FEASILIBITY STUDY

OF
250 HECTARES

BANANA CARDAVA PLANTATION AND PROCESSING PLANT

PRESENTED BY:

BANGSAMORO AQUA-CULTURE AND

HYDROPONICS DEV’T. CORP.

IN

PARTNERSHIP

WITH

KABALUKAN CARDAVA GROWERS, INC.

Center, Bakat, Rajah Buayan, Maguindanao

2019
 TABLE OF CONTENT

1. Letter of Intent………………………………………………………………………i

2. Project Information

a. Executive Summary………………………………………………………...1

b. Project Justification………………………………………………………...1

c. Resources on Agriculture…………………………………………………1

d. Sectoral Objectives………………………………………………………….2

e. Regional and National Objectives…………………………………….2

3. Budgetary/Investment

f. Land Preparation and development…………………………………3

g. Method of Planting………………………………………………………….4

h. Farm Equipment………………………………………………………………5

i. Operational Cost……………………………………………………………..6

j. Office Maintenance………………………………………….……………..6

k. Income Statement of Plantation……………………………………..7

l. Income Statement of Banana Chips………………………………..8

m. 5.5 years Operation projected……………………….……………….9

n. Annual administrative Cost…….……………….…………………….10

o. Office Supplies and Maintenance…………………………………..10

p. 5.5 years projected income…………………………………………….17

 BANGSAMORO AQUA-CULTURE AND HYDROPONICS DEV’T. CORP.
Panda Palace Hotel, Sinsuat Avenue, Esteros RH9, Cotabato City 9600 Phils.
SEC Reg. No. CS201434652 TIN 462-220-387
Mob; +639103171309

Apr. 19, 2019

H.E. HUSSAIN DAEN QAMZI

Board Member
DUBAI ISLAMIC ECONOMY DEVELOPMENT CENTRE
14th Floor, Dubai World Trade Centre Tower
P.O. Box 9522, Dubai, UAE

Dear Sir/Maddam,

Our Company is now undertake agricultural project entitled: CARDAVA BANANA PLANTATION AND
BANANA CHIPS PROCESSING PLANT located in Five (5) Sittios consisting of Barangay Bakat, Rajah
Buayan, Maguindanao, this project directly involved of 250 hectares Cardava Banana Plantation of
each sittios under private rights of the individual person composed of KABALUKAN CARDAVA
GROWERS, INC. which has concession to this Company. This land is suitable for Cardava Banana
Plantation.

Anent to this, we are intent to borrow treated as loan from your good company amounting ($1M USD)
one million US dollars to sustain funding requirement of the Cardava banana plantation and
processing plant project payable in five (5) years from the date of funding is delivered.

The said project design to provide export quality of Banana Chips products and intent to supply Middle
East and Asian Country.

We hope this letter of intent will merit your response and approval.

Truly Yours,

ARMANDO T. SANSO
President
 PROJECT STUDY

EXECUTIVE SUMMARY

Project Title : 250 hectares Cardava Plantation and Chips Processing Plant

Project Site : Sittio Kabalukan, Bakat, Rajah, Buayan, Maguindanao

Principal Proponent : Bangsamoro Aqua-culture and Hydroponics Dev’t. Corp.

Office Address : Panda Palace Hotel, Sinsuat Avenue, Esteros RH9, Cotabato City

Contact Person : Mr. Armando T. Sanso, Chairman/President

Contact Details : Mob;+639103171309/+639167954685

Email Add: armandosanso@yahoo.com

Amount requested : P52,000,000.00 $ 1M USD more/less

PROJECT JUSTIFICATION

Cardava Bananas have been gr own for a very long time throughout the Philippines either for
consumption by farmers or for sale in local markets. Bakat, Rajah Buayan, Maguindanao is estimated
land area of 25,000 hectares of its agricultural land a r e i d e a l t o planting a bananas with
no need to expanses of fertile yet undeveloped land feasible for banana production.

These undeveloped areas w i l l be used as the land base for this project. An aggregated land
area of estimated 25,000 hectares for a project total of 250 hectares will be utilized for this
project. This project will involve farmers within the barangay in the Municipality in Municipality
of Rajah Buayan. It will also u t i l i z e coconut areas t o be planted under w i t h banana. Each
banana farmer will earn at least P28, 000.00 per hectare every six months or an average of not
less than P4, 000.00 a month as their additional income. If this project will be realized, it needs
a capital of about P7,546,900.00 to earned P43,125,000.00 after 18 months after planting of
250 hectares in succeeding 17 times harvest in five and one half years earned is about
P733,125,000.00.

RESOURCES ON AGRICULTURE

Each banana farmer will earn at least P28, 750.00 per hectare every three months or an average
of not less than 4,000.00 a month as their additional income. However, as shown in the Tables
below, with 72.80% of Bakat families below income threshold (most of them found in the
project pilot sittio) who can barely feed themselves, these farmers will need capital in order

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to have good quality and high production. Such an activity requires high inputs for land
preparation, fertilizers and fencing, among others. The farmers will need capital, new technology
and marketing support to encourage them to engage in this activity. Having an alternative source
of livelihood through this project will help augment household income for these families

Rajah Buayan is a 6th class municipality in the province of Maguindanao, Philippines. According to
the 2010 census, it has a population of 17,423 people in 4,901 households.
Rajah Buayan is politically subdivided into 11 barangays. Namely: Baital, Bakat, Dapantis, Gaunan,
Malibpolok, Mileb, Panadtaban, Pidsandawan, Sampao, Zapakan (Pob.) and Tabungao

PROJECT OBJECTIVES

The project seeks to contribute to the overall goal of poverty reduction in the rural areas to
effect equitable income distribution, improved food security, enhance competitiveness and
resource efficiency of small farmers through diversified agricultural system with necessary
support services and facilities.

General: The project aims to support the efforts in the agriculture sector to increase agricultural
productivity and incomes of small farming families. It aims to uplift the living condition of
farmers through Increased/improved banana productivity in the 5 sittios of Bakat, Rajah Buayan
Municipality covering a total of 250 hectares.

Specific: The project specifically aims to achieve the following:

1. Provide livelihood and employmeny opportunity

2. Utilize the idle land into productive banana
3. Increase farmer’s income in the Barangay out of 5 sittios.
4. Provide additional income and enhance food security at the household level.
5. Establish a central processing plant for banana products.

SECTORAL OBJECTIVES:

The project objectives are in line with the objective of the Agriculture sector to increase
agricultural productivity and incomes of small farming and fishing families in the rural areas

REGIONAL AND NATIONAL OBJECTIVES:

Supports the regional and national objectives of 1) Developing at least 2 million hectares
of new land for agribusiness in order to contribute 2 million out of the 10 million jobs targeted
as a legacy by 2010; 2) Transforming idle agricultural lands into productive agribusiness
enterprises to fully utilize existing agriculture resources 3) Promoting off- and non-farm
enterprises (including agri-processing) in the agribusiness lands to increase and stabilize rural
income. (Source DA)

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 250 has. proposed Cardava Plantation
Bakat, Rajah Buayan, Maguindanao.

Budgetary

1. Land Development
a. Area Clearing P2,500.00 per ha.
b. First Flowing P1,500.00 per ha.
c. Second Flowing and leveling including canal P2,500.00 per ha.
d. Lay out P1,000.00 per ha.
e. Digging of 1,000 hole P10,000.00 per ha.
f. Planting and Fertilization of 1,000 tissue/ha. P10,000.00 per ha.
Total P27,500.00 per ha.
x 250 has.
Total Cost P6,875,000

2. Purchase of Planting Materials/Fertilizers/Pesticides

a. Purchase of banana suckers/seedlings P15,000.00 per ha.
b. Purchase of fertilizer chicken dung P6,900.00 per ha.
Total P21,900.00 per ha.
3. Establishment of a Banana Processing Plant
a. Warehouse P500,000.00
b. Two units Slicer P100,000.00
c. Utencils P50,000.00
Total P650,000.00
Invesment Need TOTAL P7,546,900.00
Administrative Expenses on 1.5 years of Operation Php 22,815,850.00
Farm Equipments Php 12,340,000.00
Total Cost Investment Capital Php 42,702,750.00

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Example Tissue Planted

4
Farm Equipments

Grader 1 unit Php 1,300,000.00

Backhoe 1 unit Php 1,200,000.00
Dumptruck 1 unit Php 800,000.00
Farm Tractor 1 unit Php 1,800,000.00
6 wheeler Forward (Surplus) 1 unit Php 1,300,000.00
Elf (surplus) 2 units Php 1,000,000.00
Fruit Cart for hauling 1 unit Php 500,000.00
GenSet 1 unit Php 1,000,000.00
Power Spray 1 unit Php 275,000.00
Grass Cutter 5 units Php 75,000.00
Motor Tank for Water Sysytem 1 Php 50,000.00
Fuel Tank ( 5,000 liters capacity ) 1 Php 150,000.00
Welding Machine 1 set Php 60,000.00
Oxygen and Acethylene 1 set Php 50,000.00
Other Farm Tools Php 300,000.00
Pick up/ SUV for Admin Car Pool 1 Php 1,200,000.00
Motorcycle 4 units Php 480,000.00
Ambulance 1 unit Php 800,000.00
Total Cost Php 12,340,000.00

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 Operational Cost

Administrative Cost
Personnel
Farm Manager 1 12,000.00 / month x 18 mos. = PHP 216,000.00
Agriculturist 1 10,000.00 / month x 18 mos. = 180,000.00
Farm Supervisor 2 7,000.00 / month x 18 mos. = x2= 252,000.00
Farm Leadman 5 6,000.00 / month x 18 mos. = x5= 540,000.00
Accounting Head 1 10,000.00 / month x 18 mos. = 180,000.00
Admin Head 1 10,000.00 / month x 18 mos. = 180,000.00
Office Staff 10 7,000.00 / month x 18 mos. = x10 = 1,260,000.00
Time Keeper 2 6,000.00 / month x 18 mos. = x2= 216,000.00
Warehouse Man 2 6,000.00 / month x 18 mos. = x2= 216,000.00
Security Guard 10 6,500.00 / month x 18 mos. = x10= 1,170,000.00
Farm Maintenance 100 6,000.00 / month x 18 mos. = x 100= 10,800,000.00
Bonus 135 Employee and workers 5,000 675,000.00
Philhealth/SSS Benefits 135 Employee and workers x 3600.00 of 1.5 year is equal to 486,000.00
Office Supplies Maintenance
Office Supplies 2,000.00 x 18 mos. = PHP 36,000.00
Communication 1,500.00 x 18 mos. = 27,000.00
Meals - Meetings and Conference 3,000.00 x 18 mos. = 54,000.00
Employees Subsistence 9,450.00 x 18 mos. = 170,100.00
Utilities- Light 3,000.00 x 18 mos. = 54,000.00
Utilities- Water 3,000.00 x 18 mos. = 54,000.00
Travel Expense 2,000.00 x 18 mos. = 36,000.00
Trainings 250.00 x 18 mos. = 33,750.00
Entertainment 30,000.00 4 session 120,000.00
Fuels for Equipments Used 300,000.00
Equipment Maintenance 300,000.00
Fertilizers 1,000.00 / sack 250 x 5=1,250 x4=5,000= 5,000,000.00
Repairs and Maintenance- Bldg 130,000.00
Repairs and Maintenance- Office Equip 130,000.00
Total Amount PHP 22,815,850.00

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 TWO HUNDRED FIFTY HECTARES CARDAVA PLANTATION

Projected Production Income (simultaneous type)

BANANA CARDAVA PLANTATION

Assumption

250 Hectares

1,150.00 Hills/Hectares
x 25 Kls./Bunch
28,750.00 Total kls./ha./year
x 6.00 Pesos/kl.Minimum price in whole year
P 172,500.00 Pesos Total Worth/Hectare
x 250 Hectare propose Planting
P 43,125,000.00 Total Price in One Harvest in 16 Month after planting Total of 250 Hectares
x 17 Times harvest in 5 1/2 years
P733,125,000.00 Total Income in 5 1/2 years
x 5% Mortality & Climate Change
P 3,665,625.00

P733,125,000.00 Total income in 5 1/2 years

P 3,665,625.00 Mortality & Climate Change
P 729,459,375.00 Total Income of Plantation

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BANANA CHIPS FACTORY PROJECTED INCOME STATEMENT

Projected Production of Banana chips finish product

Assumptions: 1,150 bunchs per hectare

1,000 Raw Banana peeled per hectare

x40% Recovery kls per Hectare
x400
= Kilos per ha.
x25%
x Recovery of first fry
100 kls.
= Finish Product of first fry per hectare
÷
6.36kls Per Cartoon or Box
15.72= Per Cartoons/Boxes per Operation
3 x Cycle Harvest an average of three shooting Banana Heart per day per hectare
47.16= Total Boxes/Cartoons production in a week per hectare

250 Raw peeled Banana of 250 has.

47.16
x Total Boxes per hectare
11,790
= Boxes per harvest Cycle or delivery

11,790 Boxes per harvest Cycle or delivery

426.12
x Market price
5,023,954.80
= P Total per week
75,359.32
- P 15% Accidental Expenses, Custom Cuties, Van Rental for Export
4,948,595.48
= P Total income per week
4 x Week of month
19,794,381.92
= P Per month
12 x Month of the Year
237,532,583.04
= P Per year from 1.5 year after planted of 250 has.

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First 5.5 years operation, estimated gross sale for 250 has. planted
1.5 year investment Capital Php 30,362,750.00
1st Harvest Estimated Gross Sale on the 2nd year of operation Php 237,532,583.04
3rd year estimated gross sale Php 237,532,583.04
4th year estimated gross sale Php 237,532,583.04
5th year estimated gross sale Php 237,532,583.04
Estimated Gross Sale for 5.5 years of operation Php 950,130,332.16
Purchase of Banana Raw Php 729,459,375.00
Estemated Gross Profit Php 220,670,957.16

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Annual Administrative Cost
Personnel
Farm Manager 216,000.00 144,000.00 144,000.00 144,000.00 144,000.00
Agriculturist 180,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Farm Supervisor 252,000.00 168,000.00 168,000.00 168,000.00 168,000.00
Farm Leadman 540,000.00 360,000.00 360,000.00 360,000.00 360,000.00
Accounting Head 180,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Admin Head 180,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Office Staff 1,260,000.00 840,000.00 840,000.00 840,000.00 840,000.00
Time Keeper 216,000.00 144,000.00 144,000.00 144,000.00 144,000.00
Warehouse Man 216,000.00 144,000.00 144,000.00 144,000.00 144,000.00
Security Guard 1,170,000.00 780,000.00 780,000.00 780,000.00 780,000.00
Farm Maintenance 10,800,000.00 7,200,000.00 7,200,000.00 7,200,000.00 7,200,000.00
Bonus 675,000.00 675,000.00 675,000.00 675,000.00 675,000.00
Philhealth/SSS Benefits 486,000.00 486,000.00 486,000.00 486,000.00 486,000.00
Office Supplies Maintenance

Office Supplies 36,000.00 24,000.00 24,000.00 24,000.00 24,000.00

Communication 27,000.00 18,000.00 18,000.00 18,000.00 18,000.00
Meals - Meetings and Conference 54,000.00 36,000.00 36,000.00 36,000.00 36,000.00
Employees Subsistence 170,100.00 545,400.00 545,400.00 545,400.00 545,400.00
Utilities- Light 54,000.00 36,000.00 36,000.00 36,000.00 36,000.00
Utilities- Water 54,000.00 36,000.00 36,000.00 36,000.00 36,000.00
Travel Expense 36,000.00 24,000.00 24,000.00 24,000.00 24,000.00
Trainings 33,750.00 405,000.00 405,000.00 405,000.00 405,000.00
Entertainment 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Fuels for Equipments Used 300,000.00 160,000.00 160,000.00 160,000.00 160,000.00
Equipment Maintenance 300,000.00 160,000.00 160,000.00 160,000.00 160,000.00
Fertilizers 5,000,000.00 3,750,000.00 3,750,000.00 3,750,000.00 3,750,000.00
Repairs and Maintenance- Bldg 130,000.00 90,000.00 90,000.00 90,000.00 90,000.00
Repairs and Maintenance- Office Equip 130,000.00 90,000.00 90,000.00 90,000.00 90,000.00
Total Amount 22,815,850.00 16,795,400.00 16,795,400.00 16,795,400.00 16,795,400.00

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Projected Income Statement for 5.5 years of Operation Banana Plantation
250 Hectares Planted
Year 1.5 Year 2.5 Year 3.5 Year 4.5 Year 5.5
1.5 year Expenses PHP 22,815,850.00
Gross Sales of Banana Plantation PHP 43,125,000.00 PHP 42,909,375.00 PHP 42,909,375.00 PHP 42,909,375.00
Gross Sales of Banana Chips Factory + PHP 237,532,583.04 + PHP 237,532,583.04 + PHP 237,532,583.04 + PHP 237,532,583.04
Total Income = PHP 280,657,583.04 = PHP 280,441,958.04 = PHP 280,441,958.04 = PHP 280,441,958.04
Operational/Admin Cost - PHP 22,815,850.00 - PHP 22,815,850.00 - PHP 22,815,850.00 - PHP 22,815,850.00
Profit Cost = PHP 257,841,733.04 = PHP 257,626,108.04 = PHP 257,626,108.04 = PHP 257,626,108.04
Loan Capital PHP 30,362,750.00
Gross Profit PHP 227,263,358.04

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