CYPRIAN INVESTMENT COMPANY (TANZANIA)

In partnership with
MECEN IPC CO., LTD. (SOUTH KOREA)

Business plan for plastic products

manufacturing plant to be built on Plot No
72/1 Block 2, Mtoni Kijichi Ward - Temeke
Municipality, Dar es Salaam

CYPRIAN INVESTMENT COMPANY

Box 8107
Dar es Salaam

MECENIPC CO., LTD

WEBSITE: www.mecenipc.com
TEL : 82 02 557 3420
FAX: 82 02 557 3241
E-mail: mecenipc@mecenipc.com
Address: 10th Fl., Paradise Venture Tower, 708-33,
Yeoksam-dong, Gangnam-gu, Seoul, 135-080, Korea

TABLE OF CONTENTS
LIST OF TABLES.......................................................................................................................................... IV
LIST OF FIGURES........................................................................................................................................ IV
EXECUTIVE SUMMARY............................................................................................................................... V
1 INTRODUCTION.................................................................................................................................... 1
1.1 BACKGROUND....................................................................................................................................................... 1
1.2 THE TARGET PROJECT & ITS PROMOTERS....................................................................................................... 1
1.3 RATIONALE FOR THE STRATEGIC FOCUS ON POLYETHYLENE FOAM...........................................................1
1.4 VISION AND STRATEGIC PRIORITIES AND GOALS............................................................................................ 2
1.5 PROJECT LOCATION............................................................................................................................................. 3
1.6 OBJECTIVES AND SCOPE OF THE BUSINESS PLAN........................................................................................... 3
1.7 BUSINESS PLAN PREPARATION METHODOLOGY............................................................................................. 3
1.8 STRUCTURE OF THE BUSINESS PLAN................................................................................................................ 4
2 THE MARKET & MARKETING PLAN................................................................................................ 4
2.1 PRODUCTS AND SERVICES................................................................................................................................... 4
2.2 TARGET CUSTOMER GROUPS.............................................................................................................................. 5
2.3 COMPARISON OF THE ENVISAGED CYPRIAN PRODUCTS AND SERVICES WITH THOSE OF COMPETITORS
5
2.4 MARKET DEMAND............................................................................................................................................... 6
2.5 PRICING................................................................................................................................................................. 7
2.6 SALES PROJECTIONS............................................................................................................................................ 8
2.7 MARKETING.......................................................................................................................................................... 8
2.8 SUMMARY OF CYPRIAN OPPORTUNITIES AND CHALLENGES.........................................................................9
3 TECHNOLOGY AND OPERATIONS PLAN...................................................................................... 10
3.1 PE FORM UNIQUE CHARACTERISTICS............................................................................................................ 10
3.2 PE FOAM PRODUCTION PROCESS................................................................................................................... 10
3.3 FACTORY LAYOUT............................................................................................................................................. 11
3.4 FACTORY PRODUCTION.................................................................................................................................... 13
3.5 PLANTS, MACHINERIES AND EQUIPMENT...................................................................................................... 14
3.6 SUPPLY OF MACHINERY AND PROVISION OF TECHNICAL SERVICES.........................................................15
4 OWNERSHIP, MANAGEMENT AND STAFFING PLAN................................................................ 16
4.1 LEGAL FACE, OWNERSHIP STRUCTURE & PARTNERSHIP ARRANGEMENT...............................................16
4.2 ORGANISATIONAL AND MANAGEMENT STRUCTURE.................................................................................... 17
4.3 MANPOWER REQUIREMENTS AND COSTS...................................................................................................... 19
4.4 STRATEGIC PLAN............................................................................................................................................... 19
4.5 TRAINING REQUIREMENTS............................................................................................................................... 20
4.6 OPERATIONAL POLICIES AND PROCEDURES.................................................................................................. 20
4.7 REVIEW THE FACTORY'S QUALIFICATIONS AND CERTIFICATES...................................................................20
4.8 PRE-OPERATING ACTIVITIES............................................................................................................................ 21
5 FINANCIAL PLAN AND PROJECTIONS........................................................................................... 21
5.1 ASSUMPTIONS SHEET........................................................................................................................................ 21
5.1.1 Basic Assumptions...................................................................................................................................... 21
5.1.2 Revenue Drivers........................................................................................................................................... 21
5.1.3 Raw material distribution (usage)..................................................................................................... 21
5.1.4 Revenue Drivers........................................................................................................................................... 22
5.1.5 Operation Cost............................................................................................................................................. 22
5.1.6 Depreciation................................................................................................................................................. 22
5.1.7 Finance Cost.................................................................................................................................................. 22
5.2 TOTAL CAPITAL REQUIREMENT...................................................................................................................... 24
5.2.1 Land and Building...................................................................................................................................... 24
5.2.1. Buildings and Civil Infrastructure...................................................................................................... 25
 5.2.2 Vehicles........................................................................................................................................................... 25
5.2.3 Plant acquisition......................................................................................................................................... 25
5.3 FINANCING PLAN............................................................................................................................................... 25
5.3.1 Operation Expenditure............................................................................................................................. 25
5.4 PROJECTED INCOME STATEMENT................................................................................................................... 26
5.5 PROJECTED CASH FLOW STATEMENT............................................................................................................. 28
5.6 PROJECTED BALANCE SHEET........................................................................................................................... 30
5.7 PROJECT VIABILITY........................................................................................................................................... 32
5.7.1 Net Present Value....................................................................................................................................... 32
5.7.2 Internal Rate of Return............................................................................................................................ 32
5.7.3 Debt Service Coverage Ratio (DSCR).................................................................................................. 33
5.8 CONCLUSION....................................................................................................................................................... 34
6 SOCIO-ECONOMIC IMPACT.............................................................................................................. 34
7 ENVIRONMENTAL ASSESSMENT AND MANAGEMENT PLAN.................................................35
8 CONCLUSIONS AND RECOMMENDATIONS.................................................................................. 35
REFERENCES............................................................................................................................................... 37
APPENDICES............................................................................................................................................... 38
APPENDIX 1: INCOME STATEMENT "MIL." TZS..................................................................................................... 35
APPENDIX 2: BALANCE SHEET "MIL." TZS............................................................................................................ 36
APPENDIX 3: TAX PROVISION "TZS"........................................................................................................................ 37
APPENDIX 4: CASH FLOW STATEMENT "MIL." TZS............................................................................................... 38
APPENDIX 5: DEPRECIATION SCHEDULE................................................................................................................... 39
APPENDIX 6: LOAN AMORTIZATION SCHEDULE...................................................................................................... 44
APPENDIX 7: WORKING CAPITAL............................................................................................................................... 46
APPENDIX 8: PERSONNEL EXPENSES......................................................................................................................... 48
APPENDIX 9: PROJECTED REVENUE........................................................................................................................... 49
APPENDIX 10: PROJECTED OPEX.............................................................................................................................. 50
APPENDIX 11: CAPEX REQUIRED............................................................................................................................. 51
LIST OF TABLES
Table 3-1 Required plants, machineries and equipment.............................14
Table 4-1 Labour Requirements.................................................................19
Table 5-1 Planned Capacity Utilization, Unit Sales and Average Prices.......23
Table 5-2 Total Project Costs......................................................................24
Table 5-3 Project Income Statement in Millions Tshs................................27
Table 5-4 : Projected Income Statement "Mil." TZS.....................................29
Table 5-5: Summarized Profitability Results "Mil. TZS"...............................34

LIST OF FIGURES
Figure 3-1: Layout of the Workshop Plot Area...........................................12
Figure 3-2: Layout of the Factory Area......................................................12
Figure 3-3: The main machinery of the foam plant....................................13
Figure 3-4: Production Flow Vhart: Foam Plant Operation........................13
Figure 4-1: Governance and Organizational Structure...............................18
EXECUTIVE SUMMARY

(To be included in the end)

1 INTRODUCTION

1.1 Background
Cyprian Investment Company, in short Cyprian, is a private company based
in Dar es Salaam in the business of producing plastics packaging materials.
The company was incorporated under the Company Ordinance (Cap. 212) as
a limited liability company on the 4 th December, 2003 with certificate of
incorporation No 47605. Mr. Noel Nkomola Mahyenga and Dikilile James
Mahyenga own the company at 70% and 30% proportions respectively.

1.2 The Target Project & its Promoters

This Business Plan is for establishment of project to manufacture

polyethylene (PE) foam products to be marketed to packaging, construction,
insulation and other sundry sectors in Tanzania.

The project is a joint venture between Cyprian and MECENIPC Co. Ltd of
South Korea (See the agreement presented as a separate document). The
venture will introduce a wide range of cutting-edge PE Foam products.

MECENIPC has been operating in Korea for more than 29 years, growing to
be a world leading as well as one of the Korea’s largest companies in
environmental and plastic processing industry. MECENIPC is currently
developing, manufacturing and marketing goods to sectors using plastic
products. The company’s philosophy is “improving the quality of life and
preserving environmental balance.”

MECENIPC has globalized itself since founded in 1983 and maintained joint
ventures throughout the world, serving customers in Asia, Africa, the Middle
East, Europe, Central and South America. It is a Certified Quality
Management System (ISO) company. It has also received certification from
the International Certification Network (IQNet) and Korea Foundation for
Quality (KFQ), 1999.

The project will be the first of its kind in Tanzania – in the production of PE
foam products for packaging and insulation. It will use modern technology
& equipment in a friendly environment. In the joint venture, MECENIPC is
responsible for technology supply and staff training while then day-to-day
management of the project is under by Cyprian.

1.3 Rationale for the Strategic Focus on Polyethylene Foam

MECENIPC research and development has resulted in producing

polyethylene foam that has a wide range of applications in construction,
insulation and packaging sectors. This product has been considered in the
market as a revolutionary item because this can replace most of existing
materials for construction in the market. Thanks for its outstanding
characteristics and competitive prices, Polyethylene foam products have
following main advantages.

▶ Wide Range of Applications ▶ Versatile for Heating, Air conditioning,

▶ Moisture Resistant Refrigeration and Plumbing
▶ UV Resistant ▶ Light Weight
▶ Low Thermal Conductivity ▶ Environmental Friendly
▶ Easy to Install ▶ Competitive Price

Polyethylene foam business has brought good success to MECENIPC Co.,

Ltd from its overseas investment activities. The reason is that its bulky
characteristic makes importing uncompetitive, which means that the market
can be easily dominated once local production is commenced.

1.4 Vision and Strategic Priorities and Goals

Vision
The vision of the Cyprian company is to be the leading producer of quality
and creative PE plastic products in Tanzania and the Region.

Strategic Priorities
a. To carry on the business of setting–up the PE plant under the joint
venture in Tanzania to produce polyethylene foam products.
b. To carry on the business of producing and processing of all types of
plastic products covering all varieties of conversion operations by
environment friendly & up-to-date technology transferred from South
Korea partner and marketing in Tanzania.
c. Manufacturing of various types of polyethylene foam products such as
plain sheet in roll, Net Tube and Road by the forming extrusion
process.
d. Manufacturing of various types of the converted products through the
converting process such as tube forming and lamination with HDPE
film, PET metalized film or another PE foam sheet.

Strategic Goals
a. To promote the local market for PE products.
b. To increase the quality of PE products manufactured in Tanzania.
c. To reduce the country’s dependence on external sources on the
importation of PE products.
d. To encourage the growth of the PE products industry in Tanzania.
e. To create employment for Tanzanians.
f. To promote the transfer of technology in Tanzania through skill and
human resources development. Training on the use and application of
new machinery and technology will facilitate this.
g. To contribute to the country’s economy through taxes and others
levies.
h. To promote growth and expansion of the private sector.
i. To boost the export market in SADC and COMESA countries, resulting
 in increased foreign earnings.

Only a minimum 0.5 mm thickness of the plastics products will be

manufactured in the plant. And, since the polyethylene foam is recyclable,
the project is not against Tanzania’s environmental laws.

1.5 Project Location

The production facilities of the business will be located on Plot number
17/2, Block "2", Mtoni Kijichi area in Temeke municipality in Dar es Salaam
city, Certificate of Occupancy No 95,537. Suitable building and factory
infrastructures will be put in place. The roads are well maintained and
functional. The company will receive electricity from the national provider,
TANESCO. However, to avoid chances of interrupted energy supplies, the
company will own a standby generator of appropriate output capacity.

1.6 Objectives and Scope of the Business Plan

The objective of the Business Plan is to map-out the essential elements of
the of project to manufacture polyethylene (PE) foam products to be
marketed to packaging, construction, insulation and other sundry sectors in
Tanzania and to present its financial and economic viability. The specific
objectives of the Plan are:

a) To define the market, marketing, technical, operational and

organizational modalities of the project;
b) To assess the financial viability of the project - in terms of the
following profitability indicators: Net Present Value (NPV) & Internal
Rate of Return (IRR);
c) To present the project’s socio-economic benefits and environmental
potential and compliance;
d) To assess the relevance and potential of the project to Tanzania’s
economic growth and the overall subsector objectives;

1.7 Business Plan Preparation Methodology

Overall, preparation of the Business Plan employed a research and
participatory approach through which key stakeholders were extensively
consulted. The process was facilitated by a consultant and was informed by
the views of the Cyprian owners and MECENIPC Co, local government
authorities in the project areas, potential customers and various experts,
engineers, architects, cost accountants, and economists. The exercise was
supported by four major studies/exercises – market survey, engineering
assessment, site assessment and analysis and environment impact
assessment. An intensive literature review was carried out which, amongst
other things, covered relevant national policy documents. The literature
review also involved seeking out and reviewing already published
information from the Internet, industry reports and media publications. This
information was very useful to prepare a comprehensive situational analysis
of the project and enabled the business planning process to reach a well-
informed decision about the quantitative financial viability of the proposed
project. Apart from interviews, the fieldwork involved site reconnaissance to
assess the physical, geographical, environmental and engineering aspects of
the project.

1.8 Structure of the Business Plan

The business plan is presented in EIGHT chapters. The first is this
introductory chapter, which provides an introduction to the project,
objectives and scope of the business as well as the planning methodology.
The second chapter gives an overview of the market and marketing aspects.
The next four chapters (4 to 7) respectively present: technical and operations
plan; ownership, socio-economic benefits and environmental impact
assessment of the project. Lastly, Chapter 8 gives the conclusions and
recommended way forward.

2 THE MARKET & MARKETING PLAN

2.1 Products and Services

Cyprian’s products will be made mainly from PE foam. The form can be
shaped into different semi-finished products such as tubes, profiles, sheets
and blocks.

PE foam is considered to be the finest synthetic foam in the world for its
unique features and characteristics. However, PE foam production facilities
are not available in Tanzania and such no clear and elaborate market has
developed for this item. Cyprian is going to introduce PE Foam production
for the first time in Tanzania. The most convenient and easy application of
this creative item is in the industrial packaging field. PE Foam is an ideal
material for the packaging of the various kinds of instruments because of
high restoring nature and high-energy absorption. Being soft in feeling and
beautiful in appearance, it is also suitable for packaging and as materials of
high quality goods. Others field of application where PE foam products can
substitute existing other materials are in use in construction, insulation and
comforter and sundry field.

The project will aim to:

 ...Manufacture various types of polyethylene foam products such as

plain sheet in rolls, ne and, rod using extrusion foaming process.

 …Manufacture of various types of converted products - through a

converting process. The products will include tube forming and
lamination with HDPE film, PET metalized film or PE foam sheet.
 Note: a minimum of 0.5 mm material thickness will be
manufactured. Note that PE is highly recyclable.
Sheet is used for:  
  Logistics protective packaging for industrial products  
Export packaging for Fruits and horticultural
  products  
Thermal insulation, waterproofing for building roof,
  wall, floor  
  Cushioning material for various mattress  
Net is used for:  
Packaging fruits, cut flowers,
  bottles  
   
Tube is used for:  
Pipeline covering material for air-conditioners and
  the like  
Rod used for:  
  Back-up material for sealant  
             

Sectors targets with the products:

 Industrial packaging
 Construction
 AC ducting
 Insulation
 Sound proofing
 Telecommunications
 Sundry

2.2 Target Customer Groups

Cyprian aims to target a multiple customers and industrial companies in
Tanzania and in the Eastern and Central Africa regions that require high
quality packaging bags for their products as well as other uses of PE foam
products.

The main target customer groups include:

 Packaging industry: e.g. packaging of fragile glasswork, TVs, audio sets,

PCs and printers
 Industrial construction - insulation of central heating pipes.
 Building construction: Sound absorption
 Automotive industry: e.g. dashboards, door panels, consoles, boot interiors
 and handgrips.”

Cyprian will provide its service from the hub of Tanzania market, Dar es
Salaam. The demand for PE foam products is high among many of the
industrial-manufacturing firms.

2.3 Comparison of the Envisaged Cyprian Products and Services with

those of Competitors

Cyprian brand PE foam product will have a huge market advantage. It is

going to be the first PE Foam production facilities available in Tanzania. As
such it will be much able to offer competitive prices compared to the few
companies that import ready made PE foam products.

Cyprian will have a competitive advantage in Tanzania because there are

currently no PE foam products manufacturers in the area. The company will
be able concentrate and have agents in all upcountry cities to provide faster
and cheaper service to its customers due to its proximity and accessibility to
major towns, cities and roads. In addition, the company’s modern
technology will produce higher quality products, helping to elevate
manufacturing standards Tanzania.

The company through its joint venture with MECENIPC will invest
substantially to acquire the latest technology from abroad. The company is
investing further amounts to develop appropriate products suitable for
Tanzanian and the EAC and Central Africa context and for its market
development. Furthermore, its PE Foam products will be completely new
and will be the substitute for Polystyrene Foam, Poly Vinyl Foam, Cotton,
Paper, Jute, Fiberglass, etc.

2.4 Market Demand

PEs are rapidly growing and important industrial plastics. They are
categorized depending on their density. The low-density polyethylene, i.e.
polyethylene with a density of between 0.91 to 0.94 g/cm³, usually referred
to as LDPE is the main targeted by the Cyprian project. According to a
recent market study by Ceresana done in 2016 1 LDPE is mainly used in
the packaging industry with global revenues amounting to almost US$33
billion in 2013 with sales expected to grow by 1.5% p.a. until 2021.

According to Ceresana Institute:

“LDPE is most commonly used for the production of films. About 63%
of total demand stem from the production of films, with packaging
films accounting for the largest market share in this sector. Bags and
sacks as well as other films rank second and third. Other important
applications are rigid packaging and construction products. On a
1
http://www.ceresana.com/en/market-studies/packaging/ceresana-market-studies-
packaging.html
 global level, the segment construction products offer the largest
growth potential of the next few years, thanks to new investments in
infrastructure projects.”

Research indicates that Africa is a growing market place for plastics with
high demand.2 Many African countries including Tanzania have strong
economic growth rates which is rapidly increasing consumption of packaged
foods and other PE foam products:

During the past six years the use of plastics in Africa has grown by an
astounding 150%, at a compound average growth rate (CAGR) of
approximately 8.7 per cent. …. Plastics consumption per capita in Kenya, for
instance was just 10 kg in 2004 and it is expected to increase to 30 kg by
2020, which is still very low compared to many other countries in other parts
of Africa3.

In the East Africa region, one of the largest markets for plastics and packaging goods
is Tanzania. The country has been importing plastic goods and machinery from all
across the world in increasing quantities over the last five years and has emerged as
a lucrative market for plastic goods in the region. Tanzania's plastic imports include
plastics consumer items, writing instruments, rope & twines, plastics & metal
spectacle frames, strainers, laminated & non laminated packaging material, bio-
medical products, kitchenware, woven sacks & bags, pet preforms, gift & novelties &
other plastic products. (Source: http://www.africa-
business.com/features/plastics.html)

Applications for LDPE (low density polyethylene) products are strong and
growing. The envisaged Cyprian PE form products production technology
enables to produce an extensive grade slate for packaging, agricultural,
electrical cable and other applications. This technology also provides
specialty ethylene vinyl acetate products as well as medium-density grades,
which enables to choose the most-profitable markets in the Region.

With the Government of Tanzania commitment to promote industrialization,

the country is expected to become a high growth region for the packaging
industry. The demographic factors of the country also favor increased
demand - being driven by increased markets for consumer products,
burgeoning individual incomes, an expanding population of youthful
consumers and growing domestic economies

2.5 Pricing
Price is one of the most critical competitive factors in relation to the PE foam
products business. Cyprian’s decision to establish modern production
facilities will significantly allow the charging of highly competitive prices. In
addition, the company will maintain competitive prices and high quality by
putting emphasis on unique and superior product features, effective
promotion to the major plastics consuming companies, packaging
companies, building contractors and engineering and architectural design

2
http://www.africa-business.com/features/plastics.html
3 ibid
firms.

The price of PE foam is competitive but still allows making a reasonable

profit. A quick survey of the few sellers of PE foam products established the
following indicative selling prices:

Colour shading rolls

 36 "×500 grams - 4000 Tshs
 48"× 500 grams - 5000 tshs

Transparent shading rolls

 36" × 500 grams - 4500 Tshs
 48 " × 500 grams - 5500 Tshs

Black tubing
 3 "× 250   - 4000 tshs
 4" × 250  -  4000 tshs

Shank tubing
 5500 tshs

Cyprian’s pricing strategy will take consumer threshold into account. The
prices of different product ranges will be set through a process of calculating
the costs of production, estimating the benefits to consumers, and
comparing the products and prices to others that serves the similar
purposes. That said however, the project management will utilize
Competition Based Pricing – in which prices are based on the market.

2.6 Sales Projections

Cyprian will be able to produce PE foam products of up to 90 tons per

month. The company will implement a strategy of establishing firm
agreements with the customers, which in most cases will be other
companies. We expect sales to increase gradually over the first three years
as detailed in the financial projects chapter.

2.7 Marketing

The company will have dedicated staff that will undertake extensive
marketing of the company’s products. Once production starts, the company
will make effective use of the following tools as part of its marketing
operations:

 Preparation of a Strategic Marketing Plan.

 Development of effective branding tools – with the brand name being
Cyprian.
 Recruitment of a dynamic, competent and experience marketing and
 sales force.
 Having a well designed and effective website.
 Development and implementation of regular and focused promotion
campaign that will communicate with potential customers.
 Making extensive use of the word-of-mouth.
 Radio, newspaper and TV adverts.
 Train, guide and supervise the newly recruited sales personnel and
simultaneously supervise, monitor and motivate the sales forces.
 Meeting with clients.
 Searching new prospective areas of business.
 Having regular seminars with Engineers, architects, consultants and
experts in consuming companies.
 Cautiously following the activities of the new competitor and act
accordingly to defend the position of Cyprian.

2.8 Summary of Cyprian Opportunities and Challenges

Once set-up and ready for production, Cyprian will have the following set of
strengths, weaknesses, opportunities and challenges. The company will take
advantage of the strengths and opportunities to overcome the weaknesses
and challenges so as to push the company towards superior performance.

Strengths:

 Highly skilled and motivated management and staff

 Modern state of the art LPDE production technology bought from
South Korea.
 Strong partnership between Tanzania and South Korean companies
with Cyprian bringing in land and local knowledge and MECENIPC
bringing in cutting edge manufacturing technology and experience.
 Establishment of modern factory with sizable production capacity.
 Cost advantage due to local manufacturing of the PE foam products.
 Favorable access to distribution networks (the Dar es Salaam region
has an excellent road, rail and air transport system linking it to all
major towns in the country and Region).
 PE foam products are 100% environment friendly since they can be
fully recycled.
 Cyprian will initially have no direct competitor in the market place
when it comes to production of PE Foam products.

Weaknesses:

 As a new company Cyprian lacks a variety of key management tools.

These will need to be urgently developed.
 Cyprian is not an ISO Certified Company. It will need to quickly
embark on the ISO certification process.
 The company has no local and regional outlets/agents to maximize its
meeting of demand. These will need to be set-up rather quickly.
Opportunities:

 The Government of Tanzania’s plans and policies for industrialization

are quite conducive.
 There is a huge unfulfilled demand for price-competitive PE foam
products owing to in a range of industrial segments from packaging
sector, construction sector, defense, telecommunication, furniture
industry, industrial ducting, shoes, mattress sectors etc.
 Raw materials of the produced items are readily available
internationally (in South Korea and other parts).
 Assistance from various Government and other agencies like the
business council and chambers of commerce in getting information on
different potential buyers.

Challenges:

 Intensifying competition from the importers of PE foam products.

 Raw materials supply/price situation changing depending on the
changing global economic situation.
 Some industrial sub-sectors are not quite enlightened about the huge
potential and advantages of PE foam products.
 Influx of substitute products in the market place.

3 TECHNOLOGY AND OPERATIONS PLAN

3.1 PE Form Unique Characteristics

The Polyethylene (PE) is a unique material with unlimited opportunities for
us. In addition to packaging applications, PE is the raw material for many
Foam applications.

PE Foam is shock absorbing, vapor-proofing, temperature-insulating, strong

chemical resistant, static-current resistant, ease to handle, multi-colored
and pleasant in appearance and have been used for civil construction,
agriculture, plumbing, comforter, and many other applications with
excellent results.

PE Foam is superior to other packaging materials because it is: cleaner,

more visually appealing to customers, easier to handle, moisture resistant,
cost-effective, lighter weight, static-current resistant, heat insulating and
totally recyclable material.

PE Foam is widely used now a days in industrial packaging to ensure best

protection and quality. It is unrivaled in offering the best packaging
solutions for ceramics, showpiece, electronic appliances, mechanical
equipment, computer & accessories, leather goods, furniture, fruits &
vegetables etc.
3.2 PE Foam Production Process

PE foam is mainly produced through extrusion technologies. The foams are

created by first dissolving and mixing a gas in the molten PE, secondly
expanding the gas into a lot of small bubbles or cells and finally cooling the
expanded PE and thereby creating the final foam. The foam can be shaped
in different semi-finished products such as tubes, profiles, sheets and
blocks. The expansion results in a substantial reduction of the polyethylene
density.

As already, Cyprian will focus on manufacturing of:

 Various type of polyethylene foam products such as plain sheet in roll,

Net, Tube and Rod by the foaming extrusion process.
 Various types of converted products through the converting process
such as tube forming and lamination with HDPE film, PET metalized
film or another PE foam sheet.

As also alluded to, for the company’s production processes, a minimum 0.5
mm thickness of the products will be manufactured in the plant. Since,
polyethylene foam is recyclable, the plant will ensure that any by-products
are fully recycled. Thus, as such, the project will not be against Tanzania
environmental laws.

MECENIPC Co., Ltd will provide Cyprian with technical backstopping for the
plastic extrusion system. The former has been in the same business for last
29 years. MECENIPC Co,. Ltd has taken its position as a pioneer who has
the capacity to develop advanced technology that meets variable needs and
tastes of customers on time with right solutions. To keep that edge and lead
the world market in succession, it always count on the creative minds of its
staff to explore promising areas such as polyethylene extrusion systems.

3.3 Factory Layout

Figure 3-1 through Figure 3.3 show the key frame features of the factory.

 Layout of the workshop plot area

 Layout of the factory

The factory area whose dimensions are summarized below is quite adequate
for the medium-term needs of the planned production activities.

Area Length Width Area (m2) Remark

Office 9.50 6.00 57.00  
Workshop 23.75 21.00 423.01 Less raw materials area
Raw Materials Warehouse 9.27 8.17 75.74  
Final Products Warehouse 9.50 15.00 142.50  
Total Floor Area     698.25  
Figure 3-1: Layout of the Workshop Plot Area

Figure 3-2: Layout of the Factory Area

Figure 3-3: The main machinery of the foam plant

3.4 Factory Production

The broad, main factory production flow is summarized in Figure 3-4.

Figure 3-4: Production Flow Vhart: Foam Plant Operation

With sheet production as an example, the main processes in the production

line are:

a. Managing incoming raw materials

 LDPE (low
density
polyethylene)
resin is used
PE foam sheet in roll

for PE foam
Cooling & Setting

(LDPE resin)

production as
Raw material
Extrusion
Winding

Take-up

Mixing

main
materials
together with
other
materials
such as
foaming
agent, Talcum
powder and M1.

b. Extrusion

 Compounded resin is extruded and expanded by sheet

extrusion line.
(Talc, M1, LPG Gas)
Sub material
c. Cooling & Winding

 Extruded PE foam sheet is cooled and wound according to required

length.

d. Converting

 If required, various converted products can be produced by following

converting process:
– Sheet laminating process
– Film laminating process
– Tube forming process

3.5 Plants, Machineries and Equipment

With planned installed production of 90 tons of PE foam products per
month, based on 25 working days/month, 3 shifts/day and 8 hours
working/ shift), the required plants, machineries and equipment are as
presented in Table 3.1.

Table 3-1 Required plants, machineries and equipment

No Equipment Cost (US$)

1 PE production line 1,280,000
2 Office equipment 20,000
3 Two vehicles 60,000
4 Three phase connection fee (120 m, 2 poles) 762
5 Meter deposit fee 110
6 Step-down transformer 133 kV/380 V 15,698
7 Generator 400 kVA 136,047
8 Initial spares 100,000
9 Transport, installation and trial prod costs 250,000
10 Miscellaneous accessories 100,000
  Grand total (US$) 1,962,617
Details of the PE production line (indicated in Table 3.1)
 
Main components of the production line machinery and accessories
 Ÿ  Main extrusion line for Sheet production
 Ÿ  Main extrusion line for Tube, Net, Rod production
The supplier of the machinery has been identified and the agreed terms and
Supplier of Machinery
Name of Company: LOHIA STARLINGER LIMITED
Location: D-3/A, PANKIINDUSTRIAL AREA, KANPUR INDIA
Telephone: +915123045100
Fax: +915123045299
E"mail: Isl@lohiagroup.com.nagesh.kamat@lohiagroup.com
Website: www.lohiagroup.com
Agreement with supplier: Cyprian has an agreement on the prices with Lohia Starlinger
limited.
Guarantees: All the machinery purchased will have a guarantee of one year. There is a
letter of agreement from the manufacturer stating the one year guarantee of machinery. The
terms of payment and delivery schedule have also been agreed upon.
Delivery schedule: Six months
Training: The Company 'provides their customers with skilled technicians to do the
installation and test runs of the machinery, and offers on-location training programs for the
local workers.
Price of Machinery: US$ 1,280,000
Experience and Reputation:
Established in 1987, the company is a key member of the India Packaging Association, with
self-supporting import and export permission. It is also a member of India Chamber of
Commerce for the import of machinery and electronic products. The company has passed
the IS09001:2000 quality assurance system of the India Quality Certification Center for
import commodities as well as the CE certificate. With more than 160 sets of various
machinery for the production of machines, the factory's fixed assets are worth nearly US
$106 million. LOHIA machines are well repudiated in India and abroad. They have been
exported to over sixty five countries including the United States, Canada, South Korea,
India, Thailand, Russia, Moldova, Lebanon, Uzbekistan, Iraq, Turkey, Azerbaijan, South
Africa, Nigeria and Morocco.
Technical services will be provided as follows:

1. Systems Engineering & Integration

 MECEN will provide the necessary mechanical/electrical engineering and integration
to interface all the proposed items into a fully functional production line. MECEN
will provide a dedicated project manager to interface with Buyer’s personnel
coordinating all aspects of proposed line from initial schedules to final
commissioning.

2. Pre shipment Testing and Inspection

 Complete set up and electro-mechanical test prior shipment at the manufacturer
facility

3. Mechanical & Electrical Checkout

 MECEN will provide the necessary Engineers and Technicians to perform a thorough
check out of both mechanical and electrical functions of entire line and any
associated equipment provided by MECEN.

4. Process Verification and Operator Training

 MECEN will provide the necessary personnel to train local operators in the proper
 use and operation of the line

4 OWNERSHIP, MANAGEMENT AND STAFFING PLAN

4.1 Legal Face, Ownership Structure & Partnership Arrangement
Cyprial is Limited Liability Company – owned by Mr. Noel Nkomola
Mahyenga and Dikilile James Mahyenga. The owners are quite competent
and experienced in business environment in Tanzania and the Region. Both
of them command great respect mainly on account of being endowed with
high integrity and sociability. The two have the responsibility of ensuring
that the Company is run professionally and legally with impeccable
efficiency and effectiveness (by maximizing benefits or advantages and
minimizing costs or disadvantages of operations).

As already mentioned, Cyprian has entered into a long-term joint venture

arrangement with MECENIPC Co. Ltd of South Korea focussed on PE foam
production. The parties will share responsibilities as follows:

Responsibilities of Cyprian
 Equity investment in cash or in kind
 Arrangement of factory building
 Arrangement of financing from local sources
 Management of JVC

Responsibilities of MECENIPC Co. Ltd
 Equity investment in cash or in kind
 Training of the manpower employed in JVC to secure smooth function and
operation of JVC
 Construction of machinery and equipment for manufacturing of the product
 Management of JVC
4.2 Organisational and Management Structure
Figure 4-1 presents the overall organizational structure of Cyprian. As can be seen, a
board of directors will assist owners of the joint-venture with the overall responsibility
for managing the Company, profitably and strategically. Further, a Managing Director
will be responsible for the day-to-day management of the Company.

The key departments of the company are Production and Technical Operations, Finance
and Marketing & Sales: Their specific roles will be as follows:

 The Directorate of Finance will handle all investments, accounting and financial
management operations. Management of procurement and stores will also be
under this directorate.

 The Production & Technical Operations Directorate will handle the all production
operations, storage and related logistics. The operations will also include all
maintenance activities of the company.
 The Marketing and Sales Directorate will handle all marketing and sales
operations of the Company. As such all sales persons and distribution agents will
be under the purview of this directorate.
 Figure 4-5: Governance and Organizational Structure

Joint Venture Owners

Board of Directors

Managing Director

Director,
Director Finance
Director Marketing Production & Techncial
and Sales Operations

Accountant Production
Salespersons Operations

Cashier Maintenance
Technicians

4.3 Manpower Requirements and Costs

Table 4.1 provides a list of all required key staffing. It is estimated that the company when in full operations will
require a total of XX staff. This will bring the total annual wage bill to about Tshs 2 billion.

Page 24
Table 4-2 Labour Requirements
No Position Number of Staff Monthly Salary Annual Salary (Tshs)
1 Managing Director 1 3,500,000 42,000,000
2 Marketing & Sales Director 1 2,000,000 24,000,000
3 Director of Production & Technical Operations 1 2,000,000 24,000,000
4 Director of Finance 1 2,000,000 24,000,000
5 Accountants 1 1,000,000 12,000,000
6 Cashier 1 800,000 9,600,000
7 Sales persons 2 800,000 19,200,000
8 Production Operators 11 800,000 105,600,000
9 Electrical Technician 1 1,200,000 14,400,000
10 Mechanical Technician 1 1,200,000 14,400,000
11 Admin Assistant 1 1,000,000 12,000,000
12 Security Guards 3 600,000 21,600,000
13 Drivers 2 600,000 14,400,000
  Total     0
  Add: 10% Statutory payments     33,720,000
 Grand total (Tshs) 370,920,000

The employees at Cyprian will be well trained for optimum productivity levels. Employees will learn how to handle
and operate machinery used in the production of PE foam products through targeted in-house training.

4.4 Strategic Plan

Once operations of the Company have taken solid root, the Company will develop a comprehensive strategic plan for
the period 2018 – 2023. The plan will revisit the current vision, mission and scope of activities and geographical
coverage.

The plan will also:

Page 25
  Give adequate and operational attention to realizing the set mission and vision by setting effective high impact
strategic objectives in the following key perspectives: financial, customers, internal business processes &
employees and organizational capacity.
 Operationalizing each strategic objectives through measureable indicators and for each indicator clearly set
targets to be realized, and a set of implementable initiatives, activities to drive the indicators.
 Define additional areas of strategic future investments.

4.5 Training Requirements

Continuous staff training on technical aspects and service delivery will receive priority in the activities of the
company. The plan is to create an enabling for productive and excellent quality, safe and sure operations. Thus, one
of the core responsibilities of the Director of Production and Technical Operations will be staff training and capacity
development.

4.6 Operational Policies and Procedures

The company is committed to putting in place the following policies within the next one to two years of operations:

a. Code of Ethics Policy

b. Disciplinary Policy
c. Employee performance appraisal policy
d. Employee incentives policy
e. Leave Policy
f. Pre-Employment Screening Policy
g. Recruitment/Employment policy
h. Salary policy
i. Health and safety policy
j. Security policy
k. Quality management policy and procedures ( ISO 9000 certification)
l. Customer care policy and service charter
m. Output-oriented Job descriptions

Page 26
4.7 Review the factory's qualifications and certificates

Cyprian is working to get all key permits and certificates. The following have already been obtained:

a) Land ownership title

b) Articles of Association
c) Business license
d) Certificate of registration for VAT
e) Certificate of registration for Taxpayer Identification Number (TIN)-1998
f) Partnership agreement between Cyprian and MECENIPC.
The following certifications are being sought:
a) NEMC Certificate.
b) OSHA Certificate
c) Fire safety certificate
d) TBS

4.8 Pre-operating Activities

Cyprian in partnership with MECENIPC has undertaken a number of pre-operating activities. These include
establishment of the company and recruitment of some initial staff, market/client identification, feasibility study,
business planning, mobilization of partial financing & acquisition of land for construction of the factory. It has still
a number of pre-operating activities to do mainly detailed design of the factory - covering civil and electromechanical
works and construction of the factory complex and installation of the plants and machinery. The cost of all
completed and expected pre-operating activities have been included in the investment plan.

5 FINANCIAL PLAN AND PROJECTIONS

5.1 Assumptions Sheet
5.1.1 Basic Assumptions
 Plant installed Capacity; 150 Kg/Hour
 Number of hrs. Production; 24 Hrs. per day
 Inflation cost; 6%
 Repair and Maintenance; 3% of total revenue

Page 27
  Insurance; 0.125% of CAPEX
 Property Tax; 0.1% of Plant Value
 Land Rent; 0.05% of Plant Value
 Income Tax; 30% if net earnings +ve.
5.1.2 Revenue Drivers
 Polythene tubing and sheets - black colour; TZS 10,000 per unit
 Polythene tubing and sheets - other non-black colour; TZS 10,000 per unit
 Net; TZS 8,000 per unit
 Rod; TZS 8,000 per unit

5.1.3 Raw material distribution (usage)

 Polythene tubing and sheets - black colour; 25%
 Polythene tubing and sheets - other non-black colour; 25%
 Net; 25%
 Rod; 25%

5.1.4 Revenue Drivers

 LDPE; US$ 2,400 / ton
 M1; US$ 4,350 / ton
 Talcum Powder; US$ 2,700 / ton

5.1.5 Operation Cost

 Cost of water; TZS 5 / litre
 Power usage; 0.333 KwH
 Assumed Price (include capacity charge); 270 TZS / KwH
 Diesel for power backup ; 10% of required time ; TZS 2,000 per litre / full capacity - 50 litres

5.1.6 Depreciation
 Depreciation: Building 2%
 Depreciation: Plant & Machinery; 4%
 Depreciation: Furniture and Fittings; 12.5%

Page 28
  Depreciation: Motor Vehicles; 25%
 Depreciation: Pre-operational Expenses; 20%
5.1.7 Finance Cost
 Loan Tenure; 7 years
 Grace Period ; 2 years
 Interest – term loan ; 20.00%
 Interest – short term; 20.00%
 Cost of Debt ; 12.50%
 Base year Exchange rates US$ - TZS ; 2,500
 Currency Depreciation; 2.00% annual

Page 29
Table 5-3 Planned Capacity Utilization, Unit Sales and Average Prices

Utilization/Occupancy FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

Utilization Capacity 50% 75% 90% 90% 90% 90% 90% 90%
UNIT SALES FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Polythene tubing and sheets - black colour 162,000 243,000 291,600 291,600 291,600 291,600 291,600 291,600
Polythene tubing and sheets - other non-black
162,000 243,000 291,600 291,600 291,600 291,600 291,600 291,600
colour
Net 162,000 243,000 291,600 291,600 291,600 291,600 291,600 291,600
Rod 162,000 243,000 291,600 291,600 291,600 291,600 291,600 291,600
AVERAGE UNIT PRICE FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Polythene tubing and sheets - black colour 10,000 10,600 11,236 11,910 12,625 13,382 14,185 15,036
Polythene tubing and sheets - other non-black colour 10,000 10,600 11,236 11,910 12,625 13,382 14,185 15,036
Net 8,000 8,480 8,989 9,528 10,100 10,706 11,348 12,029
Rod 8,000 8,480 8,989 9,528 10,100 10,706 11,348 12,029

Page 23
5.2 Total Capital Requirement
The total capital requirement refers to the amount of money a business
needs for its normal operations and also the amount of cash for asset
acquisition. The source, type and specification of the fully automated
production equipment have been identified. It is anticipated that the
total project cost (excluding operation expenditure) will be US$
2,316,688 that is equivalent to TZS 5.2 billion. This will provide a plant
that will provide sufficient capacity to meet the forecast sales per year.

Table 5-4 Total Project Costs

Total Cost Total Cost
CAPEX QTY Cost "$"
(US$) (TZS)
E/R TZS
2,250.00
I. LAND AND BUILDING 354,070.6 796,658,820
Value of the plot 2,003.00 44.4 89,022.2 200,300,000
Construction costs 846.34 313.2 265,048.4 596,358,820
II. PLAND AND MACHINERY 1,962,617.0 4,415,888,250
1,280,000.
PE production line 1 1,280,000.0 2,880,000,000
0
Office equipment 1 20,000.0 20,000.0 45,000,000
Vehicles 2 30,000.0 60,000.0 135,000,000
Three phase connection fee (120 m, 2
1 762.0 762.0 1,714,500
poles)
Meter deposit fee 1 110.0 110.0 247,500
Step-down transformer 133 kV/380 V 1 15,698.0 15,698.0 35,320,500
Generator 400 kVA 1 136,047.0 136,047.0 306,105,750
Initial spares 1 100,000.0 100,000.0 225,000,000
Transport, installation and trial prod
1 250,000.0 250,000.0 562,500,000
costs
Miscellaneous accessories 1 100,000.0 100,000.0 225,000,000
5,212,547,07
TOTAL PROJECT COST     2,316,688
0

Machinery properties with proforma invoice are attached herewith,

together with BOQ for building facilities while verification will be
provided for all items that promoter has already spent.

5.2.1 Land and Building

The JV Company has already spent nearly TZS 200 million for land
acquisition at Plot number 17/2, Block "2", Mtoni Kijichi area in Temeke
municipality in Dar es Salaam city –specific for this project. The acquired
land will be used as part of collateral to be realized as part of promoters’
equity. Further to building, the company might also need nearly TZS 343
million for electric installation and backup generator (400 KVA).

Page 24
5.2.1. Buildings and Civil Infrastructure
The total cost building and civil infrastructure is estimated at TZS 596
million, based on BOQ calculations. This will cover the premises for
machines installation and the warehouses for raw material and sales
stocks.

5.2.2 Vehicles
The company will need two vehicles for daily operation that might be
used for raw material and finished goods transport. The JV expects to
spend nearly TZS 135 million for the proposed vehicles.

5.2.3 Plant acquisition

The machine will be automated and will accommodate; Main equipment
for sheet, Main equipment for Tube, Net, Rod, Converting and Auxiliary
machinery. Additional, the quoted cost might accommodate the initial
spare parts at the cost of TZS 225 million.

5.3 Financing Plan

The total project cost is estimated at TZS 5.2 billion (excluding working
capital). The owner plans to invest nearly 1.6 billion, including TZS 350
million that has already being been invested for land accusation and
project development including the feasibility study and architect
drawings. Under this structure, the JV Company will need a long term
finance of nearly TZS 3.8 billion for building and civil infrastructure and
plant and equipment which termed to the gearing of 30 – 70 (equity /
Debt).

5.3.1 Operation Expenditure

The packaging industry is volumetric business that relies on stock and
receivables to make profit. Based on this and the fact that most of raw
material will be imported the company will need to maintain three
months stock of raw materials. During year one operation, the JV is
looking for a short-term loan at a structure of over draft to cover the
three months revenue cost that tunes to TZS 1.28 billion.

Total Project Cost including Over 5,362,547,07

Draft 0
Total Required Loan (Including 3,754,351,55
Over Draft) 6
Amount the client is ready to pay 1,608,764,12
1

Page 25
5.4 Projected Income Statement
The revenue – cost trends reveal convicing trends, the revenue increase
at decreasing trend while cost has shown to increase at decreasing
trends, this indicates that, the project is self-sustainable within the
projected fifteen years’ time horizon. The project can realize a positive
net earnings of TZS 1.6 billion during year two of operation that expand
exponential upto TZS 7.0 billion during year fifteen operation.

Net Revenue TZS

Linear (Net Revenue TZS)
Total Cost of Revenues
Linear (Total Cost of Revenues)
25,000,000,000
f(x) = 1202977554.19 x + 5939355930.76
20,000,000,000 R² = 0.9
15,000,000,000
f(x) = 619441214.03 x + 4688586238.71
10,000,000,000 R² = 0.82
5,000,000,000
0
2021
2022
2023

2027
2028
2029
2030
2017
2018
2019
2020

2024
2025
2026

2031
Graph 1: Revenue - Cost projection

Below, provide the summarised income statement for ten years; the
detailed comprehensive income is attached as an appendix. The table
indicates that the project will generate sufficient revenues from
operations throughput the projection period.

Page 26
Table 5-5 Project Income Statement in Millions Tshs

201 201
2018 2019 2020 2021 2022 2023 2024 2025 2026
"TZS" 6 7
1,45 9,27 11,79 12,50 13,25 14,04 14,89 15,78 16,73 17,73 18,80
NET REVENUES 8 3 5 3 3 8 1 5 2 5 0
1,12 6,45 10,39 10,86 11,34
COST OF PRODUCTION 7 9 8,026 8,378 8,746 9,132 9,535 9,957 9 1 5
% of Revenues 77% 70% 68% 67% 66% 65% 64% 63% 62% 61% 60%
EARNINGS FROM 2,81
OPERATION 331 4 3,769 4,124 4,506 4,916 5,356 5,828 6,333 6,875 7,454
% of Revenues 23% 30% 32% 33% 34% 35% 36% 37% 38% 39% 40%
DEPRECIATION/ (EXPENSE) -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257
                     
EARNINGS BEFORE 2,55
INTEREST & TAXES 74 7 3,512 3,868 4,250 4,660 5,099 5,571 6,076 6,618 7,198
INTEREST INCOME /
(EXPENSE) -452 -384 -289 -194 -99 -14 0 0 0 0 0
NET EARNINGS BEFORE 2,17
TAXES -378 3 3,223 3,674 4,151 4,646 5,099 5,571 6,076 6,618 7,198
- - - - - - - -
TAXES 0 -539 -967 1,102 1,245 1,394 1,530 1,671 1,823 1,985 2,159
                     
1,63
NET EARNINGS -378 5 2,256 2,572 2,906 3,252 3,570 3,900 4,253 4,632 5,038
% of Revenues -26% 18% 19% 21% 22% 23% 24% 25% 25% 26% 27%
1,25 12,24 15,81 19,71 23,96 28,59 33,63
Cumulative Net Earnings -378 7 3,513 6,084 8,990 2 1 1 4 7 5

Page 27
5.5 Projected Cash flow statement
The cash flow statement revealed that, the company will have enough
cash flow to cover for loan obligation and the company to remained with
sustainable income for shareholders distribution during year two (2) of
operation.

The cash flow statement has shown positive net earnings from year three
of nearly TZS 3.0 billion; expand steadily upto TZS 66.6 billion during
year fifteen of operation.

Page 28
Table 5-6 : Projected Income Statement "Mil." TZS
"TZS" 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
OPERATING ACTIVITIES
Net Earnings -378 1,635 2,256 2,572 2,906 3,252 3,570 3,900 4,253 4,632
Depreciation 257 257 257 257 257 257 257 257 257 257
Working Capital Changes
(Increase)/Decrease Accounts Receivable -363 -745 -301 -85 -90 -95 -101 -107 -113 -120
(Increase)/Decrease Inventories -363 -745 -30 -68 -72 -77 -81 -86 -91 -97
(Increase)/Decrease Other Current Assets -44 -90 -36 -10 -11 -11 -12 -13 -14 -14
Increase/(Decrease) Accts Pay & Accrued Expenses 378 784 316 89 94 100 106 112 119 126
Increase/(Decrease) Other Current Liabilities 44 90 36 10 11 11 12 13 14 14
Net Cash Provided/(Used) by Operating Activities -469 1,185 2,498 2,764 3,094 3,437 3,750 4,075 4,424 4,798
INVESTING ACTIVITIES
Property & Equipment -3,255 -5,564 0 0 0 0 0 0 0 0 0
Other                      
Net Cash Used in Investing Activities -3,255 -5,564 0 0 0 0 0 0 0 0 0
FINANCING ACTIVITIES                      
Increase/(Decrease) Short Term Debt   954 4,984 1,487 316 330 345 360 376 393 411
Increase/(Decrease) Current Portion LTD                      
Increase/(Decrease) Long Term Debt   815 -487 -487 -487 -487 -244 0 0 0 0
Increase/(Decrease) Common Stock   -626 -1,251 0 0 0 0 0 0 0 0
Increase/(Decrease) Preferred Stock   0 0 0 0 0 0 0 0 0 0
Dividends Declared   0 0 0 0 0 0 0 0 0 0
Net Cash Provided / (Used) by Financing   1,144 3,246 1,000 -171 -157 101 360 376 393 411
INCREASE/(DECREASE) IN CASH   -4,890 4,430 3,497 2,593 2,937 3,538 4,110 4,452 4,818 5,209
CASH AT BEGINNING OF YEAR     -4,890 -460 3,038 5,630 8,567 12,105 16,215 20,667 25,485
CASH AT END OF YEAR   -4,890 -460 3,038 5,630 8,567 12,105 16,215 20,667 25,485 30,694

Page 29
5.6 Projected Balance Sheet
The projected balance sheet shows that, the projected account
receivables increase at the higher rate compared to inventories which is
the clear indication that, liquidity requirement is conversing during the
projected fifteen years’ time horizon. The company will conquer more of
the short-term loan during the years, specific for inventory, since there is
a clear indication that the product will attract most of the major
customer based on technology the counterpart partner. Shareholders
assume that, the Bank can provide an overdraft to cover the three
months payables for revenue cost that might need the front payment like
utilities cost and raw materials cost.

Page 30
"TZS" 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
ASSETS
CURRENT ASSETS
Cash   -4,890 -460 3,038 5,630 8,567 12,105 16,215 20,667 25,485
Accounts Receivable   363 1,108 1,410 1,494 1,584 1,679 1,780 1,887 2,000
Inventories   363 1,108 1,138 1,206 1,279 1,355 1,437 1,523 1,614
Other Current Assets   44 134 170 180 191 202 214 227 241
Total Current Assets   -4,120 1,891 5,755 8,511 11,621 15,342 19,646 24,304 29,339
PROPERTY & EQUIPMENT 3,255 8,562 8,305 8,049 7,792 7,535 7,278 7,022 6,765 6,508
TOTAL ASSETS 3,255 4,442 10,196 13,804 16,303 19,156 22,620 26,668 31,068 35,848
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short Term Debt   954 5,938 7,425 7,741 8,071 8,416 8,776 9,153 9,546
Accounts Payable & Accrued Expense   378 1,162 1,478 1,566 1,660 1,760 1,866 1,977 2,096
Other Current Liabilities   44 134 170 180 191 202 214 227 241
Total Current Liabilities   1,376 7,234 9,073 9,488 9,922 10,378 10,856 11,357 11,883
LONG TERM DEBT (less current portion) 1,378 2,193 1,706 1,218 731 244        
STOCKHOLDERS' EQUITY
Common Stock 1,877 1,251                
Preferred Stock                    
Retained Earnings   -378 1,257 3,513 6,084 8,990 12,242 15,811 19,711 23,964
Total Equity 1,877 873 1,257 3,513 6,084 8,990 12,242 15,811 19,711 23,964
TOTAL LIABILITIES & EQUITY 3,255 4,442 10,196 13,804 16,303 19,156 22,620 26,668 31,068 35,848
CHECK IF BALANCE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE

Page 31
 Looking at liquidity cycle, the reflected changing working capital reflected
in the cash flow statement indicates the project might not suffer from
liquidity problem during the projected fifteen years of operations.

5.7 Project Viability

The discount valuation results reveal the project is viable. Given the fact
that the company can settle the loan obligation, the WACC is not
impacted by the cost of equity. The detailed calculation profitability index
analysis is summarized below.
Debt to Capital (LT Debt + Equity) DCSR
Return on Equity (ROE)
0.80 35.00 Return on Assets (ROA)
0.70 30.00 600.0% 40.0%
0.60 500.0%
25.00 30.0%
0.50
0.40 20.00 400.0%
20.0%
0.30 15.00 300.0%
0.20 10.0%
10.00 200.0%
0.10 0.0%
0.00 5.00 100.0%
-0.10 0.00 0.0% -10.0%
17 18 19 20 21 22 23 24 25 26 -100.0% 017 018 019 020 021 022 023 024 025 026 -20.0%
20 20 20 20 20 20 20 20 20 20 2 2 2 2 2 2 2 2 2 2

5.7.1 Net Present Value

The project net present value (NPV) is calculated, taking into account the
computed weighted average cost of capital of 12.3%. The project shows
NPV of TZS 7.6 billion, for 15 years’ time horizon. The analysis takes into
consideration the salvage value of the project.

5.7.2 Internal Rate of Return

The internal rate of return (IRR) has cemented the investment decision
for this project. For the project to be financial viable, the IRR should be
greater than the cost of funding that is assumed at 18.0% and the WACC
that is calculated at 13.0%.

The IRR for the project under the Base case scenario is 43.00% -
considering before tax cash flow and 34.00% – considering after tax cash
flow. Conclusively, the project is viable for both scenario and thus the
said capital investment worth financing on the proposed rates.

Page 32
5.7.3 Debt Service Coverage Ratio (DSCR)
The minimum DSCR is minimum during year one that is calculated at
6.68, growths up to 29.1 during year 7. The average DSCR is 12.01 that
indicate the cash flow can pay-out the loan obligation and thus the
project cannot run out of liquidity.

Page 33
 Table 5-7: Summarized Profitability Results "Mil. TZS"

"TZS" 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Summary Financials
Revenue 1,458 9,273 11,795 12,503 13,253 14,048 14,891 15,785 16,732 17,735
Gross Profit 331 2,814 3,769 4,124 4,506 4,916 5,356 5,828 6,333 6,875
EBIT 74 2,557 3,512 3,868 4,250 4,660 5,099 5,571 6,076 6,618
Net Earnings -378 1,635 2,256 2,572 2,906 3,252 3,570 3,900 4,253 4,632
Net Cash from Operating Activities -469 1,185 2,498 2,764 3,094 3,437 3,750 4,075 4,424 4,798
Capital Expenditures 3255 2,310                  
Interest Income/(Expense) -452 -384 -289 -194 -99 -14        
Cash -4,890 -460 3,038 5,630 8,567 12,105 16,215 20,667 25,485 30,694
Total Equity 873 1,257 3,513 6,084 8,990 12,242 15,811 19,711 23,964 28,597
Total Debt 2,193 1,706 1,218 731 244          
Growth
Revenue Growth Rate - CAGR: 536% 27% 6% 6% 6% 6% 6% 6% 6%
Net Earnings Growth Rate -
CAGR: Nil 38.0% 14.0% 13.0% 11.9% 9.8% 9.2% 9.1% 8.9%
Ratios
Current Ratio -2.99 0.26 0.63 0.90 1.17 1.48 1.81 2.14 2.47 2.80
Debt to Capital (LT Debt +
Equity) 0.72 0.58 0.26 0.11 0.03 0.00 0.00 0.00 0.00 0.00
DCSR 2.61 4.04 4.32 5.31 6.61 8.39 20.80 0.00 0.00 0.00
Profitability
Gross Profit % 22.7% 30.3% 32.0% 33.0% 34.0% 35.0% 36.0% 36.9% 37.9% 38.8%
Net Earnings % -25.9% 17.6% 19.1% 20.6% 21.9% 23.1% 24.0% 24.7% 25.4% 26.1%
Returns
Return on Assets (ROA) -11.6% 36.8% 22.1% 18.6% 17.8% 17.0% 15.8% 14.6% 13.7% 12.9%
Return on Equity (ROE) -20.1% 187.3% 179.5% 73.2% 47.8% 36.2% 29.2% 24.7% 21.6% 19.3%
Return on Capital (LT Debt +
Equity) -12.3% 55.2% 47.7% 37.7% 31.5% 26.6% 22.6% 19.8% 17.7% 16.2%
Internal Rate of Return (IRR) -
BTCF 43%
Internal Rate of Return (IRR) -
ATCF 34%
NPV 7,694
SALVAGE
VALUE
ATCF -5,213 -378 1,635 2,256 2,572 2,906 3,252 3,570 3,900 4,253 7,629
BTCF -5,213 -378 2,173 3,223 3,674 4,151 4,646 5,099 5,571 6,076 9,615
Costs of Equity 12.5%
Costs of Debt 19.5%
Discount rate (WACC) 13.0%

Page 34
5.8 Conclusion
The business plan shows a worthiness business case. For the base case
scenario, IRR, NPV, DSCR and all other ratios indicators show that, the
project is financial viable and worth financing. The entire scenario gives
the return that is above the standard thresholds in terms of IRR (above
the cost of capital), NPV (positive) and DSCR (above one), and thus we
are confident that, the project can pass the Bank threshold, ready for
loan funding.

6 SOCIO-ECONOMIC IMPACT

The project directly supports the Government of Tanzania drive on

industrialisation. Specifically, it will contribute to enhanced development of the
plastics manufacturing sub-sector which is an important driver and support to
other industrial activities. Project therefore has a substantial positive bearing
in the national economy at large.

The project will also contribute to enhancement of the investment climate

through its involvement of strategic partnership with a leading South Korean
producer of PE plastics products and manufacturing technologies. This should
send a positive signal to other domestic and foreign investors.

The project will boost jobs, training and standards. The envisaged services will
create a substantial number of direct jobs. Some of the established services e.g.
production PE sheeting, net and rod helps develop other downstream
businesses, producing more tailored products. Through training, the project
will also improve quality standards in the local plastics manufacturing
industry.

The projects will generate substantial tax revenues and foreign exchange
earnings. The planned services will generate substantial foreign exchange and
tax revenues (e.g., corporate tax, VAT, PAYE )

In summary the project has a number of substantial socio-economic benefits

including promoting foreign direct investment capital through its Joint Venture
approach; introducing a proven high plastics manufacturing technology to
Tanzania, substituting imported plastics goods with the locally manufactured
products, enhancing the country’s ability to export plastic products
neighbouring countries, enhancing shareholder and stakeholder revenues from
the expected high return on investment, and increasing employment
opportunities for Tanzanians.
7 ENVIRONMENTAL ASSESSMENT AND MANAGEMENT PLAN
The Environmental Impact Assessment (EIA) carried in line with Government
laws, regulations and standards4 has shown that project has minimum but
manageable environmental impacts. The EIA report which is available, as a
separate document has also proposed a befitting management plan. At the
production of this business plan, the EIA has been submitted to the National
Environmental Management Council (NEMC) and a formal approval certificate
was being awaited.

Essentially the project will be manufacturing various types of polyethylene

foam products such as plain sheet in roll, net, tube and rod by the foaming
extrusion procession process. The products to be produced we all have a
minimum thickness of 0.5 mm, which well, complies with what the law
demands. Additionally, polyethylene foam that is the main raw material is
100% recyclable. And as such, shows that the project will not be against
Tanzania environmental laws.

8 CONCLUSIONS AND RECOMMENDATIONS

Cyprian – MECENIPC joint-venture will play important role in the
economy by promoting the extensive use of PE foam products thus
contributing to industrial and economic output. Accordingly, there are both
direct and indirect benefits expected from the project. Some of these include:
Increased employment level; Contribution to Government taxes at local and
central levels; Contribution to national Gross Domestic Product (GDP);
Contribution to stabilization of PE foam products prices; Spill-over (indirect)
effects to the whole economy. Analysis of financial data based on a number of
assumptions has indicated that the project is financially quit viable. The
key indicators of viability are as follows:

Internal Rate of Return (IRR) - 43%

BTCF
Internal Rate of Return (IRR) - 34%
ATCF
Discount rate (WACC) 13.0%
NPV “TZS” (15 years) TZS 7.6
billion

4
This is inline with Environmental Management Act no. 20 of 2004 and EIA and Environmental Audit Regulations of
2005

Page 35
This suggests that this project is sufficiently bankable and stand to provide
substantial socio-economic benefits to the country.

The following next steps are proposed:

Step 1: Mobilization of Required Loan Financing

 Raising the required finances

Step 2: Detailed Planning & Design and Procurement Formalities

 Recruitment of project manager

 Recruitment of architectural and design consultant
 Detailed planning and design of the project (architectural and structural
drawings and costing)
 Careful analysis and planning of all support systems
 Preparation of tender documents and procurement formalities to get the
contractor(s)

Step 3: Procurement, Construction and Commissioning

 Tendering, evaluation of tenders and appointment of contractor
 Mobilization
 Construction works
 Procurement and installation of all required equipment, fixtures,
furniture and facilities
 Recruitment of staff
 Commissioning of the business

Page 36
REFERENCES

(To be included in the end)

Page 37
APPENDICES

Page 38
Page 39
 Income Statement
201 201 201 201 202 202 202 202 202 202 202 202 202 202 203
"TZS" 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0

11,79 12,50 13,25 14,04 14,89 15,78 16,73 17,73 18,80 19,92 21,12 22,39 23,73
NET REVENUES 1,458 9,273 5 3 3 8 1 5 2 5 0 8 3 1 4

10,39 10,86 11,34 11,85 12,38 12,93 13,52

COST OF PRODUCTION 1,127 6,459 8,026 8,378 8,746 9,132 9,535 9,957 9 1 5 2 3 9 2
% of Revenues 77% 70% 68% 67% 66% 65% 64% 63% 62% 61% 60% 59% 59% 58% 57%

10,21
EARNINGS FROM OPERATION 331 2,814 3,769 4,124 4,506 4,916 5,356 5,828 6,333 6,875 7,454 8,075 8,740 9,451 2
% of Revenues 23% 30% 32% 33% 34% 35% 36% 37% 38% 39% 40% 41% 41% 42% 43%

DEPRECIATION/ (EXPENSE) -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257
                             
EARNINGS BEFORE INTEREST &
TAXES 74 2,557 3,512 3,868 4,250 4,660 5,099 5,571 6,076 6,618 7,198 7,819 8,483 9,195 9,955

INTEREST INCOME / (EXPENSE) -452 -384 -289 -194 -99 -14 0 0 0 0 0 0 0 0 0

NET EARNINGS BEFORE TAXES -378 2,173 3,223 3,674 4,151 4,646 5,099 5,571 6,076 6,618 7,198 7,819 8,483 9,195 9,955

- - - - - - - - - - - -
TAXES 0 -539 -967 1,102 1,245 1,394 1,530 1,671 1,823 1,985 2,159 2,346 2,545 2,758 2,987
                             
NET EARNINGS -378 1,635 2,256 2,572 2,906 3,252 3,570 3,900 4,253 4,632 5,038 5,473 5,938 6,436 6,969
% of Revenues -26% 18% 19% 21% 22% 23% 24% 25% 25% 26% 27% 27% 28% 29% 29%

12,24 15,81 19,71 23,96 28,59 33,63 39,10 45,04 51,48 58,45
Cumulative Net Earnings -378 1,257 3,513 6,084 8,990 2 1 1 4 7 5 8 7 3 2
Appendix 1: Income Statement "Mil." TZS

Page 40
Balance Sheet
201
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
"TZS" 7
ASSETS
CURRENT ASSETS
-
4,89 12,10 16,21 20,66 25,48 30,69 36,32 42,40 48,95 56,02 63,64
Cash   0 -460 3,038 5,630 8,567 5 5 7 5 4 2 0 6 6 4
Accounts Receivable   363 1,108 1,410 1,494 1,584 1,679 1,780 1,887 2,000 2,120 2,247 2,382 2,525 2,676 2,837
Inventories   363 1,108 1,138 1,206 1,279 1,355 1,437 1,523 1,614 1,711 1,814 1,923 2,038 2,160 2,290
Other Current Assets   44 134 170 180 191 202 214 227 241 255 271 287 304 322 342
-
4,12 11,62 15,34 19,64 24,30 29,33 34,78 40,65 46,99 53,82 61,18 69,11
Total Current Assets   0 1,891 5,755 8,511 1 2 6 4 9 0 4 1 3 5 2
3,25 8,56
PROPERTY & EQUIPMENT 5 2 8,305 8,049 7,792 7,535 7,278 7,022 6,765 6,508 6,251 5,995 5,738 5,481 5,224 4,968
3,25 4,44 10,19 13,80 16,30 19,15 22,62 26,66 31,06 35,84 41,03 46,64 52,72 59,30 66,40 74,08
TOTAL ASSETS 5 2 6 4 3 6 0 8 8 8 2 9 9 4 9 0
LIABILITIES & SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
10,38 10,83 11,30 11,79 12,31
Short Term Debt   954 5,938 7,425 7,741 8,071 8,416 8,776 9,153 9,546 9,957 7 7 7 9 3
Accounts Payable & Accrued
Expen   378 1,162 1,478 1,566 1,660 1,760 1,866 1,977 2,096 2,222 2,355 2,497 2,646 2,805 2,973
Other Current Liab   44 134 170 180 191 202 214 227 241 255 271 287 304 322 342
Current portion of long term debt                                
1,37 10,37 10,85 11,35 11,88 12,43 13,01 13,62 14,25 14,92 15,62
Total Current Liabilities   6 7,234 9,073 9,488 9,922 8 6 7 3 5 3 0 7 6 8
LONG TERM DEBT (less current 1,37 2,19
portion) 8 3 1,706 1,218 731 244                    
STOCKHOLDERS' EQUITY
1,87 1,25
CommonStock 7 1                            
Preferred Stock                                
12,24 15,81 19,71 23,96 28,59 33,63 39,10 45,04 51,48 58,45
Retained Earnings   -378 1,257 3,513 6,084 8,990 2 1 1 4 7 5 8 7 3 2
1,87 12,24 15,81 19,71 23,96 28,59 33,63 39,10 45,04 51,48 58,45
Total Equity 7 873 1,257 3,513 6,084 8,990 2 1 1 4 7 5 8 7 3 2
3,25 4,44 10,19 13,80 16,30 19,15 22,62 26,66 31,06 35,84 41,03 46,64 52,72 59,30 66,40 74,08
TOTAL LIABILITIES & EQUITY 5 2 6 4 3 6 0 8 8 8 2 9 9 4 9 0
TRU TRU TRU TRU TRU TRU TRU TRU TRU TRU TRU TRU TRU TRU TRU
TRUE
CHECK IF BALANCE E E E E E E E E E E E E E E E

Page 41
 Appendix 2: Balance Sheet "Mil." TZS

  2017 2018 2019 2020 2021 2022 2023 2024 2025

1,458,000,0 9,272,880,0 11,795,103,3 12,502,809,5 13,252,978,1 14,048,156,8 14,891,046,2 15,784,509,0 16,731,579,5
Revenues 00 00 60 62 35 23 33 07 47
Income Tax 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30
Net Earnings Before - 2,173,110,1 3,222,896,02 3,673,736,00 4,150,766,10 4,645,834,64 5,099,425,88 5,570,930,24 6,076,307,39
Taxes 378,064,485 76 3 4 2 5 4 5 9
- 1,795,045,6 5,017,941,71 8,691,677,71 12,842,443,8 17,488,278,4 22,587,704,3 28,158,634,5 34,234,941,9
Cumulative 378,064,485 91 3 8 20 65 49 94 93
- - - - - -
- 1,102,120,80 1,245,229,83 1,393,750,39 1,529,827,76 1,671,279,07 1,822,892,22
Taxes 0 538,513,707 -966,868,807 1 1 4 5 4 0
Percept of Revenues 0.0% -5.8% -8.2% -8.8% -9.4% -9.9% -10.3% -10.6% -10.9%
Appendix 3: Tax Provision "TZS"

Page 42
Cash Flow Statement
201 201 201 201 202 202 202 202 202 202 202 202 202 202 203 203
"TZS" 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1
OPERATING ACTIVITIES
1,63 2,25 2,57 2,90 3,25 3,57 3,90 4,25 4,63 5,03 5,47 5,93 6,43
Net Earnings -378 5 6 2 6 2 0 0 3 2 8 3 8 6 6,969
Depreciation 257 257 257 257 257 257 257 257 257 257 257 257 257 257 257
Working Capital Changes
(Increase)/Decrease Accounts
Receivable -363 -745 -301 -85 -90 -95 -101 -107 -113 -120 -127 -135 -143 -151 -161
(Increase)/Decrease Inventories -363 -745 -30 -68 -72 -77 -81 -86 -91 -97 -103 -109 -115 -122 -130
(Increase)/Decrease Other Current
Assets -44 -90 -36 -10 -11 -11 -12 -13 -14 -14 -15 -16 -17 -18 -19
Increase/(Decrease) Accts Pay &
Accrd Expenses 378 784 316 89 94 100 106 112 119 126 133 141 150 159 168
Increase/(Decrease) Other Current
Liab 44 90 36 10 11 11 12 13 14 14 15 16 17 18 19
Net Cash Provided/(Used) by Operating 1,18 2,49 2,76 3,09 3,43 3,75 4,07 4,42 4,79 5,19 5,62 6,08 6,57
Activities -469 5 8 4 4 7 0 5 4 8 9 8 7 8 7,104
INVESTING ACTIVITIES
- -
3,25 5,56
Property & Equipment 5 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other                                
- -
Net Cash Used in Investing 3,25 5,56
Activities 5 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0
FINANCING ACTIVITIES                                
4,98 1,48
Increase/(Decrease) Short Term Debt   954 4 7 316 330 345 360 376 393 411 430 450 470 492 514
Increase/(Decrease) Curr. Portion
LTD                                
Increase/(Decrease) Long Term Debt   815 -487 -487 -487 -487 -244 0 0 0 0 0 0 0 0 0
-
1,25
Increase/(Decrease) Common Stock   -626 1 0 0 0 0 0 0 0 0 0 0 0 0 0
Increase/(Decrease) Preferred Stock   0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Dividends Declared   0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Cash Provided / (Used) by 1,14 3,24 1,00
Financing   4 6 0 -171 -157 101 360 376 393 411 430 450 470 492 514
                             
-
4,89 4,43 3,49 2,59 2,93 3,53 4,11 4,45 4,81 5,20 5,62 6,07 6,55 7,07
INCREASE/(DECREASE) IN CASH   0 0 7 3 7 8 0 2 8 9 9 7 7 0 7,618

Page 43
 -
4,89 3,03 5,63 8,56 12,1 16,2 20,6 25,4 30,6 36,3 42,4 48,9 56,02
CASH AT BEGINNING OF YEAR     0 -460 8 0 7 05 15 67 85 94 22 00 56 6
-
4,89 3,03 5,63 8,56 12,1 16,2 20,6 25,4 30,6 36,3 42,4 48,9 56,0 63,64
CASH AT END OF YEAR   0 -460 8 0 7 05 15 67 85 94 22 00 56 26 4
Appendix 4: Cash flow Statement "Mil." TZS

Page 44
Property and Equipment
"TZS"   2016 2017 2018 2019 2020 2021 2022 2023 2024
1,458,000, 9,272,880, 11,795,103, 12,502,809, 13,252,978, 14,048,156, 14,891,046, 15,784,509,
0
Net Revenues 000 000 360 562 135 823 233 007
Capital Expenditures
2,200,500, 1,467,000,
Plant & Equipment 000 000
357,815,2 238,543,5
Buildings 92 28
81,000,00 54,000,00
Motor Vehicle 0 0
27,000,00 18,000,00
Office Furniture & Equipment 0 0
135,000,0 90,000,00
Pre-operation Expenses 00 0
206,032,9 137,355,3
Generator 50 00
120,180,0 80,120,00
Land 00 0
127,037,4 224,629,4
Capitalized Interest 58 73
3,254,565, 2,309,648,
Total Capital Expenditures 700 301 0 0 0 0 0 0 0
Depreciation
Building
Depreciation of Building: 2% of 11,927,17 11,927,17
CAPEX 2% 6 6 11,927,176 11,927,176 11,927,176 11,927,176 11,927,176 11,927,176
Machinery and Equipment’s: 4%
of CAPEX
Depreciation of Machinery and 4.0 160,435,5 160,435,5 160,435,53 160,435,53 160,435,53 160,435,53 160,435,53 160,435,53
Equipment’s % 30 30 0 0 0 0 0 0
Fixtures and Fittings: 12.5% of
CAPEX
Depreciation of Fixtures and 12.5
Fittings % 5,625,000 5,625,000 5,625,000 5,625,000 5,625,000 5,625,000 5,625,000 5,625,000
Motor Vehicles: 12.5% of CAPEX
33,750,00 33,750,00
Depreciation of Motor Vehicles 25% 0 0 33,750,000 33,750,000 33,750,000 33,750,000 33,750,000 33,750,000
Pre-operation expenses: 20%
Depreciation of pre-operation 45,000,00 45,000,00
expenses 20% 0 0 45,000,000 45,000,000 45,000,000 45,000,000 45,000,000 45,000,000
256,738,0 256,738,0 256,738,00 256,738,00 256,738,00 256,738,00 256,738,00 256,738,00
TOTAL DEPRECIATION 00 00 0 0 0 0 0 0
% of revenue 17.6% 2.8% 2.2% 2.1% 1.9% 1.8% 1.7% 1.6%
PROPERTY & EQUIPMENT

Page 45
 3,254,565, 5,564,214, 5,564,214, 5,564,214,0 5,564,214,0 5,564,214,0 5,564,214,0 5,564,214,0 5,564,214,0
Gross Asset Value 700 001 001 01 01 01 01 01 01
256,738,0 513,476,0 770,214,00 1,026,952,0 1,283,690,0 1,540,428,0 1,797,166,0 2,053,904,0
Accumulated Depreciation 00 00 0 00 00 00 00 00
3,254,565, 5,307,476, 5,050,738, 4,794,000,0 4,537,262,0 4,280,524,0 4,023,786,0 3,767,048,0 3,510,310,0
Net Property and Equipment 700 001 001 01 01 01 01 01 01
Appendix 5: Depreciation Schedule

Page 46
                 
  Term Loan 2,085,018,828.00
  Interest Rate 19.5% Per annual
  Loan Tenure 6 years
  Grace Period 1 years
 
Disbursement
Loan Cash Equity
  Schedule
1st
  Disbursement 60% 60% 1,876,516,945
2nd
  Disbursement 40% 40% 1,251,011,297
3rd
  Disbursement 0% 0% 0
4th
  Disbursement 0% 0%
 
# of Amount Interest Principal Amount
Year Month periods Beginning Balance disbursed Expense Repayment Total Payment outstanding

July 1 - 1,251,011,297 20,328,934 - 20,328,934 1,271,340,230

August 2 1,271,340,230 - 20,659,279 - 20,659,279 1,291,999,509

September 3 1,291,999,509 - 20,994,992 - 20,994,992 1,312,994,501

2016

October 4 1,312,994,501 - 21,336,161 - 21,336,161 1,334,330,662

November 5 1,334,330,662 - 21,682,873 - 21,682,873 1,356,013,535

December 6 1,356,013,535 - 22,035,220 - 22,035,220 1,378,048,755

2016
      1,251,011,297 127,037,458 - 127,037,458 1,378,048,755
2017
January 7 1,378,048,755 834,007,531 35,945,915 - 35,945,915 2,248,002,201

February 8 2,248,002,201 - 36,530,036 - 36,530,036 2,284,532,237

March 9 2,284,532,237 - 37,123,649 - 37,123,649 2,321,655,885

April 10
2,321,655,885 - 37,726,908 - 37,726,908 2,359,382,794

Page 47
 May 11 2,359,382,794 - 38,339,970 - 38,339,970 2,397,722,764

June 12 2,397,722,764 - 38,962,995 - 38,962,995 2,436,685,759

July 13 2,436,685,759 - 39,596,144 40,611,429 80,207,573 2,396,074,330

August 14 2,396,074,330 - 38,936,208 40,611,429 79,547,637 2,355,462,900

September 15 2,355,462,900 - 38,276,272 40,611,429 78,887,701 2,314,851,471

October 16 2,314,851,471 - 37,616,336 40,611,429 78,227,766 2,274,240,042

November 17 2,274,240,042 - 36,956,401 40,611,429 77,567,830 2,233,628,612

December 18 2,233,628,612 - 36,296,465 40,611,429 76,907,894 2,193,017,183

2017
Total       834,007,531 452,307,298 243,668,576 950,050,791 2,193,017,183
2018
January 19 2,193,017,183 - 35,636,529 40,611,429 76,247,959 2,152,405,754

February 20 2,152,405,754 - 34,976,593 40,611,429 75,588,023 2,111,794,324

March 21 2,111,794,324 - 34,316,658 40,611,429 74,928,087 2,071,182,895

April 22 2,071,182,895 - 33,656,722 40,611,429 74,268,151 2,030,571,466

May 23 2,030,571,466 - 32,996,786 40,611,429 73,608,216 1,989,960,036

June 24 1,989,960,036 - 32,336,851 40,611,429 72,948,280 1,949,348,607

July 25 1,949,348,607 - 31,676,915 40,611,429 72,288,344 1,908,737,178

August 26 1,908,737,178 - 31,016,979 40,611,429 71,628,408 1,868,125,748

September 27 1,868,125,748 - 30,357,043 40,611,429 70,968,473 1,827,514,319

October 28
1,827,514,319 - 29,697,108 40,611,429 70,308,537 1,786,902,890

Page 48
 November 29 1,786,902,890 - 29,037,172 40,611,429 69,648,601 1,746,291,461

December 30 1,746,291,461 - 28,377,236 40,611,429 68,988,666 1,705,680,031

2018
Total       - 384,082,593 487,337,152 871,419,745 1,705,680,031

January 31 1,705,680,031 - 27,717,301 40,611,429 68,328,730 1,665,068,602

February 32 1,665,068,602 - 27,057,365 40,611,429 67,668,794 1,624,457,173

March 33 1,624,457,173 - 26,397,429 40,611,429 67,008,858 1,583,845,743

April 34 1,583,845,743 - 25,737,493 40,611,429 66,348,923 1,543,234,314

May 35 1,543,234,314 - 25,077,558 40,611,429 65,688,987 1,502,622,885

June 36 1,502,622,885 - 24,417,622 40,611,429 65,029,051 1,462,011,455

2019

July 37 1,462,011,455 - 23,757,686 40,611,429 64,369,115 1,421,400,026

August 38 1,421,400,026 - 23,097,750 40,611,429 63,709,180 1,380,788,597

September 39 1,380,788,597 - 22,437,815 40,611,429 63,049,244 1,340,177,167

October 40 1,340,177,167 - 21,777,879 40,611,429 62,389,308 1,299,565,738

November 41 1,299,565,738 - 21,117,943 40,611,429 61,729,373 1,258,954,309

December 42 1,258,954,309 - 20,458,008 40,611,429 61,069,437 1,218,342,879

2019
Total       - 289,051,848 487,337,152 776,389,000 17,300,468,888
2020
January 43 1,218,342,879 - 19,798,072 40,611,429 60,409,501 1,177,731,450

February 44 1,177,731,450 - 19,138,136 40,611,429 59,749,565 1,137,120,021

March 45
1,137,120,021 - 18,478,200 40,611,429 59,089,630 1,096,508,591

Page 49
 April 46 1,096,508,591 - 17,818,265 40,611,429 58,429,694 1,055,897,162

May 47 1,055,897,162 - 17,158,329 40,611,429 57,769,758 1,015,285,733

June 48 1,015,285,733 - 16,498,393 40,611,429 57,109,822 974,674,304

July 49 974,674,304 - 15,838,457 40,611,429 56,449,887 934,062,874

August 50 934,062,874 - 15,178,522 40,611,429 55,789,951 893,451,445

September 51 893,451,445 - 14,518,586 40,611,429 55,130,015 852,840,016

October 52 852,840,016 - 13,858,650 40,611,429 54,470,080 812,228,586

November 53 812,228,586 - 13,198,715 40,611,429 53,810,144 771,617,157

December 54 771,617,157 - 12,538,779 40,611,429 53,150,208 731,005,728

2020
Total       - 194,021,104 487,337,152 681,358,255 11,452,423,067
2021
January 55 731,005,728 - 11,878,843 40,611,429 52,490,272 690,394,298

February 56 690,394,298 - 11,218,907 40,611,429 51,830,337 649,782,869

March 57 649,782,869 - 10,558,972 40,611,429 51,170,401 609,171,440

April 58 609,171,440 - 9,899,036 40,611,429 50,510,465 568,560,010

May 59 568,560,010 - 9,239,100 40,611,429 49,850,529 527,948,581

June 60 527,948,581 - 8,579,164 40,611,429 49,190,594 487,337,152

July 61 487,337,152 - 7,919,229 40,611,429 48,530,658 446,725,722

August 62 446,725,722 - 7,259,293 40,611,429 47,870,722 406,114,293

September 63
406,114,293 - 6,599,357 40,611,429 47,210,787 365,502,864

Page 50
 October 64 365,502,864 - 5,939,422 40,611,429 46,550,851 324,891,435

November 65 324,891,435 - 5,279,486 40,611,429 45,890,915 284,280,005

December 66 284,280,005 - 4,619,550 40,611,429 45,230,979 243,668,576

2021
Total       - 98,990,359 487,337,152 586,327,511 5,604,377,245

January 67 243,668,576 - 3,959,614 40,611,429 44,571,044 203,057,147

February 68 203,057,147 - 3,299,679 40,611,429 43,911,108 162,445,717

March 69 162,445,717 - 2,639,743 40,611,429 43,251,172 121,834,288

April 70 121,834,288 - 1,979,807 40,611,429 42,591,236 81,222,859

May 71 81,222,859 - 1,319,871 40,611,429 41,931,301 40,611,429

-
June 72 40,611,429 - 659,936 40,611,429 41,271,365 0
2022
- - - -
July 73 0 - 0 - 0 0
- - - -
August 74 0 - 0 - 0 0
- - - -
September 75 0 - 0 - 0 0
- - - -
October 76 0 - 0 - 0 0
- - - -
November 77 0 - 0 - 0 0
- - - -
December 78 0 - 0 - 0 0
2022
Total       - 13,858,650 243,668,576 257,527,226 609,171,440
Appendix 6: Loan Amortization Schedule

Page 51
 201
2017 2018 2019 2020 2021 2022 2023 2024 2025
"TZS" 6
1,458,000, 9,272,880, 11,795,103, 12,502,809, 13,252,978, 14,048,156, 14,891,046, 15,784,509, 16,731,579,
Net Revenues 000 000 360 562 135 823 233 007 547
Accounts Receivable
% of Revenue 8% 8% 8% 8% 8% 8% 8% 8% 8%
Days Outstanding 30 30 30 30 30 30 30 30 30
363,042,00 1,108,294, 1,409,750,7 1,494,335,7 1,583,995,9 1,679,035,7 1,779,777,8 1,886,564,5 1,999,758,3
Accounts Receivable 0 618 54 99 47 04 46 16 87
- - - - -
(Increase)/Decrease from 363,042,00 745,252,61 301,456,13 100,742,14 106,786,67 -
Prev. Period 0 8 6 -84,585,045 -89,660,148 -95,039,757 2 1 113,193,871
Inventory
% of Revenue 8% 8% 7% 7% 7% 7% 7% 7% 7%
Inventory Turns 12 12 15 15 15 15 15 15 15
Inventory Days 30 30 24 24 24 24 24 24 24
363,042,00 1,108,294, 1,137,991,5 1,206,271,0 1,278,647,3 1,355,366,1 1,436,688,1 1,522,889,4 1,614,262,7
Inventory 0 618 72 67 30 70 41 29 95
- -
(Increase)/Decrease from 363,042,00 745,252,61
Prev. Period 0 8 -29,696,955 -68,279,494 -72,376,264 -76,718,840 -81,321,970 -86,201,288 -91,373,366
Other Current Assets
% of Revenue 1% 1% 1% 1% 1% 1% 1% 1% 1%
Days 4 4 4 4 4 4 4 4 4
133,529,47 169,849,48 180,040,45 190,842,88 202,293,45 214,431,06 227,296,93
Other CA Value 43,740,000 2 8 8 5 8 6 0 240,934,745
(Increase)/Decrease from - -
Prev. Period 43,740,000 89,789,472 -36,320,016 -10,190,969 -10,802,427 -11,450,573 -12,137,607 -12,865,864 -13,637,816
Accounts Payable & Accrued
Expenses
% of Revenue 9% 9% 9% 9% 9% 9% 9% 9% 9%
Days 31 31 31 31 31 31 31 31 31
377,971,92 1,161,706, 1,477,690,5 1,566,351,9 1,660,333,1 1,759,953,0 1,865,550,2 1,977,483,2 2,096,132,2
AP & Accrued Value 0 406 49 82 01 87 72 88 86
Increase/(Decrease) from 377,971,92 783,734,48 315,984,14 105,597,18 111,933,01
Prev. Period 0 6 3 88,661,433 93,981,119 99,619,986 5 6 118,648,997
               
Other Current Liabilities
% of Revenue 1% 1% 1% 1% 1% 1% 1% 1% 1%
Days 4 4 4 4 4 4 4 4 4
133,529,47 169,849,48 180,040,45 190,842,88 202,293,45 214,431,06 227,296,93
Other Current Liabilities 43,740,000 2 8 8 5 8 6 0 240,934,745
Increase/(Decrease) from
Prev. Period 43,740,000 89,789,472 36,320,016 10,190,969 10,802,427 11,450,573 12,137,607 12,865,864 13,637,816

Page 52
Appendix 7: Working Capital

Page 53
 Qt
"TZS" r.   2017 2018 2019 2020 2021 2022 2023 2024 2025
1,458,000, 9,272,880, 11,795,103, 12,502,809, 13,252,978, 14,048,156, 14,891,046, 15,784,509, 16,731,579,
Net Revenues 000 000 360 562 135 823 233 007 547
Monthly
Sales & Marketing Income
Manager 1 3,500,000 3,500,000 3,710,000 3,932,600 4,168,556 4,418,669 4,683,790 4,964,817 5,262,706 5,578,468
Marketing officer 1 2,000,000 2,000,000 2,120,000 2,247,200 2,382,032 2,524,954 2,676,451 2,837,038 3,007,261 3,187,696
Production
Supervisor 1 2,000,000 2,000,000 2,120,000 2,247,200 2,382,032 2,524,954 2,676,451 2,837,038 3,007,261 3,187,696
Production
Operators 11 800,000 8,800,000 9,328,000 9,887,680 10,480,941 11,109,797 11,776,385 12,482,968 13,231,946 14,025,863
Electrical
Technician 1 1,200,000 1,200,000 1,272,000 1,348,320 1,429,219 1,514,972 1,605,871 1,702,223 1,804,356 1,912,618
Mechanical
Technician 1 1,200,000 1,200,000 1,272,000 1,348,320 1,429,219 1,514,972 1,605,871 1,702,223 1,804,356 1,912,618
Admin Assistant 1 1,000,000 1,000,000 1,060,000 1,123,600 1,191,016 1,262,477 1,338,226 1,418,519 1,503,630 1,593,848
Security Guards 3 600,000 1,800,000 1,908,000 2,022,480 2,143,829 2,272,459 2,408,806 2,553,334 2,706,534 2,868,927
Drivers 2 600,000 1,200,000 1,272,000 1,348,320 1,429,219 1,514,972 1,605,871 1,702,223 1,804,356 1,912,618
136,200,0 288,744,0 306,068,6 324,432,75 343,898,72 364,532,6 386,404,60 409,588,88 434,164,21
Total Salary 00 00 40 8 4 47 6 3 6
Benefits
Percept (%) 10% 10% 10% 10% 10% 10% 10% 10% 10%
Total benefit 13,620,00 28,874,40
costs 0 0 30,606,864 32,443,276 34,389,872 36,453,265 38,640,461 40,958,888 43,416,422
Total S & M 149,820,0 317,618,4 336,675,50 356,876,03 378,288,59 400,985,91 425,045,06 450,547,77 477,580,63
Compensation 00 00 4 4 6 2 7 1 7
% of Revenue 10% 3% 3% 3% 3% 3% 3% 3% 3%
Hourly Personnel                  
Number of
employees 0 0 0 0 0 0 0 0 0
Average wages
per employee 250,000 265,000 280,900 297,754 315,619 334,556 354,630 375,908 398,462
Total wages 0 0 0 0 0 0 0 0 0
Benefits                  
Percept (%) 10% 10% 10% 10% 10% 10% 10% 10% 10%
Total benefit
costs 0 0 0 0 0 0 0 0 0
Total Wage Costs 0 0 0 0 0 0 0 0 0
Total Salary & 136,200,0 288,744,0 306,068,64 324,432,75 343,898,72 364,532,64 386,404,60 409,588,88 434,164,21
Wages 00 00 0 8 4 7 6 3 6
13,620,00 28,874,40
Total Benefits 0 0 30,606,864 32,443,276 34,389,872 36,453,265 38,640,461 40,958,888 43,416,422
Total S & M 149,820,0 317,618,4 336,675,50 356,876,03 378,288,59 400,985,91 425,045,06 450,547,77 477,580,63
Compensation 00 00 4 4 6 2 7 1 7
% of Revenue 10.3% 3.4% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9%

Page 54
Appendix 8: Personnel Expenses

Page 55
"TZS" # 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Polythene tubing and sheets -
black colour                  
Production units   40,500 243,000 291,600 291,600 291,600 291,600 291,600 291,600 291,600 291,600
Unit price (TZS)   10000 10600 11236 11910 12625 13382 14185 15036 15938 16895
405,000,00 2,575,800, 3,276,417,6 3,473,002,6 3,681,382,8 3,902,265,7 4,136,401,7 4,384,585,8 4,647,660,9 4,926,520,6
Subtotal Revenue   0 000 00 56 15 84 31 35 85 44
Polythene tubing and sheets - other non-black
colour                
Production units   40,500 243,000 291,600 291,600 291,600 291,600 291,600 291,600 291,600 291,600
Unit price (TZS)   10000.00 10600.00 11236.00 11910.16 12624.77 13382.26 14185.19 15036.30 15938.48 16894.79
405,000,00 2,575,800, 3,276,417,6 3,473,002,6 3,681,382,8 3,902,265,7 4,136,401,7 4,384,585,8 4,647,660,9 4,926,520,6
Subtotal Revenue   0 000 00 56 15 84 31 35 85 44
Net                      
Production units   40,500 243,000 291,600 291,600 291,600 291,600 291,600 291,600 291,600 291,600
Unit price (TZS)   8000.00 8480.00 8988.80 9528.13 10099.82 10705.80 11348.15 12029.04 12750.78 13515.83
324,000,00 2,060,640, 2,621,134,0 2,778,402,1 2,945,106,2 3,121,812,6 3,309,121,3 3,507,668,6 3,718,128,7 3,941,216,5
Subtotal Revenue   0 000 80 25 52 27 85 68 88 16
Rod                      
Production units   40,500 243,000 291,600 291,600 291,600 291,600 291,600 291,600 291,600 291,600
Unit price (TZS)   8,000 8,480 8,989 9,528 10,100 10,706 11,348 12,029 12,751 13,516
324,000,00 2,060,640, 2,621,134,0 2,778,402,1 2,945,106,2 3,121,812,6 3,309,121,3 3,507,668,6 3,718,128,7 3,941,216,5
Subtotal Revenue   0 000 80 25 52 27 85 68 88 16
                       
1,458,000, 9,272,880, 11,795,103 12,502,809 13,252,978 14,048,156 14,891,046 15,784,509 16,731,579 17,735,474
Net Revenue TZS 000 000 ,360 ,562 ,135 ,823 ,233 ,007 ,547 ,320
Appendix 9: Projected Revenue

Page 56
 20
"TZS" 16 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
1,458,000, 9,272,880, 11,795,10 12,502,80 13,252,97 14,048,15 14,891,04 15,784,50 16,731,57 17,735,474
Revenue 000 000 3,360 9,562 8,135 6,823 6,233 9,007 9,547 ,320
Cost of Revenue
                   
Water costs 6,642,000 6,774,840 6,910,337 7,048,544 7,189,514 7,333,305 7,479,971 7,629,570 7,782,162 7,937,805
7,120,872, 7,405,706, 7,701,935, 8,010,012, 8,330,413, 8,663,629, 9,010,174, 9,370,581, 9,745,405, 10,135,221
Raw Material cost 000 880 155 561 064 586 770 761 031 ,232
87,022,08 88,762,52 90,537,77 92,348,52 94,195,49 96,079,40 98,000,99 99,961,01 101,960,2 103,999,44
Utility cost 0 2 2 7 8 8 6 6 36 1
Total Direct Costs at 100% 7,214,536 7,501,244 7,799,383 8,109,409 8,431,798 8,767,042 9,115,655 9,478,172 9,855,147 10,247,15
capacity ,080 ,242 ,264 ,632 ,076 ,299 ,737 ,347 ,429 8,478
Assumed Capacity 25% 75% 90% 90% 90% 90% 90% 90% 90% 90%
901,817,0 5,625,933 7,019,444 7,298,468 7,588,618 7,890,338 8,204,090 8,530,355 8,869,632 9,222,442,
Total 10 ,181 ,938 ,669 ,269 ,069 ,163 ,112 ,686 630
45,270,90 297,659,4 391,007,6 427,596,0 467,167,4 509,948,0 556,180,5 606,125,1 660,060,8 718,286,71
Repair and Maintance 0 48 76 87 79 93 77 46 13 0
Insurance 3,371,866 6,971,782 7,199,831 7,427,880 7,655,929 7,883,977 8,112,026 8,340,075 8,568,124 8,796,173
Property Tax 2,606,274 5,212,547 5,212,547 5,212,547 5,212,547 5,212,547 5,212,547 5,212,547 5,212,547 5,212,547
Land Rent 1,303,137 2,606,274 2,606,274 2,606,274 2,606,274 2,606,274 2,606,274 2,606,274 2,606,274 2,606,274
954,369,1 5,938,383, 7,425,471, 7,741,311, 8,071,260, 8,415,988, 8,776,201, 9,152,639, 9,546,080, 9,957,344,
Total Direct Costs 87 232 265 456 497 960 587 154 444 334
                   
Other Expenses
Hourly Labour Costs 0 0 0 0 0 0 0 0 0 0
136,200,0 288,744,0 306,068,6 324,432,7 343,898,7 364,532,6 386,404,6 409,588,8 434,164,2 460,214,06
Salary Expenses 00 00 40 58 24 47 06 83 16 8
All other costs % of 36,450,00 231,822,0 294,877,5 312,570,2 331,324,4 351,203,9 372,276,1 394,612,7 418,289,4 443,386,85
Revenue 3% 0 00 84 39 53 21 56 25 89 8
1,127,019, 6,458,949, 8,026,417, 8,378,314, 8,746,483, 9,131,725, 9,534,882, 9,956,840, 10,398,53 10,860,945
Total Cost of Revenues 187 232 489 454 674 528 349 762 4,148 ,261
% of Revenue 77.3% 69.7% 68.0% 67.0% 66.0% 65.0% 64.0% 63.1% 62.1% 61.2%
Allocation of Cost of
Revenue between:
901,817,0 5,625,933, 7,019,444, 7,298,468, 7,588,618, 7,890,338, 8,204,090, 8,530,355, 8,869,632, 9,222,442,
Variable 10 181 938 669 269 069 163 112 686 630
225,202,1 833,016,0 1,006,972, 1,079,845, 1,157,865, 1,241,387, 1,330,792, 1,426,485, 1,528,901, 1,638,502,
Fixed 77 50 552 785 406 459 186 649 462 630
1,127,019, 6,458,949, 8,026,417, 8,378,314, 8,746,483, 9,131,725, 9,534,882, 9,956,840, 10,398,53 10,860,945
Total 187 232 489 454 674 528 349 762 4,148 ,261
Appendix 10: Projected OPEX

Page 57
 REQUIRED CAPITAL EXPENDITURE (CAPEX)        
US$
Investment Costs
CAPEX QTY Total Cost (US$) Total Cost (TZS)
I. LAND AND BUILDING 796,658,820
Value of the plot 2,003 89,022 200,300,000
Construction costs 846 265,048 596,358,820
II. PLAND AND MACHINERY 4,415,888,250
PE production line 1 1,280,000 2,880,000,000
Office equipment 1 20,000 45,000,000
Vehicles 2 60,000 135,000,000
Three phase connection fee (120 m, 2
poles) 1 762 1,714,500
Meter deposit fee 1 110 247,500
Step-down transformer 133 kV/380 V 1 15,698 35,320,500
Generator 400 kVA 1 136,047 306,105,750
Initial spares 1 100,000 225,000,000
Transport, installation and trial prod costs 1 250,000 562,500,000
Miscellaneous accessories 1 100,000 225,000,000
TOTAL PROJECT COST       5,212,547,070
PROPOSED LOAN STRUCTURE      
Interest (Term loan)   19.5% Annual TZS
Tenure 6 Years
Grace Period 1 Years
Interest (Over Draft)   0% Annual TZS
Appendix 11: CAPEX Required

Page 58
Page 59