Profile for the Production of Fibre From Kenaf and Sisal - SNNPR ...

223-14Table 7.1INITIAL INVESTMENT COSTSr.No.Cost ItemsTotal Cost(‘000 Birr)1 Land lease value 2402 Building and Civil Work 3,000.003 Plant Machinery and Equipment 687.504 Office Furniture and Equipment 755 Vehicle 2006 Pre-production Expenditure* 373.417 Working Capital 4343.59Total Investment cost 8,919.5Foreign Share 29* N.B Pre-production expenditure includes interest during construction (Birr273,410 ) and Birr 100 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 24.89 million(see Table 7.2). The material and utility cost accounts for 95.12 per cent, while repairand maintenance take 0.30 per cent of the production cost.