Desalegn Bekele
KG SCHOOL
ESTABLISHMENT PRIVATE PROJECT
AT
Gurage ZONE, Emdiber City Administration .
Project proponent: ATO. Asaminew Desalegn
December, 2022
Emdiber, Ethiopia
1. EXECUTIVE SUMMARY
I. PROJECT NAME ……….Desalegn Bekele KG
II. PROMOTER NAME……… Asaminew Desalegn
III. LOCATION …SNNP Regional Government, Gurage Zone, Emdiber cityAdminstration.
IV. TOTAL LAND AREA REQUIRED……….6100 m2
V. EMPLOYMENT CREATION …………….15 employees
VI. TOTAL INITIAL CAPITAL………………...Br 5,000,000 ETB
VII. In the first face of the project the site will contain,2 class room, 1 rest room and 1 office room,
1Security room, two play grounds that includes different apparatus and facilities. In the
second phase all these facilities will be expanded.
VIII. SOURCE OF FUND:
o Owners’ Equity Contribution 30%
o Long term Bank loan 70%
2. Business intents
2.1 Vision
Emdiber Applied Academy is committed to open life-changing opportunities for children
through quality education. Education will always be a combination of cognitive, social,
emotional, physical and vocational stimulation. In this way a person can develop holistically as a
unique human being within her/his specific context and as a member of the wider community.
Our motto is “Best education service is the best community service.”
2.2 Mission Statement
Our mission is to support a model high quality international level school offering a cost-
effective, broad, and challenging educational program to infants and pupils in the greater
Emdiber Municipality, and later to the whole country.
A quality education is in short supply in those parts of Ethiopia. Children and their families are
caught in a vicious circle of ignorance and substandard education services. They are unable to
break the shackles of the gripping profit minded educators and ignorance. Quality and affordable
education is a major way to deal with this dire situation.
Emdiber Applied Academy believes that through quality education, the cycle of exclusion,
poverty, domestic violence and breakdown of families can be broken. However, our
understanding ofeducation means more than just a good grade.
2.3 The Business Opportunity and Need
Even if the number of residents in the town is increases from time to time there is no availability
of KG with a quality of services. Other schools give priority for primary grades students and
secondary grades students.
This gives Emdiber KG Academy a great field stretch to enjoy competition in the education
business in Entebbe.
2.3.1 School Description
The school will give all pre-school services to children, that enables children ready for primary
school. The school will be looking to lease premises for the start-up of KG classes 1-3 on a yet
decided location in the suburbs of Emdiber, Cheha.
3. The main objectives of the project are
The goal is the development of the child's social, mental and motor skills in a playful learning
environment. The teaching methods employed, and the games and toys used. Due account is
taken of the cultural requirements of the country concerned and the teaching is tailored to the
local culture.
In addition to regular kindergarten activities, pre-school programmes are provided, designed to
stimulate young children in line with their talents and prepare them for admission to primary
school. Coaching programmes are also available for children with special needs. Emdiber
Kindergarten program will be designed based on: -
The program will be based on accepted theories of child development.
The program will be individualized to meet the need of every child
Each family’s culture will be respected and family members encouraged to participate in
the program
The physical environment should be safe, healthy and contains a variety of toys and
materials that are both stimulating and familiar.
Children will select activities and materials that interest them and they will learn by being
actively involved.
Adults will show respect for children and interact with them in caring ways.
Staff will have specialized training in child development and appropriate programming.
4. Project Description
The promoter of the project has planned to construct a site that accommodates KG services, this
project proposal will generally use to improve the educational facility encouraging the ability of
childrenof the area and enhancing their talent. The project will have service delivery with
comfortable rooms and it will include: -
House structure with special emphasis to children’s.
Playing grounds with necessary facilities
Necessary amenities like bath, Kitchen, gust house rest room, toilet facilities.
Utilities like potable water, electricity, telephone will have with care and
concern.
Garden development strategy with different indigenous plants and grass will be
available to make the area comfortable to children.
5. Project Location
The project is located in SNNP Region Specifically at Gurage Zone, Cheha woreda Wereda,
Emdiber town. The total area of land required for establishment of the project is 8000m 2. The site
will be established with G+0 building it includes class rooms, rest rooms, offices, garden and all-
purpose play grounds for customers in 8000m 2.. The promoter of the project Ato. Asaminew
Desalegn has committed to take the land from the woreda through payment of the necessary
service cost in accordance with the land law of SNNP Regional State. This area is estimated with
the consideration and the following assumption that is the design consideration based on the
town plan and other revised plan like structural or master plan of the town. The promoter of this
project has the potential to implement as soon as having the legal permission to hand over from
land administration office, he is ready to implement with the plan of the city administration
(master plan), and other construction rule and regulation of the country in general. The design of
the project considers the following major points.
6. Market Analysis
As per recent assessment done by the promotor there is no KG school in the town. The
participation of private sector in educational services is very limited and this limited involvement
is on primary and secondary schools. Parents I the town needs pre-schools services to
theirchildren’s but the absence of kg schools obliged them to send their children directly to
primary schools without pre-school preparedness.
All the above facts assessed in the town shows that there is a market gap in the town. The
promotor of the project has full confidence that there will be no market problem because the
project is demand driven project.
.
7. Expected socio-economic benefits
Granting economic benefits is one of the results of implementation of a project properly designed
and implemented project will provide different parts of the society with significant economic
benefits as a result of project various economic benefits are supposed to be obtained as the
outcomes.
Some of the benefits are described below:
Parents will get chance to their childes for pre school facilities
Children’s will get additional skills
The developer will obtain income for the purpose of wealth maximization and personal use.
There will be a reduction of unemployment as a result of hiring employees in the business.
Investment will be encouraged when prospective investors observe implementation of the
project.
It generates an additional wealth at the national level for the future.
Supporting local economies by purchasing local goods and participating with small, local
businesses.
It gives happiness and mental growth to children’s and families of the town
To sum up the project generates grater economic benefits for local people and enhances the
wellbeing of host communities, improves working conditions.
8. Investment Area Required
The investment required a total of 8,000 M 2 to provide all necessary services as intended, the
required land is broken down as follows.
Purpose Number Land area Required
Office Rooms 2 500M2
Class Rooms 3 750M2
Play Grounds
With different amenities 4000
Parking 1 500
Rest room (additional 250
to food preservation 2
and Eating room)
Security room 1 100
Total 6100M2
9. Financial plan of the project
Financial plan assessment provides a wide range of information to help to plan marketing
strategy. While data such as market size may help you decide whether the market is worth testing
in, you also need to know how the market works. Any project without scientific financial plan
does live along period of time. So that the promoter is highly focusing the financial plan and the
total capital is expected to be 5,000,000ETB birr. The source of the finance to plant the project is
from owner capital. The financial plan/schedule/ would be explained as below.
No Source Percentag Amount in
e birr
1 Own capital 30% 1,500,000
2 Long term Bank 70% 3,500,000
loan
10. Investment plan
The investment out lay of the project may be classified as follows.
10.1 Out lays on tangible fixed assets
This consists of cost of land including registration, site development, fence and land cost paid for
the fixed lease period. this will be estimate on the proposed plot size since the location of the pot
is in central part of the market business center the current estimated lease period would be of
negotiated by the current lease payment, the proposed project will be built according to the role
and relation of the country as well as the local development plan of the town or the area.
The cost of building would be depending on the kinds of stricter or design required. therefore,
given the design of the building cost estimate are based on built up area and rate for various
categories of strict this will be estimated by taking total built up area (entertainment site) 8000
m2 and 10% contingency of the construction cost.
No Item Total cost;
1 Site Preparation 30,000
2 Construction cost:
Rooms 2,500,000
Play Grounds 1,300,000
GRAND TOTAL 3,830,000
The project will use locally made construction materials to make available space for
entertainment site and such station which are in very short supply currently.
10.2 Equipment requirement
These consist of furniture and fixture and other necessary equipment.
Cost of furniture and fixtures..................Birr 800,000
Cost of office equipment....................... Birr 220,000
Total...................................................... Birr1,020,000
10.3 Organization and management
The project will employ about 20 semi-skilled workers when operational. The project will be led
by general manager and the shift managers who would be reasonable for the day to day running
the project.
No Title No of staff Monthly paid Total monthly paid in
: birr
1 Manager 1 5,500*1 4,500
2 Accountant 2 3,500*2 7,000
3 Nurse 2 4,500*2 9,000
4 Teachers 4 5,000*4 20,000
6 Security Guards 3 1500*2 3,000
7 Cleaners 4 1500*2 3,000
Total 16 46,500
10.4 Implementation plan
The implementation schedules comprised of the period of hand over of the site to the completion
of the construction and make ready for rental and business. Thus, implementation phase includes
site hand over, project design, construction and implementation.
The tentative program is indicated as follows: -
Activities Time Duration
Application and site hand over 1 month December, 2022
Financial arrangement 2 month January- February, 2023
Building design & permit 2 month March-April, 2023
Mobilization and site clearing 1 month May, 2023
Construction 1years June 2023 - June 2024
11 FINANCIAL FORECAST OF THE PROJECT
Based on the fact that there is unsatisfied demand and potential demand in the area the promoter
strongly beliefs that the business will become successful. The future financial performance of the
business presented as follows based different assumptions.
Emdiber KG School
Projected Income Statement
For five consecutive years
Estimated Operational Year 1 Year 2 Year 3 Year 4 Year 5
activities
Service Revenue 2,400,000 2,640,000 3,050,000 3,650,000 5,320,500
Total Revenue
2,400,000 2,500,000 3,050,000 3,650,000 5,320,500
Less: Cost of service 720,000 792,000 912,000 1,095,000 1,596,150
Gross Profit 1,680,000 1,848,000 2,138,000 2,555,000 3,724,350
Less:
Operational Expenses:
Salary expenses 558,000 558,000 558,000 558,000 558,000
Interest expense 120,000 120,000 120,000 120,000 120,000
Depreciation expense 180,000 180,000 180,000 180,000 180,000
of non-current assets
Other expenses 60,000 70,500 80,250 100,250 120,012
Total Expenses 918,000 928,500 938,250 958,250 978,012
Estimated Operating profit 762,000 919,500 1,199,750 1,596,750 2,746,338
before tax
