Word Document Formatting

Anonymous
timer Asked: Dec 25th, 2017
account_balance_wallet $5

Question description

This task can be done by any writer so long as you have skills in word processing... It isnt much of a task since there is no thinking or research involved.So all i need the margins are really poorly formatted. please indent them properly and set the Titles and subtitles properly.For images, flowcharts and graphs, make sure you insert captions properly so they will be read in the List of Figures, Charts and Tables where appropriate. I will be very keen on indentation, margins, formatting and alignment. Honestly this document is not neat and i really hope if you commit to working on it you will deliver neat work. Dont forget to add table of content, list of graphics for the graphs, charts for the flowcharts and tables for the tables.

Chapter 1 - Samuland Investments Operations ........................................................................................................ 6 1.0.0 Executive Summary ....................................................................................................................... 7 1.0.1 SAMULAND PROJECT ...................................................................................................................... 7 1.0.2 SAMULAND VISION ............................................................................................................................ 7 1.0.3 THE BENEFICIARIES (THE POOR).................................................................................................... 8 1.0.4 DIRECTORS ........................................................................................................................................... 8 1.0.5 FINANCERS ........................................................................................................................................... 9 1.0.6 Poverty Eradication parties ..................................................................................................................... 9 1.0.7 Poverty Eradication Stakeholders ........................................................................................................... 9 1.0.9 PROJECT VISION ............................................................................................................................. 10 1.1.0 PRINCPLES OF OPERATION STRATEGY...................................................................................... 11 1.1.1 PROJECT MISSIOM ......................................................................................................................... 12 1-1-2 SAMULAND PROJECT PLANNED OPERATIONS LAYOUT .................................................. 13 1.1.3 Project Mission .................................................................................................................................... 15 1.1.4 Business Plan ................................................................................................................................ 16 1.1.5 Project Statement of purpose ...................................................................................................... 16 1.1.8 The Project Mode of Operation .................................................................................................. 19 1.1.9 Operation procedure ........................................................................................................................... 19 1.2.0 Formation stage ............................................................................................................................ 21 1.2.1 Project interested parties .................................................................................................................... 23 1.2.4 COMPANY AND THE PROJECT ................................................................................................... 27 1.2.6 Expectations from Samuland Investments Company ...................................................................... 28 1.2.7 COMPANY AND PROJECT OPERATIONS ................................................................................. 28 1.2.8 SERVICES BY THE PROJECT AND COMPANY ........................................................................ 29 1.2.9 SERVICES ............................................................................................................................................ 30 1.3.0 MAIN OPERATIONS INTEGRATION FOR PROVISION OF SERVICES AND MATERIALS 30 1.3.1 Table No. 8 operations centres ........................................................................................................... 31 1.3.2 PROJECT ACTIVITES ORGANIZATION (A=Project activities) ............................................... 32 1.3.3 Project Management Organization ................................................................................................... 33 1.3.4 MANAGEMENT ORGANISATION (Chain of Authority) ............................................................ 34 1.3.5 Chief Officers of the company and Project ....................................................................................... 35 1.3.6 Divisions Analysis ................................................................................................................................ 36 1. 3.7 FORMATION SUMMARY .............................................................................................................. 39 1 1.3.8 GROUNDS FOR TAKING THE PROJECT AS IS PLANNED .................................................... 42 C) OBJECTIVES AND ACHIVEMENTS PLAN...................................................................................... 43 2.0.0 PROJECT COSTING ......................................................................................................................... 46 2.0.1 Projected Land for purchase .............................................................................................................. 46 2.0.2 Land Uses ............................................................................................................................................. 48 2.0.3 Tools and Machines............................................................................................................................. 48 2.0.4 Operations Funds ................................................................................................................................ 50 2.0.6 Projected costs break down. .................................................................................................................. 53 2.0.7 Overhead funds ..................................................................................................................................... 54 2.0.8 Fixed developments............................................................................................................................... 54 2.0.9 Movable assets ...................................................................................................................................... 55 2.1.0 Operating funds ..................................................................................................................................... 55 2.1.1 FUNDS APPLICATIONS .................................................................................................................. 55 2.1.2 Tables list .............................................................................................................................................. 56 2.1.3 PROJECT COSTING SUMMARY................................................................................................. 62 2.1.4 Project Stakeholders (Interested Parties) ......................................................................................... 62 3.0.0 FUND SOURCING ............................................................................................................................. 64 3.0.1 PROJECT FINANCING AND APPLICATIONS ........................................................................... 65 3.0.2 FINANCING FUNDS MOVEMENT ................................................................................................ 66 ............................................................................................................................................................................ 66 3.0.3 External funds ..................................................................................................................................... 66 3.0.4 SOURCES OF INTERNAL FUNDING ............................................................................................ 67 3.0.5 Sales Proceeds (Charging Procedure) ................................................................................................... 68 3.0.6 PROJECT FUND SOURCING AND APPLICATION ................................................................... 68 4.0.0 EXIT PLAN ......................................................................................................................................... 77 5.0.8 ADMINISTRATION .......................................................................................................................... 92 5.1.0 PROJECT MILESTONES ................................................................................................................. 99 Timeline ............................................................................................................................................................. 99 8.0.3 AGRICULTURE LAND DISTRIBUTION STRATEGY ................................................................. 172 Chart No. 22 Agriculture Land use summary ............................................................................................. 172 .......................................................................................................................................................................... 172 b) ...................................................................................................................................................................... 172 c)....................................................................................................................................................................... 172 Graphic No.11 Agricultural Land Use ..................................................................................................... 173 2 8.0.4 Non Agricultural lands. ............................................................................................................................... 173 8.0.5 TRADING CENTRES PLOTS ............................................................................................................ 173 Trading Centers have been allocated 300 acres upon which various classes of plots will be planned ... 174 9.0.3 LAND DISTRIBUTION STRATEGY ................................................................................................ 197 9.0.4 MARKET SEGMENTATION ............................................................................................................. 202 12.0.2 BREAK EVEN ANALYSIS ............................................................................................................... 263 1) Overhead Expenditure ............................................................................................................................... 263 13.0.9 PERSONNEL AVAILABILTY ......................................................................................................... 328 List of Tables Table 1 Project data summary ................................................................................................................................. 6 Table 2 Project introduction summary .................................................................................................................... 7 Table 3 Vision data ................................................................................................................................................. 10 Table 4 Operations layout (Project Divisions) ........................................................................................................ 13 Table 5 Project Mission .......................................................................................................................................... 15 Table 6 Formation stage......................................................................................................................................... 21 Table 7 Inter- parties’ relationship ......................................................................................................................... 25 Table 8 Project costs centres analysis .................................................................................................................... 46 Table 9 Proposed Land size .................................................................................................................................... 47 Table 10 Land distribution ..................................................................................................................................... 47 Table 11 Land costs distribution centres ............................................................................................................... 48 Table 12 Tools and machines and other operating areas ...................................................................................... 48 Table 13 Major Areas of Operations ...................................................................................................................... 50 Table 14 Main Categories of operations centres as identified for the project ...................................................... 51 Table 15 Applications Centres Funds Allocation .................................................................................................... 52 Table 16 Projected funds break down (Land acquisition costs)............................................................................. 53 Table 17 overhead costs......................................................................................................................................... 54 Table 18 fixed developments ................................................................................................................................. 54 Table 19 movable assets ........................................................................................................................................ 55 Table 20 operations funds...................................................................................................................................... 55 Table 21 Interested Stake holders ......................................................................................................................... 63 Table 22 Funds Sourcing ........................................................................................................................................ 64 Table 23 Sales proceeds calculations ..................................................................................................................... 68 Table 24 Funds Expenditure - Land acquisition expenditure ................................................................................. 70 Table 25 Overhead expenses ................................................................................................................................. 71 Table 26 Fixed developments ................................................................................................................................ 72 Table 27 Movable assets ........................................................................................................................................ 72 Table 28 Working Operations ................................................................................................................................ 73 3 Table 29 Fund Application summary...................................................................................................................... 74 Table 30 Exit commitments.................................................................................................................................... 77 Table 31 Satisfactory Exit ....................................................................................................................................... 83 List of Charts Chart 1 Poverty Eradication Stakeholders ............................................................................................................... 9 Chart 2 BUSINESS OPERATIONS PLAN .................................................................................................................... 18 Chart 3 Project services and material sources. ...................................................................................................... 31 Chart 4 Project Activities ........................................................................................................................................ 32 Chart 5 Operation centres codes (levels: Board—participants and Divisions) ...................................................... 33 Chart 6 Administration ........................................................................................................................................... 34 Chart 7 Internal funding sources ............................................................................................................................ 68 4 Chart 8 Funds sources and Application ..................................................................... Error! Bookmark not defined. 5 Chapter 1 - Samuland Investments Operations Table 1 Project data summary SAMULAND PROJECTS PLAN SEQUENCE Activity / Centre Name FORMATION PROJECT No. Location Duties, goals and objectives Form project as per vision 1 COSTING Evaluate the project elements FUNDS SOURCING How to finance the project EXIT PLAN Repayment of borrowed funds and meeting goals Ways to follow to start, run and exit the project Allocate funds as per the project goals 2 3 4 5 6 7 8 IMPLEMENTATION STRATEGY FUNDS ALLOCATION LOANS REPAYMENTS LANDS ALLOCATION LANDS SALES STORES SALES Recovery of debts from farmers and projects To company , farmer and project: economic parcels Documentation and records for each parcel of land For supplies of inputs and tools SERVICES Financial, education, morals and health CASH FLOWS PROPOSAL PROJECT IMPLEMENTATION Proposed flow of funds 9 10 11 12 13 Project operations planned 6 Table 2 Project introduction summary 1--0 1--1 1--2 1--3 1.0.0 FORMATION Matters considered a) Project identity b) Project owners c) Project location Executive Summary Samuland Investment Company was formed and registered under the Laws of Kenya and a certificate of incorporation Number C.69437 issued on 28th day of February 1996, with the objective of eradicating poverty from the society by improving their economic status, through guidance and providing an enabling environment. The company vision is that poverty can be eradicated by the cooperation of persons that are willing to work a little more for the sake of mankind. The company activity IS TO ERADICATE POVERTY through commercial activities that are commercially viable and socially acceptable as beneficial to the community and the country. The main company activity is acquisition of ranch lands and sub-dividing the same for sale to the farmers after putting up the necessary infrastructure. These types of farmers are the main clients for they are landless, if they have any other place to settle on, it is too small for any comfortable life. Others join our project in search of expansion opportunities. Currently we have 3000 applicants for agricultural plots and 2000 applications for non-agricultural plots. The market for our plots and products is wide and hard to oversupply. The company has its main office in Nanyuki town, in Laikipia County, Central Kenya but on acquisition of the ranches. (The subject matters of this document), the head offices will be moved to one of the ranches on one of the sites planned as a trading centre. 1.0.1 SAMULAND PROJECT Samuland Project is the name to be used for the operations undertaken by the company Samuland Investments Company and any subsidiary to be formed or the existing subsidiaries of Samuland Investments Co. The project sponsoring company shall be Samuland Investments Company and any other parties willing to cooperate with the company for the purpose of making the objectives and goals of the sponsoring company achievable. 1.0.2 SAMULAND VISION The company vision is that poverty can be eradicated when proper actions by all concerned stakeholders are taken and properly implemented. Each party taking the relevant portion of action and responsibly. The parties involved in poverty eradication are. 7 1. The poor – being the beneficiaries 2. The project managers –being the coordinators. 3 The owners of the funds employed. –being the Financiers With each group of persons playing the right role, poverty eradication cannot fail. The fundamental objective of the company is to organize a system where poverty will be systematically eliminated from society with the cooperation of the people concerned, (The poor, the rich and a team willing to work for the good of mankind) 1.0.3 THE BENEFICIARIES (THE POOR) The poor are many such that there will always be many on the waiting list for help hence our market is wide and is capable of infinite expansion. Poverty, as per the project interpretation, is wider than just luck of materials wealth; it includes luck of everything essential for a complete, smooth and peaceful living for human beings. Poverty eradication does not comprise of supplying material wealth alone, it covers ways and mean of sustaining the state of having after receiving the initial help. Being able to sustaining is not complete if the person helped cannot be able to expand and have a will to help others as he has been helped out of poverty. Good health, knowledge, entrepreneurship and expertise have to be incorporated in the poverty eradication programs. The provision of all these needs are the actions that the project intends to take to enable the beneficiaries get the full benefit of the project 1.0.4 DIRECTORS The directors of the company are the chief coordinators of company activities. They have the vision implanted in their minds. They know what their mission is and are in a position of drawing the policies to guide them to the accomplishment of their objectives. One important virtue that they all have is that, all of them have been directors of companies dealing with lands sales for many years and they know the problems involved. Land buying companies buy ranches that they sub divide into small parcels, mainly one and two acres. These are them allocated to the people on payment of a purchase costs and other mandatory fee. These new settlers are left on their own. The sale of the lands alone without providing for settlement and developments funds on these lands makes the new farmers desperate and poorer, more so mentally disturbed. Briefly, land buying companies have done a good job in finding settling sites, but these sites are not useful to their owners unless they are developed and productive. To make these sites economically useful they need infrastructure, operating and production funding. 8 Land buying companies do not provide these extra services and items. That is why our project wants to move a step further by providing the necessary funding and infrastructure. The directors have planned to buy ranches, sub- divide them ,put up infrastructure and put up the required facilities needed for enabling the new farmer to be economically enabled. This is the strategy that the directors want to use in poverty eradication and hence the founding of this project. 1.0.5 FINANCERS Financers shall provide the starting funds in the form of loans to the project through the company which is the principle borrower. These funds are for the benefit of the farmers; these loans shall be utilized such that a portion will be applied commercially while the other portion will be used for humanitarian requirements These funds will be repaid at a cost, sometimes with interest and other charges. The beneficiaries must not look at the project as a hand- out institute but as a commercial project. They must work for the assistance given to them so as to repay these borrowed funds. 1.0.6 Poverty Eradication parties To eradicate poverty from community, three parties are involved and these parties are; 1) The poor and in poverty 2) The rich and with something to offer to those that do not have 3) Managers that understand both the poor and the rich 1.0.7 Poverty Eradication Stakeholders Chart 1 Poverty Eradication Stakeholders 9 Beneficiaries of the project are those people who have applied to the company requesting the company to make available to them some agricultural land on which to settle. All types and classes of people are accepted regardless of age, sex, or religion or education background. This combination of applicants makes it possible to have all kinds of brains in the project area. All types of man power are available from this group. These people are farmers in the eyes of the company and are registered by the company as farmers. This group will supply the company and the project with the various labour forces needed, be it skilled semiskilled Table 3 Vision data 1--4 1--5 Project vision 1--6 1--7 1--8 1--9 1--10 1--11 1--12 1--13 1--14 1--15 Project mission project desires as seen 1) That poverty is a lack of something essential in life 2) Major lacks are; materials health knowledge and morals 3) That one lack with one can trigger lacks to others duties to accomplish towards the vision This requires that: 1) Structures to provide materials, education, health and morals be established 2) To provide materials you require; a) To produce them on farms or industries b) To source them elsewhere and store them till time to use c) Establish a platform where various materials can be exchanged these platforms call for markets and financial centres 1.0.9 PROJECT VISION The project vision is that poverty from society can be eradicated if there is cooperation between the poor and the rich. We do not view poverty as purely lack of materials but as a lack of anything that makes life for any member of society unbearable to an individual member or members of a society. Lack of morals by individuals makes them unacceptable in society in same way as lack of selfconfidence makes one feel unwanted or unfit in some social circles. Poor health is as unacceptable as lack of material is in society. But lack of knowledge makes many uncomfortable and unable to socialize as lack of integrity makes many social outcasts. 10 The project wants to address these issues in society by making every member socially acceptable and every person eligible for any social club of his choice. 1.1.0 PRINCPLES OF OPERATION STRATEGY The truth is that not all materially lacking persons are poor in health and that not all materially rich are morally rich in both integrity and hence acceptable in every society at any time and everywhere. Our project will address poverty on the basic principle that all what a person needs is shelter; food and clothing for these are the basics of any society member. The action requirement is that the following be made available to the community members. 1) Provide knowledge to the members by establishing learning institutions for both the young and all ages with all forms of improving one’s life academically, morally technically and materially 2) Provide facilities to help one on physical and spiritual health 3) Provide facilities to help one financially 4) Provide facilities to help in material sourcing. These requirements call for a program to make available the following facilities; 1) Lands on which to do all the above and specifically to settle the poor and establish the required infrastructure. 2) Schools for both the young and the mature in need of learning skills to sustain themselves and others 3) Churches and counseling institutions to instill social discipline. 4) Financial institutions to facilitate transactions 5) Hospital and public health institutions to facilitate social health. The Project plans to establish all the above in addition to the following very vital facilities to the project beneficiaries. 1) Water for all uses especially, A) Clean water for domestic use B) Water for irrigation 2) Roads as outlets for farm produce and communication 3) Sale and marketing outlet for products 4) Industries for; A) Adding value to farm products B) Making basic project needs locally available C) Power sources especially electricity for lighting and bio gas for cooking. D) Creation of employment. 5) Management for the coordination of; a) Social order in the project b) Production order control for quality and quantity 11 c) Agriculture extension services to enhance skills d) Financial services to enhance economic applications of available resources. The project intends to do all the above and hence contribute to the welfare of mankind in a small way by enabling some people to be able to help themselves out of lacks. 1.1.1 PROJECT MISSIOM A) Poverty Poverty is a situation where one finds himself or herself lacking the basic facilities needed in a generally accepted life. In the minimum a human being needs: 1) Shelter 2) Food 3) Clothing The following can cause or make one to be in poverty: 1) Lack of good health 2) Lack of materials 3) Lack of funds ( Finances) 4) Lack of knowledge 5) Lack of morals B) Poverty elimination coverage Poverty covers is person or society the lacks one of the above and hence one can be materially rich but with a lack of health and hence does not enjoy the minimum basics of life or rich in material and good health but morally lacking and hence socially not accepted in every society. The project wants to address poverty in all its forms by tackling an individual and then the society. The society is composed of many individuals of mixed levels of poverties than can be eliminated if the society members come together and formulate the way forward. This will also apply to the international community for poverty is global. To eliminate poverty, shelter, food and clothing have to be provided but this is not enough for after a time the beneficiaries will go back to the same poverty level if other steps are not taken to prevent the drift back to the level uplifted from. The beneficiaries must be provided with finances, materials, education, both moral and technical so as to enable them to expand the basic base given to them. They should also be in a position of helping others in poverty. C) Poverty Elimination Strategy 12 By providing land means, shelter has been given and therefore to get food from the same land by farming. The land must then produce enough food and a reserve for sale to be able to cloth oneself. This farming operation can be enough employment if the beneficiaries are enabled to make these lands productive effectively and economically. Otherwise the same people will remain poor. The project has decided to provide the following services to its members through channels that have been established for the purposes. The main project being subdivided into sub projects within the main project and further sub projects within some sub projects as per need and convenience. The operations layout plan is as per the following table 1-1-2 SAMULAND PROJECT PLANNED OPERATIONS LAYOUT Table 4 Operations layout (Project Divisions) 1 Project Name 2 Project Objectives SAMULAND PROJECTS Poverty eradication b) Provision of food (Farming) c) Provision of clothing (working) Project tools Land Land purchase and Main development of Project facilities for the benefit of people Farming working 6 Land subprojects 7 Main supportMaterials sourcing projects a) Development b) Provision of of services commercial centers Provision of Financial social services services 3 Project Components 4 5 a) Provision of shelter (Land) a) Agriculture land for farming developments 13 8 Tools for support Stores Industries Schools and health care Banks and good management Project name The whole operations activities shall be known as the Samuland Projects (2-a). Projects because poverty comes in many forms and shapes hence many technics and requirements needed all calling for many different and independent institutions and facilities all addressing poverty matters. Project Objective As per the project vision, poverty can be eradicated from society if there is cooperation and willingness between the stakeholders (the poor, financiers and a management team) each to work as planned. All the works shall lead to poverty eradication. The eradication is the project mission (1-a) Project components The components are the elements needed for the purpose of eradicating poverty as per the definition of poverty by the project. These are the basic needs of any human being. 3a. Shelter through provision of land 3b. Food through farming 3c. Clothing through provision of working and earning some income Project Tools These are the methods and required items for the operations aimed at eradicating poverty. They are tools for without them poverty will not be eradicated. These are 4-a, 4-b, and 4-c (Land Farming and working) Main Project The main activity of the project is land for the land shall provide every facility and need required for the mission. The land project is composed of the following operations. 1) Land purchase 14 2) Land allocations ( for various uses) 3) Land developments ( for the various requirements) Land Sub Projects Land as a main project, needs many sub projects to be initiated before any substantial growth can be made. The main developments take different forms and approaches, these are; 6-a ) Developments on agriculture lands for farming purposes (crops and livestock) 6-b ) Commercial centres developments ( Trades and industrial areas) 6-c ) Public services centres and facilities ( Schools, hospitals, churches and recreation) Main Support Projects Support projects are those facilities that are needed for the functioning of the project. These are 7-a) Sources of project materials requirements (Stores) 7- b) Sources of services (Technical moral academic education ,physical health) 7-c) Financial services (Banking and availability of money services for day to day operations. Support Tools The tools for the support are 8-a) Material sources: stores ( as from external suppliers) 8-b) Project industries 8-c ) Social welfare facilities 8-d ) Banks and credit facilities and management 1.1.3 Project Mission Table 5 Project Mission 1--16 1--17 1--18 1--19 1--20 3) To provide education health and morals the following have to be established a) Regular and technical schools b) Health clinics and hospitals c) Churches counselling and recreation centres 4) Once they are established commercial centres will be required 15 1--21 hence a well-organized community with an operational system shall be needed To make this operational, a project covering all the above needs has to be formed 1--22 1.1.4 Business Plan The business plan and project operations will be based on the following objectives and goals. 1) To settle the farmers who are the project beneficiaries. 2) To create an enabling base for the main operating to have a stable economic base from where growth and expansion funds can be available without many obstacle and heavy costs. 3) To develop community needs facilities that can be taken over by the farming community without much technical requirements for sustenance and maintenance if the company participation is withdrawn. 1.1.5 Project Statement of purpose The project is both humanitarian and commercial hence its operations and activities can only be viewed in those lights.it is commercial because the financing is done by borrowed funds that are repayable with interests hence some income generating activities have to established for this purpose. The humanitarian parts must be financed by a source that will be capable of meeting the expansion and recurrent expenditure of the humanitarian sectors being undertaken by the project. The goals and objectives of the project makes it mandatory for the project to operate in a commercial oriented manner so that the notions created by donation reliance can be removed from the minds of the beneficiaries and create a sense of self-reliance. The project mission is to eradicate poverty and create a precedence or formula which can help other solve poverty problems in a way that is sustainable and satisfying to all stake holders and without much economic strain on the interested parties. After identifying the major causes of poverty, the directors of Samuland Investments Company set out to eradicate poverty and planned to apply the strategies hereinafter set out. The main pillars of the project are; a) The beneficiaries b) Financiers c) Management These are linked by: 1) Funds provided by the financiers 16 2) Objectives of the management 3) Activities of the beneficiaries Their interest all converge on; i) Management to provide a proper administration ii) Production from the farms both beneficiary and company to provide income to all iii) Provision of services o enable productivity iv)Generation of revenue to repay the financiers 1.1.6 Objective of purpose s:a) Provide settlement to as many as possible landless beneficiaries. The settlements being of an economical size such that some income can be generated the same. A minimum of five acres was found best for the majority. b) Provide a financial base to the settlers such that they will be able to utilize the lands allocated with minimum hardships. The project will therefore provide stores for farm inputs and marketing outlets for the produce. The project will also provide financial services to the farmers and settlers on the project. c) To provide support services to the settlers so that their living and operations becomes easy. These services will therefore be provided. 1) Schools for both children and adults both technical and academic 2) Provide health and recreation facilities for all 3) Provide water for both domestic and irrigation use 4) Provide extension officers for the farming community 17 To achieve all of the above, the following operations management organization is planned to be the operations vehicle for the project. It is the base for the project business plan. Chart 2 BUSINESS OPERATIONS PLAN 18 1.1.8 The Project Mode of Operation A. Farmers Farmers are the main target of the project operations for it is these people who are being helped out of poverty. They will produce the raw materials for the project agroindustries and be served by the project financial sector. The social welfare services are designed for them. B. Company Economic Base The company will establish an economic base with the following operations and services a) Financial services to cover a savings and credit society institution for the banking and such other financial needs of the farmers and the business community in the project area. Latter the savings and credit society shall be converted into an operational bank with all banking needs available. Sales and marketing of farm produce shall be done as well as insurance services. b) Manufacturing industries for the supply of light products and manufacture of basic tools and machines needed by the project community and external markets. Farm produce based industries such as canning of foods and processing of dairy products and any activity that will add value to farm produce will be undertaken. c) Management services these services will be available to the project itself and the company operations as well as to the individual farmers and business persons. C. Community Interests The community interests in the project are those facilities that are required for the smooth running of the matters of the project community, they cover; a) Trading centers and commercial area with orderly operations and acceptable environment standards. b) Provision of basic services such as clean domestic water, electricity, communication networks and good security for both property and life c) Maintenance for all the above services. 1.1.9 Operation procedure A) INITIAL STEPS The project initial works will be undertaken by both the company and the financiers as follows a) The company will be responsible for, 1) Recruiting the farmers as beneficiaries 2) Finding and negotiating land purchases b) Financiers will be responsible for, 1) Sourcing the project funds 19 The two parties will jointly coordinate the project operations. B) Development Stages The project will develop in stages as follows; There will be, a) An operations formation stage when the three project main stake holders will be engaged in various works. 1) Farmers will be taking up their farms as the company allocates them with the land parcels to them. This process is planned to take about three years from entry day one for farmers 2) Company will establish basic facilities such as stores and banking facilities for the farmers as well as establishing the water systems in addition to all other essential services 3) The financiers will be funding the operations in a systematic way. During this formation stage, planned to take about forty two month, all farmers will be settled. About 185 farmers per month. b ) Stabilization stage When basic settlement of farmers is done the project will embark on stream lining much needed operations and administrative infrastructure and prepare for an all-out for production. This will take about eighteen months and hence a total of sixty month from day one. (Five years) The farmers will be busy on the farmers as the traders will be developing their commercial activities in the trading centres. The company will be establishing the required controls and taking any other measures needed as the financiers look at what they have achieved and done with the funds. c) Production stage This is the stage when all the production by all sections of the project will be fully developed and ready for production. It is timed to last fifteen years from stabilization date hence twenty years from day one. During this period, the farmers will be paying their dues to the relevant sourcing canters and the company will be repaying the borrowed funds to the financiers. The financiers will be receiving both the principle and the interest repayments instalments as per agreement. The production stage is most crucial to the project for it will have the total impact on the project itself 20 d) Exit stage This is the stage that the project will be preparing the following operations. a) To hand over all individual land parcels to the farmers as purchased by the same. The farmers have been paying for them in instalments. b) To finalize the loans to the financiers c) To take stock of the liabilities and assets of the company d) To define what belongs to the company and what belongs to the project 1.2.0 Formation stage Table 6 Formation stage 1--23 Project formation Directors office Project activities Directors office 1--24 1--25 1--26 1--27 1--28 1--29 1--30 1--31 1--32 21 For the formulation of the project by directors of Samuland investments company The project will be formed and owned by the directors of Samuland Investments Company These are the persons who have the vision and mission of what they want to achieve Ways and means of meeting goals a) Look for lands available for the project b) establish needed facilities such as Water, transport, and marketing c) Coordination of the project goals strategies d) Find ways of financing the project e) Establish an administration of all activities f ) Organize an initial funding system for the whole undertaking as one unit 1--33 1--34 Lands search Directors office Provision of services Directors office 1--35 1--36 1--37 1--38 1--39 1--40 1--41 1--42 1--43 1--44 1--45 1--46 1--47 1--48 1--49 1--50 1--51 1--52 1--53 1--54 1--55 1--56 1--57 1--58 1--59 1--60 1--61 1--62 1--63 1--64 1--65 1--66 Administration of the project Directors office Activities financing Directors office Land needed to cover the planned activities a) to settle about 3000 farmers each with a land parcel of minimum 5 acres b) communal facilities about 2000 acres 1) Schools 2) Other communal facilities 3) Trading centres i) Residential areas ii) Commercial centres iii) Industrial areas 4) Roads 5 ) Water storage and delivery passages 6) Cemeteries 7) Sewages and damp sites c) Company properties 30,000 acres 1) Crops farms 2) livestock farms 3) Research facilities a) Agriculture services b) social needs services 1) Education 2) Health 3) Morals ( Churches 4) Recreation and sports c) Financial services d) Administrative services 1) Offices 2) services provision sites ( Collection centres) The administration shall be divided into these sections a) Company affairs b) Project (farmers) affaires a) External loans b) Internally generated funds 22 1--67 Fund Sourcing for project Directors office 1--68 1--69 1--70 1--71 1--72 1--73 1--74 1--75 1--76 1--77 1--78 1--79 Coordination centre Directors office 1--80 a) Borrowed funds b) Operations by the company 1) farming 2) Industries 3) Investments 4) Payments for services rendered c)Loans repayment by farmers 1) Repayment of lands allocated 2) Repayment of initial allocation of stores and working funds Main operation centres a) Production centres b) Social al services centres c) Head offices centres 1.2.1 Project interested parties The project has many interested parties and the success or failure of it will mean quite a lot to many. The main parties with interests are; 1) The financiers 2) The company directors 3) Employees and think tank 4) The beneficiaries 5) The state 6) The main company 7) The external fraternity of financiers and governments (global impact) All the interests by various parties will be taken care of by the company as planned. To implement the project, the operations plan will be as shown below. Operations Strategy The operations will be divided into four major groups; A) The main administration division. B) Settlements division C) Social welfare division D) Support division 23 1.2.2 Chart No 3 Interested parties 24 1.2.3 Inter- parties’ relationship The relationship of the above parties is as per the table below Table 7 Inter- parties’ relationship Party Interest Financiers Directors Employees and think tank Company Point of reference Duty(Actions) Deliverable 1) Funds used as planned 1)Directors and company 2) Loans repaid in full operations 3) Satisfaction of beneficiaries 2) Beneficiaries reactions 1) Project mission success 1) Financiers for funds support 2) Poor elevated to prosperity 2) Policy board for direction 3) Base for poverty eradication 3) Employees and think tank for formed. mission execution 4) Beneficiaries cooperation and dedication to mission objectives 1) Continued service to a 1) The main interests are for the prosperous project beneficiaries 2) Working with future hope 2) The company as an employer 3) Working where one is appreciated 1) Finance project 2) Evaluate operations 1) Give mission policies 2) Direct mission execution with prudence 1) Project funds 2) Constant presence 1) Guidance on all matters 1) Act as per management policy 2) Solve beneficiary problems 1) Services to the company and the beneficiaries 1) Accomplish poverty eradication mission 1) Settle the landless 2) Educate them 3) Support them as needed 4) Operate for extra funding for expansion 1) Land to settle on 2) Farm inputs 3) Education 4) Health 5) Commercial Facilities 1) External Funding 2) Proper management by directors 3) Proper service by employees 4) Dedication by beneficiaries 25 Measurable observation 1) funding levels 2) Evaluation results 1) Timely adherence to schedule. 2) budget control 3) Delivery to the beneficiaries 1) Improvements on A) Social welfare for beneficiaries B) Project Productivity C) Company financial results 1) Numbers satisfied with shelter 2) Numbers able to feed themselves 3) Numbers in good health 4) Numbers economically busy Beneficiaries State Global community 1) Move out of poverty 1) The project for a start up base 2) Have a hope for the future 2) Individual effort to attain for themselves and children efficiency in education, productivity morals socially accepted behavior. 1) What has been done to the 1) The financiers as community development partners 2) What the state has gain in 2) Private companies as growth and in welfare development agents 3) Whether the same can be 3) Beneficiaries as cooperators extended to other areas in national developments 1) Global impact on poverty 1) The financiers satisfaction 2) Investments results and 2) Management operation effectiveness systems 3) Lessons from such 3) State reactions financing 4) Beneficiaries reactions 26 1) Be obedient and work as directed by the project 1) Cooperation and hard work 1) Farm out put 2) Personal achievements 1) Observe and give corrective advices on policy, security and personnel and especially moral support 1) Constant monitoring of the reactions 1) Support 2) Security 3) Give essential staff when required 1) Support in security ,staff and moral support 1) Noticeable presence and interaction between the stakeholders 1) Comments by the global community 1.2.4 COMPANY AND THE PROJECT There shall be a distinction between the company and the project. The company means SAMULAND INVESTMENTS COMPANY .The project means all activities undertaken by the company as a) The main sponsor, b) Manager and director of c) implementations and d) All matters related with the project. All these project activities wherever they will be shall be known as the SAMULAND PROJECTS. Where the company does any farming on the project areas it will be taken as any ordinary farmer with no special preferences. All farmers will be treated the same regardless of the positions held in the company or project management. The management of the project will be done by the company through the Implementation Board established by the board of directors of the company. The implementation board is an arm of the board of directors of Samuland Investments Company. The company board of directors is the supreme authority in the project and by virtue of its authority; it has established two other boards for running the project works and operations. These are the policy board and verification boards The implementation board is the highest authority in the project and only answerable to the board of directors. Its activities are overseen by the oversight board that report directly to the board of directors. The management of the project is interlinked to the company management in that the directors of the company are also the directors of the project. Many project divisions are controlled by the company directors. The board of directors of the company hold the same capacity in the project. The project management operations are organized from company level down to job or activity level so that both managements (company and project) are controlled from same point. 1.2.5 Chart No 4 Company and the Project Relationship 27 1.2.6 Expectations from Samuland Investments Company A- Samuland Investment Company as sponsor will; 1) Source funds for the project 2) Guide the project 3) Make rules and regulations 4) Decide on all matters of the project. 5) Establish bodies to implement, run, control, and oversight the operations of persons or group of persons giving any service or services to it or any other entity where Samuland Investments Co. has any interest relevant to this project 6) It will allocate to itself parcels of land where it has a project and use it for any purpose it deems fit for it needs. B- Samuland investments Company as manager and employer will; a) Plan for works to be carried out on the farms and project areas b) Hire and fire employees c) Hire professional services d) Determine the budgets for operations C- Samuland Project shall; a) Operate as per the project vision given by the directors b) Act as per directors mission on poverty eradication D- Samuland Investments Company as farmer: a) Be productive on all farming activities. 1.2.7 COMPANY AND PROJECT OPERATIONS Project And Company services and products The company will start its agricultural operations/ activities immediately on takeover of the farms and start producing horticultural produce, with emphasis on products that can be sold fast and produce funds quickly. It is the policy of the company to satisfy food requirements and that the rule is that 25 % of the land allocated to each applicant is to be used for loan re-payment purposes while 30 % is for domestic food. The rest 45 % is for rotation purposes & homestead. The company will grow domestic food as a share of its production. The company will construct the main water storage and delivery system to the farmers and provide 75 % of the water requirements while the farmers must provide themselves with the balance of 25%. 28 Each farmer shall be a member of the company’s stores and credit facility where all the farming requirements will be availed on credit. The company therefore will establish the supplies stores and the savings and credit for the supply of farming and other necessary items. Each farmer will take his/her produces to the company’s collection centres for marketing by the company on behalf of the farmers. Various other services will be available from the company and project facilities. The company and the project will provide other services to the farmer through various establishments of the project. 1.2.8 SERVICES BY THE PROJECT AND COMPANY The company will provide many services to both the farming community, traders and the visiting persons as per the needs of each case. The company and project products are many and therefore many sources from the company. They are divided into about six groups according to the nature of need. 1) Settlement on land and plots: these matters are solved by the lands office at the Head Quarter. All matters of land sales shall be dealt with by this office and here shall the lands records be kept. 2) The Support Services: there are very many needs that arise and are required by any community to operate and survive. Our project will need; a) Water for farming and domestic use, clean enough for the purpose intended and available at the correct place and time and enough quantity. b) Communication systems: both roads, telephone and any other method for passing information or materials from place to place conveniently. Roads and other services are therefore needed. c) Buildings: these form a base for operations from day one, purpose is accommodation, storage and operations as factories, offices for administration, and provision of other services such as medical and schooling 3) Material Supplies: The major participants in the project are farmers and hence they require farming related materials and services: a) Farm inputs such as seeds, fertilizers and manures tools and equipment for their work b) Machines and implements for works on the farms c) Transportation from and to the farms for their products and goods d) Marketing of produce 29 e) Finance services for their day to day operations f) Knowledge centers for advice and moral support g) Health care centers for any sickness on their children and labour forces h) Security for them and their properties. These services will be provided by: 1) The stores and supplies department of the project for materials 2) Company farms for livestock needs 3) Agriculture departments for all farm related needs, control of production and the marketing of produce 4) The Sacco services will provide all financial needs 5) The social services division will take care of education, morals and health 6) The administration shall cover all matters of security and tranquility in the farms and trading centers 1.2.9 SERVICES The company’s main objectives being to assist in the poverty eradication which is the key policy of the world today will look for funds from the people of good will so that it can be able to finance the services towards that goal. The services to be provided are as: 1) The customers of the company’s products and services: The products of the company in this respect are the sub-divided portions. The services are the provisions for credit facilities provided by the company stores, irrigation water and marketing of the farmers produce. 2) Marketing of the farmers produce: It is the duty of the company to sell the farmers produce to the consumers 3) Financial services: To the farmers through the banking section that is the SACCO These services will be provided through divisions established by the project 1.3.0 MAIN OPERATIONS INTEGRATION FOR PROVISION OF SERVICES AND MATERIALS 30 Chart 3 Project services and material sources. Deliverables Analysis The project operations are designed such that each of the five main divisions has a specific, expectable and measurable output which is either a material or a service. Some deliverables are shared by two divisions such as livestock by both the company farms and supplies department or the funds by the stores sales and HQ land sales. 1.3.1 Table No. 8 operations centres 1--81 Main Directors operations centres 1--82 1--83 Main centres (Divisions) a ) Production 1) Supplies and stores 1--84 1--85 1--86 2) Support services 3) Industries 4) Agriculture Farming 1--87 1--88 5) Financial services b) Social Services 31 1--89 1) Education department 1--90 2) Public health department 1--91 1--92 3) Recreation department c) Farmers welfare department 1.3.2 PROJECT ACTIVITES ORGANIZATION (A=Project activities) Chart 4 Project Activities 32 1.3.3 Project Management Organization Chart 5 Operation centres codes (levels: Board—participants and Divisions) 33 THE 6 MAIN OPERATIONS DIVISIONS 1.3.4 MANAGEMENT ORGANISATION (Chain of Authority) To accomplish the project objectives as planned and have the expected results the operations shall be managed by the below planned chain of command and control Chart 6 Administration 34 1.3.5 Chief Officers of the company and Project A. The Chairman Samuland Investments Company The main authority for of the project lies with the Board of directors and all matters of policy are controlled by this body. Its executive powers are vested in the hands of the chief executive who acts on their behalf. The chief executive is answerable to this board only (It is important to note that policy section is a section of the administration division) B. The Chief Executive Officer The chief executive is the eyes of the board of directors and in charge of all project and company operations. In addition to being in charge of all project operations, he is specifically responsible of the following sections. 1) Finance section of the administration Division 2) Maps and records offices 3) Allocations section 4) Planning and survey sections of the settlement division. C. Chief of administration This chief office is in charge all of administrative matters of the project especially those matters that touch on matters related to the beneficiaries’ interests. His operations are as contained in the General administration division allocations. He will be able to intervene where conflicts of interest occur and likely to interrupt the smooth running of the project. He is answerable to the C.E. O. D. Chief Agriculture Officer His mandates are as contained in the settlement division. E. Chief Civil works Officer In charge of; 1) Roads 2) Water works 3) Buildings F. Chief supplies Officer This officer is in charge of all supplies for the project and co-ordinates the supply, requisitioning and storage of the project needs. G. Company Land Controllers 35 Shall be in charge of production and operations of the company properties (Lands) Chief Social Welfare office This officer is in charge of matters related to the health and education of the project people. All these senior persons are all answerable to the chief executive office H. OPERATIONS GUIDE The policy board will issue policies to guide the operations on all matters relevant to the project objectives. The main policies are; 1) Settlements policy 2) Finance policy 3) Agriculture policy 4) Social services policy 5) Education policy 6) Livestock policy 7) Water policy 8) Management policy 1.3.6 Divisions Analysis A. Head Quarter division The main administration division will have the following sub-divisions with their departments as shown. 1) General administration composed of; a) General office for administrative matter. b) Security control offices c) Liaison and communications office d) Personnel offices e) Registry office 2) Finance Office composed of: a) Project accounts office b) Company accounts office c) Investments office d) Revenues offices e) Audit f) Statistics g) Agriculture loans department h) Trading centers commercial loans i) Sacco division j) Requisitions department 36 3) B. Policy department ( This department is for the management and control of all company and project matters It is the decision center) a) Board of directors b) Policy board c) Executive committee d) Operations team e) Implementation teams f) Verification teams Lands (Settlements) sub division of Head quarter Division Its main sections are: A) Agriculture lands B) Trading centers C) Company lands (company lands cover those lands allocated to the company (S.I.C.) for farming and those allocated to the same company and its subsidiaries and those allocated to the project for the benefit of the community.) The settlements division has the following offices for common use; a) Maps and records office b) Lands allocation office c) Planning and survey office For administrative purposes the settlement division has the following autonomous departments. C. Agriculture Department. This is in charge of all matters related to farm production. The following are its main sections 1) Livestock developments 2) Crops department 3) Research and environment matters control 4) Quantity control 5) Quality control 6) Implements Hire department 7) Produce sales and marketing 8) Produce collection centers 9) Produce transport 10) Packaging and Packing houses D. Trades Department. 37 The main purpose of this section is to control and regulate the trades in the trading centres for the welfare of the company and community in the project areas. The main sectors are. 1) Trades and licensing control 2) Trades financing 3) E. Company Farms Division These are the lands allocated to the company for farming operations. They include lands temporarily held by the company for future allocations o the farmers. Crops division 1) Livestock divisions 2) Bio fuels farms 3) Research land 4) Project lands 5) Contingency lands F. Social Welfare These is the division charged the all matters related to ways and means of developing physical and spiritual wellbeing of an individual to enable him to be economically free and socially acceptable. It covers matters of health, education and morality. The main sections are; A) Public Health with these divisions 1) Public health 2) Hospitals 3) Clinics 4) Cemeteries B) Education department 1) Basic education ( covering all learning from nursery schools to secondary levels) 2) Advanced education ( Covering post basic level) 3) Technical education 4) Mature age learning for literacy and skills 5) Special needs schools. 6) Churches C) Recreation For all social recreation needs 1) Sports complexes 2) Open air recreation centers G. Support Division The support division is the main supplies source for the project. It is charged with the sourcing all material needs for operations both by the company and the farmers. it has five major sections: A) Supplies 38 1) Farm in puts 2) Tools and machines B) Water Supply 1) Dams and storage works 2) Delivery systems 3) Irrigation water 4) Domestic consumption (farm Area) 5) Trading centers water Supply 6) Civil works and constructions ( This covers buildings and roads) 7) Sewerages H. Stores and Supplies C) Agro-Industries 1) Milling operations 2) Dairy works 3) Canning factories 4) Bakeries 5) Bio fuels 6) Any value adding activities will be established D) Light Industries 1) Metal works 2) Wood works 3) Power supply 4) P.V.C. factory E) Storage centers 1) Dry foods stores 2) Perishable goods stores 1. 3.7 FORMATION SUMMARY 1. The project formation is based on the following; 1) That there will be a willing financier to fund the project as proposed. 2) That the management team is willing to take the project as planned to the end 3) That the beneficiaries shall operate as directed by the management team at all times. Hence the operations will be geared to 1) Provide good administration and management of all resources for the social welfare of all. This will make the farmers able to repay their share of the loans commitments by generating income from their farms 2) Cause production to increase from company activities and the farming community thus benefiting the farmers with increased revenue. 39 3) Social welfare to upgrade the standards of living and better and secure future with savings after all operations and expansions have been made. Thus: 1) Project Formation A) The project coordination ( Management) will present the project proposals to the financiers ( benefactor for actions B) The funding terms are set drawn down and finalized. Funds are then releases. 2) Project Main Account A) All project finances are deposited in one main account from which all operations centers will be fed. Operations centres votes and accounts are established as 1) Administrative – which will cover all management operations 2) Production—This will cover all farm inputs ,all dry foods farm outputs and all support activities 3) Social welfare—To cover all matters of i) Education ii) Health iii) Morals 4) Management The management will cover I) The finance sections II) Lands sales and settlements III) Investments IV) Personnel departments V) Policy matters and external communications VI) General project control and administration 5) Farms This will cover i) Company farms ii) Beneficiaries farms iii) All lands bought by the project for all purposes Specifically the lands shall be grouped as i) Agriculture lands 40 ii) Commercial lands iii) Communal utility areas Land ownership shall be categorized as follows i) Company farms ii) Farmers lands ( beneficiaries) iii) Project lands 6) Support The support section covers I. II. III. All water systems- Dams, storage tanks and delivery systems for domestic and irrigation water to the farmers and consumers in the commercial centers Roads and project buildings Industries- light and agro industries 6. Social Services This will cover i) All educational facilities ii) Public Health institutions iii) Churches and counseling centers and recreations Education is to cover academic, technical and special schools for special needs 7. Beneficiaries This will cover all persons who are on the project as farmers by registration. They are the persons who have bought settlement lands on contract sale agreements from the project. By this sale, project will have provided them with shelter, clothing and food. This will be the basic principle for poverty eradication. 8. Company Farms These farms will generate revenue for the operations. The company will be treated as a farmer. 9. Revenue All the operations by the beneficiaries, the company and the project shall generate for i) Operations by farmers and project ii) Savings for farmers and project iii) Expansion of the project to cover more needy people iv)Repayments of the loans 41 1.3.8 GROUNDS FOR TAKING THE PROJECT AS IS PLANNED A ) AGRICULTURE AND POVERTY IN KENYA A) Kenya is an agriculture country with only about 20% of the country being arable land. And productive both in livestock and crops. B) The other 80% is arid or semi-arid and fit for livestock only C) The semi-arid areas can produce crops if irrigated agriculture is practiced. The greater part of the 20% arable land is in Central Kenya and parts of the Rift Valley. These were occupied by the European farmers before Kenya independence. These farmers occupied also parts of semi-arid areas where they raised livestock. When independence came, many of these farmers were taken over. They were sub divided and allocated to landless as settlement schemes. Other farms were bought by land buying companies and similarly used for settlement. The land parcels were usually not economical especially in the semi- arid areas. Changes also took place in the planting plans where the indigenous communities were not allowed to plant cash crops. The farmers planted only subsistence crops. When change comes they went for cash crops – tea and coffee. All these new developments had serious effects on food supply and contributed much to poverty. a) The arable lands in Rift Valley produced enough wheat and maize for the nation but when subdivision took place in some farms the production when down. The farms in Central Kenya were turned into horticulture farms for export and domestic food being sidelined. This resulted in a drop in milk and beef production. b) The ranches in the arid and semi-arid areas produced both milk and beef, on sub- division; these farms became uneconomical to operate hence a drop in output and more poverty. Food security is a problem and can grow worse if invention measure are not taken considering that the populations is also growing. c) In the rural areas the farmers shifted to cash crops doing away with food crops hence need for importing even the basic commodities like maize. These treads have moved more and more people to poverty and hence a need for intervention. Our project will intervene in a small way but its success will show the way forward and many will benefit from the operations of the project. B) INTERVENTIONS To intervene, the project intends to act as follows 1) Allocate economical land parcels to the farmers 2) Allocate food production areas for the farmers’ domestic needs 3) Allocate and control cash crop production areas. 42 4) Establish dry foods stores to take-up the excess produced by the farmers 5) Encourage diversification of domestic foods 6) Shift from rain fed farming to irrigation farming 7) Apply mixed farming methods 8) Establish marketing systems for; 1) Local markets 2) National markets 3) Export markets 9) Establish support services for the farmers as; 1) Financial services 2) Stores and supplies 3) Irrigation water systems 4) Technical support in crop and livestock production 10) Establish environment control and research centers to help in the development and control of quality and health productivity With all these measures being taken, the goals will be achieved and a happy and healthy society will be born. If these steps are taken a little further, the whole nation and the world benefit greatly. C) OBJECTIVES AND ACHIVEMENTS PLAN The main objective is to settle our applicants who are poor and to eradicate poverty from them through our combined efforts and through hard work and above all through external help from financiers. We shall be creating a precedent for eliminating poverty through cooperation between the rich and the poor where there is a will for doing that. Hence: 1) The initial funding by the financer will help us create a stable base and within the first 12 months we shall settle about 1000 persons excluding the employees. 2) After another 12 months another 800 persons will be settled. 3) By the end of 42 months we shall have settled over 3,000 persons. We shall create employment for several thousand persons since every applicant, according to our plans, will employ at least three persons per acre through the company’s employment bureau. By then about 90,000 persons will be working on the farms supported by another 2500 people on various works such as clerical jobs, drivers and traders. Our estimated population will be approximately 100,000 within the first five years in our project area. 43 The lives of the settlers and the employees will be improved for the better since the activities will be throughout the year. The socials services provided by the company will also improve the standard of living. The profitability of the company and the individuals will improve due to increased output. The policy of the company is to produce continuously throughout the year and to back the farmers to produce with the same rate. The project success will be achieved through, 1. The efforts made by the financers to fund the project\ 2. Their willingness to assist us 3. The Company management willingness to work for both a profit and helping the poor 4. The compliance of the poor people to work as instructed by the management The company will have achieved its mission in that; It will have started the program of improving other people’s lives by showing them how to free themselves from poverty by working, 1) By building social facilities 2) By setting affordable charges that will be used in the maintenance and expansion of project needs. These include schools, hospitals, churches and such other needed social amenities to cater for both the farmers and their employees and the people in the trading centres. Samuland Investment Company has formulated a system where the farmers, employees and the financers will each be satisfied and feel that at least one has played his part well. The project mission will address these issues and eliminate or reduce them to levels where the lives of those affected will improve. Nearly every person is affected by one or more of the above lacks and hence need for addressing these lacks for their existence in people reduces them to level below human beings. The directors have formulated the way forward for eradicating these social ills and hence the formation of this project to be known as SAMULAND POVERTY ERADICATION PROJECT. Or simply the SAMULAND PROJECT The ranches identified for acquisition are in Laikipia County but the project can acquire properties anywhere as the project expands. D)VISION STATEMENT Poverty can be eliminated or reduced if the poor and the rich combine efforts to remove it, its causes and effects Poverty is lack of:- 44 a) Materials b) Knowledge (Technical or any form of wisdom that will take one from a point to another or enable him to do something meaningful to himself or someone else. c) Health that will enable him to be productive d) Morals that will make him socially acceptable to people and society ( honesty, trustworthy and self-respecting ) Any person with any of these is said to be rich and any without them is poor. Many people see material elements as a measure of riches but this is not true at all times. The people with material wealth will always want to be surrounded by health and knowledgeable people for protection of their wealth and multiplication of their wealth. If these same people are not morally upright they will exploit the poor and hence increase poverty. Reason is that they lack morals. On the other hand if the materially rich are also morally rich they will benefit the community around them and hence reduce poverty. The answer to poverty reduction rest with the people who are both materially and morally rich and hence willing to support the poor out of poverty. On the other hand, those that are lacking in materials, need to be honest and knowledgeable so that they can utilize what is given to them appropriately for their own good and improve their economic positions. The two groups need to work as a team with a common goal and objective. When their actions are coordinated properly poverty will be reduced or eliminated in human society. 45 2.0.0 PROJECT COSTING The project will require financing for all the planned activities. These funds will be applied in the following main areas; 1) Land purchase with all mandatory charges and costs up to allocation level. 2) Construction of fixed developments to a usable level. 3) Operation funds for day to day use till the project can generate its funds. 4) Funds to buy tools, machines and implements. 5) Funds to finance the farmers operations 6) Funds for the project Sacco as initial capital. Table 8 Project costs centres analysis PROJECT No. COSTING 2--0 2--1 SAMULAND PROJECTS COSTING Activity / Centre Location Name COSTING Agendas for discussion Duties, goals and objectives the cost of the mission Areas to be costed 2--2 2--3 2--4 2--5 2--6 2--7 2--8 a) Land size b) Project limits c) Preferences d) Participants e) Locations f) Management g) Financing 2.0.1 Projected Land for purchase a) Land Sizes Land sized based on the following figures as per farmers applications for agricultural lands: The plan is to acquire about 70,000 acres of land and use it as follows:a) Company operations both farming and others. b) Project areas services and production c) Social facilities and infrastructure d) Farmers operations e) Commercial and recreation centers f) Mandatory roads 46 Table 9 Proposed Land size Agriculture lands (Farming purposes) Company lands 39,700.00 Communal use lands 60.00 Project lands 819.00 Total (Company and project activities) Farmers farms 40,579.00 28,621 Trading centres 300.00 Lands for sale 28,921 Government lands 500.00 Proposed total 70,000.00 Table 10 Land distribution Land Parcels sizes( Acreage ranges ) 5 to 10 2,442.00 13,392.0 0 272.00 4,423.00 156.00 5,215.00 30.00 2,670.00 17.00 2,750.00 5.00 1,850.00 2.00 11,500.0 0 1.00 28,200.0 0 2,925.00 70,000.0 0 12.5 to 20 25 to 50 60 to 100 125 to 200 250 to 500 Company Company Totals 47 2.0.2 Land Uses The proposal is to sub divide the whole land into small parcels ranging from 5 acres to 500 acres and sell them for farming purposes to the farmers. About 3,000 farmers will be settled on about 29,000 acres. The company and the project will take the remaining 41,000. Out of the 41,000, road reserve will take 500 acres and 300 acres for trading centres (T.C.) the project 825 acres balance is for Samuland Investments Company as a farmer. It is important to note that the farming industry is allocated about 68,325 acres to answer the hunger question. Table 11 Land costs distribution centres 2--9 Land size for project use Physical Ground 2--10 2--11 2--12 2--13 2--14 2--15 2--16 2--17 2--18 2--19 2--20 2--21 2--22 2--23 Purchase of all lands ( Projected 7000 Acres) To acquire these lands the following are considered a) Land price to the vendors b) Mandatory costs 1) Registration fees 2) Conveyance costs 3) Stamp duties 4) Costs title deeds and Leases c) Agents’ commissions d) Mandatory preparation costs 1) Perimeter survey 2) Land use planning 3) Ground survey 4) Allocation costs 5) Transport and accommodation costs 2.0.3 Tools and Machines To operate, the farmers and the company will require both tools, machines, motor vehicles and other types of heavy machines. The proposal is that farmers with more than 25 acres of land be allocated with a tractor with minimum implements to enable ploughing and harrowing. If more than 50 acres a pick up vehicle be added to his allocation. The humanitarian sector be allocated other types of machines for their operations. To assist the farmers below 25 acres the project to have a department with these tools and machines for all their needs including harvesting machines for hire. Table 12 Tools and machines and other operating areas 2--24 Costs of machines and tools involved 2--25 These are the tools and machines the will be required to operate in the company and project area. The farmers will buy them from the stores facilities. 48 2--26 2--27 2--28 2--29 2--30 2--31 2--32 2--33 2--34 2--35 2--36 2--37 2--38 2--39 2--40 2--41 2--42 2--43 2--44 2--45 2--46 2--47 2--48 2--49 Project operations Cost of Daily operations in the project area The areas that the project will restrict its operations as per the objectives of the mission. Main operation areas are; 1) Offices 2 ) Factories 3) Farms 4) Stores 5) Schools and hospitals 6) Transport 7) Constructions Day to day operations by; HQ a ) Company and project b) Farmers c) Traders in commercial centres Categories of funding to be established as: a) Head Office Operations b) Head Quarter Subsidiary Operations c) Land acquisition costs price d) Company farms operations e) Support Services f) Stores and Supplies g) Agriculture services h) Social services i) Farmers operations To manage and coordinate the project accounts involved a) Head Office Operations b) Head Quarter subsidiary Operations c) Land acquisition costs price Independent offices attached to HQ Operations Funding Project HQ Operations HQ Funding farmer’s day to day operations HQ 2--50 2--51 2--52 2--53 2--54 2--55 2--56 2--57 Farms operated by the company a) The Sacco bank b) Trading centres trade loans c) Stores and supplies Farms owned by the company ( Samuland Investments Co. for its operations as a farmer Funds allocated as; a) Crop farms b) Livestock farms c) Bio Fuel farms ( and Hospitality facilities) GRD/L 2--58 2--59 2--60 2--61 49 2.0.4 Operations Funds Operations funds will be as follows a. b. c. d. Head quarter activities Division and departments activities Farmers day to day operations Sacco funds In the allocation of funds a distinction will be made for commercial and humanitarian activities. In summary the funds will be marked as follows: 1) Total project funds required 2) Funds sources a) External funds b) Internal funds 3) Activity category a) Commercial use b) Humanitarian uses 4) Funds general application a) Land acquisition b) Fixed developments c) Movable assets d) Operations funds e) Sacco funds Table 13 Major Areas of Operations 2--62 Stores and materials supply and sourcing HQ 2--63 2--64 2--65 2--66 2--67 2--68 2--69 2--70 Support services such as water and HQ roads 2--71 2--72 50 management and control and sourcing of all industries, consumption and farm inputs these are divided as: a) farm inputs b) Dry foods c) Machines and tools d) Construction and building materials e) Light industries f) Agro-Industries To enable other areas to operate by sourcing the required services and materials These cover: a) Water sourcing, storage and delivery systems 2--73 2--74 2--75 2--76 2--77 Agriculture services to be provides HQ to farmers 2--78 2--79 2--80 2--81 2--82 2--83 2--84 2--85 2--86 Welfare of the farmers HQ 2--87 2--88 2--89 2--90 2--91 2--92 2--93 Allocate funds to these divisions HQ 2--94 2--95 2--96 2--97 2--98 2--99 2--100 2--101 b) building and maintenance of roads and required buildings c) Transport and repair works d) Printing press e) Sewages works To take care of all farm matters a) Extension services b) Seedling nurseries c) Environment matters d) Research services e) Collection centres f) Sales and marketing g) Quantity and Quality control h) Implements Hire services To deal with matters of social benefits to the project community e.g. education and health a) Education department 1) Regular education 2) Adult education 3) Technical education 4) Special needs education 5) Advanced institutions of learning Cost the individual divisions as per required duties costs ( Accounts Names) Main operation centres are as : a) Project HQ Operations b) Support services c) Company Farms d) Stores and Supplies d) Agriculture Services e) Social Welfare services f) Farmers Agriculture Welfare Services Table 14 Main Categories of operations centres as identified for the project 2--102 Main funds Accounts 2--103 HEAD QUARTER OPERATIONS ACCOUNT 2--104 LAND PURCHASE ACCOUNT 2--105 HEAD QUARTER SUBSIDIARIES ACCOUNT Day to day operations of project Purchase of all lands ( Projected 7000 Acres) Other Independent offices attached to HQ for financial services 51 2--106 SUPPORT SERVICES ACCOUNT 2--107 COMPANY FARMS MAIN ACCOUNT 2--108 2--109 2--110 2--111 2--112 To enable other areas to operate sourcing the required services and materials Farms owned by the company ( Samuland Investments Co. for its operations as a farmer STORES AND SUPPLIES MAIN management and control of all industries ACCOUNT consumption and materials sourcing AGRICULTURE DIVISION To take care of all matters related to farm FUNDS ACCOUNT activities SOCIAL WELFARE DIVISION To deal with matters of social benefits to the MAIN ACCOUNT project community e.g. education and health FARMERS FUNDS The grouping done for allocation to farmers ALLOCATION MAIN ( To departments to fund them) ACCOUNT PROJECT FUNDS As per divisions summary of accounts total ACCOUNT Table 15 Applications Centres Funds Allocation 2--113 2--114 FUNDS SUMMARY Lands Kshs. US $ Total land costs 10,800,000,00 105,365,8 0 54 2--115 2--116 2--117 Overheads Fixed Assets Movable Assets Head Quarter operations Permanent developments 2,750,000,000 26,829,26 8 6,830,000,000 66,634,14 6 Assets 2,120,000,000 20,682,92 7 2--118 2--119 Operating Funds Total Project funds Funds for day to day operations 15,000,000,00 146,341,4 0 63 Total needed 37,500,000,00 365,853,6 0 59 52 Graphic 1 Funds Application Data Graphic No 1 Funds Application data 40,000,000,000 35,000,000,000 30,000,000,000 25,000,000,000 20,000,000,000 15,000,000,000 10,000,000,000 5,000,000,000 Lands Overheads Fixed Assets Movable Assets Operating Funds Total Project funds 2.0.6 Projected costs break down. The funds as costed are analysed in details as per the table below. Table 16 Projected funds break down (Land acquisition costs) 2--121 2--122 2--123 2--124 2--125 2--126 2--127 2--128 PROJECT FUNDS BREAKDOWN Funds application analysis Land Costs Land costs Kshs US $ 9,500,000,000 92,682,927 6,500,000 63,415 765,000,000 7,463,415 3,500,000 34,146 285,000,000 2,780,488 200,000,000 1,951,220 40,000,000 390,244 Conveyance Stamp Duty Titles Survey work 2--129 Commissions Agents (Brokers) 2--130 Planning & consultations 2--131 Lands 10,800,000,000 105,365,854 53 2.0.7 Overhead funds Table 17 overhead costs 2--132 Overheads 2--133 Financial costs 625,000,000 6,097,561 15,000,000 146,341 60,000,000 585,366 75,000,000 731,707 50,000,000 487,805 75,000,000 731,707 250,000,000 2,439,024 250,000,000 2,439,024 900,000,000 8,780,488 75,000,000 731,707 375,000,000 3,658,537 2,750,000,000 26,829,268 1,300,000,000 5,000,000,000 80,000,000 250,000,000 200,000,000 6,830,000,000 12,682,927 48,780,488 780,488 2,439,024 1,951,220 66,634,146 2--134 Preliminary expenses 2--135 Stationery 2--136 Travelling expenses 2--137 Telephones 2--138 Misclls overheads expenses 2--139 Transport 2--140 Insurances 2--141 Salaries & wages 2--142 Expendable material 2--143 Diesel and other fuels 2--144 Overheads 2.0.8 Fixed developments Table 18 fixed developments 2--145 2--146 2--147 2--148 2--149 2--150 2--151 Fixed Assets Buildings Dams & water system Fencing Roads construction expenses Irrigation works Fixed Assets 54 2.0.9 Movable assets Table 19 movable assets 2--152 2--153 Movable Assets Livestock 2--154 Implements 2--155 Operation tools 2--156 Furniture & Fittings 2--157 Tractors 2--158 Heavy Plants 2--159 Motor Vehicles -3 tons 2--160 M/v + 3 tons 2--161 Movable Assets 80,000,000 780,488 85,000,000 829,268 725,000,000 7,073,171 175,000,000 1,707,317 200,000,000 1,951,220 250,000,000 2,439,024 230,000,000 2,243,902 375,000,000 3,658,537 2,120,000,000 20,682,927 750,000,000 7,317,073 1,000,000,000 9,756,098 2,750,000,000 26,829,268 4,500,000,000 43,902,439 6,000,000,000 58,536,585 15,000,000,000 146,341,463 37,500,000,000 365,853,659 2.1.0 Operating funds Table 20 operations funds 2--162 2--163 2--164 2--165 2--166 2--167 2--168 2--169 Capital Funds Imprest funds Trading centres funds Farmers operating funds farm inputs (stores) Start -up Cash (Sacco Bank) Operating Funds Total Project Cost 2.1.1 FUNDS APPLICATIONS Funds Allocation Plan The project funds are meant to enable the project meet its objectives and especially the main stakeholders. The table shows how the funds have been distributed to the various sections of operations, among them the farmers. The farmers account has not been allocated any funds because the farmers will source their needs from the various project departments. 55 Lands for their use will be allocated by lands department that has already been allocated its land costs funds. Operations fund will come from the Headquarter subsidiaries (the Sacco and Trading Centres funds). Other services and farm inputs have been similarly catered for through the project departments. The projected financing funds will be applied as analysed in table The most important objective is to satisfy all the stakeholder or parties that have an interest in the project. The project funds will be used for the following purposes; a) Commercial activities b) Humanitarian activities 2.1.2 Tables list Various tables have been drawn to tabulate the funds allocations for commercial and humanitarian activities Table A; Land costs. From item 2—170 to 2—181. Table B; Overheads from item 2—182 to 2--194 Table C; Fixed developments from item 2—195 to 2--201 Table D Movable assets from item 2—202 to 2--211 Table E Operating capital funds from item 56 2—212 to 2--219 Table A Lands funds 2--170 2--171 2--172 2--173 2--174 2--175 2--176 2--177 2--178 2--179 2--180 2--181 FUNDS APPLICATION BREAKDOWN FUNDS Project BREAKDOWN COSTING ANALYSIS Lands Costs Data Kshs Land costs 9,500,000,00 0 Conveyance 6,500,000 Stamp Duty 765,000,000 Titles 3,500,000 Survey work 285,000,000 Commissions Agents (Brokers) 200,000,000 Planning & consultations 40,000,000 Lands 10,800,000,0 00 Commercial Humanitarian Project Commercial Humanitarian Kshs Kshs US $ US $ US $ 7,600,000,0 00 1,900,000,0 00 92,682,92 7 74,146,34 1 18,536,585 5,200,000 1,300,000 63,415 50,732 12,683 612,000,000 153,000,000 7,463,415 5,970,732 1,492,683 2,800,000 700,000 34,146 27,317 6,829 228,000,000 57,000,000 2,780,488 2,224,390 556,098 160,000,000 40,000,000 1,951,220 1,560,976 390,244 32,000,000 8,000,000 390,244 312,195 78,049 8,640,000,0 00 2,160,000,0 00 105,365,8 54 84,292,68 3 21,073,171 57 Table B overheads 2--171 2--172 2--173 2--182 2--183 2--184 2--185 2--186 2--187 2--188 2--189 2--190 2--191 2--192 FUNDS BREAKDOWN COSTING ANALYSIS Lands Costs Data Project Commercial Humanitarian Project Commercial Humanitarian Kshs Kshs Kshs US $ US $ US $ Overheads Financial costs Preliminary expenses Stationery Travelling expenses Telephones Misclls overheads expense Transport - - - 625,000,00 0 500,000,000 125,000,000 6,097,561 4,878,049 1,219,512 15,000,000 12,000,000 3,000,000 146,341 117,073 29,268 60,000,000 48,000,000 12,000,000 585,366 468,293 117,073 75,000,000 60,000,000 15,000,000 731,707 585,366 146,341 50,000,000 40,000,000 10,000,000 487,805 390,244 97,561 75,000,000 60,000,000 15,000,000 731,707 585,366 146,341 250,000,00 0 200,000,000 50,000,000 2,439,024 1,951,220 487,805 250,000,00 0 200,000,000 50,000,000 2,439,024 1,951,220 487,805 900,000,00 0 720,000,000 180,000,000 8,780,488 7,024,390 1,756,098 75,000,000 60,000,000 15,000,000 731,707 585,366 146,341 Insurances Salaries & wages Expendable material 58 2--193 Diesel and other fuels 2--194 375,000,00 0 300,000,000 75,000,000 3,658,537 2,926,829 731,707 2,750,000, 000 2,200,000,000 550,000,000 26,829,26 8 21,463,415 5,365,854 Overheads Table C fixed developments 2--195 Fixed Assets - 2--196 - - 260,000,000 12,682,927 10,146,341 2,536,585 5,000,000,000 4,000,000,000 1,000,000,000 48,780,488 39,024,390 9,756,098 Buildings 1,300,000,000 1,040,000,000 2--197 2--198 2--199 Dams & water system Fencing 2--200 Roads construction expenses Irrigation works 2--201 Fixed Assets 80,000,000 64,000,000 16,000,000 780,488 624,390 156,098 250,000,000 200,000,000 50,000,000 2,439,024 1,951,220 487,805 200,000,000 160,000,000 40,000,000 1,951,220 1,560,976 390,244 66,634,146 53,307,317 13,326,829 6,830,000,000 5,464,000,000 1,366,000,000 Table D Movable assets 2--202 Movable Assets - - - 780,488 624,390 156,098 2--203 Livestock 80,000,000 64,000,000 59 16,000,000 2--204 Implements 85,000,000 68,000,000 17,000,000 829,268 663,415 165,854 725,000,000 580,000,000 145,000,000 7,073,171 5,658,537 1,414,634 175,000,000 140,000,000 35,000,000 1,707,317 1,365,854 341,463 200,000,000 160,000,000 40,000,000 1,951,220 1,560,976 390,244 250,000,000 200,000,000 50,000,000 2,439,024 1,951,220 487,805 230,000,000 184,000,000 46,000,000 2,243,902 1,795,122 448,780 375,000,000 300,000,000 75,000,000 3,658,537 2,926,829 731,707 20,682,927 16,546,341 4,136,585 2--205 Operation tools 2--206 Furniture & Fittings 2--207 Tractors 2--208 Heavy Plants 2--209 Motor Vehicles -3 tons 2--210 M/v + 3 tons 2--211 Movable Assets 2,120,000,000 1,696,000,000 424,000,000 Table E Operating capitals fund 2--212 Operating Capital Funds 2--213 Imprest funds - - - - 750,000,000 600,000,000 150,000,000 7,317,073 5,853,659 1,463,415 1,000,000,000 1,000,000,000 - 9,756,098 9,756,098 - 2,750,000,000 2,750,000,000 - 26,829,268 26,829,268 - 4,500,000,000 4,500,000,000 - 43,902,439 43,902,439 - 6,000,000,000 6,000,000,000 - 58,536,585 58,536,585 - 2--214 Trading centres funds 2--215 Farmers operating funds 2--216 farm inputs (stores) 2--217 Start -up Cash (Sacco bank) 60 2--218 Operating Funds 15,000,000,000 14,850,000,000 150,000,000 146,341,463 144,878,049 1,463,415 2--219 Total Project Cost 37,500,000,000 32,850,000,000 4,650,000,000 365,853,659 320,487,805 45,365,854 61 2.1.3 PROJECT COSTING SUMMARY The project costs are high and the amounts involved huge. The loan amount is Kshs 26.0 Billion (US $ 253.7) and assuming the interest rate is maximum 4.5% p.a. the interest will be about 12.5 Billion making total repayable Kshs 38.5 billion ( US $ 375.6 ). The project has to source another Kshs 12.0 billion (US $ 117.1) from internal financing hence a total of Kshs 50 Billion (US $ 487.8). In addition, the project has to generate funds to cover all mandatory and necessary operational needs. There are other financial, social, and moral commitments and obligations to be looked into too. The project has to cover the following items:1) Repayment of principle amount 2) Payment of interests on principle 3) Source internal financing funds 4) Source operations funds 5) Source for expansion funds 6) Source contingencies funds 7) Great savings accounts to avoid later external borrowing. The project funds must therefore be utilized to the maximum benefit of the project and the community in the most prudent and economical ways. This will give a way for a peaceful and satisfying exit and hence set a precedent that can be enumerated by many in the struggle to eliminate poverty from the community The costs for starting, operating and sustaining the project are based on the data of operations costs. The choice of items is based on the needs required to achieve and sustain the goals and objectives of the project. Mission objectives being at the front. All the funds will be in a main project funds account shown as Number 2—11. Funds movement will follow a strict movement pass that will leave a trace hence control and loss detection becoming easy. 2.1.4 Project Stakeholders (Interested Parties) There are many stakeholders and the success or failure of it will mean quite a lot to many. The main parties with interests are; 1) The financiers 2) The company directors 3) Employees and think tank 4) The beneficiaries 5) The state 6) The main company 7) The external fraternity of financiers and governments (global impact) 62 Table 21 Interested Stake holders All these parties have an interest in the project as each has a particular line of concern. 1) Some will be interested in the benefits they get as individuals 2) Others on the social impact positive or negative 3) Others where it can be a solution to many ills related to poverty and other lacks In all cases this project will have a big social impact, it is the desire of the directors that the impact be positive 1) The financiers have an interest; A) Project company to repay loans and deliver to the beneficiaries B) Beneficiaries to see whether they have benefited from the financing to the maximum C) The management and employees as to whether their experience can be used elsewhere 2) The state has an interest in: a) Project operations to solve similar national problems of poverty b) Whether such approaches to development can improve national growth c) Whether such types of financing have benefited both the beneficiaries as individuals and as a nation. 3) The global community has interest in : 63 i) Whether such a project can be a solution to global poverty and especially food security ii) Whether more funds can be allocated to such projects by more internal groups such that all stakeholders benefit. 3.0.0 FUND SOURCING The project will be financed with both borrowed and generated funds and It is proposed that the funding of the project activities be done from the following sources; 1) External sources in the form of loans or grants 2) Internal sources in the form of income generating activities. 3) Contributions by the directors. Table 22 Funds Sourcing SAMULAND PROJECTS PLAN FUND SOURCING 3--0 PROPOSED FUNDS SOURCING PLAN 3--1 FUNDS BREAKDOWN Project Commercial Humanitarian 3--2 Kshs Kshs Kshs 3--3 External financing 25,625,000,000 20,500,000,000 5,125,000,000 3--4 Internal financing 11,875,000,000 9,500,000,000 2,375,000,000 3--5 Project Main Funds 37,500,000,000 30,000,000,000 7,500,000,000 64 Graphic 2 Funding Sources Data Graphic No. 2 Funding Sources Data 40,000,000,000 35,000,000,000 30,000,000,000 25,000,000,000 20,000,000,000 15,000,000,000 10,000,000,000 5,000,000,000 Project External financing Commercial Humanitarian Internal financing Project Main Funds 3.0.1 PROJECT FINANCING AND APPLICATIONS The project will be financed with funds sourced from the following areas: 1) External Sources as loans 2) Internal funds generated from the project activities These funds will be applied in two main activities: 1) Commercial activities 2) Humanitarian activities The loan to borrow is about 68.5% of the project cost while internal financing is 31.5% commercial sector is 80% as the humanitarian is 20% The humanitarian part of the project will generate revenues and be able to contribute towards the repayment of the external obligations. These revenues will mainly be in the form of services and charges made by the relevant departments for services rendered. The project will have to generate revenue so as to cover the following areas: 1) Repayment of external loans and interest 2) Generate funds to cover the internal funding portion 3) Generate funds to sustain the project full cycle without further external borrowing 4) Generate funds for both contingencies and savings 65 3.0.2 FINANCING FUNDS MOVEMENT Chart No. 10 Project general funds movement Project Funds movement External Sources code 131 Project consolidated Funds code A-13 Internal Sources code 132 Directors and shareholders code 133 Project operations funds code 134 Project Activities A-11 & A-12 Commercial code A-132 Humanitarian code A-131 3.0.3 External funds The external funding will play a very important role in the start-up funding as both the directors and the farmers cannot be able to raise the amount necessary even for the purchase of the ranches considering the land prices. Without external help the project will not take off. For all of these activities to be achieved the company has proposed to seek funding for the project both internally and externally. The proposal is to seek 68.3 % funding externally and to fund the 31.7 % internally through project operations to generate these extra funds. The funds will be applied as per the following plan: The start-up shall be applied in: A. Acquisition of property B. Purchase of inputs C. Payments for salaries and wages D. Day to day operations expenses E. Capital developments 66 F. Generation of revenue for the project and company The initial loan amount will be used for both commercial and humanitarian use. After the project has stabilized it will be able to generate and use its own revenue funds for social services and other activities. The company will need funding for its operations during the first five years mainly for purchasing the projected farms and development of infrastructure. The day to day operations shall need external financing for a time. Our plan is to source Kshs. 25,625,000,000 externally and Kshs 11,875,000,000.0 internally. (US$ 250,000,000.00 and US$ 115,853,650 respectively at Ksh.102.5 per US dollar) The external loans will be negotiated for a term of 25 years including a grace period of 3 years and the repayment in 22 yearly instalments which is 12 monthly instalments per year. The interest rate being 3.25% to 4% per annum. 3.0.4 SOURCES OF INTERNAL FUNDING Internal financing is the financing of projected activities with internally generated funds. The whole project is to cost about Kshs 37,500,000,000 (US $ 365,853,650) of which Kshs 25, 6250,000,000.00 and 11,875,000,000.00 are external and internal funds respectively Internal financing will be considered as a debt payable, only superseded by external loan repayment in the order of commitment obligation priorities. Like all other operations funding, the internal financing will be sourced from the following areas: 1) From sales proceeds of the project and company 2) From the charges revenues made by the company on all services rendered 3) From the direct revenue received from a relevant operation center ( e.g. Water extensions financed with water charges while medical charges shall expand medical services) 4) The holding account shall be a temporally source for emergency needs It will be mandatory that every farmer shall have his sales proceeds reduced by 25% as “Holding Fund Account” and be deposited into an interest bearing account. The process for deduction is as per chart below Internal funding is meant to cover the 31.7 % of the project cost as evaluated by the directors as per the project plan. 67 Chart 7 Internal funding sources 3.0.5 Sales Proceeds (Charging Procedure) Table 23 Sales proceeds calculations Sales proceeds handling process items handled Quantity units Weight Cabbage cattle Total sales proceeds 10 tons 5 cost per unit Total cost 25,000 250,000 75,000 375,000 625,000 Handling charge 2.5% 15,625 crop /Produce cess 10% total charge 62,500 78,125 Balance Payable 546,875 With holding account 25% balance to farmers account 136,718 410,156 3.0.6 PROJECT FUND SOURCING AND APPLICATION Project funds as per the costing data will be used for the purposes defined in the project costs. Data tables; 1) Table A Lands data item 3—7 to item 3—16. 2) Table B Overhead expenses item 3—17 to item 3—29. 68 3) Table C Fixed developments item 3—30 to item 3--36 4) Table D Movable assets item 3—37 to item 3--46 5) Table E Working operations funds item 3—47 to item 3—54 6) Table F funds Application summary item 3—55 to item 3--67 69 Table 24 Funds Expenditure - Land acquisition expenditure 3--7 3--8 3--9 SOURCED FUNDS APPLICATIONS Lands Funds Land costs Project Commercial Humanitarian 9,500,000,000 7,600,000,000 1,900,000,000 3--10 3--11 3--12 3--13 3--14 3--15 3--16 External Internal Total 9,500,000,000 - 9,500,000,000 Conveyance 6,500,000 5,200,000 1,300,000 6,500,000 - 6,500,000 765,000,000 612,000,000 153,000,000 765,000,000 - 765,000,000 3,500,000 2,800,000 700,000 3,500,000 - 3,500,000 285,000,000 228,000,000 57,000,000 285,000,000 - 285,000,000 200,000,000 160,000,000 40,000,000 200,000,000 - 200,000,000 40,000,000 32,000,000 8,000,000 40,000,000 - 40,000,000 Stamp Duty Titles Survey work Commissions Agents (Brokers) Planning & consultations Lands 10,800,000,000 8,640,000,000 2,160,000,000 10,800,000,000 70 - 10,800,000,000 Table 25 Overhead expenses 3--17 3--18 Overheads Financial costs 625,000,000 3--19 3--20 3--21 3--22 3--23 3--24 3--25 3--26 3--27 3--28 3--29 500,000,000 125,000,000 625,000,000 - 625,000,000 Preliminary expenses 15,000,000 12,000,000 3,000,000 5,000,000 10,000,000 15,000,000 60,000,000 48,000,000 12,000,000 10,000,000 50,000,000 60,000,000 75,000,000 60,000,000 15,000,000 25,000,000 50,000,000 75,000,000 50,000,000 40,000,000 10,000,000 15,000,000 35,000,000 50,000,000 75,000,000 60,000,000 15,000,000 25,000,000 50,000,000 75,000,000 250,000,000 200,000,000 50,000,000 100,000,000 150,000,000 250,000,000 250,000,000 200,000,000 50,000,000 150,000,000 100,000,000 250,000,000 900,000,000 720,000,000 180,000,000 250,000,000 650,000,000 900,000,000 Stationery Travelling expenses Telephones Misclls overheads expenses Transport Insurances Salaries & wages Expendable material 75,000,000 60,000,000 15,000,000 25,000,000 50,000,000 75,000,000 375,000,000 300,000,000 75,000,000 150,000,000 225,000,000 375,000,000 Diesel and other fuels Overheads 2,750,000,000 2,200,000,000 550,000,000 1,380,000,000 1,370,000,000 2,750,000,000 71 Table 26 Fixed developments 3--30 Fixed Assets - 3--31 3--32 3--33 3--34 3--35 3--36 Buildings 1,300,000,00 0 1,040,000,00 0 260,000,000 500,000,000 800,000,000 1,300,000,00 0 5,000,000,00 0 4,000,000,00 0 1,000,000,00 0 3,500,000,00 0 1,500,000,00 0 5,000,000,00 0 80,000,000 64,000,000 16,000,000 50,000,000 30,000,000 80,000,000 250,000,000 200,000,000 50,000,000 100,000,000 150,000,000 250,000,000 200,000,000 160,000,000 40,000,000 130,000,000 70,000,000 200,000,000 6,830,000,00 0 5,464,000,00 0 1,366,000,00 0 4,280,000,00 0 2,550,000,00 0 6,830,000,00 0 Dams & water system Fencing Roads construction expenses Irrigation works Fixed Assets Table 27 Movable assets 3--37 Movable Assets - 3--38 3--39 3--40 3--41 3--42 Livestock 80,000,000 64,000,000 16,000,000 43,000,000 37,000,000 80,000,000 85,000,000 68,000,000 17,000,000 65,000,000 20,000,000 85,000,000 450,000,000 275,000,000 725,000,000 75,000,000 100,000,000 175,000,000 Implements Operation tools 725,000,000 580,000,000 145,000,000 175,000,000 140,000,000 35,000,000 200,000,000 160,000,000 40,000,000 Furniture & Fittings Tractors 72 125,000,000 75,000,000 200,000,000 3--43 3--44 3--45 3--46 Heavy Plants 250,000,000 200,000,000 50,000,000 75,000,000 175,000,000 250,000,000 230,000,000 184,000,000 46,000,000 150,000,000 80,000,000 230,000,000 375,000,000 300,000,000 75,000,000 182,000,000 193,000,000 375,000,000 Motor Vehicles -3 tons M/v + 3 tons Movable Assets 2,120,000,000 1,696,000,000 424,000,000 1,165,000,000 955,000,000 2,120,000,000 Table 28 Working Operations 3--47 Capital Funds 3--48 Imprest funds 3--49 Trading centres funds 3--50 Farmers operating funds farm inputs (stores) - 3--51 3--52 3--53 3--54 Start -up Cash (Sacco banks) Operating Funds 750,000,000 600,000,000 150,000,000 500,000,000 250,000,000 750,000,000 1,000,000,000 1,000,000,000 - 500,000,000 500,000,000 1,000,000,000 2,750,000,000 2,750,000,000 - 2,750,000,000 - 2,750,000,000 4,500,000,000 4,500,000,000 - 2,750,000,000 1,750,000,000 4,500,000,000 6,000,000,000 6,000,000,000 - 1,500,000,000 4,500,000,000 6,000,000,000 15,000,000,00 0 14,850,000,00 0 150,000,000 8,000,000,000 7,000,000,000 15,000,000,00 0 37,500,000,00 0 32,850,000,00 0 4,650,000,00 0 25,625,000,00 0 11,875,000,00 0 37,500,000,00 0 Total Project Cost 73 Table 29 Fund Application summary 3--55 3--56 3--57 3--58 3--59 Summary Operating Funds 3--66 3--67 External Internal Total 10,800,000,000 8,640,000,000 2,160,000,00 0 10,800,000,00 0 - 10,800,000,00 0 2,750,000,000 2,200,000,000 550,000,000 1,380,000,000 1,370,000,000 2,750,000,000 6,830,000,000 5,464,000,000 1,366,000,00 0 4,280,000,000 2,550,000,000 6,830,000,000 2,120,000,000 1,696,000,000 424,000,000 1,165,000,000 955,000,000 2,120,000,000 15,000,000,000 14,850,000,00 0 150,000,000 8,000,000,000 7,000,000,000 15,000,000,00 0 37,500,000,000 32,850,000,00 0 4,650,000,00 0 25,625,000,00 0 11,875,000,00 0 37,500,000,00 0 Project Commercial Humanitarian External Internal 25,625,000,000 20,500,000,00 0 5,125,000,00 0 25,625,000,00 0 - 25,625,000,00 0 11,875,000,000 9,500,000,000 2,375,000,00 0 - 11,875,000,00 0 11,875,000,00 0 37,500,000,000 30,000,000,00 0 7,500,000,00 0 25,625,000,00 0 11,875,000,00 0 37,500,000,00 0 Fixed Assets 3--61 3--64 3--65 Humanitarian Overheads Movable Assets 3--63 Commercial Lands 3--60 3--62 Project Total Project funds FUNDING SOURCES SUMMARY External financing Internal financing Project Main Funds 74 Graphic 3 Funds sources and Application 40,000,000,000 Graphic No.3 Funds sources and Applications 35,000,000,000 30,000,000,000 25,000,000,000 20,000,000,000 15,000,000,000 10,000,000,000 5,000,000,000 Project Commercial External financing Humanitarian Internal financing External Internal Total Project Total Funds 3.0.7 Table No. 23 Project Goals and objectives Summary 3--68 3--69 3--70 3--71 3--72 3--73 3--74 3--75 3--76 3--77 3--78 3--79 3--80 3--81 A) PROJECT SUMMARY a) The project mission is to eradicate poverty using various activities undertaken by 1) The poor that need the assistance of those that are capable and not lacking in some areas 2) The capable and willing to help and ready to listen and advice others 3) A team of managers willing to work, coordinate and guide with integrity and be accountable. b) That poverty eradication means enabling those that are lacking can be productive and economically able if they Follow guidance with a willing heart. c) That the project as costed will be able to deliver both the materials and services required as capable of eradicating poverty d) That if the funds are applied as planned the project will succeed B ) COST OF FINANCING The cost of financing the project are as: a) The cost of interest on the principle amount b) The sourcing of the principle amount repayable c) Cost of sustaining cash flow to meet all the operations costs 75 3--82 3--83 3--84 3--85 3--86 3--87 3--88 3--89 3--90 C) PROJECT GOALS Goals to achieve 1) Settle about 3000 farmers 2) Create an economic base for the company and the farmers a) To the farmer a land of their own b) To the company a bank for further expansion and property enough to use as collateral in future 3 )Create community with integrity and dignity willing to assist others 4) Form a generation capable of people to carry on the poverty eradication programs 5) Repay all borrowed funds and meet goals to the satisfaction of the stakeholders 76 4.0.0 EXIT PLAN Exit occurring The exit of the project shall be comprised of the following events taking place: 1) Repayment of all external obligations 2) Repayment by all farmers all the land purchase price as per the allotment 3) Repayment by the farmers all stores and supplies as per the initial allocation The happening of these events will enable the company to issue and release individual land title deeds to the farmers and the company. To successfully exit, the project has to act as follows: 1) Set project and company objectives 2) Evaluate the cost of exiting as per objectives 3) Plan a strategic approach to reach the goals 4) Implement the exit plan as per the strategic approach Table 30 Exit commitments EXIT PLAN 4--0 4--1 4--2 4--3 4--4 4--5 4--6 EXIT PROJECT EXIT OBLIGATIONS PROJECT EXIT REQUIRED OBLIGATIONS EXIT OBJECTIVES a) Create economic base b) Main obligation c) Goals of the mission 4--7 4--8 EXIT PARTIES EXIT PARTIES 4--9 a) External financiers Loan b) Company interests c) Shareholders interests 4--10 4--11 Project has to repay all borrowed funds and meet goals to the satisfaction of the stakeholders Repayment of borrowed funds and meeting goals To satisfy parties interests and goals Enable the beneficiaries `Repayment of loan To create self- confidence and satisfaction Interested parties that have a stake or benefit in the project Satisfaction in helping and increased revenue Increase in value hence profitability Benefit from the operations, satisfaction and confidence 77 4--12 4--13 4--14 4--15 4--16 4--17 4--18 4--19 4--20 4--21 4--22 4--23 4--24 4--25 4--26 4--27 4--28 4--29 4--30 4--31 d) Farmers interests e) National interests f) Global interests Source of shelter, food and clothing Increase national revenue Create confidence for further assistance Exit Assumptions Assumptions Conditions held as true and forming a base for certain conclusions A) It is assumed that the first three years will be a grace period where the interest will accumulate At about 4% pa simple interest. B) The next 22 years will accumulate interest on reducing balance at the same rate during the loan period. C) The plan is to borrow about 68.5% of the project cost and finance the balance with project t operations. This will be internal borrowing. D) Internal financing will be done out of any funds held by the project as the project will have the main company engaged in commercial Activities. The internal financing (Kshs 11,875,000,000) will take about 10 years. E) The fund sourcing will be based on the assumption the loan commitment and expansion funding is about 31.5% of the sale generated F) Other requirements are calculated on this figure of required sales revenue. EXIT COSTING Amount to source DATA for a satisfactory exit Total Project External Internal funding funding A) External Principle loan financing amount 25,625, 000,00 0 1) First 3 Yrs. Grace period interest 3,075,0 00,000 2) next 22 Yrs. Interest during producti 12,628, on 000,00 0 Total Interest Total interest payable 15,703, 000,00 0 78 Project 25,625, 000,000 3,075,0 00,000 12,628, 000,000 15,703, 000,000 4--32 4--33 4--34 3) Total payable external Principle and interest 4) Internal financing Funding internaly generate d Mandatory financing required 5) Amounts to finance 4--35 External mandatory payment 4--36 Repayment Costs 4--37 a) External Loan 4--38 4--39 4--40 4--41 4--42 4--43 4--44 4--45 4--46 4--47 4--48 4--49 4--50 4--51 b) Annual instalme nt c) Monthly GOALS 41,328, 000,00 0.00 41,328, 000,00 0 Principle - 41,328, 000,000 11,875,0 00,000 11,875, 000,000 11,875,0 00,000 53,203, 000,000 Interest Total Payable Principle 25,625, 000,00 0 15,703,0 00,000 41,328, 000,000 instalme nt 1,164,7 72,727 713,772, 727 1,878,5 45,455 paymen t 97,064, 394 59,481,0 61 156,545 ,455 Annual monthly Objectives to meet % on sales A) External Loan B) Internal financing 1)Total amounts to finance Savings and Contingencies C) Reserve funds D) Savings External repayments mandatory expansion funds Total mandatory to source 42,000,000,000 27 12,000,000,000 8 54,000,000,000 35 5,000,000,000 3 10,000,000,000 6 15,000,000,000.00 9.62 72,000,000,000 46 15,000,000,000 10 Contingency funds To finance future expansion 2) Total savings Production and Running expenses Operations cost Overhead costs Recurrent operations Administration of project flow 79 4--52 4--53 4--54 3) Total Expenses 4) Projected Sales and Services Proposed minimum collections 87,000,000,000 56 156,000,000,000 100 Graphic Presentation of Projected sales and services receipts 4--56 4--57 Kshs. Loan Repayment 4--58 4--60 Mandatory expansion Mandatory to source Contingency funds 4--61 Future expansion 4--62 Recurrent operations 4--63 Overheads 4--64 Proposed collections 4--59 42,000,000,000 27 12,000,000,000 8 54,000,000,000 35 5,000,000,000 3 10,000,000,000 6 72,000,000,000 46 15,000,000,000 10 156,000,000,000 100 4—65 Graphic No. 4 Graphic 4 Exit funds as required Grahic No 4. Exit Funds as required 180,000,000,000 160,000,000,000 140,000,000,000 120,000,000,000 100,000,000,000 80,000,000,000 60,000,000,000 40,000,000,000 20,000,000,000 - 80 Table 31 Exit Funds Sources Data 4--66 4--70 EXIT FUNDS SOURCING PLAN SOURCING STRATEGY A) Maximize Productivity B) Improve social wellbeing C) Exit Funding Sources 4--71 4--72 4--73 4--74 Table of Funds Sources Sales and Services Farm Produce Sales Crops sales by company 4--75 4--76 Livestock sales by company Medical charges 4--77 School fees charges 4--78 Water charges account(sales data) Handling Charges 4--67 4--68 4--69 4--79 4--80 4--81 4--82 4--83 4--84 4--85 Crop cess charges Exit sourcing solutions To provide required funds social responsibilities to motivate the farmers Major sources of funds to enable exit Water usage charge made to the consumers A charge to be made on all produce handled by the transport department A charge to be made on all produce on the project area, industrial or farm product Agriculture services Charges Industrial productions Stores sales sales after the initial allocations on credit Kshs. US $ 10,000,000,000 97,560,976 3,500,000,000 34,146,341 4,500,000,000 43,902,439 2,500,000,000 24,390,244 2,500,000,000 24,390,244 3,500,000,000 34,146,341 8,000,000,000 78,048,780 - - 11,000,000,000 107,317,073 35,000,000,000 341,463,415 500,000,000 4,878,049 TC Plots sales Internal overdrafts - 4--86 4--87 4--88 Investments interests (Banks) Withholding funds 12,000,000,000 117,073,171 10,000,000,000 97,560,976 52,000,000,000 507,317,073 Loans repayment by farmers and project 81 4--89 Directors contributions 1,000,000,000 4--90 Total Miscellaneous incomes 156,000,000,000 1,521,951,220 Table 32 Exit Summary 4--91 4--92 Exit Summary Crops sales by company 4--93 4--94 Livestock sales by company Medical charges 4--95 School fees charges 4--96 4--97 Water charges account(sales data) Handling Charges 4--98 Crop cess charges 10,000,000,000 3,500,000,000 4,500,000,000 2,500,000,000 2,500,000,000 3,500,000,000 8,000,000,000 4--99 Industrial productions 11,000,000,000 4-100 4-101 4-102 4-103 4-104 4-105 9,756,098 Stores sales 35,000,000,000 TC Plots sales 500,000,000 Investments interests (Banks) Withholding funds 12,000,000,000 10,000,000,000 Loans repayment by farmers and project Directors contributions 52,000,000,000 1,000,000,000 82 Graphic No. 5 operations resources 60,000,000,000 50,000,000,000 40,000,000,000 30,000,000,000 20,000,000,000 10,000,000,000 - Graphic 5 Resources from Operations Table 33 Satisfactory Exit 4--107 4--108 4--109 4--110 4--111 4--112 4--113 4--114 To exit with total compliance and satisfaction to all, the company and the project must meet the collection target of Kshs. 156,000,000,000.0 ( US $ 1,521,951,220.0 ) by acting as follows; 1) Provide land to farmers 2) Make farmers productive 3) Operate company farms effectively 4) Utilize available funds to maximum benefit 5) Provide effective management services 83 5.0.0 Project Implementation The implementation of the project will be done by;1) The directors of Samuland Investments Company 2) Members of the think tank 3) Employees of the company and project 4) The farmers who are the beneficiaries of the project 5) Traders and businesspeople in the trading centers. The implementation process will be carried out as planned by the management that has organized the whole process. The managed and organized centres are; The directors have organized the project from these basic level Chart No. 12 Base of organization and management plan Managed and Organized Samuland Investments Co. Company Affairs Project Affairs Table No. 33 Implementation strategy data IMPLEMENTATION STRATEGY 5--0 IMPLEMENTATION STRATEGY 5--1 5--2 5--3 5--4 5--5 5--6 STRATEGY Form operation centres Activity The taking of action by the directors to start the project a) The whole control is with the board of directors "SAMULAND INVESTMENTS COMPANY" b) Guiding principles are held by the " POLICY BOARD" c) Oversighting by the "OVERSIGHT BOARD" d) Ground work will be carried out by the " IMPLEMENTATION BOARD" The starting of the project Allocate duties and responsibilities and command chain 84 5--7 5--8 5--9 5--10 Establish operations centres Form administrative structures Activity Day to day operations of project a) Head Quarter Office b) Division Administration c) Departments administration 85 5.0.1 SAMULAND PROJECT. The project will be implemented and owned by SAMULAND INVESTMENTS COMPANY which is a registered private company. (Under the Laws of Kenya Cap 486). Samuland Investments Company is hereinafter referred to as the company. It has some other two subsidiary companies with designated duties in the project. The management of the project will be controlled by the Board of directors of the company through various boards established and mandated to act by the board of directors. The major boards are; 1) The Policy board the will formulate the policies of the board and the company on all matters. 2) The implementation board that will operate as per the company aims, objectives goals and desires following guidelines as stipulated by the policy board. 3) Oversight board shall oversight the compliance of the implementations as per the planned activities. There will be a coordinating office to ensure free flow of information between the boards. This will be the communication centre for the four sections of the company. 5.0.2 PROJECT COMPONENTS The main components of the project are formulated based on the vision objectives and desires of the directors to help many out of poverty. The components are meant to support each other in all the activities they undertake. Chart 8 Project Implementation Components 86 5.0.3 PRODUCTION DEPARTMENT Chart 9 Production departments 5.0.4 ADMINISTRATION DEPARTMENT Chart 10 Project and company control 5.0.5 Project Control The control of the project is in the hands of the directors who have divided their duties in the above order. In all case any communication between the various boards shall be in writing and passed through the communications control. Any substantial communication 87 that fails this condition is invalid and has consequences. The membership to these boards is as shown in the table below. 88 5.0.6 Boards of Directors Table 34 Boards’ Composition 5--11 5--12 Boards composition 5--13 5--14 5--15 5--16 5--17 5--18 5--19 5--20 5--21 5--22 5--23 5--24 5--25 5--26 5--27 5--28 5--29 5--30 5--31 5--32 5--33 5--34 5--35 Member No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 At HQ Composition of boards Board of Directors Communications Policy code code 1 code 2 3 1 1 2 3 4 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 15 16 17 18 19 20 21 Implementation Oversight code code 5 4 6 7 8 9 14 15 16 17 18 22 89 5--36 5--37 5--38 5--39 5--40 5--41 5--42 5--43 5--44 5--45 5--46 5--47 5--48 5--49 Total 5--50 Quorum 23 24 25 26 27 28 29 30 31 32 33 34 35 23 24 25 26 27 28 29 18 2 30 31 32 33 33 34 35 12 9 34 35 16 10 7 7 4 3 2 5 7 5 9 5--51 No. 1 to 5 presence mandatory 5--52 Others 3 6 90 Table 35 NOTES: on the boards of directors 5--54 1 5--55 5--56 5--57 5--58 5--59 2 5--60 5--61 5--62 5--63 5--64 5--65 5--66 5--67 5--68 5--69 3 4 5 a) No 1 to 18 are the directors and shareholders of Samuland Investments Co. b) No. 1 to 5 are the main shareholders with more than 50% of all the shares c) these 1 to 5 can sit in any group at any time d) In O oversight board, they are only members and cannot vote. They are there as observers only. It is mandatory that at least two be present in the meeting otherwise meeting is null and void. Directors charged with the duty of communicating the policy matters and decisions of both the board of directors and policy board to other sectors. Also link between oversight and board of directors. ( No. 9 and 10) Excusive members of policy board (19 20 and 21) Exclusive members of implementation ( 22 to 29) Exclusive members of oversight ( 30 to 32) Operation Divisions A) Administration B) Production C) Support D) Supplies E) Social Services 5.0.7 PROJECTS MANAGENENT ORGANIZATION Project divisions The project is divided into the following management divisions. Lands and farmers divisions are controlled directly by the head quarter division. The other have a divisional head, while farmers division Sacco and lands are headed by a departmental head. Chart 11 Independent Project Divisions 91 Table 36 Administration set up data 5--70 Administration 5--71 5--72 5--73 5--74 Lands department Support services 5--75 Social services 5--76 Company farms 5--77 Stores and Supplies Farmers Division 5--78 5--79 Operation boards (At the project sites) centre at Hq All matters of security coordination communication and tranquillity in the project a) Chief executive office b) Executive board by the CEO centre at Hq centre at Hq centre at Hq centre at Hq centre at Hq At HQ To enable other areas to operate by sourcing the required services and materials education, health and morals Agriculture production supply of materials All matters related to the farming community 5.0.8 ADMINISTRATION Administration of the project covers even the administration of the company (S.I.C.) hence the board of directors are in the administration Chart 12 Administration department (Head Quarter Division) Table 37 Contents of the Management structures 5--80 5--81 5--82 5--83 5--84 5--85 Board of directors (S.I.C.) Policy board Oversight board At HQ Implementation Board Policies Policy board At HQ At HQ At HQ formulation of guidelines To verify compliance with policy and directives of directors At HQ formulation of guidelines 92 5--86 5--87 5--88 5--89 5--90 5--91 5--92 5--93 5--94 5--95 5--96 5--97 5--98 5--99 5--100 5--101 5--102 5--103 5--104 5--105 5--106 5--107 Operations Policies Policy Management Policy Property ownership Policy Finance policy Settlements Policy Water Policy Document matters guiding this board Document Matters of administration Document Property distribution to stakeholders Document Document Management of funds in project areas For the control and tranquillity in project Document Social Welfare Policy Agriculture Policy Livestock Policy Operations Implementation Board Head Quarter Office Operations Social Welfare services Document All matters of water ;irrigation domestic and trading centres All matters related to social good Document All matters of farming Document Matters of livestock production Support services and materials Stores and supplies Company farms Agriculture Services Operations Policies Management Policy Administrative Management Production Management Support Services Management At HQ HQ HQ To deal with matters of social benefits to the project community e.g. education and health Various centres points Various centres points Farms locations HQ To take care of all farm matters Operations guidelines Document Matters of administration 93 5.0.9 SOCIAL SERVICES Chart 13 Social Services Table 38 Management data contents (HQ operations) 5-108 5-109 5-110 5-111 5-112 5-113 5-114 5-115 5-116 5-117 5-118 5-119 5-120 5-121 5-122 5-123 5-124 5-125 Social welfare management Property ownership Policy Company property ( S.I.C) Communal property Document Property distribution to stakeholders Document Management of funds in project areas Income producing sectors to support revenue Income generation Individual property Finance policy Investments Department Commercial sector Banking Head quarter Subsidiaries Main funds account HQ Reg. offices To enable economic developments to beneficiaries Other Independent offices attached to HQ Main operation centres accounts Division accounts Main accounts of the projects Departments Accounts Sub accounts of the divisions Management Operations accounts Productions accounts All matters of overheads Social Welfare accounts Industries All matters of social good Internal audit Control of all assets Production of goods and services Light industries and agro-industries 94 5-126 5-127 5-128 5-129 5-130 5-131 5-132 5-133 5-134 5-135 Revenue Accounts Records of all incoming funds Expenditure accounts All matters of outgoing funds Imprest accounts Localized and urgent funds use 5-136 5-137 Lands ownership Settlements Policy Document Lands transactions Activity Lands Purchase Activity Lands Ground visits Activity Land sales For the control and tranquillity in project Purchase of lands for project and company activities Purchase of all lands ( Projected 7000 Acres) Confirm the viability of land identified Sale to farming beneficiaries Land use Land use planning Activity control and implementing land use as per project, company and government and environment requirements Document All matters of water ;irrigation domestic and trading centres Lands allocation Table 39 Support services Division 5-138 Water Policy 5-139 5-140 5-141 5-142 5-143 5-144 5-145 5-146 5-147 Water sourcing Project water sourcing Individual water sourcing Water delivery Water usage Project farming water Project Domestic water Water control Water charging 95 Table No. 40 Social Services Division 5-148 5-149 5-150 5-151 5-152 5-153 5-154 Social Welfare Policy Document All matters related to social good Samuland Ed .Department Nursery Schools HQ Primary Schools GRD All areas of education; academic ,technical or morals Starting point of all learning ( academics) Continuation of academics learning Secondary Schs GRD Special Schs GRD 5-155 Technical Sch. GRD 5-156 5-157 Advanced Learning Institutes Adult Education Depart HQ 5-158 5-159 Public health HQ Public Health HQ 5-160 5-161 Cemeteries GRD Hospitals GRD 5-162 5-163 5-164 5-165 5-166 5-167 Community Health GRD Samuland Recreation HQ Sports Complex HQ Education GRD Last stage of basic academic learning To cater for those insole form of disability such as slow learning, bride or deaf To teach trades especially those related to agro business applications All matters related to postsecondary education Education both academic and technical to improve the level of adult beneficiaries HQ All matters relevant to public safety in health ( e.g. environmental cleanliness) For the final services to members and any other cases Main health provision facility for major cases from the first aid health centres First aid centres for minor treatments For social sporting activities GRD Recreation and sporting area for the communities Community Hall GRD Churches GRD Counselling and knowledge impacting centres For the welfare of the members Morals 96 Table no. 41 Agriculture division 5-168 5-169 5-170 Agriculture Policy Document All matters of farming Agriculture Research and Developments Agriculture Research Division GRD/1--4 5-171 5-172 Livestock Policy (as part Agr. Policy) Livestock Development & sales Quality Control Centre Document For research and demonstration purposes Centres for coordinating research on agriculture activities, seedlings and environment issues Matters of livestock production Marketing and Quantity Control GRD/1--4--4 Livestock Policy As part of Agri. Policy ) Livestock sourcing Document Livestock development Document Livestock sales Document 5-173 5-174 5-175 5-176 5-177 5-178 GRD/1--4--1 GRD/1--4--2 GRD/1--4--3 Agr. Research on livestock development and sale to farmers. And A.I. services Quality control centre for all production, farm or industrial Control of farm production especially external destination goods mad market research Matters of livestock production Document Table No. 42 administration data analysis 5--179 5--180 AMINISTRATIVE ANALYSIS (Centres) Project Administration ( HQ) 5--181 5--182 Head Office Lands 5--183 Personnel Department 5--184 Records Activity All matters of security coordination communication and tranquillity in the project HQ Department at Hq Department at Hq Department at Hq 97 Documentation and storage of data 5--185 Samuland Project 5--186 5--187 Samuland Investment company Farmers Data 5--188 5--189 Lands Allocations Finance 5--190 5--191 5--192 5--193 5--194 5--195 5--196 Company Investments Operating funds Sales proceeds records Loans Repayments Accounts reconciliation Administrations Divisions Company Farms 5--197 Social Welfare services 5--198 Production centres 5--199 5--200 5--201 5--202 Industrial productions Services production Agriculture Services Quality Control Centre 5--203 Marketing and quantity Control 5--204 5--205 Internal markets National Markets 5--206 5--207 Export markets Produce Centres 5--208 Parking Houses 5--209 5--210 Research and quality Marketing and quantity control Department at Hq Department at Hq HQ The grouping done for allocation to farmers HQ Department at Hq HQ HQ HQ HQ HQ Farms owned by the company ( Samuland Investments Co. for its operations as a farmer HQ To deal with matters of social benefits to the project community e.g. education and health HQ Farming, industries and material sourcing Various centres points Various centres points HQ To take care of all farm matters GRD/1--4--3 Quality control centre for all production, farm or industrial GRD/1--4--4 Control of farm production especially external destination goods mad market research GRD/1--4--5 Markets on the project areas GRD/1--4--6 Markets outside the project areas but with national boundaries GRD/1--4--7 Markets outside the country ASL/1 Centres strategically placed in the farms to collect produce from farmers AS/1 Place where collected produce is sorted and packed especially for external markets 98 5.1.0 PROJECT MILESTONES Timeline The project intends to accomplish its operations in steps and stages. During the first five years the operations shall be mainly foundation formation. The achievements of the company goals and objectives shall be measured by the timely attainment of the goals as per the time plan. The situation on the ground can at times force some modifications but strict schedule and budget shall be followed especially during the first settlement years (1st to 3rd year). It is within this period that the foundations of the project will be set. Should the schedule be followed and fit into the time table the project will succeed. Some activities will be continuous over a period of years as the farmers entry dates have been spread over a period of years. The achievements of the project will be measured by the completion and operation of the various operation centers as per the milestones table No.3 Some facilities will develop with time and hence take years to complete. The most important thing is an operational center that is capable of handling its required work and service. 99 Table 40 Milestones 5--211 5--212 5--213 5--214 5--215 5--216 5--217 5--218 5--219 5--220 5--221 5--222 5--223 5--224 5--225 5--226 5--227 5--228 5--229 5--230 5--231 5--232 5--233 5--234 5--235 5--236 5--237 5--238 5--239 5--240 5--241 Main Name PROJECT HQ Operations Company Marketing Division Company Investments Div. Community Hall Sacco Project TC Business Loans Company Farms Project Power Supply Agro-Industries Dairy Produce Factory Flour Mills Bakeries factories Slaughter Houses Farmers Stores Dry Foods stores Green Foods Stores Adult Education Depart Light Industries Depart Project Workshops Mechanical Workshops Wood Workshops Machinery & Tools Stores Timber Stores Petroleum Products Stores Agriculture Department Market investments Quality Control Centre Marketing and Quantity Control Parking Houses Transportation Department Yr 1 xxxxx Yr 2 xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx 100 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 5--242 Project Hire Implements Public Welfare xxxxx 5--246 Project Churches Samuland Ed. Department Livestock Division 5--247 Bio Fuel Farm 5--248 Livestock Development & company sales depart Project Roads (HQ) xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx 5--243 5--244 5--245 5--249 xxxxx xxxxx xxxxx 5--250 5--251 5--252 5--253 5--254 5--255 5--256 5--257 5--258 5--259 Farmers Settlement Secondary Schs Special Schs Samuland Recreation HQ Dams & water systems Irrigation System Domestic System Community Health 5--262 5--263 Primary Schools 5--264 Crop Production Division Project Printing Press Advanced Learning Institutes 5--261 5--265 5--266 xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Cemeteries Project TC Water Supply Produce Collection Centres Agriculture Research Division Nursery Schools 5--260 xxxxx xxxxx xxxxx 101 xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx 5--267 5--268 5--269 5--270 5--271 5--272 5--273 5--274 5--275 P.V.C.Pipes Factory Drugs Stores Hospitals Car Parks xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx Canning Factories Technical Sch. Sewages xxxxx xxxxx xxxxx xxxxx xxxxx Bio fuel Industries Sports Complex 102 xxxxx xxxxx xxxxx xxxxx xxxxx Table 41 Work break down 5-27 6 5-27 7 5-27 8 5-27 9 5-28 0 5-28 1 5-28 2 5-28 3 5-28 4 5-28 5 Work Break Down Code A B Operation description summary Operating centre Duration Member registration A-1 Farmers Agricultural lands applicants, all types of persons Project Hq Done A-2 Employee Unskilled, skilled, artisans and professionals Project Hq partly A-3 Traders (TC) All legal commercial operations. retail and wholesale Project Hq partly B-1 7500---25000 Acres To cover farmers and project requirements to half phase two Project Hq Done B-2 25001--40000 Acres To cover farmers to half phase three and project needs Project Hq Done B-3 40001--60000 acres To cover farmers and project needs and contingencies Project Hq Done Land search 103 5-28 6 5-28 7 5-28 8 5-28 9 5-29 0 5-29 1 5-29 2 5-29 3 5-29 4 5-29 5 5-29 6 B-4 C D E 60001--70000 Acres To cover any farming extension Project Hq Done Project Proposal writing Authorization by directors to spend on the proposed project Project Hq Done C--1 Vision and mission Proposed project operations vision and mission Project Hq Done C--2 Project costing Proposed project costs Project Hq Done C--3 Consultation with experts and writing Proposal writing Project Hq Done Listing of possible funding sources Project Hq Done Funding search D--1 Sending applications for financing to lenders Send to many possible financers and choose best. Project Hq Done D--2 Communications with financers on response Send details as required Project Hq Done D--3 Approval of funds Sign all documents and agreements Project Hq D--4 Receipt of funds by project Fulfil banking requirements on banking accounts Project Hq Land Purchase Project Hq 104 partly 5-29 7 5-29 8 5-29 9 5-30 0 5-30 1 5-30 2 5-30 3 5-30 4 5-30 5 5-30 6 5-30 7 F E--1 Consultation with both parties lawyers E--2 Land purchase EB-1 7500---25000 Acres EB-2 25001--40000 Acres EB-3 40001--60000 acres EB-4 60001--70000 Acres To agree on prices and terms of payments Project Hq E--3 Conveyance Transfer of lands arrangements Project Hq E--4 Registrations Documentation with the department of lands Project Hq E--5 Perimeter survey Verification of the land details on the ground Project Hq Surveying Project Hq F--1 Land use planning As per the project requirements, farming, commercial and public use 105 Project Hq 5-30 8 5-30 9 5-31 0 5-31 1 5-31 2 5-31 3 5-31 4 5-31 5 5-31 6 5-31 7 5-31 8 G F--2 Application for land use changes to Ministries To the various ministries and departments. F--3 Approvals by the departments and ministries Project Hq F--4 Ground work Project Hq F--5 Registry Indexing No. Project Hq F--6 Allocations Project Hq Buildings Project Hq Project Hq G--1 Site office ( day one operations) Main day one operations centre for all operations Buildings department G--2 Offices Various operations rooms Buildings department G--3 Labour Lines Advance party accommodation centre Buildings department G--4 Stores Main advance store Buildings department G--5 Payments office For the payments (cash office) Buildings department 106 5-31 9 5-32 0 5-32 1 5-32 2 5-32 3 5-32 4 5-32 5 5-32 6 5-32 7 5-32 8 5-32 9 H I Offices Buildings department H--1 Project Hq Project permanent HQ with all facilities Buildings department H--2 Company Hq Company matters Hq Buildings department H--3 Investments Hq All investments operations control Buildings department H--4 Humanitarian Hq All humanitarian operations Buildings department H--5 Finance Hq All project and company financial operations Buildings department H--6 Project Registry All enquiries: project and company records Buildings department H--7 Printing Press For all project stationary requirements Buildings department For liaison with provincial administration Secondment from Police Administration centre I--1 Internal Security offices I--2 External Security offices 107 5-33 0 5-33 1 5-33 2 5-33 3 5-33 4 5-33 5 5-33 6 5-33 7 5-33 8 5-33 9 5-34 0 I--3 J K Sourcing external security personnel For internal general welfare Senior Project Security Officer Personnel Recruitment J--1 Project employees Persons employed for the project only Personnel officer J--2 Company employees Employees on company farms. Personnel officer J--3 Farmers employees Employees for farmers and traders Personnel officer Stores K--1 Procurements Department Formation K--2 Supplies Stores supply of in-puts, and machineries Project Procurement officer K--3 Dry Foods stores For storage of dry produce Project Procurement officer K--4 Production Stores For the agro-industries Project Procurement officer K--5 Petroleum product store All petroleum products Project Procurement officer 108 5-34 1 5-34 2 5-34 3 5-34 4 5-34 5 5-34 6 5-34 7 5-34 8 5-34 9 5-35 0 5-35 1 L M K--6 Drugs Stores drugs and Fungicides Project Procurement officer L--1 Health centres to be located conveniently Chief Medical Officer L--2 Main Hospitals To be centrally placed Chief Medical Officer L--3 Para-medical School for nurses clinical officers and medical technicians Chief Medical Officer L--4 Public Health Offices for general public health matters Chief Medical Officer M--1 Main Hall (Conference) main advisory centre on all matters Director Humanitarian Department M--2 Catering centre conferences and visitors meals centre Director Humanitarian Department M--3 Hostel visitors accommodations Director Humanitarian Department M--4 Recreation centre control of recreation and sports developments Director Humanitarian Department Hospital Community Hall 109 5-35 2 5-35 3 5-35 4 5-35 5 5-35 6 5-35 7 5-35 8 5-35 9 5-36 0 5-36 1 5-36 2 M--5 Sports complex (stadium) Sporting events centre Director Humanitarian Department Open spaces recreation Public resting places Director Humanitarian Department N--1 Samuland Farm (S.I.C.) for internal funds for expansions Farm manager (SIC) N--2 Bio fuel Farm bio fuel industry raw materials Farm manager (BIO) N--3 Livestock Development. Livestock development for sale to farmers Chief Veterinary Officer N--4 Agriculture Research Station Crop development and quality control centre Chief Agronomist N--5 Environment Control Centre For environment impact control and forestation Forestry officer N--6 Labour Lines Company employees accommodations Farm manager (SIC) N--7 Company Hq Company operations centre Farm manager (SIC) Dams Company water sources Farm manager (SIC) M---6 N Farming divisions N---8 110 5-36 3 5-36 4 5-36 5 5-36 6 5-36 7 5-36 8 5-36 9 5-37 0 5-37 1 5-37 2 5-37 3 O N--9 Crop production control centre Production control Farm manager (SIC) N--10 Reforestation department For environment impact control and forestation Forestry officer Dams design section To be done as water requirements and needs Water engineer O--2 Tools Acquisition Machinery and tools purchase Water engineer O--3 Machines depot & W/shop Construction of main depot Water engineer O--4 Water storage tanks Construction of storage water tanks Water engineer water for irrigation purposes only Water engineer O--6 Water sales and control Sale of all water provided by project Water engineer O--7 Domestic Water system Water for all domestic purposes Water engineer O--8 T.C. water supply Water for T.C. supply Water engineer Dams Constructio n O--1 O---5 Irrigation water system 111 5-37 4 5-37 5 5-37 6 5-37 7 5-37 8 5-37 9 5-38 0 5-38 1 5-38 2 5-38 3 5-38 4 P Q O--9 Dams and Roads workshops maintenance and repair of equipment Water engineer P--1 Workshop construction Construction of main depot Roads engineer P--2 Machinery acquisition Machinery and tools purchase Roads engineer Q--1 Surveying of plots Sub- division into plots Surveyor Q--2 Registry Indexing No Numbering of plots for registration Surveyor Q--3 Allocations To the various applicants Project Hq Q--4 Trades approval By the business approval committees Project Hq Q--5 Business loans applications receipt From the applicants to the finance department Project Hq Q--6 Financing of business By the Sacco Manager Sacco Roads Trading Centres 112 5-38 5 5-38 6 5-38 7 5-38 8 5-38 9 5-39 0 5-39 1 5-39 2 5-39 3 5-39 4 5-39 5 R S Water delivery Systems R--1 Labour recruitment By the personnel: technicians and casual workers Water engineer R--2 Trench digging To be supervised by technicians and water engineers Water engineer R--3 Delivery materials acquisition Water pipes and accessories purchase Water engineer R--4 Water office construction construction of main water charging office Water engineer Settlements S--1 Phase 1 Group 10A 20 persons Project Hq Group 101 100 farmers Project Hq Group 102 150 farmers Project Hq Group 103 100 farmers Project Hq 113 5-39 6 5-39 7 5-39 8 5-39 9 5-40 0 5-40 1 5-40 2 5-40 3 5-40 4 5-40 5 5-40 6 S--2 S--3 Group 104 100 farmers Project Hq Group 105 100 farmers Project Hq Group 206 200 farmers Project Hq Group 207 200 farmer Project Hq Group 208 250 farmers Project Hq Group 209 200 farmers Project Hq Group 210 200 farmers Project Hq Group 311 200 farmers Project Hq Group 312 200 farmers Project Hq Phase 2 Phase 3 114 5-40 7 5-40 8 5-40 9 5-41 0 5-41 1 5-41 2 5-41 3 5-41 4 5-41 5 5-41 6 5-41 7 T U V Group 314 200 farmers Project Hq Group 315 200 farmers and contingencies Project Hq Sacco T--1 Construction of the Sacco HQ To serve the farmers, employees and traders Buildings department T--2 Establishment of services departments For loans and payments and deposits Sacco Manager U--1 Receipts of applications By the approved committee Director Humanitarian Department U--2 Approval of applications By the committee Director Humanitarian Department U--3 Allocations of plots to denominations By the Project HQ Project Hq U--4 Financing of construction as approved By humanitarian department Sacco Manager Churches Workshops 115 5-41 8 5-41 9 5-42 0 5-42 1 5-42 2 5-42 3 5-42 4 5-42 5 5-42 6 5-42 7 5-42 8 W V--1 Wood works For the making of timber requirements Chief Workshops V--2 Hire Implements department For farmers to hire tools Chief Agronomist V--3 Metal Works For supply of metal requirements Chief Workshops W--1 Nursery schools For project children Chief Education Officer W--2 Primary schools For project children Chief Education Officer W--3 Secondary schools For project children Chief Education Officer W--4 Technical schools For project children Chief Education Officer W--5 Special Schools For all cases Chief Education Officer W--6 Adult Education Schools For farmers Chief Education Officer W--7 Establishment of Education Depart. To coordinate education Chief Education Officer Schools 116 5-42 9 5-43 0 5-43 1 5-43 2 5-43 3 5-43 4 5-43 5 5-43 6 5-43 7 5-43 8 5-43 9 X Y Z Sales and Marketing X--1 Establishment of marketing centre To control produce trades Sales Manager X--2 Establishment of open air markets To cater for local and national markets Sales Manager X--3 Build Main Pack House For internal national and export markets Sales Manager X--4 Acquire machinery and tools For Various uses in packaging departments Sales Manager To collect farmers produce to the pack houses Sales Manager For Project quality and quantity control of output Sales Manager supply of solar and wind generated power Chief engineer Collection Centres Y--1 designing of centres Y--2 Constructions Y--3 Equipping of centres Y--4 Quality control Power supply 117 5-44 0 5-44 1 5-44 2 5-44 3 5-44 4 5-44 5 5-44 6 5-44 7 5-44 8 5-44 9 5-45 0 AA Z--1 designing of plants Z--2 Construction Z--3 Distribution of power Agro Industries AA--1 Flowour mills maize and wheat Chief engineer AA--2 Dairy Products milk Chief engineer AA--3 Slaughter Houses For internal use and national market Chief engineer AA--4 Bakeries Local use and surrounding area Chief engineer AA--5 Food Processing National and export Chief engineer AA--6 Bio fuel Local use and surrounding area Chief engineer AA--7 P.V.C Factory Local use and surrounding area Chief engineer 118 119 Table No. 45 Divisions Summaries 5--451 5--452 5--453 5--454 5--455 5--456 5--457 5--458 5--459 5--460 5--461 5--462 5--463 5--464 5--465 5--466 5--467 5--468 5--469 5--470 5--471 5--472 5--473 5--474 5--475 5--476 5--477 5--478 5--479 5--480 5--481 5--482 5--483 5--484 5--485 5--486 5--487 5--488 5--489 5--490 5--491 5--492 MANAGEMENT AND OPERATIONS ORGANIZATION OPERATIONS ORGANIZATION PLAN The operations shall be divided as: 1) Head Quarter operations a) Administration department b) Lands department c) HQ Subsidiaries department d) Farmers department 2) Company farms a) Crops farm b) Livestock c) Bio fuel and Hospitality 3) Support Services a) Water department b) Transport d Civil Works i) Roads ii) Buildings iii) Sewages iv) Workshops 4) Stores and Supplies a) Dry foods stores b) Farm inputs stores c) Machines and tools d) Light industries e) Agro Industries c) Printing Press 5) Social services a) Education department b) Public health c) Recreation d) Morals ( churches) 6) Agriculture services a) Research department b) Livestock development c) Sales and marketing d) Collection centres e) Park Houses f) Environments g) Quality and quantity Control h) Implements Hire department i) farmers affairs department 120 Table 42 Funding and Operations Summaries 5--493 5--494 5--495 5--496 5--497 5--498 5--499 5--500 5--501 5--502 5--503 5--504 Operations financing and Allocations Summary A) The funds allocation is in three steps; a) Total funds for the project as per costs b) financing for starting operations ( external funds) c) Completion funding ( internal funds) B) Lands Allocation a) Total land proposal is 70,000 acres b)Company farms shall take 39,700 acres c) farmers to occupy 28621 acres d) trading centres 300 acres e) Roads 500 acres f) Project operations 880 Acres 121 6.0.0 PROJECT FUNDS AND MATERIALS ALLOCATION AND MOVEMENTS 6.0.1 DIVISION FUNDS ALLOCATIONS All divisions have been allocated funds calculated on the requirements of their departments and duties allotted to them. The farmers will be allocated an amount which is redistributed to various areas of operations. The farmer’s main needs are:1) Land purchase amounts 2) Operations funds 3) Farm inputs 4) Machines and tools The costs of these items have been distributed to; a) Land purchase account b) Head quarter subsidiaries account that will serve as the project bank c) Stores and Supplies division Farmers will be provided with what they require at various facilities established by the project Project funds are from external and internal sources. External funds will start off the operations and are expected to carry on for the first five to seven years. This is the formation and stabilizing period. Thereafter the project and farmers will be able to generate their own funds for expanding and completing the project as planned. All the funds and materials will be distributed from the project consolidated account and materials supplies stores respectively. 122 Chart 14 Funds and Material Distribution and Movement 6.0.2 DEPARTMENT FUNDS Chart 15 Departmental funds Where a department has some sub -departments, the funds have been allocated on the basis of the sub departments. A) Head Quarter Operations; To cover all day to day operations costs touching on 123 1) Administration 2) Head office Operations 3) Finance department 4) Samuland Investments Company matters 5) Lands matters ( own funds allocation) B) Head Quarter Subsidiaries: Its departments are: a) The Sacco operating as the project banking section b) Trading Centers Business loan section C) Support Services: Main departments; a) Water system and its sub departments b) Civil Works and its sub departments c) Buildings d) Workshops D) Stores and Supplies Main departments: a) Stores and sub departments b) Light industries and sub departments c) Agro-industries and sub departments E) Company Farms; Main departments; a) Areas set aside for Agriculture Division uses on research and developments b) Area set aside for company as a farmer comprising of; 1) Crop growing 2) Livestock 3) Bio fuel plants also used as a hospitality facilities area F) Social services: Main departments a) Public health and some other sub departments b) Education with sub departments c) Recreation and some other facilities of social use. G) Agriculture Division: a) Extension services covering: 1) Research on crops, soils and livestock 2) Implements hire services 3) Sales of seedlings b) Park House services 124 c) Sales and marketing and other services H) Farmers Division; Main departments; a) Settlement b) Farming c) Accounts and records 6.0.3 Total Project funds Total project funds is the amount represented by the total project cost composed of both the external and internal funds. The allocations are done to reflect;1) All funds as per the project costing 2) External funds allocation for take off 3) Internal funds allocation for further operations and expansion. 4) Allocations done;A) Total funds allocation B) Land allocation in acres Table 43 Total funds allocated to the divisions SAMULAND PROJECTS PLAN FUNDS ALLOCATION 6--0 TOTAL PROJECT FUNDS ALLOCATION 6--1 Centre Name 6--2 Lands Account 6--3 Head QTR. Account 6--4 6--5 6--6 External Internal Project Acreage 10,800,000, 000 - 10,800,000, 000 300 1,500,000,0 00 500,000,000 2,000,000,0 00 27 3,000,000,0 00 1,250,000,0 00 4,250,000,0 00 - 4,465,000,0 00 2,825,000,0 00 7,290,000,0 00 733 840,000,000 725,000,000 1,565,000,0 00 39,70 0 HQ Finances Account Support Services Account Company Farming Account 125 6--7 6--8 6--9 6--10 6--11 Stores and Supplies Account 1,252,500,0 00 2,975,000,0 00 4,227,500,0 00 71 635,000,000 3,000,000,0 00 3,635,000,0 00 540 382,500,000 600,000,000 982,500,000 10 2,750,000,0 00 - 2,750,000,0 00 28,62 1 25,625,000, 000 11,875,000, 000 37,500,000, 000 70,00 1 Social Welfare account Agriculture Services Account Farmers Operations Account Total Project Graphic No 6 Division Funds Allocation 126 Graphic No. 6 Division funds Allocation 40,000,000,000 35,000,000,000 30,000,000,000 25,000,000,000 20,000,000,000 15,000,000,000 10,000,000,000 5,000,000,000 - External Internal Project 6.0.4 External funds allocation: External funds will enable the project to start off and hence be able to generate the funds required for complete finance and the expansions needed. The initial operations will be budgeted on the basis of external funds thereafter on the cash flow projections. Land purchase and farmers funds will be financed totally by external finances to avoid any risk of a short fall hence delay in any planned activities. Table No 48 External funds Allocation to Divisions 6--13 6--14 6--15 6--16 6--17 6--18 6--19 6--20 6--21 6--22 EXTERNAL FUNDS Centre Name Lands Purchase Account. PROJECT HQ Operations Head quarter Subsidiaries account Support Services Account Company Farms Account Stores and Supplies Account Social Services Account Agricultures Services Account External 10,800,000,000 Internal Project - 10,800,000,000 1,500,000,000 - 1,500,000,000 3,000,000,000 - 3,000,000,000 3,925,000,000 - 3,925,000,000 1,250,000,000 - 1,250,000,000 1,500,000,000 - 1,500,000,000 500,000,000 - 500,000,000 400,000,000 - 400,000,000 127 6--23 6--24 Farmers Allocation Account EXTERNAL FINANCING 2,750,000,000 - 25,625,000,000 2,750,000,000 - 25,625,000,000 6.0.5 Internal Funds Internal Funds these funds will finance the project expansion and day to day operations. The sources being the operations of the project. It is projected that the internal financing will be completed in about eight and half years during which the planned facilities will be completed. Notable among them being the sewage systems, sports complex, and a fully equipped hospital. Many social facilities will be financed with these internal funds. Table No.49 Internal funds distribution to Divisions 6--25 6--26 6--27 6--28 6--29 6--30 6--31 6--32 6--33 6--34 6--35 6--36 6--37 INTERNAL FUNDS Centre Name Lands Purchase Account. PROJECT HQ Operations Head quarter Subsidiaries account Support Services Account Company Farms Account Stores and Supplies Account Social Services Account Agricultures Services Account Farmers Allocation Account INTERNAL FINANCING TOTAL ALLOCATIONS External Internal Project - - - - 500,000,000 500,000,000 - 1,250,000,000 1,250,000,000 - 2,825,000,000 2,825,000,000 - 725,000,000 725,000,000 - 2,975,000,000 2,975,000,000 - 3,000,000,000 3,000,000,000 - 600,000,000 600,000,000 - - - 11,875,000,000 11,875,000,000 25,625,000,000 11,875,000,000 37,500,000,000 6.0.6 Funds grouping. Funds allocated are grouped as per the application and use. The project funds are in two categories; A) External funds:- all externally acquired funds B) Internal funds;- all internally generated funds and applied to the project activities These funds are then grouped as; 128 1) Group A is for all funds used or allocated to all land transactions 2) Group B funds allocated for all overhead expenses 3) Group C funds allocated for all permanent structures excluding land 4) Group D all movable assets including livestock but not cash 5) Group E all funds allocated to the financing of day to day needs for production purposes These are the operating funds 6) The total for all these groups is the project total allocation. Table No.50 Expenditure funds groups Accounts Grouping External Internal Project Group A Land Cost Registration Cost Stamp Duty Group B Financial expenses. Preliminary costs Stationery Group C Buildings Group D Livestock Group E Working Capital Dams/Water System Fencing Furniture Trading centres funds Heavy plant Farm Implements Machinery and Tools Tractors Farmers operating funds farm inputs (stores) Title Deed and Lease Survey Fees Travelling Roads Telephones Irrigation Works Planning /Consultation Agent Comm Miscll costs transport Water Charge Insurance Infrastructure Clearance Salaries Expendable material Diesel Oils Overhead Expenses Land cost Start -up Cash (Sacco Bank) Vehicles 3tons Vehicles +3tons Fixed devpmt Movable assets Operating funds Total Project 129 Table No.51 Total funds application as per allocation to division summary 6--38 FUNDS APPLICATIONS SUMMARY 6--39 TOTAL PROJECT 6--40 Centre Name Lands Overheads Fixed Devlopmnts Movable Assets Operation fund 10,800,000,000 - - - - 983,300,000 187,300,000 79,000,000 750,400,00 - 82,800,000 - 45,000,000 4,122,200,00 - 569,500,000 4,806,000,000 599,300,000 1,315,200,00 - 159,050,000 410,000,000 198,000,000 797,950,00 - 391,600,000 330,650,000 550,250,000 2,955,000,00 - 361,000,000 811,300,000 448,700,000 2,014,000,00 - 202,750,000 284,750,000 199,750,000 295,250,00 - - - - 2,750,000,00 6--41 Lands Account 6--42 Head QTR. Account 6--43 HQ Finances Account 6--44 Support Services Account 6--45 Company Farming Account 6--46 Stores and Supplies Account 6--47 Social Welfare account 6--48 Agriculture Services Account 6--49 Farmers Operations Account 6--50 Total Project 10,800,000,000 2,750,000,000 6,830,000,000 2,120,000,000 15,000,000,00 607 External for take off These fund are very essential for the project to start. They will be used for the most essential activities that will have an almost immediate effect on the productivity of the project. Operations budgets for the first three years will be based on these funds. External funds 1) Will finance both land transaction and farmers operating funds in total 2) Finance partially all other activities 3) These funds will not finance the following; a) Bio-fuel industries b) Canning factories c) Car park d) Sewages Reason for not financing these four items is that they are not a priority and they can wait for internal financing. 130 Table No. 31 External funds application per division 6--51 EXTERNAL FUNDS 6--52 Centre Name 6--53 6--54 6--55 6--56 6--57 6--58 6--59 6--60 6--61 Lands Lands Purchase 10,800,000,000 Account. PROJECT HQ Operations Head quarter Subsidiaries account Support Services Account Company Farms Account Stores and Supplies Account Social Services Account Agricultures Services Account Farmers Allocation Account Overheads Fixed Movable Assets Devlopmnts - - - 909,500,000 154,000,000 51,250,000 33,500,000 - Operations funds - 10 385,250,000 1 27,000,000 2,939,500,000 3 80,750,000 3,402,000,000 342,250,000 100,000,000 3 79,500,000 265,500,000 127,250,000 777,750,000 1 151,500,000 140,000,000 300,000,000 908,500,000 1 63,750,000 200,000,000 209,500,000 26,750,000 61,500,000 118,500,000 107,750,000 112,250,000 - - - 2,750,000,000 2 6--62 EXTERNAL FINANCING 10,800,000,000 1,380,000,000 4,280,000,000 1,165,000,000 8,000,000,000 25 131 Table No.53 Internal funds application as per division 6--63 INTERNAL FUNDS 6--64 Centre Name 6--65 6--66 6--67 6--68 6--69 6--70 6--71 6--72 6--73 Lands Purchase Account. PROJECT HQ Operations Head quarter Subsidiaries account Support Services Account Company Farms Account Stores and Supplies Account Social Services Account Agricultures Services Account Farmers Allocation Account Lands Overheads - - - - - - 375,000,000 51,500,000 48,500,000 25,000,000 - 53,250,000 - 15,000,000 1,181,750,000 354,000,000 1,487,500,000 290,000,000 693,500,000 - Fixed Movable Assets Operations funds Devlopmnts - 92,500,000 205,000,000 125,000,000 302,500,000 - 165,500,000 25,000,000 180,000,000 2,604,500,000 - 211,250,000 660,000,000 209,500,000 1,919,250,000 - 118,500,000 121,000,000 87,000,000 273,500,000 - - - - - - 1,370,000,000 2,550,000,000 955,000,000 7,000,000,000 6--74 INTERNAL FINANCING 6--75 TOTAL 10,800,000,000 2,750,000,000 6,830,000,000 2,120,000,000 15,000,000,000 ALLOCATIONS 132 Table No. 54 Total Project Departmental funds Applications 6--76 6--77 6--78 6--79 6--80 6--81 6--82 SUMMARIZED ALLOCATIONS ( PROJECT TAKE -OFF Kshs Version TOTAL PROJECTED COSTS ( DEPARTMENTS ) EXTERNAL FUNDS Centre Name Acreag e Lands Purchase Account. - HEAD QUARTER OPERATIONS ACCOUNT 6--84 Sacco Lands Overheads Fixed Devlopmnts Movable Assets Operations funds Total Project 10,800,000,00 0 - - - - 10,800,000,00 0 - 983,300,000 187,300,000 79,000,000 750,400,000 2,000,000,000 - 82,800,000 - 45,000,000 3,122,200,000 3,250,000,000 - - - - 1,000,000,000 1,000,000,000 - 138,350,000 33,000,000 80,250,000 198,400,000 450,000,000 15 - 35,400,000 14,250,000 70,250,000 55,100,000 175,000,000 500 - 6,800,000 165,000,000 64,500,000 78,700,000 315,000,000 - - 153,050,000 52,250,000 104,250,000 675,450,000 985,000,000 150 - 122,250,000 4,079,500,000 114,250,000 84,000,000 4,400,000,000 15 - - 77,500,000 16,500,000 26,000,000 120,000,000 6--83 27 6--85 Project TC Business Loans 6--86 Project Civil Works (HQ) 6--87 6--88 6--89 6--90 6--91 Project Workshops Roads Building Dams & water systems Irrigation System 133 6--92 6--93 6--94 6--95 6--96 Domestic System 1 - 500,000 245,000,000 13,250,000 41,250,000 300,000,000 2 - - 129,750,000 25,500,000 34,750,000 190,000,000 25 - 750,000 500,000 1,800,000 6,950,000 10,000,000 25 - - 500,000 3,000,000 16,500,000 20,000,000 - - - 21,750,000 28,250,000 50,000,000 - 112,400,000 8,750,000 84,000,000 69,850,000 275,000,000 - 140,500,000 169,500,000 40,500,000 399,500,000 750,000,000 - - 52,500,000 29,000,000 38,500,000 120,000,000 - 800,000 105,500,000 49,000,000 319,700,000 475,000,000 - 17,750,000 82,500,000 79,500,000 40,250,000 220,000,000 - 158,950,000 250,000 5,000,000 95,800,000 260,000,000 - 48,700,000 7,000,000 12,900,000 46,400,000 115,000,000 - 19,150,000 25,050,000 20,000,000 20,800,000 85,000,000 - 2,900,000 9,600,000 30,000,000 25,000,000 67,500,000 - - 23,700,000 19,000,000 29,800,000 72,500,000 - - 10,250,000 19,000,000 23,250,000 52,500,000 - 7,500,000 11,100,000 34,000,000 22,400,000 75,000,000 Project TC Water Supply Car Parks Sewages Project Printing Press 6--97 Transportation Department 6--98 Company Farms 6--99 Bio Fuels Farms 28,200 6-Crop Production Division 100 5,750 6-Company Livestock Farm 101 5,750 6-Stores and Supplies operations 102 Account 6-Light Industries Depart 103 6-Machinery & Tools 104 Stores 1 6-Petroleum Products 105 Stores 2 6-Mechanical Workshops 106 5 6-Wood Workshops 107 2 6-Timber sawmills 108 4 134 6-P.V.C.Pipes 109 6-Project Power Supply 110 6-Agro-Industries 111 6-Bio fuel Industries 112 6-Dairy Produce 113 6-Flour Mills 114 6-Bakeries factories 115 6-Slaughter Houses 116 6-Canning Factories 117 6-Farmers Stores H/O 118 6-Dry Foods stores 119 6-Green Foods Stores 120 6-Drugs Stores 121 6-Social Welfare operation 122 acc 6-Samuland 123 Ed..Department 6-Advanced Learning 124 Institutes 6-Adult Education Depart 125 2 - - 18,500,000 33,000,000 123,500,000 175,000,000 25 - - 40,350,000 81,250,000 103,400,000 225,000,000 - 18,900,000 - 20,250,000 80,850,000 120,000,000 - - 10,550,000 9,000,000 15,450,000 35,000,000 2 - - 25,050,000 39,000,000 15,950,000 80,000,000 2 - - 14,500,000 18,500,000 14,500,000 47,500,000 2 - 1,500,000 12,200,000 15,450,000 55,850,000 85,000,000 25 - - 16,500,000 15,000,000 41,000,000 72,500,000 2 - - 15,750,000 15,500,000 43,750,000 75,000,000 - 134,000,000 55,000,000 156,750,000 2,129,250,000 2,475,000,000 - - 20,500,000 - 27,000,000 47,500,000 - - 14,250,000 4,750,000 13,500,000 32,500,000 - - 550,000 1,900,000 27,550,000 30,000,000 - 9,500,000 31,000,000 45,750,000 201,250,000 287,500,000 - 184,000,000 35,000,000 9,200,000 121,800,000 350,000,000 - - - 5,000,000 55,000,000 60,000,000 - 4,250,000 10,000,000 2,500,000 13,250,000 30,000,000 5 135 6-Nursery Schools 126 6-Primary Schools 127 6-Secondary Schs 128 6-Special Schs 129 6-Technical Sch. 130 6-Public Health 131 6-Community Health 132 6-Hospitals 133 6-cemeteries 134 6-Samuland Recreation HQ 135 6-Sports Complex 136 6-Community Hall 137 6-Churches 138 6-Agriculture Operation 139 Account 6-Agriculture Department 140 (Farming) 6-Produce Centres 141 6-Parking Houses 142 50 - - 22,500,000 17,250,000 25,250,000 65,000,000 75 - - 79,250,000 67,250,000 183,500,000 330,000,000 125 - 2,500,000 152,250,000 84,500,000 235,750,000 475,000,000 30 - 1,500,000 52,000,000 34,250,000 57,250,000 145,000,000 45 - - 115,750,000 64,500,000 719,750,000 900,000,000 - 126,500,000 22,000,000 1,500,000 15,000,000 165,000,000 10 - 250,000 9,500,000 3,000,000 32,250,000 45,000,000 50 - 28,000,000 181,250,000 82,500,000 283,250,000 575,000,000 35 - - 6,000,000 3,500,000 20,500,000 30,000,000 - - 23,750,000 4,250,000 14,500,000 42,500,000 50 - - 9,000,000 750,000 10,250,000 20,000,000 15 - 4,500,000 28,750,000 15,000,000 16,750,000 65,000,000 50 - - 33,300,000 8,000,000 8,700,000 50,000,000 - 150,500,000 124,750,000 21,000,000 53,750,000 350,000,000 - 48,500,000 5,500,000 - 53,500,000 107,500,000 5 - - 4,650,000 6,000,000 19,350,000 30,000,000 5 - - 31,000,000 25,500,000 11,000,000 67,500,000 136 6-Project Hire Implements 143 6-Agriculture Research 144 Division 6-Quality Control Centre 145 6-Livestock Development 146 & sales 6-Marketing and Quantity 147 Control 6-Trading Centres plots 148 6-149 300 - - 6,850,000 50,250,000 50,400,000 107,500,000 - - 64,500,000 29,500,000 43,500,000 137,500,000 - - 950,000 5,500,000 23,550,000 30,000,000 - - 46,250,000 56,500,000 22,250,000 125,000,000 - 3,750,000 300,000 5,500,000 17,950,000 27,500,000 - - - - - - 33,525,000 112,125,000 18,850,000 275,000,000 Farmer Group 10A 3,250 - 137 110,500,000 6-150 6-151 6-152 6-153 6-154 6-155 6-156 6-157 6-158 6-159 6-160 6-161 6-162 6-163 6-164 6-165 Farmer Group 10B 1,090 - 14,685,000 33,525,000 70,350,000 6,440,000 125,000,000 1,060 - 21,150,000 36,570,000 36,040,000 6,240,000 100,000,000 1,832 - 29,920,000 63,204,000 62,288,000 4,588,000 160,000,000 2,065 - 55,285,000 71,242,500 81,210,000 2,262,500 210,000,000 1,850 - 49,697,500 63,825,000 62,900,000 8,577,500 185,000,000 1,820 - 42,530,000 62,790,000 67,280,000 2,400,000 175,000,000 1,645 - 42,675,000 56,752,500 44,415,000 6,157,500 150,000,000 1,382 - 38,917,500 47,679,000 40,314,000 3,089,500 130,000,000 1,085 - 32,880,000 37,432,500 29,295,000 20,392,500 120,000,000 1,447 - 39,475,000 49,921,500 45,069,000 5,534,500 140,000,000 1,985 - 46,675,000 68,482,500 65,595,000 4,247,500 185,000,000 1,445 - 40,900,000 49,852,500 39,015,000 5,232,500 135,000,000 1,590 - 46,210,000 54,855,000 46,480,000 2,455,000 150,000,000 1,282 - 41,270,000 44,229,000 34,614,000 4,887,000 125,000,000 1,275 - 42,315,000 44,425,000 36,050,000 2,210,000 125,000,000 2,518 - 85,000,000 86,871,000 82,986,000 5,143,000 260,000,000 Farmer Group 101 Farmer Group 102 Farmer Group 103 Farmer Group 104 Farmer Group 105 Farmer Group 206 Farmer Group 207 Farmer Group 208 Farmer Group 209 Farmer Group 210 Farmer Group 311 Farmer Group 312 Farmer Group 313 Farmer Group 314 Farmer Group 315 138 6-166 Total Projected 70,001 10,800,000,00 0 3,453,110,000 7,813,782,000 3,074,401,000 12,358,707,00 0 37,500,000,00 0 Table No.55 External funds Allocation per department application 6-EXTERNAL FUNDS 167 FINANCING 6-Centre Name 168 6-Lands Purchase 169 Account. 6-HEAD QUARTER 170 OPERATIONS ACCOUNT 6-Sacco 171 6-Project TC Business 172 Loans 6-Project Civil Works 173 (HQ) 6-Project Workshops 174 6-Roads 175 Lands Overheads Fixed Devlopmnts Movable Assets Operations funds Total Project - 10,800,000,00 0 - - - - 10,800,000,00 0 27 - 852,750,000 154,000,000 51,250,000 442,000,000 1,500,000,000 - 33,300,000 - 27,000,000 2,439,700,000 2,500,000,000 - - - - 500,000,000 500,000,000 - 36,350,000 18,000,000 54,750,000 165,900,000 275,000,000 15 - 13,450,000 7,500,000 59,750,000 44,300,000 125,000,000 500 - 2,150,000 75,000,000 40,500,000 47,350,000 165,000,000 Acreag e 139 6-Building 176 6-Dams & water systems 177 6-Irrigation System 178 6-Domestic System 179 6-Project TC Water Supply 180 6-Car Parks 181 6-Sewages 182 6-Project Printing Press 183 6-Transportation 184 Department - - 19,000,000 20,000,000 36,750,000 109,250,000 185,000,000 150 - 40,250,000 3,225,500,000 63,500,000 70,750,000 3,400,000,000 15 - - 27,500,000 16,500,000 6,000,000 50,000,000 1 - 250,000 35,000,000 9,250,000 5,500,000 50,000,000 2 - - 23,500,000 10,000,000 6,500,000 40,000,000 25 - - - - - - 25 - - - - - - - - - 11,250,000 13,750,000 25,000,000 - 46,900,000 4,500,000 40,000,000 58,600,000 150,000,000 140 6-185 6-186 6-187 6-188 6-189 6-190 6-191 6-192 6-193 6-194 6-195 6-196 6-197 6-198 6-199 6-200 6-201 Company Farms - 61,250,000 113,000,000 33,000,000 142,750,000 350,000,000 Bio Fuels Farms 28,200 - - 14,000,000 19,000,000 - 300,000 72,000,000 30,500,000 222,200,000 325,000,000 - 3,250,000 34,500,000 45,750,000 - 59,450,000 250,000 - 300,000 60,000,000 - 20,150,000 2,500,000 8,500,000 8,850,000 40,000,000 1 - 13,300,000 11,300,000 8,750,000 11,650,000 45,000,000 2 - 1,950,000 3,700,000 15,000,000 6,850,000 27,500,000 5 - - 10,600,000 12,500,000 14,400,000 37,500,000 2 - - 4,250,000 10,000,000 8,250,000 22,500,000 4 - 1,750,000 4,750,000 19,000,000 9,500,000 35,000,000 2 - - 4,250,000 11,500,000 9,250,000 25,000,000 25 - - 16,050,000 56,000,000 - 6,700,000 - 6,250,000 7,050,000 20,000,000 - - - - - - - - 8,750,000 16,750,000 9,500,000 35,000,000 - - 1,000,000 6,500,000 5,000,000 12,500,000 Crop Production Division 5,750 Company Livestock Farm 5,750 Stores and Supplies operations Account Light Industries Depart Machinery & Tools Stores Petroleum Products Stores Mechanical Workshops 12,000,000 45,000,000 36,500,000 120,000,000 Wood Workshops Timber sawmills P.V.C.Pipes Project Power Supply 27,950,000 100,000,000 Agro-Industries Bio fuel Industries Dairy Produce 2 Flour Mills 2 141 6-202 6-203 6-204 Bakeries factories 2 - 750,000 1,100,000 1,000,000 7,150,000 10,000,000 25 - - 2,000,000 - 10,500,000 12,500,000 2 - - - - - - Slaughter Houses Canning Factories 142 6-Farmers Stores H/O 205 6-Dry Foods stores 206 6-Green Foods Stores 207 6-Drugs Stores 208 6-Social Welfare 209 operation acc. 6-Samuland 210 Ed..Department 6-Advanced Learning 211 Institutes 6-Adult Education Depart 212 6-Nursery Schools 213 6-Primary Schools 214 6-Secondary Schs 215 6-Special Schs 216 6-Technical Sch. 217 6-Public Health 218 6-Community Health 219 6-Hospitals 220 6-Cemeteries 221 - 47,250,000 55,000,000 124,000,000 498,750,000 725,000,000 - - 7,750,000 - 14,750,000 22,500,000 - - 4,250,000 2,250,000 11,000,000 17,500,000 - - 250,000 1,000,000 3,750,000 5,000,000 1,500,000 31,000,000 31,250,000 23,750,000 87,500,000 - 40,750,000 - - 9,250,000 50,000,000 - - - 2,500,000 12,500,000 15,000,000 5 - 1,000,000 3,750,000 500,000 4,750,000 10,000,000 50 - - 5,750,000 4,750,000 4,500,000 15,000,000 75 - - 14,000,000 31,000,000 10,000,000 55,000,000 125 - 1,250,000 36,500,000 45,750,000 16,500,000 100,000,000 30 - 500,000 19,000,000 12,250,000 13,250,000 45,000,000 45 - - 33,500,000 25,500,000 16,000,000 75,000,000 - 1,500,000 2,500,000 1,500,000 9,500,000 15,000,000 10 - 250,000 5,500,000 1,500,000 7,750,000 15,000,000 50 - 7,000,000 27,750,000 40,750,000 35 - 143 1,500,000 - 24,500,000 100,000,000 3,500,000 5,000,000 6-222 6-223 6-224 6-225 6-226 6-227 6-228 6-229 6-230 6-231 6-232 6-233 6-234 6-235 Samuland Recreation HQ Sports Complex - - 1,250,000 1,500,000 4,750,000 7,500,000 50 - - 3,500,000 - 1,500,000 5,000,000 15 - 1,750,000 5,750,000 7,250,000 5,250,000 20,000,000 50 - - 8,000,000 3,500,000 3,500,000 15,000,000 - 37,750,000 79,750,000 18,000,000 - 23,500,000 2,000,000 - 7,000,000 32,500,000 5 - - - 1,500,000 3,500,000 5,000,000 5 - - 10,000,000 4,500,000 8,000,000 22,500,000 - - 500,000 34,000,000 8,000,000 42,500,000 - - 13,750,000 16,250,000 7,500,000 37,500,000 - - - 2,500,000 2,500,000 5,000,000 - - 13,000,000 29,000,000 8,000,000 50,000,000 Community Hall Churches Agriculture Operation Account Agriculture Department (Farming) Produce Centres 39,500,000 175,000,000 Parking Houses Project Hire Implements Agriculture Research Division Quality Control Centre Livestock Development & sales Marketing and Quantity Control Trading Centres plots 300 - 2,750,000 - 2,000,000 7,750,000 12,500,000 - - - - - - 144 6-236 6-237 6-238 6-239 6-240 6-241 6-242 6-243 6-244 6-245 6-246 6-247 6-248 6-249 6-250 6-251 6-252 Farmer Group 10A 3,250 - - 112,125,000 110,500,000 52,375,000 275,000,000 1,090 - - 33,525,000 70,350,000 21,125,000 125,000,000 1,060 - - 36,570,000 36,040,000 27,390,000 100,000,000 1,832 - - 63,204,000 62,288,000 34,508,000 160,000,000 2,065 - - 71,242,500 81,210,000 57,547,500 210,000,000 1,850 - - 63,825,000 62,900,000 58,275,000 185,000,000 1,820 - - 62,790,000 67,280,000 44,930,000 175,000,000 1,645 - - 56,752,500 44,415,000 48,832,500 150,000,000 1,382 - - 47,679,000 40,314,000 42,007,000 130,000,000 1,085 - - 37,432,500 29,295,000 53,272,500 120,000,000 1,447 - - 49,921,500 45,069,000 45,009,500 140,000,000 1,985 - - 68,482,500 65,595,000 50,922,500 185,000,000 1,445 - - 49,852,500 39,015,000 46,132,500 135,000,000 1,590 - - 54,855,000 46,480,000 48,665,000 150,000,000 1,282 - - 44,229,000 34,614,000 46,157,000 125,000,000 1,275 - - 44,425,000 36,050,000 44,525,000 125,000,000 2,518 - - 86,871,000 82,986,000 90,143,000 260,000,000 Farmer Group 10B Farmer Group 101 Farmer Group 102 Farmer Group 103 Farmer Group 104 Farmer Group 105 Farmer Group 206 Farmer Group 207 Farmer Group 208 Farmer Group 209 Farmer Group 210 Farmer Group 311 Farmer Group 312 Farmer Group 313 Farmer Group 314 Farmer Group 315 145 6-253 EXTERNAL FUNDS 70,001 10,800,000,000 1,380,000,000 5,263,782,000 2,119,401,000 6,061,817,000 25,625,000,000 Table No.56 Total Internal funds Allocation per department application 6-INTERNAL FUNDS 254 FINANCING 6-Centre Name 255 6-Lands Purchase Account. 256 6-HEAD QUARTER 257 OPERATIONS ACCOUNT 6-Sacco 258 6-Project TC Business 259 Loans 6-Project Civil Works (HQ) 260 6-Project Workshops 261 6-Roads 262 6-Building 263 Lands Fixed Overheads Devlopmnts - Total Project Movable Assets Operations funds - - - - - - 130,550,000 33,300,000 27,750,000 308,400,000 500,000,000 - 49,500,000 - 18,000,000 682,500,000 750,000,000 - - - - 500,000,000 500,000,000 - 102,000,000 15,000,000 25,500,000 32,500,000 175,000,000 - 21,950,000 6,750,000 10,500,000 10,800,000 50,000,000 - 4,650,000 90,000,000 24,000,000 31,350,000 150,000,000 - 134,050,000 32,250,000 67,500,000 566,200,000 800,000,000 146 6-Dams & water systems 264 6-Irrigation System 265 6-Domestic System 266 6-Project TC Water Supply 267 6-Car Parks 268 6-Sewages 269 6-Project Printing Press 270 6-Transportation 271 Department 6-Company Farms 272 6-Bio Fuels Farms 273 6-Crop Production Division 274 6-Company Livestock Farm 275 6-Stores and Supplies operations 276 Account 6-Light Industries Depart 277 6-Machinery & Tools Stores 278 6-Petroleum Products Stores 279 6-Mechanical Workshops 280 - 82,000,000 854,000,000 50,750,000 - - 50,000,000 - 20,000,000 70,000,000 - 250,000 210,000,000 4,000,000 35,750,000 250,000,000 - - 106,250,000 15,500,000 28,250,000 150,000,000 - 750,000 500,000 1,800,000 6,950,000 10,000,000 - - 500,000 3,000,000 16,500,000 20,000,000 - - - 10,500,000 14,500,000 25,000,000 - 65,500,000 4,250,000 44,000,000 11,250,000 125,000,000 - 79,250,000 7,500,000 256,750,000 400,000,000 - - 38,500,000 10,000,000 26,500,000 75,000,000 - 500,000 33,500,000 18,500,000 97,500,000 150,000,000 - 14,500,000 48,000,000 33,750,000 3,750,000 100,000,000 - 99,500,000 - 5,000,000 95,500,000 200,000,000 - 28,550,000 4,500,000 4,400,000 37,550,000 75,000,000 - 5,850,000 13,750,000 11,250,000 9,150,000 40,000,000 - 950,000 5,900,000 15,000,000 18,150,000 40,000,000 - - 15,400,000 35,000,000 56,500,000 13,100,000 147 6,500,000 13,250,000 1,000,000,000 6-281 6-282 6-283 Wood Workshops 6-284 6-285 6-286 6-287 6-288 6-289 6-290 6-291 Project Power Supply - - - 6,000,000 9,000,000 15,000,000 30,000,000 5,750,000 6,350,000 15,000,000 12,900,000 40,000,000 - - 14,250,000 21,500,000 114,250,000 150,000,000 - - 24,300,000 25,250,000 75,450,000 125,000,000 - 12,200,000 - 14,000,000 73,800,000 100,000,000 - - 10,550,000 9,000,000 15,450,000 35,000,000 - - 16,300,000 22,250,000 6,450,000 45,000,000 - - 13,500,000 12,000,000 9,500,000 35,000,000 - 750,000 11,100,000 14,450,000 48,700,000 75,000,000 - - 14,500,000 15,000,000 30,500,000 60,000,000 - - 15,750,000 15,500,000 43,750,000 75,000,000 Timber sawmills P.V.C.Pipes Agro-Industries Bio fuel Industries Dairy Produce Flour Mills Bakeries factories Slaughter Houses Canning Factories 148 6-Farmers Stores H/O 292 6-Dry Foods stores 293 6-Green Foods Stores 294 6-Drugs Stores 295 6-Social Welfare operation 296 acc 6-Samuland Ed..Department 297 6-Advanced Learning 298 Institutes 6-Adult Education Depart 299 6-Nursery Schools 300 6-Primary Schools 301 6-Secondary Schs 302 6-Special Schs 303 6-Technical Sch. 304 6-Public Health 305 6-Community Health 306 6-Hospitals 307 6-Cemeteries 308 - 86,750,000 - - 12,750,000 - 12,250,000 25,000,000 - - 10,000,000 2,500,000 2,500,000 15,000,000 - - 300,000 900,000 23,800,000 25,000,000 - 8,000,000 - 14,500,000 177,500,000 200,000,000 - 143,250,000 35,000,000 9,200,000 112,550,000 300,000,000 - - - 2,500,000 42,500,000 45,000,000 - 3,250,000 6,250,000 2,000,000 8,500,000 20,000,000 - - 16,750,000 12,500,000 20,750,000 50,000,000 - - 65,250,000 36,250,000 173,500,000 275,000,000 - 1,250,000 115,750,000 38,750,000 219,250,000 375,000,000 - 1,000,000 33,000,000 22,000,000 44,000,000 100,000,000 - - 82,250,000 39,000,000 703,750,000 825,000,000 - 125,000,000 19,500,000 - 5,500,000 150,000,000 - - 4,000,000 1,500,000 24,500,000 30,000,000 21,000,000 153,500,000 41,750,000 258,750,000 475,000,000 17,000,000 25,000,000 - - - 32,750,000 1,630,500,000 1,750,000,000 4,500,000 149 3,500,000 6-309 6-310 Samuland Recreation HQ - - 22,500,000 2,750,000 9,750,000 35,000,000 - - 5,500,000 750,000 8,750,000 15,000,000 Sports Complex 150 6-311 6-312 6-313 6-314 6-315 6-316 6-317 6-318 6-319 6-320 6-321 6-322 Community Hall - 2,750,000 23,000,000 7,750,000 11,500,000 45,000,000 - - 25,300,000 4,500,000 5,200,000 35,000,000 - 112,750,000 45,000,000 3,000,000 14,250,000 175,000,000 - 25,000,000 3,500,000 - 46,500,000 75,000,000 - - 4,650,000 4,500,000 15,850,000 25,000,000 - - 21,000,000 21,000,000 3,000,000 45,000,000 - - 6,350,000 16,250,000 42,400,000 65,000,000 - - 50,750,000 13,250,000 36,000,000 100,000,000 - - 950,000 3,000,000 21,050,000 25,000,000 - - 33,250,000 27,500,000 14,250,000 75,000,000 - 1,000,000 300,000 3,500,000 10,200,000 15,000,000 Churches Agriculture Operation Account Agriculture Department (Farming) Produce Centres Parking Houses Project Hire Implements Agriculture Research Division Quality Control Centre Livestock Development & sales Marketing and Quantity Control Total Internal - 1,370,000,000 2,550,000,000 955,000,000 7,000,000,000 11,875,000,000 151 7.0.0 EXTERNAL LOAN REPAYMENT DATA Loan repayment for the project means the repayment back for all the external funds borrowed to finance the start off of the project. It is composed of the principle amount and the interest that accrues thereon. Main elements of this loan are;i. ii. iii. iv. Principle amount Interest rate Grace period treatment of the principle and the interest Repayment terms with reference to:1) Balloon payment 2) Monthly instalment payment 3) Yearly instalments 4) Reference to interest payment 7.0.1 Loan terms The loan term is based on a term of 25 years that include a grace period of 3 years. Interest for this period being simple interest for three years and thereafter be capitalized. Loan interest rate being 3.5% per annum. The project has taken the extreme case and has calculated the data on compound interest. Repayment is in monthly instalments rather than balloon or yearly payments.it is calculated to complete payment in 22 years. 152 153 Table No. 57 External Loan Repayment Data 7--0 EXTERNA L LOAN REPAYME NT DATA 7--1 YEARLY DATA 7--2 Balance B/f 7--3 7--4 7--5 7--6 7--7 7--8 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 - 26,602,626, 872 27,617,551, 473 28,671,196, 759 27,815,928, 341 26,928,030, 328 26,006,257, 858 25,049,318, 577 24,055,870, 826 25,625,000, 000 - - - - - - - - 25,625,000, 000 26,602,626, 872 27,617,551, 473 28,671,196, 759 27,815,928, 341 26,928,030, 328 26,006,257, 858 25,049,318, 577 24,055,870, 826 - - - 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 25,625,000, 000 26,602,626, 872 27,617,551, 473 26,761,327, 357 25,906,058, 940 25,018,160, 927 24,096,388, 457 23,139,449, 176 22,146,001, 424 977,626,872 1,014,924,6 01 1,053,645,2 86 1,054,600,9 84 1,021,971,3 988,096,931 952,930,120 916,421,650 878,520,334 88 26,602,626, 872 27,617,551, 473 28,671,196, 759 27,815,928, 341 26,928,030, 328 Additions Total Less Paid Balance Interest Total Bal C/f 7--0 EXTERNA 154 26,006,257, 858 25,049,318, 577 24,055,870, 826 23,024,521, 758 L LOAN REPAYME NT DATA 7--1 YEARLY DATA 7--2 Balance B/f 7--3 7--4 7--5 7--6 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 23,024,521, 758 21,953,825, 391 20,842,280, 573 19,688,328, 884 18,490,352, 446 17,246,671, 659 15,955,542, 842 14,615,155, 792 13,223,631, 243 - - - - - - - - - 23,024,521, 758 21,953,825, 391 20,842,280, 573 19,688,328, 884 18,490,352, 446 17,246,671, 659 15,955,542, 842 14,615,155, 792 13,223,631, 243 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 21,114,652, 357 20,043,955, 990 18,932,411, 172 17,778,459, 483 16,580,483, 045 15,336,802, 258 14,045,673, 441 12,705,286, 391 11,313,761, 842 Additions Total Less Paid Balance 7--7 Interest 7--8 Total Bal C/f 839,173,034 798,324,584 755,917,712 711,892,964 666,188,614 618,740,584 569,482,351 518,344,853 465,256,393 21,953,825, 391 20,842,280, 573 19,688,328, 884 18,490,352, 446 155 17,246,671, 659 15,955,542, 842 14,615,155, 792 13,223,631, 243 11,779,018, 235 7--9 EXTERNAL LOAN REPAYME NT DATA 7--10 YEARLY DATA 7--11 Balance B/f 7--12 7--13 7--14 7--15 7--16 7--17 Yr 19 Yr 20 Yr 21 Yr 22 Yr 23 Yr 24 Yr 25 Total 11,779,018,2 35 10,279,291,3 72 8,722,347,9 92 7,106,005,2 09 5,427,996,8 60 3,685,970,3 23 1,877,483,2 22 - - - - - - - - 25,625,000,00 0 11,779,018,2 35 10,279,291,3 72 8,722,347,9 92 7,106,005,2 09 5,427,996,8 60 3,685,970,3 23 1,877,483,2 22 25,625,000,00 0 1,909,869,40 1 1,909,869,40 1 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 1,909,869,4 01 1,877,483,2 22 41,984,740,64 9 9,869,148,83 3 8,369,421,97 1 6,812,478,5 91 5,196,135,8 08 3,518,127,4 58 1,776,100,9 21 0 (16,359,740,6 49) 410,142,539 352,926,021 293,526,61 8 231,861,05 2 167,842,86 4 101,382,30 0 - 16,359,740,64 9 10,279,291,3 72 8,722,347,99 2 7,106,005,2 09 5,427,996,8 60 3,685,970,3 23 1,877,483,2 22 - 0 Additions Total Less Paid Balance Interest Total Bal C/f 156 157 Graphic No. 7 External Loan Data. Graphic No. 7 External Loans data 45,000,000,000 40,000,000,000 35,000,000,000 30,000,000,000 25,000,000,000 20,000,000,000 15,000,000,000 10,000,000,000 5,000,000,000 Interest 158 Balance Yr 25 Total Yr 24 Yr 23 Yr 22 Yr 21 Yr 20 Yr 19 Yr 18 Yr 17 Yr 16 Yr 15 Yr 14 Yr 13 Yr 12 Yr 11 Yr 9 Payment Yr 10 Yr 8 Yr 7 Yr 6 Yr 5 Yr 4 Yr 3 Yr 2 Yr 1 - Table No. 58 Loan Repayment by farmers 7--18 7--0 7--1 7--2 7--3 7--4 7--5 7--6 7--7 7--8 7--9 7--10 7--11 7--12 7--13 Loans Repayment by farmers Yearly Data Farmer Group 10A Farmer Group 10B Farmer Group 101 Farmer Group 102 Farmer Group 103 Farmer Group 104 Farmer Group 105 Farmer Group 206 Farmer Group 207 Farmer Group 208 Farmer Group 209 Farmer Group 210 Farmer Group 311 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 1,297,624,011 9,830,485 58,982,910 58,982,910 58,982,910 58,982,910 58,982,910 58,982,910 58,982,910 480,298,224 1,819,311 21,831,737 21,831,737 21,831,737 21,831,737 21,831,737 21,831,737 21,831,737 438,476,838 - 19,930,765 19,930,765 19,930,765 19,930,765 19,930,765 19,930,765 19,930,765 740,298,313 - 28,041,603 33,649,923 33,649,923 33,649,923 33,649,923 33,649,923 33,649,923 875,423,182 - 26,527,975 39,791,963 39,791,963 39,791,963 39,791,963 39,791,963 39,791,963 780,747,417 - 17,744,259 35,488,519 35,488,519 35,488,519 35,488,519 35,488,519 35,488,519 758,479,166 - 11,492,109 34,476,326 34,476,326 34,476,326 34,476,326 34,476,326 34,476,326 675,311,586 - 5,115,997 30,695,981 30,695,981 30,695,981 30,695,981 30,695,981 30,695,981 573,303,074 - - 26,059,231 26,059,231 26,059,231 26,059,231 26,059,231 26,059,231 475,464,081 - - 18,010,003 21,612,004 21,612,004 21,612,004 21,612,004 21,612,004 605,402,461 - - 18,345,529 27,518,294 27,518,294 27,518,294 27,518,294 27,518,294 819,353,687 - - 18,621,675 37,243,349 37,243,349 37,243,349 37,243,349 37,243,349 598,402,383 - - 9,066,703 27,200,108 27,200,108 27,200,108 27,200,108 27,200,108 159 7--14 Farmer Group 312 7--15 Farmer Group 313 7--16 Farmer Group 314 7--17 Farmer Group 315 Total farmers 7--18 Loans Repayment by farmers 7--0 Yearly Data 7--1 7--2 7--3 7--4 7--5 Farmer Group 10A Farmer Group 10B Farmer Group 101 Farmer Group 102 Farmer Group 103 659,973,988 - - 4,999,803 29,998,818 29,998,818 29,998,818 29,998,818 29,998,818 538,523,234 - - - 24,478,329 24,478,329 24,478,329 24,478,329 24,478,329 536,497,828 - - - 20,321,887 24,386,265 24,386,265 24,386,265 24,386,265 1,073,671,959 - - - 32,535,514 48,803,271 48,803,271 48,803,271 48,803,271 11,927,251,43 1 Yr 9 11,649,796 189,667,35 5 Yr 11 369,951,068 521,815,65 8 Yr 13 542,147,79 2 Yr 14 542,147,79 2 Yr 15 542,147,79 2 Yr 16 542,147,79 2 Yr 17 Yr 10 Yr 12 58,982,91 0 58,982,910 58,982,910 58,982,910 58,982,910 58,982,910 58,982,910 58,982,910 58,982,910 21,831,73 7 21,831,737 21,831,737 21,831,737 21,831,737 21,831,737 21,831,737 21,831,737 21,831,737 19,930,76 5 19,930,765 19,930,765 19,930,765 19,930,765 19,930,765 19,930,765 19,930,765 19,930,765 33,649,92 3 33,649,923 33,649,923 33,649,923 33,649,923 33,649,923 33,649,923 33,649,923 33,649,923 39,791,96 3 39,791,963 39,791,963 39,791,963 39,791,963 39,791,963 39,791,963 39,791,963 39,791,963 35,488,51 9 35,488,519 35,488,519 35,488,519 35,488,519 35,488,519 35,488,519 35,488,519 35,488,519 160 7--6 7--7 7--8 7--9 7--10 7--11 7--12 7--13 7--14 7--15 7--16 Farmer Group 104 Farmer Group 105 Farmer Group 206 Farmer Group 207 Farmer Group 208 Farmer Group 209 Farmer Group 210 Farmer Group 311 Farmer Group 312 Farmer Group 313 Farmer Group 314 34,476,32 6 34,476,326 34,476,326 34,476,326 34,476,326 34,476,326 34,476,326 34,476,326 34,476,326 30,695,98 1 30,695,981 30,695,981 30,695,981 30,695,981 30,695,981 30,695,981 30,695,981 30,695,981 26,059,23 1 26,059,231 26,059,231 26,059,231 26,059,231 26,059,231 26,059,231 26,059,231 26,059,231 21,612,00 4 21,612,004 21,612,004 21,612,004 21,612,004 21,612,004 21,612,004 21,612,004 21,612,004 27,518,29 4 27,518,294 27,518,294 27,518,294 27,518,294 27,518,294 27,518,294 27,518,294 27,518,294 37,243,34 9 37,243,349 37,243,349 37,243,349 37,243,349 37,243,349 37,243,349 37,243,349 37,243,349 27,200,10 8 27,200,108 27,200,108 27,200,108 27,200,108 27,200,108 27,200,108 27,200,108 27,200,108 29,998,81 8 29,998,818 29,998,818 29,998,818 29,998,818 29,998,818 29,998,818 29,998,818 29,998,818 24,478,32 9 24,478,329 24,478,329 24,478,329 24,478,329 24,478,329 24,478,329 24,478,329 24,478,329 24,386,26 5 24,386,265 24,386,265 24,386,265 24,386,265 24,386,265 24,386,265 24,386,265 24,386,265 48,803,27 1 48,803,271 48,803,271 48,803,271 48,803,271 48,803,271 48,803,271 48,803,271 48,803,271 161 7--17 Farmer Group 315 542,147,7 92 542,147,79 2 542,147,79 2 542,147,792 542,147,79 2 542,147,79 2 542,147,79 2 542,147,79 2 542,147,792 Yr 18 Yr 19 Yr 20 Yr 21 Yr 22 Yr 23 Yr 24 Yr 25 58,982,910 58,982,910 58,982,910 58,982,910 58,982,910 49,152,425 - - 1,297,624,011 21,831,737 21,831,737 21,831,737 21,831,737 21,831,737 20,012,426 - - 480,298,224 19,930,765 19,930,765 19,930,765 19,930,765 19,930,765 19,930,765 - - 438,476,838 33,649,923 33,649,923 33,649,923 33,649,923 33,649,923 33,649,923 5,608,321 - 740,298,313 39,791,963 39,791,963 39,791,963 39,791,963 39,791,963 39,791,963 13,263,988 - 875,423,182 35,488,519 35,488,519 35,488,519 35,488,519 35,488,519 35,488,519 17,744,259 - 780,747,417 34,476,326 34,476,326 34,476,326 34,476,326 34,476,326 34,476,326 22,984,217 - 758,479,166 30,695,981 30,695,981 30,695,981 30,695,981 30,695,981 30,695,981 25,579,984 - 675,311,586 26,059,231 26,059,231 26,059,231 26,059,231 26,059,231 26,059,231 26,059,231 - 573,303,074 21,612,004 21,612,004 21,612,004 21,612,004 21,612,004 21,612,004 21,612,004 3,602,001 475,464,081 27,518,294 27,518,294 27,518,294 27,518,294 27,518,294 27,518,294 27,518,294 9,172,765 605,402,461 Total farmers 7--1 7--2 7--3 7--4 7--5 7--6 7--7 7--8 7--9 7--10 7--11 Loans Repayment by farmers Yearly Data Farmer Group 10A Farmer Group 10B Farmer Group 101 Farmer Group 102 Farmer Group 103 Farmer Group 104 Farmer Group 105 Farmer Group 206 Farmer Group 207 Farmer Group 208 Farmer Group 209 162 Total 7--12 7--13 7--14 7--15 7--16 7--17 7--38 Farmer Group 210 Farmer Group 311 Farmer Group 312 Farmer Group 313 Farmer Group 314 Farmer Group 315 Total farmers 37,243,349 37,243,349 37,243,349 37,243,349 37,243,349 37,243,349 37,243,349 18,621,675 819,353,687 27,200,108 27,200,108 27,200,108 27,200,108 27,200,108 27,200,108 27,200,108 18,133,406 598,402,383 29,998,818 29,998,818 29,998,818 29,998,818 29,998,818 29,998,818 29,998,818 24,999,015 659,973,988 24,478,329 24,478,329 24,478,329 24,478,329 24,478,329 24,478,329 24,478,329 24,478,329 538,523,234 24,386,265 24,386,265 24,386,265 24,386,265 24,386,265 24,386,265 24,386,265 24,386,265 532,433,450 48,803,271 48,803,271 48,803,271 48,803,271 48,803,271 48,803,271 48,803,271 48,803,271 1,057,404,202 542,147,792 542,147,79 2 542,147,79 2 542,147,792 542,147,79 2 530,497,99 6 352,480,43 7 172,196,72 11,906,919,29 5 6 163 Graphic No. 8 Farmers Loan Data. Graphic No. 8 LoanRepayment by Farmers 600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 Yr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 164 8.0.0 LANDS ALLOCATION AND DISTRIBUTION Land is the main commodity of trade for Samuland Investments Company. It forms the base for all projected and company activities. Land will be used for farming and all industrial and social welfare works and facilities. The project will create four categories of land use. 1) Land for farming ( livestock and crop farming) 2) Communal use lands ( for water dams and other communal uses such as schools and churches) 3) Commercial uses ( for trading centers and industrial sites) 4) Roads and other mandatory public lands surrendered to the state. The project has planned to allocate its lands as per the following table of allocations and land uses. Agriculture land parcels are in multiples of 2.5 acres. The minimum land allocation for agriculture purposes is five acres and the largest single parcel is 30 acres. The other allocations greater than 30 acres are a combination of convenient land parcels totalling to the acreage allocated. 96% of the applicants have been allocated land parcels of between five and seventy five acres and about 80% of the land allocated to farming by the beneficiaries. This is to spread wealth to as many people as possible and creating a reserve labour force and a wide market for the project. 8.0.1 Lands Data All lands shall be paid for by every entity to which the land has been allocated, this will enable the company to recover amounts that were used for buying the land; that is the basic project policy on land. Table No.59 Land use and distribution PROJECT No. 8--0 8--1 8--2 Lands Allocations Lands PROPOSED LAND USES AND TRANSACTIONS 8--3 Settlement Policy strategy 8--4 8--5 Lands transaction a) Land for sale to farmers Department at Hq On the ground settling procedure especially for farmers Acres 8--6 b)Land for transfer to company and project 8--7 Lands Categories 165 % of total Land Lands that will be sold to the farmers at a price plus some operation costs Lands taken by project or company at cost price 8--8 Project lands 819.00 166 Lands set aside for project 1.17 investments by the company 8--9 Agriculture lands (Farming purposes) 8--10 Company lands 8--11 8--12 8--13 8--14 8--8 39,700.00 56.71 28,621 40.89 500.00 0.71 60.00 0.09 300.00 0.43 819.00 1.17 39,700.00 56.71 28,621 40.89 500.00 0.71 60.00 0.09 300.00 0.43 Farmers farms Government lands Communal use lands Trading centres Lands whose main use is farming Lands allocated to the company (S.I.C.) Lands to farmers as beneficiaries Lands set aside for government mandatory use e.g. roads Lands set aside for project use facilities Areas set aside for commercial operations plots Project lands 8--10 Company lands 8--11 Farmers farms 8--12 Government lands 8--13 Communal use lands 8--14 Trading centres Graphic No. 9 Land use allocation Graphic No 9 Land Use Allocation Trading centres Communal use lands Government lands Farmers farms Company lands Project lands - 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 35,000.00 40,000.00 45,000.00 167 Chart No 21 land use plan (sketch plan) PLANNED PROJECT SET-UP AND LAND USE TC Domestic Water Industrial area Collection cent Adm. Centre Open Air Market Company farms livestock Wild life Reserve Research Farm Company farms Crops Schools Hospital Churches Social services Technical Institutes Company Farms livestock development and sales Dam and water systems Waterdam 168 8.0.2 Lands Statistics Table No 60 Land sizes Distribution 8--16 Land Distribution Data 8--17 Acreage 8--18 5.00 8--19 7.50 8--20 10.00 8--21 12.50 8--22 15.00 8--23 17.50 8--24 20.00 8--25 25.00 8--26 30.00 8--27 35.00 8--28 40.00 8--29 50.00 8--30 60.00 8--31 75.00 8--32 100.00 8--33 125.00 8--34 150.00 8--35 175.00 8--36 200.00 8--37 250.00 8--38 300.00 Applicants Total 2,168.00 10,840.00 75.00 562.50 199.00 1,990.00 52.00 650.00 121.00 1,815.00 9.00 157.50 90.00 1,800.00 75.00 1,875.00 19.00 570.00 14.00 490.00 12.00 480.00 36.00 1,800.00 2.00 120.00 10.00 750.00 18.00 1,800.00 3.00 375.00 8.00 1,200.00 1.00 175.00 5.00 1,000.00 1.00 250.00 2.00 600.00 169 8--39 500.00 2.00 1,000.00 5,750.00 2.00 11,500.00 28,200.00 8--42 TOTAL LANDS 1.00 28,200.00 8--40 8--41 70,000.00 Table 61 Land distribution summary 8--43 Land Allocations Summary 8--44 Acreage range Applicants Acreage Average Holding 2,442.00 13,392.50 5.48 272.00 4,422.50 16.26 156.00 5,215.00 33.43 30.00 2,670.00 89.00 12.00 1,750.00 145.83 10.00 2,850.00 285.00 2.00 11,500.00 1.00 28,200.00 2,714.00 17,815.00 6.56 158.00 5,335.00 33.77 39.00 4,125.00 105.77 11.00 2,851.00 259.18 1.00 39,700.00 Acreage range Applicants 5 to 10 2,442.00 Acreage 8--45 5 to 10 8--46 12.5 to 20 8--47 25 to 50 8--48 60 to 100 8--49 8--50 8--51 8--52 125 to175 200 to 500 1000 to 5750 10000 to 30000 8--53 5 to 20 8--54 25 to 60 8--55 75 to1 50 8--56 175 to 500 8--43 Company 8--44 8--45 13,392.50 170 8--46 12.5 to 20 8--47 25 to 50 8--48 60 to 100 8--49 272.00 4,422.50 156.00 5,215.00 30.00 2,670.00 12.00 1,750.00 10.00 2,850.00 2.00 11,500.00 1.00 28,200.00 125 to175 8--50 200 to 500 8--51 1000 to 5750 8--52 10000 to 30000 Graphic No. 10 Farmers Land distribution Graphic No 10 Land Distribution to Beneficiaries 16,000.00 14,000.00 12,000.00 10,000.00 8,000.00 6,000.00 4,000.00 2,000.00 5 to 10 12.5 to 20 25 to40 Applicants 50 to75 Acreage 171 100 to150 175 to 500 1) Land distributed to farmers as per acreage allocated and number of applicants 2) Above data is for beneficiaries (Farmers) Company and project not included 8.0.3 AGRICULTURE LAND DISTRIBUTION STRATEGY Company farms are in a category of their own and are the largest farms. In total the applicants are about 3000 and it is our intentions to start serving them immediately after being financed Individual agricultural land will be used as per this chart. This rule shall hold true for all persons on the project. Main reason for being this strict is that domestic food has to be produced to avert hunger and food shortages. DOMESTIC FOODS On 25% of land allocated CASH CROPS on 30% of land allocated CROP ROTATION On 30% of land allocated It will be compulsory to produce foods that are of local applications. These are: a) Maize, beans, peas, potatoes and such other foods for the community. Chart No. 22 Agriculture Land use summary 25 % - Domestic b) food Take enough for personal use and for employees Excess to company stores for use by people in the trading centres (Crops rotation) Milk, Eggs, BeefMutton To finance personal and day to day expenditures Cash crop 30% Cash crop for export c) d) Homestead – 45 % 172 Loan repayment Graphic No.11 Agricultural Land Use 8.0.4 Non Agricultural lands. These areas comprises of: a. b. c. d. Trading centres Roads Public use lands Various land parcels for use in various public applications such as schools, dams and cemeteries churches and recreation facilities 8.0.5 TRADING CENTRES PLOTS 173 Trading Centers have been allocated 300 acres upon which various classes of plots will be planned The plots in the trading centres shall be sold to the farmers at prices ranging from Kshs. 84,000 (US$ 1,200) to Kshs. 98,000 (US$ 1,400) per plot depending on the site and size of a plot of each trading centre. Plots will be classified as, A) Commercial plots B) Residential plots C) Commercial cum residential D) Industrial plots Table No. 62 Trading Centres plots Plot type 1 commercial Plots 2. Residential plots 3. Residential/ commercial 4. Industrial plots Acrea Plots /acre ge 180 8 50 4 30 6 40 Total plots 5 1440 200 180 200 Graphic No. 12 All Land Distribution Graphic No. 11 Land distribution 10000 to 30000 1000 to 5750 200 to 500 125 to175 60 to 100 25 to 50 12.5 to 20 5 to 10 - 5,000.00 10,000.00 15,000.00 Applicants 174 Acreage 20,000.00 25,000.00 30,000.00 8.0.3 PROJECT LANDS OFFICES LAYOUT Chart No 23 Lands Office Layout Land Office Lands Sales Maps and records Lands Registry Agriculture Lands Project Lands 175 Trading Centres Plot Table No. 63 Lands zones codes 8--58 Centre Name Particulars Duties, goals and objectives Locati on code 8--59 8--60 Project lands Zooning LANDS LOCATIONS AND SITES AND CODES 8--61 Abbreviations used in land sites description 8--62 All land purchased 8--63 All land purchased Codes used to describe type, purpose and location of a land parcel for grouping purposes Purchase of all lands ( Projected 7000 Acres) GRD GRD ground 70,000 8--64 Land purchased 8--65 Company lands 8--66 8--67 Project lands Communal Utility lands All other allocations are derived from this code lands allocated to the company owned by ( Samuland Investments Company ) Lands set aside for project investments by the company GRD GRD/ 1 GRD/ 2 lands allocated for public use GRD/ 3 8--68 Farmers lands Land allocation for farmers GRD/ 4 8--69 8--70 Trading Centres Agriculture facilities land Lands for commercial areas Lands allocated to agriculture developments and uses ( part of GRD/1) 176 GRD/ 5 ASL 8--71 Factory facility 8--72 Power generation lands 8--73 Support services facility land 8--74 8--75 Head quarter Offices Social services facility 8--76 Land purchased 8--77 Power generation lands project lands set aside for stores , factories and industrial uses ( part of GRD/2) Many locations conveniently located for industrial use ( parts of GRD) Lands used by support services (Part of GRD/2) Project head quarter areas ( part of GRD/1 ) Lands for social services uses ( parts of GRD/2) All other allocations are derived from this code Many locations conveniently located for industrial use ( parts of GRD) 177 FS FSL FSS HQ SSL GRD FSL Table No.64 Project and company lands allocation sites codes summary 8--78 Company Farms Head office at general HQ 8--79 Bio Fuels Farms HQ--6--1 Lands allocated to Samuland Inv. Co. for required income generation at GRD/1 GRD/1--1 for production of bio fuel plants and conservancy 28,200 8--80 Crop Production Division 8--81 Company Livestock Farm 8--82 Agriculture Services (Research) Agriculture Research and Developments Agriculture Research Division Livestock Development & sales Quality Control Centre Marketing and Quantity Control Internal markets National Markets Export markets Agricultural operations GRD/1--2 For production of the crops like any other farmer GRD/1--3 Livestock section of the company farms GRD/1--4 parts of Company Farms ( GRD/1) GRD/1--4 For research and demonstration purposes 5,750 5,750 8--83 8--84 8--85 8--86 8--87 8--88 8--89 8--90 8--91 GRD/1--4--1 GRD/1--4--2 GRD/1--4--3 GRD/1--4--4 GRD/1--4--5 GRD/1--4--6 GRD/1--4--7 HQ--7--1 8--92 Agriculture Operation offices 8--93 Agriculture Department (Farming) 8--94 Project use lands 8--95 Project lands HQ--7--2 HQ--7--3 GRD/2 GRD/2 Centres for coordinating research on agriculture activities, seedlings and environment issues Agr. Research on livestock development and sale to farmers. And A.I. services Quality control centre for all production, farm or industrial Control of farm production especially external destination goods mad market research Markets on the project areas Markets outside the project areas but with national boundaries Markets outside the country Area on company lands set aside for agriculture services ( Part of GRD/5 and owned by GRD/5) To take care of all farm matters To deal with matters of beneficiaries farming part of ground GRD Lands set aside for project investments by the company 627 178 8--96 8--97 8--98 8--99 8--100 8--101 8--102 8--103 SAMULAND INV> CO. & Project HQ Head Quarter DIVISION office Subsidiaries offices Sacco Project TC Business Loans Support Services Project Printing Press Project Civil Works (HQ) HQ--0 Head offices for all divisions HQ--1 Offices built at Hq land ( 26.5 Acres) 27 HQ--2 HQ--2--1 HQ--2--2 HQ--3 HQ--3--1 HQ--3--2 8--104 8--105 8--106 8--107 8--108 8--109 Stores and supplies Farmers Stores H/O Industrial Production Light Industries Depart Agro-Industries Social Welfare operation offices 8--110 Samuland Ed..Department 8--111 Advanced Learning Institutes 8--112 Public Health HQ--4 HQ--4--1 HQ--4--2 HQ--4--2--1 HQ--4--2--2 HQ--5 HQ--5--1 HQ--5--2 Hq--2--1 and Hq--2--2 Banking sector of the project and beneficiary Financing trades in the trading centres Management and control of all support operations Production of newsletters , books and stationery Construction of water, roads buildings and making required components for same head office for Stores and Supplies at the HQ For all supplies needs Head office for industries All industries except those related to foods for human consumption All industries related to foods for human consumption To deal with matters of social benefits to the project community eg education and health All areas of education; academic, technical or morals All matters related to post-secondary education HQ--5--3 All matters relevant to public safety in health ( e.g. environmental cleanliness) HQ--5--4 For social sporting activities HQ--6 Samuland Investments Company Affairs HQ--7 Coordination of farming matters 8--113 8--114 8--115 Samuland Recreation HQ Company Offices Agriculture Operations Main Office 8--116 Support services facility land 8--117 Project Workshops FSS FSS/1 Ares allocated for support services but far in the fields For making items required by the project eg culverts (part of GRD/4) 15 179 8--118 Project Buildings FSS/1--1 - 8--119 Farmers buildings For construction and maintenance projects, company and beneficiaries FSS/1--2 buildings on farmers lands as per their request 8--120 Project Hire Implements FSS/1--3 - 8--121 Transportation Department Farm implements services to farmers especially to small farmers and specialised equipment FSS/1--4 Transportation of materials to and from the project areas 8--122 Dams & water systems FSS/2 Facilities for water storage and delivery to consumers 150 8--123 Storage Tanks FSS/2--1 For water storage especially domestic and TC water FSS/2--2 For water treatment for domestic and TC water usage 8--124 Water treatment Plants - 8--125 Water delivery systems FSS/2--3 - 8--126 Irrigation System The various piping systems used to deliver water to the consumers from storage areas FSS/3 Water facility for irrigation purposes only 15 8--127 Domestic System FSS/4 Part of irrigation water treated for human consumption FSS/5 Part of treated water delivered to trading centres consumption FF. FFL FFL/1 Ares allocated for factories in fields 1 8--128 Project TC Water Supply 2 8--129 8--130 8--131 Factory facility Light Industries Mechanical Workshops 5 8--132 Wood Workshops 2 8--133 Timber sawmills Workshops to make or modify or repair metallic tools needed for operations FFL/2 Workshops to make or modify or repair wooden tools needed for operations FFL/3 Factories for producing timbers 4 8--134 P.V.C.Pipes FFL/4 2 8--135 Project Power Supply 25 For making water pipes and other accessories related to liquids deliveries FFL/5 For producing solar and wind electricity to supplement or sell to the national grind 180 8--136 8--137 Agro Industries Dairy Produce FFA FFA/1 Processing dairy products FFA/2 Production of all types of flours FFA/3 Making of confectioneries FFA/4 Canning of both meat and other foods FFA/5 Production of all meat FFA/6 Factory for diesel and other fuel extractable from plants on the farms 2 8--138 Flour Mills 2 8--139 Bakeries factories 2 8--140 Canning Factories 2 8--141 Slaughter Houses 25 8--142 Bio fuel Industries - 8--143 8--144 Stores facility Machinery & Tools Stores FS FS/1 1 8--145 Dry Foods stores Ares allocated for stores and supplies services but far in fields Stores for all machineries, motor vehicles and other tools for activities in the project area FS/2 Storage of cereals from the farms or external sources 8--146 Green Foods Stores FS/3 - 8--147 Drugs Stores storage of foods especially vegetables from the farms awaiting transfer to markets FS/4 Human ,and agro - vet drugs 8--148 Petroleum Products Stores FS/5 storage of all petroleum products 2 8--149 8--150 8--151 Social services facility Education department Nursery Schools SS SSE SSE/1 Social services facilities All matters of education Starting point of all learning ( academics) SSE/2 Continuation of academics learning SSE/3 Last stage of basic academic learning 50 8--152 Primary Schools 75 8--153 Secondary Schs 125 181 8--154 Special Schs SSE/4 30 8--155 Technical Sch. To cater for those in some form of disability such as slow learning, bride or deaf SSE/5 To teach trades especially those related to agro business applications 45 8--156 Adult Education Centres SSE/6 5 8--157 Public Health and Morals facilities 8--158 Hospitals SSH/1 50 8--159 Education both academic and technical to improve the level of adult beneficiaries SSH All matters of physical and moral welfare Community Health Main health provision facility for major cases from the first aid health centres SSH/2 First aid centres for minor treatments 10 8--160 Sports Complex SSH/3 Recreation and sporting area for the communities SSH/4 For the welfare of the members SSH/5 Counselling and knowledge impacting centres GRD/3 part of ground GRD Lands set aside for project use facilities Lands set aside for government mandatory use eg roads Lands for commercial areas For plot categories 50 8--161 Churches 50 8--162 Community Hall 15 8--163 8--164 8--165 8--166 8--167 Communal utility lands Communal use lands Government lands Trading Centres Commercial plots, residential plots…… 8--168 Roads GRD/5 GRD/5--1 to GRD/5--4 GRD/3--1 Area reserved for roads and passages 500 8--169 Sewages GRD/3--2 In trading centres GRD/3--3 For the final services to members and any other cases 25 8--170 cemeteries 35 182 Table No.65 Farmers lands allocations 8--171 8--172 8--173 Farmers lands Farmers Farmers lands GRD/4 GRD/4 part of ground GRD Land allocation for farmers 28,621. 00 8--174 8--175 8--176 8--177 Farmers three Phases Farmers groups Directors and think tank Farmer Group 10A GRD/4--1 to GRD/4--3 GRD/4--1--1 meaning farmers land phase one group one GRD/4--D First entry group GRD/4--D--1 Directors and members of think tank ( for services ) 3,250 8--178 Farmer Group 10B GRD/4--D--2 Major group of member employees ( for services ) GRD/4--1 GRD/4--1--1 Member farmers First group of farmers GRD/4--1--2 Second group for farmers GRD/4--1--3 third group of farmers GRD/4--1--4 Fourth group of farmers GRD/4--1--5 5th farmers 1,090 8--179 8--180 Phase one farmers Farmer Group 101 1,060 8--181 Farmer Group 102 1,832 8--182 Farmer Group 103 2,065 8--183 Farmer Group 104 1,850 8--184 Farmer Group 105 1,820 8--185 8--186 Phase two farmers Farmer Group 206 8--187 Farmer Group 207 8--188 Farmer Group 208 GRD/4--2 GRD/4--2-6 Member farmers 6th farmers GRD/4--2-7 7th farmers GRD/4--2-8 8th farmers 1,645 1,382 1,085 183 8--189 Farmer Group 209 GRD/4--2-9 9th farmers GRD/4--2-10 10th farmers 1,447 8--190 Farmer Group 210 1,985 184 8--191 8--192 Phase three farmers Farmer Group 311 GRD/4--3Member farmers GRD/4--3--1111th farmers 1,445 8--193 Farmer Group 312 GRD/4--3--1212th farmers 1,590 8--194 Farmer Group 313 GRD/4--3--1313th farmers 1,282 8--195 Farmer Group 314 GRD/4--3--1414th farmers 1,275 8--196 Farmer Group 315 GRD/4--3--1515th farmers 2,518 Table No. 66 Other uses lands 8--197 8--198 8--199 Trading Centres Trading centres Trading centres GRD/5 GRD/5 part of ground GRD Areas set aside for commercial operations plots Area reserved for commercial trading centres 300 8--200 8--201 8--202 Residential plots Commercial plots Residential/commercial plots 8--203 Industrial plots 8--204 Car Parks GRD/5--1 GRD/5--2 GRD/5--3 GRD/5--4 GRD/5--5 In trading centres 25 8--205 Total 70,000 185 Table No 67 Settlement on the ground timelines by company and project 8--206 LAND SETTLEMENT PLAN 8--207 SETTLEMENT TIMELINE 8--208 (Acreage as measuring unit) 8--209 Lands TO PROJECT Lands Purchase Account. 8--211 HEAD QUARTER OPERATIONS T 8--212 Sacco Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Total - - - - - - - - - - - - - - - - - 27 27 - - - - - - 27 - - - - - - - - - - - - - - - - - - - - - - - - 15 15 - - - - - - 15 500 500 - - - - - - 500 - - - - - - - - - 150 150 - - - - - - 150 8--210 8--213 Project TC Business Loans 8--214 Project Civil Works (HQ) 8--215 Project Workshops 8--216 Roads 8--217 Building 8--218 Dams & water systems 186 8--219 8--220 Irrigation System 15 15 - - - - - - 15 1 1 - - - - - - 1 2 2 - - - - - - 2 25 - - 13 13 - - - 25 25 - - 1 6 6 6 6 25 - - - - - - - - - - - - - - - - - - - - - - - - 28,200 - 28,200 - - - - - 28,200 5,750 5,750 - - - - - - 5,750 5,750 5,750 - - - - - - 5,750 - - - - - - - - - - - - - - - - 1 1 0 - - - - - 1 2 1 1 - - - - - 2 5 2 3 - - - - - 5 2 1 1 - - - - - 2 Domestic System 8--221 Project TC Water Supply 8--222 Car Parks 8--223 8--224 Sewages Project Printing Press 8--225 Transportation Department 8--226 Company Farms 8--227 Bio Fuels Farms 8--228 Crop Production Division 8--229 Company Livestock Farm 8--230 Stores and Supplies operations 8--231 Light Industries Depart 8--232 Machinery & Tools Stores 8--233 Petroleum Products Stores 8--234 Mechanical Workshops 8--235 Wood Workshops 187 8--236 8--237 8--238 8--239 8--240 8--241 8--242 8--243 8--244 8--245 8--246 8--247 8--248 8--249 Timber sawmills 4 1 3 - - - - - 4 2 - - - 2 - - - 2 25 - - 20 5 - - - 25 - - - - - - - - - - - - - - - - 2 1 0 - - - - - 2 2 1 1 - - - - - 2 2 1 1 - - - - - 2 25 13 13 - - - - - 25 2 - - - - 1 1 - 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - P.V.C.Pipes Project Power Supply Agro-Industries Bio fuel Industries Dairy Produce Flour Mills Bakeries factories Slaughter Houses Canning Factories Farmers Stores H/O Dry Foods stores Green Foods Stores Drugs Stores 8--250 Social Welfare operation acc 8--251 Samuland Ed..Department 8--252 Advanced Learning Institutes 188 8--253 8--254 8--255 8--256 8--257 8--258 8--259 8--260 8--261 8--262 8--263 8--264 8--265 8--266 Adult Education Depart 5 1 2 2 - - - - 5 50 5 10 18 18 - - - 50 75 23 23 23 8 - - - 75 125 - 75 50 - - - - 125 30 - - 8 8 8 8 - 30 45 - - 45 - - - - 45 - - - - - - - - 10 5 5 - - - - - 10 50 - - 50 - - - - 50 35 25 10 - - - - - 35 - - - - - - - - 50 - 14 17 17 3 - - 50 15 5 8 3 - - - - 15 50 13 17 17 4 - - - 50 - - - - - - - - - - - - - - - - 1 2 2 1 - - - 5 Nursery Schools Primary Schools Secondary Schs Special Schs Technical Sch. Public Health Community Health Hospitals Cemeteries Samuland Recreation HQ Sports Complex Community Hall Churches 8--267 Agriculture Operation Account 8--268 Agriculture Department (Farming) 8--269 Produce Centres 5 189 8--270 Parking Houses 5 8--271 5 - - - - - - 5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 41,080 12,311 28,386 265 80 18 15 6 41,080 Project Hire Implements 8--272 Agriculture Research Division 8--273 Quality Control Centre 8--274 Livestock Development & sales 8--275 Marketing and Quantity Control 8--276 TOTALS Table No.68 Settlement on the ground by farmers 8--277 8--278 8--279 8--280 8--281 8--282 8--283 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Total 3,250 3,250 - - - - - - 3,250 1,090 1,090 - - - - - - 1,090 1,060 942 118 - - - - - 1,060 1,832 1,221 611 - - - - - 1,832 2,065 918 1,147 - - - - - 2,065 1,850 411 1,439 - - - - - 1,850 Farmer Group 10A Farmer Group 10B Farmer Group 101 Farmer Group 102 Farmer Group 103 Farmer Group 104 190 8--284 8--285 8--286 8--287 8--288 8--289 8--290 8--291 8--292 8--293 8--294 8--295 Farmer Group 105 1,820 - 1,820 - - - - - 1,820 1,645 - 1,645 - - - - - 1,645 1,382 - 1,228 154 - - - - 1,382 1,085 - 723 362 - - - - 1,085 1,447 - 643 804 - - - - 1,447 1,985 - 441 1,544 - - - - 1,985 1,445 - - 1,445 - - - - 1,445 1,590 - - 1,590 - - - - 1,590 1,282 - - 1,140 142 - - - 1,282 1,275 - - 850 425 - - - 1,275 2,518 - - 1,119 1,399 - - - 2,518 28,621 7,832 9,816 9,007 1,966 - - - 28,621 41,080 12,311 28,386 265 80 18 15 6 41,080 - 20,143 58,345 67,617 69,663 69,681 69,695 69,701 - 69,701 20,143 38,202 9,272 2,046 18 15 6 69,701 Farmer Group 206 Farmer Group 207 Farmer Group 208 Farmer Group 209 Farmer Group 210 Farmer Group 311 Farmer Group 312 Farmer Group 313 Farmer Group 314 Farmer Group 315 Total farmers Table No. 69 Settlement dates data summary 8--296 Project and company 8--297 Accumulated land occupation 8--298 TOTAL ALLOCATIONS 191 8--277 8--295 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 7,832 9,816 9,007 1,966 - - - 12,311 28,386 265 80 18 15 6 20,143 58,345 67,617 69,663 69,681 69,695 69,701 20,143 38,202 9,272 2,046 18 15 6 Farmers acreage 8--296 Project and company acreage 8--297 Accumulated land occupation acreage 8--298 Total Settled acreage 192 Graphic No. 13 Land Distribution and occupation Graphic No 13 Land Distribution and Occupation 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Farmers acreage Project and company acreage Accumulated land occupation acreage Total Settled acreage Yr 7 The settlement hence land sales will be concentrated to the first 42 month and especially during the 9th month to 30th month when the bulk of the farmers will be coming in on the farm project. By the end of the fifth year all settlements will be completed and constructions going on. 193 Graphic No.14 Farmers Settlements on the farms. Graphic No. 14 Farmers Settlement on land Acres 50,000.00 45,000.00 40,000.00 35,000.00 30,000.00 25,000.00 20,000.00 15,000.00 10,000.00 5,000.00 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 9.0.0 LAND SALES DATA The lands in the project are of three groups; 1) Group one is land for sale to the farmers and beneficiaries 2) Group two is lands for the operations of the company ( Samuland Investments Company) 3) Group three is for lands on which the project activities will be under taken other than farming. The trading centres are in a group that serves all categories and project operations. The company and project operations have taken about 60 % of all lands and farmers 40% For purposes of sale, the lands occupied by the project and the company have not been considered as sale but as a total purchase of asset land and that a portion has 194 been cut and sold to the farmers. The company and its various operation centres will each pay for the land allocated to it. The lands bought by the company will be transacted as follows:a) Lands sold to the farmers ( in land sale agreement payable in instalments) b) Lands allocated to the project for both commercial and humanitarian applications c) Lands allocated as commercial centers to create towns. d) Lands retained by the company for its own uses and activities e) Lands released to the government as a mandatory settlement requirement All lands except those released to the government for roads will be paid for by the entity to which the land has been allocated Table No.70 Distribution Summary Entity Allocated Acres 8--8 Project lands 819.00 8--10 Company lands 39,700.00 8--11 Farmers farms 28,621 Government lands 500.00 Communal use lands 60.00 8--12 8--13 8--14 Trading centres Total lands 300.00 70,000.00 Table No. 71 Land Sales Component Data FARMERS (LAND SALES DATA) PROJECT No. 9--0 FARMERS (LAND SALES DATA) 195 9--1 9--2 Land Cost Registration Cost 9--3 9--4 9--5 Stamp Duty Title Deed and Lease Survey Fees 9--6 Water Charge 9--7 Infrastructure Kshs 170,000 per acre minimum Kshs 250 per Maximum Kshs 975 7.5% of land cost Kshs .7500 per title 7,500.00 30,000.00 9--8 9--9 9--10 9--11 Clearance Land Cost Intest on Land 17.5% Payable 7,500.00 Kshs 5000 per applicant Totals of above 17.5% of total land cost Total of land cost and interest 9.0.1 Land selling components These items are the charges to be made on the land sale per acre so that the company can recover the cost of land acquisition Prices can change due to various factors that the project cannot control. a) Land price per acre is based on the average selling price b) Registration fees minimum registration fees is Kshs 1000.00 per applicant with 5 acres The charge rate decreases as acreage increase. This item can be varied by the director. c) Stamp duty this is a mandatory government cost. d) Title deed and lease ( For land ownership to the farmer) e) Survey fees ( Mandatory cost for land identification) f) Water charges ( main water supply system from the main sources) g) Infrastructures ( cost of roads both major and farm roads) Items (d) to (g) form part of the mandatory costs for the good of the farmers. h) Clearance (This is an administrative charge made per applicant minimum is Kshs 5000.00. i) The total land acquisition cost is the total of all the above items j) Interest will be calculated on this total. ( This interest amount can be varied by the directors) k) Total payable is the sum of land acquisition and the interest amount. This amount will be invoiced to the farmers and be denoted as “TOTAL A” costs by the Head office lands department on the signing of land documents LAND INVOICE for “TOTAL A” Office “ Lands Department” 196 issued by Head Contract Sale Agreement signed 9.0.2 Land Cost loan Repayment Land will be repaid by farmers in monthly instalment determined by the invoice value. The repayment is in 264 instalments equal 24 years duration. This coincides with the end of the loan term. 9.0.3 LAND DISTRIBUTION STRATEGY On acquiring the land, Samuland Investment Company, will develop the necessary infrastructure, such as water for irrigation, roads and the sub-divisions of the land The applicants are to come in phases & in groups so that the areas ready for occupation can be used immediately. There are three phases of entry by farmers 1-3 and each phase has five groups. The phases are structured as follows: a) Phase 1 with groups 101, 102, 103,104 and 105 b) Phase 2 with groups 206, 207, 208, 209 and 210 c) Phase 3 with groups 311,312, 313, 314, and 315 In total the applicants are about 3000 and it is our intentions to start serving them immediately after being financed There will be a time interval of about one months between any two consecutive groups after group 206 the interval will be reduced to two weeks. These intervals are for logistic purposes Land sales and distribution will take place during the first five years. During this period all farmers will be settled on the already purchased lands and the required facilities set and constructions going on if not already completed. Each farmer will take his/her produces to the company’s collection centres for marketing by the company on behalf of the farmers The company will start its agricultural operations/ activities immediately on take-over of the farm and start raising livestock and producing horticultural produce, with emphasis on products that can be sold fast and produce funds quickly. 197 Table No. 71A LAND SALES TO FARMERS (Land cost to Survey fees) 9--12 Centre Name 9--13 Farmer Group 10A 9--14 9--15 9--16 9--17 9--18 9--19 9--20 9--21 9--22 9--23 9--24 9--25 9--26 Acreage Land Cost Registration Stamp Duty Title Deed Survey Fees 3,250 552,500,00 0 797,500 41,437,50 0 1,245,00 0 24,375,00 0 Farmer Group 10B 1,090 185,300,00 0 331,875 13,897,50 0 457,500 8,175,000 Farmer Group 101 1,060 180,200,00 0 531,225 13,515,00 0 622,500 7,950,000 Farmer Group 102 1,832 311,440,00 0 720,825 23,358,00 0 915,000 13,740,00 0 Farmer Group 103 2,065 351,050,00 0 1,144,875 26,328,75 0 1,305,00 0 15,487,50 0 Farmer Group 104 1,850 314,500,00 0 1,244,100 23,587,50 0 1,470,00 0 13,875,00 0 Farmer Group 105 1,820 309,400,00 0 1,170,450 23,205,00 1,395,00 0 0 13,650,00 0 Farmer Group 206 1,645 279,650,00 0 1,234,900 20,973,75 0 1,522,50 0 12,337,50 0 Farmer Group 207 1,382 234,940,00 0 1,139,350 17,620,50 0 1,507,50 0 10,365,00 0 Farmer Group 208 1,085 184,450,00 0 1,059,100 13,833,75 0 1,515,00 0 8,137,500 Farmer Group 209 1,447 245,990,00 0 1,164,600 18,449,25 0 1,530,00 0 10,852,50 0 Farmer Group 210 1,985 337,450,00 0 1,300,175 25,308,75 0 1,590,00 0 14,887,50 0 Farmer Group 311 1,445 245,650,00 0 1,238,650 18,423,75 0 1,702,50 0 10,837,50 0 Farmer Group 312 1,590 270,300,00 0 1,269,575 20,272,50 0 1,695,00 0 11,925,00 0 198 9--27 9--28 9--29 9--30 Farmer Group 313 1,282 217,940,00 0 1,190,550 16,345,50 0 1,687,50 0 9,615,000 Farmer Group 314 1,275 216,750,00 0 1,245,350 16,256,25 0 1,762,50 0 9,562,500 Farmer Group 315 2,518 428,060,00 0 1,828,625 32,104,50 0 2,107,50 0 18,885,00 0 TOTALS 28,621 4,865,570,0 00 18,611,725 364,917,7 50 24,030,0 00 214,657,5 00 Table No 71B LAND SALES TO FARMERS (Water charge to interest charges) 9--12 9--13 9--14 9--15 9--16 9--17 9--18 9--19 9--20 9--21 9--22 9--23 9--24 9--25 9--26 9--27 9--28 9--29 Centre Name Farmer Group 10A Farmer Group 10B Farmer Group 101 Farmer Group 102 Farmer Group 103 Farmer Group 104 Farmer Group 105 Farmer Group 206 Farmer Group 207 Farmer Group 208 Farmer Group 209 Farmer Group 210 Farmer Group 311 Farmer Group 312 Farmer Group 313 Farmer Group 314 Farmer Group 315 Water Infrastructure Clearance Land Cost Intest on Land Paya 17.5% 97,500,000 24,375,000 32,700,000 8,175,000 250,000.00 249,286,875.00 43,625,203.13 292 31,800,000 7,950,000 375,000.00 242,943,725.00 42,515,151.88 285 54,960,000 13,740,000 500,000.00 419,373,825.00 73,390,419.38 492 61,950,000 15,487,500 750,000.00 473,503,625.00 82,863,134.38 556 55,500,000 13,875,000 875,000.00 424,926,600.00 74,362,155.00 499 54,600,000 13,650,000 875,000.00 417,945,450.00 73,140,453.75 491 49,350,000 12,337,500 1,000,000.00 378,406,150.00 66,221,076.25 444 41,460,000 10,365,000 1,000,000.00 318,397,350.00 55,719,536.25 374 32,550,000 8,137,500 1,000,000.00 250,682,850.00 43,869,498.75 294 43,410,000 10,852,500 1,000,000.00 333,248,850.00 58,318,548.75 391 59,550,000 14,887,500 1,000,000.00 455,973,925.00 79,795,436.88 535 43,350,000 10,837,500 1,125,000.00 333,164,900.00 58,303,857.50 391 47,700,000 11,925,000 1,105,000.00 366,192,075.00 64,083,613.13 430 38,460,000 9,615,000 1,125,000.00 295,978,550.00 51,796,246.25 347 38,250,000 9,562,500 1,170,000.00 294,559,100.00 51,547,842.50 346 75,540,000 245,000.00 742,475,000.00 129,933,125.00 872 18,885,000 1,205,000.00 578,615,625.00 101,257,734.38 679 199 9--30 TOTALS 858,630,000 214,657,500 14,600,000 Table No. 72 Land Sales to farmer’s summary. 9--31 9--32 9--33 9--34 9--35 9--36 9--37 9--38 9--39 9--40 9--41 9--42 9--43 9--44 9--45 9--46 9--47 9--48 9--49 9--50 9--51 DISTRIBUTIONS TO FARMERS Land and store sales ( Initial sales) Centre Name Acreage Farmer Group 10A 3,250 Farmer Group 10B 1,090 Farmer Group 101 1,060 Farmer Group 102 1,832 Farmer Group 103 2,065 Farmer Group 104 1,850 Farmer Group 105 1,820 Farmer Group 206 1,645 Farmer Group 207 1,382 Farmer Group 208 1,085 Farmer Group 209 1,447 Farmer Group 210 1,985 Farmer Group 311 1,445 Farmer Group 312 1,590 Farmer Group 313 1,282 Farmer Group 314 1,275 Farmer Group 315 2,518 Total Sales 28,621 Land 919,499,011 308,423,224 300,976,838 520,298,313 586,673,182 526,372,417 517,854,166 469,061,586 394,553,074 310,464,081 412,902,461 564,978,687 412,777,383 453,723,988 366,648,234 364,622,828 716,171,959 8,146,001,431 200 6,575,674,475 1,150,743,033 7,7 9--52 Cost of sales 9--53 Profit margin 9--54 Margin % 3,148,310,000 4,997,691,431 61 Table No. 73 Trading Centres Plot sales 9--56 TC Plots sales 500,000,000 Commercial Residential Residential/Comm 9--57 Surname Industrial Tota plots 9--58 Acreage 180 50 30 40 8 4 6 5 1,440 200 180 200 125,000 175,000 150,000 225,000 180,000,000 35,000,000 3,600,000 500,000 450,000 500,000 13,500,000 2,625,000 2,025,000 3,375,000 10,800,000 1,500,000 1,350,000 1,500,000 21,600,000 3,000,000 2,700,000 3,000,000 43,200,000 6,000,000 5,400,000 6,000,000 18,000,000 2,500,000 2,250,000 2,500,000 7,200,000 1,000,000 900,000 1,000,000 297,900,000 52,125,000 42,075,000 62,875,000 59,580,000 10,425,000 8,415,000 12,575,000 357,480,000 62,550,000 50,490,000 75,450,000 - - 9--59 Plots /acre 9--60 Total Plots 9--61 Price per plot 9--62 Land Cost 9--63 Registration Cost 9--64 Stamp Duty 9--65 9--66 9--67 9--68 9--69 9--70 At 2500 per plot at 7.5% of land cost Title Deed and at 7500.0 per Lease plot Survey Fees at 15000.0 per plot Water Charge at 30,000. per plot Infrastructure at 12500.00 per plot Clearance at 5000 per plot Total A 27,000,000 45,000,000 2 4 9--71 Interest on A 9--72 Land Total Payable 9--73 Lands Purchase Account. 9--51 Total Sales - 28,621 8,146,001,431 9--72 Trading centres plots 545,970,000 201 - 5 10,8 9—72 A Land Total payable 8,691,971,431 9.0.4 MARKET SEGMENTATION Our market is wide and we shall control 90% of the market for no other company has ventured into this system before. It is only the governments that do it. Our involvement will have a big impact .Our manoeuvres are as follows: The company accepts applications for the various types of land parcels for various uses from different applicants with varying tastes. Those for agricultural lands are allocated different sizes for economic reasons. Acreage per applicant ranges from 5 acres to 250 acres. Majority allocations being 10-30 acres. The allocation of land sizes to individuals will depend on many factors to be considered while allocating the agricultural lands. The director’s decision is final in all matters of agricultural land allocations. The company through a system of stores and credit savings society shall finance the operations on these smallholdings. Currently there are several land buying companies doing developments in Kenya but the concentration is real estates but at the end of the day the occupiers will feed. Many acres of farm land have been turned into total commercial use hence reduction in foods output. This has a noticeable effect especially around Thika and Kiambu towns, both near Nairobi where coffee growing farms have been turned into residential and commercial estates. This has affected the domestic and commercial farm outputs such that Nairobi no longer gets its full supply of vegetables from Kiambu. Our project has noted these trends and wants to develop the real estates to cover commercial and food developments. The project will market its foods to these affected towns hence a great potential for the project. The production will be constant as this will be irrigated farming. 202 10.0.0 STORES AND SUPPLIES SALES For purposes of the project the following area are covered by “stores and supplies” items:a) All materials and goods obtained from the stores. b) Any item other than land given or allotted to the farmers by the project or company c) Any funds received or receivable from the Sacco or center set by the project from giving any physical funds to the farmers or section of the project. d) Livestock or any physical material received by the farmers from any institution capable of giving or supplying such needed item or material. e) Any physical item or material received by the farmers from any of the company’s facilities. This definition holds true only up to the extent of initial allotment of livestock funds and any item signed for in the application form and whose payment is subject to the loan terms as signed by the farmers on the entry date of the farmer. Any other item, goods or materials or funds obtained by a farmer, outside this definition is a sale by that institution to the farmer and subject to the terms agreed on by the two parties. 10.0.1 Stores and Supplies Membership Each farmer shall be a member of the company’s stores and credit facility where all the farming requirements will be availed on credit. 203 The company therefore will therefore establish the supplies stores and the savings and credit for the supply of farming and other necessary items. These are the official sources of the items supplied;1) Stores shall supply, a) Building materials b) Farm inputs c) Petroleum products d) Timber e) Tools and machines f) Tractors g) Motor vehicles. 2) The Sacco shall provide, a) Operating funds 3) Company farms and research centers, a) Livestock b) Seedlings Table No.74 Stores and supplies Invoice data STORES AND SUPPLIES INVOICE Financial expenses. ( Operating Funds) Sub-total 1 Total 1 Total 2 Total 3 Total invoice 1 Buildings Dams/Water System Fencing Livestock Subtotal 2 2 Farm Implements Machinery and Tools Tractors Vehicles -3tons Vehicles +3tons Subtotal 3 3 Total 1+2+3 Interest on Store& Bank 37.5% Payable Store& Bank 1+2+3=6 on 6 Interest + 6 204 205 Table No.74A Farmers stores sales (finance expenditure to farm implements) FARMERS (STORES SALES DATA) 10--0 FARMERS (STORES SALES DATA) 10--1 Centre Name 10--2 Farmer Group 10A 10--3 Farmer Group 10B 10--4 Farmer Group 101 10--5 Farmer Group 102 10--6 Farmer Group 103 10--7 Farmer Group 104 Financial expenses. 10--13 10--14 39,000,000 16,250,000 17,875,000 14,050,000 11,100,000 6,700,000 10,450,000 15,900,000 12,720,000 5,300,000 5,830,000 27,480,000 21,984,000 9,160,000 10,076,000 10,325,000 11,357,500 9,250,000 10,175,000 10,000,000 10,010,000 8,225,000 9,047,500 6,910,000 7,601,000 5,425,000 5,967,500 7,235,000 7,958,500 9,925,000 10,917,500 7,225,000 7,947,500 15,487,500 55,285,000.00 10--12 48,750,000 13,740,000 29,920,000.00 10--11 Farm Implements 7,950,000 21,150,000.00 10--10 Livestock 8,375,000 14,685,000.00 10--9 Fencing 24,375,000 33,525,000.00 10--8 Buildings Dams/Water System 30,975,000 24,780,000 13,875,000 49,697,500.00 27,750,000 22,200,000 42,530,000.00 27,300,000 21,840,000 42,675,000.00 24,675,000 19,740,000 38,917,500.00 20,730,000 16,584,000 32,880,000.00 16,275,000 13,020,000 39,475,000.00 21,705,000 17,364,000 46,675,000.00 29,775,000 23,820,000 40,900,000.00 21,675,000 17,340,000 Farmer Group 105 13,650,000 Farmer Group 206 12,337,500 Farmer Group 207 10,365,000 Farmer Group 208 8,137,500 Farmer Group 209 10,852,500 Farmer Group 210 14,887,500 Farmer Group 311 10,837,500 206 10--15 Farmer Group 312 11,925,000 46,210,000.00 23,850,000 19,080,000 41,270,000.00 19,230,000 15,384,000 42,315,000.00 19,125,000 15,300,000 85,000,000.00 37,770,000 30,216,000 703,110,000 427,015,000 Table No.74B Farmers stores sales (Machines to Total Payable) 341,472,000 10--16 10--17 10--18 10--19 Farmer Group 313 Farmer Group 10A 10--3 Farmer Group 101 10--5 Farmer Group 102 10--6 Farmer Group 103 10--7 Farmer Group 104 10--8 Farmer Group 105 10--9 Farmer Group 206 10--10 Farmer Group 207 6,500,000 7,012,500 12,590,000 13,849,000 161,870,500 215,295,000 145,930,000 Machinery and Tools Tractors Vehicles 3tons Vehicles +3tons 21,125,000 32,500,000 22,750,000 - 11,200,000 24,000,000 18,000,000 Farmer Group 10B 10--4 7,051,000 18,885,000 TOTALS 10--2 6,410,000 10,000,000 Farmer Group 315 Centre Name 8,745,000 9,615,000 Farmer Group 314 10--1 8,500,000 Interest on Store& Bank 37.5% 96,056,250 Payable Store& Bank 352,206,250 44,460,000 163,020,000 35,160,000 6,890,000 10,600,000 7,420,000 - 128,920,000 58,279,500 11,908,000 13,422,500 18,320,000 20,650,000 12,824,000 11,000,000 213,691,500 77,901,563 14,455,000 285,639,063 66,158,438 12,025,000 11,830,000 18,500,000 18,200,000 12,950,000 4,500,000 242,580,938 64,725,000 12,740,000 237,325,000 53,940,938 10,692,500 16,450,000 - - 197,783,438 47,591,438 8,983,000 13,820,000 3,000,000 207 - 174,501,938 10--11 10--12 10--13 10--14 10--15 10--16 10--17 10--18 10--19 Farmer Group 208 37,352,813 7,052,500 10,850,000 - - 9,405,500 14,470,000 6,000,000 - 12,902,500 19,850,000 12,000,000 - 9,392,500 14,450,000 - - 10,335,000 15,900,000 3,000,000 - 8,333,000 12,820,000 - - 8,287,500 12,750,000 1,500,000 - 16,367,000 25,180,000 15,000,000 15,500,000 190,151,500 299,310,000 141,639,000 Farmer Group 209 136,960,313 50,424,563 Farmer Group 210 184,890,063 67,782,188 Farmer Group 311 248,534,688 48,662,813 Farmer Group 312 178,430,313 55,329,375 Farmer Group 313 202,874,375 45,042,375 Farmer Group 314 165,155,375 46,046,250 Farmer Group 315 168,836,250 95,571,375 TOTALS 208 990,484,875 350,428,375 3,631,777,875 11.0.0 PRODUCTS AND SERVICES The project will give many services and produce many products. During the first five years the main customers and clients will be the farmers themselves for most of the services. The products fall into the following categories; 1) Farm produce 2) Industrial products 3) Services a) Financial services by the HQ Sacco division b) Education and health services by social services 4) Lands 11.0.0 PROJECT AND COMPANY SERVICES Both the project and the company facilities will provide services to the farmers and the community in general. Institutions have been planned for such services and these institutions have been allotted both materials and funds to cover their activities. Table No.75 Product and Services by the company and Project. 11--0 11--1 SERVICES Centre Name Duties, goals and objectives Locatio n 11--2 11--3 11--4 11--5 11--6 11--7 11--8 11--9 11--10 11--11 PROJECT PRODUCTS AND SERVICES a) Lands b) TC. Plots c) Industrial Products d) Goods and supply stores e) Services i) Agriculture services ii) Education services iii) Medical services iv) Financial services Table No. 76 Market and Clients targeted 11--12 11--13 11--14 Target Customers a) Farmers b) Local communities around project areas 209 11--15 c) National markets 11--16 11--17 11--18 11--19 11--20 11--21 11--22 11--23 d) Export markets Market Control A) For Lands Trading Centres plots B) For plots C) For farm products D) For industrial products E) For services 210 Table No. 77 Sources of products and services 11-SOURCES OF PRODUCTS 24 AND SERVICES 11-Lands Purchase Account. 25 11-HEAD QUARTER 26 OPERATIONS ACCOUNT 11-Sacco 27 11-Project TC Business Loans 28 11-For lands and Financial 29 services HQ HQ HQ HQ 11.0.1 Services and products centres The services will be provided by the divisions through their departments Following table tabulate the services and products provided. 1) Support Services Division has the following main centers; a) Water department for water b) Civil works department for roads and maintenance works and sewage systems c) Civil works workshop for heavy repairs d) Buildings department e) Printing and transport departments. Table No. 78 Support Services from Support Division. 11--30 11--31 Support Services Project Civil Works (HQ) Construction of water, roads buildings and making required components for same 11--32 11--33 11--34 11--35 11--36 11--37 11--38 11--39 a) Water department Water usage Water control Water charging d Civil Works i) Roads Car Parks ii) Buildings 11--40 iii) Sewages 11--41 iii) Sewages 11--42 iv) Workshops - 211 11--43 Project Workshops - 11--44 11--45 Dams & water systems Water delivery systems FD/5 11--46 Storage Tanks FD/6 11--47 11--48 11--49 11--50 11--51 11--52 Irrigation System Project farming water Domestic System Project Domestic water Project TC Water Supply Water treatment Plants FD/7 11--53 Transportation Department FDF/11 11--54 11--55 b) Transport Project Printing Press 11--56 The various piping systems used to deliver water to the consumers from storage areas For water storage especially domestic and TC water For water treatment for domestic and TC water usage Transportation of materials to and from the project areas Production of newsletters , books and stationery c) Printing Press 11--57 Building 11--58 Project Buildings 11--59 11--60 Company buildings Farmers buildings 11--61 For Support services For construction and maintenance FDF/2 projects, company and beneficiaries HQ FDF/1 Buildings on project lands ( part of FDF/1 ) FDF/2 buildings on company farms FDF/3 buildings on farmers lands as per their request 11.0.2 Company farms Company farms shall be main source of livestock Table No. 79 Company Farms Division 11-62 Company farms 11-63 11-64 11-65 Company Farms HQ Crop Production Division Company Livestock Farm 212 Farms owned by the company ( Samuland Investments Co. for its operations as a farmer Lands allocated to Samuland Inv. Co. for required income generation 11-66 11-67 Bio Fuels Farms For Farm Products 11.0.3 Stores and Supplies Division This division has three main departments a) Stores department b) Industrial department 1) Agro- industries 2) Light industries Table No. 80 Stores and supplies Division 11--68 11--69 4) Stores and Supplies Stores and Supplies operations Account Farmers Stores H/O a) Dry foods stores 11--72 b) Farm inputs stores 11--73 c) Machines and tools 11--74 Drugs Stores management and control of all industries consumption 11--70 11--71 For all supplies needs FDS/3 - 11--75 Dry Foods stores FDS/1 - 11--76 Green Foods Stores FDS/2 - 11--77 Petroleum Products Stores - 11--78 Machinery & Tools Stores - 11--79 11--80 For Stores d) Light 11--81 industries Light Industries Depart 11--82 Mechanical Workshops 11--83 Wood Workshops 11--84 Timber sawmills All industries except those related to foods for human consumption 213 11--85 P.V.C.Pipes - 11--86 Project Power Supply - 11--87 For Light Industries 11--88 11--89 e) Agro Industries Agro-Industries 11--90 Bio fuel Industries FDF/10 11--91 All industries related to foods for human consumption Factory for diesel and othe fuel extractable from plants on the farms Dairy Produce - 11--92 Flour Mills - 11--93 Bakeries factories - 11--94 Slaughter Houses - 11--95 Canning Factories - 11--96 For Agro Industries 11--97 For Industries 11--98 For STORES AND SUPPLIES 11.0.4 Social Services Division This covers the; a) Education department b) Public health department 214 c) Recreations department Table No.81 Social Services Division 11--99 11--100 11--101 5) Social services Social Welfare operation acc Farmers welfare and company social responsibility matters Social Welfare Policy All matters related to social good Docum ent 11--102 11--103 Education a) Education department HQ 11--104 Community Hall GRD 11--105 11--106 Churches GRD 11--107 All areas of education; academic ,technical or morals Counselling and knowledge impacting centres For the welfare of the members d) Morals ( churches) Samuland Ed..Department - 11--108 11--109 11--110 11--111 Nursery Schools Primary Schools Secondary Schs Special Schs GRD GRD GRD GRD 11--112 Technical Sch. GRD 11--113 Advanced Learning Institutes HQ 11--114 Adult Education Depart HQ 11--115 for Education 11--116 Public Health HQ 11--117 11--118 11--119 b) Public health Community Health Hospitals HQ GRD GRD 11--120 Cemeteries GRD 11--121 For Health 11--122 11--123 11--124 Samuland Recreation HQ c) Recreation Sports Complex HQ GRD 215 Starting point of all learning ( academics) Continuation of academics learning Last stage of basic academic learning To cater for those in some form of disability such as slow learning, bride o deaf To teach trades especially those related to agro business applications All matters related to post-secondary education Education both academic and technical to improve the level of adult beneficiaries All matters relevant to public safety in health ( e.g. environmental cleanliness) First aid centres for minor treatments Main health provision facility for major cases from the first aid health centres For the final services to members and any other cases For social sporting activities Recreation and sporting area for the communities 11--125 For Recreation and Sports 11--126 SOCIAL SERVICES 11.0.5 Agriculture division Main services are; a) To provide agriculture extension services b) Marketing of produce c) Collection and parking of produce d) Research services e) Quality and quantity control f) Farming demonstrations g) Farm implements for hire by farmers Table No. 82 Agriculture Division 11--127 11--128 6) Agriculture services Agriculture Policy All matters of farming Docum ent 11--129 Agriculture Operation Account 11--130 Agriculture Department (Farming) 11--131 Agriculture Research Division 11--132 a) Research department 11--133 11--134 Environment matters Livestock Development & sales 11--135 b) Livestock development 11--136 11--137 Livestock Policy As part of Agri. Policy ) To take care of all farm matters To deal with matters of beneficiaries farming For research and demonstration purposes GRD/1-4 Centres for coordinating research on GRD/1- agriculture activities, seedlings and -4--1 environment issues Agr. Research on livestock development GRD/1- and sale to farmers. And A.I. services -4--3 Agr. Research on livestock development GRD/1- and sale to farmers. And A.I. services -4--2 Matters of livestock production Docum ent Livestock sourcing Docum ent 216 11--138 Livestock development Docum ent 11--139 Livestock sales Docum ent 11--140 Marketing and Quantity Control 11--141 11--142 Control of farm production especially GRD/1- external destination goods mad market -4--4 research c) Sales and marketing Internal markets Markets on the project areas GRD/1-4--5 11--143 National Markets 11--144 Export markets 11--145 Agriculture facilities land Markets outside the project areas but GRD/1- with national boundaries -4--6 Markets outside the country GRD/1-4--7 ASL Agriculture services facilities 217 11--146 Produce Centres ASL/1 Centres strategically placed in the farms to collect produce from farmers ASL/2 Place where collected produce is sorted and packed especially for external markets 11--147 d) Collection centres 11--148 Parking Houses 11--149 e) Park Houses 11--150 Quality Control Centre 11--151 Project Hire Implements 11--152 for Agriculture Services 11--153 Total Project and Company Quality control centre for all production, GRD/1- farm or industrial -4--3 Farm implements services to farmers FDF/12 especially to small farmers and specialised equipment’ 11--154 FARMERS 11--155 Total external funds - 11.0.6 Services and Product Financing The financing of the operations is done by financing the various divisions as per the planned activities. The funding is based on the external funds for start off and afterwards by internal financing mostly in the expansion and building of structures. Table No. 83 Production Financing Table No. 83 Production Financing 6-13 6-14 6-15 EXTERNAL FUNDS Centre Name External Internal Project Lands Purchase Account. 6-- PROJECT HQ Operations 16 6-- Head quarter Susidiaries 17 account 6-- Support Services Account 18 218 10,800,000,00 0 - 10,800,000,00 0 1,500,000,000 - 1,500,000,000 3,000,000,000 - 3,000,000,000 3,925,000,000 - 3,925,000,000 6-19 6-20 6-21 6-22 6-23 6-24 Company Farms Account Stores and Supplies Account Social Services Account Agricultures Services Account Farmers Allocation Account EXTERNAL FINANCING 219 1,250,000,000 - 1,250,000,000 1,500,000,000 - 1,500,000,000 500,000,000 - 500,000,000 400,000,000 - 400,000,000 2,750,000,000 - 2,750,000,000 25,625,000,00 0 - 25,625,000,00 0 6-25 6-26 6-27 6-28 6-29 6-30 6-31 6-32 6-33 6-34 6-35 6-36 INTERNAL FUNDS Centre Name External Internal Project - - - - 500,000,000 500,000,000 Lands Purchase Account. PROJECT HQ Operations Head quarter Susidiaries account Support Services Account Company Farms Account - 1,250,000,000 1,250,000,000 - 2,825,000,000 2,825,000,000 - Stores and Supplies Account Social Services Account 725,000,000 725,000,000 - 2,975,000,000 2,975,000,000 - 3,000,000,000 3,000,000,000 Agricultures Services Account Farmers Allocation Account INTERNAL FINANCING 6-- TOTAL 37 ALLOCATIONS - 600,000,000 600,000,000 - - 11,875,000,00 11,875,000,00 0 0 25,625,000,00 11,875,000,00 37,500,000,00 0 0 0 220 Table No.84 Services and Products Financing Funds Application analysis (DIVISIONS) 6--51 6--52 EXTERNAL FUNDS Centre Name 6--53 Lands Purchase Account. PROJECT HQ Operations Head quarter Susidiaries account Support Services Account Company Farms Account Stores and Supplies Account Social Services Account Agricultures Services Account Farmers Allocation Account EXTERNAL FINANCING 6--54 6--55 6--56 6--57 6--58 6--59 6--60 6--61 6--62 Lands Overheads Fixed Devlopmnts Movable Assets 10,800,000,000 - - - - 909,500,000 154,000,000 51,250,000 - 33,500,000 - - 80,750,000 3,402,000,000 342,250,000 100,000,000 3,925,000,000 - 79,500,000 265,500,000 127,250,000 777,750,000 1,250,000,000 - 151,500,000 140,000,000 300,000,000 908,500,000 1,500,000,000 - 63,750,000 200,000,000 209,500,000 26,750,000 500,000,000 - 61,500,000 118,500,000 107,750,000 112,250,000 400,000,000 - - - - 2,750,000,000 2,750,000,000 10,800,000,000 1,380,000,000 221 Operations funds Total Project - 10,800,000,000 385,250,000 1,500,000,000 27,000,000 2,939,500,000 3,000,000,000 4,280,000,000 1,165,000,000 8,000,000,000 25,625,000,000 Table No. 85 Funds Allocated to the services Providing Departments (DEPARTMENTS) 11--0 FUNDS ALLOCATED SERVICES AND MATERIAL PROVIDERS 11--1 Centre Name 11-- SOURCES OF 24 PRODUCTS AND SERVICES 11-- Lands Purchase 25 Account. 11-- HEAD QUARTER 26 OPERATIONS ACCOUNT 11-- Sacco 27 11-- Project TC Business 28 Loans 11-- For lands and 29 Financial services Lands Overheads Fixed Devlopmnts Movable Assets Operations funds Total Project 10,800,000,0 00 - - - - 10,800,000,000 - 852,750,000 154,000,000 51,250,000 442,000,000 1,500,000,000 2,439,700,000 - 33,300,000 - 27,000,000 2,500,000,000 500,000,000 - - - - 10,800,000,0 00 886,050,000 154,000,000 78,250,000 500,000,000 3,381,700,000 222 15,300,000,000 11-30 11-31 11-32 11-33 11-34 11-35 11-36 11-37 11-38 11-39 11-40 11-41 11-42 11-43 11-44 Support Services Project Civi Works (HQ) a) Water department Water usage 165,900,000 - 36,350,000 18,000,000 54,750,000 275,000,000 - Water control Water charging d Civil Works 47,350,000 i) Roads Car Parks - 2,150,000 75,000,000 40,500,000 - - - - 165,000,000 - - ii) Buildings - iii) Sewages - iii) Sewages - - - iv) Workshops Project Workshops - 44,300,000 13,450,000 Dams & water systems - 7,500,000 59,750,000 125,000,000 70,750,000 - 40,250,000 3,225,500,00 0 11-- Water delivery 45 systems 63,500,000 3,400,000,000 223 11-46 11-47 11-48 11-49 11-50 11-51 11-52 11-53 11-54 11-55 11-56 11-57 11-58 11-59 11-60 11-61 Storage Tanks Irrigation System 6,000,000 - - 27,500,000 16,500,000 50,000,000 Project farming water Domestic System 5,500,000 - Project Domestic water Project TC Water Supply Water treatment Plants Transportation Department b) Tansport Project Printing Press 250,000 35,000,000 9,250,000 50,000,000 6,500,000 - - 23,500,000 10,000,000 40,000,000 58,600,000 - 46,900,000 4,500,000 40,000,000 150,000,000 13,750,000 - - - 11,250,000 25,000,000 c) Printing Press Building 109,250,000 19,000,000 20,000,000 36,750,000 185,000,000 Project Buildings Company buildings Farmers buildings - - For Support services 527,900,000 - 158,350,000 3,436,500,00 0 224 342,250,000 4,465,000,000 11-- Company farms 62 11-- Company Farms 63 11-- Crop Production 64 Division 11-- Company Livestock 65 Farm 11-- Bio Fuels Farms 66 11-- For Farm Products 67 11-- 4) Stores and 68 Supplies 11-- Stores and Supplies 69 operations Account 11-- Farmers Stores H/O 70 11-a) Dry 71 foods stores 11-b) Farm 72 inputs stores 11-c) 73 Machines and tools 11-- Drugs Stores 74 11-- Dry Foods stores 75 - 142,750,000 61,250,000 113,000,000 33,000,000 - 300,000 72,000,000 30,500,000 - 3,250,000 34,500,000 45,750,000 - - 14,000,000 19,000,000 - 64,800,000 233,500,000 128,250,000 350,000,000 222,200,000 325,000,000 36,500,000 120,000,000 12,000,000 45,000,000 413,450,000 840,000,000 - 59,450,000 250,000 - 47,250,000 55,000,000 124,000,000 300,000 60,000,000 498,750,000 725,000,000 3,750,000 - 250,000 1,000,000 - 7,750,000 - 5,000,000 14,750,000 225 22,500,000 11-- Green Foods Stores 76 11-- Petroleum Products 77 Stores 11-- Machinery & Tools 78 Stores 11-- For Stores 79 11-d) Light 80 industries 11-- Light Industries 81 Depart 11-- Mechanical 82 Workshops 11-- Wood Workshops 83 11-- Timber sawmills 84 11-- P.V.C.Pipes 85 11-- Project Power Supply 86 11-- For Light Industries 87 11-e) Agro 88 Industries 11-- Agro-Industries 89 11-- Bio fuel Industries 90 11,000,000 - 4,250,000 2,250,000 1,950,000 3,700,000 15,000,000 13,300,000 11,300,000 8,750,000 17,500,000 6,850,000 27,500,000 11,650,000 - 45,000,000 547,050,000 - 121,950,000 82,500,000 151,000,000 902,500,000 8,850,000 - 20,150,000 2,500,000 8,500,000 - 10,600,000 12,500,000 - 4,250,000 10,000,000 40,000,000 14,400,000 37,500,000 8,250,000 22,500,000 9,500,000 1,750,000 4,750,000 19,000,000 35,000,000 9,250,000 - 4,250,000 11,500,000 25,000,000 27,950,000 - - 16,050,000 56,000,000 100,000,000 78,200,000 - 21,900,000 42,400,000 117,500,000 260,000,000 7,050,000 - 6,700,000 - 6,250,000 - - - 226 20,000,000 - - 11-91 11-92 11-93 11-94 11-95 11-96 Dairy Produce 11-97 For Industries 9,500,000 - 8,750,000 16,750,000 - 1,000,000 6,500,000 750,000 1,100,000 1,000,000 Flour Mills 35,000,000 5,000,000 Bakeries factories 12,500,000 7,150,000 Slaughter Houses 10,000,000 10,500,000 - 2,000,000 - - - - - - 7,450,000 12,850,000 30,500,000 - 29,350,000 55,250,000 148,000,000 - 151,300,000 137,750,000 299,000,000 12,500,000 Canning Factories For Agro Industries 11-- For STORES AND 98 SUPPLIES 90,000,000 117,400,000 350,000,000 664,450,000 11-- 5) Social services 99 11-- Social Welfare 100 operation acc 11-- Social Welfare Policy 101 11-- Education 102 11-- a) Education 103 department 11-- Community Hall 104 39,200,000 1,252,500,000 23,750,000 1,500,000 31,000,000 31,250,000 87,500,000 - 5,250,000 1,750,000 227 5,750,000 7,250,000 20,000,000 11-105 11-106 11-107 11-108 11-109 11-110 11-111 11-112 11-113 11-114 11-115 Churches 3,500,000 - d) Morals ( churches) Samuland Ed.Department Nursery Schools 8,000,000 3,500,000 9,250,000 40,750,000 - - - 5,750,000 4,750,000 15,000,000 10,000,000 - 14,000,000 31,000,000 Secondary Schs 55,000,000 16,500,000 1,250,000 36,500,000 45,750,000 Special Schs 100,000,000 13,250,000 500,000 19,000,000 12,250,000 Technical Sch. 45,000,000 16,000,000 - 11-- Public Health 116 11-b) Public 117 health 11-- Community Health 118 11-- Hospitals 119 50,000,000 4,500,000 Primary Schools Advanced Learning Institutes Adult Education Depart for Education 15,000,000 33,500,000 25,500,000 75,000,000 12,500,000 - - 2,500,000 15,000,000 4,750,000 - 1,000,000 3,750,000 500,000 10,000,000 95,500,000 - 45,250,000 126,250,000 133,000,000 400,000,000 9,500,000 - 1,500,000 2,500,000 1,500,000 15,000,000 7,750,000 250,000 5,500,000 1,500,000 15,000,000 24,500,000 7,000,000 228 27,750,000 40,750,000 100,000,000 11-120 11-121 Cementries - 1,500,000 - - 8,750,000 37,250,000 43,750,000 - - 1,250,000 1,500,000 For Health 11-- Samuland Recreation 122 HQ 11-c) 123 Recreation 11-- Sports Complex 124 11-- For Recreation and 125 Sports 11-- SOCIAL 126 SERVICES 11-127 11-128 11-129 11-130 11-131 11-132 11-133 3,500,000 - 5,000,000 45,250,000 135,000,000 4,750,000 7,500,000 1,500,000 - - 3,500,000 - - - 4,750,000 1,500,000 - 55,500,000 199,250,000 209,500,000 5,000,000 6,250,000 12,500,000 170,750,000 635,000,000 6) Agriculture services Agriculture Policy - Agriculture Operation Account Agriculture Department (Farming) Agriculture Research Division a) Research department Environment matters 39,500,000 - 37,750,000 79,750,000 18,000,000 23,500,000 2,000,000 - - 13,750,000 16,250,000 175,000,000 7,000,000 32,500,000 7,500,000 37,500,000 - 229 11-- Livestock 134 Development & sales 11-b) 135 Livestock development 11-- Livestock Policy As 136 part of Agri. Policy ) 11-- Livestock sourcing 137 11-- Livestock 138 development 11-- Livestock sales 139 11-- Marketing and 140 Quantity Control 11-c) 141 Sales and marketing 11-- Internal markets 142 11-- National Markets 143 11-- Export markets 144 11-- Agriculture facilities 145 land 11-- Produce Centres 146 11-d) 147 Collection centres 11-- Parking Houses 148 11-e) 149 Park Houses 8,000,000 - 13,000,000 29,000,000 50,000,000 - 7,750,000 2,750,000 - 2,000,000 12,500,000 3,500,000 - - 1,500,000 5,000,000 8,000,000 - 10,000,000 4,500,000 22,500,000 - 230 11-- Quality Control 150 Centre 2,500,000 - 231 - 2,500,000 5,000,000 11-- Project Hire 151 Implements 11-- for Agriculture 152 Services 11-- Total Project and 153 Company 11-154 11-155 8,000,000 - - 500,000 34,000,000 - 64,000,000 119,000,000 107,750,000 1,380,000,000 4,280,000,00 0 1,165,000,00 0 42,500,000 91,750,000 382,500,000 5,250,000,000 10,800,000,0 00 FARMERS 22,875,000,000 811,817,000 - - 983,782,000 954,401,000 Total external funds 2,750,000,000 6,061,817,000 10,800,000,0 00 1,380,000,000 5,263,782,00 0 232 2,119,401,00 0 25,625,000,000 Table No. 66 Company Financial Investments (FDR) 11--156 SAMULAND PROJECT 11--157 FDR INVESTMENTS 11--158 Investments interests Some funds not on immediate application shall be (Banks) deposited in a bank to: 11--159 a) Be a Fixed deposit investment ( FDR) 11--160 b) Generate some interest 11--161 c) Be a cash security for our operations in case of need or emergency 11--162 d) Twelve month cycles 11--163 RESERVES ( FDR) 1 month 2 month 11--164 Start -up Cash (Sacco) 2,500,000,000 11--165 Repairs 500,000,000 125,000,000 11--166 Salaries & wages 750,000,000 300,000,000 11--167 Capital For TC Operators 750,000,000 125,000,000 11--168 farm inputs 1,250,000,000 450,000,000 11--169 Livestock 450,000,000 100,000,000 11--170 Farmers operating funds 1,250,000,000 500,000,000 11--171 Buildings 500,000,000 250,000,000 11--172 M/v + 3 tons 350,000,000 50,000,000 11--173 Operation tools 350,000,000 100,000,000 233 3 month 4 month 5 month 6 month 750,000,000 500,000,000 125,000,000 125,000,000 200,000,000 125,000,000 500,000,000 125,000,000 300,000,000 250,000,000 100,000,000 125,000,000 250,000,000 250,000,000 250,000,000 100,000,000 100,000,000 100,000,000 100,000,000 11--174 Fencing Roads construction expenses 11--176 Dams and water system 125,000,000 50,000,000 75,000,000 475,000,000 - 250,000,000 225,000,000 2,000,000,000 1,200,000,00 0 500,000,000 75,000,000 1,250,000,000 1,250,000,00 0 12,500,000,00 0 5,000,000,00 0 11--175 11--177 11--178 Lands Sub Total Investments (FDR) 11--179 RATES 11--180 1 month rate pa 11--181 11--185 3,500,000,00 0 - - 2,000,000,00 0 11,458,333 11,458,333 11,458,333 11,458,33 3 11,458,33 3 11,458,333 Interest earned 2.75 % 3 month rate 3.25 % pa 11--182 6 month rate 4.75% pa 11--183 12 month rate 6.75% pa 11--184 - 5,000,000,000 137,500,00 0 3,500,000,000 113,750,00 0 2,000,000,000 95,000,000 2,000,000,000 135,000,00 0 12,500,000,00 0 481,250,00 0 11,458,333 11,458,333 39,895,833 11,458,33 3 11,458,33 3 87,395,833 40,104,167 40,104,167 40,104,167 40,104,167 40,104,16 7 40,104,16 7 40,104,167 28,437,500 28,437,500 47,500,000 Total Monthly 234 11--186 Say monthly 40,000,000 11-163 11-164 11-165 11-166 11-167 11-168 11-169 11-170 11-171 11-172 11-173 11-174 11-175 11-176 RESERVES ( FDR) Start -up Cash (Sacco) Repairs 7 month 40,000,000 40,000,000 8 month 9 month 40,000,000 10 month 40,000,00 0 11 month 40,000,00 0 40,000,000 12 month Total 2,500,000,000 750,000,000 2,500,000,000 500,000,000 125,000,000 500,000,000 750,000,000 125,000,000 750,000,000 Salaries & wages Capital For TC Operators farm inputs 750,000,000 750,000,000 1,250,000,000 250,000,000 1,250,000,000 450,000,000 125,000,000 450,000,000 1,250,000,000 250,000,000 1,250,000,000 Livestock Farmers operating funds Buildings 500,000,000 500,000,000 M/v + 3 tons 350,000,000 100,000,000 350,000,000 350,000,000 50,000,000 350,000,000 Operation tools Fencing Roads construction expenses Dams and water system 125,000,000 125,000,000 475,000,000 475,000,000 2,000,000,000 225,000,000 235 2,000,000,000 11-Lands 177 11-Sub Total 178 Investments (FDR) 11--179 11--180 RATES 1 month rate pa 1,250,000,000 12,500,000,00 0 1,250,000,000 - - - - - 2,000,000,00 0 12,500,000,00 0 5,000,000,000 11,458,333 11,458,333 11,458,333 11,458,33 3 11,458,33 3 11,458,333 137,500,000 3,500,000,000 28,437,500 28,437,500 113,750,000 2,000,000,000 47,500,000 95,000,000 2,000,000,000 135,000,000 135,000,000 2.75 % 11--181 3 month rate 3.25 % pa 11--182 6 month rate 4.75% pa 11--183 12 month rate 6.75% pa 11--184 Total 12,500,000,00 0 11--185 11--186 11,458,333 11,458,333 39,895,833 11,458,33 3 11,458,33 3 222,395,833 481,250,000 40,104,167 40,104,167 40,104,167 40,104,16 7 40,104,16 7 40,104,167 40,104,167 40,000,000 40,000,000 40,000,000 40,000,00 0 40,000,00 0 40,000,000 40,000,000 Monthly Say monthly 236 11.0.7 Company financial Investments (FDR) On assumption that all the funds will be given to the project lump sum, the company will deposit some funds in an interest bearing account. Several denominations of deposits will be opened with different maturity dates. Table No. 87 FDR funds allocated 11--163 RESERVES ( FDR) Start -up Cash (Sacco) 11--165 Repairs Kshs US $ 2,500,000,000 24,390,244 500,000,000 4,878,049 750,000,000 7,317,073 750,000,000 7,317,073 1,250,000,000 12,195,122 450,000,000 4,390,244 1,250,000,000 12,195,122 500,000,000 4,878,049 350,000,000 3,414,634 350,000,000 3,414,634 125,000,000 1,219,512 475,000,000 4,634,146 2,000,000,000 19,512,195 1,250,000,000 12,500,000,000 12,195,122 11--164 11--166 Salaries & wages 11--167 Capital For TC Operators 11--168 farm inputs 11--169 Livestock 11--170 Farmers operating funds 11--171 Buildings 11--172 11--173 11--174 M/v + 3 tons Operation tools Fencing 11--175 Roads construction expenses 11--176 Dams and water system 11--177 Lands 11--178 Sub Total Investments (FDR) 121,951,220 - 11--179 RATES - 11--180 1 month rate 2.75 % pa 11--181 3 month rate 3.25 % pa 11--182 6 month rate 4.75% pa 11--183 12 month rate 6.75% pa 5,000,000,000 48,780,488 3,500,000,000 34,146,341 2,000,000,000 19,512,195 2,000,000,000 19,512,195 237 11--184 Total 12,500,000,000 121,951,220 12.0.0 CASH FLOW PROJECTIONS The project and company cash flow is based on the planned operations receipts and payments. Receipts will be generated from the farming, industrial and services activities. Further funds will be generated from the loans repayments by farmers. Project receipts are in the following categories: a) Farming sources b) Services provided c) Industrial production d) Miscellaneous sources Project expenditure is on the following areas: a) Land purchase for expansions b) Production costs c) Overhead expenditure d) Mandatory payments e) Creating reserves and savings Project Accounts will comprise of the following 1) Each of the various departments will compile its own financial accounts and a consolidated account for the division shall be drawn. 2) The division accounts will thereafter consolidate to: a) Project accounts b) Company accounts 12.0.1 SAMULAND INVESTMENTS COMPANY The cash flow that is drawn is for the whole operation system both company and the project as the loan repayment shall be made by the company. It is a combination of all activities in the project other than for the farmers and traders. The farmers and the company are linked in two items; a) Loan repayments transactions b) Withholding account 238 (Withholding account is an account created by the project to serve some purposes; 1) It is a compulsory deduction made on the farmers proceeds at 25% of the proceeds and saved in a project account. This account will be a safety margin for repayments by farmers loans in case of a shortfall in instalments contribution 2) It will be the savings goal as planned by the project 3) These funds belong to the farmers or the participants in any income generating activity in the project area. 4) On project exit, each participant will have his share of the contribution. 239 TABLE No. 68 PROJECTED CASH FLOW (INFLOWS) Kshs version 12--0 DETAILED CASH FLOW PROJECTION S 12--1 12--2 IN FLOW 12--3 External Loans Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 25,625,000,000. 00 - - - - - - 6,800,000.00 48,750,000.00 89,450,000.00 125,000,000.00 135,000,000.00 145,000,000.00 150,000,000.00 18,000,000.00 40,500,000.00 74,000,000.00 177,500,000.00 200,000,000.00 200,000,000.00 275,000,000.00 950,000.00 4,475,000.00 8,825,000.00 10,000,000.00 10,000,000.00 12,500,000.00 12,500,000.00 3,625,000.00 7,000,000.00 4,575,000.00 14,000,000.00 20,000,000.00 32,750,000.00 37,750,000.00 12--4 FARM PRODUCTION S 12--5 Crop sales 12--6 Livestock 12--7 Seedlings 12--8 12--9 12--10 Plots Miscellaneous farm operations 29,375,000.00 100,725,000.00 176,850,000.00 326,500,000.00 365,000,000.00 390,250,000.00 475,250,000.00 Stores - - 240 12--11 12--12 12--13 12--14 12--15 Machines and tools Petroleum products Agro vet products Building Materials Motor vehicles 35,000,000.00 50,000,000.00 25,000,000.00 60,000,000.00 100,000,000.00 105,000,000.00 107,500,000.00 110,000,000.00 112,500,000.00 22,500,000.00 52,500,000.00 80,000,000.00 92,000,000.00 82,500,000.00 92,500,000.00 85,000,000.00 95,000,000.00 87,500,000.00 95,000,000.00 90,000,000.00 72,500,000.00 115,000,000.00 135,000,000.00 145,000,000.00 150,000,000.00 155,000,000.00 157,500,000.00 22,250,000.00 Farm machines and Implements 12--17 Dry foods 90,000,000.00 59,500,000.00 113,750,000.00 87,000,000.00 75,000,000.00 57,500,000.00 57,500,000.00 12--16 12--18 12--19 48,000,000.00 107,000,000.00 130,000,000.00 132,500,000.00 135,000,000.00 137,500,000.00 140,000,000.00 32,500,000.00 60,000,000.00 75,000,000.00 80,000,000.00 85,000,000.00 92,500,000.00 95,000,000.00 35,000,000.00 65,000,000.00 125,000,000.00 125,000,000.00 125,000,000.00 127,500,000.00 128,500,000.00 Farm inputs Stores Sales 292,750,000.00 569,000,000.00 848,750,000.00 849,000,000.00 855,000,000.00 862,500,000.00 876,000,000.00 12--20 Industrial Products 12--21 Milk products 12--22 - - - 3,875,000.00 29,750,000.00 65,500,000.00 75,000,000.00 85,000,000.00 87,375,000.00 90,000,000.00 5,750,000.00 46,250,000.00 86,250,000.00 90,000,000.00 92,500,000.00 95,000,000.00 97,500,000.00 - 1,750,000.00 11,000,000.00 12,500,000.00 15,000,000.00 17,500,000.00 20,000,000.00 - 15,250,000.00 33,500,000.00 37,500,000.00 50,000,000.00 65,000,000.00 65,000,000.00 Flour Mills 12--23 Confectionaries 12--24 Electricity 241 12--25 Building and construction materials 12--26 Water PVC pipes 12--27 Industrial Products 12--28 12--29 12--30 12--31 12--32 12--33 12--34 15,000,000.00 41,500,000.00 64,000,000.00 65,000,000.00 74,500,000.00 72,500,000.00 85,000,000.00 - - 87,500,000.00 95,000,000.00 97,500,000.00 102,500,000.00 105,000,000.00 24,625,000.00 134,500,000.00 347,750,000.00 375,000,000.00 414,500,000.00 439,875,000.00 462,500,000.00 Services - - - 750,000.00 4,750,000.00 15,000,000.00 6,000,000.00 47,000,000.00 2,000,000.00 85,000,000.00 915,000,000.00 925,000,000.00 925,000,000.00 925,000,000.00 927,500,000.00 Water charges Implements Hire Handling charges Medical services Education Services Crop cess Transport charges 12--36 Financial services 12--37 Services 25,000,000.00 37,500,000.00 42,500,000.00 47,500,000.00 98,000,000.00 100,000,000.00 125,000,000.00 147,500,000.00 152,000,000.00 1,500,000.00 3,500,000.00 20,000,000.00 35,000,000.00 47,500,000.00 150,000,000.00 162,500,000.00 4,000,000.00 15,000,000.00 30,000,000.00 35,000,000.00 37,500,000.00 2,500,000.00 10,000,000.00 25,000,000.00 37,500,000.00 75,000,000.00 175,000,000.00 220,000,000.00 2,250,000.00 11,750,000.00 28,500,000.00 25,000,000.00 25,000,000.00 27,500,000.00 27,500,000.00 4,350,000.00 29,000,000.00 49,150,000.00 50,000,000.00 50,000,000.00 62,000,000.00 62,000,000.00 23,350,000.00 206,000,000.00 1,180,650,000. 00 1,232,500,000. 00 1,322,500,000. 00 1,569,500,000. 00 1,641,500,000. 00 40,000,000.00 42,500,000.00 12--35 12--38 Misc. sources - - 242 12--39 12--40 12--41 12--42 12--43 12--44 Loan Repayments (Farmers) Directors contributions Holding Accounts Interest received (FDR) Miscellaneous sources TOTAL RECEIPTS 11,649,796.39 189,667,355.28 369,951,067.64 521,815,657.87 542,147,792.30 542,147,792.30 542,147,792.30 13,500,000.00 7,500,000.00 25,000,000.00 50,000,000.00 13,500,000.00 75,000,000.00 45,000,000.00 25,000,000.00 15,000,000.00 75,000,000.00 100,000,000.00 125,000,000.00 150,000,000.00 175,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 530,149,796.39 727,167,355.28 938,451,067.64 1,176,815,657. 87 1,192,147,792. 30 1,197,147,792. 30 1,212,147,792. 30 26,525,249,796. 39 3,959,815,657. 87 4,149,147,792. 30 4,459,272,792. 30 4,667,397,792. 30 1,737,392,355. 28 3,492,451,067. 64 243 Graphic No. 15 Operations receipts Graphic No 15 Operations receipts 4,500,000,000 4,000,000,000 3,500,000,000 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Farming Operations and plots sales Stores Sales Industrial Products Services Misc sources 244 TABLE No. 89 PROJECTED CASH FLOW (OUTFLOWS) 12--45 Expenditure 12--46 farm inputs Stores purchases 12--48 Repairs - - - - - - - 25,000,000.00 45,000,000.00 60,000,000.00 50,000,000.00 52,500,000.00 55,000,000.00 60,000,000.00 485,000,000.00 595,000,000.00 500,000,000.00 250,000,000.00 300,000,000.00 175,000,000.00 127,500,000.00 1,155,000.00 8,450,000.00 24,615,000.00 9,330,000.00 3,191,142.58 6,267,907.98 24,500,000.00 15,000,000.00 17,500,000.00 20,000,000.00 35,000,000.00 37,500,000.00 40,000,000.00 42,500,000.00 2,150,000.00 35,000,000.00 142,850,000.00 200,000,000.00 300,000,000.00 350,000,000.00 475,000,000.00 1,750,000.00 3,500,000.00 6,000,000.00 6,378,334.27 4,000,000.00 4,500,000.00 5,350,000.00 47,500,000.00 75,000,000.00 95,000,000.00 125,000,000.00 125,000,000.00 125,000,000.00 142,500,000.00 12,500,000.00 15,000,000.00 22,500,000.00 32,500,000.00 35,000,000.00 35,000,000.00 35,000,000.00 4,500,000,000.0 0 - - 5,090,055,000.0 0 794,450,000.00 870,965,000.00 708,208,334.27 857,191,142.58 790,767,907.98 912,350,000.00 - - - 12--47 12--49 Transport & fuels 12--50 Raw Materials 12--51 Expendable material 12--52 Wages 12--53 Salaries (supervisory) 12--54 Lands for sale 12--55 12--56 Production Costs Overheads 245 12--57 Telephones Management salaries 12--59 Miscellaneous overheads 12--60 Legal fees 2,500,000.00 4,500,000.00 6,500,000.00 8,000,000.00 9,500,000.00 9,750,000.00 10,000,000.00 12,500,000.00 15,000,000.00 17,500,000.00 65,000,000.00 97,500,000.00 102,500,000.00 105,000,000.00 1,250,000.00 6,325,000.00 4,250,000.00 4,500,000.00 3,500,000.00 2,000,000.00 5,000,000.00 1,250,000.00 250,000.00 250,000.00 1,000,000.00 1,000,000.00 1,250,000.00 2,500,000.00 50,000.00 575,000.00 300,000.00 200,000.00 225,000.00 225,000.00 12,500,000.00 7,750,000.00 3,000,000.00 30,000,000.00 35,000,000.00 600,000.00 750,000.00 625,000,000.00 - - - - - - 48,000,000.00 - 2,000,000.00 2,000,000.00 - 25,000,000.00 - 300,000,000.00 - - - - - - 3,000,000.00 3,500,000.00 4,000,000.00 4,250,000.00 4,500,000.00 5,000,000.00 7,500,000.00 10,000,000.00 15,000,000.00 17,500,000.00 20,000,000.00 22,500,000.00 22,500,000.00 22,750,000.00 2,200,000.00 3,200,000.00 3,700,000.00 4,700,000.00 5,500,000.00 6,500,000.00 8,500,000.00 7,500,000.00 12,500,000.00 15,000,000.00 37,500,000.00 40,000,000.00 45,000,000.00 57,500,000.00 215,000,000.00 87,500,000.00 87,500,000.00 50,000,000.00 75,000,000.00 - - 682,500,000.00 25,000,000.00 - 35,000,000.00 - - - 2,500,000.00 - - - - - - 12--58 12--61 Preliminary expenses 12--62 Conveyance 12--63 Financial costs 12--64 Planning & consultations 12--65 Commissions Agents 12--66 Accommodation 12--67 Travelling expenses 12--68 Stationery 12--69 Insurances 12--70 Survey work 12--71 Stamp Duty 12--72 Titles 246 12--73 Overheads Mandatory costs 12--75 External loan 1,931,950,000.0 0 181,575,000.00 161,775,000.00 261,500,000.00 290,700,000.00 221,575,000.00 215,475,000.00 - - - - - - - - - - 1,909,869,401. 28 1,909,869,401. 28 1,909,869,401. 28 1,909,869,401. 28 1,000,000,000. 00 800,000,000.00 725,000,000.00 945,000,000.00 680,000,000.00 12--74 12--76 12--77 Kenya Revenue - Mandatory Costs - - 1,000,000,000. 00 2,709,869,401. 28 2,634,869,401. 28 2,854,869,401. 28 2,589,869,401. 28 - - - - - - - 5,000,000,000.0 0 - - - - - - 450,000,000.00 370,000,000.00 805,000,000.00 65,000,000.00 105,000,000.00 205,000,000.00 145,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 7,500,000.00 7,500,000.00 7,500,000.00 7,500,000.00 90,500,000.00 35,000,000.00 97,000,000.00 35,000,000.00 25,000,000.00 50,000,000.00 100,000,000.00 17,500,000.00 50,000,000.00 17,500,000.00 11,000,000.00 5,000,000.00 7,500,000.00 7,500,000.00 25,000,000.00 25,000,000.00 20,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 50,000,000.00 12--78 Fixed developments 12--79 Land costs (SIC) 12--80 Dams & water system 12--81 Fencing 12--82 Buildings 12--83 Irrigation works 12--84 Roads construction 247 12--85 Fixed assets Movable Assets 12--87 Livestock 5,588,000,000.0 0 485,000,000.00 944,500,000.00 128,500,000.00 152,500,000.00 280,000,000.00 310,000,000.00 - - - - - - - 8,500,000.00 12,500,000.00 14,000,000.00 42,000,000.00 35,000,000.00 30,000,000.00 5,000,000.00 34,500,000.00 6,000,000.00 5,000,000.00 12,500,000.00 10,000,000.00 15,000,000.00 22,500,000.00 15,000,000.00 15,000,000.00 21,500,000.00 5,000,000.00 20,000,000.00 30,500,000.00 25,000,000.00 3,500,000.00 7,500,000.00 5,000,000.00 5,000,000.00 7,500,000.00 8,500,000.00 9,500,000.00 19,000,000.00 12,500,000.00 25,000,000.00 12,500,000.00 12,500,000.00 15,000,000.00 12,500,000.00 37,500,000.00 32,000,000.00 79,500,000.00 5,000,000.00 25,000,000.00 35,000,000.00 25,000,000.00 25,500,000.00 17,500,000.00 32,000,000.00 12,000,000.00 7,500,000.00 28,000,000.00 15,000,000.00 9,000,000.00 5,500,000.00 15,500,000.00 15,000,000.00 5,000,000.00 7,500,000.00 7,500,000.00 152,500,000.00 108,500,000.00 197,500,000.00 109,000,000.00 122,500,000.00 169,500,000.00 122,000,000.00 - - - - - - - 24,500,000.00 47,000,000.00 91,000,000.00 10,000,000.00 15,000,000.00 60,000,000.00 62,500,000.00 12--86 12--88 Heavy Plants 12--89 Operation tools 12--90 Furniture & Fittings 12--91 Motor Vehicles -3 tons 12--92 M/v + 3 tons 12--93 12--94 12--95 Tractors Implements Movable Assets 12--96 Current accounts ( Project Objectives) 12--97 Savings account 248 12--98 FDR Contingency reserves 12--100 Total Savings 12,500,000,000. 00 - - 15,000,000.00 20,000,000.00 30,000,000.00 300,000,000.00 45,000,000.00 50,000,000.00 205,000,000.00 15,000,000.00 50,000,000.00 45,000,000.00 150,000,000.00 12,569,500,000. 00 97,000,000.00 296,000,000.00 40,000,000.00 85,000,000.00 135,000,000.00 512,500,000.00 25,332,005,000. 00 1,666,525,000. 00 3,470,740,000. 00 3,957,077,735. 55 4,142,760,543. 86 4,451,712,309. 26 4,662,194,401. 28 1,193,244,796.3 9 1,264,112,151. 67 1,285,823,219. 31 1,288,561,141. 63 1,294,948,390. 07 1,302,508,873. 11 1,307,712,264. 13 26,525,249,796. 39 2,930,637,151. 67 4,756,563,219. 31 5,245,638,877. 18 5,437,708,933. 93 5,754,221,182. 38 5,969,906,665. 41 1,193,244,796.3 9 70,867,355.28 21,711,067.64 2,737,922.32 6,387,248.44 7,560,483.04 5,203,391.02 12--99 12--101 12--102 12--103 12--104 Total expenditure Bal c/f Total Cash Flow Balance 249 Graphic No. 16 Expenditure data Graphic No.16 Expenditure data 30,000,000,000.00 25,000,000,000.00 20,000,000,000.00 15,000,000,000.00 10,000,000,000.00 5,000,000,000.00 Yr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Production Costs Overheads Mandatory Costs Fixed assets Movable Assets Total Expenditure Graphic No. 17 Cash flow Cash Balances Graphic No. 17 Cash flow balances 30,000,000,000.00 25,000,000,000.00 20,000,000,000.00 15,000,000,000.00 10,000,000,000.00 5,000,000,000.00 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Total receipts Total expenditure 250 Balance carried forward Cash flow 251 Table No. 90 Profit and loss 12--105 Profit and Loss Account 12--106 Cash Sales 12--107 12--108 12--109 12--110 - - - 346,750,000.00 804,225,000.00 1,373,350,000. 00 1,550,500,000.0 0 1,634,500,000. 00 1,692,625,000. 00 1,813,750,000. 00 3,223,788,028.3 3 4,100,595,852. 57 3,767,714,604. 17 835,152,945.56 - - - 3,570,538,028.3 3 4,904,820,852. 57 5,141,064,604. 17 2,385,652,945.5 6 1,634,500,000. 00 1,692,625,000. 00 1,813,750,000. 00 23,350,000.00 206,000,000.00 1,180,650,000. 00 1,232,500,000.0 0 1,322,500,000. 00 1,569,500,000. 00 1,641,500,000. 00 6,321,714,604. 17 3,618,152,945.5 6 2,957,000,000. 00 3,262,125,000. 00 3,455,250,000. 00 Credit sales Total sales Services Sales and services Interest received 12--112 Total 3,593,888,028.3 3 5,110,820,852. 57 12--111 12--113 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 4,073,888,028.3 3 5,590,820,852. 57 6,801,714,604. 17 4,098,152,945.5 6 - - - Less 252 3,437,000,000. 00 3,742,125,000. 00 3,935,250,000. 00 12--114 Cost of production 12--115 Cash operation - - - 5,090,055,000.0 794,450,000.00 870,965,000.00 0 Credit Operations 12--117 Total 708,208,334.27 857,191,142.58 790,767,907.98 912,350,000.00 12--116 - - - 5,090,055,000.0 794,450,000.00 870,965,000.00 0 12--118 12--119 12--120 12--121 12--122 12--123 708,208,334.27 857,191,142.58 790,767,907.98 912,350,000.00 Gross Profit (1,016,166,971.6 7) 4,796,370,852. 57 5,930,749,604. 17 3,389,944,611.2 9 - 5,812,537,824. 24 1,134,378,751. (2,540,804,992.8 60 8) 131.59 (11.06) 2,579,808,857. 42 2,951,357,092. 02 3,022,900,000. 00 (810,135,753.8 371,548,234.60 7) 71,542,907.98 Growth Growth % Overhead operations (59.37) (48.39) (47.60) 3.90 2.62 1,931,950,000.0 181,575,000.00 161,775,000.00 0 261,500,000.00 290,700,000.00 221,575,000.00 215,475,000.00 977,626,871.87 1,014,924,600. 68 1,053,645,286. 05 1,054,600,983.8 6 1,021,971,388. 988,096,931.39 952,930,120.22 25 2,909,576,871.8 7 1,196,499,600. 68 1,215,420,286. 05 1,316,100,983.8 6 1,312,671,388. 25 Interest on loan Total 253 1,209,671,931. 39 1,168,405,120. 22 12--124 Net Profit Before depreciation 12--125 Net Profit % 12--126 12--127 12--128 12--129 12--130 12--131 (3,925,743,843.5 4) 3,599,871,251. 89 4,715,329,318. 12 2,073,843,627.4 2 1,267,137,469. 17 1,741,685,160. 63 1,854,494,879. 78 (96.36) 64.39 69.33 50.60 36.87 46.54 47.13 4,634,976.66 12,871,803.95 22,215,464.15 34,305,554.09 40,038,193.07 48,453,210.52 53,233,751.84 0.11 0.23 0.33 0.84 1.16 1.29 1.35 (3,930,378,820.2 0) 3,586,999,447. 94 4,693,113,853. 97 2,039,538,073.3 3 1,227,099,276. 10 1,693,231,950. 10 1,801,261,127. 94 (2,456,486,762.6 2) 2,241,874,654. 96 2,933,196,158. 73 1,274,711,295.8 766,937,047.56 3 1,058,269,968. 81 1,125,788,204. 96 (1,473,892,057.5 7) 1,345,124,792. 98 1,759,917,695. 24 764,826,777.50 460,162,228.54 634,961,981.29 675,472,922.98 (3,930,378,820.2 0) 3,586,999,447. 94 4,693,113,853. 97 2,039,538,073.3 3 Depreciation Depreciation % Net Profit and Loss Profit & Loss Account Tax ( KRA) Total 254 1,227,099,276. 10 1,693,231,950. 10 1,801,261,127. 94 Graphic No.18 sales and services Graphic No. 18 Sales and services 9,000,000,000.00 8,000,000,000.00 7,000,000,000.00 6,000,000,000.00 5,000,000,000.00 4,000,000,000.00 3,000,000,000.00 2,000,000,000.00 1,000,000,000.00 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Sales Credit sales Graphic No. 19 Gross Profit Data 255 Services Sales and services Graphic No. 19 Gross Profit Data 10,000,000,000.00 8,000,000,000.00 6,000,000,000.00 4,000,000,000.00 2,000,000,000.00 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (2,000,000,000.00) (4,000,000,000.00) (6,000,000,000.00) Sales and services Cash operation Gross Profit Net Profit Before depreciation Graphic No 20 Net Profit Data Graphic No. 20 Net Profit Data 8,000,000,000.00 6,000,000,000.00 4,000,000,000.00 2,000,000,000.00 - Yr 1Yr 2Yr 3 Yr 4Yr 5Yr 6Yr 7 Yr 8Yr 9 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (2,000,000,000.00) (4,000,000,000.00) (6,000,000,000.00) Net Profit and Loss Profit & Loss Account 256 Tax ( KRA) 257 Table No. 91 Balance Sheet data 12--169 12--170 12--171 BALANCE SHEET SUMMARY Land (S.I.C. ) 12--172 Fixed Development s Movable assets 12--173 Debtors 12--174 12--175 12--176 12--177 12--178 Investments (FDR in bank) Savings account Contingency acc. Cash - - - 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 588,000,000.00 1,073,000,000. 00 2,017,500,000. 00 2,146,000,000. 00 2,298,500,000. 00 2,578,500,000. 00 2,888,500,000. 00 147,865,023.34 243,493,219.39 418,777,755.24 493,472,201.15 575,934,008.07 696,980,797.55 765,747,045.71 3,212,138,231. 95 7,123,066,729. 23 10,520,830,265 .76 10,834,167,553 .44 10,292,019,761 .14 9,749,871,968. 84 9,207,724,176. 54 12,500,000,000 .00 12,500,000,000 .00 12,500,000,000 .00 12,515,000,000 .00 12,535,000,000 .00 12,565,000,000 .00 12,865,000,000 .00 24,500,000.00 71,500,000.00 162,500,000.00 172,500,000.00 187,500,000.00 247,500,000.00 310,000,000.00 45,000,000.00 95,000,000.00 300,000,000.00 315,000,000.00 365,000,000.00 410,000,000.00 560,000,000.00 1,193,244,796. 39 1,264,112,151. 67 1,285,823,219. 31 1,288,561,141. 63 1,294,948,390. 07 1,302,508,873. 11 1,307,712,264. 13 22,710,748,051 .68 27,370,172,100 .29 32,205,431,240 .31 32,764,700,896 .22 32,548,902,159 .29 32,550,361,639 .50 32,904,683,486 .38 Total Assets 258 Graphic No. 21 Balance data (Assets) Graphic No. 21 Balance sheet Data 70,000,000,000.00 60,000,000,000.00 50,000,000,000.00 40,000,000,000.00 30,000,000,000.00 20,000,000,000.00 10,000,000,000.00 Yr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Fixed Assets Non cash movable assets 259 Cash Assets Total Assets 260 Table No. 92 Balance Sheet (LIABILITIES) 12--179 12--206 12--207 12--208 12--209 12--210 12--211 12--212 FINANCED BY BALANCE SHEET LIABILITIE S Directors shares Profit & Loss appropr account Deposits Holding Acc Inland Revenue - - - - - - 13,500,000.00 21,000,000.00 34,500,000.00 109,500,000.00 154,500,000.00 179,500,000.00 194,500,000.00 (2,456,486,762. 62) (214,612,107.6 6) 2,718,584,051. 07 3,993,295,346. 90 4,760,232,394. 46 5,818,502,363. 27 6,944,290,568. 24 25,000,000.00 75,000,000.00 150,000,000.00 250,000,000.00 375,000,000.00 525,000,000.00 700,000,000.00 (1,473,892,057. 57) (128,767,264.6 0) 631,150,430.64 595,977,208.14 331,139,436.68 21,101,417.96 16,574,340.94 26,602,626,871. 87 27,617,551,472 .55 28,671,196,758 .60 27,815,928,341 .18 26,928,030,328 .15 26,006,257,858 .26 25,049,318,577 .20 22,710,748,051. 68 27,370,172,100 .29 32,205,431,240 .31 32,764,700,896 .22 32,548,902,159 .29 32,550,361,639 .50 32,904,683,486 .38 External loans LIABILITIES SUMMARY 261 262 Graphic No. 22 Balance Sheet data (Liabilities) Graphic No.22 Liabilities Data 70,000,000,000.00 60,000,000,000.00 50,000,000,000.00 40,000,000,000.00 30,000,000,000.00 20,000,000,000.00 10,000,000,000.00 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (10,000,000,000.00) Directors shares Profit & Loss appropr accnt Deposits Holding Acc Inland Revenue External loans LIABILITIES SUMMARY 12.0.2 BREAK EVEN ANALYSIS 1) Overhead Expenditure For our purposes, we have added the following expenses as part of overhead expenditure. 1) All insurances payable for all purposes of the project especially cover for the loan and interests 2) Payments to the Inland Revenue authority. 3) Monthly farmers financing expenses- These expenses are incurred by the company as new farmers come in. The financing is in fifteen months instalment per group. Therefore the financing will be carried out until all the groups are thus financed. At times some 2 or 3 groups overlap and hence the financing expenditure becomes higher. It is project policy to keep overhead expenditure at the 263 minimum level by doing only the absolutely necessary and involving minimum personnel to the maximum utilization. 2) Breakeven point. A) The receipts items that are used for this purpose are; 1) Sales from the project operations 2) Payment received for services given 3) Loan repayments by farmers on the initial credit facility given to them on entry date. This amount covers the land acquisition costs and all developments both material and money for operations. These are paid in instalments. B) Mandatory payments are those payments that the operations of the project require as necessary or as agreed upon by all parties especially the main stake holders. Items covered are; 1) Repayments of loan both principle and interest 2) Production costs 3) Overhead costs Graphic No 23 Break-even point 264 Graphic No. 13 Break-even point 9,000,000,000.00 8,000,000,000.00 7,000,000,000.00 6,000,000,000.00 5,000,000,000.00 4,000,000,000.00 3,000,000,000.00 2,000,000,000.00 1,000,000,000.00 - Yr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Total Receipts 265 Total expenditure Table No. 93 Cash Flow Ratios 12--213 12--214 12--215 Ratios Total sales and services Sales 12--216 Services 12--217 Interest received 12--218 Cost of sales and services Gross profit 12--219 12--220 12--221 Net Profit before tax Depreciation 12--222 Tax 12--223 12--225 Net to Appropriation Gross Profit ratios Overhead costs 12--226 Production costs 12--224 12--227 12--228 100.00 100.00 100.00 100.00 100.00 100.00 100.00 87.64 87.73 75.58 58.21 47.56 45.23 46.09 0.57 3.68 17.36 30.07 38.48 41.94 41.71 11.78 8.59 7.06 11.71 13.97 12.83 12.20 124.94 14.21 12.81 17.28 24.94 21.13 23.18 (24.94) 85.79 87.19 82.72 75.06 78.87 76.82 (96.36) 64.39 69.33 50.60 36.87 46.54 47.13 0.11 0.23 0.33 0.84 1.16 1.29 1.35 (36.18) 24.06 25.87 18.66 13.39 16.97 17.16 (60.30) 40.10 43.12 31.10 22.31 28.28 28.61 100.00 100.00 100.00 100.00 100.00 100.00 100.00 (190.12) 3.79 2.73 7.71 11.27 7.51 7.13 (500.91) 16.56 14.69 20.89 33.23 26.79 30.18 (2,234.94) 570.64 543.02 966.53 1,261.68 1,102.89 1,088.51 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Assets Assets Ratios 266 12--229 Cash 12--230 Debtors( Farmers) Movable assets 12--231 12--232 12--233 12--234 12--235 12--236 12--237 12--238 12--239 12--240 12--241 12--242 12--243 12--244 5.25 4.62 3.99 3.93 3.98 4.00 3.97 14.14 26.02 32.67 33.07 31.62 29.95 27.98 0.65 0.89 1.30 1.51 1.77 2.14 2.33 22.02 18.27 15.53 15.26 15.36 15.36 15.20 2.59 3.92 6.26 6.55 7.06 7.92 8.78 0.20 0.35 0.93 0.96 1.12 1.26 1.70 0.11 0.26 0.50 0.53 0.58 0.76 0.94 55.04 45.67 38.81 38.20 38.51 38.60 39.10 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 1,783.77 5,922.43 47,063.47 20,273.96 17,227.85 25,131.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.06 0.08 0.11 0.33 0.47 0.55 0.59 (10.82) (0.78) 8.44 12.19 14.62 17.88 21.10 0.11 0.27 0.47 0.76 1.15 1.61 2.13 117.14 100.90 89.03 84.90 82.73 79.90 76.13 (6.49) (0.47) 1.96 1.82 1.02 0.06 0.05 Land (S.I.C. ) Fixed Assets Contingencies funds Savings Account Fixed Deposits Cash balance ratios Cash balance C/F Liabilities Directors shares Profit and loss account Holding account External loans Inland Revenue 267 Table No.73 Cash Projections Years 8 to10 and 11/15, 16/20 and 21/25. Kshs version 12--0 DETAILED CASH FLOW PROJECTION S 12--1 12--2 IN FLOW 12--3 External Loans 12--4 Yr 8 Yr 9 - - Yr 10 Total Yr 11--15 Total Yr 16--20 Total Yr 21--25 - FARM PRODUCTIO NS 268 - - - Total Yr 1--25 25,625,000,000.0 0 12--5 12--6 Crop sales 175,000,000.0 0 200,000,000.0 0 350,000,000.0 0 3,075,000,000.0 0 3,950,000,000.0 0 5,550,000,000.0 0 14,000,000,000.0 0 325,000,000.0 0 425,000,000.0 0 425,000,000.0 0 1,750,000,000.0 0 1,505,000,000.0 0 2,085,000,000.0 0 7,500,000,000.00 15,000,000.00 13,500,000.00 17,500,000.00 122,500,000.00 119,000,000.00 103,250,000.00 450,000,000.00 35,000,000.00 27,000,000.00 25,000,000.00 165,000,000.00 128,300,000.00 - 500,000,000.00 550,000,000.0 0 665,500,000.0 0 817,500,000.0 0 5,112,500,000.0 0 5,702,300,000.0 0 7,738,250,000.0 0 22,450,000,000.0 0 - - - - Livestock 12--7 Seedlings 12--8 Plots 12--9 Miscellaneous farm operations 12-- Stores 10 12-- Machines and 11 tools 12-- Petroleum 12 products 12-- Agro vet 13 products 12-- Building 14 Materials 12-- Motor vehicles 15 12-- Farm 16 machines and Implements 12-- Dry foods 17 95,000,000.00 96,000,000.00 96,000,000.00 515,000,000.00 552,500,000.00 596,000,000.00 2,500,000,000.00 115,000,000.0 0 117,500,000.0 0 120,000,000.0 0 610,000,000.00 650,000,000.00 692,500,000.00 2,925,000,000.00 92,500,000.00 95,000,000.00 95,500,000.00 498,500,000.00 549,000,000.00 614,500,000.00 2,445,000,000.00 162,000,000.0 0 162,500,000.0 0 162,500,000.0 0 849,500,000.00 886,500,000.00 932,000,000.00 4,085,000,000.00 50,000,000.00 47,500,000.00 47,500,000.00 253,500,000.00 284,000,000.00 290,000,000.00 1,445,000,000.00 145,000,000.0 0 147,500,000.0 0 145,000,000.0 0 712,000,000.00 748,000,000.00 792,500,000.00 3,520,000,000.00 95,000,000.00 97,500,000.00 100,000,000.0 0 522,500,000.00 555,000,000.00 610,000,000.00 2,500,000,000.00 269 12-18 Farm inputs 12-19 Stores Sales 12-- Industrial 20 Products 12-- Milk products 21 12-- Flour Mills 22 12-23 Confectionarie s 12-- Electricity 24 12-- Building and 25 construction materials 12-- Water PVC 26 pipes 12-- Industrial 27 Products 12-28 12-29 130,000,000.0 0 130,000,000.0 0 132,500,000.0 0 699,500,000.00 729,000,000.00 783,000,000.00 3,335,000,000.00 884,500,000.0 0 893,500,000.0 0 899,000,000.0 0 4,660,500,000.0 0 4,954,000,000.0 0 5,310,500,000.0 0 22,755,000,000.0 0 - - - - 92,500,000.00 95,000,000.00 112,500,000.0 0 607,000,000.00 792,000,000.00 864,500,000.00 3,000,000,000.00 97,500,000.00 97,500,000.00 97,500,000.00 500,000,000.00 559,250,000.00 635,000,000.00 2,500,000,000.00 22,250,000.00 25,000,000.00 27,500,000.00 210,000,000.00 537,500,000.00 600,000,000.00 1,500,000,000.00 85,000,000.00 85,000,000.00 85,000,000.00 447,500,000.00 495,000,000.00 536,250,000.00 2,000,000,000.00 90,000,000.00 95,000,000.00 100,000,000.0 0 725,000,000.00 760,000,000.00 812,500,000.00 3,000,000,000.00 110,000,000.0 0 112,500,000.0 0 115,000,000.0 0 612,500,000.00 720,000,000.00 842,500,000.00 3,000,000,000.00 497,250,000.0 0 510,000,000.0 0 537,500,000.0 0 3,102,000,000.0 0 3,863,750,000.0 0 4,290,750,000.0 0 15,000,000,000.0 0 - - - - 1,202,500,000.0 0 2,155,000,000.0 0 2,797,000,000.0 0 6,500,000,000.00 Services Water charges 52,500,000.00 57,500,000.00 62,500,000.00 270 12-- Implements 30 Hire 12-- Handling 31 charges 12-- Medical 32 services 12-- Education 33 Services 12-34 175,000,000.0 0 187,500,000.0 0 195,000,000.0 0 1,162,500,000.0 0 1,289,500,000.0 0 1,065,000,000.0 0 4,750,000,000.00 927,500,000.0 0 947,500,000.0 0 962,500,000.0 0 4,850,500,000.0 0 4,972,500,000.0 0 5,235,000,000.0 0 22,600,000,000.0 0 185,000,000.0 0 215,000,000.0 0 250,000,000.0 0 2,000,000,000.0 0 2,670,000,000.0 0 2,760,000,000.0 0 8,500,000,000.00 95,000,000.00 152,500,000.0 0 156,000,000.0 0 892,500,000.00 1,475,000,000.0 0 2,025,000,000.0 0 5,000,000,000.00 275,000,000.0 0 350,000,000.0 0 375,000,000.0 0 2,275,000,000.0 0 3,045,000,000.0 0 4,135,000,000.0 0 11,000,000,000.0 0 30,000,000.00 30,000,000.00 32,500,000.00 177,500,000.00 205,000,000.00 227,500,000.00 850,000,000.00 62,000,000.00 65,000,000.00 65,000,000.00 335,000,000.00 365,000,000.00 401,500,000.00 1,600,000,000.00 1,802,000,000. 00 2,005,000,000. 00 2,098,500,000. 00 12,895,500,000. 00 16,177,000,000. 00 18,646,000,000. 00 60,800,000,000.0 0 - - - - Crop cess 12-- Transport 35 charges 12-- Financial 36 services 12-- Services 37 12-- Misc sources 38 12-- Loan 39 Repayments (Farmers) 12-- Directors 40 contributions 12-- Holding 41 Accounts 542,147,792.3 0 542,147,792.3 0 542,147,792.3 0 2,710,738,961.5 1 2,710,738,961.5 1 2,139,470,742.1 9 11,906,919,296.1 9 50,000,000.00 25,000,000.00 25,000,000.00 165,000,000.00 235,000,000.00 305,500,000.00 1,000,000,000.00 200,000,000.0 0 225,000,000.0 0 250,000,000.0 0 1,875,000,000.0 0 2,600,000,000.0 0 4,150,000,000.0 0 10,000,000,000.0 0 271 12-- Interest 42 received (FDR) 12-- Miscellaneous 43 sources 12-- TOTAL 44 RECEIPTS 12-- Expenditure 45 12-- farm inputs 46 12-- Stores 47 purchases 12-- Repairs 48 12-- Transport & 49 fuels 12-- Raw Materials 50 12-- Expendable 51 material 12-- Wages 52 12-- Salaries 53 (supervisory) 480,000,000.0 0 480,000,000.0 0 480,000,000.0 0 2,400,000,000.0 0 2,400,000,000.0 0 2,400,000,000.0 0 12,000,000,000.0 0 1,272,147,792. 30 1,272,147,792. 30 1,297,147,792. 30 7,150,738,961.5 1 7,945,738,961.5 1 8,994,970,742.1 9 34,906,919,296.1 9 5,005,897,792. 30 5,346,147,792. 30 5,649,647,792. 30 32,921,238,961. 51 38,642,788,961. 51 44,980,470,742. 19 181,536,919,296. 19 - - - - - - - 62,500,000.00 65,000,000.00 75,000,000.00 430,000,000.00 520,000,000.00 500,000,000.00 2,000,000,000.00 132,000,000.0 0 145,000,000.0 0 215,000,000.0 0 1,255,000,000.0 0 2,025,500,000.0 0 2,770,000,000.0 0 8,975,000,000.00 25,225,000.00 25,750,000.00 26,500,000.00 145,450,000.00 195,422,512.45 254,143,436.98 750,000,000.00 45,000,000.00 50,000,000.00 55,000,000.00 352,500,000.00 252,500,000.00 237,500,000.00 1,200,000,000.00 475,000,000.0 0 485,000,000.0 0 525,000,000.0 0 2,745,000,000.0 0 2,800,000,000.0 0 3,045,000,000.0 0 11,580,000,000.0 0 5,500,000.00 5,675,000.00 5,800,000.00 31,650,000.00 41,275,000.00 78,621,665.73 200,000,000.00 122,500,000.0 0 132,500,000.0 0 145,000,000.0 0 730,000,000.00 777,500,000.00 840,000,000.00 3,482,500,000.00 37,500,000.00 37,500,000.00 37,500,000.00 202,500,000.00 302,500,000.00 495,000,000.00 1,300,000,000.00 272 12-- Lands for sale 54 12-- Production 55 Costs 12-- Overheads 56 12-- Telephones 57 12-- Management 58 salaries 12-59 12-60 12-61 12-62 12-63 12-64 12-65 12-66 905,225,000.0 0 1,084,800,000. 00 - - 4,500,000,000.00 5,892,100,000.0 0 6,914,697,512.4 5 8,220,265,102.7 1 33,987,500,000.0 0 - - - - 12,500,000.00 13,500,000.00 14,500,000.00 91,750,000.00 139,500,000.00 187,500,000.00 510,000,000.00 95,000,000.00 97,500,000.00 100,000,000.0 0 579,500,000.00 702,500,000.00 1,480,500,000.0 0 3,470,000,000.00 1,500,000.00 5,150,000.00 35,000,000.00 63,975,000.00 Miscellaneous overheads Legal fees Preliminary expenses Conveyance 946,425,000.0 0 - 500,000.00 - 25,000,000.00 25,000,000.00 45,000,000.00 - 20,000,000.00 125,000,000.00 350,000.00 4,057,500.00 5,557,500.00 14,367,500.00 19,622,500.00 16,895,000.00 64,925,000.00 1,250,000.00 1,500,000.00 12,500,000.00 23,750,000.00 17,650,000.00 3,750,000.00 150,000,000.00 - - - - - - 625,000,000.00 - - 14,400,000.00 23,600,000.00 58,000,000.00 20,000,000.00 193,000,000.00 - - - - - - 300,000,000.00 8,500,000.00 9,500,000.00 11,000,000.00 76,750,000.00 110,000,000.00 152,500,000.00 400,000,000.00 25,000,000.00 25,000,000.00 25,000,000.00 130,000,000.00 125,000,000.00 189,750,000.00 650,000,000.00 7,600,000.00 7,600,000.00 5,000,000.00 16,750,000.00 12,500,000.00 16,250,000.00 100,000,000.00 Financial costs Planning & consultations Commissions Agents Accommodatio n 12-- Travelling 67 expenses 12-- Stationery 68 273 12-69 12-70 12-71 12-72 12-73 Insurances 62,000,000.00 65,000,000.00 37,500,000.00 242,500,000.00 347,500,000.00 430,500,000.00 1,400,000,000.00 3,500,000.00 6,500,000.00 - - - - 525,000,000.00 - 22,500,000.00 - - - - 765,000,000.00 - - - - 5,250,000.00 2,250,000.00 10,000,000.00 215,700,000.0 0 278,157,500.0 0 250,457,500.0 0 1,245,467,500.0 0 1,542,672,500.0 0 2,554,895,000.0 0 9,351,900,000.00 Survey work Stamp Duty Titles Overheads 274 12-- Mandatory 74 costs 12-- External loan 75 12-- Kenya 76 Revenue 12-- Mandatory 77 Costs 12-- Fixed 78 developments 12-- Land costs 79 (SIC) 12-- Dams & water 80 system 12-81 12-82 - - - - - - - 1,909,869,401. 28 1,909,869,401. 28 1,909,869,401. 9,549,347,006.4 9,549,347,006.4 9,516,960,826.9 41,984,740,648.7 28 0 0 4 0 810,000,000.0 0 896,000,000.0 0 972,500,000.0 6,399,700,000.0 8,153,000,000.0 9,856,160,027.0 31,237,360,027.0 0 0 0 0 0 2,719,869,401. 28 2,805,869,401. 28 2,882,369,401. 15,949,047,006. 17,702,347,006. 19,373,120,853. 73,222,100,675.7 28 40 40 94 0 - - - - - - - - - - - - 5,000,000,000.00 375,000,000.0 0 225,000,000.0 0 235,000,000.0 1,465,000,000.0 0 0 555,000,000.00 - 5,000,000,000.00 5,000,000.00 15,000,000.00 12,000,000.00 36,500,000.00 36,500,000.00 125,000,000.0 0 130,000,000.0 0 75,000,000.00 452,500,000.00 650,000,000.00 8,750,000.00 3,000,000.00 3,000,000.00 25,000,000.00 24,500,000.00 50,000,000.00 45,000,000.00 45,000,000.00 400,000,000.00 495,000,000.00 315,000,000.00 1,500,000,000.00 563,750,000.0 0 418,000,000.0 0 370,000,000.0 2,379,000,000.0 1,761,000,000.0 0 0 0 934,750,000.00 14,315,000,000.0 0 - Fencing 25,000,000.00 175,000,000.00 Buildings 12-- Irrigation 83 works 12-- Roads 84 construction 12-- Fixed assets 85 275 575,000,000.00 2,440,000,000.00 19,750,000.00 200,000,000.00 12-86 12-87 12-88 12-89 12-90 12-91 12-92 12-93 12-94 12-95 Movable Assets Livestock - - - - - - - 5,000,000.00 2,500,000.00 2,500,000.00 15,500,000.00 15,000,000.00 7,500,000.00 195,000,000.00 15,000,000.00 25,000,000.00 25,000,000.00 178,000,000.00 122,500,000.00 100,000,000.00 571,000,000.00 25,000,000.00 37,500,000.00 25,000,000.00 355,500,000.00 135,000,000.00 40,000,000.00 750,000,000.00 10,000,000.00 10,000,000.00 15,000,000.00 260,000,000.00 77,500,000.00 31,000,000.00 450,000,000.00 12,500,000.00 15,000,000.00 5,000,000.00 50,000,000.00 95,000,000.00 63,500,000.00 350,000,000.00 17,500,000.00 15,000,000.00 15,000,000.00 100,250,000.00 70,000,000.00 40,250,000.00 497,000,000.00 25,000,000.00 12,500,000.00 10,000,000.00 70,000,000.00 70,000,000.00 25,000,000.00 350,000,000.00 15,000,000.00 25,000,000.00 12,500,000.00 22,500,000.00 45,000,000.00 40,000,000.00 225,000,000.00 125,000,000.0 0 142,500,000.0 0 110,000,000.0 1,051,750,000.0 0 0 630,000,000.00 Heavy Plants Operation tools Furniture & Fittings Motor Vehicles -3 tons M/v + 3 tons Tractors Implements Movable Assets 347,250,000.00 3,388,000,000.00 12-- Current 96 accounts ( Project Objectives) 12-- Savings 97 account - - 90,000,000.00 75,000,000.00 125,000,000.0 1,000,000,000.0 1,750,000,000.0 2,900,000,000.0 6,250,000,000.00 0 0 0 0 12-98 35,000,000.00 100,000,000.0 0 125,000,000.0 1,135,000,000.0 2,505,000,000.0 3,235,000,000.0 20,000,000,000.0 0 0 0 0 0 - - - - - FDR 276 12-- Contingency 99 reserves 12-100 70,000,000.00 150,000,000.0 0 125,000,000.0 0 920,000,000.00 2,200,000,000.0 1,975,000,000.0 6,000,000,000.00 0 0 195,000,000.0 0 325,000,000.0 0 375,000,000.0 3,055,000,000.0 6,455,000,000.0 8,110,000,000.0 32,250,000,000.0 0 0 0 0 0 4,724,544,401. 28 4,915,951,901. 28 5,072,626,901. 29,572,364,506. 35,005,717,018. 39,540,280,956. 166,514,500,675. 28 40 85 65 70 1,589,065,655. 15 2,019,261,546. 17 2,596,282,437. 5,945,156,892.3 9,582,228,834.9 15,022,418,620. 15,022,418,620.5 20 0 5 50 0 6,313,610,056. 43 6,935,213,447. 45 7,668,909,338. 35,517,521,398. 44,587,945,853. 54,562,699,577. 181,536,919,296. 48 70 81 15 19 281,353,391.0 2 430,195,891.0 2 577,020,891.0 3,348,874,455.1 3,637,071,942.6 5,440,189,785.5 15,022,418,620.5 2 1 5 4 0 Total Savings 12-- Total 101 expenditure 12-102 Bal c/f 12-103 Total 12-- Cash Flow 104 Balance 277 12-- Profit and 10 Loss Account 5 12-- Cash Sales 10 6 12-- Credit sales 10 7 12-- Total sales 10 8 12-- Services 10 9 12-- Sales and 11 services 0 12-- Interest 11 received 1 12-- Total 11 2 12-11 3 - - - - 12,875,000,000 .00 14,520,050,000 .00 17,339,500,000 .00 60,205,000,000. 00 - - - - 11,927,251,430. 63 1,931,750,000. 2,069,000,000. 2,254,000,000. 00 00 00 12,875,000,000 .00 14,520,050,000 .00 17,339,500,000 .00 72,132,251,430. 63 1,802,000,000. 2,005,000,000. 2,098,500,000. 00 00 00 12,895,500,000 .00 16,177,000,000 .00 18,646,000,000 .00 60,800,000,000. 00 3,733,750,000. 4,074,000,000. 4,352,500,000. 00 00 00 25,770,500,000 .00 30,697,050,000 .00 35,985,500,000 .00 132,932,251,430 .63 480,000,000.0 0 480,000,000.0 0 2,400,000,000. 00 2,400,000,000. 00 2,400,000,000. 00 12,000,000,000. 00 4,213,750,000. 4,554,000,000. 4,832,500,000. 00 00 00 28,170,500,000 .00 33,097,050,000 .00 38,385,500,000 .00 144,932,251,430 .63 - - - - 1,931,750,000. 2,069,000,000. 2,254,000,000. 00 00 00 - - 480,000,000.0 0 Less 278 12-- Cost of 11 production 4 12-- Cash 11 operation 5 12-- Credit 11 Operations 6 12-- Total 11 7 12-11 8 12-11 9 12-12 0 - - - - 5,892,100,000. 00 6,914,697,512. 45 8,220,265,102. 71 33,987,500,000. 00 - - - - 946,425,000.0 1,084,800,000. 0 00 5,892,100,000. 00 6,914,697,512. 45 8,220,265,102. 71 33,987,500,000. 00 3,308,525,000. 3,607,575,000. 3,747,700,000. 00 00 00 22,278,400,000 .00 26,182,352,487 .55 30,165,234,897 .29 110,944,751,430 .63 285,625,000.0 0 299,050,000.0 0 140,125,000.0 0 5,640,342,907. 98 3,903,952,487. 55 3,982,882,409. 74 - 3.70 3.47 0.77 22.26 15.94 7.09 24.91 215,700,000.0 0 278,157,500.0 0 250,457,500.0 0 1,245,467,500. 00 1,542,672,500. 00 2,554,895,000. 00 9,351,900,000.0 0 916,421,649.7 4 878,520,333.9 3 839,173,033.9 3 3,551,064,457. 55 2,316,152,156. 15 794,612,835.08 16,359,740,648. 70 1,132,121,649. 1,156,677,833. 1,089,630,533. 74 93 93 4,796,531,957. 55 3,858,824,656. 15 3,349,507,835. 08 25,711,640,648. 70 905,225,000.0 0 905,225,000.0 0 946,425,000.0 1,084,800,000. 0 00 Gross Profit Growth Growth % 12-- Overhead 12 operations 1 12-- Interest on 12 loan 2 12-- Total 12 3 279 12-- Net Profit 12 Before 4 depreciation 12-- Net Profit % 12 5 12-- Depreciation 12 6 12-- Depreciation 12 % 7 2,176,403,350. 2,450,897,166. 2,658,069,466. 26 07 07 17,481,868,042 .45 22,323,527,831 .40 26,815,727,062 .21 85,233,110,781. 93 51.65 53.82 55.00 62.06 67.45 69.86 58.81 57,898,557.97 63,397,651.70 66,426,804.34 415,502,210.91 581,517,314.90 532,988,549.77 1,933,484,043.8 8 1.37 1.39 1.37 1.47 1.76 1.39 1.33 17,066,365,831 .54 21,742,010,516 .50 26,282,738,512 .44 83,299,626,738. 04 10,666,478,644 .71 13,588,756,572 .81 16,426,711,570 .27 52,062,266,711. 28 6,399,887,186. 83 8,153,253,943. 69 9,856,026,942. 16 31,237,360,026. 77 17,066,365,831 .54 21,742,010,516 .50 26,282,738,512 .44 83,299,626,738. 04 12-- Net Profit and 12 Loss 2,118,504,792. 2,387,499,514. 2,591,642,661. 8 29 37 73 12-- Profit & Loss 12 Account 1,324,065,495. 1,492,187,196. 1,619,776,663. 9 18 48 58 12-- Tax ( KRA) 13 794,439,297.1 895,312,317.8 971,865,998.1 0 1 9 5 12-- Total 13 2,118,504,792. 2,387,499,514. 2,591,642,661. 1 29 37 73 280 12-- BALANCE 132 SHEET 12-- Land (S.I.C. ) 133 12-- Bal b/f 134 12-135 Additions 12-136 Total c/f 12-- Fixed 137 Developments 12-- Bal B/f 138 12-139 Additions 12-140 Total bal C/F 12-- Movable 141 assets 12-- Bal b/f 142 - - - - - - - - 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 - - - - - - - 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 - - - - 3,870,250,000. 00 4,240,250,000. 00 6,619,250,000. 00 8,380,250,000. 00 - 563,750,000.00 418,000,000.00 370,000,000.00 2,379,000,000. 00 1,761,000,000. 934,750,000.00 00 9,315,000,000. 00 3,452,250,000. 00 6,619,250,000. 00 8,380,250,000. 00 9,315,000,000. 00 9,315,000,000. 00 - - - - 765,747,045.71 832,848,487.74 911,950,836.04 955,524,031.69 1,591,771,820. 78 1,640,254,505. 89 - 2,888,500,000. 00 3,452,250,000. 00 3,870,250,000. 00 4,240,250,000. 00 281 12-143 Additions 12-144 Total 12-- Depreciation 145 (12.5% pa) 12-146 125,000,000.00 142,500,000.00 110,000,000.00 1,051,750,000. 630,000,000.00 347,250,000.00 00 3,388,000,000. 00 890,747,045.71 975,348,487.74 2,007,274,031. 69 1,987,504,505. 89 3,388,000,000. 00 66,426,804.34 415,502,210.91 581,517,314.90 532,988,549.77 1,933,484,043. 88 57,898,557.97 63,397,651.70 1,021,950,836. 04 2,221,771,820. 78 Bal c/f 12-- Total 147 Depreciation 832,848,487.74 911,950,836.04 955,524,031.69 57,898,557.97 63,397,651.70 1,591,771,820. 78 1,454,515,956. 12 1,454,515,956. 12 66,426,804.34 415,502,210.91 581,517,314.90 532,988,549.77 1,933,484,043. 88 282 1,640,254,505. 89 12-- Investments 148 (FDR in bank) 12-- Bal b/f 149 12-150 additions 12-151 Total 12-152 12-153 Less w/drawn - - - - 12,865,000,000 .00 12,900,000,000 .00 13,000,000,000 .00 13,125,000,000 .00 14,260,000,000 .00 16,765,000,000 .00 - 35,000,000.00 100,000,000.00 125,000,000.00 1,135,000,000. 00 2,505,000,000. 00 3,235,000,000. 00 20,000,000,000 .00 12,900,000,000 .00 13,000,000,000 .00 13,125,000,000 .00 14,260,000,000 .00 16,765,000,000 .00 20,000,000,000 .00 20,000,000,000 .00 - - - - - - - 12,900,000,000 .00 13,000,000,000 .00 13,125,000,000 .00 14,260,000,000 .00 16,765,000,000 .00 20,000,000,000 .00 20,000,000,000 .00 - - - - Total c/f 12-- Savings 154 account 12-- Bal B/F 155 12-156 Additions 12-157 Total c/f 310,000,000.00 400,000,000.00 475,000,000.00 600,000,000.00 1,600,000,000. 00 3,350,000,000. 00 - 90,000,000.00 75,000,000.00 125,000,000.00 1,000,000,000. 00 1,750,000,000. 00 2,900,000,000. 00 6,250,000,000. 00 400,000,000.00 475,000,000.00 600,000,000.00 1,600,000,000. 00 3,350,000,000. 00 6,250,000,000. 00 6,250,000,000. 00 - - - - 12-- Contingency 158 acc. 283 12-159 Bal b/f 12-160 Additions 12-161 Total c/f 12-162 Cash 560,000,000.00 630,000,000.00 780,000,000.00 905,000,000.00 1,825,000,000. 00 4,025,000,000. 00 - 70,000,000.00 150,000,000.00 125,000,000.00 920,000,000.00 2,200,000,000. 00 1,975,000,000. 00 6,000,000,000. 00 630,000,000.00 780,000,000.00 905,000,000.00 1,825,000,000. 00 4,025,000,000. 00 6,000,000,000. 00 6,000,000,000. 00 1,589,065,655. 15 2,019,261,546. 17 2,596,282,437. 20 5,945,156,892. 30 9,582,228,834. 95 15,022,418,620 .50 15,022,418,620 .50 284 12-163 12-164 Debtors 12-165 Additions 12-166 Total 12-167 Less paid 12-168 Bal c/f - - - - Bal b/f 12-- BALANCE 169 SHEET SUMMARY 12-- Land (S.I.C. ) 170 12-- Fixed 171 Developments 12-- Movable 172 assets 9,207,724,176. 54 8,665,576,384. 24 8,123,428,591. 94 7,581,280,799. 64 4,870,541,838. 13 2,159,802,876. 62 - - - - - - - 11,927,251,430 .63 9,207,724,176. 54 8,665,576,384. 24 8,123,428,591. 94 7,581,280,799. 64 4,870,541,838. 13 2,159,802,876. 62 11,927,251,430 .63 542,147,792.30 542,147,792.30 542,147,792.30 2,710,738,961. 51 2,710,738,961. 51 2,139,470,742. 19 11,906,919,296 .19 8,665,576,384. 24 8,123,428,591. 94 7,581,280,799. 64 4,870,541,838. 13 2,159,802,876. 62 20,332,134.43 20,332,134.43 - - - - 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 5,000,000,000. 00 3,452,250,000. 00 3,870,250,000. 00 4,240,250,000. 00 6,619,250,000. 00 8,380,250,000. 00 9,315,000,000. 00 9,315,000,000. 00 832,848,487.74 911,950,836.04 955,524,031.69 1,591,771,820. 78 1,640,254,505. 89 1,454,515,956. 12 1,454,515,956. 12 285 12-173 Debtors 8,665,576,384. 24 8,123,428,591. 94 7,581,280,799. 64 4,870,541,838. 13 2,159,802,876. 62 20,332,134.43 20,332,134.43 12,900,000,000 .00 13,000,000,000 .00 13,125,000,000 .00 14,260,000,000 .00 16,765,000,000 .00 20,000,000,000 .00 20,000,000,000 .00 12-- Savings 175 account 400,000,000.00 475,000,000.00 600,000,000.00 1,600,000,000. 00 3,350,000,000. 00 6,250,000,000. 00 6,250,000,000. 00 12-- Contingency 176 acc. 630,000,000.00 780,000,000.00 905,000,000.00 1,825,000,000. 00 4,025,000,000. 00 6,000,000,000. 00 6,000,000,000. 00 1,589,065,655. 15 2,019,261,546. 17 2,596,282,437. 20 5,945,156,892. 30 9,582,228,834. 95 15,022,418,620 .50 15,022,418,620 .50 33,469,740,527 .13 34,179,890,974 .15 35,003,337,268 .52 41,711,720,551 .22 50,902,536,217 .46 63,062,266,711 .05 63,062,266,711 .05 12-- Investments 174 (FDR in bank) 12-177 Cash 12-178 Total Assets 286 12-- FINANCED 179 BY 12-- Directors 180 shares 12-- Bal b/f 181 12-182 Additions 12-183 Total c/f 12-- Profit & Loss 184 appropr account 12-- Bal B/f 185 12-186 Additions 12-187 Total c/f - - - - - - - - 194,500,000.0 0 244,500,000.0 0 269,500,000.00 294,500,000.00 459,500,000.00 694,500,000.00 - 50,000,000.00 25,000,000.00 25,000,000.00 165,000,000.00 235,000,000.00 305,500,000.00 1,000,000,000. 00 244,500,000.0 0 269,500,000.0 0 294,500,000.00 459,500,000.00 694,500,000.00 1,000,000,000. 00 1,000,000,000. 00 - - - - 6,944,290,568. 8,268,356,063. 24 42 9,760,543,259. 90 11,380,319,923 .48 22,046,798,568 .19 35,635,555,141 .00 - 1,324,065,495. 1,492,187,196. 18 48 1,619,776,663. 58 10,666,478,644 .71 13,588,756,572 .81 16,426,711,570 .27 52,062,266,711 .28 8,268,356,063. 9,760,543,259. 42 90 11,380,319,923 .48 22,046,798,568 .19 35,635,555,141 .00 52,062,266,711 .28 52,062,266,711 .28 12-- Deposits 188 Holding Acc 287 12-189 Bal B/f 12-190 Additions 12-191 Total c/f 700,000,000.0 0 900,000,000.0 0 1,125,000,000. 00 1,375,000,000. 00 3,250,000,000. 00 5,850,000,000. 00 - 200,000,000.0 0 225,000,000.0 0 250,000,000.00 1,875,000,000. 00 2,600,000,000. 00 4,150,000,000. 00 10,000,000,000 .00 900,000,000.0 1,125,000,000. 0 00 1,375,000,000. 00 3,250,000,000. 00 5,850,000,000. 00 10,000,000,000 .00 10,000,000,000 .00 288 12-- Inland 192 Revenue 12-- Bal B/f 193 12-- Additions 194 16,574,340.94 1,013,638.05 794,439,297.11 12-195 Total 12-196 Less paid 12-197 Bal c/f 12-198 12-199 External loans 12-200 Additions 12-201 Total 12-202 Less paid 12-203 Bal - - - - 325,955.94 (308,045.91) (120,859.09) 133,084.60 (0.23) 895,312,317.89 971,865,998.15 6,399,887,186. 83 8,153,253,943. 69 9,856,026,942 .16 31,237,360,026. 77 811,013,638.05 896,325,955.94 972,191,954.09 6,399,579,140. 91 8,153,133,084. 60 9,856,160,026 .77 31,237,360,026. 53 810,000,000.00 896,000,000.00 972,500,000.00 6,399,700,000. 00 8,153,000,000. 00 9,856,160,027 .00 31,237,360,027. 00 1,013,638.05 325,955.94 (308,045.91) (120,859.09) 133,084.60 (0.23) (0.47) - - - - Bal B/f 25,049,318,577 .20 24,055,870,825 .66 23,024,521,758 .31 21,953,825,390 .96 15,955,542,842 .11 8,722,347,991 .86 0.00 - - - - - - 25,625,000,000. 00 25,049,318,577 .20 24,055,870,825 .66 23,024,521,758 .31 21,953,825,390 .96 15,955,542,842 .11 8,722,347,991 .86 25,625,000,000. 00 1,909,869,401. 28 1,909,869,401. 28 1,909,869,401. 28 9,549,347,006. 40 9,549,347,006. 40 9,516,960,826 .94 41,984,740,648. 70 23,139,449,175 .92 22,146,001,424 .38 21,114,652,357 .03 12,404,478,384 .56 6,406,195,835. 71 (794,612,835. (16,359,740,648. 08) 70) 289 12-- Interest on 204 loan 12-205 916,421,649.74 878,520,333.93 839,173,033.93 3,551,064,457. 55 2,316,152,156. 15 794,612,835.0 8 16,359,740,648. 70 24,055,870,825 .66 23,024,521,758 .31 21,953,825,390 .96 15,955,542,842 .11 8,722,347,991. 86 0.00 0.00 Bal C/F 290 12-- BALANCE 206 SHEET LIABILITIES 12-- Directors 207 shares 12-- Profit & Loss 208 appropr account 12-- Deposits 209 Holding Acc 12-- Inland 210 Revenue 12-- External 211 loans 12-212 LIABILITIES SUMMARY 12-- Ratios 213 12-- Total sales and 214 services 12-- Sales 215 12-- Services 216 12-- Interest 217 received 12-- Cost of sales 218 and services - - - - 1,000,000,000. 00 1,000,000,000. 00 244,500,000.00 269,500,000.00 294,500,000.00 459,500,000.00 694,500,000. 00 8,268,356,063. 42 9,760,543,259. 90 11,380,319,923. 48 22,046,798,568. 19 35,635,555,1 52,062,266,711 52,062,266,711 41.00 .28 .28 900,000,000.00 1,125,000,000. 00 1,375,000,000.0 0 3,250,000,000.0 0 5,850,000,00 10,000,000,000 10,000,000,000 0.00 .00 .00 1,013,638.05 325,955.94 (308,045.91) (120,859.09) 133,084.60 (0.23) (0.47) 24,055,870,825 23,024,521,758 .66 .31 21,953,825,390. 96 15,955,542,842. 11 8,722,347,99 1.86 0.00 0.00 33,469,740,527 34,179,890,974 .13 .15 35,003,337,268. 52 41,711,720,551. 22 50,902,536,2 63,062,266,711 63,062,266,710 17.46 .05 .81 100.00 100.00 100.00 100.00 100.00 100.00 100.00 45.84 45.43 46.64 45.70 43.87 45.17 49.77 42.76 44.03 43.42 45.78 48.88 48.58 41.95 11.39 10.54 9.93 8.52 7.25 6.25 8.28 21.48 20.78 22.45 20.92 20.89 21.42 23.45 291 12-219 12-220 12-221 12-222 12-223 12-224 12-225 12-226 12-227 12-228 12-229 12-230 12-231 12-232 12-233 12-234 Gross profit Net Profit before tax Depreciation 78.52 79.22 77.55 79.08 79.11 78.58 76.55 51.65 53.82 55.00 62.06 67.45 69.86 58.81 1.37 1.39 1.37 1.47 1.76 1.39 1.33 18.85 19.66 20.11 22.72 24.63 25.68 21.55 31.42 32.77 33.52 37.86 41.06 42.79 35.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 6.52 7.71 6.68 5.59 5.89 8.47 8.43 27.36 26.23 28.95 26.45 26.41 27.25 30.63 1,011.62 947.45 934.00 187.23 194.42 209.06 56.84 100.00 100.00 100.00 100.00 100.00 100.00 100.00 4.75 5.91 7.42 14.25 18.82 23.82 23.82 25.89 23.77 21.66 11.68 4.24 0.03 0.03 2.49 2.67 2.73 3.82 3.22 2.31 2.31 14.94 14.63 14.28 11.99 9.82 7.93 7.93 10.31 11.32 12.11 15.87 16.46 14.77 14.77 1.88 2.28 2.59 4.38 7.91 9.51 9.51 Tax Net to Appropriation Gross Profit ratios Overhead costs Production costs Assets Assets Ratios Cash Debtors( Farmers) Movable assets Land (S.I.C. ) Fixed Assets Contingencies funds 292 12-235 12-236 12-237 12-238 12-239 12-240 12-241 12-242 12-243 12-244 Savings Account Fixed Deposits Cash balance ratios Cash balance C/F Liabilities Directors shares Profit and loss account Holding account External loans 1.20 1.39 1.71 3.84 6.58 9.91 9.91 38.54 38.03 37.50 34.19 32.94 31.71 31.71 100.00 100.00 100.00 100.00 100.00 100.00 100.00 564.79 469.38 449.95 177.53 263.46 276.14 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.73 0.79 0.84 1.10 1.36 1.59 1.59 24.70 28.56 32.51 52.86 70.01 82.56 82.56 2.69 3.29 3.93 7.79 11.49 15.86 15.86 71.87 67.36 62.72 38.25 17.14 0.00 0.00 0.00 0.00 (0.00) (0.00) 0.00 (0.00) (0.00) Inland Revenue Table No.95 FINAL EXIT PLAN DATA 12--245 FINAL EXIT DATA PLAN 12--246 GOODS & SERVICES Total Yr 1--25 Ksh Total Yr 1--25US $ 293 ITEM % on Receipt 12--247 FARM PRODUCTIONS 12--248 Crop sales 12--249 12--250 12--251 12--252 12--253 14,000,000,000 136,585,366 9 7,500,000,000 73,170,732 5 450,000,000 4,390,244 0 500,000,000 4,878,049 0 Livestock Seedlings Plots Miscellaneous land operations 22,450,000,000 219,024,390 - Stores - 12--254 12--255 12--256 12--257 12--258 Machines and tools Petroleum products Agro vet products Building Materials Motor vehicles Farm machines and Implements 12--260 Dry foods 2,500,000,000 24,390,244 2 2,925,000,000 28,536,585 2 2,445,000,000 23,853,659 2 4,085,000,000 39,853,659 3 1,445,000,000 14,097,561 1 3,520,000,000 34,341,463 2 2,500,000,000 24,390,244 2 3,335,000,000 32,536,585 2 12--259 12--261 Farm inputs 12--262 Stores Sales 22,755,000,000 222,000,000 294 - 12--263 Industrial Products 12--264 Milk products 12--265 12--266 12--267 - - - 3,000,000,000 29,268,293 2 2,500,000,000 24,390,244 2 1,500,000,000 14,634,146 1 2,000,000,000 19,512,195 1 3,000,000,000 29,268,293 2 3,000,000,000 29,268,293 2 Flour Mills Confectionaries Electricity 12--268 Building and construction materials 12--269 Water PVC pipes 12--270 Industrial Products 12--271 Services 12--272 Water charges 15,000,000,000 146,341,463 - - 12--273 6,500,000,000 63,414,634 4 4,750,000,000 46,341,463 3 22,600,000,000 220,487,805 14 8,500,000,000 82,926,829 5 5,000,000,000 48,780,488 3 11,000,000,000 107,317,073 7 Implements Hire 12--274 Handling charges 12--275 Medical services 12--276 Education Services 12--277 Crop cess 295 12--278 Transport charges 12--279 Financial services 12--280 Services 850,000,000 8,292,683 1 1,600,000,000 15,609,756 1 60,800,000,000 593,170,732 296 - 12--281 Misc sources - 12--282 Loan Repayments (Farmers) Directors contributions 12--284 Holding Accounts 11,906,919,29 6 116,165,066 8 1,000,000,000 9,756,098 1 10,000,000,00 0 97,560,976 6 12,000,000,00 0 117,073,171 8 12--283 12--285 12--286 Interest received (FDR) Miscellaneous sources income TOTAL OPERATIONS RECEIPTS 12--288 EXTERNAL FUNDS ( LOANS) 12--289 TOTAL FUNDS RECEIVED 34,906,919,296 340,555,310 - 155,911,919,29 6 1,521,091,89 6 - 25,625,000,000 250,000,000 - 181,536,919,29 6 1,771,091,89 6 - 12--287 12--290 EXPENDITURE 12--291 Production Costs - 12--292 33,987,500,00 0 331,585,366 22 9,351,900,000 91,238,049 6 Overheads 297 12--293 12--294 12--295 Kenya revenue 304,754,732 20 41,984,740,64 9 409,607,226 27 14,315,000,00 0 139,658,537 9 3,388,000,000 33,053,659 2 32,250,000,00 0 314,634,146 21 External Loans Fixed assets 12--296 Movable Assets 12--297 Total Savings 12--298 31,237,360,02 7 Total expenditure 12--299 CASH BALANCE 12--300 TOTAL FUNDS RECEIVED 166,514,500,67 6 1,624,531,71 4 - 15,022,418,620 146,560,182 - 181,536,919,29 6 1,771,091,89 6 - 12--301 BALANCE SHEET 12--302 Land (S.I.C. ) Fixed Developments 12--304 Movable assets Item % on B/S 5,000,000,000 48,780,488 8 9,315,000,000 90,878,049 15 1,454,515,956 14,190,400 2 12--303 298 12--305 12--306 Debtors Investments (FDR in bank) 12--307 Savings account 12--308 Contingency acc. 12--309 Cash 12--310 20,332,134 198,362 0 20,000,000,00 0 195,121,951 32 6,250,000,000 60,975,610 10 6,000,000,000 58,536,585 10 15,022,418,62 0 146,560,182 24 63,062,266,71 1 615,241,626 100 Total Assets 299 12--311 FINANCED BY - 12--312 12--313 12--314 12--315 12--316 Directors shares Profit & Loss appropr account Deposits Holding Acc LIABILITIES SUMMARY 1,000,000,000 9,756,098 2 52,062,266,71 1 507,924,553 83 10,000,000,00 0 97,560,976 16 63,062,266,71 1 615,241,626 100 ASSETS FORM Item % on disposable 12--317 AVAILABLE CASH 12--318 Cash 12--319 12--320 12--321 12--322 15,022,418,62 0 146,560,182 24 6,250,000,000 60,975,610 10 6,000,000,000 58,536,585 10 20,000,000,00 0 195,121,951 32 Savings account Contigency acc. Investments (FDR in bank) Total 47,272,418,62 0 461,194,328 300 74.96 12--323 OTHER ASSETS - 12--324 12--325 Debtors 20,332,134 198,362 0 1,454,515,956 14,190,400 2 9,315,000,000 90,878,049 15 5,000,000,000 48,780,488 8 Movable assets 12--326 Fixed Developments 12--327 Land (S.I.C. ) 12--328 12--329 Total Total Available For Distribution LIABILITIES FORM 12--331 Farming community 12--332 Deposits Holding Acc 15,789,848,09 1 154,047,298 25 63,062,266,71 1 615,241,626 100 12--330 12--333 Item % on Claim 10,000,000,00 0 97,560,976 Total 10,000,000,00 0 12--334 16 - 97,560,976 - Directors - 12--335 Directors shares 1,000,000,000 9,756,098 301 2 12--336 12--337 12--338 Profit & Loss appropr account 52,062,266,71 1 507,924,553 Total Total Payable ( Dispose to claimants) 53,062,266,71 1 - 517,680,651 - 63,062,266,71 1 - 615,241,626 - 12--339 DISPOSAL ORDER 12--340 Cash 12--341 12--342 12--343 83 Item % on Disposing 15,022,418,62 0 146,560,182 24 6,250,000,000 60,975,610 10 6,000,000,000 58,536,585 10 20,000,000,00 0 195,121,951 32 20,332,134 198,362 0 1,454,515,956 14,190,400 2 9,315,000,000 90,878,049 15 5,000,000,000 48,780,488 8 615,241,626 100 Savings account Contingency acc. Investments (FDR in bank) 12--344 Debtors 12--345 Movable assets 12--346 Fixed Developments 12--347 Land (S.I.C. ) 12--348 TOTAL 63,062,266,71 1 - 302 12--349 12--350 12--351 12--352 Profit & Loss appropr account 52,062,266,71 1 507,924,553 Payments & Sources Of funds Less Paid Balance 12--354 12--355 12--356 12--357 12--358 12--359 12--360 Balance Cash 15,022,418,62 0 12--353 Less Paid Deposits Holding Acc 146,560,182 10,000,000,00 0 5,022,418,620 97,560,976 48,999,206 1,000,000,000 4,022,418,620 9,756,098 39,243,108 52,062,266,71 1 (48,039,848,091 ) 507,924,553 (468,681,445 ) Directors shares Profit & Loss appropr account Savings account 6,250,000,000 (41,789,848,091 ) 60,975,610 (407,705,835 ) 6,000,000,000 (35,789,848,091 ) 58,536,585 (349,169,250 ) 20,000,000,00 0 (15,789,848,091 195,121,951 ) (154,047,298 ) 20,332,134 (15,769,515,956 ) 198,362 (153,848,936 ) 1,454,515,956 (14,315,000,000 ) 14,190,400 (139,658,537 ) Contingency acc. Investments (FDR in bank) Debtors Movable assets 303 12--361 Fixed Developments 12--362 Land (S.I.C. ) 12--363 9,315,000,000 (5,000,000,000) 90,878,049 (48,780,488) 5,000,000,000 (0) 48,780,488 (0) FINAL BALANCE (0) 304 (0) 13.0.0 PROJECT IMPLEMENTATION The project implementation shall be carried out by the directors and hence the operations will be organised as per the following details The implementation will take off on the occurrence of the following a) The financiers release the loan funds directly or as planned as per agreement to; i) The land vendors ( the purchase price) 1. Samuland Investments company ( operations funds) b) Transactions attorneys agree on a legal undertaking by all parties involved. Parties being a) The financiers b) The vendors c) Samuland Investments Company Once the above is done the following activities will be undertaken and the project will start. The operations will be carried out in six level 1) Company level ( Samuland Investments Company directors and members of think tank) 2) Project implementation level ( Implementation Board and the employees) 3) Division Level ( division heads and employees) 4) Department Level ( departmental heads and employees) 5) Sub- departmental level ( sub department heads and employees 6) Activity level ( Supervisors and employees) 13.0.1 COMPANY LEVEL ORGANIZATION Operations at the company level This is the highest level of operations and composed of the top decision makers in both the company and the project. The main authority is the Board of directors Samuland investments Company. This board has three independent sections; 1. Policy board 2. Oversight board 3. Implementation board A fourth office shall be co-ordinating the operations of the four groups especially in all matters of communication. 305 Chart No. 24 COMPANY OPERATIONS ORGANIZATION SAMULAND INVESTMENTS COMPANY code 01 SAMULAND PROJECT code 1 Board of Directors Samuland Investments Company code 10 Communication Control code 11 Oversight Board code 13 Policy Board code 12 Implementation Board code 14 COMPANY INTERESTS code 15 PROJECT INTERESTS code 16 306 13.0.2 Implementation Policy requirements This policy requires that the project implementation be done as per the following plan. These are the operations divisions of the project and are headed by a division head. Each of these divisions has a number of departments with funds allocated to each. 13.0.3 Implementation Board The executive board is part of the implementation board that oversees the day to day operations of the project. The board of directors has instructed the project operations office to have the activities initiated by the implementation board. Here the management policy is in operation. All the six project institutions are established. This plan has the following effects; 1) Head Quarter office is operational. 2) It has started to use its funds and other division heads can operate from the office allocated to them. 3) Company farms can be started 4) An effective administration is established 5) A form of treasury is in place 6) Division will ese their funds with maturity of formation being suctioned by the HQ office The next move is the establishment of an operating administrative system with powers delegation to division heads by the chief executive. The implementation will carried out by the board of directors and the employees. The activities will be divided into six grouping as per the chart above. These are the divisions Chart No. 25 PROJECT ORGANIZATION SAMULAND PROJECT Implementation Board code 14 Project interest activities code 18 Company interests activities code 17 307 Chief Executive officer code 19 Division Heads code 20 Executive Committee code 141 Operations Management Organization Code 21 Company Farms code 151 COMPANY INTERESTS code 15 Samuland Inv. Co. code 152 The main operations will be done by the executive board which is an internal organization of the Head Quarter division. Division heads are members but the quorum is chief of administration, chief of finance and the chief of supplies and stores. 308 Chart No. 26 PROJECT INTERESTS OPERATIONS ORGANIZATION PROJECT INTERESTS ORGANIZATION code 16 IMPLEMENTATION BOARD code 14 PRODUCTION code 143 ADMINISTRATION code 142 General Administration code 1421 Resources Controls code 1422 Head Quarter Operations Division code 22 Farmers Division code 23 Support services code 1431 Support Services Division code 24 Social welfare code 1432 Social services Division code 25 Stores and Supplies Division code 28 309 Materials code 1433 Company Farms Division code 26 Agriculture Division code 27 Chart No. 27 DIVISIONS OPERATIONS ORGANIZATION DIVISION OPERATIONS ORGANIZATION IMPLEMENTATION BOARD EXECUTIVE COMMITTEE Head Qtr. Operations Div. code 22 Support Services Div. code 24 Farmers Division code 23 Social Services Div. code 25 Company Farmers code 26 Agriculture Div. code 27 310 Stores and Supplies Div. code 28 13.0.4 HEAD QUARTER OPERATIONS Head quarter operations cover all operations that will see the project off the ground and that all other required operations are managed properly. It will do all activities till each division is formed and operational. The chart below shall the main departments in this division. The main services by this division are administration and finance management of the whole project. It is the main seat of the chief executive officer of the project. 311 312 Chart No. 28 COMPANY AND PROJECT ADMINISTRATION ORGANIZATION OPERATIONS ADMINSTRATION ORGANIZATION Board of Directors (S.I.C.) code 10 Implementation Board code 14 Chief Executive Officer Chief of Stores and Supplies Div. code28-1 Chief of HQ operations div. code 22-1 Chief of Company Farms Div. code 26-1 Chief of supports Div. code 24-1 Chief of Agriculture Div. code 27-1 Chief of Farmers Div. code 23-1 313 Chief of Social Services Div. code25-1 Chart No. 29 COMPANY AND PROJECT ADMINSTRATIVE STRUCTURE ADMINISTRATIVE STRUCTURE code 00 Directors code 10-2 Chairman (S.I. C.) code 10-1 Board of directors (S.I.C.) code 10 Chief Executive officer code 19 Divisions’ heads code D-1 Implementation Board code 14 Head of Division code D-1 Departments’ heads code D-2 Division Administration code 20 Sub-departments heads code D-3 Department Head code D-2 Department Administration code 201 314 Chart No. 30 DIVISION ADMINISTRATIVE STRUCTURE Division Administration structure Department Administration Chief of Division office Department’s Chiefs Office Internal Audit office Accounts Office Communications office 315 Chart No. 31 HEAD QUARTER OPERATION DIVISION COMPONENTS Head Quarter Operations Division Chief executive Officer Deputy Chief executive Officer Administration department Lands Department Head office department (HQ) Div. Internal Audit office Communications office Registry office Personnel department Paymaster General Computer control department 316 Finance Department Sacco Department HQ DIVISION Chart No. 32 HEAD OFFICE ADMINISTRATION LAYOUT PLAN HEAD OFFICE Department Head Office Deputy Chief Executive Communications Originating Companies Office No 6122 Dispatch department Chart No. 33 LANDS CONTROLL OFFICES Land Registry Lands Sales Maps and records Agriculture Lands Project Lands 317 TC Plot Chart No. 34 FINANCE DEPARTMENT LAYOUT FINANCE DEPARTMENT Chief Accountant Loans Department Company accounts External loans Internal loans Consolidated Funds Revenue Receipts Project accounts Farmer’s loans Budgets Payments Expenditure Records Books 13.0.5 HEAD QUARTER DIVISION 318 Head Quarter Division is one the project divisions. It is the nerve centre of the project for it will house all other divisions head offices or main offices. This division has these major activities;1) Being the pay master of the project and company 2) Hold the consolidated funds accounts 3) Control all finances and budgets 4) Control the main computer server 5) Be the center of all communications 6) The employer 7) Coordination of all activities 8) Custodian of all records 9) Lands and Sacco activities are part of this division Chart No. 35 Head Quarter Division HEAD QUARTER DIVISION Administration Head Quarter Subsidiaries Sacco Business Loans Divisions HQ Lands department Head Quarter Division HQ General registry Head Office No 612 319 13.0.6 PROJECT OPERATIONS MANAGEMENT ORGANIZATION PLAN Chart No 36 General Summary Operations Management plan A summary of the implementation plan for the project at the company level (HQ data) 1) Board of Directors (Samuland Investments Company) 4) IMPLEMENTATION Board 2) POLICY BOARD 3 VERIFICATION (oversight) Board 1/1 ADMINISTRATIN 4/1) PROJECT 4/3) FINANCE 4/2) INVESTMENTS 5) Settlements 6) Social Welfare Farming 7) Production Audit Industries Statistics 320 Education Accounts Support Services Budgets Banking and Financing 3) Operations centres Budgets 321 13.0.7 GENERAL ADMINISTRATION LAY OUT FORMART (HQ Division) The general administration office shall comprise of these basic offices Chart No. 37 administration office Administration office basic layout Accounts department Chief Executive Personnel office Procurement depart Communications Internal Audit Dispatch department Computer centre Chart No. 38 APPLICANTS’ REGISTRY General Registry Personnel Activities Company/Project activities Project Empl. Farmers Activities Trades activities Trades and Business Company Empl 322 Trades and Professions Farmers Empl Trader Empl 13.0.8 PROJECT COMPUTER SYSTEM The project computer system means the various recording and accounting systems that will be used by the project with the help of modern information technology. The project has very many areas that need different applications software such that some will be tailor made to suit our requirements. The system has been divided into ten sections with reference to the main activities of each section. Data contents and the reports to be generated have been considered. The sections are as follows: 1) Registry. This is the main project centre where first information about every project or company details will be recorded. The member’s documentation will be done at this point hence the software needed will require to have all facilities that detail personal details of every person in the project. The persons registration covers farmers, employees, and both creditors and debtors of the project. Chart No.39 COMPUTORS SYSTEM LAYOUT PLAN Applicants Registry No 1 Banking registry No 4 Supplies Stores No 3 Finance Registry No 5 Administration No 6 Schools Registry No 9 Produce Collections No 8 323 Lands Registry No 2 Sales and Marketing No 7 Computer control No 10 Chart No.40 COMPUTOR CONTROL (10) COMPUTER CONTROL No 10 Computer Software No 101 Networks data No 105 Computer Hardware No102 Security controls No 103 Back Ups No 104 Project Reports No 106 Table No 96 Funds Allocated to Head Quarter HEAD QUARTER Funds allocated OPERATIONS ACCOUNT Lands Overheads 852,750,000 Fixed Devlopmnts 154,000,000 Movable Assets 51,250,000 324 Operations funds Total Project 442,000,000 1,500,000,000 325 Table No 97 Head Quarter division data 13--0 PROJECT IMPLEMENTATION No. 13--1 MANAGEMENT AND OPERATIONS ORGANIZATION 13--2 OPERATIONS ORGANIZATION PLAN 13--3 The operations shall be divided as: 13--4 1) Head Quarter operations 13--5 13--6 a) Administration department b) Lands department 13--7 13--8 c) HQ Subsidiaries department d) Farmers department 13--9 EXTERNAL FUNDS FINANCING 13--10 Centre Name 1) Head Quarter operations 13--12 HEAD QUARTER OPERATIONS ACCOUNT - - - Acreage Lands Overheads Fixed Devlopmnt s Movable Assets 13--11 27 Funds allocated for Hq operations ( External funds) 326 - 852,750,000 154,000,000 51,250,000 13--13 13--16 13--17 a) Administration department AMINISTRATIVE ANALYSIS (Centres) Project Administration ( HQ) Samuland Projects Social Welfare services 13--18 13--19 13--20 13--21 13--22 Agriculture Services Head Office Industrial productions Services production Personnel Department 13--14 13--15 All matters of security coordination communication and Activity tranquillity in the project Departments at Hq HQ To deal with matters of social benefits to the project community eg education and health HQ To take care of all farm matters HQ Various centres points Various centres points Department at Hq 327 Chart No. 41 PERSONNEL DEPARTMENT Personnel department Samuland Investments Company Farmer’s employees Company employees Traders Employees Project employees 13.0.9 PERSONNEL AVAILABILTY All our personnel requirements are properly catered for from our members. Where we need a person not available from our community, the labour market will provide. These are the initial personnel’s that we shall immediately need after acquisition. ❖ Accountants ❖ Paramedical personnel. ❖ Agriculturalists ❖ Many other technical people to fill the gaps of the main offices and operation centres. Any type of professional that is not available and is required shall be recruited from the labour market. For this purpose, the management is divided into groups as follows: ❖ Management department. ❖ Finance department. ❖ Agricultural Department. ❖ Social services. As at this moment we have the following persons available. 328 • • • • • • • • • • • • • • • • • • • Finance department Accountants Auditors. Accounts clerks. Ex- bank managers. • Several finance competent persons in specialized fields such as insurance and taxation matters. Productions. Agriculturalists Crop production Livestock-management. Research personnel Soil Quality control Marketing and sales General areas. Purchasing and stores Transport Motor vehicle and workshop operations. Traders in various fields of operations. Security persons (Ex-army, police.) In general, any types of experienced persons are available. 1) Educationalist for all schools. 2) Teachers from nursery schools level through primary Secondary. Teachers for these institutions are available. 1) Technical 2) Specialized learning. 3) Churches (morals) From our members we have Church pastors, priests, nuns, Medical-field - doctors, nurses, pharmacists, and medical technicians. The table below shows the type and number of personnel required for the various departments’ works 329 Table No.77 Personnel Required By Company and Project 13--23 HQ LANDS OFFICES 13--24 Hq SUPPORT AGRICULTURE COMPANY FARMS SUBSIDIARIES OFFICE STORES SERVICES PUBLIC EDUCATION HEALT SUPPLIES 13--25 13--26 13--27 Accountants Accounts Clerks 4 1 10 2 3 1 2 2 1 2 1 1 5 4 6 4 4 1 1 3 1 1 13--28 13--29 Administrator Agriculture field officers 1 3 10 2 3 3 5 13--30 Agronomists 13--31 AI Technician 13--32 Askaris 5 13--33 Auditors 13--34 Bakers 3 3 5 10 9 7 20 2 15 13--35 Banking Clerks 13--36 Bursars 4 5 330 13--37 Carpenters 13--38 Cashiers 2 2 casual Labourers 13--40 Chefs 15 1 4 5 3 2 12 2 10 50 60 40 45 15 10 13--39 5 50 3 13--41 13--42 13--43 13--44 13--45 13--46 Civil Engineers Clinical officer Computer maintenance Computer operators Computer Administrators Cooks 3 2 1 6 5 2 1 12 25 13--47 Crop researchers 13--48 Doctor 2 13--49 Drawings clerks 13--50 Drivers 1 5 1 1 1 3 Electrical Engineers 13--52 Electricians 3 3 2 3 13--51 2 2 3 331 1 13--53 13--54 13--55 13--56 13--57 Environment officers Fabricators metal Fabricators wood Finance officer Firemen 3 4 25 6 30 1 1 5 13--58 13--59 13--60 13--61 13--62 General Labour Hotels managers Internal Auditors Laboratory Technicians Lecturers 4 2 25 25 1 5 2 20 20 15 3 2 4 2 1 1 2 1 50 13--63 13--64 13--65 13--66 13--67 Librarian (Records) Loans officers Lorry drivers M/v Mechanics Milk Plant operators 2 1 1 2 2 3 4 2 2 6 1 10 332 4 13--68 Nursery Sch Teacher 13--69 Nurses 30 7 13--70 Personnel Office 13--71 Pharmacist 1 13--72 Plant Mechanics 13--73 Plant nurseries attendants 13--74 Plant Operator 13--75 Plumbers 13--76 13--77 13--78 13--79 13--80 4 Pri. Sch Teacher Printing Press Operators Public Health officer Purchasing office Range managers 2 5 3 5 3 2 4 1 3 2 2 80 5 2 1 3 3 1 1 13--81 Receptionists 13--82 Roads Foremen 2 1 1 333 2 2 2 2 4 2 3 13--83 13--84 13--85 13--86 13--87 13--88 13--89 13--90 13--91 13--92 Roads technician Rooms Attendants sales and marketing officer Sales Clerks Sec. Sch Teacher Security officer Slaughter House operators Soil Technicians Special Needs Teacher Statisticians 3 6 3 50 2 1 1 1 3 1 Store clerk 2 2 4 2 2 1 Storeman 1 13--95 1 10 1 13--94 1 10 2 13--93 6 Supervisors Tractor Drivers 13--97 Trades officer 3 3 5 5 1 13--96 2 334 3 3 13--98 Veterinary doctors 13--99 Veterinary Field officers 13--100 Waiters 2 Water foreman 13--102 Welders 3 5 2 1 13--101 3 5 13--103 TOTAL 62 13--104 13--105 13--106 13--107 13--108 Chief Officers Chief Executive office Deputy C.E.O. Division Heads Deputy Division officer. 17 25 170 173 283 155 369 1 1 1 1 1 1 1 1 1 1 2 2 3 2 2 2 2 3 4 3 4 3 3 4 2 2 6 4 6 4 4 13--109 Departmental Head 13--110 Deputy Departmental Head 335 1 13--111 Sub Department head 13--112 Deputy Sub Depart. Head 13--113 Seniors 13--114 Total Force 5 1 2 5 4 5 2 2 2 2 4 6 3 10 8 6 16 8 12 24 17 29 20 18 78 25 37 194 190 312 175 387 336 2 Table No. 99 Salary Scale Data 13--117 SALARY SCALES 13--118 13--119 Ksh ( Basic) Ksh ( Maximum) (Amount per month) US $ ( Basic) US $ (Maximum) Increment P.a. % 12.5 13--120 Scale 1 10,000.00 20,000.00 98 195 20,001.00 37,500.00 195 366 37,501.00 47,500.00 366 463 47,501.00 60,000.00 463 585 60,001.00 85,000.00 585 829 85,001.00 110,000.00 829 1,073 110,001.00 150,000.00 1,073 1,463 150,001.00 175,000.00 1,463 1,707 175,001.00 225,000.00 1,707 2,195 225,001.00 450,000.00 2,195 4,390 450,001.00 600,000.00 4,390 5,854 600,000.00 1,500,000.00 5,854 14,634 13--121 Scale 2 10 13--122 Scale 3 6.5 13--123 Scale 4 8.5 13--124 Scale 5 6.5 13--125 Scale 6 6.5 13--126 Scale 7 7.5% 13--127 Scale 8 5 13--128 Scale 9 4.5 13--129 Scale 10 7.50 13--130 Scale 11 6.5 13--131 Scale 12 5.5 337 Table No.100 Annual Salary Increases 13--132 13--133 13--134 13--135 13--136 13--137 13--138 13--139 13--140 13--141 13--142 13--143 13--144 13--145 13--146 Yr 1 Yr 2 112.5 Yr 3 110 106.5 Yr 4 Yr 5 108.5 106.5 106.5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Scale 1 10,000 11,250 12,656 14,238 16,018 18,020 20,273 22,807 25,658 28,865 20,001 22,001 24,201 26,621 29,283 32,212 35,433 38,976 42,874 47,161 37,501 39,939 43,333 47,017 51,013 55,349 60,054 65,158 70,697 76,706 47,501 51,539 54,116 56,821 59,662 62,645 65,778 69,067 72,520 76,146 60,001 63,901 68,055 72,478 77,189 82,207 87,550 93,241 99,301 105,756 85,001 90,526 96,410 102,677 109,351 116,459 124,029 132,090 140,676 149,820 110,001 118,251 127,120 136,654 146,903 157,921 169,765 182,497 196,184 210,898 150,001 157,501 165,376 173,645 182,327 191,444 201,016 211,066 221,620 232,701 175,001 182,876 191,105 199,705 208,692 218,083 227,897 238,152 248,869 260,068 225,001 241,876 249,132 256,606 264,305 272,234 280,401 288,813 297,477 306,401 450,001 479,251 491,232 503,513 516,101 529,004 542,229 555,784 569,679 583,921 600,000 633,000 642,495 652,132 661,914 671,843 681,921 692,150 702,532 713,070 Scale 2 Scale 3 Scale 4 Scale 5 Scale 6 Scale 7 Scale 8 Scale 9 Scale 10 Scale 11 Scale 12 338 Graphic No. 24 Salary increase tread scales 1 to 6 Graphic No. 24 Salary increase for salary scales 1 to 6 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Scale 1 Scale 2 Scale 3 339 Scale 4 Scale 5 Scale 6 Graphic No.25 Salary increase treads scale 7 to 12 Graphic No.25 Salary increase for Salary scales 7 to 12 1000000 900000 800000 700000 600000 500000 400000 300000 200000 100000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr Yr 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Scale 7 Scale 8 Scale 9 340 Scale 10 Scale 11 Scale 12 Chart No.42 PROJECT ACCOUNTS Project Division accounts Disbursements Funds Account No 581 HQ Operations No 5811 Company Farms No 5814 Head Office No 5812 Supplies No 5815 Social welfare No 5813 Farmers Division 341 Agriculture Division Table No. 101 HQ offices data and funds 13--156 Farmers Data HQ 13--157 13--158 13--159 13--160 13--161 13--162 13--163 13--164 Lands Allocations Finance Company Investments Operating funds Sales proceeds records Loans Repayments Accounts reconciliation Production centres HQ Department at Hq EXTERNAL FUNDS FINANCING 13--166 Centre Name HQ HQ HQ HQ HQ The grouping done for allocation to farmers Farming, industries and material sourcing 13--165 - - - Acreage Lands Overheads Other Independent offices attached to HQ 13--167 b) HQ Subsidiaries department 13--168 Sacco Banking sector of the project and beneficiary Financing tades in the trading centres 10,800,000,000 13--169 Project TC Business Loans 13--170 Lands Purchase Account. 33,300,000 - Fixed Devlopmnts Movable Assets Operations funds - 27,000,000 2,439,700,000 2 - - - 500,000,000 - - - - - 852,750,000 154,000,000 51,250,000 442,000,000 1 - 27,000,000 2,439,700,000 2 HEAD QUARTER OPERATIONS ACCOUNT 13--172 Sacco - 10 13--171 27 342 33,300,000 13--173 Project TC Business Loans - 343 - - - 500,000,000 Chart No. 43 Support Services Division SUPPORT SERVICES DIVISION Civil Works HQ Water department Repairs works and Workshops Dams and storage tanks Buildings department Water delivery works Roads department Transport department Irrigation water Domestic uses water Prinying press Trading Centres water Sewages department 344 Table No. 102 Support Services 13--174 13--175 13--176 13--177 13--178 13--179 Project Civi Works (HQ) 54,750,00 0 165,900,00 0 275,000,000 15 - 13,450,00 0 7,500,000 59,750,00 0 44,300,000 125,000,000 500 - 2,150,000 75,000,000 40,500,00 0 47,350,000 165,000,000 - - 19,000,00 0 20,000,000 36,750,00 0 109,250,00 0 185,000,000 150 - 40,250,00 0 3,225,500,00 0 63,500,00 0 70,750,000 3,400,000,00 0 15 - - 27,500,000 16,500,00 0 6,000,000 50,000,000 1 - 250,000 35,000,000 9,250,000 5,500,000 50,000,000 2 - - 23,500,000 10,000,00 0 6,500,000 40,000,000 25 - - - - - - 25 - - - - - - - - - 11,250,00 0 13,750,000 25,000,000 Building Dams & water systems Irrigation System 13--181 Project TC Water Supply 13--184 18,000,000 Roads Domestic System 13--183 36,350,00 0 Project Workshops 13--180 13--182 - Car Parks Sewages Project Printing Press 345 13--185 Transportation Department - 46,900,00 0 4,500,000 40,000,00 0 58,600,000 150,000,000 Table No. 103 Company farms 13--186 Company Farms 13--187 Bio Fuels Farms Crop Production Division 13--189 Company Livestock Farm - 61,250,000 113,000,000 33,000,000 142,750,000 350,000,000 28,200 - - 14,000,000 19,000,000 12,000,000 5,750 - 300,000 72,000,000 30,500,000 222,200,000 325,000,000 5,750 - 3,250,000 34,500,000 45,750,000 36,500,000 45,000,000 13--188 346 120,000,000 Chart No. 44 COMPANY FARMS DIVISION COMPANY FARMS HQ Livestock farms Crops farms Bio fuel farms Research farms section Chart No. 45 STORES AND SUPPLIES LAYOUT Stores and Supplies Division Industries Stores Agro Industries Light Industries 347 Chart No. 46 Stores and Supplies Operations organization Stores and Supplies Departments Stores Agro-Industries Light industries Dry foods Wood works Daily Green foods Metal works Flour mills Farm inputs Mechanical workshops Canning Machines and tools Petroleum products Drugs Power supply Slaughter P.V. C. factory Bio fuel Bakeries Implements Vehicles and tractors 348 Chart No.47 GENERAL GOODS MOVEMENTS Goods Movements Farm Produce Collection centres Park Houses Industries Markets Industries Finished goods Consumers Stores External Sources Public Lands 349 Lands data Land sales Trading Centres Lands Lands Registry No 2 Agriculture lands Project and company The materials and goods produced in the project area will be sourced from the following area: 1) From the farms 2) From industries 3) From external supplies 4) Lands from the Head quarter land sales and allocation office The movement of such goods or materials shall be moved as indicated only Chart No. 48 SUPPLIES CONTROL Supplies Stores Requisitions no 31 Stores 350 Internal Supplies External Supplies Foods Light Industries Agro-industries Materials Park Houses Farm inputs Chart No. 49 STORES CONTROL Supplies Stores Food Stores Dry Food Stores Farm Inputs Animal feeds 351 MATERIALS Implements Seeds Green Food Stores Veterinary Drugs Fungicides & fertilizers Chart No. 50 INTERNAL SUPPLIES SOURCES Internal Supplies 352 Motorized Machines Constructions and building materials Light Industries Agro- Industries Dairy Wood W/s Flour Mills Blacksmit h Park Houses No 333 External consignments National consignments Canning Mechanical Bio fuels Sales / Marketing Power supply Slaughter Bakeries 353 Inward consignments Table No.104 Stores and supplies Data 13--190 13--195 Stores and Supplies operations Account Light Industries Depart Machinery & Tools Stores Petroleum Products Stores Mechanical Workshops Wood Workshops 13--196 Timber sawmills 13--197 P.V.C.Pipes 13--191 13--192 13--193 13--194 Project Power Supply 13--199 Agro-Industries - 59,450,000 250,000 - 300,000 60,000,000 - 20,150,000 2,500,000 8,500,000 8,850,000 40,000,000 1 - 13,300,000 11,300,000 8,750,000 11,650,000 45,000,000 2 - 1,950,000 3,700,000 15,000,000 6,850,000 27,500,000 5 - - 10,600,000 12,500,000 14,400,000 37,500,000 2 - - 4,250,000 10,000,000 8,250,000 22,500,000 4 - 1,750,000 4,750,000 19,000,000 9,500,000 35,000,000 2 - - 4,250,000 11,500,000 9,250,000 25,000,000 25 - - 16,050,000 56,000,000 - 6,700,000 - 6,250,000 7,050,000 20,000,000 - - - - - - 2 - - 8,750,000 16,750,000 9,500,000 35,000,000 2 - - 1,000,000 6,500,000 5,000,000 12,500,000 2 - 750,000 1,100,000 1,000,000 7,150,000 10,000,000 25 - - 2,000,000 - 10,500,000 12,500,000 2 - - - - - - 13--198 13--200 Bio fuel Industries 13--201 Dairy Produce 13--202 Flour Mills 13--203 Bakeries factories 13--204 13--205 27,950,000 100,000,000 Slaughter Houses Canning Factories 354 13--206 Farmers Stores H/O 13--207 Dry Foods stores 13--208 Green Foods Stores - 47,250,000 13--209 55,000,000 124,000,000 498,750,000 725,000,000 - - 7,750,000 - 14,750,000 22,500,000 - - 4,250,000 2,250,000 11,000,000 17,500,000 - - 250,000 1,000,000 3,750,000 5,000,000 Drugs Stores 355 Chart No. 51 SOCIAL SERVICES SOCIAL SERVICES DIVISION Education Department Public Health department Community health centres Adult Education Advanced Learning Institutes Hospitals Nursery Schools Cemeteries Primary Sch. Sports Complex centres Secondary Sch Recreation HQ Technical Sch Special Needs Sch Community Halls 356 Chart No. 52 Education department EDUCATION DEPARTMENT DATA Students Data 1 Employees Data Accounts Data Revenue Data Fees Expenditure Assets Data Liabilities data 357 358 Table No 105 Social Services 13--210 Social Welfare operation acc 13--211 Samuland Ed..Department Advanced Learning Institutes 13--213 Adult Education Depart 13--214 Nursery Schools - 1,500,000 31,000,000 31,250,000 23,750,000 87,500,000 - 40,750,000 - - 9,250,000 50,000,000 - - - 2,500,000 12,500,000 15,000,000 5 - 1,000,000 3,750,000 500,000 4,750,000 10,000,000 50 - - 5,750,000 4,750,000 4,500,000 15,000,000 75 - - 14,000,000 31,000,000 10,000,000 55,000,000 125 - 1,250,000 36,500,000 45,750,000 16,500,000 100,000,000 30 - 500,000 19,000,000 12,250,000 13,250,000 45,000,000 45 - - 33,500,000 25,500,000 16,000,000 75,000,000 13--212 13--215 Primary Schools 13--216 Secondary Schs 13--217 Special Schs 13--218 Technical Sch. 13--219 Public Health 13--220 Community Health 13--221 Hospitals 13--222 Cemeteries 13--223 Samuland Recreation HQ - 1,500,000 2,500,000 1,500,000 9,500,000 15,000,000 10 - 250,000 5,500,000 1,500,000 7,750,000 15,000,000 50 - 7,000,000 27,750,000 40,750,000 35 - - 1,500,000 - 3,500,000 5,000,000 - - 1,250,000 1,500,000 4,750,000 7,500,000 359 24,500,000 100,000,000 13--224 13--225 13--226 Sports Complex 50 - - 3,500,000 - 1,500,000 5,000,000 15 - 1,750,000 5,750,000 7,250,000 5,250,000 20,000,000 50 - - 8,000,000 3,500,000 3,500,000 15,000,000 Community Hall Churches 360 Chart No.54 AGRICULTURE DIVISION SALES AND MARKETING (7) AGRICULTURE DIVISION Extension Services department Implements Hire Sales & Marketing services Local Markets Research and developments Crops developments Collection centres National markets Livestock Developments Parking Houses Export markets Quality and Quantity control Sales Documentations Seedlings Nurseries 361 Chart No. 54 SALES AND MARKETING (7) Sales and Marketing Data Production Data Markets Data Clients Data Industrial Products Data Consignments type Invoices Agro Industry Prices Data Farm Products Data Charges Data Crops Data Sales Documentations Livestock Data 362 Sales statements PRODUCE AND COLLECTION CENTRES (8) Chart No. 55 collection centres COLLECTION CENTRES Collection centres data Park Houses Clients Data Products data Quantity Data Quality Data 363 364 Table No.106 agriculture division 13--227 Agriculture Operation Account 13--228 Agriculture Department (Farming) 13--229 Produce Centres 13--230 13--231 - 37,750,000 79,750,000 18,000,000 39,500,000 175,000,000 - 23,500,000 2,000,000 - 7,000,000 32,500,000 5 - - - 1,500,000 3,500,000 5,000,000 5 - - 10,000,000 4,500,000 8,000,000 22,500,000 - - 500,000 34,000,000 8,000,000 42,500,000 - - 13,750,000 16,250,000 7,500,000 37,500,000 - - 2,500,000 2,500,000 5,000,000 - - 13,000,000 29,000,000 8,000,000 50,000,000 7,750,000 12,500,000 Parking Houses Project Hire Implements 13--232 Agriculture Research Division 13--233 Quality Control Centre Livestock Development & sales 13--235 Marketing and Quantity Control 13--236 Trading Centres plots - 13--234 300 - - 365 - 2,750,000 - 2,000,000 - - - - Table No 107 Farmers Division 13--237 13--238 13--239 13--240 13--241 13--242 13--243 13--244 c) Farmers department Farmer Group 10A 3,250 - - 112,125,000 110,500,000 52,375,000 275,000,000 1,090 - - 33,525,000 70,350,000 21,125,000 125,000,000 1,060 - - 36,570,000 36,040,000 27,390,000 100,000,000 1,832 - - 63,204,000 62,288,000 34,508,000 160,000,000 2,065 - - 71,242,500 81,210,000 57,547,500 210,000,000 1,850 - - 63,825,000 62,900,000 58,275,000 185,000,000 1,820 - - 62,790,000 67,280,000 44,930,000 175,000,000 1,645 - - 56,752,500 44,415,000 48,832,500 150,000,000 1,382 - - 47,679,000 40,314,000 42,007,000 130,000,000 1,085 - - 37,432,500 29,295,000 53,272,500 120,000,000 Farmer Group 10B Farmer Group 101 Farmer Group 102 Farmer Group 103 Farmer Group 104 Farmer Group 105 13--245 Farmer Group 206 13--246 Farmer Group 207 13--247 Farmer Group 208 366 13--248 13--249 13--250 13--251 13--252 13--253 13--254 Farmer Group 209 1,447 - - 49,921,500 45,069,000 45,009,500 140,000,000 1,985 - - 68,482,500 65,595,000 50,922,500 185,000,000 1,445 - - 49,852,500 39,015,000 46,132,500 135,000,000 1,590 - - 54,855,000 46,480,000 48,665,000 150,000,000 1,282 - - 44,229,000 34,614,000 46,157,000 125,000,000 1,275 - - 44,425,000 36,050,000 44,525,000 125,000,000 2,518 - - 86,871,000 82,986,000 90,143,000 260,000,000 Farmer Group 210 Farmer Group 311 Farmer Group 312 Farmer Group 313 Farmer Group 314 Farmer Group 315 Table No. 108 Lands Department 13-d) Lands 255 department 13-- Lands Purchase 256 Account. 13-- TOTAL FUNDS 257 AT HQ OFFICE 10,800,000,000 10,800,000,000 - - - - 10,804,198,914 18,054,925,054 890,353,867 1,142,231,096 1,037,251,308 4,198,276,425 Table No.109 Risks and mitigations 367 13--258 13--259 13--260 13--261 13--262 13--263 13--264 13--265 13--266 13--267 13--268 Project Implementation order Possible Project Risks 1) Financial risks a) Funds availability b )Available funds application c) Loans repayment i) Instalments from the farmers ii) Repayments by project divisions iii) repayments to the financiers 2) Management risks a) At directors level 13--269 b) At Management level 13--270 c) At divisions and department level 13--271 d) At process level 13--2723) Operations risks 13--273 a) Availability of resources 13--274 i) Land 13--275 ii) State support Delays in funds and available in inappropriate amounts causing delay in implementation s planned funds misallocation due to inconsistent funds availability or misappropriation Specifically commitment to the financiers Timely failure of repayment of funds, and materials issued to farmers Project sections failing to meet their allocated repayment quota Failure to repay the commitment instalment t by company to the financiers. Directors failing to follow regulations as per the established boards and policies failure by management to implement directives as directed due to negligence or communication failure same as (b) same as (c) Reasonable availability and not below economical or operational level reasonable size to warrantee use of project resources Operations and activities legal and of national benefit 368 13--276 13--277 13--278 13--279 13--280 13--281 13--282 13--283 13--284 13--285 13--286 13--287 13--288 13--289 13--290 13--291 13--292 13--293 13--294 13--295 13--296 iii) Appropriate Legal and hazel free transactions and timely authorization and documentation b) Availability of persons to operate efficiently all the project processes personnel c) Availability of farm materials envisaged useful to faring activities in sufficient amounts and inputs prices d) Availability of All essential materials or services needed in the project. support services i) Water for irrigation and domestic use ii) Power domestic and industrial use iii) Efficient and increased quality and quantity production Technology iv) internal and external operations Communication v) Production Goods and services produced by the project and company 1) Marketable and fit as per consumer needs Quality produced 2) Amount required to avoid waste Quantity produced 3) Designed to appeal to consumers desires Marketability vi) Produce Outlets for goods and services produced outlets and markets Major Project assumptions 1) Financial risks a) Funds availability i) That the external funds will be available as applied for lump sum ii) Timely revenue will be available to finance the internal funding b )Available funds application i) Funds will used as per period allocations and budgets ii) there will not be any undetectable misuse 369 13--297 13--298 c) Loans repayment i) Instalments from the farmers 13--299 ii) Repayments by project divisions 13--300 iii) repayments to the financiers 13--301 d) Financial crisis i) The farmers output will be enough to repay and have a residue amount ii) same as (i) iii) will produce enough with a residue enough to cover any deficit in (i) and (ii) i) That there will not be a financial crisis big enough to affect the operations of the project significantly 13--302 2) Management risks 13--303 a) At directors level a) Directors will stick to the project policies and mission objectives 13--304 b) At Management level b) Will act as per project objectives and directions of the directors 13--305 c) At divisions and c) That the required calibre will be available department level 13--306 d) At process level same as © 13--3073) Operations risks 13--308 a) Availability of That planned requirements will be available resources 13--309 i) Land Will be available in desired sizes and locations with fair prices 13--310 ii) State support is available as this project will have a positive social impact support 13--311 iii) Appropriate That transactions will be carried out smoothly in all the relevant offices and timely authorization and government or private. documentation 13--312 b) Availability of That the employees and workers will be available from the labour market personnel in sufficient numbers and calibre 13--313 c) Availability of farm That the stores will be managed efficiently with proper and timely inputs inventories 13--314 d) Availability of support services 13--315 i) Water Enough water for all purposes based on an agriculture farming system where enough rainfall is available say 1200mm annual rainfall area ( 13--316 ii) Power Enough to serve both domestic and industrial needs. 370 13--317 iii) To be available for all fields in the project iv) Modern communication technology to be implemented v) Production 1) To be produced to meet international set standards Technology 13--318 Communication 13--319 13--320 Quality produced 13--321 2) Enough to cover domestic markets and industrial uses, 3) To be produced, packaged, stored and delivered to markets for consumers vi) Produce Local area open markets, national markets and export markets available in a consistent manner Quantity produced 13--322 Marketability 13--323 outlets and markets 371 Table No 109 Mitigations 13--324 13--325 13--326 13--327 13--328 13--329 13--330 13--331 13--332 13--333 13--334 13--335 13--336 13--337 13--338 13--339 13--340 13--341 13--342 13--343 13--344 13--345 13--346 13--347 13--348 13--349 Risks Mitigations 1) Financial risks a) Establish a finance department i) to control all funds in the project with 1) Company funds department 2) Project divisions funds 3) Revenue department 4)Farmers accounts department 5) Internal Audit department 6) Statistics department 7) Investment Department 2) Management risks a) Establish duties and responsibilities chain of operations b) establish a chain of command and delegation of power regulations c) Draw operations regulations 3) Operations risks Establish offices and centres for each operation or need 1) Lands i) Lands registry ii) Lands sales section 1) Agriculture lands 2) Trading centres plots 3) Lands Record 4) Lands account section 2) Survey Section i) Planning 372 13--350 13--351 13--352 13--353 13--354 13--355 13--356 13--357 13--358 13--359 13--360 13--361 13--362 13--363 13--364 13--365 13--366 13--367 13--368 13--369 13--370 13--371 13--372 13--373 13--374 13--375 13--376 13--377 ii) Survey iii) Allocations Section iv) Records 2) State support 1) Establish administrative centres for i) Chiefs and their assistants ii) Centres police services iii)Establish an office to liaise with a) Labour matters b) Environment issues c) Taxations d) Import and export issues e) All other state issues required 3) Personnel department ( Liaison with Labour office) i) To deal with all employees in the project matters 1) project employees 2) Company employees 3) Farmers employees 4) Employees in the commercial area 5) Domestic employees 6) Salaries and wages equalizations to all 7) All employees welfare 4) Availability of farm inputs and support services a) Establish a division to provide all administrative and security needs i) Administration department ii) Lands department iii) Farmers accounts department iii) Finance department 373 13--378 13--379 13--380 13--381 13--382 13--383 13--384 13--385 a) Sacco services b)Trade loans c) All accounts department b) Establish a division with departments for all support needs c) Establish a supplies division with departments for the required goods d) Establish a division to provide all the social needs e) Company farms division f) Agriculture division Table NO. 111 LOGFLAME SAMULAND PROJECTS LOGFLAME Objectives Narratives Indicators Source of measurements 374 Assumptions Long term Objectives A ) Acquire land for project operations B ) Settle farmers on the lands C ) Establish i) Commercial cents ii) Farming support systems 1) Land to be bought , 1) Purchased land enough for 2) Lands allocated to projected needs various uses ( farmers 2) Settle all farming and project operations) applicants 3) Operational trading 3) Trading and centers going on with industrial centers trades with: 4) Available water for all a) Water systems, applications, useable roads network, roads, farmers on their b) Financial farms operating. services 5) Presence of an c) Effective organized management management team implementing organization project policies and controls. The operations office to be the coordinating centre for all A) Establish an operations, this shall be operational Project Head Office with Head office with the 1) Land offices with following sections survey 1) Administration department, 2) Lands office allocations and 3) Finance office registry 4) Stores and 2) Finance office supplies with a treasury and accounts department Short term objectives 1) Physical presence of a head quarter building. Felt and proved by operations therein for project activities 2) Lands office with staff on the ground and in the office doing lands work 375 1) Documentary proof of land so purchased 2) Physical allocation and occupation of lands allocated by farmers and company operations evidence on the project 3) Physical confirmation of activities in trading centers 4) Reliable water in storage dams and flowing to the users 5) Evidence of consistent power supply to users 1) That the funds are available in sufficient amounts and in time from both the financiers and generated revenue from operations. 2) Farmers are willing to work as guided by the project. 3) The management has provided the farmers with the operations requirements both financial and materials, technical and needed health facilities 4) The management has provided the farmers with an outlet market for farm produce. 1 ) The required personnel will be 1) Administrative available in both quality and effectiveness of the number Head office 2) The directors employees, organization farmers and all other stake 2) Level of work holders will cooperate in the attained with the time implementation of the project table of 3) The required funds and implementation materials will be available on 3) Efficiency and time convenience of operations in the finance 5) Support offices and operations centers 3) Stores for goods and all required materials 4) Water works with storage and delivery systems to all users 5) Establishment of roads network and a buildings department Expected Results a) Settled farmers b) Operational commercial centers c) Productive company farms d) Industrial centers for value adding farmers produce e) Satisfaction to the stake holders 1) The farmers will feel the effects of the efforts they have made with directors help as directors feel effects of financiers helping hand in the project. General community will feel the changes brought in by the project 2) Famers will enjoy a changed life style and 3) Physical monetary operations activities going on at the finance office 4) Availability of supplies and materials need in the project 5) Physical presence of water in dams and delivery systems and usable roads In all cases the indicators will be: a) Level of farm and industrial output b) Quality of output c) Level of savings made 1) The spending d) Education department ability of the data on schools farmers will be e) Health services data improved and f) Life style changes hence more money indicators as searched used increasing level and value of transactions per farmer 2) Life style will change and improve positively 3) The level of individual monetary value 376 In all cases the assumptions are as follows: a) The funds will be available to cover all services and operations. b) The farmers will embrace the plan and implement it willingly c) The company will provide the facilities as planned and as per milestones Activities i) Formation of sponsoring company ii)Funds sourcing iii) Recruitment of farmers iv) Land purchase v) Settlement vi) Establishment of operations centers vii) Exit plan cost of living will be lowered for them 3) Company shall produce and contribute to national economy 4) Stake holders especially the financiers will feel the satisfaction as their money will have been used well for the benefit of mankind a) The formation of a sponsoring company based on: i) People with same mind desires goals and objectives and same aspirations to help others b) A willing financier with a program more humanitarian will be increased and indicated by the savings account held by finance department data base 4) The level of food production will increase hence surplus for sale 5) Education level improve as all children will be required to be in school. A)Registration certificates issued by relevant authority B) Funding documents as executed C) Recruited members register and data D)Land registration documents and planned land use plan E) Established operations centres. 1 2 3 4 a) The registration proof from the state office ( registrar of companies Kenya) b) The financier shall be external or internal depending on the availability of a willing funding source c) The applicants for farming or the 377 5 6 Most important assumption is availability of funds and land big enough for planned operations Competent management and employees for the implementation and operations of the project The farmers support for the project and cooperation of all stake holders as from day one The financiers giving the project a grace period and enough time to repay the loans The markets to remain stable and there is a political and economic stability to enable the project operations to go on without any hindrances. than commercial c) To recruit farmers from among the needy with any kind of discrimination d) Look for any viable and affordable land big enough for the project needs. e) Settle farmers on parcels of land as planned and provide them with required moral, education and material help f) Establish all the support facilities needed by the project for proper and efficient system for enabling the farmers. Settlement to be done in phases for logistic reasons trading centers are willing to start d) operating on day one of allocation of the facility e) The land for the project shall be anywhere in Kenya, big enough to accommodate about 3000 farmers with a minimum of 5 acres each, with an extra 6000 acres for company farming and about 1000 acres for social utilities f) Project to establish: 1) Administration department 2) Finance department 3) Produce and supplies stores 4) Social services 5) Support services. 378 g) Establish an exit formula for the farmers to own the lands after the repayment of the loans 379 Documents list Document 1 Certificate of incorporation {Leave this page Blank, An image will be placed here} 380 1-0-0 PROJECT CHARTER Project Title SAMULAND INVESTMENTS COMPANY PROJECT Project Working Name SANULAND PROJECTS Project Manager Project Chief Executive Project Sponsor Samuland Investments Company Directors Project Clients/ Project farmers and business persons in trading Customers centers Prepared By Lazarus K. Mwangi 1-0-1 Project Overview 1) The project name is Samuland Investments Company Project. For daily operations, it will be referred to as Samuland Project. 2) Samuland Investments Company shall be the legal company that will carry out the operations of the project. 3) Samuland Investment Company is a private company registered under the Laws of Kenya Caps 486. It has shareholders and is run by a board of directors. There is an executive board of directors whose duty is to ensure that the day to day operations of the company run smoothly. The operations of the company are divided into three board sections: 1) Policy matters 2) Implementation 3) Oversight matters 381 4) The project is a product of the observations made by the promoting directors during their long operations with land buying companies. They noted that, though farmers buy portions of sub -divided large farms and ranches, they do not benefit from such deals. They become poorer than they were and the nation ends losing in the total national food output. To counter this trend, this project, has been formed. The project intends to provide facilities that will enable farmers to be productive hence eliminate the problems that have reduced productivity. 5) The farmers will operate the project area not as employees or people waiting for hand out but as operators doing a job for their own welfare. This mode of operation will boost the morale of the poor for they will feel that their efforts are being appreciated and that they are on the way to economic liberty. The project products will be materials, services and spiritual support for everyone involved in the project. The overall objective of the project is to eradicate poverty in all its forms by providing the basic human needs namely provision of; A) Shelter to mankind. B) Clothing C) Food To achieve the above goals the project has the act as follows: To be provided 1. Land Objective Target A) Farming areas 382 B) Operations facilities sites i) Give shelter activities site for farmers ii) Build services facilities iii) Farmers sources of income for personal needs iv)Source of food 2. Support services A) Enable production on farms ( water, roads security) i) Increase productivity. ii) Improve social welfare and B) Provide production better lives resources 3) Social services A) Provide knowledge and (Schools and hospitals) 4) advice Material sources ( farm in-puts operations fun ds 6) i) Enable increased productivity and self-trust B) Health and recreation ii) Good health and self-reliance A) Establish materials i) Facility for materials stores purchase and sales B) Establish financial ii) Facility for banking services SACCO By providing land for sale to the farmers, on which to build shelter and work on the major personal needs will be eliminated. The company will 383 construct the needed infrastructure, churches, schools, health centers and commercial centers the farmers and the community will benefit and hence the standard of living will be improved. The company will construct water storage dams and tanks and a delivery system for both irrigation and domestic use. These facilities will enable the farmers to be productive all year round for farming will be irrigation based. When this project is carried out in this manner as planned, the project objectives will be achieved REASONS FOR THIS PLAN a) Many of the farmers are landless or their farms are too small due to subdivisions such that the outputs are not enough and were thus forced to join land buying companies in the 70’s and early 80’s but the farmers did not improve their lives. They did not have the ability to develop the farms and the companies left them on their own. b) The farmers who joined the land buying companies came from areas where the cash crops competed with food crops where the reduced sizes for both food and cash crops production land area was affected by the subdivision causing insufficiency in both food and income hence increasing poverty. c) The project plan is to increase productivity hence reducing poverty and thus enabling the farmers to achieve their initial objective that made them join the land buying companies. d) If the poverty issue is not addressed as per this plan, poverty level will increase and food insecurity will keep on increasing and affect countries’ economies. e) This project plan can be a poverty solution to many nations if carried out to conclusion. 7) The project has many challenges to overcome and the major ones are as follows; 1) Lack of funds to finance the activities especially because the target is the poor people 384 2) Lack of high potential lands because the prices per acre is usually too high for the farmers to afford. 3) Lack of water in the cheaper areas thus calling for more funds to develop dams for irrigation. 4) Lack of modern agriculture technology and resources in production 8) The opportunities open to the project are: a) The farmers in need of these farms are many and are willing to participate in the projected plan b) There are some international community groups of financiers that have policies that favour humanitarian projects that help in the creation of employments and reduction of poverty. These groups will be approached for funds and grants. 9) The project returns are numerous and of great satisfaction to many. The sponsoring company has planned to operate this project as both commercial and humanitarian entity. It will have the following operations: 1) Farming operations on part of the land. 2) Establish industries for value adding to the produce 3) Establish its own financial services 4) Establish services centers where some revenue will be generated. 5) Sell the farms to the farmers who shall repay the loans in instalments out of the farm produce proceeds. These returns shall be enough to cover; a) Capital expenses b) Recurrent expenses c) Repay the loans d) A reserve for savings e) Provide funds for expansions The project will be divided into three growth phases; 385 A) The first phase will be from day one from farm entry date to a date five years ahead. B) Second phase will be from end of year five to end of year nine. C) Third phase from year ten to year twenty five. These periods are necessary for the control of operations; i) Phase one is formation and construction ii) Phase two is taking stock of accomplishments and rectifying the short comings of phase one iii) Phase three is full operations and total commitment to production with all mandatory obligations in mind. 10) Limitations The project operations will be restricted to matters that are beneficial to the company’s commercial interests and all matters that help in poverty reduction. Each of the project divisions will have its set out responsibilities and will be accountable for all its obligations. Scope The project goals and objectives shall be attained by the following operations plan. The operations and activities will Divided into the following divisions; 1) Board of directors ( Samuland Investments Company) 2) The policy division ( Comprising of the directors of Samuland Investments Company, members of think tank) 3) Implementation board ( comprising of directors, think tank and employees) 4) Oversight board ( comprising of directors, farmers, employees and traders in the trading centers ) Each has a role to play and a responsibility to accomplish. The divisions will ensure their start and end points of their responsibilities are defined well and that no obstacles are on their way. 386 Numerous obstacles are expected and these are some of them. 1) Time limitations 2) Availability of resources a) Man power and capacity b) Funds c) Uncontrollable events such as weather d) Timely availability of materials. These issues will be looked into by the implementation board in consultation with the policy board. If the project is undertaken it will have a big positive impact on all who will have participated. 11) The project has the following groups as interested parties in the matters of the project, b. The directors of the sponsoring company c. The shareholders of the sponsoring company d. The applicants for the project products e. The project financers f. The state g. The employees of company and the farmers and business operators h. The financiers of the project both internal and external The directors of the sponsoring company are appointees of the shareholders of the company. A member of the project is a client of the sponsoring company and hence subject to the rules and regulations of both the company and the project. The terms of membership are that the client makes an application to the company and his request is granted. The request to be made is for an agriculture land and an option for a commercial plot in the non-agriculture plot sector. The financers as stake holders have a say in the operations of the project in that they have invested their money in the project. 387 12) RESOURCES REQUIRED The project requires financing of the following; 1) Land purchase and other land mandatory costs 2) Fixed developments 3) Tools and equipment 4) Materials for various applications 5) Recurrent expenditure 13 FUNDING SOURCES To finance the projected operations the funds shall be sourced from 1) External financing about 70% of total project cost. 2) Internal financing about 30% of the total cost. 14) FUNDS ALLOCATION Project resources will be allocated as follows; A) Commercial sector 80% of project cost B) Humanitarian sectors 20% of cost. 15) COMMUNICATIONS Communication being very vital in this project, will be done in two main levels. 1) External communications (All matters linking the project with other parties outside the project area. 2) Internal communications (All matters of operations and activities within the project itself.) These communication will be writing especially where directions or orders or instructions to an activity are concerned. These communications shall identify the source, destination and the substance of activity very clearly and contain no ambiguity in every respect. 388 There shall be a communications canter with all matters for communications in place. 1-0-2 PROJECT IMPLEMENTATION 1) PROJECT PRODUCTS. The project products are the tools that can be used to fight poverty. The means and tools that will be used to produce the primary tools for poverty eradication shall also be our deliverables, materials and services. Shelter will be provided indirectly by providing farming and commercial lands to the applicants. Clothing will be provided through the creation of employments and the opening up of markets for farmers produce. To facilitate the provision of all these, the project will provide water storage dams and water delivery systems for both domestic and irrigation use. The project will also provide the community with education both technical and academic. Health facilities, recreation and other sociably important facilities, will be provided by the project. Farm in-put stores and financial services institutions will be established. Counselling services and spiritual guidance will be available from the churches permitted to operate in these areas. 2) LAND The project plans to acquire about 40,000 acres of land progressively over a period of five years. It is on these lands that the project intends to start its operations. The plan is to settle the farmers on plots ranging from five acres to two hundred and fifty acres. The company will use about twenty five thousand acres of these lands for its operations. These company lands shall be situated in strategic areas so that they will be used for both research and demonstration farms for the farming community. 3) SERVICES The services to be provided include, 389 e. Establishment of a credit and saving front office that will he converted into commercial bank after the project stability in about 3 to 5 years’ time. f. Sales and marketing services for all the farmers produce .This shall apply to both crops and livestock and livestock products such as milk. g. Water for irrigation and electric power h. Adult education as well as for the children. i. Health care and churches for both body and spiritual welfare. j. Special facilities for both physically able and disabled recreation. k. Farm input stores for the supply of operation requirements. l. Light industries for the repairs, manufacture and value adding to farm produce. m. Research-canter and field instructors and inspectors for the control of quality and quantity production 10) Establishment of market trading centre and collection centre to facilitate development. 1-0--3) ORGANISATION AND RESPONSIBILITIES 1. Board of Directors The project administration will be as follows:A) The board of directors shall be responsible for all policies that touch on both the project and the company and the company subsidiaries. The board has 18 directors headed by the chairman and the vice chairman. B) The board of directors is again divided into three parts:1. Active on daily matters (Executive arm ) 2. Inactive on daily matters ( Policy matters ) 3. Both active and inactive (Oversight matters) 390 The active directors shall form the executive board headed by the chief executive officer of both the company and the project. The chief executive officer shall be answerable to the board of directors only and every other person is directly under this officer. The executive board is composed of seven members. C) Implementation Groups This group is divided into three parts:(1) The policy board. This shall be responsible for formulating the policies of both the company and the project. All matters touching on policy shall originate from this section. The membership is open only to the directors. (2) Implementation Board This shall be done by the directors-executive board, members of think tank and senior employees. It is charged with responsibility of implementing all that has been passed as policy. They are responsible for all employments and are answerable to the board of directors. (3) Verification board. This is composed of directors, members of the farming community and business persons. It is charged with the duty of ascertaining that all policy matters and instructions are carried out. It reports to the policy board. D) Implementation Board To implement the project, composed of the following persons has been formed. 1] Directors 2] Shareholders 3] Think tank (farmers and employees) The shareholders and directors contribute 12 members while the think tank contributes 20 members hence this board consists of 32 members. The think tank is made 391 up of person qualified in their fields and able to competitively do and complete their assignments without supervision for they are professionals. (3) Project Implementation 1) Operations Centres To implement the project, the planned activities have been divided into these groups:1. Head Quarter operations ( Chief Executive officer) 2. Head Office Operations ( deputy executive officer) 3. Investments operations ( deputy executive officer) 4. Social Services Operations( deputy executive officer) This department shall be responsible for all matters of the whole project and company. It will be A) Head Quarter operations (1) General Administration Office for the project (2) All finance matters B) Head Office operations 1. Liaison between company, and its other operations centers 2. Shall act as the chief executive in the absence of the Chief executive officer C) Investments Sector shall be the commercial division of the company. It covers 1) Farming Division of the company. 2) Industries 3) Stores and supplies establishments 4) Support facilities that give services of every kind in the project area (Water, transport, financial, agriculture…….) 392 4) Social Services This covers all areas touching on human needs especially 1. Schools 2. Hospitals 3. Recreation and churches 5) Implementing Procedures All operations of the project or company shall follow set regulations and procedures. The rules and regulations shall be followed and executed as per the policies It is a requirement that every employee, member, director or whoever is involved with the operations of the project makes himself familiar with the relevant policies or regulations governing whatever activity is at hand. The policies in force as of now are:1. Policy board policy 2. Finance policy 3. Membership regulations 4. Water policy 5. Livestock Policy 6. Education Policy 7. Property Management Policy 8. Agriculture Policy These policies are guidelines and they are to be followed. 393 1-0-4. DEPENDENCIES The project operations have these major activities: 1) Drawing and writing up the documents. 2) Funds sourcing 3) Funds utilization a) Funds allocation to divisions 4) Land Acquisition i) Land purchase ii) Planning and survey works iii) Land Allocation to company and farmer groups ( maps data) 5) Construction of initial essential office and stores facilities 6) Ground allocation of company lands for; i) Offices ii) Communal use lands ( dams sites) iii) Livestock farms ( company) iv) Farmers settlements lands v) Social services lands ( churches schools and Health) 7) Establishment of operations divisions i) Head quarter a) Administration b) Finance c) Lands office d) Registry e) Sacco Services ( Banking) 1) Operations services 2) Trading center’s services ii) Stores and Supplies a) Foods stores b) Building materials c) Farm inputs 394 d) Machines iii) Support services a) Water department b) Buildings department c) Roads iv) Social services a) Health centers b) Schools c) Churches d) Recreation v) Company farms division a) Livestock farms b) Crop production farms c) Research farms 8) Farmers settlement i) Directors groups a) Directors and shareholders b) Think tank and employees c) Allocation of trading centers plots ii) Phase one farmers a) Group 101 b) Group 102 c) Group 103 d) Group 104 e) Group 105 iii) Phase two farmers a) Group 206 b) Group 207 c) Group 208 d) Group 209 e) Group 210 iv) Phase three farmers a) Group 311 b) Group 312 395 c) Group 313 d) Group 314 e) Group 315 1--0--5. PROJECT SUPPORT PLAN 1) The project plans to support its activities by introducing measures that will make the participants:a. Feel that they have to work extra hard and not wait for donations. b. Feel the need for cooperation with others in the project, for the success of one means the success of all. c. The project in turn will strive not for the profits and dividends to the shareholders but to mankind. 2) The company operations profits will be applied:A. B. C. To creating a safe margin for loan repayments. Creating an expansion fund base. Investing in education for the project children and making them aware that honesty is the base of a satisfying living and hence a desire to keep oneself and others by creating opportunities. 1—0--6. PROJECT FACILITIES AND RESOURCES. The project will create trading centers on all its farms. The land policy is that the land be used, as follows:1.That, 10% of all land purchased shall be used for a. Construction of trading centers. b.Public Use facilities The project will finance the construction of recreation facilities. 396 Nearly all personnel requirements will be met from the farming community. What the farmers cannot have in terms of personnel, the open market labour will provide. Where personnel of a specialized application are needed, the project will request for secondment from the government. The project management intends to steer away from all politics and hence remain neutral to all politics. 1--0-.7 RISK MANAGEMENT The greatest risk faced by the project is the non-repayment of the loans and interests. The main causes of such an occurrence are:i. Misapplication of funds due to unreasonable relocation of funds. ii. Misappropriation of funds by the directors, employees or the farmers iii. Non-adherence to the plan iv. Situations beyond our control, natural or of our own negligence. v. Non repayment by farmers for any cause and hence a shortfall in the installment due. To control the risks involved, the company has the following measures planned. 1) All produce sale shall be done by the project this covers the production control and field supervision to the selling price and hence the mandatory deductions. 397 2) The full loan shall be insured in addition to, each farmer taking insurance for the loan unpaid on his account. All mandatory insurance covers will be taken against all possible loss or damages, or claims against the project or company. 3) As for the repayments by the farmers the company shall manage any piece of land not meeting the financial obligations on behalf of the owners or beneficiaries. 4) The operation of the company shall be utilized to make good any shortfall in the installments payable as a short term measure. 5) A contingency fund will be created out of the project total revenue receipts. 6) The company will hold in a “holding account” 10% of net proceeds payable to every farmer as a contingency plan for any failure. 7) A strict Finance Policy will operate. 1—0--8. PROCESS DEVIATIONS AND OPTIONS. The project cannot hold to any process that will be a loss or delay in achieving the objective. There is room for change. A change in taste of our customers or technology will determine what level of modification is needed. The implementation groups shall get the bests solution even if it means hiring experts. 1—0--9. PROCESS PHASES. As the project dealing with human beings, and means changing patterns of behavior, the implementation will be done in stages. It is important that, the following be taken into considerations:1) The company will need a grace period of three years before any repayment funds can be generated from the operations. 398 2) To be fully operational the period required is five years. After the first five years, the company can embark on an expansion program for another two years. 3) After this period, expansion can begin and go on. 11. PROJECT 1—0--10. AREAS OF INTERESTS COVERED IN THE PROJECT A. Accountability for funds i) For the project satisfaction ii) For financial satisfaction iii) For the farmers satisfaction B. Control against loss of assets. C. Achievements of objectives for i) The company and project ii) For the farmers iii) For the Financers D .For the interests of other parties not directly involved in the project operations, 1) General view by the states. 2) General satisfaction of the clients, farmers and 3) World at large for poverty eradication customers. precedence. The three implementation sections, head office, investments and humanitarian, have funds allocated to them as per their duties and requirements. A division will have funds for all departments under it. Each department has its own allocation. The department will account for its own funds and report to the division head. The division head will similarly account and report to the finance control. 399 Each sections or department has its own internal audit department while the head quarter has an independent internal audit staff. Every operation centre has its operations records at the statistics centre where reports are made individually on expenditure and receipts and all requisitions for anything. This section (statistics) shall keep reconciliation charts and therefore any discrepancies shall be detected immediately for these reports are made on daily basis. The communications shall follow the chain of authority hence measures of control will be established. These rules shall apply to all sections. An “Authority to incur expenditure system” shall be put in force and touch on every sphere of operation. Reference shall be made to the management policies on all matters. 1—0--11. QUALITY CONTROL ASSURANCE A. The clients and customers of the project are:1. The farmers The farmers shall take our physical and spiritual products. The project objective is to help the poor people get a better life by using diligently what we physically give them and what we spiritually give them by setting examples and guidance. The board policy shall be very strict on whoever shall be guilty of injustice to those persons or any other person lower than whoever has acted unjustly. The policy has explained all the consequences of such actions. 2. Project Customers 400 These are the persons who will buy our products such as farm produce and industrial products. For this, the project has to put these measures into operations. 1. The project shall look for outlets for the produce (Benefits to Farmers). 2. The outlets shall indicate the quantity and the project shall allocate production quotas to the farmers ensuring timely production 3. The project shall supply the seeds sourced from appointed suppliers only thus ensuring quality produce for the consumers. The supply of insecticides will be done by the project and hence ensure compliance with the standardized chemical residue requirements. 4. The project shall provide field inspection and advisory staff to the farmers hence corrective measure will be timely. 5. The farmers shall be provided with operations funds to ensure that no delays in operations shall occur due to lack of funds. 6.The collection and delivery to the consumers shall be done by the project. 7.The research division will ensure that the farmers have their problems solved as they arise and hence control of both quality and quantity is ensured. 8.These measures apply to both livestock and crops. 1—0--12. PROJECT SCHEDULING The project management shall schedule its operations on considering the needs of:1) The farmers and their requirements. 2) The market needs. 3) Project costs and availability of resources especially funds 401 1—0--13. PROJECT COSTS The project cost is based on the following requirements. 1.The land costs 2.Costs of land acquisitions a. Mandatory charges such as registration fees. b. Survey fees c. Stamp duties d. Other incidental charges 3.Fixed development costs a. Water storage and delivery b. Roads c. Buildings and stores d. Fencing 4. Operations Tools a. Tractors and transport b. Farm implements c. Hard tools and other subsidiary machinery. d. Livestock 5.Operations Startup Capital a. Payments for salaries and other overhead and production costs. b. Farmer consumption during starting period 6.Cost of humanitarian facilities 7.Cost of establishing trading centers The Project success depends very much on the following:(1) The financial situation in the world does not change negatively such that the interest rates go out of control as the cost would affect our expansion program considerably. This would reduce the reserves and purchasing power of many as 402 this would also increase the cost of agricultural inputs especially fuels used for machinery and transport. (2) The general acceptance and attitude of the farming community shall play a big roll. Acceptance that honesty is important to all is very essential. 1—0--14. PROJECT APPROVAL After a careful consideration, the directors and the shareholders have unanimously agreed on the following:- 1) That the project is useful and helpful to them as individuals and to the community in general. 2) That their experience and observation is enough evidence that there are very many helpless people who would like to fight poverty in any way available if given a chance. Hence the directors and shareholders agreed to start the project and authorized the executive board to act on the following. 403 1) Seek and borrow on behalf of the project any amount of funds that can be available for start-up of project and that they will ensure that the project will be able to repay the loans so borrowed. 2) That they will use the profits of the project for expansion as part of their contribution to the humanitarian activity for the poverty eradication operations, for this is Gods’ desire to liberate mankind from the economic doldrums. 3) That this document shall be the constitution of the project and all shall be bound by it on all matters touching on our vision and mission. SIGNED BY: 1) Chairman …………………………………………………………….. 2) Secretary ………………………………………………………………. 3) Director ………………………………………………………………... 4) Director ……………………………………………………………….. For SAMULAND INVESTMENTS COMPANY 404

Tutor Answer

lindawriter
School: University of Virginia

Attached.

Table of Contents
List of Tables

8

List of Charts

9

List of Graphics

9

Chapter 1 - Samuland Investments Operations

10

1.0.0 Executive Summary

12

1.0.1 SAMULAND PROJECT

12

1.0.2 SAMULAND VISION

13

1.0.3 THE BENEFICIARIES (THE POOR)

13

1.0.4 DIRECTORS

13

The directors of the company are the chief coordinators of company activities. They have the vision implanted in their minds. They know what their mission is and are in a
position of drawing the policies to guide them to the accomplishment of their objectives.
13
1.0.5 FINANCERS

14

1.0.6 Poverty Eradication parties

14

1.0.7 Poverty Eradication Stakeholders

14

1.0.8 PROJECT VISION

16

1.1.0 PRINCPLES OF OPERATION STRATEGY

16

1.1.1 PROJECT MISSIOM

18

1.1.2 SAMULAND PROJECT PLANNED OPERATIONS LAYOUT

19

1.1.3 Project Mission

22

1.1.4 Business Plan

22
22

Project Statement of purpose
1.1.5 Objective of purposes:-

23

1.1.6 The Project Mode of Operation

26

1.1.7 Operation procedure

26
1

1.1.8 Formation stage

28

1.1.9 Project interested parties

31

Chart No 3 Interested parties

33

1.2.0 Inter- parties relationship

34

1.2.1 Company and Project

35

1.2.2 Expectations from Samuland Investments Company

36

1.2.3 COMPANY AND PROJECT OPERATIONS

37

1.2.4 SERVICES BY THE PROJECT AND COMPANY

38

1.2.5 SERVICES

39

1.2.6 MAIN OPERATIONS INTEGRATION FOR PROVISION OF SERVICES AND MATERIALS

39

1.3.1 Table No. 8 operations centres

41

1.2.8 PROJECT ACTIVITES ORGANIZATION (A=Project activities)

42

1.2.7 Project Management Organization

44

1.2.8 MANAGEMENT ORGANISATION (Chain of Authority)

45

1.2.9 Chief Officers of the company and Project

46

1.3.0 Divisions Analysis

48

1. 3.1 FORMATION SUMMARY

52

1.3.2 GROUNDS FOR TAKING THE PROJECT AS IS PLANNED

55

C)

57

OBJECTIVES AND ACHIVEMENTS PLAN

2.0.0 PROJECT COSTING

60

2.0.1 Projected Land for purchase

60

2.0.2 Land Uses

63

The proposal is to sub divide the whole land into small parcels ranging from 5 acres to 500 acres and sell them for farming purposes to the farmers. About 3,000 farmers
will be settled on about 29,000 acres. The company and the project will take the remaining 41,000. Out of the 41,000, road reserve will take 500 acres and 300 acres for
trading centres (T.C.) the project 825 acres balance is for Samuland Investments Company as a farmer. It is important to note that the farming industry is allocated about
68,325 acres to answer the hunger question.
63
2

2.0.3 Tools and Machines

63

2.0.4 Operations Funds

65

Graphic 1 Funds Application Data

70

2.0.5 Projected costs break down.

70

2.0.6 Overhead funds

71

2.0.7 Fixed developments

72

2.0.8 Movable assets

73

2.0.9 Operating funds

73

2.1.0 FUNDS APPLICATIONS

74

2.1.1 Tables list

74

2.1.2 PROJECT COSTING SUMMARY

79

2.1.3 Project Stakeholders (Interested Parties)

79

3.0.0 FUND SOURCING

81

Graphic 2Funding Sources Data

83

3.0.1 PROJECT FINANCING AND APPLICATIONS

83

3.0.2 FINANCING FUNDS MOVEMENT

84

3.0.3 External funds

85

3.0.4 SOURCES OF INTERNAL FUNDING

86

3.0.5 Sales Proceeds (Charging Procedure)

87

3.0.6 PROJECT FUND SOURCING AND APPLICATION

87

Graphic 3Funds sources and Application

93

4.0.0 EXIT PLAN

96

Graphic 4Exit funds as required

100

4.0.1 Project Implementation

105

4.0.2 SAMULAND PROJECT.

106
3

4.0.3 PROJECT COMPONENTS

107

4.0.4 PRODUCTION DEPARTMENT

108

4.0.5 ADMINISTRATION DEPARTMENT

109

4.0.6 Project Control

109

4.0.7 Boards of Directors

110

4.0.9 PROJECTS MANAGENENT ORGANIZATION

112

5.0.0 ADMINISTRATION

113

5.1.0 PROJECT MILESTONES

122
122

Timeline
6.0.0 PROJECT FUNDS AND MATERIALS ALLOCATION AND MOVEMENTS

136

6.0.1 DIVISION FUNDS ALLOCATIONS

136

6.0.2 DEPARTMENT FUNDS

139

6.0.3 Total Project funds

141

Graphic No 6 Division Funds Allocation

145

6.0.4 External funds allocation:

145

6.0.5 Internal Funds

147

6.0.6 Funds grouping.

148

6.0.7 External for take off

151

7.0.0 EXTERNAL LOAN REPAYMENT DATA

173

7.0.1 Loan terms

173

The loan term is based on a term of 25 years that include a grace period of 3 years. Interest for this period being simple interest for three years and thereafter be capitalized.
173
Graphic No. 7 External Loan Data.

179

Graphic No. 8 Farmers Loan Data.

186

8.0.0 LANDS ALLOCATION AND DISTRIBUTION

187

8.0.1 Lands Data

187
4

Graphic No. 9 Land use allocation

190

8.0.2 Lands Statistics

192

Graphic No. 10 Farmers Land distribution

196

8.0.3 AGRICULTURE LAND DISTRIBUTION STRATEGY

196

Company farms are in a category of their own and are the largest farms.

196

Chart No. 22 Agriculture Land use summary

197

b)

197

c)

197

Graphic No.11 Agricultural Land Use

198

8.0.4 Non Agricultural lands.

198

8.0.5 TRADING CENTRES PLOTS

199

Trading Centers have been allocated 300 acres upon which various classes of plots will be planned

199

Graphic No. 12 All Land Distribution

200

Graphic No. 13 Land Distribution and occupation

218

Graphic No.14 Farmers Settlements on the farms.

220

9.0.0 LAND SALES DATA

220

9.0.1 Land selling components

223

9.0.2 Land Cost loan Repayment

224

9.0.3 LAND DISTRIBUTION STRATEGY

224

On acquiring the land, Samuland Investment Company, will develop the necessary infrastructure, such as water for irrigation, roads and the sub-divisions of the land

224

9.0.4 MARKET SEGMENTATION

232

10.0.0 STORES AND SUPPLIES SALES

233

10.0.1 Stores and Supplies Membership

233

11.0.0 PRODUCTS AND SERVICES

237

11.0.1 PROJECT AND COMPANY SERVICES

238
5

11.0.2 Services and products centres

240

11.0.3 Company farms

242

11.0.4 Stores and Supplies Division

243

11.0.5 Social Services Division

245

11.0.6 Agriculture division

247

Main services are;

247

11.0.7 Services and Product Financing

249

11.0.8 Company financial Investments (FDR)

266

12.0.0 CASH FLOW PROJECTIONS

268

12.0.1 SAMULAND INVESTMENTS COMPANY

269

Graphic No. 15 Operations receipts

274

Graphic No. 16 Expenditure data

280

Graphic No. 17 Cash flow Cash Balances

281

Graphic No.18 sales and services

286

Graphic No. 19 Gross Profit Data

287

Graphic No 20 Net Profit Data

288

Graphic No. 21 Balance data (Assets)

290

Graphic No. 22 Balance Sheet data (Liabilities)

292

12.0.2 BREAK EVEN ANALYSIS

293

1) Overhead Expenditure

293

Graphic No 23 Break-even point

295

13.0.0 PROJECT IMPLEMENTATION

334

13.0.1 COMPANY LEVEL ORGANIZATION

334

13.0.2 Implementation Policy requirements

336

13.0.3 Implementation Board

336
6

13.0.4 HEAD QUARTER OPERATIONS

340

13.0.5 HEAD QUARTER DIVISION

347

13.0.6 PROJECT OPERATIONS MANAGEMENT ORGANIZATION PLAN

348

13.0.7 GENERAL ADMINISTRATION LAY OUT FORMART (HQ Division)

350

13.0.8 PROJECT COMPUTER SYSTEM

351

13.0.9 PERSONNEL AVAILABILTY

356

Graphic No.25 Salary increase treads scale 7 to 12

370

1-0-2

411

PROJECT IMPLEMENTATION

1-0--3) ORGANISATION AND RESPONSIBILITIES

413

1-0-4. DEPENDENCIES

416

1--0--5. PROJECT SUPPORT PLAN

419

1—0--6. PROJECT FACILITIES AND RESOURCES.

420

1--0-.7 RISK MANAGEMENT

421

1—0--8. PROCESS DEVIATIONS AND OPTIONS.

422

1—0--9. PROCESS PHASES.

422

1—0--10. AREAS OF INTERESTS COVERED IN THE PROJECT

422

1—0--11. QUALITY CONTROL ASSURANCE

424

1—0--12. PROJECT SCHEDULING

425

1—0--13. PROJECT COSTS

425

The project cost is based on the following requirements.

425

1—0--14. PROJECT APPROVAL

427

7

List of Tables
TABLE 1 PROJECT DATA SUMMARY ......................................................................................................................................... 10
TABLE 2 PROJECT INTRODUCTION SUMMARY......................................................................................................................... 12
TABLE 3 VISION DATA .............................................................................................................................................................. 15
TABLE 4 OPERATIONS LAYOUT (PROJECT DIVISIONS) .............................................................................................................. 19
TABLE 5 PROJECT MISSION ...................................................................................................................................................... 22
TABLE 6 FORMATION STAGE .................................................................................................................................................... 28
TABLE 7 INTER- PARTIES’ RELATIONSHIP ................................................................................................................................. 34
TABLE 8 PROJECT COSTS CENTRES ANALYSIS .......................................................................................................................... 60
TABLE 9 PROPOSED LAND SIZE ................................................................................................................................................ 61
TABLE 10 LAND DISTRIBUTION ................................................................................................................................................ 62
TABLE 11 LAND COSTS DISTRIBUTION CENTRES ...................................................................................................................... 63
TABLE 12 TOOLS AND MACHINES AND OTHER OPERATING AREAS ........................................................................................ 64
TABLE 13 MAJOR AREAS OF OPERATIONS ............................................................................................................................... 66
TABLE 14 MAIN CATEGORIES OF OPERATIONS CENTRES AS IDENTIFIED FOR THE PROJECT ................................................... 68
TABLE 15 APPLICATIONS CENTRES FUNDS ALLOCATION ......................................................................................................... 68
TABLE 16 PROJECTED FUNDS BREAK DOWN (LAND ACQUISITION COSTS) ............................................................................. 70
TABLE 17 OVERHEAD COSTS .................................................................................................................................................... 71
TABLE 18 FIXED DEVELOPMENTS ............................................................................................................................................. 72
TABLE 19 MOVABLE ASSETS..................................................................................................................................................... 73
TABLE 20 OPERATIONS FUNDS ................................................................................................................................................ 73
TABLE 21 INTERESTED STAKE HOLDERS ................................................................................................................................... 80
TABLE 22 FUNDS SOURCING .................................................................................................................................................... 81
TABLE 23 SALES PROCEEDS CALCULATIONS ............................................................................................................................ 87
TABLE 24 FUNDS EXPENDITURE - LAND ACQUISITION EXPENDITURE ..................................................................................... 88
TABLE 25 OVERHEAD EXPENSES .............................................................................................................................................. 89
TABLE 26 FIXED DEVELOPMENTS ............................................................................................................................................. 90
TABLE 27 MOVABLE ASSETS..................................................................................................................................................... 90
TABLE 28 WORKING OPERATIONS ........................................................................................................................................... 91
TABLE 29 FUND APPLICATION SUMMARY ............................................................................................................................... 92
TABLE 30 EXIT COMMITMENTS ............................................................................................................................................... 96
TABLE 31 SATISFACTORY EXIT ................................................................................................................................................ 104

8

List of Charts
CHART 1 POVERTY ERADICATION STAKEHOLDERS ............................................................................................................................................................................................................................. 15
CHART 2 BUSINESS OPERATIONS PLAN ........................................................................................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
CHART 3PROJECT SERVICES AND MATERIAL SOURCES. ................................................................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
CHART 4PROJECT ACTIVITIE .......................................................................................................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
CHART 5OPERATION CENTRES CODES (LEVELS: BOARD—PARTICIPANTS AND DIVISIONS) ......................................................................................................... ERROR! BOOKMARK NOT DEFINED.
CHART 6ADMINISTRATION ........................................................................................................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
CHART 7INTERNAL FUNDING SOURCES ........................................................................................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
CHART 8PROJECT IMPLEMENTATION COMPONENTS................................................................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
CHART 9PRODUCTION DEPARTMENTS ......................................................................................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
CHART 10PROJECT AND COMPANY CONTROL .............................................................................................................................................................................. ERROR! BOOKMARK NOT DEFINED.
CHART 11 INDEPENDENT PROJECT DIVISIONS .............................................................................................................................................................................. ERROR! BOOKMARK NOT DEFINED.
CHART 12ADMINISTRATION DEPARTMENT (HEAD QUARTER DIVISION) ..................................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
CHART 13 SOCIAL SERVICES .......................................................................................................................................................................................................... ERROR! BOOKMARK NOT DEFINED.
CHART 14FUNDS AND MATERIAL DISTRIBUTION AND MOVEMENT ............................................................................................................................................ ERROR! BOOKMARK NOT DEFINED.
CHART 15DEPARTMENTAL FUNDS ................................................................................................................................................................................................ ERROR! BOOKMARK NOT DEFINED.

List of Graphics
GRAPHIC 2 FUNDS APPLICATION DATA .............................................................................................................................................................................................................................................. 70
GRAPHIC 3FUNDING SOURCES DATA.................................................................................................................................................................................................................................................. 83
GRAPHIC 4FUNDS SOURCES AND APPLICATION ................................................................................................................................................................................................................................. 93

9

GRAPHIC 5 EXIT FUNDS AS REQUIRED .............................................................................................................................................................................................................................................. 100
GRAPHIC 6RESOURCES FROM OPERATIONS ..................................................................................................................................................................................................................................... 104

Chapter 1 - Samuland Investments Operations
Table 1Project data summary

SAMULAND
PROJECTS PLAN
SEQUENCE
10

PROJECT Activity / Centre Name Location
No.
FORMATION
1
COSTING
2
FUNDS SOURCING
3
EXIT PLAN
4
IMPLEMENTATION
5 STRATEGY
FUNDS ALLOCATION
6
7 LOANS REPAYMENTS

Duties, goals and objectives
Form project as per vision
Evaluate the project elements
How to finance the project
Repayment of borrowed funds and
meeting goals
Ways to follow to start, run and exit the
project
Allocate funds as per the project goals

STORES SALES

Recovery of debts from farmers and
projects
To company , farmer and project:
economic parcels
Documentation and records for each
parcel of land
For supplies of inputs and tools

SERVICES

Financial, education, morals and health

LANDS ALLOCATION
8
LANDS SALES
9
10
11
CASH FLOWS
12 PROPOSAL
PROJECT
13 IMPLEMENTATION

Proposed flow of funds
Project operations planned

11

Table 2Project introduction summary

1--0 FORMATION
1--1
1--2
1--3

Matters considered
a) Project identity
b) Project owners
c) Project location

1.0.0 Executive Summary
Samuland Investment Company was formed and registered under the Laws of Kenya and a certificate of incorporation Number C.69437 issued on 28th day of
February 1996, with the objective of eradicating poverty from the society by improving their economic status, through guidance and providing an enabling
environment. The company vision is that poverty can be eradicated by the cooperation of persons that are willing to work a little more for the sake of
mankind. The company activity IS TO ERADICATE POVERTY through commercial activities that are commercially viable and socially acceptable as
beneficial to the community and the country. The main company activity is acquisition of ranch lands and sub-dividing the same for sale to the farmers after
putting up the necessary infrastructure. These types of farmers are the main clients for they are landless, if they have any other place to settle on, it is too small
for any comfortable life. Others join our project in search of expansion opportunities.
Currently we have 3000 applicants for agricultural plots and 2000 applications for non-agricultural plots. The market for our plots and products is wide and
hard to oversupply. The company has its main office in Nanyuki town, in Laikipia County, Central Kenya but on acquisition of the ranches. (The subject
matters of this document), the head offices will be moved to one of the ranches on one of the sites planned as a trading centre.

1.0.1 SAMULAND PROJECT
Samuland Project is the name to be used for the operations undertaken by the company Samuland InvestmentsCompany and any subsidiary to be formed or
the existing subsidiaries of Samuland Investments Co.
The project sponsoring company shall be Samuland Investments Company and any other parties willing to cooperate with the company for the purpose of
making the objectives and goals of the sponsoring company achievable.
12

1.0.2 SAMULAND VISION
The company vision is that poverty can be eradicated when proper actions by all concerned stakeholders are taken and properly implemented. Each party
taking the relevant portion of action and responsibly. The parties involved in poverty eradication are.
1.

The poor – being the beneficiaries

2.

The project managers –being the coordinators.

3

The owners of the funds employed. –being the Financiers

With each group of persons playing the right role, poverty eradication cannot fail.
The fundamental objective of the company is to organize a system where poverty will be systematically eliminated from society with the cooperation of the
people concerned, (The poor, the rich and a team willing to work for the good of mankind)

1.0.3 THE BENEFICIARIES (THE POOR)
The poor are many such that there will always be many on the waiting list for help hence our market is wide and is capable of infinite expansion.
Poverty, as per the project interpretation, is wider than just luck of materials wealth; it includes luck of everything essential for a complete, smooth and
peaceful living for human beings. Poverty eradication does not comprise of supplying material wealth alone, it covers ways and mean of sustaining the state
of having after receiving the initial help. Being able to sustaining is not complete if the person helped cannot be able to expand and have a will to help
others as he has been helped out of poverty. Good health, knowledge, entrepreneurship and expertise have to be incorporated in the poverty eradication
programs.
The provision of all these needs are the actions that the project intends to take to enable the beneficiaries get the full benefit of the project

1.0.4 DIRECTORS
The directors of the company are the chief coordinators of company activities. They have the vision implanted in their minds. They know what their mission is
and are in a position of drawing the policies to guide them to the accomplishment of their objectives.
One important virtue that they all have is that, all of them have been directors of companies dealing with lands sales for many years and they know the problems
involved. Land buying companies buy ranches that they sub divide into small parcels, mainly one and two acres. These are them allocated to the people on
payment of a purchase costs and other mandatory fee. These new settlers are left on their own. The sale of the lands alone without providing for settlement
and developments funds on these lands makes the new farmers desperate and poorer, more so mentally disturbed.
Briefly, land buying companies have done a good job in finding settling sites, but these sites are not useful to their owners unless they are developed and
productive. To make these sites economically useful they need infrastructure, operating and production funding.
13

Land buying companies do not provide these extra services and items. That is why our project wants to move a step further by providing the necessary funding
and infrastructure. The directors have planned to buy ranches, sub- divide them ,put up infrastructureand put up the required facilitiesneeded for
enabling the new farmer to be economically enabled. This is the strategy that the directors want to use in poverty eradication and hence the founding of this
project.

1.0.5 FINANCERS
Financers shall provide the starting funds in the form of loans to the project through the company which is the principle borrower. These funds are for the
benefit of the farmers; these loans shall be utilized such that a portion will be applied commercially while the other portion will be used for humanitarian
requirements
These funds will be repaid at a cost, sometimes with interest and other charges. The beneficiaries must not look at the project as a hand- out institute butas
a commercial project. They must work for the assistance given to them so as to repay these borrowed funds.

1.0.6 Poverty Eradication parties
To eradicate poverty from community, three parties are involved and these parties are;
1) The poor and in poverty
2) The rich and with something to offer to those that do not have
3) Managers that understand both the poor and the rich

1.0.7 Poverty Eradication Stakeholders

14

Chart 1 Poverty Eradication Stakeholders

Beneficiaries of the project are those people who have applied to the company requesting the company to make available to them some agricultural land on
which to settle.
All types and classes of people are accepted regardless of age, sex, or religion or education background. This combination of applicants makes it possible to
have all kinds of brains in the project area. All types of man power are available from this group. These people are farmers in the eyes of the company and are
registered by the company as farmers. This group will supply the company and the project with the various labour forces needed, be it skilled semi-skilled

Table 3Vision data

1--4
1--5
1--6

Project vision

project desires as seen
1) That poverty is a lack of something
essential in life
2) Major lacks are; materials health
knowledge and morals
15

1--7
1--8
1--9
1--10

Project mission

1--11
1--12
1--13
1--14

3) That one lack with one can trigger lacks to
others
duties to accomplish towards the vision
This requires that:
1) Structures to provide materials, education,
health and morals be established
2) To provide materials you require;
a) To produce them on farms or industries
b) To source them elsewhere and store them
till time to use
c) Establish a platform where various
materials can be exchanged

1--15
these platforms call for markets and f
inancial centres

1.0.8 PROJECT VISION
The project vision is that poverty from society can be eradicated if there is cooperation between the poor and the rich. We do not view poverty as purely lack of
materials but as a lack of anything that makes life for any member of society unbearable to an individual member or members of a society.
Lack of morals by individuals makes them unacceptable in society in same way as lack of self-confidence makes one feel unwanted or unfit in some social
circles. Poor health is as unacceptable as lack of material is in society. But lack of knowledge makes many uncomfortable and unable to socialize as lack of
integrity makes many social outcasts.
The project wants to address these issues in society by making every member socially acceptable and every person eligible for any social club of his choice.

1.1.0 PRINCPLES OF OPERATION STRATEGY
The truth is that not all materially lacking persons are poor in health and that not all materially rich are morally rich in both integrity and hence acceptable in
every society at any time and everywhere.
16

Our project will address poverty on the basic principle that all what a person needs is shelter; food and clothing for these are the basics of any society member.
The action requirement is that the following be made available to the community members.
1) Provide knowledge to the members by establishing learning institutions for both the young and all ages with all forms of improving one’s life academically,
morally technically and materially
2) Provide facilities to help one on physical and spiritual health
3) Provide facilities to help one financially
4) Provide facilities to help in material sourcing.
These requirements call for a program to make available the following facilities;
1) Lands on which to do all the above and specifically to settle the poor and establish the required infrastructure.
2) Schools for both the young and the mature in need of learning skills to sustain themselves and others
3) Churches and counseling institutions to instill social discipline.
4) Financial institutions to facilitate transactions
5) Hospital and public health institutions to facilitate social health.
The Project plans to establish all the above in addition to the following very vital facilities to the project beneficiaries.
1) Water for all uses especially,
A) Clean water for domestic use
B) Water for irrigation
2) Roads as outlets for farm produce and communication
3) Sale and marketing outlet for products
4) Industries for;
A) Adding value to farm products
B) Making basic project needs locally available
C) Power sources especially electricity for lighting and bio gas for cooking.
D) Creation of employment.
5) Management for the coordination of;
a) Social order in the project
b) Production order control for quality and quantity
c) Agriculture extension services to enhance skills
17

d) Financial services to enhance economic applications of available resources.
The project intends to do all the above and hence contribute to the welfare of mankind in a small way by enabling some people to be able to help themselves
out of lacks.

1.1.1 PROJECT MISSIOM
A) Poverty
Poverty is a situation where one finds himself or herself lacking the basic facilities needed in a generally accepted life. In the minimum a human being needs:
1) Shelter
2) Food
3) Clothing
The following can cause or make one to be in poverty:
1) Lack of good health
2) Lack of materials
3) Lack of funds ( Finances)
4) Lack of knowledge
5) Lack of morals

B) Poverty elimination coverage
Poverty covers is person or society the lacks one of the above and hence one can be materially rich but with a lack of health and hence does not enjoy the
minimum basics of life or rich in material and good health but morally lacking and hence socially not accepted in every society.
The project wants to address poverty in all its forms by tackling an individual and then the society. The society is composed of many individuals of mixed
levels of poverties than can be eliminated if the society members come together and formulate the way forward. This will also apply to the international
community for poverty is global. To eliminate poverty, shelter, food and clothing have to be provided but this is not enough for after a time the beneficiaries
will go back to the same poverty level if other steps are not taken to prevent the drift back to the level uplifted from. The beneficiaries must be provided with
18

finances, materials, education, both moral and technical so as to enable them to expand the basic base given to them. They should also be in a position of
helping others in poverty.
C) Poverty Elimination Strategy
By providing land means, shelter has been given and therefore to get food from the same land by farming. The land must then produce enough food and a
reserve for sale to be able to cloth oneself.
This farming operation can be enough employment if the beneficiaries are enabled to make these lands productive effectively and economically. Otherwise the
same people will remain poor.
The project has decided to provide the following services to its members through channels that have been established for the purposes.
The main project being subdivided into sub projects within the main project and further sub projects within some sub projects as per need and convenience.
The operations layout plan is as per the following table

1.1.2 SAMULAND PROJECT PLANNED OPERATIONS LAYOUT
Table 4Operations layout (Project Divisions)

1

Project
Name

2 Project
Objectives
3 Project
Components
4

Project tools

5

Main Project

6 Land sub-

SAMULAND PROJECTS

Poverty eradication
a) Provision of shelter b) Provision of foodC ) Provision of clothing
(Land)
(Farming)
(working)

Land
Land purchase and
development of facilities
for the benefit of people

Farming

Working

a) Agriculture land for a) Development of b) Provision of services
19

projects
7 Main support
projects
8 Tools for
support

farming developments
Materials sourcing
Stores

commercial
centers
Provision of social
services
Industries

Financial services
Schools and health care

Banks
and
good
management

Project name
The whole operations activities shall be known as the Samuland Projects (2-a). Projects because poverty comes in many forms and shapes hence many technics
and requirements needed all calling for many different and independent institutions and facilities all addressing poverty matters.
Project Objective
As per the project vision, poverty can be eradicated from society if there is cooperation and willingness between the stakeholders (the poor, financiers and a
management team) each to work as planned. All the works shall lead to poverty eradication. The eradication is the project mission (1-a)
Project components
The components are the elements needed for the purpose of eradicating poverty as per the definition of poverty by the project. These are the basic needs of any
human being.
3a. Shelter through provision of land
3b. Food through farming
3c. Clothing through provision of working and earning some income
Project Tools
These are the methods and required items for the operations aimed at eradicating poverty. They are tools for without them poverty will not be eradicated.
These are 4-a, 4-b, and 4-c (Land Farming and working)

Main Project
20

The main activity of the project is land for the land shall provide every facility and need required for the mission. The land project is composed of the following
operations.
1) Land purchase
2) Land allocations ( for various uses)
3) Land developments ( for the various requirements)
Land Sub Projects
Land as a main project, needs many sub projects to be initiated before any substantial growth can be made. The main developments take different forms and
approaches, these are;
6-a ) Developments on agriculture lands for farming purposes (crops and livestock)
6-b ) Commercial centres developments ( Trades and industrial areas)
6-c ) Public services centres and facilities ( Schools, hospitals, churches and recreation)
Main Support Projects
Support projects are those facilities that are needed for the functioning of the project. These are
7-a) Sources of project materials requirements (Stores)
7- b) Sources of services (Technical moral academic education ,physical health)
7-c) Financial services (Banking and availability of money services for day to day operations.
Support Tools
The tools for the support are
8-a) Material sources: stores ( as from external suppliers)
8-b)

Project industries

8-c ) Social welfare facilities
8-d ) Banks and credit facilities and management
21

1.1.3 Project Mission
Table 5Project Mission

1--16
1--17
1--18
1--19
1--20
1--21
1--22

3) To provide education health and morals the following
have to be established
a) Regular and technical schools
b) Health clinics and hospitals
c) Churches counselling and recreation centres
4) Once they are established commercial centres will be
required
hence a well-organized community with an operational
system shall be needed
To make this operational, a project covering all the
above needs has to be formed

1.1.4 Business Plan
The business plan and project operations will be based on the following objectives and goals.
1) To settle the farmers who are the project beneficiaries.
2) To create an enabling base for the main operating to have a stable economic base from where growth and expansion funds can be available without many
obstacle and heavy costs.
3) To develop community needs facilities that can be taken over by the farming community without much technical requirements for sustenance and maintenance
if the company participation is withdrawn.
Project Statement of purpose
The project is both humanitarian and commercial hence its operations and activities can only be viewed in those lights.it is commercial because the financing is
done by borrowed funds that are repayable with interests hence some income generating activities have to established for this purpose.
The humanitarian parts must be financed by a source that will be capable of meeting the expansion and recurrent expenditure of the humanitarian sectors being
undertaken by the project. The goals and objectives of the project makes it mandatory for the project to operate in a commercial oriented manner so that the
notions created by donation reliance can be removed from the minds of the beneficiaries and create a sense of self-reliance.
22

The project mission is to eradicate poverty and create a precedence or formula which can help other solve poverty problems in a way that is sustainable and
satisfying to all stake holders and without much economic strain on the interested parties.
After identifying the major causes of poverty, the directors of Samuland Investments Company set out to eradicate poverty and planned to apply the strategies
hereinafter set out.
The main pillars of the project are;
a) The beneficiaries
b) Financiers
c) Management

These are linked by:
1) Funds provided by the financiers
2) Objectives of the management
3) Activities of the beneficiaries
Their interest all converge on;
i) Management to provide a proper administration
ii) Production from the farms both beneficiary and company to provide income to all
iii)
Provision of services o enable productivity
iv)Generation of revenue to repay the financiers

1.1.5 Objective of purposes:a) Provide settlement to as many as possible landless beneficiaries. The settlements being of an economical size such that some income can be generated the same.
A minimum of five acres was found best for the majority.
b) Provide a financial base to the settlers such that they will be able to utilize the lands allocated with minimum hardships. The project will therefore provide
stores for farm inputs and marketing outlets for the produce. The project will also provide financial services to the farmers and settlers on the project.
c) To provide support services to the settlers so that their living and operations becomes easy. These services will therefore be provided.
23

1) Schools for both children and adults both technical and academic
2) Provide health and recreation facilities for all
3) Provide water for both domestic and irrigation use
4) Provide extension officers for the farming community

24

To achieve all of the above, the following operations management organization is planned to be the operations vehicle for the project. It is the base for the project
business plan.

Chart 2 BUSINESS OPERATIONS PLAN

25

1.1.6 The Project Mode of Operation
A. Farmers
Farmers are the main target of the project operations for it is these people who are being helped out of poverty. They will produce the raw materials for the
project agro-industries and be served by the project financial sector. The social welfare services are designed for them.
B. Company Economic Base
The company will establish an economic base with the following operations and services
a) Financial services to cover a savings and credit society institution for the banking and such other financial needs of the farmers and the business community in
the project area. Latter the savings and credit society shall be converted into an operational bank with all banking needs available. Sales and marketing of farm
produce shall be done as well as insurance services.
b) Manufacturing industries for the supply of light products and manufacture of basic tools and machines needed by the project community and external
markets. Farm produce based industries such as canning of foods and processing of dairy products and any activity that will add value to farm produce will be
undertaken.
c) Management services these services will be available to the project itself and the company operations as well as to the individual farmers and business
persons.
C. Community Interests
The community interests in the project are those facilities that are required for the smooth running of the matters of the project community, they cover;
a) Trading centers and commercial area with orderly operations and acceptable environment standards.
b) Provision of basic services such as clean domestic water, electricity, communication networks and good security for both property and life
c) Maintenance for all the above services.

1.1.7 Operation procedure
A) Initial steps
The project initial works will be undertaken by both the company and the financiers as follows
26

a) The company will be responsible for,
1) Recruiting the farmers as beneficiaries
2) Finding and negotiating land purchases
b) Financiers will be responsible for,
1) Sourcing the project funds
The two parties will jointly coordinate the project operations.
B) Development Stages
The project will develop in stages as follows;
There will be,
a) An operations formation stage when the three project main stake holders will be engaged in various works.
1) Farmers will be taking up their farms as the company allocates them with the land parcels to them. This process is planned to take about three years from entry
day one for farmers
2) Company will establish basic facilities such as stores and banking facilities for the farmers as well as establishing the water systems in addition to all other
essential services
3) The financiers will be funding the operations in a systematic way.
4) During this formation stage, planned to take about forty two month, all farmers will be settled. About 185 farmers per month.
b ) Stabilization stage
When basic settlement of farmers is done theproject will embark on stream lining much needed operations and administrative infrastructure and prepare for an
all-out for production. This will take about eighteen months and hence a total of sixty month from day one. (Five years)
The farmers will be busy on the farmers as the traders will be developing their commercial activities in the trading centres. The company will be establishing
the required controls and taking any other measures needed as the financiers look at what they have achieved and done with the funds.
c) Production stage
This is the stage when all the production by all sections of the project will be fully developed and ready for production. It is timed to last fifteen years from
stabilization date hence twenty years from day one. During this period, the farmers will be paying their dues to the relevant sourcing canters and the company
will be repaying the borrowed funds to the financiers. The financiers will be receiving both the principle and the interest repayments instalments as per
agreement. The production stage is most crucial to the project for it will have the total impact on the project itself
27

d) Exit stage
This is the stage that the project will be preparing the following operations.
a) To hand over all individual land parcels to the farmers as purchased by the same. The farmers have been paying for them in instalments.
b) To finalize the loans to the financiers
c) To take stock of the liabilities and assets of the company
d) To define what belongs to the company and what belongs to the project

1.1.8 Formation stage
Table 6Formation stage

1—23

Project formation

1—24
1—25
1—26
1—27
1—28
1—29
1—30
1—31
1—32

Project activities

Directors office

For the formulation of the project by directors of Samuland
investments company
The project will be formed and owned by the directors of Samuland
Investments Company
These are the persons who have the vision and mission of what they
want to achieve
Directors office
Ways and means of meeting goals
a) Look for lands available for the project
b) establish needed facilities such as Water, transport, and
marketing
c) Coordination of the project goals strategies
d) Find ways of financing the project
e) Establish an administration of all activities
f ) Organize an initial funding system for the whole undertaking as
one unit

28

1—33
1—34

Lands search

Directors office

Provision of
services

Directors office

1—35
1—36
1—37
1—38
1—39
1—40
1—41
1—42
1—43
1—44
1—45
1—46
1—47
1—48
1—49
1—50
1--51
1--52
1--53
1--54
1--55
1--56
1--57
1--58
1--59

Land needed to cover the planned activities
a) to settle about 3000 farmers each with a land
parcel of minimum 5 acres
b) communal facilities about 2000 acres
1) Schools
2) Other communal facilities
3) Trading centres
i) Residential
areas
ii) Commercial
centres
iii) Industrial areas
4) Roads
5 ) Water storage and delivery
passages
6) Cemeteries
7) Sewages and damp sites
c) Company properties 30,000 acres
1) Crops farms
2) livestock farms
3) Research facilities

a) Agriculture services
b) social needs services
1) Education
2) Health
3) Morals ( Churches
4) Recreation and sports
c) Financial services
d) Administrative services
1) Offices
29

1--60
1--61
1--62
1--63
1--64
1--65
1--66

2) services provision sites (
Administration of
the project

Directors office

Activities
financing

Directors office

Collection centres)
The administration shall be divided into these
sections
a) Company affairs
b) Project (farmers) affaires

a) External loans
b) Internally generated funds

30

1--67

Fund Sourcing for Directors office
project

1--68
1--69
1--70
1--71
1--72
1--73
1--74
1--75
1--76
1--77

Coordination
centre

Directors office

1--78
1--79
1--80

a) Borrowed funds
b) Operations by the company
1) farming
2) Industries
3) Investments
4) Payments for services
rendered
c)Loans repayment by farmers
1) Repayment of lands
allocated
2) Repayment of initial
allocation of stores and working funds
Main operation centres
a) Production centres
b) Social al services centres
c) Head offices centres

1.1.9 Project interested parties
The project has many interested parties and the success or failure of it will mean quite a lot to many.
The main parties with interests are;
1) The financiers
2) The company directors
3) Employees and think tank
4) The beneficiaries
5) The state
6) The main company
31

7) The external fraternity of financiers and governments (global impact)
All the interests by various parties will be taken care of by the company as planned. To implement the project, the operations plan will be as shown below.
Operations Strategy
The operations will be divided into four major groups;
A) The main administration division.
B) Settlements division
C) Social welfare division
D) Support division

32

Chart No 3 Interested parties

33

1.2.0 Inter- parties relationship
The relationship of the above parties is as per the table below
Table 7Inter- parties’ relationship

Party

Interest

Point of reference

Measurable
observation
Financiers
1) Funds used as planned
1)Directors and company
1) Finance project
1) Project funds
1) funding levels
2) Loans repaid in full
operations 2) Evaluate operations2) Constant presence 2) Evaluation results
3) Satisfaction of beneficiaries
2) Beneficiaries reactions
Directors
1) Project mission success
1) Financiers for funds support
1) Give mission 1) Guidance on all
1) Timely
2) Poor elevated to prosperity
2) Policy board for direction
policies
matters
adherence to
3) Base for poverty eradication 3) Employees and think tank for
2) Direct mission
schedule.
formed.
mission execution
execution with
2) budget control
4) Beneficiaries cooperation and
prudence
3) Delivery to the
dedication to mission objectives
beneficiaries
Employees and
1) Continued service to a
1) The main interests are for the
1) Act as per 1) Services to the 1) Improvements on
think tank
prosperous project
beneficiaries
management policy company and the A) Social welfare for
2) Working with future hope
2) The company as an employer 2) Solve beneficiary
beneficiaries
beneficiaries
3) Working where one is
problems
B) Project
appreciated
Productivity
C) Company financial
results
Company
1) Accomplish poverty
1) External Funding 1) Settle the landless 1) Land to settle on 1) Numbers satisfied
eradication mission
2) Proper management by
2) Educate them
2) Farm inputs
with shelter
directors
3) Support them as
3) Education 2) Numbers able to
3) Proper service by employees
needed
4) Health
feed themselves
4) Dedication by beneficiaries 4) Operate for extra
5) Commercial 3) Numbers in good
funding for
Facilities
health
expansion
4) Numbers
economically busy
Beneficiaries
1) Move out of poverty
1) The project for a start up base
1) Be obedient and 1) Cooperation and
1) Farm out put
2) Have a hope for the future for
2) Individual effort to attain
work as directed by
hard work
2) Personal
themselves and children
efficiency in education,
the project
achievements
productivity morals socially
34

Duty(Actions)

Deliverable

accepted behavior.
State
1) What has been done to the 1) The financiers as development 1) Observe and give
community
partners
corrective advices
2) What the state has gain in
2) Private companies as
on policy, security
growth and in welfare
development agents
and personnel and
3) Whether the same can be
3) Beneficiaries as cooperators in
especially moral
extended to other areas
national developments
support
Global
1) Global impact on poverty
1) The financiers satisfaction1) Constant monitoring
community
2) Investments results and 2) Management operation systems
of the reactions
effectiveness
3) State reactions
3) Lessons from such financing
4) Beneficiaries reactions

1) Support1) Support in security
2) Security
,staff and moral
3) Give essential
support
staff when
required
1) Noticeable 1) Comments by the
presence and global community
interaction
between the
stakeholders

1.2.1 Company and Project
There shall be a distinction between the company and the project. The company means SAMULAND INVESTMENTS COMPANY .The project meansall
activities undertaken by the company as
a) The main sponsor,
b) Manager and director of
c) implementations and
d) All matters related with the project.
All these project activities wherever they will be shall be known as the SAMULAND PROJECTS.
Where the company does any farming on the project areas it will be taken as any ordinary farmer with no special preferences. All farmers will be treated the
same regardless of the positions held in the company or project management.
The management of the project will be done by the company through the Implementation Board established by the board of directors of the company. The
implementation board is an arm of the board of directors of Samuland Investments Company.
The company board of directors is the supreme authority in the project and by virtue of its authority; it has established two other boards for running the project
works and operations. These are the policy board and verification boards
The implementation board is the highest authority in the project and only answerable to the board of directors. Its activities are overseen by the oversight board
that report directly to the board of directors.
The management of the project is interlinked to the company management in that the directors of the company are also the directors of the project.
35

Many project divisions are controlled by the company directors. The board of directors of the company hold the same capacity in the project.
The project management operations are organized from company level down to job or activity level so that both managements (company and project) are
controlled from same point.
1.2.5 Chart No 4 Company and the Project Relationship

1.2.2 Expectations from Samuland Investments Company
A- Samuland Investment Company as sponsor will;
1) Source funds for the project
2) Guide the project
3) Make rules and regulations
4) Decide on all matters of the project.
5) Establish bodies to implement, run, control, and oversight the operations of persons or group of persons giving any service or services to it or any other
entity where Samuland Investments Co. has any interest relevant to this project
6) It will allocate to itself parcels of land where it has a project and use it for any purpose it
deems fit for it needs.
B- Samuland investments Company as manager and employer will;
36

a) Plan for works to be carried out on the farms and project areas
b) Hire and fire employees
c) Hire professional services
d) Determine the budgets for operations
C- Samuland Project shall;
a) Operate as per the project vision given by the directors
b) Act as per directors mission on poverty eradication
D- Samuland Investments Company as farmer:
a) Be productive on all farming activities.

1.2.3 COMPANY AND PROJECT OPERATIONS
Project And Company services and products
The company will start its agricultural operations/ activities immediately on take-over of the farms and start producing horticultural produce, with emphasis on
products that can be sold fast and produce funds quickly.
It is the policy of the company to satisfy food requirements and that the rule is that 25 % of the land allocated to each applicant is to be used for loan re-payment
purposes while 30 % is for domestic food. The rest 45 % is for rotation purposes & homestead. The company will grow domestic food as a share of its production.
The company will construct the main water storage and delivery system to the farmers and provide 75 % of the water requirements while the farmers must provide
themselves with the balance of 25%.
Each farmer shall be a member of the company’s stores and credit facility where all the farming requirements will be availed on credit. The company therefore
will establish the supplies stores and the savings and credit for the supply of farming and other necessary items.
Each farmer will take his/her produces to the company’s collection centres for marketing by the company on behalf of the farmers. Various other services will be
available from the company and project facilities. The company and the project will provide other services to the farmer through various establishments of the
project.

37

1.2.4 SERVICES BY THE PROJECT AND COMPANY
The company will provide many services to both the farming community, traders and the visiting persons as per the needs of each case. The company and project
products are many and therefore many sources from the company. They are divided into about six groups according to the nature of need.
1) Settlement on land and plots: these matters are solved by the lands office at the Head Quarter. All matters of land sales shall be dealt with by this office and
here shall the lands records be kept.
2) The Support Services: there are very many needs that arise and are required by any community to operate and survive.
Our project will need;
a) Water for farming and domestic use, clean enough for the purpose intended and available at the correct place and time and enough quantity.
b) Communication systems: both roads, telephone and any other method for passing information or materials from place to place conveniently. Roads and other
services are therefore needed.
c) Buildings: these form a base for operations from day one, purpose is accommodation, storage and operations as factories, offices for administration, and
provision of other services such as medical and schooling
3) Material Supplies: The major participants in the project are farmers and hence they require farming related materials and services:
a) Farm inputs such as seeds, fertilizers and manures tools and equipment for their work
b) Machines and implements for works on the farms
c) Transportation from and to the farms for their products and goods
d) Marketing of produce
e) Finance services for their day to day operations
f) Knowledge centers for advice and moral support
g) Health care centers for any sickness on their children and labour forces
h) Security for them and their properties.
These services will be provided by:
1) The stores and supplies department of the project for materials
2) Company farms for livestock needs
38

3) Agriculture departments for all farm related needs, control of production and the marketing of produce
4) The Sacco services will provide all financial needs
5) The social services division will take care of education, morals and health
6) The administration shall cover all matters of security and tranquility in the farms and trading centers

1.2.5 SERVICES
The company’s main objectives being to assist in the poverty eradication which is the key policy of the world today will look for funds from the people of good
will so that it can be able to finance the services towards that goal. The services to be provided are as:
1) The customers of the company’s products and services: The products of the company in this respect are the sub-divided portions. The services are the provisions for credit facilities provided by the company stores,
irrigation water and marketing of the farmers produce.
2)

Marketing of the farmers produce:

It is the duty of the company to sell the farmers produce to the consumers
3)

Financial services:

To the farmers through the banking section that is the SACCO
These services will be provided through divisions established by the project

1.2.6 MAIN OPERATIONS INTEGRATION FOR PROVISION OF SERVICES AND MATERIALS

39

Chart 3Project services and material sources.

Deliverables Analysis
The project operations are designed such that each of the five main divisions has a specific, expectable and measurable output which is either a material or a
service. Some deliverables are shared by two divisions such as livestock by both the company farms and supplies department or the funds by the stores sales
and HQ land sales.
40

1.3.1 Table No. 8 operations centres
1--81 Main operations Directors
Main centres (Divisions)
centres
1--82
a ) Production
1--83
1) Supplies and stores
1--84
2) Support services
1--85
3) Industries
1--86
4) Agriculture
Farming
1--87
5) Financial services
1--88
b)Social Services
1--89
1) Education
department
1--90
2) Public health
department
1--91
3) Recreation
department
1--92
c) Farmers welfare department

41

1.2.8 PROJECT ACTIVITES ORGANIZATION (A=Project activities)
Chart 4Project Activitie

42

43

1.2.7 Project Management Organization
Chart 5Operation centres codes (levels: Board—participants and Divisions)

44

THE 6 MAIN OPERATIONS DIVISIONS

1.2.8 MANAGEMENT ORGANISATION (Chain of Authority)
To accomplish the project objectives as planned and have the expected results the operations shall be managed by the below planned chain of command and
control

45

Chart 6Administration

1.2.9 Chief Officers of the company and Project
A. The Chairman Samuland Investments Company
The main authority for of the project lies with the Board of directors and all matters of policy are controlled by this body. Its executive powers are vested in the
hands of the chief executive who acts on their behalf. The chief executive is answerable to this board only
(It is important to note that policy section is a section of the administration division)
46

B. The Chief Executive Officer
The chief executive is the eyes of the board of directors and in charge of all project and company operations. In addition to being in charge of all project
operations, he is specifically responsible of the following sections.
1) Finance section of the administration Division
2) Maps and records offices
3) Allocations section
4) Planning and survey sections of the settlement division.

C. Chief of administration
This chief office is in charge all of administrative matters of the project especially those matters that touch on matters related to the beneficiaries’ interests. His
operations are as contained in the General administration division allocations. He will be able to intervene where conflicts of interest occur and likely to
interrupt the smooth running of the project. He is answerable to the C.E. O.

D. Chief Agriculture Officer
His mandates are as contained in the settlement division.
E. Chief Civil works Officer
In charge of;
1) Roads
2) Water works
3) Buildings
F. Chief supplies Officer
This officer is in charge of all supplies for the project and co-ordinates the supply, requisitioning and storage of the project needs.
G. Company Land Controllers
47

Shall be in charge of production and operations of the company properties (Lands)
Chief Social Welfare office
This officer is in charge of matters related to the health and education of the project people.
All these senior persons are all answerable to the chief executive office

H. Operations guide
The policy board will issue policies to guide the operations on all matters relevant to the project objectives. The main policies are;
1) Settlements policy
2) Finance policy
3) Agriculture policy
4) Social services policy
5) Education policy
6) Livestock policy
7) Water policy
8) Management policy

1.3.0 Divisions Analysis
A. Head Quarter division
The main administration division will have the following sub-divisions with their departments as shown.
1) General administration composed of;
a) General office for administrative matter.
b) Security control offices
c) Liaison and communications office
d) Personnel offices
e) Registry office
2) Finance Office composed of:
48

a) Project accounts office
b) Company accounts office
c) Investments office
d) Revenues offices
e) Audit
f) Statistics
g) Agriculture loans department
h) Trading centers commercial loans
i) Sacco division
j) Requisitions department
3) Policy department ( This department is for the management and control of all company and project matters It is the decision center)
a) Board of directors
b) Policy board
c) Executive committee
d) Operations team
e) Implementation teams
f) Verification teams
B. Lands (Settlements) sub division of Head quarter Division
Its main sections are:
A) Agriculture lands
B) Trading centers
C) Company lands (company lands cover those lands allocated to the company (S.I.C.) for farming and those allocated to the same company and its subsidiaries
and those allocated to the project for the benefit of the community.)
The settlements division has the following offices for common use;
a) Maps and records office
b) Lands allocation office
c) Planning and survey office
For administrative purposes the settlement division has the following autonomous departments.
49

C. Agriculture Department.
This is in charge of all matters related to farm production. The following are its main sections
1) Livestock developments
2) Crops department
3) Research and environment matters control
4) Quantity control
5) Quality control
6) Implements Hire department
7) Produce sales and marketing
8) Produce collection centers
9) Produce transport
10)
Packaging and Packing houses

D. Trades Department.
The main purpose of this section is to control and regulate the trades in the trading centres for the welfare of the company and community in the project areas.
The main sectors are.
1) Trades and licensing control
2) Trades financing
3)
E. Company Farms Division
These are the lands allocated to the company for farming operations. They include lands temporarily held by the company for future allocations o the farmers.
Crops division
1) Livestock divisions
2) Bio fuels farms
50

3) Research land
4) Project lands
5) Contingency lands
F. Social Welfare
These is the division charged the all matters related to ways and means of developing physical and spiritual wellbeing of an individual to enable him to be
economically free and socially acceptable. It covers matters of health, education and morality. The main sections are;
A) Public Health with these divisions
1) Public health
2) Hospitals
3) Clinics
4) Cemeteries
B) Education department
1) Basic education ( covering all learning from nursery schools to secondary levels)
2) Advanced education ( Covering post basic level)
3) Technical education
4) Mature age learning for literacy and skills
5) Special needs schools.
6) Churches
C) Recreation
For all social recreation needs
1) Sports complexes
2) Open air recreation centers
G. Support Division
The support division is the main supplies source for the project. It is charged with the sourcing all material needs for operations both by the company and
the farmers. it has five major sections:
A) Supplies
1) Farm in puts
2) Tools and machines
51

B) Water Supply
1) Dams and storage works
2) Delivery systems
3) Irrigation water
4) Domestic consumption (farm Area)
5) Trading centers water Supply
6) Civil works and constructions ( This covers buildings and roads)
7) Sewerages
H. Stores and Supplies
C) Agro-Industries
1) Milling operations
2) Dairy works
3) Canning factories
4) Bakeries
5) Bio fuels
6) Any value adding activities will be established
D) Light Industries
1) Metal works
2) Wood works
3) Power supply
4) P.V.C. factory
E) Storage centers
1) Dry foods stores
2) Perishable goods stores

1. 3.1 FORMATION SUMMARY
1. The project formation is based on the following;
1) That there will be a willing financier to fund the project as proposed.
2) That the management team is willing to take the project as planned to the end
3) That the beneficiaries shall operate as directed by the management team at all times.
52

Hence the operations will be geared to
1) Provide good administration and management of all resources for the social welfare of all. This will make the farmers able to repay their share of the loans
commitments by generating income from their farms
2) Cause production to increase from company activities and the farming community thus benefiting the farmers with increased revenue.
3) Social welfare to upgrade the standards of living and better and secure future with savings after all operations and expansions have been made.
Thus:
1) Project Formation
A) The project coordination ( Management) will present the project proposals to the financiers ( benefactor for actions
B) The funding terms are set drawn down and finalized. Funds are then releases.
2) Project Main Account
A) All project finances are deposited in one main account from which all operations centers will be fed.
Operations centres votes and accounts are established as
1) Administrative – which will cover all management operations
2) Production—This will cover all farm inputs ,all dry foods farm outputs and all support activities
3) Social welfare—To cover all matters of
i) Education
ii) Health Morals

4) Management
The management will cover



The finance sections
Lands sales and settlements
53

• Investments
• Personnel departments

Policy matters and external communications
• General project control and administration
5) Farms
This will cover
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.

Company farms
Beneficiaries farms
All lands bought by the project for all purposes
i. Specifically the lands shall be grouped as
Agriculture lands
Commercial lands
Communal utility areas
Land ownership shall be categorized as follows
Company farms
Farmers lands ( beneficiaries)
Project lands

6) Support
The support section covers
I.
II.
III.

All water systems- Dams, storage tanks and delivery systems for domestic and irrigation water to the farmers and consumers in the commercial centers
Roads and project buildings
Industries- light and agro industries
6. Social Services
This will cover
a.

All educational facilities
54

b.
c.

Public Health institutions
Churches and counseling centers and recreations

Education is to cover academic, technical and special schools for special needs

7. Beneficiaries
This will cover all persons who are on the project as farmers by registration. They are the persons who have bought settlement lands on contract sale
agreements from the project. By this sale, project will have provided them with shelter, clothing and food. This will be the basic principle for poverty
eradication.

8. Company Farms
These farms will generate revenue for the operations. The company will be treated as a farmer.
9. Revenue
All the operations by the beneficiaries, the company and the project shall generate for
i) Operations by farmers and project
ii) Savings for farmers and project
iii)
Expansion of the project to cover more needy people
iv)Repayments of the loans

1.3.2 GROUNDS FOR TAKING THE PROJECT AS IS PLANNED
A ) AGRICULTURE AND POVERTY IN KENYA
A) Kenya is an agriculture country with only about 20% of the country being arable land. And productive both in livestock and crops.
B) The other 80% is arid or semi-arid and fit for livestock only
C) The semi-arid areas can produce crops if irrigated agriculture is practiced.
The greater part of the 20% arable land is in Central Kenya and parts of the Rift Valley. These were occupied by the European farmers before
Kenya independence. These farmers occupied also parts of semi-arid areas where they raised livestock. When independence came, many of these farmers were
55

taken over. They were sub divided and allocated to landless as settlement schemes. Other farms were bought by land buying companies and similarly used for
settlement. The land parcels were usually not economical especially in the semi- arid areas.
Changes also took place in the planting plans where the indigenous communities were not allowed to plant cash crops. The farmers planted only
subsistence crops. When change comes they went for cash crops – tea and coffee.
All these new developments had serious effects on food supply and contributed much to poverty.
a) The arable lands in Rift Valley produced enough wheat and maize for the nation but when subdivision took place in some farms the production when down.
The farms in Central Kenya were turned into horticulture farms for export and domestic food being sidelined. This resulted in a drop in milk and beef
production.
b) The ranches in the arid and semi-arid areas produced both milk and beef, on sub- division; these farms became uneconomical to operate hence a drop in output
and more poverty. Food security is a problem and can grow worse if invention measure are not taken considering that the populations is also growing.
c) In the rural areas the farmers shifted to cash crops doing away with food crops hence need for importing even the basic commodities like maize.
These treads have moved more and more people to poverty and hence a need for intervention. Our project will intervene in a small way but its success
will show the way forward and many will benefit from the operations of the project.
B) INTERVENTIONS
To intervene, the project intends to act as follows
1) Allocate economical land parcels to the farmers
2) Allocate food production areas for the farmers’ domestic needs
3) Allocate and control cash crop production areas.
4) Establish dry foods stores to take-up the excess produced by the farmers
5) Encourage diversification of domestic foods
6) Shift from rain fed farming to irrigation farming
7) Apply mixed farming methods
8) Establish marketing systems for;
1) Local markets
2) National markets
3) Export markets
9) Establish support services for the farmers as;
1) Financial services
56

2) Stores and supplies
3) Irrigation water systems
4) Technical support in crop and livestock production
Establish environment control and research centers to help in the development and control of quality and health productivity
With all these measures being taken, the goals will be achieved and a happy and healthy society will be born. If these steps are taken a little further, the whole
nation and the world benefit greatly.
C) OBJECTIVES AND ACHIVEMENTS PLAN
The main objective is to settle our applicants who are poor and to eradicate poverty from them through our combined efforts and through hard work and above all
through external help from financiers. We shall be creating a precedent for eliminating poverty through cooperation between the rich and the poor where there
is a will for doing that.
Hence:
1) The initial funding by the financer will help us create a stable base and within the first 12 months we shall settle about 1000 persons excluding the
employees.
2)

After another 12 months another 800 persons will be settled.

3)

By the end of 42 months we shall have settled over 3,000 persons.

We shall create employment for several thousand persons since every applicant, according to our plans, will employ at least three persons per acre through the
company’s employment bureau. By then about 90,000 persons will be working on the farms supported by another 2500 people on various works such as
clerical jobs, drivers and traders. Our estimated population will be approximately 100,000 within the first five years in our project area.
The lives of the settlers and the employees will be improved for the better since the activities will be throughout the year. The socials services provided by the
company will also improve the standard of living.
The profitability of the company and the individuals will improve due to increased output. The policy of the company is to produce continuously throughout
the year and to back the farmers to produce with the same rate.
The project success will be achieved through,
57

1. The efforts made by the financers to fund the project\
2. Their willingness to assist us
3. The Company management willingness to work for both a profit and helping the poor
4. The compliance of the poor people to work as instructed by the management
The company will have achieved its mission in that;
It will have started the program of improving other people’s lives by showing them how to free themselves from poverty by working,
1) By building social facilities
2) By setting affordable charges that will be used in the maintenance and expansion of project needs.
These include schools, hospitals, churches and such other needed social amenities to cater for both the farmers and their employees and the people in the trading
centres.
Samuland Investment Company has formulated a system where the farmers, employees and the financers will each be satisfied and feel that at least one has played
his part well.
The project mission will address these issues and eliminate or reduce them to levels where the lives of those affected will improve. Nearly every person is affected
by one or more of the above lacks and hence need for addressing these lacks for their existence in people reduces them to level below human beings. The directors
have formulated the way forward for eradicating these social ills and hence the formation of this project to be known as SAMULAND POVERTY
ERADICATION PROJECT. Or simply the SAMULAND PROJECT
The ranches identified for acquisition are in Laikipia County but the project can acquire properties anywhere as the project expands.

D) VISION STATEMENT
Poverty can be eliminated or reduced if the poor and the rich combine efforts to remove it, its causes and effects
Poverty is lack of:a) Materials
b) Knowledge (Technical or any form of wisdom that will take one from a point to another or enable him to do something meaningful to himself or someone else.
c) Health that will enable him to be productive
d) Morals that will make him socially acceptable to people and society ( honesty, trustworthy and self-respecting )
58

Any person with any of these is said to be rich and any without them is poor. Many people see material elements as a measure of riches but this is not true at all
times. The people with material wealth will always want to be surrounded by health and knowledgeable people for protection of their wealth and multiplication
of their wealth. If these same people are not morally upright they will exploit the poor and hence increase poverty. Reason is that they lack morals. On the other
hand if the materially rich are also morally rich they will benefit the community around them and hence reduce poverty.
The answer to poverty reduction rest with the people who are both materially and morally rich and hence willing to support the poor out of poverty. On the
other hand, those that are lacking in materials, need to be honest and knowledgeable so that they can utilize what is given to them appropriately for their own
good and improve their economic positions.
The two groups need to work as a team with a common goal and objective. When their actions are coordinated properly poverty will be reduced or eliminated
in human society.

59

2.0.0 PROJECT COSTING
The project will require financing for all the planned activities. These funds will be applied in the following main areas;
1) Land purchase with all mandatory charges and costs up to allocation level.
2) Construction of fixed developments to a usable level.
3) Operation funds for day to day use till the project can generate its funds.
4) Funds to buy tools, machines and implements.
5) Funds to finance the farmers operations
6) Funds for the project Sacco as initial capital.
Table 8Project costs centres analysis

PROJECT
No.
COSTING
2--0
2--1
2--2
2--3
2--4
2--5
2--6
2--7
2--8

SAMULAND PROJECTS
COSTING
Activity / Centre Name Location

COSTING
Agendas for discussion

Duties, goals and objectives

the cost of the mission
Areas to be costed
a) Land size
b) Project limits
c) Preferences
d) Participants
e) Locations
f) Management
g) Financing

2.0.1 Projected Land for purchase
a) Land Sizes
Land sized based on the following figures as per farmers applications for agricultural lands:
The plan is to acquire about 70,000 acres of land and use it as follows:60

a) Company operations both farming and others.
b) Project areas services and production
c) Social facilities and infrastructure
d) Farmers operations
e) Commercial and recreation centers
f) Mandatory roads

Table 9Proposed Land size

Agriculture lands (Farming
purposes)
Company lands
39,700.00
Communal use lands
60.00
Project lands
819.00
T otal (Company and project
activities)
Farmers farms

40,579.00
28,621

Trading centres
300.00
Lands for sale
28,921
Government lands
500.00
Proposed total
70,000.00

61

Table 10Land distribution

Land Parcels sizes( Acreage
ranges )
5 to 10
2,442.00

13,392.0
0

272.00

4,423.00

156.00

5,215.00

30.00

2,670.00

17.00

2,750.00

5.00

1,850.00

2.00

11,500.0
0

1.00

28,200.0
0

2,925.00

70,000.0
0

12.5 to 20
25 to 50
60 to 100
125 to 200
250 to 500
Company

Company

Totals

62

2.0.2 Land Uses
The proposal is to sub divide the whole land into small parcels ranging from 5 acres to 500 acres and sell them for farming purposes to the farmers. About
3,000 farmers will be settled on about 29,000 acres. The company and the project will take the remaining 41,000. Out of the 41,000, road reserve will take 500
acres and 300 acres for trading centres (T.C.) the project 825 acres balance is for Samuland Investments Company as a farmer. It is important to note that the
farming industry is allocated about 68,325 acres to answer the hunger question.
Table 11Land costs distribution centres

2--9 Land size for project Physical
use
Ground
2--10
2--11
2--12
2--13
2--14
2--15
2--16
2--17
2--18
2--19
2--20
2--21
2--22
2--23

Purchase of all lands ( Projected 7000 Acres)
To acquire these lands the following are
considered
a) Land price to the vendors
b) Mandatory costs
1) Registration fees
2) Conveyance costs
3) Stamp duties
4) Costs title deeds and
Leases
c) Agents’ commissions
d) Mandatory preparation costs
1) Perimeter survey
2) Land use planning
3) Ground survey
4) Allocation costs
5) Transport and
accommodation costs

2.0.3 Tools and Machines
To operate, the farmers and the company will require both tools, machines, motor vehicles and other types of heavy machines.
The proposal is that farmers with more than 25 acres of land be allocated with a tractor with minimum implements to enable ploughing and harrowing. If more
than 50 acres a pick up vehicle be added to his allocation. The humanitarian sector be allocated other types of machines for their operations.
To assist the farmers below 25 acres the project to have a department with these tools and machines for all their needs including harvesting machines for hire.
63

Table 12Tools and machines and other operating areas

2--24Costs of machines and tools involved
2--25

2--26

Project operations

2--27
2--28
2--29
2--30
2--31
2--32
2--33
2--34
2--35Cost of Daily operations HQ
in the project area
2--36
2--37
2--38
2--39Operations Funding
2--40
2--41
2--42
2--43
2--44
2--45
2--46
2--47

These are the tools and machines the will be
required to operate in the company and project
area. The farmers will buy them from the
stores facilities.
The areas that the project will restrict its
operations as per the objectives of the mission.
Main operation areas are;
1) Offices
2 ) Factories
3) Farms
4) Stores
5) Schools and hospitals
6) Transport
7) Constructions
Day to day operations by;
a ) Company and project
b) Farmers
c) Traders in commercial centres
Categories of funding to be established as:
a) Head Office Operations
b) Head Quarter Subsidiary Operations
c) Land acquisition costs price
d) Company farms operations
e) Support Services
f) Stores and Supplies
g) Agriculture services
h) Social services
64

2--48
2--49Project HQ Operations HQ
2--50
2--51
2--52
2--53Funding farmer’s day to HQ
day operations
2--54
2--55
2--56
2--57Farms operated by the GRD/L
company
2--58
2--59
2--60
2--61

i) Farmers operations
To manage and coordinate the project accounts
involved
a) Head Office Operations
b) Head Quarter
subsidiary Operations
c) Land acquisition costs
price
Independent offices attached to HQ
a) The Sacco bank
b) Trading centres trade loans
c) Stores and supplies
Farms owned by the company ( Samuland
Investments Co. for its operations as a farmer
Funds allocated as;
a) Crop farms
b) Livestock farms
c) Bio Fuel farms ( and Hospitality facilities)

2.0.4 Operations Funds
Operations funds will be as follows
a.
b.
c.
d.

Head quarter activities
Division and departments activities
Farmers day to day operations
Sacco funds

In the allocation of funds a distinction will be made for commercial and humanitarian activities. In summary the funds will be marked as follows:
1) Total project funds required
2) Funds sources
a) External funds
65

b) Internal funds
3)

Activity category
a) Commercial use
b) Humanitarian uses

4) Funds general application
a) Land acquisition
b) Fixed developments
c) Movable assets
d) Operations funds
e) Sacco funds

Table 13Major Areas of Operations

2--62

Stores and materials supply and HQ
sourcing

2--63
2--64
2--65
2--66
2--67
2--68
2--69
2--70 Support services such as water andHQ
roads
2--71
2--72

management and control and sourcing of
all industries, consumption and farm
inputs
these are divided as:
a) farm inputs
b) Dry foods
c) Machines and tools
d) Construction and building materials
e) Light industries
f) Agro-Industries
To enable other areas to operate by
sourcing the required services and
materials
These cover:
a) Water sourcing, storage and delivery
systems
66

2--73
2--74
2--75
2--76
2--77 Agriculture services to be providesHQ
to farmers
2--78
2--79
2--80
2--81
2--82
2--83
2--84
2--85
2--86
Welfare of the farmers
HQ

2--87
2--88
2--89
2--90
2--91
2--92
2--93 Allocate funds to these divisions HQ
2--94
2--95
2--96
2--97
2--98

b) building and maintenance of roads and
required buildings
c) Transport and repair works
d) Printing press
e) Sewages works
To take care of all farm matters
a) Extension services
b) Seedling nurseries
c) Environment matters
d) Research services
e) Collection centres
f) Sales and marketing
g) Quantity and Quality control
h) Implements Hire services
To deal with matters of social benefits to
the project community e.g. education
and health
a) Education department
1) Regular education
2) Adult education
3) Technical education
4) Special needs education
5) Advanced institutions of learning
Cost the individual divisions as per
required duties costs ( Accounts Names)
Main operation centres are as :
a) Project HQ Operations
b) Support services
c) Company Farms
d) Stores and Supplies
67

2--99
2--100
2--101

d) Agriculture Services
e) Social Welfare services
f) Farmers Agriculture Welfare
Services

Table 14Main Categories of operations centres as identified for the project
2--102Main funds Accounts
2--103HEAD QUARTER

OPERATIONS

Day to day operations of project

ACCOUNT
2--104LAND PURCHASE

Purchase of all lands ( Projected 7000 Acres)

ACCOUNT
2--105HEAD QUARTER

SUBSIDIARIES

ACCOUNT
SERVICES
ACCOUNT
2--107COMPANY FARMS MAIN
ACCOUNT
2--106SUPPORT

2--108STORES

AND SUPPLIES MAIN
ACCOUNT
2--109AGRICULTURE DIVISION
FUNDS ACCOUNT
2--110SOCIAL WELFARE DIVISION
MAIN ACCOUNT
2--111FARMERS FUNDS
ALLOCATION MAIN
ACCOUNT
2--112PROJECT FUNDS
ACCOUNT

Other Independent offices attached to HQ
for financial services
To enable other areas to operate sourcing the
required services and materials
Farms owned by the company ( Samuland
Investments Co. for its operations as a
farmer
management and control of all industries
consumption and materials sourcing
To take care of all matters related to farm
activities
To deal with matters of social benefits to the
project community e.g. education and health
The grouping done for allocation to farmers (
To departments to fund them)
As per divisions summary of accounts total

Table 15Applications Centres Funds Allocation

2--113FUNDS SUMMARY

Kshs.

US $
68

2--114Lands

Total land costs
10,800,000,00 105,365,8
0
54

2--115Overheads

2--116Fixed Assets

2--117Movable Assets

Head Quarter
operations
Permanent
developments

2,750,000,000 26,829,26
8
6,830,000,000 66,634,14
6

Assets
2,120,000,000 20,682,92
7

2--118Operating Funds

2--119Total Project funds

Funds for day to day
operations

15,000,000,00 146,341,4
0
63

Total needed
37,500,000,00 365,853,6
0
59

69

Graphic 1 Funds Application Data
Graphic No 1 Funds Application data

40,000,000,000
35,000,000,000

30,000,000,000
25,000,000,000
20,000,000,000
15,000,000,000
10,000,000,000
5,000,000,000
Lands

Overheads

Fixed Assets

Movable Assets

Operating Funds

Total Project
funds

2.0.5 Projected costs break down.
The funds as costed are analysed in details as per the table below.
Table 16Projected funds break down (Land acquisition costs)

2--121
2--122
2--123
2--124

PROJECT FUNDS
BREAKDOWN
Funds application analysis
Land Costs
Land costs

Kshs

US $
70

2--125

Conveyance

2--126

Stamp Duty

2--127
2--128
2--129
2--130

9,500,000,000

92,682,927

6,500,000

63,415

765,000,000

7,463,415

3,500,000

34,146

285,000,000

2,780,488

200,000,000

1,951,220

40,000,000

390,244

Titles
Survey work
Commissions Agents
(Brokers)
Planning & consultations

2--131

Lands
10,800,000,000 105,365,854

2.0.6 Overhead funds
Table 17overhead costs

2--132
2--133

Overheads
Financial costs

2--134

Preliminary expenses

2--135

Stationery

2--136

Travelling expenses

2--137

Telephones

2--138

Misclls overheads expenses

2--139

625,000,000

6,097,561

15,000,000

146,341

60,000,000

585,366

75,000,000

731,707

50,000,000

487,805

75,000,000

731,707

Transport
71

2--140

Insurances

2--141

Salaries & wages

2--142
2--143
2--144

250,000,000

2,439,024

250,000,000

2,439,024

900,000,000

8,780,488

75,000,000

731,707

375,000,000

3,658,537

2,750,000,000

26,829,268

1,300,000,000
5,000,000,000
80,000,000
250,000,000
200,000,000
6,830,000,000

12,682,927
48,780,488
780,488
2,439,024
1,951,220
66,634,146

Expendable material
Diesel and other fuels
Overheads

2.0.7 Fixed developments
Table 18fixed developments

2—145
2—146
2—147
2—148
2—149
2—150
2—151

Fixed Assets
Buildings
Dams & water system
Fencing
Roads construction expenses
Irrigation works
Fixed Assets

72

2.0.8 Movable assets
Table 19movable assets

2--152
2--153
2--154
2--155
2--156
2--157
2--158
2--159
2--160
2--161

Movable Assets
Livestock
80,000,000

780,488

85,000,000

829,268

725,000,000

7,073,171

175,000,000

1,707,317

200,000,000

1,951,220

250,000,000

2,439,024

230,000,000

2,243,902

375,000,000

3,658,537

2,120,000,000

20,682,927

750,000,000

7,317,073

1,000,000,000

9,756,098

2,750,000,000

26,829,268

4,500,000,000

43,902,439

Implements
Operation tools
Furniture & Fittings
Tractors
Heavy Plants
Motor Vehicles -3 tons
M/v + 3 tons
Movable Assets

2.0.9 Operating funds
Table 20operations funds

2--162
2--163
2--164
2--165
2--166
2--167

Capital Funds
Imprest funds
Trading centres funds
Farmers operating funds
farm inputs (stores)
Start -up Cash (Sacco Bank)
73

2--168

Operating Funds

2--169

Total Project Cost

6,000,000,000

58,536,585

15,000,000,000

146,341,463

37,500,000,000

365,853,659

2.1.0 FUNDS APPLICATIONS
Funds Allocation Plan
The project funds are meant to enable the project meet its objectives and especially the main stakeholders. The table shows how the funds have been distributed
to the various sections of operations, among them the farmers. The farmers account has not been allocated any funds because the farmers will source their needs
from the various project departments.
Lands for their use will be allocated by lands department that has already been allocated its land costs funds. Operations fund will come from the Headquarter
subsidiaries (the Sacco and Trading Centres funds). Other services and farm inputs have been similarly catered for through the project departments.
The projected financing funds will be applied as analysed in table
The most important objective is to satisfy all the stakeholder or parties that have an interest in the project.

The project funds will be used for the following purposes;
a) Commercial activities
b) Humanitarian activities

2.1.1 Tables list
Various tables have been drawn to tabulate the funds allocations for commercial and humanitarian activities
Table A; Land costs. From item
Table B; Overheads from item

2—170 to 2—181.
2—182 to 2--194
74

Table C; Fixed developments from item

2—195 to 2--201

Table D Movable assets from item

2—202 to 2--211

Table E Operating capital funds from item

2—212 to 2--219

Table A Lands funds
2--170 FUNDS APPLICATION BREAKDOWN
2--171 FUNDS BREAKDOWN
Project
2--172 COSTING ANALYSIS
2--173
Lands Costs Data
Kshs
2--174
Land costs
9,500,000,000
2--175
Conveyance
6,500,000
2--176
Stamp Duty
765,000,000
2--177
Titles
3,500,000
2--178
Survey work
285,000,000
2--179 Commissions Agents
200,000,000
(Brokers)
2--180 Planning & consultations
40,000,000
2--181
Lands
10,800,000,000

Commercial

Humanitarian

Project

Commercial

Humanitarian

Kshs
7,600,000,000
5,200,000
612,000,000
2,800,000
228,000,000
160,000,000

Kshs
1,900,000,000
1,300,000
153,000,000
700,000
57,000,000
40,000,000

US $
92,682,927
63,415
7,463,415
34,146
2,780,488
1,951,220

US $
74,146,341
50,732
5,970,732
27,317
2,224,390
1,560,976

US $
18,536,585
12,683
1,492,683
6,829
556,098
390,244

32,000,000
8,640,000,000

8,000,000
2,160,000,000

390,244
105,365,854

312,195
84,292,683

78,049
21,073,171

Table B overheads
2--171FUNDS BREAKDOWN
2--172 COSTING ANALYSIS

Project

Commercial

Humanitarian
75

Project

Commercial

Humanitarian

2--173
2--182
2--183
2--184
2--185
2--186
2--187
2--188
2--189
2--190
2--191
2--192
2--193
2--194

Lands Costs Data
Overheads
Financial costs
Preliminary expenses
Stationery
Travelling expenses
Telephones
Misclls overheads
expense
Transport
Insurances
Salaries & wages
Expendable material
Diesel and other fuels
Overheads

Kshs

Kshs

Kshs

US $

US $

-

-

US $

625,000,000 500,000,000
15,000,000 12,000,000
60,000,000 48,000,000
75,000,000 60,000,000
50,000,000 40,000,000
75,000,000 60,000,000

125,000,000
3,000,000
12,000,000
15,000,000
10,000,000
15,000,000

6,097,561
146,341
585,366
731,707
487,805
731,707

4,878,049
117,073
468,293
585,366
390,244
585,366

1,219,512
29,268
117,073
146,341
97,561
146,341

250,000,000 200,000,000
250,000,000 200,000,000
900,000,000 720,000,000
75,000,000 60,000,000
375,000,000 300,000,000
2,750,000,000 2,200,000,000

50,000,000
50,000,000
180,000,000
15,000,000
75,000,000
550,000,000

2,439,024
2,439,024
8,780,488
731,707
3,658,537
26,829,268

1,951,220
1,951,220
7,024,390
585,366
2,926,829
21,463,415

487,805
487,805
1,756,098
146,341
731,707
5,365,854

-

-

-

Table C fixed developments
2--195
2--196

2--197

2--198
2--199

Fixed Assets
Buildings
1,300,000,
000

1,040,000,0
00

260,000,00
0

12,682,927

10,146,3
41

2,536,585

5,000,000,
000

4,000,000,0
00

1,000,000,
000

48,780,488

39,024,3
90

9,756,098

80,000,000

64,000,000

16,000,000

780,488

624,390

156,098

250,000,00

200,000,000

50,000,000

2,439,024

1,951,22

487,805

Dams & water system

Fencing
Roads construction
expenses

76

0
2--200

2--201

0

Irrigation works
200,000,00
0

160,000,000

40,000,000

1,951,220

1,560,97
6

390,244

6,830,000,
000

5,464,000,0
00

1,366,000,
000

66,634,146

53,307,3
17

13,326,829

Fixed Assets

Table D Movable assets
2--202
2--203
2--204
2--205

Movable Assets
-

-

-

Livestock
80,000,000

64,000,000

16,000,000

780,488

624,390

156,098

85,000,000

68,000,000

17,000,000

829,268

663,415

165,854

725,000,00
0

580,000,00
0

145,000,00
0

7,073,171

5,658,53
7

1,414,634

175,000,00
0

140,000,00
0

35,000,000

1,707,317

1,365,85
4

341,463

200,000,00
0

160,000,00
0

40,000,000

1,951,220

1,560,97
6

390,244

250,000,00
0

200,000,00
0

50,000,000

2,439,024

1,951,22
0

487,805

230,000,00
0

184,000,00
0

46,000,000

2,243,902

1,795,12
2

448,780

375,000,00
0

300,000,00
0

75,000,000

3,658,537

2,926,82
9

731,707

Implements
Operation tools

2--206 Furniture & Fittings

2--207

2--208

Tractors

Heavy Plants

2--209 Motor Vehicles -3 tons

2--210

M/v + 3 tons

77

2--211

Movable Assets
2,120,000,0
00

1,696,000,0
00

424,000,00
0

20,682,927

16,546,3
41

4,136,585

Table E Operating capitals fund
2--212Operating Capital Funds
2--213

-

-

-

Imprest funds
750,000,000

600,000,000

150,000,00
0

7,317,073 5,853,659

1,463,41
5

1,000,000,0
00

1,000,000,0
00

-

9,756,098 9,756,098

-

2,750,000,0
00

2,750,000,0
00

-

26,829,26 26,829,26
8
8

-

4,500,000,0
00

4,500,000,0
00

-

43,902,43 43,902,43
9
9

-

6,000,000,0
00

6,000,000,0
00

-

58,536,58 58,536,58
5
5

-

15,000,000,
000

14,850,000,
000

150,000,00
0

146,341,4 144,878,0
63
49

1,463,41
5

37,500,000,
000

32,850,000, 4,650,000,0
000
00

365,853,6 320,487,8
59
05

45,365,8
54

2--214 Trading centres funds

2--215Farmers operating funds

2--216 farm inputs (stores)

2--217 Start -up Cash (Sacco
bank)
2--218

2--219

Operating Funds

Total Project Cost

78

2.1.2 PROJECT COSTING SUMMARY
The project costs are high and the amounts involved huge. The loan amount is Kshs 26.0 Billion (US $ 253.7) and assuming the interest rate is maximum 4.5%
p.a. the interest will be about 12.5 Billion making total repayable Kshs 38.5 billion ( US $ 375.6 ). The project has to source another Kshs 12.0 billion (US $
117.1) from internal financing hence a total of Kshs 50 Billion (US $ 487.8).
In addition, the project has to generate funds to cover all mandatory and necessary operational needs. There are other financial, social, and moral commitments
and obligations to be looked into too. The project has to cover the following items:1) Repayment of principle amount
2) Payment of interests on principle
3) Source internal financing funds
4) Source operations funds
5) Source for expansion funds
6) Source contingencies funds
7) Great savings accounts to avoid later external borrowing.
The project funds must therefore be utilized to the maximum benefit of the project and the community in the most prudent and economical ways. This will give a
way for a peaceful and satisfying exit and hence set a precedent that can be enumerated by many in the struggle to eliminate poverty from the community
The costs for starting, operating and sustaining the project are based on the data of operations costs. The choice of items is based on the needs required to achieve
and sustain the goals and objectives of the project. Mission objectives being at the front.
All the funds will be in a main project funds account shown as Number 2—11. Funds movement will follow a strict movement pass that will leave a trace hence
control and loss detection becoming easy.

2.1.3 Project Stakeholders (Interested Parties)
There are many stakeholders and the success or failure of it will mean quite a lot to many.
The main parties with interests are;
1) The financiers
2) The company directors
3) Employees and think tank
4) The beneficiaries
5) The state
6) The main company
79

7) The external fraternity of financiers and governments (global impact)

Table 21Interested Stake holders

All these parties have an interest in the project as each has a particular line of concern.
1) Some will be interested in the benefits they get as individuals
2) Others on the social impact positive or negative
3) Others where it can be a solution to many ills related to poverty and other lacks
80

In all cases this project will have a big social impact, it is the desire of the directors that the impact be positive
1) The financiers have an interest;
A) Project company to repay loans and deliver to the beneficiaries
B) Beneficiaries to see whether they have benefited from the financing to the maximum
C) The management and employees as to whether their experience can be used elsewhere
2) The state has an interest in:
a) Project operations to solve similar national problems of poverty
b) Whether such approaches to development can improve national growth
c) Whether such types of financing have benefited both the beneficiaries as individuals and as a nation.
3) The global community has interest in :
i) Whether such a project can be a solution to global poverty and especially food security
ii) Whether more funds can be allocated to such projects by more internal groups such that all stakeholders benefit.

3.0.0 FUND SOURCING
The project will be financed with both borrowed and generated funds and
It is proposed that the funding of the project activities be done from the following sources;
1) External sources in the form of loans or grants
2) Internal sources in the form of income generating activities.
3) Contributions by the directors.
Table 22 Funds Sourcing

SAMULAND PROJECTS PLAN
FUND SOURCING
3--0
PROPOSED FUNDS SOURCING PLAN
3--1
3--2
3--3

FUNDS BREAKDOWN

Project
Kshs

Commercial
Kshs

Humanitarian
Kshs

External financing
25,625,000,000

20,500,000,000 5,125,000,000
81

3--4

Internal financing

3--5

Project Main Funds

11,875,000,000

9,500,000,000 2,375,000,000

37,500,000,000

30,000,000,000 7,500,000,000

82

Graphic 2Funding Sources Data
Graphic No. 2 Funding Sources Data

40,000,000,000
35,000,000,000
30,000,000,000
25,000,000,000
20,000,000,000
15,000,000,000
10,000,000,000

5,000,000,000
Project
External financing

Commercial
Humanitarian
Internal financing
Project Main Funds

3.0.1 PROJECT FINANCING AND APPLICATIONS
The project will be financed with funds sourced from the following areas:
1) External Sources as loans
2) Internal funds generated from the project activities
These funds will be applied in two main activities:
1) Commercial activities
2) Humanitarian activities
The loan to borrow is about 68.5% of the project cost while internal financing is 31.5% commercial sector is 80% as the humanitarian is 20%

83

The humanitarian part of the project will generate revenues and be able to contribute towards the repayment of the external obligations. These revenues will
mainly be in the form of services and charges made by the relevant departments for services rendered.
The project will have to generate revenue so as to cover the following areas:
1) Repayment of external loans and interest
2) Generate funds to cover the internal funding portion
3) Generate funds to sustain the project full cycle without further external borrowing
4) Generate funds for both contingencies and savings

3.0.2 FINANCING FUNDS MOVEMENT
Chart No. 10 Project general funds movement
Project Funds movement

External Sources
code 131
Project consolidated
Funds code A-13
Internal Sources
code 132
Directors and shareholders
code 133
Project operations funds
code 134
Project Activities A-11 & A-12
Commercial code A-132

Humanitarian code A-131
84

3.0.3 External funds
The external funding will play a very important role in the start-up funding as both the directors and the farmers cannot be able to raise the amount necessary
even for the purchase of the ranches considering the land prices. Without external help the project will not take off.
For all of these activities to be achieved the company has proposed to seek funding for the project both internally and externally. The proposal is to seek 68.3 %
funding externally and to fund the 31.7 % internally through project operations to generate these extra funds.
The funds will be applied as per the following plan:
The start-up shall be applied in:
A. Acquisition of property
B. Purchase of inputs
C. Payments for salaries and wages
D. Day to day operations expenses
E. Capital developments
F. Generation of revenue for the project and company
The initial loan amount will be used for both commercial and humanitarian use. After the project has stabilized it will be able to generate and use its own revenue
funds for social services and other activities.
The company will need funding for its operations during the first five years mainly for purchasing the projected farms and development of infrastructure. The day
to day operations shall need external financing for a time.
Our plan is to source Kshs. 25,625,000,000 externally and Kshs 11,875,000,000.0 internally. (US$ 250,000,000.00 and US$ 115,853,650 respectively at
Ksh.102.5 per US dollar)
The external loans will be negotiated for a term of 25 years including a grace period of 3 years and the repayment in 22 yearly instalments which is 12 monthly
instalments per year. The interest rate being 3.25% to 4% per annum.

85

3.0.4 SOURCES OF INTERNAL FUNDING
Internal financing is the financing of projected activities with internally generated funds. The whole project is to cost about Kshs 37,500,000,000 (US
$365,853,650) of which Kshs 25, 6250,000,000.00 and 11,875,000,000.00 are external and internal funds respectively
Internal financing will be considered as a debt payable, only superseded by external loan repayment in the order of commitment obligation priorities. Like all
other operations funding, the internal financing will be sourced from the following areas:
1) From sales proceeds of the project and company
2) From the charges revenues made by the company on all services rendered
3) From the direct revenue received from a relevant operation center ( e.g. Water extensions financed with water charges while medical charges shall expand
medical services)
4)
The holding account shall be a temporally source for emergency needs
It will be mandatory that every farmer shall have his sales proceeds reduced by 25% as “Holding Fund Account” and be deposited into an interest bearing account. The
process for deduction is as per chart below

Internal funding is meant to cover the 31.7 % of the project cost as evaluated by the directors as per the project plan.

Chart 7Internal funding sources

86

3.0.5 Sales Proceeds (Charging Procedure)
Table 23Sales proceeds calculations

Sales proceeds handling
process
items handled

Quantity units

Cabbage

Weight

10 tons

cost per Total cost
unit

25,000

250,000

75,000

375,000

5
cattle
Total sales proceeds

625,000
Handling charge 2.5%
15,625
crop /Produce cess 10%
62,500
total charge
78,125
Balance Payable
546,875
With holding account
25%
balance to farmers
account

136,718
410,156

3.0.6 PROJECT FUND SOURCING AND APPLICATION
Project funds as per the costing data will be used for the purposes defined in the project costs.
Data tables;
1) Table A Lands data item 3—7 to item 3—16.
2) Table B Overhead expenses item 3—17 to item 3—29.
87

3) Table C Fixed developments item 3—30 to item 3--36
4) Table D Movable assets item 3—37 to item 3--46
5) Table E Working operations funds item 3—47 to item 3—54
6) Table F funds Application summary item 3—55 to item 3--67
Table 24 Funds Expenditure - Land acquisition expenditure

3--7
3--8
3--9

SOURCED FUNDS
APPLICATIONS
Lands Funds
Land costs

3--10

Conveyance

3--11

Stamp Duty

3--12

Titles

3--13

Survey work

Project

Commercial

Humanitarian

9,500,000,000 7,600,000,000 1,900,000,000

Commissions Agents
(Brokers)
3--15 Planning & consultations

External

Internal

Total

9,500,000,000

-

9,500,000,000

6,500,000

5,200,000

1,300,000

6,500,000

-

6,500,000

765,000,000

612,000,000

153,000,000

765,000,000

-

765,000,000

3,500,000

2,800,000

700,000

3,500,000

-

3,500,000

285,000,000

228,000,000

57,000,000

285,000,000

-

285,000,000

200,000,000

160,000,000

40,000,000

200,000,000

-

200,000,000

40,000,000

32,000,000

8,000,000

40,000,000

-

40,000,000

3--14

3--16

Lands
10,800,000,000 8,640,000,000 2,160,000,000 10,800,000,000

88

- 10,800,000,000

Table 25Overhead expenses

3--17
3--18

Overheads
Financial costs
625,000,000

3--19
3--20
3--21
3--22

500,000,000 125,000,000

625,000,000

-

625,000,000

Preliminary expenses
15,000,000

12,000,000

3,000,000

5,000,000

10,000,000

15,000,000

60,000,000

48,000,000

12,000,000

10,000,000

50,000,000

60,000,000

75,000,000

60,000,000

15,000,000

25,000,000

50,000,000

75,000,000

50,000,000

40,000,000

10,000,000

15,000,000

35,000,000

50,000,000

75,000,000

60,000,000

15,000,000

25,000,000

50,000,000

75,000,000

250,000,000

200,000,000

50,000,000

100,000,000

150,000,000

250,000,000

250,000,000

200,000,000

50,000,000

150,000,000

100,000,000

250,000,000

900,000,000

720,000,000 180,000,000

250,000,000

650,000,000

900,000,000

Stationery
Travelling expenses
Telephones

3--23Misclls overheads expenses
3--24
3--25
3--26
3--27
3--28
3--29

Transport
Insurances
Salaries & wages
Expendable material
75,000,000

60,000,000

15,000,000

25,000,000

50,000,000

75,000,000

375,000,000

300,000,000

75,000,000

150,000,000

225,000,000

375,000,000

Diesel and other fuels
Overheads
2,750,000,000 2,200,000,000 550,000,000 1,380,000,000 1,370,000,000 2,750,000,000

89

Table 26 Fixed developments

3--30

Fixed Assets

3--31

Buildings

-

3--32

1,040,000,00
0

260,000,000

500,000,000

800,000,000

1,300,000,00
0

5,000,000,00
0

4,000,000,00
0

1,000,000,00
0

3,500,000,00
0

1,500,000,00
0

5,000,000,00
0

80,000,000

64,000,000

16,000,000

50,000,000

30,000,000

80,000,000

250,000,000

200,000,000

50,000,000

100,000,000

150,000,000

250,000,000

200,000,000

160,000,000

40,000,000

130,000,000

70,000,000

200,000,000

6,830,000,00
0

5,464,000,00
0

1,366,000,00
0

4,280,000,00
0

2,550,000,00
0

6,830,000,00
0

Dams & water system

3--33

Fencing

3--34

Roads construction
expenses
Irrigation works

3--35

1,300,000,00
0

3--36

Fixed Assets

Table 27Movable assets

3--37

Movable Assets

3--38

Livestock

3--39

Implements

-

3--40

80,000,000

64,000,000

16,000,000

43,000,000

37,000,000

80,000,000

85,000,000

68,000,000

17,000,000

65,000,000

20,000,000

85,000,000

450,000,000 275,000,000

725,000,000

Operation tools
725,000,000

580,000,000 145,000,000
90

3--41

Furniture & Fittings

3--42

Tractors

3--43

Heavy Plants

3--44
3--45
3--46

175,000,000

140,000,000

35,000,000

75,000,000 100,000,000

200,000,000

160,000,000

40,000,000

250,000,000

200,000,000

50,000,000

230,000,000

184,000,000

46,000,000

150,000,000

80,000,000

230,000,000

375,000,000

300,000,000

75,000,000

182,000,000 193,000,000

375,000,000

125,000,000

175,000,000

75,000,000

200,000,000

75,000,000 175,000,000

250,000,000

Motor Vehicles -3 tons
M/v + 3 tons
Movable Assets
2,120,000,000 1,696,000,000 424,000,000 1,165,000,000 955,000,000 2,120,000,000

Table 28 Working Operations

3--47

Capital Funds
-

3--48

Imprest funds

3--49

Trading centres funds

3--50

Farmers operating funds

3--51

farm inputs (stores)

3--52

Start -up Cash (Sacco
banks)
Operating Funds

3--53

3--54

750,000,000

600,000,000

150,000,000

500,000,000

250,000,000

750,000,000

1,000,000,000

1,000,000,000

-

500,000,000

500,000,000

1,000,000,000

2,750,000,000

2,750,000,000

-

2,750,000,000

-

2,750,000,000

4,500,000,000

4,500,000,000

-

2,750,000,000

1,750,000,000

4,500,000,000

6,000,000,000

6,000,000,000

-

1,500,000,000

4,500,000,000

6,000,000,000

15,000,000,00
0

14,850,000,00
0

150,000,000

8,000,000,000

7,000,000,000

15,000,000,00
0

37,500,000,00
0

32,850,000,00
0

4,650,000,00
0

25,625,000,00
0

11,875,000,00
0

37,500,000,00
0

Total Project Cost

91

Table 29Fund Application summary

3--55
3--56
3--57

3--58
3--59

3--60
3--61

3--62

Summary
Project

3--67

External

Internal

Total

Lands
10,800,000,000

8,640,000,000

2,160,000,00
0

10,800,000,00
0

-

10,800,000,00
0

2,750,000,000

2,200,000,000

550,000,000

1,380,000,000

1,370,000,000

2,750,000,000

6,830,000,000

5,464,000,000

1,366,000,00
0

4,280,000,000

2,550,000,000

6,830,000,000

2,120,000,000

1,696,000,000

424,000,000

1,165,000,000

955,000,000

2,120,000,000

15,000,000,000

14,850,000,00
0

150,000,000

8,000,000,000

7,000,000,000

15,000,000,00
0

37,500,000,000

32,850,000,00
0

4,650,000,00
0

25,625,000,00
0

11,875,000,00
0

37,500,000,00
0

Commercial Humanitarian

External

Internal

Overheads
Fixed Assets

Movable Assets
Operating Funds

Total Project funds

3--63 FUNDING SOURCES
SUMMARY
3--64
3--65
External financing

3--66

Commercial Humanitarian

Project
25,625,000,000

20,500,000,00
0

5,125,000,00
0

25,625,000,00
0

-

25,625,000,00
0

11,875,000,000

9,500,000,000

2,375,000,00
0

-

11,875,000,00
0

11,875,000,00
0

37,500,000,000

30,000,000,00

7,500,000,00

25,625,000,00

11,875,000,00

37,500,000,00

Internal financing

Project Main Funds
92

0

0

Graphic 3Funds sources and Application
40,000,000,000

Graphic No.3 Funds sources and Applications

35,000,000,000
30,000,000,000
25,000,000,000
20,000,000,000
15,000,000,000
10,000,000,000
5,000,000,000

Project

Commercial

External financing

Humanitarian

Internal financing

External

Internal

Total

Project Total Funds

3.0.7 Table No. 23 Project Goals and objectives Summary
3--68
3--69
3--70
3--71

A) PROJECT SUMMARY
a) The project mission is to eradicate poverty using various activities undertaken by
1) The poor that need the assistance of those that are capable and not lacking in some
areas
2) The capable and willing to help and ready to listen and advice others
93

0

0

0

3--72
3--73
3--74
3--75
3--76
3--77
3--78
3--79
3--80
3--81

3) A team of managers willing to work, coordinate and guide with integrity and be
accountable.
b) That poverty eradication means enabling those that are lacking can be productive and
economically able if they
Follow guidance with a willing heart.
c) That the project as costed will be able to deliver both the materials and services required as
capable of eradicating poverty
d) That if the funds are applied as planned the project will succeed
B ) COST OF FINANCING
The cost of financing the project are as:
a) The cost of interest on the principle amount
b) The sourcing of the principle amount repayable
c) Cost of sustaining cash flow to meet all the operations costs

94

3--82
3--83
3--84
3--85
3--86
3--87
3--88
3--89
3--90

C) PROJECT GOALS
Goals to achieve
1) Settle about 3000 farmers
2) Create an economic base for the company and the farmers
a) To the farmer a land of their own
b) To the company a bank for further expansion and property enough
to use as collateral in future
3 )Create community with integrity and dignity willing to assist others
4) Form a generation capable of people to carry on the poverty eradication programs
5) Repay all borrowed funds and meet goals to the satisfaction of the stakeholders

95

4.0.0 EXIT PLAN
Exit occurring
The exit of the project shall be comprised of the following events taking place:
1) Repayment of all external obligations
2) Repayment by all farmers all the land purchase price as per the allotment
3) Repayment by the farmers all stores and supplies as per the initial allocation
The happening of these events will enable the company to issue and release individual land title deeds to the farmers and the company.
To successfully exit, the project has to act as follows:
1) Set project and company objectives
2) Evaluate the cost of exiting as per objectives
3) Plan a strategic approach to reach the goals
4) Implement the exit plan as per the strategic approach
Table 30Exit commitments

EXIT PLAN
4--0
4--1
4--2

4--3
4--4
4--5
4--6

EXIT

Project has to repay all borrowed funds and meet
goals to the satisfaction of the stakeholders

PROJECT EXIT
OBLIGATIONS
PROJECT EXIT
Repayment of borrowed funds and meeting goals
REQUIRED
OBLIGATIONS
EXIT OBJECTIVES
To satisfy parties interests and goals
a) Create economic base
Enable the beneficiaries
b) Main obligation
`Repayment of loan
c) Goals of the mission
To create self- confidence and satisfaction
96

4--7
4--8

EXIT PARTIES
EXIT PARTIES

Interested parties that have a stake or benefit in the
project
4--9 a) External financiers Loan Satisfaction in helping and increased revenue
4--10 b) Company interests
Increase in value hence profitability
4--11 c) Shareholders interests
Benefit from the operations, satisfaction and
confidence
4--12
d) Farmers interests
Source of shelter, food and clothing
4--13 e) National interests
Increase national revenue
4--14
f) Global interests
Create confidence for further assistance

4--15
4--16

Exit Assumptions
Assumptions

Conditions held as true and forming a base for certain
conclusions
4--17 A)
It is assumed that the first three years will be a grace period where the interest
will accumulate
4--18 At about 4% pa simple
interest.
4--19 B) The next 22 years will accumulate interest on reducing balance at the same rate
during the loan period.
4--20C) The plan is to borrow about 68.5% of the project cost and finance the balance with
project
4--21
t operations. This will be internal borrowing.
4--22 D) Internal financing will be done out of any funds held by the project as the project
will have the main company engaged in commercial
4--23 Activities. The internal financing (Kshs 11,875,000,000) will take about 10 years.
4--24 E) The fund sourcing will be based on the assumption the loan commitment and
expansion funding is about 31.5% of the sale generated
4--25
F) Other requirements are calculated on this figure of required sales revenue.
97

4--26

EXIT COSTING DATA

4--27

Total Project

4--28
A) External financing
4--29
1) First 3 Yrs.
4--30
2) next 22 Yrs.
4--31
Total Interest
4--32
3) Total payable external
4--33
4) Internal financing
4--34
5) Amounts to finance
4--35 External mandatory payment
4--36
Repayment Costs
4--37
a) External Loan
4--38
b) Annual instalment
4--39
c) Monthly
4--40
GOALS
4--41
4--42 A) External Loan

Amount to source for a
satisfactory exit
External
funding
25,625,000,000
3,075,000,000
12,628,000,000
15,703,000,000
41,328,000,000.00

Project

Principle loan amount
Grace period interest
Interest during production
Total interest payable
Principle and interest
Funding internaly generated
Mandatory financing required 41,328,000,000

11,875,000,000
11,875,000,000

25,625,000,000
3,075,000,000
12,628,000,000
15,703,000,000
41,328,000,000
11,875,000,000
53,203,000,000

Principle
Principle 25,625,000,000
Annual instalment 1,164,772,727
monthly payment
97,064,394

Interest
15,703,000,000
713,772,727
59,481,061

Total Payable
41,328,000,000
1,878,545,455
156,545,455

Objectives to meet
% on sales
External repayments

4--43 B) Internal financing mandatory expansion
funds
4--44 1)Total amounts to Total mandatory to
finance
source
4--45
Savings and
Contingencies
4--46 C) Reserve funds
Contingency funds

Internal
funding

42,000,000,000

27

12,000,000,000

8

54,000,000,000

35

5,000,000,000

3
98

4--47

D) Savings

4--48

2) Total savings

4--49
4--50
4--51

To finance future
expansion

10,000,000,000

6

15,000,000,000
.00

9.62

72,000,000,000

46

15,000,000,000

10

87,000,000,000

56

156,000,000,00
0

100

Production and
Running expenses
Operations cost
Recurrent operations
Overhead costs

Administration of
project flow

4--52 3) Total Expenses
4--53 4) Projected Sales
and Services

4--54
4--56
4--57

4--58

4--59

4--60

4--61

Proposed minimum
collections

Graphic Presentation of Projected sales
and services receipts
Kshs.
Loan Repayment
42,000,000,0
00

27

12,000,000,0
00

8

54,000,000,0
00

35

5,000,000,00
0

3

10,000,000,0

6

Mandatory expansion

Mandatory to source

Contingency funds

Future expansion
99

00
4--62

Recurrent operations

4--63

72,000,000,0
00

46

15,000,000,0
00

10

156,000,000,
000

100

Overheads

4--64

Proposed collections

4—65 Graphic No. 4

Graphic 4 Exit funds as required
Grahic No 4. Exit Funds as required
180,000,000,000
160,000,000,000
140,000,000,000
120,000,000,000
100,000,000,000
80,000,000,000
60,000,000,000
40,000,000,000
20,000,000,000
-

100

Table 31Exit Funds Sources Data

4--66 EXIT FUNDS SOURCING Exit sourcing solutions
PLAN
4--67 SOURCING STRATEGY
4--68 A) Maximize Productivity To provide required funds
4--69
B) Improve social
social responsibilities to
wellbeing
motivate the farmers
4--70 C) Exit Funding Sources Major sources of funds to enable
exit
4--71 Table of Funds Sources
4--72
Sales and Services
4--73 Farm Produce Sales
4--74 Crops sales by company

Kshs.

US $

10,000,000,000

97,560,976

3,500,000,000

34,146,341

4,500,000,000

43,902,439

2,500,000,000

24,390,244

2,500,000,000

24,390,244

3,500,000,000

34,146,341

8,000,000,000

78,048,780

-

-

4--75 Livestock sales by company
4--76
4--77

Medical charges
School fees charges

4--78Water charges account(salesWater usage charge made to the
data)
consumers
4--79
Handling Charges
A charge to be made on all
produce handled by the
transport department
4--80
Crop cess charges
A charge to be made on all
produce on the project area,
industrial or farm product
4--81Agriculture services Charges
4--82

Industrial productions
101

4--83

Stores sales

4--84

TC Plots sales

4--85

sales after the initial
allocations on credit

11,000,000,000

107,317,073

35,000,000,000

341,463,415

500,000,000

4,878,049

Internal overdrafts
-

4--86Investments interests (Banks)
4--87
4--88
4--89
4--90

12,000,000,000

117,073,171

10,000,000,000

97,560,976

52,000,000,000

507,317,073

1,000,000,000

9,756,098

Withholding funds
Loans repayment by farmers and project
Directors contributions
Total Miscellaneous
incomes

156,000,000,000 1,521,951,220

Table 32Exit Summary

4--91
4--92

Exit Summary
Crops sales by company

4--93

Livestock sales by company

4--94

Medical charges

4--95

School fees charges

4--96

Water charges account(sales
data)
Handling Charges

10,000,000,000
3,500,000,000
4,500,000,000
2,500,000,000

4--97

2,500,000,000
3,500,000,000
102

4--98

Crop cess charges

4--99

Industrial productions

8,000,000,000
11,000,000,000
4--100 Stores sales
35,000,000,000
4--101 TC Plots sales
500,000,000
4--102 Investments interests (Banks)
12,000,000,000
4--103 Withholding funds
10,000,000,000
4--104 Loans repayment by farmers
and project
4--105 Directors contributions

52,000,000,000
1,000,000,000

103

Graphic No. 5 operations resources
60,000,000,000

50,000,000,000

40,000,000,000

30,000,000,000

20,000,000,000

10,000,000,000

-

Graphic 5Resources from Operations

Table 33Satisfactory Exit

4--107To exit with total compliance and satisfaction to all, the company and the project
4--108must meet the collection target of Kshs. 156,000,000,000.0 ( US $ 1,521,951,220.0 )
4--109by acting as follows;
4--1101) Provide land to farmers
4--1112) Make farmers productive
4--1123) Operate company farms effectively
104

4--1134) Utilize available funds to maximum benefit
4--1145) Provide effective management services

4.0.1 Project Implementation
The implementation of the project will be done by;1) The directors of Samuland Investments Company
2) Members of the think tank
3) Employees of the company and project
4) The farmers who are the beneficiaries of the project
5) Traders and businesspeople in the trading centers.
The implementation process will be carried out as planned by the management that has organized the whole process.
The managed and organized centres are;
The directors have organized the project from these basic level
Chart No. 12 Base of organization and management plan
Managed and Organized

Samuland Investments Co.

Company Affairs

Project Affairs

105

Table No. 33 Implementation strategy data
IMPLEMENTATION
STRATEGY
5--0IMPLEMENTATION
STRATEGY
5--1

The taking of action by the directors to start the project

a) The whole control is with the board of directors
"SAMULAND INVESTMENTS COMPANY"
5--2
b) Guiding principles are held by the " POLICY
BOARD"
5--3
c) Oversighting by the "OVERSIGHT BOARD"
5--4
d) Ground work will be carried out by the "
IMPLEMENTATION BOARD"
5--5STRATEGY
The starting of the project
5--6Form operation centres ActivityAllocate duties and responsibilities and command chain
5--7Establish operations
ActivityDay to day operations of project
centres
5--8Form administrative
a) Head Quarter Office
structures
5--9
b) Division Administration
5--10
c) Departments administration

4.0.2 SAMULAND PROJECT.
The project will be implemented and owned by SAMULAND INVESTMENTS COMPANY which is a registered private company. (Under the Laws of
Kenya Cap 486).
Samuland Investments Company is hereinafter referred to as the company. It has some other two subsidiary companies with designated duties in the project.
The management of the project will be controlled by the Board of directors of the company through various boards established and mandated to act by the
board of directors.
The major boards are;
106

1) The Policy board the will formulate the policies of the board and the company on all matters.
2) The implementation board that will operate as per the company aims, objectives goals and desires following guidelines as stipulated by the policy board.
3) Oversight board shall oversight the compliance of the implementations as per the planned activities.
There will be a coordinating office to ensure free flow of information between the boards. This will be the communication centre for the four
sections of the company.

4.0.3 PROJECT COMPONENTS
The main components of the project are formulated based on the vision objectives and desires of the directors to help many out of poverty. The
components are meant to support each other in all the activities they undertake.
Chart 8Project Implementation Components

107

4.0.4 PRODUCTION DEPARTMENT
Chart 9Production departments

108

4.0.5 ADMINISTRATION DEPARTMENT
Chart 10Project and company control

4.0.6 Project Control
The control of the project is in the hands of the directors who have divided their duties in the above order. In all case any communication between the various
boards shall be in writing and passed through the communications control. Any substantial communication that fails this condition is invalid and has
consequences. The membership to these boards is as shown in the table below.

109

4.0.7 Boards of Directors
Table 34Boards’ Composition

5--11
5--12

Boards composition

5--13
5--14
5--15
5--16
5--17
5--18
5--19
5--20
5--21
5--22
5--23
5--24
5--25
5--26
5--27
5--28
5--29
5--30
5--31
5--32
5--33
5--34
5--35
5--36
5--37

Member No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

At HQ Composition of boards
Board of Directors
Communications Policy code
code 1
code 2
3
1
1
2
3
4
5
6
6
7
7
8
8
9
9
10
10
11
11
12
12
13
13
14
15
16
17
18
19
20
21

Implementation Oversight code
code 5
4

6
7
8
9

14
15
16
17
18

22
23
24
110

5--38
5--39
5--40
5--41
5--42
5--43
5--44
5--45
5--46
5--47
5--48
5--49Total
5--50Quorum

25
26
27
28
29
30
31
32
33
34
35

25
26
27
28
29

18

2

30
31
32
33

33
34
35
12
9

34
35
16
10

7
7

4

3

2

5

7

5

9
5--51No. 1 to 5 presence
mandatory
5--52Others

3
6

Table 35NOTES: on the boards of directors

5--54
5--55
5--56
5--57
5--58
5--59

1a) No 1 to 18 are the directors and shareholders of Samuland
Investments Co.
b) No. 1 to 5 are the main shareholders with more than 50% of all
the shares
c) these 1 to 5 can sit in any group at any time
d) In O oversight board, they are only members and cannot vote.
They are there as observers only.
It is mandatory that at least two be present in the meeting
otherwise meeting is null and void.
2Directors charged with the duty of communicating the policy
matters and decisions of both the board of directors and policy
board to other sectors.
111

5--60
5--61
5--62
5--63
5--64

Also link between oversight and board of directors. ( No. 9 and
10)
3Excusive members of policy board (19 20 and 21)
4Exclusive members of implementation ( 22 to 29)
5Exclusive members of oversight ( 30 to 32)
Operation
Divisions

5--65
5--66
5--67
5--68
5--69

A) Administration
B) Production
C) Support
D) Supplies
E) Social Services

4.0.9 PROJECTS MANAGENENT ORGANIZATION
Project divisions
The project is divided into the following management divisions. Lands and farmers divisions are controlled directly by the head quarter division.
The other have a divisional head, while farmers division Sacco and lands are headed by a departmental head.
Chart 11 Independent Project Divisions

112

Table 36Administration set up data

5--70 Administration
5--71
5--72
5--73 Lands department
5--74 Support services

centre at HqAll matters of security coordination communication and
tranquillity in the project
a) Chief executive office
b) Executive board by the CEO

centre at HqTo enable other areas to operate by sourcing the required
services and materials
5--75 Social services
centre at Hqeducation, health and morals
5--76 Company farms
centre at HqAgriculture production
5--77 Stores and Supplies centre at Hqsupply of materials
5--78 Farmers Division centre at HqAll matters related to the farming community
5--79 Operation boards At HQ
(At the project
sites)

5.0.0 ADMINISTRATION
Administration of the project covers even the administration of the company (S.I.C.) hence the board of directors are in the administration

113

Chart 12Administration department (Head Quarter Division)

Table 37Contents of the Management structures

5--80Board of directors
(S.I.C.)
5--81Policy board
5--82Oversight board

At HQ

5--83Implementation
Board
5--84Policies
5--85Policy board
5--86Operations Policies
Policy
5--87Management Policy
5--88Property ownership
Policy
5--89Finance policy
5--90Settlements Policy
5--91Water Policy

At HQ

At HQ
At HQ

formulation of guidelines
To verify compliance with policy and
directives of directors

At HQ
Document

formulation of guidelines
matters guiding this board

Document
Document

Matters of administration
Property distribution to stakeholders

Document
Document
Document

Management of funds in project areas
For the control and tranquillity in project
All matters of water ;irrigation domestic and
trading centres
All matters related to social good
All matters of farming
Matters of livestock production

5--92Social Welfare Policy Document
5--93Agriculture Policy
Document
5--94Livestock Policy
Document
5--95Operations

114

5--96Implementation
Board
5--97Head Quarter Office
Operations
5--98Social Welfare
services
5--99Support services and
materials
5--100Stores and supplies
5--101Company farms
5--102Agriculture Services
5--103Operations Policies
5--104Management Policy
5--105Administrative
Management
5--106Production
Management
5--107Support Services
Management

At HQ
HQ
HQ

To deal with matters of social benefits to the
project community e.g. education and health
Various centres points
Various centres points
Farms locations
HQ
To take care of all farm matters
Operations guidelines
Document
Matters of administration

1.6.1 SOCIAL SERVICES

115

Chart 13 Social Services

Table 38Management data contents (HQ operations)

5--108
5--109
5--110
5--111
5--112
5--113
5--114
5--115
5--116

Social welfare
management
Property ownershipDocument
Policy
Company property (S.I.C)
Communal property
Individual property
Finance policyDocument
Investments Department
Commercial sector
Banking

5--117 Head quarter SubsidiariesHQ
5--118
Main funds accountReg. offices
5--119
Division accounts
5--120
Departments Accounts
5--121 Management Operations
accounts
5--122
Productions accounts
5--123 Social Welfare accounts

Property distribution to stakeholders

Management of funds in project areas
Income producing sectors to support
revenue
Income generation
To enable economic developments to
beneficiaries
Other Independent offices attached to HQ
Main operation centres accounts
Main accounts of the projects
Sub accounts of the divisions
All matters of overheads
Production of goods and services
All matters of social good
116

5--124
5--125
5--126
5--127
5--128
5--129
5--130

Industries
Internal audit
Revenue Accounts
Expenditure accounts
Imprest accounts
Settlements PolicyDocument
Lands transactionsActivity

5--131

Lands PurchaseActivity

5--132
5--133
5--134
5--135

Lands Ground visitsActivity
Land sales
Land use
Land use planningActivity

5--136
5--137

Light industries and agro-industries
Control of all assets
Records of all incoming funds
All matters of outgoing funds
Localized and urgent funds use
For the control and tranquillity in project
Purchase of lands for project and company
activities
Purchase of all lands ( Projected 7000
Acres)
Confirm the viability of land identified
Sale to farming beneficiaries
control and implementing land use as per
project, company and government and
environment requirements

Lands ownership
Lands allocation

Table 39Support services Division

5--138

Water Policy

Document

All matters of water ;irrigation domestic
and trading centres

5--139
Water sourcing
5--140
Project water sourcing
5--141 Individual water sourcing
5--142
Water delivery
5--143
Water usage
5--144
Project farming water
5--145 Project Domestic water
5--146
Water control
117

5--147

Water charging

Table No. 40 Social Services Division
5--148
5--149
5--150

Document

All matters related to social good

HQ

5--151

Social Welfare Policy
Education
Samuland Ed
.Department
Nursery Schools

5--152
5--153
5--154

Primary Schools
Secondary Schs
Special Schs

GRD
GRD
GRD

5--155

Technical Sch.

GRD

5--156

HQ

5--157

Advanced Learning
Institutes
Adult Education Depart

All areas of education; academic
,technical or morals
Starting point of all learning (
academics)
Continuation of academics learning
Last stage of basic academic learning
To cater for those insole form of
disability such as slow learning, bride
or deaf
To teach trades especially those related
to agro business applications
All matters related to post-secondary
education
Education both academic and technical
to improve the level of adult
beneficiaries

5--158
5--159

Public health
Public Health

5--160

Cemeteries

5--161

Hospitals

5--162
5--163

Community Health
Samuland Recreation HQ

GRD

HQ

HQ
HQ All matters relevant to public safety in
health ( e.g. environmental
cleanliness)
GRD For the final services to members and
any other cases
GRD Main health provision facility for major
cases from the first aid health centres
GRD First aid centres for minor treatments
HQ
For social sporting activities
118

5--164

Sports Complex

5--165
5--166

Morals
Community Hall

5--167

Churches

GRD

Recreation and sporting area for the
communities

GRD Counselling and knowledge impacting
centres
GRD
For the welfare of the members

Table no. 41 Agriculture division
5--168
5--169
5--170

Agriculture Policy
Agriculture Research
and Developments
Agriculture Research
Division

5--171 Livestock Policy (as part
Agr. Policy)
5--172 Livestock Development &
sales
5--173

Quality Control Centre

5--174

Marketing and Quantity
Control

5--175Livestock Policy As part of

Document
GRD/1--4
GRD/1--4--1

Document

All matters of farming
For research and demonstration
purposes
Centres for coordinating research on
agriculture activities, seedlings and
environment issues
Matters of livestock production

GRD/1--4--2

Agr. Research on livestock
development and sale to farmers.
And A.I. services
GRD/1--4--3
Quality control centre for all
production, farm or industrial
GRD/1--4--4 Control of farm production especially
external destination goods mad
market research
Document
Matters of livestock production
119

5--176
5--177
5--178

Agri. Policy )
Livestock sourcing
Livestock development
Livestock sales

Document
Document
Document

Table No. 42 administration data analysis
5--179
5--180

AMINISTRATIVE
ANALYSIS (Centres)
Project Administration (
HQ)

5--181
5--182

Head Office
Lands

5--183

Personnel Department

5--184

Records

5--185

Samuland Project

5--186
5--187

Samuland Investment
company
Farmers Data

5--188
5--189

Lands Allocations
Finance

5--190
5--191

Company Investments
Operating funds

Activity

HQ
Department at
Hq
Department at
Hq
Department at
Hq
Department at
Hq
Department at
Hq
HQ

All matters of security coordination
communication and tranquillity in the
project

Documentation and storage of data

The grouping done for allocation to
farmers

HQ
Department at
Hq
HQ
120

5--192
Sales proceeds records
5--193
Loans Repayments
5--194 Accounts reconciliation
5--195 Administrations Divisions
5--196
Company Farms

5--197

Social Welfare services

5--198

Production centres

5--199
5--200
5--201
5--202

Industrial productions
Services production
Agriculture Services
Quality Control Centre

5--203

Marketing and quantity
Control

5--204
5--205

Internal markets
National Markets

5--206
5--207

Export markets
Produce Centres

5--208

Parking Houses

5--209
5--210

Research and quality
Marketing and quantity
control

HQ
HQ
HQ
HQ

Farms owned by the company (
Samuland Investments Co. for its
operations as a farmer
HQ To deal with matters of social benefits
to the project community e.g.
education and health
HQ
Farming, industries and material
sourcing
Various centres points
Various centres points
HQ
To take care of all farm matters
GRD/1--4--3
Quality control centre for all
production, farm or industrial
GRD/1--4--4 Control of farm production especially
external destination goods mad
market research
GRD/1--4--5
Markets on the project areas
GRD/1--4--6 Markets outside the project areas but
with national boundaries
GRD/1--4--7
Markets outside the country
ASL/1 Centres strategically placed in the farms
to collect produce from farmers
AS/1 Place where collected produce is sorted
and packed especially for external
markets

121

5.1.0 PROJECT MILESTONES
Timeline
The project intends to accomplish its operations in steps and stages. During the first five years the operations shall be mainly foundation formation.
The achievements of the company goals and objectives shall be measured by the timely attainment of the goals as per the time plan. The situation on the
ground can at times force some modifications but strict schedule and budget shall be followed especially during the first settlement years (1st to 3rd year). It is
within this period that the foundations of the project will be set.
Should the schedule be followed and fit into the time table the project will succeed. Some activities will be continuous over a period of years as the farmers
entry dates have been spread over a period of years. The achievements of the project will be measured by the completion and operation of the various operation
centers as per the milestones table No.3 Some facilities will develop with time and hence take years to complete. The most important thing is an operational
center that is capable of handling its required work and service.

122

Table 40Milestones

5--211
5--212
5--213
5--214
5--215
5--216
5--217
5--218
5--219
5--220
5--221
5--222
5--223
5--224
5--225
5--226
5--227

Main Name
PROJECT HQ
Operations
Company Marketing
Division
Company Investments
Div.
Community Hall
Sacco
Project TC Business
Loans
Company Farms
Project Power Supply
Agro-Industries
Dairy Produce Factory
Flour Mills
Bakeries factories
Slaughter Houses
Farmers Stores
Dry Foods stores
Green Foods Stores

Yr 1
xxxxx

Yr 2

Yr 3

Yr 4

Yr 5

Yr 6 Yr 7 Yr 8

xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
123

5--228 Adult Education Depart
5--229 Light Industries Depart
5--230
Project Workshops
5--231 Mechanical Workshops
5--232
Wood Workshops
5--233
Machinery & Tools
Stores
5--234
Timber Stores
5--235
Petroleum Products
Stores
5--236 Agriculture Department
5--237
Market investments
5--238 Quality Control Centre
5--239 Marketing and Quantity
Control
5--240
Parking Houses
5--241
Transportation
Department
5--242
Project Hire
Implements
5--243
Public Welfare

xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx

5--244
5--245

xxxxx xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx

5--246

Project Churches
Samuland Ed.
Department
Livestock Division

5--247

Bio Fuel Farm

5--248 Livestock Development
& company sales
depart
5--249
Project Roads (HQ)

xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx

xxxxx
124

xxxxx
5--250

Farmers Settlement

5--251

Cemeteries

5--252
5--253

Secondary Schs
Special Schs

5--254

Samuland Recreation
HQ
5--255 Dams & water systems
5--256
5--257
5--258
5--259
5--260
5--261
5--262
5--263
5--264
5--265
5--266

Irrigation System
Domestic System
Community Health
Project TC Water
Supply
Produce Collection
Centres
Agriculture Research
Division
Nursery Schools
Primary Schools
Crop Production
Division
Project Printing Press
Advanced Learning
Institutes

xxxxx
xxxxx

xxxxx

xxxxx xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx

xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx
xxxxx xxxxx
xxxxx xxxxx
xxxxx xxxxx
xxxxx xxxxx
xxxxx xxxxx xxxxx
xxxxx xxxxx xxxxx
xxxxx xxxxx xxxxx

xxxxx
xxxxx

125

5--267
5--268
5--269
5--270
5--271
5--272
5--273
5--274
5--275

P.V.C.Pipes Factory
Drugs Stores
Hospitals
Car Parks

xxxxx
xxxxx
xxxxx
xxxxx
xxxxx xxxxx xxxxx
xxxxx
xxxxx

Canning Factories
Technical Sch.
Sewages

xxxxx xxxxx xxxxx
xxxxx
xxxxx

Bio fuel Industries
Sports Complex

xxxxx
xxxxx xxxxx

xxxxx
xxxxx

Table 41Work break down

5--276 Work Break
Down
5--277
Code
5--278

A

5--279
5--280
5--281

Operation description summary
Member
registration
A-1

Farmers

A-2
A-3

Employee
Traders (TC)

Land search
B-1

7500---25000 Acres

5--284

B-2

25001--40000 Acres

5--285

B-3

40001--60000 acres

5--286
5--287

B-4

60001--70000 Acres
Project Proposal writing

5--282
5--283

B

C

Operating
centre

Agricultural lands applicants, all types of Project Hq
persons
Unskilled, skilled, artisans and professionals Project Hq
All legal commercial operations. retail and Project Hq
wholesale
To cover farmers and project requirements
to half phase two
To cover farmers to half phase three and
project needs
To cover farmers and project needs and
contingencies
To cover any farming extension
Authorization by directors to spend on the
proposed project
126

Duration

Done
partly
partly

Project Hq

Done

Project Hq

Done

Project Hq

Done

Project Hq
Project Hq

Done
Done

5--288

C--1

Vision and mission

5--289
5--290

C--2
C--3

Project costing
Consultation with experts and
writing

5--291
5--292

D

Funding search
D--1

5--293

D--2

5--294
5--295

D--3
D--4

5--296
5--297

E

5--298
5--299
5--300
5--301
5--302
5--303
5--304
5--305
5--306
5--307

Land Purchase
E--1
E--2
EB-1
EB-2
EB-3
EB-4
E--3
E--4
E--5

F

Surveying
F--1

5--308

F--2

5--309
5--310
5--311

F--3
F--4
F--5

Proposed project operations vision and
mission
Proposed project costs
Proposal writing

Listing of possible funding sources
Sending applications for
Send to many possible financers and choose
financing to lenders
best.
Communications with financers
Send details as required
on response
Approval of funds
Sign all documents and agreements
Receipt of funds by project
Fulfil banking requirements on banking
accounts

Project Hq

Done

Project Hq
Project Hq

Done
Done

Project Hq
Project Hq

Done
Done

Project Hq

Done

Project Hq
Project Hq

partly

Project Hq
Project Hq

Consultation with both parties To agree on prices and terms of payments
lawyers
Land purchase
7500---25000 Acres
25001--40000 Acres
40001--60000 acres
60001--70000 Acres
Conveyance
Transfer of lands arrangements
Project Hq
Registrations
Documentation with the department of lands Project Hq
Perimeter survey
Verification of the land details on the
Project Hq
ground
Project Hq
Land use planning
As per the project requirements, farming, Project Hq
commercial and public use
Application for land use changes To the various ministries and departments. Project Hq
to Ministries
Approvals by the departments and ministries
Project Hq
Ground work
Project Hq
Registry Indexing No.
Project Hq
127

5--312
5--313
5--314
5--315
5--316
5--317
5--318
5--319
5--320
5--321
5--322
5--323
5--324
5--325
5--326
5--327
5--328
5--329
5--330
5--331
5--332
5--333
5--334
5--335
5--336
5--337
5--338
5--339

G

H

F--6
Buildings
G--1
G--2
G--3
G--4
G--5
Offices
H--1
H--2
H--3
H--4
H--5
H--6
H--7

I
I--1
I--2
I--3
J

K

J--1
J--2
J--3
Stores
K--1
K--2
K--3
K--4

Allocations
Site office ( day one operations)
Offices
Labour Lines
Stores
Payments office
Project Hq
Company Hq
Investments Hq
Humanitarian Hq
Finance Hq

Project Registry
Printing Press
Administration centre
Internal Security offices
External Security offices
Sourcing external security
personnel
Personnel Recruitment
Project employees
Company employees
Farmers employees

Main day one operations centre for all
operations
Various operations rooms
Advance party accommodation centre
Main advance store
For the payments (cash office)
Project permanent HQ with all facilities
Company matters Hq
All investments operations control
All humanitarian operations
All project and company financial
operations
All enquiries: project and company records
For all project stationary requirements

Project Hq
Project Hq
Buildings department
Buildings department
Buildings department
Buildings department
Buildings department
Buildings department
Buildings department
Buildings department
Buildings department
Buildings department
Buildings department
Buildings department
Buildings department

For liaison with provincial administration

Secondment from Police

For internal general welfare

Senior Project Security
Officer

Persons employed for the project only
Employees on company farms.
Employees for farmers and traders

Personnel officer
Personnel officer
Personnel officer

Procurements Department Formation
Supplies Stores
supply of in-puts, and machineries
Dry Foods stores
For storage of dry produce
Production Stores
For the agro-industries
128

Project Procurement officer
Project Procurement officer
Project Procurement officer

5--340
5--341
5--342
5--343
5--344
5--345

K--5
K--6
Hospital
L--1
L--2
L--3

Petroleum product store
Drugs Stores

All petroleum products
drugs and Fungicides

Project Procurement officer
Project Procurement officer

Health centres
Main Hospitals
Para-medical School

Chief Medical Officer
Chief Medical Officer
Chief Medical Officer

L--4
Community Hall
M--1

Public Health Offices

to be located conveniently
To be centrally placed
for nurses clinical officers and medical
technicians
for general public health matters

Main Hall (Conference)

main advisory centre on all matters

5--349

M--2

Catering centre

conferences and visitors meals centre

5--350

M--3

Hostel

visitors accommodations

5--351

M--4

Recreation centre

5--352

M--5

Sports complex (stadium)

control of recreation and sports
developments
Sporting events centre

5--353

M---6

Open spaces recreation

Public resting places

Director Humanitarian
Department
Director Humanitarian
Department
Director Humanitarian
Department
Director Humanitarian
Department
Director Humanitarian
Department
Director Humanitarian
Department

5--346
5--347
5--348

5--354
5--355
5--356
5--357
5--358
5--359
5--360
5--361
5--362
5--363

L

M

N

Chief Medical Officer

Farming divisions
N--1
Samuland Farm (S.I.C.)
for internal funds for expansions
Farm manager (SIC)
N--2
Bio fuel Farm
bio fuel industry raw materials
Farm manager (BIO)
N--3
Livestock Development.
Livestock development for sale to farmers Chief Veterinary Officer
N--4
Agriculture Research Station Crop development and quality control centre
Chief Agronomist
N--5
Environment Control Centre
For environment impact control and
Forestry officer
forestation
N--6
Labour Lines
Company employees accommodations
Farm manager (SIC)
N--7
Company Hq
Company operations centre
Farm manager (SIC)
N---8
Dams
Company water sources
Farm manager (SIC)
N--9
Crop production control centre
Production control
Farm manager (SIC)
129

5--364
5--365
5--366
5--367
5--368
5--369
5--370
5--371
5--372
5--373
5--374
5--375
5--376
5--377
5--378
5--379
5--380
5--381
5--382
5--383
5--384
5--385
5--386

N--10
O

P

Q

R

Dams
Construction
O--1
O--2
O--3
O--4
O---5
O--6
O--7
O--8
O--9
Roads
P--1
P--2
Trading Centres
Q--1
Q--2
Q--3
Q--4
Q--5

R--2

5--388
5--389
5--390

R--3
R--4
Settlements

For environment impact control and
forestation

Dams design section
To be done as water requirements and needs
Tools Acquisition
Machinery and tools purchase
Machines depot & W/shop
Construction of main depot
Water storage tanks
Construction of storage water tanks
Irrigation water system
water for irrigation purposes only
Water sales and control
Sale of all water provided by project
Domestic Water system
Water for all domestic purposes
T.C. water supply
Water for T.C. supply
Dams and Roads workshops
maintenance and repair of equipment
Workshop construction
Machinery acquisition

Surveying of plots
Registry Indexing No
Allocations
Trades approval
Business loans applications
receipt
Q--6
Financing of business
Water delivery Systems
R--1
Labour recruitment

5--387

S

Reforestation department

Construction of main depot
Machinery and tools purchase
Sub- division into plots
Numbering of plots for registration
To the various applicants
By the business approval committees
From the applicants to the finance
department
By the Sacco

By the personnel: technicians and casual
workers
Trench digging
To be supervised by technicians and water
engineers
Delivery materials acquisition
Water pipes and accessories purchase
Water office construction
construction of main water charging office
130

Forestry officer

Water engineer
Water engineer
Water engineer
Water engineer
Water engineer
Water engineer
Water engineer
Water engineer
Water engineer
Roads engineer
Roads engineer
Surveyor
Surveyor
Project Hq
Project Hq
Project Hq
Manager Sacco
Water engineer
Water engineer
Water engineer
Water engineer

5--391
5--392
5--393
5--394
5--395
5--396
5--397
5--398
5--399
5--400
5--401
5--402
5--403
5--404
5--405
5--406
5--407
5--408
5--409
5--410
5--411
5--412
5--413

S--1

S--2

S--3

T

1
10A
101
102
103
104
105
2
206
207
208
209
210
3
311
312
314
315

20 persons
100 farmers
150 farmers
100 farmers
100 farmers
100 farmers

Project Hq
Project Hq
Project Hq
Project Hq
Project Hq
Project Hq

200 farmers
200 farmer
250 farmers
200 farmers
200 farmers

Project Hq
Project Hq
Project Hq
Project Hq
Project Hq

200
200
200
200 farmers

farmers
farmers
farmers
and contingencies

Construction of the Sacco HQ To serve the farmers, employees and traders
Establishment of services
For loans and payments and deposits
departments

Project Hq
Project Hq
Project Hq
Project Hq
Buildings department
Sacco Manager

Churches
U--1

Receipts of applications

By the approved committee

5--414

U--2

Approval of applications

By the committee

5--415

U--3

By the Project HQ

5--416

U--4

Allocations of plots to
denominations
Financing of construction as
approved

Director Humanitarian
Department
Director Humanitarian
Department
Project Hq

By humanitarian department

Sacco Manager

5--417

U

Sacco
T--1
T--2

Phase
Group
Group
Group
Group
Group
Group
Phase
Group
Group
Group
Group
Group
Phase
Group
Group
Group
Group

V

Workshops
131

5--418
5--419
5--420
5--421
5--422
5--423
5--424
5--425
5--426
5--427
5--428
5--429

W

X

5--430

V--1
V--2
V--3
Schools
W--1
W--2
W--3
W--4
W--5
W--6
W--7
Sales and
Marketing
X--1

5--431

X--2

5--432
5--433
5--434

X--3
X--4
Collection
Centres
Y--1
Y--2
Y--3
Y--4

Y

5--435
5--436
5--437
5--438
5--439
5--440
5--441
5--442
5--443

Z

AA

Power supply
Z--1
Z--2
Z--3
Agro Industries

Wood works
Hire Implements department
Metal Works

For the making of timber requirements
For farmers to hire tools
For supply of metal requirements

Chief Workshops
Chief Agronomist
Chief Workshops

Nursery schools
Primary schools
Secondary schools
Technical schools
Special Schools
Adult Education Schools
Establishment of Education
Depart.

For project children
For project children
For project children
For project children
For all cases
For farmers
To coordinate education

Chief Education Officer
Chief Education Officer
Chief Education Officer
Chief Education Officer
Chief Education Officer
Chief Education Officer
Chief Education Officer

Establishment of marketing
To control produce trades
centre
Establishment of open air
To cater for local and national markets
markets
Build Main Pack House
For internal national and export markets
Acquire machinery and tools For Various uses in packaging departments
To collect farmers produce to the pack
houses
designing of centres
Constructions
Equipping of centres
Quality control
For Project quality and quantity control of
output
supply of solar and wind generated power
designing of plants
Construction
Distribution of power
132

Sales Manager
Sales Manager
Sales Manager
Sales Manager
Sales Manager

Sales Manager
Chief engineer

5--444
5--445
5--446
5--447
5--448
5--449
5--450

AA--1
AA--2
AA--3
AA--4
AA--5
AA--6
AA--7

Flowour mills
Dairy Products
Slaughter Houses
Bakeries
Food Processing
Bio fuel
P.V.C Factory

maize and wheat
milk
For internal use and national market
Local use and surrounding area
National and export
Local use and surrounding area
Local use and surrounding area

Table No. 45 Divisions Summaries
5--451
5--452
5--453
5--454
5--455
5--456
5--457
5--458
5--459
5--460
5--461
5--462
5--463
5--464
5--465
5--466
5--467

MANAGEMENT AND OPERATIONS
ORGANIZATION
OPERATIONS ORGANIZATION PLAN
The operations shall be divided as:
1) Head Quarter operations
a) Administration department
b) Lands department
c) HQ Subsidiaries department
d) Farmers department
2) Company farms
a) Crops farm
b) Livestock
c) Bio fuel and Hospitality
3) Support Services
a) Water department
b) Transport
d Civil Works
i) Roads
133

Chief engineer
Chief engineer
Chief engineer
Chief engineer
Chief engineer
Chief engineer
Chief engineer

5--468
5--469
5--470
5--471
5--472
5--473
5--474
5--475
5--476
5--477
5--478
5--479
5--480
5--481
5--482
5--483
5--484
5--485
5--486
5--487
5--488
5--489
5--490
5--491
5--492

ii) Buildings
iii) Sewages
iv) Workshops
4) Stores and Supplies
a) Dry foods stores
b) Farm inputs stores
c) Machines and tools
d) Light industries
e) Agro Industries
c) Printing Press
5) Social services
a) Education department
b) Public health
c) Recreation
d) Morals ( churches)
6) Agriculture services
a) Research department
b) Livestock development
c) Sales and marketing
d) Collection centres
e) Park Houses
f) Environments
g) Quality and quantity Control
h) Implements Hire department
i) farmers affairs department

Table 42Funding and Operations Summaries

5--493 Operations financing and Allocations Summary
134

5--494 A) The funds allocation is in three steps;
5--495
a) Total funds for the project as per costs
5--496
b) financing for starting operations ( external funds)
5--497
c) Completion funding ( internal funds)
5--498 B) Lands Allocation
5--499
a) Total land proposal is 70,000 acres
5--500
b)Company farms shall take 39,700 acres
5--501
c) farmers to occupy 28621 acres
5--502
d) trading centres 300 acres
5--503
e) Roads 500 acres
5--504
f) Project operations 880 Acres

135

6.0.0 PROJECT FUNDS AND MATERIALS ALLOCATION AND MOVEMENTS
6.0.1 DIVISION FUNDS ALLOCATIONS
All divisions have been allocated funds calculated on the requirements of their departments and duties allotted to them.
The farmers will be allocated an amount which is redistributed to various areas of operations. The farmer’s main needs are:1) Land purchase amounts
2) Operations funds
3) Farm inputs
4) Machines and tools
The costs of these items have been distributed to;
a) Land purchase account
b) Head quarter subsidiaries account that will serve as the project bank
c) Stores and Supplies division
Farmers will be provided with what they require at various facilities established by the project
Project funds are from external and internal sources. External funds will start off the operations and are expected to carry on for the first five to seven years.
This is the formation and stabilizing period. Thereafter the project and farmers will be able to generate their own funds for expanding and completing the
project as planned.
All the funds and materials will be distributed from the project consolidated account and materials supplies stores respectively.

136

137

Chart 14Funds and Material Distribution and Movement

138

6.0.2 DEPARTMENT FUNDS
Chart 15Departmental funds

Where a department has some sub -departments, the funds have been allocated on the basis of the sub departments.
A) Head Quarter Operations;
To cover all day to day operations costs touching on
1) Administration
2) Head office Operations
3) Finance department
4) Samuland Investments Company matters
5) Lands matters ( own funds allocation)
B) Head Quarter Subsidiaries:
Its departments are:
a) The Sacco operating as the project banking section
b) Trading Centers Business loan section
C) Support Services:
Main departments;
139

a) Water system and its sub departments
b) Civil Works and its sub departments
c) Buildings
d) Workshops
D) Stores and Supplies
Main departments:
a) Stores and sub departments
b) Light industries and sub departments
c) Agro-industries and sub departments
E) Company Farms;
Main departments;
a) Areas set aside for Agriculture Division uses on research and developments
b) Area set aside for company as a farmer comprising of;
1) Crop growing
2) Livestock
3) Bio fuel plants also used as a hospitality facilities area
F) Social services:
Main departments
a) Public health and some other sub departments
b) Education with sub departments
c) Recreation and some other facilities of social use.
G) Agriculture Division:
a) Extension services covering:
1) Research on crops, soils and livestock
2) Implements hire services
3) Sales of seedlings
b) Park House services
c) Sales and marketing and other services
140

H) Farmers Division;
Main departments;
a) Settlement
b) Farming
c) Accounts and records

6.0.3 Total Project funds
Total project funds is the amount represented by the total project cost composed of both the external and internal funds. The allocations are done to
reflect;1) All funds as per the project costing
2) External funds allocation for take off
3) Internal funds allocation for further operations and expansion.
4) Allocations done;A) Total funds allocation
B) Land allocation in acres

Table 43 Total funds allocated to the divisions

SAMULAND PROJECTS PLAN
FUNDS ALLOCATION
6--0 TOTAL PROJECT FUNDS
ALLOCATION
6--1 Centre Name
6--2 Lands Account

External
10,800,000,

Internal

Project
-

Acreage

10,800,000,
141

300

000

000

6--3 Head QTR. Account
1,500,000,0
00

500,000,000

2,000,000,0
00

27

3,000,000,0
00

1,250,000,0
00

4,250,000,0
00

-

4,465,000,0
00

2,825,000,0
00

7,290,000,0
00

733

840,000,000

725,000,000

1,565,000,0
00

39,70
0

1,252,500,0
00

2,975,000,0
00

4,227,500,0
00

71

635,000,000

3,000,000,0
00

3,635,000,0
00

540

382,500,000

600,000,000

982,500,000

10

2,750,000,0
00

-

2,750,000,0
00

28,62
1

25,625,000,
000

11,875,000,
000

37,500,000,
000

70,00
1

6--4 HQ Finances Account

6--5 Support Services Account

6--6 Company Farming Account

6--7 Stores and Supplies
Account
6--8 Social Welfare account

6--9 Agriculture Services
Account
6--10 Farmers Operations Account

6--11 Total Project

142

143

144

Graphic 6 Division Funds Allocation

Graphic No. 6 Division funds Allocation

40,000,000,000
35,000,000,000
30,000,000,000
25,000,000,000
20,000,000,000
15,000,000,000
10,000,000,000
5,000,000,000

-

External

Internal

Project

6.0.4 External funds allocation:
External funds will enable the project to start off and hence be able to generate the funds required for complete finance and the expansions needed. The initial
operations will be budgeted on the basis of external funds thereafter on the cash flow projections. Land purchase and farmers funds will be financed totally by
external finances to avoid any risk of a short fall hence delay in any planned activities.
145

Table No 48 External funds Allocation to Divisions
6--13EXTERNAL FUNDS
6--14 Centre Name
6--15 Lands Purchase Account.

External

Internal

Project

10,800,000,
000

-

10,800,000,0
00

1,500,000,0
00

-

1,500,000,00
0

3,000,000,0
00

-

3,000,000,00
0

3,925,000,0
00

-

3,925,000,00
0

1,250,000,0
00

-

1,250,000,00
0

1,500,000,0
00

-

1,500,000,00
0

500,000,000

-

500,000,000

400,000,000

-

400,000,000

2,750,000,0
00

-

2,750,000,00
0

25,625,000,
000

-

25,625,000,0
00

6--16PROJECT HQ Operations

6--17Head quarter Subsidiaries
account
6--18Support Services Account

6--19Company Farms Account

6--20Stores and Supplies
Account
6--21Social Services Account
6--22Agricultures Services
Account
6--23Farmers Allocation
Account
6--24EXTERNAL
FINANCING

146

6.0.5 Internal Funds
Internal Funds these funds will finance the project expansion and day to day operations. The sources being the operations of the project. It is projected that the
internal financing will be completed in about eight and half years during which the planned facilities will be completed. Notable among them being the sewage
systems, sports complex, and a fully equipped hospital. Many social facilities will be financed with these internal funds.
Table No.49 Internal funds distribution to Divisions
6--25
6--26
6--27

INTERNAL FUNDS
Centre Name
Lands Purchase
Account.
6--28
PROJECT HQ
Operations
6--29
Head quarter
Subsidiaries account
6--30

Support Services
Account

Company Farms
Account
6--32
Stores and Supplies
Account

External

Internal

Project

-

-

-

-

500,000,000

500,000,000

-

1,250,000,0
00

1,250,000,00
0

-

2,825,000,0
00

2,825,000,00
0

-

725,000,000

725,000,000

-

2,975,000,0
00

2,975,000,00
0

-

3,000,000,0
00

3,000,000,00
0

-

600,000,000

600,000,000

6--31

6--33

Social Services
Account

6--34

Agricultures Services
Account
6--35
Farmers Allocation
Account
6--36
INTERNAL
FINANCING
6--37

-

11,875,000,
000

11,875,000,0
00

TOTAL
147

ALLOCATIONS

25,625,000,
000

11,875,000,
000

37,500,000,0
00

6.0.6 Funds grouping.
Funds allocated are grouped as per the application and use.
The project funds are in two categories;
A) External funds:- all externally acquired funds
B) Internal funds;- all internally generated funds and applied to the project activities
These funds are then grouped as;
1) Group A is for all funds used or allocated to all land transactions
2) Group B funds allocated for all overhead expenses
3) Group C funds allocated for all permanent structures excluding land
4) Group D all movable assets including livestock but not cash
5) Group E all funds allocated to the financing of day to day needs for production purposes These are the operating funds
6) The total for all these groups is the project total allocation.

Table No.50 Expenditure funds groups
Accounts
Grouping
External
148

Internal
Project
Group A
Land Cost
Registration Cost
Stamp Duty
Title Deed and
Lease
Survey Fees
Planning
/Consultation
Agent Comm
Water Charge
Infrastructure
Clearance

Land cost

Group B
Financial
expenses.
Preliminary
costs
Stationery
Travelling
Telephones

Group C
Buildings

Group D
Livestock

Group E
Working Capital

Dams/Water
System
Fencing
Roads

Furniture

Trading centres funds

Irrigation Works

Machinery and
Tools
Tractors

Miscll costs
transport
Insurance
Salaries
Expendable
material
Diesel Oils
Overhead
Fixed devpmt
Expenses

Heavy plant
Farmers operating funds
Farm Implements farm inputs (stores)
Start -up Cash (Sacco
Bank)

Vehicles -3tons
Vehicles +3tons

Movable assets Operating funds
Total Project

Table No.51 Total funds application as per allocation to division summary
6--38FUNDS
APPLICATIO
NS
SUMMARY
149

6--39TOTAL
PROJECT
6--40 Centre Name

Lands Overheads

Fixed
Devlopmnt
s

Movable
Assets

-

-

Operations Total Project
funds

6--41 Lands Account
10,800,000,
000

-

10,800,000,
000

6--42 Head QTR.
Account

-

983,300,00 187,300,000
0

79,000,000

750,400,000

2,000,000,0
00

6--43 HQ Finances
Account

-

82,800,000

-

45,000,000

4,122,200,0
00

4,250,000,0
00

6--44 Support Services
Account

-

569,500,00
0

4,806,000,0
00

599,300,00
0

1,315,200,0
00

7,290,000,0
00

-

159,050,00 410,000,000
0

198,000,00
0

797,950,000

1,565,000,0
00

-

391,600,00 330,650,000
0

550,250,00
0

2,955,000,0
00

4,227,500,0
00

-

361,000,00 811,300,000
0

448,700,00
0

2,014,000,0
00

3,635,000,0
00

-

202,750,00 284,750,000
0

199,750,00
0

295,250,000

982,500,000

6--45 Company
Farming
Account
6--46 Stores and
Supplies
Account
6--47 Social Welfare
account
6--48Agriculture
Services
Account
6--49Farmers
Operations
Account
6--50Total Project

-

-

-

-

2,750,000,0
00

2,750,000,0
00

10,800,000,

2,750,000,

6,830,000,0

2,120,000,

15,000,000,

37,500,000,

150

000

000

00

000

000

000

6.0.7 External for take off
These fund are very essential for the project to start. They will be used for the most essential activities that will have an almost immediate effect on the
productivity of the project. Operations budgets for the first three years will be based on these funds.
External funds
1) Will finance both land transaction and farmers operating funds in total
2) Finance partially all other activities
3) These funds will not finance the following;
a) Bio-fuel industries
b) Canning factories
c) Car park
d) Sewages
Reason for not financing these four items is that they are not a priority and they can wait for internal financing.

Table No. 31 External funds application per division
6--51 EXTERNAL
FUNDS
6--52 Centre Name

Lands
Purchase
Account.
6--54 PROJECT HQ
Operations

Lands

Overheads

Fixed
Devlopmnt
s

Movable
Assets

Operations Total Project
funds

10,800,000,
000

-

-

-

-

10,800,000,
000

-

909,500,00

154,000,00

51,250,000

385,250,00

1,500,000,0

6--53

151

6--55

6--56

6--57

6--58

6--59

6--60

6--61

Head quarter
Subsidiaries
account
Support
Services
Account
Company
Farms
Account
Stores and
Supplies
Account
Social
Services
Account
Agricultures
Services
Account
Farmers
Allocation
Account

0

0

0

00

-

33,500,000

-

27,000,000

2,939,500,
000

3,000,000,0
00

-

80,750,000

3,402,000,
000

342,250,00
0

100,000,00
0

3,925,000,0
00

-

79,500,000

265,500,00
0

127,250,00
0

777,750,00
0

1,250,000,0
00

-

151,500,00
0

140,000,00
0

300,000,00
0

908,500,00
0

1,500,000,0
00

-

63,750,000

200,000,00
0

209,500,00
0

26,750,000

500,000,000

-

61,500,000

118,500,00
0

107,750,00
0

112,250,00
0

400,000,000

-

-

-

-

2,750,000,
000

2,750,000,0
00

10,800,000,
000

1,380,000,
000

4,280,000,
000

1,165,000,
000

8,000,000,
000

25,625,000,
000

6--62
EXTERNAL
FINANCING

152

Table No.53 Internal funds application as per division
6--63

INTERNAL
FUNDS
6--64
Centre Name

Lands Purchase
Account.
6--66 PROJECT HQ
Operations

Lands

Overheads

Fixed
Devlopmnt
s

Movable
Assets

Operations Total Project
funds

-

-

-

-

-

-

-

375,000,00
0

51,500,000

48,500,000

25,000,000

500,000,000

-

53,250,000

-

15,000,000

1,181,750,0
00

1,250,000,0
00

-

354,000,00
0

1,487,500,
000

290,000,00
0

693,500,000

2,825,000,0
00

-

92,500,000

205,000,00
0

125,000,00
0

302,500,000

725,000,000

-

165,500,00
0

25,000,000

180,000,00
0

2,604,500,0
00

2,975,000,0
00

-

211,250,00
0

660,000,00
0

209,500,00
0

1,919,250,0
00

3,000,000,0
00

-

118,500,00
0

121,000,00
0

87,000,000

273,500,000

600,000,000

6--65

6--67

Head quarter
Subsidiaries
account
6--68 Support
Services
Account
6--69 Company
Farms Account
6--70

Stores and
Supplies
Account
6--71 Social Services
Account
6--72

Agricultures
Services
Account

153

6--73

Farmers
Allocation
Account

-

-

-

-

-

-

-

1,370,000,
000

2,550,000,
000

955,000,00
0

7,000,000,0
00

11,875,000,
000

10,800,000,
000

2,750,000,
000

6,830,000,
000

2,120,000,
000

15,000,000,
000

37,500,000,
000

6--74
INTERNAL
FINANCING
6--75
TOTAL
ALLOCATIONS

Table No. 54 Total Project Depar...

flag Report DMCA
Review

Anonymous
Outstanding Job!!!!

Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors