2009 PC-1 FORM GOVERNMENT OF PAKISTAN PROVINCIAL CHIEF PUNJAB PROFORMA FOR DEVELOPMENT PROJECT (SOCIAL SECTOR) Health,

Nutrition & Social Welfare

2009 GOVERNMENT OF PAKISTAN PROVINCIAL CHIEF PUNJAB PC-1 FORM (SOCIAL SECTOR)
1 2 3 for: i . i i. i ii. i v. 4 5 Operation and maintenance Concerned federal ministry Plan Provision Project objectives and its Execution Sponsoring Name of the Project Location Authority responsible

relationship with Sect-oral objectives 6 7 8 Description, justification and technical parameters Capital cost estimates Annual operating and maintenance cost after completion of the Project Demand and supply analysis Financial Plan and mode of financing Project benefits and analysis i . i i. i ii. i v. v . 1 2 1 3 Management structure and manpower requirements including Specialized skills during execution and operational phases Additional projects/decisions required to maximize socio-economic benefits from the proposed project 2 Social benefits with indicators Employment generation (direct and indirect) Environmental impact Impact of delays on project cost and viability Implementation schedule Financial

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Certified that the project proposal has been prepared on the basis of instructions provided by the Planning Commission for the preparation of PC-I for Social Sector projects.

Prepared by _________________________ Name, Designation & Phone#

Checked by _________________________ Name, Designation & Phone#

Approved by _________________________ Name, Designation & Phone#

2009

GOVERNMENT OF PAKISTAN PROVINCIAL CHIEF PUNJAB

1. Name of the Project
HEALTH & FITNESS CLUB

2. Location
Punjab

3. Authorities responsible for SPONSORING: EXECUTION:

Health club should be centrally located within a developed residential society in any of the big cosmopolitan cities like Karachi Lahore Islamabad/Rawalpindi, Faisalabad etc. To provide easy access to inhabitants. In Lahore it should be in the following developing areas: Nespak Valencia Johar Town Wapda Town

PROVINCIAL CHIEF PUNJAB SMEDA Punjab (Small and Medium Enterprise Development Authority) SMEDA Punjab (Small and Medium Enterprise Development Authority)

Operation and maintenance:

4. (a)

Plan provision If the project is included in the medium term/five year plan, specify actual allocation. If not included in the current plan, what warrants its inclusion and how is it now proposed to be accommodated. If the project is proposed to be financed out of block provision, indicate:

Tot al block provision

Am ount already committed

Amou nt proposed for this project

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B alanc e avail

able (b) Provision in the current year PSDP/ADP

5. Project objectives
Pakistan is one of those countries where awareness about health and importance of regular exercise is minimal. Statistics show that inactivity combined with poor diet is second only to tobacco use in causing preventable deaths in the world. The answer to protect from the fatal diseases is not to have treatment, rather to adopt preventive measures through exercise and movement. The evidence in this case is indisputable; Lifelong participation in physical activity has a significant, positive impact on the health and wellbeing of individuals. The sedentary lifestyle is a major underlying cause of death, disease and disability. About 2 million deaths every year are attributable to physical inactivity. A WHO study on risk factors suggested that sedentary life style was one of the 10 leading causes of death and disability in the world. The inactivity also increases the risk of colon and breast cancer, high blood pressure, lipid disorder s, osteoporosis, depression and anxiety. Recent studies have shown that children around the world are also becoming increasingly sedentary especially in poor urban areas. Time and resources devoted to physical education are being cut and computer games and televisions are replacing physically active pastime ignoring the fact that the inadequate physical activity in children could have lifelong health consequence. Regular physical activity or exercise with good eating habits, avoiding smoking, monitoring a reasonable body weight and avoiding stress could improve one's health and help prevent from many diseases. Most of the newspapers have no regular columns on health, besides very few programs on physical activity are carried out by the radio and television. Moreover the health sector is also not involved in the promotion of physical exercise. So there is great need to promote activities regarding exercise and fitness. Good health habits are very important at any age and it is never too late to change habits in ways that will improve health. One of the key factors for increasing health is exercise. A regular program of exercise can: Aid in weight management Lower risk of heart disease and certain types of cancer Increase life span and quality of life Helps control hypertension and diabetes Increase and maintain flexibility Reduces muscles tension Promotes increased cir culation Aids in relaxation, stress reduction Develops body awareness

6. Description and justification of project

Description of the project and the existing facilities in the area and justification of the establishment of the Project.
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The factor that leads to the development of this Health Club is the fact that currently limited people have access to health and fitness clubs under qualified instructors/trainers. Great scope for these types of clubs exist in Pakistan especially in urban areas where life is busy and people have less physical activity. A health and fitness club provides services to its members to improve their physical condition or appearance through exercise. The proposed health and fitness club will provide indoor facilities of Gymnasium, Exercise halls, and a Gym shop & Cafe to male and female members and will offer services of personal training by qualified instructors. Project should be centrally located within a residential town to provide easy access to the inhabitants. Legal status is recommended to be a sole proprietorship/partnership because it requires less legal requirements. Also the proposed club is a small-scale set-up and almost all such clubs in existing industry are sole proprietorships. Similarly a lower rate of tax is applicable to sole proprietorship than that of companies. No approval from any provincial government or health department is required in Pakistan for operating a health and fitness club. In developed countries like USA there are specific laws called States Health Club Laws that governs the health clubs is USA. SHAPES club is the only club in Pakistan which is ISO 9001/2000 certified. Health Clubs like any other business activity must be registered with income tax department and sales tax department. Prevailing rate of income tax for sole proprietorship is in various slabs max 35%. Technical parameters and Technology aspect of the Project. The proposed health club will have an area of 4500sq ft hall having indoor facilities. The club will operate in different sessions of the day like morning, afternoon, evening and night. The club will have a capacity to cater 450 members, spread over in the following different sessions of the day Time Slots Duration Gym 6:00 am to 10:30 am (Males only) 4.5 hours 11:00 am to 5:00 pm (Females only) 6 hours 5:30 pm to 10:00 pm (Males only) 5 hours Exercise (Females Only) 11:00 am 12:00 pm 1 hour (Pilates session) 3:30 pm 4:30 pm 1 hour (Yoga session) The fee package will range from Rs.1, 500 for exercise session and Rs.3, 000 for Gymnasium. The fee is higher due to the reason that proposed club is fully airconditioned having full range of imported equipment. In addition to these monthly fees each member will pay Rs.2, 000 a non-refundable registration fee and Rs.5, 000 as refundable security.

Details of civil works, equipment, machinery and other physical facilities required for the project.

The total human resource requirement of the health and fitness club is 17. Skilled Instructors are easily available at competitive salaries. Number of workers required for each department is as follows: Manager 1 Instructors (Male/Female) 4 Gym Helpers 4 6

Admin/Accountant 1 General physician 1 Cleaners 4 Security guard 2 TOTAL 17

Equipment Air conditioners 10 Computer with UPS 2 Furniture & fixtures Printer 1 Sound system 2 Water dispenser 1 Generator 1 Refrigerator 2 Machinery The success of this project is depended on the quality of machines so selection of Machinery is the most important aspect of this project. The exercise equipment is available in various varieties. Both local and imported equipment is available in the market. Existing clubs in the market are using a blend of imported (which is locally available) and local equipment.

7. Capital cost estimates

Capital cost Working capital Total

4,678,250 2,266,792 6,945,042

Component-wise, year-wise physical activities I tems A . B . C . nit U Y ear-I Y ear-II Y ear-III

Phasing of Capital cost be worked out on the basis of each item of work as stated above and provide information as per following.
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Year-wise/component-wise financial phasing (Million Rs)

Ye YearII
EC

Yea r-III E C ota l

oca l

Tota l EC ota l
oca l

te m

ar-I ota l oc al ota l

oca l

EC

. . .

ot al

In case of revised Projects, Provide Projects approval history, year wise PSDP allocations, releases and expenditure. Item-wise, year-wise actual expenditure and Physical progress. Justification for revision of PC-I and variation in scope of the project if applicable. Item-wise comparison of revised cost with the approved cost and give reasons for variation. Indicate exchange rate used to work out FEC in the original and revised PC-I. 8. Annual operating cost Item-wise annual operating cost for 5 years and sources of financing .

9. Demand supply analysis (excluding science & technology, research, governance & culture, sports & tourism sectors
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 Existing capacity of services and its supply

Commercial Health club industry is emerging as one of the good business ventures in Pakistan. A lot of people are venturing into this trade, as it is flourishing business. People are getting conscious and aware about their health and feel the importance of exercise in the busy life. No approval from any provincial government or health department is required in Pakistan for operating a health and fitness club. In developed countries like USA there are specific laws called States Health Club Laws that governs the health clubs is USA. SHAPES club is the only club in Pakistan which is ISO 9001/2000 certified. The market for health clubs in Pakistan has been developing steadily over the last decade and a mushroom growth of Gym and clubs is being observed in all the cities. But still a good potential exists for quality health clubs. Easy availibility of resources/equipment Easy availibility of instructors Growing population Expanding cities Growing health conciousness and awareness The target customers for health clubs are the population of big cities having age group of 18 to 50 years. Population of urban areas of Pakistan is 33% of total population out of which 50% falls in the targeted customers age group.

Capacity of projects being implemented both in the public & private sector

Designed capacity & output of the proposed project

10. Financial plan Sources of financing (a) Equity (Rs) 50% 3,472,521

Sponsors own resources Federal government Provincial government DFI's/banks General public Foreign equity (indicate partner agency) NGOs/beneficiaries Others
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(b)

Debt (Rs) 50%

3,472,521

Indicate the local & foreign debt, interest rate, grace period and repayment period for each loan separately. The loan repayment schedule be also annexed. c) d) Grants along with sources Weighted cost of capital

11.

(a)

Project benefits and analysis Financial: Income to the project alongwith assumptions. Social: Quantify benefit to the target group Environmental: Environmental impact assessment negative/ positive.

(b)

Project analysis 12. Quantifiable output of the project Unit cost analysis Employment generation (direct and indirect) Impact of delays on project cost and viability Implementation of the project

Indicate starting and completion date of the project Item-wise/year-wise implementation schedule in line chart co-related with the phasing of physical activities. 13. Management structure and manpower requirements

Administrative arrangements for implementation of the project. Manpower requirements during execution and operation of the project be provided by skills/profession.
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 Job description, qualification, experience, age and salary of each job be provided. 14. Additional projects/decisions required

Indicate additional projects/decisions required to optimize the investment being undertaken on the project. 15. Certificate

The name, designation and phone # of the officer responsible for , preparing and checking be provided. It may also be confirmed that PC-I has been prepared as per instructions for the preparation of PC-I for social sector projects. The PC-I alongwith certificate must be signed by the Principal Accounting Officer to ensure its ownership.

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