Gas Statione New Wende Edit
Gas Statione New Wende Edit
Gas Statione New Wende Edit
Table of -
Il. Grand Summary of the Project-„-—--—
I - I -Purpose of the Document--
7.1.
7.3. Income
8. Project Cost--
—
8.1. Project Financing-
—
8.2.
6. I. Target
6.2. Market
62,
62.2.
6.3, Market
7. Regulations
8.1.
6.3. Market
7. Regulations and
7.1.
7,2, Guidelines for Setting up of motor —fuel filling satiation-m
7-3, Income
8. Project Cost-—--—
8.2.
8.3.
8.4.
8,5, Suppliers-e
8.6. Furniture and
8.7. Office Equipment---—--—--—-—
8.8. Manpower Requirement-—--—--—-----—--—-----
2
7:30
9, Basis for
Financial
9.1. Inflation 9.2. Revenue Assumption-
mm-—
9.2, L Number of cars-e--
—-m-—--—--
92.2. Accounting
92.3. Taxable
92.4. First Year Allowanee-—-—--—-—-—- 9.2.5-
Multiple Shift
10, Financial
10.1, Profitability•—
10.2. Break-even
10. I . Monitoring---
o
92.5. Multiple Shift 92.6. Amortization for Primary
9.2.7- Working Capital—
9.2.7- I -Accounts Recei
— 9.2.7.2 .Advanee to
Employee—--—--—-—--—--— —
9.2.7.3 .Aceumulated Utilizes and Power Expenses-—--—--—--—
9.2.7.4.Aceounts Payable-----„--—
2 P rajeet Owner The proposed legal structure of the business entity is registered as Mohamed Linet
IJSi'flûti,
This profile the estitihlishrnetit Of Station LPG fillit•e eenlers iòr all type of car in the
city. Gasoiine /E%cnpene) LPG (Liquelied petroie-um Gas). Gas Oil (Naphtha)
kerosene. fuel (Avgas and lei IVI l. 111 addition Ihe provision oi Fuels. Lubricanls and
"ther speeiuli7..•d providing area Iil.. Modern car wash and Lublicant change. AISO
Motel. & lub sbœp. supenmrket.
& eaifel•erja building Will added by Otit Our 10 the offer services ,
iiiilLiOfi. CCSI
(Hitti 29.44
capital Wlâieli is
9 E mplaym enl The total man tequired for the envisioned proJeet will he employees at
c»rluni
Technology machinery equipment and techno Ogy of establishment of the Fuel Station and
Motel i Idi can securçd frum local fo•rc count:rie••
M arkci Sharg on the cash How At2tcmçnt, I % and thÇ calculatcd net
revent w aluc at discount rate Elirré 399
I
Project Provide service and sou'" of revenue, employment opportunity, savygenera:e the country
beneiit. for the foreign exchang.e. for local communaty stimulate local econ•omyr and Technology tt
ei'y country %iitsfer.
l
Table I Cjfûi"d oflT.e project
Introduction
bOth
economically and in detnography. This pushes for more petrol staticns around the
country; especially around capital City Addis Abaha demand supply gup is
And (hc pcoplc of (hc capital City around sub•city Bok Bulbula ccnter nccd a tbŕțț•
ăiȚns market requisite petrol with full facilities und Motel building service for
the arca. Our mission [s to suecessfully build, pronunc and provid•e quality pelro
stalion and Motel. We plan ic create an envircnłnent surpasses
111'
standard Icv•cl for Other petrol station in arva. The client of this petrol station
developmenl will have every need met to ensure a total and comprehensive comfon.
Petrăleum pmduets among the most natural resourees abundantly
available in out country while the country is making il timctianal Still- Elhiopia and
people evgrywhere use produ.cts a fucl in their automobiles%
country, thus making petroleum producls essenlial commodity thal is needed for the
daily operations Of individual, industrial netivities, Ethiopia hełng nan-oil producing
nation, hawever slill relies on impcrled petroleum praduets for Ihe servicing of the
econotny. Such pctrolcułn utilized by alnłost wcrylxŔly on daily basis
Due to increasing level of standard of living more iËtWopian are inereasing the
number of cars on the rond, the need for constant power supply aid un interrupted
production Of goocls and services and als0 more Ethiopłuns are
increasing
dctnand for fucl in order to enjoy the usage of thcir generating sets and industrial
The Iola] pt•ojecled cost for setting up a standard motor. filei tilling statiotl in the eity
stale has heen estimaled at Birr millian it ineludes land, building mel
dispensers and equipmeni's. spares along with Îhc plț.•liminary and working capital.
entrepreneurs to facilitate investment and provide an overview about petrol filling
investment decision and in order to sene this objective The document covers •various
aspects of the business concepl development start up, The documenl also provides
sectorial information brief on government and international scenario. Which
This is
"fuel filling station which comes under "petroleum sector"
Crucial Factors & Steps in Decision Making for Investment
Key sue,eess firiors
Following factors arc the key in making this project profitablc:•
Will a
station. The daily turnover ofthe ears largely depends on this important factor.
Selection Of proper equipment is another key for carrying out Of operations
Of proposed project.
A. Opportunities
The
The project increase the number of fuel station and provide fuel to more customers
reducing The problem offuel scarcity in the area and reducing the Addis Ababa
beulg a state capi%ll and to hub Of central
part of the country, City is a good location because of the high rate of
in Out
Threats
The proposed project will be following threat:-
The processing Of license may take time because Of in country,
Threat of likely increase in the prices of the petroleum facilitated by the government as
a result ofthe planned deregulation and removal of fuel subsidy,
2. Objectives of the project
2 General Objectives
The general objective of the project is to establish the file' station with full facility
packages (ltuulertt car wash, luh_ & grewse change, shop, supermarket, cafeteria and
restaurant) and Moiel center With a capacity of serving 302 cars per day.
2.2. specillc Objective
The tnat'ket deiiiatid Station Center is to
Currently, the expeclcd demand of this service is assumed to increase at high average
growth pale. Like any business enterprise and establishments of its kind. The project
is basically planned with an Objective or generating profit for the promoter. Beyond
that, it is also aimcd to promotc thc following objectives.
TO fuel StatiOii tii'i•d Motel 02 titer,
Implementing a cos1-efTec1ive promotional strategy that will
maximize awareness for 11K' quality petrol station and other facilities,
Aiming ai exceeding the customer's expectations,
Providing high quality pctrol station at minimized costv
Provide direct and indirect employment to a large segment ofthe population and
reduce unemployment,
Increase Government revenue Through different forms of taxes which in (urn
uscd facilitate social and economic development.
3. Project Implementation Schedule
The project's implementation is expected io take 24 months. The major actlvities
includc Bank loan proccssing construction of the building; cleaning thc arca around
the building, Of e-AUiPi'i'i•eitt'S and Start rendering The time schedule
for the above nwtured major activities is presented below.
Table 2: General Project ImplementatGon schedule
Total investment
The pn:tposed pre-feasihi lity is based on the assumption dehl and 300/0 equity_
The project seems to be viable with the following returns on investment.
Returns
Internal rate of retun (Project)
Internal rate of' return (equity) 45.1%
Net Present Value
Payback period — based on cash 7 years
inflows
4. I. Viable Economie Size
A minimum of 302 cars is requircd to bc filled daily in order to opcratc at brcakevcn
points. Considering the market trends and number of vehicles in use in the city this
ranges of feet of govemment vehicles fleet of transporters playing within the city,
Addis and other neighboring towns and villages, Also the heavy vehicular traffic af
traveleB from other parts ofthe country io the City is estimated that the project would
bc able to attract and scrvc at 'cast 302 vchiclcs per day. This docs not includc thc
increasing number of motor cycles, three wheeler motor and those who purchase
for their generating sets.
4.2. Proposed Capacity
The equipment for dispensing petroleum products that has been considered for
preparing this prefeasibility study is of German Origin. This equipment relatively
more efficient and effective of the all types of equipment available in the market.
Various other types of equipment are also available al lower prices. The chosen
equipment is capable Iviueling vehicles per hour. Twin hose dispenser
and at
5; Proposed Location
The proposed location for the motor. fuel filling station in Addis Ababa is as follows:
Ille Project may also Be established in commercially viable area of the eity_
Bole Bulbul", because of its preferable residential area a number af individuals
whose havc middle inco•mc in thc city. near to bole international airport, and
oornmereiai area. Therefore the sum of this makes the area with high traffic
flow.
Also the area is on the root from Addis to Adama. no question. sinee the main
root to Pjibouti.
6. Market Analyses
The efficient distribution of petroleum products has always been part of the government
petroleum policy
6.1. Turgel customers
The target customs for the proposed project would be: - ,
Owners of generating set for private and commercial usage _
Private and commercial motor cycles and three wheel Bajajs taxy The
private and commercial vehicles running petrol fuel,
Com mereial and private Transport,
Construc on cornpufii ex,
Power Generalionv
Petroleum is one of the most items in world. Petroleum is a necessity product and the nature of
its demand is Unlike other businesses whose demand is impacted by price and other economic
variables, the consumption of petroleum products Ethiopia continues io increase even in ihe
face of any economic slowdowns.
Demand for petroleum such as filels Lu8ricunts in Ethiopia are massively growing at an
average tute of 10!•'. over the five years 2004). of 2009, the overall Of demand
for & and respectively. In Ethiopia more Chan half of among overall size of
demand for
Ilihricants amounts billion liters and 28 million liters respeetively are eonsumed in Addis
Ahuha arpd its neighbor
Ai present there 110,000 vehicles ill Ethiopia with than 70 Of
(410,000/ registered in Addis Ababa? However, the number of fuel stations in the
1
Sii
4.
811 7
2 SUO" i
Market Supply
Tolal number of petrol stations Ihal are fully operalional in the city is quite low far
meeting glowing demand for petroleum ploducis Apart from these, stations are
iiiåtiY Stations that i'iOI liiiiCtiOiiiiig While few Others spring up_ There has been a
tremendous growth in the downstream petroleum sector over the years. There are
710.000 vehicles in Ethiopia with more than 70 pereertl of lhetn registered in Addis
Abåba. However, the number of fuel stations in the cgpital stood of thc fuel stations
arc very old and havc small sloragc capacity." Of 10 Construct
Jiti'@le," they said. The above growth rates present an opportunity for the new entrants
to cam profits hy setting up petrol filling 10 meet the growing demand,
Obtaining a license from Ministry of Petroleum und Natural Resources and Department
of Petroleum Resources (DPR) are pre-requisites for setting —up the
1110ior Fuel lilling station?
Licensing
Bid i.k•cunents will be prepared and can tw collected; from the Ministry
(MOMPNG).
The notice will stay at least for days
The eeginning and ending dates Will speeutied.
Evaluation will based on the scoot caldsset at beginning, The winner will be
notified oiliciallyio bidders,
Signing date w i" he fixed with the winner.
Signing with ihe Minister and authorin•d company representative will be
folloued.
If there is only one interest
Negotiation will be carried between the eomcxatty team and Ministry of Mines
team,
When IS reached and arljeles Of the PPSA, rcport will thc M inistcrx (MOM
Futiiitiiite
Lice nses'permits
Preliminary
Worklng Capltal 00
Total
8,1, Project Financing
The total cost of the project is Birr 32_00 million the working capital of Birr 7S4,380_ The
Of project will eon tribute Ot 9,600 ,OOIJ ETH ind the bunk finance the
remaimng amount ofBirr@/o will 22.400.000.
8.2. Location
government. the Edling station must be situated in a wtnmetvial area. Fuel filling station is rot
allowed 10 be installed in the residential areas. SOCK) tn2 of lurid with at least feel front
requited for it'ßtiilliitg fuel Station. The for [and leas hiiS
8.3, Building
'livere are certain civil wolks required to be carried out ai the pn»posed location. The civil
works will be etrried out on an area of ASOCI rnX The resq or the area will he floored With
The total cost oreonstruetion is estimated al Birr details ror the said cost is as
SX OffieeEquipment
Some equipment required for the proposed project. A provision of Birr 200, 000 h as. mad c i
red •Office equipment,
Manpower Requi
Manpower requirement for the fuel filling sqation irxludes manager, eashier_ disTer1ser_
operators, accountant. wulch'iiari and _The Iotal staff strength would 28 for two
shifts,
Table I I human resource requiremenl
Des ignation NO ofemployees For shift Salary per month
Manager
Liepuiy Manager 10.000 1200000.00
Acco t 6,0110
Cashier 2 ,sno
ispenser 800.000
Operuto r 2 5 .soo 132.000
2
2,suo
Motel Cleaner
Total
19
9. Basis Financial projections
inflation rate has been consideæd while making the projections [Or cost of sales,
operational expense and salaries the prices for electricity, operational expenses and starf
salaries are increased by year a result of inflation.
463
4
The average number of ears in first yeals is estimated al 302 day starling from 220
cars per day in the first month and going up 10 cats per day in the month in the
day ycav,
Ababa is increasing at a rate of till year because the ptoject would be in its growth stage. An
increase has been considered from sixth yeare Because al that time the project would be at
its maturity stage.
9.22. Accounting Profit the assets has charged at the following rates
arc for calculation of accounting profit_
Table • IS Depteciäilioti
Description O eweciatiogn Rates
Building
Fuel plant equipment
Molel & Offiee equipment
Furniture fixture
9.23.
Vor the purpose of calculating taxahle profit depreciation is calculated on the rates as per the
inoome tax law which is us follow s, Table • [4 Tax adjustments
Land
B wilding
plant & equipment
Motel Office equiptnent
Furnitu1V iislute
21
9v Basis for Financial projections
inflation rate has been considered while making the pryjec'ions cost of sales
ehpense and salaries prices for electricity, expenses and salaries are by
every yearas a result of
Revenue Assumption
9.2,L Number ofCat•s
AddiS Ababa,
for
for 5 years financial period
Number or curs
Accounting Profit
B u i lililtg
Fuel Planr & equipment
Motel Oilice equipment
Fumitorc & fixture
92.4.
Other than the normal depreciation allowance year is also provided on the newly installed
plant an-d equipmen for lhe purpose ofproviding benefit (he enlrepæneur. The first yetir
allowance is cticulated as of written down value of tuel plant and
payable ,
With 30 days. The same has beetl taken as the basis for calculating the amouni of sales iam
pa yahle.
9.2.7.6. VAT
23
required to make the proeess of the project from beginning to end deliver required
cornrnetciål service efficiently and effectively
11.2. Evaluation
The project promoter evaluates on-going prcwess of the at each phase of implementation.
Even ifjoinl evaluation conducted at the end of the projeet_ the engineering estimation Of
bill Of quantity is the basic tool Of project sUCC&s evaluation. This evaliLtatiOii witl be
based the agnxd project