PROJECT PROPOSALFOR MINERAL WATER BOTTLING PLANTPROJECT TO BE IMPLEMENTED IN

OROMIA REGIONAL STATE,BALE ZONE,GOBA WOREDA BURQITU KEBELE DISTRICTPROMOTER: -

BESHIR UMAR May, 2022FINFINNE, ETHIPIA

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant

Table of contents

I. Executive Summary

1.Introduction

1.1Background ………….7

1.2Objectives of the product…………..8

1.3The project Description and Application…………….…...………..

………...101.4Location Map of the Area……….10

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2.General Market Study and Plant Capacity

2.1Past Supply and Present Demand…………………………………….………122.2Project

Demand …………………………………………………………..122.3Pricing and Distribution

…………………………………………….………….…132.4Plant Capacity and Production

Programmed ……………..13

2.5Material and Inputs………………………………………………..142.6Land requirement

and land use plan……………………………………..……....…15

2.7Technology and Engineering……………………………….....….162.8Bottling Line

Process Flow Diagram…………………………………….………173.Organization Structure,

Management and Manpower

3.1Man power Requirement …………………………………………............

…..183.2Organizational Structure………………………………………..….203.3

Organizational Management duties and Responsibilities……….…....22

4.Financial Requirement and Analysis

4.1.Total Initial Investment Cost…………………………………………………...244.1.1.Fixed

Investment …………………24

4.1.2.Initial WorkingCapital……………………..…27

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4.2.Financial Analysis and Statements ……………………...28

4.2.1.UnderlyingAssumption…………284.2.2.Source of Fund………...29

4.2.3.Loan Repayment Schedule …………………………………………….....29

4.2.4.Annual depreciation schedule of the fixed asset ( birr)………………....30

4.2.5.Balance Sheet (Beginning)………………………………………..304.2.6.Revenue

Projection……………………………………......314.2.7.Income/Loss........……………...…

324.2.8.Cash Flow Analysis…………………………………………….32Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant 4.2.9.Profitability………………...

……..….334.2.10.Pay-Back Period…………………………………………….

….335.Environmental Impact of the project

5.1 Socio Economics Environments.........33

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I. EXECUTIVE SUMMARY

1.Project TypeMineral Water Bottling Plant

1.1.StatusNew

1.2.Sector Industry( Water Bottling) 2.Project Owner Beshir Umar,Diaspora USA

3.NationalityEthiopian

4.Project LocationOromia Region,Bale Zone,Goba Woreda,Burqitu Kebele District

5.Project Accommodation

Water Treatment Plan

Bottled Blowing

Rinsing - Filling – Capping

Labeling

Heat Shrinking

Shrink Wrapping machine

Defence & aerospace,

Medical and healthcare,

6 .Premises Required

2.78Hek., which is equivalent to27,800 M27Total Capital

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The total of birr 34,150,000 is required.

From this 30%(birr 10,245,000.00) will be covered by the

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant promoter of the project,While the rest 70%

(birr 23,905,000.00) `will be covered by bank loan.Loan Repayment Period:- 5 years Interest

Rate:- 8-12 %8EmploymentOpportunityThe total manpower requirement for the plant will

be160 employeesat full capacity.Permanent Workers 104Skilled 50Unskilled 54 Temporary

Worker 106Skilled 6Unskilled 509 Benefits of the factoryfor the region/ countryProduce and

supply Mineral Water Bottling Plant Source of revenue,create employment opportunity, save

foreign currency, benefit for thelocal community, stimulate the local economy and transfer

technology 10Proposes of expansionLandTo add line of products and upgrading existing the

project so the landuses is not success full to start the project.

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant

1.INTRODUCTION

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Manufacturing Sector make up the largest and the most important segment of the

industrialsector in Ethiopia. Besides, development of such industries accelerates the fast

economic growthof Ethiopia and will help the nation lay its economy foundation on strong

industrial base.The government of Ethiopia has developed a conductive investment policy

packages and other sect oral reforms at federal and regional level to attract a huge private

investment for thewellbeing of the nation and its citizens as a whole. Besides, it is also currently

implementing thefive years growth and transformation plan gave a special focused for

manufacturing industries.In this regard, oromia regional state government has been exerting its

maximum effort to expandinvestment opportunities in the region, so as to foster the economic

development of the regionand subduing the region’s big enemy that is the trap of poverty.

Therefore, the regionalgovernment has been preparing a viable business environment to attract

many domestic andforeign investors so that the dream of making poverty history turns to be

true.Goba Woreda,Burqitu Kebele District , Oromia regional State.The owners of the envisaged

plant have a good business experiences and knees to extend theseassets to this plant.

Therefore, the owner is very determined to establish the project and considersgetting the

required support from regional government by considering the existing facts and themulti

benefits of this project.

Promoter: Beshir Umar

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Therefore, the lucrative market potential an those viable investment policies attracted the

ownersof this project to engage in the production of purified mineral water in Bale Zone,

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Project Proposal on Mineral Water Bottling Plant

1.1Background

Bottled mineral water plant is a material of any wide ranges of synthetic or semi-synthetic

solidsthat are_moldable. Chemically Bottled are typically_organic polymers_of high_molecular

mass, but they often contain other substances. They are usually synthetic, most commonly

derivedfrom_petrochemicals but many are partially natural. One of the key functions of Bottled

mineralwater is packaging, which according to evidences accounts for over 35 per cent of the

globalBottled mineral water. Amongst the individual Bottled, the type known as Polyolefin

accountedfor 53 per cent of the total consumption, which accounts for 16.5 per cent.Ethiopia

has a range of business doing opportunities around the country and at the same timeample

scope for industrial investment. Presently, Small Scale Bottled mineral water in Ethiopiahas

noteworthy contribution. The industry is also believed to provide opportunities ahead as

thecountry continues to grow.Regional Government of Oromia investment commission was

established in 1985 E.C as a focalorganization to promote investment and handle all investment

issues in the regional state ofThe project is to be located in Oromia regional state, East Bale

zone, Sewana district is one of the administrative parts of east Bale zone which occupied about

2.384 square kilometers of landout of the total area of the zone (69,661km2) this coverage of

land leads the district to have ashare of 3.4% of land out of the total area of the zone the

district capital is Ginir. The capital of the district (Ginir) has a distance of 133 km from zonal

capital robe and 633 km from the capitalcity of the region and the country of a country, Finfine.

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Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant The oromia investment commission has been

exporting it is maximum effort to expandinvestment opportunities in the region so has to faster

the development of the region and subduring the city being enemy that is the trap of poverty.

Therefore aside with the governmentduties and responsibility visited on it.Bale Zone Goba

Woreda Burqitu kabale District investment office has been preparing available business

environment to attract many domestic and foreign investor so that the drime of making poverty

history tern to been true. Since it is this available investment police which invitedMr.Beshir

Umar to develop the interest and motivation of opening the Bottled mineral water plant inarea

aforementioned.

3. Project Justification

The water Bottling project is to identify the optimum intersection betweenpotential availability

of natural mineral water and significant value and marketgrowth potential and development

locations that have the best blend of growingconditions, labour and land availability, as well as

fiscal and political stability. The existence of springs with considerable discharges and

availability of chemically as well as bacteriological safe water for bottling is one of theinitiation

of the project. On top of this, there are large sizes of domestic andforeign markets for the

bottled mineral water. In addition to creating jobs forcommunities around the area, the bottling

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plant aimed at reducing the demandand supply of mineral water currently observed in the

country. Export marketpossibilities are also considered in the process. Finally, the project will

becomeone that will contribute its share to the industrial development of the country.

1.2Objectives of the Project

The main objective of the project is to satisfy the growing demand of highly purified

mineralwater and beverage by supplying quality product type. More specifically the project is

intendedto:-Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant Exploit Ethiopian ground water resources for

commercial bottling purposeProduce highly purified bottle water to the ideal capacity of the

factory and thereby itcould be possible to satisfy the demand of local and international market

(for the future)Employ highly advanced technology and machineryCreate job opportunities

to the local population and the communityGenerate revenue to the government in the form of

taxes andLast but least to gate reasonable profit from the investment.To establish bottled

mineral water production plant in Ethiopian to provide high quality andoriginal bottled water.

The proposed product line will consist of bottles of 0.3 L, 0.6 L, 1 L, 1.5L,2L, 5L and Jarr (20)

Liters. In the initial phase of the project only 0.6 and 2 liters bottles will beintroduced in the

market. After successful introduction of new brand of bottled water the productcategory may

be fulfill the rest 1 L, 1.5L, 5L and Jarr (20) Liters if the demand of the customersand consumers

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becomes high bottled water is coming to have the most dynamic market share of the food and

beverage industry.Different materials are used for the packing of bottled water, glass, PET

bottle, Aluminum, plastic like pouch or steel cans. These packing have different shapes, colors

and capacities. Theyare an essential part of the bottled water marketing. In some cases it is

evens possible torecognize the brand of the bottled water only thanks to the shape and color of

its packingBottled water consumption reflects a certain way of life. There is a long tradition in

Europe for drinking bottled water. Nowadays, this habit has reach the rest of the world .why do

consumerschoose to drink bottled water. In many case bottled water is the best alternative to

being strongand health. Consumers think they perceive it as being safer and better quality.

They also look for security , food scandals in industrialized countries and water borne diseases

in developingcountry have a great impact on their attitude . Bottled water is perceived as pure

and safealthough water to feel well. Bottled water is a health alternative than other beverages

because itis a real natural free from alcohol and other ingredients. Changes in ways of life also

explain this boost of water sales. Increasing urbanization causing tap water quality to decline ,

can explainthis situation . In particular, natural mineral water cannot be treated, nor added any

element. It is

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant therefore perceive as “natural” by city

dweller looking for genuine products. Increasingstandards of living and greater use cars enables

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peoples to bring home without pain a higher number of bottled water. The use of polyethylene

therphatlet /PET/ makes bottled lighter andeasier to carry than when they were only made of

glass. The expansion of shopping centers,outside city centers, provides consumers with a

greater choice in bottled water brands. Workinghabits changes in developed countries with the

decline of agriculture and industry. Most peoplehave office works and the bottle of water is

now a common element on a desk, next to thecomputer and telephone drinking bottled water

is a sign of the social scale. Above all bottledwater is a huge marketing success. The market for

bottled water has been showing a mushroomgrowth trend over the last few years, the country

market is very small on a global scale. The lastthree years have shown more growth and the

market have been wider, demand is coming highand the supply is still insufficient for the

market. The project can bottle 60,000 liters of water per day, the size of bottles be 0.3L, 0.6L,

1L, 1.5 and 2 litters to make the water convenient andattractive to end users and the other

machine can bottled 60,000 of water per day the size of bottles be 5L and Jarr to end users.

The sale at 100% capacity utilization will be in all regions of Ethiopian. The project would be set

up in the nearest of center city or its surround where all therequired infrastructure and

amenities are available besides environmentally it shall be free from pollution.Description of

the Water Bottling Process in the Bashir Umur MineralWater FactoryBore Hole:Bore holes

were constructed at locations where aquifers (water bearinggeologic formations) are both

shallow and low-yielding. It is the source of the mineralwater that goes to the production

process, boiler and others. Submersible Pumps withmotors (30kW and 15kW) are used to pump

the mineral water from two bore holes todegassing tank.Water Treatment Plant:The main

purpose of the water treatment is to prevent theformaon of the various hard scale deposits

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caused by salts on the internal surface of the boiler as such deposits cause eciency loses.

Therefore to keep the water so, aPromoter: Beshir UmarPage 9

Project Proposal on Mineral Water Bottling Plant caon exchange resin bed together with a

chemical soluon doser is added in the feedwater in the water treatment plant.Degassing

Tank:The mineral water pumped to degassing tank is puried from somegases in this tank. Then

it is pumped to seling tanksSeling Tanks (Process and Sofener Tanks):Dirt parcles gain more

weight and seleto the boom of the water tank. The mud accumulated at the boom of the

tanker isremoved using cleaning mechanism.Filtering Tank:In this there are three tanks: Big

sand tank, Carbon and Manganese ltertank. In sand tank lter the remaining suspensions are

trapped by the sand. Then it istransferred to Manganese lter tank and then to carbon lter

tank. In this, soening isused to avoid the calcium and the magnesium carbonates from the

water. This water ispumped to processing acvity ( mineral water boling).But for boiler, bole

washer,crate washer, cleaning, and other acvies it has to be further puried by

SodiumChloride (NaCl). These tanks are cleaned by backwashing

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant

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Figure 3. 4 Water Treatment/Process Flow Diagram

Bole and Crate Washer:Bole/Crate washing machines are used to wash, sterilize and

dryboles/crates before being lled with water or taken to packing place. The steam thatcomes

from steam line is given to inside cold water and mixed with causc soda to clean theboles.

The bole washer can wash about 32,000 boles (475ml) per hour withsteam thatcomes from

steam line is given to inside cold water and mixed with causc soda to clean theboles. The

bole washer can wash about 32,000 boles (475ml) per hour with 650C and 750Cfor each bath

room. The average fresh water consumpon and pressure for each bath are12m3/s and 3.1 bar

respecvely

1.3 The Product Description and Application

The simple definition of water is that it is the liquid that descents from the cloud as rain,

formsstreams, lakes and seas, issues from the ground in form of springs and is a major

constituent of all living matter and that when pure consists of an oxide of hydrogen H2O or

(H2O)x in the proportion of 2 atoms of hydrogen to one atom of oxygen and is an odorless,

tasteless, very

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Project Proposal on Mineral Water Bottling Plant slightly compressible liquid. Water freezes at

0oC and boils at 100oC, reacts neutrally andconstitutes a poor conductor of electricity, a good

ionizing agent and a good solvent.According to Quality and Standard Authority of Ethiopia

(QSAE), industrially processed and bottled water can be classified into two major groups:

bottled drinking water (ES 597:2001) andmineral water (ES 621:2001). The former is further

classified into carbonated “sparkling” naturalwater and non-carbonated “still” natural water. If

water has been made after possible treatment,effervescent by addition of carbon dioxide then

it is called carbonated natural water. Non-carbonated water is by nature and after possible

treatment does not contain free CO2, in excessof the amount necessary to keep dissolved the

hydrogen carbonates salts that are present in thewater. In this study, the non-carbonated “still”

natural water has been considered

1.4Location Map of the Area.

The project is to be located in Oromia regional state, East Bale zone, Goba district is one of

theadministrative parts of east Bale zone which occupied about 2.384 square kilometers of land

outof the total area of the zone (69,661km2) this coverage of land leads the district to have a

share of 3.4% of land out of the total area of the zone the district capital is Ginir. The capital of

thedistrict (Goba woreda burkitu kebele ) has a distance of 133 km from zonal capital robe and

633km from the capital city of the region and the country of a country, Finfine.

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Project Proposal on Mineral Water Bottling Plant

1.2.2. Physical and Natural Conditions

Goba district is located in the eastern part of East Bale zone it is located to the east of sinana

andGoro, south of Gololcha, north of Dawe Qachen and West of Rayitu and Sawena. The total

areaof the district is about 2,384km2 which ranked as the 8th largest district in the zone and

their areaaccount about 3.4 % out of the total area of the zone (69,661km2) the administrative

center of thedistrict is Ginir town and has 29 peasant associations with 19,150 member of

peasant association.The lowest and highest altitude of the district is extended from 1200m

below sea level which islocated at the southern extreme corner of the district to 2406m above

sea level which is foundalong the northern margin of the district respectively. From the total

area of the district about85% is plan land, 3% is mountains and 12% is rugged and gorge. The

annual averagetemperature is 25.45 where as the minimum and maximum temperature is

23.20c and 27.70crespectively. The annual average rainfall is 700mm where as the minimum

and maximumrainfall is 200 and 1200mm respectively.

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 Project Proposal on Mineral Water Bottling Plant Goba district have numerous rivers which

endowed in nature. It is estimated that there are aboutnumerous perennials river, seasonal

reveres and spring in the district. The well known springs inthe district are milika, Habursha,

Chancho AND Perennials river & seasonal rivers of the districtdinkit, Tebel, Burk, Ada, Fo’a and

Alock. By serving drinking water for livestock and local people in addition it have significant use

irrigation.

1.2.3.Population

Population distribution is realized in terms of variation in occupying the land surface of the

earth.Thus, spatial distribution of population in pattern created as a result of human occupation

on landsurface of settlement. Population is unevenly distributed in Goba woreda burkitu kebele

district.Since the majority of population is engaged in agricultural activity the rural population

has 85 percent out of the total population of the district. The district had a total population of

165,693 in2013, of which 25,925 was urban residents. Thus, there are high concentrations of

population inrural areas of the district than urban areas. The urban population has only 15.6

percent of total population.

1.2.4. Climate

The average annual temperature of Bale zone is 17.5oC. The maximum and

minimumtemperatures are 25oC and 10oC respectively. The mean annual rainfall of the zone is

875mm,whereas maximum annual rainfall 1200mm and minimum annual rainfall 550mm and

recordedin the zone.Bale zone has diverse landscape that causes varied microclimate of an

area. This accounts for the possibility of producing variety of crops. Climate plays decisive roles

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on the activities of agriculture. Agriculture, on the other hand, is an important economic sector,

on which the life of the majority depended. In addition, climate, particularly, temperature and

rainfall are the twodeterminant elements for the success of agricultural production.Bale zone is

characterized by a great diversity of thermal zones as a result of its wide range of altitudinal

extent:Warm Temperature zone (11%): Districts of Rayitu, Sawena, Laga Hida, Meda

Walabuand Gura Dhamole

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Project Proposal on Mineral Water Bottling Plant Moderately cool temperature zone (18%):

parts of Gololcha, Gasera, Sinana, Dinsho,Agarfa, Goba, Gura Damole, Harena, Mena, Ginir,

Goro and Mada Walabu districts of the zone.Cool thermal zone(8%)-: Around the

escarpment;Cold Temperature areas (3%): around summit of major mountains (specifically in

thedistricts of Goba, Sinana, Dinsho and Agarfa.

1.2.5. Soils

In Bale zone, about 30 types of soil (according to Atlas of Bale zone, July 2004) have

beenidentified. The major are as follow;Chromic and Pellic Vertisols: These are clay Black

Basaltic soil which mostly developfrom tertiary volcanic rocks this soil are very fertile they fairly

good Agricultural potential .However, they have a limited agricultural use. The Soil shrink,

develop deepcracks and become very hard in dry season. They swell and become sticky during

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the wet(rainy) Seasons. Besides, because of their low permeability, they are more prone to

water logging during the rainy season. It occupies central highland of Sinana, Dinsho,

northernMena, Gasera, Gololcha, and part of Ginir and Goba.Dystric, Chromic, Eutric, Calcic

and Vertic Cambisols: They develop from recentlava and linked with sedimentary rocks .Their

Agricultural value is limited as they aremostly found on rugged and steep terrain. For this

reason this type of soil left under natural plant cover. It is found in the lowland of Sawena, Laga

Hida, Gura Dhamole,Meda Welabu, Eastern Ginir and southern Rayitu.Chromic, Orthic and

Vertic Luvisols (associated with alluvial accumulation of highclay continent): Soils are usually

dark brown or reddish and suitable for agriculturalactivities. Found on plateau of the central

and northwestern highland of Goba and Agarfa.Dystric and Eutric Nitosols (deep with high clay

continent): Soils have goodagricultural potential (good physical and chemical properties, stable

structure and highmoisture storage capacity). Located around flat or gentle slope terrains of

thenorthwestern part of Mada Welabu and western section of Mana and Harena Buluk

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Project Proposal on Mineral Water Bottling Plant (Eutric Nitosols) or eastern part of Sawena,

central and southern Laga Hida, southernGinir and extreme parts of Rayitu (Dytric

Nitosols).Calcaric,Calcic and Halphic Xerosols: Soils are develop under dry condition

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and,therefore, have low agricultural value (poor physical and chemical properties).

CalcaricXerosols are found only in eastern Rayitu; Calcic Xerosols are located in

westernsawena(bordering Ginir); Halphic Xerosols are specifically found in the central part of

Gura Dhamole.Orthic Solonchak: Soils have high salt continent and usually associated

withsedimentary rock formation. Unless they are desalinized, their agricultural value

isrestricted to grazing. Located around eastern and central Rayitu and western boarder of Meda

Welabu (along the deep gorge of Genale).Economic acviesLike that of other parts of the

country the majority of the population of the district resides in ruralareas and gets their

livelihood from agriculture. The economy of the people is depending on peasant agriculture i.e.

crops farming and animal rearing. The town dwellers, however, engagedin different commercial

activities like wholesale& retail trade where agricultural products andmanufactured industrial

goods are traded currently private investment activities are also widelyundertaken in the

project area.

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Project Proposal on Mineral Water Bottling Plant

2. GENERAL MARKET STUDY AND PLANT CAPACITY

2. MARKET STUDY

2.1. Past Supply and Present Demand

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The country’s requirement for purified water is met through domestic production and

imports.Domestic production, imports and total supply averaged at 404,950 hectoliters, 789

hectolitersand 405,740 hectoliters, respectively. Thus, domestic production, on the average,

accounted for 99.8 percent of the total supply of purified water in the domestic market,

revealing the relativelylimited share of imports (0.20%) in the total supply of the productDuring

the period 1997-2006, the maximum total supply (apparent consumption) of purifiedwater was

448,983 hectoliters in the year 2006, while a minimum of 376,755 hectoliters wasregistered in

year 1997. In the remaining years, apparent consumption was fluctuating betweenthese two

extremes quantities. The mean of the total supply was 405,740 hectoliters and theaverage

growth rate during the period under reference was 2%.Accordingly, due to the fluctuating

nature of the products total supply, it appears moreappropriate to consider the average of the

last four years of the period under reference (2003 – 2006) which was 418,931 hectoliters as

the effective demand for the product for the year 2007.In estimating the present (2008)

effective demand for the product, since the consumption of purified water is associated with

the urban population, the demand for the product is assumed togrow at the rate of 4% which

corresponds to the annual growth rate of urbanization in theCountry. Accordingly, the present

effective demand for purified water is, thus, estimated at435,688 hectoliters.

2.2. Projected Demand

The future demand for purified water is a function of income, urban population growth

andgrowth of catering and recreational establishments. Accordingly, the demand for purified

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water is forecasted to grow at a rate of 4% which is equivalent to the growth rate of urban

population.

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Project Proposal on Mineral Water Bottling Plant Moreover, assuming that existing domestic

producers will maintain their current production(year 2006) for the future, the unsatisfied

demand for the product. After considering all the abovefactors, the demand for mineral water

is forecasted to grow at a rate higher than the growth of theurban population in order to take

account of effects of growth in income and other demanddetermining variables. Accordingly, an

annual growth rate of5.4%seems to be a reasonablegrowth rate to project future demand, and

the result is as shown in Table 3.

Table 3: Projected demand for mineral water

S/No.YearProjected Demand(Liter)Projected DemandGap (Liter)12012

119,249,718.106,109,568.1022013 125,689,202.886,439,484.7832014

132,476,419.846,787,216.9642015 139,630,146.517,153,726.6752016

147,170,174.427,540,027.9162017

155,117,363.847,947,189.4272018163,493,701.498,376,337.65

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2.3. Pricing and Distribution

Currently, the retail price of domestically produced purified water average is Birr7 per

liter.Allowing 40 per cent for wholesale and retail margin, the factory-gate price for the product

of the envisaged plant is estimated at Birr 5 per liter. The envisaged plant can distribute its

productthrough the existing wholesale and retail network, which includes department

stores,merchandise shops and super markets.

2.4. PLANT CAPACITY & PRODUCTION PROGRAMME (liters)

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Project Proposal on Mineral Water Bottling Plant The annual production capacity of the

envisaged plant on three machines is determined to be54,000,000of mineral water on a basis

of60,000 liter per Day one machine3 shifts of8 hourseach, per day and300 days per

annum.S/NBottled of Sizeper day production(8 hrs * 3 shift)*working days (300)Production

CapacityPer dayWorkingday1st year2st year3st year10.3 Ltr.0.6 Ltr.1 Ltr.1.5 Ltr.2

Ltr.60,00030018,000,00018,000,00018,000,00025 Ltr.60,000-18,000,00018,000,0003Jarr (20)

Ltr60,000--18,000,000Total18,000,00036,000,00054,000,000 ltr4Utilization of rated capacity

(%)75%85%100%

2.5. Material and Inputs

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A. Raw and Auxiliary Materials

The source of raw water for the proposed project is ground water, which is abundantly

availablein the foot of the escarpment of Bale Zone Goba Woreda Burqitu kabale Distrrict town.

Rawwater shall be supplied from a deep-well near the processing plant. The major auxiliary

materialsare polyethylene terephtalate (PET) bottles with pilfer proof caps, labels,

polypropylene rolls anddifferent chemicals required to sanitation, disinfection and other

purposes. PET bottles shall beimported in performs and preheated and blown to final sizes.

Caustic soda and Common salt islocally available while the other raw materials will be

imported.

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Project Proposal on Mineral Water Bottling Plant The raw materials required are PET Pre, PET

Pre, Pilfer – proof caps ,Label , Polypropylene for wrapping bottles, Rolls Caustic Soda, Dive rite

Deformer Common salt , Brill tak , Filter candle , Glue , Hydrochloric Acid , Hypochlorite, Largo

Medicated, P3 special, P3 stabilon mPorcelain ring . Silica Gel , Sulphuric Acid, Filter paper,

Manganese Greensand .

B. Utilities

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The major utilities of the envisaged plant are electricity, water, furnace oil, dry air

andcompressed air. There are two sources of water, i.e., municipality and own source. Raw

water used for processing shall be supplied by a submersible pump, installed at the project site.

2.6. Land requirement and land use plan

The area of land required for the proposed project is estimated to be10,000 m2. The

landrequirement of the project has been decided by taking the dimension of building and for

other facilities. The detail information is as follows:

Production Hall -------------------------------------------------------------- 10,700 m2

Office building ---------------------------------------------------------------- 500 m2

Guard house------------------------------------------------------------------- 100 m2

Toilet and shower room---------------------------------------------------------100 m2Warehouse

-------------------------------------------------------------------- 1,000 m2Raw material Store

---------------------------------------------------------- 1,000 m2End product Store

---------------------------------------------------------- 500 m2Show room

-------------------------------------------------------------------600 m2Parking and others

----------------------------------------------------------- 300 m2 Total land requirement

---------------------------------------------------- 20,800 M2

Promoter: Beshir Umar

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24
Project Proposal on Mineral Water Bottling Plant

2.7.Technology and Engineering

The processing technologies of mineral water are more or less similar. The major

differencearises from the type of bottles, glass or plastic. The glass bottles are normally reused,

about 6 to7 times before they are discarded. The type of plastic used for bottle making is

known as polyethylene terephtalate (PET). They are thin and shatter-proof containers, with

glass-liketransparence and exceptional strength which results in increased safety.Each type of

bottling has its own advantages and drawbacks. The glass bottles, for example, areheavier, i.e.,

costly to transports, are brittle and have danger of breakage and need be washedthoroughly.

On the other hand, they are reusable. Therefore, it has lower production cost. ThePET bottles

have some drawbacks such as relatively high production cost and larger factory floor area for

their manufacturing. However, they are lighter in weight and thus cheaper for transportation

less damaged while filling and easy for handling. Therefore, either of thealternatives can be

used based on the preference of the project owner. In this study the plastic bottle has been

considered.The production and bottling of purified water in PET bottles involves processes like

raw water storage and treatment, filling and capping, labeling and wrapping. The major

operation in water storage and treatment unit include water color removal, raw water pumping

and storage,chemical dosage, filtration using different types of filters, ultraviolet water

disinfection ozonegeneration with recirculation system. After proper water treatment, the PET

25
bottles areautomatically conveyed and transferred to the rinsing rotor where they are subject

to rinsing jets.

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant Then the bottles are transferred to the filling

and capping rotors. After labeling and sealing, bottles are transferred to the discharge

conveyor. The production process does not have anyadverse impact on the environment.

2.8. Bottling Line Process Flow Diagram

Promoter: Beshir Umar

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Bole UnsrumblerRising lling and cappingmachine 12000bphLabel inserng machine15000bph

Heat Shrink Tunnel

Project Proposal on Mineral Water Bottling Plant

26
3. MANPOWER, OGANIZATION STRUCTURE AND MANAGEMENT

3.1 Man Power

At the top of the organization structure, there will be a general manager with the responsibility

of supervising the overall activity of the plant. It is always true that Organization and

Managementof the project plays a key role and bear direct impact on the success and

profitability of the project. The opportunities of being serviced by well skilled professionals well

enable thecompany to evaluate the internal weakness and strength of the company as well as

to assess theglobal opportunity and risks in the world market so that the company can cope up

with thedynamics of the market situation.Therefore, it must particularly to the project under

consideration, to give especial affection toselect and recruit the appropriate total manpower

requirement for the plant will be employees atfull capacity.I)Permanent Workers :-

104Skilled :-50Unskilled:-54II)Temporary Workers:-56Skilled :-6Unskilled:-50

Promoter: Beshir Umar

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Date code printerShrink Wrapper 12000bph

Project Proposal on Mineral Water Bottling Plant The total number of manpower, manpower

list, qualification, and salary and sex composition arelisted in the table below.S/RWork

27
TitleQualificationNumberMonthly Annual SalaryPermanents salary head Expense1Plant

Manager Msc In Management14,000 4,0002Production HeadDegree holder in water sant.&

water resource 33,000 9,0003SecretarySecretarial science51,500 7,5004PersonalHRM22,500

5,0005Finance head Accounting & Publ. fina,12,500 2,5006AccountantBA. acct.51,200

6,0007CashierDip. Accounting101,500 15,0008Sales man Dip. Purchasing201,000

20,0009Marketing HeadMarketing31,200 3,60010Quality ControlChemistry32,250

6,75011Production Worker10+2 and above15 1,500 22,500

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant 12 productionSupervisorBs

management32,000 6,00013Packing Worker10+2 and above42 1,200

50,40014PurchaserPuch.mgt51,200 6,00015Store keeperDiploma Accounting41,400

5,60016Machine operator Technique electrics or Automotive52,000 10,00017Driver and load

Technique Automotive201,200 24,00018CleanerGrade 1041,200 4,80019GuardsGrade

1031,500 4,500Sub Total154 33,850 5,212,900Temporary1Auto MechanicDiploma in

AutoMechanic6 2,800 16,800Sub Total106 4,000 424,000Grand Total160 37,850 4,920,5003.2.

Organizational StructureThe organizational structure of the project is designed by including all

the necessary personnelunder the right division. At the top of the organizational structure,

there will be manager with theresponsibility of supervising the overall activity of the plant.

28
Depending up on the nature of thecenter and the amount of work to be performs; there exist

auxiliary units under the generalmanager.

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant Employees under each unit will be

supervised by the department head that is accountable for thegeneral manager. General

Manager is appointed by the owners. Fig: Organizational Structure

Promoter: Beshir Umar

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Owner General ManagerProduconDepartmentAdmin &

FinanceDepartmentCommercialDepartmentExecutiveSecretaryPre-

treatmentPackingInspeconAdmin. &HRMFinancialMarkengSales

Project Proposal on Mineral Water Bottling Plant Hence the following section deals with the

duties and responsibilities of some departments.

3.3. Organizational Management

29
Duties and responsibilities

1.General ManagerDuties and responsibilitiesShe/he will plan, organize, direct and control the

overall activities of the factoryShe/he will devise policies and strategies that will enable the

factory to be profitable.She/he will incorporate modern technological innovation that will

facilitate the servicedelivery of the project center and increase customer’s satisfaction.He/he

will plan, organize, direct and control the human and non-human resources of the plant so as to

achieve the short and long run objectives of the organization.

2.The Manufacturing DepartmentDuties and responsibilities:-It is the core department of the

project center and has the following responsibilities.Use modern manufacture, processing and

technologies that will enhance the qualityof those products.Produce quality product that will

enable the center competent both in the domesticand international market.Use appropriate

technology to manage its products.Control on the quality of raw materials, inputs, quality of

the product and also theoverall production process.Produce products in least cost so that the

profitability of the center is guaranteed.Moreover control over the quality of the final

products

3.Administration and Finance Department

Promoter: Beshir Umar

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30
 Project Proposal on Mineral Water Bottling Plant Duties and responsibilities:-Will plan,

organize direct and control the financial transaction of the plant by using theentire necessary

document.Will develop sound financial control system by developing modern financial

controlsystems.Will prepare the annual financial statements and prepare condensed reports

for thegeneral manager, owner and other concerned government body.Will control the

human and non human resources of the plant, which include: effectivehandling of the different

inventories of the machineries, equipments, raw materials,finished products, and devise

strategies of controlling against fraud and damage.Manage and execute The promoter

national and international procurement procedureAdminister and control The promoter

logistic resourceEffectively administer the promoter Procurement process domestically as well

asinternationally.Manage the public relation of The promoter/factory with external

parties/stakeholdersProvide and manage general supportive service to the plant.

4.Commercial DepartmentDuties and responsibilities:- Will handle the overall marketing

activities of the organization which include planning,organizing, directing, and

controlling.Provide cost estimates in preparation for securing ...Gather information on new

product design, profileApproval of new products profile & brand plan analyzes market

research.Plan and execute sales.Will develop effective customer handling strategiesWill

design and implement effective advertisement and promotion schemesWill develop the

marketing strategies for future project center’s development.Conduct both foreign and

domestic market research for expanding the sales of

The promoter Promoter: Beshir Umar

31
Page 28

Project Proposal on Mineral Water Bottling Plant All workers have responsibilities on each

activity they assigned for.

4.FINANCIAL REQUIREMENT AND ANALYSIS

4.1. Total Initial Investment Cost

The total cost of money that is required to estimated the envisaged mineral water bottled plant

isto be birr34,150,000.Table Total Initial Investment CapitalNoDescriptionCost1Land, Building

and Construction 10,812,848 002Machinery and Factory Equipments 13,375,000 003Office

Equipments 316,750 004Vehicles and Motors 3,300,000 00Total Fixed Investment Cost

27,804,598 005Initial Working Capital 3,015,357 006Pre Service Expense 225,500 00Total

31,045,455 00Contingency (10%) 3,104,545 00Total Initial Investment Cost 34,150,000 00 4.1.1.

Fixed Investment

A.Building and Construction

NoDescriptionLand requirement(M2)Unit costin Br.Total Cost inBr.1Production Hall25502,100

5,355,0002Warehouse14002,050 2,870,000

Promoter: Beshir Umar

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32
Project Proposal on Mineral Water Bottling Plant 3Office Building and Show rooms3002,400

720,0004Waste Accumulation175900 157,5005Green area ,loading unloading and

parking575300 172,5006Fences 200,0007Site Development 100,0008Design and Supervision

550,0009Land lease initial (10% and 1 year payment) 568,848Total021,625,695B.Required

Machinery Machinery and Equipment costNoDescriptionUnitQtyUnitTotal Cost (Birr)1Water

TreatmentL/sum4 1,600,000.00 3,200,000.00Feed tank Feed pumpMulti-media filter Cartridge

filter Middle tank Middle pumpFine filter Micron filter Final tank Final pumpOzone systemPipes,

valves and accessoriesControl equipment2Filling, Capping, and Packing UnitL/sum4

2,700,000.00 5,400,000Rinser, filler and capper Accessories for the above machineLight

checking boxCaps sterilizing cabinetShrink labeling m/cInkjet printer Conveyor with drive

motorExtension for conveyor Label inserting tableAir compressor 3Plastic Caps production

LineL/sum4 2,327,500 4,655,000Plastic injection machineAuto Loader Auto Loader Moulds for

caps4PET stretch Blow Molding Unit and caps L/sum4 120,000

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant production line60,000.00Stretch blow

molding m/c including 2 high pressure air compressors, 1 air receiving tank, 2air filters, 1 air

drier, spare parts and toolsMould for 0.3, 0.6, 1, 1.5 and 2 liter PET bottleMould for 5 liter PET

33
bottleMould for Jarr or 20 liter PET bottleTotal13,375,000C.VehiclesSNDescriptionQtyUnit

PriceTotal Price(Birr)Remark 1Pick Up 11,200,0001,200,000Duty Free2Worker Service

bus11,150,0001,150,000Duty Free3Forklift1500,000500,000Duty FreeTotal500000D.Office

EquipmentsSNDescriptionUOMQtyUnit cost (Br).Total cost (Br)1Managerial chair with tables

Unit15,500 16,5002Secretarial chairs with table Unit16,000 6,0003Office Chairs with

tablesUnit153,500 52,5004Managerial chairUnit34,500 13,5005Computer with

printerUnit515,000 75,0006ShelfUnit37,500 22,5007Filing CabinetsUnit14,500 6,7508Curtain

and CarpetLs 55,0009Telephone LineUnit22,000 4,00010Assembly chair and table Set 1 70,000

35,00011Other Misc. Office equipment 30,000Total72000

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant

4.1.2.Initial Working Capital

The initial working capital is established to be 6,030,714.00 birr A.Pre -Service

ExpenseSNDescriptionCost in br.1Project proposal 10,0002Environmental impact Assessment

15,0003Licensing fee and others 5004Promotion and adverting 150,0005Workers capacity

Building 50,000Total 225,500B.Raw materials and

InputsSNDescriptionUnitAnnualRequirementUnit cost(Birr)Total1PE5lt) Tpre from (0.3lt)PCS

34
560,0002.5 1,400,0002PET pre from (0.6,0lit)PCS 1,120,0001.7 1,904,0003PET pre from

(1lit)PCS 2,224,0001.8 4,003,2004PET pre from (1.5lt)PCS 1,680,0002 3,360,0005PET pre from

(2ltr)PCS 2,180,0001.6 3,488,0006PET pre from (5ltr)PCS 1,050,0001.3 1,365,0007PET pre from

(20ltr)PCS 620,0002.45 1,519,0008Pilfer-proof caps PCS 5,600,0000.185 1,036,000

Promoter: Beshir Umar

Page 32

Project Proposal on Mineral Water Bottling Plant 9Label PCS 64,724,1000.100

6,472,41010Polypropylene for wrapping bottlesRolls5,600,00013.5 95,40011Caustic soda and

differentchemicalKg5,040,240Total 29,683,250C.Salary ExpenseAs indicated in part three of this

study, the total cost of salary and wage is estimated to be4,920,500 birr .

D.Other Operating Expenses

SNDescriptionAnnual Cost in Br.Assumption Used1Property Insurance278,04610% of Fixed

investment cost2Audit and Legal Fee60,00010% of Salary3Uniforms37,8001% of FC4Telephone,

Fax and Postal18,0001000per month5Cleaning Gods Supplies24,00070*60br 6Repair and

Maintenance695,115900 per month7Advertisement400,0001000 per month9Stationery and

other officesupplies21,000700 per month10Electricity125,0000.45*150,000W per year

11Water 10,0002*1000 m3 per year 12Fuel190,0006500 lit*20 per year 13Oil and

lubricant19,00010% of fuel cost14Miscellaneous Expense60,0003,000 br month Total1,937,961

4.2.Financial Analysis and Statements

35
4.2.1.Underlying Assumption

The financial analysis of the envisioned mineral water bottling plant is based on the data

provided in the preceding sections and the following assumptions.

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant

A.Construction and Finance

Construction Period ……………………………………………18 MonthsSource of

finance………………………………………………30% equity and 70% loanBank interest rate

……………………………………………………………………10 %Tax holidays

……………………………………………………………………2 yearsOperating costs increase

by…………………………………………………………2%Operating costs and raw material increased

by……………………………………5%Utilities and operation expense …………………increase 3% per

annum after 2ndyearWages and Salary increase……………………Increase 3% Per annum after 2nd

year Sales …………………………………………..increase by 5 % per annum after 2nd year

B.DepreciationBuilding…………………………………………………………………………….5%Machinery and

Equipment ………………………………………………………..10%Office

Furniture……………………………………………………………………10%Vehicles

………………………………………………………………………..…..20%C.Working CapitalAccounts

Receivable…………………………………………………………….30 daysRaw material Local

36
…………………………………………………………..…..30 daysWork in

progress…………………………………………………………………5 daysFinished Production

……………………………………………………………..30 daysCash in hand

……………………………………………………………………...5 daysAccounts payable

…………………………………………………………….…..30 days

4.2.2.Source of Fund

SNDescription% shareAmount(in birr)1Owners Share30 10,245,0002Bank Loan70

23,905,000Total100100

4.2.3.Loan Repayment Schedule

YearPrincipal PaymentInterest (10%)Total Annual PaymentRemaining Balance000010,245,000

Promoter: Beshir Umar

Page 34

Project Proposal on Mineral Water Bottling Plant

11,024,5001,024,5002,049,0009,220,50021,024,500922,0501,946,5508,196,00031,024,500819,

6001,844,1007,171,50041,024,500717,1501,741,6506,147,00051,024,500614,7001,639,2005,1

22,50061,024,500512,2501,536,7504,098,00071,024,500409,8001,434,3003,073,50081,024,50

0307,3501,331,8502,049,00091,024,500204,9001,229,4001,024,500101,024,500102,4501,126,

9500

37
4.2.4. Annual depreciation schedule of the fixed Asset ( birr)

DescriptionInitial valueAnnual depreciationRate ValueBuilding & construction 10,812,8485%

540,643Machinery& Equipment 13,145,36410% 1,337,537Office furniture &

equipment316,75010% 31,675Vehicles3,300,37820% 660,000Total-- 2,569,817

4.2.5. Balance Sheet (Beginning)Asset

Current AssetValue in BrCash3,330,046Inventory of raw material and input3,015,371Total

Current Asset6,345,416Fixed Asset-Land, Building and Construction10,812,848

Promoter: Beshir Umar

Page 35

Project Proposal on Mineral Water Bottling Plant Machineries and Equipment13,375,000Office

Equipment316,750Vehicles3,300,000Total Fixed Asset27,804,598Total

Asset34,150,000Liability-Account Payable23,905,000Owner Equity-Capital10,245,000Total

Liability and Owners Equity34,150,000

Promoter: Beshir Umar

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38
Project Proposal on Mineral Water Bottling Plant

4.2.6.Revenue Projection

Based on the assumption of plant capacity, production program and pricing of this paper, the

revenue of the project at full capacity projected in the table below Descripon Measurement

Project Year123456789101 Produconof 2 literboleLit60,00001,000,000 1,100,000.00

1,210,000.00 1,331,000.00 1,343,100.00 1,477,410.00 1,625,151.00 1,787,666.10

1,966,432.71Price/liter88 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00Total

revenue480,00008,000,000 9,075,000.00 10,285,000.00 11,646,250.00 12,087,900.00

13,666,042.50 15,438,934.50 17,429,744.48 19,664,327.102 Produconof 1.5

literboleLit600,0001,000,000 1,100,000.00 1,210,000.00 1,331,000.00 1,343,100.00

1,477,410.00 1,625,151.00 1,787,666.10 1,966,432.71Price/liter77 7.25 7.50 7.75 8.00 8.25 8.50

8.75 9.00Total

revenue4,200,0007,000,00079750009075000103152501074480012188632.513813783.515642

078.3817697894.393 Produconof 1 literboleLit1,200,0002,000,000 2,200,000.00

2,420,000.00 2,662,000.00 2,686,200.00 2,954,820.00 3,250,302.00 3,575,332.20

3,932,865.42Price/liter55 5.25 5.50 5.75 6.00 6.25 6.50 6.75 7.00Total

revenue6,000,00010,000,00011550000133100001530650016117200184676252112696324133

492.3527530057.944 Produconof 0.5 literboleLit600,0001,000,000 1,100,000.00

1,210,000.00 1,331,000.00 1,343,100.00 1,477,410.00 1,625,151.00 1,787,666.10

1,966,432.71Price/liter33 3.25 3.50 3.75 4.00 4.25 4.50 4.75 5.00Total

revenue1,800,0003,000,00035750004235000499125053724006278992.57313179.58491413.9

39
759832163.55 Totalannualrevenue 16,800,000.00

28,000,000.0032,175,000.0036,905,000.0042,259,250.0044,322,300.0050,601,292.5057,692,86

0.5065,696,729.1874,724,442.98

Assumption :- Annual production in the 1st year is2,520,000liter and increase by 10% annually

after the 2nd year.

Promoter: Beshir Umar

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Project Proposal on Mineral Water Bottling Plant

4.2.7.Income/Loss Statement

S.NDescriptionYear(E.C)123 and after 1Sales Revenues63,600,00084,800,000106,000,0002

Purchase of raw material 35,619,90047,493,20059,366,5003Gross

Profit2798010037306800466335004

Salary expense787276837306800466335005

Other operating expenses 50,000 50,000 50,0006

Depreciation Building andconstruction 1,081,2851,081,285 1,081,2857

40
Depreciation vehicles 1,120,151 1,120,151 1,120,1518Depreciation machinery equipment

629,073 629,073 629,0739Depreciation office equipment 63,350 63,350 63,35010Interest

Expense4780994302899215145011Lease Payment25069525069525069512Profit before

tax2192001922,4260152125866113Income tax (30%)7,612,451 14Net

profit6,060,08014,880,78417,762,386

4.2.8.Cash Flow Statement.

The liquidity position of the project can be seen from the project cash flow statement.

Accordingto this projection the project will be healthy financial position to repay all its debts.

This is because the analysis shows that the project will have positive cash flow throughout

theanticipated life.DescriptionYear 0Year 1Year 2Year 3Equity capital 10,245,000Loan principle

23,905,000 Net sale - 31,800,000 42,400,000 53,000,000Total cash in flow 34,150,000

31,800,000 42,400,000 53,000,000Cash payment - - - -Purchase of rawmaterials - 17,809,950

23,746,600 29,683,250Salary Expense - 3,936,384 4,428,432 4,920,480Pre Operating Expense

225,500 - - -Investment 27,804,598 - - -Other operating Cost - 1,937,961 1,937,961 237,941Loan

Repayment - 4,781,000 4,541,950 3,466,225Lease payment 687,848 125,348 125,348

125,348Tax Payment - - - 3,806,226Total Payment 28,717,945 28,590,642 34,780,290

42,239,469Cash Surplus/Deficit 5,432,055 3,209,358 7,619,710 10,760,531Cumulative Cash

Flow 3,209,358 10,829,067 21,589,598

Promoter: Beshir Umar

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41
Project Proposal on Mineral Water Bottling Plant

4.2.9.Profitability

According to the projected income statement, the project will start generating profit in the

1styear of operation. Important ratios such as profit to total sales, net profit to equity (Return

onequity) and net profit plus interest on total investment (return on total investment) show

anincreasing trend during the lifetime of the project.The income statement and the other

indicators of profitability show that the project is viable.

4.2.10.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 at the3 years of

operation.Mr.Bashir Mohamod is an Ethiopian Entrepreneurship engaged in

differentmanufacturing business to undertake investment projects in Ethiopia.Currently, he is

ready to commence Bottled Water Manufacturing Plant Projectwith diverse size of bottling, soft

drink and flavor in the country. The capacity of the plant is 400,000liters per annum to local and

international markets infuture. The plant will be located in BALE ZONE,GOBA WOREDA

BURQITUKEBELE DISTRICT , on a total of 12Ha land with a total investment capital of Birr

50,000,000.00. The project will have significant contribution towards the development of

socialand economic aspects of the country. The proposed plant project will createemployment

opportunities for a number of skilled and semi-skilled workersand it is expected to generate

42
employment opportunities for about 254 workers(134 permanent and 120 temporary

workers).Currently, the Promoter is trying to be an environmentally friendly company sothat

they have requested an EIA study. Therefore, TATU Consulting & TradingPLC has conducted this

Environmental Impact Assessment for the project. The

Promoter: Beshir Umar

Page 39

Project Proposal on Mineral Water Bottling Plant EIA report includes the policy, legal and

institutional arrangement of thecountry and the region, the description of the existing project

environment,identification of major potential environmental impacts as a result of thefurniture

products manufacturing as well as the environmental managementplan of the intended

project.Policy, Legal and Institutional Framework: Laws, Policies and institutionswere

considered for the dual purposes of identifying potential projectconstraints, and establishing

background for realistic, sensitiverecommendations. With this respect policy, legislative and

institutional issuesthat are most relevant to industrial projects in general and this Bottled

WaterManufacturing Plant Project in particular have been reviewed. This reviewfound the

following three programs and trends to have a strong bearing uponthe project:

1) National policies and strategies towards economic developmentand sectorial development;

43
2) environmental protection and conservation;Ethiopian Five Years Growth and transformation

Plan and

3) governmentalpolicies towards decentralization and local self-determination.Baseline

Environmental Condition of the Project Area: Environment isdefined as the surroundings or

conditions in which a person lives/operates orin which a particular activity is carried on. Those

pertaining to the project haveboth bio-physical and socio-cultural aspects. The land is obtained

from thegovernment through lease from the town administration.Adverse Environmental

impacts and suggested mitigation measures: Theadverse impact of the proposed project is seen

in three phases, i.e. pre-construction, during construction and during operation of the Water

BottlingProject. At each phase the impact on the surrounding environment is assessedand

appropriate mitigation measures is implied.

Environmental Management Plan: Environmental management is concernedwith

implementation of the measures necessary to minimize or offset adverse

Promoter: Beshir Umar

Page 40

Project Proposal on Mineral Water Bottling Plant impacts and to enhance beneficial impacts.

Unless the mitigation and benefitenhancement measures identified in the ESIA are fully

implemented, the primefunction of ESIA, which is to provide a basis for shaping the project so

thatoverall environmental performance is enhanced, cannot be achieved. In orderto be

44
effective, environmental management must be fully integrated with theoverall project

management effort at all levels, which itself should be aimed atproviding a high level of quality

control, leading to a project which has beenproperly designed and constructed and functions

efficiently throughout its life.Environmental Monitoring Program: Various kinds of

environmentalmonitoring and evaluation will be conducted by responsible staffs of

thecompany. The Environmental and Safety Officer will be responsible for most of the

monitoring activities and will report to the company top management in aweekly basis. The

company top management and affiliated units of the Oromiaregion Environment, Forest and

Climate Change Authority, such as technicaldivisions of the industrial pollution prevention and

control department willmake occasional and random monitoring, respectively. The monitoring

willinvolve both quantitative and qualitative data, as appropriate to the nature of the

information which will involve during the production stage of the project.

Conclusion and recommendations:

The project has multi-dimensionalbenefits. Even if the project has some negative

environmental impact, it hasnot severed less compared with other similar projects. Most

impacts appear inoperational phase especially raw material usage, packaging and solid waste

hasa great diverse effect on the environment and corresponding mitigationmeasures exist for

these adverse impacts of the project. The studiesrecommend the following points; The

proposed mitigation for negative impact should be appropriately managed. The monitoring

and Evaluation system should be efficient in each stage

Promoter: Beshir Umar

45
Page 41

Project Proposal on Mineral Water Bottling Plant Integrated waste management should be

properly implemented.Environmental management Implementation should be participatory

with the project stakeholders.

5.MENTAL IMPACT ASSESSMENT OF THE PROJECT

5.1 Socio Economics Environments

The owner will provide the land on bases and all required compensation will be paid for the

project. The livelihood of the local people around the project area is rural dweller of

variousoccupation and economic background.

5.2 Environmental Impact Assessment of the Project

Environmental aspects are fundamental for the sustainability assessment of the

currentcompetition marketing related plant. In this regard the factory will undertake a separate

anddetail Environmental impact Assessment.

Promoter: Beshir Umar

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