TABLE OF CONTENTS

CONTENTS
PAGE

1. EXECUTIVE SUMMARY----------------------------------------------------

2. INTRODUCTION-------------------------------------------------------------

3. ANALYSIS OF PROJECT AREA--------------------------------------------

4. BACK GROUND OF PROMOTER----------------------------------------

5. PROJECT RATIONALE AND

OBJECTIVES---------------6

6. MARKET ENVIRONMENTS
------------------------------7

7. ORGANAZATION AND
MANAGEMENT----------------10

8. PROJECT LOCATION AND LAND

REQUIREMENT----------10

9. PROJECT COST ESTIMATION

-------------------------10

10. BEGINNING BALANCE SHEET

--------------------------11 11. DEPRECIATION

------------------------------------------14

12. ESTIMATE PROJECT

REVENUE-------------------------15

13. PROFIT LOSS STATEMENT

----------------------------15

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 14. ENVIRONMENTAL AND SOCIAL
ASPECT------------16

1. EXECUTIVE SUMMARY

In light of the current enabling policy environment formulated by FDRE for

private sector development both at national and regional level, create a
favorable condition for many foreign and domestic investors to invest their
capital in various sectors of the economy.

Thus, by realizing the current enabling investment climate in Ethiopia in

general and the investment opportunities in service sector in Harar City in
particular, the promoter of this project Mr. Bedhaso Abdella Ibrahim
has planned to be engaged in establishment of Mixed use building and
shopping mall project.

The total investment capital of the project is estimated to be Birr

1,000,000,000 of which Birr 990,000,000 is allotted for fixed
investment while the remaining Birr 10,000,000 will be used as initial
working capital. Concerning to its financial source, Br. 300,000,000 i.e.
(30%) will be covered by the promoter and the remaining Br.
700,000,000 i.e. (70%) is covered from bank loan.

The specific area proposed for the establishment of this project in Harari
Regional state. The promoter of this investment project to be forwarded to

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 the Harari regional administration to acquire the required 5000m2 of land
for this project.

In general with the implementation of this project varies advantages like

employment public revenue generation and capital accumulation for
further investment venture can be promoted.

2. INTRODUCTION

A good investment climate fosters productive private investment.

Investment is the engine for growth and poverty reduction. It creates
opportunities and jobs for people. It expands the variety of goods and
services available and reduces their cost to the benefit of consumers. It
supports a sustainable source of tax revenues to fund other important
social goals. Moreover, many features of a good investment climate
including efficient infrastructure, courts, and finance markets improve the
lives of people directly, whether they work or engage in entrepreneurial
activities or not. Improving the investment climate, the opportunities and
incentives for firms to invest productively, create jobs, and expand is the
key to sustainable progress in attacking poverty and improving living
standards (World Bank, 2005).

Despite the fact that, the significant role the private sector would play in
promoting national and regional development in the past few decades in
Ethiopia, the prevailed policy environment that has highly discouraged

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 the participation of private investors both foreign and domestic was made
the potential to be far from relaxation. This has resulted in hindering
national and regional socio-economic progress in almost all sectors of the
economy revealing the existing low productive capacity of the economy
and significant socio economic losses in various dimensions.

Recognizing the extent to which the past policy environment has highly
impeded the development of the national economy and the necessity to
promote private sector participation in various of investment ventures
that are believed to be ,more rewarding and compatible with me current
national and regional development objects and priorities the new
investment policy in the country has open the wider opportunity for
private sector participation.

Based on this, at present the private sector has started to mobilize and
invest their knowledge and financial resources in various investment
activities, which they assumed to be beneficial for them and to the
country.
3. ANALYSIS OF PROJECT AREA

3.1 Back Ground

The Harari region in eastern Ethiopia, particularly the city of Harar, has a
rich and complex history rooted in its distinct cultural identity, its long-
standing relationship with surrounding ethnic groups, and its role as a major
center of Islamic learning and trade. The Harari people are the indigenous
inhabitants of Harar, with a history of independent rule through emirs and a
strong connection to Islamic traditions.

Key aspects of the Harari region's background:

• Geographic Location:
Harari Region is located in eastern Ethiopia, bordering the Oromia region.
• Historical Rule:

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 Harar was ruled by 72 emirs for centuries, culminating in the loss of
independence to the Ethiopian Empire in 1887 after the defeat of Amir
Abdullahi.
• Cultural Identity:
The Harari are known for their strong cultural identity, including a unique
language, traditions, and a sense of community.
• Islamic Influence:
Harar is renowned as the "City of Saints" due to its numerous shrines and
a strong tradition of Islamic learning.
• Trade and Economic Activity:
Harar was a significant trade center, connecting various regions through
its strategic location.
• Relationship with Other Ethnic Groups:
The Harari have maintained relationships with neighboring groups like
the Oromo, Somali, and Argoba, with varying levels of cooperation and
conflict.
• Current Situation:
The Harari region continues to grapple with development challenges,
including poverty, education disparities, and unemployment.

Harari is one of the two urban dominated chartered administrations in

Ethiopia. It has its own Charter established by Proclamation No. 416/2004.
The city is divided into 9 Kebeles that are the lowest administrative units.
The Administration is executing and implementing its municipal and state
functions though its formally established institutions. Therefore, it is
facilitating, supporting and enabling the investment and development
initiative of the administration through its institutions and related legal
and organizational instruments.

Regarding the social situation and characteristics of the population, Harar

serves as a home for people from nearly all parts of the country.
According to the Population Census Report of 2007 prepared by CSA, the
population of the city consists of people from nearly all ethnic groups of
the country. Of these groups, the Oromo, Somali, Amhara and Southern

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Nations and Nationalities, Peoples constitute the larger composition in
their population size.

The general demographic situation of Harar City shows that there is a fast
population increase both from natural and migration causes. The prospect
for the speeding-up of the momentum of the population growth of the city
in the future is also higher as the size of the young age population at
present dominates its population structure. The total population of Harar
Administration, as of July 2011, was projected to be 377.000. From this,
the population of the urban was projected to be 256,774, in the same
year.

3.2 Infrastructure and Land Availability

The availability of well developed infrastructure and fair priced land are
among the conductive climate of investment opportunities in the city.
Telephone, road, power and waste disposal systems are major
infrastructural provision of the city. The city also has land resource which
can be accessed for investment activities in the inner parts and expansion
zones of the city.

A) Land availability and management: According to the DDA

structural plan (FUPI 2004) appropriate sizes of land has been allotted for
service activities. The study depicts that efforts have been done to
reserve sufficient areas in both the existing built-up and the expansion
areas that will lead to the provision of balanced service at all levels of the
city. Accordingly, the total area allocated for service is about 311ha.
Considerable size of this land has been allotted for commercial services
like rea estate development. The lease period for commercial activities
has been set as 70 years. The arrangement of the lease payment is based
on advance payment of lease 20%.

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B) Physical Infrastructure and Facility

Road: Harar Administration has about a total road length of 346.24 km

with different hierarchy and types and extended to different parts of the
city. From this 249.9 km is gravel, 56.94 km coble stone and 39.40 km
asphalt road of different standards. Other than this, the city is connected
to surrounding regions, other parts of the country and neighboring
countries with gravel and asphalt roads. Therefore, the area is internally
and externally accessible and has proper links.

Telephone: According to Harar Administration Statistical Abstract, Harar,

(2011), the current users of telephone service exceeds 113000. The GSM
prepaid and post paid users are 110539 while the fixed telephone users
are about 12300. Dial up internet users are 393. Both private and
business users have the larger number of the constituents. The existing
service providing capacity is also higher to accommodate diversified
Telecom users.
Therefore, Telecom service is accessible to fulfill the project requirement
to the standard.

Electricity: The major source of Harar city electricity supply is the

connected lines of the national grid system. According to According to
Harar Administration Statistical Abstract (2011), there are 25066 private,
259 industrial, 338 government and 3613 commercial customers of
electric from Harar substation. Based on the 200m2 transformer coverage
assumption, the total coverage of electricity in the built up area of the city
is estimated 53.3 %. The inner part of the city has more access than the
expansion areas. As this project will be established in the vicinity of city,
power access will be better, from connected line.

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3.3 SERVICE FACILITIES

The major services required by the project includes, transport, training,

financial, and market aspects. The city is highly benefiting from road, rail
way and airline transport services. Both freight and passenger transport
services rendered to different parts of the country and to the neighboring
counties.

There is TVT School administered by the government. Besides, there is

one big public university. Different private colleges and training center are
found in the area. Therefore, necessary man power capacity building
supports can be availed at the spot. Regarding the financial institutions
there are 20 banks and insurances found in the city. Therefore, loan and
risk transfer supports can be found within the project area.

LABOR FORCE POTENTIAL

Labor is an important element of the project requirements. The

unemployment situation of Harar city is higher compared to the situation
of the major towns of the country and the overall country total. Currently
the unemployment rate of Harar City is estimated at 22.9 %. This includes
educated unemployed too. Therefore, the job seeker has significant
number. On the other hand there are numerous public and private
training centers engaged in offering different short and medium term
technical trainings.

4. BACK GROUND OF THE PROMOTER

The promoter, Mr. Bedhaso Abdella Ibrahim is a dynamic business man

engaged in various business lines here in Harar. The promoter has very

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 good entrepreneur skills and long year of experience in generating,
managing and running various business lines.

The promoter is planning to engage in investment activities that benefit

the nation and the city, Harar. The promoter in its part believes that to
participate in Mixed Use Building and shopping mall in Harar city and
hence there is strong self-interest by the promoter in fostering prosperity
in this country in general and in Harari regional Administration in
particular.

5. PROJECT RATIONALE AND OBJECTIVES

5.1 PROJECT RATIONALE

It is to be noted that the insufficient number of business centers in the

town and concentration of the existing in the center of the town fail to
address the service to the new developed part of the town.

It is then evident that there is a considerable shortage of business centers

that can provide better and standard room services for different business
activities. Thus, a need arise to intervene in this activity to meet the
demand of the population in the town and for the absorption of the existing
and future potential market in this respect.

This project is initiated by the promoter aiming at constructing buildings

whose ground and first floor will be provided on rent for different business
purposes while rooms on second floors will be used for rental offices, training
centers others services as required.

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 5.2 PROJECT OBJECTIVES
The general objective of the project is to develop multipurpose building will
be used as super market, bar &restaurant, modern shopping center,
cafeteria, internet café, guest house, men and women beauty salon and
other related services and to earn reasonable income to the promoter of the
project, the following goals are expected to be achieved. These goals are:

 To alleviate the existing service shortage of supermarket, bar

restaurant, modern shopping center, cafeteria, internet café, guest
house, men and women beauty salon and other related services in
Harar City;
 To exist profit to the owner
 Creating jobs and thereby reducing the rate of unemployment
 Contributing to the growth of the regional economy in general and
to growth of government revenue in terms of taxes and the like,
 Demonstrating the importance of investing in developmental
sector.

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 6. MARKETING ENVIRONMENTS
Harar is the Oldest Historic city of the country where there is sufficient
infrastructural facilities such as an organized transportation (rail way, air
and bus transport) and communication ranging from automatic telephone
to internet service, modern postal service and the like. The conducive
urbanized atmosphere, disregarding the natural increasing rate of
population could attract the immigration of population to the town, there
by demanding additional social and economic service provision among
which the most important is Business center which is required to get most
of the important needs at one shop stop.

Compared to the growth of business activity and escalation of the size of

the town, it can be concluded that the new settlement areas lack this type
of services more over the central part of the town also did not get
sufficient modern one shop stop business center.
Generally, the center of town is occupied by old buildings and residential
houses that doesn’t fit to the standard of the town.

7. PROJECT TECHNICAL STUDY

7.1. The project Description

Commercial center is a component of industrial sector and an essential

element of strong indstrial economy building process. Modern commercial

center development is a process addition in capital stock, adding value on

the hand and important instrument for attaining long term sustained

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 development which is crucial pave avenues for building strong industrial

economy.

7.2. PROJECT LOCATION AND LAND REQUIREMEN

The specific area proposed for the establishment of this project in Harar .
The promoter of this investment project to be forwarded to the Harari
region administration to acquire the required 5000m2 of land for this
project.

7.3 Raw Materials And Inputs

Raw Materials

The principal raw materials required for the construction of proposed Real

estate development are cement, sand, Hollow blocks selected material,

gravel, bricks, reinforced structural steels, PVC pipes, Timber, Gypsum,

play wood, corrugated sheet metal, EGA sheets, Nail, window glass, sheet

metal, door and window frames (profiles), paints, Galvanized pipe, angle

iron, pipes and fitting for kitchen batch room and toilet, kitchen wares,

bath room wares and toilet wares, etc.

UTILITIES

Among the major utilities required by the project electricity, water and
telephone are the important one. Through undertaking necessary dealing
with authorized suppliers, it is aimed at installing the utility lines at the
earlier period of the project.

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Electric as a major source of energy for the project will be obtained from
EPCO connected electric source. However, the project will have its own
power generator as standby power source. The average annual electric
consumption of the project is expected to be up to 200KWH.

Diesel fuel also will be used as a complimentary energy supply for stand by
generator and its transport logistics. It will be deposited in normal time for
supplementary energy generation activities. The major water supply of the
project will own source from DDWFA. The expected annual water
consumption of the project is estimated at 400m3. The project will use
telephone service for managerial, technical and administrative purposes.

MANPOWER REQUIREMENTS

No Description unit Qty

1 manager No 2
2 Accountant No 3
3 Cashier No 1
4 Typist No 1
5 Janitor No 4
6 Guards No 2
7 Others No 15
Total 28

7.4 Building Constructions

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The construction of buildings consists of the following sequential
activities.

- Grading and site preparation

- Foundation construction

- Framing

- Installation of Windows & doors

- Roofing

- Siding

- Rough electrical

- Rough plumbing

- Insulation

- Trim

- Painting

- Finish electrical

- Bathroom & kitchen counters & cabinets

- Finish plumbing

- Flooring

- Hook up to sewer or installing of a septic system.

8. ORGANIZATION AND MANAGEMENT

Organization is a means by which the operational function and activities are

structured and assigned to organizational units represented by managerial

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 staff, supervisors and work force with the objective of coordinating the
performance of enterprise and the achievements of business targets.

The project has defined organizational frame work to maintain

coordinated and integrated performance throughout its life time. The
owner of the project has the overall ruling power and organizational policy
design role.

The day to day internal operation of the project will be administered,

coordinated, and managed by the firm administrator who will be
appointed by the owner. This manager will be engaged in planning,
financing. Staffing of the project employees and managing its logistic and
technical operation of the project. There is also residence engineer who is
in charge of the construction management and coordination works.

The project is nearly followed more or less flat type of organizational

structure to effectively coordinate its performance accordingly. However,
necessary tasks categorized with respect to its nature and technical
relationships.

According to the requirement of proposed project, the organizational

structure of the project is designed on the basis of the number, size, and
types of activities to be undertaken by the project. The organizational
structure of the project will comprise general management and other
technical staff.

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 9. PROJECT COST ESTIMATES

The total investment capital of the project is estimated to be Birr 1,000,000,000

of which Birr 990,000,000 is allotted for fixed investment while the remaining
Birr 10,000,000 will be used as initial working capital. Concerning to its financial
source, Br. 300,000,000 i.e. (30%) will be covered by the promoter and the
remaining Br. 7000,000,000 i.e. (70%) is covered from bank loan.

9.1 Fixed Investment Cost

Fixed investment cost of the project under consideration includes building and civil
works, furniture, and others fixed investment costs. These are:-

A. Land lease.

Based on the currently operational lease regulation of the region, the payment of
land lease cost is birr 200,000 of which 10% (Birr 2,000,000) will be paid at the
beginning while the remaining Birr will be distributed over 30 years.

B. Construction and civil work Cost

The compound includes the constriction of buildings such as Building, parking

and other related rooms. Based on present day cost of construction material &
labor, the estimated total cost of these civil works (consultancy), is around Birr
989,000,000

C. Office furniture: -The estimated cost of office furniture and equipments required by
the proposed project is nearly Birr 700,000

D. Installation expense

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To make the project runs at its optimum the basic infrastructure as electric power supply,
telephone services, potable water pipe line, etc have to be installed. Hence, the
estimated cost of installation is
Birr 300,000
9.2 Operational Expense

A. Employee salary and wages

The total cost of employ salary is estimated Birr

400,000.

B. Utilities Expenses
No Description Total cost

1 Electricity 200,000

2 Telephone 200,000

3 Water expense 200,000

4 Total 600,000

C. Other operational cost

No Description Cost in Birr

1 Employee fringe benefit 70,000

2 Miscellaneous expense 50,000

3 Office consumable 80,000

4 Repair and maintenance 80,000

5 raw materials 6,700,000

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 Total 8,000,000

PROJECT COST SUMMARY

No Description Cost in Birr

1 INITIAL INVESTMENT COST

Land Lease, Construction And Civil Works 989,000,000

Cost
Office furniture and fixture cost 700,000

Installation Expense 300,000

Total 990,000,000

2 OPERATIONAL COST

Employee salary and wages 400,000

Utilities expenses 600,000

Other operational cost 8,000,000

Total 9,000,000

3 Working capital 10,000,000

PROJECT TOTAL COST 1,000,000,000

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10. BEGINNING BALANCE SHEET

1. Asset

Current Asset ------------------------------------------ 10,000,000

Fixed Asset --------------------------------------------- 990,000,000

Total Asset -------------------------------------------------- 1,000,000,000

2. Liability

Current Liability---------------------------------------

Long term liability ------------------------------------- 7000,000,000

3. Capital

Owner’s Equity ----------------------------------------- 300,000,000

Total capital --------------------------------------------------------- 1,000,000,000

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 11. PROJECT REVENUE ESTIMATES
Annual revenue estimates in Birr is describe as follows:-

Description Project year

Source of revenue 1 2 3-10

Multipurpose real estate

rooms to be rented for 221,160,00 221,160,000 221,160,000
different purpose 0

Total revenue 221,160,0 221,160,00 221,252,000

00 0

12. DEPRECIATION

NO Description Original Method Annual Total

value depreciati depreciatio
on n
1 Building 990,000,0 Straight line 599,2 599,2
0 15 15

2 Office furniture 300,000 Straight line 33,5 33,5

38 38
and equipment

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 Total 632,753

Descript Project year

ion 1 2 3 4 5 6 7 8 9 10

Fixed 19,3501
,04
cost
Total
revenue
----- ---- 221,160,0 221,160,00 221,160,0 221,160,0 221,160,0 221,520,00 2,520,000 2,520,000
00 0 00 00 00 0
Total
1,686, 1,686,
operatin 354 354
1,686,354 1,686,354 1,686,354 1,686,354 1,686,354 1,686,354 1,686,354 1,686,354
g cost
Gross 1,686, 1,686, 473,646 473,646 473,646 473,646 473,646 833,646 833,646 833,646
354 354
Profit
(loss)
Income -- -- 165,776.1 165,776.10 165,776.1 165,776.1 165,776.1 291,776.1 291,776.1 291,776.1
0 0
tax 35%
Net -- -- 201,160,8 201,160,86 201,160,8 201,160,8 201,160,8 201,160,86 201,160,86 201,160,86
69.90 9.90 69.90 69.90 69.90 9.90 9.90 9.90
Income

13. PROFIT AND LOSS ESTIMATES OF PROJECT

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 14. ENVIRONMENTAL AND SOCIAL ASPECT OF THE PROJECT

The proposed project has no environmental impact rather this type of investment
project could help to mitigate the environment in general and climate of the
project area in particular. Thus, this is an environmental friendly project that will
contribute much for the improvement of the environmental through using modern
technology. The project location is also ideal for the disposal and treatment of
wastes and the promoter is prepared to be a minimum polluter and environmental
friend through providing incentive to local people to grow seedling and manage
accordingly. On the other hand the positive social impact of the project on the
society is significant. The project creates employment opportunities for 28 peoples
15. PROJECT IMPLEMENTATION STRATEGY
15.1 Project Formulation and Establishment
A. exchange of views and creating shared understanding
The project proposal and strategic planning management document shall be
distributed to all potential stakeholders such as concerned members of the family,
government institutions and to selected financer with a view of creating satisfactory
exchange of views and promote shared understanding in advance.
B. Determination of establishment phase target activities
During the project formulation and establishment phase, the following major tasks are
required to be successfully accomplished.
Registration, licensing and acquisitions of operations commencement authorization
Acquisitions of construction permits
Preparation of every legally required document
Appointment of strong and capable implementation team
C. Promotion and Fund Raising
To prepare promotional strategic planning mgt guidelines
To prepare promotional ideas, materials, logistics and facilities

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 To conduct promotional tasks and build strong constituency of support
To evaluate the process of promotion and progress
To prepare fund raising strategic planning guideline
To assess and identify major project donors
To assess and identify the interests, rules, regulations and conditions of targeted and
prioritized financers
To prepare all necessary requirements of financers and apply for fund
To undertake follow ups and secure fund
D. Organizational Builds up
Establishing and organizing project office
Preparing project working and administrative systems and procedural guidelines
Commissioning construction
Purchase of all on and off site durable and consumer goods
Staff recruitment, orientation and employment
To conduct pre operational trial runs, checking the validity of all activities

15.2 Budgeting Implementation strategy

A. Budgeting concept Definition
The realization of any strategic decision needs proper identification and
understanding of project objectives, and necessary activities. Moreover,
determination of time phase out process and resources to the completion of each
task which calls for budget making process and existence of effective strategic
budgeting is a key implementation strategy for the success of project objectives. In
consideration to the significance of sound budgeting system and procedures, it has
been selected and proposed as one of the best implementation strategy.
There is no doubt that the internal and external activities, resources, process and
output of any organization should be managed effectively and efficiently. To attain
short and long term objectives of the project the management must chart the entire
tasks in advance in a comprehensive and coordinated manner. A budget is a
comprehensive and coordinated plan expressed in financial term for the operation
and resources of a project for some specific period in the futures. A budget is the

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 plan of project’s expectation in clear & formal terms to avoid confusion and to
facilitate their attainability. Thus the roles and significances of budgeting are;
• To state the project’s expectation in clear and formal terms, to avoid confusion and to
facilitate their attainability
• To communicate expectation to all concerned
• To provide a detailed plan of action for reducing uncertain and proper direction of
institutional group and individual efforts
• To provide a means of measuring and controlling performance
• To coordinate all institutional, group and individual efforts towards the success of project
objectives.

Thus, it is inconsideration to the above roles and significance of budgets and

budgeting that we select it as the best implementation strategy.
B kinds/types of budgets & budget setting process
Although, there are various kinds/types of budget items, to simplify it, the types of major
budgets have been categorized in to four.
Sales budget
Operations budget
Financial budget
Capital budget
Statement of Smart objectives and goals is probably the starting point and pace maker
for all other types of budgets. The sources of sound project objectives/goals are again
the internal and external environments.
Analysis of the patterns of project internal and external environments, pinpointing
project opportunities and challenges with a focus on the demand for the project
services, existence of external opportunities and internal capabilities, it is pertinent
to define project objectives and goals in clear and formal terms at the outset.
The objectives and goals of any project emanate the operations, financial and capital
budget needs. The project corporate level objectives and goals, operations and
capital budgets are required to be further apportioned for all core process which
together form corporate budget.

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The process of setting sound budget is a complex and complicated process, because
of the involvement of various factors in it. However, budget setting process starts
with the determination of limiting factors at the outset. The most important project
limiting factors are,
The demand for the project services
The economic life of the project
Existence of factor and non factor inputs
External opportunities supporting the project ideas and internal capabilities to
establish, operate, manage and control etc are some among others. Based on the
above limiting factors, the first step of budget setting process starts with definitions
and establishment of project basic objectives and goals
Second step: at this stage, it is necessary to identify and describe all on and off site
activities necessary to successful achievement of stated objectives and goals,
determination of logical sequence of activity execution process, time phase out to
complete each task in clear and unambiguous terms. Third step: at this stage, it is
very important to assess identify and define the resource needs of all activities,
measure, quantify and state in clear and formal terms.
Fourth step
Group all activities according to their similarities
Establish major budget centers
Allocate the resources required to major and sub budget centers
Prepare objectives/goals, operations, financial and capital budgets at corporate, core
process and sub process and assign centre of responsibilities
B. ESSENTIALS OF BUDGET MGT
To make the objectives and purposes of budgets productive and positive impact
generating we propose the following budget administration. It should be well
recognized that corporate and functional levels budgets are prepared by line
executives while the organization and implementation of budgeting is a staff
function. Joint efforts of all line execution and a staff function in the preparation,
administration organization and implementation of budgeting should be done in a

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 coordinated manner. To this effect there should exist the following systems of budget
administration.
The budget committee consists of all members of the management committee which
bring together all activities of different project functional unites.
The primary function, of the budget committee is to decide on the general policies of the
project and directs all project functional unites to prepare their respective budgets.
Budget director/officer

The budget officer shall have the following tasks;

▪ To draw a detailed time table for the preparation of budgets.
▪ To calculate and consolidate individual budgets into the project master budget.
▪ To design and develop necessary budgeting systems and procedures.
▪ To design and develop budgeting formats.
▪ To generate accumulate and transfer budgeting parameters information data and indicrs.
▪ To undertake satisfactory exchanges among all project concerned stakeholders on
budgets and budgeting
▪ To educate all concerned on budget and budgeting
▪ To undertake monitoring evaluation and control activities
▪ To prepare periodic or extra ordinary budgeting reports
▪ To disseminate the feedbacks of budgetary monitoring and evaluation to all concerned
stakeholders
▪ To suggest sound and workable recommendations for immediate corrective measures
Budget manual

The budget manual is a written set of instruction which serves as a rule book and
reference for the implementation of a budget.

Budget management principles o Existence of top

management support o Specific measurable achievable
realistic and time bound goals.
o Existence of clearly defined assign ment of authority and
responsibility o Creation of canters of responsibility o

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Existence of appropriate accounting system o Budget
education and effective communication o

Flexibility

15.3 PERFORMANCE MGT AND CONTROL

A. monitoring, Evaluation and control strategy
The success/ failure of any planned objectives should be known with certain degree
of accuracy. To this effect all activities, resources process and output should be
monitored evaluated and controlled timely and regularly. To undertake monitoring,
evaluation and controlling activities timely and regularly there should exist.
Clearly identified and defined description of planned objectives, outcomes output and
inputs.
Existence of, sound, and appropriate, indicators, which show, the success/ failure, of the
planned objective outcome, output and inputs used.
Appropriate source and means of verifying that the planned, objective outcome, output
and inputs were in accordance with/ deviated from the planned
Clearly stated important assumption with/without which the planned objective
would/would not be successful.
The role and significance of monitoring evaluation and control are briefly described as
follows.

• Monitoring

Monitoring is a continuous and process oriented information gathering, and data

mining on what has happened, who did it, when, how much, for whom etc. aimed at
measuring the magnitude, time quality and impact of the initiative. Monitoring helps
to compare the input human, material financial etc output product/service result and
the outcome (achievement against the planned tasks. Effective monitoring must be
completely integrated into all tasks. Existence of sound monitoring system, enable
organization to make appropriate and timely decision making and ensures
transparency and accountability.

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• Evaluation

Evaluation is the process of analyzing information and data gathered during

monitoring process. The evaluation system helps to think critically and search into
ways of achieving desirable results. It is a periodic process of reviewing monitoring
data and drawing sound conclusion from it. Good evaluation system enables
organization to analyze the pre and post patterns of existing and future plans and
search into ways of achieving desirable results.

• Control
Control is a managerial process of detecting errors of principles system, procedures
etc aimed at avoiding resource miss allocating unemployment, fraud, wastage and all
other misfortunes which hinder the success of planned objectives. Control enables
organization to continue their production of goods/ products without jeopardizing
internal and external resources for better future. Thus, an integrated monitoring and
evaluation system in a single whole enables organizations optimally benefit from
available resources through satisfaction of existing and potential customers in their
best interests.
The monitoring evaluation and control system should be designed to serve both the
strategic and operational phases. The monitoring evaluation and control system
designed for both strategic and operational phases are described as follows.
This is a continuous and systematic monitoring evaluation and control of the validity
of basic assumption under which it operates. Thus, a regular and continuous
proactive check against the validity of planned strategy aimed at changing or
improving the condition of vital assumption.
Performance management and control is a managerial process of designing and
developing sound indicators parameters means and sources of verifications
necessary to measure activities resources, process and output of individuals, groups
and institutions against the targeted standards and come up with logical results
which would help to make sound decisions. Although there are numerous areas
whose performance are needed to be well managed and control, the most important

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 areas and performance management indicators used in laundry and dry cleaning
business are briefly identified and described as under.
Operational control strategy is designed to guide monitor and evaluate the progress
of all planned activities against their respective planned objectives as in meeting
targets representing the planning horizon. Accordingly, all planned activities shall
have the following basic system to be used as a monitoring evaluation and control
mechanisms.
Components of narrative description
 Objectives
 Outcome
 Output
 Input
Indicators that show
 Objectives have been achieved
 Planned outcome has been attained
 Desired output has been obtained
 Input are properly allocated and employed in all terms

Source and means of verification

Relevant means and source of verification shall be clearly identified and employed
accordingly;
 Strategic planning documents
 Audit report
 Field visit and on site survey
 Past data etc shall be used

15.4 CHANGE MANAGEMENT IMPLEMENTATION STRATEGY

In connection with the application of the project strategic plan, certain changes are
inevitable and these changes may take place in a continuous/discontinuous process.
The fact that all types of changes must result in supportive, adverse or neutral
effects, necessitate management needs to identify and understand the types and

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 impacts of each planned changes, to be able to benefit from change offers and deal
with the challenges of changes.
In general, transformational, transactional, transitional and Incremental changes in
the project workflow process organizational culture and behavior are expected to
occur both at strategic and operational dimension of this proposal. The impact of all
of these changes should be managed in favor of the project at large
The following major implementation strategies are proposed to manage these changes.

Work flow process

This is a targeted economy of scale process intervention, aimed at attaining cost

minimization, profit maximization, efficient service delivery and customer
satisfaction. To do this it is pertinent to understand the dynamics of project realities
in the changing world. To change the workflow process to desirable small scale the
following implementation strategy are proposed.
 To undertake a detailed task analysis and determine the condition, process and time
phase out for each task.
 To determine the resource requirements availability quality magnitude and cost
 Determination of technology and system requirements
 Determination of skill, profession and experience requirement
 To design and develop strategic fit and incorporating human resources into system
integration  Acquisition of top management support.
Organizational culture change implementation strategy

Change in organizational culture refers to change in project belief, values, strategy,

purpose and expectations. Conductive conditions to cultural changes proposed are
 To create appropriate environment for team work, process focus, action oriented and low
level decision making
 Outstanding and effective trial of many alternative tools and techniques and selecting
the most appropriate
 Building the skills and competence of management and staff
 Setting standards to measure performance
 Analysis and initiating corrective measures
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 Behavioral change implementation strategy

Organizational behavior refers to employee individual and collective behaviors. The

most challenging task is to manage employees’ behavior towards the success of
desired changes.
The following strategies are proposed for project organizational behavioral change
implementation and management
Involving employees in planning and decision making process
Promotion of rewarding and incentive system
Promotion of employee career and skill development operational plan
Avoiding under/over employment
Promotion of transparent, accountable and non discriminatory data based decision making
practices
Provision of clearly defined job description, evaluation, lines of authority and
responsibilities as well as lines of communication and information flows.
Provision of management and leadership support and guidelines.

Staff motivation strategy

Experiences has demonstrated that the most difficult and resistance to organizational
transformation and improvement process is the behavior of employee, unless
employees are properly managed motivated and participated in the process the
efforts of achieving planned objectives would carry meaningless. Moreover, the fact
that there are various knowledge skill, experience dedication commitment sense of
ownership belongingness moral ethics honesty, reliability etc. among employees
there exist differences in their effort contributing and performance results. Employers
contributing extra efforts and time require recognition need reward and
development. Because recognition, reward and development.

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