Fakir Agriculture Complex LTD

Fakir Agriculture Complex Ltd.
PROJECT SUMMARY
01. Name of the project : FAKIR AGRICULTURE COMPLEX LTD.
02. Project Location : Uttar Sangkar Pasa, P.O-Bashbaria, P.S & Dist-Pirojpur
03. Head Office : 237/1 Maternity Road, Perojpur Sadar, Perojpur.
04. Type of the Project : Dairy, Fish culture, Poultry & gardening
05. Status of the Company : Private Limited Company
06. Brief description of the Project:

The proposed project in the name and style of FAKIR AGRICULTURE COMPLEX LTD.
envisages for setting up a modern dairy, fisheries, poultry & gardening farm. There is a tremendous
demand of fish and meat in the market to meet the protein of the people of Bangladesh. So the
government of Bangladesh is giving emphasis for setting up this kind of project. The fixed cost of
the proposed project has been estimated at Tk.643.65 Lac and the estimated initial working capital is
Tk.123.26 Lac. It is expected that the project will run at 75%, 80% and 85 %, at 1st year, 2nd year
and 3rd year respectively and will generate net profit of Tk.176.86 Lac, Tk.247.23 Lac and
Tk.268.70 Lac respectively.
07. Cost of the Project: Fixed Cost = Tk.643.65 Lac

Working capital = Tk.123.26 Lac
Total Cost = Tk.766.91 Lac

08. Means of Finance:
a) EEF Fund:
i. EEF on Fixed Cost = Tk.266.64 Lac
ii. EEF on W. Capital = Tk. 98.61 Lac
Total EEF Fund = Tk.365.25 Lac
b) Sponsor's Equity:
i. Equity on Fixed Cost = Tk.377.01 Lac
ii. Equity on W. Capital = Tk. 24.65 Lac
Total Sponsor's Equity = Tk.401.66 Lac
The Overall mode of Financing of the Project:
Amount
Sources of Fund % of Total cost of the project
(Tk. in Lac)
A. EEF Fund 365.25 49.00%
B. Sponsor's Equity 401.66 51.00%
Total Cost of the Project 766.91 Lac 100.00%
09. Debt-Equity Ratio : The Ratio of EEF Fund and Sponsor's Equity is 49: 51
Feasibility study report -1-

10. Marketing aspects:
Although agriculture is the largest component of our GDP, dairy, fisheries & poultry (duck) are not
playing a major role due to different constraints like traditional breeding, feeding, treatment system
and technology. This is why the ultimate out put of these major components of agriculture sector is
not well enough. The developed countries like Australia, New Zealand, Netherlands, Denmark,
China, Vietnam, India etc have invented most updated technology to develop in this sector
independently. These countries meet up one-third portion of milk, meat and fish consumption in the
world. But in this age of globalization, as an agricultural country we have to take necessary modern
and scientific steps to survive in this competitive world. We need modern Dairy, Fisheries & Duck to
accelerate the growth of this sector.
11. Economic aspects:

After successful implementation of the project, it will create job opportunity for 40 persons in
different units. The project will contribute about Tk.480.49 Lac per year (from 3rd year) to GDP at a
market value. The macro-economic effect will change the socioeconomic condition of directors, the
employee and the country as a whole.
12. Financial aspects:

The project has found financially viable. The detail of financial aspects is shown in the related
chapter of the report.
I. Break-Even Analysis:
Break-even analysis is carried out on the basis of cost and sales of 3rd year of operation. The project
is expected to break-even 19.74% of assumed capacity utilization with sales revenue of Tk.154.38
Lac.
II. IRR and BCR:

The expected IRR (Internal Rate of Return) is 37.82% and BCR (Benefit-Cost ratio) of the project is
1.70:1.00
III. Debt Service Coverage Ratio:

The debt service coverage ratio of the project is 2.67, 3.39 and 3.59 times for 1st Year, 2nd Year and
3rd year respectively.
IV. Financial Evaluation: Figure Tk. in Lac

Operating Years
1st year 2nd year 3rd year
(75%) (80%) (85%)
Sales 607.47 728.39 776.59
Gross profit 313.95 414.73 442.71
Gross profit to sales or Turnover (%) 51.68% 56.94% 57.01%
Operating profit 293.29 390.04 414.68
Operating profit to sales (%) 48.28% 53.55% 53.40%
Net profit to sales (%) 29.11% 33.94% 34.60%
Net profit to equity (%) 44.03% 61.55% 66.90%
13. Financial Institutions Applied For Loan: EEF Fund of Bangladesh Bank

14. Conclusion and recommendation:

The detail financial forecast shows that the project is a viable considering all aspects. The sponsors
are educated and experienced in various leading business. The directors are also financially sound
and have the real capacity to control all the aspects and efficiency in management. The demand of
the product is very high in the local market. Therefore it can be concluded that the project has the
potentials for investment and the Bank may provide EEF loan assistance to implement the project
successfully so that they can bring contribution to the ultimate development of the country.

1.0. INTRODUCTION
1.1 BACKGROUND:
Bangladesh is a densely populated developing country. Industrial investment is the sector of most
priority of Annual Development Budget for ultimate development of the country. As the country is
mainly agricultural, agro-based industrial development might be the milestone of our economy.
Although agriculture is the largest component of our GDP, dairy, fisheries & poultry (duck) are not
playing a major role due to different constraints like traditional breeding, feeding and treatment
system. This is why the ultimate out put of these three major components of agriculture sector is not
well enough. The developed countries like Australia, New Zealand, Netherlands, Denmark, England,
USA, China, Vietnam and India etc. have invented most updated technology to develop in this sector
independently. These countries meet up one-third portion of milk, meat and fish consumption in the
world. But in this age of globalization, as an agricultural country we have to take necessary modern
and scientific steps to survive in this competitive world. We need modern Dairy, Fisheries & Duck
to accelerate the growth of this sector. With this point of view, after successful completion and
commissioning of the various types of leading businesses in the country, the sponsors of the project
have decided to develop a dairy, fisheries & poultry (duck) firm in the name and style of FAKIR
AGRICULTURE COMPLEX LTD. to accelerate the growth of dairy, fisheries & poultry (duck)
sector in Bangladesh.
1.2 OBJECTIVE:
The objective of the study is to assess the feasibility of the proposed project in terms of market
demand as well as technical, financial, economic and environmental viability of the project.
1.3 SCOPE OF WORKS:

The study was limited to the following aspects of the projects:
1. To assess the financial and technical viability of the project

2. To analyze the market studies for assessing the demand and prospect of the proposed dairy,
fisheries & duck project.
3. To conduct a financial evaluation and sensitivity analysis of the project.
4. To assess the socio-economic and environmental implications of the project.
1.4 METHODOLOGY:
The report has been prepared with the following ways:
• The technical study has been done with the main guideline of UNIDO (United Nations Industrial
Development Organization).
• The market study has been carried out mainly on data / information collected from different
national and international organization and through Internet, discussion with local business
communities.
• The financial and economic analysis is done as per UNIDO (United Nations Industrial
Development Organization) and PMI (Project Management Institute, USA) guidelines based on
real data obtained from engineering estimation and professional judgments.

• The Environmental Assessment has been conducted with the guideline of UNEP (United Nations
Environment Programme) and DoE (Department of Environment) of Bangladesh Govt.
1.5 LIMITATION:
The major difficulty faced in carrying out the study was collection of data / information for
estimation of demand and market prospect of such kind of products. But it has been not so much
difficult because of kind help of different organizations and availability of information and
communication technology.
1.6 REPORT ARRANGEMENT:

Introduction is in the first chapter; management aspects of the project have been discussed in the
second chapter, technical and market aspects in the third and fourth chapter respectively. The
findings of the financial analysis are placed in fifth chapter. The Economic aspects and
Environmental Assessment are included in chapter six and chapter seven respectively. Chapter eight
includes the Risk Analysis of the project and chapter nine includes conclusion and recommendation.
All relevant data, assumptions and calculations are shown in concerned Annexure.

2.0 ORGANIZATION & MANAGEMENT ASPECTS
2.1 INTRODUCTION:
The company should have an effective and well-organized management system according to the
Companies Act, XVIII of 1994 of Government of Bangladesh. As the sponsors are directly related
to various leading business and trade, it will sufficiently help them to manage FAKIR
AGRICULTURE COMPLEX LTD. efficiently.
2.2 ADDRESS AND LOCATION:
Project Location : Uttar Sangkar Pasa, P.O-Bashbaria, P.S & Dist-Pirojpur
Head Office : 237/1 Maternity Road, Perojpur Sadar, Perojpur
2.3 COMPANY STRUCTURE:

The Company is a private limited company within the meaning of section 2(1) clause of the
Companies Act, 1994. The Authorized Share Capital of the Company is Tk.1,00,00,000 (One Crore)
divided into 1,00,000 (One Lac) Ordinary Shares of Tk.100.00 (One hundred) each. The Company
shall have power to increase or reduce it and divide the shares in its capital for the time being into
several classes of shares and to attach there to respectively such preferential deferred or special rights
or conditions as may be determined by or in accordance with the articles of Associations of the
company.
The following are the shares taken by the each subscriber of the directors:
Table 2.3: Company Structure

Name of the subscriber Designation of the Nos. of Share taken Signature of the
Subscriber by each subscriber Subscriber
Md. Mahedi Hasan Kawsar Chairman 5000 Shares
F M Enamul Hoque Litu Managing Director 5000 Shares
Khan Al Kawsar Director 5000 Shares
Total 15000 Shares

2.4 INSTITUTIONAL POLICIES FOR EFFICIENT MANAGEMENT:
1. F M Enamul Hoque Litu shall be the Managing Director of the company and he shall remain in
this office for a period of five years until or unless determined decided by the Board of Directors,
unless he voluntary resigns or become disqualified.
2. For the service to be rendered by the Managing Director shall receive such allowances and the
Board of Directors will determine remuneration from time to time.
3. The Managing Director and other shall have the following power and functions:
a) To receive all money and securities of the company and to pay out the fund of the company all
costs, charges and expenses as preliminary and identical expenses for the formation, establishment
and registration of the company and all other necessary expenses for carrying on the business affairs
of the company.
b) To have general direction, management, superintendence and control of the company and of is
business transaction, property affairs and concerns with full power to purchase, acquire sale, or other
dispose of any goods, merchandise, property, rights or privileges at such price and on such terms and
conditions as he thinks fit with the approval of the Board of Directors.
c) To appoint, suspend, promote, degrade, engage, and dismiss all officers, employees, experts,
clerks, labours and all other persons for temporary, permanent or special service and to pay them out
of the fund of the company.
d) To purchase, take on lease, or otherwise acquire for the company and any property rights or
privileges, which the company is authorized to acquire such price and generally on such terms and
conditions as he thinks fit with the approval of the Board of Directors.

2.5 BACKGROUND AND EXPERIENCES OF THE SPONSORS:
1. CURRICULUM VITAE OF CHAIRMAN
Name : MD. MAHEDI HASAN KAWSAR
Father’s Name : Md. Mofizur Rahman
Mother’s Name : Most. Samsur Nahar Begum
Present Address : Jan Jania, P.O-Namajpur, P.S & Dist- Pirojpur
Permanent Address : Jan Jania, P.O-Namajpur, P.S & Dist- Pirojpur
Date of Birth : March 01, 1982
Religion : Islam (Sunni)
Nationality : Bangladeshi
National ID No : 2695432988397
TIN No :
Education Qualification :
Current Profession : Business
Experiences :
Date--------------- Signature --------------------

2. CURRICULUM VITAE OF MANAGING DIRECTOR
Name : F M ENAMUL HOQUE LITU
Father’s Name : Md. Mofizr Rahman
Mother’s Name : Most. Samsur Nahar Begum
Present Address : Jan Jania, P.O-Namajpur, P.S & Dist- Pirojpur
Permanent Address : Jan Jania, P.O-Namajpur, P.S & Dist- Pirojpur
Date of Birth : March 01, 1982
Religion : Islam (Sunni)
TIN No :
Experiences :
Date--------------- Signature --------------------

3. CURRICULUM VITAE OF DIRECTOR
Name : KHAN AL KAWSAR
Father’s Name : Late Khan Hemayet Uddin
Mother’s Name : Most. Aklima Begum
Present Address : Uttar Sangkar Pasa, P.O-Bashbaria, P.S & Dist-Pirojpur
Permanent Address : Uttar Sangkar Pasa, P.O-Bashbaria, P.S & Dist-Pirojpur
Date of Birth : December 31, 1968
Religion : Islam
TIN No :
Experiences :
Date--------------- Signature --------------------
Feasibility study report - 10 -

2.6 MANAGEMENT AND ORGANIZATION:

The management structure of the proposed FAKIR AGRICULTURE COMPLEX LTD. is
designed in two different styles – one during project development and implementation phase and
another being during operation.
2.7 MANPOWER REQUIREMENT AND COMPENSATION:

The manpower requirement of the proposed project is as follows:
A. Administrative Staff & Their Salaries:

Nos. of Monthly Salary Yearly Salary
SN Designation
Person (Tk. in Lac) (Tk In Lac)
01 Manager 01 20000.00 2.40
02 Veterinary Doctor 01 18000.00 2.16
03 Accounts Officer 02 10000.00 2.40
04 Computer Operator 01 8000.00 0.96
05 Peon 01 5000.00 0.60
06 Driver 01 10000.00 1.20
Sub Total 07 9.72
Two Festival Bonus 1.62
Total 11.34
B. Other Staff & Their Wages:

Nos. of Monthly Salary Annual Salary
SN Name of the Post
Person (in Tk.) (Tk. in Lac)
01 Supervisor 02 8000.00 1.92
02 Machine Operator 01 6000.00 0.72
03 Dairy Attendant 05 7000.00 4.20
04 Fishery Attendant 03 7000.00 2.52
05 Poultry (Duck) Attendant 03 7000.00 2.52
06 Gardener 02 6000.00 1.44
07 Cleaner & Sprayer 02 6000.00 1.44
08 Daily Labour 10 6000.00 7.20
09 Guard/Ansar 05 5000.00 3.00
Sub Total 33 24.96
Two Festival Bonus 4.16
Total 29.12
Total Manpower of the project is = (A + B) = 40 Nos.
Total yearly salary and wages = Tk.(11.34 + 29.12) Lac = Tk.40.46 Lac.

Moreover, during construction and entire operation period of the project, hundreds of man-months
will be required time to time for the successful implementation of the project. The cost of this
purpose has been incorporated with the selling cost of the project.
3.0 TECHNICAL ASPECTS
3.1 PROJECT DESCRIPTION:
3.1.1 Introduction:
The proposed project in the name and style of FAKIR AGRICULTURE COMPLEX LTD. is
agro-based industry. The project will have four major units: one for dairy and fattening, one for fish
culture, one for poultry and another one for gardening unit. The project will not only play a role for
meeting the demand of meat and white fishes but also give an opportunity to the local investors for
economic development of the country.
3.1.2 The objective of the project: The objectives of the project are as follows:
! To establish an integrated agro project for optimum utilization of local resources
! To carry out a business on dairy and fishes to meet the local demand of fresh water fishes
! To support the dairy and fishes as backward linkage
! To establish Bangladesh as self-sufficient in dairy and fisheries
! To contribute for ultimate development of the country
! Employment Generation
! Supply the dairy and white fishes to the users/consumers at a reasonable market price
! Breaking monopoly business & syndicated business
! To contribute to the ultimate development of the country
3.1.3 Description of different unit of the project:
A. Fisheries Unit:
Production Process:
At first the ponds will be dug as per the guidelines of department of fisheries, Bangladesh. After a
few months, adequate water will be supplied to the pond so that the maximum fishes will be
cultivated. The food of the fishes will be thrown into the ponds regularly. For maximum production,
various types of fishes like Telapia, Chitol, Panguash etc. will cultivate. At first the 6 inches fishes of
various species will be thrown into the ponds. The ponds are located in a place where there is
adequate air and sunlight, which are primary condition of pond preparation.
Gross production of fishes:

Name of the Fish Gross production (Pieces)
Telapia 200000
Chitol 200000
Panguash 200000

Preparation of Pond:
The dike s of the pond should be maintained in such a state that no water from outside can enter
except through a dine screen or by rain water, but it has to be ensured that the pond remain free from
any “Weed & Predator” fish. This can keep the pond free from predator fish for a period of minimum
3 years and it is possible to stock fingerlings of the desired species. The time fish culture plan
including draining and liming and fertilizing the pond is the months of March or April. Filling and
stockings of pond by 3 to 4 inches should be done in May or June.
B. Poultry (Duck) Unit:

Production process:
Parent stock day old chicks house-in upped 70 weeks. After 24 weeks age they start laying eggs for
hatching. The small, twin, dirty, and broken eggs are separated. The hatching eggs are sent to the
hatchery and unmatchable eggs are sold as table eggs. After 70 weeks the parent birds are culled.
At the laying house will be the flock remain 70 weeks At each stage the entry and exit of each flock
the house will be thoroughly cleaned, disinfected, sanitized and kept ready for next flock, The
breeders chicks will be house in ‘All in all Out” method. The modern poultry house keeping will
control mortality and increase production egg per hen. It will improve feed conversion by keeping
birds comfortable for best performance, produce more flocks per year by reaching higher weights in
fewer days, maintain consistently higher bird density even during the hottest season and achieve
higher liability and lower mortality. The cost of modern poultry house keeping equipment (chain
feeder, nipple drinker and plastic slats) will be higher than traditional poultry house keeping
equipment but low mortality and high productivity will help the project
Technology & know-how:

The required machinery and equipment will be installed and commissioned under the supervision of
technical experts from the machinery suppliers. The promoters will retain one expatriate poultry
expert for initial one-year operation for implementation proper farm management. Necessary
technical personnel will be recruited for smooth operation, maintenance and quality control.
Expatriate poultry expert local consultant and supplier of parent stock of day old chicks will be
provided necessary technical support.
Poultry & duck management and quality control:

Bio-security: For bio-security all men and vehicle entering the farm will be disinfected.
Vaccination program: Blood test shall be carried out randomly to proper resistance;
immunity and antibody have been developed through the vaccination program.
Cleaning: There will necessary steps to make neat and clean.
Environment control: The poultry & duck houses are maintained at optimum level of
environmental conditions temperature, humidity and wind velocity, by evaporate cooling
system. Chilled water will be supplied to the birds during every hot day to the control
excessive heating of the bird’s body.
Supply of proper quality: Body weights will be taken during the rearing period to ensure
that the growth is normal and as per recommended growth chart of the parent stock.
Quantity of feeds: All incoming feed will be checked to ensure balance and power feed.

Waste disposal and environment impact:

Poultry & duck farm do not generate any harmful or toxic wastes. However, there will be litters,
intestines and feather from the poultry & duck houses. The litters will be sold off while the feathers
and intestines will be disposed in the garbage bins. It is worth to mention that the western world the
intestines and feather are recycled to produce poultry feed after cooking. The farm at large stage
while planning for own feed mill will consider using such protein rich waste in preparing food.

3.1.4 Production capacity and sales:

A. Fisheries Unit:
Total area for Fisheries Unit:
There are 04 ponds which area is 4.00 bigha each.
1. Rui/Catla/Mrigal = 3.20 bigha (water surface is assumed 80% of the total land area)
(for one year) = 256000 fishes x 1500 gm (80000 fishes for per bigha of water surface)
(1pond of 4 bigha) = 384000 kg
Sales Value of Fisheries Unit:

Water Area Stock Servable Weight/pc Total Total Sales
SN Name of Species Price/kg
(in Bigha) No 95% (in gm) (in kg) (Tk. in Lac)
03 Rui/Catla/Mriga
4.80 256000 243200 1500 384000 160.00 614.40
(for one year)
Total 641.40
Total sales value from fisheries unit is Tk.641.40 Lac only
B. Poultry unit: (Duck)

Quantity Rate/Unit Total Sales
SN Items
(in Tk) (Tk. in Lac)
01 Duck 2000 Pcs 180.00 3.60
02 Eggs of Duck 57000 Pcs 9.00 51.30
Total 54.90
N.B.: Each duck will give 300 eggs per year and total egg-giving duck will be 95% of the total duck.
Total sales from poultry unit is Tk.54.90 Lac
C. Dairy & Fattening Unit:

Unit Price Yearly Sales
SN Description Qty
(in Tk) (Tk In Lac)
01 Milk (1000kg/day) 300000kg 45.00 135.00
02 High Breed Beef/Cow 50 pcs 50000.00 25.00
03 Calves 40 pcs 35000.00 14.00
Total 174.00
D. Other income from garden:

The sponsors will plant various types of fruit and coconut trees on the bank of the ponds and in the
surrounding area of the project. The lump sump annual income from tree plantation is Tk.50.00 Lac.
Grand Total sales: = Tk.(A + B + C + D) Lac

= Tk.(641.40 + 54.90 + 174.00 + 50.00) Lac

= Tk.920.30 Lac
3.1.5 Raw Materials:
A. Fish Culture Unit:
a. Procurement of Fingerlings:
Rate/Pcs Total Cost
SN Name of Species Number of Fingerlings
(in Tk.) (Tk. in Lac)
01 Rui/Catla/Mrigal (for one 256000 Nos 20.00 51.20
year)
Total 51.20
b. Feed for Fishes:

Number of Required Food for Fish
SN Name of Species
Fingerlings (in Kg)
01 Rui/Catla/Mrigal (for one 256000 Nos 256000.00
year)
Total 256000.00
N.B.: Most of the feed for fishes will be the waste of duck.
Total cost of fish feeding = 256000.00 Kg @ Tk.30.00 = Tk.76.80 Lac
Total cost of fisheries unit = Tk.51.20 Lac + Tk.76.80 Lac

= Tk.128.00 Lac
B. Poultry (Duck) unit:

Nos./Year Rate/Pcs Total Cost
SN Item
01 Duck 2000 Pcs 50.00 1.00
02 Duck Feed 5.00
Total 6.00

C. Fattening Unit:
a. Procurement of Cows/Beef:
Rate/Pcs Total Cost
SN Item Nos.
01 High Breed Beef for fattening 50 pcs 25000.00 12.50
Total 12.50
b. Feed for Beef/Cows:

SN Item Daily Req./Pcs Yearly Req. Rate/Kg Total Cost
(in Kg) (in Kg) (in Tk) (Tk. in Lac)
01 Feed 50.00
02 Grass 50.00
Total 100.00
Total cost of dairy unit = Tk.12.50 Lac + Tk.100.00 Lac

= Tk.112.50 Lac
D. Fertilizer and Others:

Annual Requirement Total Cost
SN Item
(Lump Sum) (Tk. in Lac)
01 For fish culture unit 15 Lac 15.00
02 For Dairy Unit 10 Lsc 10.00
03 For Gardening Unit 05 Lac 05.00
Total 30.00
Total Cost of Raw Materials = (A + B + C + D)

= Tk.(128.00 + 6.00 + 112.50 + 30.00) Lac
= Tk.276.50 Lac
3.2 PROJECT LOCATION AND ITS SUITABILITY:

The proposed project is to be located at Uttar Sangkar Pasa, P.O-Bashbaria, P.S & Dist-Pirojpur. The
proposed site enjoys all infrastructural facilities of power, open air and sunlight, food of dairy, fishes
and poultry and easy road communication and availability of labor at low rate.
3.3 LAYOUT PLAN: The detail master plan has been shown in the separate design sheet.

3.4. LAND AND LAND DEVELOPMENT:

The proposed project will be located at 150.00 decimal of land. This land area is sufficient for this
kind of project. According to market study the estimated cost of 1290.00 decimal of land is
TK.225.00 Lac (@ Tk.1.50 Lac per decimal). The land needs to be developed. The estimated cost
pond and land development is Tk.20.00 Lac.
Land Schedule:
Dag-463, 464, 466, 467, Khatian-100, Jl-80, Mouza- Sangkar Pasa, P.S & Dist-Pirojpur
3.5 DESIGN, EXCAVATION & SPECIFICATION:

The master plan of the project and excavation and other design works will be within the guidelines of
Bangladesh National Building Code of 1993.
3.6 PROJECT COST ESTIMATION

Cost computation has enumerated under different sub heads, namely:
1. Cost of land including registration;
2. Land Development;
3. Building and Civil Construction;
4. Furniture and Fixtures;
5. Machinery and Equipment;
6. Erection and Installation;
7. Transportation Cost;
8. Security Deposit;
9. Preliminary Expenses.
10. Manpower
The major cost components are described briefly in the following paragraphs. Details of cost
breakdown of the project are shown in Annexure-1.

3.6.1 Building and Civil Construction:
A. Building and Civil Construction:

SN Name of Structure Type of Floor Type of Floor Area Amount
Construction in Sft (Tk. in Lac)
1. Cow Shed -6 Nos Foundation ----- ----- 12.00
Ground Floor Semi Pucca 6000.00 33.00
Sub Total 6000.00 45.00
2. Poultry Shed -5 Nos Foundation ----- ----- 5.00
Sub Total 2500.00 18.75
Office Building Foundation ----- ----- 5.00
3. Ground Floor R.C.C 1500.00 14.25
Sub Total 1500.00 19.25
4. Labour Shed Foundation ----- ----- 2.00
Sub Total 1500.00 8.50
5. Generator & Sub- Foundation ----- ----- 1.50
Station Room Ground Floor Semi Pucca 375.00 3.19
Sub Total 375.00 4.69
Grand Total 96.19
B. Other Civil Works:
SN Name of other civil works Total Cost

(Tk. in Lac)
1 Electrical Cable, Gas Pipe Installation & L.S 10.00
Fittings
2 Other accessories like water, pumps etc L.S 10.00
3 Local Materials & works L.S 5.00
4 Boundary Wall L.S 10.00
5 Overhead Tank L.S 5.00
6 Internal Drainage System L.S. 5.00
7 Internal Road L.S 2.00
8 Main Gate L.S 1.00
9 Worker Toilet L.S 1.00
10 Guard Room L.S 2.00
Total 51.00

C. Contingency @ 5%: Tk.7.36 Lac
3.6.2 Furniture and Fixtures:

This cost head includes the cost of essential furniture for the management office, security personnel,
labors and necessary office equipment for both units. Lump sum cost for this purpose is considered
Tk.10.00 Lac.
3.6.3 Machinery and Equipment:

All most all of the machineries of the project will be procured from the local market. The list of the
machinery is given below:
Local Machinery & procurement of milk cows and seedlings for gardening:
Unit Price Total cost
SN Description Quantity
In Tk (Tk in Lac)
01 Deep Freezer 10 cft 1 No 250000.00 2.50
02 Freezer 805 cft 1 No 75000.00 0.75
03 Deep Tube well 1 Sets 1000000.00 10.00
04 Ceiling Fan (56”) 30 Nos. 2500.00 0.75
05 Transformer (630 KVA, 11/0.415 KV) 1 No 1500000.00 15.00
06 Generator (350 KVA) 1 Nos. 1500000.00 15.00
07 Pick-up Van 1 No 2200000.00 22.00
08 Machineries & equipment for fisheries unit 1 Lot 500000.00 5.00
09 Computer with printer and other accessories 2 set 75000.00 1.50
10 Fire Distinguisher 1 lot 500000.00 5.00
Telephone, Fax, Internet connection, Mobile,
11 1 lot 100000.00 1.00
wireless communication etc.
12 Exhaust Fan (18” Diameter) 30 Nos. 4500.00 1.35
13 Milk Cow 50 Nos. 150000.00 75.00
For Gardening/Tree Plantation (Eucalyptus,
14 L.S 50.00 50.00
Mango, Coconut etc)
Air Conditioner 280 BTU (For cold room for 5 Nos. 95000.00 4.75
15
eggs & hatchery)
16 Laboratory Equipment 1 lot 350000.00 3.50
17 Others 10.00
Total Amount 223.10
Total cost of Local machinery for the proposed project is Tk.223.10 Lac
3.6.4 Erection and Installation:

This cost head includes the cost of erection, installation and commissioning of different machinery of
the proposed project. For this purpose Tk.5.00 Lac has been estimated.

3.6.5 Transportation:
The cost for transportation is about and container charge is will be included in local machineries.
3.6.6 Utilities:
A. Electricity:
Mainly the electricity will be required for lighting the buildings & sheds of the project and also for
running different machinery of the project. For this purpose the estimated annual cost of electricity is
given below:
Source : REB / Diesel Generator
Maximum demand : 25KW for 24 hours
Rate : Tk.5.50/kw
Cost : 25 kw x 24 hrs x 365days x Tk.5.50 + Vat 15%
= Tk.1204500.00 + Vat 15%
= Tk.1204500.00 + Tk.180675.00
= Tk.13.85 Lac
Total Cost for Power is Tk.13.85 Lac.
B. Water Supply:
For the purpose of supplying water to different unit of the proposed project, one deep tube-well will
be sanctioned. Necessary water will be supplied by this own deep tube-well. The cost for sanctioning
tube-well has been incorporated into the cost of local machinery.
D. Fuel & Lubricant:

Fuel and lubricants will be required for keeping fit of different machinery of the project. The
estimated annually cost for this purpose is as given below:
Total Cost
SN Items Unit Quantity Unit Rate
(Tk in Lac)
01 Grease Kg 50 260.00 0.13
02 Lubricating Oil Liter 100 160.00 0.16
03 Diesel Liter 4300 70.00 3.01
Total 3.30
The estimated cost of utilities is Tk.(13.85 + 3.30) = Tk.17.15 Lac
3.6.7 Security Deposit:

The security deposit for electric power and other utilities has been estimated as Tk.2.00 Lac.

3.7 PROJECT IMPLEMENTATION SCHEDULE:
Taking into consideration the time generally required for execution of similar project in our country,
it has been estimated that approximately 6 months will be required to put the industry into
commission from the commencement of execution of work.
The major physical work to be involved for execution of the project includes construction of
necessary buildings & sheds and ancillary works and other activities concerning procurement of
imported machinery, procurement of local machinery and equipment, erection and installation of the
machinery and equipment, trial run etc. The detail implementation schedule will be shown in the
separate sheet of Civil Construction. The project has taken time 6 months for implementation. The
Plan of Implementation schedule of the project is given below: -
Nature of Work 1st 2nd 3rd 4th 5th 6th

Sanction of Loan
Documentation
Approved of Lay out
plan
Civil works & pond
preparation
L/C for machinery
Machinery installation
Trial Production
Commercial Production
3.8 REPAIR AND MAINTENANCE

It includes instantaneous repair and replacement of different items of works required to be done to
keep the project fit for use or to save it from further damage. It covers the works of repair at different
parts of the fisheries unit and other equipment of the production unit. The technical staff of the
project may generally do it. Routine maintenance will also cover the maintenance of the pumps,
generator or any other parts and maintenance of Ponds. The estimated yearly expenses for repair and
maintenance for ponds and buildings are as follows:
Table 3.8: Repair and maintenance Tk. in Lac

Repair and maintenance 1st year 2nd year 3rd year
Building and Ponds 1.00 2.00 3.00
Machinery and Equipment 1.00 2.00 3.00
Total 2.00 4.00 6.00
3.9 SAFETY PROVISION: The project will have adequate safety provisions to fight against fire,
flood, short of electricity, treatments etc.
3.10 TECHNICAL SERVICES AND QUALITY CONTROL:

The concerned technical personnel will ensure the quality of the product with the help of modern lab
facility.
3.11. TECHNICAL GUIDELINES FOR PROPOPSED PROJECT:

The Company will follow the updated guidelines of Bangladesh Livestock Research Institute for
dairy Farming and Fisheries Research Institute for fisheries unit.
1. According to the guidelines, the sponsors of the project are bound to obey the principles farm
preparation, land use, construction regulation and other related policies of the government and the
international standard.
2. The project must have the provision of adequate safety and security for the staff, labors and other
personnel. If necessary, the company is bound to give their compensation according to the local and
national rules.
3. The sponsors of project will provide adequate environmental management facilities.
4. Fuel, lubricant, other chemicals and or insecticides and pesticides must be preserved with proper
labeling and must be disposed with adequate care and responsibility.
5. The project will maintain guidelines of HACCP (Hazard Analysis Critical Control Point), GMP
(Good Manufacturing practices), SSOS (Standard Sanitation Operation Procedures) during operation
period of the project.

4.0 MARKETING ASPECTS
4.1 RATIONALE OF THE PROJECT:

Although agriculture is the largest component of our GDP, Dairy and Fish Farming is not playing a
major role due to different constraints like traditional breeding, feeding and treatment system. This is
why the ultimate out put of these three major components of agriculture sector is not satisfactory.
The developed countries like Australia, New Zealand, Netherlands, Denmark, England, USA, China,
Vietnam, India etc have invented most updated technology to develop in this sector independently.
These countries meet up one-third portion of milk, meat and fish consumption in the world. As an
agricultural country we need to take necessary modern and scientific steps to survive in this
competitive world. We need modern dairy and fisheries to accelerate the growth of this sector. All
these observation of the directors inspired them to develop such a project in their native country. As
the production cost would be minimum and quality would be maintained as international standard,
the project will attract the buyers/consumers of the country. Besides, there are a number of reasons
for undertaking the proposed project.
• Availability of raw materials

• Minimum labor cost.
• Advantage of Agro-based industries in Bangladesh.
• Very high existing and potential demand in local market.
4.2 IMPORTANCE OF FISHERIES AND LIVESTOCK SECTOR IN BANGLADESH:
Fisheries Sector:
The fisheries sector contributes 6.15 % to GDP and 6.28 % to foreign exchange through export. Fish
provides 63 % on national animal protein consumption (Department of Fisheries, 2002). Fisheries
sector plays a significant role in rural employment generation and poverty alleviation. As Bangladesh
is a land of rivers and there are so many water bodies to cultivate fishes, it should be one of the most
important sectors in our economy. Suitable weather and availability of free water is a kind of nature.
Dairy Sector:
It is seen from the above table that although milk production has increased year by year but it is
gradual rate of increase is yet much current average growth of population (1.48%). It is also evident
from the above information that current deficit of milk and milk products is 100.825 Lac ton
considering a standard of per day per head milk intake of 0.25 kg. Import of powder milk contributes
a very insignificant portion to meet the existing demand. The picture is clearer from
According to the Directorate of livestock average annual demand of milk in our country is 118.625
Lac ton against supply of only 17.8 Lac ton.

Table: Year wise milk production (1991-2002)

Year Production/Year (in tons) Production growth rate
1991-1992 1350000
1992-1993 1370000 1.48
1993-1994 1490000 8.76
1994-1995 1520000 2.01
1995-1996 1570000 3.29
1996-1997 1590000 1.27
1997-1998 1620000 1.89
1998-1999 1660000 2.47
1999-2000 1700000 2.41
2000-2001 1740000 2.35
2001-2002 1780000 2.30
Source: Directorate of Livestock, Dhaka.
4.3 TREND OF DAIRY, FISHERIES & DUCK CULTURE IN BANGLADESH:

Although the large scale farms are using the high quality dairy and fisheries, in most cases they are
not habituated with the modern feeds. Most of our farmers of the country depend on traditional feeds.
In these feeding items, a large quantity contains a small quantity of protein and other food values. As
a result they cannot get enough nutrients what they need. The ultimate result is less meat, milk and
less protein from fish.
4.4 DEMAND OF MODREN DAIRY AND FISHERIES IN BANGLADESH:

Bangladesh is mainly an agricultural country. But its dairy and fisheries sector is not so hopeful.
Much meat, milk, egg and fish is required to meet up the ultimate demand of animal protein. It is
hopeful that the present government is so much concern for ensuring the animal and non-animal
protein. The demand of protein of the large population of Bangladesh can be easily meet up by the
increasing demand of our meat, milk, egg and fish production. Although our all farmers use
traditional feeds they are more optimistic. They want more output from dairy and fisheries sector. If
they are made aware, certainly they will response positively.
4.5 PRESENT SCENARIO OF MODREN DAIRY, FISHERIES & DUCK USING

COUNTRIES:
The developed countries like Australia, New Zealand, Netherlands, Denmark and Thailand, Vietnam,
China are very strong position in dairy and fisheries sector. They cannot use traditional feeds like
ours; they use modern feeds with high food value. As a result the production of meat, milk, egg and
fish is larger than any other traditional feeds using countries of the world. The ultimate result is that
they are the major exporters of meat and milk of the world.

4.6 ANTICIPATED COMPETITOR:
This type of dairy and fisheries is not new one in the country. As a result the project will not face any
major difficulty in marketing. It is hopeful that all over Bangladesh, there is a tremendous demand of
dairy and fisheries in different areas of the country. If the project is to be set up in proposed site,
there will be change in Dairy and Fish farming thereby accelerating the ultimate growth of animal
protein.
4.7 PROPOSED MARKETING NETWORK AND SELLING ARRANGEMENT:

Marketing is very important for any product. But it is not very difficult for an agricultural country
like Bangladesh. The company will have a well-organized marketing strategy to sell the product
among the farmers and farm owners.
4.8 PROMOTIONAL ISSUES TO ATTRACT BUYERS:

The sponsors of the FAKIR AGRICULTURE COMPLEX LTD. will take some promotional
issues to attract the buyers. Some are as follows:
1. Low pricing: As the product is to be produced in a developing country, the cost of production
will minimum, thereby giving the low pricing facility of the product.
2. Quality control: The Company must maintain the international standard.
3. Participation in National Fair and Exhibition: To expand the national market, the company will
participate in some national fair and exhibition to inform about their products and business policy.
4. Assurance of quick transport: There should have an assurance of quick transport to attract the
buyer.
5. Area representative: The Company may appoint representative for assurance of quality services.
The representative will call on every now and then and try to mitigate the problems of supply.
6. Incentives: As the project is an agro-based industry, it will enjoy the all incentives of agriculture
sector and other facilities of the government of Bangladesh.
7. Packaging and labeling: The international standard will be maintained in packaging and labeling
which will include product name, the production date, the net weight, the expiring date and other
related information. The packaging will be 100 % protected from germ and other pollution.
8. Advertisement: The Company will have a provision for advertisement of their product through
posturing, Radio or other ways to attract the farmers and to inform them the quality of this product.
After a period of time, when the buyers know the quality of thus product, its demand will increase.

5.0 FINANCIAL ASPECTS
5.1 ASSUMPTION FOR FINANCIAL CALCULATION:

Profitability potential of the project has been estimated for three years of operation to assess the
financial viability of the project. The financial projections include estimates of sales, operating cost,
administrative and selling expenses and financial overheads. The statement showing forecasts is
shown in concerned Annexure.
The assumptions underlying the earning forecast are as under:
a) The project will operate for 365 days in a year three shifts operation basis of 24 hours per day;
construction period 6months; grace period 6 months.
b) The capacity buildup has been assumed to be achieved gradually at the rate 75%, 80% and 85%
of estimated attainable capacity in the 1st, 2nd and 3rd of operation and onwards;
c) The price of raw materials and finished goods have been assumed to remain constant throughout
the projected years of operation with the assumption that any increase in the price of raw
materials will be offset by the corresponding increase in the price of finished goods;
d) Sales prices of the proposed product have been assumed on the basis of FOB price of such
products prevailing in the international market;
e) Annual increment of 5 % has been considered for calculation of wages and salaries and salaries
and bonus of two months basic also be provided;
f) Depreciation has been charged on straight line method at the following rates:
Building- 5%
Machinery- 10 %
Other assets- 20 %
g) The project will enjoy tax holiday benefit.
h) Economic life of the project has been assumed to be 15 years without any major replacement.
i) The interest rate for Capital Loan is 15.50%.
j) The interest rate for Working Capital is 15.50%.

k) Total loan period is 6 Years (including construction period-6 months & grace period-6 months).
l) Total number of installment is 20 Nos (Quarterly installment).
5.2 PROJECT COST AND MODE OF FINANCING:

The estimated fixed cost of the project is Tk.643.65 Lac and required working capital of Tk.123.26
Lac. The means of finance is –
Cost of the Project Fixed Cost = Tk.643.65 Lac

Working capital = Tk.123.26 Lac
Total Cost = Tk.766.91 Lac
a) EEF Fund:
i. EEF on Fixed Cost = Tk.266.64 Lac
ii. EEF on W. Capital = Tk. 98.61 Lac
Total EEF Fund = Tk.365.25 Lac
b) Sponsor's Equity:
i. Equity on Fixed Cost = Tk.377.01 Lac
ii. Equity on W. Capital = Tk. 24.65 Lac
Total Sponsor's Equity = Tk.401.66 Lac
The Overall mode of Financing of the Project:

Amount
Sources of Fund % of Total cost of the project
(Tk. in Lac)
A. EEF Fund 365.25 49.00%
B. Sponsor's Equity 401.66 51.00%
Total Cost of the Project 766.91 Lac 100.00%
The item-wise summarized project cost and proposed mode of financing is shown in Annex.-I.
5.3 CAPITAL INVESTMENT PLAN:

It is assumed that 49% of the project cost will be financed through EEF loan and the sponsors will
finance rest 51% of the project cost. The ratio and amount of debt and equity for the project is shown
in Table 5-3.

EEF Fund of Bangladesh Bank and Sponsor's Own Capital at the ratio of 49: 51 which is shown in
Table 5-2.
Table 5.3: Capital investment plan of the project

Sources of Fund Amount Taka in Lac Percentage of the total project cost
EEF Fund 365.25 49 %
Sponsor's Equity 401.66 51 %
Total Cost of the Project Tk.766.91 Lac 100 %
5.4 WORKING CAPITAL REQUIRMENT:

It has been assumed that the will require a fund as working capital adequate enough to meet the
expenses of the project during operation period. The working capital assessment at assumed capacity
is as follows:
Table 5.4: Working Capital Requirement

Year 1st year 2nd year 3rd year
Capacity Utilization 75% 80% 85%
EEF on Working Capital 98.61 108.46 115.94
Sponsor's Equity 24.65 27.11 28.98
Total Working Capital 123.26 135.57 144.92
The detail calculation of working capital assessment is shown in Annex.-VII
5.5 SALES ESTIMATE:

The sales estimate at assumed capacity is Tk.607.47 Lac, Tk.728.39 Lac and Tk.776.59 Lac for 1st,
2nd and 3rd year respectively. The detail is shown in the Annex.-III.
5.6 EARNING FORECAST:

Net profit earning from this project during initial three years are expected to be Tk.176.86 Lac,
Tk.247.23 Lac and Tk.268.70 Lac for 1st, 2nd and 3rd year respectively. The detail calculation of
income statement of the project is shown in Annex. - IV
5.7 CASH FLOW POSITION:

The project is expected to have a comfortable positive cash balance each year. The Closing Cash
Balance is estimated Tk.632.25 at the end of year-3. Detail Cash Flow estimation in the initial three
years is shown in Annex.-V.
5.8 PROFITABILITY OF THE PROJECT

The financial analysis shows a healthy position of the project. The Internal Rate of Return (IRR) of
the project is 37.82% and the Benefit-Cost Ratio (BCR) is 1.70:1.00. The detail calculation of IRR
and BCR is shown in Annex. - XI and Annex.-XII respectively.
5.9 DEBT SERVICE COVERAGE RATIO:

The debt service coverage ratio is found satisfactory. The DSCR of three years are in the following
table:

Table 5.10: Debt Service Coverage Ratio
1st Year 2nd Year 3rd Year
DSCR 2.67 3.39 3.59
5.10 BREAK-EVEN NALYSIS:

The break – even analysis has been carried out the basis of cost and sales data of 3rd year of operation
and is shown its work sheet. The project is expected to break – even at 19.74% of the assumed
capacity with sales revenue of Tk.154.38 Lac i.e. 16.77% of the rated capacity utilization. The work
sheet on break-even analysis is shown in Annex.-IX
5.11. AMORTIZATION SCHEDULE:

The amortization schedule of short/medium term loan and working capital is shown in annex.-x

6.0 ECONOMIC ASPECTS
6.1 RATIONALE OF ECONOMIC ANALYSIS:

The financial or commercial profitability of a project may not give a good measure of the project’s
contribution to the society or to the national economy. In financial or commercial analysis emphasis
is given only to assessing the project’s profit in terms of money but not to the real contribution to the
welfare of the society. To measure a project’s contribution to the society as well as national economy
the following aspects should be taken into consideration:
• Creation of new employment opportunity;
• Downstream impact on the economy;
• Linkage effects; and
• Contribution to GDP.
• Economic Rate of Return
6.2 EMPLOYMENT GENERATION:

After starting up the project, 40 employees will be required to run the project successfully.
Moreover, during the 6-months construction period, hundred of labors, technical persons will be
required for successful implementation of the proposed project which will create an additional
positive impact on the peripheral economy and the job market of the project area.
Table 6.2: Manpower Generation
SL NO Man Power/Designation Number

01 Administrative and Management
02 Direct labor
Total Employee 40
6.3 DOWNSTREAM AND LINKAGE EFFECT:

During and after implementation of the project, enormous effect will be happened on the surrounding
society and economy. Local procurements for the project implementation will have a positive impact
on the over all economy. After implementation that is during the entire operation life of the project,
the labors and the technicians continuously need to buy consumable products from the local markets
for use. To feed the need of the market, numbers of new farms/shops will be coming up creating
additional job opportunity, enterprises as well as new entrepreneurs in the surroundings.

The ratio of local and overseas procurement for the project implementation is shown in Table 6.3.1
and the Intermediate Goods Consumed in the first three years of operation is shown in Table 6.3.2
Table 6.3.1: Sources of procurement

Sl. No. Item Local Imported
1 Machinery 100% 0%
2 Raw materials 100 % 0%
Table 6.3.2: Local Intermediate Goods Consumed Tk. in Lac\

1st year 2nd year 3rd year
(a) Raw materials 207.38 221.20 235.03
(b) Utilities 12.86 13.72 14.58
(c) Depreciation & maintenance 34.74 36.74 38.74
(d) Printing, stationery 2.00 3.00 4.00
(e) Transportation charges 1.00 2.00 3.00
(f) Misc. expenses 0.25 0.50 0.75
Total : 258.23 277.16 296.10
The Economic report is shown in Annex.-XIII
6.4 CONTRIBUTION TO GDP:

In assessing the merits of a project, the objectives of any particular society clearly must be taken into
account. That is, project costs and benefits must be measured against the extent to which they detract
from, or contribute to, achievement of that society’s objectives. At a general level, it is assumed to
have two primary and simultaneous – if not always equally valued – objectives: to increase total
national income, the growth objectives, and to improve the distribution of national income, the equity
objective. In general, therefore, projects should be assessed in relation to their net contribution to
both of these objectives.
As this project is not a national level project, only direct contribution of the project to GDP is
considered for assessing the economic merit of the project. The detail is shown in Table 6-4. For
simplicity of calculation the transfer of payment is not considered to work out the contribution to
GDP.
Table 6.4: Contribution to GDP Tk. in Lac

Items 1st Year 2nd Year 3rd Year
Value Added to GDP 349.24 451.23 480.49
6.5 INTERNAL RATE OF RETURN:

As the Internal Rate of Return (IRR) is 37.82%, the project has desirable potential earning power
of social resources used in the project during assumed project period. The calculation of IRR is
shown in Annex. -XI.

7.0 ENVIRONMENTAL ASSESSMENT
7.1 BACKGROUND:
Now-a-days protection of environment (both natural and human environment) is one of the burning
issues. In response to growing environmental awareness in Bangladesh, over the last few years, the
concerned authorities have now begun to consider the need for sound management approaches for
the protection of the environment without jeopardizing the badly needed industrial and economic
progress. Emphasis, has therefore, been placed on good planning and management systems that are
essential in addition to appropriate technical solution.
Bangladesh is one of the highest population densities in the world. This puts tremendous pressure on
its limited resources and hence there is a direct need for optimal and equitable resources management
programme which can only be effective if they are environmentally sound. Natural and man made
environmental hazards coupled with limited resources makes it imperative to incorporate the
environmental dimension in the delicately balanced ecosystem that exists in Bangladesh.
Since the process of development in Bangladesh is still in its initial stag, it is advantageous to
incorporate the environmental dimension in the development program. For instance, the
incorporation of EIA as part of overall planning process would help avoid some of the adverse
effects of development experienced by industrialized nations.
7.2 INTRODUCTION:
The United Nations Environment programme (1978) EIA as a method “to identify, predict and to
describe in appropriate terms the pros and cons (penalties and benefits) of proposed development.
To be useful, the assessment needs to be communicated in terms understandable by the community
and decision-makers and the pros and cons should be identified o the basis of criteria relevant to the
countries affected.” The purpose of the environmental assessment can therefore be defined as to
serve as a management tool not only to assess impacts but also to improve the quality of decision.
Although FAKIR AGRICULTURE COMPLEX LTD. is an environment friendly project, it is
necessary to be conducted EIA to assess the impacts on surrounding natural and man-made
environment.
7.3 LEGAL FRAMEWORK:

There is a legal requirement for the completion of environmental assessments for a variety of
different types of projects that are considered as having the potential for causing the significant
environmental effects. The Environment Conservation Act 1995 and Environment Conservation

Rules (ECR) 1997 constitutes the legal basis for undertaking EIA for any development industries or
development projects.
7.4 SCREENING OF PROPOSED PROJECT:
As FAKIR AGRICULTURE COMPLEX LTD. project is an agro based producing plant; it is not
antagonistic to the Environment. As per ECR 1997, a normative screening procedure is to be
followed according to which industries and projects have been divided into four stages-Green,
Orange A, Orange B and Red. This screening is based on several important criteria such as type of
project, its size, location and importantly its pollution potential. According to the ECR 1997, the
proposed project is Orange B category project. So the EIA is necessary to assess the environmental
implications of the project.
7.5 EIA PROCEDURES:
7.5.1 Establishment of the baseline: A Baseline study is one of the most important parts of EIA.
This term refers to the collection of background information on the environmental and socio-
economic setting for a proposed development project and it is normally one of the first activities
undertaken in an EIA. A study team surveyed the project area and collected the necessary
information of the proposed project.

7.5.2 EIA methodology: To determine the impacts of the proposed project the study team followed
Simple Checklist method. This checklist is given below:
! General Checklist
a. General Environmental Due-Diligence (EDD) Checklist:
Particulars Yes /No /NA
Possible sources of environmental risk
1. Environmental clearances:
In the proposal for financing, have all the applicable compliances to
environmental laws, i.e. site clearance certificate and environmental Yes
clearance certificate, been obtained from the Department of Environmental
(DOE)?
Have these clearance been obtained after submitting the appropriate
documents for the different pollution category of industries (Green, Orange- No
A, Orange-B and Red)?
2. Land location / site:
Is the land location /site free from vulnerability from an environmental
perspective? Vulnerability can arise due to the issues such as the location Yes
being on the river bank (floods) and on national parks / forests (non-
compliance)?
3. Climate change:
Is the proposal for financing protected against climate change related Yes
impacts such as cyclones, storm surges floods and droughts if relevant?
Borrowers Environmental Management Systems
4. Commitment:
Is the potential borrower’s top management committed to environmental Yes
management?
5. Manpower:
Has the potential borrower planned for manpower resources to address Yes
environmental issues?
6. Skills:
Yes
If so, is the manpower skilled to address environmental issues?
7. Labour / Social issues: Yes

Does the management adopt good practices vis-à-vis occupational health &
safety and associated issues such as child labour, forced labour, wage
compensation, discrimination and working hours?
N.B.: The italicized question are the more important / critical ones.
b. Determining overall EnvRR
The EnvRR is determined as follows:
Criteria EnvRR
If answers to any one of the italicized question is “No” “High”
If answers to all italicized questions is “Yes” 50% or more of the

“High”
non italicized question is “No”
If answers to all italicized questions is “Yes” and if answers to
more than 25% and less than 50% of the remaining question is “Moderate”
“No”
If answers to all italicized questions is “Yes” and if answers to
“Low”
less than 25% of the remaining question is “No”
c. Status of the Project: According to the above General EDD checklist, considering all particulars
it can be said that the proposed project in the name and style of FAKIR AGRICULTURE
COMPLEX LTD. is ‘Low’ in the determination of Environmental Risk Ratings (EnvRR).
7.5.3 Evaluation of the Impacts:

a. Short-term Impacts: From the checklist it has been seen that most of the short-term impacts are
minor category. When the construction and installation activities are completed, the impacts would
be overcome.
b. Long-Term Impacts: The proposed project is one kind of agro based producing plant. So the
project will not bring any severe adverse impact to the adjacent land. Most of the long-term impacts
are positive. If the project is implemented, it will accelerate the ultimate development of the country
bringing contribution to GDP and creating employment opportunities. The project will create a
unique opportunity to sell agro products at optimum market price and the products will be ready to
export. So the project will bring welfare not only for the project sponsors but also for a large number
of poor farmers of the country. Although some long-term impacts are adverse to the natural
environment, most of them have either minor impacts or might be treated easily.

7.6 PROPOSED MEASURES FOR ADDRESSING THE ENVIRONMENTAL ISSUES:

The following measures should be undertaken to mitigate the adverse impacts on the surrounding
environment.
7.6.1 The structural measures:
1. The project will provide necessary safer space to reserve the liquid and solid waste and their
proper treatment according to the Environmental Management Guidelines UNEP.
3. The Company will provide adequate safety provision both for the health of labor and the whole
processing plant.
4. The project will provide the facilities for monitoring different environmental parameters of the
solid and liquid waste regularly, which is the crucial element of HACCP (Hazard Analysis Critical
Control Point) for proper environmental management.
7.6.2 Non-structural measures:
1. There will have an effective Environmental Management Plan for each of the selected protection
and enhancement measures.
2. There should have an implementation schedule indicating the timing of work plan as to when the
protection measures are to be installed and/or be operational.
3. There should have an effective monitoring system of the impacts on the environment during both
construction and operation period.
4. The Company will strictly follow the Environment Conservation Rules (1997) of Bangladesh
Government and Conservation, Management and Mitigation of Adverse Impacts of agro feeds
Industries of UNEP (United Nations Environment Programme).

8.0 RISK ANALYSIS
8.1. RISK FACTORS:

The major risk factors identified for the proposed agro-based project covered in the sensitivity
analysis which may upset the viability of the project are as follows:
(i) Value of selected cost and benefits: The value of selected cost and benefit is estimated as
per market study and international market situation.
(ii) Price of Foreign Exchange: The present increasing rate of the price of foreign currency is
considered and it will not keep much undesirable impacts on project investment and projected
return.
(iii) Timing of Implementation: As the promoters are experienced in different reputed business,
it is a desirable timing of implementation of such kind of project.
(iv) Interest rate: As the economic stability is going on in the country at present, the external
factors will not play significant role to increase the interest rate.
(v) Availability of raw materials: As the major portion of the raw materials will be locally
procured, there is a minimum risk to invest in this sector.
(vi) Quality Control: It is a crucial element for food product. In all cases the international
standard will be strictly maintained so that there will be no undesirable situation in local
market.
8.2 ACCEPTABLE OVERALL CERTAINTY INDEX:

In order to assess risk of the project the following assumption be explained with the certainty index.
Table 8.2 Overall Certainty Index of the Project

Sl no Factors of Certainty Certainty Index Overall certainty
assumed (%) Index (%)
01 Raw materials availability 90
83.13 %
02 Utilities 90

03 Freedom from competition 75
04 Labor availability 100
05 Managerial efficiency 90
06 Technical Capability 80
07 Economic stability 70
08 Free of Disaster 70
As the overall certainty index is 83.13 %, there is minimum risk to invest in this project.
8.3 SWOT Analysis:
Strengths:
The promoters of the company are educated and well experienced in business management and
operation. They have already achieved success in other business ventures and acquired wide
reputation in the business area. They are financially sound and have the affordability of equity
participation against them respective proposed project.
The project location enjoys a good communication network with all infrastructural facilities being
available. There will enable the project to run its procurement and marketing activities with cost
benefit advantages.
Weakness:
In order to have competitive stipulation and cost benefit advantage, the production volumes should
be considerably high which may be difficult to achieve without adequate financial
support/assistance.
Opportunities:
There is a vast market of the fisheries, meat and eggs in our country which is getting an increasing
trend day by day with the increase in population. Maximum raw materials used in this concerned
sector can be obtained locally. This will enable the project to have a cost benefit advantage and
charge low prices to its customers, and this will ultimately encourage the growth of fisheries and
poultry farming considerably.
Government officials (i.e. department of agricultural) provided free consultancy/ advisory service on
technical and technological matter at field level. Training assistance may also be available from
them. The project is environmentally benign and will pose no threat on the environment. Unlimited
growth potential of the sector will create backward linkage.
Threats:

In the long run the project may face some marketing problems, which may arise due to growing up
of increased number of same type of project. Some other farms may enter into the market with
inferior quality products (low-gilding/ verities) and may create some problem for the time being.
There also may a possibility of attacking by some other fatal diseases which will be solved by
disposing complete batch.
9.0 CONCLUSION AND RECOMMENDATION
The detail financial forecast shows that the project is a viable considering all aspects. The sponsors
are educated and experienced in various leading business. The directors are also financially sound
and have the real capacity to controlling aspects and efficiency in management. The demand of the
products is very high in the local market. Therefore it can be concluded that the project has the
potentials for investment and Bangladesh Bank may consider EEF loan assistance to implement the
project successfully so that they can bring contribution to the ultimate development of the country.

FINANCIAL REPORT Annex.-I
Tk. in Lac
The project cost : Equity EEF Loan Total
Item
a) Land 225.00 0.00 225.00
b) Land improvement 20.00 0.00 20.00
c) Building 51.19 45.00 96.19
d) Other civil works 21.72 29.28 51.00
e) Imported machinery 0.00 0.00 0.00
f) Local machinery 38.10 185.00 223.10
g) Internal freight 2.00 0.00 2.00
h) Furniture & Fixture 10.00 0.00 10.00
i) Erection, installation & security deposit for
electric power & gas 7.00 0.00 7.00
j) Development cost :
i) Preliminary and startup expenses 2.00 0.00 2.00
k) Contingencies :
i) For building 0.00 7.36 7.36
Total fixed cost of the project : 377.01 266.64 643.65
Working capital requirement : 24.65 98.61 123.26

Total cost of the project : 401.66 365.25 766.91
Means of Finance : Local Currency Foreign Currency Total
a) Equity 401.66 0.00 401.66

b) Long term loan on EEF 266.64 0.00 266.64

c) Short term loan on EEF 98.61 0.00 98.61
Total 766.91 0.00 766.91

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Fakir Agriculture Complex Ltd.

01. Name of the project : FAKIR AGRICULTURE COMPLEX LTD.

03. Head Office : 237/1 Maternity Road, Perojpur Sadar, Perojpur.

05. Status of the Company : Private Limited Company

06. Brief description of the Project:

07. Cost of the Project: Fixed Cost = Tk.643.65 Lac

Total Cost = Tk.766.91 Lac

B. Sponsor's Equity 401.66 51.00%

Total Cost of the Project 766.91 Lac 100.00%

Feasibility study report -1-

11. Economic aspects:

12. Financial aspects:

II. IRR and BCR:

III. Debt Service Coverage Ratio:

IV. Financial Evaluation: Figure Tk. in Lac

Feasibility study report -2-

14. Conclusion and recommendation:

Feasibility study report -3-

1.3 SCOPE OF WORKS:

1. To assess the financial and technical viability of the project

Feasibility study report -4-

1.6 REPORT ARRANGEMENT:

Feasibility study report -5-

2.0 ORGANIZATION & MANAGEMENT ASPECTS

2.2 ADDRESS AND LOCATION:

Project Location : Uttar Sangkar Pasa, P.O-Bashbaria, P.S & Dist-Pirojpur

Head Office : 237/1 Maternity Road, Perojpur Sadar, Perojpur

2.3 COMPANY STRUCTURE:

Table 2.3: Company Structure

Feasibility study report -6-

2.4 INSTITUTIONAL POLICIES FOR EFFICIENT MANAGEMENT:

Feasibility study report -7-

2.5 BACKGROUND AND EXPERIENCES OF THE SPONSORS:

1. CURRICULUM VITAE OF CHAIRMAN

Name : MD. MAHEDI HASAN KAWSAR

Father’s Name : Md. Mofizur Rahman

Mother’s Name : Most. Samsur Nahar Begum

Present Address : Jan Jania, P.O-Namajpur, P.S & Dist- Pirojpur

Permanent Address : Jan Jania, P.O-Namajpur, P.S & Dist- Pirojpur

Date of Birth : March 01, 1982

Religion : Islam (Sunni)

Current Profession : Business

Date--------------- Signature --------------------

Feasibility study report -8-

2. CURRICULUM VITAE OF MANAGING DIRECTOR

Name : F M ENAMUL HOQUE LITU

Father’s Name : Md. Mofizr Rahman

Mother’s Name : Most. Samsur Nahar Begum

Present Address : Jan Jania, P.O-Namajpur, P.S & Dist- Pirojpur

Permanent Address : Jan Jania, P.O-Namajpur, P.S & Dist- Pirojpur

Date of Birth : March 01, 1982

Religion : Islam (Sunni)

Current Profession : Business

Date--------------- Signature --------------------

Feasibility study report -9-

3. CURRICULUM VITAE OF DIRECTOR

Name : KHAN AL KAWSAR

Father’s Name : Late Khan Hemayet Uddin

Mother’s Name : Most. Aklima Begum

Present Address : Uttar Sangkar Pasa, P.O-Bashbaria, P.S & Dist-Pirojpur

Permanent Address : Uttar Sangkar Pasa, P.O-Bashbaria, P.S & Dist-Pirojpur

Date of Birth : December 31, 1968

Current Profession : Business