PROFILE ON BEE HIVE FRAME

208- 12Table 7.1INITIAL INVESTMENT COSTSr.Total CostNo. Cost Items (‘000 Birr)1 Land lease value 802 Building and Civil Work 1,500.003 Plant Machinery and Equipment 90.004 Office Furniture and Equipment 255 Vehicle 06 Pre-production Expenditure* 757 Working Capital 40.74Total Investment cost 1,810.7Foreign Share 23* N.B Pre-production expenditure includes interest during construction ( Birr 133.04thousand ) and Birr 150 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 599,800 (seeTable 7.2). The material and utility cost accounts for 34.5 per cent, while repair andmaintenance take 4.17 per cent of the production cost.