MEKELLE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

Prroject pproposal Title:Mixed use building

Prepared by:ABI DAWD
Id.no Cbe/ur93772/08

Submitted to: Tesfasilase (MSc)

June, 2017
MEKELLE, ETHIOPIA

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Table of content Page
1.general background of the study………………………………………………1

1.2 BUSINESS GOALS AND OBJECTIVES……………………………………………………………………4

1.2.1 General objectives……………………………………………………………4
1.2.2 Specific objectives……………………………………………………………4
1.3 Project description……………………………………………………………………..4
1. 4 Project beneficiaries………………………………………………………………….5
2.Technical study……………………………………………………………………………...5
2.1 Materials and inputs…………………………………………………………………..5
2.1.1 Utilities…………………………………………………………………….………………..6
2.1.2The project service/productivity……………………………………………..6
2.1.3machineries an equipments…………………………………………………….7
2.2 Construction work an technology………………………………………………7
2.2.12Construction schedule…………………………………………………………….7
2.2.2Structural design…………………………………………………………………………8
2.2.3 Construction plan and process…………………………………………………8
2.2.4Project implementation……………………………………………………...………9
3.The market study………………………………………………………………………………10.
3.1 Market Analysis………………………………………………………………………………..……..11
3.2Current supply of mixed use building…………………………………………..11

3.3FUTURE market or demand commercial building……………………...11

3.4 Target group of project………………………………………………………………….11

3.5Marketing promotion and strategies…………………………………………….11

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3.6 Commpetition……………………………………………………………………………..…11

4.Managment summary…………………………………………………………………….…12
4.1 Justification and purpose………………………………………………………………12
4.1.1Project rationale and need of the project………………………………….13

5.Financial requirement and analysis……………………………………….13

5.1.1Financial analysis and statements……………………………………14

5..2Working capital man power…………………………………………………14

5.3Financial statement……………………………………………………………….16

5.3.1income statement…………………………………………………………….…17

5.3.2 Cash flow statement…………………………………………………………..17

5.4 Financial analysis…………………………………………………………………..17

6.The economic benefit of the project………………………………………18

6.1Source of revenue…………………………………………………………………18

6.2Employment opportunity………………………………………………...…….18

6.3Sources of social service………………………………………………..………19

7.Environmental impact of the project………………………………………..19

7.1The positive impact…………………………………………………………….…..20

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7.2 The negative impact……………………………………………………….….….20

8. Risk assessment……………………………………………………………….…….21

9.Conclusion,reference…………………………………………………….……...…22

1. General back ground and objective

1. Project name: Mixed use Building
2. project Type : Multipurpose service business building
3. project owner: selam tesaf
4. Project location: Tigray region, Adigrat city
5. Project Activities: multipurpose Building (G+5) used for diverse business centers like :
 Banking & insurance
 restaurant and café,
 beauty salon and barberry
 Pharmacy, bed rooms and offices.
6. Area Required: 560 m2
7. Total investment Cost: 7,000,000 ETB is required from this amount 35% or
2,450,000ETB from owner equity and the rest 65% from bank loan.
8. Employment opportunity: 40 individuals on permanent 60 on casual basis
9. Social and Economic Benefit: provide better Building service, employment opportunities,
generation of income and benefits for the local people.
Title the construction of mixed use building Tigray region, Adigrat town

1.1. Introduction

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The current fast and dynamic economic growth of Ethiopia especially in urban area necessitates
equivalent growth of building and construction sector. The sector should expand rapidly to
support the overall economic development sustainable.
In the building sector of the economy, the multi- purpose in the one becoming rapidly expanding
in urban areas of the nation since dynamic economic development of urban economy requires the
construction of these buildings in towns to support the growing of business service sectors like
supermarkets, Beauty salon, shops, offices cinemas, Computer Center, Cafeterias, restaurant,
assembly hall, guest house and other activities. In this regard, mixed used building expands in
the all parts of the country
1.2. Objective of the project.

1.2.1General objective
The major goal of this project is to contribute towards the growth of the trade sector in Adigrat
city.

1.2.2 Specific objectives include the following.

 To construct and develop modern shops, offices, and restaurant, bedroom & cafeteria
facilities that enable to provide standard services to visitors.
 To undertake trading and other refuted business activities that enable to generate a reasonable
to the invested capital.
 To develop modern business center that would provide services of international standard in
order to attract foreign visitors and thereby contribute towards the generation of hard
currency for the country.
 To create employment opportunities for the population in the town and
 Contribute towards the beautification of the town through the construction of modern
building infrastructure and facilities.

1.3. Project description

 The long-term goal of the project is become the best choice in Adigrat Town and its
surrounding areas by creating a differentiated experience capitalizing on personal service.
The proposed project will have a total area of 5602, designed to reader a multipurpose giving
business, which will in turn plays significant role towards solving shortage of business center
in Adigrat Town.

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 The historical nature of the town as business unique location in one of the most attractive
parts of the occurrence of the town along the along the Ethiopian Rift Valley lakes laid a
fertile ground for future promising growth of the town. The owner plans the project to render
banking and insurance, shopping facility, bank and cafeteria services to create high quality
class to satisfy the interest of customers in the town. Based on environmental and other
considerations, the entrepreneur has determined the type and size of the building which is
already determined by the site; conceptual planning and preliminary analysis have been
carried out by analysts

1.4. Project beneficiaries

The beneficiaries of this envisaged project include:-
1. construction company
2. Tourists, travelers, vacationers, holiday makers etc.
3. the neighborhood peoples
4. business Community
5. banks and insurance companies
6. the city administration
7. Nongovernmental organizations

2. Technical Study
2.1. Materials and inputs
2.1.1. Utilities
A number of utilities world be put in place in order to ensure smooth functioning of the project.
These utilities include:
 Water Supply,
 Supplementary Electricity supply.
 Telephone line Internet Broadband
 Fuel, Oil and lubricant
 Drainage Facility

2.1.2. The project Service/ Product mix

The envisioned mixed purpose building will provide different rental services to the different
customer groups for different purpose. The building will have basement, ground and eight floors.
The purpose of the building explained as follows;

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  the ground floor, first floor and second floor designed for different business centers like
banks, supermarket, beauty salon(man and women), Computer center, pharmacy,
internet café, boutiques, different shops and other business activities,
 The third floor designed for bed room services.
Besides, the buildings will have enough parking facility for its customers and green area in its
compound.

Project location and site

As aforementioned on the introductory part the envisioned project is intended to be located in
Tigray region Adigrat at about 899 km from Addis Ababa to the north.
The proposed project is expected to be built at the center of the city where everyone could have
access.

2.1.3. Machineries and equipment’s

The machineries and equipment`s that will be put in to the service when the project start
operating includes the following

Generator Managerial tables and chairs

Carpentry tool box Computer, shelf and printer
Electrician tools box Telephone and fax
Plumber tools kit Secretarial table with chairs
Fire extinguisher Carpet and curtain
(Security Equipment)

2.2. Construction work and Technology

2.2.1. Construction schedule
The construction project is proposed to be started on January 2018, and is expected to be finished
on January 2020. as seen in the abbreviated construction schedule above, a majority of the
schedule’s time is made up of five major activities; Concrete, building Enclosure, masonry,
mechanical &HVAC and Electrical install. Concrete activities include processes such as placing
foundations and slab on deck. The Building Enclosure Phase includes erecting the scaffolding
that will allow for exterior sheathing installation and bricklaying.

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Mechanical and Electrical install coincide with each other due to the need for coordination
between the two divisions. There are several periods of construction during the schedule in
which there are multiple construction activities occurring at the same time.
The construction site must be organized accordingly as these processes take place. As with any
construction project, the goal of the schedule was to complete all construction activities before
the required Date of completion.
This date of completion is practical based on the time of year in which the building will be
completed. The team allowed a two week contingency for any setbacks. Typically, winter
construction tends to cause unforeseen delays that negatively impact a construction project.
These conditions can and will almost undoubtedly impact the project schedule by causing
unforeseen delays and project inefficiency.

2.2.2. Structural design

One of principle deliverables of our project is the structural design of the building. The structural
bays were coordinated with the layout of the building adjustments were made to the bays if
specific layouts are necessary. The frame was made up of a grid with repeating standard
structural bays. Included in the structural system are bay sizes, shape and size of structural
members, floor compositions and curtain walls. These elements were established to resist gravity
ad lateral loads as appropriate.
The gravity load design was completed for two frames; one of structural steel and one of
reinforced concrete. The structural steel frame was chosen for further design based on cost per
square foot, local availability of material and constructability considerations, such as erection
and fabrication. The steel system was then designed for lateral loading with necessary adjustment
being made to framing.

2.2.3. Construction Plan and process

The project developed a coordinated project schedule and construction plans that would reflect
the expectations for an actual construction project. The project schedule was developed using the
preliminary designs given to the project.
Additionally, the group considered typical construction activities and durations taken from
similar construction projects as well as realistic constraints on building development. For
instance, it is necessary for the structural frame to be completed before concrete can be placed

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for the slab on deck. Hand drawn construction plans detailing site entrances and storage areas
were coordinated with the project schedule to give the reader visualizations of the construction
site set up through various periods of the construction process.
Based on a general program of the project owners the consultant who is going to be hired makes
site studies, develops structural designs, prepares drawings and specifications, determines
quantities involved and estimated the resultants costs. All these activities will be done in the first
phase of the project which is the design stage after the document are produced by the designers
have been received, and the works secured the project is supposed to enter the tendering stage.
At this stage contractors study the project document analyze and subsequently determine the
construction methods, built up their unit rates and submit their bids for the works. The promoter
of this project intends to compare the bids and award the contract for the lowest responsible
bidder. This, is of course, presupposes that the favorable proposal does not exceed the allocated
budget.
After the award is made and the contract signed between this project owner and the contractor,
the project constructor is expected to prepare and submits a detailed construction program which
includes material schedule, manpower requirement and cash flow forecast.
After the award is made and the contract signed between this project owner and the contractor,
the project constructor is expected to prepare and submits a detailed construction program which
includes material schedule, manpower requirement and cash flow forecast.

2.2.4. Project implementation

The project’s implementation is expected to take 36 months. The major activities include Bank
loan processing construction of the building, cleaning the area around the building, Procurement
of equipment`s and start rendering services. The time schedule for the above matured major
activities is presented below:

Table: project Implementation schedule

SN Activities Date
1 Land request processing January – February, 2018
2 Land approval February, 2018
3 Bank loan processing March–April 2018
4 Site Development April 2019

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5 Building and construction work August, 2014-December 2020
6 Preparation for service January, 2020
7 Service execution February, 2021

3. The market Study

3.1. Market Analysis
There are a number of factors which affects the demand of standardized mixed use building. Of
these factors, the most important to have influence is population growth and the level of income.
The currently expanding tourism industry in the town and around the town has been inviting
tourists from abroad and inside the countries to the city; in addition, the number of both
government and non-government offices has been increasing rapidly in the recent years. Above
all the increase in the number of population of the town increases for the provision of different
services. Nowadays, most of the private business organizations need their own small-medium
offices in order to give their services and provide their products, and they prefer the place that
found in the center of the town or close to the road.
As clearly indicated in the introductory part of this proposal. Adigrat Town is one of the
dramatically growing countries in the region. Though the market demand gap for mixed use
building in Adigrat is not clearly understand there is wider gap for such demand as many
merchants, organizations and tourists are flouring to the city every day. From prior business
experiences, the demand of mixed use building in Adigrat is very high and hence the demand
and the supply gap is very wide.

Over the last decade, there has been a significant growth in the number of local and international
trades across the country. This increase is mainly associated with the stimulation of economic
activist and partly due to an increase in the flow of international and local traders in to the town.
Since Adigrat is an important commercial center and there is a significant increase in business
activates and hence increasing the number of traders to the town.

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3.2. Current supply of mixed use building
Commercial building/office sector has shown a dynamic change in the past few years. The
reason for this could be rapid economic growth and a supporting public infrastructural
development. Other factors relevant in the specific case of commercial buildings are the large
increases in national and international businesses, particularly firms in the services sector.
The business of multipurpose buildings in Adigrat is booming highly due to the recent rapid
growth experienced in Ethiopia. As a result, a good number of local and international
organizational are coming in place. Government offices which used to operate in limited spaces
all over the city are also concentrating on leasing new and modern buildings. Increasing numbers
of international organization and NGOs which in the past had typically converted residences into
office space are now moving towards renting whole floors or even multiple floors in modern
city-center commercial buildings.

3.3. Future market or Demand of commercial Building rental

The demand for office space is a derived demand because firms rent space as an input to the
production of services or goods they provide to businesses and households in the local regional
or national economy.

3.4. Target group of project

The target customers of this envisaged project include:-
1. Business Community
2. Nearby business organization
3. The government bureau
4. Small accounts (SOHO) SME
5. Nongovernmental organizations

3.5. Marketing promotion and strategy

In order to penetrate and gain considerable market share, one of the major marketing strategies
for the project is consistently rendering quality service to its tenants. Due emphasis must be
placed on improving quality of service and facilities. The major marketing strategies to promote
the project and gain considerable market share include:
 Advertising through different means focusing on the existing service and facilities

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  Promote in association to the key location and nearby business
 Working on sustained promotional work.
 Working on public relations to reach and influence key personas and organization with a
capacity of making decision.
 Keeping the quality of its service/ facilities and consistently improving with changing
situations.
 Seasonal discount pricing different others customer centric marketing strategies will be
used by the company.

3.6. Competition
There are different forms of competition that may face the envisaged mixed use building. These
are price and non-price based competition. Moreover, there are different competitors that will
compete with the project either directly or indirectly. But the mixed use building under
discussion has diversified marketing strategies that could enable it come up with the different
competitors in the market. Moreover it will frequently conduct competitors research which
focuses on, the strength and the weaknesses, the different competitors’ strategies, the techniques
they use in rendering the service, their customer handling methods, and others. Generally the
project has many other projects all over Ethiopia which compete with it.

4 .Project profile and concept,

4.1. Justification and purpose
4.1.1. Project Rationale/need of the project
Internationally the economic growth this country is experiencing, the good governance created
and even if the town is in its nascent stage of development these project are the first in kind in
the town are feasible and would be a model development in promoting and attracting different
urban investments.
In order to respond to the created environment the town is in need of major, basic and feasible
urban projects to be developed.
The existing promising investment opportunities, the demands of service needs along with
relatively sound investment support made by the government in such kinds of feasible projects,
compelled the project promoter to initiate the multipurpose oriented business project to be
established. Despite the promising business opportunities of the town, the trend on such kinds of

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 investment found to minimal. Since there is no such kind of modern tourist facilities and
business station in the town to accommodate the existing demand of these services in the town
and the surrounding areas. The mismatch between the demand for and supply of such kind of
services in easily observed in the town.
Therefore, the existing shortage or absence in the supply of these services, along with its
commercial and administrative access, better location and infrastructure access, escalating trend
of urbanization and business activities, thus it is with such reason that this project is identified
and proposed and assumed to be more profitable.
In general, the country’s decentralized state based economy, privatized and free market
economy; good governance creates a favorable environment for the development of investment
for private investors.

5.Financial Requirement and Analysis

The financial resource is a prime resource for undertaking any activities. Hence for
implementing this mixed use building a total of 7,000,000 ETB is required. From this 35%
(2,450,000) birr will be covered by the promoter of the project while the rest 65% will be
covered through loan from bank at the prevailing interest rate
Description Percentage share Amount
Owners Share 35% 2450000
Bank Loan 65% 4550000
Total 100% 7,000,000.00

Therefore the said amount of finance is needed for undertaking the following.

5.1. Financial analysis and Statements

5.1.1. Fixed Investment

A. Land, Building & Construction
S.N Description of works Total Cost in birr
1 Building construction 4,000,000

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 2 Site Development 25,000.00
3 Design and supervision 120,000.00
4 1st Year land lease & (10%) down payment 35,000.00
Total 4,180,000

B. Building Machineries and Equipment’s

SN Description Measure Sty Unit cost in Total cost in
ment Birr Birr.
1 Generator Unit 1 100,000.00 100,000.00
2 Carpentry tool box Set 1 30,000.00 30,000.00
3 Electrician tools box Set 1 20,000.00 20,000.00
4 Plumber tools kit Set 1 20,000.00 20,000.00
5 Fire extinguisher Unit 10 15,000.00 150,000.00
(Security Equipment)
6 Total 320,000.00

C. Vehicle
SN Description UOM Sty Unit Cost in Total cost in Remark
Fr. Birr
1 Mini-Bus Unit 1 500,000.00 500,000.00 Duty Free
Total 500,000.00

D. Office Equipment’s
SN Description Measurement Qty Unit cost in Total cost in

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 birr Birr
1 Managerial tables Unit 5.00 3,000.00 15,000.00
2 Managerial chairs Unit 5.00 1,950.00 9,750.00
3 Office table with chair Unit 7.00 1,350.00 9,450.00
4 Secretarial table with chairs Unit 1.00 1,450.00 1,450.00
5 Computer with chairs Unit 5.00 15,000.00 75,000.00
6 Shelf Unit 2.00 3,500.00 7,000.00
7 Filing cabinets Unit 1.00 1,500.00 1,500.00
8 Guest chairs Unit 1.00 4550.00 4,550.00
9 Fax & Telephone machine Unit 5.00 1,300.00 1,300.00
10 Carpet and Curtain LS 1.00 25,000 25,000.00
Total 150,000.00

5.2. Working Capita/project management man power

a. salary Expense
SN Position No Qualification Monthly Annual
salary in salary in
Birr Birr
1 General manager 1 BA in management 3000 36,000
2 Building admin 1 BA in Acct/Mgt 2500 30,000
3 Secretary 1 10+2 in secretariat science 900 10,800
4 HRM Officer 1 10+2 in HRM/Management 950 11,400
5 Technical and maintenance 1 Diploma in building maintenance 1500 18,000
manager
6 Finance head 1 BA in Accounting 2500 30,000
7 IT Technician 1 Diploma in computer science/IT 1150 13,800
8 Marketer 1 Diploma in marketing 1150 13,800
9 Accountant 1 Diploma in accounting 1150 13,800
10 Guards/Security 4 Basic 500 24,000

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11 General Service head 1 Diploma in Management 1500 18,000
12 Purchaser 1 Diploma in purchasing &Sup Mgt 1150 13,800
13 Electrician 1 10+2 in general electricity 1000 12,000
14 Plumber 1 10+2 in general mechanic 1000 12,000
15 Casher 2 10+1 in bookkeeping 850 20,400
16 Cleaner 5 Unskilled 450 27,000
17 Maintenance officer 1 10+2 in General mechanic 1000 19,600
18 Driver 1 10 completed 850 10,200
Total 26 327,000
Benefit (20%) 65,400
Grand Total 400,000
5.1.1Operating Expenses
SN List of Items Annual cost in birr Assumptions Used
1 Audit and legal fee 24,000.00 2000 br/per ,month
2 Stationery supplies 6,000.00 500 br/month
3 Promotional Cost 55,500.00 Lump sum annual cost
4 Property Insurance 84,009.00 1% of the building
5 Cleaning Supplies 10,800.00 900 br. Per month
6 Uniforms 1,670.00 180 per pes for 16 people
7 Water consumption 5,000.00 2500 m3 by 3.15 br
8 Electric consumption 6,000.00 20000KWH By Br.0.4736
9 Fuel 42,672.00 2032 lit per year by Br. 21
10 Oil &Lubricants 4,267.00 10% of fuel cost
11 Telephone & fax 18,000.00 1500 per month
12 Repair expense 72,072.00 2% of building cost
13 Miscellaneous costs 20,000.00 3000 per month
Total 350,500.00

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 5.2.2. Pre-service Expenses
SN Description Cost in birr
1 Project proposal 5,000.00
2 Licensing fee and others
Total 5,000.00

Summary of Total initial investment cost

SN Cost in Birr
SN Description Cost in Birr
1 Land, building & construction 4,180,000
2 Building machines &Equipment’s 320,000.00
3 Vehicle 300,000.00
4 Office Equipment 150,000.00
5 Total fixed investment cost 4,950,000
6 Salary expense 400,000.00
7 Operation Expense 350,500
8 Pre service Expense 50000.00
9 Total Working capital 831,836.00
10 Sub total 6,582,336.00
11 Contingency (10%) 658233.6
Total initial investment capital 7,260,569.6

5.3. Financial Statement

5.3.1. Income loss/statement
Project revenue and production costs are listed and compared to see whether the project generate
profits or not. Starting from first year of the project operation, the project will generate a
reasonable amount of net profit for the owners throughout its life period. Profit and loss
statement shows that the project will generate net profit of ETB 1,073,842.07 in the first year and
increase to ETB 1,288,672.725 starting from the third year of the project life and hence it is
found to be profitable.

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 Mixed use Building profit/Loss Statement
Revenue Year 1 Year 2 Year 3 and after
Rental Income 1,585,000.00 2,500,000.00 3,975,000.00

Expenses
Salary Expense 235,440.00 313,920.00 392,400.00
Operating Expenses 200,661.06 267,548.08 334,436.20
Deprecation Building 323,242.95 323,242.95 323,242.95
Deprecation Bld. Machineries 22,780.00 22,780.00 22,780.00
and Equip.
Deprecation of Vehicle 60,000.00 60,000.00 60,000.00
Deprecation office Equip 11,245.00 11,245.00 11,245.00
Interest Expense3 354,548.95 319,094.055 177,274.475
Lease payment4 4,819.05 4,819.5 4,819.05
Total Expense 1,230,939.05 1,339,031.25 133,5298.65
Profit before Tax 534,061.00 1160968.75 2,639,701.35
Tax (30%) 160,218.03 348,290.625 791,910.405
Net profit 373,842.07 812,678.125 1,847,790.945

5.3.2. Cash flow Statement

Year Year 0 Year 1 Year 2 Year 3 and after
Equity Capital 2,450,000
Loan principal 4,550,000
Net sale 1,785,000 2,380,000 3,975,000
Total Cash in flow 7,000,000 1785000 2380000 3,975,000
Cash payment
Salary Expense 0 235,440 313920 392,400
Investment 3,872,679.50 0 0 0
Pre operating Expense 5,000 0 0 0

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Operating Cost 0 200,661.6 267,548.8 334,436.20
Loan repayment3 0 709,097.9 673,643 531,823
Lease payment 0 4,819.5 4,819.5 4,819.5
Tax payment 0 166,218.0 312,290.625 491,910.405
Total payment 3,877,679.5 1316237.3 1,572,221.925 1,755,389.105
Cash surplus/ deficit 3,127,320.5 468762.7 807778.075 2219611
Cumulative cash flow 136572.7 944350.775 3919350.775

5.4. Financial analysis

i. Profitability
According to the projected income statement, the building will start generating profit in the 2 nd
year of operation. Important ration such as profit to total sales, net profit to equity (Return on
equity) and net profit plus interest on total investment (return on total investment) show as
increasing trend during the lifetime of the project. The income statement and the other indicators
of profitability show that the project is viable.

Ii.Net present value

As you can see in the above figures the expected cash flow of the project for four years is
1,785,000-2,180,000-3,975,000-3,000,000. The present value of the above cash flows is
1,622,727 for the first and 2,066,115.7 for the second 2,986,476.3, for the third and 2049040.37
for the fourth year.
Net present value is the difference between the present values of all expected cash flow
(discounted at the required rate 10% in our case) minus investment cost which is 7,000,000.

NPV=PV-INVESTMENT COST
8,724,359.37-7,000,000=1,724,359.37

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 IRR =46.5%

6. The economic benefits of the project

The envisaged project deemed to add to the economic development of the nation in general and
zone and town in specific with following ways:

6.1. Source of Revenue

As public policy of any nation, the government collects different forms of taxes from different
business organizations and individuals. Among the different forms of taxes, business income
taxes, payroll income tax and VAT are collected from undertaking business activities. Therefore,
the building will serve as sources of revenue for the town as well as for the region.

6.2. Employment opportunity

One of the problems that our country faced is unemployment. Therefore, the current objective of
the government is working on tackling the problem of unemployment and fostering the
development process either through creating self-employment or employment in other
organization. Hence, this project will hire 26 individuals and more than eighty individual during
construction.

6.3. Sources of social service

In addition to serving as a source of employment and income for the region, the project renders
social services for different group of people. Hence, it is also providing the following services;
 Serve as a source of mental satisfaction for the different users,
 Since, the center encompasses different recreational areas; it will divert the attention of the
users from different evil deeds.
 It deemed to minimize the demand for shops and other bundles of services in the area.
Furthermore, it serves as the pilot experience and ground for other investor to enter in to such
kinds of urban development. It also contributes on the efforts made on as a character given
building for physical development pattern of the townscape.

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 7. Environmental impact of the project
The EIA of the project activities was determined by identifying the environmental aspects and
then undertaking an environmental risk assessment to determine the significant environmental
aspects. The environmental impact assessment has included all phases of the project namely
construction phase and operational phase.
The building has both positive and negative impact
Positive impact of the project

7.1. The positive impact of the project is:-

 eneration of employment opportunity
 Source income for the government through business income tax
 Income generation for the promoter
 Being exemplary for other investors who want to engage in the same business line.

7.2. Negative impact of the project

The project has the following negative impacts:
1. noise and Dust emission during Construction
There are some noises during the construction due to the construction operation and the
company will use construct the construction during the day time. Again there is the
emission of dust which will be mitigated by sprinkling water on the service.

2. problem on workers on construction

During construction there are some problems that will materialize on workers. These are:
damage on operation by using machines, construction materials and others. To mitigate such
impact the company will provide safety insurance and safety equipment’s.

Wastages during operation

During operation there are some wastes emitting from the mixed use building. These are
wastes from the latrine and will be mitigated by using modern waste treatment technology.

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8. Risk Assessment
The initial Risk Assessment attempts to identify, characterize, prioritize and document
a mitigation approach relative to those risks which can be identified prior to the start of
the project.

The Risk Assessment will be continuously monitored and updated throughout the life
of the project, with monthly assessments included in the status report (see
Communications Plan) and open to amendment by the Project Manager.

Because mitigation approaches must be agreed upon by project leadership (based on

the assessed impact of the risk, the project’s ability to accept the risk, and the feasibility
of mitigating the risk), it is necessary to allocate time into each Steering Committee
meeting, dedicated to identifying new risks and discussing mitigation strategies.

The Project Manager will convey amendments and recommended contingencies to the
Steering Committee monthly, or more frequently, as conditions may warrant.

9. CONCLUSTION
THE private sector plays a major role in accelerating the economic growth of the country.
According to The economic policy of Ethiopia, private investment and large investment rapid
and sustainable growth of the macro economy ;this mixed use of building in Tigray region

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inAdigrat is began with initial investment 700,000 ETH.BIRR and generate employment
opportunity for 26 permanent employment and increasing economic growth of the country.

Reference.

Ethiopia construction agency.

We can refer Different material bookMany Internet Web sites

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