Joint UNDP/World Bank Energy Sector Management Assistance Pr-ogram - Activity Completion Report No. 074B/87 Country: GHANA Activity: SAWmILL RESIDUES UTILIZATION STUDY. (VOLUME II - ANNEXES) OCTOBER 1988 Report of the loint UNDP/Woud Bank Energy Sector Management Assistance Program This document has a restricted distribution. Its contents may not be disdosed without authorization from the Government, the UNDP or the World Bank. MENEGY SECTORMIANACEWENT ASSISTANCE PROGRAM PURP0SE The -Joint UNDP/World Bank Energy Sector Managerent Assistance Program (ESMAP) was started in 1983 as a companion to the Ener>v Assessment Program, established in 1980. The Assessment Program was designed to identify and analyze the most serious energy problems developing countries. ESMAP was designed as a pre-investment facility, partly to assist in implementing the actions recommended in the Assessments. Today ESMAP carries out pre-investment activities in 45 countries and provides institutiondl and policy advice to developing country decision-makers. The Program aims to supplement, advance, and strengthen the impact of bilateral and multilateral resources already available for technical assistance in the energy sector. The reports produced under the ESMAP Program provide governmenta, donors, and potential investors with information needed to speed up project prepar- aticn and implementation. ESMAP activities fall 'into two major groupings: Energy Efficiency and Strategy, addressing the institutional, financial, and policy issues of the energy sector, including design of sector strategies, improving energy end-use, defining investment programs, and strengthening sec'tor enterprises; and - Household, Rural, and Renewable Energy, addressing the tech- nical, economic, financial, institutional and policy issues affecting energy supply and demand, including energy from. traditional and modern sources for use by rural and urban households and rural industries. FUNDING The Program is a major international effort supported by the UNDP, the World Bank, and bilateral agencies in a number of countries including the Netherlands, Canada, Switzerland, Norway, Sweden, Italy, Australia, Denmark, France, Finland, the United Kingdom, Ireland, Japan, New Zealand, Iceland, and the USA. INQUIRIES For further information on the Program or to obtain copies,of the completed ESMAP reports listed lt the end of this document, contact: Division for Global and OB Energy Strategy, Management Interregional Projects and Assessment Division United Nations Development Industry and Energy Department Programme World Bank One United Nations Plaza 1818 H Street, N.W. New York, N.Y. 10017 Washington, D.C. 20433 GHANA SAWMILL RESIDUES UTILIZATION STUDY VOLUME II - ANNEXES OCTOBER 1988 Page Annex 1: List of Institutions and Individuals Coutacted..........* 3 Annex 2: Financial and Economic Analysis Assumptions ............. 11 Annex 3: Classification of Ghana Coumercial Timber Species*...... '9 Annex 4: Mills Surveyed by Mission.............................. 22 Annex 5: Sawmill Process Heat Unit Production Model.............. 26 Annex 6: Grid Connected Cogeneration Models (STP)...............9 34 Annex 7: HIM Cogeneration odels................................. 47 Aunex 8: Saw Blade Cu"' Improvemeuts............................ 78 Annex 9: Indwutrial/Commercial Plant Operational Details......0.* 82 Annex 10: Sawdust-Fired Boiler Conversion Models -- OXil Substitution .............................................. 88 Annex 11: Sawdust-Fired Boiler Conversion Models - Vood Substitution ....... . .......................... 109 Annex 12: Laboratory Test Results on Woodfuels Samples............ 127 Annex 13: Charcoal Production Models.............................. 130 Annex 14: Sawdust Briquetting Plant Specifications and Models..... 137 i Antes 1 List of Institutions and Individuals Contacted Annex 1 Page 1 of 7 LIST OF INSTITUTIONS AND INDIVIDUALS CONTACTED Ministry of Fuel aud Power Mrs. T. Owusu, Deputy PNDC Secretary of Fuel aAd Power Mr. L. Denkyi, Executive Director, National Energy Board Mr. M. Opam, Renewable Energy Officer Mr. J. Attah-Puah, Energy Data Analyst Mr. D. Tarnawiecki, UNDTCD Adviser Ministry of Lands and Natural Resources Mr. C. Birikorang, Actg. Chief Technical Director Forestry Department Mr. J. Francois, Chlef Conservator of Forests Forestry Commission Dr. E. Asibey, Executive Director Forest Products Research Institute Mr. Addo-Ashong, Director Mr. S. Kwabena-Nketiah, Research Officer Building and Road Res2arch Institute Dr. M. Cidigasu. Director Mr. J. Ocloo, Head, Materials Division Mr. Amonoo-Neizer, Head, Structures Division Forest Products Inspection Bureau Mr. J. P'prah, Divisional Manager, Field Services, Takoradi Mr. Mintah, District Manager, Kumasi Mr. P. Haizel, Data Processing Manager Timber Export Development Board Mr. M. Lyons, Managing Director Mr. J. Baidoe, Managing Director-Designate Mr. F. Abraham, Data Processing Specialist Annex 1 Page 2 of 7 Ministrr of Industry Mrs. Woanyah, Deputy Chief Industrial Promotion Officer Mr. Attah-Okine, Senior Industrial Promotion Officer State Transport Co. Ms. E. Nyarko, Traffic Superintendent, Bulk Haulage Division Ministry of Finance and Economic Planning Mr. J. Addaquay, Economist, Central Projects Monitoring Unit National Investment Center Mr. S. Lister, Development Economist (Consultant) National Investment Bank Mr. H. Annan, Head, Economic Research and Statistics Volta River Authority Mr. L. Caseley-Hayford, Chief Executive Mr. P. Laryea, Deputy Chief Executive, Administration Mr. E. Nanka-Bruce, Deputy Chief Executive, Engineering Mr. A. Ahiable, Principal Finance Officer Electricity Corporation of Ghana Mr. Fynn, Managing Director Mr. Addae-Konedu, Commercial Director International Agencies Mr. S. Choi, Resident Representative, World Bank Mr. Pankaj, Transport Economist, World Bank Ms. P. Jones, Country Economist, World Bank Mr. Nyarko-Mensah, Program Officer, UNDP Canadian High Commission Mr. R. Ehrhardt, First Secretary, Development Mr. F. Hack, Second Secretary Ru-Tek Consultants Ltd. Mr. M. Ben-Dzam, Wood Industries Specialist Mr. E. Ben Hagan, Technical Director Anuex 1 Page 3 of 7 Subri Industrial Plantation Co. Ltd. Dr. E. Djokotoe, General Manager Mr. A. Mather, Technical Advisor Specialized Timber Products Ltd. Mr. I. Berbari, Managing Director Mr, T. Berbari, Production Manager A.G. Timbers Ltd. Mr. Zahlen, Mana8ing Director Mr. Borkowski, Chief Engineer Hardwood Timbers Co. Ltd. Mr. Nartey, Managing Director Mr. P. Nartey, Asst. Managing Director Saoud Timbers Ltd. Mr. A. Saoud, Managing Director Mr. M. ishah, Sales Manager Oda Plywood and Timber Ltd. Mr. H. Hage, Managing Director Chaowus Ltd. Mr. C. J. Tu, Managing Director Mr. M. Osei, Factory Manager Mr. F. Baidoo, Production Manager African Timoer and Plywood Ltd. Mr. J. Kanda, Managing Director Capt. A. Owusu, Director of Engineering Mr. Amoayi, Power House Superintendant Marktrace Projects Ltd. Mr. M. Pardoe, Project Manager Cliksten West Africa Ltd. Mr. P. Biaku, Chief Executive Mr. J. Frimpong, Deputy Production Manager Mr. K. Boamah-Darko, Deputy Maintenance Manager -7- Annex 1 Page 4 of 7 MIM Timbers Ltd. Mr. D. Roetzel, Managing Director Mr. I. MacCorquodalep Production Manager Mr. K. Osei-Kusi, Technical Co-ordinator Mr. Osei-Kuffour, Accountant Mr. A. Yamoah, Electrical Engineer Mr. Schumacher, Chief Diesel Engineer Mr. C. Cleur, Mechanical Engineer HIM Agro Ltd. Mr. V. Opku, Accountant Scanstyle Furniture Ltd. Mr. H. Baeni, Joint Managing Director Mr. M. Peperah, Deputy Managing Director Mr. P. Peperah, Kanaging Director, Finance and Administration John Bitar Co. Ltd. Mr. H. Barakat, General Manager Mr. K. Morely, Production Manager Mr. K. Norgaard, Moulding Line Manager Mr. R. Skrzypek, Chief Engineer Western Timbers Ltd. Mr. S. Masri, Managing Director Takoradi Veneer and Lumber Co. Dr. Armstrong-Mensah, Managing Director Mr. E. Prahb Production Manager Kumasi Breweries Ltd. Mr. Barnes, Chief Engineer Mr. Blebu, Boiler Plant Supervisor Mr. Frimpong-Apau, Production Manager Guiness Breweries Ltd. Mr. C. Clark, Managing Director Mr. Agyeman, Deputy Chief Engineer Mr. T. Hutton, Project Manager, Cuiness London Mr. B. Pemberton, Commissioning Engineer Annex 1 Page 5 of 7 Komfo Anokye Hospital Prof. A. Asafo Agyei, Actg. Medical Administrator Prof. J. Hiadai, Head of Dept. of Surgery Mr. A. Asiedu-Ofeit Senior Hospital Secretary Mr. C. Opong, Mechanical Superintendent Mr. Gyasi, Eoiler House i:perintendent Mr. C. Afful, Workshop and Machine Room Foreman Appiah Menka Complex Ltd. Mr. Appiah Menka, Managing Director Mr. D. Sabbabt General Manager Ashanti Oil Mill Ltd. Mr. E. Senah, General Manager Cocoa Processing Co. (WAM) Mr. J. Antonio, General Manager Mr. D. Adjei, Chief Engineer Mr. E. Osei-Opoku, Production Technologist Cocos Processing Co. (CPC) Mr. I. Van Der Puije, General Manager Mr. I. Abbiw, Factory Manager Mr. R. Bondu, Chief Engineering Prestea Goldfields Ltd. Mr. Royea, Ceneral Mines Manager Mr. K. Durston, Chief Mining Engineer Mr. Kusi, Asst. Chief Planning Engineer Mr. E. Morlini, Mill Engineer Mr. Tando, Forester Mr. Coleman, Sawmill Supervisor GIHOC Paper Conversion Ltd. Mr. S. Sowah, General Manager Mr. E. Ovarwe, Maintenance Engineer Mr. A. Boakye, Chief Accountant Mr. M. Martey, Production Manager Annex 1 Page 6 of 7 Lever Bros. Ghana Ltd. Mr. A. Davie, Managing Director Mr. A. Quayson, Technical Controller Mr. W. Selormay, Chief Engineer Mr. B. Amiagyei, Deputy Chief Engineer Food Specialties Ghana Ltd. Mr. M. Adam, Factory Manager Mr. W. Grohb Plant Engineer Ghana Textiles and Manufacturing Co. Ms. P. Pao. Special Assistant Mr. C. Cheong, Production Manager Mr. P. Paul, Workshop Superintendent Mr. C. Ng, Workshop Engineer Tema Textiles Ltd. Mr. S. Pao, Managing Director Mr. J. Oppong-Wadee, Mill Manager Mr. 0. Agyeman-Danko, Technician/Engineer Dorman-Long Steel Ltd. Mr. M. Osei-Asare, Senior Engineer AESC Ltd. Mr. S. Tetteh-Norteh, Regional Consultant Mr. P. Denker, Principal Quantity Surveyor State Construction Co. Mr. Sunny, Regional Manager Mr. Lartey, Assistant Regional Manager A. Lang (Ghana) Ltd. Mr. Arthur, Chief Quantity Surveyor Blackvood Hodge Ltd. Mr. M. Wulff, General Manager Mr. S. Addo, Sales Manager - 10 - Annex 1 Page 7 of 7 Ceramic. Cordeiro Ghana Ltd. Mr. J. Obeng, Managing Director Mr. E. Odei-Ameyam, Director of Administration Mr. E. Darko# Consulting Engineer Mr. B. Kusah, Consulting gngineer Mr. A. Kittoe, Consulting Zngineer GIHOC Brick and Tile Co. Mr. Ackah, Actg. General Manager Mr. J. Amissah-Otoo, Commercial Manager Mr. J. Ocran, Production Manager Ankaful Brick and Tile Co. Mr. K. Manukure-Henoku, Project Manager Coma Brick and Tile Co. Coop Bakers Union, Cape Coast Mr. Samuel Coferafe Tema District Zonal Coop Bakers Union Ltd. Mr. J. Appiah, Vice-President Accra-Tema Bakers Union Mr. Paul Yeboa, President Esquire Bakers, Cape Coast Myseke Bakery, Slmina Modern Bakery, Accra Traditional Fish Smokerst Takoradi Traditional Charcoal Makers, Kumasi - 1] - Annex 2 Financial and Economic Analysis Assumptions - 12 - Annex 2 Page 1 of 7 FINANCIAL AND ECONOMIC ANALYSIS ASSUMPTIONS Methodology Model Description A2.1 Printouts of analyses contained in the Annexes were produced with the aid of a spreadsheet cost/benefit model developed for the Mission. The model separately calculates both annualized and up to 20 year discounted cash flow (DCF) results, which may be compared for internal consistency. Breakeven values represent the price of the selected benefit required to equalize annualized benefits with annualized Costs. The DCP analysis provides for asset replacement at integral multiples of assigned asset life, and calculates internal rates of return as the discount rate which equalizes net present benefits and net present costs. Financial internal rates of return (FIRR) are for all resources engaged, i.e. before financing. Discounted payback times are obtained as the year in which the cumulative discounted net benefit stream switches from negative to positive. All financial analyses take the viewpoint of the implementing entity and thus do not measure effects on the Government's cash flow. Efficiency Prices Derivation A2.2 Economic prices should express the true scarcity of the products/services considered from a national economic point of view. Presently, two alternative methods for couverting financial (domestic market) prices to economic price3 are widely used. These methods are the Little-Mirrlees-Squire-Van der Tak (LMST) method and the UNIDO method. 1/ The LMST method values costs and benefits at border (world market) prices, stated in either local or foreign currency. The UNIDO method values costs and benefits at domestic accounting prices, stated in local currency. A2.3 In keeping with current World Bank guidelines, the LSMT method has been chosen. All appraisals have been made in US dollars in order to facilitate international price comparisons. However, it should be borne in mind that both methods render identical project selection results. 1/ See inter alia L. Squire and H.C. Van der Tak, Economic Analysis of Projects, The John Hopkins University Press, Baltimore and London, 1975, and UNIDO, Guidelines to Practical Project Appraisal, Social Benefit-Cost Analysis in Developing Countries, United Nations, New York, 1978. - 13 - Annex 2 Page 2 of 7 A2.4 Generally, all traded inputs are valued at CI? Accra import prices and traded outputs at FOB Accra export prices. With respect to the IMST method of economic analysis, these prices need no adjustment. All tax and subsidy elements are netted out from local input components. Nest, these are converted from domestic to border prices by applying the standard conversion factor (SCF) derived immediately following. Pricing Exchange Rates A2.5 Rate of exchange with the US dollar utilized in the financial analyses is the effective "Window 1" rate established in the Government of Ghana foreign exchange auction system instituted in October, 1986. Exchange rates with European currencies flow from relationships with the US dollar in effect as of 16 October 1986. The exchange rates used are: 1 US$ - 150 Cedis - 1.97 DM = 0.69 b Imports and exports paid in other currencies do not play a significant role in the calculations. A2.6 The existence of unsatisfied demand for foreign exchange at the auction rate implies the presence of trade related distortions affecting the market for foreign currency. The sbadow foreign exchange rate is estimated by the World Bank at 170 Cedi per US dollar, implying that foreign exchange is undervalued by approximately 13 percent. The SC? is derived by dividing the "official" (i.e. financial) exchange rate by the shadow rate: 150/170 e 0.882 An SCF of 0.88 has been applied to the local components in the economic analyses. Discount Rate A2.7 A real discount rate of 10 percent per annum is applied to the financial appraisals based upon the estimated opportunity cost of capital. The social rate of discount (social rate of time preference), as used in the economic analyses, was not judged to differ appreciably from the financial rate of discount. Imported Equipment A2.8 Except where noted for financial sensitivity analysis purposes, Government of Ghana equipment import levies totalling 50 percent for most classes of capital goods have not been applied, consistent with IDA - 14 - Annex 2 Page 3 of 7 credit covenants and COC duty exemptions for natural resoarce processing equipment. Import cost build-up includes international freight and insurance components. Local port and bank charges have been considered real resource costs for purposes of the economic appraisals. Labor A2.9 A shadow factor of 1.00 has been applied to the economic valuation of all categories of labor costs in-line wish World Bank estimates, the scarcity of skilled labor, and the relative lack of widespread unemployment in the Ghanaian rural sector. Typical labor rates utilized are given in Table A2.1. Table 12.1: TYPICAL LABOR COSTS CodIM0onth USS/year Skilled/Professional 11,000 880.00 Seml-Skilled 7,000 560.00 -Unskilled 4,500 360.00 Noteo 1 * Costs are gross and Include benefits end overheods which range from 20 to IC2S depending on Industry and employer. Source: Mission estimates. Land A2.10 Availability of land is not a rural sector constraint and a shadow factor of 0.00 for agricultural land has been employed in the economic analyses. The low land rental rates reflect the factor's abundance and have not entered into the financial evaluations. Fuels A2.11 Modern and traditioLtal fuels pricing and underlying assumptions are spelled out in Tables A2.2 and A2.3, following. Table A2.2: FINANCIAL AND ECONOMIC SOST OF FUELS, JANUARY, 1987 (USS/tonne) Economlc cost Per HNet Unit Energy Accra Kumasl Takoradi Value (Accra) Fuel Financial Econo mile Financial Economic Financial Ercnomic (NJ/kg) (US cents/NJ) Fumlwood 25 27 10 14 16 19 13.1 0.21 (Alr-dried) Charcoal s0 105 66 93 132 151 29.0 0.36 Gbs 011 (ADO) 238 175 238 191 238 190 43.3 0.40 Industrial Diesel Oil (100) 170 145 170 161 170 160 42.1 0.34 (70% ADO - 0% RFO) Inland Fuel Oil (IFO) 111 86 111 102 111 101 40.1 0.21 (90% RFO - 10% ADD) Residual Fuel 01I (WO-6) 101 76 101 92 101 91 39.8 0.19 Electricity a/ b/ 0.052 bl 0.052 0.052 3.6 1.44 a/ Per kWh, b/ Per Ec0 tariff schedule. Rates are untform country-wide. MNote: 1. Cedi financial costs converted to U.S. dollar equivalents at exchange rate of CISOAISS. 2. Fuelsvood and charcoal financial costs based on typical large lot ("wholesale") transactions, I.e. cords of firewood and 35-40 kg bags of charcoal. 3. Fuelwood and charcoal economic values based on estimated long-run mrglnal cost of fuelwood production (USS5/tonne). Average charcoal conversion efficiency estimated at 14%, wet welght basis. 4. Petroleum fuel economic values are based on January, 1987 CIF Import prices plus Internal distrlbution costs. i Residual fuel oil economic value based on January, 1987 FOB export prices plus Internal distribution costs. S. Electricity economic value based on marginal grid cost of energy of 50.052/kWh pwr MGhana Generatlon Planning Study", January 1985, prepared for VRA by Acres Internatlonal Limited. _ Source: Ministry of Fuel and Power; NE8; VRA; ECO; Plattls Oligram; Mission estlmates. - 16 - Annex 2 Page 5 of 7 table A2.3: ELECTRICITY CORITOI N OF UA COERCIAL AN IDUSTIAL TARIFFS Coaoircal Codis (a) MAXIIN DEMAN LESS TNAN 100 kVA Flrst 100 units or less supplied per month 1,750.00 For ech of the next 200 unIts supplied pWr month I1.86 For ech additional unit suppied pW month 11.16 (b) MAXIIN CEOM OF 100 kIVA AND ABOVE lloxilu domn chrg pr month: Each KVA of maximum dema. Unit Charge wr onth: 437.45 C&-h of the first 170 units per KVA ot maxlm demand 3.28 Each of the next 170 units per KVA of mawimu dend 2.99 Each additional unit upp led 2.16 The Nxim1 deond charge In a month shall not be lss thon 43,687.49 Industrial Cadis (a) MAXIMIO OEMAN LESS THAN 100 kVA First 100 units or less supplied per month 1.750.00 For ech of tho nxt 200 units suppiled per nth 11.86 For ech additlonal unit supplied p month 1116 (b) MAXISM DEKW NOT LESS THAN 100 kVA (i) High voltage Metering Maxim dewand chage Wr month: Each kVA of maxism demand 422.18 Each of the first 170 units pr kVA of deond 3.28 Each of the next 170 units per kVA of demand 2.55 Each additional unit supplied 1.97 The dmnd charge In a month shall not be les thn 41,964.98 (ii) Medium Voltage Meterina Maxlm dmad charge per month: Each kVA of maxim dmnd 437.45 Each of the fIrst 170 units per kVA of demand 3.28 Each of the next 170 units pr kVA of demand 2.99 Each additional unit wpiled 2.16 The demand charge In amonth sholl not be less than 43,687.49 NIte: Tariffs ftfected April 1966. Sourc: ECS. - 17 - Annex 2 Page 6 of 7 Transport A2.12 Long haul transport costs and underlying assumptions are detailed in Table A2.4. Short haul costs estimated in some of the analyses use truck daily rental rates divided by daily hauling capacity as a proxy measure. Table A2.4: FINANCIAL AND ECONOMIC COSTS OF ltRANSPORF, 1986 Road Transport Costs Financial Cost Economic Cost Assumed Payloads per publisbed of Vehicle EconomIc Coab VehlCie TYpe Rated Payload Wood Sawdust STC dry moods tariff a/ Oberation bl Wood Sawdust Heavy Goods 25t 22t 14t US 6.4/+t-km USSIJ.O/km US6.8/t-km USIO.7t/t-km Medium Goods 7t 7t 4t US 6.4ft-km USS0.57/km US8.ft/t-km US14.4$/t-km One-Way Road Transport Distoanes: KumasI - Tewo: 295 km Kumasi - Accra: 270 km Takoradi - Toom: 250 km Railway Transport Costs Cargo Kumasi-Accra Line Tariff (Financial Cost) s/ Class 3 (includes Sawdust) Cedi 1,797/t u USS1J.98/t (US 4.41/t-km) Class 4 (Inctudes firewood) Cedi 1,596/t * USS10.64/t (US 3.9t/t-km) a/ Based on State Transport Corporation tariff of Cedi 4.79/t-km. Tariff adjusted for 100% empty return ratio. bY Per "Economic Appraisal Report on RehabilIltation of Central and Eastern Lines," October 1966, RITES, New Delhi; for Ghana Railway Commission. Costs assume 50% empty return ratio. c/ Per GRC listed tariffs. Source: STC; RITES; GRC; Mission estimates. 0 - 19 - Annex 3 Classification of Ghana Commercial Timber Species - 20 - Annex 3 Page 1 of 2 CLASSIFICATION OF GHANA OOWERCIAL TIMER SPECIES Los OTHER SOECIES EXPORT TRADE/LOCAL GROUP !/ CLASS b/ BAN c/ BOTANICAL NAME TRADE NAP NAME Group A le B Entandrophragma angolense Endin m B Entandropnragou cylindrlcum Sopole a Entandrophrague utilo Utile a Khaya enthotheca Mahogany Krumben Khays grandifollola mahogany Kruba B Khoya Ivorensis Mahogany Dubinl B laclura excelsa Odm froko Naucleo diderichl IKusia 1 Tieghomelle heckelil Makore Baku lb a Lovoa trichillodes African Walnut Lovoo a Perlcopsis elato Afrormosla Kokrodue Trwminella Ivoronsis d/ Emiro Triplochiton scleroxylon Wawa 01mche Ic B Heritlere utills Nyankom Nlangon lle B Entandrophragma condolle Candollel 3uareo cedrata Scented Guarem Suer" thvapson II Suer" Kweduo Lophire elaot Ekki IKeku Piptadeolastrum africanun d/ Dehuz lIb Antlaris toxicarla Kyonkyan Antlarls Copelfera salikounda Bubinga B 6ulbourtla ehie iHyodue B Monsonla altissima Mensonha Mitragyna ciliate Subaha Mitregyne stipuloss Subeha-Akoe Nesogordonla papaverifera Dante B Turraeenthus efricanus Avodire III Afzelil africene Afzella Apo, Pope Albizzia ferruginea Albizzia Anopyxis killnanoa Kokotl Canarlum schwelnfurthil Canarium Bediwune Cyllcodiscus babunensis Okan Denys Dlstemonanthus benthemlenus Ayen Ponsondua Peornarl excelsa Ofam Pycnoanthus eagolensis Otle Strombosel gleucescees Aftina Terminalle superba d/ Ofram Afwr - 21 - Annex 3 Page 2 of 2 IV Aningeria robusta Asanfona Dombax brevicuspe kxnbax Pterygota macrocarpa Kyare Kyereye Group B III Celtis adolfl-frederick d/ Celtis Esokosua Celtis mildbraedil d/ Esa Coltis Celtis zenkerl i/ Celtis Esakoko Cynometra ananta Ananta Erythrophleu Ivorensis Potrodom Holoptela grandis Nakwa Namsa africana bompegya Norus meszygl Wonton Petersiantbus macrocarpus Esia Scottollila kisineona Tiabutuo Sterculla rhinopetals Wawabla IV AphIims Pterocarpoldes Yaya Antrocaryon micraster Aprokuma Boabax bounopozense Akata Ceiba pendandra Ceiba Onyina Chrysophyllum albidum Adosoa Adensime Danlell ogee Ogea Shodus Irivingla gabonensis Abesebuo Parkia bicolor Asom Sterculla oblonga Ohaa a/ Group A comprlses 40 specIes presently considered as comerclal and for which domestic and exPort markets exist. Group B contains 20 species presently considered as marginally comercial. However, these species are considered potentially comm_clal and are likely to be Increasingly exploited In the near future as markets are developed. b/ Forestry Department classification depending on desirability and value on domestic and export markets. c/ The 14 so-called "primy" species are banned from export In log ftor. All other species are considered secondary. Tectona grandis (teak) Is Included In the ban, but Is only available In small quantities from plantation forests. d/ Secondary species Identified by Forestry Department as being most useful. Source: Sliviconsult; TEODB; GMhB; fD. - 22 - Annex 4 Mills Surveyed By Mission - 23 - Annex 4 Page 1 of 3 MILLS SURVEYED BY MISSION NAME OF MILL SIZE LOCATION ASHANTI Logs & Lumber Ltd. Large Kuassi Poku Transport Industrial Complex Limited n n Lumber Processing Limited Wood Complex Kaasi Limited Specialized Timber Products Co. Ltd, Fyne Ltd. France Wood Processing Co. Ltd. Saoud Brothers a Sons Ltd. Prima Woods Ltd. Wood Industries Ltd. n Daniel & Co. Ltd. A. E. Saoud Ltd. Star Sawmill Products Ltd. 8iblani Logging & Lumber Co. Ltd. Naja David Veneer & Plywood Ltd. A. G. Timbers Ltd. Ashanti Timber Co. Ltd. Atwime Timbers Ltd. n Premier Wood Work Construction Co. Ltd. (PVCC) Medium Kumasi Ridge Timber Co. Ltd. F. E. Ohassoub (GM) Ltd. John Sitar & Co. Ltd (JC04) - 24 - Annex 4 Pa8e 2 of 3 West African Hardwoods Ltd. S.E.A. Timbers Ltd. Piku Transport & Sawmills Ltd. Kuasi Timber Co. Ltd. F. N. OPpO.ng 9 Co. Ltd. Ehula Wood Products Ltd. Progrssivo Multi ldustries Ltd. Amakom Sawmills Small K1 sit EJlsu Forest Products Ltd. EJlsu Marks Wood Products Ltd. Kumosl Anthony Timbers Co. Ltd. f Timber Industries Ltd. C. M. Ghassoub Sawmills Ltd. n R. K. Pepera 1 Co. Ltd. Ashanti Curl & Lumber Co, Ltd. NMak Company Ltd. n iof I Sarpong Brothers & Sons Ltd. Foaeta African& - Gaboo Timber Ltd. Pant Tiobers Ltd. E5XIN AHUfO Nim Timber Co. Ltd. Large Him Chira Forest Mill Ltd. Medium Chira ounsu Bros. SamiII Small Sunyani Abesil Logs S Lumber Ltd. Small Abesim - 25 - Annex 4 Page 3 of 3 CENTRAL International Hardwood Ltd. Large Ounkwa Thomsoo Moir & Gal loway Ltd. Small Ounkwa Pans Sawmills Ltd. Cape Ooast EASTERN Lre Ai d Oda Wood Complex Ltd. Large Akim Odo Myame Bekyore SawmIlls Ltd. Nkwaowkaw East Forest Products Ltd. Medlum Akim Ode Novotax Ghana Ltd. n Akio Oda Coppon TImber Complex Ltd. Small Nkawkaw W. S. I. SawmIlls Ltd. Akim Oda WESTERN Western TImbers Ltd. Large Takoecdl Ghana Prime wood Products Ltd. n Takoradi Takoradi Veneer & L,iber Co. Ltd. (TMLC) Takoradi john BItar Co. Ltd. (J.C.M.) Sekondi General Development Co. Ltd. Takoradl African Timber & PlYwood (A.T. & P) Samrebol Glik$ten West African Ltd. Sifwl WIamso Hardwood TImber Products Ltd. Medlum Talaoradi Prestea Samills Ltd. a Prestee Prosteo Goldflelds Ltd. Small Prestes HIblanl Industrial Complex (W1od) Biblani Manso Sawml l Ltd. n Mnso - 26 - Annex 5 Sawmill Process Heat Unit Production Process - 27 - Annec 5 Page 1 of 7 SAWMILL PROCESS HEAT UNIT PROCwCTICN MOCEL Assuptions o 6 dry kilns o 150 ms capacity/chargeAhlln o Orying mix: 58 whitewoods (295 1 In. whitewoods) (295 2 In. whitewoods) 42% redwoods o Drying times: I In. whitewoods - 10 days 2 In. whitewoods - 14 days Redwoods - 21 days o Kilnas aperate continuouily 50 yeeks/year Annual Kiln Production Volume Let x * Annual production volume In (0.29 x/150) (10 * 14 days) + (0.42 x/150) (21 days) a 350 days x a 3,32? .3Akiln/year Total plant capacity a 6 kiIns x 3,327 m3 a 19,962 n3/yeer Allowing for charging time a 19.500 m3/yr of which: Whitewoods (58) a 11.310 m3/yr Redwoods (42%) * 8.190 n3/yr Annual Financial Cost of Drying * S243,280 /19,350m3 * $12.4?Au3 Let V a Cost of whitowood drying R a Cost of redwood drying - 28 - Annex 5 Page 2 of 7 (R) (0.42) + (C) (0.58) s S12.47 ad21 d!ys -- n (14 + 10 4dYs)/2 V a> (1.75 W) (0*42) + (i) (0.36) a 512.47 V * S9.48/ u R S 16.60/u - 29 - Annex 5 Page 3 of 7 EJBEIr: SAMIML Bc8S HBAT UNIT IIIC0N MOODL BASIC PARAMTE Project Life = 15 Disount Rate = 10.0% Official Elch. Rate Cedi.USD) = 150 3quilibriu BExoh. Rate Cedi/WD= 170 ShadowValue of Unski led r r 1.00 Shadow Value of Agricultural Id 0.00 International Freight = 8.5% InsUrance : 1.2% Imvort D1t : 0.0% Sales TaxI 0.0% 1mise Tax = 0.0% Port Charges 4.0% Bmk Chargtes = 5.0% Capital Cost Contgencyt 10.0% Operating Cost Contingency = 10.0% i~oxrrc~VARIAmmA Residue Inpt (M.T. @ 38% miwb) = 11000 Redwood GrCos Value Added = 22.5% Whitewood Gross Value Added = 12.5% ANNUALIU ANALYSIS hEEULTS NET ANNUAL FINANCIAL BEEFIT 374.82 NET ANNUAL ECIONCHIC BENEFIT = 418.59 DCF ANALYSIS RSULTS FINANCIAL NET PFSMf VALUJE = 2833.58 FIRR 42% ECMOIIC NER IESST VALUE 3167.39 KMU _ 46% DISCaxNTSD PAYBACK TIME, FINANCIAL ANALYSIS = <3 years DISCOUNTED PAYBACK TIME, ECONOMIC ANALYSIS = <3 years - 30 - Annex 5 Page 4 of 7 PIWDJUC: SAILL PDOCES HEAT UNIT CIXLTICN MDEL BASIC PARAMEr1 ProJect Life = 15 Disount Pte _ 10.0% 0Iffffoial lh. Rte CediDI = 10 iibrium hooh. Pate Cedi/lA = 170 Shadow Value of Unskiiled USbor = 1.00 Shadow Value of Agricultual Laad 0.00 International Freight_ 8.% Inur -c 1.2% ImotDaty = .Q ImSI:t a Port Chages _ 4. Bank Charges = 6.0X Capital Cost Contingency = 10.0% Operating Cost Contingency = 10.0% PROE?124VARIAMAS Residue Input (M.T. O 38% mwb) = 11000 Bdwod aros Value Added = 16.0% Whitewood Gross Value Added = 10.O ANNUALIW ANALYSIS R1aLTS Ngr ANNUJAL FNANCIAL B1ENFIT = 197.76 NET ANNUAL EONOfMIC BNNEFIT 220.95 DCF ANALYSIS RMLTS FINANCIAL NMrT WRN VALUE 1486.89 M = 27% E(AIO C NrT FRT VALUE = 1664.11 RII R 30% DISOXIJTD PAYBAC TIME, FINANCIAL ANALYSIS = <5 years DISCJTElI PAYBAK TIME, KENCH1C ANALYSIS = <5 years - 31 - Anmex 5 Page 5 of 7 PD T: AKEM POC HHW BASIC PARAMETERS Project LAfe = 15 Disounmt Rate = 10.0% O1ffici 1Ruch. te adi - Equilibium Exch. Rate aCedi/ 570 Shdw Value of Uskiled - 1.Q0 Shadow Value of Agi cultr_l0.0 International Freight: 8.5% Insura~e =1.2% - 1~~~~.n E,a.es Tx = Q7iI Port (cnarges : 4.0% Bank _a5.Q Caital Cost Continge - 1=s: Oper4ting C;ost Oontinierw = 10.0X riwrit vaum. Residue Input (M.T. 0 38% mawb) = 11000 ~~od Gross Value Add 30 i t sGro Value Added 15.0S ANNUALI2E) ANALYSIS la T NIT ANNUAL FINANCIAL BRM = 551.87 NIT ANNUAL IOONXWC BIRFIT - 616.24 DC? AXALYSIS RUIUIT FINANCIAL NET PRUNr VALUE 4180.27 FI 66% BCX1MIC NET P9_Tf VALUE = 4670.67 EIR 62% DIS(mJNITB PAYBACK TIME, FINANCIAL ANALYSIS = 2 years DISC(XED PABALK T1,2 BOONCHIC ANALYSIS <2 y - 32 - Annex 5 Page 6 of 7 SD~~~~~~~~M =/ IBM MoPUc "L ~ ~ ~ ~ ~ ~ ~ ~ ~ SA -s MIRLVU~~ UmeILan nWf UMA fl aNCWiC rn8 (ler. ('000 W) ('000 WI) ('06 W) (ihl) ('00 D)('000 WI) ('000 WI) ('00 IM) buolla datim ad Strutues 1 5 0. 12.00 6.0 1.00 62.00 8.15 55.12 1.38 alof/t awlt d tu8 trs 1 15.00 5.00 0.00 1.00 20.00 2.6 18.U4 2.40 ShtTl 82.00 10.18 74.35 9.18 -inn I ; WiDl boler aid Vter Ttsat Plt 5 184.00 184.00 1.00 14.00 24.19 184.00 24.19 mrk, Poi l T hot"Wu t 15 33.00 33.0 1.00 33.00 4.34 33.00 4.34 Wul Stoae ad 3.1ilg 15 1.00 1.00 1.0 100 O.92 1.0 0.92 KItd o d Istrum t 15 18.00 18.00 1.00 18.00 2.31 18.00 2.37 sui l a15 14.00 14.00 1.00 14.00 1.84 14.00 1.84 MU1D indC ottol b1 o (I15 d kln) 15 5.00 50.00 6.00 300.00 39.44 300.00 39.44 stem t 15 15.00 15.00 2.00 30.00 3.94 30.00 3.94 SPe 15 15.00 15.00 1.00 15.00 1.917 15.00 1.97 otAl 601.00 19.02 601.00 19.02 height 15 51.0 51.0 1.00 51.09 6.12 51.09 6.12 Is1c 15 1.21 M.; 1.00 1.21 0.95 1.21 0.95 hb-botal 58.30 1.66 58.30 1.66 mIlll W L (CI 659.30 659.30 PE MA MID BAIR M Port Mars 15 26.31 26.31 1.00 26.3? 3.4? 23.21 3.05 Bak C g 15 32.96 32.96 1.00 32.96 4.33 29.01 3.81 .5934 1.80 52.22 6.81 15 94.00 9.0 1.00 94.00 12.36 94.00 12.36 Inllation 15 153.33 104.00 201.33 1.00 251.33 33.83 239.29 31.46 raiA 15 11.00 11.00 1.00 11.00 1.45 11.00 1.45 Bui-toW 362.33 47.64 344.29 45.2? CIAL MOT 1 L m.6? 885.30 . 1162.96 152.90 1130.16 148.59 CAPITL VU 21.," 88.53 116.30 A6.30 15.2) 113.02 14.86 IOTL CAITL 0)21 305.4 93. 1219.26 12.26 168.19 1243.11 163.44 - 33 - Annex 5 Page Z of 7 UAL mL I-M= oi MM& =c BsMC Lod 1 orei btal Tm!! COB? T/AWI COST (IIIID1 (IIID) l(D) (Unts) ('000 IID) (UED) ('000 9D) 8upivisor (urn-maths) 13.33 13.33 24.00 1.16 64.10 1.55 8ldiW or1ker/Ioler kw (ur-mtbs) 53.33 63.33 4.00 t.St 4.06 2.26 U *llei orlerltwer (umt8) 30.00 30.00 16.00 3.60 26.4? 3.18 blatee Ver (lmaths) 30.00 30.54 24.00 0.12 26.417 0.4 skilleld VorIa L* (rn-mthsl 30.00 30.00 36.00 1.08 26.4? 0.9 bib-Total 9.12 8.58 ri letricity (kfi) 0.021 0.41U 102000 21.8 0.052 54.18 ubtotal 21.88 54.18 ten. 15000.00 15000.00 1.00 15.00 13235.29 13.U lbTotal 15.00 13.24 uplies 100.00 1500.00 1.00 15.00 15000.00 15.00 but 818 kin (t) 3.33 3.33 2000.00 6.66 1.94 15.88 Sub- 6.66 30.8 tI C T TL 68.26 106.8 0UATIN COST o 6.83 10.69 1OML OHM CO 15.09 11W.56 0wn n M AA MGM DEAI roanL BOMC IIC 11a Foei Total Pm N? = IT/IT Bt (lD) (D) ( (Units/Yr.) ('000 D) (lID) ('000 lID) ed.od Gm Vus Adned (3) 51.35 57.35 8190.00 469.10 51.35 469.70 lbituod Gras ueed (d) 21.80 U.80 11310.00 2U4.5 21.80 246.56 IM: 4% A1e Caminia 0.04 -28.65 -28.65 Les: 9S le ad Other au*s 0.09 44.64 [es: 1138 Lev 0.01 -1.16 T OTA DITS8 615.80 681.60 - 34 - Annex 6 Crid Connected Cogeneration Models (8TP) U'3 1810U it's 10,ml W I9U 8'O t'0 ? mm 6t'8 0319 89's 0019 00'99 RIt "'S 89'81 d "Int 10'8t9 II's "to 9 * 0"9 6rtit 9&'8 I'- m Wlit 9019? W095 0051? 110k StT 00'11 St' 0011 001 00'11 oon It PU ulS "In "ll 90 10 a, OO'tB 00'1 OO't81 Ot 00'01 91 wiII st01 OO'U 6t'i OO'U 00'1 OOI' 006 ST3 Ot't "la" Olt 9&'9t T" U*1 80'tl S6'1 98'§ OO't Usti "Int St Bam ,t'i oi 9H'1 68'11 " 00'I 11 6a'lt Slt 5 1d 't a's Wt arl: luwlus tt'o i't ero O't 00'1 5l't st n1 no't "N' "O't "In all tOw Itt: Wm 5315 0011? 5955 001=1m8 pw-qiv usm alit~~~~~~~~~ Wl a'8s Wla 11 16'S 00'11 16'? OO'IU 0O1 0'? 0'?i ^ b6 00t 5891U 00'5t 001 t 005 00'Sl 51 SSDl1 Al Wi'St 15'1 00'S1 001 "I'sf 00'tl Sl t t Wt'- 0WI W 00'8 0 001 Ol '81 00MIN 5Pe w t Ulu "' BOO 00'I 00'1 OO'l 00a1 91 hum PR u Tom tt' "OOtt tt't MINt nOOt OO'tt GO'tt 9 1 "aPMV* 'BUI 'Vmdl 6S'? ",l" 6t'K ",'"I 00'1 OO't81 0,"o 1 ld Ih DM Pu. J 9 st'i~~~~~~~~~~~~~ VI II' "InIJ W II WI' ?1'95 St'8 0015 l11li- 8t'1 Ulu St's 080 00 0 00'05 51 O '1O1S Fe mVP W (am 0oo) (a moo) 1to .d(a ooo) l1n) (a oooJ) (a ooo) (a ooo.) (1m m m £s I ID mluleb 110 OU5eod 11W! g mm mms I 3 1(0) a ZT JO T OWga 9 XOMV - 36 - Annex 6 Page 2 of 12 L~~~M omwUuNIsrun mUL C mC Lewa lReigi otl IT 06? T/InT con (WI) (aI) (139) (Ibits) ('000 =I) (M3D) ('000 M) WOB supeMmor (4n-1ouths) 13.33 0.00 13.33 24.00 1.76 64.71 1.65 skilled VorkerDolkler buse (r-Mthsl 53.43 0.00 53.33 4.00 2.i6 4.06 2.26 Vsilled Worker (srn-ouths) 30.00 0.00 30.00 10.00 3.0 16.4 3.18 kiuteneeY bker (AU-oaths) 30.00 0.00 30.00 2.00 0.72 26.4 0.64 sub-Total 8.4 1.62 kWrd eotl bt (ki) O.0I 0.000 0.0U1 2000 1.01 0.052 14.61 uTotal 6.01 14.8? OPAN Am _CD ktemnar 12000.00 0.00 =1200000 1.00 12.00 10588.24 10.59 Subtal 12.00 109 Supplies 0.00 12000.00 12000.00 1.00 12.00 12000.00 12.00 SubToal - 12.00 12.0 oPuAflN 008? SII4OTAL 38.65 45.08 OPUA tIIG 005? 3.86 4.51 muL O00I51 42U.1 49.68 - 37 - Annex 6 Page 3 of 12 CAPTAL OST m IBMA ~WIT? MACE~U OMN=A DUIC =M LIRI L4cad iori. Totl wPM UT CI OOlt UT (lr) ( H'000WHI) ('000 llID) '000 ILID) (Vlibt) ('000 IIDH'O00 IID) ('000 WID) ('000 UI) FoAtion ad Stctur 15 79.00 10.00 19.00 1.00 99.00 13.0 8.1 11.79 8bToW 99.00 13.0 1 9.71 11.19 :loer and later Tatmet Plant 15 310.00 310.00 1.00 310.00 41.07 30.00 41.0 Turlwgenrator, Cod. aid Cooln Tor 15 339.00 3)1.00 1.00 339.00 44.5? 339.00 44.57 Pipwork, Valv, Duotork and S 15 64.00 64.10 1.00 6.100 8.41 64.00 8.41 Foel Stora and liullg 15 107.00 107.00 1.00 101.00 14.0? 107.00 14.0? Ileotrieal ad IntA m ati 15 17000 10.00 1.00 70.00 9.t0 70.00 9.10 sno ination is 35.00 38.00 1.00 35.00 4.60 35.00 4.60 llillu 15 21.00 11.00 1.00 11.00 1. 11.00 2.1. S" 15 91.00 91.00 1.00 91.00 11.10 91.00 12.10 bot 1041.00 137.78 1048.00 137.78 IITIOllMM AID 1111 ieigt 15 89.08 89.08 1.00 89.08 11.71 89.08 11.71 Iuae 15 1.58 11.58 1.00 11.68 1.65 11.68 1.65 TOWta 101.66 13.31 101.66 13.37 nomr mii ) MOML tCU1 1149.66 port Carg 15 45.91 45.9" 1.00 45.19 6.05 4.4? 5.32 h aM es 15 7.4 571 1.00 .48 7.56 50.18 6.5 bTa 103.47 3.60 91.05 11.9? hgIb0ering/Procuremt 15 157.00 157.00 1.00 157.00 33.79 157.00 33.19 nstallatio 15 359.0 .00 511.00 1.00 199.00 18.15 556.6 73.20 TaiNg 15 4.00 34.00 1.00 34.00 4.4 34.00 4.4 86-ota 810.00 117.01 84.76 1ll.46 CAPITAL WT 8M 3-TOTAL 41.47 1700.66 U12.13 Ul4.13 W11.71 11t8.18 186.37 CAPINTL Ca5? 54.15 170.07 1U4.11 2111U 1.48 117.81 U.64 OTAL CAPIL 515.61 11.71 2166.34 186.34 314.16 116.00 315.01 - 38 - Annex 6 Page 4 of 12 BMW cm I=11 COST ~ ~ ~ ~ ~ ~ ~ Dal 73 DAL WIMT BWPL C imc Led VOg Total am MT cS/MT CO (ID) () (IID) (ARlt) ('00 ID) (UID) ('000 D pnisor (us-stot) 13.33 13.33 36.00 2.64 64.11 2.33 Skilled ber/lolbler ou (rn-mot 53.33 53.33 48.00 1.16 4U.05 LS Ihekilled bkter (r-aths) 30.00 30.00 120.00 3.60 .4? 3.18 lndatue lotr (r-maths) 30.00 30.00 24.00 0.12 2t.4 0.64 ub1-Total 9.5 8.40 OPSTIOII a MU MID bnXuten 40000.00 40000.00 1.00 40.00 35264.12 35.20 ubtal 40.00 35.29 Sqplies 4000000 400.00 1.00 40.00 4 .0 40.00 Lest Slab SWleu (t) 3.33 3.33 3700.00 1.33 1.00 25.80 st Offouts Sales (t) 3.6 3.61 4100.00 11.3 1.00 3.90 btal 9.5 98.80 osm|m M W4in 119.09 142.4 OP= C C _ MlI. 11.1 1.2 IONA m muwu my 131.00 I15.74 MM IIN Ul&L _UL M WKa ITS CNI BMW hCn Lcal Foreign Total W mIT mm FITINFT/ n o (MD) (3D) (OD) (hlbItr.) ('000 WMD) (M) ('000 ID) kt Ileetricity PodbUt 0.033 0.033 4258000 140.83 O.052 21.4 inL 140.8 221. ISIS W2'8 UI'OS 96't1t? 96't1tZ 61'UI U'ISS 150 '1141 11 U'K HIM00 99'"I s9toi'01Z 111 9 10 ¶ mm 11'2 w'ts 'U 19'tDon WAtOltI ¶110 M Slusvo M1IN1 NU11 81'01t 0c'S lqW%4 IZ't OO'u IUlt l0 00'1 00I "0t0 9t1 IWII all iS i S SS U 911 00199 O0' 0099 00'S 0012?t 91 VIT alit it?1 alit 00M 00'1 0N0 D0 0' t 1? 9"! Wt'l a'S8 U'Zl SIX" 1t4 U's Wrs 01'r s'tS 00'1 6'tS 1 6 ti 91 m P R 4O'S 00s all 8Ht llI OVt a,"t si 33 UN NU M RD MMDd 9911 iri s9'u ms*'mm "On "s "I It's|0 V14) t S9'i I'l'l S9'1 IB211 all t8'll 1t11 Sl wanmt 00'11 t9'tl 00'11 N't 1 001 "Int "t9' 9It . 1J w-u w'm tr 0 am m m ns 51'11 OO'S8 Il'll OO'S8 00'1 OO'S "I'n 91 O 001: KIIZ "In OO't OD'I OO't 00'11 itSlUU WNt "In U't a0's Nt0' "In9 0'" It UTW M AIR po't? l'tti 00' 00'1 0'LDI 00'S?1 It t Ul 11Di I It's "I' It's 0O' 001 0O'*9 0N'9N 91t M Po U "S't 0019 5D'K 00*5 01 0'W1 0'9 001 5 91 la% n ho 'M 'u*nubqn O'Zt "OU? LO'tt 00ost 001 Wo'0 W t 00It 5211 R MWUlal UA PI U1b 44168 ~-mq 09'01 99'08 01'1l 00'61 JIWI 0S'0l 9912 0L'11 00'68 00'! 015 00'68 00'81L" 1 91 (all 000,) (om .) O O) (a 1O)(o o1o) On1%) In 0c.) to 00) (a 1 0) (Ism) 130 180 110 1800 UMIIl 1 tt13O 11 011= Du= imm mm nwm gLvw~~~~~~~~~~~~~11130 1141 ZC 30 ~ ~ ~ ~~~~~~~(o 2 GV 9 X*UUV :t~~~~~~~~~~6 -tX - 40 - Annex 6 Page 6 of 12 T~~~~~~~~~~~~~io MET ru= w I a Voeiga Total WIIMM T Cll/l? OlT (1) (13) (MD) (Ii ('00 ) () '0 UBO. lup ore t (1am hu 73.33 13.33 36.00 2.64 6 ".1 2U3 Skilled Voker/Sior kw (rmots) 53.33 53.33 4.00 2.56 4.06 2.2 Isilled tbe (wr-muths) 30.00 30.00 120.0 360 26.4 3.18 Waitenoo lhwo (r-0onths) 30.00 30.0 24.00 0.72 26.4 0.64 Su-Ttal p.52 8.40 b itrn 38000* 380.00 1.00 38.00 33521.41 33.53 Sbotal 38.00 33.53 Sule 300.00 3800.00 1.00 38.0 000.0 35.0 Lout Zlah Wu (t) 3.33 3.33 3700.00 12.33 7.00 25.10 lost OffMatss (t) 3.6 3.6 4?00,00 17.23 7.0 32.10 Ttal 67.5? X.8" OPWT1EJ aM? 1-TOTAL n11.0" 138.73 OISM atI COST 11.51 13.81 TAL OPIII COS 12t.60 152.60 Ham I LUlL UML Loca bl oig Total a m!! mmFI UEIT/=II mmF (M) (to) (D) (kdtjTlr.) 'ON MD) (tD) ('10an) Sat De¢tti¢ty Pnodti 0.033 0.033 2 0 1.65 0.052 112.0 TOTAL 95.65 152.00 - 41 - Amex 6 Page 7 of 12 RKO3K*r: GM ONBH 8OG4 MUIL (STP) ALTUIATIVI 2 BASIC PAB.AMEMS Project Life = Discount ate 10. OffeialRih. Rate Oedi/U _ 150 rWlt .h 170 Shadow Value of lski led abor: ~1.00 S3hado0w Value of Agricultural LI: = 0.00 Internatioil Freight: =8.5% Iusurance - 1.2% lmrt Duty O.OX Pbrt Charg=es 4.0 Bank Charges = 5.0% Capital Cost Contingeniy z 10.0% perating Cost Contingenwy = 10.0% Residue Input (M.T. e 38% nuwb) 22800 . ^NUALIZ ANALYSIS RESUL¶8 NET ANNUAL FINANCIAL BNI = -173.61 FINANCIAL BE PRIC 0.071 NET ANNUAL EUONtIC BEEFIT = -109.91 E3O(RNtIC HUAE IWC 0.076 DCF ANALYSIS EUL1TS FINANCIAL NET PEWST VALUE -1320.46 g'm = Urdef. Uc~II NET H}r VALUE -8436.00 FIANCIAL CAPITA COST 9W~rC1IIN VALUE - -76% EOM60C CAPIA OOST SVITGENQ VALUE - 49% - 42 - Annex 6 Page 8 of 12 CIPITAL IX8T 13 MWL hEL -L OU? FUACIAL FDlA EMUC DWC LI Ewa boeig Tw WQI o6T W M8T m6 (ear) (1'00 I (0 USD) ('000 UIID) (UAits) ('000 )('000 3) ('000 lID) ('000 ED) CON9ZN Foudation and trtr 15 29.00 8.00 3v.00 1.00 1.0 4.86 33.i9 4.4 Sb-tl 31.0 4.86 33.C9 4.42 Boilr .a ter Teabtmt Plat 16 136.00 138.00 1.00 136.00 11.88 136.00 l1.88 Torberators, Oca. ad Cooling Tour 15 339.00 339.00 1.00 335.00 4.57 339.00 44.5 Pipvrk, Valves,ot ortk anda 15 31.00 31.00 1.00 31.00 4.08 31.00 4.00 uel torge ud adIg 15oal" If 100.00 10.0 1.00 100.00 13.15 100.00 13.15 Electrimal ad Ietmmtatit 1i 52.00 52.Of 1.00 52.00 6.84 52.00 6.84 wS ruirtioa 15 35.00 35.00 1.00 35.00 4.60 35.00 4.60 Nisellu 1C 1.00 1.00 1.00 1.00 0.92 1.00 O.92 Pes 15 7.oo 1.00 1.00 1.00 10.12 1.oo 10.12 ub-Toal m.00 102.16 11.0 102.16 1113T101AL FREa?nAD height 15 66.05 66.0 1.00 66.05 8.68 f6.05 6.68 bume 15 9.3 9.32 1.0 93 1.23 9.32 1.23 Sub-Total 15.31 9.91 15.31 9.91 BMW s-?= (C SUM852.3 852.3? Port I"s 15 34.09 34.09 1.00 34.09 4.4 30.00 3.94 Bakia 15 U.62 42.2 1.00 U.62 5.60 37.50 4.93 STot 16.11 10.09 61.51 8.88 EDBIItI/DIlLUTO bweeriprocem t 15 1t8.00 118.00 1.00 118.00 23.40 118.00 23.40 I stllation 15 249.00 166.00 415.00 1.0 415.00 54.56 385.11 50.11 Training 15 23.00 3.00 1.00 3.00 3.02 23.00 3.02 b-Total 616.00 80.99 586.71 T.14 CAPTffAL lT W TL 354.11 121.31 1i52.08 15.08 208.00 1540.11 202.49 CAPITAL m t 35.4 12.14 158.21 18.21 20.80 154.2t 20.25 TMTL CAPI TL 390.18 1350.11 1140.9 1140.3 22.80 1N.19 222.14 wr'n 900 "0t Xg 00"0" 1A3t IU0 8c90 ;w O DD"s twol two "I PWSP 4pfplOST ION tm o ,)l ooot) (a (O00J M ) (0) (S) (OM) ls N- u a mll ai MCt 1;* Co1 6r96 B 821z11 s e 1 nV0~ £80 E£U 06'1t ' 't'00"l& W4 WOL £9' t £8) I't9IKJR IW 06'9? OO' tll 0000&t tt't tCtl (I113 1 13 IOU 001? 00"low 00"I 00' 1 0I002 W00M SM& T1?' 00'82 4 It'" 08IOlt? "0n 00'1 00000f 00'U silo TR%-"S 8il It'" W0 W'U wct Isr!u.) z nh (uo 000.) (uM) (OM os) (141%) (ur) () (OM) £ aUBm a WWOb 11Wiw0i iU1 ai m unawmm ZT ;O 6 a8'J 9 XSUUV - 44 - Annex 6 Page 10 of 12 HBOJUr: GMtID CON IED aoN MDEL (TP) AL13RATIVE 3 BASIC PARAP5UN ProJect Life = 15 Disount Rate 10.0% Official 1Rch. Rate Qedi/U =) 150 Bquilibriuu Bxwohil. Rate Cedi/UD: = 170 ShdwValue of Unskilled Lha bo=r.Q Saow Value of Agric:ultural Le1 = U.W Intern ational Freight 8.5% bnsuranos = 1.2% Ii3r1teDuty =.X rExcise Tax =' ~pitwI Bank Chrges = 5.0% capital Cost Co 3enoy= 10:0% Operakting Cost Cotiy l.OX PaNL~rION VARIABLE Residue Input (M.T. @ 38% mowb) = 22800 ANNUALIZ ANALYSIS RUL1TS Ng ANNUAL FINANCIAL EFIT = -193.35 FINANCIAL EREAKEEN PRICE 0.093 NEr ANNUAL ECONCMIC BENEFIT = -155.81 BCMMIC eFAYN PRC 0.101 DCF ANALYSIS ERMULTS FINANCIAL NET PSEEH VALUE -1470.63 FIU - Undef. 0ONoMIC NET PRESENT VALUE = -1185.12 EIM = Uhdef. Itrl Ot9t U'80t 161'U1 16'1891 S'lm tt'l5 t I= u 8N'1 ""l 8olt6'8t11 923t ult'"t 'MI t'llt 71- Dm t8't81 19'S0*1 6't81 Sl't 'tI 911*11 911211 sri ¶10-310 JLU a901 8l'3tS It% MO'M 101 91'1 MO9 911 00n 0tl "In Not: 94 I't St "'9 81'tSt 96'SI 009t M'I WOKt 00191 St 11 Sl tti? 0'0191 no 00:1 001 091t9t 0091 it *1'S 1619 921 WOI ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~IM11101113 it's S6't9 9X'6 Rot' Tq. Wi' t?'1t tt'S 111tt 9'I tt'6t t t6t 91 19'3 3t1 11I 6lion 0'1 6%'1t 913 1t s1o PR 91191 91't91 1II0) l1it- NI1 alit @allt1 601 91'9 601 91'69 111048 :1'1 9HS' Ul 99S8 00T 99 99'1 Sl 103 all no09 Lil t9'09 NOOt t199 11,9 91 in RIN 'oltit U31 N 1't3t 1 - *116 00111 Ot6 00111Q'0 @'0S a0l WOOL 01l l O 001 00'ML woo a 3UB not 0'1 Wtt "la 0'1WI I 00'9 1 SI u91S 291 00N 90O1 "I9n 0W1 0"03 W,# 900'9 n 311 U 9i0l OO'Ot 1t0 00'9t W 001* 00'00 1 91 bum Po 3 lei "11 WOOlt 9111 a0'tt O ' t OO lWt OOof S t PM PM 'tP3f l9 son ",mm 9013 *Lt MIt OO't 00'1R P Wn 'P O m ST 0'91t alit OO'9tt I 00'9tt 00'91 91 lOOlt nUPL MM PO MM all t3?" "9t 00"I M'W1 It t3o," 9"It O0O 'U 013 001' 00In u'1n P ="PM Ian 000.) m f 000.) turn ooo,lal o i) i) 1R oooi tMQJ(a 090.) tr coJ tN1I) 01D 0110 ¶1 ¶ uP11 1" /30 ¶12mm am g6 XsuDm VH ElUmIt 180 11100 mm~~~~~~~~~~~~~~~~mi an510 ZT Jo It O02ed 9 X9UU - 46 - Agpendix 6 Page 12 of 12 m ~ ~ ~ ~ :alr meos Lad hi" tow am W/WIT W ET (D) (MlD) (llD) (Uit,) ('000 lD) (I)1 ('0 XD) UBOB hpurot (imtls) 13.33 13.33 12.00 0.88 64.11 0.18 kb Total 0.88 0.18 iatm 2000.00 26000.0.0 0.00 26.00 22941.18 2L94 kTotal 26.00 2.94 sql 3tO00.00 26000.00 1.00 26.00 2500.00 26.00 Lost Slh Wules (t) 3.33 3.33 3100.00 12.33 1.00 25.90 Lot Off id Sles (tI 3.61 3.6? 4100.00 17.2 1.00 32.90 botal 55.51 84.80 OMATI W WIT - F 82.45 108.52 o- W IT 8.24 10.85 mm gRpin Mf 9A0.69 119.31 ? mB ~~~~~~~~~~~~eL - ra11 WILW/I L WC WW loal Pozeig Total a m11 own WIT5131/ T BilT (ED) (ED) (ED) (6L2tXITr.) ('00 =I (ID) ('0 E) get lletioty Pioductlon 0.033 0.033 32O9000 106.11 0.052 166.81 TMOTL 105.11 166.81 - 47 - Annex 7 VIM Cogeneration Models - 48 - Annex 7 Page 1 of 30 RpxEm : HIM oaXERUATICN M BAN CAS A BASIC PARAMU1 ProJect Life : 15 Dismt lRate = 10.OX Blibrum 1 R^t Oedi) 7 ffiaow Value of Unskiiled Iabr- Shadow alue of Agricultural I4: 0.00 Intematiami Freight- 8.5% es t uu EMise Tax = 0.0 Port Charges _ 4.0% capital cost Contingemy 10.0% Operating Cost Contingeny: 10.0% a N4 VARIABLE Residue Input (M.T. e 34% mowb) - 18700 ANiUALIE ANALYSIS RHLSS NET ANNUAL FINANCIAL -1058.46 NET ANNUAL BOCItC BWTrr -962.08 DCF ANALYSIS REUL1S FINANCIA NE! PREWN VALI = -8050.71 DOONCtIC NEr T VAW -7317.62 - 49 - Annex 7 Page 2 of 30 IT D a_mo P_M CAPIL cm I JIDDIL^r WI~I IL f DC DOOKC WsV Loda louiSa Tota Pll? MOT IT W8T WIT (m) ('10 US) ('0 U) (1'000 U) (Veib) ('0 U)('000 U) '000U D) ('00 U) udti i Itd rtur 15 2." 7.0 34.00 1.0 34.00 4.4? 30.8 4.05 WUX$1 34.00 4.47 30.82 4.05 klonll ad V ter Tm nt Plt 11 115.00 1.00 115.00 15.12 115.00 15.12 Pi..kt, Vals, dok aid t 15 164.00 164.00 1.00 164.00 21.56 164.00 21.56 --el St a hidling 16 .0 7.00 1.00 7.00 0.12 1,00 0.12 li ul A Instrutati 15 57.0 51.00 1.0 5T.00 7.41 57.00 7.49 -leellse a 15 7.00 7.00 1.00 ?.00 0.2 7.00 0.92 SPares 16 35.00 31.00 1.00 35.00 4.60 35.00 4.60 SbTol 385.00 50.62 385.00 50.62 Fkiegt 15 32.73 32.73 1.00 32.73 4.30 32.13 4.30 bi8 15 4.62 4.62 1.00 4.62 0.61 4.62 0.61 botal 31.35 4.91 37.35 4.91 ^DR ll U L (CII) 422.35 422.35 Port mag 15 16.61 16.3 1.00 16.81 2.22 14.87 1.95 Bik 1ags 16 21.12 21.12 1.00 21.12 2.78 18.58 2.44 SbTotal 38.01 5.00 33.45 4.40 ub-To moIM AUTTION blimbO tommt 15 n1.0 n.oo 1.00 1s.0 12.15 17.00 12.75 Istalltion 15 1S.00 91.00 226.00 1.00 U6.00 29.71 210.12 7.62 Tsing 1 13.00 13.00 1.00 13.00 1.11 13.00 1.71 WSbotal 336.00 44.18 320.12 42.09 CAPITL WIT S-TOiL 200.01 50.35 603 830.36 109.11 806.74 106.06 CAP TAL I 3w D.00 63.03 83.04 83.04 10.92 80.67 10.61 TOTAL CAPITA WIT 220.01 M3.38 913.39 913.39 120.0 881.41 116.67 - 50 - Annex 7 Page-of 30 VUmsL WME mm iLDC IWC LOWcal Imi Total PJfIT UT U/im? MT (MD) (WI) (a I) (Xite) (1'000 )X) ('00 I) wee SuuIvis t (=Mutha) 13.33 13.33 36.00 1.64 64.1 2.33 lilled VoIer/lbo (m8s1) 53.33 53.33 1.00 3.84 41.06 3.39 ikilud kr (m-=tis) 30.00 30.00 166.00 4.68 6.4 4.13 lalatme Ibker (M.mthu) 30.00 30.00 36.01 1.08 1.41 0.15 ob-o 11. 10.80 D Ibtor 4 b et (it) 100.00 400.00 326.00 130.00 400.00 130.00 ISubTtal -130.010 130.00 OSM AID _01M Sim lpm tem 15010.00 15l0.00 1.00 15.00 135.11 13.24 iel batem (A) 0.009 0.016 0.035 6100A00 134.0 0.034 111.41 bo 141.0 210.64 Patt, ules li500.00 15000.00 1.00 15.00 15 .00 15.00 Diel Vol (14. lollo) 0.866 0.866 516385 446.32 0.122 311.11 Sbotal 41.32 381.11 TIN 1T U-M 853.06 T68.55 TIN UT U Nh 85.31 t6.86 mOTl OAT UT 938.31 u5." - 51 - Annex 7 Page 4 of 30 rJEmr: ImM ooGaTTICN MmO ALTMATI lA BASIC PAR4MgF ProJect Life = 15 Dat ((sdW : 1~0 Official hdc h.te)e 1 0% 13qilibrium lk.Rate I Ceii/ 7 Shdo Value of Unucldle o: 1 Shdo Value of Agioulsrl ad: 0.00 Intexutioml reSht:8.6X 0.0 S.0 Oapital Cost Contiency 10.0% Operating Cost Contingen: 10.0% :Xa?ICN VARIABLE Residue Input (M.T. 0 34% wb) : 18700 ANNALEw ANALYSIS 4L1S NET ANUAL FINANCIAL MENE -417X69 NWR ANNUAL 3mNCtIC BUNT -852.77 DCF ANALYSIS HRUL _ _ FINANCIAL NET } UW VALUE z -3176.25 EXOONOIC Ngr PRFU19W VALOE = -6486.24 - 52 - Annex 7 Page 5 of 30 *nl*l.n..el. ......_. ..._ 1ff AN IT PAO CAPL OM IM mmL UUnAL Jiwm WIT/il FIJIIAL FMAAL =Mc DwC WII lada hrelg Toa mmt? WI WI WI WI (Tom) ('100 }) ('000 U) N 1'000 (hitsI) ('0 )(00 U)H ('000 ) ('00 i ) Fndtio ad Iotu 15 v.00 1.00 34.00 1.00 34.00 4.4 30.8 4.5 kTotl 34.0 4.4 30.2 4.5 Pliler ad later Tmtmt Plat 15 115.0 115.00 1.00 115.00 15.11 115.00 15.12 Pipek, Valves, kotuork ad SbA 15 114.00 164.00 1.00 164.00 21.56 164.00 21.5 iuel Storage and lding 15 1.00 1.00 1.00 1.00 0.# 1.00 0.92 ilectriaal ad IV staotatim 15 51." S0.00 1.0 .00 1.1 .00 1.49 mlianeoiu 15 1.00 1.00 1.00 M.00 0.52 1.00 o.2 pe 15 35.00 35."0 1.00 35.00 4.60 35.00 4.60 kblotal 385. 50.62 315.00 50.62 IITUmA 11161AD IIWI Feigt 15 .n1 32.1 1.00 32.3 4.30 32.13 4.30 Ince 15I1.61 4.6 4.2 1.00 4.62 0.61 4.62 0.61 k-tOl 31.35 4.91 31.35 4.91 no= MD S4IM ULU35 42.36 Port Ctua 15 16.2 16.69 1.00 16.89 2a 14.8? 1.95 Bank OuluIes 15 1.1 1.12 1.00 21.1 2.18 18.58 2.44 -Total 38.01 5.00 33.4 4.40 lANUUX l;lD OM 3I06 WIMM (Ins8al.d) Grid Dateuilon (ha) 40 9.34 31.36 4.10 41."0 219.11 Tassfoers (WI) 20 50.00 50.00 4.00 23.49 kbotal 22.66 Ibgiaeerhg _t s15 91.0 9.0 1.00 11.00 12.15 9.00 12.75 bstallation 15 135.00 91.00 23.00 1.00 226.00 2.11 210.12 21.62 Trag 15 13.00 13.t 1.00 13.00 1.11 13.00 1.11 *b-tal 336.00 44.18 320.12 4.0 CAPITAL WT lu-OTAL 200.01 0.35 830.36 030.36 101.11 806.14 348.12 WITAL M aT 20.A 63.03 83.0 8.0 10.92 80.6 34.8? TTAL CT M 0.01 69.3 113.31 113.39 10.09 881.41 383.60 - 53 - Annex 7 Page 6 of 30 nucuL~IIIUI Lu?nc& imcmm Lad For" total uITIT T WIT/WIT WIT (U) (WlD) (UI) (VaUits) ('000 MD) (UD) ('000 V) ueVnlsor (ma-mat) 73.33 13.33 24.00 1.76 14.11 1.55 Skilled Worekr/Naic (ma-math) 53.33 53.33 48.0 1.56 4U.06 2.26 bskillhdler V rnmouths) 30.00 30.00 120.00 3.60 16.47 3.16 hitmeeWokIer (rsn-loths) 30.00 30.00 24.00 0.11 2.47 0.64 lob-Total 8.64 1.62 tma %ipeunt ltosm 15000.00 15000.00 1.00 15.00 1323i.21 13.24 Gri 1tui klmu (2% Mur/it) 4716.00 4898,00 1.00 42262.94 U.26 tub-Total 15.00 55.50 1i Ilectrict (kWi) 0.035 0.035 670000 231.u2 0.052 3U480 TOW 2U1.82 36.40 Paut, slies 1I500.00 16000.00 1.00 15.00 1500.00 15.00 tub-T 15.00 16.00 oPTI WIT winL 7.46 426.52 oPUIN IT 1D 7.05 42.65 TTAL O- T U27.51 46.11 - 54 - Annex 7 Page 7 of 30 PROJB7: MIN C ATION MOWEL ALTERKIVM 2A _ _AL_ ___ _ B____ _ _ BASIC PARAMETES Project Life = 15 Disount Rate - 10.0% Offoa Ech: Rate CeAdi/ _ 5 B3qiibrium 8eoh. ht. Cei/is 7 8hadow Yalue of Unskilled Labo 1.00 shadow Value of Agricul tal Id 0.00 Interztinat l Freight -.5% Insuac = 1.D% Excise Taxc = Pert Ces = 4.US Bank Chares - 5.0% Capital Cost 0ontingency 10.OX Operating Cost otinge 10.0% aNXX7FICt VARIABLU Residue Input (M.T. 0 34% m*cb) = 38800 ANNUALIa ANALYSIS RULTS NRT ANIAL FINAICIAL BUaFIT -981.23 NEr ANNUAL BOONCIIC 1EFIT : -971.21 DCF ANALYSIS EUSULTS FI?ANIAL NET PRE_I VALUE = -7463.32 B(NMIC NET P WEFT VALWE = -7387. 10 - 55 - Annex 7 Page 8 of 30 CAPITAL COT ITMI3 F A COST/Wt MOM PIALX IMO C I [C LM LM UR Foel om tf m m m (Taem) ('000 U) ('000 U) ('000 UID) (it) (t'00 U)(00 U) ('0 U9D) ('000 UIID) olatio and Itr 1 101.00 1.00 12.00 1.00 126.00 16.5? 114.11 15.00 ub-Toal 126.00 16.5? 114.12 15.00 bile and wtr Tatm Plat 15 1020.00 1020.00 1.00 100.00 134.10 1010.0 134.10 ,ero r A Cmndenw 15 650.0 6.00 1.0 650.00 85.46 650.00 85,46 Ppwk alv, O ts a8d Stalr 15 200.00 2.00 1.00 100.00 .29 100.00 26.19 Fel Storge A Hbdlin 15 180.00 180.00 1.00 180.00 23.61 180.00 23.67 lectwica sad l tnmtUo 15 210.00 210.00 1.00 220.00 8.5 220.00 28.91 SPr 15 150.00 150.00 1.00 150.00 19.12 150.00 119.1 Sub-Total U20.00 318.1? 1420.00 318.1? llMlZINAtBOlL MMIG AD M MUIC freIt 15 105.10 105.10 1.00 205.10 11.04 205."0 V1.04 Inuc e 15 9.U 2.04 1.00 9.04 3.82 29.04 3.82 Sb-Ttal 134.14 30.186 l4.14 30.8 m m WNOTAL (CIM) 4.14 2654.14 Port M " 15 106.19 106.19 1.00 106.19 13.96 93.45 11.29 Bank MU"s 15 131.14 132.14 1.00 13.14 11.4 116.81 16.38 ub-Ttal 238.93 31.41 210.26 1.64 b-Total 10daw 4ifO olit s15 40.00 40.00 1.00 41000 55.6 40.00 55.22 Intlltwlna 15 12.00 483.00 1101.00 1.00 1W.00 158.S9 111.82 I.4 Trainin 15 690.00 6.0 1.0 69.00 9.01 69.0 9.01 Sb-Ttl 16t.00 2.98 1610.82 211.18 CaITnL COST UTT 1063.93 3651.14 415.61 41.61 619.99 49.9 603.46 CaP ITL C ESTJ 106.39 365.11 m4. 411.51 6.00 458.99 60.35 TOM CAPITL WOT 11T0.32 4016.91 5181.13 5181.13 681.99 08.93 663.80 - 56 - Annex 7 Page 9 of 30 I_= con I=ll M mm=ssn anw awc loal f"o~eg Ttal W1111 UT T/NIT UOT (3D) (D) (hbit) (1'00 ) (3D) ('00 3 8up s (rn-mths) 13.33 13.33 36.00 .614 64.11 2.33 Skiled Vorkehuo (m1-mas) U333 53.33 60.0 3.0 41n. 2.L vU illed h*t (mn-mhs) 30.00 30.0 132.0 3. 26.41 3.0 "inteam or (rn-Imths) 30.00 30.00 M.2. 0.12 24U 0.64 S-TO 10A. 9.28 Stan 3OOOumt ktm 11000.0 1.00 8.00 114".69 11.4? Diesel tblatm (kaI) 0.019 O.026 O.S5 6N0 2.16 0.034 23. STotal 10.16 94.8 hats, sp es 8100.00 81U.0 1.00 81.00 8100.00 81.0 LWst dal PreuOt (tim.) 3.1? 3.1? 85.00 2.14 3.50 32.44 Wet Firmed Poutieo (Id) 3.33 3.33 80.00 26.61 2.94 23.53 Hoieel ha (lip. lmns) 0,Lt 0.866 653018 45.9? 02 38.32 SubTot 1.? 115.9 mDT UT 83-TOTL 212.04 19.4 u11 mu 2.2 2195 mu 0 O M2.25 301.U - 57 - Annex 7 Page 10 of 30 P lWEr: MIHM CMATION MMDL ALTUTIE 3A BASIC PARAMQT' Project Life = 15 Discount Rate = 10.0 Official 1Hxoh. Rate ICedi/l = 160 13qSibriun Ta3. Rate C.di/D) = 170 iow Value ofg Unskilled bor ~ 1.00 Sn Value of Agricultural Lend = 0.00 Intertioal Freight = 8.6 IlotDLxty = .! Port Char : 4.0% Bank Charges _ 5.0% Capital Cost Contingerc-: 10.0X Operating Cost Contingency 10.0% P9cXNCION VARIABLBS Residue Ipt (MsT. 1 34% mcwb) : 36000 ANNUAIJM ANALYSIS RESUJTS NET ANNUAL FINANCIAL BUHEI _ -787.02 N.' ANNUAL L E(ONC BFEWIT - -779.40 DCF ANALYSIS REUL'S FImANCIAL NET PRUT VAUE = -5986.14 EDN( C NET iF? VALUE = -5928.16 - 58- Annex 7 Page 11 of 30 CAPIA WS 17 NW~~~ ~ ~ ~ pmDX M= mf FIDUL sae gm UPI Lad n bwr am coff at ff cf (TeMs ('000 l) ('000 L) ('000 0) (VAI) ('000 WD('OU) (1 0 aD) ( ' usW fouda ion a kStutue 15 11200 10.00 102.00 1.00 102.00 13.41 12,35 11.14 hb-Tow 1012.00 13.41 93.35 12.14 Boiler and later stitst Plut to 50.00 6no.00 1.00 610.00 90.72 60.00 10.U Turbogerator ad Omdei 15 360.00 360.00 1.00 380.00 4.33 360.00 41.33 Pipero, Valve, Dt ad Sa 16 00.00 100.00 1.00 100.00 13.15 100.00 13.15 puel Stor aid hbiling 15 90.00 10.00 1.00 90.00 11.83 90.00 11.83 ilectrlnal and natnimtatlo 1 110.00 110.00 1.00 110.00 14.46 110.00 14.46 eSp 16 75.00 IS.00 1.00 75.00 9.86 ?5.00 9.86 ub-ToW 1425.00 187.35 14S.00 187.35 TIONA.L MZISBIWAID x freigt 15 111.13 121.13 1.00 1M1.13 15.2 121.13 16.02 INUraaM 15 17.10 17.10 1.00 11.10 2.25 17.10 2.25 b-iTotal 138.23 18.1 138.23 18.17 -iim m P S-TOTAL (CII) 1563.2 1563.23 Ml I MA=a ig M1 Port are, 15 62.53 62.53 1.00 62.53 8.22 55.03 1.23 Bk rgs 15 u8.16 781.16 1.00 78.16 I10.2 68.8 9.04 Sb-toWl 140.6 1 8 is. 123.81 16.28 1I11W/DU.AIOII bg erliprumt 15 NO.00 240.00 1.00 240.00 31.55 240.0 31.55 INstallo 15 40.0 254.00 64.00 1.00 684.00 8.93 634.59 U3.43 STai 16 50.0 50. 1.00 50.00 6.57 50.00 6.51 9Subotal 94.00 128.06 124.59 121.56 cmAL S S OL 642.6 2137.2 2m.92 27192 365.4) 203.87 355.50 CAPIfAL f18 64.2? 213.72 m.11 m1.s 36.55 210.40 35.65 OTAL CAPITL M6 706.96 250.15 3051.91 3056.91 402.03 24.37 391.05 - 59 - Annex 7 Page 12 of 30 WSL -COf W DUL DIUC DIC Lcad Ponia TotAl WT UT 1 8 lMsTig ($t (U) (lID) (UlD) (VAits) ('000 IDM) (lIm) ('000 MSD) kperiuo r (ah,) 13.33 13.33 36.00 1.64 64.11 1.33 Skilledi vokw ou (u-Mat.l 53.33 53.33 1.00 3.84 4.06 3.39 AUilled VIkb (a'ths) 30.00 30.00 156.00 4.68 16.41 4.13 iAtm em thkr (r-ath) 30.00 10.00 36.00 1.08 26.4U 0.95 hotal 12.1 10.80 DID GIa1 0 D Diri kmtor lplumt lk/Jr) 00.00 400.00 115.00 10.00 400.00 10.00 tub-Tot?l 10.00 10.00 am %Idu t uatuma 50." 63000.00 1.00 13.00 46164.11 46.16 Desl iatm e (hI.) 0.0 0.01 03 1450000 60.16 0.034 9.21 tub-Total 103.15 15.A8 Par l 5n000.00 53000.00 1.00 53.0 0 5300.00 Lst C s Podutius (t J) 3.11 3.11 865.00 1.l4 31.50 31.44 Lat Pltsmod Phhdtio (d) 3.33 3.33 3500.00 11.61 1.9 10.29 Dim f1. (ap. lUm) 0.6 0.866 11153 9M.59 N0.11 80.53 Sb-Totl 164.00 116.16 031113 UTf U-IUTAL349." 353.04 0O1 UT Mffn 35.00 35.30 TOL OP&?flJO 1U 384.99 388.35 IH~~~~~~I isto itItostofIIoItf |01 Z |N S | cis I Z I "" t l ..,,....,,..,,., I0 C~ U'U0t 9'lt9! 815 616991 6199 60'0t1Otl o8m 6m I 09'11 U'£ti i 9l 91t SOWt KiNll 0)K1 1 Wm a6'tot tt'OUti ,6t "9109I 0f991 irtill 0'ot - WD igt'" 219) K't9 oo01t t40 911 M0T? rt? 00No 001 00IB 0I0 9Sl 9991 O8O'9 "'St 00'0t 001 "OO't WU 001 81 91 "It:? 0O'09! W0 00191 00ot 00191 0401919 SRIC 00no o'0d 001" a1 (T) UIUPoPR 11t'6Z O O 'U 0oi9 st W6 0) () *li1 PR llrlqwi) s0D UIlt - III O's t 9189 Btoi 00"L& .. all' tt'8t Ols' ctt't o't tt'tt tt'Slo sw tO't 15't1 9"It U'tt 001 191' t it MuM nI d nrow now (ii) %=-ak UAimi muam &roi irsi~~~~~ ~~~~~~ 11OI 1911 l'i' a'Ot t9'9 goof t19' M% e2'1 8t' '1 80'6 t1 's 8t'$ it tQ= tel S1t9 tell 01'9 001 0l0o 1 I9 it Wm on=lt on am lWiOSGlii 901 0MIN6 Wto' 00MI O0' 00I6 0016 S- 026O 00'L I' old 001 men "In 91 SI'!! OO'S8 81'11 0Q'S8 Oll No0n 00In PR NSl 1V4NU "'tl MI'9I t6'tt 00'U1 00'1 00'901 MN'91 It JOWI3UIl 91 0019 all 0019 oostoo0 91 IIdI WM St£aW" PO n1b ItA amlDZ Si'S It'll 16'01 0011 n4%-" 6i'6 tBSI 1 6'01 Ot 8 0 "0'! 001 W'it 00'99 9t DUS" Po MD"f 1a 000,) 1G coo.) 1GU ooo.flm 000.) ('uq) (em owo.) 1s ooo,) 1e 000.) (uw) 0 1 1 m 3 m MUM 1q1 *Im TOM am - ¶nw OE Jo IT Olga L gUy - t9 - - 62 - Annex 7 Page 15 of 30 con L C C (LID) (30) (ED) (thlts) (0100 lID) (L) ('00 D) o rDUIS (i )-ontks) 13.33 3.33 3.00 2.64 64.1 2.33 kile M eliade (ma-mts) 3.33 6.33 4.00 L.5 41.06 2.2 I bdiId I.* (modts) 30.00 30.00 10.001 3.60 28.4? 3.18 Ibhts kut (lm-mths) 30.00 30.00 24.00 O.2 2A.4 0.64 kibotal 8.52 8.40 omti a mimim am Ipst Ibltoe ZS000.00 25000.00 1.00 20 22 a.82 22.05 Grid htsmsl hits (U "eujr) 1 .00 1.00 42262.84 42.12 ub-otAl 25.00 64.32 Gid Iledioity (i) 0.035 0.035 4610000 159.51 0.052 238.12 b-toWl 158.51 39.12 buts, splis 26000.00 25000.00 1.00 25.00 26000.00 25.00 kb-TW 25.00 25."0 mumM s? win 21i9.03 331.44 mum UT 2itm 11.10 33.14 iL oiTl UT U0.83 311.18 - 63 - Annex 7 Page 16 of 30 D~3E~?: MIKM OCOaTION MMOL AL1MTIB EA BASIC PARMEW Project Life: 15I Disom Rate: 10.a t Eichh. Rte Cedi/W -D = Eqfbriuni bobh. Rat. Cedi}UD 701x S;,:f Value of Uple4k 1.0 Value of Agri ilt Lnd 0.00 Intemtional Freigt = .6X Isurance: 1.2X t D_ty - QQ Ebise Tax -.0% Port Cms = 4.0 Bank Caes: -.0 Capital Cost Continge 10.0i Operating Cost Contingeoy 10.0% -X~rIGI VARIABLO Reidue Input (M.T. l 34% mcwb) = 39600 A1O~UALI~ ANALYBIS REUUI NgT ANNUAL FINANCIAL BFIT -533.27 NET ANNUAL DONOIC BNEIT = -836.87 DCF ANALYSIS RNELTS FINANCIAL NEr FROMM VALUE -4056.12 ECONOIC NT PRESJENT VALUE -8365.31 - 64 - Annex 7 Page 17 of 30 MUL mL LUII L..DuI f lf/ al IBM T Cw T CST acS (Yern (' S '0005W}zta ) ('000 1D) (Uihit) ('00 U)('00 U) ('00 lI) ('000 hum amd Itnotur 15 8.00 3." 102.0 1.0 10.0 13.41 2.35 12.14 SubTt 102.00 13.41 9.3 12.14 -ollel Wat e Tma t Pit 15 60.00 11.00 1.00 690.00 9O.2 90.00 10.72 taboomidat md OwAm f15 360.00 360.00 1.00 360.00 41.33 360.00 41.33 Kpo*k, Vlvs, kt* adl llt U 100.00 100.00 1.00 100.00 13.15 100.00 13.18 1.1 StWO dA 1 1 1 90.00 90.00 1.00 90.00 11.83 90.00 11.83 :1.otdal aA 1at,atts 15 110.00 110.00 1.00 110.00 14.46 110.00 14.46 :P 1 15.00 75.00 1.00 ?5.00 9.81 7.00 9.86 S Ob 1425.00 187.35 1425.00 ;81.35 1111S Iam LAID now ft 15 121.13 121.13 1.00 121.13 15.92 121.13 15.9 Tn . 15 11.10 "1.1 1.00 17.10 2.25 11.10 2. Sbotal 138.23 18.11 138.23 18.1? m mD ,IE -Ow l () 1St3.23 1563.23 mIT m UMID anI ?ot a " 15 62.53 2.53 1.00 62.53 8.22 55.03 7.23 Ibk uurg 15 78.16 78.16 1.00 18.16 10.28 68.18 9.04 S-Otal 140,69 18.50 123.81 16.U2 UMDD anD mm (Immstalld) id lteson (in) 40 1.34 31.36 46.10 47.00 219.11 Saaons (EVAl 20 50.00 50.00 4.00 23.49 u-Total 242.66 _y~~~~0 fli. *. 1 15 4U0.00 240.00 1.00 U0.00 31.55 40.00 31.55 Illatl, 15 40.00 284.00 64.00 1.00 684.00 89.93 634.59 83.4 taningi I1 50.00 50.00 1.00 50.00 6.57 50.00 6.51 Sbtd 974.00 lU.06 9U.59 121.56 C O ST Ui-TTL 42.6 2131.U 2M9.92 21. 365.49 203.91 598.16 CAPIT ff PIT IT N 64.2 21.12 1.99 21.9 36.55 210.40 59.82 IOTL CAPIML t 106.96 2350.95 3051.91 3051.91 4U.03 2974.31 651.3 WvII Wiit a~sm maw meu~ 9z's)1 tZ'ttt LIO t N C9'91 ' ltla iu £o Cl'9 Itl'U 9ri6 9l'6 "lot "lot "lot 00' 001 1O1t1) Mm'u umgi "1 "OS't tt'? Wal Wow ctII Wt IP) tIvwL SB3 1' tnt ': 5'0l4x Hi Wos 'it Itit Is") ullapli O 1W 00t1 00ow00 ooa00 Woi "own "'o U 3* '1' Cs'C- aso0 o S?t oo0ot- Io IWo (Un 4l Alt t "laSt no'1 0*681t 1 WOW U) Uwti 318w PA'0 Ot' all M%- t9'0 tit? U'O 00'n 0lOO "I'Ot pW ) 0. 11 bo 81't It9 09t WOU 001N O10 ('Otu) ' l 5,: SW' t 911 Wito 1111 WaIIK") 1u4Jon . 190 I "It 1 0 o UltS tt* L xaUW - S9 - - 66 - Annex 7 Page 19 of 30 PlOJEC'r: MIM CaOATICN tVIL ALT. 3A VS. ALT. IA BASIC PARAMETR Prjeot Life: 16 miocunt ht: 10.0 Ofira RaxCih. te Ceditt _o 1 fR 1i Bxoh. hte 1 0 I w Value ofUzwki ledLabor : 1,00 Iternaticoal Freight:- 8.* % Insurae = 1.2% "Iw-s 2 8:l Ecise Taxc 0.0% Port Ch : 4.0% BakC2~es : capital oost on>o _ 1 . % operating cost ContIngew =x10.0% taN ~VAPRILE Residue Input (M.T. 0 34% mnwb) = 35000 ANUALIZED ANALYSIS RULTS NET ANNUAL FINANCIAL NFIT = -389.93 FINANCIAL BERAUEI PRICE 0.093 NET ANNUAL BONCIC FIT 38.54 EO9NtKIC BREAlVlI PRICE 0.046 izIIT~~~~~~~~~~~~~ __ __ 3CF ANLYIS RESUUTS FINANCIAL NET 1TW1! VALUE = -2965.76 Fin- Undef. 1C(D4C NET T VALVE = 293.18 RIM 12% DISCXUNTE PAYBACK TIME FINANCIAL ANALYSIS = >20 yeas DISCXX)NTED PAYBACK~ TIME EDCONOIC ANALYSIS = 12 years FINANCIAL CAPITAL COST SWIINCHDG VALUE = > -100% BOXNIIC CAPTTAL CIT SWITVHDIG VALUE +14% - 67 - Annex 7 Page 20 of 30 =r AND OMPNI CAPITAL MOST LUR a Foreign bTtw PJT CS COT MIT MIT (tears) ('00 30) ('000 IBD ('100 3ID) (tits) ('000 ID)('100 1) ('000 39D) (O000 Futioal st tnres 15 5.00 13.0 68.00 1.00 68.00 8.8 61.53 8.0 Sub-Total .0 8.84 61.53 8.09 bile aid Vater Ttmet Plat 15 515.0 .00 1.00 515.00 15.60 515.00 75.50 Turogmetor ad 1udCeer 15 360.00 360.00 1.00 360.00 41.33 360.00 41.33 Pipeokl, alve, Duotwrk ad Stak 15 -64.00 44.00 1.0 -64.00 8.41 44.00 -8.41 ?l Stor an lbliug 15 83.00 83.00 1.00 8.00 10.91 83.0" IC.91 Ilectrical A IuutM ttin 16 53.00 53.00 1.00 53.00 6.81 53.00 5.8 soenou 15 -1.00 -1.00 1.00 -4.00 -.82 -.00 -0.2 Spres 15 40.00 0.00 1.00 40.00 5.26 40.00 5.2 ub-Total 1040.00 136.4 1040.00 135.14 IRIWUIN M 3 D DOWllO eigt 15 88.40 88.40 1.00 83.40 11.53 88.40 11.62 ene 15 12.4 12.48 1.0 12.4 1.64 12.48 1.64 Sb-tal 100.88 13.26 10.88 13.26 WIS lof SWT L (CO) 1140.88 1140.83 Ml MM AND 111N M|1 Port ale 15 45.64 45.64 1.00 45.64 6.00 40.16 5.28 b0 WaNrge. 16 51.04 51.04 1.00 51.04 7.50 50.10 6.60 Sb-otal 101.8 13.50 80.36 11.83 ME= D a llI SMM (tutd) voiided I k Steuo Cti (k) 40 -8.34 43.35 45.10 41.00 -211.11 Avoided wton r I'tgl (WA) 20 -50.00 -50.00 4.00 -13.4 I I _rglpourmt I1 14.00 143.00 1.00 143.00 18.80 13.00 18.80 IDatlt 15 U5.00 113.00 45.00 1.00 458.00 60.1 4u.4 55.81 Tning 15 31.00 31.00 1.00 31.00 4.85 31.00 4.86 Sub-tW 38.00 8.88 5N.41 18.41 CAPITL CT AL 441.58 156.l0 1849.55 1848.56 256.31 1881.14 .18 Cum8L 0OST 44.2 150.68 194.86 194.86 15.63 188.1 0.68 ML CAPITl ST 486.85 1651.51 1144.5 2144.51 2815 1086.8 1.46 - 68 Annex 7 Page 21 of 30 num n l It! =MO c WIT 036? l dp ki bwam m mni o (WD) (U) (U) (its) (1'U ) (U) ('00) WOR 8Ierviso, (mm10ths) 13.33 1.33 11.00 0. 64.11 0.18 Skilled YDrketle"a (11-Mts) 53.33 .333 U.0O 1.21 4.06 1.13 lklled Vorber (sm-mots) 30.00 30,00 36.0" 1.0 0.96 INiten olbker la-Ioatis) 30.00 020 11.00 0.38 15.4 0.3 SUb-TOt 3.60 3.18 DieselX Smerato pmut (/p) 00.00 400.00 115.0 10.0 0.0 10.00 WSbtTo 70.00 70.00 OPUAION AID au steam liput utmu 3000.00 38000.00 1.00 38.00 3369.41 33.53 Diesl NIbtmam (i) 0.00 0.01l 0.035 140000 50. 0.034 .11 Aoided imas b lntemos (a3 qWcT) -4m.00 4M9. 1.0 -4694 4138 ub-TOtal 88.11 0.4 ats. sp lies 38000.0 38000.10 1.00 3.00 38000.00 38.00 lst Maudoa Pduoti (tomes) 3.11 3.1 885.00 1.14 3.60 32.4 tat lia proutI (dS) 3.33 3.33 3500.0 11.16 1.94 10.28 Diesel li (Ip. mml) 0.861 0.866 111638 15.59 0.t11 80.53 b-TOb 148.9" 161.1 =TIl 038T SU-t&TL 311.34 214.1 on"UTI =I6C 31.13 21.4 tOTAL O G 08 341.4? 302.40 mm LSW EA -C C Load kze1a TOW P1WM mm! miWTUl NW! (U) (Ui) (U) lbtitr.) ('000 a) (Ul) ('U u) Avoided Gdd Ilectrlcity Osts (1) 0.035 O.03 610000 134.10 0.052 34.40 nL 23." 348.0 Go o }|| °*°°88^ (I! Fb0 0w U'9t1 11 £89 ' W 6t'tt6 RCH6tI 8t't6 tO'U sffI= t9'01 Wu BlOt "08 1N'8 tO'9 W0"l E MW 90'§t ti'N8 SI'tI 9t'0 t Slts0 St'Ot9 TlO'OO ua- Mott tt'"t 8t'H 00'9 TRJ4 - WOOl WOO't L1'6O WOO't 001 OO't 8OO't SlU U- S LW¶V t9'i 00,t 00'1 Ot' 00 '11 00'1 11 of . t Ulu n'on: we: orm 00i orm wI; 00181 If UlwnITIin ori cr&6 lion 00'£I 0ol 0 "In 00116 91 WIubv tlU Ot'} S}'tt OO'S IO'Kt TM- 011 8 81 00'1 10? tt l PlR S8'1 Wli Il 1' 19? 001 u8's 81 *Sl I ittm mom> am} 163 9t'L 161 8t'U TOM" 181O "It 1910 W 00'1 Zn "It 91 WUI 0tlt OU o U' 84 0o'1 U't tlW 8 W 010 "lot U-02 00,11tJllS 1"41 091 001't 09't1 00 ' W1 00'1t 001t o1 6'0 00'1 WO 00 001 001 001 81 @ TU11 WC' 008 613 "If 00'1 00L8 001 81 Ui1BuIg PeB I tuOa moo O0' 600' 00' nt 00No&t al not 91 NTM aO" "IO 0Wl IIIO WILN I1 00'1 9 l 1 W'A n *W '*AT% 4OWO 4 :flu MITI I'll 00'SI1 001 00'81 00lit it lWM 4UEW4 M1 PE a11' 801 W00 it OWit T4011W 0I t 8 L 00'st a t 00'1 "It 0L 00'UI S9lMM PO uPIO (m oO,) Ia No.) (am oco,)m oo.) ("T1) (m N00) (aI oO) i c0o.) (ml) Wm W m L UIm Iwo uS tw W - - - - umI~~~~~~~~~ -m ~~~~~~~~~~~~~~~~~~~~~~~~~lLlLW111 t 10 fl.e.fl.. *...e.ene .fle*0. oc~ ~ ~ ~ ~~~~~ m u_ zqsOD I XSUUV - ot - - 71 - - 71 ~~~~~Annex 7 page 24 of 30 VIaICIL h flCUL NW Ch mm= hreW oSg am amt00t|SOl tlca Frorei Total mmIT (m8 1w/Il MOT (ID) (13D) (D) Wats) ('000 I (D) (00 MD! Squewr i (II-11nths) 13.33 13.33 U.00 1.16 64.11 1.55 Skilled brke /leao (ma-mots) 53.33 53.33 4.00 1.56 41.06 1.16 kiflel biker (r-mthsi 30.00 30.00 110.00 3.60 16.4 3.18 hantrn Worker (rn-lots) 30.0 30.0 1.0 0.11 1.n 0.64 -Ttal 8.64 1.61 atem %d t witesmue 1000.0 150." 1.00 5.0 135.0 13.1 b-Ttl 15.0 13.14 PM. km El otrd t (kel) 0.036 0.035 600 U. 0.02 348.0 tTt 231.1 34.0 Pats$ MpHe 1500.00 1500.0 1.00 15.0 150.0 15.0 tub-Total 5.0 15.0 OPR D COT L 110.41 38.1 O TIN T 1.05 38.43 mTmTL OILAT CMlT 11.5i1 .68 - 72 - Annex 7 Page 25 of 30 Pawr: MIM COOIX ATION MMEL ALTUATI 5B BASIC PARAMBTU ProJeot Life = 1S Digtt ate X 10.0% 9ffioial Exoh. Rate AM/U9DD = 10 zsulibriiuu lch. ate _ 170 Shado Value of Unaki sr 1. Shwiw Value of Agricultural Lauxi _ 0.0 IfltJ tional Freight IvDuty = 1 Exise Tax= 0.O Port rgeu - 4.OX Bank Charges = 5.0X Capital Cost Cotigency 10.0% peratinsg Cost Contin 10.O a N ~VARIELE Pesidue Impxt (M.T. @ 34% ouwb) : 39600 ANNALIEDANALYSIS RUULII Ngr ANNUAL FINANCIAL -533.27 NgT ANNUAL BOOaNMIC 1BEFIT = -23.46 DCF ANALYSI8 RULMSM FINANCIAL NgT Enn, VAWB = -4056.12 BDONCHIC NIrT UI VALW z -3981.46 - 73 - Annex 7 Page 26 of 30 COS MD 0RI PAP8 CAPITAL COS ITM =AL UIMCIII MOSTWIT rmIAL CIAL Du C a we UPI heal o"io bTtal wn S T C Cot (Vesra) '0 l ('00 a) No ( D) (ihlta) ('000 w)('0 I) ('00 WI) ('0 MD) Foubations A utu 15 a." 20.0 102.0 1.0 102.00 13.41 12.35 12-l uTotal 102.0 13.41 92.3 12.14 bioler vA Wt aut Plait 15 6".00 10.0 1.00 00.00 90.1 0.00 1.12 Turbogu toruod ur 15 360.00 350.00 1.00 360.00 4.33 360.00 41.33 Piperk, Va Ow tork ad Sta 15 100.00 100.00 1.0 100.00 13.15 10.0 13.15 Val SWtotg Ad laDin 15 N. 10.00 1.00 10.00 11.3 1. 11. ilectricl ad Itu to n 15 110.0 110.00 1.0 110." 14.4 110.0 14.4 p 15 15.00 15.00 1.00 11.00 9.8 15.00 1.1 SubTtl 1425.0 181.35 1425.00 18.35 TEUTIL MM AND BUM freigt 15 121.13 121.13 1.00 S1.13 15. 121.13 15.12 Iurue 15 11.10 11.10 1.00 11.10 t.25 11.10 1.25 Sub-tal 138.23 18.11 13.23 1.11 3WD -aw OuL (CIl) 1563.U 1563.23 MM AID US M port mat" 15 62.5 62.3 1.00 6.53 8.22 55.03 1.23 a Cr 15 1.16 18.16 1.00 18.16 10.28 68.18 9.04 Sub-Total 140.61 18.0 1.81 11.28 4bgin eedasjProeauati 15 240.00 20.00 1.00 U0.00 31.55 20.00 31.55 InatallatI 15 420.00 2.00 64.00 1.00 64.00 89.93 634.51 83.4 STaijing 15 50.00 5.00 1.00 50.00 6.51 50.00 6.51 Sub-Total 1m.00 12.06 U4.59 12.5 CAPITAL O UB 6.61 2131.U 29.912 211.2 365.41 203.91 35.50 CAPIL OST 6 u4.2 U23.7 m.11 m.11 6.5 21.0 35.i5 OTL CPITL T 106.96 230.15 305.11 3051.91 40.03 214.1 391.05 - 74 - Annex 7 Page 27 of 30 Los~~~~ PIaICIh 03/3?FIJL ICIEC DINIC lies foreig Total PUTT?! oUS? UOlt/llMI U (IXD) IU9D) (13I) (Ililt.) ('0013)ID (III) ('000UID) upervisor (A-Mat) 13.33 13.33 36.00 2.64 64.11 2.33 Skilled Vorkr/Udmoa (rnmths) 63.33 53.33 4.00 2.56 4106 1.26 Ihlkilld Worke (rn-mthe) 30.00 30.00 120.00 3.60 2.U41 3.18 biatm orer (rn-mths) 30.00 30.00 2.00 O.12 26.41 0.64 8SnyW 9.52 8.40 OPRATON A BMW tm Iupip t htm 53000.00 53000.00 1.00 53.00 4164.11 4.76 Sub-Total 53.00 46.16 brid iedsatity (km) 0.035 0.035 -102900 45.62 0.012 4.53 tub-Total -35A.2 45.13 rt upplies 53000.00 53000.00 1.00 53.00 53000.00 63.00 Lost oalPr dution (tomes) 3.1t 3.1? 86.00 2.14 31.0 32.U lot w tSO Produt (d) 3.33 3.33 8000.00 26.67 2.94 23.53 forst bida h a.oo (tom ) 2.00 8.00 100 10.0 10.00 9.16 9.16 bTotal 9.41 118.13 = 13tT 119.11 110.31 oPmUTI US? = 11.93 12.04 TOTL mNmI3G US? 131.24 13. - 75 - Annex 7 Page 28 of 30 W r: MIM rxOWATIGI HDDEL ALT. I5 tVS. BAS CASE B BASIC PARAHSM1 ProJcot Life = 1l Discount Rate:= 10.0% Official Exch. Rate -Cedi/WDI 1 5 Eluil4brituu Thoo. Rat C,di V. 170 5had.ow Value of Unskilled Lbr -.t :88 Sadw Value of AgricultAWal L.ad: 0. Ifln ftjrn3tia freigbt:s 8.5% Insane : 1.2% Thoise Tax 0.0. Port Cbarges 4.QX Bank Carg=es capital Cost Contin I .tlX: 5Operating cost Canti 1 l.O ~xVrIGN VARIABL Residue Input (M.T. 0 34% imwb) 39600 ANNUALIZ ANALYSIS RUULTS NEBr ANNAL FINANCIAL EEMT -139.31 FINANCIAL R ICE 0.056 NET ANNUAL ECCNCMIC EFIT - -24.27 EOCOMIC EEEM PRICE = 0.058 DOF ANALYSIS RESULT8 FINANCIAL NET PSW1!N VALU E -1059.58 ECOQNMIC NET FR1SErNT VALUE -184.58 DIS(X90NUED PAYBAC2K TIME FINANCIAL ANALYSIS = >20 years DISC(XJNTED PAYBACK TIME BLONXM¢C ANALYSIS = >20 years FINANCIAL CAPITAL cOSr SWI7IING VAWB = -49% HXXNHIC CAPITAL COT SiWTCHDNG VALUE = -9% - 76 - Annex 7 Page 29 of 30 MT As a= PUUU (TOWr) ('00 ND) ('000 MD) ('000 I) (AiIts) ('00 =3)('000 ID) ('000 ID) ('00 Si) CO¶UETIU~L U mrimmLSbb wooauw89 Futim on d Wtrtr 1S 55.00 13.00 68.00 1.0 8.00 8.04 61.53 8.0 ub-Ttal 68." 8.94 61.53 8.0 Bone and a ter t Plit 16 5 15.00 515.00 1.00 515.00 15.60 U51.00 15.60 Tmba Mtor an Cuer 15 360.00 360.00 1.00 30.00 41.33 30.00 41.33 Plpokl, V , Dtuk ad Std I -64.00 4-."0 1.00 -64.00 -8.41 44.00 -8.41 Fuel Sto W a li n 15 3U.00 83.00 1.00 83.00 10.91 83.00 10.91 Ilerl Ad Instrmatl 15 13.00 53.00 1.00 53.00 6.9 53.00 6. nellano 15 -1.00 -1.00 1.00 -1.00 -0.9 -1.00 -0.92 Se 1S 0.00 40.00 1.00 40.00 5.2t 40.00 5.26 8mb-TO 1040.00 136.14 100.00 136.14 Frelgt 15 88.0 88.40 1.00 8.40 11.62 8.40 11.62 -uroe 15 12.4 124 1.00 12.4 1.64 12.4 1.64 uTotal 100.88 13.26 100.88 13.26 D NM ? 1T L (CIF) 1140.88 1140.88 Port WTI" i 45.64 45.64 1.00 45.64 6.00 40.16 5.U8 a Oi8es 15 51.04 51.04 1.00 51.04 1.50 50.20 6.60 8bt- l 102.68 13.50 90.31 11.88 Ingineeriug/Procurmn 15 14.00 14.00 1.0 143.00 18.80 143.00 18.80 Instalation 15 285.00 113.00 458.00 1.00 458.00 60.21 24.4 55.81 Trni 15 37.00 31. 1.00 31.00 4.86 31.00 4.86 kb-Total 638.00 83.88 604.41 79.41 CaL S T 441.68 150t.88 1N9. 1949.56 26t.32 1891.24 49.44 cAPIL c unST 44.2 1569 19 1 25.63 189.1: .N94 TmL CITML COST 486.95 1651.5T 21.5a 2U1.52 281.95 2086.96 24.39 - 77 - Annex 7 Page 30 of 30 IItI a mm L~~~A FIUAICIA (U/NT IrL Dc UIC ma Mgre otl Mau MIM 0 TlDIT amCi (a) (XD) (MD) (lXit) V'.0 UBD (1) 1o to) hpila (.umt lu 13.33 13.33 13.0 0.0 64.11 0.18 uhh-TOl 0.8 0.18 OmmlUN me Kam ite Idpi t Uhatems 3 0 38000.00 1.0 38.00 3352.41 33.53 bta 38.00 33.53 pb, plies 3 0.0 380.00 1.00 38.00 3800000 38. b8t 1u l Pnot (to ) 3.11 3n? 86.00 1.14 31.50 $2.44 Wet idJe PMutim (u) 3.33 3.33 800.00 .64 2.1 U3.51 oet hddm kla. (to ) 2.00 8.00 10.00 1000.0 10.0 1.16 1.16 kb-T 1.38 103.11 0ET COR 11 1I.N1 138.01 0o71 CCI CCWDl 13.63 13.8 tOTL - IT 121.8 151.8 MlUi go IA111.II U0 -1 rnm wmn -_n~nw an~m (M) (D) (MD) (its/It.) ('00 D) (UD) ('O0 ID) 811 widid kgi lailtj C stW (ifl) 0.035 0.035 6100000 24.50 0.052 3.0 km Ileotioti tae (fi) 0.035 0.035 1020 3X.03 0.052 53.53 tOTAL 5313118 210.53 401.13 - 78 - Annex 8 Saw Blade Guide Improvements - 79 - Annex 8 Page 1 of 3 New "SUPER.LITE" aluminum alloy cartridges with steel inserts and heat treated stud are standard on most elmn. Reduced weight of guide assembly results in easier handling and transportation. A POINT TO REMEMBER: Regardless of how good a bandmill or feed system is, if you don't have an accurate and stable saw guide system you're not getting full value for your investment. BLOCKS SAVE YOU MONEY: Here's how Q"tmoh You mae. one-time purchame of NORGUID?alminum alloy adapts in the Wm& n thickness of you choice, and from than on you only pay for the low-cost. dDovtald NORGUIDln serts which can be quicky dipped into the adaptor and loct in placel Full utiization of valua guide material is realized. k dOwotl d ildois *t I'dmmu 0f Ibloda bbol - in1 a pfy. %W" _d _~P" - 80 - Annex 8 Page 2 of 3 United State8 Patent (111 3,623,S20 1731 faftow MtJ.160 1561 meloe" Mcked g?l N V_. 6 * .w C.*cA& UNITED STATES PATENTS i2i Ail.40 9L ,70?" 3.22t.801 1211965 Dunneal .................... 143/160 1s I Filed NW. 3?. 1N1 3,452.734 711909 Cleandeta ................ 143/16OX 1731 A0IWW MO leddLh 3.479.097 I/1909 McLauclan ................ 383/201.1S X IV ,C_ U n,rwacdmmlkC baah )WnwCy Cientuln- DonaM R. Seha fuleoty-Fethearstohatigh & Co. 541 SAWOUIDSAWARA'US *SI ,1 1bWl1, J s ABSYSACT: There b discksd saw guide apparatus for saw. IS21 UJLCL ........................ . ... ..,. 1431164,ba mchb and awing machins incorporaing this ap. (5)11.%...1.. ......143/lU4.3 p7asaas The saw guWie appuatus ha guide arms to be pau- 1511 LCL....... 327b 1102 'od.opposite sdot o saw de. a spacd slghtly S2?b 13J10. 827b 13/12 (rom the surfaces Xt_e. These arm have surfaces opposd 10i Ffaeh ... . ..' .14 64, to the bade fam and thet is provided mean fot directmg a 60. I57;83I10. 201.1i5 0 i tht_u NW outwardly from these surfaes so as to apply tmofihebep oA tohe ces ofthe bldes i . .._. _.>N 45) %6.10~ ~ ~ ~ -- io t) 34@ 48 36 o_3 20 25~~~~~~~~~~~~~~~~0 - 81 ~~~~~~Amnex 8 PA 91ENE 30 3.623,520 Page 3 of 3 10 114140 -0, (1 9 ' ~~~~i /.,8t..WL will. ..... I ,gf ,it Ia! <*a34 X t4 .~~~~~~~~~~~PT J. NE4 $ if 3 ,6 $tS1 5 se I'v n ; F. UtD~~~~~~~~~ L~9 45 3 - 82 - Annex 9 Industrial/Commercial Plant Operational Details Shifts/Day Hours/Shift Days/Weeks Weeks/Annum taiurs//Annum Industry Name 1985 1986 1985 1986 1985 1986 1985 1986 1985 1986 MiM Timber Co. 2 2 8 8 5 5 50 50 4,000 4,000 Glikaten West Africa 1 1 8 8 5 5 50 50 4,000 4,000 Africa Timber & Plywood 1 - 8 - 5 - 50 - Z,000 - Hardwood Timbers I 1 8 8 5 5 49 49 1,960 1,960 Specialzed Timber Products - 1 - 8 - 5 - 50 - 2,000 A.R. Saoud 1 2 8 8 5 5 50 S0 2,000 4,000 T'LC 1 1 8 8 5 5 50 50 2,000 2,000 WesternTimber 1 1 8 8 5 5 50 50 2,000 2,000 Jobn Sitar Co. 1 1 8 8 5 5 50 50 2,000 2,000 Kumasi Brewery 2 2 8 8 5 5 43.6 43.6 3,490 3,490 Guinness Ghana 2 2 8 8 5 5 44.0 44.0 3,520 3,520 Komfo Aolye Teaching Hospital Information Not Available - BoUer operation is not recorded. Appiah Monka Complex 1 1 8 8 5 5 50 50 Z4000 2,000 Asbanti OU Mls I 1 8 8 5 5 50 50 2,000 2,000 Cocoa Processing Co. (WAJ) 3 3 8 8 7 7 48 48 8,060 8,060 Cocoa Processng Co. (CPC) 3 3 8 8 7 7 51 51 8,570 8,570 GlIOC Paper Converson 1 1 8 8 5 5 19.4 39.6 776 1,584 Ceramica Cordiero Ghana - - - - - - - - - - Prestea Gold Fields 3 3 8 8 7 7 50 50 8,400 8,400 Lever Brothers Gana 3 3 8 8 5 5 50 50 6,000 6,000 Food Specialities Ghana 3 3 8 8 5 5 42 42 5,040 5,040 Ghana Textiles Manufacturing 3 2 8 8 5 5 45 45 5,400 3,600 Tema Textiles 2 2 8 8 5 5 44 44 3,520 3,520 GIHOC Brick & Tile 2 2 8 8 5 5 50 9 4,000 720 Ankaful Brick I>I I30 ZD t a | 0 § | i a I a 2 I a I 3 I p -------------~-I-- ..~~~~I- - P- .. J -- ---j--------------------I ..~ I. - .. - .3 .. ~ ~ ~ ~ ~* ..1 _ __ _ ..*................. ., .I £t p U I p 56 99; e £ F Ifl i I tt *. . .. J,, _! ___ ii__. r :* P * a r : PP as P ~ a P r S a S~~~~~~~~ ,a g pp* - ;. it - .t . 1 *i' 2iE t . . t. z2 . 22 22 9 2 . 0% 1!' -~~~~---- ------- ---------------- -- f~ ~ S Is I I I I I I I I IS 101 I 5 S :1 111 | 11* 1533 SIii 1II a~ I I s1 11 wg ! ' a si A it A. '! at -S . .. Z 0Zg1 | 5 35 s 3 ~3 5 12 4d X *;" *2 2 I I a I I S - - - - - - - - - - - -- -- -- - - ----- -- -- W 1111 |111 11 1 | - 86 - Annex 9 Page 4 of 5 3 2w!!... 3-13, 115 i .. 1-i - 0-l -|--- i§ | 43 I3 31 3IV ! g t5Su I~~~~~~~I ~~~,- - - - -- -- - -- -- - -- -.. - - - - - -- - - - -. --- --... , !11 . 11111l ii g I a ' I I I I - - - - - - - - - - - - --- - - - - - - - - - - - - . . . a . . # d . . - - - . . . . . . . . . .. Iii -!-~ I f i|t X $" I | | | |I I I |1 0* } I E i ii'II'g i £ I ~~~I I 'I~~~~ ---- I-----------'---- I' | " § a §I l I aU I I 5.5 I I p 1~~~~~~~~~pc I 0i0! s . i ;~, bIm}, §ii3 -~~~~~~~~~~~ -I- -n- - - ------------------------ I.~~~~~~~~~~~~~~a .} §5it|j. i;.;.1gllP t' 3 iii',''ls i i i ii S -. .... -. -* - - - - - - - - - - - - - - - - - - - - --- - - - - - - - - - - - - - - - - - - - - - - - - - -0 i- - - - - - - - - - - - -- - - - -- - -- - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - _______W ____.____ F___________.___________________ _...o - 88 - Annex 10 Sawdust-Fired Boiler Conversion Models --Oil Substitution - 89 - Annex 10 Page 1 of 20 SAWDUST- ?IRED BOILER CONVERSION MODELS -- OIL SUBSTITUTION Kumasi Breweries Ltd. A10.1 The Kumasi Brewery produced 135,000 hl of product in 1986. It has three residual fuel oil-fired boilers in its steam plant, each rated at 4,535 kg/hr of 10.9 kg/cm' auge saturated steam. 21 All three are horizontal firetube boilers: two Babcock & Wilcox units and one Ten Horn unit. The steam plant consumed 374,600 Igal of RPO in 1986 and bad an average steam flow of 7 220 kg/hr. Annual expenditures for fuel oil were estimated at 24.35 x 10 Cedis (US$162,330). A10.2 Conversion of the boilers to sawdust burning wouid require the addition of sawdust screening, storage, drying, transfer and burning equipment as shown in Figure A10.1 Two of the existing boilers would be converted to each accept a new suspension fired burner on the boiler front plate. The flue gas would then be directed through the boilers as presently occurs, and then to dedicated rotary sawdust dryers, followed by dedicated fines collection systems and induced draught fans which would forward the cleaned flue gases to a new single stack located adjacent to the dryers. A10.3 Costs. A summary of the estimated capital and annual operating costs are presented in Table A10.1 The capital costs for the conversion are estimated at US$1.6 million. Annual operating costs are estimated at US$89,800. Details of both the capital and operating costs are presente, as part of this Annex. A10.4 Benefits. Conversion to sawdust firing of the boilers would result in an annual savings of 374,600 Imperial gallons of RPO which, at a delivered price of US 43.3 cents/Igul, has a market value of US$162,200. A10.5 Financial Analysis. Results of the financial analysis are detailed in this Annex and suumarized in Table A10.2. Critical value analysis shows that the price of RPO would have to rise by 73 percent to US 75 cents/Igal (112.5 Cedi/Igal) in order for the project to break even. Alternatively, the installed capital cost would have to drop by 62 percent. Sawdust short distance haulage costs from the local sawmills have been approximated by the daily truck/driver rate times the number of truck-days needed to move the required quantity of sawdust. 2/ Steam production ratings are from and at (f&a) 100C. SAWDUSt TRUCK SCREEN MAIN STORAGE BIN UNLOADtNG DRE TRANS TI LOWERR DRY '.1 STORAGE STORAGE DRYERFEED EXISTING BOILER SAW DUST ~~~~~BRE SLOWER BLOWER S r ~~~~~~~~~~~~~~~THE WORLD BANK WASHINGTON D.C. " _________________ GHANA SAWMILL RESIDUES UTILIZATION STUDY " DRYER FINES CYCLONE VHEMATIC OF SAWDUST BURNING CONVERSION °. S T TWO BOILER OPTION O SSWSKETCHNo A 7280-SK1 - 91 - Annex 10 Page 3 of 20 Table A1O.L: SUMARY OF CAPITAL AND ANUJAL OPERATING COSTS fOR CONVERSION AT KWGASI 8REERIES, LTD. Local Costs Foreign Costs Total Item ('O00 USS) ('000 USS) ('000 USS) Capital Costs Construction 34.8 - 34.8 EquIpment - 715.0 715.0 Transport Charges a/ 70.6 69.4 140.0 Es)lneerlng, Installation 280.4 469.7 750.1 and Contingencies Total Capital Costs 383.8 12S4.1 1639.9 Annual Operating Costs Labor 1.3 - 1.3 Power 14.5 - 14.5 0 & N b/ 29.2 10.0 39.2 Consufables - 26.7 26.7 Contingencles 4.5 3.7 8.2 Total Annual Operating Costs 49.5 40.4 89.8 a/ Includes International freight and insu6raft*c local port chargs and bank fees. b/ Includes cost of sawdust haulage and delivery. Table AIO.2: FINANCIALACON00IC ANALYSIS RESULTS, KUMASI BREWERIES LTD. BOILER CONVERSION Financial Econamc NPV Stl,023,120) 5(1,143,000) IRR Undef. Undef. Capital Cost Switching Value -62S -72S Breakeven Cost of Residual Fuel Oil US 75 cents/Igal US 75 cents/igal A10.6 Economic Analysis. Economic analysis details are also found in this Anner and summarized in Table A10.2. When economic costs of transport to Kumasi are added to the FOB Tem export price, the economic cost of RPO nearly equals the financial cost actually charged to consumers. Therefore, economic analysis results are equally unfavorable as the private market case. Since the economic price of RFO is taken - 92 - Annex 10 Page 4 of 20 during a period of US$18/barrel crude oil, it may be loosely concluded that oil prices would have to rise into the mid-thirties per barrel range for this project to have positive net social benefits. Guinness Ghana Ltd. A10.7 This is a stout brewery which produced 66,252 hl during the past 12 months. Its steam plant consists of two GWB electric boilers (one is on standby) whict are being shut-down and replaced with a new GWB 5,215 kg/hr, 7.03 kg/cm? gauge, residual fuel oil-fired horizontal fire tube boiler. Commissioning of the new boiler wai in progress during the Mission's 1isit. It is estimated that the plant needs 3,623 kg/hr of 7.03 kg/cm saturated steam. Annual RPO consumption is estimated at 188,000 Igal/yr at a fin.--ncial cost of US$81,291. A10.8 Sawdust utilization would require the conversion of the new residual fuel oil-fired boiler similar to that described for Kumasi Breweries, and would require approximately 3,600 tonnes of sawdust a year. Capital costs for the conversion alone are estimated at US$905,OOO which when ammortised over a 15 year period of 10 percent is equal to an annual cost of US$119,000. Given this annualized cost of capital for the conversion, the net annual savings are negative even if sawdust were available at no cost and all other operating costs were negligible. Clearly, cases such as this have no economic justification for conversion to wood residue fuels. Cocoa Processing Company Ltd. (VAM). A10.9 This plant' produces shea butter, cocoa butter and cocoa cake from shea nuts and cocoa beans. Average production is approximately 9,500 t/yr with production projected to increase to 12,500 t/yr in 1987. Plant capacity is 20,000 t/yr. A10.10 Tie steam plant consists of two John Thompson 6,803 kg/hr, 10.55 kg cm gauge saturated steam horizontal firetube boilers which are used ilternately each week. Puel oil consumption in 1986 was 178,530 Igal of Inland Fuel Oil (IFO), at an estimated cost of US$83,300. The average steam flow is 1,336 kg/hr or only 20 percent of the capacity of each boiler (or 10 percent of plant capacity). A10.11 Conversion to sawdust burning would require the addition of sawdust screening, storage, drying, transfer and burning equipment as is shown in Figure A1O.1. Total sawdust consumption corresponding to the 1986 production level would be 3,100 tonnes at 35 percent mcwb. - 93 - Annex 10 Page 5 of 20 A10.12 Costs. A summary of the estimated capital and annual operating costs are presented in Table A10.3 Capital costs for the conversion are estimated at US$700,300 while annual operating costs are US$51,700. Details of both the capital and operating costs estimates are presented in this Annex. Table AIO3: S1M"ARY OF CAPITAL AND AhWUAL OPERATING COSTS FOR CONVERSION AT COCOA PROC£SSING CO. LTD. (WAN) Local Costs Foreign Costs Totol It ('000 IJSS) ('000 USS) ('000 USs Capital Costs Construction 12.3 - 12.3 Equipment _ 30.0 308.0 TrOnsport Charges a/ 30.4 29.9 60.3 EnglIneerg, Installotion 117.9 201.8 319.7 and Contingencies Total Capital Costs 160.6 539.1 700.3 Annual Operating Costs Labor 1.9 - 1.9 POWer 16.6 - 16.6 o & " b/ 12.6 4.4 17.0 Consumables 11.S 11.5 Oontingencies 3.1 1.6 4.7 Total Annual Operating Costs 34.2 17.5 51.7 a/ Includes International freight, Insuronce, local port chares and bans fees. f/ Includes cost of sawdust houlage and delivery. AIO.13 Benefits. Conversion to sawdust firing of the boilers would result in an annual savings of 178,500 Imperial gallons of IF0 which, at a delivered price of US 46.6 cents/Igal, has a market value of US$83,390. A10.14 Financial Analysis. Results of the financial analysis are detailed in this Annex and suuarized in Table A10.4. Critical value analysis shows that the price of IPD would have to rise by 61 percent to US 75 cents/Igal (112.5 Cedi/Igal) in order for the project to break even. Thus, while sawdust substitution is more attractive for the higher cost IF0 than RIO, it is not a feasible investment. AlO.15 f4ono ic Analysis: Economic analysis details are also found in this Annex and sumnarTzed in Table A10.4. Again, since the economic cost of IPO approximates its financial cost, the project is similarly unattractive from a social perspective as to the private entrepreneur. - 94 - Annex 10 Page 6 of 20 Table A1O.4: FINANCIAL/ECONOMIC ANALYSIS RESULTS, COCOA PROCSSINS CO. (WA) LTD. BOILER COwVERSION FInoncial Econmic NPV S(432,890) S(491,870) IRR Undf. U*lndef. Capital Cost Switching Value -41% -44% Breakkven Cost of Inland Fuel Oil US 75 cents/Igal US 75 cents/Igal Cocoa Processing Co. (CPC) Ltd. A10.16 This plxt produces cocoa butter %ind cocoa liquor. Total 1986 production was 10,116 tonnes. Its steam plant consists of one Sillar & Jamart 4,750 kg/hr, 8.16 kg/cm2 gauge saturated steam ADO-fired horizontal firetube boiler and an ETL auxiliary 750 kg/hr, 10 kg/cm gauge saturated steam coil boiler. Average steam flow is approximately 677 kg/hr corresponding to ADO fuel consumption of approximately 96,000 Igal/yr costing US$83,200. A10.17 Conversion to sawdust burning would require the addition of sawdust screening, storage, drying, transfer and burning equipment for a single boiler applicatior similar to that for the Cocoa Processing Co. (WAM). However, this plant is smaller and therefore will experience higher unit capital costs. Thus, the result of a conversion would be even more negative than the WAM plant. Lever Brothers Ghana Ltd. A10.18 This plant produces soap, detergents, margarine, cooking oil and toothpaste. Total production for 1986 is expected to reach about 61 percent of total plant capacity. A10.19 The ste,m plant consists of three Edwin Banks & Co. 5,442 kg/hr, 14.1 kg/cm gauge horizontal firetube boilers. A John Thompson unit is maintained on standby. Actual average steam flow from the steam plant has been 8,830 kg/hr in 1986. Residual fuel oil consumption in 1986 is estimated at 1,100,000 Igsl at an expenditure of US$476,700. A10.20 Conversion to sawdust burning would require the addition of sawdust screening, storage, drying, transfer and burning equipment as shown schematically in Figure A10.1. Total sawdust consumption based on 1986 production levels is estimated at 19,300 tonnes at 35.5 percent mcwb. - 95 - Annex 10 Page 7 of 20 A10.21 Costs. A summary of the estimated capital and annual operating costs are presented in Table A10.5. Total capital cost to undertake the boiler conversion is estimated at US$2.35 million. Annual operating costs including sawdust haulage costs are US$470,400. Details of both the capital and operating costs estimates are presented in this Annex. Tablo AIO. : S1NIART OF CAPITAL AND ANNUAL OPERATING COSTS FOR CONVERSION OF LEVER BROTHERS GHANA LTD, Local Costs Foreign Costs Total Ite. ('000 USS) ('000 USS) ('000 USS) Capital Costs ConstructIon 49.3 - 49.3 Equi pment - 1,025.0 1,025.0 Transport Charges a/ 101.2 99.4 200.6 Engineering, Installation 400.1 673.4 1,073.5 and Contingencies Total Capital Costs 550.6 1,797.8 2,548.4 Annual Operating Costs Labor 1.9 - 1.9 Pow 170 - 17.0 O & N b/ 403.1 - 403.1 Consumables - 38.7 38.7 Contingencl§S- 5.8 3.9 9.7 rotal Anriual Operating Costs 427.8 42.6 470.4 a/ Includes International freight and Insurance, local poet charges and bank Fees. b/ Includes cost of sawdust hauloge and delivery. A10.22 Benefits. Conversion to sawdust firing of the boilers would result in an annual savirgs of 1,100,000 Imperiel gallons of RPO with a market value of US$476,700. A10.Z:; Financial Analysis. Results of the financial analysis are detailed in this Annes and summarized in Table A10.6. Critical value analysis shows that the price of RPO would have to rise by 57 percent to US 68 cents/Igal (102 Cedi/Igal) in order for the project to break even. Alternatively, the installed capital cost would have to drop by some 98 percent. The sawdust source is assumed to be Kumasi, since the required sawdust input exceeds by 2 to I the available surplus in the somewhat closer Takoradi area. Haulage costs are based on State Transport Co. tariffs of US 6.4 cents/tonne-km for the 295 km haul. - 96 - Annex 10 Page 8 of 20 Table A1O*6: FINANCIALiECONONIC ANALYSIS RESULTS, LEVER BOS. GHAN LTD. BOILER CONVERSION FInancial Eeonomic NPV S(2,297,340) S(3,628,330) IRR Undef, Undef. Capital Cost Switching Value -986 -lOS Breake*vn Cost of Residual Fuel Oil US 0' cents/Iagl US 71 cents/lgal A10.24 Economic Analysis. Economic analysis details are found ia this Annex and sumrsized in Table A10.6. The analysis shows that the investment cost of the conversion could be free yet the project would still exhibit negative returns. While the economies of scale at the Lever Bros. plant are reasonable, the low sconrmic value of RFO at Tema and the high costs of sawdust haulage wore than counterbalance them. Food Specialities Ghana Ltd. A10.25 This plant produces Ideal Milk, Milo, Cerelac, Maggi Cubes and Nescafe. Total production figures were not available. The steam plant consists of two Sillar & Jamart horizontal firetube boilers with identical heating surfaces. One boiler has a larger burner with a rated steam evaptration of 7,000 kg/hr at 16 kg/cm gauge. The second boiler is rated at 4,000 kg/hr at the same steam condition. Fuel is IDO with consumption of 312,100 Igal in 1986 corresponding to an annual expenditure of $208,000. Average steam flows were estimated at 2,550 kg/hr. A10.26 Conversion to sawdust burning would require the addition of sawdust screening, storage, drying, transfer and burning equipment similar to that described earlier for the Kumasi Breweries and Lever Brottors. Sawdust consumption, based on 1985 steam output, is estimated at 6,200 tonnes/yr at 35.5 percent mcwb. A10.27 Since this is a smeller fuel oil consuming plant than the Lever Brothers plant analyzed earlier, it would incur a higher capital cost per unit of boiler capacity converted. Consequently, it has an even weaker economic justification for conversion to sawdust use. Ghana Textiles Manufacturing Co. A10.28 This cotton fabric textile mill produced 2,080,463 meters in 1985 and 1,244,742 meters in 1986. The steam plant consists of one TRUCK sSCREEqY MAIN STORAGE SIN UNLOADING TRO1F1 SLOWER DP iR FEED BIN -R S O R G ID FAN EXISTING g~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~R STAOKAGE BOILER i I I~~~~~~~~~~~~~~~~~~~~~~.~~~~~~~S EC DRYE A.INESK3 NEW THIE WORLD BANK WASHINGTO . . ' GHANA SAWMILIt RESjDUES UTLZAIN TD SCHEAT~ OFSAWDUST BURNING OEPN ONYE aoILER OPTIONCNEP0 SSW SKETCH NO. A. 7280-SK3 - 98 - Annex 10 Page 10 of 20 Babcock & Wilcox 11,685 kS/hr, 10.55 kg/cm2 gauge saturated steam horizontal firetube boiler. Steam production required 320,000 Igal of IP0 in 1985 corresponding to an average steam flow of 2,956 kg/hr. A10.29 Conversion to sawdust burning would require the addition of sawdust screening, storage, drying, transfer and burn.ng equipment as shown in Figure A10.2. The equiva1erst sawdust consumption based upon the 1985 IP0 consumption figures would be 5,500 tonnes at 35.5 percent mcwb. Since this plant would be a single boiler conversion and the fuel oil consumption is approximately one quarter of that for the Lever Brothers plant, the unit costs of conversion would be higher and the couversion to sawdust even less economically justified. Tema Textiles Ltd. A10.30 This is a textile mill which produces Imitation Wax and Java 48 material. Production for 1985/86 was 520,000 kg of spun yarn, 3,206,000 meters of woven grey cloth and 2,978,000 meters of printed cloth. A10.31 The steam plant consists of three horizontal firetube boilers. The operating steam pr ssure rating of all three boilers varies between 10.0 and 10.55 kg/cm gauge. However, owing to the low production level, the boilers need only to be operated at 3.47 kg/cm gauge to meet the process needs. The mill does not have any record of steam flow, steam consumption or condensate return. A10.32 Conversion to sawdust burning would require the addition of sawdust screening, storage, drying, transfer and burning equipment as shown schematically in Figure A1O.1. The equivalent sawdust consumption based upon the 1985/86 IP0 consumption figures would be 6,700 tonnes at 35.5 percent mcwb. Since this plant requires a fuel oil consumption approximately one third of that for the Lever Brothers plant, the unit costs of conversion would be higher and the conversion to sawdust even less economically justified. GIHOC Paper Conversion Co. Ltd. A10.33 This is a corrugated carton, polyethylene and toilet roll manufacturing plant. Total production 1,821 tonnes in 1986 which was 30 percent of total plant capacity. A10.34 The steam plant consists of one Sillar & Jamart horizontal firetube boiler close-coupled to a Lambion wood burning furnace Steaming capacity of the boiler is 2,080 kg/hr (normal) at 14 kg/cmf gauge with a maximum flow rate of 2,600 kg/hr. The base fuel is waste corrugated carton material with auxiliary ADO, introduced manually, as needed to maintain steam pressure. Approximately 192 tonnes of waste paper supplemented by 15,060 Igal of ADO was consumed to generate steam requirements in 1986. -99 Annex 10 Page 11 of 20 A10.35 Modifications to burn sawdust would consist of grate and air distribution changes both of which could be readily implemented. Howewer, since substitution of sawdust for waste paper is not advisable (the waste paper is available at no cost and must be disposed) the total justification for the sawdust conversion must be carried by the supplemental ADO. Based upon the 1986 anticipated ADO consumption and a current financial cost for ADO of US$238/tonne, the annual ADO cost is only US$13,100 which could not support the cost of boilei modifications, sawdust purchase, storage and conveying in the plant. It is therefore not considered an economical alternative. S- -'-t requirement for ADO suustitution would be approximately 205 tonnes aC 35 percent mewb. Komfo Anokye Teaching Hospital Al0.36 This is a 500 bed hospital located inKumasl. The steam plant zonsists of two Cochran 500 kg/hr, 7.38 kg/cm gauge vertical firetube boilers and an incinerator. The equipment is 35 years old and in need of significant repairs. Owing to economic restraints, the hospital had curtailed steam generation requiring the boilers to be shutdown for most of the time. Ap,vozimately twice per month the boilers are operated singularly to permit sterilization of linenware in the contagious diseases section of the hospital. A10.37 Economic conversion to sawdust firing was not considered possible in view of the infrequent usage and the small amount of fuel which is required. - 100 - Annex 10 Page 12 of 20 PBWECT: KlJI4SI WMY LTD. SAIDST-FIPD BOIL OONVEWICN BASIC PARAMRTER P.rojeot Life = 20 Discount Rate = 10.0% Official Exoh. Ra Cedi/UD : 150 Equilibrium Exoh. Rate OCedi/U~D) = 170 Shadow Value of Unskilled Labor _ 1.00 Shadow Value of Agricultural Land: - 0.00 Intermatinal Freight: =.5X bSue = 1~.2X Excise Tax = OQ Port Cargs 4. Bank Charg : 5.0% capital Cost Contingency = 10.0% Operating Cost Contingenoy 10.0% aN0DMC VAIBZ SwAmt Input (M.T. @ 36% mowb) = 7152 ANNU' 'ZED ANALYSIS RUSUL1 NET AWVUAL FINANCIAL BENEFIT -120.18 FINANCIAUSKENL PRICE R 0.75 NET ANNUAL EOMIC ENEFIT = -134.26 dCMIIC BUDfVHN PRICE = 0.75 DCF ANALYSIS RFUL1S FINANCIAL NET PRFEDN VALUE = -1023.12 FIRR Undef. BOONOMIC NET PR4T VALUE - -1143.00 EIRR Undef. FINANCIAL CAPITAL COST SWI¶TCHNG VALUE - -62% ECONMC CAPITAL COST SWIliI1NG VALUE - -72% RL5S1 WiSh¢ irUl 18'Ct1 W86t91 Irirn orist zi 1V1dD 'HO WOI1 6'I l9'Lt Irsitl 80'tl O5l lO'tll lO'9t ¶101E LIE IIdV 'OI sl 1111 911N1 0'iS MOM o: 00In oil: 0on0 01or w'nz "In mor a P"i14 oil" 11'94 89'U COON 00'1 MtO'D Ol'C§ tt'N aOtvr Blot IOPPl no'n WhO) 001 W "OUt OTs 0W0'0 0? *1WIPW" OV.L lit'D all *loi hMOM N'o 'T 19'l it t 00'1 Ulu U51 Ot $mm I RIC 1 9' V "It Bolt 001 ltlIt t'lt 0? U Will l ()W Iln D U oau IT'D Sf8 I' t's) IuOk tolt it'" tilt8 119 001 i's il's sof I'I UI'O9 iPI iros9 00' U'011 8I'0 0t 1W103A t1I myD asaau TAt;911 56't8 0011I oil" 00111 1°01B WI "IS toll 00'99 "0'I 00'w9 00'S9 0a 6a*18 Li'l 00'01 Li' 00'OI 001 00'01 0001 0t s"hIIh U6l1 01011 Isla "lot 001 OrOIT 00'0 o0 u1 aU pVB TIOUO .h 0'I 00'0 I0'L 000 00't 00'0I 00109 oa PM Po p 19w 001r1: 80,t 00'50Z 00'1 o"lot? ao'ott 0? 1111.Pt PU00 10 I'0t 00'0t lIlT 00'N on ? 00'9i OIt 0 u*lo 1661 00O01 61 1 00'0IM 00:l 00'5 00' 0? 3101mm ti9t il'et 60si o'St? i8o tS' 001'1til t' i 00 tilS 0? '3uNp 1u6m11 lam 1*0 lilt 05'0 Ui 00'1 U' 00'0 nt' 0? "o11'011oPl M1TPuI' ,? It'sll 1"'I OM HI "In? 00' 00'1? 0? I00 ' 4 PO oa ¶ P O in 000,) (a 000) (a o o,t d(u 0owt ) ('4lnw) 1 000.) (oa 000,) (aoco,) ($MI) Om 1m m 18 mule ML UlSoA 1. W VW m O~~~~~~~~~~~~~~~~~~~~e ;00 w 3 Oz jo-cO U -oa88a OT xeU -tOT- - 102 - Annex 10 Page 14 of 20 meow 1NT 1 L42c1 foligD Ttal PITt? MT WIT/WYT WIT (I) (WI (1) i (lhis) 1'000 W) (UD) ('000 UI) Lem ed-silled: Oprator/attediit -wths) 53.33 0.00 53.33 U.00 1.28 4.06 1.13 hbtOW 1.2U 1.13 Crid Ilectdiity (kWh) 0.035 0.00 .035 410000 14.49 0.012 21.31 SbtoW 14.49 21.32 04wtil a _n= ildig nA timtp hiteut e 266t.6 0.00 26t66.6? 1.00 26.6? Li29.41 23.s3 Sdt uig (trck4adu) 10.00 40.00 50.00 250.00 12.50 52.00 13.00 tub-TOl 39.1? 36.53 PHrts ule 0.00 26666.6? 2666.66? 1.00 28.6 26666.6? 26.6? wubTW 26.6? 26.6? go = W SWTO 81.60 85.65 OPE= MIT 8C O.16 8.56 MOTAL OPATIN IT 89.16 94.21 WElT ME UEL AL l eign bT PTY SlY Ft/Wi? WI) (1111I() (MI) (Vbitu/Tr.('00 WI) (DI) ('00 0 WI llesill ?l Oil (I"p. ads.) 0.00 0.433 0.43 311600 162.20 0.393 141.2 TMoL 2.o IU .22 103 - Annex 10 Page 15 of 20 ErOJT: OOsA 0o 0 Co. (WM) SAWDUST-FIRED BDIL0I OCVWION BASIC PARAMETERS Project Life = 20 Dic ant Rte = lO. Offioial E. Rste Cedi/W 15 Equilibrium Rate aCedi/D= 17 Shadow Value of Unsilled Labor - 1.00 Shadow Value of il 0.00 InterwtionalFreight - 8. Iruahc = CHn o se Tax = .0 Port Cbarges= 4.0u capital cost Coti0ec: = lOu operating cost Contigey 10.0% Sawdust Input (M.T. Q 35% mwb) = 3100 ANNUALIZED ANALYSIS RULTS NgrF ANNUAL FINANCIAL EENFI = -50.85 FANCIIAL PRICE - 0.75 N4!gr ANNUAL BOCONMIC BENEFIT = -57.77 EOCNCMIC EUVN PRICE = 0.75 DCF ANALYSIS ROULT8 FINANCIAL NRT PER3 VALUE -432.89 IR- Uadef . B(1MIC Ngr 4 ENT VALUE = -491. * EMRR Undef. FINANCIAL CAPITAL COGT SWrITCHIN VALUE -41% ROCONIC CAPITAL COST SWITCHING VALU -=44% Ulu Will Ulu Blt' 2t'00 Ulm "out mmi N1l RU "*I Ulu U'lu "In tll Wul W6m uWe Wol NWO 11J mos Ou uln "ot not "rIn OOt ODst0*01 a't 1 m ¶ all oi gr ol? elli 001 "I O liwiui Lii 0011 LI'I 00'11 00'1 GO'U 00'Ol l'it ltlOt TUwI W'i Wsn 00't a' 6"In a U*'J- 61'1 'lu 00'1 U'tt "ont 6a s a111 -- HIMS NOW (110) ww-f mom -ow il't Wa tlrt "In we t'§ oit o'0 0't 0 1 oot or ot --'1 8t'I 101 Il? It'D IT'a UluWm so=lt ami WUN --1'n 00't nat' w'8e i WIt "on art 0rn MI 00T'8 WI? a W.A all o"I' arl OW'tt N'T "0IT 00'11 a U ITII W'I "la all OO'I t 001 'IU Wi a W I3 00'U P 1 T 1S NOT WuT NOT 061 00"I 's' 0011 a PM la WM 'I 001 WI' OW'i OO't 00'11I "is a *IIlWlqu U PMI Olt NOR not W'M? 0'?t 001 0Wt 0a gill u' "011i8 6's "00 0 0 Ot " saw WIt 88'01 It'I Wt't l'oIu It'O Wlt 9' Ot Ot 0 011' "It no Ot MM Po aWi lt'O 111 111 00'? 00't 00't 00't 01 U US iIII aqOail LQl :'o U' 9 NtO 01 W 0t'0 00' N W P wnq_ (mm, 90) (mle O0) (111n m0.)(m11 000.) (s1lqj (mmD90,) (mm.), (ID O000) (uNS) olm u m iu m Ulmii Tazmam vimia a 11 ~~~ a ON= JIM 2LIM uwm In=EI ~ IaW OZIBM uu at GI XOUn- - 'OT - uszi a," sum muu o *o10lI h)1 OLliL moo no" O8ll 991 mIoo I3@IMIO d) ITO PM' P3 Wm (am 11) 000) ) m ) miu ) " ) (am) (amT -m -u la.I -mm "IN 1L1f AUIWLU WULO I11 WII, 1TJW S IIUIN Wit WMIT rnol WIr wwrt rMIT woliUn low~, all no# all WOtU 00 0 0 01011 11upjwq Wm upa "'"~~~~~~~~~~~~~~~~~~~~~~~~U U'lUd fi'l 6911l^4 ITI'Tlt it'm ti'll WOI tt'"til U'Vtl wmvnpr%P 'r "*n~~~~~~~~~~~CM a5' loun WI: tWO 6§'911 U S00011 tO'O 9'0 (W) &llaos M b't ~ ~ ~ ~ ~ ~~~m m am U't 001? ?V?9 #t9, tu ) 1 :psjT :w1q uIt 1(am11oo.) la) tam 00.) (S14) (am) (am) (m) LU &/U10 IWUb1W g1@ j uUJ OZ 3° LT S 'd OT xauU - SOT - - 106 - Annex 10 Page 18 of 20 PRoJUr: LEM MMO. QiMA LSD. SAWFDVT-FIREDonf Oa6VmIcQ BASIC PARM487M ProJect Life 20 Discunt te 10.0% Official Eoh. ate UqauilibrilJi xch. hlte Cedi/U ~ 17 -Shadow Value of le Labor -:* Shadow Value of A&c u!a Lasd - :8 Thterotial Freight .P Exoise Tax_ 0.0% Port Chargs : 4.0% Capital aostank a m Cost Cot: 00 Operating C4st Contingency:_ 10.0X a N ~VARIAELS &Udut nput (M.T. e 35.6% mowb)= 19300 Sudit Haua DistMaoe (i) 295 -ANNUA ANALYSIS ULTS - NET ANNAL FINANCIAL B_NW IT :-269.85 FINANCIAL HEKgAI PRICE 0.68 NIr ANNUAL EOCMC BrHT -426.18 BXMNMIC EMEA I IN =E 0.71 DCF ANALYSIS F2M78 FINANCIAL NgR T VALE = -2297.34 Pin,tl Uef. EXOaUC NET RSE VALUE -3628.33 EM Undef. FDIAIAL CAPITAL COST SWIUIN Vt - -9ax BOECHIC CAPITAL CX)T 9WITOInG VALUE > -100% - 107 - Annex 10 Page 19 of 20 me MD no PM CT L AMU FNL 00STWn FII IL UIUU DUICIoPJUC liml ai lrd Si l w ooan sot gm= IAWC URI Ladi Tob Total WMl? M05 cm8 08? 008? (Tom) ('000 (MD) ('000 D) ('000 ) (ibit,) ('00 UO N'000D) ('0W0 ) ('000 ) V oa ad timmdVuk 20 31.33 0.00 31.33 1.00 31.33 3.68 1.65 3.M Wdlii hiifsiou 20 6.00 0.00 6.00 1.00 6.00 0.10 5.O 0.62 kDp, Iua ad gho. totur, 20 12.00 0.00 12.00 1.00 12.00 1.41 10." 1.U4 Ih>otd 49.33 5.19 4.63 5.11 CWII= Ri kim 20 122.50 122.50 2.00 245,00 28.18 245.00 2.18 Dm 20 6.00 65.00 2.00 130.00 1*.4? 130.00 1.2 Railb?* and htu 20 300.00 300.00 1.00 300.00 35.* 300.0 35.24 3ottrk iA Sta 20 85.00 85.0 1.00 85.00 9.a 85.00 9.98 eotril and bUotzm dm 20 155.00 155.00 1.00 155.00 18.21 155.00 18.21 RLmlluems 20 15.0 15.00 1.00 15.00 1.16 15.00 1.16 " 20 85.00 9.0 1.00 95.00 11.16 5.00 11.16 :Sb-tel 1025.00 10.40 1025.00 120.40 INIIA?IWL 91 M ID NOW fre t 20 81.13 8.13 1.00 8O.13 10.23 8.13 10.23 lan. 20 U.30 12.30 1.00 12.30 1.44 1.30 1.44 SbTotl 99.4 11.68 99.43 ll.8 MSI II-IN E! W-OTL (CIy) 12.U 1124.43 Port a 2 44.98 44.98 1.00 44.8 5.t8 39.58 4.65 Dn C a 20 56.2U 56.2U 1.00 56.22 6.60 49.41 5.81 Sub-Total 101.20 11.89 89.05 10.46 b W P _t 20 0.00 5.00 245.00 1.00 245.00 2.18 U2.00 28.18 IntaflatiU 20 350.00 20.00 580.00 1.00 580.00 68.13 538.82 63.A baitInt 20 0.00 35.00 35.00 1.00 35.00 4.11 35.00 4.11 SubtAl 860.00 101.02 818.82 9.18 WCIL WIT ffiIOTAL 500.53 1534.43 2134.96 2134.96 250.11 2015.8 24.8 AITAL 001? I 50.05 163.44 213.50 213.50 5.08 201.58 U.38 TTAL WCPIML ST 0.58 191.8" 234.45 234.4S 215.85 2283.42 68.21 - 108 - Annex 10 Page 20 of 20 U-L DM L lad Foin Total low a ( ca(N/I? coT (ED) (UID) (UID) (Iit.) ('U ID) (UED) ('000 LID) 8ed1: Op r/ t (n-ma) .3 0.00 63.33 !4.00 I.* 41.06 1.69 SbTOW 1.92 1.61 grid letr ity (kIl) 0.02 0.0 01 811000 11.03 0.052 42.1 Sub-Total 4I?3 42.1? uldfig d dpint bMt_e 31616.t? 0.00 38866.6? 1.00 38.6 34111,65 34.12 SuTtal 38.6? 34.12 Part, qpl 0.00 366.6 38665.6? 1.00 36.6? 38566. 38.6? bol 38.6? 38.6? tNB? fL 96.18 116.65 0151113 MRIT Mu9.63 11.6? TTL O10a (? 105.91 118.32 0I BM I ME (NtT-h) 0.00 0.000 0.064 5613500 364.38 0.068 3A.16 Le Pni w am ICE BMWN sum urn - uu*r (IID) (IIID) (EXD) (SUIt/Yr.) ('000I ED) (9D) ('OIUIED) bsidal l1 0i1 (lIp. Its.) 0.00 0.43 0.433 11000 416.30 0.325 35t.50 "MA IR 81111 416.30 365.50 - 109 - Annex 11 Sawdust-Fired Boiler Conversion Models -Wood Substitution - 110 - Annex 11 Page 1 f 17 SAWDUST-FIRED BOILER CONVERSION ODEL - WOOD SUBSTITUTION Appiah-Menkah Comples Ltd. Al1.1 This plant is expected to produce 1,925 tones of bar soap in 1986. Its steam plant consists of one horizontal firetube boiler close- coupled to a Lambion wood burning furnace. Firewood is purchased directly from commercial suppliers who are required to supply seasoned hardwood species such as Odum, Hyedua and the redwoods. Annual firewood consumption at the 1985 production level was estimated to be 1,940 tonnes at 30 percent mewb. This boiler plant consumes considerably more firewood than is expected, indicating a very poor thermal efficiency of 15 percent or less. Steam requirjd for the 1986 production level is approximately 950 kg/hr at 10.2 kg/cm gauge pressure. A1l.2 Sawdust available at 36 percent sBcwb could be readily burned in the existing furnace with minimal modifications to the trate and combustion air systems. In addition, a sawdust handling and storage system as shown in Figure All.l would be provided, including an enclosed dry storage area for the sawdust. Sawdust would be delivered by truck and dumped in the plant yard. A front-end loader would then transport the sawdust to the dry storage area. The sawdust would then be transported to the boiler by wheelbarrow similar to that presently done with the firewood. Atnual sawdust consumption would be 2,800 tonnes at 30 percent mcwb. A11.3 Costs. A summary of the estimated capital investment and annual operating costs are presented in Table All.l. Total capital costs for the conversion are estimated to be US$81,300 while annual operating costs are only US$10,000. Details of both the capital and operating cost estimates are presented as part of this Annex. A1l.4 Benefits. Conversion to sawdust firing would eliminate the need to purchase 2,700 tonnes/yr of firewood from Kumasi wholesalers at a delivered price averaging US$10/tonne, a value of US$27,000 annually. A11.5 Financial Analysis. Results of the financial analysis, as detailed in this Annex and summarized in Table A11.2 show that the conversion investment is marginal from a private viewpoint. With a net present value of less than US$6,000 over the project life of 12 years and a rate of return of 11 percent, the project is not worth undertaking given the small but nevertheless real risks involved. - 111 - Annex 11 Page 2 of 17 r 1l |i/i\ COVERED STORAGE TRUCK DELIVERED SAWDUST #/ FRONT END LOADER MODIFY BOILER HOUSE DOORWAY AND ADD RAMP MODIFY GRATE BARS AND AIR CONTROL DAMPERS THE WORLD BANK WASHINGTON D.C GHANA SAWMILL RESIDUES UTILIZATION STUDY SCHEMATIC OF SAWDUST BURNING CONVERSION WOOD BURNING BOILER - SIMPLEST SCHEME SSW SKETCH No. A. 7280-SK2 - 112 - Annex 11 Page 3 of 17 Table Alllt SUNKARY OF CAPITAL AND ANNUAL OPERAlINkC CSTS FOR CONNERSION OF APPIAH4MENKAH COIftEX LTD. Local Costs ForeIon Costs Total Ite' ('000 USS) ('000 USS) ('000 USS) Capital Costs Construction 8.5 - 8.5 Equipment 0.7 33.0 33.7 Transport Chares / 3.3 3.2 6.5 EngineerIng, Installat on 29.0 3.6 32.6 and Continencles Total Capital Costs 41.5 39.8 81.3 Annual Operating Costs LaboW 0.0 - 0.6 PoWr 0.8 - 0.8 0 & N bl 2.3 4.0 6.3 Con-mables - 1.3 1. ContinencIes 0.4 Q* 1.0 Total Annual Operating Costs 4.1 5.9 .lo0 a/ Includes Internotional freight and Insurance, local port charges and bank fees. I/ Includes cost of sawdust hailage and delivery. - 113 - Annex 11 Page 4 of 17 Table A11.2: FiNANClALECCNONiIC ALYSIS RESULTS, APPIAN UEMWAH COWLEX BOILER ONVERSION Financial Economic NPV $5730 590,370 lIft t111% 3 Capital Coost Switching Value *5% +92% Discounted Payback Tims 11 years (4 years A11.6 Economic Analysis. Results of the economic analysis, as presented in this Annex and Table A11.2, illustrate the importance of wood fuels taxation for the evaluation of fuelvood-substitution projects. A stumpage fee of U8$5.00/tonne, representing the estimated long run marginal cost of fuelwood production, raises the investment's net present value to US$90,370 and the rate of return to 32 percent. Sconomically speaking, the project has a discounted payback period of less than 4 years. Ashanti Oil Mill Ltd. A11.7 This plant produces palm oil from palm fruit and is claimed to be capable of processing 6,000 tonnes/annum of fresh fruit. T steam plant consists of one Usines & Duray 1,560 kg/hr, 10 kg/cm gauge vertical firetube boiler which is hand-fired with firewood and palm fruit fibre remaining from the process. Firewood supply is shared with the Appiah Menkah Complex (both companies have the same ownership and are neighbors). Annual firewood consumption (1986 figures) is 400 tonnes at 30 percent mcwb which would equate to approximately 440 tonnes of sawdust at 36 percent .cwb. Substitution of sawdust for the palm fruit fibre is not recomiended since the fibre is a process waste available at no cost. Al.8 The mill presently pays about US$10 per tonne of firewood. Its total annual expenditure is only US$4,000 per year. Conversion to sawdust of this plant would be relatively simple and require about the same capital investment per unit of boiler capacity as at the Appiah Menkah Complex. However, the amount of sawdust required is only a fraction of its fuel needs because of the availability of waste palm fruit fiber. The result is that the financial attractiveness of conversion at this plant would be less than at the Appiah Menkah Complex discussed above. - 114 - Annex 11 Page 5 of 17 Prestea Gold Fields Ltd. A1l.9 This state-owned company mines ore underground, brings the ore to the surface and smelts the ore, extracting the gold. The mine has many years of ore in reserve. In the smelting process, the finely ground concentrate is dewatered over a vacuum filter drum and scraped off onto a dryer. The concentrate has approximately 20 to 25 percent moisture content when it enters the dryer. The dryer must reduce the moisture content to a level that is no higher than 15 percent (dry weight basis). Following the dryer, the concentrate is smelted in the roaster. All.10 The roaster and the dryer each have firewood furnaces for a heat supply. The roasting process is almost exothermic and needs only a minor heat input of the wood burning furnace. There are 3 furnaces on the roaster, two at the outfeed end (one on each side) and one on the side about one-half way along the length of the roaster. This latter is the only one being used. In other gold mines there are roasters which are exothermic and burn off the syrites without auxiliary heat input. The roaster at Prestea is old, not well insulated, has no automatic controls and therefore needs some heat input. An excessive leakage of excess-air is induced into the roaster via the firewood furnace and via crackn and other miscellaneous openings. The roaster uses an estimated 8.5 m of stacked firewood per dfy and the dryer also uses 8.5 m for a total Slant consumption of 17 m /day. lue 8.5 m probably represents 5.35 mf solid wood equivalent (SWE) being used in each device. AI1.11 The smelter originally operated at an ore production rate of 40,,000 tonnes/month ore until the mid-1970's. The present plan is to improve the production form 14,000 up to 20,000 tonnes/month by the end of 1987; then, by 1990 to be operating at 30,000 tonneslmonth. The 30,000 tonnes/month would probably represent the targeted "normal" capacity. A11.12 The current firewood supply is to fuel one dryer and one roaster. The mine hopes to be starting up the second dryer and the roaster shortly and is interested in obtaining another timber concession so as to increase the supply of firewood and sawlogs for the sawmill. A1l.13 Sawdust available from the company's sawmill and from the nearby privately owned Prestea Sawmill could be used to displace fuelwood consumption at either one drier or one roaster furnace. Conversion to combust sawdust would require a change in grate design. The present bar grate have wide slots which would permit the sawdust to fall through. A pin-hole type grate would be required to allow for pile burning of the sawdust. A more desirable solution would be to install a sloping or stepped type grate specifically designed for wet sawdust burning. However, this would require that the furnace be rebuilt in order to elevate the fuel feed openings. The net efficiency gained from this approach should justify the additional costs. - 115 - Annex 11 Page 6 of 17 A11.14 Based on wood consumption data and dried ore production, the thermal efficiency of the driers and roasters was estimated at less than 20 percent. The primary reason is poor or no control of excess air being drawn through the furnace. Any furnace modifications should incorporate the relatively simple measures required to drastically improve this low efficiency. A11.15 Figure A11.2 shows the present configuration of the ore roaster fired with firewood. Figure A11.3 presents a sketch of the proposed modifications to convert the roaster to sawdust fuel. The modifications would require installing stepped grate, elevated platform for fuel feeding, ramp for fuel transport, and over-fire infeed door and under- fire ash clean out door. Present firewood consumption is estimeted to be 2,500 tonnes per year. Total sawdust required to replace this consumption, given tha expected efficiency gains is estimated at 1,250 tonnes/yr. A11,16 Costs. A summary of the estimated capital investment and operating costs for converting the drier to sawdust fuel is presented in Table A11.3. Capital costs to convert only the roaster, which consumes only half of the total fuelwood consumed at Prestea, are estimated at US$33,300. Annual operating costs are estimated at US$2,200 per year. The primary operating cost is due to haulage of 800 tonnes/yr of sawdust from Prestea Sawmill. Table A11.3: SUMMARY OF CAPITAL AND ANNUAL OPERATING COSTS FOR FOR CONVERSION OF ROASTER AT PRESTEA GOLOFIELDS LTD. Lecal Costs Foreign Costs Total Item ('000 USS) ('000 USS) (000 USS) Capital Costs Construction 0.4 - 0.4 Equipment 0.1 13.9 14.0 Transport Chages a/ 0.6 1.4 2.0 Engineering, Installation 1.1 15.0 61.9 and Contingencies Total Capital Costs 2.2 31.1 33.3 Annual Operating Costs O & M b/ 0.0 0.6 1.4 Consumables - 0.6 0.6 ContingencIes 0.1 0.1 2 Total Annual Operating Costs 0.9 1.3 2.2 a/ Includes International freight and Insurance, local port charges and bar' fees. b/ Includes cost of sawdust haulage. - 116 - Annex 11 Page 7 of 17 Pigure A11.2: PRESTIA ORE ROASTER PRESONTLY PIRED WITH FIRKVOOD Exhaust Gas Out t t t . 1 , ~~~Dryed Ore In r * i t :;S^Ci_Guillotine Door for Control of Firewood Thron n/ire Air Furnaces anual3yFurnaces (1 used presently -~ ~ Underfire ~ [:- <<< _" ~~~~Combustion Air 'n r , Firewood Thrown into r^ #< Furnaces manually _ 6D Ros~~sted Ore Out -117 - Amet 11 ?as oft 17 Figure A11.3: PlREUR ORE ROASTER PROPOSED COUVEUIOM PRQ PIRIOOD PFIRIG TO SAWDUST Sawdust Infeed feed Door Open New Stokg Platform & Ramp Sawdust Wheelbarrow Sawdust Infeed Door Sloping Step Grate Burn-out Pin-hole Grate New Clean-out Door -118 - Annex 11 Page 9 of 17 All.17 Benefits. Taking the roaster efficiency improvements as required and thus given, total firewood displacement at the one roaster is 1,250 tonnes/yr. Financial cost of fuelwood for present operations at the 5,000 tonne/yr consumption level is derived in this Annex as US$36,700 per annum. It is assumed that 25 percent sawdust substitution would save a quarter of these costs. An addtional benefit of the conversion is the savings in labor required to chop and prepare the firewood, put at 48 man-months. All.18 Financial Analysis. Analysis shows this conversion to be financially profitable, yielding a 23 percent rate of return, although net present benefits of US$20,470 are small. It is assumed that sawdust can be obtained for the price of haulage from the nearby Prestea Sawmills Ltd. If a charge were to be levied, breakeven analysis shows US$3.77/tonne as the maximum Prestea Gold Fields could pay for the sawdust. Analysis details and summary are shown in this Annex and Table A11.4 respectively. Table A11.4: FINANCIALdECOtOIC ANALYSIS RESULTS, PRESTEA GOLDFIELDS LTD. RATR CONVERSION Financial Economic NPV S20,470 $54,990 IRR 23S 42% Discounted Payback Time 5 years <3 years All.19 Economic Analysis. The value of firewood has been adjusted in the economic analysis to account for the local/foreign cost components in harvesting plus its cost of production (reforestation). As shown in this Annex and Table All.4 the project rate of return rises to 43 percent with economic payback occurring in less than three years. Presently, stumpage is a very minor part of the mine's cost of fuelwood. -119 - Annex 11 Page 10 of 17 PRJW: APPIAH M8MKAH OP SAWUST-FIRED BOILER CONVESION_ BASIC PAPAMKrS ProJect Life 12 Discount Rste: = 10.% Official Exch. Rate (edi/US) - 150 Zciuibrium Exch. Ite Cedi - 170 hadcw, Value of Uni le LabOr , 1.00 Shadow Value of Agricultural Lnd 0.00 International Pright 8.6% Eso Tazc = r =kt 1:~ ise Tsc = 0.0% Port Chares: 4 .0% Ban Chags 5a.% Capital Cost Ontency 10.OX Operating Cost Contingenc 10.0% aN ~VAPJ Sa-t Input (M.T. 0 36% wb) 2800 ==__ _IZ_ ANALYSIS RESULT NET ANMNAL FINANCIAL B I = 1.92 FINANCIAL IBRIAREEN P¢ = 9.29 NET ANNUAL U(XNCMIC BENEIT = 13.28 ECONOMIC 1A PRICE - 8.92 DCF ANALYSIS REBLTS FINANCIAL NET 3NWT VALE = 5.73 FM 11% ECttCHIC NET NRT VALUE - 90.37 ElM - 32% DI80(VNIM PAYBACK TIME, FINANCIAL ANALYSIS : 11 years DlSOCUNTED PAYBACK TIMB, 1311IC ANALYSIS = <4 yeaes FINANCIAL CAPITAL OOBT SWITIN VALUE +5X DCflC CAITAL (XST 8WlI VALLUE = 92% son a's alp LI'S WI 'U ' I'it "InW UJ It't 1163 all a8l WI not U¶t 11am i mm "In "l' Ulu w'U U'Usm'lt o mm XI'tll K' "t al'" mq 9t'0 si oe 81 0 3 "1 D'at not all li '1 "'tl 't a,: § ODI Nt "'IN o'9t IMtI t6l 013 not 001 00'01WI 001 nU 3 UI fio we suo iro Mq11' W1 W'o PO II's W01 l S'I t8e I M1 9T WlI f'O '1t'O'1 OO'1"1 3'? lUW- 60' SI'S CO'S 0)'0 00'1 0'O W'O 9 i3'0 t8'? 13' 18't OD'I tB': ii'? 9 1¶i5 ;liI wJIIS 1DSIllM SI'S 00't SN 00't OO'?tOOt not I }t w 61 00no WSl' 00' a 1 00I 00' 9o V U'O OD'S UI'O OO'9 001I OO'9 OD'I 51 89W pSv-l Ol'l not '1 "It mq- We'l 0'S toi 051 OO I not I noP CLIO OS'S WIo CDS NIT 03S 03'S U "PS'91 I FMl amin (a ooe) ( mm.) lmo WOM OOO.) PM^) (a O.) 1 (m.) (a ,) 1(a) m m m mm U " To" amil Om m - mm IT 3Tl *Si8j tT xeUUY ot -121 - Annex 11 Page 12 of 17 cafln 1ll fU bt4 WWEAU UNIC DW (t110 (MID) (13D) (Utite) ('000UD ('0001V0) ('000 ID) di-elld: Opstor/louder (u mt) 53.33 53.33 12.00 0.64 1.0 0.56 Sb-Totl 0.646 PM Grit leotfieit4 (ki) 0.014 0.01 lO000 0.81 0.02 0." 8ub-tal 0.81 0.7 -vIpmt huo . 1333.33 1333.33 1.00 1.33 116.4 1.18 1A* t bIg (tuk-da) 10.00 0.00 50.00 100.0 5.00 51.0 5.2 8-Totl 6.33 6.43 art,, epmu 1333.33 1333.33 1.00 1.33 1333.33 1.33 Subtd 1.33 1.33 011D ON 4UULO 9.12 2.50 0lAT1 08=In 0.11 0.0 nu1 1131 10.03 hU nIU IDITUK VDL IOIil 31311 1aa Freig Total W= m 1 (3D) (MD) (lID) (UIts/t.) ('000 L) (t3) ('0 a) Virewod (Tomes) 10.00 10.0o 1108.00 21.03 1.8 31.4 TOTAL 3311111 21.0 31.4U -122 - AMex 11 Page 13 of 17 FINANCIAL COST OF FUELWOOD -- PRESTEA GOLDFIELDS Assumptions o Current harvesting operations are 2 trips/day x 20C8 days/month o Air dried wood moisture content Is 23% mcwb. o Cutting and stacking employs 30 laborers at 7,600 Cedi/month wage each. O 2 chainsaws required at U.S. $500 each. Chainsaw service life Is 2 years. o Chalnsew fuel and oil Is S00 Cedi/day each. O I x 10 ton truck required at USS32,000 FOB plus 140 Insurance and freight. Service life of 5 years. Salvage value of 15M of original CIF value. o Proportion of truck utilization allocated to fuelwood operations Is 65%. o Truck makes 2 round trips/day at 2 hours per trip total 4 hours road time per day. o Truck on road 5 days/week x 50 weeks/year a 250 days/year. o Truck maintenance and fuel Is U.S. $10/hour of road time. Cost of Fuelwood Harvesting Capital costs o 10 ton truck Truck FOB price: 32,000 Plus 14$ Insurance and freight: 4,480 Sub-total 36,480 Less 35S non-fuelood utilization: 12,768 Total: 23,712 Less IS$ CIF salvage value: 3,557 Year S salvage value discounted at 10%/year to present values 3,208 Total year I Investment: 21,504 Annualized cost at 10SJ5 years C*R*F.: 5,673 o Ci$aInsaws ChaInsaos coat $500 each x 2 saws 1 000 Annualized cost at I0$ 2 years C.R.F.: 576 -123 - Annex 11 Page 14 of 17 Operations and maintenance o Truck Truck maIntenonce and fuel at 510/hour x 4 hours/day x 250 days/years 10,000 o Cholnsaws Chalnsaw fusl and oll at 2 savs x S00 Cedis/day x 250 days/year: 250,000 Converted at 150 Cedis a 1.00 USD: 1,667 Labor o Laborers 30 laborers x 7,600 Cod4/man-month x 12 .o/yr: 273,600 Converted at 150 Ce4ds a 1.00 USD: 18,240 o SupervIsion 200 x Forester x 18,000 CedihAonth x 12 mo/yrs 43,200 20% x Asst Forester x 18,000 Cedimo x 12 mo/yr: 43,200 Converted at 150 Cedis a 1.000 US0: 576 Total Annual Harvestina Cost: - 124 - Anex 11 Page l.) of D PROnM WIffTI& OAZFB LID. SAW9T FIND RDASTU 4ONVEICN BASIC .ARAMRTNS ProJect IAfe: 10 Di cuta: 100 Official ac:h. Rate io Uwa=ilibrium Txch RNate Qdi) : 17 uValue of llledLbo = 1.Q Aw Value of Agricultural Ll Inteational Freigt _ Insanoe - 1.2% Iuzt Dty = 0.0% wise Tax: 0.0 Prt C 4 capital Cost Cont y 10.0O Operating Cost Contincy - 10.0 rras VAPIRB Sa&dust Input (M.T. @ 36% awb) = 1250 ANNUAIZE)ANALYSIS ULTS NIl ANNUAL FINANCIAL B=NIT 3.33 FINuANIAL EVRAPICE _ 4.69 N*ET ANNUAL 1DCtNaC IDNFIT = 8.95 E3CFRIICE PRICE 4.57 D(F ANALYSIS RMULTS FINANCIAL Nlr HEST VALUE = 20.47 FIM = 23% URXNHIC NET PR3N VALUE = 54.99 BlE= 42% DISOXWNTD PAYAX TIME, FINANCIAL ANALYSIS = 5 years DISOXNTD PAYBACK TIME, EOCXNIC ANALYSIS = C3 years SWT BE PRCE FINANCIAL ANALYSIS ((S$/t) 3.77 01'0 "I't "'S Not "It SOlt al'l LIM sm 9'0 0 OO' £l01 tO't tO 't f'lIUWA "'JUId n'o P'ot Z?Ot Ulu Wet s33 ao: 'JBi 1 W N't a'tl not "'tl 00'0 tO0 101 t'0 W0' Co 0 l 01 JUIU Wo 5We0 tWlO 1'0 Wll 310 31o 01 tI'Z "In011l 9011 Wl 3011 1011 901 01 lOO 'O 100 "00 foo s$ al fa u4 101' 01N' 1010 "OO' 101'00 501O 01 ZU-C 3 6011 isle 01 191 60'0 We 011 Ire WI ire WO 01 U ' O 0 am i WO1 Wil W0 WI 1' 8 t sio II VI not WI` all al 01 SM 61'0 Bt't 61'0 8t't WI 8l't lI't 01 GIRlll - ¶YIOUID I ii em em: WIT~o= a gus Wii' 01 £afegmuuI 31'0 01' 0 N'0 W01 0`1' Ot'O Ot SU wle eIe all else el se 01 '0RI 01 3n SaI I'0 041 t'O 011t OOl 041 0 01 MU WGSU silo ent U'O "It W 08'"t 08't Ot W 06 051 all WOS 091 Woet 01OS'10 9MOt M TPM La mml 901 RIOe goo It'0 IUWIa 901 9t'0 O0'0 itlO 00T 1i1 ireMm0 (a 0.) 1(0300,) to 0u)e 0D00) 1h41) (mm0.) (Sm.) (mm.) =0) &8D: mm %a la= _ a - -m 11W 1600 1100 1300 111161* 13W UPW* I"'! Dli ~ ~ ~ llllL 00 TI 10 9T 3tw! TI SZUUI - ZT- WrI a's1 0) V? I 1U'1mE) a"/=" ij : pti Pl~ Ulu (O'R 'tPnO " t w £811t 06'tl 61'6 00'O81 St'& 09't 98't l.n) m tar 0X,) tar) 1a eeo,Pa'IuIv) tor) lam) tur) OCCS2N U 111139 1WXI -l' 02'w - am or: cv: iw m~~~~~uma 61'0 08'0 iI I 1W113 6'1 001 ¶1101 11 EWO to oso OrG0 00'009 09'e OO'l 00'001 00'001 B'I$'~ U'0 86' 0 08'0 0M 0O'Tm08'0 0'0 1 u ?60 W69 090 00'1 00'009 000 3911111 f110Z11131 tm eec,) (urn ee,) turn eec) (4) (urn (ur) tur) n ~ ~ ~~~~~~sn - - - 1131111W 11120111s 1U11 1T X=UU - 9ZT - - 127 - Annex 12 Laboratory Test Results on Woodfuels Samples - 128 - AN#X 12 *PUP 60 4113 * 161KX t41 S Carroll-Hatch (International) Ltd. Datet December 12, 1986 148 East 2nd Street Revised January 6, 1987 North Vancouver, BC our Ref: 460686 JRH:86:814 V7L 1C3 Your Ref: Project P3844 Attention: Peter Neild Mine (9) assorted hardwood samples from Ghana, received November 28, 1986. Grown Best OWAity % Vb1atile % NistUrG value - 1m P1m Don Orv g 250 da C (105 dba C) Ai/o.d.h. 1-Caroosl 'MoWd Syple (Kuami) 0.458 < 0.5 4.67 30.7 2-Oa1cosl MtxwI Smiple (Kumai) 0.28 ( 0.5 2.16 26.2 3-Caz'oal lfmuf amwple (Kuami) 0.757 ( 0.5 5.05 34.2 4-Carosl Kiln ater (uma d) 0.329 < 0.5 5.04 26.4 5-Brhqase (MoaMD) 1.275 - 5.48 20.2 6-Sriquskt (frem 16 by b4ndle) 1.287 62 4.29 19.9 7-Fiuoxod Rtid.. White Ibad S8wiss IMI Bridi Kiln (Rimasdl 0.508 74 8.22 20.0 8-Vini.od-9ltr (Psr tes) 1.018 62 13.7 20.8 9-BlaIck, Mighty-Otte Smill (Prestos_ 0.909 70 11.3 20.4 Calorific values were determined by Parr oxygen bomb calorimeter. ECONpTECH SERVICES LIMITED /jk 4 (4{.. s.((T< John, R. Hamilton Analytical Supervisor - 129 - Annex 13 Charcosl Production Models - 130 - Amex 13 Page 1 of 7 CHANROAL PROOUCTION COST, TRADITIONAL EARTH MOUND KILN Assumt ions o Total siobs/edgings Input Is 64,000 m3 sw/yr. O Input wood lix Is 50% Wswa/50S redwood with average oven dry density of 510 kg/r . O Input wood financial cost Is 600 Cedi/tonne (US $ 4/t) dellvered on-site. Economic cost Is $4 x 0.88WC plus S5/t marginal cost of fuelwood production. o Labor productivity Is 17 tonnes charcoal per ain-year. O Wage rate Is 4,500 Cedimo. o Conversion efficiency Is 16%, dry weight basis. O Charcoal production Is 32,640 t x 16% a 5,400 t/yr. Annual Annual Costs of Production Finaclcal Coat Economic Cost o Wood Input S196,610 S417,775 (49,150 wet tonnes) o Lbor $114,480 5100.742 311,090 518,517 * 5,400 t/yr u S 57.61 t 96.0Q (6.6 CedI/kg) - 131- Annex 13 Page 2 of 7 OW AL PRIMUCTION COST, ORI METAIL KILN AssLpt ions o Total slabs/odglngs Input Is 64,000 m3SlIE/yr. O Input wod MIx Is 50%1 awa/50$ redwvood with average oven dry density of 510 kg/r3. O Input wood fInancial cost If 600 Cedi/tonne (US S4/t) Economic cost Is 54 x 0.66 SW' plus S5/t marginal pSt of fuelwood production. o Capacity per kiln Is 7,2 m x 0.63 packing factor x 2 cycles/wk x 50 wkyr a 453 O SWE/yr. o Kilns required Is 64,000 m3/453 m3 a 141. o Kilns fabricated of heavy gauge steel with 5 year lIfe amortized at 10S o Labor requrmuients are one person/kiln, o Wtp Is 4,500 Cedlino. o Conversion officiency Is 27% dry weight basis. Local Foreign Annual Annual Cost of Production Cost Cost Financial Cost Economic Cost o Wood Input Slabs/Edgings 196,610 417,775 o Capital Site Preparation 4,700 SteealJitis 119,650 Fabrication 56,400 Instal lat lon/Trng. 23,500 84,600 119,850 53,760 51,255 o Labor Laborers 50,760 50,760 44,669 o Maintenance ServicesMatls 25,380 8,460 33,840 30,706 334,970 544.405 s 8,850 t/yr 5 37.85 S 61.51 - 132- Annex 13 Page 3 of 7 CHARWAL PRoCucToIN CoST, SUBRi CLAY4ETAL (FOSSE) KILN Assumptlons o Total slabs/edgings Input Is 64.O00 *' SW/yr. O Input wood six Is 5W Wawa/SOS redwood with averag oven dry density of 510 kg/a3. O Input wood financial cost Is 600 Cedi/tonne (USS4/t) Economic cost Is S4 x 0.8E SOF plus S5/t marginal cost of fuelwood production. o Capacity pWr kiln Is 11.2 m x 0.63 Packing faetor x 65 cycles/yr a 473 .3 SIE/yr. o KIlIns required Is 64,000 m3/4730 * 135. o Kiln lIfe Is 3 years. o Labor requirements are 3 persons/2 kIlIas. O Wage Is 4,500 Cedi/ao. O Conversion efficIency Is 20%, dry weight basis, o Charcoal production Is 32,640 t x 20% a 6,40.C t/yr. Local ForoIgn Annual Annual Cost of Production Cost cost Financial Cost Economic Cost o Wood Input Slabs/idgings 196,610 417,775 o Capital Site Preparation 4,50O Corton Steel Plate and Ducts 74,250 Fabrication 9,900 Instal ation/1rng. 24,300 38,700 74,250 45,419 43,551 o Labor Laborers 73,440 73,440 64,627 o maintenance ServicesiNats 4,050 2,700 6.7506264 322,219 532,217 t 6,400 t/yr S 50.35 S 83,16 -133 - Annex 13 Page 4 of 7 CHURCOAL PROIUCTION COST, CASAMANCE KILN Assumptions o Total slabs/edgings Input Is 64,000 m3 SWE/yr. o Input wood mix Is 50% Waws/S0S edwood with averae oven dry density of 510 kg/63. O Input wood financial cost Is 600 Ced I /tonne (US S 4/t) delivered on-site. Economic cost Is S4 x 0.08 SCF plus S5/t marginal cost of fuelwood production. o Capacity per kiln Is 50 m x 0.63 packing factor x 50 cycles/yr * 1,575 mS StE/yr. o Kilns required Is 64,000 .3/1,575 m5 - 41. o Kiln (Chimney) life Is 2 years. O Labor requirement Is 0.25 mon-day pr 35 kg charcoal output " 711 mon-day/t. O Wage Is 4,500 Csdi/so. O Conversion officlency Is 25S dry weight basis. O Charcoal production Is 32,460 t x 25% a 8,200 t/yr. Local Foreign Annual Annual Cost of Production Cost Cost financial Cost Economic Cost o Wod Input Slabs/Edgings S196,610 S417,775 o Capital Chimneys 2,000 Tools 1,000 Training 7,000 7,000 3,000 S 4,021 S 3,683 o Labor Laborers 81,180 S 81.180 S 71.438 281,811 492,896 s 8,200 t/yr a $ 34.37 $ 60.11 - 134 - Annex 13 Page 5 of 7 OCARWAL PRODUCTION COST, BRICK (BEEHIVE) KILN Assumptions o Total slabs/edgings Input Is 64,000 m3 SWE/yr. O Input wood mix is 50% Woawa/%S redwood with overage oven dry density of 510 kg/a3. O Input wood financalI cost Is 600 Cedi/tonne (USS4/t) Econoic cost Is S4 x 0.88 SCF plus 55/t mrginal cost of fuetwood production. O Capacity er kiln Is 50 O x 0.63 packing factor x 43 cycles/year * 1.418 a SE/yr. XI KJins requireod Is 64,000 m /1,418 u 45. o Kiln llfe Is 3 years. o Labor requirements are 16 san-hr/tonne charcoal a 90 man-years. o Wage Is 4,S00 Cedi/mo. o Conversion efficlency Is 30%, dry weight basis. O Charcoal production is 32,640 t x 30S a 9,800 t/yr. Local Foreign Annual Annual Costs of Production Cost Cost Flnonclal Cost Ico omic Cost o Wood Input Slabsfidgings 196,610 417,775 o Capital Site Preparation 5,000 Materials 13,500 Fabrication 71,500 Tools 11,250 Training 7,500 64,000 24,750 43,730 39,67 o Labor Laborors 34,400 32,400 28,512 o Maintenance (10% capex/yr) Services"WAtls 9,750 9,750 8.580 282,490 494,544 t 9,800 t/yr S 28.3 * 50.46 - 135 - Annex 13 Page 6 of 7 FINANCIAL ANALYSIS BRICK (BEEHIVE) KILNS IR'ECT, KUMSI Year 0 1 2 3 FInonclal Costs Capital 108,750 Wood Input 196,610 196,610 196,610 Labor 32,400 32,400 32,400 maintenance 9,750 9,750 9,750 Financial Benefits Charcoal 561,867 561,867 561,867 (9,800 t x S57.33/t producer price) WYV 6 O D.R. a $691,769 FIRR a 292$ Simple Payback a 4 months -136 - 3 -136- ~~~~~Annex 13 Page 7 of 7 ECONOMIC AALYSIS BRICK (EEHIVE) KILNS PROJECT, IUMASI Yeaw 0 1 2 3 EcamIc Costs Capital 96,670 Vood Input 417,775 417,775 417,775 Labor 28,512 28,512 28,512 Maintenance 6.560 8,560 1,560 EcoamIc BOsf Its Charcoal Output 940,996 940,990 940,996 (9,800 t x 596.02/t economIc price) NPV e 10% D.R. * 51,110,261 EIRR a 490% Simple Pabck * 2 monThs - 137 - Annex 14 Sawdust Briquetting Plant Specifications and Models - 138 - Annex 14 Page 1 of 13 ..~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~* .... W . .~~~ . RECOMMEND RAW MATERIAL PERFORMANCE: RICE HUSK 4.700KCA L/ KG WOOD CHIP 6.700KCA L/ KG STANDAAOACCIMUOMI RICE HUSK WOOD CHIP SAWDUSTS MAO OMS P6tFORAAM --N* lu 1 pg~ OwenI hee0r mcn. AWnI0%A" ~~~~~~~A. _UAfw - - Floor ~o ~Kw muOu ~DORMn. WKIN.' PI4SF :4 Kw OIMeNOO 3sm IOUSTF3 hftI.4l mull wgm: 3=f K. a -. AU- 3 Pu q npwam: US'CI kib Oim~: Aworn= W uEM9D~~~~~~~~~~~~~~~~~~~~~~ MGM poimOT an o*4 W IMI N. UCAua s.am. rnKu FOMIGM Pukig Isa: I.1 Uas UU a Us U *PISIGOF Pe llVA*AMST 2. WMIsGol. III C, 0 SW":O CHIP 6.700KCA L/orKG RICE " - K~~~~~~~~~~~~~~~~~ UIPUG SAWUST Gram~~ 2~t 0K 1 N.s wm:~SAW1*PEEO tSrallbo t7eo___ _ _ _ _ _ __ _ _ _ _ _ ____ S -139 - Annex 14 Page 2 of 13 PwWECT: TAIDI SAWS RIME1O PLANT 3,500 T7MN/YEAR BASIC PARAERS Project Life = 20 Disoumt Rate = 10.0% Official lRxch. Rate Cedi/USD) 150 librium xh. RatCedi/ =) 170 Value of UrAkiled bor: 1.0 Shadow Value of Agricultral Lt = 0.0 International Freit 12.0% Insurae = 1.2%; 4Q.X Exisew Tax =u Port Charges = 4.0% BankCare 5. MM Cp*taCoast C t = 10. operLting Cost Contingenc = 10.0% PMUCr1cN VARIABLE Sawdust I 6 725 Briquete Out0ut 650 Electrical Cou rtic k5) 100 One-+my Briquette Haulage (km) = 240 ANNUAtLIZED ANALYSIS F&UL¶S NET ANNUAL FIANCIAL BENET -21.77 FIANCIAL BEMICEVEl E 47.89 Ngr ANNUAL EOONIC BEFIT -1.31 BOONC IR N PRICE - 44.64 DCF ANALYSIS R1SLTS FINANCL NET PRAM1 VALUE = -204.80 FIRR = Undef. 13XCHIC NET PEITF VALUE = -11.20 KIRR - 9% FINANCIAL CAPITAL OOST SWI1UiINO VALU = -50X ONCMIC CAPITAL COST SWIIUIINO VALUE -3% IBRIQ.$U LIFE SWIIUIING VALUE FINAN@CIAL ANALYSIS = >20 years BRI1RL@IFE swIrlUlM VALtS EmNCtdI ANALYSIS = 13 years D ISOJNTED PAYBACIK TIM FINANCIAL ANALYSIS = >20 yeas DISWOJNTED PAYBAK TINM EONOMIC ANALYSIS = 20 years -140- Annex 14 Page 3 of 13 PHWWT* TAIAI SAWIJBT ABRIRJrING E 3,500 TWO/YHAR BASIC PARAMQ'1 Project Life - 20 Disoumt Rate = 10.0% OffXcial Exch, Rate Cedi/USD = 1 Bquilirium Ricoh. Rate Cdi ) : 170 Shadow Value of Umski 1.00 Shadow Value of Agricultural Laud: 0.00 Internatinal Freight : 12.0% Insuranoo : 1.2% Imot Duty = 0.0% Port Charges = 4.u Banik Charges = 5 !X Capital Cost Contingenwcy = 10. Operating Cost Contingenc y 10.0% a xRO ION VARIABES Sawdust Input 6 6725 Briquette output 3500.) 50 ELeotrical Cosupi-r?"K7/tj) i lv (ret-W Briquette Haulage (kim) 0 ANNUALIZ ANALYSIS RDUTS NET ANNUAL FINANCIAL BET = -21.44 FINANCIAL PE PRICE = 32.53 NIT ANNUAL EOONHIC BNIT 8.67 3XlCHIC BREAKI E PRICE = 28.32 DCF ANALYSIS E1SATS FANCIAL NET Plaffi VAUJE -202.02 FIR U=def . EBONOMIC NET PREEN VALE = 73.71 IER - 14% FINANCIAL CAPITAL COST SWftCHIN0I VALUE -47% BOO=C CAPITAL COST SWIrtff VALUE = +19% ERItIET131 LIFE SWIIVHINJ VALUE FINANIA^L ANALYSIS = >20 years BwufR1: LIn SWrU VALE BEONCIC ANALYSIS =6 years DISlNTI) PAYBACK TIME FINANCIAL, ANALYSIS >20 years DlS90lNT PAYBACK TIME BCD0tIC ANALYSIS = 13 years "ntt o'w io t''m win nOU 9 mm 1 U no u's 'lt W't a's "on WUI EI1 JIW ¶ Oslo tells orlit 2953 DIM WaIl I'll juIt-ul 86m 10' Ut'l9 01'9 W615 61'1 nln It NfOw 0' tWl OO'Ot t'O 6RIO a"P 06'1 so" 101 "IN not ' O Olt a 161 a's lI' a's Wot m'e WI 01 all Ul IN tll £Ulu (A2)¶11UNUU SU Io'1 011' RIO #00 WI W W1 01 WBoqom tl'I 00tf tSI 01 D'I 0011 WtI 6 01ii lI110 oca "m no= mm'; al'l Lo's not "s ' 0' ll t= RIO 00'1 01' 00'1 1 9 WI IU t41? 9 SUI B'l 0019t1 Nt'l oIn WI WiI W 0 1"o1111h Ulu' I 4 11'1 Ulu S 11101-13 HI 1 til' ntVI WI '8 00' I 01 1 al "n nt Ulu all8 "on "onM" Iqflwnp 0S'0 W9 tW'0 11 Wil WI US I lP 00a1 VWAI To (13000.) (mow.) (a india we.) ('1W) is ow) is ow.) (mow.) i-i WI "I We "on J 0 war son10 "laW4IUUI4 moo not tilo ctol Not not all aIV ON] sp mu 'mw gm~~~~ ~ ~mi E1 Jo v afsa ft -u - 142 - Annex 14 Page 5 of 13 aMww mm MML aLS o"io ow am US? (UT/I? US? (ND) (WDIII (131)) (Sits) ('0 1) (MD) ('0 MD) Praduo tw 4a (I_ mt 11 ?3.33 13.33 1.0 0.8 64.11 0.18 £inmtaatjlaue Cled (a'mutbu) 3.33 53.33 100 0.4 .06 0.56 hma (amdtb ) 53.33 5.3 36.00 1.2 ? .69 Uk led W kr/w (em tk) 4.6? 4.6? 36.00 1.6 41.18 1.4 "ukid bkh (m-.ths) 30.00 30.00 U8.00 6.8 6.4 6.04 MubAl 11.96 10.55 nor bid llaotb tl (IS) 0.019 0.09 350000 1.81 0.05 18.20 -b-bto -1.81 18.20 tui le 1 ON a 0.091 0.229 0.32 I1800 5.49 0.315 5.30 f,t4d LeR Pus (hp. WI=) 0.81 0.8 6 .00 5.0 06 4.18 Pts 800.00 300.00 1.00 8.80 8800.00 8.i0 8ULo 2.6" 26.6? 1.00 0.03 2.53 002 Sbtal 19.52 18.31 tus 600.00 2.00 850.00 1.00 0.85 11.41 0.18 muses 306.6 306.6? 1.00 0.31 20.59 0.2 bTotal 1.16 1.0 t bad, 8Ilu 346U. 110.0 1446.6 1.00 1.45 145.88 1.41 WubTotl 1.45 1.41 WNTI US?l 401hLw 61.10 49.51 gum US Mau= 6.19 4.95 muL MIN? 68.09 54.4 1 1= SWA OlW (t4m) 0.064 84000 53.16 0.068 51.1 ~~~~~13W ~~~~~~~~~~~~~~mmA MEAL _It~~~~~~~~IU tflllUI fBIIIIL iui Em IB=MAr e IOO E01C in=O Liea 1ug Total QUt?? I TDE Tt WI EI (ND) (D) (OD) (Iitt.) ('000 ND) (D) ('000 D) su"t 0it (ta) 41. 41. 3500.00 145.8 44.26 15.93 TOTAL _13W! 145.83 I.93 - 1.43 - Annex 14 Page 6 of 13 PR:JEr: ENUASI SANJXST BRIUBTDrING PLANT 7,000 TON/YEAR BASIC PARAERS Project Life = 20 Discount Rate = 10.0% Official Exch. Rate Cedi/UD = 150 Euuilibriuu Exch. Rate I Cedi/USD = 170 Shadow Value of Unskilled Labor= 1600 Shadow Value of Agricultural Land: 0.00 International Freight 12.0% In ura,x,e = 1.2% Import Duty 0.0% Sales Tax 0=.U Emxise Tx 0.0 Port Charges 4.0% Bak Charges = 5.0% Capital Cost Contingency = 10.0% Operating Cost Contingency = 10.0% POEL'IN VAIBLE 8wadmt Input = 13450 Brijt;e Output t 7000 Electf ical Ccgs-v n (I*nz/t) ~ 100 One-way Briquette Haulage (km) - 285 ANNUALIZD ANALYSIS W8TS NET ANNU1AL FINANCIAL BENI 9.10 FINANCIAL PRICE = 40.37 NET ANNUAL E13aIC BENEFIT = 11.65 CIIC EA RMICE = 42.60 DCF ANALYSIS RSULTS FINANCIAL NI&T Pf13N VALUE = 53.86 FIRE = 12% EOONIMIC NRT rP W VALUE - 99.10 EI 13% FINANCIAL CAPITAL COST SWITCHING VALUJE = +8% ECONCHIC CAPITAL OOST SWITOIINO VALUE = +15% .RWkALIFE SWIIING VALUE ANALYSIS 8 years BRIUETC LIF SW CU VALUE EONHIC ANALYSIS = 7 years DISOOUNTIED PAYBACK TIME FINANCIAL ANALYSIS = 16 years DL9SXJNTED PAYBACK TIM ECKONOMIC ANALYSIS = 13 years * - 144 - Annex 14 Page 7 of 13 PRO3JECT: KUMASI SAWDUST BRIQ)EBTTI PLANT 7,000 TMNE/YEAR BASIC PARAMBTh Project Life _ 20 Disct Rate = 10.0% Official Exch. Rate Cedi : 150 Bquilibrium Exoh. Rate Cedi - 170 -Shado Value of Unekile , 1.00 Shadow Value of Agricul ural I d 0.00 International Freight = 12.0% Inurnc 1.2% Import Duty 0.0% ftes x- u Rms Taxc= 0 Port Cbargtesa 4.O Bank Charges : 5.X0 Capital Cost Contingency = 10.0% Operating Cost Contingency = 10.0% ia Nrr~c~ VARIABLE Sut Iut - 13450 Bri4. te Output (rm 7000 Electrical CaOt nin/t) = 100 One-my Briquette Haulage (kmi) 0 0 ANNUAIMED ANALYSIS R1ULTS NET ANNUAL FINANCIAL BENEFIT _ -39.39 FINANCIAL PRICE - 22.13 NET ANNUAL ONIC BENEFIT - -8. 13 BOcNCIC IEVEN PRICE 2 23.22 DCF ANALYSIS RJULTS FINANCIAL NET VALUE : -358.94 FIR - Unef. OrtNOMIC NET PaEMNT VALUS = -69.30 EIRR 7% FINANCIAL CAPITAL OOST SWITCHIG VALUE -54% EXNOMIC CAPITAL OOST SWITCING VALUE = -11% Bm~zRIuI LIFE SWr1TM VALUE FINANCIAL ANALYSIS = > 20 years ERIQLTI LIF SWrIIE VALUE ElOCtOC ANALYSIS = 18 years DI)SXJNTD PAYBACK TIME FINANCIAL ANALYSIS = > 20 years DISCEJTEDPAYBACK TIME FINANCIAL ANALYSIS = > 20 years - 145 - Annex 14 Page 8 of 13 CUPTL MIT nEs PIaICIA ~WTFDCA IUIL DUC DC LS LOa Foreign Ttal TfIT 07 05 ? 5 (Yew) ('000 WIDI ('00 W) ('000 W) its) ('000 D)(1'000 W) ('so Wi ('o0 WN) Site Pk rtin 11220 di 20 8.6? 8.6? 1.00 8.6? 1.02 7.65 0.90 hildifls 1352 a2] 20 55.58 15.00 10.58 1.00 10.58 8.29 U.04 1.52 Shb-t 19.25 9.31 11.69 8.42 Iriquettin gqupent 10 118.00 118.00 1.00 118.00 19.20 118.00 19.0 IT e Dieel Tuk 5 22.00 22.00 2.00 44.00 11.61 4.0 11.61 Ileotiall 1u pamt 20 28.00 .00 1.00 28.0 3.29 28.00 3.29 front- Lahr 1275 4 kg o ityi 5 20.00 20.00 1.00 30.00 5.28 20.00 l. 8pa at Delivery 10 14.00 14.00 1.00 14.00 2.28 14.40 2.28 bTotal 224.00 41.65 224.00 41.65 UIMUTIOIIL mmT a m1 Fteight 10 26.88 26.88 1.00 26.8 4.3? 26.88 4.3? inrmee 10 2.69 2.69 1.0 2.69 0.44 2.9 0.44 b-Tal 29.5? 4.81 29.57 4.81 -m I T SW-TOT (CI) 253.51 253.5? PORT mm D Bin FE Port mret 10 10.14 10.14 1.00 10.14 1.65 8.93 1.45 Sa MU 10 12.68 12.68 1.00 12.68 2.06 11.l6 1.82 SbTotal 22.82 3.11 20.08 3.2? hbg eeri _ng mt 20 1.53 29.00 30.53 1.00 30.53 3.59 30.35 3.5? Isallation 20 3.00 16.00 19.00 1.00 19.00 2.3 18.65 2.19 Training 20 0.11 13.00 13.1? 1.00 13.17 1.65 13.16 1.54 SbTotal 62.71 1.3? 62.15 7.30 CAPIL 0 -tOAL 91.?? 326.5? 418.34 418.34 66.85 401.49 65.46 CAPI TL Of l=M 9.18 32.66 41.83 41.83 6.69 40.f 6.55 mAL CAPITAL 100.95 359.22 460.18 40.18 73.54 U8.4 .00 - 146 - Annex 14 Page 9 of 13 OWJT L C B Ia Freign Tota P1 t WSIWit UT (MD) (UD) (WI) (IVit$) ('000 W) (10 ('000 ' LWO Prodution bowr (rn-matba) 13.33 73.33 12.00 0.88 64.t 0.78 Aoatet/atle, Clerk (n-moths) 53.33 5.33 12.00 0.64 VA.06 0. Forems (ma-lonth,) 53.33 53.33 36.00 1.92 4U.0 1.69 Skilled orkor/T (i-moth) 46.6? M 36.00 1.68 41.18 1.48 Uilled woker m-monts) 30.00 30.00 324.00 9.12 26.4 8.58 botal 14.84 13.01 Grid Ileotriity (kSk) 0.034 0.034 100000 23.11 0.05 36.0 WSbtal 23.11 36.40 Truk Varle Oil (I) 0.098 0.229 0.32? 26900 8.80 0.315 8.49 ont-hi Jler hal (lp. Gallm) 0.87 0.8 12000.00 10.40 0.63? 8.36 Prts 11000.00 11000.00 1.00 11.00 11000.00 11.00 Srdowe 66.67 66.67 1.00 0.07 58.8a 0.06 WSbtal 30.26 2t.91 terias 740.00 300.00 1040.00 1.00 1.04 92.94 0.95 Service, 373.33 313.33 1.00 0.37 329.41 0.33 otal 1.41 1.28 OLis Vidig Be, hupplies 933.33 2800.00 3133.33 1.00 3.13 3U23.63 3.62 Sub-tal 3.13 3.62 oPMTim WU -tOTL 73.96 82.31 OPAI UT Scm 7.40 8.3 TOTAL OPUATIN MeT 81.35 90.64 sBumI Pom =Ts (t-) 0.064 1995000 127.68 0.068 135.66 BWIEmm ur mm 1MD8L BU/UT FIN IL s C UIIC Loel Foreign Ttal QUaTm BI EFT/W T B (WI)) (ID) (W)) (IUbits/fr.) ('0oo U) (WI) ('000 WI) 8&aX Iriq!lettes (tonell) 41.6? 41.67 1000.00 291.61 44.26 309.85 m LT 0 291.67 309.85 - 147 - Annex 14 Page 10 of 13 mw:r: DMASI SAWDUST BRItJETDIG PLANT 14,000 1/Y BASIC PARAMKU ProJeot Life = 20 Discoumt Rate:= 10.0% Official Exch. Rate Cedi/A I 150 EQyilibriunl lxi. Rate ~Cedi/UD)- 1 70 Shdo Value of Unsilled Laor:- 1Q I 00 Shadow Value of Agricsultsural Land:- oo International Frei5ht 12.0% Insurance : 1.2% Exise Tax= 0.0% Port Charges : 4.0% Bank Charges = capital cost Contineboy = lO.OX Operting Cost Cotinti = 10.0% :--CIN VARuIABI Sawdust lrpu 27000 Briquett Output 1400Q Electrical Consupti(r (0 t) - 100 One-way Briquette Haulage (kn) = 285 ANNUALIZED ANALYSIS RSULTS NET ANNUAL FINANCIAL BENEFIT = 62.74 FINANCIAL EEE EN PRICE = 37.19 NET ANNUAL EBCNCMIC BEEFIT = 58.79 EOOCNMIC E>VN PRICE 40.07 DCF ANALYSIS REULTS FINANCIAL NET PEIML VAE 498.24 FIRR 19% BOONCMIC NET PETW VALUE - 600.33 EflM 19% FINANCIAL CAPITAL COST SWIlTCHIO VALUE = +45% B1ONCMIC CAPITAL COS SWITCHING VALUE +48% EDRIW LIFE SWITCHING VALUE ANALYSIS = 4 years n~Iqjgri% I. SWITCHING VALUE C04IC ANALYSIS -4 years DISOCJNrED PAYBACK TIMN FINANCIAL ANALYSIS = <7 years DISCOXUNTED PAYBACK TIME ECONOMIC ANALYSIS = <7 years - 148 - Annex 14 Page 11 of 13 PROJCT: NMWSI SA9UST BRIQUETTING PLANT 14,000 Vt4NES/YEAR BASIC PARAMETItS Project Life = 20 Discomt Rate = 10.0X Official Exch Rate Oedi = 150 E3quilibrium Excoh. Rate Cedi) =170 S8hadow Value of Unkilled Labo: - = 1.00 Shadow Value of Agricultural Iansl = 0.00 International Freight = 12 Insuraes = 19 Imr1rt Duty = 0.0% saes x= ;, Excise Tax= Port Charges = 4. Bat CCharges = 5 Capital Cost Contingency = 10. 1% Operating Cost Contingency 10.0% ROD'MON VARIABLE Sawdust 27000 BriquleTte OuJtputontmMsln) = 14000 Electrical Consumpt_in k t) = 100 One-way Briquette Haulage (In) = 0 ANNUALIZED ANALYSIS RES1MS NET ANNUAL FINANCIAL BENEFIT -34.24 FINANCIAL BREAKEM PRICE = 18.96 NET ANNUAL EaONC BENEFIT - 19.23 ECX)NCMIC BEVAtZ PRICE = 20.69 DCF ANALYSIS RSULT8 FINANCIAL NET PR1ET VALUE -327.35 FIRE = 2% EOONOMIC NET PBSEf VALUE = 163.52 EIRR = 13% FINANCIAL CAPITAL COST SWI[CHING VALUE -28% ECONOMIC CAPITAL OOST SWITCHING VALUE +16% BRIgQE¶M LIFE SWITCHDG VALUE FINANCIAL ANALYSIS >20 yews BR:[q'1~IU LIFE SWI11ING VALUE E0QNCPffC ANALYSIS = 7 year DISCOUNTED PAYBRAK TI FINANCIAL ANALYSIS 20 years DISCOUNTED PAYBACK TINM ECONOMIC ANALYSIS = 13 years - 149 - Annex 14 Page 12 of 13 FINI MCIALO MTW?T FINANCIAL FIlNAIAL =WIMC =IWEIC LIP Lwosi foreig Total PISI? al9t 6 COST 1 (lTO) (1'000 ai) (1'000 UID) ('000 lMD) WUnite) ('000 U9D)('000 aD) 1'000 aD) ('000 MD) site Prep tIon 11900 21 20 13.33 13.33 1.00 13.33 1.57 11.71 1.38 Bduldia I656 IN 1 20 103.56 28.00 131.66 1.00 131.56 1545 119.38 14.02 ubtal 144.69 11.02 131.14 15.40 3riettial %ulpet 10 U4.00 224.00 1.00 2U2.00 3645 224.00 36.45 ? Tome Diesel ?* 5 22.00 22.00 3.00 66.00 11.41 66.00 11.41 Rlectrhal iupnt a0 55.00 55.00 1.00 55.00 6.46 55.00 6.45 ?Mt-bil loaer 1100 kg opolbtl 5 25.00 25.00 1.00 25.00 6.59 25.00 6.59 Sae at heliwr 10 11.06 1t.00 1.00 11.00 2.11 11.00 2.11 Subtl 381.00 69.69 381.00 69.69 height 10 4.44 4.44 1.00 46.44 .6 4.44 1.8 m e 10 4.64 4.64 1.00 4.64 0.16 4.64 0.16 9SuTotal 51.08 8.31 51.08 8.31 mm Erpm wuAL (CI?) 438.08 438.08 *zB MMl AND BA M11 Port u 10 11A.5 1.2 1.00 11.52 2.85 15.42 1.51 eak mu"e 10 21.90 21.90 1.00 21.90 3.56 19.2 3.14 SbTota 39.4 6.42 34.10 5.65 kIfteetiag/h k_mat 20 3.81 31.00 34.81 1.00 34.81 4.09 34.36 4.04 Illstgllatioa 20 6.13 30.00 36.13 1.00 36.13 4.24 35.41 4.18 Traiig 20 0.34 15.00 15.34 1.00 15.34 1.80 15.30 1.80 b-otal 86.29 10.14 85.08 9.99 aPmL sw mL 166.61 542.08 108.89 108.69 111.1 689.00 109.04 CAPIMTL CO ST 1 11.61 54.21 10.8? 70.81 11.16 8.90 10.90 T Cu ITL W UT 3I.2? 596.29 19.56 19.56 122.13 11.90 119.95 -150 - Annex 14 Page 13 of 13 AhL lad foreign Totl am GT CObT/UIT 0 (ED) (ED) lW(a) (thits) ('000 D) (UWI) ('000 ) Prodution uer (m-uth) 13.33 13.33 12.00 0.88 64.11 0.11 Acott (m-oths) 53.33 53.33 12.0 0.64 41.06 0.58 kales bw (*- th) 13.33 53.33 12.00 0.4 41.06 0.5 hr (rn-mouts) 53.33 53.33 48.00 2.56 41.0 2.26 SkillW VorWkr/Tdem (ma-oth) 46.67 46.61 12.00 3.36 41.18 2.86 Illed*er ka(mm-mths) 30.00 30.00 504.00 15.12 26.41 13.34 Su-Tot1a 23.20 20.U4 rid le*ciot (lb) 0.029 0.029 1400000 41.25 0.052 72.80 WOa 41.25 12.80 T* aiale on (k) 0.098 0.U2 0.321 53600 11.58 0.315 1l.97 Fot-bA Laer Foel (Ip. allous) 0.81 0.81 18000.00 15.60 0.68 12.55 Parts 2200.0 22000.0 1.00 22.00 22100.00 2L00 irces 133.33 133.33 1.00 0.13 111.65 0.12 Sbtal 15.33 51.64 Saterais 1380.00 600.00 1880.00 1.0 .8 1811.85 1.02 S ie 63.33 693.33 1.00 0.68 611.71 0.61 b-otl 1.61 2.4 haidig bd, upplies 1800.00 5300.00 1100.00 1.00 7.10 6888.2 6.88 Sbotal 1.10 6.88 mum UT SEiT 129.55 154.22 OATI cmT T 12.96 15.42 MAL mum OfT 142.51 169.65 No= mlowIS mmli t-ku) 0.064 3180000 255.38 0.068 21.32 FITLn IUFT/ET fIAIL 1EUC ICICC Ina Foreign To TIT 13117 IFTET IT (lED) (E1D) (WI)) (hAits/Yt.) ('000 UD) (ED) (1'00 MED) ut riette (tmo ) 41.61 41.61 1400.00 583.33 44.26 619.11 MOTAL DM118 583.33 619.71 EMERGY SECTOR KANACENT ASSISTANCE PROGRAM Activities Completed Country Project Date Number Energy Efficiency and Strategy Africa Regional Participants' Reports - Regional Power Seminar on Reducing Electric System Losses in Africa 8/88 087/88 Bangladesh Power System Efficiency Study 2/85 031/85 Botswana Pump Electrification Prefeasibility Study 1/86 047/86 Review of Electricity Service Connection Policy 7/87 071/87 Tuli Block Farms Electrification Prefeasibility Study 7/87 072/87 Burkina Technical Assistance Program 3/86 052/86 Burundi Presentation of Energy Projects for the Fourth Five-Year Plan (1983-1987) 5/85 036/85 Review of Petroleum Import and Distribution Arrangements 1/84 012/84 Costa Rica Recommended Technical Assistance Projects 11/84 027/84 Ethiopia Power System Efficiency Study 10/85 045/85 The Gambia Petroleum Supply Management Assistance 4/85 035/85 Chana Energy Rationalization in the Industrial ector of Ghana 6/88 084/88 Guinea- Recommended Technical Assistance Bissau Projects in the Electric Power Sector 4/85 033/85 Indonesia Energy Efficiency Improvement in the Brick, Tile and Lime Industries on Java 4/87 067/87 Power Generation Efficiency Study 2/86 050/86 Jamaica Petroleum Procurement, Refining, and Distribution 11/86 061/86 Kenya Power System Efficiency Report 3/84 014/84 Liberia Power System Efficiency Study 12/87 081/87 Recommended Technical Assistance Projects 6/85 038/85 Madagascar Power System Efficiency Study 12/87 075/87 Malaysia Sabah Power System Efficiency Study 3/87 068/87 Mauritius Power System Efficiency Study 5/87 070/87 Panama Power System Loss Reduction Study 6/83 004/83 Papua New Energy Sector Institutional Review: Proposals Guinea for Strengthening the Department of Minerals and Energy 10/84 023/84 Power Tariff Study 10/84 024/84 Senegal Assistance Given for Preparation of Documents for Energy Sector Donors' Meeting 4/86 056/86 Seychelles Electric Power System Efficiency Study 8/84 021/84 Sri Lanka Power System Loss Reduction Study 7/83 007/83 Syria Electric Power Efficiency Study 9/88 089/88 Sudan Power System Efficiency Study 6/84 018/84 Management Assistance to the Ministry of Energy and Mining 5/83 003/83 ENERGY SECTOB MIdUUT ASSISTANCE PROCRAM Activities Completed Country Project Date Number Energy Efficiency and Strategy (Continued) Togo Power System Efficiency Study 12/87 078/87 Wood Recovery in the Nangbeto Lake 4/86 055/86 Uganda Energy Efficiency in Tobacco Curing Industry 2/86 049/86 Institutional Strengthening in the Energy Sector 1/85 029/85 Zambia Energy Sector Institutional Review 11/86 060/86 Zimbabwe Power Sector Management Assistance Projects Background, Objectives, and Work Plan 4/85 034/85 Power System Loss Reduction Study 6/83 005/83 Household, Rural, and Renewable Energy Burundi Peat Utilization Project 11/85 046/85 Improved Charcoal Cookstove Strategy 9/85 042/85 Cate Improved Biomass Utilization-Pilot Projects d'Ivoire Using Agro-Industrial Residues 4/87 069/87 Ethiopia Agricultural Residue Briquettingt Pilot Project 12/86 062/86 Bagasse Study 12/86 063/86 The Gambia Solar Water Heating Retrofit Project 2/85 030/85 Solar Photovoltaic Applications 3/85 032/85 Global Proceedings of the ESMAP Eastern & Southern Africa Household Energy Planning Seminar 6/88 085/88 Jamaica FIDCO Sawmill Residues Utilization Study 9/88 088/88 Charcoal Production Project 9/88 090/88 Kenya Solar Water Heating Study 2/87 066/87 Urban Voodfuel Development 10/87 076/87 Malawi Technical Assistance to Improve the Efficiency of Puelwood Use in the Tobacco Industry 11/83 009/83 Mauritius Bagasse Power Potential 10/87 077/87 Niger Household Energy Conservation and Substitution 12/87 082/87 Improved Stoves Project 12/87 080/87 Peru Proposal for a Stove Dissemination Program in the Sierra 2/87 064/87 Rwanda Improved Charcoal Cookstove Strategy 8/86 059/86 Improved Charcoal Production Techniques 2/87 065/87 Senegal Industrial Energy Conservation Project 6/85 037/85 Sri Lanka Industrial Energy Conservation: Feasibility Studies for Selected Industries 3/86 054/86 Sudan Wood Energy/Forestry Project 4/88 073/88 Tanzania Woodfuel/Forestry Project 8/88 086/88 Thailand Accelerated Dissemination of Improved Stoves and Charcoal Kilns 9/87 079/87 Rural Energy Issues and Options 9/85 044/85 Northeast Region Village Forestry and Woodfuel Pre-Investment Study 2/88 083/88 Uganda Fuelwood/Forestry Feasibility Study 3/86 053/86