PROJECT PROPOSAL FOR MODERN SPECIALTY HOSPITAL

PROJECT TO BE IMPLEMENTED IN ADDIS ABABA CITY

PROMOTER;- GLORY IMPORT AND EXPORT TRADING PLC

JUNE, 2021
ADDIS ABABA, Ethiopia

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Executive summary
1 Project name Modern Specialty hospital
2 Project owner GLORY IMPORT AND EXPORT TRADING PLC
3 Nationality Ethiopia
ADDIS ABABA
4 Project location
5 Project Composition Serving different patient especially Head and
Neck surgery
6 Premises required 10,000 M2
Eth. Birr 309,982,798.4 from this amount
7 Total initial investment 30%(92,994,839.52) financed by the owner
capital equity and 70%( 216,987,958.9) financed by
the bank loan
The total man power required for the plant will
8 Employment be 171 employs
opportunity  Permanent workers 162
 Skilled 158
 Un skilled 4
 Temporary 9
 Skilled 6
 Unskilled 3

9 Technology Various basic surgical sets, diagnostic sets,

Computer, Tv, Toy and other material and other
materials used in the hospital
10 Give better quality health service, source of
Benefits of the factory revenue, employment opportunity, benefit for
for the city the local community, and stimulate the local
administration /country economy and technology transfer.

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1. INTRODUCTION

The present fast and double digit economic growth of Ethiopia especially demands an equivalent
growth in service sector. The sector should expand rapidly to support the overall economic
development sustainably.

The County Council believes the best way to meet the demand for places for pupils from the
health on the site we believe that learners come first. We want our people to enjoy better health
services, make good progress, and achieve high standards. To do this, we need to ensure that best
Hospitality offer first facilities, and have sufficient places available, so as to offer real choice,
good access, and the best environment in which to serve. This is in keeping with our statutory
duty and strategic priorities to develop additional Hospital places. Put simply we want to ensure
that our Hospital are amongst the best available and offer the right number of places at the time
they are needed.
As part of our strategic vision, we have identified a need for build functional and modern ORL_
Head and Neck Specialized Surgical center of 50 bed capacity.
The County Council believes the best way to meet this emerging demand for places is to develop
another Hospital.

Generally this project profile envisage the establishment of a special Head and Neck Surgical
center, the first of its kind, with an initial bed capacity of 50 bed. It provides a broad range of
medical service to the society . this include surgical and medical treatment of various Head and
Neck pathologies and diagnostic facilities including distance about 23km from Addis Ababa.
The market study shows that there is no similar surgical center neither in Addis Ababa nor in the
rest of Ethiopia.

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1.1 Background of the promoter
GLORY IMPORT AND EXPORT TRADING PLC is engaged in different business spatially
Hospital on health service activity (especially on Head and Neck Surgical) a in abroad. The
promoter intended to create forward and backward linkage with the service by filling the gap for
the Health. The owner of this project hope this project to be the first of many other
developmental projects to follow as they look forward to share the responsibility of fighting
transmitted disease , reducing unemployment of his home nation. His accumulation diversified
skills in the area and also adopted working with many people. Thus, it is these experiences which
primarily motivated this investor to develop the inception of this project idea.

GLORY IMPORT AND EXPORT TRADING PLC is visionary and ambitious business, who
is committed to make a difference in traditional (Low standard) health service practice by
approaching it in an innovative way or more sophisticated way. He is currently seeking to
establish a modern Specialty center hospital base the country is looking for; as well as meets the
growing demand of the product in most wide ranging like Health sectors.

1.2 Objective of the project

The projects are out to after quality living standard and indications to the health equip the
community with the correct doctrine such as;-

 To construct enough class room for patient serving purpose.

 To provide surgical and medical management of head and neck for all.
 To implement the correct government health policy and strategy.
 Diagnostic facilities including C-T and MRI.
 Provide relief from pain and other distressing symptoms
 affirm life and regard dying as a normal process with intend neither to hasten or postpone
death

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 Integrate the psychological and spiritual aspects of patient care offer a support system to
help patients live as actively as possible until death.
 Offer a support system to help the family cope during the patient’s illness and in their own
bereavement.
 Use a team approach to address the needs of patients and their families,including
bereavement counseling, if indicated

1.3 The Economic significance of the project

The envisaged project deemed to contribute to the economic development of the nation in
general and the city in specific with following ways;

A. Supply quality Health Service

The Specialty center Hospital will serve with quality service its customers

B. Source of Revenue
As public policy of any nation, the government collects different forms of taxes from different
business organization and individual. Among the different forms of taxes, business income
taxes.VAT and payroll taxes are collected from undertaking business activities. Therefore, the
project will serve as sources of revenue for both the city and nation in general.

C. Employment opportunity

One of the problems that our country faced is unemployment. Therefore, the current objective of
the government is working on tackling the problem of unemployment and fostering the
development process either through creating self employment or employment in other
organization. Hence, this project will hire employed both permanently and temporally around
171 persons.

D. Benefit for the local community

As a corporate responsibility the company will engage in different development activities on the
surrounding areas. This will better worth the community and contribute for the development of

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the cities. The definite benefit of the will be to provide and administer effective comprehensive
health care service with the highest level of competency and compassion. This unique
specialized surgical center will serve both the region and the country.

E. Stimulate the local and National Economy

The Specialty center Hospital has positive externality in the zone that will encourage the
economic movement of local economy relationship and transaction among different actors.

F. Technology Transfer
By implementation modern and new technology in ORL-Head and Neck Surgery Specialized
Surgical center service, the project will transfer knowledge to innovation of the nation.
Technology used for research of science and technology is being considered for the Hospital.

2. Location and Premises required

2.1 Location

The envisioned project is planned to be located in Addis Ababa city administration, the main
justification behind the selection of this location are:

 Strategically located to the central of nation

 Relatively advanced development in infrastructure (power, water, Telephone
internet, road etc.
 All road to the nearest market outlets
 Accessibility of skilled labor force
 Conducive investment policy and governance
 Environmentally fit to Health care.
 Premises required

The total land holding of the project is 10,000 m2 the premises required planned as follows in
table below

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 Land use plan
The factor plant has already acquired a total of 1 hectares, which is equivalent to 10,000m2 areas
of land. This land planned to use as follow indicated in table below

Table premises required and use plan

Table, Premises required and land Use plan

SN Description Land requirement (M2)

Production Hall

1 Surgical room
1250
2 ICT Room
250
3 Office
750
4 Medical support Staff Room
1250
5 Guest Room
1000
6 Libratory
750
7 Drug store room
1000
8 Nursing service Room

2000
9 Toilet

500
10 Clinic
1250
13 Total
10000

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 66.67 M2 *60 M2

Office
10 Surgical room
Nursing service Room

ICT Room
Guest House

Libratory
Staff Medical support Toilet

Story

Drug store room

60 M2

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3. Target beneficiaries
The target beneficiaries of the project would be the terminally ill especially Head and neck
problem people in the community especially the economically marginalized of the society

3.1 Serviced offered by the Hospital

As described earlier, Specialty Center Hospital is a full-fledged general hospital. established
with an aim of providing modern medical care at affordable costs. Keeping the hospital as
the base, various community health programs are operated.
The hospital has a full-fledged, free Pain and Palliative Care unit with trained Physicians
to take care of the terminally ill cancer patients in the hospital and at their homes. Teams of
doctors and nurses conduct medical and health camps in association with NGO’s in the
villages routinely. The medical and laboratory services are free for the patients in the
camps. The hospital participates in the immunization programs of the Health Department on a
regular basis. The hospital, in association with the Government Hospital, a sister institution
located in the nation, organizes awareness programs in the hospital and in the community.
Community visits, especially targeted towards prenatal and anti-natal women are
undertaken by teams of nursing students to create awareness among expectant mothers on
their health needs.
3.1.1 NO. OF PATIENTS
On an average, the hospital provides medical services to as many as 450 outpatients and about
200 in-patients per day, of which the majority are low-income marginalized people.
3.1.2 DEPARTMENTS AND SPECIALITIES
The hospital currently has all the important specialty departments such as General Medicine,
Head and Neck Specialty Surgery, General Surgery, Gynaecology, Paediatrics, Opthalmology,
Psychiatry, Orthopaedics, ENT Surgery, Dermatology, Psychiatry, Dentistry besides super
specialty Departments such as, Urology and Nephrology. The Cardiology and

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Cardiothoracic surgery departments of the hospital are a separate entity, known as Specialty
center Institute, and are located in the same campus.

3.2 Hospital Infrastructure

 The hospital will have a capacity for 50 beds of which 30 will be operational beds and the
rest will be transit beds.
 The beds will be broadly classified into beds in the wards and Transit beds that include -
Emergency, ICU, Isolation and End of Life care areas.
 The medical services and support facilities will include:
Diagnostics
 Radiology & imaging services – C Arm, Digital X-ray, Ultrasound, Endoscope, EEG, ECG,
Echo Doppler.
 State-of-the-art Lab for Bio-chemistry, Microbiology, Pathology & Haematology.
Ambulatory Care Services
 Critical Care
 Emergency Care
 ICU
 Lab Medicine
 Operation Theatres - 2
Medical Support Facilities
 Ambulance (2 no’s)
 Cold (Body) Storage
 Medical Records
 Pharmacy (OP & IP)
 Physiotherapy
Support Service
 CSSD
 F&B
 Front Office (Admissions & Reception)

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  House Keeping
 IT
Administrative Services
 Finance & Secretarial
 HR
 Materials
 Security
4. MARKET STUDY AND SERVICE CAPACITY
4.1 MARKET STUDY

4.1.1 Present and Projected Demand

Health service provision is one the most priority service areas for the population. At

present, health service providers in Addis Ababa are Federal Government Agencies,

Addis Ababa Health Bureau, Non Governmental Organizations (NGOs), factories, and

the private entrepreneurs. The number of registered and licensed health facilities by the

City Administration in 2004/05 is 603. The distribution of health facilities by their type is

shown in Table

NUMBER OF HEALTH FACILITIES IN ADDIS ABABA CITY BY TYPES OF

OWNERSHIP (2004/2005)

Table

Owner ship type Number of health facilities

Hospital Health Clinic Health Total
Center Post
Addis Ababa Health Bureau 5 23 9 34 71
Ministry of Health 4 0 . 0 4
Addis Ababa University 1 0 0 0 1
Ministry of defense 2 0 0 0 2
Police force 1 0 0 0 1
Total Government 13 23 9 34 79

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 % Share Government 46.43 88.46 1.76 80.95 13.10
NGO 2 2 29 8 41
%Share NGO 7.14 7.69 5.72 19.05 6.80
Factories 0 0 102 0 102
% Share factories 0 0 20.02 0 16.92
Private sector 13 1 376 0 390
% Share private 46.43 3.85 74.16 0 64.68
Total 28 26 507 42 603
Source: Some Health Service Information, Addis Ababa Bureau of Health, 2004/05
(Unpublished)

As can be seen from Table 3.1 the distribution of health facilities is:

 28 hospitals,
 26 health centers,
 507 clinics, and
 42 health posts.

The health service coverage and quality is improving in the city from time to time.
However, health service supply is still below the standards established by the Ministry of Health.
According to the standard set by the Ministry of Health; one district hospital is for 250,000
people, one regional hospital for 1,000,000 people and one specialized hospital for
5,000,000 million people. Hospitals in Addis Ababa are not limited to providing services for the
people residing in the city only. As the city is the center of the country in many socio-economic
aspects of peoples’ life and due to the expectations that better health services are available in
Addis Ababa than in other regional centers, health facilities in Addis Ababa provide service to
significant number of population in the surrounding areas out side the city and other
regional states. As a result, practically high shortage of hospital services is observed. One can not
understand the actual health service status in Addis Ababa, by comparing the city’s health
facilities with the size of population in the city. This hides the practically existing situation.
Health facilities in the city provide service to the population in the city and also roughly to an
equal number of people from the surrounding areas and all regional states. Therefore, itwill
be more realistic to evaluate the health service coverage and quality of services provided in

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Addis Ababa from this perspective. Considering the population of Addis Ababa and the expected
number of potential service seekers from the surroundings and regional states for the year
2005, and using the standards set by the ministry of health, 2 more hospitals were needed in
2005 in addition to the existing 28 hospitals.

4.2 Projected Demand

In projecting the demand for hospitals, the projected population figures for Addis Ababa by
CSA, the above mentioned potential service demanding population from the surroundings
of Addis Ababa and regional states, the standards set by the Ministry of Health regarding
health service facilities were considered. Accordingly, assuming that the present existing
hospitals will continue operating, the projection for additional required hospitals is shown in
Table

TABLE PROJECTED DEMAND FOR TOTAL ADDITIONAL HOSPITALS

Year Total Additional Hospitals (No.)

2006 3
2007 4
2008 5
2009 6
2010 7
2011 8
2012 9
2013 9
2014 10
2015 11
2016 12
2017 13
2018 14
2019 15
2020 16

4.3 Pricing

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For the purpose of this study a price of Birr 60 and Birr 120 per check up for out-patients and per
night for in-patients respectively is adopted. More over, for x-ray check up and laboratory
analysis of blood and stool, the envisaged hospital will charge Birr 40 and Birr 30 respectively.

4.4 HOSPITAL CAPACITY AND OPERATIONAL PRPGRAMME

4.4.1 Hospital Service Capacity

Based on the market study shown above, the projected demand for additional hospitals for the
futures and this figure will grow to 11 by the year 2015, and then to 16 by the year 2020.
Examining the demand projection in Table, it is observed that there is a need of one additional
hospital every year starting from year 2006 until 2019. The study will consider an establishment
of one specialty hospital comprised of the following departments:

a) Emergency Room,

b) Surgical Suites,

c) Intensive Care Units (ICUS),

d) Pediatric and Maternity Awards, and

e) Departments of Radiology, Anesthesiology, Pathology, and Rehabilitation

Medicines.

This hospital will employ medical, nursing and support staff to provide in-patient care to people
who require close medical monitoring and out-patient care to people who need treatment
but not constant medical attention. The envisaged general hospital will have 50 beds for
patients. The in patients are assumed to wait for a maximum of 10 days on average, making
3082 patients per month.

Since the specialty center hospital is assumed to serve 50,000 patients per annum, the remaining
48,125 persons are outpatients. Of the total 50,000 patients that will be treated in the

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hospital in a year, it is assumed that about 65% will take x-ray and laboratory check-ups (i.e.,
32,500 patients). The general hospital in question will provide diagnosising health problems,
surgery, rehabilitation, health education programs, and nursing.

Operational Programme of the Hospital

The hospital can start providing service at 75% of its full capacity in the first year, and slowly
build-up its service to 85% and then to 100%, during the second and third year, respectively.
Table shows operational build-up programme.

Annual Hospital Service Capacity

Year 1 2 3 and above

Capacity utilization 75 85 100
Service operation(patients) 37,500 42,500 50,000

5. MEDICAL SUPPLIES AND UTILITIES

5.1 MEDICAL SUPPLIES

The medical supplies required by the general hospital and corresponding costs are
indicated in Table below.

TABLE MEDICAL SUPPLIES REQUIREMENT AND ESTIMATED COST (INPAKAGE)

Sr. Description Qty Cost Birr

No FC LC TC
1 Adrenaline injection 40 26,000 14,000 40,000
2 Minophyllioc injection 20 16,250 8,750 25,000
3 Savlon (chlorhexidene + 25 17,875 9,625 27,500
Cotrimide)
4 Alcohol solution 79% 15 7,313 3,938 11,250
5 Dextrese 40% injection 10 3250 1750 5000
6 Ergometrine maleate 20 17550 9450 27000
injection
tabs
7 Hydrocortisone sodium 5 6500 3500 10000
succinate

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 8 Lidocaine hydrochloride 5 5688 3063 8750
injection
9 Procaine hydrochloride 10 8776 472613502
injection
10 Vitamin k injection 10 13000 7000 20000
11 Hyoscine hydropromide 10 7475 4025 11500
injection
12 Bandage different sizes 40 29120 15680 44800
13 Cotton 40 - 26000 26000
14 Disposable syringes 20 17550 6450 27000
different types
15 Disposable needle 20 12350 6650 19000
different types
Grand Tota 188697 127607 316304

5.2 UTILITIES

The major utilities required by the general hospital are electricity and water. The
required quantity of these utilities and corresponding cost are indicated Table

TABLE ANNUAL UTILITIES REQUIREMENT AND COST

Sr. No Utility Unity of Qty Cost(000 Birr)

Measure
1 Electricity Kwh 200,000 94.72
2 Water M3 10,000 325
Total 127.22

5.3 TECHNOLOGY & ENGINEERING

5.3.1 Medical Equipment

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The list of medical equipment required by the envisaged Specialty center hospital is
shown in financial statement. The total cost of medical equipment is estimated at Birr 25
million, It is assumed that all equipment will be purchased from foreign markets.

5.3.2 Source of Medical Equipment

The medical equipment required by the envisaged higher clinic can be acquired from the
following supplier.

 Raja medical equipment supplier

 West Bombay 123456, INDIA
 Raj Bavan street

Fax. 213-346789

5.4 ENGINEERING

1. Land, Building and Civil Works

The total area requirement of the project is estimated at 4,000 m 2,out of which the built up area is
estimated to be 3,100 m2

The total cost of building and cost civil works, is estimated to be Birr 30,243,000

According to the Federal Legislation on the Lease Holding of Urban Land (Proclamation No.
721/2004) in principle, urban land permit by lease is on auction or negotiation basis, however,
the time and condition of applying the proclamation shall be determined by the concerned
regional or city governments depending on the level of development.

6. Market Prospects
From the above market study for Specialty Center Hospital, there exists Hospital, Clinic
quality gab in terms of government and Private as well as NGO in Ethiopian market. Hence,
the envisioned Specialty Center Hospital will be successful by entering in to this market.

i. Marketing Strategy and Promotion

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 The company will follow the following promotion methods

 Electronic Medias
 Advertising (Medias, flayer and news paper)
 Public Relation
 Branding

The marketing strategy mainly focus on the satisfying the needs and the requirement of the
customers and to be efficient in production and delivery of the services.

ii. Target Customers

The company targeted different customers mainly the patient from the community.

7. Manpower and Organizational Management

7.1 Manpower
At the top of the organization structure, there will be a general manager with the responsibility of
supervising the overall activity of the factory, Depending up on the nature of the center and the
amount of work to be performs; there will be auxiliary units the general manager. Employees
under each unit will be supervised by unit head that is accountable for the general manager.

The company will use efficient trained staffs in the area of marketing to be competitive supplier
of printed materials. The opportunities of begin serviced by well skilled professionals well
enable the company to evaluate the internal weakness and strength of the company as well as to
assess the global opportunity and risk in the world market so that the company can cope up with
the dynamics of the market situation. The company will hire a total of 171 employees. Out of
this 162 permanent workers (158 skilled and 4 unskilled) and 9 temporary employed (6 skilled
and 3 unskilled)The detail human power required, monthly and yearly salary is indicated in part
financial part.

7.2 Organizational Structure and Management

The organizational structure of the project is designed by including all the necessary personnel
under the right division. At the top of the organizational structure, there will be a general

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manager with the responsibility of supervising the overall activity of the plant. Employees under
each unit will be supervised by the department head that is accountable for the general manager.
General Manager is accountable to the owner of the factory as indicated in figure below.

Fig. Organizational Structure

Project organization

Owner/s

Manager

Secretary General Manager

Director

Surgical center Admin.and Finance Dept. Marketing & Sales Dept.

Nursing service

Surgeon
Staff Librator
Medical y
Secretary
support staff

Project Design Cycle

Find Evaluation
Project Implementation

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Project Budget Situation Analysis

Project
 Plan
Assessment of An
organizational capacity

Project Design &Planning frame

work

Hence the following section deals with the duties and responsibilities of some departments.

1. Manager
Duties and Responsibilities
She/he will plan, organize, direct and control the overall activities of the Hospital.
She/he will devise policies and strategies that will enable the Hospital to be
profitable.
She/he will incorporate modern technology innovation that will facilitate the service
delivery of the project center and increase customer’s satisfaction.
She/he will plan, organize, direct and control the human and non-human resources
of the factory so as to achieve the short and long run objectives of the organization.

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2. Director
Duties and Responsibilities
It’s the core department of the project center with the following responsibilities.
Design and prepared plan based on the plant standard of Health ministry.
Use modern manufacture, processing technology that will enhance the quality of
Health Service..
Moreover control over the quality Health service.
3. Administration and Finance Department
Duties and Responsibilities
Will plan, organize direct and control the financial transaction of the factory by
using the entire necessary document.
Will develop sound financial control system by developing modern financial
control system.
Manage and execute the company national and international procurement
production.
Administer and control the company logistic resource.
Provide and manage general supportive service to the factory.
Will prepare the annual financial statement and prepare condensed reports for the
general manager. Owner and other concerned body.
4. Marketing and Sales Department
Duties and Responsibilities
Will handle the overall marketing activities of the organization which including
planning, organizing, directing and controlling.
Gather information on new products, designs, fashions, profiles etc.
Approval of new products profile and brand plan analyzes market research.
Plan and execute sales.
Will develop effective customer handling strategies.

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8. Financial Requirement and Analysis
8.1 Total Initial Investment Cost
The total amount of money that is required to establish the envisaged factory is estimated to be
birr 309982798.4

Table, Total Initial Investment Capital

SN Description Cost in birr

1 Land, Building & Constriction 120972000

2 Plant Machinery and Equipment 100000000

3 Vehicles 16200000

4 Office Equipment 2860000

5 Initial Working capital 40406544

6 Pre service Expense 1364000

7 Contingency (10%) 28180254.4

  Total Initial Investments Cost 309982798.4

Fixed Investment
Building & Construction The details of the various buildings are given below:

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 Description Land Requirement (M2 ) Total Cost in Birr

Emergency room 1250 39200000

Surgical room 1250 19000000

Office 500 6202000

Staff Room 500 400000

Guest Room 625 210000

Libratory 750 720000

Intensive Care 500 240000

Hall Room 500 3000000

Administration Building 500 16000000

Toilet 750 12000000

Story 500 8000000

Pediatric and Maternity Awards 875 10000000

Parking and green area 1500

Total 10,000 120972000

Machineries Requirement (Required Medical Equipment And Cost)

Sr.No Description Unit of Qty Cost(Birr)

measure LC FC TC
1 Sphygmomanometer pcs 2 60000 340000 400000
2 Clinical thermometers pcs 1
(assorted) 6000 34000 40000
3 Diagnostic set pcs 4 60000 340000 400000
4 Scale infant pcs 4 6000 34000 40000
5 Scale adult pcs 4 7200 40800 48000
6 Examination bed pcs 6 7200 40800 48000
7 Hospital bed pcs 50 90000 510000 60000
8 Infusion stand pcs 5 9000 51000 60000

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 9 Instruments sterilizer pcs 2 30000 170000 200000
10 Refrigerator pcs 2 18000 102000 120000
11 Stethoscope pcs 2 18000 102000 120000
12 Centrifuge pcs 4 12000 68000 80000
13 Lab. Bench pcs 2 3600 204000 24000
14 Glass ware (assorted) pcs 4 8400 47600 56000
15 Timer pcs 2 1200 6800 8000
16 Photometer pcs 2 12000 68000 80000
17 Hemoglobin pipette set 2 3600 204000 24000
18 WBC pipette set 2 3600 20400 24000
19 Hemocytometer with its pcs 1
cover slide 18000 102000 120000
20 Test tubes (assorted) set 2 3600 20400 24000
21 Measuring pipettes set 2
(assorted) 1200 6800 8000
22 Electrical boiler pcs 1 300000 1700000 2000000
23 Delivery table pcs 4 3600 20400 24000
24 Foetal monitor pcs 1 180000 900000 1200000
25 Vacuum pcs 1
extractor/retoscope 9000 51000 60000
26 Aspirator/manual pcs 2 1200 6800 8000
27 Breast pump pcs 2 8400 47600 56000
28 Suction unit pcs 1 3000 17000 20000
29 Light portable/mobile pcs 2 600 3400 4000
30 Auxiliary operating light pcs 2 6000 34000 40000
31 Minor operating set pcs 3 108000 612000 720000
32 Autoclave pcs 2 60000 340000 400000
33 Delivery kit set 2 1800 10200 12000
34 Stethoscope (baby) pcs 2 12000 68000 80000
35 Oto-opthalmoscope pcs 2 36000 204000 240000
36 Hand reflector pcs 2 1800 10200 12000
37 Respiration bag adult pcs 4 3600 20400 24000
38 Respiration bag babies pcs 4 4320 24480 28800
39 Oxygen cylinder 20 lts pcs 2 12000 68000 80000
40 Tourniquet pcs 2 1080 6120 7200
41 Forceps assorted pcs 2 3600 20400 24000
42 Enema set set 2 18000 102000 120000
43 Pediatric surgical kit set 2 420000 238000 280000
44 Sphygmomanometer pcs 1
(pediatric, various) 18600 105400 124000
45 X-ray machine pcs 1 720000 4080000 4800000
46 Fluoroscopy pcs 2 240000 1360000 1600000
47 Viewers set 1 15000 85000 100000

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 48 Cassettes intensifying Set 1
screens, film 30000 170000 200000
49 Hanger (different types) Set 1 1800 10200 12000
Grand Total
Vesicle

SN Description Qty Unit Cost Total Cost Remark

in Birr in Birr
1 Ambulance 3 2000000 6000000 Duty free
2 Worker Service bus 1 4800000 4800000 Duty free
3 Mini Bus 1 2600000 2600000 Duty free
4 Other Vehicles 2 1400000 2800000 Duty free
Total 5 0 16200000
Office Equipments

SN Description Qty Unit Cost in Total Cost in

Birr Birr
1 Managerial Tables With Chair 5 62000 310000
2 Secretarial Chair With Table 1 22000 22000
3 Office tables 15 20000 300000
4 Office Chair 25 14000 350000
5 Computer With its accessories 10 60000 600000
6 Printer 5 20000 100000
7 Shelf 1 30000 300000
8 Filing Cabinets 2 20000 40000
9 Telephone and Fax machine 1 8000 8000
10 Curtain and Carpet LS 800000
11 Other Misc. Office Equip. LS 300000
Total 2860000

Initial Working Capital

The initial working capital is estimated to be birr. 40406544

Pre-Service Expense

SN Description Cost in Birr

1 Project Proposal 15,000.00
3 Promotion and Advertisement 200,000.00
4 Worker Capacity Building 100,000.00
5 Licensing Fee and Other 1,000.00
316,000.00

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8.2 Project Action Plan

The projects implementation is expected to take 2 year. The major activities include Construction
of the building, cleaning the area around the building, procurement of equipment and start
rendering service. The time schedule for the above mentioned majored activities is presented
below;
Table project-implementation

SN Activity Date
1 Land Approval May 2021
2 Site Development May 2021
4 Building and Construction June,2022- Fab,2024
5 Starting service May ,2025

Salary Expense

No Position Required salary

Monthly Annually
Medical director 1 15000 180000
Doctor (medical) 1 15000 180,000
1 Senior ORL-HNS Consultant 8 20000 1920000

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 Surgeon
2 General ORL-HNS Consultant 8 15000 1440000
Surgeon
3 Audiologist 9 10000 1080000
4 Chest physician 9 8250 891000
5 Anesthesiologist 6 7000 504000
6 Consultant Radiologist 4 7500 360000
7 Scrub nurse 10 6500 780000
8 Staff nurse 25 6500 1950000
9 Cleaner 15 6500 1170000
Pharmacist 4 7000 336000
10 Porters 15 6000 1080000
11 Audiologist 4 5000 240000
Gardner 5 3000 180000
Personnel and administration 1 75000 900000
Accountant 6 6000 432000
Cashier 2 3500 84000
Electrician 4 3000 144000
Carpenter 4 2800 134400
Mechanical 3 3000 108000
Clerk 2 2800 67200
Store kipper 2 2500 60000
Lab technician 3 4500 162000
Radiographer 2 5000 120000
Waiter 5 1800 108000
Barista 4 1000 48000
Cocker 5 1500 90000
Driver 6 4500 324000
Total 171 225150 14712600

Other Operating Expenses

SN Description Annual Cost in Assumption used
brii
1 Property insurance 1% of fixed investment cost
996840
2 Audit & Legal Fee 2000 per month
96000
3 Uniforms 100*200 per month
80000
4 Telephone 1050 per month
50400
5 Cleaning goods supplies 1000 per month
48000
6 Repair and maintenance 2.5% of the Fixed cost
2492100

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 7 Advertisement % of sales
1000000
8 Stationery and other office 900 per month
supplies
43200
9 Electricity 0.75*70,000KW per year
210000
10 Water 1.5*2500m3 per year
20000
11 Fuel 9000 lit*2 br per year
720000
12 Oil and lubricant 10%of fuel cost
72000
13 Miscellaneous Expense 5000 per month
240000
Total
6068540

8.3 Financial Analysis and Statements

i. Underlying Assumption

The financial analysis of the envisioned project is based on the data provided in the preceding
sections and the following assumptions

A. Constriction and Finance

Constriction Period 2 years
Source of Finance 30% equity and 70% loan
Bank Interest rate 10%
Load Repayment 10 year
Tax holding 2 year
Operating Costs Increase by 5% after 3 year
Raw Material and Wage increase by 5% after 3 year
Salary and Wage increase by 5% after 3 year

B. Deprecation
Building 5%
Machinery and Equipment 10%
Office Furniture 10%

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 Vehicles 20%
C. Working Capital
Accounts receivable 30 days
Raw material local 30 days
Work in Progress 5 days
Finished products 30 days
Cash in hand 5 days
Accounts payable 30 days

ii. Sources of Fund

SN Description %Share Amount (in Birr)
1 Owners Share 30 92994839.52
2 Bank loan 70 216987958.9
Total 100 309982798.4

iii. Depreciation Schedule

SN Description Original Value in Depreciation Depreciation per
Birr rate in % year
1 Construction and Building 120972000 5 378037.5

3 Vehicle 16200000 10 101250

4 Office Equipment 2860000 20 35750

  Total 140032000   515037.5

iv. Balance Sheet

Asset
Current Asset Value in Birr
Cash 12709456
Inventor of raw materials and inputs 40406544
Total Current Asset 53116000
Fixed Asset 0
Land, Building and Construction 120972000
Office Equipment 2860000
Vehicles 16200000
Total Fixed Asset 140032000

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 Total Asset 309982798.4
Liability 0
Account Payable 216987960
Owners Equity 92994840
Capital 92994840
Total Liability and Owner’s Equity
309982798.4

v. Profitability

According to the projected income statement, the project will start generation profit in the 1 st
year of operation. Important ratios such as profit to total sale, net profit to equity |(return on
Equity) and net profit pulse 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.

vi. Pay-Back period

The investment cost and income statement projection are used to project the pay-back period.
The project’s initial investment will be fully recovered with in 4 year of operation.

9. Future Development

Every busine.ss under taking is it large or small should have future development plan. It is a
plain fact that business activates are undertook in a dynamic business nature and different
environment. Therefore, the factory will have an expansion phase depending on the condition of
the industry character particularity in producing the profile itself installing the plant, in this
regard; the factory will expand its capacity to produce new paper in the future.

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10. ENVIROMENTAL IMPACT OF THE PROJECT

a. Socio-Economic Environment

The promoter will provide the land on lease, and all required compensation will be paid for the
project. The livelihood of the local peoples around the project area is skilled people of various
occupation and economic background.

b. Environmental Impact Assessment of the project

Current the issue of environment and envelopment get due emphasis and thus every citizen
called expert their maximum effort for fighting against any negative impacts on the environment
so as to result in a win-win solution on common agenda that is creating environmental friendly
business environment. The project has some no impact on the environment and the independent
EIA report is required.

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