Project Proposal for Coffee farming

investment in Dawuro Zone Issera Woreda

Promoter: Desta G/Mikaeale

15/07/2015 E.C

Dawuro, Ethiopia

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Table of Contents page
Executive Summary ............................................................................................................................4
1. INTRODUCTIONS.....................................................................................................................5
1.1. Objectives of the project.......................................................................................................6
1.2. vision ......................................................................................................................................7
1.3. Mission ...............................................................................................................................7
1.4. Target Beneficiaries .............................................................................................................7
2. Description of the Project Area ........................................................................................................8
2.1. Background Information of the Area..........................................................................................8
2.2. Agro-ecology ...........................................................................................................................8
2.3 Natural resources.......................................................................................................................8
2.4. Major Crops growing................................................................................................................9
2.5. Infrastructures ..........................................................................................................................9
3 STUDY OF PROJECT SITE .......................................................................................................9
3.1. SOCIO –ECONOMIC STUDY.................................................................................................9
3.1.1. Surveying and Design of the Irrigation net work................................................................. 10
3.1.2. Land Development ........................................................................................................... 10
3.1.3. Water Controlling Structures............................................................................................. 10
3.1.4. Earth works ..................................................................................................................... 10
3.1.5. Land User Plan by crop Type ............................................................................................ 11
4. ENVIRONMENTAL IMAPCT ASSESSMENT ......................................................................... 11
4.1. Positive impact of the project. The positive impact of the project is:- ......................................... 12
4.2. Negative impact of the project. The project has the following negative impacts: ......................... 12
5. MARKET STUDY.................................................................................................................... 12
6 Situational& SWOT Analysis ............................................................ Error! Bookmark not defined.
7. FINANCIAL AND ECONOMICAL ANALYSIS OF THE PROJECT ............................................. 12
7.1. Capital Expenditure ................................................................................................................ 12
7.2. Source of capital Expenditures ................................................................................................ 12
7.3 Fixed investment ........................................................................ Error! Bookmark not defined.
7.4 working capital ....................................................................................................................... 14
7.5 Operational cost ......................................................................... Error! Bookmark not defined.
7.7 expected in come........................................................................ Error! Bookmark not defined.

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8 Financial Viability ............................................................................ Error! Bookmark not defined.
8.1 Income Statement....................................................................... Error! Bookmark not defined.
9. Plan of operation ....................................................................................................................... 19
10. ORGANIZATIONAL STRUCTURE & MANAGEMENT ...................................................... 20
11. project monitoring & evaluation ............................................................................................. 21

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Executive Summary

Project name: Ato Desta G/Mikaele coffee farm production

Project type: Modern Irrigation coffee farm Development

Promoter: - Ato: Ato Desta G/Mikaele

Project location;

 Region:-SWEPRs State
 Zone:- Dawuro
 Woreda:- Isera
 Kebele:- Cawuda,

Total land cover: 50 hectares

Employment opportunity: create for 18 individuals on permanent work and 25 on a casual basis

Total capital of the project: 13,473,350

 Equity capital (20% share) = Birr 2,694,670

 Bank loan (80% of share) = Birr 10,778,680

Expected net profit from project in five year of production: ETB 7,877,373.5

Social and Economic Benefit: increase quantity of coffee of export, employment opportunities,
generation of income, and use for the local people coffee consumption. Give coffee seedling to
farmers any without cost.

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 1. INTRODUCTIONS

Agriculture has been and still remains the mainstay of the Ethiopian economy. No less than 85
per cent of the population is rural, obtaining a living from a poor traditional agriculture.
Ethiopian agriculture is still mostly subsistence with very little dependence on long
distance trade. Nearly a century ago, the integration of the Ethiopian economy into the world
market, among others, facilitated the export of such primary agricultural goods as coffee and
characterized with high volume and low price. Coffee Arabicahas always been and remains an
indigenous produce in the same way as teff, false banana and anchoteare. Therefore, Ethiopian
coffee has never been a colonial crop, which was neither introduced by a metropolitan colonial
state nor produced for the consumption or benefit of it.

Ethiopia became one of the major coffee producing countries in the world with a world supply
share of nearly three per cent to date. Coffee constitutes the country’s largest export commodity
that in 2007/08 reached 35.4 per cent and in 2011/12 was at 26.4 per cent of the country’s export
income. Consequently, the estimated size of the population in the country dependent on coffee
production and marketing well passed the 15 million mark and can be estimated at 20 million.
According to ICO, total annual production in 2012/13 was 486,000 tons, making Ethiopia
the fifth largest global coffee producer and the first largest in Africa. It should be noted that, as
shown in Table 2.4 (Annex 2), due to its large domestic consumption, Ethiopia is the tenth
largest global coffee exporter. A large proportion of Ethiopian coffee is attributed to labour
intensive smallholder agriculture, such that forest coffee accounts for about 10 per cent of the
total coffee production, semi-forest coffee for about 30 per cent and garden coffee for about 50
per cent.

In conclusion, the coffee sector is extremely important for the economy of the country and for its
own development for the following factors:

1) As a source of cash income and major provider of employment, coffee supports

millions of farming families throughout the country, especially in the western, southern, and
south-eastern parts of the country. The estimated size of the population in the country
dependent on coffee production and marketing for its livelihood is about 20million.

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2) Coffee remains first in terms of revenues generated from export with a share of about 26 per
cent.

3) GTP, assigned great importance to the development of the sector Coffee production has high
potential to increase.

4) The coffee sector can contribute to the increase in the contribution of the industrial sector and
the later, in turn, to the national GDP owing to the high potential residing in coffee roasting.

Ethiopians are heavy coffee drinkers, ranked among the largest coffee consumers in the world,
such that about half of Ethiopia’s coffee production is locally consumed. Coffee in Ethiopia has
both social and cultural value. It is mainly consumed during social events such as family
gatherings, spiritual celebrations, and at times of mourning.

To overcome the problem related to produce good quality coffee bean that satisfy the customers
interest efforts should be made, towards developing the agriculture sector. This need as shift
from traditional and back ward method of production to a new and scientific method of
production system that requires a coordinated roll of all factors of production. In this process, it
is the private sectors should be pushed and encouraged by the government through adopting a
favorable economic police that allows the sector to play active role in the development process
without capital ceiling. In recognition of the important of the agricultural sector and
understanding the major reason behind the low state of the development of the agriculture sector
and understanding the major reason behind the low state of the development of the country, the
Ethiopian government has emerged with free market economic strategy and the adoption of an
economic policy, which acknowledges the role, and importance of the private sector investment.
This economic policy is promulgated with various initiatives for those who want to invest their
resource and knowledge in any profitable sector. Initiated by this favorable conditions the
promoter of this project Ato Desta G/Mikaele has decide to undertake irrigation based coffee
farm production in Dawuro Zone Issera Woreda. This business plan tries to explain the necessary
information like description of the area, project technical consideration, total investment, capital,
source fund and other basic economic points relevant to the project. Detail information on each
point is given in the subsequent pages.

1.1. Objectives of the project

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1.1.1. General objective
 To establish and produce quality organic coffee farm production for both local and export
Markets.
1.1.2. Specific Objective of the project

The Ato Desta G/Mikaele organic coffee farm production investment has identified several
objectives for the business.

1. Become a leading supplier of organic Arabic coffee for the local and world market.

2. Reach the point of sustainable profitability.

3. To create employment opportunity for the people of project area.

4. To introduce and promote modern farming system in the area.

Vision, Mission, and Key to Success

1.2. Vision
The projectors vision is to be the quality coffee producer farm preference in Ethiopia.

1.3. Mission

It is the Ato Desta G/Mikaele coffee farm production investment Mission to become the leading
provider of Arabica coffee to the local and World Market. This will be accomplished by
providing quality product at pair price while exceeding customer’s expectation.

1.4. Target Beneficiaries

In consideration of the general improvement that the project intends to generate in the coffee
value chain, the direct beneficiaries that will be the target of the project are:

1) Farmers’ cooperatives, unions and Coffee Roasters’ Association (ECRA).Small-scale

industries, roasting companies, industrial coffee based processors. Concerned public institutions
like; Ministries of Industry, Trade, and Agriculture etc. at central and local level.

2) Associations of the coffee sector (exporters, roasters etc.).

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Through capacity building and improvements in the coffee value chain, the ultimate beneficiaries
of the project that would benefit from an increase in export revenues, income as well as
working conditions and remuneration will be:

3) Smallholder farmers and their families living in project area.

4) All individuals and families that depend for their livelihood from the processing and
trading of coffee.

2. Description of the Project Area

2.1. Background of the project Area

The project is planned to implement in Dawro zone Isera Woreda, South West Ethiopia Regional
State. Dawro zone is bounded in the west part of the Konta Zone in the east, Loma and Diesa
woreda in the south and west direction and Chieda woreda in North direction. Issera Woreda
consists of 29 rural kebeles, one administrative town. It has a total area of 110,018km2 . The
administrative town of woreda, Bale is located about 582 km away from Addis Ababa in
southwest direction. According to Central Statistical Agency (CSA), it has a total population of
106,500with 98% are rural dwellers and the remaining 2% are urban dweller.

2.2. Agro-ecology
Isera Woreda possess 24% high land (dega) 45.2% of intermediate highlands (Woynadega), of
and 30.8% semi-dry lowlands (Kolla). Its altitude ranges between 900-2500 meters above sea
level (masl). Rainfall occurs in two distinct rainy seasons, namely' Kiremt’ rains (which is big
rain season) occurring in summer (roughly in June, July August and September) and ’Belg'rains
(which is the smaller rain season) occurring in spring (roughly the mid-February to mid-May
period).

2.3 Natural resources

Issera Woreda is one of the potential woreda with diverse and conducive environmental
condition, for crop and livestock production. It is known by its coffee potential producing areas
in Dawro zone. Moreover it has a potential of all season 2 rivers all are potential resources for
developing small to large scale irrigation schemes. The soil, natural vegetation, topography and
weather condition of Issera Woreda are the major natural resources of which livelihood of the
m¢6rity of the rural dwellers depends on it. Moreover it has modest climatic and agro ecological

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zone for human settlement and agriculture. Therefore, these make the Woreda an ideal place for
agricultural investment in the region.

2.4. Major Crops growing

The first six top annual crops grown in 'Meher' season in Dawro Zone Woreda, based on
production area maize, teffe, barley, wheat, haricot bean, sweet potato and sorghum. Others
minor crops grown includes vegetables, Hours bean, field pea taro, yam, ground net and cassava.
Major perennial crops grown are Coffee, Enset, and Banana, Mango and Avocado and orange.
The Woredas office of agriculture development has tried in promoting some improved maize,
haricot bean, tiff, potato and coffee. However, the overall productivity is low as compared to the
potential of varieties.

Regardless of these potential the Woreda has very few investors particularly in agricultural
sector. On the other hand, the National Growth and Transformation Plan (GTP) promote local
investors involvement in all service and economic sectors to play their role. Despite all these
efferent, local investors are almost absent as compared to other woredas in the region mostly due
to its remoteness and fragile access to infrastructure facilities until the recent past. Therefore,
jobless youth and woman associated socioeconomic problems are very rampant now days. The
owner of Ato Desta G/Mikaele organic coffee farm project is dedicated to engage to invest on
agriculture so as to play their role in increase coffee production of the Woreda.

2.5. Infrastructures
The infrastructure of the woreda would be in the direction of positive development. All weather
roads were already constructed. This can be creating good opportunity to transport agricultural
products to the central market

2. STUDY OF PROJECT SITE

The project Study has planned to produce as main product coffee bean and Spice for local and
export market. The total project area is 50ha. Out of this amount of land 1.5 ha will be planned
for office building and nursery site. The project will starts with 20 ha of land with coffee
seedling plantation and attain full land development capacity of 48.5 ha by adding 28.5 ha for
come plantation at the second year. While developing the crops, civil works, acquisition of
machinery and equipment’s and office furniture's will be done. Hiring of employee (permanent
and temporary) is also under taken at this phase.

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3.1. SOCIO –ECONOMIC STUDY

3.1.1. Surveying and Design of the Irrigation net work

The lay out for irrigation network to be adopted is primarily by gravity. Other high-tech
irrigation system will be used at a later stage. This method involves the sitting of the canals and
field furrows in conformity with the natural features of the field to minimize the earth works
required for leveling. The lay out design works, canal crossings with necessary culverts, the
location of the feeder canals, control structures and off-takes and the probable location of the
major cheeks on canals will be under-taken in detail.

3.1.2. Land Development

Most of the project area is uniform however small portion of the field needs leveling for the
construction of the canal network. The slope of the land is suitable for irrigation development.
Few bushes of Acacia trees need to be cleared.

3.1.3. Water Controlling Structures

For proper control and management of water the following hydraulic structures will be
constructed. These structures include off-takes structure from canals, pipe, culverts, drop
structures, etc.

3.1.4. Earth works

Mall canals, secondary canals, tertiary canals and field canals will be constructed. The canals
that need to be raised from the existing found will be compacted for proper and efficient
irrigation system.

4. Situational & SWOT Analysis

Table 4. SWOT analysis and strategy development

STRENGTH STRATEGY
Sales and marketing- currently Maintain and grow market share by improving
marketing and promotions both within and out
holds largest market share from the export
of the country
items
Location- suitable agro-ecology for coffee and Provide quality products in large amount to
spice production and availability of road that attract the coffee buyer
link with national coffee market center

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Skills- Knowledge, skills and experience of Train and develop staff to deliver superior
managers in running successful coffee and quality of products and services
spice businesses previously
Financial- owners access 30% to financial Fund training, marketing
resources and strong cash flow from operation
WEAKNESS STRATEGY
Location- capped capacity due to limited Investigate the option of negotiating
investment acquisition of additional land from adjoining
OPPORTUNITY STRATEGY
area
Economy-Well positioned to take advantage of Expand marketing and promotion and maintain
a strong economy, low interest rates and high prices at current market level
disposable income
Physical Factors- public transport and Increase advertising to attract new clients
infrastructure in the direction of progress

3.1.5. Land User Plan by crop Type

The project under reference has a total area of 50 ha. Out of which it is planned to develop 20 ha
for coffee in the first year and full plantation of 48.5 ha with coffee seedling will be attain at
second year.

Table 1: Land use plan of the project

No Plant Area coverage in Ha Year and area coverage

Type
Year 1 Year 2

1 coffee 50 21.5 28.5

4. ENVIRONMENTAL IMAPCT ASSESSMENT

The EIA of the project activities was determined by identifying the environmental aspects and
then undertaking an environmental risk assessment to determine the significant environmental
aspects. The environmental impact assessment has included all phases of the project namely
demarcation phase and operational or production phase. The project has both positive and
negative impact

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 4.1. Positive impact of the project:-
 Generation of employment opportunity

 Source income for the government through business income tax

 Income generation for the promoter

 Will be decrease greenhouse effect or air pollution of the area after coffee plantation

 Being exemplary for other investors who want to engage in the same business line.

4.2. Negative impact of the project. The project has the following negative impacts:
 Cleaning of existing forest in project area may be affect bio diversity and may
disturbance the of wild animal live condition in the area
5. MARKET STUDY

Marketing is the flow of goods and service from the production area to the consumption area. A
market is influenced by the factors such as price of products, size and income of population,
price of other Substituting Products, Religion, culture, etc. As Ethiopia is the main producer of
coffee Arabica and proximity Io European market gives a good opportunity for Ethiopian coffee
producer, but one has to think is that on quality of the produce as preference of buyer. Since Ato
Desta G/MikaeleAgricultural development will plant to produce high national and international
stipulated cash crop (coffee), these commodity nationally prioritized in the GTP-2 of the country
as an export items. Therefore, its market demand is assumed to be very high.

7. FINANCIAL AND ECONOMICAL ANALYSIS OF THE PROJECT

7.1. Capital Expenditure
Capital expenditure is equivalent to the total financial requirements of the project. In other
words, they are initial investment outlays required to enter operational stage. These capital
expenditures are constituted of fixed investment costs and initial working capital.

7.2. Source of capital Expenditures

The above forecasted project capital is planned to be raised from two sources. These two sources
are the promoter's equity contribution and loans from local Bank. The promoter of the project
plans to raise 20% of the total capital while the remaining 80% assumed to be obtained from the
local Banks. In summary, the promoter's contribution and bank loan will be:
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1. Equity capital= Birr 2,694,670

2. Bank loan = Birr 10,778,680

Total initial capital = Birr 13,473,350

7.3. Fixed cost of the investment

Fixed investment costs arc expenditures on the required fixed assets. The major components of
costs are constituted of expenditures on machinery and equipment. The rest will go to
construction civil works and the acquisition of office facilities. According to estimates made by
this project, the fixed cost will be Br 10,778,680.

Table: 7.3.1 Total fixed cost of the Investment

Unit Cost Total Cost (

Cost items Unit Quantity
No. (Birr) Birr)
A Machinery and equipment
1 Tractor 110 HP -125 HP Pcs 1 2,000,000 2,000,000
2 Track pcs 1 5,000,000 5,000,000
3 Disc Plough Pcs 1 150,000 150,000
4 Disc Harrow Pcs 1 120,000 220,000
5 Planter Pcs 1 100,000 100,000
6 Pulping machine Pcs 1 50,000 50,000
7 Trailer Pcs 1 150,000 150,000
8 Rigger Pcs 1 75,000 75,000
9 Chemical sprayer Pcs 8 1000 8,000
10 Farm tools Bulk - 100,000
11 Generator Pcs 1 350,000 350,000
12 Water Pump Pcs 2 100,000 200,000
13 Pipe and Fittings Set - - 50,000
14 Fuel Tanks Pcs - - 20,000

15 Workshop Equipment’s Set - 100,000

sub total 8,573,000

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B Building and Civil Works
1 Office M2 10 100,000 100,000
2 Residential houses M2 5 25,000 25,000
3 Launge M2 1 1000 50,000
4 Workshop M2 50 150,000 150,000
5 Pack house M2 200 150,000 150,000
6 Shed house for pulping machines M2 100 100,000 100,000
7 Input store M2 50 50,000 50,000
8 Grain store M2 100 150000 150,000
9 Fermentation tank M2 10 100000 100,000
10 Water recirculation system M2 - - 100,000
11 Constriction of lagoons M2 1 60,000 60,000
12 Reserve weir construction M2 25 2000 50,000
13 Machinery shed M2 25 2000 50,000
14 Generator/ pump house M2 25 1000 10,000
15 Shower and toilet M2 10 5000 50,000
16 Guard house M2 10 5000 50,000
Construction of irrigation
17 structures 410,680
18 Access and farm Road Km 20 350,000 350,000
Sub total 2,005,680

C Office equipment Set 200,000

Grand Total 10,778,680

7.3.2 Working capital

Working capital is part of annual operating costs and is required to make the project operational.
Except for same operational cost whose yearly expenses were taken as they are, some limited
monthly expenses were taken to forecast the working capital requirement of the project.
According to the forecast made in detail, the amount of initial working capital is found to Birr
2,694,670.

FINANCIAL ANALYSIS

The financial analysis of commercial coffee Farm project is based on the data presented in the
previous chapters and the following assumptions:-

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 Particulars Measure

Rate of Interest (Bank) 9.5 %

80% Loan

Source of finance 20% Equity

Discount rate 15%

Accounts receivable 30 days

Account payable 30 days

Raw material local 30 days

Raw material abroad 90 days

Work in process inventory 35 days

Cash on hand 5 days

Depreciation (Building) SLM* 20 years

Depreciation (Machinery) at 5% SLM 10 years

Depreciation(furniture & fixtures) SLM 20 years

Tax 30%

Tax holidays 5 year

Construction period 1 year.

Capacity Utilization 95%

Working Capital Cycle 1 month

Spare Parts and Maintenance 10% of plant & machinery

7.2. TOTAL INITIAL INVESTMENT COST

The total initial investment cost of the project including working capital is estimated at ETB
13,473,350

The major breakdown of the total initial investment cost is shown in Table 7.2

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 INITIAL INVESTMENT COST

Sr. No. Cost Items Total (in BIRR)

1 Machinery and equipment 8,573,000

2 Building and Civil Works 2,005,680

3 Office equipment 200,000

4 Working Capital 2,694,670

Total investment cost 13,473,350

7.3.3. OPERATION & PRODUCTION COST

The annual operation & production cost at full operation capacity is estimated at Birr 1.75
million (see Table 7. 3.3). The material and utility cost accounts for 37.39 per cent while
repair and maintenance take 4.32 per cent of the production cost.

Table 7. 3.3: ANNUAL OPERATION & PRODUCTION COST (in BIRR)

Items Cost

Raw Material and Inputs 375,000

Utilities 250,000

Maintenance and repair 171,460

Salary and wage 1,772,000

Administration Cost 250,000

Total Operating Costs 2,818,460

Depreciation 977,584

Other operating costs 50,000

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Total Production Cost 3,846,044

Manpower Requirement and its annual costs of the Project

Table7.3.3.1: Manpower Requirement of the Project

No Description Quantity Monthly Salary Annual Payment

1 General Manager 1 8,500 102,000
2 Farm Manager 1 7,500 90,000
3 Administration Financial Manager 1 7,500 90,000
4 Irrigation Agronomies 2 7,000 168,000
5 Accountant 1 7,000 84,000
6 Foremen 1 5,500 66,000
7 Security 2 2,500 60,000
8 Casher 1 5,500 66,000
9 Sales person 1 5,500 66,000
10 Storekeeper 2 3,000 36,000
11 Chief Mechanic 1 7,500 90,000
12 Track Driver 1 7,000 84,000
13 Tractor driver 1 7,000 84,000
14 Water Pump Operator 1 3,000 36,000
15 Cleaners 1 2,500 30,000
Sub Total 20 86,500 1,152,000
Casual labour 620,000
Grand Total 1,772,000

Total Depreciation costs per year

Table 6: Description Schedule

No Description Original value (Br.) Rate % Depreciation Per
year

1 Machinery and Equipment 8,573,000 10 857,300

2 Construction and civil work 2,005,680 5 100,284
3 Office furniture’s 200,000 10 20,000
Total 10,778,680 977,584

FINANCIAL EVALUATION

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7.7 production forecast
The project earns its revenue by selling the proposed out-put (coffee bean and spice). To be
competitive in the market. The selling prices of the project out puts are determined in such a way
that it does not impose higher price on ultimate consumers. Accordingly, the project expects total
revenue of 7,200,000 birr when it starts operated at full capacity.

Table 9 annual production, sales and revenue forecast

descri Total Out Total output (Qt) per year

ption Area put Yr-1 yr-2 yr-3 yr-4 yr-5 yr 6 Yr.7
in
Qui
ntal
per
Ha
Coffee 48.5 7 0 0 0 0 339.5 339.5 339.5
Sales Pric - - - - 10,185, 10,185, 10,185,
in Birr e 000 000 000
per
Qt
30,0
00
Costs 3,846, 3,076, 1,153, 1,153,8 2,307,6 2,307,6 2,307,6
of 044 835.2 813.2 13.2 26.5 26.5 26.5
produ
ction
Profit/ - - - - +7,877, +7,877, +7,877,
loss 3,846, 3,076, 1,153, 1,153,8 373.5 373.5 373.5
044 835.2 813.2 13.2

1. Profitability

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

5th years of operation. Important ratios such as profit to total sales, net profit to equity (Return on
equity) and net profit plus interest on total investment (return on total investment) show
an increasing trend during the lifetime of the project.

The income statement and the other indicators of profitability show that the project is
viable.

2. Break-even Analysis

The break-even point of the project including cost of finance when it starts to operates at full
capacity (year 5) is estimated by using income statement projection.

BE = Fixed Cost / Sales – Variable cost

= 10,778,680 / (10,185,000– 2,307,626.5) = 36 %

3. 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 within 9 years.

D. ECONOMIC BENEFITS

The project can create employment for 18 persons in permanent work and 25 individuals in
casual works. In addition to supply of the domestic needs, the project will generate Birr
7,877,373 per annum in terms of before tax revenue when it starts to operate at full capacity.
Moreover, the Regional Government can collect employment, income tax and sales tax revenue.
The establishment of such investment will have a foreign currency to the country by exporting
the coffee bean.

9. Plan of operation
14 Table: first phase project Implementation schedule

No. major Activities Date in E.C remark

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1 Land request processing March. 1,2015

2 Land approval Jun. 1,2015

3 Bank loan processing -

4 Office building Sept. 1- 30, 2016

5 Site Development Nev. 1- 30, 2016

6 Nursery establishing and Oct. 1,2016- Nev.30, 2016

plantation activities

10. ORGANIZATIONAL STRUCTURE & 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 manager with the
responsibility of supervising the overall activity of the building. Depending up on the nature of
the center and the amount of work to be performs; there exist auxiliary units under the general
manager. Employees under each unit will be supervised by the department head that is
accountable for the general manager.

General Manager is appointed by owner.

General Manager

Agronomist
Finance head
Irrigation expert
Technical assistant

Supportive staff
Forman

Daily laborer

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 project monitoring & evaluation
a. monitoring

The performance monitoring will be executed by promoter, if necessary with the support of
consultants, based on a detailed work plan. The baseline indicators will be established during the
Inception Phase for all the Project components. Day-to-day technical and financial monitoring
will be part of manager responsibilities. The PSC will also be responsible for the overall Project
oversight and guidance.

b. Evaluation

The Project will be subject to independent review processes assisted by the project
Evaluation Group. It will include:

• A mid-term review;

• A final evaluation.

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