PROFILE ON PRODUCTION OF FISHING NET AND SPORTS NET

84-14Table 7.1INITIAL INVESTMENT COSTSr.No.Cost ItemsTotal Cost(‘000 Birr)1 Land lease value 1252. Building and Civil Work 18403. Plant Machinery and Equipment 69004. Office Furniture and Equipment 505. Vehicle 2006. Pre-production Expenditure* 1119.147 Working Capital 89.62Total Investment cost 10324Foreign Share 56.18* N.B Pre-production expenditure includes interest during construction ( Birr 603.39 thousand ) training(Birr 50 thousand ) and Birr 465.75 thousand costs of registration, licensing and formation of thecompany including legal fees, commissioning expenses, etc.B. PRODUCTION COSTThe annual production cost at full operation capacity is estimated at Birr 1.97million (see Table 7.2). The material and utility cost accounts for 10.83 per cent, whilerepair and maintenance take 7.61 per cent of the production cost.