Ministry of Fisheries and Livestock

Development Project Proposal (DPP)

Beef Cattle Development Project in Batiaghata Upazila, Khulna City

Project Cost Tk. 190 Lakh

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 DEVELOPMENT PROJECT PROPOSAL (DPP)
PART – A

1. Project Title : Beef Cattle Development

2. a) Sponsoring : Ministry of Fisheries and Livestock
Ministry/Division
b) Executive Agency : Upazila Parishad
3. Objective of the project : The main objectives of the project are to overall
(specify) development of Beef Cattle sector such as-
To fattening the beef cattle.
To increase the meat productivity of beef cattle.
To improve the meat and milk services access and delivery
of beef cattle.
To improve the socio-economic conditions of rural poor
people.
4. Location of the project:
Upazila Division District

Batiaghata Khulna Khulna

5.
a) Estimated cost of the project : I) Total: 190(in lakh Taka)
II) Gob:190 (in lakh Taka)
b) Exchange rate used with date: III) 1 dollar=84 Taka (Bangladesh Bank, 7.10.2018)

6. Location wise cost break-down: Annexure -1 to be attached

7.(a) Mode of financing with Source:

(In lakh taka)
Mode of financing GOB(FE) PA(RPA) PA source
Loan/credit
Grant (Climate change trust fund) 190

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Equity
Other (specify)
Total 190

7 (b). Source of financing GOB fund against DPP’s year wise allocation:

Whether the Source of In case of

priority list of required Re-
the project has GOB appropriation
made Fund from other
according to Year wise GOB Fund requirement projects what
availability will be the
resources in impact of that
FY 2019-20. If projects
yes, give the
Sl. No.
Financial Amount (in Lakh
year Tk.)
1 2 3 4 5
The project is
included in the 2020-21 190 ADP N/A
green page
with priority of
Upazila of
Batiaghata
2019-120 as an
unallocated
and
unapproved
project.

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8. Project Implementation Period: I. Date of commencement: January 2019
II. Date of Completion: June 2020

9. Component and Estimated Cost Summary

(Taka in lakh)

Budget Head Economic Code GOB Estimated Cost Total % of

Code Description the
Project Aid D
P total
A cost
RPA
Through Speci
GOB al
Acco
unt
1 2 3 4 5 6 7 8 9
(a) Revenue Component

4823 2.00 2.00 1.05%

4828 Stationary/Seal
4833 / Stamp
4845 Meeting
4887 Copy/Photocopy
4895
4900
4906

Veterinary 10.00 10.00 5.26%

Subtotal (Revenue Component) 12.00 12.00 6.31%

(b) Capital Component

2331 Livestock 178 178 93.69%

Subtotal (Capital Component) 178 178 93.69%

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 ( c ) Physical Contingency 0 0 0

( d ) Price Contingency 0 0 0

Grand Total (a+b+c+d) 190 190 100%

10. Log Frame: i) Planned date for project completion: January 2021
ii) Date of this summary preparation: January 2019

Project Title: Beef Cattle Development Project in Batiaghata Upazila, Khulna City

Narrative Summary Objectively variable Means of Important

indicators verification Assumption
Goal: Productivity increases of Records of
Increase the meat productivity of beef cattle. beef cattle. veterinary office at
Upazila.

Purpose: Use of fattening techniques Records of Fund flow should not

- Increase in milk productivity - towards organic cattle veterinary office at be disrupted
farming. Upazila.
Cattle fattening.
Development of beef
breeds for increased
productivity at farm level

Out puts: Increased ratio of Records of 1. Nature calamity

vaccination and mapping veterinary office at
1. Improvement of beef cattle health. during
for disease prediction. Upazila
2. Improvement of socio-economic implementation 2.
conditions of farmers.
2. Arrangement of training Properly fund from
for butchers on scientific
methods of slaughtering, GOB
meat processing and
preservation technique.

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 Inputs: 1. Total construction of Records of 1. Allocation of fund
1. Land allocation. cost of the project is in veterinary office at receipt as per phased
lakh Tk. 190.00 Upazila 2. Timely decision
2. Training. made by the
authority.

11. a) Attach project management : Attached Annex-II setup

b) Attach procurement plan : Annexure – III(a), III(b), III(c)

12. Year wise financial and physical: As per Annexure-IV target plan
13.
After completion, whether the
project needs to be transferred
to the revenue budget.
After completion of the project it will transfer to the revenue
a) If yes, briefly narrate the
: budget of Khulna City
Institutional arrangement for
operation and maintenance

b) If not, briefly narrate the

Institutional arrangement for
operation and maintenance

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 PART-B

14. Background,
Objectives,
Rationale including
Linkages, Targets
and
Outputs of the
Project.
a) Background Khulna is a Divisional, 3rd largest industrial and port city of the country.

Khulna district was established in 1882. It is situated between 22°12′ and

23°59′ north latitudes and between 89°14′ and 89°45′ east longitudes. The
district is bounded on the north by Jessore and Narail districts, on the east
by Bagerhat district, on the south by the Bay of Bengal and on the west by
Satkhira district. The total area of the district is 4389.11 sq km. of which
607.80 sq km is riverine and 2028.22 sq km. is under forest. Khulna district
constitutes 2.97% of the area of the country. In respect of area, it ranks 1st
among the 10 districts in Khulna division and 4th among the 64 districts
of the country. Batiaghata is located at 22.7417°N 89.5167°E. The
Kajibacha river divides it into an eastern and a western part. It has 23698
households and total area 248.33 km².

The people in this area are engaged in several works. Most of the people
in this area are poor. They are dependent on agriculture. Beef cattle are the
important and potential sub-sector to economic development, where this
sub-sector has a strategic value to fulfill the human need through
progressively increase per capita income. This can be very helpful for the
poor people to be self-dependent. This project help in the following
purpose:

1. Potential demand for beef over the country.

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 2. High potential for profitable slaughter and processing
business.

3. To increase the meat productivity of beef cattle.

4. To improve the meat and milk services access and delivery of beef
cattle.

b) Objectives: 1. To fattening the beef cattle.

2. To increase the meat productivity of beef
cattle.
3. To improve the meat and milk services access and
delivery of beef cattle.
4. To improve the socio-economic conditions of rural
poor people.

c) Priority: Improvement of the health of beef cattle and fattening of it is

very important to increase the socio-economic conditions of poor people.
It can be considered as the employment opportunities and self-
development of rural women. Veterinary office at Upazila can support the
poor and unskilled people to develop their skill by beef cattle project. So,
it is very important and prioritized project in Khulna.

d) Rationale: For the rural people in Batiaghata is very much

important. Developing beef cattle agribusiness by adapting
technology for high production, enhancing partnerships
agribusiness in rearing, processing and marketing can play a
vital role in economic sector. Beef cattle agribusiness needs
technological development for improving agribusiness
performance. It can create employment to the poor people of
the rural area and without any doubt it can be said that this
can play an indispensable role in economy in Bangladesh.

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 e) Linkages : GOB is interested to eradicate the poverty
of Bangladesh. Agriculture in Bangladesh is very much
important and by the support of various NGOs and private
sector it can be strong enough in economy.

f) Targets: Government of Bangladesh (GOB) is trying very

hard to improve the situation of agriculture in Bangladesh. It is
almost known to all that Bangladesh is a country of agriculture.
So, it is very common that economy can be developed by the
agricultural support. The physical activities of the project have
been programme spanning over a period of one year. Targets
and major components of the project are as follows.

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 Sl. no. Components Quantity Cost in lakh
taka
1. Buying Beef cattle 500 150.00
2. Buying land 10 acres 20.00

a. Feeds L.S 6.00

b. Working capital L.S 2.00

c. Organized marketing system L.S 3.00

d. Prevalence of anthrax diseases L.S 1.00

3. Transportation cost L.S .50

4. Innovative technology L.S 0.50

5. Meeting cost L.S 2

6. Veterinary check of animals L.S 3

7. Bucket, Shade, Spade, Rakes L.S 2

8. Physical Contingency L.S 0

9. Price Contingency L.S 0

Total 190.00

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 g) Outcome: After completion of the project, beef cattle development will be spread
to the poor people of the rural area. And it will be helpful for economic development.

15) Whether any pre-appraisal/ pre-investment study was done before Formulation of this Project?
If so, attach Summary of Findings & Recommendations: No document of pre-appraisal study was
found before the formulation of this project.

16) Mention the followings: NPV, BCR, IRR

a) Net Present Value (NPV):
n

 (1 + r )
c1
NPV of a Project = t
- Initial investment
t =1

where Ct = cash flow at the end of year t

n = life of the project
r = discount rate
The project has the following cash flow stream:
Year Cash Flow
1 150,00,000 Tk.
2 120,00,000 Tk.

Initial investment=190,00,000 Tk.

The cost of capital, r, for the discount rate is 10 percent. The net present value of the proposal is:

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 15000000 12000000
NPV =
(1.10)1
+ (1.10)2
-19000000= 3314049.587

The net present value represents the net benefit of a project over a period of a time. Any project will be
accepted if the net present value is positive and will not be accepted if the net present value is negative (If the
net present value is zero, it is a matter of indifference.).
Therefore, the net present value of this project is positive so it will be accepted.

NPV Calculation Permits Time-Varying Discount Rates

The discount rate can be changed over time considering this issue the NPV for this project is


c1
NPV = Initial investment
 (1 + r )
t
t =1
j
j =1

where Ct = cash flow at the end of year t

rj = one period discount rate
n = life of the project
The discount rate may change over time for the following reasons: (a) The level of interest rates may change
over time (b) The cost of capital of the project may change over time due to risk.
Discount rate 14% 17%

Investment - 190,00,000 Tk.

Cash flow 150,00,000 Tk 120,00,000 Tk.
The present value of the cash flows can be calculated as follows:

PV of C1 = 150,00,000/ 1.14 = 13157894.74

PV of C2 = 120,00,000/ (1.14 x 1.17) = 8996851.102
NPV of project = 13157894.74+ 8996851.102-19000000= 3154745.842

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17. BENEFIT COST RATIO (BCR):
PVB
Benefit Cost Ratio: BCR =
I
Where,
PVB = present value of benefits
I = initial investment
The project has a cost of capital of 10 percent.
Initial investment: 190,00,000 Tk.
Benefits: Year 1 120,00,000 Tk.
Year 2 140,00,000 Tk.
The benefit cost ratio measures for this project are:

120,00,000 140,00,000
+
(1.10) (1.10)2
𝐵𝐶𝑅 = = 1.13
190,00,000

NBCR = BCR – 1 = 1.13-1=.13

The rules about BCR & NBCR are as follows-
➢ If the BCR value is greater than 1 or the NBCR value is greater than 0, project will be accepted.
➢ If the BCR value equals to 1 or NBCR value equals to 0, there will be no benefit from the project
➢ If the BCR value is less than 1 or the NBCR value is less than 0, project will be rejected.
The BCR value of this project is 1.13 and the NBCR value of this project is .13 so this project will be accepted.

18. INTERNAL RATE OF RETURN (IRR):

The internal rate of return (IRR) of a project is the discount the present value of future to zero. Put differently,
it is the discount rate which equates in the following equation:

 (1 + r )
c1
Investment = t
t =1

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Where, Ct = cash flow at the end of year t
r = international rate of return (IRR)
n = life of the project

In the IRR calculation, we set the NPV equal to zero and determine the discount rate that satisfies this
condition.
Consider the cash flows of the project:

Year 0 1 2
Cash flow 19000000 150,00,000 12,00,000

The IRR is the value of r which satisfies the following equation:

150,00,000 120,00,000
190,00,000 = +
(1 + 𝑟)1 (1 + 𝑟)2

The calculation of r involves a process of trial and error. We try different values of r till we find that the right-
hand side of the above equation is equal to 190,00,000. Let us, to begin with, try r = 25 percent. This makes
the right-hand side equal to:

150,00,000 120,00,000
+ = 19680000
(1.25) (1.25)2

This value is slightly higher than our target value 190,00,000. So, we increase the value of r from 30 percent
to 30 percent. (In general, a higher / lowers and a smaller r increase the right-hand side value). The right-
hand side becomes:

150,00,000 120,00,000
+ = 18639053.25
(1.30) (1.30)2

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Since this value is now less than 190,00,000, we conclude that the value of r lies between 25 percent and 30
percent. For most of the purposes this indication suffices.
19. Lesson learnt from similar nature of projects
I) Experience on budgeting and management of the project.
ii) Experience on implementation stage where the price escalation is a factor to maintain the quality of work.
iii) Livestock and dairying enhance the capacity of poor rural people to cope with the annual monsoon floods.

20. Basis of Total and item-wise cost estimate: The cost of this project is estimated by the opinions of the
expert of similar projects, from similar nature projects and present cost of goods from internet.

21. Give a comparative cost of major items of similar other projects:

SI. Name of the Date of the Executing Name of major items Cost
No. project completion agency
1. An economic 2014 Buying cattle 2000000
analysis of beef
Feeding costs 100000
cattle fattening in Ministry of
selected areas of Fisheries and Drug/vaccine/Veterinary 30000
cost
Pabna and Livestock
Sirajgonj Districts
labor charges 50000

Transportation cost 10000

Toll given 2000

Other expenditures 15,500

Total 22,07500

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20) Attach detail annual phasing of cost: Attached in Annex-V

21) Specification/ Design of components: The required number and beef will be selected when the survey
will be completed.

22) Attach amortization schedule for projects being involved of loan from government (As per Annex-
VI): This is a Government grant project under local Government. Therefore, amortization from Government
is not required.

23) Briefly describe the effect/impact and specific mitigation measures thereof if any on environment
like land, water, air, bio-diversity etc.:
There is no possibility of environmental pollution as a result of implementation of the project. No materials
will be used which will cause pollution or threat to the environment. Therefore, this project is to increase the
health of the beef cattle and by which employment generation of poor people will be done of Batiaghata
Upazila.

i) Other projects/ existing installations: There are many ongoing beef cattle development projects. However,
this project is considered as a large-scale project which can help those projects.
(ii) Environment like land water air bio-diversity etc.: The environment of the surrounding area will be
definitely protected during the implementation of this project.
iii) Women and children: There are no chances of women and children for getting in any hazardous situation.
iv) Employment Poverty alleviation etc.: This project will generate employment generation for the people
of the locality. This will help to alleviate poverty indirectly. And specially the rural poor women can improve
their conditions from this.
v) Institutional productivity: This will increase the institutional productivity of KCC for implementing this
kind of projects.
vi) Regional disparity: People of Northern part of Bangladesh are the victims of development disparity
because of various reasons. Poor people can get employed by beef cattle development Therefore, this project
will help to reduce the regional disparity.

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24) Specific linkage with PRS and MDGs (in terms of number & percentage of policy matrix of PRSP):
This Project is directly related to PRS and MDGs.

25) Whether implementation by private sector/local govt. or NGO was considered? Describe how they
be involved?
Veterinary office of Batiaghata Upazila is a local government and the project will be implemented by this.
Private enterprise, NGOs will be added in this project. Also, the veterinary university will suggest the ideas.
26) In case of aided project mention the major conditionality: This is not an aided project.

27) Does the project involve rehabilitation/resettlement? If so, indicate the magnitude and cost: This is
a project for improving the economic condition of the upazila people and it does not involve rehabilitation or
resettlement.

28)
Risk identification Mitigation
1. Lack of standard cattle fattening 1. Encourage the rural poor cattle
technologies and feed ingredients at local farmers in cattle fattening using
level. improved technologies, quality beef
production and establishing linkages
with markets actors.
2. 2. Increased ratio of vaccination and
Lack of veterinary service. mapping for disease prediction.

3. Lack of working capital for beef cattle 3. Arrangement of adequate amount of

agribusiness. credit at low rate of interest.
4. 4.
Processing in unhygienic condition. Policies for good production practices
of beef cattle fattening.

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 5. Cattle theft. 5. Proper security system.

29. SWOT Analysis:

Strength Weakness
1. Domestically produced. 1. Lack of feed and fodder.
2. Beef cattle are renewable 2. Prevalence of anthrax
natural. diseases.
3. Large number of labor 3. Lack of sufficient and
SW force. proper slaughter houses.
OT 4. Availability of 4. Lack of working capital.
technology. 5. Limited number of local
5. High interest and cattle breeds.
consumer preference for
beef.
Opportunities SO Strategies WO Strategies
1. Potential demand for
beef over the country.
2. Labor intensive and Developing an integration
employment strategy involving farmers, Develop policy on sutainable
opportunities. value chain actors and beef intensive and semi-intensive
3. Domestic and foreign processing industries. This beef production by optimizing
private sectors interested can improve the the principles of low external
to invest. productivity through inputs, skill development and
4. High value addition transferring the beef market linkages.
potential. fattening technology.
5. Government support to
develop beef cattle.

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 Threats ST Strategies WT Strategies
1. Low productivity.
2. Increase in feed prices.
3. Increase in cattle prices. Development contract farming Optimizing government role by
4. Death of cattle. model with provision of self- supporting program which
5. Smuggling and robbing help group formation, skill increase agribusiness potentials
of cattle. development, provide input and with an integration system,
finally market linkages. Proper increases knowledge and ability
guidance and maintenance. by training program and
assistance.

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 Annexure -I

Location wise cost breakdown

Sl. no. Division/District Sub-District/Upazila Estimated cost Comment
1 2 3 4 5
Khulna Batiaghata 190

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 Annexure-II

Project Management Set-up

Upazila chairman

Team Leader

Veterinary officer Farmers

Surveyor

Accounts
Officer

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 Annexure- III (a)

TOTAL PROCUREMENT PLAN FOR DEVELOPMENT PROJECT/PROGRAMME

Ministry/Division Project Cost Ministry of Fisheries and Livestock (In lakhTaka)

Agency Total Batiaghata Upazila 190
Procuring Entity Name & Code Acquisition of Assets – 6800 GOB 190 Procuring/ Programme Name & Code
PA

Packag Description Uni Quantit Procureme Contract Sourc Estd Indicative Dates
e No of t y nt Approvin e of Cost Not Invitatio Signing Completio
Procurement Method & g Funds (In Used n for of n of
Package as (Type) Authority lakh in Tender Contract Contract
per PP/TPA Taka Good
GOODS ) s
1 2 3 4 5 6 7 8 9 10 11 12
G1 Fuel and L.S DPM Chairman GOB 0.40 n/a 1/07/201 2/10/201 3/06/2019
petrol 8 8
G2 Stationary L.S DPM/OTM Chairman GOB 0.50 n/a 1/07/201 2/10/201 3/06/2019
8 8
G3 entertainment L.S DPM GOB 0.20 n/a 1/07/201 2/10/201 3/06/2019
cost/meeting Chairma 8 8
cost n
G4 Copy/Photoco L.S DPM Chairman GOB 0.10 n/a 1/07/201 2/10/201 3/06/2019
y cost 8 8
G5 Computer L.S DPM/OTM Chairman GOB 0.80 n/a 1/07/201 2/10/201 3/06/2019
accessories 8 8
Total Value BDT
of Goods 2.00
Procurement
:

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 Annexure- III (b)

TOTAL PROCUREMENT PLAN FOR DEVELOPMENT PROJECT/PROGRAMME

Ministry/Division Project Cost Ministry of Fisheries and Livestock (In lakhTaka)
Agency Total Batiaghata Upazila 190
Procuring Entity Name & Code N/A GOB 190
Procuring/ Programme Name & N/A Code PA

Packag Description Uni Quantit Procurem Contract Sourc Estimat invitation invitatio Signing Completi
e no pf t y e nt Approvin e of e d cost for n for of o
procuremen Method g fund (in prequalifie tender contact n of
t package as Authority lakh) d (if contract
per DPP/ applicable)
works
1 2 3 4 5 6 7 8 9 10 11 12
Beef cattle
P1 Buying beef 500 OTM Chairman GOB 150 N/A 18/7/18 18/10/1 19/6/19
cattle Upazila 8
Buying land 10 acres OTM Chairman GOB N/A 18/12/18 18/3/18 20/6/19
P2 20
Upazila
P3 Working 300 OTM Chairman GOB 2 N/A 18/7/18 18/10/1 19/6/19
capital Upazila 8

P4 Feeds and 10000 OTM Chairman GOB 6 N/A 18/7/18 18/10/1 19/6/19
others Upazila 8
Total BTD
178

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 Annexure IV

Ministry/Division Project Cost Ministry of Fisheries and Livestock (In lakh Taka)
Agency Total
Procuring Entity Name & Code Batiaghata Upazila GOB 190
Procuring/ Programme Name & Code PA
N/A 190

N/A

Packag Description Uni Quantit Procuremen Contract Sourc Estd Indicative Dates
e No of t y t Approvin e of Cost Invitatio Issu Signing Completio
Procuremen Method & g Funds (In n for EOI e of of n of
t Item as per (Type) Authority lakh RFP Contrac Contract
PP/TAPP Taka t
SERVICES )
1 2 3 4 5 6 7 8 9 10 11 12
S1 Consultancy 10 firm OTM Chairman GOB 10.00 2-4-2018 3-6- 2-7- 2-9-2019
And meeting 18 2018

Total Value of Service BDT

Procurement : 10.00

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 Annexure v

October-
Econno Total Physical and Financial January-June July-September December
mi c Code/Sub Uni Tota Weig Finan Physical Financi Physical Fin
Budg code/ code Physical t l ht ci al al a
et Sub descriptio Quantity Cos Cost nci
Head code n / Unit t al
% % %
of % of of % of of
ite Proje ite Proje ite
m ct m ct m
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
(a) Revenue Component
4874 Consultan 1 fir 10 10 0.000 0 0 0 10 100 0.05 0
cy m 5 0
fuel, 2 0.000 1 50 0.005 1 50 0.005 0 0
stionary 1
(b) Capital Component
Buying 150l 0.091 150 100 50 0 0 0 0 0
beef a ck 8
cattle
Buying 20lc 0.002 8 33 50 6 33 25 6 33
land k 5
. 2lac 0.009 2 100 50 0 0 0 0 0
k 9
Working
capital
6lac 0 0 0 0 0 0 6 100
k
Feeds
Physical 0 0 0 0 0 0 0 0
contingenc
y
Price 0 0 0 0 0 0 0 0 0 0
contingenc
y
Grand total (a+b) 190 161 17 12

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 Amortization Schedule
Annexure VI
Name of project: Tree plantation along the main roads under Batiaghata Upazilla Parishad.
Total Investment: 190,00,000 Tk.
Loan portion: 0
Loan period: Not applicable
Rate of investment: Not applicable

Year Beginning amount Yearly fixed amount Yearly interest to be Total payment Ending balance
to be paid (Capital) paid (Capital + Interest)
1 2 3 4 5=3+4 6(2-3)

1 0 0 0 0 0

2 0 0 0 0 0

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