PROJECT PROPOSAL

ON THE ESTABLISHMENT
Of
Mixed use project

On Smart off-Street parking service

Sept, 2022

Addis Ababa

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CONTENT PAGA
1. BACKGROUND AND PROBLEMS ANALYSIS .............................................................................. 6

2. PROJECT DESCRIPTION ................................................................................................................... 8

3. VISION ................................................................................................................................................. 9

Ensuring the full development of the project region, including the installation of the required
infrastructure, business centers, services, and facilities, is aimed at building a profitable corporate empire
there. ............................................................................................................................................................. 9

4. GOALS ................................................................................................................................................. 9

5. OBJECTIVE ......................................................................................................................................... 9

5.1. General Objective ......................................................................................................................... 9

5.2. Specific Objectives ....................................................................................................................... 9

6. PROJECT AREA and PROJECT RATIONALE ............................................................................... 10

ddis Ababa City is currently governed by eleven sub-cities and over 116 Woredas. Due to the high
number of vehicles in Arada, one of these sub-cities, a project proposal was developed to tackle the issue
of insufficient off-street and on-street parking. This arises from the presence of various public centers in
Arada, including the largest market center, institutional headquarters, a notable college and university, a
church, the influential "Merkato" area, a mosque, and the headquarters of the Orthodox Church. The
project aims to address the existing shortage of parking spaces, capitalize on Arada's advantageous
commercial and administrative position, improve infrastructure accessibility, and align with the growing
trends of urbanization and business activities. Consequently, this project has been identified and proposed
as a more profitable design and implementation for the Arada sub-city .................................................... 10

7. SITE OVERVIEW .............................................................................................................................. 10

8. EXISTING SITE PLAN ..................................................................................................................... 11

9. PARCEL POSSESSION/PARCEL OWNERSHIP HISTORY .......................................................... 14

10. SURROUNDING CONTEXT (ADJACENT SITE) ...................................................................... 15

11. TOPOGRAPHY AND NATURAL FEATURES ANALYSIS ...................................................... 15

12. STRUCTURAL PLAN AND LOCAL DEVELOPMENT PLAN ANALYSIS ............................ 16

A structural plan is a technical, institutional, and policy framework that guides the long-term
development of a city or urban region. It serves as a long-term socioeconomic, spatial, and urban
management vision and acts as a statutory tool for urban development, providing the foundation for
coordinating and sustaining other development plans. ........................................................................... 16

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 The current structural plan for the project area in Addis Ababa City is designated for high-density
mixed-use purposes. The land use categories include parking facilities, supermarkets, banks, insurance
offices, restaurants, cafeterias, guest housing rooms, conference rooms, and other activities. The
existing road network is 20m wide and runs along the front edge of the project area. Furthermore,
under the city's new structural plan, the building up area ratio (BAR) for the study area is currently
exempt in terms of plot building height. The floor area ratio (FAR) for plots facing local streets is set at
1:2 to 1:5, while plots facing collector streets have an FAR of 1:2. ....................................................... 16

13. Zoning and Land Use ...................................................................................................................... 16

13.1. Mixed land use Analysis ......................................................................................................... 18

14. MARKET AND DEMAND ANALYSIS ....................................................................................... 19

14.1. Market study of Parking (demand determination) .................................................................. 19

14.2. Parking space demand and supply requirement analysis ........................................................ 19

15. EXPECTED PARKING DEMAND ............................................................................................... 24

15.3. Marketing promotion and strategy .......................................................................................... 26

15.4. Production Program ................................................................................................................ 27

15.5. Competition............................................................................................................................. 27

15.6. Payment facility ...................................................................................................................... 27

15.7. Permitting................................................................................................................................ 28

15.8. The project facilities and Services plan .................................................................................. 28

16. TECHNICAL AND ENGINEERING ANALYSIS........................................................................ 29

16.1. Description of the project Service ........................................................................................... 29

16.2. Land Use Plan ......................................................................................................................... 29

16.3. Construction work and Technology ........................................................................................ 29

16.4. Architectural Design & Layout ............................................................................................... 30

16.5. Structural design ..................................................................................................................... 30

16.6. Reinforced concrete ................................................................................................................ 30

16.7. Utilities .................................................................................................................................... 30

16.8. Engineering and civil works ................................................................................................... 31

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 16.9. Manpower and training requirement ....................................................................................... 32

16.10. Project implementation ........................................................................................................... 33

16.11. Organizational Structure ......................................................................................................... 33

17. FINANCIAL ANALYSIS AND EVALUATION .......................................................................... 36

17.1. Fixed investment cost.............................................................................................................. 37

18. FINANCIAL ANALYSIS .............................................................................................................. 41

18.1. Repair and maintenance cost................................................................................................... 42

18.2. Revenue Generation ................................................................................................................ 42

18.3. Discounted Payback Period .................................................................................................... 43

18.4. Cash flow ................................................................................................................................ 43

18.5. Benefit cost ratio ..................................................................................................................... 43

10.6 Break-even Analysis ....................................................................................................................... 43

18.6. Pay-back Period ...................................................................................................................... 44

18.7. Internal Rate of Return............................................................................................................ 44

18.8. Net present value ..................................................................................................................... 44

19. ECONOMIC BENEFITS ANALYSIS ........................................................................................... 44

19. SOCIAL BENEFIT ANALYSIS .................................................................................................... 44

20. ENVIRONMENTAL IMPACT ASSESSMENT ........................................................................... 45

21. RISKS AND CHALLENGES ........................................................................................................ 45

22. CONCLUSIONS AND RECOMMENDATIONS ......................................................................... 46

23.1. Conclusion .............................................................................................................................. 46

23.2. Recommendations ................................................................................................................... 47

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Executive Summary
Yeshwork Abebe project aims to develop a feasibility study for a multi-story car park in Arada
sub city through public-private partnership as a solution to time-consuming and labor-intensive
parking problems. A feasibility study was prepared for a proposed twelve-story off-street parking
garage. The current car park, according to the findings of this feasibility study, can only
accommodate 48% of peak demand. One of the major issues that motorists face is a severe lack
of parking space in the Arada sub-city. The demand for parking in Arada's Central Business
District (CBD) has increased at an alarming rate. As a result, the proposed multi-story car park
was estimated to have a maximum capacity of 238 cars and a cost of 487.432 million and
Generate birr 474.274 Million of net present income

According to the project's economic indicators, the Simple Rate of Return would be 5.49% of the
investment cost. It has a positive net present value at a 14% discount, indicating that it is

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feasible, and an internal rate of return of 46%; additionally, the payback period is 3 years and 4
Month, implying that the investor's investment will be returned after 3 years and 4 of operating
the project. The project is technically feasible, financially and commercially viable, and socially
and economically acceptable in general. As a result, the project is worthwhile to carry out.

1. BACKGROUND AND PROBLEMS ANALYSIS

With a population density of 9,672 people per square kilometer in 2020, Addis Ababa is
Ethiopia's most densely populated city. The lifestyle of city dwellers is changing, and people
prefer to travel by car from one location to another within the city. People must travel to these
locations on a regular basis because major facilities and public services, such as the market,
schools, religious centers, and offices, are concentrated in the city center. This demand has
resulted in transportation development, but it has a negative impact on the efficient use of roads
due to a lack of parking lots. Furthermore, Addis Ababa's growing working population with a
variety of activities has an impact on the growing demand for transportation facilities and
infrastructure. This mobilization complicates the management of transportation problems in
Addis Ababa, particularly at entry and exit points during working hours. Parking availability
becomes one of the facilities and infrastructure indicators that have a significant influence on
traffic density.
On-street parking dominates Addis Ababa's city parking system, though there are a few off-street
parking plots inside buildings. There are few easily accessible parking areas near public

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transportation terminals, shops, restaurants, and hotels, contributing to inefficient road network
utilization, especially in terms of road user safety and traffic congestion. This, in turn,
contributes to higher vehicle carbon emissions and has additional implications for air quality.
The Transport Programs Management Office (TPMO) in Addis Ababa is addressing parking
issues by developing optimized parking systems, particularly smart parking systems outfitted
with modern devices such as cameras and sensors. Furthermore, the Master Plan for Addis Ababa,
which has been in place since 2017 and will be operational until 2027, includes the construction of
60 parking lots.

By 2019, Addis Ababa had approximately 596,084 vehicles, but only about 60 parking spaces.
That is, the ratio of cars to parking spaces in Addis Ababa is very low, far from meeting the
demand for city parking, and meeting the demand for parking is difficult. Among Addis Ababa's
sub-cities, Arada has one of the most visible problems with public transportation, and parking
appears to be an overlooked aspect of transportation development. Market centers, shops,
churches, mosques, offices, schools, and similar places frequently generate large parking
demands, exacerbating the sub-parking city's problems.

Therefore, these project centered on minimizes parking issues in the Arada sub city, both on and
off-street. The existing parking conditions were investigated, as well as the relationships between
utilized parking spaces and available parking capacity. The feasibility study found that parking
occupancy of off-street and on-street parking in Arada Sub-city was viable due to high demand
and limited supply of on and off-street parking. This means that the average off-street parking
duration was approximately 4 hours per vehicle, while the average on-street parking duration
was approximately 2 hours per vehicle. Using linear regression analysis, the relationship
developed between utilized parking spaces and available parking capacity of off-street and on-
street parking reveals that parking spaces have been nearly full utilization of available capacity.

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2. PROJECT DESCRIPTION

PROJECT NAME YESHWORK ABEBE OFF-STREET PARKING

PROJECT OWNER SHIPE W/Z YESHWORK ABEBE & THEIR FAMILIES

PROJECT LOCATION ADDIS ABABA, ARADA SUB-CITY WOREDA04/09

LAND USE/ TITLE MIXED USE BUILDING

LAND REQUIREMENT 800 M 2

PROJECT LIFE SPAN 10 YEARS

PROJECT TYPE /CAPACITY B+G+12 MIXED USE BUILDING

TARGET MARKET DOMESTIC AND INTERNATIONAL

PROJECT BENEFICIARIES PUBLIC AT LARGE

PROJECT BENEFIT ECONOMIC, ENVIRONMENTAL, SOCIAL AND HEALTH

JOB OPPORTUNITY MORE THAN 29 EMPLOYEES

PRODUCTION CAPACITY PER DAY MORE THAN 1.723 MILLION BIRR/DAY

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LEGAL STATUS THE PROJECT HAS BEEN UNDER PROCESS

INVESTMENT COST 487.47 MILLION

FINANCIAL SOURCE 50% EQUITY AND 50% BANK LOAN

FINANCIAL VIABILITY AT 14% DISCOUNT RATE

NPV(NETPRESENTVALUE) 474.274MILLION

INTERNAL RATE OF RETURN 46 %

PAYBACK PAY 3 YEARS AND 4MONTHS

3. VISION
Ensuring the full development of the project region, including the installation of the required
infrastructure, business centers, services, and facilities, is aimed at building a profitable corporate
empire there.
4. GOALS
The project's goal is to improve the quality of commercial service levels in the Projected Area by
providing smart parking services.
5. OBJECTIVE
5.1. General Objective
The overarching goal of this project proposal is to enable the project promoters to establish
technically, financially, and economically viable mixed-use service smart off-street parking.
5.2. Specific Objectives

The following are the design goals for the proposed development project:
Creating Diverse Commercial Neighborhoods- Create diverse commercial
neighborhoods with a distinct mix of lot sizes, building types, and architectural styles
that create a strong identifiable sense of place for the Arada Sub-city Project Area.
Currency Exchange: The smart off-street parking will also offer currency exchange
services to visitors from other countries.

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 Business Center: The business center is outfitted with the most up-to-date office
automation equipment to provide all services, a shop, a beauty salon, an office,
rooms, and allied services such as courier services, e-mail services,
telecommunication services, and other support services
6. PROJECT AREA and PROJECT RATIONALE
ddis Ababa City is currently governed by eleven sub-cities and over 116 Woredas. Due to the
high number of vehicles in Arada, one of these sub-cities, a project proposal was developed to
tackle the issue of insufficient off-street and on-street parking. This arises from the presence of
various public centers in Arada, including the largest market center, institutional headquarters, a
notable college and university, a church, the influential "Merkato" area, a mosque, and the
headquarters of the Orthodox Church. The project aims to address the existing shortage of
parking spaces, capitalize on Arada's advantageous commercial and administrative position,
improve infrastructure accessibility, and align with the growing trends of urbanization and
business activities. Consequently, this project has been identified and proposed as a more
profitable design and implementation for the Arada sub-city
7. SITE OVERVIEW
The project is situated in Arada Sub City, specifically in Woreda 09, locally known as Arat Kilo,
right in front of the Kidst Meriam Church. The site faces west onto 50m Street and is bordered
by a residential building to the north and a mixed-use building to the south. Surrounding the
proposed project site are residential areas and Kebele houses. Before proceeding with the
implementation of the project, it is essential to gather and analyze market demand data and
conduct a comprehensive feasibility study. The objective of this document is to prepare a project
proposal that is technologically, economically, financially, and environmentally feasible. This
proposal will facilitate informed decision-making regarding the allocation of the identified land
plot to the project, ensuring practical services are provided.

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 Figure 1:-Project site

Study

8. EXISTING SITE PLAN

In the sub-center site, the existing ground zero-story building houses a compound with a number
of Kebele Houses. The northern, southern, and eastern portions of this building have been zero
unit buildings since 1947. Despite failing to meet the requirements, all of these structures have
now been nominated for landmark status. As part of the proposed project, all existing structures
and paved surfaces on the project site will be demolished.

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Figure 2:-Existing Project site

Propos

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Figure 3:-Existing Project sites

Propose

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9. PARCEL POSSESSION/PARCEL OWNERSHIP HISTORY
The site is made up of 16 parcels, some of which have been used for residential purposes and
others for vacant spaces. The deed is currently in possession of the owner of this project
proposal, some of which are public housing (RHA). The land is zoned High Density Mixed Use.
The total plot size was 800 m2. The owner of this project proposal and the remaining two
properties, one of which is a public house and the other which is vacant due to road extension,
have been compensated for the evictees.

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10. SURROUNDING CONTEXT (ADJACENT SITE)

The site has been transformed into a highly commercial center, featuring a mixed-use building
that encompasses retail shops, offices, cafes, restaurants, and apartments. On the open space side,
the neighborhood comprises a blend of townhouses and detached single-family homes.

A high-rise mixed-use building is currently under construction adjacent to the proposed site and
will eventually be connected through the adjoining 433m2 parcel situated to the immediate
northeast of the proposed site or parcel. The Kebela Resident area is separated from the site by a
boundary and is located immediately to the south of it.

11. TOPOGRAPHY AND NATURAL FEATURES ANALYSIS

The topographic survey of the site indicates that it is relatively flat throughout, with a two-meter
grade change at the front of the site along the Street in West. The average elevation of the site is
2341.5 meters, with the average elevation being 2343.5 meters.
Figure 5:- Study Area Topography Map

Study

Source: - Adapted From AA Line map, 1997.

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12. STRUCTURAL PLAN AND LOCAL DEVELOPMENT PLAN ANALYSIS

A structural plan is a technical, institutional, and policy framework that guides the long-term
development of a city or urban region. It serves as a long-term socioeconomic, spatial, and urban
management vision and acts as a statutory tool for urban development, providing the foundation
for coordinating and sustaining other development plans.

The current structural plan for the project area in Addis Ababa City is designated for high-
density mixed-use purposes. The land use categories include parking facilities, supermarkets,
banks, insurance offices, restaurants, cafeterias, guest housing rooms, conference rooms, and
other activities. The existing road network is 20m wide and runs along the front edge of the
project area. Furthermore, under the city's new structural plan, the building up area ratio (BAR)
for the study area is currently exempt in terms of plot building height. The floor area ratio
(FAR) for plots facing local streets is set at 1:2 to 1:5, while plots facing collector streets have
an FAR of 1:2.

13. Zoning and Land Use

According to the 2011 Addis Ababa City Sector Plan and the 2018 Addis Ababa Plan
Commission, the main Land Use Plan (AALUP) is zoned as -3, which is designated as Green
Parking and mixed-use. The following are the height restrictions for zoning 3:

 Maximum Building Height: 35 meters.

 Maximum Floors: 5.
 Minimum Floor Plan: 2 floors.
It is also a "Special Coordinated Mixed-Use District" with the goal of encouraging medium to
higher density mixed-use development. The current land use status of the study area is
dominated by commercial activities. Furthermore, in the immediate vicinity of this study area,
there are various land use activities, including services, manufacturing, business, and other
similar activities taking place around this plot area.

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 ዞን ጥቅል ወለል ምጣኔ (ጥወም) ህንፃ ከፍታ አነስተኛ
የመኖሪያ ምጣኔ
(በሜትር)

ዝቅተኛ ከፍተኛ ዝቅተኛ ከፍተኛ

1 10 ያልተገደበ 70 ያልተገደበ 30%

2 5 ያልተገደበ ≥CS 70 50%

5 5 LS 35

3 2 ያልተገደበ ≥CS 35 60%

2 5 LS 35

4 0.5 ያልተገደበ ≥CS 35 60%

0.5 3.5 LS 35

Figure-:5 Project site proposed building height

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13.1. Mixed land use Analysis
According to the Addis Ababa city master plan, the mixed land use category can accommodate
land use types such as industry, manufacturing, commerce, residence, and storage that require at
least 500m2. Furthermore, social services and facilities are classified as mixed development land
use. This type of development has been given a new urban planning approach. It is assumed that
mixed-use development will make certain neighborhoods more vibrant because when one service
is turned off, the other is active. Furthermore, mixed development has significantly reduced
mobility by clustering all services in close proximity to one another. In general, a successful and
sustainable local neighborhood is determined by the distance people must walk to access daily
facilities, the presence of a sufficient range of such facilities to meet their needs, and the
availability of places and spaces for a variety of activities. In general, mixed business activity has
stimulated and motivated developing countries' economic growth.
As a result, in accordance with Addis Ababa's newly prepared structured plan, the study area
delineated in white on the above existing land use map must be developed for mixed commercial
development. The mixed commercial development in this project area category insists on the
mixed use category being considered in accordance with the structural plan and its restrictions.
This type of mixed-use development has primarily favored the growth of various commercial
activities while not prohibiting residence.

Figure 7: Project Area Land use map

Source: - Adapt from AAMP, 2016

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14. MARKET AND DEMAND ANALYSIS

14.1. Market study of Parking (demand determination)

Across the country, the number of local and international trades has increased significantly. This
increase is primarily due to the encouragement of economic activists, as well as an increase in
the flow of international and local traders into Addis Ababa. Commercial facilities are scarce in
the city, despite the lack of quantitative estimates of actual demand and annual growth rate. As a
result, there is a significant demand gap between on-street and off-street parking. This project
proposal to determine the demand and supply of off-street parking in Arada sub City may
include a variety of factors, such as project size, zoning, the type and number of people expected
to visit the site, the availability of alternative transportation modes, and the time frame for the
analysis. To analyze the demand and supply of parking in the Arad sub city, the following land
uses were identified:

Government office, General office, Bank, Restaurant/clubs,

Residential units, Hotel units, Commercial centers
Miscellaneous land use including library, convention center, youth
hostel, theatre.
Land use totals by sub-area for each category are then provided in table. For each land use a peak
rate were identified. Then the Parking demand was calculated based on the land use analysis
detail calculation
Parking Demand of each land use=peak rate* land use

14.2. Parking space demand and supply requirement analysis

To address parking space shortages, the Addis Ababa City Administration devised a strategy to
develop parking lots throughout the city, and the administration planned to build parking
facilities in a timely manner. However, for unknown reasons, the city continues to have a parking
shortage. Parking spaces remain a major concern for drivers, pedestrians, and the business
community. The current parking service is inadequate and suffers from structural issues,

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primarily street parking, resulting in a scarcity of parking spaces. Arada Sub-City has contributed
to inefficient road network use, safety hazards, and traffic congestion issues, causing the city to
park as one of the critical issues that must be addressed immediately through optimal
transportation planning. Parking challenges in the capital city will continue to be a major issue
due to poor parking policies, poor city planning, population growth, increased car ownership, to
name a few. Finally, increased urbanization is one of the problems to parking space challenges.
Furthermore, there is no specific parking ordinance enacted by the city government or
municipalities in the Addis Ababa Arada sub city condition. The Federal Democratic Republic of
Ethiopia Addis Ababa Urban and Metropolitan Transport and Land Use Linkages Strategy
Review (2014), on the other hand, specify parking space requirements for the land-development
process. As a result, developers must provide one parking space for every large apartment, one
parking space for every five medium-sized apartments, and one parking space for every ten small
apartments, and one parking spot for every 70 m2 of commercial space provided. The amount of
parking for a given unit of land use is also set by the urban transport and traffic management
planning office (UTTMPO), as shown in table 2.

This project proposal survey is carried out by scanning secondary data, excluding the total
parking space available in the shopping center and its surrounding streets. In addition, manually
count the number of available parking spaces in the studied site for each parking type (on street,
off-street, or surface). As a result, there is no adequate marking for parking spaces in accordance
with the standard, and the number of parking spaces is limited.

Table 1: Typical Parking Demand Rates from UTTMPO

Item Use Type Required parking sepals

1 Dwelling One space per housing unit.

2 Industry One space per 3-20
3 workers Office One space per 2-10 workers

4 Theater One space per 10-15 seats

5 Hotels One per 5 bed room
Source: - Asfaw Dessie, 2016

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This demonstrates that the provision of one parking space for every 70 m2 of commercial space
in the Addis Ababa Urban and Metropolitan Transport and Land Use Linkages Strategy Review
is less than the ITE requirement of 5 spaces per 304 square meters. Moreover, a diverse range of
real estate developments and commercial activities are taking place in various parts of Addis
Ababa. Shopping centers, modern hotels, schools and colleges, medical centers, financial
institutions, housing buildings and high-rise residential apartments, as well as commercial and
office buildings, are among the developments occurring in the city, which necessitates on- and
off-street parking. This project proposal focuses on the Arada sub city Wereda 09, which has a
high density of commercial centers such as shopping centers, schools and colleges, medical
centers, a number of financial institutions, and high-rise residential apartments (0-10 story) and
5-12 story commercial and office buildings that line the Arat Kilo road.

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Figure 7:- Commercial Area map

Source:-Adapted from AAMP, 2016

14.2.1. Demand analysis of off-street Parking

In terms of demand analysis, the entire market is divided into individual segments based on the
nature of business transactions. Although a market may have several segments, the four primary
classifications that occur in the majority of market areas are consulting, commerce, service, and
commissioning. Market segmentation is a useful procedure because each classification has
distinct characteristics in terms of growth potential, seasonality of demand, and average length
and transaction.
Off-street parking demand of Arat kilo-piazza, Arat kilo to Amis/ 6 kilo road is a 1 and 1.7 km
long road that begins at the Arat-kilo round about and ends at the piazza square near the corner
of Anbessa shoes. Off-street parking demand and supply analysis, as well as building parking
supplies that passes along the main road. The road has 25 parking lots, 7 on-streets, 15 off-street,
and the remaining 3 are a mix of on-street, off-street, and building parking facilities. Parking fees
range from 2 birr to 10 birr depending on the purpose of the service and are valid for 30 minutes.

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This road segment contains a variety of residential and commercial structures, community
commercial centers, shops, bars, and restaurants.
The following is an inventory of existing parking facilities in the project area, including a
detailed listing of the location and all other relevant characteristics of each legal parking facility,
private and public, in the project area:
 Meseret café
It is a multi-purpose building with cafés and restaurants, commercial centers, business
centers, and residential apartments, as well as 12 off-street parking spaces and an
angular parking facility.
 Tourist Hotel: - Hotel and recreational area, 66 rooms, 7 off-street parking spaces,
and angular parking facility.
 Maleda café
A multi-purpose building which contains café and restaurants, A small commercial
center, Off-street Parking capacity of 5, On street parking and Perpendicular parking
facility Parking.
 Seble restaurant:- it is A multi-purpose building with cafés and restaurants,
commercial centers, and business centers, as well as 20 off-street parking spaces and
an angular parking facility.
 CBE/Arat Kilo branch)
Bank area, 6 off-street parking spaces, and perpendicular parking.

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15. EXPECTED PARKING DEMAND

15.1. Parking demand target group

Parking demand in proposed project area this Sub site uses parking spaces to get different
facilities. In addition to the usual demand of shop owners, residents, tourism, students, and
customers, this Sub city makes use of parking spaces to provide a variety of services.
The parking Users on this site are:-
Tourist
shop owners
shoppers
cinema owners and their customer
Church and church followers
Entertainment and governmental offices
University and college staff
15.2. Demand rate analysis

Peak demand rates were calculated by counting the number of parked vehicles during an observa
tion period and dividing that number by the gross square footage (GSF) of each land use. The det
ailed calculation is attached. The actual demand rate was calculated by dividing peak demand by
the gross square footage area of each land use and expressed in terms of per thousand rates.

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Table 2: Actual versus institute of transportation Engineers (ITE) peak parking demand
rates 4 Kilo to pizza and 4 Kilo to Sid Kilo
Item Land Use Type Actual Demand ITE demand Gap/Actual parking
Rate(in gsf) Rate (in gsf) Demand rate

1 Commercial 0.45/1000gsf 2.84/1000 gsf Below demand

2 Residential 0.83 per unit 1.23/unit Below demand

3 Commercial office 0.53/100gsf 2.84/100gsf Below demand

4 Bank 1.91/100gsf 4/100gsf Below demand

5 Restaurant (no bar/ 0.58/100gsf 5.55/100gsf Below demand

lounge)

6 Hotels 0.15/room 0.89/room Below demand

7 Bar and restaurant 3.26/1000gfs 15/1000/gsf Below demand

7 Government offices 1.97/1000gsf 3.65/1000/gsf Below demand

According to ITE, the current actual demand necessitates a minimum of 146 additional parking s
paces with a low supply, whereas the standard recommends 703 additional parking spaces
require.Furthermore, an Addis Abeba city parking demand analysis occupancy rate of each surve
yed day shows the percentage of congested parking spaces on weekdays by street and time of da
y, according to the Miresa Tefera study.

15.2.1. Commercial demand

A businessperson passing through an area to complete some tasks could contribute to the
creation of commercial demand. The commercial segment is made up of individual business
people visiting various firms in the proposed area. Monday through Thursday night and Saturday
have the highest demand, which drops significantly on Friday and rises slightly on Sunday.
The commercial segment includes individual business travelers, representatives of large business
firms, and other individual business travelers visiting firms in the immediate area or passing
through on their way to other destinations. Their lodging choices are influenced by brand loyalty,
as well as location and convenience in terms of business and amenities. Restaurants, cafés,
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shopping centers, beauty salons, and apartment accommodations are typically prioritized by
these businesses.
15.2.2. Business Demand
The meeting and transaction market includes meetings, seminars, conversations, trade
association shows, and similar gatherings of ten or more people. Conventions are typically
busiest in the spring. Due to vacations, the summer months are less active for this market
segment, and winter demand varies. Despite the fact that the trade and business segment is
divided into numerous classifications, the primary categories considered in this analysis are
global and regional institutions, corporate groups, associations, and other groups.
As is well known, Addis Ababa is the headquarters of a number of organizations, including the A
frican Union. Because they have low price sensitivity and frequently sponsor banquets and other
events that generate revenue for the host of cafés, restaurants, banking services, insurance service
s, and other related services, corporate groups are among the most profitable segments in this seg
ment.
Table: 3 Sample of international Tourist by Purpose of Visit
Year Business Vacation Transit Conference Visit Not stated Other ports Total
2009 27917 30758 18670 6689 14589 10321 27000 135954
2010 26577 41083 17216 5361 14913 11288 32000 148438
2011 32752 49339 20113 10612 17779 25732 - 156327
2012 37693 56782 23147 12213 20461 29614 - 179910
Source: Ethiopia Tourism Commission

The country's business and tourism climate has improved as a result of the efforts of the governm
ent and other stakeholders. The country's favorable investment environment has created opportun
ities for many new businesses and service providers to emerge and thrive on a larger scale. This a
ttracted a large number of traders from all over the world. The number of business firms does, in
fact, increase the amount of money that the country can earn from foreign exchange.

15.3. Marketing promotion and strategy

In order to penetrate and gain a significant market share, one of the project's major marketing str
ategies is to consistently provide quality service to its residents, entertainers, lecturers, students,
and other customers. The emphasis must be on improving the quality of service and facilities. Th

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e major marketing strategies used to promote the project and gain a significant market share are a
s follows:

Advertising through various channels

Promote in conjunction with the key location and nearby businesses
Working on long-term promotional efforts.
Working on public relations in order to reach and influence key decision-makers and
organizations.
15.4. Production Program

The program is designed with the assumption that the proposed plantation will work 275 days
per year, with the remaining days used for holidays and maintenance. During the first year of
operation, the plantation will run at 90% capacity, increasing to 95% in the second year. Starting
in the third year, the capacity will increase to 100 percent. This consideration is based on the
assumption that a large market already exists and that all logistical barriers are removed within
the first two years of operation.
15.5. Competition

On the specific service, smart off-street parking, the proposed mixed-use building may face a
variety of forms of competition. Rentable commercial services, cafes and restaurants, and office
space There is both price and non-price competition. Furthermore, the project will face
competition from a variety of sources, either directly or indirectly. The Mixed Use building
service under consideration, on the other hand, employs a variety of marketing strategies that
may enable it to compete with the market's various competitors. Furthermore, it will conduct
regular competitor research, focusing on the strengths and weaknesses, as well as the
opportunities and threats, of the various competitors' strategies, service delivery techniques,
customer handling methods, and so on.

15.6. Payment facility

The payment option will be available via app, website, and handheld, with ewallet, credit and de
bit cards, and cash as payment options.

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15.7. Permitting
Permit applicants can view rates and available space, apply for a permit, upload
verification documents, and buy permits online in real time.
Convenience for Customers
Easy online registration, permit ordering and renewal
Instant email notification
Temporary permits available immediately
Permit status updates via email or text message
15.8. The project facilities and Services plan
In order to provide mixed use building smart off street services of a high standard, it has been
planned to construct and develop the infrastructure and facilities that will 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 combination service mainly off street parking, commercial service center,
Shops, offices, restaurant and café Service.

Table 4: The plan is that the ground will be partitioned in to different rooms and revenue

Building Description Measure Unit price in Birr Total Revenue in

birr
Basement and Parking Service Number 10 birr for the first 33,048,000
Ground hour than add 35
for each hour
1st to 5th floor Parking Service Number 30/per/hr 69,984,000
6th floor -10rd Offices, cafe and M2 850 per/ M2 27,560,000
floor restaurant
Total 131,592,,000.00

The rental of building spaces such as off-street parking, shops, offices, café, and restaurant will
generate annual revenue for the mixed-use building. Based on the market price of similar mixed-
use buildings in the area, the envisioned buildings set the following fair price (Before VAT) for
their service, and it is assumed that when the building construction is fully operational, it will
generate a yearly income of ETB 131,592,000.00.

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16. TECHNICAL AND ENGINEERING ANALYSIS
16.1. Description of the project Service
The envisioned mixed-use building will provide a variety of rental services to a variety of
customer groups for a variety of purposes. The building will have a basement, first floor, and
twelve (12) floors. The following is an explanation of the structure's function:
The basement, ground, and first five floors were designed to accommodate smart off-
street parking
6-10 floors dedicated to offices and various business centers such as banks,
supermarkets, beauty salons, internet cafés, boutiques, and other commercial activities
10-12 floors dedicated to management and staff offices.
16.2. Land Use Plan
The total amount of land required for the proposed project is estimated to be 800m2. The
building's total construction area will be 560m2.

Table 5: Proposed land utilization Plan

No Description Land M2
Basement Ground First floor-5TH floor 6Th floor-12 floor
(each singly floor) (each singly floor)
1 Building (B+G+12)
1.1 Basement Floor 560
1.2 Ground Floor 560
1.3 First Floor- 5 Floor 560
1.3 6Th Floor- 12 Floor 560
Total 560 560 560 560

16.3. Construction work and Technology

Construction schedule

The construction project is set to begin in July 2023 and finish in July 2026. The majority of the
time in the above-mentioned abbreviated construction schedule is spent on six major activities:
design, steel work, concrete work, building enclosure, masonry, mechanical and electrical
installation. Design work activities include architectural design, structural design, electrical
design, sanitary design, and mechanical design. Processes such as placing civil work are
examples of concrete activities (sub structural and super structural).

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Because of the need for coordination between the two divisions, mechanical and electrical
installations overlap. Several times during the construction schedule, multiple construction
activities are taking place at the same time. As these processes take place, the construction site
must be organized accordingly. The goal of the schedule, as with any construction project, will
be to complete all construction activities before the required completion date.

16.4. Architectural Design & Layout

The functional spaces of the project were meticulously planned, but the rest of the building had
designated spaces but fixed layouts. The project promoter was free to create standard layouts for
the unfinished commercial and office spaces.
16.5. Structural design
The structural design of the building is one of the project's primary deliverables. The structural
bays were coordinated with the building layout; adjustments to the bays will be made if specific
layouts are required. The framework will be composed of a grid of repeating standard structural
bays. The structural system includes bay sizes, structural member shape and size, floor
compositions, and curtain walls. These elements were designed to withstand lateral loads as
needed.
The gravity load design for two frames, one of structural steel and the other of reinforced
concrete, will be completed. The structural steel frame will be selected for further design based
on cost per square foot, local material availability, and constructability considerations such as
erection and fabrication. The steel system will then be designed for lateral loading, with framing
adjustments as needed.
16.6. Reinforced concrete
Hand structural design calculations for a typical bay of a reinforced concrete frame were
prepared by the project team. A superimposed dead load for mechanical equipment, floor
coverings, and ceilings will be assumed in all reinforced concrete bay designs.
16.7. Utilities
A number of utilities must be installed in order for the project to run smoothly. Among these
utilities are:

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Table 6: Utilities
No Description Qty. Unit cost Cost (Birr)
1 Electricity supply, kWh 100,000 15*100,000 1,500,000
2 Water Supply m3 50,000 20*500,000 1,000,000
3
Telephone and Internet Broadband 240,000
4
Fuel, Oil and lubricant 4000 55*2000 1,100,000
5 GPS 60 60*60000 2,040,000
Total 5,880,000

16.8. Engineering and civil works

16.8.1. Land, Building and Civil Works
The site area of the mixed use reinforcement building, which is a combination of reinforcement
and steel structure, is 560 m2.
Table 7: List of RC Building and Civil Works and Their Costs
No Description Total price
A. SUB-STRACTURE
1 excavation and earth works 4,873,657.6
2 concrete work 18,841,365.85
B. Sub total 23,715,023.45
C. SUPER STRACTURE
1 Concrete work 12,542,584.77
2 Block work 11,861,428.60
3 Roofing 1,577,489.50
4 Carpentry and joinery 1,874,152.00

5 Metal works 12,216,322.00

6 Finishing 18,400,724,45
7 Painting 1,744,655.95
8 Electrical installation 19,538,091
9 Sanitary installation 3,107,759
Subtotal 64,462,482.82

A+B 88,467,506.27
D. STEEL CONSTRUCTION
10 Steel construction 147,125,000.00
A+B+C 235,592,506.3
Vat (15%) 35,338,876
Grand total 270,931,382.3

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 16.9. Manpower and training requirement
16.9.1. Manpower requirement
Shows the manpower list as well as the annual labor cost.
Table 8: Manpower Requirement and Annual Labor Cost
SN Position No Qualification Monthly salary Annual
in Birr salary in Birr
1 General manager 1 BA/MA/BSC/MSC in management, 35,000 420,000
in Mechanical Engineering
+management
2 Building admin 1 MSC in Construction management 25,000 300,000
3 Secretary 1 10+2 in secretariat science 6,000 72,000
4 HRM Officer 2 10+2 in HRM/Management 8000 192,000
5 Technical and 1 Diploma in building maintenance 12,000 144,000
maintenance manager
6 Finance head 1 BA in Accounting 18000 216,000
7 IT Admin 3 BSc in computer science(Data base 30,000 1,080,000
administration, Network
administrator, and system
administrator
8 Marketer 1 BA in marketing 6,000 72,000
9 Accountant 1 Diploma in accounting 12,000 144,000
10 Guards/Security 4 Basic 3500 42,000
11 General Service head 1 Diploma in Management 6,000 72,000
12 Purchaser 1 BA in purchasing &Sup Mgt 6000 72,000
13 Electrician 1 10+2 in general electricity 12,000 144,000
14 Plumber 1 10+2 in general mechanic 4,500 54,000
15 Casher 1 10+2 in bookkeeping 4,500 54,000
16 Cleaner and messenger 5 Unskilled 4,000 240,000
17 Maintenance officer 1 10+2 in General mechanic 4000 42,000
18 Driver 2 10 completed 4000 96,000
Total 29 200,500 3,456,000
Benefit (20%) 40100 691,200

Grand Total 240,600 4,147,200

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16.9.2. TRAINING REQUIREMENT

During the plant's commissioning, the supervisor, parking operators and IT officer would need to be
trained on technology and machine operation for about two weeks. The training would cost around
Birr 340,000.

16.10. Project implementation

The implementation of the project is expected to take 36 months. The main activities are the
processing of bank loans, the construction of the building, cleaning the area around the building,
the procurement of equipment, and the start of rendering services. The following is a timetable
for major activities:
Table 10: project Implementation schedule
SN Activities Date
1 Preparation Project Proposal September, 2022
2 Land acquirement processing January, 2022
3 Bank loan processing February, 2023
3 Site Development July 2023
4 Building construction work August, 2023-July 2025
5 Preparation for service September, 2026
6 Service execution February, 2026

16.11. Organizational Structure

16.11.1. Organization and management
The project's organizational structure is designed to include all necessary personnel under the
appropriate division. At the top of the organizational structure will be a manager who will be in
charge of overseeing the overall activity of the building. There are auxiliary units under the
general manager depending on the nature of the center and the amount of work to be performed.
Employees in each unit will be supervised by a department head who reports to the general
manager. The owners appoint the General Manager.

According to the organizational structure, the center organization has one general manager and
four major sections. The general manager is responsible for the marketing and finance
departments, human resources, parking, and building administration. The department of building

33 | P a g e
administration is divided into two parts: engineering and building maintenance and general
service. The human resources department is divided into two sections: guardant/secure and
cleaner. Sections of the marketing and finance departments are also organized under the
technical and maintenance manager. The following section goes over the duties and
responsibilities of each department.
A. The General Manager’s Duties and Responsibilities
He or she will plan, organize, direct, and control the building's overall activities.
He or she will develop programs and strategies to ensure the center's profitability.
He or she will use cutting-edge technology to improve the building's service delivery
and boost customer satisfaction.
He or she will plan, organize, direct, and control resources for the mixed-use
building.

B. Building Administration and maintenance Department

The Building Administration Department is in charge of the following activities:
Administer the project's non-human resources, which include effective management
of the building's various resources and the development of fraud and damage
prevention strategies.
Will deliver the right material or inventory to the center at the right time and at the
right price.
Will plan, organize, direct, and control the building's financial transactions.
Prepare the building's BOQ for maintenance.
Prepare the specifications for the building's Tender document.
Will prepare annual financial statements and condensed reports for the General
Manager and other relevant government bodies.
Follow the overall status of the business and provide building maintenance and repair
services.
Will be in charge of overall physical maintenance and related issues
Will ensure that power and backup are organized
Collaborates with general service to ensure that renters are well served
Prepare a monthly, quarterly, and annual report and submit it to the appropriate body.

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C. The marketing and finance Department

Will be in charge of the organization's overall marketing activities, which include

planning, organizing, directing, and controlling.
Will create marketing strategies for future multipurpose building construction
Will devise effective customer service strategies.
Carry out the promotion strategies.
Accountant and cashier to collect money from customers.
By developing modern financial control systems, will create a sound financial control
system.
Will prepare annual financial statements and condensed reports for the General Manager
and other relevant government bodies.
Follow the overall status of the business and provide building maintenance and repair
services
Prepare monthly, quarterly, and annual reports and submit them to the appropriate
bodies.
D. Human resource department
Control employee activity and manage human resources
Follow up on security concerns and educate renters
Identify vacant positions and report to the appropriate body.
It facilitates employee screening, selection, and hiring.

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 Figure 7:- Organizational structure
Owners

Supervisors General Manager

Building administration & Human resource Marketing& Finance Parking & IT

maintenance Department department Department Department

Civil Eng. Mechanical Electrical Finance Marketing

officer Technician Technician Officers Officer

Human Resource Parking Database System and Network

officer officer adm. administrator.

17. FINANCIAL ANALYSIS AND EVALUATION

Introduction

The cost outflow for the above proposals has been calculated over a 10-year project period and
includes both capital and recurring costs. The one-year construction period includes the capital
cost. The parking management proposals, as shown in Table, have been budgeted. Capital
investment costs include initial and replacement fixed investment, capital expenditure per
operation, and working capital. The project's total investment cost, including working capital, is
estimated to be Birr 487,432,476.99. The owner will contribute 50% of the financing in the form
of equity, with the remaining 50% funded by a bank loan.

36 | P a g e
 17.1. Fixed investment cost
The fixed investment cost includes the resources required for land acquisition/lease, building
structure and civil works, administrative costs, and machinery and equipment purchase,
importation, and installation. The project's fixed investment costs are estimated to be birr
487,432,476.99 total initial investments.

Table 11:- Land, Building & Construction

S.N Description of works Total Cost in birr

1 RC Building construction and Steel Construction 228,320,627.63

2 Site Development 10,000,000
3 Design and supervision 9,132,825.08
4 1st Year land lease 422,640
Total 238,743,267.63

Table 12: Building Machineries and Equipment’s

SN Description Measurement Qty Unit cost in Birr Total cost in Birr

1 Generator Unit 1 300,000.00 600,000.00

2 Carpentry tool box Set 1 250,000.00 250,000.00
3 Electrician tools box Set 1 18,500.00 108,500.00
4 Plumber tools kit Set 1 120,300.00 120,300.00
5 Fire extinguisher Unit 12 16,000.00 192,000.00
(Security Equipment)
6 Elevator Unit 1 750,000 7,050,000
7 Total 8,320,800 8,320,800

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 Table 13: Vehicle
SN Description UOM Qty Unit Cost in Fr. Total cost in Birr Remark

1 Mini-Bus Unit 1 8,000,000.00 8,000,000.00

Total 8,000,000.00

Table 14:-Smart parking Machinery and equipment

SN Description Measurement Qty Unit cost in Birr Total cost in Birr.

1 Overhead Radars/ LIDARs 560 52,000 29,120,000

2 Cost of Digital Signage Boards birr 2,400,000 2,400,000
3 Cost of CCTVs for surveillance birr 38 40,000 1,520,000
with support infra
4 Cost of Warden Devices birr 1,600,000
5 Cost of Mobile Applications birr 38 453,940.74 17,250,000
with all backend system
6 Website development No 1 12,000,000 12,000,000
7 No. of Parking Sensors, 4 No 4 1,037,500 4,150,000
wheelers
8 Sensors incl. installation, No 1 8000000 8000000
activation & calibration, spare
sensors
9 Operation cost incl.- internet No 1 615,000 615,000
connectivity, mobile app,
website management, analytics,
server etc.
10 Power Supply to various units No 1 72,000 72,000
including digital display boards
11 No. of Parking Sensors, 4 NO 4 50000 20000
wheelers
12 Generator Unit 1 3,000,000 3,000,000
13 Carpentry tool box Set 1 27,000 27,000
14 Electrician tools box Set 1 18,500 18,500
15 Plumber tools kit Set 1 24,300 24,300
16 Fire extinguisher (Security Unit 12 16,000 192,000
Equipment)
17 Pcx200 smart automatic vertical pc 6 388,540 2,331,240
rotator circulating
18 High quality customer car pc 6 414771 2,488,626

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 rotating turn table display
19 License plate recognition car pc 100,000 100,000
20 Price automated car parking for pc 1 150,000 150,000
car
21 Car parking space barriers pc 100 3,148 3148
22 High speed straight fold arm pc 300 7869 2.360,700
fence sensor barriers gate
23 RFID barcode ticket vehicle set 25 500,000 12,500,000
access control
24 Black and yellow Parking lot pc 300 400 120,000
management metal solar
25 Lora sensor geomagnetic pc 300 2400 720,000
detector parking space
26 Automated smart car parking set 25 183,613 4590,337
intelligence
27 Wholesale car parking lift car pc 28 3,147,714 88,135,992
lift for garage car parking
28 Elevator Unit 50TH 16000 8,960,000
29 Miscellaneous No 200000 200000
20 Total 200,308,143

These figures are based on the average unit costs for various components. If the project selects
different components or manufacturers, the costs may vary.
Table 15: Office Equipment’s
SN Description Measurement Qty Unit cost in birr Total cost in Birr

1 Managerial tables Unit 1 20,600.00 20,600.00

2 Managerial chairs Unit 1 28,500.00 28,500.00
3 Office table with chair Unit 7 18,000.00 18,000.00
4 Secretarial table with chairs Unit 1 8,500.00 8,500.00
5 Computer with chairs Unit 1 40,000.00 40,000.00
6 Shelf Unit 12,500.00 12,500.00
7 Filing cabinets Unit 1 2,500.00 2,500.00
8 Guest chairs Unit 1 4900 4900
9 Fax & Telephone machine Unit 1 1,300.00 1,300.00
10 Carpet and Curtain LS 1 40,000.00
Total 176,800.00

+9++3

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 A. Working Capital
Table 16:-Operating Expenses
SN List of Items Annual cost in birr

1 Land Lease and legal fee 426,000.00

2 Stationery supplies 75,000.00
3 Promotional Cost 200,000.00
4 Property Insurance 200,009.00
5 Cleaning Supplies 24,000.00
6 Uniforms 24,000.00
7 Water consumption 5,000.00
8 Electric consumption 130,000.00
9 Fuel 84,000.00
11 Telephone & fax 5,000.00
12 Repair expense 72,018.00
13 Miscellaneous costs 40,000.00
Total 1,059,027.00

Table 17: Pre-service Expenses

SN Description Cost in birr

1 Project proposal 200,000.00

2 Licensing fee and others
Total 200,000.00

Table 18: Summary of Total initial investment cost

SN Description Cost in Birr

1 Land acquisition, RC Building and steel construction 228,320,627.63

2 office machines & Equipment 176,800.00
3 Vehicle 8,000,000
4 Office Equipment 176,800
5 Plant/smart Parking Machinery and equipment 200,308,143
Total fixed investment cost 436,982,370.63
5 Salary expense 4,147,200
6 Operation Expense 1,059,027
7 Pre service Expense 200,000
8 Total Working capital 731,836

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 Sub total 6,138,063
10 Contingency (10%) 44,312,043.36
11 Total initial investment capital 487,432,476.99

Production Costs
The total cost of production at full capacity is estimated to be Birr 51,926,910 thousand, as
shown in table 19.
Table19: Production Cost
No Items Cost
1 Utilities 5,880,000
2 Wages and Salaries 4,147,200
3 Spares and Maintenance 2,921,073
4 Plantation Costs 4,560,899.80
5 Depreciation 34,417,737.68
Total Production Cost 51,926,910

18. FINANCIAL ANALYSIS

This mixed-use project's financial analysis is based on the data presented in previous chapters
and the following assumptions: -

Construction period 3 years

Source of finance 50% equity and 50% loan
Bank interest 14%
Discount cash flow 18%
Accounts receivable 30 days
Raw Material (nonperishable) 120 days
Tax holidays 2 years
Cash in hand 5 days
Accounts payable 30 days
Spare Parts, Repair & Maintenance 1% of fixed investment

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18.1. Repair and maintenance cost

The plant's annual repair and maintenance costs are estimated using the rates listed below.
Table 20: Spar parts, Repair and Maintenance Cost
Item Rate

Machinery and equipment 5% of the total cost or Book value

Building and civil works 1% of the total cost or Book value

Utilities 2% of the total cost or Book value

Table 21: Depreciation and Amortization

Item Rate
Building 5%
Machinery and equipment 10%

Office furniture 10%

Vehicles 20%
Pre-production (amortization) 20%

18.2. Revenue Generation

By providing regular parking for visitors, shoppers, customers, and the College, this project aims
to solve or reduce the problem of on and off-street parking in Arada subcity. The proposed park
has a maximum capacity of 560 cars and will be used in morning and afternoon shifts, resulting
in a maximum of 420 cars occupying the park per day. 15 of them will be used for staff vehicles,
while the remaining will be used for non-staff vehicles. The estimated annual revenues were
expected to generate throughout the project period. To account for inflation, the revenue stream
for the project period has been projected by increasing the parking fee by 10% per year.

Maintenance costs are estimated to be 3% of construction costs after the three year of project
operation, assuming a 5% inflation rate every five years of project operational life and an annual
net profit throughout the project's operational life. As a result, annual net profit after tax rises
from Birr 150,735,763 at the start of the project to Birr 393,014,672 in the final year of

42 | P a g e
operation, according to the projected profit and loss statement. The specifics are contained in
Annex1.

18.3. Discounted Payback Period

The payback period, also known as the pay-off period, is defined as the time required recovering
the initial investment outlay through accumulated net cash flows from the project. As a result,
the project's initial investment is expected to be fully recovered within 3 years and 5 months
based on the projected cash flow.

18.4. Cash flow

The anticipated project's projected cash flow demonstrates that the project will generate positive
net cash flows throughout the operation years. The total cash flow generated by the project by
the end of the first operational year will be Birr 15,655,023. The final cost of the project will be
Birr 18,804,016. Annex5 contains more information.

18.5. Benefit cost ratio

The BCR is defined as the ratio of the total discounted benefits of the project to the total
discounted investment and operating costs. The BCR is 4 and positive, the project is viable.

10.6 Break-even Analysis

The break-even analysis establishes a link between operating expenses and revenue. It denotes
the point at which costs and revenues are in balance. To that end, the break-even point for
capacity utilization and the estimated sales value based on income statement projections are
computed as follows.

Break Even Sales Value = Fixed Cost + Financial Cost = Birr 38.48 million
Variable Margin ratio (%)

Break Even Capacity utilization = Break even Sales Value X 100 = 63.38 %
Sales revenue

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18.6. Pay-back Period
The pay-back period, also known as the pay-off period, is defined as the time required
recovering the initial investment outlay through the project's accumulated net cash flows. As a
result, based on the projected cash flow, the project's initial investment is expected to be fully
recovered within 3 years and 4 months.
18.7. Internal Rate of Return
The internal rate of return (IRR) is a measure of an investment's efficiency or quality. A project
is a good investment if its IRR is greater than the rate of return on alternative investments or
putting the money in a bank account. As a result, the project's IRR after tax is calculated to be
46%, indicating that the project is more viable than 14%.

18.8. Net present value

The total present (discounted) value of a time series of cash flows is defined as net present value
(NPV). NPV aggregates cash flows that occur over different time periods during the life of a
project into a single measuring unit, namely present value. It is a common method for calculating
the time value of money for long-term projects. The net present value (NPV) measures how
much value an investment or project ads to the capital invested. In general, a project is accepted
if the NPV is positive. As a result, at a 14% discount rate, the net present value of the project is
Birr 474,274,088.16, which is acceptable. Appendix 5 contains more information on discounted
cash flow.

19. ECONOMIC BENEFITS ANALYSIS

Some economic indicators, such as a Discounted Payback Period, simple rate of return, net
present value, internal rate of return, Benefit cost ratio, Break-even Analysis, and Pay-back
Period, have been adopted for the purpose of evaluating project feasibility. Furthermore, the
project has the potential to generate 168.434 million Birr in tax revenue over the next ten years.

19. SOCIAL BENEFIT ANALYSIS

A good smart parking system also has several social benefits. Some of the direct and indirect
social benefits include increased personal safety at night, reduced accidents and car damage,
reduced theft, increased pedestrian safety, accessible parking for all users including disabled and
parents with children, increased pricing transparency among citizens and parking managers thus

44 | P a g e
avoiding conflicts, reduced anxiety among drivers thus reducing stress levels and unnecessary
vehicle speeding, and so on. Local businesses benefit from easier parking, which leads to
increased customer footfall.
20. ENVIRONMENTAL IMPACT ASSESSMENT
Smart parking can significantly reduce air and noise pollution levels by promoting sustainable
urban mobility, saving time and energy, alleviating traffic congestion, and lowering air and noise
pollution. It employs sensors to indicate the availability of a parking lot, eliminating the need for
drivers to waste time looking for available space. Smart parking can reduce congestion and
emissions by quickly directing drivers to open spaces. Smart parking systems accomplish this by
collecting data in real time and relaying it to drivers via a mobile app. The apps also include an
automated payment method that allows for space reservations, reducing the amount of time spent
on the road and polluting the environment.
By collecting parking data, smart parking systems provide city administrations with critical data
to assist them in creating cleaner environments. Such benefits, however, are unlikely to occur
with outdated infrastructure and disconnected systems that cannot communicate with one
another. By leveraging, smart parking easily solves this problem. Furthermore, smart parking can
significantly reduce parking lot congestion and overuse by implementing dynamic pricing based
on available space, thereby reducing air and noise pollution.
21. RISKS AND CHALLENGES

Timing:
Because unforeseen events such as bad weather, entitlement delays, design and construction
modifications, and contractor delays/errors are difficult to predict, timing will be a major
challenge for the development team. The ability of the developer to complete the project on time
determines construction costs, project stability, returns, and risk. Financial incentives will be
built into the developer's contract to encourage on-time or early delivery.

Market Risks
While the Addis Ababa apartment market is currently favorable, events such as the financial
crisis are difficult to predict. As a result, events had a direct impact on the economy and

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consumer spending, which will have an impact on the real estate market and potential cash
flows.

Interest Rate Risks

Mortgage interest rates in the lending market are extremely low, and this, combined with the
favorable economy. Interest rates for construction loans will remain favorable in the short term;
however, it is difficult to predict interest rate trends three years from now, and there is always a
risk of interest rates rising before the permanent loan is closed due to an unstable economy,
financial, and political environment.

Construction Cost Risk

The cost of construction accounts for the majority of the developer's initial expenses. Increases in
construction costs will have a significant impact on the development's returns. Construction costs
are expected to rise as a result of recent price increases for oil and building materials.
Construction costs are correlated with oil prices because oil is the primary source of energy used
to produce and transport cement, brick, steel, and other building materials.

22. CONCLUSIONS AND RECOMMENDATIONS

23.1. Conclusion

The primary goal of this proposed feasibility study is to provide investment information and an
overview of the project to the entrepreneur. Because the proposed feasibility may serve as the
foundation for a significant investment decision, the document covers a wide range of topics,
including Concept Development, land planning, Start-up, Production, Marketing, Finance, and
Business Management. The feasibility is determined using information obtained from secondary
data sources as well as discussions with businesspeople. Because financial models
forecast/project future periods, actual results are likely to differ due to events and circumstances
that do not occur as frequently as expected.
While the exercise was performed with care and attention, no liability can be inferred for any
inaccuracies or omissions reported in the results. To fully understand the impact of key
assumptions on the range of values determined, our report must be read in its entirety with the
financial model.

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The project is easily accessible and has the entire necessary infrastructure, including a road,
telephone, water, and electricity. The proposed project clearly identifies all of the required
equipment, inputs, company management, and manpower. The project's highest authority will be
in the hands of the owner. He will be in charge of the overall operations of the proposed project.
According to demand projections, there is a high demand in the city for commercial services
such as smart parking, office rent, and apartment and likes production. As a result, the planned
project is designed to provide high-quality products in the area.
The proposed project possesses wide range of economic and social benefits such as increasing
the level of investment, tax revenue and employment creation. It will have also environmental
concerns to protect by utilizing environmental friendly raw materials. Generally, the project is
technically feasible, financially and commercially viable as well as socially and economically
acceptable. Hence the project is worth implementing.
It will also protect the environment by utilizing ecofriendly raw materials. The project is technica
lly feasible, financially and commercially viable, and generally socially and economically accept
able. As a result, carrying out the project is worthwhile.

23.2. Recommendations

The project is highly sensitive to decreases in sales revenue but relatively less sensitive to
increases in raw material and investment costs, according to the financial sensitivity analysis. As
a result, the company should pay close attention to the potential causes of sales decline. Various
mechanisms for increasing sales should be chosen and implemented in this case. Furthermore,
the company's costs should be reduced, which reduces profitability. To achieve the projected
market share, the project must employ modern promotional techniques. To accomplish this, it
must develop an effective strategy for carrying out the plan.

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 ANNEXES

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 Annex 1. Sales Revenue
Description Project year
1 2 3 4 5 6 7 8 9 10
Basement to 40,881,600 44,969,760 49,466,736 54,413,409 59,854,750 65,772,226 72,424,247 79,666,673 87,633,340 96,396,674
Ground floor
Rent for Parking
Number of 34 34 34 34 34 34 34 34 34 34
Vehicle
unit price 601,200 661320 727,452 800,197.20 880,216.92 967,238.62 1,065,062.47 1,171,568.72 1288725.59 1,417,598.15

1th to 5th floor 220,320,000 242,352,000 266,587,200 293,245,920 322,570,512 354,827,563 390,310,320 429,341,351 472,275,487 519,503,036
Rent for Parking
Number of 34 34 34 34 34 34 34 34 34 34
Vehicle
unit price 1,296,000 1,425,600 1,568,160 1,724,976 1,897,473.60 2,087,220.96 2,295,943.06 2,525,537.36 2,778,091.10 3,055,900.21

6th floor to 10th 1,912,500 2,103,750 2,314,125 2,545,538 2,800,091 3,080,100 3,388,110 3,726,921 4,099,614 4,509,575
floor Rent for
shop , office &
other
Building Size 510 510 510 510 510 510 510 510 510 510

unit price 750 825 907.5 998.25 1098.075 1207.8825 1328.67075 1461.537825 1607.691608 1768.460768

Total Sale 263,114,100 289,425,510 318,368,061 350,204,867 385,225,353 423,679,889 466,122,677 512,734,945 564,008,441 620,409,285

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 Annex 2. Operating cost
Operating years of the project
Description 1 2 3 4 5 6 7 8 9 10
A. Direct cost
Raw Material 1,059,027 0 0 0 0 0 0 0 0
Cost 0
Sub-total
Total Direct cost
B. Indirect cost

Wages and Salary 4,147,200 4,561,920 5,018,112 5,519,923 6,071,916 6679107 7347018 8081720 8889892 9778881

Repair and 2,921,073 2,921,073 2,921,073 2,921,073 2,921,073 2,921,073 2,921,073 2,921,073 2,921,073 2,921,073
Maintenance
Property 42,750 42,750 42,750 42,750 42,750 42,750 42,750 42,750 42,750 42,750
Insurance
Utility 5,880,000 5,880,000 5,880,000 5,880,000 5,880,000 5,880,000 5,880,000 5,880,000 5,880,000 5,880,000

Land lease 426,000 110,444 110,444 110,444 110,444 110,444 110,444 110,444 110,444 110,444

Advertising and 2,000,000.00 1,000,000 500,000 0 0 0 0 0 0 0

Promotion
Miscellaneous 40,000.00 40,001.00 40,002.00 40,003.00 44,003.30 53,243.99 64,425.23 70,867.75
Expense 48,403.63 58,568.39

Total operating 15,655,023 14,655,188 14,112,381 14,514,193 15,070,186 15,681,778 16,354,529 17,094,555 17,908,584 18,804,016
cost

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Annex.3 income statement

Operating years of the project

Description 1 2 3 4 5 6 7 8 9 10
Sales 263,114,100 289,425,510 318,368,061 350,204,867 385,225,353 423,679,889 466,122,677 512,734,945 564,008,441 620,409,285
Revenue
Less: 13,657,023 13,656,188 14,062,381 14,514,193 15,070,186 15,681,778 16,354,529 17,094,555 17,908,584 18,804,016
Operating
cost
Income 249,457,077 275,769,322 304,305,680 335,690,674 370,155,167 407,998,111 449,768,148 495,640,390 546,099,857 601,605,269
before
Depreciation
Less: interest 34,120,273 32,355,793 30,344,286 28,051,167 25,437,012 22,456,876 19,059,520 15,186,534 10,771,331 5,737,999

Income 215,336,804 243,413,529 273,961,394 307,639,507 344,718,155 385,541,235 430,708,628 480,453,856 535,328,526 595,867,270
before
Depreciation
Less: 0 0 0 34,417,738 34,417,738 34,417,738 34,417,738 34,417,738 34,417,738 34,417,738
Depreciation
Profit Before 215,336,804 243,413,529 273,961,394 273,221,769 310,300,417 351,123,497 396,290,890 446,036,118 500,910,788 561,449,532
Tax
Less: Tax 64,601,041 73,024,059 82,188,418 81,966,531 93,090,125 105,337,049 118,887,267 133,810,835 150,273,236 168,434,860
(30%)
Net Profit 150,735,763 170,389,470 191,772,976 191,255,238 217,210,292 245,786,448 277,403,623 312,225,283 350,637,552 393,014,672

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Annex. 4 loan disturbance

Installment Periods (in years )

1 2 3 4 5 6 7 8 9 10
Item
Loan disbursed
243,716,239 231,674,078 217,833,516 201,925,977 183,642,774 162,629,120 138,477,244 110,718,478 78,814,162 42,145,190

Principal amount
12,042,161 13,840,562 15,907,539 18,283,203 21,013,654 24,151,876 27,758,766 31,904,316 36,668,972 42,145,190

Interest Amount
(14%) 366,981 31,568,580 29,501,603 27,125,939 24,395,488 21,257,266 17,650,376 13,504,826 8,740,170 3,263,952

Outstanding
Balance 231,674,078 217,833,516 201,925,977 183,642,774 162,629,120 138,477,244 110,718,478 78,814,162 42,145,190 0

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 Annex 5. discounted cash flow
Investment
Year
Project Life years
Description
0 1 2 3 4 5 6 7 8 9 10
INFLOW
Net sales 0 263,114,100 289,425,510 318,368,061 350,204,867 385,225,353 423,679,889 466,122,677 512,734,945 564,008,441 620,409,285
revenue
NET 0 263,114,100 289,425,510 318,368,061 350,204,867 385,225,353 423,679,889 466,122,677 512,734,945 564,008,441 620,409,285
INFLOWS
OUTFLOWS
Investment 0 0 0 0 0 0 0 0 0 0
487,432,476.99
cost
Operating 15,655,023 14,655,188 14,112,381 14,514,193 15,070,186 15,681,778 16,354,529 17,094,555 17,908,584 18,804,016
0
cost
Income tax 0 64,601,041 73,024,059 82,188,418 81,966,531 93,090,125 105,337,049 118,887,267 133,810,835 150,273,236 168,434,860

Net outflows 80,256,064 87,679,247 96,300,799 96,480,724 108,160,311 121,018,827 135,241,796 150,905,390 168,181,820 187,238,876
487,432,476.99

NET CASH (-487,432,476.99)

182,858,036 201,746,263 222,067,262 253,724,143 277,065,042 302,661,062 330,880,881 361,829,555 395,826,621 433,170,409
FLOW
474,274,088.14
NET PRESENT VALUE (NPV)
INTERNAL RATE OF RETURN (IRR) 46%
DISCOUNTED PAYBACK PERIOD (DPBP) 3years and 5 Month

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