DEVELOPMENT BANK OF ETHIOPIA
Internal Memo
To: Dessie District
Date: August 08, 2022
From: Technical Team Manager
SUBJECT: Correction for built up cost of Raya Valley Agro-Industry Project investment items
Branch: -Dessie
Based on project approval team comment dated August 03, 2022 for built up cost correction of drip
irrigation system (10ha), germination room cell panel and equipment’s (80m2), and nursery greenhouse
(9600m2), we have revised same and attached hereto.
With regards,
Wayiso K. (Agricultural Engineer)
Encl:
3 page report
1. Introduction
It’s to be recalled that the team was carried out technical evaluation and selection of drip irrigation system
(10ha), germination room cell panel, and equipment (10m x 8m) and nursery house (1ha) for undertaking an
81.71ha irrigable and rain-fed fruit and vegetable production farm planned to be established in Amhara Regional
State, North Wollo Zone, in the vicinity of Kobo Woreda, Addis Alem Kebele 043. Based on project approval team
comment dated August 03, 2022 at head office here is attached cost built up same, by excluding contingency
fee.
1.1 Drip Irrigation System (10ha)
The quotation submitted from Rivulis Irrigation Ltd. with Ref. Inv.No:201223, date: April 12th, 2022 is revised
and summarized in below table.
Table 1: Revised drip irrigation system cost summary for Raya valley project
S/N
A
Item description
Drip irrigation system 10ha
Qty
1
Unit FOB Price
FOB Price
CUR.
142,708.04
EUR
Total FOB Price
Sea freight (4%)
Insurance (1%)
Bank charge (3%)
Total FOB
Price, Euro
142,708.04
142,708.04
5,708.32
1,427.08
4,281.24
Installation cost:(pipe, fittings, drip, valves, filter, fertigation electro mechanical and trench work)
Local costs (port handling, loading & unloading, clearing and forwarding, local transport etc.) (3%)
Grand Total
Total Price,
ETB
7,742,467.73
7,742,467.73
309,698.71
77,424.68
232,274.03
491,050.00
4,281.24
158,405.92
232,274.03
9,085,189.18
Terms & condition of sale:
 Payment: 100% CAD, with a purchase order from an Ethiopian bank.
 Israel-Europe is the country of origin.
 Validity: 03/28/2022
 The number of containers, port of lading, and destination are not stated. We have assumed 3*40ft HC,
the Port of Ashdod as the port of lading, and Kombolcha as the destination port.
Remark:
 The quoted price for pipe, fittings, drip, valves, filter, fertigation, electro-mechanical and trench work
shall be submitted separately as cost for accessories, pipe, fittings, drip, valves, filter, fertigation, cost
for electro-mechanical installation, and BOQ for installation work.
Conclusion
Therefore, the offer from Rivulis Irrigation Ltd. can be used for purposes of budgeting (or planning project
costs). However, the above remark should be considered during the appraisal or purchase.
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1.2 Germination room cell panel and equipment’s (10m*8m*4m)
The quotation submitted from CELTIC COOLING bv with project No.:2026-2, date April 12, 2022 is evaluated
and is summarized in below table.
Table 2: Revised germination room cell panel cost summary for Raya valley project
Unit FOB Price
FOB Price
CUR.
A
EX Works delivery of the insulation construction
1
19,245.23
EUR
B
EX Works delivery of the refrigeration equipment
1
36,438.35
EUR
C
Procurement of the required local materials (liquids and gases)
1
19,245.23
ETB
Total FOB Price
Sea freight (4%)
Insurance (1%)
Bank charge (3%)
Erection and installation
Local costs (port handling, loading & unloading, clearing and forwarding, local transport etc.) (3%)
Grand Total
SN
Item description
Qty
Total FOB
Price, Euro
19,245.23
36,438.35
55,683.58
2,227.34
556.84
1,670.51
1,670.51
61,808.77
Total Price, ETB
1,044,128.78
1,976,922.60
27,169.99
3,021,051.38
120,842.06
30,210.51
90,631.54
187,510.26
90,631.54
3,568,047.28
Terms and conditions of sale:
 Payment: 100% CAD with an Ethiopian bank purchase order or 50 % Payment down at order 50 % Payment
before handover shipment documents when payment comes from foreign account
 Transportation: by sea. 1 HC container (40 ft)
 Time to delivery: 12 to 14 weeks after receipt of signed order confirmation.
 Validity Period: 10 days after the date of the offer
 Warranty: 1 year
Conclusion
Therefore, the offer from Celtic Cooling bv can be used for purposes of budgeting (or planning project costs).
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1.3 Nursery greenhouse
The quotation submitted from NOONTY GREENHOUSE Co., LTD with Inv.No.NT20220217Q, Date: April 12, 2022
is revised and summarized in below table.
Table 3: Revised nursery greenhouse cost summary for Raya valley project
A
B
EX Works delivery of the insulation construction
EX Works delivery of the refrigeration equipment
1
1
Unit FOB Price
FOB Price
CUR.
19,245.23 EUR
36,438.35 EUR
C
Procurement of the required local materials (liquids and gases)
1
19,245.23
S/N
Item description
Qty
Total FOB
Price, Euro
19,245.23
36,438.35
Total Price,
ETB
1,044,128.78
1,976,922.60
ETB
Total FOB Price
Sea freight (4%)
Insurance (1%)
Bank Charge (3%)
Erection and installation
Local costs (port handling, loading & unloading, clearing and forwarding, local transport etc.)(3%)
Grand Total
27,169.99
55,683.58
2,227.34
556.84
1,670.51
1,670.51
61,808.77
3,021,051.38
120,842.06
30,210.51
90,631.54
187,510.26
90,631.54
3,568,047.28
Terms and conditions of sale:




Payment: 50% TT in advance and the balance TT after the cargo is ready for shipment.
Transportation: by sea. estimated by 3*40-ft containers
Delivery Time: 45 days after down payment has been received.
Validity Period: April 15th, 2022
Conclusion
Therefore, the offer from Noonty Greenhouse Co.,Ltd (Xiamen Zhonghesheng Import&Export Co.,Ltd) can be used
for purposes of budgeting (or planning project costs).
Summary for cost built up revised for Raya valley project
S/N
1
2
3
Item description
Drip Irrigation System (10ha)
Nursery Green House (9600m2)
Germination Room cell panel and equipment’s 10mX8m
Total cost
USD
Planned cost
EURO
158,405.92
211,202.25
211,202.25
61,808.77
220,214.70
ETB
9,085,189.18
12,183,504.59
3,568,047.28
24,836,741.05
Remark:
 The aforementioned total cost is calculated based on 1 USD = 53.258 ETB and 1 EUR = 54.2539
(https://nbebank.com/commercial-banks-exchange-rate/).
 5% contingency is excluded as per project approval comment.

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