BALE MOUNTAIN FINAL CHECK UP

PROJECT PROPOSAL TO BUILD MIXED USE APARTMENT IN 70/30 PARTNERSHIP MODALITY (FOR COMMERCIAL & RESIDENTIAL) PROPOSED TECHNOLOGY; PREFABRICATED METHOD OF CONSTRUCTION (PMC) The project to be implemented in Addis Ababa city Administration PROMOTER: - BALE MOUNTAIN REAL STATE PLC (EFREM BEKELE AND MUKTAR MOHAMMED) ADDIS ABABA, ETHIOPIA, JULY, 2022 4

TABLE OF CONTENTS 2. NTRODUCTION....................................................................................................................................6 3. THE PROJECT AREA....................................................................................................................9 3.1. Premises Required and Land Use Plan.......................................................................................10 4. THE MARKET STUDY..........................................................................................................................11 5. TECHNICAL STUDY.............................................................................................................................15 A. Vehicles Parking................................................................................................................16 B. Children’s Playing Center............................................................................................16 6. THE CONSTRUCTION TECHNOLOGIES ARE;....................................................................................17 1. Improve Energy efficiency............................................................................................................17 2. Offsite Construction.......................................................................................................................17 3. Smart Technology..........................................................................................................................18 6.1. Utilities.......................................................................................................................................20 6.2. Project implementation.............................................................................................................20 Procedural Steps........................................................................................................................................20 4. ORGANIZATIONAL STRUCTURE..........................................................................................................21 4.1. Organization and management.................................................................................................21 4.2. Man Power................................................................................................................................22 4.3. Organizational Structure............................................................................................................23 5. FINANCIAL REQUIREMENT AND ANALYSIS........................................................................................25 5.1. Fixed Investment............................................................................................................................25 5.2. Operating Expenses at Full Capacity...............................................................................................29 5.3. Underlying Assumption..................................................................................................................29 5.4. Source of Income............................................................................................................................30 5.6. Projected Revenue..........................................................................................................................30 A. Financial Analysis and Statements................................................................................................31 1) Underlying Assumption.............................................................................................................31 2) Projected Income Statements.....................................................................................................32 3) Balance sheet (Beginning of operation).....................................................................................33 5.2. Cost Benefit Analysis............................................................................................................33 6. ENVIRONMENTAL IMPACT ASSESSMENT...............................................................................34 4

1. EXECUTIVE SUMMARY 1 Project Residential apartment building Construction Name BALE MOUNTAIN REAL STATE PLC 2 Project (EFREM BEKELE AND MUKTAR MOHAMMED) Promoter Ethiopian, Diaspora living in US of America 3 Nationality The envisioned Residential apartment building will Project implement at Addis Ababa City, In any sub city 4 location/ Administration, with suitable site available. selection The envisioned Residential apartment building will area provide different rental services to the different 1. Project customer groups for different purpose. The building will have basement of -1 to -2, ground and + 20 floors. Compo The purpose of the building the will be implemented sition under the scheme of Housing Projects through Public-Private Partnership. The project description is summarized as follows; 5  multipurpose Building (2B+G+20) used for diverse business centers like፡-from above G is planned for residents housing ,from below G for banking & insurance, super market, shops, restaurant, café, beauty salon, Pharmacy and offices  Besides, the Business Building will have enough parking facility under its two floor basement with a capacity of more than 200 cars parking at a time for its customers and green area, and VIP open space parking in its compound. The promised land plot of 3,000 M2.  From 3,000 M2 land 40% build up area, 60% for setback, Parking and 6 Premises Green Area. Required  200 different type of bedrooms unit (Stadium, One bedroom, Two bedroom and Three bedroom Apartment)  20 rooms for various uses such as shops, boutique, M Pharmacy, bank and others. 7 Technology to The proposed building technology is prefabricated method of be used construction (PMC), because it has a great role on reduction of 4

constriction schedule, wastes and site disturbance, conflicts and improve quality, safety, productivity, environmental friendly, resource efficient, creating permanent job opportunity, make clean construction sites, reduce formwork & scaffolding, protect deforestation and encourage green economy. Planned The proposed total project capital requirement is estimated to be Br. Initial 660,000,000.00, out of which 30% equivalent to Br. 7 198,000,000.00 financed by the owner equity and the rest 70% Investment equivalent to Br. 462,000,000.00 expected to financed through bank Capital loan proposed Summary of assumed building service mix Building height -1 to -2, ground and + 20 floors Total Floor area proposed for building 415 M2 of each Apartment flour and Building area for 2 unit will cover 830 M Total area for Basement (-1 to -2)of 2 unit 2*415 = 830 Total area for commercial purpose (m2) 2B+G 2*415= 830 square meter Total area for residential purpose (m2) 1st floor 2*20*415: 16,600 square meter to 20 th 18,260 square meter Total square meters Floor area build up Number of building assumed to be constructed 2 unit to house the existing households/residents Number of households per floor 5 Number of households per building 5* 20 = 100 Total beneficiary households of project 5*20*2 = 100 Toof 1a0f8fohrodustehheolcdus r(r3e6n*3t =in1f0la8ted building cost, the company estimated for floor area of luxury or high quality finished apartment is assumed to 36,144.58 birr per meter square. Therefore, the cumulative constriction covering flour area 18,260 m2 x 36,144.58 birr= 660,000,000.00 8 Employment The total work force requirement of the project will Opportunity be estimated at about 1 0 9 4 employees. 4

Contribute to solving the housing problem in the city. • Providing 30% of the project for government • Providing better building service for the trade and office purpose • Generating income and benefit for the local people and Economic • Creating job opportunity for the community benefits Becoming source of tax income for the government. Based on the market price of existing building in the Addis, the envisioned Residential apartment building set the following fair price (Before VAT) for its service, hence when the building construction fully get operational it is assumed to generate a yearly income of ETB during project life period 4

1. NTRODUCTION Ethiopia is the second most populous and the fifth least urbanized country in Africa. At present, 21 percent of Ethiopia’s of 112million residents live in urban areas (23.5 million people), according to the national definition, its significantly below the Sub Saharan average of 40.4 percent. There are over 950 towns and cities in the country. The number of residential houses in Ethiopia will be doubled in the coming 10 years. Ministry of Urban Development and Construction (MoUDC) has revised the 16 years old housing policy and strategy to give more options for private sector involvement on the housing scheme. It is almost a decade later that the Ethiopian government formulated its policy toward Public Private Partnerships in August 2017 and further enacted Public Private Partnership Proclamation No. 1076/2018 in February 2018. Ethiopia is now well-known as among the five fastest growing economies of the world. According to IMF, the average growth of the economy is about 10.7% for the last 11 consecutive years, up to 2013/14. The development is broad-based and in paradigm transformation. This fruits of success is attributed to the contributions of the Ethiopians, both residing inside the country and the Diasporas’, within the development policy and strategy environment of the Government. Besides the country is determined to sustain the on-going growth and transformation of the economy as explained by the Growth and Transformation Five Year Plan II i.e. for 2015/16 – 2019/20. Ethiopia’s economic growth brought a wide range of social and economic developments, which includes, among others, the increased expansion of business and investment. In such development environment Addis Ababa, the capital city of the fast growing nation, Ethiopia, has its own very favorable specific features related to business and investment in Business Building development. In addition to the presence of many embassies, Addis Ababa is the seat of African Union (AU), UN-Economic Commission for Africa (ECA), many UN and multilateral organizations, international NGOs and different national aid agencies that have thousands of expatriates and foreigners which makes Addis Ababa the resident of many diplomatic missions next to New York and Brussels. These developments therefore, among many other investment opportunities, demand inclusive Housing’s of best goods and services (e.g. restaurants, cinemas, garden) within a short time in a specific suitable 4

area and Addis Ababa lacks such modern Residential apartment building that fits to its current development needs and beyond. Housing Residential apartment buildings have multifaceted contributions for the socio- economic development of a nation. It is also expressed, in addition to the inclusive provision of best goods and quality services, in terms of job creation, revenue generation for the government, expansion and facilitation of business and investment, tourist attraction, etc. Moreover, Housing centers have become an integral part of the economic and social fabric of their communities. The amended strategy for affordable housing schemes that has been sent to the Council of Minister for ratification has expanded the alternatives to the housing new strategy that revises the public with the private sector will be involved on housing scheme to expand for affordable housing. The government share on providing housing under the existing experience will be shrank and transfer for the direct involvement of the public and the private sector with different new technologies will embark. This proposed construction Apartment Complex of 2 Apartment housing units is to be implemented on 3,000 square meter of land, designed to benefit nearly 200 high class, middle and low- income families in the capital. 1.1. DESCRIPTION OF THE PROJECT According to the proposal, the construction implementation period expected houses is will take 2 year and a half delivery time, while the total houses expected to build up to 200 housing unit. Out of it after the project's completion we promised to transfer or the government will fully take over 30% shares of the project or 60 houses in number to provide for government after construction completion. The project owner will be planned to sell about 140 houses unit to selling for individual dwellers. The basic parameters of the building are as follows: The object of analysis is an existing building that belongs to housing cooperative’s estate in Addis Ababa in Any suitable area. The building is a typical 2 B + 20- story structure of a large block system (hollow core slabs and load bearing walls of the superstructure, non-bearing external walls of integrated aerated concrete elements, in-situ reinforced concrete foundations and Proposed building is -1 to -2, ground and + 20 floors. To afford the current inflated 4

building cost, the company estimated for floor area of luxury or high quality finished apartment is assumed to 36,144.58birr per meter square. Therefore, the cumulative constriction covering flour area 18,260 m2 x 36,144.58 birr= 660,000,000.00 1.1.1. Housing units The housing units assumed to be constructed in the study area are 40 three bed room, 110 two bed room, 30 one bed room and 20 studios. Based on 20% in advance payment by higher class income family to buy luxury homes (Type ‘A’ ) and 10% in advance payment for middle income dwellers to buy Type ‘B’ housing scheme, the area of each housing types is 120, 90, 70, and 35 meter square respectively.. See table below. Table S.2: Summary of Housing type by Number of Housing units and area Housing type and planed ratio Area (m2) for each Three bed room 120 Two bed room 90 One bed room 70 Studio 35 Total Area (m2) 315 The project Affordability and payment Issue This project is planned to provide residential apartments in a fair price to the domestic market and the building provided should be clearly defined in quality, variety, and size. It would provide 2 types of apartment residential houses for different classes of living standards and demand i.e: The buyers paying mechanisms are; will be Based on 20% in advance payment by higher class income family to buy luxury homes (Type ‘A’ ) and 10% in advance payment for middle income dwellers to buy Type ‘B’ housing scheme, the area of each housing types is 120, 100, 70, and 35 meter square respectively. • It is one of the housing schemes identified by the government as low cost or affordable by low and middle income people. I. • This housing scheme has unit mixes from studio to three bed room typologies. 4

II. • Recommended by Norms and Standards of the Addis Ababa Structural Plan Components to accommodate all income groups. The payment issue Based on housing type chooses , the buyers will be expected to pay 20% in advance payment for higher class income family to buy luxury homes (Type ‘A’ ) and 10% in advance payment for middle income dwellers to buy Type ‘B’ housing scheme 1.2. Hou s in g De liver y/ Service Programme: At the initial stage of the service provision period, the hotel would require some years to penetrate into the market and capture a significant market share. Therefore, in the first and s e c o n d y e a r of service the capacity utilization rate will be 75% and 90%, respectively. Full service provision shall be attained in the third year and then after. The proposed service provision program is shown in Table 4.5 service provision programe Sr. Service Service Year 1 2 3- 10 1 Service provision rate (%) 75 90 100 2. THE PROJECT AREA This envisioned Residential apartment building will implement in Addis Ababa City, at any sub city Administration. Addis Ababa lies at an elevation of 2,200 meters (7,200 ft) and is a grassland biome, located at 9°1′48″N 38°44′24″E Coordinates: 9°1′48″N 38°44′24″E. The city lies at the foot of Mount Entoto and forms part of the watershed for the Awash. From its lowest point, at 2,326 metres (7,631 ft) above sea level in the southern periphery, Addis Ababa rises to over 3,000 metres (9,800 ft) in the Entoto Mountains to the north. The city is divided into 10 boroughs, called sub cities, (kifle ketema), and 99 wards The 10 sub cities are: Nr Subcity Area (km²) Population Map Density 1 Addis Ketema 7.41 271,644 36,659.1 2 Akaky Kaliti 118.08 195,273 1,653.7 3 Arada 9.91 225,999 23,000 4 Bole 122.08 328,900 2,694.1 5 Gullele 30.18 284,865 9,438.9 4

6 Kirkos 14.62 235,441 16,104 7 Kolfe Keranio 61.25 546,219 7,448.5 8 Lideta 9.18 214,769 23,000 9 Nifas Silk-Lafto 68.30 335,740 4,915.7 10 Yeka 85.46 337,575 3950.1 Map of Addis Ababa town with its 11 sub-cities 2.1. Premises Required and Land Use Plan The envisioned Residential apartment building will implement at Addis Ababa City, in any sub city Administration, with suitable site available, in suitable/available area. For the development of the envisioned Residential apartment building, 3,000 square meters is required. This land' is expected to get through allotment mechanism taking in to consideration the projects welfare implications and national significance. 4

The project Facilities and Services plan Sr Building Description Total Floor area (Sqm) for total unit(2) Building 1 Basement of 2 unit Parking, guard house & Gymnasium 830 buildings 830 Ground of 2 unit Shops, Boutique, M pharmacy, Banking and Other buildings 1st and above (up to Different type of Bed room (Studio, One bed, two bed and G+20) of 2 unit three bedrooms) 12,600 3 4,000 buildings 300 For all floors 2 unit Circulation area of 24% of Floor Plate area - buildings circulation area Lift area, stair cases, Open Down, 4 5 Car Parking Circulation and Garbage Shutter. One parking area for one Unit (10% of the total Area) 6 Green areas One Tree (2m X 2m) every 100m2 (30% of the total 900 600 7 Other facilities RAoraeda,)Health, social, entertainment, Center (20% of the 3,000 total Area) TOTAL FOR 2 BUILDING 3. THE MARKET STUDY 3.1. The Commercial Real Estate Market Real estate activity in the commercial sector has been as dynamic as that observed in the residential sector over the past decade. The growth in the commercial market is being driven by many of the same factors propelling residential sector growth, including rapid economic growth and supporting public infrastructural development. Other factors relevant in the specific case of commercial buildings are the large increases in national and international businesses, particularly firms in the services sector. At the same time, government offices which used to operate in limited spaces all over the city are also concentrating on new and modern buildings, including renting properties from private landlords. Increasing numbers of embassies, international organizations, and NGOs which in the past had typically converted residences into office space are now moving towards renting whole floors or even multiple floors in modern city-center commercial buildings. 4

Our survey revealed that monthly rental rates for third-floor office space in commercial buildings vary from a low Birr 75 per m2 in Arada Sub-City to a high of Birr 120 per m2 in Yeka Sub-City. Looking at the highest rental rates within a building (typically the ground floor), prices range from a low of Birr 125 per m2 (in Arada Sub-City) to Birr 212 per m2 (in Yeka Sub-City). City-wide, the average rental rate of modern commercial building space was found to be Birr 98 per m2. With this average rental rate, the typical one-room shop or office in a modern commercial building (roughly 50 m2) Table 1: Rental Rates for Commercial Buildings in Different Sub-Cities Highest Lowest 3rd Floor One Rent Rent Price Room Half Full (Birr/Ml) (Birr/Ml) (Birr/Ml) Office Floor Floor 158 19,414 38,828 Bole 167 75 97 4,853 20,240 40,480 Kirkos 125 15,000 30,000 Arada 212 69 101 5,060 23,900 47,800 Yeka 167 19,667 39,333 Lideta 50 75 3,750 70 120 5,975 82 98 4,917 Source: Access Capital Survey Source: Access Capital Survey 4

Outlook Future Challenges The real estate sector faces a range of challenges in the coming years if the policy and regulatory environment remains broadly unchanged from its present form. Supply and Price of Land: Land in Ethiopia is under current laws the property of the state and can generally be acquired only on the basis of lease. In many residential neighborhoods, there are 'free-hold' plots owned by private individuals outside of the lease system, but even for these plots of land the owners technically only own the buildings on the land and not the land itself (which remains state property). The prevailing land lease system practiced now for over a decade has allowed for many new real estate developments but has also been associated with various problems including: a high land lease price that is often beyond the reach of many potential buyers; the provision of large plots to developers who fail to commence or deliver promised projects on time; the allocation of the same plots of land repeatedly to different persons; the provision of land in remote areas where there is inadequate infrastructure development, and; administrative and bureaucratic delays in the actual release of already assigned land. Though there is a promising prospect of soon-to-be coming changes in the system of assigning and allocating leased land (see below), this remains to be tested and seen in practice in the coming years. In particular, prices at the high end of the Addis Ababa real estate market are almost comparable to those seen in countries such as Nigeria, Botswana, and South Africa, where average sale prices are $ 1,000,000 in the main cities as compared to about $800,000 in Addis Ababa. At the middle-range of the market, where prices in Addis Ababa average $250,000, we observe that local prices are comparable to those found in Nairobi, but far lower than those of homes in Accra, Dares Salaam, and Kampala. In comparing rental prices, we find that in the middle and lower-end of the market, rents in Addis Ababa are lower than nearly all of the above-mentioned cities. Interestingly, however, we find that Addis Ababa's rental prices for large homes actually match or exceed similar rental properties in other African cities such as Johannesburg, Abuja, Dares Salaam and Kampala. We believe this reflects the unusually high 4

concentration of international organizations, foreign embassies, agencies, and NGOs that provides a high level of demand for higher-end properties. SALE PRICES 3.2. Marketing promotion and strategy 4

In order to penetrate and gain considerable market share, one of the major marketing strategies for the project is consistently rendering quality service to its tenants. Due emphasis must be placed on improving quality of service and facilities. The major marketing strategies to promote the project and gain considerable market share include:  Advertising through different means focusing on the existing service and facilities  Promote in association to the key location and nearby business  Working on sustained promotional work.  Working on public relations to reach and influence key personas and organization with a capacity of making decision.  Keeping the quality of its service/ facilities and consistently improving with changing situations.  Seasonal discount pricing different others customer centric marketing strategies The project facilities and Services plan In order to provide Residential apartment building services of a high standard, it has been planned to construct and develop the infrastructure and facilities that would viable to meet the requirements of an international standard business center. Accordingly, various buildings and facilities will be constructed phase by phase starting with the most needed ones that are essential to commence the operation of its business activities. With the completion of construction, the building will provide a combined service such as shops, super markets, Hotel, restaurant and café service as well as modern business center that primarily serve its guests and major clients. 4. TECHNICAL STUDY The project Affordability for different classes of living standards and demand This project is planned to build 1 0 8 ( w h i c h i s 3 0 / 7 0 % s h a r e o f p u b l i c p r i v a t e p a r t n e r s h i p s h a r i n g ) houses unit and to provide residential apartments in a fair price to the domestic market and the building provided should be clearly defined in quality, variety, and size. It would provide 2 types of apartment residential houses for different classes of living standards 4

and demand i.e: III. Type ‘A’: it is the luxuries house that would build 1 BLOCKS for high income dweller on 415 m2. Under this project dimension houses will be provided for the market is 97 ( 5 2 % ) . IV. Type ‘B’: it is also opportunities for middle income dwellers that would build TWO BLOCKS on 415 m2 each. (830m2) totally, under this project dimension houses will be provided for the market i s 8 8 ( 4 8 % ) . A. Vehicles Parking This pr ogr ams ensure e that resident shave primary access to parking. Par king is service where some operator s in the system and provide parking service f or the customer s such as mot or vehicles, passenger cars and truck vehicles. Currently in Addis Ababa there are so many problems which are mainly concerned with shortage of parking space such as; o Congest ion of roads due to imbalance between on- street parking capacity and number of vehicle; o Emission of the environment due to searching of parking space and o Idle (wastage of time) by the drivers by waiting parking spot ; o Travelling long distance to search parking spot Currently, any new plant has to recognize proper parking services so that to minimize the above mentioned problems. Thus, the envisioned project aimed to have Private off - street parking type within the basement of the building. It constitutes about total plot size which can ser ve about 500 automobile cars at once. B. Children’s Playing Center The facilities included in the children’s play ground are swings, sliding stands, tunnels, merry goround, sand filled pit s, and coin operated toy vehicles and different kinds of arcade video games. The whole area of the playground shall be free from any obstruction that could result in accident and the recreational tools are installed in such a way that they will not cause any accident. The arcade coin operated video game room having an area of about 100m2 will be constructed from prefabricated material wit h ventilation and lighting, and it will be carpeted. It should also be free from any visible electrical connect ions and free from an accident or hazard. The provision of such service doesn't have any adverse impact on environment .This project will provide playing center f or children’s that can serve 100- 200 children’s per day and youth, child care center. c. Swimming Pool The swimming pool service will be provided to customer from guest room or from 4

outside. Locker s are provided for customer s f or clothing and other belongings. The locker s require a coin to be inserted as deposit or payment. Shower s are also ready for customers (male and female), be or e and after swimming. Other service requirement s (desert s, hot and cold drinks) are also provided to customers. A swimming pool of having bigger size (50 m long x 25 m width x 1 m to 4 m slopping depth) f or male and female and small size (20mlong x 10 m width x 30 cm to 80 cm slopping depth) f or children shall be constructed. 5. THE CONSTRUCTION TECHNOLOGIES ARE; PROPOSED TECHNOLOGY; PREFABRICATED METHOD OF CONSTRUCTION (PMC) The proposed building technology is prefabricated method of construction(PMC), because it has a great role on reduction of constriction schedule, wastes and site disturbance, conflicts and improve quality, safety, productivity, environmental friendly, resource efficient, creating permanent job opportunity, make clean construction sites, reduce formwork & scaffolding, protect deforestation and encourage green economy. This process utilizes a factory-fabricated steel structure system. And during on-site installation, high-strength bolts and flanges are used to help construction members. It also incorporates installable and integrated floor slabs, wallboards, and other prefabricated materials. Such a process can give enormous advantages to buildings. Our building contractor will do following activities to make high-rise buildings more sustainable. 1. Improve Energy efficiency Improving energy efficiency is one way to make high-rise buildings more sustainable throughout their entire lifecycle. An energy-efficient tall building is simply achieved by reducing the energy demand requirements using some solutions such as double skin facades. These facades can improve insulation and reduce solar gain whilst still maximizing natural light. Energy efficiency isn’t only limited to reducing demand but also exploring solutions that integrate on-site energy generation into building designs. 2. Offsite Construction  Using prefabricated components manufactured in a controlled, monitored offsite environment is considered one of the most efficient methods. This particular solution is, in fact, cheaper 4

compare to other solutions since it can significantly reduce construction times through any enabling construction challenges to be addressed even before the construction starts. As fewer activities are being carried out on-site, it decreases the number of workers, causing less noise and reducing the impact of construction activities on local areas, including CO2 emissions and air pollution. 3. Smart Technology  Today, tall buildings can be designed as platforms to make the most of the latest and emerging SMART technology. Today, there are thousands of SMART sensors that feed data toward the integrated BMS (Building Management Systems), allowing buildings to adapt quickly and optimized for improved safety, security, and, of course, energy efficiency. Moreover, SMART techs integrated with both architecture and construction can efficiently provide improved productivity and comfort for the building users, creating new experiences as well as opportunities for collaboration. Real-time sustainability is more than just the deployment of renewable and energy-efficient innovations further to enhance the “GREEN” credentials of the building. It’s also about delivering a livable environment to maximize further the well-being, health, and comfort of occupants. A PMC has a great role on reduction of constriction schedule, wastes and site disturbance, conflicts and improve quality, safety, productivity, environmental friendly, resource efficient, creating permanent job opportunity, make clean construction sites, reduce formwork & scaffolding, protect deforestation and encourage green economy. 4

Prefabricated Construction Technology and Work THE DESIGN ISSUES ASSOCIATED WITH MIXED-USE BUILDINGS ARE;  A structural grid that is compatible with the uses on the different floor levels, particularly due to the car park levels, or  A transfer structure that allows the columns or walls on the upper levels to be different from those below  Access to the upper levels that is independent to the lower public levels  Effective fire resistance and compartmentation given the different fire safety measures at the various levels  High level of acoustic insulation between the various occupancies  Different but visually compatible architectural treatment of the public spaces and the residential space. PROPOSE SITE PLAN 4

2B+G+20-storey design concept for mixed use urban residential building based on use of steel frames A design study of a B+G+15-storey residential building constructed over a ground floor retail or commercial space and with below ground car parking is illustrated. The primary structure is steel frame using a shallow floor system with columns arranged on a 7.5m spacing on the facades and at a spacing internally to suit the use of the car parking level. All infill walls and separating used light steel C sections so that the space could be configured so suit the apartment layouts 5.1. Utilities A number of utilities world be put in place in order to ensure smooth functioning of the project. These utilities include:  Water Supply,  Supplementary Electricity supply. 4

 Telephone line Internet Broadband  Fuel, Oil and lubricant  Drainage Facility 5.2. Project implementation The project’s implementation is expected to take 24 months. The major activities include Bank loan processing construction of the building, cleaning the area around the building, Procurement of equipment’s and start rendering services. The time schedule for the above matured major activities is presented below: Procedural Steps The following steps should be undertaken in the process of establishing the housing project for the member of credit and saving association. The steps are broadly in sequence however, some may overlap and others are dependent upon the indicators mentioned. 1) Acquisition of land a) Identification of potential sites b) Environmental and socio-economic assessments c) Legal acquisition of the land following negotiations (land lease or other mechanism) d) Survey and demarcation of the land 2) Consultation with the shareholders a) Establishment of development committees, development plans and relevant focus groups b) Study the building design c) Standardization of the designs 3) Consultation with selected Bank regarding the construction of the houses 4) Start of infrastructure construction 5) Start of the house construction 6) Legal rent/sell the houses to customers. S.N Activities Table: project Implementation schedule Date 1 Land request processing May to August , 2022 2 Land approval September , 2022 3 Bank loan processing October , 2022 4

4 Site Development October to December, 2022 5 Building and construction work January , 2023 – July 2025 6 Preparation for marketing products 7 Housing Service execution August , 2025 August , 2025 4. ORGANIZATIONAL STRUCTURE 4.1. Organization and management The organizational structure should be in a way that the company able to achieve its objectives as well as the satisfaction of standard requirement. In addition to this, the structure should fit the dynamics of all customers in the building ranging from small business to large tenants. A Housing property management firm that specialized neither in owning and managing Housing buildings neither are nor right in place in Ethiopia. Even though Housing center management and advisory firms are bringing about professional management practices to the largely fragmented Housing center development industry none existence of them in this country forced the promoter to establish its own organizational structure and management. 4.2. Man Power The total work force requirement of the project will be estimated at about 1 0 9 4 employees. From total workers Permanent workers are 683 (169 are Business Buildings permanent workers which are 70 of them are Skilled, & 99 are Unskilled) and 514 are permanent workers employed by rented service providers. The rest 411 Casual workers are employed from the beginning of Building construction to finishing (skilled 11 and unskilled 400) Sr.N Job Title Qualification No of Monthl Annual o Job y salary Salary titles A Permanent Employees 4

1 General Manager 1 25000 300,000 1.1 Secretary BA in secretary Since/Office 1 5000 60,000 Mgt 2 As General Manager MA. In real propperty Mgt 1 20000 240,000 3 Room division Dep’t 3.1 Front Office section BA/MA in real propperty Mgt 1 15000 180,000 3.2 House Keeping section 4 Supportive Dep’t BA/MA in real propperty Mgt 6 10000 720,000 4.1 security 4.2 Marketing &sales BA/MA in real propperty Mgt 22 10000 2,52,000 4.3 Engineering & hotel 4.3.1 Maintenance BA/MA in real propperty Mgt 1 15000 180,000 4.3.2 Sanitary technician 4.3.3 Electrician Militery science trayning 16 3000 576,000 4.3.4 carpentry construction technician BA. In Marketing &sales Mgt 12 10000 1,440,000 BSC/MSC in Civil Engineering 4 15000 720,000 level III in sanitary 2 8000 192,000 level III in electricity 3 8000 288,000 level III in carpentry 3 8000 288,000 level III in construction 3 8000 288,000 BA/MA in finance and 4.4 finance and accounts accounting 8 10000 960,000 BA/MA in Supplies Mgt 4.5 purchase and general store 6 10000 720,000 4.6 personnel sections BA/MA in HRM 6 10000 720,000 BSC in Food & Beverage 5 Food & Beverage Dep’t preparation 1 15000 180,000 level III in Food & Beverage 5.1 Food & Beverage preparation 22 10000 2,52,000 production level III in hotel service 50 10000 6,000,000 5.2 Food & Beverage service 19,332,00 Sub total 169 0 Rented services like 6 banking, insurance, ticket 514 - office and personal care 683 services Sub total B Casual Employees 7 Architect BSC/MSC in Architectural 2 20000 480,000 Engineering 2 20,000 480,000 1 20,000 240,000 8 Civil Engineer BSC/MSC in Civil Engineering 2 20,000 480,000 2 20,000 480,000 9 Construction Management BSC/MSC in Construction Management 10 Electrical Engineer BSC/MSC in Electrical Engineering 11 Sanitary Engineer BSC/MSC in Sanitary 4

12 Land Escape Engineer Engineering 2 20,000 480,000 BSC/MSC in Land Escape Engineering 13 laborers 400 3000 14,400,000 subtotal 411 17,040,00 0 Grand Total 1094 NB. The salary of casual workers can be considered in the construction costs and the salary of rented services workers will be covered by rented service deliverer. 4.3. Organizational Structure 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. Owner General Manager Building Admin Marketing Technical and maintenance HRM and finance manager IT, Electricity and plumper 4 Cashier Purchas er

Fig: organization structure of the Building 4

5. FINANCIAL REQUIREMENT AND ANALYSIS The Financial analysis include insight to the total capital outlay required for the project which would consist of total fixed investment cost, and pre- service costs; the source of finance for the total planned initial investment cost requirement and other parameter of feasibility analysis including projection of profit/loss statement and cash flow statement. Hence, the total initial investment cost for implementing this project is ETB. 660,000,000.00 The total budget of the project will be fully covered by the owner equity; and no need of Bank loan proposed. To afford the current inflated building cost, the company estimated for floor area of luxury or high quality finished apartment is assumed to 15,591.78 birr per meter square. Table Summary of Total initial Investment cost Cost in Birr SN Description 524,600,849 1 Land, Building & Construction 2 Machines & Equipments 52,549,800 3 Vehicles 18,000,000 4 Office Equipment 531,800 - Total Fixed Investment Cost 595,682,449 5 Pre service Expense 500,000 6 Raw materials 5,38,858,420 7 Salary 8 Other Operating Expense 19,332,000 5,607,131.00   Total Working capital 64,297,551 Total Initial Investment Capital 660,000,000.00 5.1. Fixed Investment The fixed investment cost of the project consists of land acquisition and development, construction costs of building and civil works, costs for purchase of plant machinery and equipment, cost of purchase of vehicles, purchase of other fixed asset and other pre service capital expenditure. Accordingly the fixed investment cost constitute the resource required for land acquisition, site preparation and development, design and engineering cost, building construction cost, civil works(service facilities), purchase of construction machinery and equipment, purchase of transportation vehicles, purchase of office furniture 4

and equipment and capital costs required for other fixed assets. A. Building & Construction SN DESCRIPTION Total Cost in Br 1 Construction of Building 515,084,849.00 5 Generator House 6 Open space VIP Parking 60,500.00 8 Green area & Open recreation area 2,220,000.00 10 Guard house 1,760,500.00 11 Fences 120,000.00 12 Site Development 1,200,000.00 13 Design and Supervision 2,675,000.00 14 Land lease Initial Fee 500,000.00 1,000,000.00 Total 524,620,849 B. Machinery equipments Measur Qty Unit Price in Total Price in SN Description ement Br Br 1 Hotel Service Machineries equipment No 5 200,000.00 1,000,000.00 1.1 Laundry Machine with all accessories No 100 5,000.00 500,000.00 1.2 Bar table No 400 2,500.00 1,000,000.00 1.3 Bar chare No 700 4,400.00 3,080,000.00 1.4 Dining Tables No 2500 2,230.00 5,575,000.00 1.5 Dining Chairs Set 80 6,500.00 520,000.00 1.6 Coffee Tables with chairs No 330 3,500.00 1,155,000.00 1.7 Chairs with tables for bed Rooms No 30 30,000.00 900,000.00 1.8 Bed with all accessories for Family Room No 50 25,000.00 1,250,000.00 1.9 Bed with all accessories for Double Room No 60 17,500.00 1,050,000.00 1.10 Bed with all accessories for Suit Room No 80 15,000.00 1,200,000.00 1.11 Beds with all accessories for Single room No 15 10,000.00 150,000.00 1.12 Comfort Chair(sofa) for reception Set 30 25,000.00 750,000.00 1.13 Sofa Fixture for family room Unit 220 17,200.00 3,784,000.00 1.14 LCD 32” TV for Bed room Unit 25 50,000.00 1,250,000.00 1.15 LCD 60” TV for Restaurant café and Bar 4

1.16 Kitchen Equipments LS 2,100,000.00 300,000.00 1.17 Coffee machine Set 6 50,000.00 175,000.00 5 35,000.00 410,000.00 1.18 Water tanker Set 20 20,500.00 900,000.00 12 75,000.00 20,000.00 1.19 Refrigerator No 2 10,000.00 600,000.00 240 2,500.00 500,000.00 1.20 Balcony & alcohol display Set 250 2,000.00 80,000.00 2 40,000.00 1,000,000.00 1.21 Satellite Dish No 1,200,000.00 700,000.00 1.22 Satellite Receiver Equipment /Decoder No 1.23 Phone set No 1.24 Receptionist table with chairs Set 1.25 Other bed room facilities LS 1.26 Decoration (painting, Carpet and curtain) LS 1.27 Other miscellaneous Equipments LS Total 2 Assembly Hall machinery & Equipment 0 1,200,000.00 2..1 Multimedia projector machine & its accessories Set 6 200,500.00 457,800,000.00 6 76,300.00 1,008,000.00 2.2 Adjustable hall screen Pecs 6 168,000.00 930,000.00 6 155,000.00 8,000,000.00 2.3 Decorative and stage lgh system Lot 4000 2,000.00 2.4 Public addressing system of auditoria type Unit 2.5 Chair with adjustable backrest and seat (for Unit three hall) 2.6 Laminated conference table LS 10 20,500.00 205,000.00 - 750,000.00 2.7 Carpet & curtain Pecs 6 5,000.00 30,000.00 2.8 CD player LS 0 375,000.00 Total 3 Green and gardening area machineries & equipment 4 Children play ground equipments LS 850,000.00 1,800,000.00 5 Children Game center machinery & Equipments LS 2,520,000.00 6 Spa, Massage, Beauty Salon & Sauna machinery LS & Equipments 4

7 Wedding Shade equipments LS 450,000.00 1,250,000.00 8 Gymnasium and fitness Center machineries Ls Equipment 275,000.00 50,000.00 9 Swimming Pool Equipments LS 150,000.00 600,000.00 10 Guard Equipments LS 500,000.00 11 Store Equipments Ls 52,549,800 12 Generator 500 KVA 13 Other Miscellaneous Equipments & machineries Grand Total 4

C. Vehicles SN Description Qty Unit Total Price Remar Price in Br k 1 V8 or similar standard car for 1 5,000,00 5000000 0 Duty General manager 3,000,00 3000000 free 0 Duty  2 Prado or equivalent standard 1 1000,000 3000000 free Duty for as manager 1000000 300000 free Duty  3 Double cup for department 3 2000000 4000000 free Duty heads   18,000,00 free 0   4 Min Bus Van 3 5 Mid Bus 2 Total D. Office Equipment SN Description Measurement Qty Unit Price in Br Total Price in B 1 Office chairs Unit 30 2,000.00 60000 2 Office tables Unit 10 3,000.00 30000 12 3 Computer Unit 6 15,000.00 180000 12 6,000.00 36000 4 Printer Unit 6 2,000.00 24000 8,000.00 48000 5 Computer table with Set 4,000.00 16000 5,000.00 10000 6 cMhaanirasgerial Chair with Set 700.00 2800 7 FtailbeleCabinet Unit 125,000.00 8 Office Shelves Unit 531,800 9 Telephone Set Unit 10 Decoration (Curtain set cTaortpaelr) D. Pre – Service Expense SN Description Cost in Br. 1 Project proposal 50,000.00 2 Licensing fee and others 50,000.00 3 Environmental Assessment Impact 200,000.00 4 Staff Capacity Building 200,000.00 500,000 Total 4

5.2. Operating Expenses at Full Capacity i. Raw materials SN Description Measur Cost perTotal Annual ement Month in Br cost Br. 1 Raw Materials for restaurant and Cafe LS 3,238,202 38,858,420 3,238,202 38,858,420 Total iii. Other Operating Expenses SN Description Annual Cost br. 1 Property Insurance 1448590.00 2 Audit & Legal Fee 54000.00 3 Uniforms 60000.00 4 Telephone, fax and postal 24000.00 5 Cleaning goods supplies 60000.00 6 Repair and maintenance 7 Advertisement 2,897,181.00 8 Stationery and supplies 500,000.00 9 Electricity 12,000.00 10 Water 94,000.00 11 Fuel 30,000.00 12 Oil and lubricant 257,600.00 13 Miscellaneous Expense 25,760.00 144,000.00 Total 5,607,131.00 5.3. Underlying Assumption The financial analysis of the envisioned Residential apartment building is based on the data provided in the Preceding sections and the following assumptions. A. Construction and Finance Construction period 3 years Source of finance 30% equity and 70% loan Bank interest rate 10% B. Working Capital Accounts receivable 30 days 4

Work in progress 5 days Cash in hand 5 days Account payable 30 ays 5.4. Source of Income % share Amount (in Birr) SN Description 30 198,000,000.00 1 Owners Share 70 462,000,000.00 2 Bank Loan 100 660,000,000.00 Total 5.6. Projected Revenue Based on the capacity of the envisioned Residential apartment building indicated in previous chapter, the total revenue of the project is projected as indicated in the table below; 1. Annual Production and Total Sales/rents- Revenue Forecast for a year Housing type Number of Area (m2) Total Area Sale price Total Sale Three bed room units 165 163,625,000 22 (m2) /m2 3850 42,500.00 Two bed room 60 115 6900 45,000.00 310,500,000 One bed room 16 90 1440 41,000.00 59,040,000 Studio 10 45 450 42,000 18,900,000 1st Floor - 3rd Floor 415*3*6--- 7470 M2 49,000 366,030,000 Rental commercial Lump suum space 600 car 35 252,000 First basement 600 car 30 216,000 Second basement 918,563,000 Total Since the project will be engaged in Residential apartment building development the main sources of its annual revenue would be from the rental of Business Building spaces. Therefore, the sources of revenue have been classified in to one category namely the rental of Residential apartment building. Based on the market price of existing building in the Addis, the envisioned Residential apartment building set the following fair price 4

(Before VAT) for its service, hence when the building construction fully get operational it is assumed to generate a yearly income of ETB 918,563,000.00.00 A. Financial Analysis and Statements 1) Underlying Assumption The financial analysis of the project is based on the data provided in the preceding sections and the following assumptions. A. Construction and Finance  Construction period 30 Months  Source of finance 30% equity and 70% loan  Tax Holiday 2 Years  Bank interest rate 10 %  Land lease Birr per year for 99 years  Lease payment period 10 years  Rental Construction Equipments income increased by 5% annually  Consultancy Income increased by 10% annually  Salary increased by 3% annually  Operating Income increased by 5% annually B. Depreciation  Building and Construction 10%  Building Machinery and equipment 10%  Vehicles 10%  Office Furniture and Equipment’s 10% 4

4

2) PROJECTED INCOME STATEMENTS Descriptio Years n 1 2 345 Revenue 429,250,000. 780,454,545. 1,419,008,288 2,627,793,082 4,866,283,485 5,1 00 45 .46 .34 .81 Less 301,584,787. 603,169,575. 861,670,821.9 1,723,341,643 3,446,683,287 3,4 operating cost 67 34 2 .83 .67 Gross 127,665,212. 177,284,970. 557,337,442.5 904,451,438.5 1,419,600,198 1,6 Profit 33 11 5 0 .14 40, Less 40,439,187.6 40,439,187.6 40,439,187.67 40,439,187.67 40,439,187.67 depreciati 77 on Less 35,000,000.0 35,000, interest 0 000.00 35,000,000.00 35,000,000.00 35,000,000.00 35,0 Profit 52,226,024.6 101,845,782. 481,898,254.8 829,012,250.8 1,344,161,010 1,6 Befor Tax 6 44 7 3 .47 Tax (35%) 18,279,108.6 35,646, 168,664,389.2 290,154,287.7 470,456,353.6 560 Net Profit 3 023.85 1 9 7 8 1,0 33,946,916.0 66,199,758.5 313,233,865.6 538,857,963.0 873,704,656.8 3 9 7 4 1 4

6 7 8 9 10 11 122,403,669 9,313,461,216 16,933,565,848 30,788,301,543 55,978,730,078 101,779,509,234 .28 .87 .85 .36 .83 .24 446,683,287 6,893,366,575 13,786,733,150 27,573,466,301 53,025,896,733 98,196,105,061. .67 .34 .67 .35 .36 78 675,720,381 2,420,094,641 3,146,832,698. 3,214,835,242. 2,952,833,345. 3,583,404,172.4 .61 .53 17 01 47 5 ,439,187.67 40,439,187.67 40,439,187.67 40,439,187.67 40,439,187.67 40,439,187.67 000,000.00 35,000,000.00 35,000,000.00 35,000,000.00 35,000,000.00 35,000,000.00 600,281,193 2,344,655,453 3,071,393,510. 3,139,396,054. 2,877,394,157. 3,507,964,984.7 .94 .86 50 34 80 8 0,098,417.8 820,629,408.8 1,074,987,728. 1,098,788,619. 1,007,087,955. 1,227,787,744.6 5 68 02 23 7 040,182,776 .06 1,524,026,045 1,996,405,781. 2,040,607,435. 1,870,306,202. 2,280,177,240.1 .01 83 32 57 1

3) Balance sheet (Beginning of operation) Asset Current Asset Value in Br. Cash 198,000 ,000.00 Initial inventory of raw materials and inputs 28,447, 616.00 Total Current Asset Fixed Asset 226,447,6 16 Land, Building and Construction   Machineries and Equipment’s 396,154, 108.00 Office Equipment 24,174, 517.00 Vehicles 297,0 Total fixed Asset 00.00 Total Asset 12,926,75 433,552,384 Liability 660,000,00 Account payable 0.00   Owners’ Equity 660,000, Capital 000.00   Total Liability & Owners’ Equity 00 660,000,00 0.00 5.2. Cost Benefit Analysis 1. Profitability According to the projected income statement, the building will start generating profit in the 1st year 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. 4

ii. Pay-Back Period The investment cost and income statement projection are used to project the pay-back period. The building’s total investment will be fully recovered at the 2.4 years of operation. 6. ENVIRONMENTAL IMPACT ASSESSMENT All projects in environmentally sensitive areas should be treated as equivalent activities irrespective of the nature of the project. The real estate is provided with a drainage system that carries all waste water to a central point. The mitigation of the effects of the waste begins by bringing it to a central point and collecting it in a pit of sufficient size to handle the amount of waste generated. Such a pit should be lined appropriately to render it impervious so that no used water escapes to the environment. Generally, the Real estate operation including any other tourist network industries are environmental friendly. As to real estate service, due to the very nature of the operation, the business itself requires keeping the environment tidy and beautiful. Therefore, due to their vested interest real estate operation has to keep the environment friendly and attractive. The service is not going to have any danger to resident of nearby and to the overall environment. 7. PROMOTERS COMPANY PROFILE 7.1. BALE MOUNTAIN REAL STATE PLC.  +51- 9660-34943 Bale Mountain Real Estate PLC was established in aiming to participate in addressing the housing gaps in Addis Ababa. The company is the result of many years of research into the construction sectors particularly for delivery of affordable luxury apartments and commercial centers at convenient locations, with quality standards and within reasonable time. Thus, all shareholders of the company are with Masters degree in different fields of study that contribute to the growth of the company i.e. Engineering, Electro Mechanical Engineering, MBA, Planning, Marketing and IT. For each project we make researches with aim of exceeding customer expectations by developing high-end luxurious, medium and lower cost residences and commercial centers based on assessing the customers need and environment through: superior customer relationships 4

introducing new technology reliability accessible location professionalism a successful business history delivery on time with bet quality Shareholders' Profile The company is owned by five family members who have been running various business organizations that take part in advertising and promotion, construction, education services, ICT and import export areas. Their ample business experience has great contribution for the company's growth. Furthermore, all the shareholders of the company are with Master’s degree in different fields of study related to Business Management, Engineering, IT and Marketing. Vision To be uniquely leading company in the housing development sector. Mission Meeting customers demand with quality service beyond their expectations and the market based on supported business models with highly qualified, motivated staff. Core values Communication, commitment, and client care are the core values that emanate throughout every activity that we undertake. Goal  We create concepts; we design, develop, construct and deliver.  Transparency, accountability and discipline are important in dealing with clients.  Our clients' needs and best interests are at the heart of everything we do.  We strive to understand our markets, our partners and our clients' needs.  Relationship is a key to us; we connect people to their homes and to their communities.Impress our clients through responsiveness and communications with clear and honest understanding. We will stay close to our clients with encouraged team spirit, and an open management style and a process of performance measurement and continuous improvement by training and retraining our staff to make efficient use of technology to give enhanced services. 4

7.2. PROPOSED DEVELOPER COMPANY PROFILE - SAMCON ENGINEERING & CONSTRUCTION PLC, The construction industry plays significant role in enhancing the development of any country.  In this regard lots of contracting firms have been established in the country.  SAMCON Engineering & Construction is being one of the many contracting firms established so far. Since its establishment in 1987 E.C we have entered into contract with various employers both local and international. The company has successfully accomplished the construction of different facilities like Office, Health, Agricultural, Universities, Residential Villas etc. in various regions of the country.  And at this moment our company implement ISO 9001:2008 Quality Management System and awarded third party audit report. Vision  Our company continues to move forward and become the leading Engineering and Construction firm in Ethiopia and eventually the region, while delivering projects that consistently meet international standards.  Mission  With a well-defined direction in place, the path to realizing our vision is based on fundamental drivers, instrumental in achieving our goals.  Our Mission – To undertake the Engineering and Construction Business with a focus on becoming the leader in product costing while building excellent in every aspect to meet customers. – To develop an effective management that stresses productivity, perpetual development of the organization and instilling work ethics in all personnel. – To build value for the organization in order to become a unique and distant firm. – To remain focused on controlled organizational growth & recognizing those who contribute to this growth Quality Policy  SAMCON Engineering Construction strived to achieve enhanced   customer satisfaction by delivering quality product through timely completion with safe working environment. We dedicated ourselves for continual improvement in all fields of our business.  Quality Objective 4

 – To consistently deliver quality product by adhering to the set specifications contractual, regulatory and statutory requirements. – To achieve enhanced customer satisfaction through cost effective and timely completion. – To motivate and train the staff for continual improvement of quality standards. – To update and implement the procedure complying with international standards. COMPANY DETAILS Telephone: +251-111-22 47 96 : +251-116-51 37 66 Fax             : +251-111-55 22 20 E-ma:   [email protected] : [email protected]  P.O.Box    : 30583 Location   : Daki Building 3rd Floor, Across Semien Hotel 4