LUNA EXPORT

SLAUGHTERHOUSE PLC

Luna integrated farm expansion

project proposal

Februarys
 2013
Table contents

1. Executive summary ---------------------------------------------------------------------------------3

1. Introduction----------------------------------------------------------------------------------------------58
1.1. General-----------------------------------------------------------------------------------------
--------5
2. Project Identification ------------------------------------------------------------------------------------6
3. Goal of the project ---------------------------------------------------------------------------------------6
3.1. Project of the project
--------------------------------------------------------------------------------7
3.2. Project activate
---------------------------------------------------------------------------------------7
4. Project input ----------------------------------------------------------------------------------------------8
5. Initiatives for the project establishment --------------------------------------------------------------9
6. Market analysis -------------------------------------------------------------------------------------------
6.1. demand and supply analysis
------------------------------------------------------------------------
6.2. past supply and present demand for oilseeds and cercal
crop-----------------------------------
a) oilseed production volume ----------------------------------------------------------------------
b) oilseed exports -----------------------------------------------------------------------------------
c) government imports -----------------------------------------------------------------------------
6.3. pricing and distribution for project
products------------------------------------------------------
7. technical analysis-------------------------------------------------------------------------------------------
7.1. project location climate and physical future
------------------------------------------------------
7.1.1. topography and agro-ecology ------------------------------------------------------------
7.1.2. Rainfall---------------------------------------------------------------------------------
8. Technical feasibility ---------------------------------------------------------------------------------
8.1. Reason for selected the area
-------------------------------------------------------------------------
8.2. Cropping pattern and land allocation
---------------------------------------------------------------
8.3. Crop yield and productivity
--------------------------------------------------------------------------

9.1. Seed requirement ---------------------------------------------------------------------------------

9.2. Fertilizer requirement of the
farm-------------------------------------------------------------------
9.3. Chemical requirements of the farm----------------------------------------------------------------
9.4. Land development of the farm--------------------------------------------------------------------
9.5. Fuel requirement---------------------------------------------------------------------------------

10. Fixed cost of the project

10.1. physical layout (building and construction)
10.2. machinery and equipment
10.3. vehicle required and cost estimate
10.4. office furniture and
11. implementation schedule and farm operation
12. Organization structure and power
12.2. Envisaged organization structure of the company
12.3. Man power requirements and viable
13. Investment cost of the farm
13.2. Fixed cost
13.2.1 Land development cost
13.2.3. Machinery and equipment’s
13.2.4. Buildings
13.4.5 Furniture and fixture
13.3. Vehicle
13.4. Pre-operating cost
13.4.1. Indirect costs
13.5. Annual deprecation cost estimation
13.6. Source of fund of the project
14. Bank loan repayment and disbursements schedule
15. Bank Loan repayment and disbursements schedule.
16. Financial Analysis
16.2. Revenue analysis
17. Benefits of the project
17.1. socio-Economic Benefit of the proposed project
17.2. Environment Friendly
18. Reporting, Monitoring and Evolution.
II. ANNEX

I. Executive summary
The current economic policy of the federal democratic republic of Ethiopia (EDRE) that
encourages private investment and the SNNPR’s encouragements are the major opportunities
and stimulants for investment and develop agricultural projects.

 Project name or title of the project Luna Integrated Farm

 Project type; agricultural sub sector Crop production
 Target productions;
Oilseed crops ( sesame, mung bean, soya bean, ground others)
Cereal Crops (maize, wheat, teff, sorghum and others)
Animal fattening pastoral farming & poultry
 Project location; SNNPR, in Gamo Zone, Dara Malo Wereda Keble Shelasubo
 Owner of the project; Tesfalidet Hagos
 Nationality;- Ethiopian
 Address city administration Addid Abeba; K/K bole, Wereda; 02, House no. 2129
 Phone No; + 251911211271
 Project capital (Budget); 16,481,494,80 EB
  Source of budget; birr 4,944,448.44 of 30% from owner (finance) and Birr 11,537,046.36
of 70% from bank loan
 Interest rate; 10%
 Payback period 10 year
 Requested investment land 200 hectare
 Job opportunity; 19 permanent and 61 temporarily (Casual) worker
 Generally, the project has a minimum of birr 9,820,000 gross income and birr
2,420,072.18 net profit. This indicates that the project is commercially and financially
viable.

Moreover, the Project Has Economic, Social, and environmental benefits. Some of the economic
benefits for the nation in wealth creation, enhancement of foreign currency earnings, job
opportunity, increasing government’s revenue in t5he form of tax. Some of the social benefits are
job opportunity for the vicinity residence, contribution towards poverty reduction, E.T.C

The total fixed project cost may be summarized as follow;-

 Land development …………………………….birr 314,400
 Farm machinery & equipment ………………..birr 4,106,480
 Buildings …………………………………….. birr 3,120,000
 Furniture……………………………………… birr 219,500
 Vehicles………………………………………. Birr 3,817,000
 Total fixed cost……………………………….birr 11,577,380
 Initial working capital………………………...birr 4,9904,114.80
 Total investment capital……………………….birr 16,481.494.80
1. Introduction
1.1. General backg

Currently agriculture dominated Ethiopian economy. The sector contributed to economic growth
truth providing for large proportion of the population.
It proved export products, food and industrial row material aid and industrial expansion by
providing for market domestically produced goods in the agricultural sector high value crops,
especial;;y sesame, mung, bean, groundnut and soya bean have great impact in providing export
market. Cereal crops like maize, leff, lowland wheat and sorghum are intended to produce
commercial purpose,. The crop generates the largest tax share from foreign trade.

Agriculture has been the back bone of our country since more than 80% of the population is
engaged in this sector and more than 60% of export earnings are also sourced from raw and semi
processed product of agriculture. Although Ethiopia has been on the right track in bringing rapid
growth toward modernize way of production the existing trend of utilization mechanization and
improved seed variety is still very low. This due to the reason that very know by holding
minimal hectare of farm land, its produces couldn’t be supplied for market where as consumed
by the household produce themselves. \

Thus in order to increase the quantity and quality of production of agricultural product, there
should be either intensification or extensive utilization of available land. This is mandatory to
achieve food self- sufficient goal by way of utilization modernize tools occupied in the sector to
mechanization and utilization of sleeted seed verity and scientific way of management (by from
pest and the soil fertility) rather than the traditional practice through adoption and diffusion but
due to resource limitation the country has been supporting intensification of the sector through
utilization of modern and mechanized tools been getting higher priority at national way at the
individual farmer as well as at each investor level in order to enable meet food self- sufficient a
long with increasing the quality and quantity of export by adding available value in the country.

Realizing the role private investment in driving economic growth and development, the
Ethiopian government and SNNPR have issued a new economic growth and development, the
Ethiopian government and SNNPR have issued a new economic policy that gives prominent
importance to the participation of the private sector subsequent to the new economic policy
number of macroeconomic polices have been calling the private sector to take part as partner in
building the economy of our country in general and SNNPR in particular.

Luna integrated form is a big company formed by Ethiopia citizen who has the aim to establish a
agricultural sector cereal crop, oilseed farming and animal production in Gamo Zone Dara Malo
Wereda Shelasubo Kebele to contribute its share as partner in development endeavor of the
region as well as the nation to this firm seeking objective that are consistent with the GTP2
Vision of employment creation and driving export opportunity it also aims at contributing toward
the sustainability of the robust economic growth the country has been experiencing over the last
several year.

2. Project identification
Project name or title of the project; lana integrated farm
Project type; agricultural sub sector crop production farm
Type of organization; plc
Project location; SNNPR, in camo Zone, Dara Malo wereda Shelasubo Keble
Owner of the project:- tesfalidet
Address city administration;- addis abeba; K/K; bole,wereda; 02, house no.2129
Phone no;- 0911211271
Project capital ( Budget) 16,481,494.80 EB
Source of budget; birr 4,944,448.44 of 30% from owner (finance) and birr
11=537,046.36 of 70% from bank loan.
Interest rate; 10%
Payback period 10 year
Requested investment land; 200 hectare
Job opportunity 19 permanent and 61 temporarily (Casual) work
3. Goal of the project

The main goal proposed projects are;-

1- General considerable profit for the owner in order to re-invest in other sector of
economics.
2- Offer employment opportunity for unemployment citizen.
3- To established better working opportunity for the young and educated Ethiopia citizen in
general and Gamo Zone Dara Malo Weeda people in particular.
4- To shere surrounding farming in modern fariming methods and technologies.
5- To supply the country expanding agricultural industrial with necessary raw material input
3.1. Objective of the project
Objective of the project is production of quality oilseed and cereal crop for domestic and foreign
market following major government policy framework which give emphasis to market orients
production in line with the following are specific object of the project.

 To develop 200 hectars of land with special sesame, soya bean, peanut and mug bean
seed.
 To generate attractive return to the investor also contribute to tax revenue to the
government.
 To introduce modern improved varieties of seeds and production and management
techniques to the surrounding locality.
3.2. Project activates

The affirmed goal and consequential objective will only be archived through the activities that
should be carried out are properly recognize and palmed activities are;-

- Preparing investment project proposal

- Submission of the project proposal to responsible governmental institution of approval.
- Obtaining acceptance of investment project proposal
- Obtaining the intended land for the proposal investment
- Budget founds for actual implementation
- Purchas of agricultural machinery, tools, construction material, furniture (office
equipment).
- Constructing campsite and office buildings.
- Getting well qualified administrative technical and professional expertise and daily
laborer for staring the actual implementation of the project
- Clearing the land for plowing and sowing oilseeds and cereal crops.
- Managing and recording all activity of the project work and reporting to the required
bodies.
4. Project input

The oilseed and cereal crop farming can be started using sesame seeds, soya been, mung bean
and Groundnut seed and owner choice of the seed variety to use will depend on; time to maturity,
yiesld, availability of seeds, target market preference, season, seed quality, adaptability, did ease
resistance among other factors. It is important that you purchase seeds from certified seed
supplirs.

Fertilizers are required to support the efficient growth of crops, by providing all the nutrients
needed by crops to grow to their full potential. Essential nutrients needed the growth of crop
include nitrogen, phosphorus and potassium. Organic matter is also important in tomato farming.
This can be in the form of composite, decayed leaves, animal manure e.t.c organic matter is a
good source of plant nutrients. Organic matter also increases the capacity of the soil to retain
water and nutrients. It’s s soil conditioner.

Other farming inputs required for crop farming business including herbicides, for effective weed
control at your farm. Pesticides and fungicides are required for protecting your crop plants
against insects and fungi.

The implementation of the project requires man powertr, material and financial input.

a) Personal;- the project needed new personal well be employee in the project this include
farm manager professional and supportive stuff, technical workers and daily laborers.
b) Material input;- these inputs are agricultural equipment, tools, machineries, generators,
construction material and furniture, office equipment, fuel, improved seeds, chemical and
pesticides.
c) Financial input;- financial resource are required to cover both personal needs of the
project. It is the back bone of the overall activates of the project.
5. Initiative for the project establishment.

The owner of this project have been engage in different kinds of business activates for more than
10 years which have the contribution to the intended rapid development of Ethiopians economy.
But talking in to account the Ethiopian government commitment to expand investment in the
country that stated on the next five year growth and transportation plan (GTP 2) that puts
investment at center of development , the ambition of the employing selected oilseeds and cereal
crops for the sake of satisfying local as well as foreign demand for the intended product.

6. Market analysis
6.1. An overview
In general, grain production in Ethiopia is dominated by geographically dispersed stallholder
farmers. There are clear regional variation in varieties grown and volume of grains produced in
the country. Some of the major consumption markets are located in the grains deficit producing
regions relying on grain supplies from the surplus producing regions or imports, giving rise to
both temporal and inter-regional grain trade opportunities. Therefore, this geographic variability
of grain production and consumption indicate the importance of efficient functioning grain
markets for the economic development and food security of the country. Particularly, with the
recent very high and rising food prices and concerns regarding its impact on producers,
businesses and national economy, there is a need for a better understanding of the performance
of a grain markets.

Ethiopian is one of the development countries in Africa whose economy heavily depends on
subsistence agricultural production by smallholders. The agricultural sector account for 46% of
gross domestic production (GDP) estimated at birr 44.86% billion at market price 85% of
employment and 75% of foreign exchange earning of the country. The country has huge
potential for agricultural development.

6.2. Demand and supply analysis

Because of every growing population, increase of income and ecological change at global lvel
the market opportunities for the country agricultural product particularly food and oil crops are
very attractive. These products are used for foodstuffs for individual consumption and seeds for
industrial processing as raw material. Through these product which have been the conventional
and major export commodities of Ethiopia; they need substantial improvement in the quality and
quantity to adhere the international and national market requirement to earn much more foreign
exchange proceeds to poverty reduction of fetch better price and reliable market to the
purchasers.

6.2.1. Past supply and present demand for oilseeds and cereal crop
A) Oilseed production Volume
The demand of sesame and soybeans is forecast to climb in yearly while Niger seed is expected
to remain unchanged from the previous year. Looking ahead, post expects demand of these
oilseeds will increase to meet the growing demand for cooking oil and livestock feed, most
 notably soybean meal for poultry production. The Government – backed integrated agro-
industrial parks (IAIPs) will offer now opportunities to process this anticipated increase in
oilseed production, suggesting that cooking oil imports couldn’t slacken in the future. One of the
planned parks in Amhara will reportedly have a processing capacity of 2 million netric tons of
oilseeds, more than double the volume of oilseeds currently produced in the country. This
anticipated increase is based on the assumption that investors will plant more sesame because of
higher local prices. Therefore, when the proposed project is implemented, it will have a hunger
market opportunity and profit.

Table 2.1; annual production volume of major oilseeds (metric tons)

Crop/year 2018/19 2019/20 Year to year variation % change

Sesaine seed 390,000 415,000 25,000 6%
Niger seed 300,000 300,000 - -
soybean 115,000 120,000 5,000 4%
Total 805,000 835,000 30,000
Source; FAS Addis Ababa Estimates

B. oilseed exports

oilseeds play an important role in Ethiopia’s exports. Table 2.1. Shows that over the last four
years, the country had annually exported an average amount of about 63,639 MT sesame, about
29,061 MT of Niger seed and about 63,169MT of soybean. It is also observed that the amount of
the exported soybean has been increasing at a higher rate while that of sesame demonstrated a
declining trend. This supply and demand crop production.

Table 2.2; Trends in sesame, Niger seed and export (206/17 to 2019/20, MT)

Year in Ethiopia Calendar Sesame Niger seed soybean Mung bean/ masho
2016/17 279,347 32,572 41,234
2017/18 275,021 30,077 88,803
2018/19 215,190 25,596 122,642
2019/20 285,000 28,000 0
Average 63,639.50 29,061.25 63,169.75
Source; Extracted from USDA/FAS Addis Ababa. Note; *FAS Addis Ababa forecast.

C. Government Important

The Ethiopian Government through NDRMC has been importing cereals (mainly Wheat) and
edible oils for food aid related interventions like the PSNP and respond to transitory
humanitarian needs. These Imports are used to address the chronic national food supply shortfall
and the consequent price increases. This has especially been the case since the 2008
unprecedented grain price increases. Food commodity imports like malt barley, rice, split peas
and processed food commodities have also been made through formal and informal channels.

Since investment has a significant role in replacing tis imported product with domestic
production, it is a appropriate to increase production and productivity by using new technologies.

Table 2.3. Trends in commodity Imports and local purchases by the NDRMC (2019/20 to
2020/21,21MT)

year IMPRT Local purchase ToTal

Wheat Rice Maize Maize What flur Local
Flour flour wheat
2019/20 600,000 6000 3,000 30,000 39,000
2020/21 300,000 4,000 40,000 18,000 1,270 63,270
Source; NDRMC

6.3. Pricing and distribution for project products

Current average farm gate price of oilseeds in the country is significantly increasing. This
increment in price is a doped or sale forecast of the project the farm is recommended to use the
existence distribution enterprise to supply both local and central market.

7. Technical analysis
7.1. Project location clement and physical feature.
7.1.1. Topography and agro-Ecology
Agro-ecology the area is characterized by sub-tropical low land of climes. The altitude of the
area is ranging from 1,275 to 1,900 meters above sea level within the range of ecology
recommended in Ethiopia for the targeted oilseeds and cereals.

With regard to topography the locality of the site falls with is slightly too moderate sloping plain
with suitable topography for oilseed for oilseed and cereal crop production. The land is well
drained and not expose to flooding hazard. Ragged land and steep slopes account for less than
6% the soil of the project locality is fertile with a high nutrient holding capacity for clay mineral
indicating that it is friable, and loamy with the good depth for cultivation of oilseed crops like
( Sesam, Mung bean, Soya bean and Groundnut) and cereal crops like (maize, low land wheat,
teff and sorghum. The topsoil is dominantly dark brown or brownish in color and fertile is main
tense by organic recycling through litter fall the numerous perennial plants in the project site.

7.1.2. Rainfall

Rainfall of the site is mono model type, which usually in mind march and continues up to mid-
October and is non- unification distributed in most year and utilization of scientific irrigation
technology by extraction of underground water is must for production of most crops and the
rainfall is well over 1100 mm and unfairly distributed in the year. The climate conduction of the
surrounding keble are highly engaged in the production stated oilseed and cereals. The intended
crops are a warm season crops; the optimum temperature for their growth is a about 24c 0 growth
and flowering plant are favored at 20c0

8. Technical feasibility

The Gamo Zone Dara Malo Wereda in general and the particular are the most ideal place for
oilseeds and like sesame, soya bean, mung bean, ground ant and vegetables as well as cereal
crops like maize, lowland wheat, teff and sorghum production. Even though the average annual
temper hurt of 24c and the existence of irrigation technology bringing out underground water
created favorable condition for the selected oilseed and cereals furthermore, altitude of for about
1000 and above sea level the type and area in near distance Justifies the suitability of area for
different type of crop growth as well as oilseed production on the other hand, concerned
government line office have long ago demarcate the area as one of the place where privet
investor could invest and participate in the development endeavors already underway in the
region.

8.1. Reason for selected the Area

The owner of this business has been searching convenient area for the purpose till dec 2022 and
thus major reason for decision of the company that enforce request the land are;-

- Existing project
- The selected land hasn’t been utilized and.

16. Financial Analysis

16.2. Revenue Analysis

The project will have certain amount of revenue from the sale of its farm crops at the initial year of
project life. But the oilseed and cereal crop product will be started harvesting from the end of second year
from 5 hector of the land that will be harvested from 40 hector of land allotted for the plant. As stated in
chapter two (see2.3.2) of this project analysis, the project major source of revenue is sale of produce. The
total revenue is expected to reach from birr 9,820,000 in the first year to 11,936,271 from the end year at
full production capacity.

Table 16.1. annually output volume and revenue estimation of the project

REVENUE Ann YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

price yield

Sesame 8500 130 1,105,000 1,160,250 1,218,262.50 1,279,175.63 1,343,134

Mung bean 7000 140 980,000 1,029,000 1,029,000 1,134,472.50 1,191,196

soya bean 6500 200 1,300,000 1,365,000 1,365,000 1,504,912.50 1,580,158
Groundnut 8500 250 2,125,000 2,231,250 2,231,250 2,459,953.13 2,582,951
Maize 2500 350 875,000 918,750 918,750 1,012,921.88 1,063,568
Wheat 7500 260 1,950,000 2,047,500 2,047,500 2,257,368.75 2,370,237
Teff 4500 110 495,000 519,750 519,750 573,024.38 601,676
Sourghum 4500 220 990,000 1,039,500 1,039,500 1,146,048.75 1,203,351
Total 9,820,000 10,311,000 10,369,013 11,367,878 11.936,271

16.3. Financial Outcome of the Farm Operation

Taking in to consideration of the operation activity cost and its income the project financial viability
testing criteria shows the following statues with respect to profitability, liquidity and rate of return along
the project period.

Profitability: as we can see from the project income statement or cost and revenue statement, the
project generates a sound financial benefit in its life. As indicated in revenue and loss statement
(annex1), paying a sustainable of obligation to concerned parties the outcome of the project
operation will result in gain of more than 2,420,072.18 birr in the first two year at full operation.
Generally, the project three to its entire life.

Liquidity: the project cash flow statement (annex 2) indicates that the project will generate
sufficient cash during the project period. It will grow from birr 2,034,840.55 in the first year of
operation to more than birr 12,404,568.18 (see annex 2) through 5th year operation after covering
all necessary cost and other obligation.

Payback period: payback period (PP) indicated the number of years to recover the investment
made. It indicated the rapidity with which the investment would replenish the capacity fund. In
this regard the proposed project will cover its initial investment in 4.5 years period. To determine
the payback period of the project the investment cost and income statement section of the
document are used (see annex 2).

Therefore, in all above aspect respect of financial feasibility yardsticks the project is viable, profitability,
liquid, returns investment in short period of time.

17. Benefits of the Project

17.1. Socio-Economic Benefit of the Proposed Project

Oilseeds and cereal crops are of vita economies importance to not only to Gamo Zone and SNNPR region
but to the whole nation of Ethiopia. They are become high value exportable crops and the country has
significant potential to benefit from these crops. The establishment of the plantation is meant to increase
the country foreign currency by producing quality product.

The proposed project is expected to offer employment opportunity to a minimum of 61 person (19
permanent and the rest temporary). The employment of casual of laborer during pick season could be as
many as 100. The project is expected to transfer improved crop management skill to the surrounding
farmer's trough the demonstration effect of the plantation and party through the employment opportunity
to be generate. The improvement of access rural around the farm would also be beneficial to the
community in various forms.

The project; furthermore, has the intention of distributing high quality and productivity sesame, mung
bean, soya bean and groundnut seed to the neighborhood farmers to improve the productivity of the sub
sector and there by income of the farm

The federal as well as the regional government would also receive substantial amount of revenue in the
form of different taxes include profit tax. The land rent also another income to the region

Expected positive social impact

 It would help in the introduction of new techniques and technology that increase productivity

 Development of off-farm activity associated with the project is expected to increase income of the
community

 There will be expansion of infrastructure like road, clinic, etc.

 Horticulture oilseed sector diversification in line with market-oriented system

 The project contributes to farmers capacity building skill transfer training and technical transfer

Expected Positive Economy Impact

Introduction of the production will help local community to improve production and productivity
and access to livelihood income source that adds change in their standards of living

The project would help framers produce a Varity of fruit and vegetable consequent increase
production and productivity

There will be effective irrigation water use and enable sustainable crops production and thus
increasing production and productivity

There would be better utilization water and land as a result of introducing modern farming
practices.

17.2. Environment Friendly

The technology of production that use in the production of the intended farm product has no potential
impact on environment. Good agricultural practice diminishes the use of fertilizer and biocides, erosion
and depletion of soil fertility will be minimized by introducing ago forestry techniques. Oilseeds and
cereal crops have agronomical uses which include; an excellent rotation of oilseed crops and cereal crops,
an excellent soil builder which improve soil texture, soil moisture retention and lessoning soil erosion and
resistance to drought and to end with, the project has a positive impact on environment.

18. Reporting, Monitoring and Evaluation

Monitoring and evaluation will be an integral part of the process implementation periodic monitoring will
be conducted by the project. Periodic monitoring focuses on follow up of the day-to-day activities of each
activities project evaluation on the other hand focuses on the impacts based on its achieving will be
processed on participatory with its stokeholds.

Monitoring

Monitoring activities includes measuring the physical performance and quantity of the work
done, correlation of the work done with set plan and time table.

Evaluation

Evaluation will be conducted three times during the project life year. At the beginning, in the
middle and at the end of project life years. The evaluation based on the overall goal and purpose.
The scope of the evaluation will be:

 The extent to which purposes the project have been fulfilled.

 The expected profit will be maximized.

 Impact contributed to socio-economic development of country

II. ANNEX

Annex-1

Profit and loss statement of the farm

Description project year

1 2 3 4 5
gross revenue 9,820,000 10,311,000 10,369,013 11,367,878 11,936,271
less: operating cost 4,440,576.39 5,108,483.80 5,108,483.80 5,108,483.80 5,108,483.80
income before dep & 5,379,423.61 5,202,516.20 5,260,528.70 6,259,393.70 6,827,787.57
inter
less: depreciation cost 768,473 768,473 768,473 768,473 768,473
income before interest 4,610,950.61 4,434,043.20 4,492,055.70 5,490,920.70 6,059,314.57
less: interest 1,153,704.64 1,038,334.17 922,963.71 807,593.25 692,222.78
profit before tax 3,457,245.97 3,395,709.02 3,569,091.99 4,683,327.45 5,367,091.79
less: tax(30%) 1,037,173.79 1,018,712.71 1,070,727.60 1,404,998.24 1,610,127.54
net profit 2,420,072.18 2,376,996.32 2,498,364.39 3.278,329.22 3,756,964.25
Annex-2

Cash flow statement of the farm

Description project year

0 1 2 3 4 5
owner's equity 4.944.448
bank loan 11,537,046.36
net profit 2,420,072.18 2,376,996.32 2,498,364.39 3,278,329.22 3,756,964.25
depreciation 768,473 768,473 768,473 768,473 768,473
total cash inflows 16,481,494.80 3,188,545.18 3,145,469.32 3,266,837.39 4,046,802.22 4,525,437.25
cash outflows
fixed asset cost 11,262,980
working capital 5,108,484
pre operating cost 110,031
principal payment 1,153,704.64 1,153,704.64 1,153,704.64 1,153,704.64 1,153,704.64
total cash outflows 16,481,495 1,153,705 1,153,705 1,153,705 1,153,705 1,153,705
net cash flow 2,034,840.55 1,991,764.68 2,113,132.75 2,893,097.58 3,371,732.62
cum. Cash balance 2,034,840.55 4,026,605.23 6,139,737.98 9,032,835.56 12,404,568.18

Annex-3

Summary of operating cost of the proposed project

No Description project year

1 1 2 3 4 5
2 direct cost 3,233,430.0 3,233,430.0 3,233,430.0 3,233,430.0 3,233,430.0
3 indirect cost 1,875,053.8 1,875,053.8 1,875,053.8 1,875,053.8 1,875,053.8
4 operation cost 4,440,576.4 5,108,483.8 5,108,483.8 5,108,483.8 5,108,483.8
5 annual depreciation 768,473 768,473 768,473 768,473 768,473
cost
Total 5,876,956.80 5,876,956.80 5,876,956.80 5,876,956.80 5,876,956.80
 Luna Integrated farm expansion project proposal

Promoter; Tesfalidet February 2023 Page 21