,589 6,236,589 6,548,418 6,548,418
Gross Income 19,234,515 23,679,120 30,095,588 33,065,393 34,718,662 34,718,662 36,454,595 36,454,595 38,277,325 38,277,325
Cost of Goods
Sold 2,356,988 3,232,440 4,454,706 4,949,674 5,197,157 5,197,157 5,457,015 5,457,015 5,729,866 5,729,866
Operational costs 4,923,485 5,121,213 5,328,333 5,545,293 5,772,567 6,281,196 6,530,602 6,791,875 7,065,587 7,352,332
Gross Profit 11,954,043 15,325,467 20,312,549 22,570,425 23,748,938 23,240,309 24,466,978 24,205,705 25,481,872 25,195,127
Depreciation Exp. 5,180,140 5,180,140 5,180,140 5,180,140 5,180,140 3,738,915 3,738,915 3,738,915 3,738,915 3,738,915
Interest Payment 6,474,005 6,168,293 5,808,144 5,383,863 4,884,032 4,295,196 3,601,508 2,784,296 1,821,565 687,400
Non-operational
costs 11,654,145 11,348,434 10,988,284 10,564,004 10,064,172 8,034,112 7,340,423 6,523,211 5,560,480 4,426,315
Profit Before
Tax 299,897 3,977,033 9,324,265 12,006,422 13,684,765 15,206,197 17,126,555 17,682,493 19,921,392 20,768,811
Less: Profit Tax 89,969 1,193,110 2,797,280 3,601,926 4,105,430 4,561,859 5,137,966 5,304,748 5,976,418 6,230,643
Net Profit 209,928 2,783,923 6,526,986 8,404,495 9,579,336 10,644,338 11,988,588 12,377,745 13,944,975 14,538,168

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Projected Cash Flow Statement

This study applies a decomposition approach of projection of cash inflows and outflows of Bekur Trading Plc.
Cash flows rather than profits are used in financial analysis for the following three reasons.
 Cash is what ultimately counts; profits are only a guide to cash availability: they cannot actually be spent.
 Profit measurement is subjective, the time period on which income and expenses are recorded, and so on, are
a matter of judgment.
 Cash is used to pay the term loans and owners equity, owners equity are the ultimate method of transferring
wealth to the project holders as a dividend at the time of official declaration of the members.

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 Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Projected Cash Flow Statement:

Bekur Trading Plc
Forecasted Cash Flow Statement of the Project (in Birr)
Description Project Years
0 1 2 3 4 5 6 7 8 9 10
Cash Inflow
Beg. Cash 61,222,914 16,850,896 18,629,893 22,113,309 28,225,572 35,084,272 41,798,146 46,561,606 50,629,703 52,604,496 52,950,751
Bank loan 40,000,000 - - - - - - - - - -
Bank Rent Income - 2,277,000 2,277,000 2,390,850 2,390,850 2,510,393 2,510,393 2,635,912 2,635,912 2,767,708 2,767,708
Other Rent Income - 930,000 930,000 976,500 976,500 1,025,325 1,025,325 1,076,591 1,076,591 1,130,421 1,130,421
Bar & Restaurant - 4,713,975 6,464,880 8,909,413 9,899,348 10,394,315 10,394,315 10,914,031 10,914,031 11,459,732 11,459,732
Deluxe Rooms - 3,449,250 3,942,000 4,656,488 5,173,875 5,432,569 5,432,569 5,704,197 5,704,197 5,989,407 5,989,407
Standard Rooms - 5,978,700 6,832,800 8,071,245 8,968,050 9,416,453 9,416,453 9,887,275 9,887,275 10,381,639 10,381,639
Other Income - 1,885,590 3,232,440 5,091,093 5,656,770 5,939,609 5,939,609 6,236,589 6,236,589 6,548,418 6,548,418
Total Inflow 101,222,914 36,085,411 42,309,013 52,208,898 61,290,965 69,802,934 76,516,808 83,016,201 87,084,299 90,881,821 91,228,076
Cash Outflow
Fixed Inv. 81,984,431 - - - - - - - - - -
Other Outflows - 1,150,000 1,495,000 1,943,500 2,526,550 3,284,515 4,269,870 5,550,830 7,216,079 9,380,903 12,195,174
Pre-oper. Costs 2,387,586 - - - - - - - - - -
Purchase - 2,946,234 4,040,550 5,568,383 6,187,092 6,496,447 6,496,447 6,821,269 6,821,269 7,162,333 7,162,333
Operating Expense - 4,923,485 5,121,213 5,328,333 5,545,293 5,772,567 6,281,196 6,530,602 6,791,875 7,065,587 7,352,332
Bank Repmt - 8,190,830 8,190,830 8,190,830 8,190,830 8,190,830 8,190,830 8,190,830 8,190,830 8,190,830 8,190,830
Land Lease Pmts - 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000
Tax Pmt - 89,969 1,193,110 2,797,280 3,601,926 4,105,430 4,561,859 5,137,966 5,304,748 5,976,418 6,230,643
Total Outflow 84,372,017 17,455,519 20,195,703 23,983,325 26,206,692 28,004,789 29,955,202 32,386,498 34,479,802 37,931,070 41,286,313
Balance 16,850,896 18,629,893 22,113,309 28,225,572 35,084,272 41,798,146 46,561,606 50,629,703 52,604,496 52,950,751 49,941,763
Projected Depreciation & Amortization Schedule
Bekur Trading Plc
Depreciation & Amortization Expense Schedule
Rate Depreciation Project Years
Description Original Value % Amount 1 2 3 4 5 6-10 Years
Mach., Furn. & Eqpmts 7,206,126.00 0.2 1,441,225.20 1,441,225.20 1,441,225.20 1,441,225.20 1,441,225.20 1,441,225.20 0
Buildings 74,778,305.36 0.05 3,738,915.27 3,738,915.27 3,738,915.27 3,738,915.27 3,738,915.27 3,738,915.27 3,738,915.27
Total 81,984,431.36 5,180,140.47 5,180,140.47 5,180,140.47 5,180,140.47 5,180,140.47 5,180,140.47 3,738,915.27
Projected Balance Sheet of the Project

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 Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Bekur Trading Plc

Forecasted Balance Sheet of the Project (in Birr)
PROJECT YEARS
DESCRIPTION 0 1 2 3 4 5 6 7 8 9 10
ASSETS
CURRENT ASSETS
Cash 16,850,896 18,629,893 22,113,309 28,225,572 35,084,272 41,798,146 46,561,606 50,629,703 52,604,496 52,950,751 49,941,763
Other Current Assets 0 1,150,000 1,495,000 1,943,500 2,526,550 3,284,515 4,269,870 5,550,830 7,216,079 9,380,903 12,195,174
Inventory 0 589,247 808,110 1,113,677 1,237,418 1,299,289 1,299,289 1,364,254 1,364,254 1,432,467 1,432,467
Total Current
Assets 16,850,896 20,369,140 24,416,419 31,282,749 38,848,241 46,381,950 52,130,765 57,544,787 61,184,830 63,764,121 63,569,404
FIXED ASSETS
Bldgs & Civil Work 74,778,305 74,778,305 74,778,305 74,778,305 74,778,305 74,778,305 74,778,305 74,778,305 74,778,305 74,778,305 74,778,305
Mach., Furn. &
Eqpmts 7,206,126 7,206,126 7,206,126 7,206,126 7,206,126 7,206,126 0 0 0 0 0
Acc. Depr.- Bldg 0 -3,738,915 -7,477,831 -11,216,746 -14,955,661 -18,694,576 -22,433,492 -26,172,407 -29,911,322 -33,650,237 -37,389,153
Acc. Dep. - Mac,
Fur. & Eqpmt. 0 -1,441,225 -2,882,450 -4,323,676 -5,764,901 -7,206,126 0 0 0 0 0
Total Fixed Assets 81,984,431 76,804,291 71,624,150 66,444,010 61,263,869 56,083,729 52,344,814 48,605,898 44,866,983 41,128,068 37,389,153
Total Assets 98,835,328 97,173,430 96,040,570 97,726,759 100,112,110 102,465,679 104,475,579 106,150,686 106,051,813 104,892,189 100,958,557
LIABILITIES
Bank Loan 40,000,000 38,283,175 36,260,638 33,877,951 31,070,984 27,764,186 23,868,552 19,279,230 13,872,696 7,503,430.05 0.00
Tax Payable 0 89,969 1,193,110 2,797,280 3,601,926 4,105,430 4,561,859 5,137,966 5,304,748 5,976,418 6,230,643
Total Liabilities 40,000,000 38,373,144 37,453,748 36,675,231 34,672,910 31,869,615 28,430,411 24,417,196 19,177,443 13,479,848 6,230,643
CAPITAL
Owner's Equity 58,835,328 58,590,359 55,802,899 54,524,543 57,034,705 61,016,728 65,400,830 69,744,902 74,496,624 77,467,366 80,189,745
Current Year Profit 0 209,928 2,783,923 6,526,986 8,404,495 9,579,336 10,644,338 11,988,588 12,377,745 13,944,975 14,538,168
Total Capital 58,835,328 58,800,287 58,586,822 61,051,528 65,439,200 70,596,064 76,045,168 81,733,490 86,874,369 91,412,341 94,727,913
Total Liab + Cap 98,835,328 97,173,430 96,040,570 97,726,759 100,112,110 102,465,679 104,475,579 106,150,686 106,051,813 104,892,189 100,958,557

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 Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

UNIT TEN
Financial Evaluation
Measure of Project Worthiness
Net Present Value (NPV): Net Present Value (NPV) and Benefit ratio (BCR) computation at 12% discount rate
Investment Operational Discoun Present Discount
Year Capital Cost t Factor Value Gross Profit Factor Present Value
0 101,222,913.74 101,222,913.74 1.00 - - 1.00 -
1 16,577,630.47 0.880 14,588,314.81 16,877,527.50 0.880 14,852,224.20
2 16,469,646.69 0.774 12,754,094.39 20,446,680.00 0.774 15,833,908.99
3 16,316,616.85 0.681 11,119,317.52 25,640,881.88 0.681 17,473,543.05
4 16,109,297.14 0.600 9,660,670.75 28,115,718.75 0.600 16,860,866.08
5 15,836,739.33 0.528 8,357,552.80 29,521,504.69 0.528 15,579,440.26
6 14,315,307.86 0.464 6,648,087.47 29,521,504.69 0.464 13,709,907.42
7 13,871,025.19 0.409 5,668,749.49 30,997,579.92 0.409 12,667,954.46
8 13,315,086.88 0.360 4,788,564.94 30,997,579.92 0.360 11,147,799.93
9 12,626,066.62 0.316 3,995,877.13 32,547,458.92 0.316 10,300,567.13
10 11,778,647.46 0.279 3,280,364.81 32,547,458.92 0.279 9,064,499.08
G.Tota
l 101,222,913.74 248,438,978.21 6.29 80,861,594.12 277,213,895.18 6.29 137,490,710.60
NPV = Net Present value of Gross Profit – Net Present value of Operational Cost
= 137,490,710.60 – 80,861,594.12
= 56,629,116.47
The net present value is greater than zero. Therefore, this multi-use commercial building project is acceptable and
viable. So its implementation will provide good benefit for the promoter.
Benefit-Cost Ratio (BCR)
BCR = Net Present Value of Gross Profit
Net Present Value of Operational Cost
= 137,490,710.60
80,861,594.12
= 1.70
The ratio is greater than one. This means that the project promoter will recover the investment and it is profitable.
Profitability
Based on the projected profit and loss statement, the project will generate a profit throughout its operation life.
Annual net profit after tax will be Birr 209,928 at the first year of its operation and at the end of the project year it
will have a profit of birr 14.5 million.
Liquidity
The cash flow projection also shows an incremental cumulative cash balance from Birr 18.6 million of the first
project year to Birr 49.9 million of the last projection period implying that the project will not face liquidity
constraint to finance its operational costs and at the same time its debt obligation.
Ratios
In financial analysis financial ratios and efficiency ratios are used as an index or yardstick for evaluating the
financial position of a firm. It is also an indicator for the strength and weakness of the firm or a project. Using the
year-end balance sheet figures and other relevant data, the most important ratios such as return on sales which is
computed by dividing net income by revenue, return on assets (operating income divided by assets), return on
equity (net profit divided by equity) and return on total investment (net profit plus interest divided by total
investment) has been carried out over the period of the project life and all the results are found to be satisfactory.
Acid Test Ratios: Is a strength indicator that determines whether a firm has enough short-term assets to cover its
immediate liabilities without selling inventory. The acid-test ratio is far more strenuous than the working capital
ratio, primarily because the working capital ratio allows for the inclusion of inventory assets. As per the

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Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

determination of this ratio it shows that the project has an acid test ratio of 0.49 at the beginning of the project year
and 8.02 at the end of its projected years.
Debt Ratio: A financial ratio that measures the extent of a company’s or consumer’s leverage. The debt ratio is
defined as the ratio of total debt to total assets, expressed in percentage, and can be interpreted as the proportion of
a company’s assets that are financed by debt.
The higher this ratio, the more leveraged the company and the greater its financial risk. As per this ratio indicates
that at the end of first year the projects debt ratio shows 0.39 and then will decline as long as the loan is paid
regularly, finally at the end of its project life the debt ratio will become 0.00.
Asset Turnover Ratio: The amount of sales or revenues generated per birr of assets. The Asset Turnover ratio is
an indicator of the efficiency with which a company is deploying its assets.
Generally speaking, the higher the ratio, the better it is, since it implies the company is generating more revenues
per birr of assets. At the first the project will record a 0.20 asset turnover ratio and finally will reach 0.38 at the end
of its project life.
Gross Profit Margin: A financial metric used to assess a firm's financial health by revealing the proportion of
money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source
for paying additional expenses and future savings. This study proves that the project will amount 0.88 gross profit
margins at the beginning and 0.85 at the end of its project life.
Return on Assets/Return on Investment: An indicator of how profitable a company is relative to its total assets.
ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by
dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is
referred to as "Return on Investment". The project reaches 0.20 percent of Return on Asset/Investment at the
beginning and finally will reach 0.38 percent of Return on Assets/Investments at the end of its project life.
Break-even Analysis: The break-even analysis establishes a relationship between operation costs and revenues. It
indicates the level at which costs and revenue are in equilibrium. To this end, the break-even point of the
project including cost of finance when it starts to operate at full capacity is estimated by using income statement
projection.
BE = Fixed Cost = 6.86%
Sales – Variable Cost
Payback Period
The payback period, also called pay–off period is defined as the period required recovering the original investment
outlay through the accumulated net cash flows earned by the project. Accordingly, based on the projected cash
flow it is estimated that the project’s initial investment will be fully recovered within its project life time.
Economic Benefits
The project can create employment benefit for 59 permanent employees at the time of operation and more than 30
temporary laborers under the construction period.
In addition to supply of the domestic needs of standardized multi-purpose commercial building & guest house
service and narrow the gap, the project will generate birr 38,999,349.00 in terms of profit tax revenue for the
Government within the projected years of time. Moreover, the Regional Government can collect Employment
Income Tax and Sales Tax Revenue.
The financing bank will also generate an interest income of birr 41,908,302.80 within the projected years.

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UNIT ELEVEN
Conclusions & Recommendations
Conclusions of Bekur Trading Plc business project proposal can be assessed in various ways, including:
Market Feasibility: the facility’s ability to attract and support levels of event activity and patronization those are
consistent with or in excess of industry standards.
Financial Feasibility: the ability of the facility to “break-even” or generate an operating profit focusing only on
direct facility-related operating revenues and expenses.
Economic Spending: the facility’s ability to generate new spending activity in the local community (i.e., direct
and indirect spending that is attributable to out-of-town visitors that would not otherwise occur in the local area).
Tax Generation: the ability of the facility to generate new tax revenue for the local area (i.e., tax revenue resulting
from direct, indirect and induced spending that is attributable to out-of-town visitors that would not otherwise
occur in the local area).
Costs/Benefits/Return on Investment: the facility’s ability to generate new revenues (i.e., from taxes, operating
income and ancillary facility related revenues, etc.) in excess of quantifiable facility-related costs (i.e., construction
costs, operating costs, marketing costs, public sector contribution, etc.).
Intangible Benefits/Public Good: the ability of the facility to represent an important resource for the local
community, regardless of financial or economic concerns. These types of benefits add to the local community’s
“quality of life” in the same way that libraries, museums and recreational parks do, without consideration of the
economic impacts that the facility might generate.
Therefore, since the service sector in Ethiopia is in a low level progress, growth and improvement of the service
sector can substantially contribute to the economic development at National, Regional and Family level. The
promoter believes that, the project will contribute its own part to the modern multi-use commercial building &
guest house business center trading system of the town as well as will confirm sustainability of the firm’s growth
and development.
By investment in advanced technologies, standardized machineries and equipments and by implementing codes of
conducts of the town and regional government more added values can be generated to the towns marketing system.
As shown in the above analysis, the project will pay back its debt equity within ten years as per the scheduled time
table. Create a job opportunity for not less than 59 permanent residents of Dukem town. Contribute to the
government significant revenue in the form of income tax and VAT.
Therefore, the project is beneficial both for the owner, residents of Dukem town, the town administration and the
regional government as a whole.
Hence this study believes and recommends that financing the project of Bekur Trading Plc and replying the
requests of the promoter has a great impact for the development of the town and will have a direct and indirect
positive effect on the project owner’s wealth, the development and renaissance of the region and the country as a
whole.
The bank will also be profitable from the loan it injects to this project by generating an interest of 41,908,302.80
within the project loan period.
 This study believes that, Bekur Trading Plc’s commercial building & guest house business center building
will have its own part to the modern plus standardized commercial services in Dukem town.
 The financial analysis confirms sustainability of the firm’s growth and development.
 By investment in customary multi-use commercial building & guest house buildings and by implementing
codes of conducts of the region and the town, more added values can be generated.
 Loan should be obtained in order to manage the cash flow during the construction period. The loan would
cover only 39.52% of the project value and therefore loan-finance request from the project owners shall be
presented to the bank on time.
 Ethiopian Customs Authority should reply to the request of the promoters on time and respond to the request
of the promoter to allow duty free privileges as per the requirement.
 The Investment agency of the town should also give a hand to the project by renewing the Investment license
and paves the way to facilitate duty free privileges to the promoters on time.

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 The strong management capacity is one of the main aspects to accelerate the process of acting according to
business plan indicators.
 In order to increase loyalty of employees and other stakeholders towards the projects aim and goal, the
communication flow shall be strengthened. Loyalty and membership feeling within the stakeholders is
important aspects to increase accountability and responsibility of employees.
As a result this study believes that financing this multi-purpose commercial building & guest house business will
have a direct and indirect positive effect on Bekur Trading Plc’s wealth, the residents lived in Dukem town, other
stakeholders and yet the project will have a great impact to the development and renaissance of the country as a
whole.

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 Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

Furniture’s, Fixtures, Equipments & Machineries

Sr. Description UoM Qty Unit Price Total Price Total Price
No. (Birr) (Birr) (USD)
Bed Rooms Furniture & Equipment's
1 Bed sets - 2 by 0.90m (for double bed rooms) Pcs 10 18,650.00 186,500.00 3,518.87
2 Bed -2*1.90 (for 20 deluxe rooms) Pcs 26 11,500.00 299,000.00 5,641.51
3 Bed-1.2*1.90 for staffs Pcs 4 8,500.00 34,000.00 641.51
4 Bed side armoires-wood with 2 chest drawers Pcs 36 4,650.00 167,400.00 3,158.49
5 Wall mirror (1x 1.5mt) Pcs 36 2,385.00 85,860.00 1,620.00
6 Color TV 21" & antenna Pcs 36 10,640.00 383,040.00 7,227.17
7 Digital satellite dish with all accessories + DSTv Set 1 15,000.00 15,000.00 283.02
8 Sofa- single seat upholstery 2 for each room Pcs 36 5,245.00 188,820.00 3,562.64
9 Coffee table- round glass top for deluxe rooms Pcs 26 2,980.00 77,480.00 1,461.89
10 Chair- wooden Pcs 36 2,460.00 88,560.00 1,670.94
11 Writing Table- wooden with drawers Pcs 36 2,950.00 106,200.00 2,003.77
12 Rack Cabinet Pcs 1 6,850.00 6,850.00 129.25
13 Wardrobe – wooden built-in with partitions Pcs 36 7,740.00 278,640.00 5,257.36
14 Telephone line & Accessories Set 36 2,650.00 95,400.00 1,800.00
15 Tele Shower Pcs 36 2,100.00 75,600.00 1,426.42
16 Toilet Seat with Wash Pcs 36 12,500.00 450,000.00 8,490.57
17 Towel Handle Pcs 40 1,400.00 56,000.00 1,056.60
18 Soft Handle Pcs 40 850.00 34,000.00 641.51
19 Soap Handle Pcs 40 620.00 24,800.00 467.92
20 Shattaff Pcs 40 458.00 18,320.00 345.66
21 Center Piece for Toilet Pcs 40 380.00 15,200.00 286.79
22 Lighting Set for Rooms Pcs 40 4,500.00 180,000.00 3,396.23
23 Sockets Pcs 150 280.00 42,000.00 792.45
24 Switches Pcs 150 250.00 37,500.00 707.55
Led Strip Light Mete 200 450.00 90,000.00 1,698.11
25 r
26 Carpet for Rooms Set 40 2,420.00 96,800.00 1,826.42
27 Mini Refrigerator for Rooms Pcs 10 7,500.00 75,000.00 1,415.09
28 Alarm Clock Pcs 36 1,600.00 57,600.00 1,086.79
29 Wall watch Pcs 36 1,535.00 55,260.00 1,042.64
Laundry Center
1 Laundry center - comprising of Washing Set 1 119,440.00 119,440.00 2,253.58
machines, drying machine, squeezing machine,
Ironing (pressing) machines, steam drying
machines electrical hydro-extractor and sewing
machine. 30kg.
2 Wall attached shelf Pcs 4 8,300.00 33,200.00 626.42
3 Chair- wooden Pcs 4 3,760.00 15,040.00 283.77
4 Table Pcs 2 5,150.00 10,300.00 194.34
5 File Cabinet Pcs 1 7,505.00 7,505.00 141.60
6 Cub Board Pcs 2 14,658.00 29,316.00 553.13
Office, Reception & Waiting Areas
1 Cannon Ir2420 photocopy machine Pcs 1 65,000.00 65,000.00 1,226.42
2 Binding machine Pcs 1 6,500.00 6,500.00 122.64
3 Laminating machine Pcs 1 5,800.00 5,800.00 109.43

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4 Cash safe box Pcs 2 14,000.00 28,000.00 528.30

5 Chair with arm seat Pcs 4 2,760.00 11,040.00 208.30
6 Sofa Seat for Reception Pcs 2 24,000.00 48,000.00 905.66
7 Metallic storage cabinet, slide Pcs 1 7,500.00 7,500.00 141.51
8 Brand Desktop Computer Pcs 3 11,000.00 33,000.00 622.64
9 Laptop Computers Pcs 2 21,000.00 42,000.00 792.45
10 Laser jet printer Pcs 1 20,000.00 20,000.00 377.36
11 Fax machine (with scanner) Pcs 1 24,100.00 24,100.00 454.72
12 Carpet, woolen strip for Reception Set 3 6,500.00 19,500.00 367.92
13 Window curtain, Blind vertical fabric 1st grade Set 2 21,500.00 43,000.00 811.32
14 Tables Pcs 4 6,150.00 24,600.00 464.15
15 TV 85 inch 4k uhd with stand for reception Pcs 1 70,000.00 70,000.00 1,320.75
16 Telephone with its Accessories Set 3 1,650.00 4,950.00 93.40
17 File Cabinet Pcs 2 7,505.00 15,010.00 283.21
18 Balcony Pcs 2 23,700.00 47,400.00 894.34
19 Shelf attached with wall Pcs 1 16,740.00 16,740.00 315.85
20 Receptionist Swivel chair Pcs 3 11,500.00 34,500.00 650.94
21 Coat Hunger Pcs 2 3,200.00 6,400.00 120.75
22 Traveler Equipments for Guests Luggage Pcs 2 6,700.00 13,400.00 252.83
Other Furniture & Equipment's
1 Cabinet for coffee, tea cups, spoons etc Pcs 1 25,500.00 25,500.00 481.13
2 Sink with two bay for washing tea and coffee Pcs 3 3,900.00 11,700.00 220.75
cups, draft glasses, water glasses etc
3 Steel legged adjustable height chairs around the Pcs 15 3,055.00 45,825.00 864.62
balcony
4 Plastic chair Pcs 150 1,150.00 172,500.00 3,254.72
5 Oval shaped plastic table Pcs 50 1,510.00 75,500.00 1,424.53
6 Presidential desk (75x32x100cm) Pcs 1 17,000.00 17,000.00 320.75
7 Law back swivel chair Pcs 3 7,500.00 22,500.00 424.53
8 Laminated conference table Pcs 1 21,500.00 21,500.00 405.66
9 Guest chair with arm seat Pcs 7 3,350.00 23,450.00 442.45
10 Sofa guest chair with arm seat Pcs 3 22,500.00 67,500.00 1,273.58
11 Oval coffee table Pcs 2 4,500.00 9,000.00 169.81
12 Open shelf and sliding door office cabinet Pcs 2 6,800.00 13,600.00 256.60
13 Open book shelf (151x78x35) Pcs 1 6,900.00 6,900.00 130.19
14 Wooden filling cabinet, four drawers Pcs 2 12,800.00 25,600.00 483.02
15 Executive sec. Desk and chair Set 1 11,600.00 11,600.00 218.87
16 Arc joint table (75x75) Pcs 1 12,500.00 12,500.00 235.85
17 Computer table (90x75x75) Pcs 4 6,800.00 27,200.00 513.21
18 Office Table Pcs 4 10,500.00 42,000.00 792.45
19 Group Table Pcs 2 16,750.00 33,500.00 632.08
20 Mobile drawer Pcs 2 3,290.00 6,580.00 124.15
21 Swivel chair for staffs Pcs 3 4,500.00 13,500.00 254.72
22 Office desk (180x75) with mobile 3 drawers Pcs 2 7,100.00 14,200.00 267.92
23 Managerial chair, high back Pcs 1 16,800.00 16,800.00 316.98
24 Wooden office shelf (165x30x180) Pcs 2 8,500.00 17,000.00 320.75
25 Musical Sound System Set 1 45,000.00 45,000.00 849.06
26 Stand By Generator Set With Canopy And Pcs 1 689,000.00 689,000.00 13,000.00
Accessories (50 KVA)

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27 Water Pump Pcs 2 21,500.00 43,000.00 811.32

28 Fire Extinguisher Equipments Set 4 6,500.00 26,000.00 490.57
29 First Aid Medical Equipments Set 4 2,500.00 10,000.00 188.68
Bar & Modern Restaurant
1 Beverage shelve/ cupboard Pcs 1 23,500.00 23,500.00 443.40
2 Beverage dispenser Pcs 10 3,150.00 31,500.00 594.34
3 White wine glass Pcs 30 180.00 5,400.00 101.89
4 Red wine glass Pcs 30 180.00 5,400.00 101.89
5 Wine cooler Pcs 5 620.00 3,100.00 58.49
6 Ashtray Pcs 20 575.00 11,500.00 216.98
7 Tables- round Pcs 10 1,800.00 18,000.00 339.62
8 Restaurant Chairs Pcs 50 1,650.00 82,500.00 1,556.60
9 Sofa Seat for VIP Bar Pcs 1 85,000.00 85,000.00 1,603.77
10 TV set for Bar & Restaurant Pcs 2 31,000.00 62,000.00 1,169.81
11 Side service tables Pcs 5 4,450.00 22,250.00 419.81
12 Service trolleys Pcs 2 6,500.00 13,000.00 245.28
13 Cupboards Pcs 2 23,600.00 47,200.00 890.57
14 Main dish Plate with rim- 20 cm Pcs 100 155.00 15,500.00 292.45
15 Soup cup with saucer Pcs 30 130.00 3,900.00 73.58
16 Salad plate Pcs 70 150.00 10,500.00 198.11
17 Bread plate Pcs 70 165.00 11,550.00 217.92
18 Salt & pepper – set Pcs 20 140.00 2,800.00 52.83
19 Butter holder/dish Pcs 20 180.00 3,600.00 67.92
20 Coffee cup with saucer Pcs 20 135.00 2,700.00 50.94
21 Tea cup with saucer Pcs 50 135.00 6,750.00 127.36
22 Soup spoon Pcs 50 124.00 6,200.00 116.98
23 Main dish knife Pcs 50 350.00 17,500.00 330.19
24 Forks Pcs 50 24.00 1,200.00 22.64
25 Salad knife Pcs 50 280.00 14,000.00 264.15
26 Dessert bowl Pcs 50 420.00 21,000.00 396.23
27 Water glass Pcs 50 139.00 6,950.00 131.13
28 Champagne glass Pcs 30 260.00 7,800.00 147.17
29 Liqueur glass Pcs 50 170.00 8,500.00 160.38
30 Cocktail glass Pcs 30 320.00 9,600.00 181.13
31 Beer glass Pcs 50 160.00 8,000.00 150.94
32 Wine cooler with stand Pcs 20 440.00 8,800.00 166.04
33 Wine storage shelf Pcs 1 12,600.00 12,600.00 237.74
34 Bar stool (counter chairs) Pcs 8 3,300.00 26,400.00 498.11
35 Mixer & Juicer Pcs 1 5,500.00 5,500.00 103.77
36 Sugar dispenser size 6 Pcs 15 149.00 2,235.00 42.17
37 Juice glass Pcs 30 170.00 5,100.00 96.23
38 Tea spoon Pcs 50 35.00 1,750.00 33.02
39 Coffee spoon Pcs 50 35.00 1,750.00 33.02
40 Oil & vinegar holder Pcs 10 255.00 2,550.00 48.11
41 Ice bucket Pcs 1 4,500.00 4,500.00 84.91
42 Hand Dryer Machine Pcs 4 4,850.00 19,400.00 366.04
43 Refrigerator, 240 ltr Pcs 2 25,000.00 50,000.00 943.40
44 Deepfreeze 500lt Pcs 1 35,000.00 35,000.00 660.38
Coffee Service Materials

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1 Coffee shop counter unit- custom built Pcs 1 10,950.00 10,950.00 206.60
2 Long-leg counter stool Pcs 5 2,250.00 11,250.00 212.26
3 Chair with coffee table (set) Pcs 4 3,650.00 14,600.00 275.47
4 Coffee cup with saucer Pcs 25 145.00 3,625.00 68.40
5 Coffee table- round glass top Pcs 2 4,150.00 8,300.00 156.60
6 Tea cup with saucer Pcs 20 145.00 2,900.00 54.72
7 Sugar holder (for outlets) Pcs 12 155.00 1,860.00 35.09
Kitchen
1 Electrical & gas grill with six burners Pcs 1 34,000.00 34,000.00 641.51
2 Sink with two bay(for the kitchen) Pcs 2 3,855.00 7,710.00 145.47
3 Kitchen working table with drawers, 3m x90cm Pcs 3 8,500.00 25,500.00 481.13
4 Kitchen cabinet Set 1 39,000.00 39,000.00 735.85
5 Cabinet for coffee, tea cups, spoons etc Pcs 2 16,480.00 32,960.00 621.89
6 Sink with two bay for washing tea and coffee Pcs 1 3,600.00 3,600.00 67.92
cups, draft glasses, water glasses etc
7 Gas burner with cylinder, 12kg,two gas and two Pcs 1 22,000.00 22,000.00 415.09
electric stoves
8 Electric Operated Stove/Oven Pcs 1 28,400.00 28,400.00 535.85
9 Frying pans Pcs 1 16,000.00 16,000.00 301.89
10 Dishes with two handle Pcs 8 3,600.00 28,800.00 543.40
11 Pressure cooker (1 up to5 bars) Pcs 2 8,500.00 17,000.00 320.75
12 Medical Equipment, tools, instruments and Set 1 4,500.00 4,500.00 84.91
furniture for the Project
13 Microwave oven-20nos Pcs 1 25,000.00 25,000.00 471.70
14 Deep fryer Pcs 1 15,000.00 15,000.00 283.02
15 Mixer Pcs 1 4,500.00 4,500.00 84.91
16 Hot – water bath ( Bain maire) Pcs 2 4,000.00 8,000.00 150.94
17 Freezer Pcs 1 5,800.00 5,800.00 109.43
18 Stock pot(50 liters) Pcs 1 4,890.00 4,890.00 92.26
19 Sauce pan Pcs 1 3,850.00 3,850.00 72.64
20 Sauce pot(50 liters) Pcs 1 3,400.00 3,400.00 64.15
21 Baking pan Pcs 1 8,850.00 8,850.00 166.98
22 Noodle-Lasagna maker Pcs 1 15,500.00 15,500.00 292.45
23 Pizza machine Pcs 1 16,100.00 16,100.00 303.77
24 Roasting pan Pcs 1 8,500.00 8,500.00 160.38
25 Scale(portion) Pcs 1 4,500.00 4,500.00 84.91
26 Measuring spoons Pcs 4 425.00 1,700.00 32.08
27 Chef’s Knife (10 in.) Pcs 5 550.00 2,750.00 51.89
28 Salad knife (6 in.) Pcs 5 385.00 1,925.00 36.32
29 Vegetable knife (2in.) Pcs 5 344.00 1,720.00 32.45
30 Boning (6in.) Pcs 2 2,800.00 5,600.00 105.66
31 Slicer knife (12in.) Pcs 5 425.00 2,125.00 40.09
32 Bucher’s knife(12in.) Pcs 5 650.00 3,250.00 61.32
33 Cleaver (4in.) Pcs 3 760.00 2,280.00 43.02
34 Vegetable peeler (set) Set 2 840.00 1,680.00 31.70
35 Cutting Board – hard rubber Pcs 3 1,140.00 3,420.00 64.53
36 Pastry wheel Pcs 1 2,200.00 2,200.00 41.51
37 Kitchen spoon ( perforated) Pcs 10 85.00 850.00 16.04
38 Kitchen spoon( solid) Pcs 10 90.00 900.00 16.98

Promoter – Bekur Trading Plc 47

 Project Proposal for Bekur Trading Plc’s Multi-Purpose Commercial Building

39 Grater (normal size) Pcs 2 750.00 1,500.00 28.30

40 Strainer Pcs 2 445.00 890.00 16.79
41 Can opener Pcs 2 390.00 780.00 14.72
42 Sink unit (900 / 1600mm) Pcs 2 3,400.00 6,800.00 128.30
43 Wall attached shelves Pcs 2 10,580.00 21,160.00 399.25
44 Hot cupboard (warmer) Pcs 1 8,750.00 8,750.00 165.09
45 Toaster Pcs 1 6,250.00 6,250.00 117.92
House Keeping Materials
1 Supplies and linen storage shelf unit Pcs 2 12,850.00 25,700.00 484.91
2 Wet and dry floor cleaning machine Pcs 6 9,100.00 54,600.00 1,030.19
3 Vacuum cleaner (upright) Pcs 4 11,600.00 46,400.00 875.47
4 Cleaning trolley Pcs 4 3,400.00 13,600.00 256.60
5 Mop trolley with squeezer Pcs 4 2,900.00 11,600.00 218.87
6 Fire extinguisher equipments Set 1 9,580.00 9,580.00 180.75
7 Cloth shelf Pcs 2 11,600.00 23,200.00 437.74
8 Ceramic and tiles cleaner machines Pcs 4 4,890.00 19,560.00 369.06
9 Buckets big size Pcs 4 5,900.00 23,600.00 445.28
10 Buckets small size Pcs 4 3,950.00 15,800.00 298.11
Security, Garden & Recreation Area
1 Water sprinklers Pcs 4 3,400.00 13,600.00 256.60
2 Gardener kit Set 1 8,000.00 8,000.00 150.94
3 Foldable Rest chair Pcs 5 3,100.00 15,500.00 292.45
Grand Total 7,206,126.00 135,964.64

Promoter – Bekur Trading Plc 48