Keenjhar Lake Resort Project - Sindh Board Of Investment ...

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The table below summarizes the various operating expenses and their respective shares in
different revenue streams for the first year of operations only.
Component
Percentage of
Revenues
Resort and Hospitality
1. Chalets 25%
2. Serviced Apartments 25%
3. Resort Rooms 40%
4. Restaurants 65%
Convention Centre 50%
Golf Course 40%
Overall 37%
14.3.2.2 Maintenance Costs
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Maintenance expenses are estimated to amount to 0.5% of the total Project development cost
every year for general upkeep and maintenance of the facilities.
Major maintenance expenditures are estimated @ 2% of the Project development costs after every
7 years. These expenses are capitalized under the fixed assets.
All maintenance expenses are adjusted for inflation.
14.3.2.3 Depreciation
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Accounting depreciation is assumed @ 5% per annum on the written down value.
14.3.2.4 Finance Costs
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Financial charges on short term borrowings are estimated @18% per annum for borrowings
availed in any year during the operational period.
14.3.2.5 Working Capital
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During the operational period, working capital is assumed as follows:
„ Receivables: 2% of the total revenues.
„ Payables / Accruals: 5% of the operating expenses excluding depreciation.
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Keenjhar Lake Resort Project - Project Information Memorandum