Fulbright Economics Teaching Program Project Appraisal Case study

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
1 BINH AN WATER TREATMENT PLANT
2
3 All calculations in real prices 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
4 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
5 TABLE OF PARAMETERS
6 Inflation USD 3%
7 Project's lifetime (year) 20
8 Construction time (month) 30
9 Water price in year 1999 (USD/m3) 0.2
10 The increasing rate of water price
11 Plant capacity ('000 m3/day) 100
12 Ratio of water sales/capacity in year 1 95%
13 Ratio of water sales/capacity in other years 100%
14 Ratio of water production/capacity 110%
15 Production cost in year 1999 (USD/m3)
16 Chemical 0.0043
17 Energy 0.0374
18 Staff 0.0013
19 Maintanance & others 0.0011
20 Total 0.0441
21 The increasing rate of direct operating cost
22 The ratio of management and maintenance fee/operating cost 5.0%
23 Tax
24 VAT 1%
25 Net Income Tax 10.0%
26 The first four years 0.0%
27 The next four years 5.0%
28 Investment cost
29 Construction 4,140 9,660
30 Machinery 1,371 9,660 2,372 330 - - 125 - - - 815 - - 765 125 - - - 2,450 - 125 - -
31 Other assets 60 40 100
32 Land 400 100
33 Project-related costs 800 900 990 500
34 In which, feasibility study 400
35 Construction-related costs 300 1,395 3,300 1,162
36 Depreciation (year)
37 Year to start depreciation 1999
38 Construction 20
39 Machinery 20
40 Machinery & equipment replaced 12
41 Other assets (means of transport) 5
42 The costs resulting from project, the construction, the land use 20
43 Commercial loan
44 Loan amount ('000 USD) 25,000
45 Annual norminal interest rate 8.50%
46 Semi-annual interest rate 4.25%
47 3-month interest rate 2.13%
48 Annual real interest rate 5.34%
49 Loan period in year 7
50 Time for disbursement (year) 1
51 Grace period 0.5
52 Number of semi-annual principal repayment 11
53 Disbursement 01-Jun-98 01-Sep-98 01-Dec-98 01-Mar-99
54 7,500 7,500 7,500 2,500
55 Capital structure
56 Legal capital 11,100 5,000 5,800 300
57 Debt 25,000
58
59 CASH FLOW OF INVESTMENT COSTS 1,560 7,946 23,610 4,034 330 - - 125 - - - 815 100 - 765 125 - - - 2,450 - 125 - -
60
61 DEPRECIATION SCHEDULE
62 Depreciation of construction 690 690 690 690 690 690 690 690 690 690 690 690 690 690 690 690 690 690 690 690
63 Depreciation of initial machinery & equipment 687 687 687 687 687 687 687 687 687 687 687 687 687 687 687 687 687 687 687 687
64 Depreciation of machinery & equipment replaced in 2003 10 10 10 10 10 10 10 10 10 10 10 10 10
65 Depreciation of machinery & equipment replaced in 2007 68 68 68 68 68 68 68 68 68 68 68 68
66 Depreciation of machinery & equipment replaced in 2010 64 64 64 64 64 64 64 64 64
67 Depreciation of machinery & equipment replaced in 2011 10 10 10 10 10 10 10 10
68 Depreciation of machinery & equipment replaced in 2015 204 204 204 204
69 Depreciation of machinery & equipment replaced in 2017 10 10
70 Depreciation of other assets 20 20 20 20 20 20 20 20 20 20
71 Depreciation of the costs resulting from project, the construction, the land use 492 492 492 492 492 492 492 492 492 492 492 492 492 492 492 492 492 492 492 492
72 Consolidated depreciation schedule
73 Beginning net fixed assets - 1,560 9,506 33,116 37,150 35,591 33,702 31,813 30,049 28,150 26,270 24,391 23,326 21,479 19,512 18,309 16,403 14,362 12,320 10,299 10,727 8,502 6,411 4,186
74 Annual depreciation - - 1,889 1,889 1,889 1,889 1,899 1,879 1,879 1,879 1,947 1,967 1,967 2,031 2,042 2,042 2,022 2,022 2,226 2,215 2,226 2,226
75 Accumulated depreciation - - - 1,889 3,778 5,667 7,556 9,455 11,335 13,214 15,094 17,041 19,008 20,976 23,007 25,048 27,090 29,111 31,133 33,358 35,574 37,799 40,025
76 New investment 1,560 7,946 23,610 4,034 330 - - 125 - - - 815 100 - 765 125 - - - 2,450 - 125 - -
77 Ending net fixed assets 1,560 9,506 33,116 37,150 35,591 33,702 31,813 30,049 28,150 26,270 24,391 23,326 21,479 19,512 18,309 16,403 14,362 12,320 10,299 10,727 8,502 6,411 4,186 1,960
78
79 LOAN REPAYMENT SCHEDULE (semi-annually) 1-Jun-98 1-Sep-98 1-Dec-98 1-Mar-99 1-Jun-99 1-Dec-99 1-Jun-00 1-Dec-00 1-Jun-01 1-Dec-01 1-Jun-02 1-Dec-02 1-Jun-03 1-Dec-03 1-Jun-04 1-Dec-04 1-Jun-05
80 Beginning debt - 7,500 15,000 22,500 25,000 25,000 25,000 22,727 20,455 18,182 15,909 13,636 11,364 9,091 6,818 4,545 2,273
81 Disbursement 7,500 7,500 7,500 2,500
82 Semi-annual interest repayment - - 300 - 834 667 667 607 546 485 425 364 303 243 182 121 61
83 Principal repayment - - - - - 2,273 2,273 2,273 2,273 2,273 2,273 2,273 2,273 2,273 2,273 2,273
84 Ending debt 7,500 15,000 22,500 25,000 25,000 25,000 22,727 20,455 18,182 15,909 13,636 11,364 9,091 6,818 4,545 2,273 -
85
86 LOAN REPAYMENT SCHEDULE (annually) 1-Dec-98 1-Dec-99 1-Dec-00 1-Dec-01 1-Dec-02 1-Dec-03 1-Dec-04 1-Dec-05
87 Beginning debt - 22,500 25,000 20,455 15,909 11,364 6,818 2,273
88 Disbursement 22,500 2,500 - - - - - -
89 Interest repayment (consolidated from semi-annual interest repayment) 300 1,502 1,274 1,032 789 546 303 61 -
90 Principal repayment - - 4,545 4,545 4,545 4,545 4,545 2,273
91 Ending debt 22,500 25,000 20,455 15,909 11,364 6,818 2,273 - -
92
93 TURNOVER 12/31/1999 12/31/2000 12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 3/1/2019
94 Capacity 30,600 36,600 36,500 36,500 36,500 36,600 36,500 36,500 36,500 36,600 36,500 36,500 36,500 36,600 36,500 36,500 36,500 36,600 36,500 36,500 6,000
95 Ratio of water sales/capacity 95% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
96 Number of operating days in a year 306 366 365 365 365 366 365 365 365 366 365 365 365 366 365 365 365 366 365 365 60
97 Water sale ('000 m3/year) 29,070 36,600 36,500 36,500 36,500 36,600 36,500 36,500 36,500 36,600 36,500 36,500 36,500 36,600 36,500 36,500 36,500 36,600 36,500 36,500 6,000
98 Water price 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200 0.200
99 Turnover ('000 USD) 5,814 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 1,200
100
101 OPERATING COST
102 Water production 31,977 40,260 40,150 40,150 40,150 40,260 40,150 40,150 40,150 40,260 40,150 40,150 40,150 40,260 40,150 40,150 40,150 40,260 40,150 40,150 6,600
103 Chemical 138 173 173 173 173 173 173 173 173 173 173 173 173 173 173 173 173 173 173 173 28
104 Energy 1,196 1,506 1,502 1,502 1,502 1,506 1,502 1,502 1,502 1,506 1,502 1,502 1,502 1,506 1,502 1,502 1,502 1,506 1,502 1,502 247
105 Staff 42 52 52 52 52 52 52 52 52 52 52 52 52 52 52 52 52 52 52 52 9
106 Maintenance & others 35 44 44 44 44 44 44 44 44 44 44 44 44 44 44 44 44 44 44 44 7
107 Operating cost 1410 1775 1771 1771 1771 1775 1771 1771 1771 1775 1771 1771 1771 1775 1771 1771 1771 1775 1771 1771 291
108 Management & mainternance fee 71 89 89 89 89 89 89 89 89 89 89 89 89 89 89 89 89 89 89 89 15
109 Total cost 1,481 1,864 1,859 1,859 1,859 1,864 1,859 1,859 1,859 1,864 1,859 1,859 1,859 1,864 1,859 1,859 1,859 1,864 1,859 1,859 306
110
111 INCOME STATEMENT
112 Turnover 5,814 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 1,200
113 VAT 58.14 73.20 73.00 73.00 73.00 73.20 73.00 73.00 73.00 73.20 73.00 73.00 73.00 73.20 73.00 73.00 73.00 73.20 73.00 73.00 12.00
114 Net turnover 5,756 7,247 7,227 7,227 7,227 7,247 7,227 7,227 7,227 7,247 7,227 7,227 7,227 7,247 7,227 7,227 7,227 7,247 7,227 7,227 1,188
115 Operating cost and management & mainternance fee 1,481 1,864 1,859 1,859 1,859 1,864 1,859 1,859 1,859 1,864 1,859 1,859 1,859 1,864 1,859 1,859 1,859 1,864 1,859 1,859 306

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 Fulbright Economics Teaching Program Project Appraisal Case study

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
116 EBITDA 4,275 5,383 5,368 5,368 5,368 5,383 5,368 5,368 5,368 5,383 5,368 5,368 5,368 5,383 5,368 5,368 5,368 5,383 5,368 5,368 882
117 Depreciation - 1,889 1,889 1,889 1,889 1,899 1,879 1,879 1,879 1,947 1,967 1,967 2,031 2,042 2,042 2,022 2,022 2,226 2,215 2,226 2,226
118 EBIT 4,275 3,494 3,479 3,479 3,479 3,483 3,488 3,488 3,488 3,435 3,401 3,401 3,337 3,341 3,326 3,346 3,346 3,157 3,153 3,142 (1,343)
119 Interest 1,502 1,274 1,032 789 546 303 61 - - - - - - - - - - - - - -
120 EBT 2,773 2,219 2,447 2,690 2,933 3,180 3,428 3,488 3,488 3,435 3,401 3,401 3,337 3,341 3,326 3,346 3,346 3,157 3,153 3,142 (1,343)
121 Tax - - - - 147 159 171 174 174 344 340 340 334 334 333 335 335 316 315 314 (134)
122 Net income 2,773 2,219 2,447 2,690 2,786 3,021 3,256 3,314 3,314 3,092 3,060 3,060 3,003 3,007 2,994 3,012 3,012 2,841 2,837 2,828 (1,209)
123
124 CASH FLOW STATEMENT
125 Cash inflow - - - 5,814 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 1,200
126 Turnover 5,814 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 7,300 7,320 7,300 7,300 1,200
127 CAsh outflow 1,560 7,946 23,610 5,573 2,267 1,932 1,932 2,204 2,096 2,104 2,107 2,922 2,381 2,272 3,037 2,391 2,272 2,265 2,267 4,717 2,253 2,372 2,246 183
128 Operating cost and management & mainternance fee - - - 1,481 1,864 1,859 1,859 1,859 1,864 1,859 1,859 1,859 1,864 1,859 1,859 1,859 1,864 1,859 1,859 1,859 1,864 1,859 1,859 306
129 VAT Tax - - - 58.14 73.20 73.00 73.00 73.00 73.20 73.00 73.00 73.00 73.20 73.00 73.00 73.00 73.20 73.00 73.00 73.00 73.20 73.00 73.00 12.00
130 Net IncomeTax - - - - - - - 147 159 171 174 174 344 340 340 334 334 333 335 335 316 315 314 (134)
131 Investment cost 1,560 7,946 23,610 4,034 330 - - 125 - - - 815 100 - 765 125 - - - 2,450 - 125 - -
132
133 Net cash flow of the project -1,560 -7,946 -23,610 241 5,053 5,368 5,368 5,096 5,224 5,196 5,193 4,378 4,939 5,028 4,263 4,909 5,048 5,035 5,033 2,583 5,067 4,928 5,054 1,017
134
135 Net cash flow of creditors (debtholders) 0 0 22,200 998 -5,820 -5,577 -5,334 -5,092 -4,849 -2,333 0 0 0 0 0 0 0 0 0 0 0 0 0 0
136
137 Net cash flow of owners (equityholders) -1,560 -7,946 -45,810 -757 10,872 10,945 10,702 10,188 10,072 7,530 5,193 4,378 4,939 5,028 4,263 4,909 5,048 5,035 5,033 2,583 5,067 4,928 5,054 1,017

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