Appraisal

of project

Market&
Technical Financial Numerical
Demand

Project A Project A Project A Project A

Project B Project B Project B Project B

Project C Project C Project C Project C

 Financial analysis seeks to ascertain whether the proposed project will be financially viable in
the sense of being able to meet the burden of servicing debt and the return expectations

Summary of Resources Requirements

Summary Year 1 Year 2 Year 3 Year 4 Year 5

Operational cost 32,100 52,960 64,360 67,360 69,360

Development cost 27,150 16,850 5,300

0 0
Set up cost 23,100

67,360 69,360
Total 82,350 69,810 69,660

$358,540
Overall Total
 Cost estimation of model wind power plant project

Lot Title Component Cost Component

Birr in million Local Foreign

Consultancy service 63.345 0% 100%

Lot 1/2/3 Main civil works 1903.941 30% 70%

Lot 4 Mechanical equipment 182.824 5% 95%

Lot 5 Electrical equipment 285.823 5% 95%

Lot 6 Substation 33.475 5% 95%

Lot 7 High voltage transmission 105.572 15% 85%

Grand Total 2574.98

Operational cost includes

Employees fee and

Material cost

Development cost includes

International Knowledge transfer or consultant cost

Feasibility study of business incubation

Feasibility study of Science Park

Setup cost includes

Fixed asset requirements for

Enterprise office

Student hatchery
 Project Appraisal/Analysis

It often involves comparing various options, using economic appraisal or some other decision
analysis technique. Categories of appraisal criteria are; technical analysis, market and demand
analysis, financial analysis, socio-economic analysis and institutional analysis.

Project life cycle is important to appraise/analyze the project logically.

Project life cycle

Identification

Preparation
Evaluation

Implementation Appraisal/financing

Identification

Our potential project idea is model wind power plant. The project will be installed in the area
where it has wind potential. Since the project is model wind power plant, which is pilot project, it
will be installed in the rural area of a so called KOB ASITIL. In the KOB ASITIL area, there
is a wind potential which is capable of producing and/or generating electricity.
Reason for identification

Ethiopia is a country having abundant natural recourses such as: Hydropower, Geothermal,
natural gas, coal, solar and wind energy etc. Hydropower potential of the country is estimated to
be up to 30, 000 MW.

Major wind farms of the country

The country has only two mind farms: the Adama wind farm and ------------

Feasibility study for wind energy

Wind potential Assessment

Energy Production Estimation

Site Access

Capacity Credit Assessment

At the project study,

The annual electricity production capacity of the Ethiopian Electric Power

Corporation is about 3380 GWH

The number of customers is about 800,000.

The demand is increasing by more than 10% annually.

Hence, the corporation is required to think and work strategically to meet the
power supply need of the socio-economic development of the country.

KOB ASITIL wind potential area

It is situated in the north of Ethiopia Amhara region. The topography of the KOB ASITIL area is
flat.

The study evaluated this wind potential area in response to Construction, Environmental costs
and Comparative value of the energy benefits. The study found that the project will solve the
problem of many households in KOB ASITIL area. The report therefore, recommended that the
project should be pass (selected) further prefeasibility study.
Preparation

It includes pre-feasibility study and feasibility study.

Presence of wind potential in the project area and the multi-purpose character of the project,
which opens a large number of feasible scenarios and project layouts lead to the pre-feasibility
study of the following condition at the project area:-

E Firm (total) energy generation (GWh)

P average annual pressure (Mpa)