Elomo BP - Final2

Project Proposal for Special Education
and Rehabilitation Center for the Disabled
Proposed Services at the Center include:

* Special Education School and skill training center
* Physiotherapy, Individualized & Group Education, Hydrotherapy, Psychological Counseling
* Family consultation center, Developmental Evaluation and Guidance Counseling
* Adaptive Recreation and Fitness Facilities, Basketball and Volleyball Development
* Prosthetic services that include arm, hand, foot and leg fitting
By: Elomo Qiltu Foundation
Presented to: Dire Dawa Administration
December 2019
Project Proposal for Special Education and Rehabilitation Center, by Elomo Qiltu Foundation Dire Dawa, 2019
Contents
1. Introduction ......................................................................................................... 3
1.1. The Proposed Project ................................................................................... 4
1.2. Project Location & land allocation ........................................................... 4
1.3. Promoter’s Profile .......................................................................................... 5
2. Project’s Description and Objective ........................................................... 6
2.1. Project Description ........................................................................................ 6
2.2. Project Objective............................................................................................ 6
3.3. Project Strategies .......................................................................................... 7
4. Capacity and Service Program ..................................................................... 7
4.1. Capacity ............................................................................................................. 7
4.2. Service Program ............................................................................................. 8
4.3. Source of Finance and Cost Estimation ................................................ 8
4.4. Organizing and Management .................................................................... 8
4.5. Project Output ................................................................................................. 8
4.6. Implementation schedule ........................................................................... 9
5. Financial Analysis .............................................................................................. 9
5.1. Building, and Civil Works ............................................................................ 9
5.2. Furniture and Equipment .......................................................................... 10
A. Operating Cost ................................................................................................. 11
5.3. Manpower Requirement ............................................................................ 11
Table 7: Other fixed asset ...................................................................................... 12
5.4. Return and Cost Estimates ...................................................................... 12
5.4.1. Social and Economic Return Estimates ........................................... 12
5.4.2. General and Administrative Expenditures ...................................... 13
5.4.3. Operating Cost Estimates ..................................................................... 13
6. Financial Assumption ..................................................................................... 14
7. Fixed Investment Costs ................................................................................ 14
8. Total Investment Cost ................................................................................... 14
9. Profitability ......................................................................................................... 17
10. Spillover Benefits............................................................................................. 17
1|Page
0. Executive Summary
This project proposal is prepared with the objective of developing a
Special Education and Rehabilitation Center in Dire Dawa City. The
design of the center includes facilities for Special Education School,
Skill Training Center, Physiotherapy, Family Consultation Center,
Adaptive Recreation and Fitness Facilities with Basketball and
Volleyball Development and Prosthetic services that include arm, hand,
foot and leg fitting.
The total investment cost of the project is estimated at birr

326,685,423.33. The project is initiated by Elomo Qiltu Foundation, a
local NGO working in different areas of development issues in various
regions of Ethiopia with special emphasis to the works of empowering
the disabled.
The financing approach to be followed by the Foundation in realizing

this project, involves a public private partnership (PPP) approach that
involves the creation of a joint venture organization to be financed and
run by the contributions of different international and local government
organizations, non-governmental organizations and private actors.
The project is financially viable with an internal rate of return (IRR) of

81% and a net present value (NPV) of ETB 355,292,604, discounted at
10%. The investment cost and income statement projection are used
to project the pay-back period, the project will fully recover the initial
investment and working capital within three years.
The major components of the project are:

 Construction of buildings to serve project purposes
 Procurement and installing equipment, facilities and fixing
assets
 Recruiting and assigning man power
The proposed urban center project is planned to be built on a 30,000

meter squared land located at one of the major city corners of Dire
Dawa town.
2|Page
1. Introduction
According to World Health Organization, 10% of the total populations

in developing countries are persons with disability. Without access to
basic healthcare, primary education or livelihood opportunities, many
people with disabilities are locked in a vicious cycle of poverty and
disability. In addition, poverty places millions of people at risk of
avoidable disability through malnutrition, unsafe living and working
conditions and inadequate healthcare and sanitation. However, in
more than 50% of cases, a disability or impairment is preventable.
The 1997 National Census of Ethiopia indicates that only 1.17% of

people with disabilities have got access to educational opportunity,
while the rest are left aside at home because of lack of awareness in
their family and community. Our community is considering them as
marginalized and voiceless; many persons with disabilities are
deprived, even their basic human rights and are largely either ignored
or excluded from development processes. Education is one of
fundamental right of citizens but children with disability and other at
risk groups are now out of schools.
In response to these problems, Elimo Qulto foundation is now planning

to take remedial action for children with disability and at risk group
through Educational opportunity, Health services including prevention,
capacitating them through Income Generating Activities to ultimately
make them a part of the community and development.
Dire Dawa City, being the second largest city of Ethiopia, is also one of
the fastest growing cities in Ethiopia, with an estimated population of
more than half a million people. The city is acknowledged to being the
center of trade and industry in east Ethiopia.
3|Page
So far, there are no Special Education and Rehabilitation Center

Development projects in Dire Dawa. However, as a framework for its
development, the city has master plan prepared with vision to see Dire
Dawa (attractive cozy & globally competitive which is endowed with
good governance and strong and sustainable economy specializing on
trade, industry & high quality service sectors).
As part of implementing the new structural plan, the city has identified
strategic investment and infrastructure areas, from which Special
Education and Rehabilitation Center development is one of the yet
undeveloped sector. Therefore, the promoter proposes to start up
this project with standard design on a compound area of 5,000 meter
square.
1.1. The Proposed Project
The proposed project intends to construct Special Education and

Rehabilitation Center on a 5,000 meter squared land located at one of
the major city corners of Dire Dawa town.
The proposed Special Education and Rehabilitation Center will have its
own standard design. It can serve different services to the disabled
community and is expected to satisfy the prevailing shortage of such
services in the town.
1.2. Project Location & land allocation
The proposed Special Education and Rehabilitation Center project is

planned to be built on a 5,000 meter squared land to be located at one
of the major city corners of Dire Dawa town.
4|Page
Table: Land Allocation

Description Area (m2) %
Special Education School and skill training
center 20.00% 1,000.0
Rehabilitation center 30.00% 1,500.0
Adaptive Recreation and Fitness Facilities 25.00% 1,250.0
Prosthetic services area 10.00% 500.0
Green and Open Space 8.00% 400.0
Infrastructure Space, Streets, sideways, etc. 7.00% 350.0
Development area (Total) 100% 5,000.0
1.3. Promoter’s Profile
Name: Elomo Qiltu Foundation

Address: Dire Dawa City
Contact Person
Name: - Abdurahaman Mohmmed,
Position: - Executive Director, Elomo Qiltu Foundation
Mobile: - 0940028131/ 0015877782798
E-mail:-Abdurahaman761994@gmail.com
Elimo Qulto foundation was established by strong humanitarian

individual cofounders with long time experience working in similar
charity organizations.
Vision
 Creating potentially independent, self-possessed, healthy and
productive citizens Mission
 Changing the life of jeopardy community groups through
facilitating educational, health and capacity building services
5|Page
with strong global partnership of local community and schools

with overseas likeminded community members and schools.
2. Project’s Description and Objective
2.1. Project Description
The proposed development is a Special Education and Rehabilitation

Center project which intended to be constructed in Dire Dawa City. The
center shall include facilities for Special Education School, Skill
Training Center for the disabled, Physiotherapy, Family consultation
center, Adaptive Recreation and Fitness Facilities, Basketball and
Volleyball Development and Prosthetic services that include arm, hand,
foot and leg fitting.
2.2. Project Objective
3.1. GENERAL OBJECTIVE

 To alleviate the life of people with disability and at risk groups
through providing inclusive/integrated care and support
3.2. SPECIFIC OBJECTIVE

 Create conducive formal inclusive learning environment for 500
children with disability and 200 victims of spinal cord injury per
year
 Organize one technical and vocational training center for 180
people with special needs and intellectual disorder due to victims
of spinal cord injury
 Giving health support for 200 disabled children and 100 spinal
cord injured people
 Create good global partnership with different foreign countries to
exchange basic skills, training
6|Page
 Establish one rehab center to cure and prevent more than 300
blindness, deafness and spinal cord injured people in each year
 Establish Adaptive Recreation and Fitness Facilities, Basketball
and Volleyball Development and
 Establish a facility for Prosthetic services that include arm, hand,
foot and leg fitting
3.3. Project Strategies
The Strategies that will be employed to meet the stated objectives will
be
a) Employee local labor force intensively
b) Purchase and mobilize all the required construction material
before the commencement of construction
c) Employ labor intensive technologies and local building material.
d) Establish a well-organized management system.
4. Capacity and Service Program
4.1. Capacity
Based on the construction plan, the envisaged project will have:

 Special Education School and skill training center for the
disabled,
 Physiotherapy, Individualized & Group Education, Hydrotherapy,
Psychological Counseling
 Family consultation center, Developmental Evaluation and
Guidance Counseling
 Adaptive Recreation and Fitness Facilities, Basketball and
Volleyball Development
 Prosthetic services that include arm, hand, foot and leg fitting
7|Page
4.2. Service Program
It is expected that within three years time the construction works and
procurement of the necessary materials and equipment will be
finalized.
Upon finalization, the project will start operation at its full capacity. As
the project is unique and first of its kind in the town, no time will be
required for market penetration and customer attraction.
4.3. Source of Finance and Cost Estimation
The total investment cost of the project is estimated at birr

326,685,423.33. The financing approach to be followed by Elomo
Foundation in realizing this project, involves a public private
partnership (PPP) approach that involves the creation of a joint
venture organization to be financed and run by the contributions of
different international and local government organizations, non-
governmental organizations and private actors.
4.4. Organizing and Management
This project will create a job opportunity for about 20 permanent

management staff. During the construction time on average 150
permanent workers and up to 1500 temporary worker shall be employed
right before the project starts its operation.
4.5. Project Output
The output the proposed Special Education and Rehabilitation Center

development project is the realization of high quality services for the
disabled including Special Education School, Individualized & Group
Education, Hydrotherapy, Psychological Counseling services, Family
consultation center, Adaptive Recreation and Fitness Facilities, Basketball
8|Page
and Volleyball Development as well as Prosthetic services that include

arm, hand, foot and leg fitting.
4.6. Implementation schedule
Construction of the project facilities will start right after the handover of
the required land for the construction and it will take a maximum three
years.
5. Financial Analysis
5.1. Building, and Civil Works
The total construction cost of the building is estimated to be birr

319,636,800.00. Details of specification and cost estimates are
annexed here with.
Table 1: Building and construction

Unit Quantity
No Description cost/m2 (m2) Total cost
Special Education School
1 and skill training center 60,480.00 1,000.00 60,480,000.00
2 Rehabilitation center 90,720.00 1,500.00 136,080,000.00
Adaptive Recreation and
3 Fitness Facilities 75,600.00 1,250.00 94,500,000.00
4 Prosthetic services area 30,240.00 500.00 15,120,000.00
5 Green and Open Space 15,120.00 400.00 6,048,000.00
Infrastructure
development (Streets,
6 sideways, etc. ) 21,168.00 350.00 7,408,800.00
Total 293,328.00 5,000.00 319,636,800.00
9|Page
5.2. Furniture and Equipment
The reception and office rooms need to be furnished with standard and
quality furniture and facility in order to provide efficient service.
Moreover, it needs to have a stand by diesel generator for its complete
and quality service delivery. The cost of these furniture and equipment
is shown below;
Table 2: Office Furniture and fixtures

No Description Unit Quantity Unit Cost Total Cost
1 Office table No 2 8,600.00 17,200.00
2 Office Chairs No 10 2,150.00 21,500.00
Computer With
3 Printer No 2 43,000.00 86,000.00
4 Shelf No 1 12,900.00 12,900.00
Other Fixed
5 Stationary Set 1 15,050.00 15,050.00
6 complete sofa seat 1 43,000.00 43,000.00
7 File cabinet 2 12,900.00 25,800.00
Total 221,450.00
Table 3: Machines and equipment
N0 Description Unit Qty Unit cost Total cost

1 Vehicle No 3 900,000 2,700,000
Stand-by
3 generators No 4 800,000 3,200,000
Total 5,900,000
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Table 4: Depreciation Cost

Present Depreciation Annual
No Description value Rate depreciation
1
Building and Other infrastructure 319,636,800 2.50% 7,990,920
2
Office Furniture and Fixtures 221,450 10% 22,145
3
Machines and equipment 5,900,000 10% 590,000
Total 325,758,250 8,603,065
A. Operating Cost
5.3. Manpower Requirement
The list of manpower and labor cost required for the project’s standard
and efficient service delivery are indicated in the table below;
Table 5: Management Staff Salary and Wages

Monthly Annual
No Description Unit Quantity Salary Salary
1 Manger No 1 30,000 360,000
2 Accountant No 1 15,000 180,000
3 cashier No 1 8000 96,000
4 secretary No 1 9000 108,000
5 Janitors 2 1200 28,800
6 Guards 2 1200 28,800
7 Gardner 1 500 6,000
8 others 20 100,000
Total 907,600
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Table 6: Utilities Expense

No Description Monthly Expense Annual Expense
1 Electric Expense 100000 1,200,000
2 Wat Water Expense 60000 720,000
3 Telephone Expense 30000 360,000
Total 2,280,000
Table 7: Other fixed asset
No Description Cost in birr

1
Vacuum cleaner 144,408.00
2
Floor carpet 1,210,000.00
3
Clearing material 808,060.00
Total 2,162,468.00
5.4. Return and Cost Estimates
5.4.1. Social and Economic Return Estimates
Estimation of the financial values for the services to be rendered by

the project was formulated using a standard economic valuation
method, which calculates the financial equivalents of the social and
economic benefits/values that the country and the society would get in
return for the services rendered by the project to the general public.
Table 9: Financial value of the social and economic benefits

Project Years
No. Source of benefits 1 2 3 4 5
Special Education
School and skill
1 training center 12,579,848.00 12,579,856.00 12,579,864.00 13,418,528.00 13,418,536.00
2 Rehabilitation center 5,990,403.81 5,990,407.62 5,990,411.43 6,389,775.24 6,389,779.05
3 Adaptive Recreation 13,837,832.80 13,837,841.60 13,837,850.40 14,760,380.80 14,760,389.60
12 | P a g e
and Fitness Facilities
Prosthetic services
4 area 11,980,807.62 11,980,815.24 11,980,822.86 12,779,550.48 12,779,558.10
Total 44,388,894.23 44,388,924.46 44,388,954.69 47,348,242.51 47,348,272.74
5.4.2. General and Administrative Expenditures
Annual General & Administrative expenditures of the project are

estimated in the table below;
Table 10: Administrative Expenditures

No Description Annual Expenditure
1
Salaries & Benefits 151,266.67
2
Utilities 380,000.00
3
Repair & Maintenance 400,000.00
4
Miscellaneous expense 20,000.00
5
Employee and fringe benefit 30,253.33
TOTAL 427,490.00
5.4.3. Operating Cost Estimates
Operating cost include all the necessary expenditures for the day to
day activities of the project, of which labor cost and input costs are the
main ones. As has been described in the previous sections, the nature
of the business is not of seasonal and, hence, it has 365 effective
working days within a year. It is therefore, with this consideration that
the required operating costs are calculated for the life of the project,
which includes the following cost categories.
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Table 11: Operational cost

No Description Cost in birr
1 Office consumables
600,000.00
2 Repair and maintenance
2,400,000.00
3 Employee and fringe benefit
55,362.50
4 Miscellaneous expense
120,000.00
Total
3,175,363
6. Financial Assumption
The financial analysis of the project is based on the data presented in

the previous chapters and the following assumptions:-
 Life of the project = 5years, 1 year of construction period and

6 years of operating period.
7. Fixed Investment Costs
Table 11: Fixed Investment Cost
No. Cost Items Total Cost (in Birr)
1 Building and Other infrastructure 319,636,800.00
2 Office Furniture and Fixtures 221,450.00
3 Machines and equipment 5,900,000.00
Total Fixed Investment 325,758,250.00
8. Total Investment Cost
The total investment cost of the project is estimated at Birr

326,685,423. The major breakdown of the total investment cost is
shown in the Table below.
14 | P a g e
Table 12: Summary of Total Investment Costs

Description Cost in Birr
Fixed investment cost 325,758,250
Building & Construction 3,950,000
Green and Open Space 6,048,000
Infrastructure development (Streets, 7,408,800
sideways, etc. )
Office Furniture and Fixtures 221,450
machinery and equipment 5,900,000
Working capital 927,173
Salaries & Benefits 50,422.22
Utilities 126,666.67
Repair & Maintenance 133,333.33
Miscellaneous expense 6,666.67
Employee and fringe benefit 10,084.44
Office consumables 600,000.00
Total Project Cost 326,685,423
Table 15: Profit and Loss Statement

Description Project Years
1 2 3 4 5
financial value of 44,388,894 44,388,924 44,388,955 47,348,243 47,348,273
social & economic
return
Operating Expenses 3,175,363 3,175,363 3,175,363 3,175,363 3,175,363
Gross Profit 41,213,532 41,213,562 41,213,592 44,172,880 44,172,910
Gross margin (%) 92.85% 92.85% 93.29% 93.29%
Administrative Costs 427,490 427,490 427,490 427,490 427,490
Profit before tax and 40,786,042 40,786,072 40,786,102 43,745,390 43,745,420
interest
Depreciation 8,603,065 8,603,065 8,603,065 8,603,065 8,603,065
EBITDA (Earning befor 49,389,107 49,389,137 49,389,167 52,348,455 52,348,485
tax, interest and
depreciation)
Profit tax (35%) 0 0 0 0 0
Net profit 40,786,042 40,786,072 40,786,102 43,745,390 43,745,420
15 | P a g e
Table 16: Cash Flow Statement

Cash in flow 0 1 2 3 4 5
Owners' equity 326,685,423.33
Existing Bank Loan 0
Additional Bank
0
Loan
Net Profit 0 40,786,042 40,786,072 40,786,102 43,745,390 43,745,420
Depreciation 8,603,065 8,603,065 8,603,065 8,603,065 8,603,065
Total Cash in flow 326,685,423 49,389,107 49,389,137 49,389,167 52,348,455 52,348,485
Cash out flow
Replacement 0 0 0 0 0
loan repayment 11,433,990 11,433,990 11,433,990 11,433,990 11,433,990
Capital Expenditure 325,758,250 - - - - -
Working capital 927,173 - - - - -
Existing SG&A
0
Expenses
Pre-operating
expenses and 0
interest
Total Cash out
326,685,423 11,433,990 11,433,990 11,433,990 11,433,990 11,433,990
flow
Net Cash Flow 0 37,955,117 37,955,147 37,955,177 40,914,465 40,914,495
Cash balance 38,882,290 76,837,437 114,792,615 155,707,080 196,621,575
Table 17: Beginning Balance Sheet Statement

Description Investment Production Year
ASSETS 0 1 2 3 4 5
Current Assets
Cash 927,173 38,882,290 76,837,437 114,792,615 155,707,080 196,621,575
Inventory 0 0 0 0 0 0
Total Current 927,173 38,882,290 76,837,437 114,792,615 155,707,080 196,621,575
Assets
Fixed Asset
Building and Other 319,636,800.00 311,645,880 303,654,960 295,664,040 287,673,120 279,682,200
infrastructure
Office Furniture and 221,450.00 199,305 177,160 155,015 132,870 110,725
Fixtures
Machines and 5,900,000.00 5,310,000 4,720,000 4,130,000 3,540,000 2,950,000
equipment
Total Fixed Asset 325,758,250 317,155,185 308,552,120 299,949,055 291,345,990 282,742,925
Total Asset 326,685,423 356,037,475 385,389,557 414,741,670 447,053,070 479,364,500
LIABILITIES
Sub Total 0 0 0 0 0 0
CAPITAL
Owner's Equity 326,685,423 326,685,423 326,685,423 326,685,423 326,685,423 326,685,423
Retained Earnings 0 40,786,042 81,572,114 122,358,216 166,103,606 209,849,026
Earnings 40,786,042 40,786,072 40,786,102 43,745,390 43,745,420
16 | P a g e
Sub Total 326,685,423 367,471,465 408,257,537 449,043,639 492,789,029 536,534,449

Total Liability & 326,685,423 367,471,465 408,257,537 449,043,639 492,789,029 536,534,449
Capital
Net Worth 326,685,423 356,037,475 385,389,557 414,741,670 447,053,070 479,364,500
9. Profitability
According to the projected income statement, the project by itself will

start generating economic profit in the first year of operation.
Important ratios such as profit to total sales, net profit to equity

(Return on equity) and net profit plus interest on total investment
(return on total investment) show an increasing trend during the life-
time of the project.
The income statement and the other indicators of profitability show

that the project is viable.
10. Spillover Benefits
This project will create a job opportunity for about 80 permanent

management staff. During the construction time on average 150
permanent workers and up to 1500 temporary worker shall be employed
right before the project starts its operation.
In addition to creation of employment opportunity, the construction of

such projects will contribute to the development of the Tourism industry.
17 | P a g e

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Project Proposal for Special Education

and Rehabilitation Center for the Disabled

Proposed Services at the Center include:

By: Elomo Qiltu Foundation

Presented to: Dire Dawa Administration

The total investment cost of the project is estimated at birr

The financing approach to be followed by the Foundation in realizing

The project is financially viable with an internal rate of return (IRR) of

The major components of the project are:

The proposed urban center project is planned to be built on a 30,000

According to World Health Organization, 10% of the total populations

The 1997 National Census of Ethiopia indicates that only 1.17% of

In response to these problems, Elimo Qulto foundation is now planning

So far, there are no Special Education and Rehabilitation Center

1.1. The Proposed Project

The proposed project intends to construct Special Education and

1.2. Project Location & land allocation

The proposed Special Education and Rehabilitation Center project is

Table: Land Allocation

Development area (Total) 100% 5,000.0

1.3. Promoter’s Profile

Name: Elomo Qiltu Foundation

Elimo Qulto foundation was established by strong humanitarian

with strong global partnership of local community and schools

2. Project’s Description and Objective

2.1. Project Description

The proposed development is a Special Education and Rehabilitation

2.2. Project Objective

3.1. GENERAL OBJECTIVE

3.2. SPECIFIC OBJECTIVE

3.3. Project Strategies

4. Capacity and Service Program

Based on the construction plan, the envisaged project will have:

4.2. Service Program

4.3. Source of Finance and Cost Estimation

The total investment cost of the project is estimated at birr

4.4. Organizing and Management

This project will create a job opportunity for about 20 permanent

4.5. Project Output

The output the proposed Special Education and Rehabilitation Center

and Volleyball Development as well as Prosthetic services that include

4.6. Implementation schedule

5.1. Building, and Civil Works

The total construction cost of the building is estimated to be birr

Table 1: Building and construction

5.2. Furniture and Equipment

Table 2: Office Furniture and fixtures

Table 3: Machines and equipment

N0 Description Unit Qty Unit cost Total cost

Table 4: Depreciation Cost

5.3. Manpower Requirement

Table 5: Management Staff Salary and Wages

Table 6: Utilities Expense

Table 7: Other fixed asset

No Description Cost in birr

5.4. Return and Cost Estimates

5.4.1. Social and Economic Return Estimates