PROJECT PROPOSAL

FOR
COFFEE PLANTATION

PROJECT TO BE IMPLEMENTED IN HAMBALA

WAMANA WOREDA,

GUJI ZONE, OROMIA REGION STATE

PROMOTER: MARTA WONDIMU

MAY, 2023

ADDIS ABABA, ETHIOPIA

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 Table of contents

I. EXECUTIVE SUMMARY

1. INTRODUCTION………...................................................................................................…..4
I.1. Background……………………………..………………………………………………...5
I.2. General Description of project Area……………………………………………………...6
I.3. Location Map of the Area ………………..…………………….………………….…..…6
I.4. The Objectives……………………………………………………………………………8

1 MARKET STUDY AND PLANT CAPACITY

2.1. Target Customers…………………………………………………………………………9
2.2. Competition ……………………………………………………………………………..10
2.3. Our project Proposal….……………………………………………………………........11
2.4. Our Customers Demographic………………………………………………………..….11
2.5. The Opportunity for a sustainable local food economy…….…………………………...11
2.7. Market Prospect………………….……………………………………………………...11
2.8. Land use plan and action plan…………………………………………………………...12
2.9. Production capacity and Technology used……………………………………………...12
1.10. Type of Technology Used…………………………………………………………...…13

3. MANPOWER AND ORGANIZATIONAL MANAGEMENT

3.1. Organizational Structure……………………………………………………..……….…13
3.2. Manpower requirement with qualification and level of education……………………...15

4. FINANCIAL REQUIREMENT AND ANALYSIS

4.1. Project capital and Source of finances..............................................................................16

4.2. Fixed Investment............................................................................................…………...17
4.3. Initial working capital estimation of the project....................................................……...20
4.4. Estimated cost of pre-operating expense....................................................................…..20
4.5. Annual depreciation schedule Fixed
Asset..................................................................…21
4.6. Basic Assumption’s......................................................................................................
….22
4.7. Financial Analysis ..................................................................................................
……..22

5. PRE- ENVIRONMENTAL IMPACT

ASSESSMENT/EIA/........................................................….23
6. Annex I: Coffee plantation project Action Plan/Gantt Chart……………………………...….24
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 EXECUTIVE SUMMARY

1. Project Title – - Marta Wondimu

1.1. Status :- News
1.2. Nationality:- Ethiopian
2. Project Location:- Oromia Regional State
Guji Zone
Hambala Wamana Woreda

3. Land Area and Capital

3.1. Premises Requirement: - 50 Hek.
4. Total Capital:- 14,000,000 Ethiopian Birr
 Total Capital
4.1. Fixed Capital = 9,513,000 birr
4.2. Working Capital = 4,487,000 birr
 Source Fund
4.3. Own Equity (30%) = 4,200,000 birr
4.4. Bank loan (70%) = 9,800,000 birr
5. Planned Employment of the creation of the project
 The total manpower required for the plant will be 750 employees
5.1. Permanent Worker :- 50
 Skilled and Unskilled
5.2. On Temporary Basic :- 700
 Skilled and Unskilled
6. Project Composition
Coffee plantation quality and affordable to up-scale what we do at the moment we will need
to significantly expand our product range; we will do this both through increasing the
offering carried in the existing range and by extending our offering into new product
departments.

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1. Introduction

Until the coming of new economic police, the acute problem of Ethiopia had been food shortage.
This has been the problem faced by all developing countries even though not chronic as ours. In
countries like Ethiopia although drought had affected the agricultural out put, the over all
discouraging economic police of the time was also the one, which hindered the economic
development of the country. Even under such a condition, the agricultural sector apparently plays
the decisive role in the over all economy of the country. It accounts for about 40% of GDP
85% of the employment and about 90% of the export earnings. Despite this agriculture has
remained under development because of different reasons, drought, poor economic base law
productivity, poor technology transfer and the like. The government has embarked on an export
diversification program to reduce its dependence on coffee and to increase the quality of coffee.

Agriculture is expected to remain the major contributor to economic and growth in the coming
decades. The potential for expanding output is largely through expanded irrigation, improved in
puts supply, strengthened research and extension systems and rehabilitated infrastructure. In
general to do away the problem of food self sufficiency increase foreign currency increase of raw
material for industries efforts should be made towards developing agricultural sector. This needs
a shift from traditional and back ward method of production system that required a coordinated
roll of all factors of production. In this regards it is the private sector that can mobilize huge
capital and skilled man power. Therefore the involvement of private sector should be pursed and
encouraged by the government through adopting a favorable economic policy that allow the
sector to take part in the development process without putting capital ceiling.

Currently, in order to encourage private investment and to attract capital technology and know-
how to the country comprehensive packages of incentives are granted to investor by the
investment proclamation. These incentives included hundred percent (100%) exemption from
payment of import customs duties levied on imported capital goods (machines and equipment’s
as well as spare parts up to 15% of the value of capital exemption from income tax payment for a
period market.

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1.2 Background

This project constitutes significant part of coffee development or plantation which is the most
tests full and the most appreciated and stable in the international market. The market for coffee
production continues to be strong in both local and international market because new markets are
continuously being developed. These account for the fact that production continues to increase
the demand for quality coffee production pushes the price higher on the world. The total
investment capital of the project will be about 14,000,000 Birr of which 9,513,000 Birr will be
for fixed investment capital and the remaining 4,487,000 will be invested for working capital.

The proposed project will create job opportunities for more than 50 permanent & 700 temporary
and total for 750 citizens and will generate revenue which estimated to 14,000,000 per year when
it operates at full capacity, generate income for the government in the form of land rent and
different taxes payment.

The output of the project will never encounter any marketing problems since the demands for the
out puts of the project are high and ever increasing while the supply is far below the demand.
The promoter has every right to sell the farms produce in a free market where it could obtain the
maximum benefits.

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1.3 General description of project area
1.3.1 Location
The envisaged Coffee Plantation farm projects are to be located in the Guji zone, Hambala
Wamana woreda, The envisaged woreda is one of the Capital town of Gujii, growing city in
the Country, From the Federal Capital of Ethiopia surrounding 450 KMs East shoa side.
Currently the woreda is known for its multi investment development and future establishment of
industrial city and the area altitude from 1800m-2200m.

According to the 1994 national census, the town had a population

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1.3.2 Soil and Topography

The location/soil where this project is planned to be executed is very fertile and suitable for
coffee plantation. With respect to topography, the major part of the land has got the altitude of
the area lies in the altitude from 1800m-2200m suitable for mechanized farm and coffee
plantation project.

1.3.3 Climate

The project area fall within Dega agro-climatic zone, which is good for coffee plantation & the
project area is having two rainy seasons heavy during the months of June to October and light in
March to April.

1.3.4 Water supply

The site has got sufficient rain fall and the promoter can use underground water through
derailing system during the preparation of coffee seedling.

1.3.5 Land holding system

Regarding the land holding procedure, the establishment of the project has got strong acceptance
by the surround population, by the woreda, zonal investment committee and after getting full
approval by Regional investment Board it will sign land rent/lease agreement with the zonal
investment office or Regional investment commission.

1.3.6 Economic basis, infrastructure

Even though there are few/sparsely people living around the project the major economic base of
them is farming supplemented with animal rearing. Concerning infrastructure there is availability
of all-weather roads up to the proposed site.

1.4. The objectives

1.4.1. Over all objectives

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Condensed project objectives which are aligned with the government’s police of ensuring
production of high quality and value of export oriented products and better utilization of the
natural resources, are stated below:

 Contribute to the country’s foreign exchange earnings through production and export of
top quality coffee to the world premium or specialty market segments.
 Serve as a model for transferring modern farm and other technology to the surrounding
community.
 Contribute to the preservation of the agro ecology and climate of the farm location
through the implementation of appropriate environmentally friendly and socially
responsible farm management strategies and practices,
 Contribute to the community development endeavors around the farms and balanced
regional development in the country at large.
 Contribute to the wealth creation and long term sustainable and diversified to the
promoters or investors.

1.4.2. Specific objective

The Specific objective of this project is to generate profit to the promoter over the invested
capital by growing quality products. and other objectives are:-

 To create job opportunity citizens particularly for the local people where the farms
located.
 To add satisfy the local and international need of coffee.
 To enhance and demonstrate the effective utilization of natural resources.

2. THE MARKET STUDY AND PLANT CAPACITY

Marketing means the flow of goods and services from the area production to the area of
consumption. Marketing is affected /determined by different factor such as, total number of
population, income level, quality of goods and services, price of these goods and services, test
and preference of the consumers, habit, religion, price of other substitutes and the like.

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Despite these outputs of the project will never encounter any marketing problems since the
demands for coffee is high and ever increasing while the supply is far below the demand in both
local and international market.

2.1. Target customers

As clearly indicated in the introductory part of this proposal Guji zone is the dynamically
grow thing zone of oromia regional state government, hence the proposed specific location is
found between those to big zone those it opens an opportunities for raping the maximum from
very high traffic follow passing though the zone. Moreover, there is few coffee plantation in the
area both finfinne, Guji and bule hora but still there is the gap because of high traffic follow
through them.

The owner believers that the new location will be a big player in the area because of the new
agriculture and Agro industry service will encourage potential customers to stop in and visit the
area.

Therefore, the target customers of this envisaged project include

 the residents of the finfinne and Adama as will Guji

 the governmental Offices
 Foreign visitors and other tourists
 Individuals all over the country who are passing through the woreda as the project has
integrated services.

Hence to reach customers different marketing vehicles will be used, among the different
marketing strategies and tools for promoting and controlling the market the different
marketing straight will use

 Both printed and non printed forms of adverting

 Sponsorship of key governmental activities and public support mechanism
 Using different marketing segmentation strategies and tactics

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  Utilizing effective and customer centric, marketing strategies that are the marketing
strategies that focused on different group of customers based on different
segmentation tools.

2.2. Competition

There are different forms of competition that may face the envisaged projected, these are price
and non price based competition, moreover these are different competitors that will complete
with the project either directly or indirectly. But the project under discussion has diversified
marketing strategies that could enable it come up with the different competitors in the market.
Moreover it will be frequently conduct competitors research which focuses on the strength and
the weakness, the different competitor’s strategies the techniques they use in rendering the
service, their customer handling methods and others.

2.3. Our Project Proposal

We want to scale up our growth and launch a much larger grocery store so we can begin denting
the market share of coffee plantation at a local level and begin realizing some of the
opportunities a fairer, more sustainable local food economy can generate for society.
We aim to open a new spacious store of around 120 Hek. to create the sort of place in which
most people can do most of their shopping, offering a real alternative to the big Coffee
plantation. That means providing a really good selection of everyday groceries which hold up
our principles, including good value.

2.4. Our Customers Demographic

Our current coffee plantation attracts a wide variety of customers from skit students to the
comfortably retired. Despite a common perception that local, organic or ethical food is expensive
our offer can be pretty competitive and this is represented by a survey which showed an even
spread in customers household income across the brackets £10-20k, £20-30k & £30-40k. Above
and below these brackets there was limited representation.

Previous customer surveys showed our typical customer is female, aged 25-34, lives in a
household of 2-3 with a low to medium income. They do most of their grocery shopping with

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independents (including us). Many of them also identify as vegetarian. To an extent we identify
this profile as a typical customer but feel it is skewed by bias in the type of people who are
willing to take an online survey. Our team also feel many of our customers might be what you
would call socially engaged or 'ethical consumers'. Many of our customers buy into what we are
about and see shopping with us as doing something bigger than just buying groceries.

Interestingly, a separate survey showed over half of customers did less than 25% of their total
food shop with us though a small sample did over 75%. This shows huge potential to increase
our average sale spend through introducing a greater selection of what customers want to buy.

Going forward, we see our bigger store as having the gravity to attract the type of customers we
already have from a wider area as well as attracting new demographics to engage with us by
creating a more attractive shopping experience that meets more of shoppers needs. Greater
choice and lower prices as a result o f economies of scale will contribute to this.

2.5. Market prospect

Marketing opportunities for Coffee plantation services are directly linked with the level of the
country’s economic and Agriculture development. As the region’/Country’s economy develops,
the citizens’ income improves and as income of the citizens improves they certainly start looking
for knowing their surrounding and their whole nation historical and natural attraction hence the
domestic service culture will be developed. Similarly, as the country’s infrastructure developed
and its stability and security issues are insured, international trade will develop interests in
service in the country visiting the country’s economic and social developments.

2.6. Land use plan and action plan

2.6.1. Land use plan

Sufficient land is required in order to achieve the targeted objective of the project.

The area of land required for the proposed project is estimated to be 50 hek. The land
requirement of the project has been decided by taking the dimension of coffee plantation which
covers 48 hek and the remaining balance 2 hek is for other facilities like building & construction.
The detail information is as follows:

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 No Particulars Unit Size required

1 Office building 0.02

Hek
2 Store (in put & output) “ 0.05
3 Machinery shed “ 0.1
4 Generator house “ 0.01
5 Work shop “ 0.66
6 Show room “ 0.05
7 Toilet and shower room “ 0.01
8 Dressing room “ 0.01
9 Guard house “ 0.2
10 Parking & other “ 0.25
11 Fencing and farm road construction “ 0.5
12 Farming/plantation Area Cleaning “ 48.24
Total “ 50.00

2.7. Production Capacity and Technology Used

2.7.1. Productions Capacity

The planned project is going to produce quality coffee product.

The project also has the capacity to produce a total of above 8,400 quintal when it starts
operation at full capacity.

2.7. Type of Technology Used

To provide the quality output of the project with greater efficiency, modern and sophisticated
machineries and equipment’s will be acquired both from local and overseas market. In this case
the project owner will consult with relevant expert to gain adequate information on the quality
and cost of these machineries before deciding to procure these machineries and equipment’s.

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The machineries and equipment’s required for the smooth operation of the envisaged project are
tractor, Trailer, Disc plough, Disc harrow, Chemical sprayer, Water pump, Diesel generator,
drying plate, dry coffee hulling, weighing moisture taster and etc. The type and cost of
machineries and equipment required for running the proposed project are outline later.

3. Manpower and Organization management

3.1. Organizational structure
An organization is an entity established to organize activities, resources and manpower so as to
achieve the intended objectives in a given time.
Organizational structure is a tool designed to allocate the planned activities, responsibilities and
accountabilities to manpower of the organization based on their qualifications and experiences.
Hence, the following organizational structure is designed for the proposed project management.

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 Fig2. Organizational Structure for Coffee Plantation Farm

General Manager

VP Distribution

Custome Public
HR Manger Merchandising Administration &
Service Relation Finance Manger

Store Mngr Purchasing

Image
Operatinals and Product Accounts
Recruitment Placement
Associates
Recieve Marketing
&Inspection Shipping Billing
Staff Dev't
Adertising
Waste
Mngt

Reaserch
and Dev't

3.2. Manpower Requirement with Qualification & Level of Education

Based on the volume and weight of the job to be assigned the following manpower with relevant
qualification is proposed.

Table2: Manpower and specific qualifications for Coffee plantation farm

No Description of Required qualification Unit Required Monthly Annual

manpower Number salary (Br.)

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 salary (Br.)
1 Project Manager Agronomist No 1 3,000 36,000
2 Cashier Dip. Accounting “ 2 900 21,600
3 Administration BA.in mgt “ 2 2,500 60,000
4 Store keeper Grade 5 “ 5 450 27,000
5 Mechanics Technique “ 2 700 16,800
6 Tractor operator Grade 8 “ 4 600 28,800
7 Driver 3rdlevel license “ 4 900 43,200

8 Tire and fuel man Grade 8 “ 2 500 12,000

9 Guards Grade 5 “ 5 450 27,000
10 Supervisor BA in economics “ 3 1800 64,800
11 Accountant BA Accounting “ 3 1,650 59,400
12 Agronomist Bsc Agronomy “ 5 1,650 99,000
13 Plantist Bsc Plant science “ 49 1,650 970,200
14 Sales man BA in Marketing “ 5 1,650 99,000
15 Purchaser BA in Purchasing mgt. “ 3 1,650 59,400
16 Sanitary Grade 6 “ 5 300 18,000
17 Daily laborers 40 - “ 650 - 228,000
birr/day for 60 days

Total 750 1,870,200

4. Financial Requirement and Analysis

4.1. Project capital and sources of finances
The project capital estimations are done based on procurements, building and civil works, and
routine operating expenses. The fixed costs are estimated from machineries and equipment
procurement and buildings and civil works and variable costs (working capitals) are estimated
from routine day to day activities of the project. Both costs are estimated in the following sub-
sections.

TABLE 5: SUMMARY OF FINANCIAL REQUIREMENT

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 No Description Cost

1 Fixed Investment
1.1 Land, Building and Construction 1,000,000 0.00
1.2 Machines and Equipment’s 2,413,000 0.00
1.3 Vehicles and Motors 3,600,000 0.00
1.4 Office Furniture and Equipment 500,000 0.00
Total Fixed Investment Cost 7,513,000 0.00
2 Operating Expense
2.1 Raw Materials Purchase and Products 3,000,000 0.00
2.2 Salary Expense 1,870,200 0.00
2.3 Other Operating Expense 1,589,450 0.00
2.4 Pre-operating Expense 27,350 0.00
Total Operating Expense 6,487,000 0.00
Total Investment Cost 14,000,000 0.00

4.2. Fixed Investment

TABLE 6: Estimated Costs of Land, Building and Civil works for Coffee plantation Farm

No Particulars Unit Size Estimated total

required cost (Br.)
1 Office building Hek. 0.02 100,000
2 Store (in put & output) “ 0.05 50,000
3 Machinery shed “ 0.1 50,000
4 Generator house “ 0.01 50,000
5 Work shop “ 0.66 50,000
6 Show room “ 0.05 60,000
7 Toilet and shower room “ 0.01 50,000

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 8 Dressing room 0.01 50,000
9 Guard house “ 0.2 50,000
10 Parking & other “ 0.25 20,000
11 Fencing and farm road construction km 0.5 20,000
12 Farming/plantation Area Cleaning Hek. 118.24 450,000
Total 120.00 1000000

TABLE 7: Estimated costs of Machines and Office Equipment for Coffee plantation Farm

No Machinery item Qty Unit cost (birr) Total cost (birr)

1 Tractor 2 250,000 500,000

2 Trailer 2 160,000 320,000
3 Dry plate 2 250,000 500,000
4 Dry coffee hulling machine 1 200,000 200,000
5 Weighing scale 1 100,000 100,000
6 Coffee pulping machine 1 200,000 200,000
7 Disc harrow 1 100,000 100,000
8 Sacks 200 15 3,000
9 Moisture taster machine 2 50,000 100,000
10 Chemical sprayer (motorized) 2 15,000 30,000
11 Water pump(14HP) 2 30,000 60,000
12 Diesel generator 2 50,000 100,000
13 Land Clearing and others related 200,000
Total - 1405015

TABLE 8: Estimated costs of costs of, Vehicles, Motors and related Utensils
for Coffee plantation Farm
No Type Unit Qty Unity price Total cost

1 Pick up(4WD) No 2 1,200,000 2,400,000

2 Isuzu No 2 550,000 1,100,000

3 Motorcycle No 2 50,000 100,000

Total 3 3,600,000

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TABLE 9: Estimated costs of costs of, Office Furniture and Other work shop Equipment
for Coffee plantation Farm
No Item Unit Qty Unity cost Total cost(birr)
1 Safety cloth No 900 200 180,000
2 Disc top with printer No 5 15,000 75,000
3 Table, chair, paper and others No 5 10,000 50,000
4 Water tanker(15,000) lit No 2 10,000 20,000
5 Fuel tanker (1,000) lit No 2 15,500 31,000
6 Fuel barrel No 2 32,000 64,000
7 Tyr repairing tools No 1set 50,000 50,000
8 Hand drill 10 3,000 30,000
Total 500,000

4.3. INITIAL WORKING CAPITAL ESTIMATION OF THE PROJECT

The initial working capital is estimated to be 6,487,000 birr

TABLE 9: Estimated costs of Raw Materials Purchase

Description Unit Total cost

(birr)

Material input Qt 1,200,000

-seed
-Fertilizers- “ 800,000

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 -chemicals-Herbicides Lt 40,000
-Pesticides “ 50,000
-Packing material No 30,000
Total material input cost - 120000
Machinery services TH
-plough 40,000
-Disking “ 17,000
-seed cover sowing “ 35,000
-Chemical and fertilizer application “ 18,000
-Harvesting and threshing ‘’ 80,000
-product transport “ 250,000
Total machinery service cost - 440,000
Labor operation 150 MD
days
-land clearing 173,058
-weeding “ 45,000
-Sowing “ 50,000
-fertilizer application “ 15,000
-chemical application “ 15,000
Harvesting “ 100,000
Bagging “ 16,000
-crop guarding “ 9,421
Total labor cost - 450,000
Total material input, machinery -
service and labor operation cost 3,000,000

4.3.1. ESTIMATED COSTS OF SALARY EXPENSE

As indicated in part 4.1 (manpower) of this study, the total cost of salary and wages is estimated
to be 1,870,200 Birr

4.3.2. OTHER OPERATING EXPENSES

Operating costs are recurrent costs occurring every time and are calculated as follow;

Table10: Estimated costs of Project operating costs for Coffee Plantation Farm

No Description Project year

1 2-10

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 1 Salary and wage 696,780 696,780
2 Labor, machinery and material input 1,416,942 1,416,942
cost
3 Fuel cost and lubricants 322,591 322,591
4 Insurance 342,184 342,184
5 Land rent 162,000 162,000
6 Office supplies 100,000 100,000
7 Employment benefit 50,610 50,610
8 Repair and maintenance 285,254 285,254
9 Travel expense 50,610 50,610

10 Miscellaneous expense 102,469 102,469

11 Administrative overhead 7,200 7,200
12 License fees and other payment 6,600 200
Total 3,593, 850 3,589,450

TABLE 11: Estimated costs of Pre-operating Expense

No Description Cost

1 Project proposal 10,000

2 Environmental Impact Assessment 17,350

Total 27,350

4.4. Estimated costs of Bank Loan Repayment Amortization for Coffee Plantation Farm

Total Annual Remaining

Year Principal Payment Interest (10%)
Payment Balance

0 0 0 0 9,800,000
1 980,000 980,000 1,960,000 8,820,000

2 980,000 882,000 1,862,000 7,840,000

3 980,000 784,000 1,764,000 6,860,000

4 980,000 686,000 1,666,000 5,880,000

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 5 980,000 588,000 1,568,000 4,900,000

6 980,000 490,000 1,470,000 3,920,000

7 980,000 392,000 1,372,000 2,940,000

8 980,000 294,000 1,274,000 1,960,000

9 980,000 196,000 1,176,000 980,000

10 980,000 98,000 1,078,000 0

4.5. Depreciation of Fixed Assets

The wears and tears of capital assets are calculated as depreciation of capital assets and are
included in the expenses of the project as follows;
Table12: Estimated costs of Depreciation of Capital Asset for Coffee Plantation Farm

values of Capital Rate of Amount of Depreciation

No Capital Assets
assets (Br.) depreciation (%) estimated (Br.)
Land, Building and 1,000,000
1 5
Construction 50,000
Machines and 2,413,000
2 15
Equipment’s 361,950
3 Vehicles and Motors 3,600,000 15 540,000
4 Office Equipment 500,000 20 100,000
Total 500000 1051950

4.6. Basic Assumption’s

 300 effective working days in a year and 16 effective working hours in a day are taken,
 12% of annual bank interest is assumed
 Different classification Coffee plantation materials
 Our product range from the current many materials we will do this both through
increasing the offering carried in the existing range and by extending our offering into
new product departments
4.7. Financial Analysis

After setting aside all your coffee plantation costs (interest, taxes, amortization, depreciation, etc)
from your net sales, you can finally determine your net profit/net income.

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 Net Profit/Net income= Gross Profit – (Total Operation Expenses + Interest +Taxes
+Amortization + Depreciation).

Gross Profit Net Profit

Gross Profit % = *100 Net Profit % = *100
Net Sales Net Sales

Table13: Estimated costs of Project cash flow statement for Coffee Plantation Farm

Particulars Year0 Year I Year II Year III-XI

A. Cash Inflow 0
· Own equity 4,200,000
· Bank loan 9,800,000
· Depreciation 0 0 0 0

· Net profit 0 1,250,000 1,875,000 2,812,500

Total inflow 14,000,000 1250000 1875000 2812500
B. Cash outflow 0
· Fixed capital 7,513,000
· Working capital 6,487,000
· Loan repayment 0 1,960,000 1,960,000 1,960,000
Total outflow 14,000,000 1,960,000 1,960,000 1,960,000
Net inflow (A-B) 341,950 966,950 1,904,450
0
Cumulative balance 341,950 966,950 1,904,450
0
The cash flow statement of the project indicated that the project would yield sufficient amount of
money starting from the first year of operations. Hence, the project would not face any cash flow
problems in the short and long runs if implemented as scheduled in this document.

5. Brief Environmental Impact Assessment (EIA)

Traditionally, agriculture is considered to be environmentally friendly venture as it is commonly
called “smokeless industry”. But unfortunately one of the agriculture facilities, coffee plantation
farm, is free from environmental pollutions as the coffee plantation establishment pollutes the
environment during its construction and implementation phases.
1. Preconstruction phase: -In this phase most of the time the environmental and social issues
of the surround environs are not taken into considerations. And as a result the probable
pollutions of the surrounding surface and ground waters, vegetation, soils and impacts on
societal livelihoods are immense and unavoidable.

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 2. During construction phase: -In this phase the major part of the environmental disturbances
occurs while excavations and construction of coffee plantation used structures. Dust
emissions, water and soils pollutions are the major and unavoidable activities where the
incumbent investor would exercise maximum efforts to minimize negative environmental
and social impacts.
3. During operation phase: - This phase is the phase at which the coffee plantation started
providing the intended coffee plantation services. In providing coffee plantation services, the
major polluting service is the improper disposal of liquid and solid wastes, depletion of
water, sound pollution and others. Hence, the planned project should consider the proper
drainage systems that have alignment with the surrounding major drainage systems and
minimize the sound pollutions through construction of sound proofing structures for building
and partitions of building. In doing so such standardized coffee plantation investment would
make immense contributions for the country’s service development in general.

6. Annex I: Coffee plantation Project Action Plan/ Gantt chart

Time required for implementing the project

2021 E.C. 2022 E.C. & after 2023E.C.
No Activities

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1 Processing land issues

2 Land Clearing and

leveling

3 Construction

Promoter’s: -Marta Wondimu Page 23

4 Actual coffee
plantation service

Promoter’s: -Marta Wondimu Page 24