Feasibility Study for Manufacturing Facility for LV Cable in Abu Dhabi

Technical & Financial Proposal

April, 2021

We Work Hard to Stay First

Mr. Ihab Othman Talal Abu-Ghazaleh & Co. International
Project Manager P.O. Box 4295, Abu Dhabi, United Arab
Power Tech. Emirates
Tel: 00971 2 6724425
United Arab Emirates – Abu Dhabi
Fax: 00971 2 6765003

7th April, 2021

Subject: Feasibility Study for Establishing LV Cable Factory.

Dear Mr. Ihab,

It is our pleasure to present our Technical & Financial proposal for conducting a Feasibility Study for Establishing a Manufacturing Facility for lv
Cable and All Related Accessories in Abu Dhabi - UAE. We fully recognize the significant importance and potential value that investor will gain in its
future endeavor after implementing this project.

This proposal describes the service that we would provide to you along with associated deliverable for each work stream in particular.

We look forward to working with you and we are highly confident that our proposal covers all your requirements and provide a customized
solution for you.

Should you have any clarification please don’t hesitate to contact us at any time.

Best Regards,

Maher Khader

Executive Director – Consultancy

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 Table of Contents

Addressing your Need

Who We Are
Why We Add Value

Scope of Work
Our Approach and Methodology

Proposal Assumptions

Project Time Frame

Our Team
Our Professional Fees

3
Addressing Your Need
The investors has realized the need for establishing a Manufacturing Factory for lv Cable and All Related
Accessories (the Factory) in the Industrial Area of Abu Dhabi - UAE. The Factory will manufacture all kind of low
voltage power distribution cable (4core aluminum cable with all different cross section from 50mm-400mm) and
power distribution cable accessories (joints, gland and lugs). The Investors are looking for a professional
consulting firm with relevant sector and technical experience locally and regionally to provide consultancy services
in order to conduct a feasibility study for establishing the project.

TAG-Consult is delighted to submit a proposal for the provision of above mentioned services for investor. In this
document, we describe why we believe we are ideally placed to provide the support you are seeking and how we
can deliver real value to your ambitions.

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 Table of Contents
Addressing your Need
Who We Are
Why We Add Value

Scope of Work

Our Approach and Methodology

Proposal Assumptions

Project Time Frame

Our Team

Our Professional Fees

5
Who We Are
The Talal Abu-Ghazaleh Organization (TAG-Org) is the largest Arab group of professional service firms. TAG-Org Founded in 1972 and employs
over 2000 professionals and operates out of its 100 offices in the Middle East and North Africa, India, Turkey, Cyprus, Pakistan, and China. It has
representative offices in Europe and North America and non-exclusive strategic alliance agreements with various networks and individual firms,
enabling it to provide a set of integrated and specially tailored solutions for each client.

Talal Abu-Ghazaleh Organization

(TAG-Org)

Talal Abu-Ghazaleh & Talal Abu-Ghazaleh & Abu-Ghazaleh Talal Abu-Ghazaleh

Co. International Co. Consulting Intellectual Property Legal

Talal Abu-Ghazaleh Talal Abu-Ghazaleh IT Talal Abu-Ghazaleh & Talal Abu-Ghazaleh

Valuation International Translation Project

Talal Abu-Ghazaleh Talal Abu-Ghazaleh Talal Abu-Ghazaleh Talal Abu-Ghazaleh Real

Capital Services Recruitment & HR College Estate

Talal Abu-Ghazaleh
Societies

6
Who We Are
Talal Abu-Ghazaleh & Co. Consulting (TAGCON) was established in 1972. Ever since, TAGCON has become one of the most leading professional
consulting firms in the Arab world. TAGCON is dedicated to providing the best quality of consulting services
With its multi-disciplinary professionals working across the Middle East and many other parts of the world to provide high-quality services for
both private and public sectors.

Talal Abu-Ghazaleh Organization

(TAG-Org)

Talal Abu-Ghazaleh & Talal Abu-Ghazaleh & Abu-Ghazaleh Talal Abu-Ghazaleh

Co. International Co. Consulting Intellectual Property Legal

Talal Abu-Ghazaleh Talal Abu-Ghazaleh IT Talal Abu-Ghazaleh & Talal Abu-Ghazaleh

Valuation International Translation Project

Talal Abu-Ghazaleh Talal Abu-Ghazaleh Talal Abu-Ghazaleh Talal Abu-Ghazaleh Real

Capital Services Recruitment & HR College Estate

Talal Abu-Ghazaleh
Societies

7
 Who We Are
Our Service
Talal Abu-Ghazaleh & Co.
Consulting

Business and Investment Human Resources and Financial Consulting Quality Management Systems
Analysis Restructuring

 Strategic Business Plans  Organization Design  Financial and Accounting  Integrated Management Systems; Quality,
 Economic Feasibility Studies  Human Resources Polices and Polices and Procedures Health, Safety, and Environmental Management
 Market Studies and Procedures  Reviewing and Improving Systems (QHSEMS)
Research  Performance Management Accounting Operations.  Quality Management System (ISO 9001:2008)
 Social and Economic Studies  Job Evaluation and Grading  Chart of Account Design  Environmental Management System (ISO
 HR Function Assessment (Due  Financial and Operational 14001:2004)
Diligence) Due Diligence System.  Occupational Health and Safety Management
 Business Process Improvement.  Costing Systems. System (OHSAS 18001:2007)
 Total Quality Management (TQM)
 Six Sigma
 Information Security Management Systems (ISO
27001:2005)
 CE Marking
 EurepGap (Agricultural Products)
 Food and Safety Management Systems (ISO
22000:2005)
 Food Management System (HACCP) – Hazard
Analysis and Critical Control Points
 Waste Minimization Studies

8
 Who We Are
Our Local and International Presence

North Africa Levant Region GCC Region

Egypt Morocco Jordan (Head Office) UAE Abu
Sudan Palestine Iraq Dhbai, UAE
Algeria Lebanon Saudi Arabia Bahrain
Tunisia Syria Qatar Yemen
Kuwait

North America Asia

USA (Representative India
Office) Pakistan
Canada (Representative China (Representative
Office) Office)

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 Table of Contents
Addressing your Need
Who We Are
Why We Add Value

Scope of Work

Our Approach and Methodology

Proposal Assumptions

Project Time Frame

Our Team

Our Professional Fees

Our Similar and Related Experiences

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 Why We Add Value
The largest Professional Firm

• Operates more than 107

offices in the Middle East,
North Africa, Asia, Europe,
and North America.

Our Approach Experience of Our Team

• Customized and • Dedicated and certified

comprehensive approach The investor professionals with advance
which provides tailor made academic degree.
solutions . Values • Multi-national and bilingual
• Efficient project management professionals with diversifies
and continuous quality expertise with local, regional
control. and international companies
from different industries

Quality of Our Work Deliverables

• High Quality deliverables that

exactly address client needs and
expectations

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 Table of Contents
Addressing your Need
Who We Are
Why We Add Value

Scope of Work

Our Approach and Methodology

Proposal Assumptions

Project Time Frame

Our Team

Our Professional Fees

12
 Scope of Work
The scope of work for this assignment could be summarized as follows:

• Country Macro Analysis

Step 1

• Market Analysis
Step 2

• Technical and Operational Requirements

Step 3

• Financial and Investment

Step 4

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 Scope of Work •Country Macro Analysis
Step 1

•Market Analysis
Country Macro Analysis Step 2
Step 1
•Technical and Operational Requirements
Step 3

•Financial and Investment

 Conduct a macro economic analysis including: GDP, external Step 4

trade as well as the main productive sectors of UAE

economy;

 Overview on the investment climate in UAE with main focus

on the Foreign Direct Investment (FDI) in industrial sector;

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 Scope of Work •Country Macro Analysis
Step 1

•Market Analysis
Market Analysis Step 2
Step 2
•Technical and Operational Requirements
Step 3
 Overview on Infrastructure/ Construction & Building market in the UAE.
•Financial and Investment
Step 4
 Overview on the manufacturing of power cable industry in the UAE

focusing more on Abu Dhabi region.

 An overview on aluminum core cables market in UAE.

 Overall description of the Project.

 Demand and Supply analysis

 Competition Analysis (locally produced and imported)

 Estimate of market share of the proposed factory.

 Estimate of market prices.

 SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats).

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 Scope of Work •Country Macro Analysis
Step 1

•Market Analysis
Technical and Operational Requirements Step 2
Step 3
•Technical and Operational Requirements
 Estimate construction, Machines and Equipments Costs. (To be provided by the Client) Step 3

 Project site plan and layout. (To be provided by the Client) •Financial and Investment
Step 4
 Vehicles and their costs.
 Estimate Furniture and Office Equipment Costs. (To be provided by the Client)
 Estimate the Human Resources Expenses. (No. of HR & salaries required has to be
provided by the Client)

 Estimate the Administrative Costs.

 Estimate the Insurance Expenses.
 Estimate the Maintenance Expenses.
 Estimate the Depreciation Expenses.
 Estimating other related Expenditures.
 Estimate the Pre-operation expenses.
 Estimate the revenues.
 Proposed the expected implementation schedule of the project. (To be provided
by the Client)

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 Scope of Work •Country Macro Analysis
Step 1

•Market Analysis
Financial and Investment Step 2
Step 4
•Technical and Operational Requirements
Step 3
 Identify the required total investment costs for the project based on
•Financial and Investment
cost estimations raised in the technical study. Step 4

 Develop the project’s financing structure based on the available

sources of funds.
 Develop the following financial statements for the first 10 years of
operations :
 Project profit and loss statement,
 Cash flow statement.
 Pro-forma balance sheet.

 Calculate the relevant financial ratios internal rate of return, and

profitability measures i.e. Net Present Value and Payback period.
 Finalize the assessment of the financial feasibility section.

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 Table of Contents
Addressing your Need
Who We Are
Why We Add Value

Scope of Work

Our Approach and Methodology

Proposal Assumptions

Project Time Frame

Our Team

Our Professional Fees

18
 Our Approach and Methodology
Phase 1 Phase 2 Phase 3 Phase 4

Data Analysis and

Project Mobilization Data Collection Reporting
Tabulation

Design Data Collection Design Data analysis

Kick off Meeting Issuing Draft Report
Tool modules

Project Planning and

Communication Plan and Conduct Survey Data Entry Receive Client Comments

Data Sorting and

Assign Project Team Perform Data Analysis Issuing Final Report
Classification

Quality Assurance / Interactive Communication

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 Our Approach and Methodology
Phase 1

Objectives: Ensure that the (The investor) and AGCON project teams have a common understanding
Project Mobilization
of the project objectives and deliverables; and agree on a Project Plan.

Key Tasks Output / Deliverables

 Conduct Kick-off meeting to introduce AGCON team of consultants  Detailed Project Plan.
to the (The investor) management.  Project Charter.
 Mobilize the team and assign responsibilities.
 Establish steering committee and assign contact person from (The
investor) and AGCON. (The investor Role
 Develop a clear understanding of (The investor) requirements and  Coordinate and schedule meetings as needed.
expectations towards the outcomes of the assignment.  Provide necessary information and data as
 Develop and agree on project plan and confirm scope of work, required

Deliverables, and deadlines.

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 Our Approach and Methodology
Phase 2

Objectives: Design the appropriate data collection tools and mechanism for timely and accurate data and

Data Collection information from both primary and secondary sources. Also, determining the survey sample and targeted
groups.

Key Tasks Key Tasks

 Determine the secondary sources that will be used for collecting  Sort all collected data and make a random check by research
required data and information, such as Ministry of Economy, supervisor to ensure quality and accuracy of collected data
Municipality, Chamber of Commerce and Industry and any other then make it ready for analysis and investigation.
trusted online directories.
Output / Deliverables
 Design the data collection tools that will be used in collecting
market and other related data.  Data Collection Tools i.e. questionnaire, interview guides,
etc.

(The investor) Role

 Coordinate and schedule meetings as needed.

 Provide necessary information and data as required.
 Provide necessary clarification, when required.

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 Our Approach and Methodology
Phase 3

Objectives: Perform analysis for all collected data through both the primary and secondary research.
Data Analysis and
Tabulation

Key Tasks Output / Deliverables

 Combine all data received from both primary and secondary  Data analysis tables and charts.
researches.
 Design the data entry model using familiar software i.e. Excel, SPSS,
etc. and identify the key outputs and indicators
 Conduct a quality check on data entry sheet and any entry errors The investor Role
detected will be immediately corrected before performing data  Coordinate and schedule meetings as needed.
running and extracting results.
 Start doing the required tabulation with data analysis results
according to study objectives and scope of work.

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 Our Approach and Methodology
Phase 4

Objectives: Issuing the draft feasibility study report, receiving and discussing (The investor) comments,
Reporting and issuing the final version of the feasibility study report.

Key Tasks Output / Deliverables

 Issuing the draft feasibility study report which combines Market,  Draft Feasibility Study Report
Technical and Financial parts.  Final Feasibility Study Report.
 Receive the comments and feedback from (The investor)
representatives regarding the draft report.
 Discuss and agree on deliverables amendments with (The investor) The investor Role
representatives.  Coordinate and schedule meetings as needed.
 Insert all amendment in the draft report according to the  Provide comments and feedback regarding the
management feedback. draft reports.

 Provide the feasibility study report in final format.  Signing off the final version of the feasibility
study report.

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 Table of Contents
Addressing your Need
Who We Are
Why We Adding Value

Scope of Work

Our Approach and Methodology

Proposal Assumptions

Project Time Frame

Our Team

Our Professional Fees

24
 Proposal Assumptions
Below are the main assumptions underlying this project. These assumptions are considered an integral part of this proposal:

 (The investor) will appoint one or more contact person(s), with whom AGCON will directly deal throughout the assignment and who will
coordinate some administrative and logistics work to facilitate the assignment flow. The investor Team will work in partnership with
AGCON team on this improvement exercise and will support the AGCON team throughout the assignment.
 (The investor)’s management will be available for discussion and meetings, and all data and documentation required will be provided to
AGCON. It is the responsibility of (The investor) to provide us with data and ensure key staff are available to provide input.
 AGCON reserves the right to consult with (The investor) for any further clarifications or concerns that may arise during the work on the
project.
 The work program as described in this proposal will require inputs from (The investor). AGCON will coordinate with the assigned contact
person(s) to arrange for relevant meetings. If such inputs are not available on the planned time, this will affect the project’s final delivery
date. AGCON will keep (The investor) informed of such potential delays.
 We will not be responsible for the reliability, and completeness of the provided information by participants.
 Our scope of services for this assignment as defined in the current proposal is limited to our defined scope and approach, and will not extend
to other work unless otherwise agreed.
 Several versions of the work-products that will be delivered to (The investor) throughout the project duration. (The investor)’s
representative(s) may be required to sign-off each deliverable after review and comments.
 The deliverables will be in English language. An additional fee will be applyed for translation in case the client wishes to obtain the study in a
language other than the previously mentioned.
 The copyright and all other intellectual property rights in all deliverables which are not identified as client materials and any other materials
(hard or soft copies) developed during this project are owned by AGCON. (The investor) doesn’t have the right to disclose deliverables to any
third party and should be used for internal purposes only.

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 Proposal Assumptions
 Feedbacks, comments and points of discussion raised by (The investor) should be submitted in writing and during one week from
deliverables submission date. Any oral comments will not be taking into consideration.
 This proposal is valid for a period of sixty (60) days

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 Table of Contents
Addressing your Need
Who We Are
Why We Adding Value

Scope of Work

Our Approach and Methodology

Proposal Assumptions

Project Time Frame

Our Team
Our Professional Fees

27
 Project Time frame
Based on our experience in executing similar projects in term of scope of work, and our approach and methodology mentioned
before in this proposal, we estimate that that the project will be delivered during 4 working weeks in addition to one working week
for handling project management issues and organize staff at work place. This period is not included any official holidays. The
following table shows the project time frame.

Weeks
Description
Week 1 Week 2 Week 3 Week 4
Step:1 Project Mobilization
Step 2: Market Study
Data Collection
Data Analysis
Draft Market Report
Step 3: Technical Study
Data Collection
Data Analysis
Draft technical Report
Step 4: Financial Study
Data Collection
Data Analysis
Draft Financial Report
Step 4: Reporting
Issuing Draft Feasibility report
Receive Client Comments
Issuing Final Feasibility report

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 Table of Contents
Addressing your Need
Who We Are
Why We Adding Value

Scope of Work

Our Approach and Methodology

Proposal Assumptions

Project Time Frame

Our Team

Our Professional Fees

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 Our Team
Team Structure and Relations

(The investor)Counter Part Engagement Executive Director

(The investor) Engagement Manager

Project Manager

AGCON Team

Project Team - AGCON

(The investor) Team

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 Table of Contents
Addressing your Need
Who We Are
Why We Adding Value

Scope of Work

Our Approach and Methodology

Proposal Assumptions

Project Time Frame

Our Team

Our Professional Fees

34
 Our Professional Fees
Our fees estimate is based on our assumptions and scope mentioned previously in this proposal as well as our experience in
conducting similar projects in local and regional markets

Our professional fees to perform this assignment will be AED 39,500 inclusive of other expenses, i.e. staff travelling, transportation,
accommodation, etc. 5% VAT Excluded from the above mentioned fees and it will be added to the invoices.

Our payment schedule will be as follows:

50% advance payment upon signing the Contract.

50% upon submitting the draft report.

The Investor Talal Abu-Ghazaleh & Co. International

Name: Mr. Ihab Othman Name: Maher Khader

Signature: Signature:

Title: Project Manager Title: Executive Director

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Thank you for your
Trust in Our
Company