PC-1 FORM

June 7

2010
Subject : Fundamentals of Project Management Submitted to: Sir Immad Jadoon

Group members: Sadia Razzaq (015), Tayyaba Sadiq (006),Naila Khan (021), Saqib Mehmood Afzal (010)

GOVERNMENT OF PAKISTAN PLANNING COMMISSION

1. Name of the Project
Managing Seabucthorns jungles and fields for income generation opportunities in Gilgit Baltistan

2. Location
Gilgit Baltistan Map of the area, clearly indicating the projects location.

3. Authorities responsible for

Pakistan council for science and industrial research (PCSIR) PCSIR responsible for following PC 1 prepared to higher authorities and will responsible for all sorts of accountabilities from PSI Pak Seabucthorn International (PSI) PSI is key implementer of the project and responsible for all sorts of reporting to PCSIR. Ministry for food, agriculture and livestock (MINFAL) MINFAL will be responsible for provision of funds after final approval of PC 1.

4. (a)Plan provision
As the project proposed is financed out of block provision, hence: Total block provision 17 million $ (b) Amount already committed 4 million $ Amount proposed for this project 5 million $ Balance available 2 million $

Provision in the current year =1.5 million dollar

5.

Project objectives

To manage jungles of SBT in a way that its collection and harvesting could become easy and introducing proper cropping of SBT. To enhance and develop proper managed commercialization and marketing of raw SBT and its products. To reestablish PSI and introduce research unit to analyze medicinal uses of SBT raw products. To establish factories of SBT as per selected district to enhance employments opportunities as well as for national revenue.

6.

Description and Justification of Project

Project description: The project managing SBT jungles and fields for income generation opportunities in Gilgit baltistan, will work in Skardu, Khaplu and Gilgit Existing facilities in the area SBT jungles available on about 10000 ha area and the ecology of area have strong capacity to withhold cropping of SBT. Technical parameters The following table elaborates the technical parameters in form of inputs and outputs

Inputs
Managing jungles Managing fields Training in SBT cropping Training in preparing SBT products Establishing factories Reestablishing PSI research unit

outputs
Harvesting become easy SBT introduced as a crop Enhance productivity Provide manpower for factories Enhance employment opportunities and become a source of national revenue Enhance research work on SBT

Physical facilities required for the project.

Physical requirements

Type and amount

Civil works Telecommunication services Machinery Tractor, tube well, processing units in factories Equipment Leather costumes and helmets, cutters Labour Trainers, farmers Governance issues and solution Feudalism is a key issue that is hindering the project due to personal interests; it should be resolved through strict laws by federal government.

Agriculture Production
Present yield = 400-750 Kg per ha Future crop yield= 4-5 tons per ha in case of shelterbelts and 12 tons in case of proper cropping Transport, equipment & field machinery= will be available from MINFAL Effect on farm income = survey shows that income of 50% of target area depends on SBT and it contributes for more than 50% of their total income. Basis for pricing of outputs= field survey

Agriculture extension

History of work SBT is of the ten rarest herbs of the world that is found in abundant in Pakistan. SBT is well known in world for its various pharmaceuticals and cosmetics uses for 3

industrialization in various countries. China is ranked higher in its utilization. The current project designed on the basis of utilization by China because of environmental and geographical matching with Pakistan. Justification of the extension work This project follow the utilizations of China because Pakistan have more hard specie of SBT that bring more economic benefits besides this SBT is found over ten thousand hectors in Pakistan in the form of jungles and hence not used properly. 7.

Capital cost estimates

Date of estimation of project cost estimates (15-april-2011). Basis of determining the capital cost market survey (local versus international) schedule rates estimation on the basis of previous work done Year-wise estimation of physical activities as per following: Items A B C D Unit Initiation Implementation Evaluation Execution Year I 0.5 million$ 1 million$ Year II 1.5 m$ 0.25million$ Year III 0.5m$ 0.25m$ 1m$

Phasing of capital cost be worked out on the basis of each item of work as stated above as per following: Year-I Year-II Year-III Total Total Local FEC Total Local FE Total Local FEC Total Local Items Milli Milli M$ Milli Millio C Milli Million Milli Millio on on Rs on n Rs on Rs on n Rs A 43 26.1 0.2 43 26.1 B 87 61 0.3 130 113 0.2 43 35 0.1 261 87 C 21.75 21.75 21.75 21.75 43 43 D 87 87 87 87 Total 130 87.1 0.5 151.7 134.75 0.2 151.7 143.75 0.1 434 243.1 5 5

FEC 0.2 1 1.2

8. Demand and supply analysis

Description of product SBT raw products i.e. juice, oil, nectar and dried leaves and berries will be used by stakeholders for their pharmaceutical companies as well as they will be exported. SBT processed products i.e. jam, juice, shampoo, tea, puree, powder, squash, oil will be marketed Demand/Supply along with unit price (survey and research results) Products Local price International price Juice Rs 120/lit Rs 300/lit Puree Rs. 120/lit Rs. 350/lit Squash Rs.250/lit Rs.400/lit Oil Rs.600/lit Rs.1000/lit Tea Rs.200/kg Rs.350/kg Powder Rs. 250/kg Rs.400/kg 4

Projected demand/supply for 10 years.

Raw SBT Berries leaves Average production per canal naturally 5.75Kg 50 kg Average production per canal in managed cropping 12 Kg 70 Kg Expected production/canal 20kg 90Kg

Existing and proposed arrangements for marketing. Existing markets for products; various national and international pharmaceutical companies are interested in raw products of SBT for preparing their own products Proposed arrangements; the established factories and research unit at PSI during project will be helpful to develop local companies for producing SBT products as in China and Germany

9. Financial Plan
Sources of financing The amount of equity to be financed from each source Sources Amoun t PCSIR 1 m$ MINFA 2m$ L PND-GB 2m$

10. Benefits of the project and analysis

Category
Financial Economic Social Environmental

Benefits
New employers will be hired and local people will be paid for their contribution new product will be available for income, net revenue could have one more entity Employment opportunities will enhance SBT cropping make soil more fertile and it could be used as shelterbelt to provide nitrogen to crops

Financial analysis Net present value calculation yea r 1 2 3 Outflows Million $ 1.5 1.75 1.75 Inflows Million $ 2.5 3 3 Difference Million $ 1 1.25 1.25

NPV= 1/ (1+r) +1/ (1+r) +1/ (1+r)

NPV=3.169million $ Internal rate of return At 1% discount rate Year Net cash (M$) 1 1.5 2 1.75 3 1.75 Tota 5 l flow Present (M$) 1.485 1.715 1.698 4.8 At 0.1% discount rate value Present value (M$) 1.498 1.746 1.744 5.00

Present value at 0.1% >5M$ > Present value at 1% Quantifiable outputs of the project Proper cropping over 20000ha of land Managed jungles over 10000ha of land Initiation of 3 factories Initiation of 1 research unit of SBT Employment analysis New employment opportunities will start just with initiation of project as a project requirement Permanent employments opportunities will be arise by the project completion i.e. in factories and in research unit as well as informal employments opportunities will be emerged by proper cropping and managed jungles. Sensitivity analysis Impact of delays on project cost and viability Delay in any activity will result in delay in harvesting period from managed jungles and it could further delay the project for about a year

11.Implementation Schedule Starting date: 5-1-2011 Detailed schedule

# 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 Activities initiation phase appropriate training equipment order equipment shipped identifying stakeholder's requirements initiating document design workshops review project detailed design final approval commencing project initiating equipment delivery labour delivery office setup site survey motivation local people survey report managing jungles established nurseries training for cropping SBT prepare land for SBT aerial seedling and field plantation of SBT launching factories ( infrastructure) Reestablish PSI establishing research unit 6

completion date: 7-27-2013

Duration 73 days 1.15 mons 1.15 mons 11 days 1.15 mons 1.15 mons 6 days 7 days 7 days 22 days 7 days 15 days 15 days 41 days 10 days 1 mon 3 days 130 days 2 mons 3 mons 1 mon 10 days 3 mons 341 days 3 mons Start date Finish date 5/1/2011 8/10/2011 5/1/2011 6/1/2011 5/1/2011 6/1/2011 7/1/2011 7/15/2011 5/1/2011 6/1/2011 6/2/2011 7/2/2011 7/15/2011 7/22/2011 7/22/2011 7/30/2011 8/2/2011 8/10/2011 8/11/2011 9/9/2011 8/11/2011 8/19/2011 8/20/2011 9/9/2011 8/20/2011 9/9/2011 9/10/2011 11/5/2011 9/10/2011 9/23/2011 10/11/2011 11/5/2011 9/24/2011 9/28/2011 9/24/2011 3/24/2012 9/24/2011 11/18/2011 11/19/2011 2/10/2012 2/11/2012 3/10/2012 3/11/2012 3/24/2012 9/24/2012 12/16/2011 9/24/2012 1/13/2013 6/1/2012 8/23/2012

26 27 28 29 30

prepare staff for factories establishing processing unit in factories harvesting SBT running PSI and factories final reposting

6 mons 6 mons 140 days 6 mons 1 mon

8/1/2012 9/24/2011 1/16/2013 1/16/2013 7/2/2013

1/13/2013 3/10/2012 7/27/2013 6/29/2013 7/27/2013

Result Based Monitoring (RBM) Indicators

# Input Output Outcome Baseline Targets after Indicator Completion of Project #of trees/canal atleast10 tree/canal %of total cultivated area under SBT cropping 1 research unit 3 running factories At least 60% of cultivated land should bring under SBT cultivation 1 research unit 3 running factories Targeted Impact

1 2

Managing jungles Introducing cropping SBT Establishing research unit of SBT Establishing factories

Managed jungles Proper crops prepared Research unit of SBT 3 factories

3 4

Harvesting become easy Will increase income of people as well as production for factories New product could b investigated Enhance employment opportunities and entity to net national revenue

12.

Management structure and manpower requirements

# 1 2 3 4 5 6 7 Name Dr. Abdul Wahid Jasra Rashid Khan Nabila Ali Rameez Qureshi Akhtar Ali Local farmers Local trainners Designation Project Manager Team Leader Administration officer Assistant Admin Officer Monitoring and Evaluation officer 20/district 5/district

13.

Certificate Prepared by:_________________________ Name, Designation & Phone #

Checked by: ___________________________ Name, Designation & Phone #

7

Approved by: __________________________ Name, Designation & Phone #