Project Proposal for

Dismantling and Re-installation of Mugher Cement

Factory Grinding Mill to
Zway Caustic Soda Factory

March, 2023
Addis Ababa
1 INTRODUCTION

1.1 PURPOSE OF PROJECT MANAGEMENT PLAN

[Provide the purpose of the project charter.] The intended audience of the PMP is all project
stakeholders including the project sponsor, senior leadership and the project team.

2 EXECUTIVE SUMMARY OF PROJECT CHARTER

[Provide an executive summary of the approved project charter.

Provide a reference to the approved Project Charter. Elaborate on any sections within the Project
Charter that need further detail contained within the PMP.]

2.1 ASSUMPTIONS/CONSTRAINTS [Insert summary of any changes from the project

assumptions and/or constraints that were originally outlined in the project charter.]

3 SCOPE MANAGEMENT

[Insert the project’s scope management plan or provide a reference to where it is stored.]

3.1 WORK BREAKDOWN STRUCTURE [Insert the project’s work breakdown structure or
provide a reference to where it is stored.]

3.2 DEPLOYMENT PLAN [Example: The project involves deploying an application to state
health partners. This section would discuss the approach for rolling out the application to the end
users, including conducting environment assessments, developing memorandums of
understandings, hardware/software installation, data conversion.]

3.3 CHANGE CONTROL MANAGEMENT

[Example of Change Control: If a development server for your project is administered by

another organization that is responsible for installing machine upgrades and there are scheduled
outages that will impact your project schedule. Changes to the project will need to be made to
deal with the potential impact of the scheduled outage.]

4 SCHEDULE/TIME MANAGEMENT

[Example of schedule management approach: Establish a baseline within the first two weeks of
the project and monitor progress against the baseline on a weekly basis. The Project Manager
will be responsible for ensuring the project schedule is updated with the latest information and
never more than three business days out of date. For variances on executive milestones greater
than 10%, the project may choose to use guidance specified by CPIC. See the CDC UP Project
Schedule document for more guidance on project schedules and for Project Schedule templates.]

4.1 MILESTONES

The table below lists the milestones for this project, along with their estimated completion
timeframe.

Milestones Estimated Completion Timeframe [Insert milestone information (e.g., Project

planned and authorized to proceed)] [Insert completion timeframe (e.g., Two weeks after project
concept is approved)] [Add additional rows as necessary]

4.2 PROJECT SCHEDULE

[Insert the project’s schedule or provide a reference to where it is stored.]

4.2.1 Dependencies [Insert the schedule/project dependencies (both internal and external).]

5 COST/BUDGET MANAGEMENT

[Insert the project’s cost management plan or provide a reference to where it is stored.]

6 QUALITY MANAGEMENT

[Example: For an information system, controlling the consistency of screen layouts would
include reviewing all screens to make sure they match the standards. Quality measures may be
no bugs or defects for certain critical requirements, consistent screen layouts, or correctly
calculating variables. Quality may be ensured through inspections, audits, formal testing and
documentation of defects in a defect tracking system to ensure defects are fixed, retested and
closed. Some projects may choose to use a traceability matrix to determine if critical
requirements have been met.]

7 HUMAN RESOURCE MANAGEMENT [Insert the project’s human resource management

plan or provide a reference to where it is stored.]

8 COMMUNICATIONS MANAGEMENT [Insert the project’s communication management

plan or provide a reference to where it is stored.] 8.1 COMMUNICATION MATRIX [Insert the
project’s communication matrix or provide a reference to where it is stored.] Stakeholder
Messages Vehicles Frequency Communicators Feedback Mechanisms

9 RISK MANAGEMENT

[Insert the project’s risk management plan or provide a reference to where it is stored.]

9.1 RISK LOG

[The Risk Log is normally maintained as a separate document. Provide a reference to where it is
stored.]

10 ISSUE MANAGEMENT

[Insert the project’s issue management plan or provide a reference to where it is stored.]

10.1 ISSUE LOG [The Issue Log is normally maintained as a separate document. Provide a
reference to where it is stored.]

11 PROCUREMENT MANAGEMENT

[Example: This can include information such as ensuring project team members are assigned
computers, how development and test servers are procured or can go into more detail and include
an acquisition strategy that details how the project will be staffed (e.g., performance based fixed
price contract, CITS contractors).]

12 COMPLIANCE RELATED PLANNING

[Insert a list of compliance related processes the project must adhere to. For assistance with
determining which compliance processes need to be followed visit
http://www2.cdc.gov/cdcup/document_library/project_assessment.asp]

Appendix A:

Project Management Plan Approval

The undersigned acknowledge they have reviewed the Project Management Plan and agree with
the approach it presents.
Changes to this Project Management Plan will be coordinated with and approved by the
undersigned or their designated representatives.

[List the individuals whose signatures are desired. Examples of such individuals are Business
Steward, Project Manager or Project Sponsor. Add additional lines for signature as necessary.
Although signatures are desired, they are not always required to move forward with the practices
outlined within this document.] Signature: Date: Print Name: Title: Role: Signature: Date: Print
Name: Title: Role: Signature: Date:
Table of Contents
List of tables...................................................................................................................................iii

List of figures.................................................................................................................................iii

EXCUTIVE SUMMARY...............................................................................................................iv

1. Introduction..................................................................................................................................1

1.1 Background............................................................................................................................1

1.2 Scope......................................................................................................................................2

2. Technical Assessment..................................................................................................................3

2.1. Technical Work Scope..........................................................................................................3

2.1.1 Dismantling.........................................................................................................................3

2.1.2 Transportation and Logistics...............................................................................................4

2.1.2.1 Equipment and Machineries for Transporting..............................................................4

2.1.3 Re-installation.....................................................................................................................5

2.2 Product and Process Introduction..........................................................................................6

2.2.1. Hydrated Lime................................................................................................................6

2.2.2 Powdered Lime................................................................................................................7

2.2.3 Powdered Magnesium Oxide..........................................................................................8

2.2.4 Powder PCC /Precipitated Calcium Carbonate/..............................................................8

2.3. Utility and Auxiliary Facility................................................................................................9

2.3.1 Electric Power Supply System........................................................................................9

2.3.2 Water Supply.................................................................................................................11

2.3.3 Compressed Air Supply.................................................................................................12

2.4 Proposed Process Length and Layout..................................................................................12

 2.4.1 Proposed Layout for Process.........................................................................................13

2.4.2 Description of Layout and Machinery Required...........................................................14

2.4.3 Proposed Layout for Civil Work...................................................................................15

2.4.4 Proposed Process Line...................................................................................................16

2.5 Limitations...........................................................................................................................17

2.5.1 Mechanical Machines and Equipment..........................................................................17

2.5.2 Electrical and Control Mechanism................................................................................17

2.5.3 Civil and Structural Limitations....................................................................................18

2.5.4 Realization and Sustainability.......................................................................................19

2.6. Mechanical Plant Machineries Specification and Cost.......................................................20

2.7 Civil Bill of Quantity...........................................................................................................24

2.8 Summary of Investment Cost...............................................................................................29

3. Market and Financial Analysis Summery..................................................................................30

3.1 Productions to Meet Capacity..............................................................................................30

3.2 Market Study Summery.......................................................................................................31

4. Estimated Schedule for Project Implementation.......................................................................34

5. Environment and Social Soundness...........................................................................................35

6. Conclusion and Recommendations............................................................................................36

6.1 Conclusions..........................................................................................................................36

6.2 Recommendations................................................................................................................36

7. Reference……………………………………………………………………………………………………………………………………… 37
List of tables

Table 1 Equipment and Machineries for Transporting....................................................................4

Table 2 Batu Caustic Soda factory product consumers...................................................................9
Table 3 list of Electrical drives for new system............................................................................11
Table 4 Description of proposed Machinery Required..................................................................14
Table 5 Total power requirement for proposed process................................................................18
Table 6 Mechanical Plant Machineries Specification and Cost....................................................23
Table 7 Civil work buildings and structure BoQ...........................................................................28
Table 8 Total investment cost........................................................................................................29
Table 9 Productions to Meet Capacity...........................................................................................30
Table 10 demand projection..........................................................................................................31
Table 11 Annual demand of raw materials....................................................................................31
Table 12 Annual Utilities Consumption........................................................................................31
Table 13 Estimated Selling Price...................................................................................................32
Table 14 Capital Requirement (Project cost).................................................................................32
Table 15 Discounted cash flow total capital investment for 10 years...........................................33
Table 16 Estimated Schedule for Project Implementation............................................................34

List of figures

Figure 1 lime-cycle..........................................................................................................................6
Figure 2 Proposed Layout for Process...........................................................................................13
Figure 3 Proposed Layout for Civil Work.....................................................................................15
Figure 4Proposed Process Line.....................................................................................................16
EXCUTIVE SUMMARY

The study team survey incorporates and prepare technical requirement, financial arrangement,
transportation and logistics as well as environmental and social soundness assessment survey for
relocating Mugher Cement Factory Addis Ababa Grinding Plant to BatuCaustic Soda Factory.
Based on this a draft report of the study for relocation of the grinding mill at Caustic Soda will
be prepared. Technical assessment emphasis more to estimate technical requirements (man
power, skill and professionals), to site transportation and handling requirement, by categorizing
technical works into three main sections to realize dismantling and relocation of the grinding
plant that are complete process of dismantling, transportation and Re-installation of grinding
mill. Additionally, it also estimates the logistic arrangement to transport to the proposed site and
cost of the plant and financial arrangement to settle. The study investigate rawmaterial
availability , cost and production process on major products of Caustic Soda that are natural
powder limes (CaCO3) hydrated limes (Ca (OH)2)Powdered Magnesium Oxide MgO which is
main raw material is Dolomite and Powder PCC /Precipitated Calcium Carbonate/ by product
material that is available around the factory Caustic Soda. In order to realize the project and to
simplify project implementation process the study Propose its own Process line, length and
Layout in terms of process and civil work in order to meet a point in which new process line
will be aligned with old and existing system.
The financial assessment shows that re installation of the grinding mill is financially feasible and
economically viable from financial point of view, this justified by financial analysis that shows
in the study. The proposed plant installation will be implemented only to grind the selected
products that MgO, Powder lime, hydrated lime and Precipitated Calcium Carbonate in pre -
existing factory Caustic Soda. Which is rather than a little dust emission the proposed plant has
no significant adverse impact to the environment and have no changes to the environment.
1. Introduction
1.1 PURPOSE OF PROJECT MANAGEMENT PLAN
[Provide the purpose of the project charter.] The intended audience of the PMP is all project stakeholders
including the project sponsor, senior leadership and the project team.

A project management plan is a set of documents that outlines the goals, resources, and

timeline for a project. It also includes the tasks to be done and the responsibilities of each

person involved in the process.

A project charter is a document that outlines a project's scope, objectives, and stakeholders. It is
typically created at the beginning of a project and serves as a roadmap for the project team to
follow. Here are the key elements that should be included in a project charter:

1. Project title: The project's name should be clearly stated at the top of the document.

2. Project background: This section should explain why the project is necessary and how it
will benefit the organization.
3. Project scope: It should define the boundaries of the project and what is included and
excluded from the project.
4. Project objectives: It should be specific, measurable, achievable, relevant, and time-
bound (SMART).
5. Project timeline: It should include the start and end dates of the project and any key
milestones.
6. Project budget: It should outline the estimated project cost, including any resources
needed.
7. Project stakeholders: The project charter should identify all stakeholders, including
project sponsors, project team members, and external stakeholders.
8. Risks and assumptions: The project charter should identify any potential risks and
assumptions associated with the project.
9. Project management approach: It should outline the methodology and processes used to
manage the project.
10. Project deliverables: It should be clearly defined, including any reports, products, or
services that will be produced as a result of the project.

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BatuCaustic Soda factory (formerly known as Caustic Soda SC) established and started
production operation 1995 with a capacity of 21,978 tons of liquid Caustic Soda at 45.5%
concentration. In 2003 the company has established a lime re-burning plant having a production
capacity of 12,000 tons quick lime per annum. During the establishment stage decision was made
to produce Caustic Soda by lime-soda process technology since common salt-based electrolysis
project failed because of low demand for chlorine. Even though the lime-soda project had
showed positive return, it couldn’t sustain long due to new technology driven market
competition. Because of this, the Caustic Soda production line has continued to be non-
competitive and has been incurring losses which led to the total shot down of the caustic line
since 2013, while the lime production line is still operational. The factory produced 4,964 tons,
262 tons and 1,491 tons of quick lime, hydrated lime and poultry feed respectively in 2017.
Considering the existing and potential demand for quick lime products in the country is not
considered to be sufficient and satisfactory. And hence, providing technical and financial support
for improving the production capacity of the factory is critical especially to pullout the factory
from crises.

Recently Addis Ababa city administration has passed the decision to take over the production
facilities of the Mugar Addis Ababa Cement Factory. Following this decision and considering
the availability of huge demand for the quick lime products, precipitated calcium carbonate and
milled powdered lime, CIC have plan to relocate the Grinding Mill of Addis Ababa Cement
Factory to BatuCaustic Soda Factory. In order to make an informed decision on relocating the
plant to Batu Caustic Soda Factory, a technical requirement study is required. To this end CIC
has set up a study team to conduct technical requirement, financial arrangement as well as
environmental and social soundness assessment survey for relocating the plant to BatuCaustic
Soda Factory.

1.2 Scope
Based on the interest and decision of CIC the scope of the study is to survey necessary
requirement to relocate one MCF-Addis Ababa Grinding Mill Plant to Batu Caustic Soda
Factory. The survey mainly focuses on the following areas:

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  Technical Requirement survey (Mechanical, Electrical and control, Civil and structural
work and key professional requirement)
 Logistics (transportation facilities and utilities)
 Financial arrangement assessment (dismantling cost, logistics cost, re-installation cost
and determine the cost of Mill and propose alternative financial arrangement)
 Environmental and social soundness assessment (sustainability, current condition and
demography of the proposed site)

2. Technical Assessment

Technical assessment emphasis more to estimate technical requirements (man power, skill and
professions), to cite transportation and handling requirement, by categorizing technical works
into three main sections to realize dismantling and relocation of the grinding plant.

 complete process of dismantling,

 transportation and
 Re-installation of grinding mill.

Additionally, it also estimates the logistic arrangement to transport to the proposed site and
cost of the plant and financial arrangement to settle.

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2.1. Technical Work Scope
2.1.1 Dismantling
This work mainly focuses on three main section of the plant; Mechanical, Electrical and civil
including structural construction of the plant. Currently the plant is under dismantling of main
parts of plant as seen during the time of survey. Mugher management is already aware of re-
installing one of the two grinding mills at BatuCaustic Soda plant. This created awareness to
dismantle properly in a re-useable and traceable manner during dismantling. However, the teams
assigned for dismantling by MCF-Addis Ababa are not well organized both in quantity and
professionally in consideration to re-installation of the plant.

By this time MCF-Addis Ababa plant dismantling teams were arranged with composition as
follows:

 One Maintenance team leader

 Four mechanical technicians
 Seven Electrical technicians
 Two welders
 Two grease boys
 One plumber and
 Limited number of labors

This arrangement is not sufficient to realize the jobs for proposed objective and complete
dismantling as well as re-installation at required time schedules, because the scopes of works
need additional labor force, skilled workmanship and professional.

2.1.2 Transportation and Logistics

The plant has heavy process machineries and equipment that need sufficient care to meet the
required purpose, avoid accident and equipment damage. Transportation of these machineries
needs heavy trucks, cranes, fork-lift, lifting tools, etc. accordingly this needs to consider the legal
issues for transportation of these equipment and machineries. The logistics also need to be

4
provided from both MCF and BatuCaustic Soda plant in respective to meet intended purpose.
The logistics includes the provision of facilities, spaces and payments.

Collaboration with BatuCaustic SodaMugher Cement Factory has to mobilize equipment and
machinery related with the reinstallation and its parts to proposed site Caustic Soda.In another
way the technical team in Caustic Soda has to unload every equipment and materials according
to their sensitivity and care, store at appropriate placing.

2.1.2.1Equipment and Machineries for Transporting

In order to facilitate ease transporting equipment and machineries are required: despite day to day
hand tools here are some machines;

S.No Machine/tool Capacity Remark

1 Mobile crane Lift Up to 30 tone One on each site

2 Forklift Lift Up to 10 tone One on each site

3 Lowbed truck Carry up to 40 tone One for bothsites

4 Heavy duty trailed truck Up to 40 tone One for both sites

5 Chain block Different capacity

6 Crane cable Different diameter

Table 1 Equipment and Machineries for Transporting

2.1.3 Re-installation

The final and important section of scope of technical work is re-erection of the plant as per
requirement of the process. To implement and realize relocation, the works needs great care,
skilled work man ship and knowledge, different field of discipline and strong logistics.
Therefore, the process has to be considered as a project and needs setting a project management
team. For re-installation of the plant, investigations on the following areas are included and
discussed in this survey study:

5
 1. Products and Process length
2. Space and process suitability
3. Utilities such as, water, power, etc.
4. Environment and social soundness
5. Financial capacity and its arrangement of Batu/ZiwayCaustic Soda factory

It is recommended that the dismantling team has to be assigned on re-installation of the grinding
mill plant at proposed site in order to minimize the gap that resulted from lack of installation
manuals and current condition knowledge (since, the plant is aged and modified in many times).
Additionally, this will increase the skills of in-house professionals and has significant value in
cost reduction.

In addition to pre- assigned technicians, professionals and labor force who have been engaged in
dismantling, the following man power must be added in order to accomplish dismantling and
relocation of grinding mill properly within specified range of time schedule.

 Civil and structural team,

 Engineers
 Mechanical, electrical and electronics technicians
 Welder and
 Fitters/labors

The re-erection process of the plant will be better if implemented by teams from both Mugher
cement and Caustic Soda factory.

2.2 Product and Process Introduction

Lime is calcium containing inorganic mineral composed primarily of oxides, and hydroxide,
usually calcium oxide and/or calcium hydroxide. It is also the name for calcium oxide which
occurs as a product of coal seam fires and in altered lime stone xenoliths in volcanic eject. These
materials are still used in large quantities as building and engineering materials (including
limestone products, cement, concrete, and mortar), as chemical feedstock, and for sugar refining,
among other uses. Lime industries and the use of many of the resulting products date from

6
prehistoric times in both the Old World and the New World. Lime is used extensively for
wastewater treatment with ferrous sulfate.

The whole lime products are extracted from lime-cycle:

Figure 1 lime-cycle
2.2.1. Hydrated Lime

One of the main products with higher demand and still under production by intensive manual
methods. Hydrated lime, a lime product when a precisely controlled amount of water is added to
quicklime, a (violent) reaction ensues with much evolution of heat. In the chemical reaction with
water the lumps of quicklime break down to a dry fine white powder known as hydrated lime or
lime hydrate.

quicklime + (a controlled amount of) water --> hydrated lime (also called lime hydrate)

CaO + H2O --> Ca(OH)2

The existing process line of hydration is primarily not for hydration, it’s for slacking process of
Caustic Soda input, however, there is facility to adopt for hydration. In mean time of the caustic
inline there were trials for using this unit as a process part for hydration. however, finally
unsuccessful and stopped the process and started manually to react quick lime with water on
floor which is not feasible, time consuming and health risk. While inspecting of this unit it needs

7
overhaul maintenance of the hydrator unit and reconditioning of water spray nozzlehas be, so
that, it will become feasible to continue the process and improve production capacity. The
existing hydrator/slacker is a capacity of 2.5 t/h, with this capacity it will be difficult to feed
grinding mill with a capacity of 12.5t/h. however, two prim hoppers (one existing with slacking
unit and the other is hopper with multi-purpose), will solve this issue. On other point since
caustic has abrasion character existing slacker unit need intensive maintenance.

2.2.2 Powdered Lime

Lime is one of the major basic materials. As a collective term it refers not only to natural limes
(CaCO3) and quicklimes (CaO) but also to hydrated limes (Ca(OH) 2). Lime is a highly versatile
material. Quite a number of everyday products are inconceivable without lime. The main lime
applications are in the iron and steel industry, the chemical industry, the building materials
industry and the building trade, the conservation of the environment in terms of fresh water
conditioning, waste water treatment and air pollution abatement, as well as in farming and
forestry.

Limestone lumps crushed in mills, dedusted in separators and separated in size (0-0.5 mm - 0-4
mm). Limestone filler is produced as a coupled product. The crushed limestone sand produced
this way is primarily used in the building materials industry, limestone filler for road
construction.The fineness of the pulverized limestone can be set within (0.02 mm - 4 mm). If
requested the grits can be withdrawn from the grinding process, dedusted in separators and
separated in screening machines to produce limestone sands (0.1 - 1.5 mm). Pulverized
limestones are primarily used as a filler or for flue gas desulphurization, limestone sands for the
production of building materials.

There is a demand for this product but in complain with limited fineness of the powdered lime
size. This will be completely achieved by cement mill with complete separator unit.During the
site investigation; there is an option for production of powdered lime. This can be possible by
using hydrated lime line through extended hopper for feeding limestone using loader. But, in
future another process line will be developed for better utilization of the process. For now, only
the extended belt and new hopper will be enough for production of powdered lime.
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2.2.3 Powdered Magnesium Oxide

Dolomite is an anhydrous carbonate mineral composed of calcium Magnesium Carbonate,

ideally CaMg(CO3)2. The term is also used for asedimentary carbonate rock composed mostly of
the mineral dolomite. Dolomite Powder is double carbonate of calcium and magnesium. It is
sedimentary origin and supposed to have been formed due to alterationof calcium carbonate
sediments or rocks by sea-water rich in magnesia.

One of the products at caustic plant is magnesium oxide mainly from Kenticha quarry and follow
the same process of quick lime. There is demand for this product but transportation and cost for
raw dolomite is becoming higher and currently not under production by the plant. In order to
start production of this product there will be no higher process line change, simply short
diversions belt between mill feed belt and quick lime belt.

2.2.4 Powder PCC/Precipitated Calcium Carbonate/

PCC stands for Precipitated Calcium Carbonate—also known as purified, refined orsynthetic
calcium carbonate. It has the same chemical formula as other types ofcalcium carbonate, such as
limestone, marble and chalk: CaCO3. The calcium, carbonand oxygen atoms can arrange
themselves in three different ways, to form three different calcium carbonate minerals.Combine
the captured carbon dioxide with the slaked lime. Calcium carbonate re-forms, and since it is
insoluble in water, precipitates out.
Ca(OH)2 + CO2 → CaCO3 ↓ + H2O

PCC at caustic factory is formed in reaction of slacked lime product reacted with atmospheric
carbon dioxide. In former times the product is as a bi-product from caustic production but
currently there is requirement for PCC as a filler for paint and hard soap. Within two tothree-
kilometer area there is more than 48,000 m3PCC is accumulated, this artificial quarry is a product
that need only grinding and packing with no need for further processing and transportation.

BatuCaustic SodaFactory product consumers

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 S.No Product Consumers

1. Quick lime - Sugar factory

- Steel furnace
- Gold mines
2. Hydrated lime - Urban potable water
- Industrial waste water treatment
3. Powdered lime - Road construction
- Soil acidity conditioning
4. Magnesium oxide - Laminated boards manufacturing plant

5. Precipitated calcium - Soap and detergent organization

carbonate

Table 2 Batu Caustic Soda factory product consumers

2.3. Utility and Auxiliary Facility

Currently BatuCaustic Soda factory has all of its utility and facility in hand. This utility includes
Electric power, water supply and access to road. The factory is located only 1.5 km from main
road and less than a kilometer from new express road. The following section will discuss other
technical section of utility.

2.3.1 Electric Power Supply System

The existing substation has the following capacity and equipment:

 Transmission line from Adami Tulu EEPCo substation(S/S):

 Distance = 10km.
 Incoming power = 15kV.
 Low Voltage (LV) = 400V.
 Number of transformers = 2, equal capacities.
 Transformer capacity = 1.25MVA.
 Total existing S/S capacity = 2.5MVA.

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  Average power factor = 0.85.
 With all S/S house, switchgear, bus bars, feeding cables, etc. available in good state.
 Standby diesel generators = 2x500kVA = total 1000kVA.
 LV switchgear exist with complete distribution system installed including diesel
generators synchronism & switching units.
Status is good except the energy metering, protection, generators ACB(Automatic Circuit
Breaker), are backward and energy inefficient. In addition, one of the diesel generators and the
diesel generator switching & protection controllers are down presently.

2.3.1.1. New Electric Power Requirement

There are two transformers with capacity of 17.5kV and step down the voltage to 0.4kV electric
supply from EEPCo. However new grinding mill motor is 6kV voltage and as result new
transformer is needed to supply required power demand and new electric supply line has to be
installed at proper and economic location by considering cable length and safety requirement.
Generally, there are two options for installation of electric line. One option is installing coming
transformer near existing transformers and extending to mill through power cables, where the
second option is building new transformer room near the grinding station.The new power
demand with additional cost for the following new components:

Power consumption Remark

S. No. Equipment
in (kW)

1. Belt conveyor drive 18

2. Belt conveyor for mill feeder 3.7

3. Feeder 1.95

4. Grinding mill drive motor 530

5. Separator drive motor 72

6. Screw conveyor drive 5.07 Two

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 7. Air slide conveyor drive 4.1

8. Dust extractor drive motor 36

9. Cell assigner drive motor 1.25

10. Knocking mechanism drive motor 1.8

11. Knocking mechanism geared motor 1.8

12. Mill bucket elevator drive motor 13

13. Air slide fan drive motor 4.1

14. Common Bucket elevator drive motor 15

15. Air slide fan drive motor 7.5

16. Packer machine 4

17. Packer bucket elevator drive motor 13

18. Return Screw conveyor drive motor 2.5

19. Belt conveyor drive motor 5.5

20. Air compressor drive motor 250

Total power requirement 995.34

Table 3 list of Electrical drives for new system

2.3.2 Water Supply

Water supply is from well through pipe line to the plant site storage tanks, where it is pumped to
fire fighting and domestic potable water circulation pipe works. Water cooling tower of 16m 2
with sprinklers of 5.88m3/h was installed and it is in good working condition. Industrial water
supply requirement for the process is achieved from the supply of bore holes and this is the unit
consists of three submersible pumps, water reservoir and central pumping station to plant. Two

12
of the three submersible pumps are reported to be operational and one is down. The bore holes
are found at 85-meter depth and with submersible pump of pumping capacity 6 liters/second.
New submersible pump installation may also be required as the water demand for the new plant
is needed. The industrial water pumped from the ground collected in water tank reservoirs of
capacity 2x 500 M³ and circulates in the cooling tower for cooling application.For new grinding
mill new pipe line installation and water flow and pressure gauges reconditioning and
maintenance may be needed.

2.3.3 Compressed Air Supply

The plant is equipped with four industrial pistoncompressorsfor generation of compressed air
having a capacity of each producing 22 M³/minute with maximum pressure of 6 bars supplying
dry instrumental compressed air for control system and for some pneumatically operating
devices in operational areas however, this unit is very old and less energy efficient system. The
motors power consumption reaches 75 kw each. However, they are water cooled and lubrication
oil consumption currently reaches one liter/day each and also cooling water consumption from 3
M³/h to 8 M³/h.The drying system is not working to supply dry air for the control system.
Currently, technical air is being used also for instrumentation.The piping and instruments are
also very old and less efficient.

The new compressor from MCF-Addis Ababa will completely replace this compressor unit.
Which has capacity 38 m3/min @ 10 bar, 250 Kw. This also have technological and
environmental advantage while meeting the demand sufficiently.

2.4 Proposed Process Length and Layout

Proposed process length and layout is a point in which new process line will be aligned with old
and existing system. Using the existing system include ranging from complete process unit to
partial process section. The survey shows that there is suitability and sufficient space for new
plant.

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2.4.1 Proposed Layout for Process

Figure 2 Proposed Layout for Process

14
 2.4.2 Description of Layout and Machinery Required

The proposed plant layout and machinery will have the following sub units and machineries. The
new machinery is the part of the plant that needs to be newly manufactured both on site and at
caustic workshop incurring new cost. Whereas, the other parts of the plant will be fitted directly
to proposed process layout.

S.no Name of machine Remark

1 New hopper Need to be manufactured newly with capacity >12.5 t/h
2 Belt conveyor Upgrade existing belt conveyor with add. 20m and capacity >12.5 t/h
3 New Chute To be manufactured newly to connect two new belts
4 New Belt conveyor Manufacture new belt conveyor to feed mill with capacity >12.5 t/h
5 Weigh feeder Modify existing feeder belt
6 Grinding mill Install existing cement mill with a capacity of 12.5 t/h
7 Dust precipitator Install dust collector with a capacity of
8 Fan Install ID fan with a capacity of 1500 rpm, 36 KW
9 Bucket elevator Install existing circulating Bucket elevator
10 Separator Install existing separator a feed rate 12.5 t/h, 72 kw
11 Bucket elevator Install existing common Bucket elevator
12 New Storing bin Newly manufactured at least can store one day product (300 tone)
13 Bucket elevator Install existing packing Bucket elevator
14 Temporary bin Install existing HAVER temporary packer
15 Packer Install existing 4 spout HAVER roto packer
16 New Unloading belt conveyor Newly manufactured with complete structure

Table 4 Description of proposed Machinery Required

15
2.4.3 Proposed Layout for Civil Work

Figure 3 Proposed Layout for Civil Work

16
2.4.4 Proposed Process Line

Figure 4Proposed Process Line

17
2.5 Limitations
2.5.1 Mechanical Machines and Equipment

Every mechanical machine has its own technical limitations. Most of MCF-Addis Ababa plant
machine limitation rises from technological aging. Specifically, separator and dust collector with
knocking unit are technologically outdated, even though these machines where working until
dismantling. The new part of the plant will be manufactured both on site and at caustic workshop
incurring new cost.

Spare part arrangement for some of mechanical equipment may be difficult due to technological
change in recent grinding technologies.Additionally, due to aging of the equipment, on some
mechanical component modification and reconditioning will be expected.For some of the
mechanical equipment to get spare par may be difficult due to technological change in recent
grinding technologies.

2.5.2 Electrical and Control Mechanism

On the side of electrical and control mechanism, the survey so farshows, some of the electrical
and components of control mechanism in power station can be reused by replacing the wiring
system with care. Most of the control system in grinding station cannot be re used due to
technological outdate of control mechanisms, aging and has no traceable drawings. However,
there is a potential to build new “conventional relay control system” which can partially
upgrade the existing control system with reduced new process design and number of drives.
Since the new system need new design itis recommended that starting from very beginning (right
now) that is must to identify electric and control mechanism components that can be reused
byformulating a team to study this new control system.

The control system designs the so called, conventional relay control system for power supply of
the following drives needed to be studied and new components such as power contactor, control
relay, bi-metal, sensors…etc. that incur additional cost.

18
 Power consumption Remark
S. No. Equipment
in (kW)

1. Belt conveyor drive 18

2. Belt conveyor for mill feeder 3.7

3. Feeder 1.95

4. Grinding mill drive motor 530

5. Separator drive motor 72

6. Screw conveyor drive 5.07 Two

7. Air slide conveyor drive 4.1

8. Dust extractor drive motor 36

9. Cell assigner drive motor 1.25

10. Knocking mechanism drive motor 1.8

11. Knocking mechanism geared motor 1.8

12. Mill bucket elevator drive motor 13

13. Air slide fan drive motor 4.1

14. Common Bucket elevator drive motor 15

15. Air slide fan drive motor 7.5

16. Packer machine 4

17. Packer bucket elevator drive motor 13

18. Return Screw conveyor drive motor 2.5

19. Belt conveyor drive motor 5.5

19
 20. Air compressor drive motor 250

Total power requirement 995.34

Table 5 Total power requirement for proposed process

2.5.3 Civil and Structural Limitations

The complete civil work will need new replica of existing foundations and steel structure for
additional work at proposed site. Were very limited drawings about the current information, this
section of work will need to some extent new design. On other side, the structural steel will be re
used by repairing damages while dismantling. Others very deteriorated steel structure and
cladding like Asbestos cover will be replaced with new steel structure and EGA sheet cladding.
The same as foundation/sub-structure works super structural drawings are also limited so that
based on existing structure lay out additional design work will need to be executed.

There is no geotechnical investigation document available at proposed site that would be

investigated during the factory construction of Caustic Soda. Without under ground investigation
constructing this type of plant is not recommended because geotechnical soils Investigation
reports indicate whether a particular site is suitable for the construction of a permanent or
temporary structure. The idea of such investigation is to ensure that the allowable soil bearing
Capacity on the soil and the possibilities of settlement in the foundation after loads have been
applied on it for a period of time and other stability and foundation problems that can occur. As
there is planned to install grinding mill that a machine has high vibration load needs proper
underneath soil investigation. If there is soil investigation already done for existing plant it will
help to know some information about geo technical condition of the proposed foundation area.

2.5.4 Realization and Sustainability

20
In order to successful implementation of this project, it is recommended that Mugher cement
factory will own the project and re-install, commission and transfer by training technician and
operators of BatuCaustic Soda team. This is due to well organized and experienced in cement
grinding plant operation relative to Caustic Soda factory. Moreover, Mugher factory technicians
and professionals have history and maintenance experience on the grinding plant, that can help
the complete process of dismantling and re-installation of the plant.

However, the realization of this project will be successful through well-organized project team,
skilled man power, committed higher management and strong logistics.

21
 2.6. Mechanical Plant Machineries Specification and Cost
CIC-MUGHER CEMENT FACTORY ADDIS ABABA FACTORY
FAIR VALUE AND MACHINERY DISCRIPTION
IFRS- FAIR MARKET
S.No NAME CODE TYPE DISCRIPTION VALUE
RAW MATERIAL STATION 5000
conveying distance with 707,074.26
5.1 Belt Conveyor 5-0001
50, 000 mm
5.2 Raw material Conveyer Belt Motor for Mill 6000 5-0003 18 Kw, 965 rpm 48,094.79
5.3 Raw material Conveyer Belt GearboxMill 6000 5-0005 No name plate 15,157.43
SUB TOTAL 770,326.48
CEMENT MILL STATION 6000
6.1 Gypsum material Bin 6000 6-0001 40m3 501,863.82
6.2 Gypsum Feeder (geared motor + Belt) 6-0002 Type:040850/2 100 RPM, 1.95 kw 10,677.04
6.5 slipring motor liquid resister starter 106,738.74
6.6 screw Conveyer 2(Return Screw Conveyor) 6-0005 9,503.09
screw Conveyer 1 (Return Screw Conveyor) 1 Gear Box Type: FBo19’5, Model 4.7 KW, input 950rpm
6.7 6-0006 4,205.12
No. 17929-04 output 34.6 rpm
6.8 screw Conveyer (Return Screw Conveyor) 1 Motor 6-0007 Type = 2AZ255-3-35 6.8 HP= 5.07 kw 13,477.11
6.9 screw Conveyer (Return Screw Conveyor) 2 6-0008 9,503.09
screw Conveyer (Return Screw Conveyor) 2 Gear Box Type: FBo19’5, Model 4.7 KW, input 950rpm 4,205.
6.10 6-0009
No. 17929-04 output 34.6 rpm 12
6.11 screw Conveyer (Return Screw Conveyor) 2 Motor 6-0010 Type = 2AZ255-3-35 6.8 HP= 5.07 kw 13,477.11
6.12 Main Drive Motors 530 kw 6-0003 6APZ 263-4 530kw, 990 rpm 665,216.48
6.13 Main Drive Gear Box 6-0004 AV 70 output 158 rpm 630,186.20
6.14 Cement Mill with Components 6-0005 12.5 ton /hr. 4,885,477.51
6.15 Oil pump motor 6-0006 Type = AZ233 6B5 RPM = 940 6,565.77
6.16 Separator 6-0007 2ADZ 467-4 feed rate 12.5mt/hr. 315,034.58

22
6.17 Separator Motor 6-0008 72 kw 67,566.99
6.18 Dust Extractor fan (ID fan + chimney) 6-0009 116,969.90
6.19 Dust Extractor fan motor 6-0010 2ADZ357-4 1500 rpm, 36 KW 35,040.49
6.20 Dust Extractor / Knocking mechanism 6-0011 2AZ VST-Fs 2.5 HP, 910 rpm 371,141.19
6.21 Dust Extractor/ Knocking/ geared motor 7-0013 2.5 hp 7,982.60
6.22 Cell Assigner Geared motor 6-0012 2AZ155/6B5 1.5 hp, 1.12 kW 5,909.20
6.23 Common elevator 6-0013 218,172.14
6.24 Common elevator Motor 6-0014 Type = FB024 KW = 15 6,842.23
6.25 Common elevator Gear Box 6-0015 Type = FB024 N = 7 KW 5,684.69
6.26 Cement Elevator for mill 1 6-0016 12.5 ton/hr. 315,460.52
6.27 Cement Bucket Elevator Motor 6-0017 3AZ 265-4 17.5 HP 24,903.48
6.28 Cement Elevator Gear Box 6-0018 Type = FBo 30 9 Kw 28,118.34
6.29 Air slide Fan with motor 6-0021 10 m3/min, 4.1 kw 16,535.38
6.30 Air slide Fan with motor 6-0022 15 m3/min, 7.5 kw 23,149.53
6.31 Air slide (common elevator -silos) 6-0023 13,686.29
6.32 Electric control panel 6-0024 95,999.06
8,529,292.81
SUB TOTAL
CEMENT STORAGE STATION 8000
8.6 Air slide (silos common) 8-0005 29,893.58

8.7 Lower Silos Root blower -1 8-0006 4.1 KW 13,699.14

8.17 Electric control panel 8-0014 16,438.97
SUB TOTAL 60,031.69
PAKING STATION 9000
9.1 PACKER MACHINE 9-0001 Haver & Boecker 4 filling spouts 2,157,073.99
9.2 Elevator Motor 9-0002 3AZ 265-4 17.5 HP 12,926.66
9.3 Elevator Gear Box 9-0003 FBo 30 9 Kw 28,134.63
9.4 Bucket Elevator 9-0004 460,347.11

23
9.5 Vibrator screen 9-0005 739957 216,539.87
9.6 short screw conveyor Geared Motor 9-0006 D145/176 2.5 KW 10,645.49
9.7 Screw conveyers 3 set 28,509.28
9.8 Return Screw conveyer (01) motor 9-0007 YIL2 M-4 4.0 KW 2,471.27
9.9 Return screw conveyer (02) motor 9-0008 D165/14 1.5 Kw 2,375.77
9.10 Discharge Belt Geared Motor 9-0009 3.7 KW 8,173.41
9.11 Chain drive Geared Motor 9-0010 1.1 Kw 5,252.62
9.12 Belt conveyer(shot) 100,225.16
9.13 Short belt geared motor 9-0011 5.5 KW 12,129.40
9.14 Belt conveyer (Long) 97,313.24
9.15 Long belt motor 9-0012 3.7 KW 3,163.23
Germany/ 38 m3/min @ 10 bar, 626,258.
9.16 Air Compressor 9-0013
L250-10 250 Kw 86
9.17 Air Tank @ packing 9-0014 5000 lt @ 11 bars 70,607.67
9.18 Air Tank @ packing 9-0015 1000 lt @ 11 bar 24,434.01
9.19 Scale balance 9-0017 N-200 1000 -625kg 45,239.18
9.20 Electric control panel 88,877.99
SUB TOTAL 4,000,698.84
POWER STATION 10000
10.4 High voltage oil Transformer 15KV/6 KV c/m 01 10-004 630 KVA 1,613,116.46
COMPACT SUBSTATION,1000 KVA, 15/0.4KV New
10.13 compressor & c/packing 10-013 1000 KVA 556,996.12
Oil circuit breaker 15 KV power IN TAKE
10.15 10-015 POWER15KV 301,936.60
10.16 Oil circuit breaker 6KV cement mill 01 10-016 630 KVA 201,291.06
10.18 Oil circuit breaker 0.4KV LOW voltage 10-018 1000KVA 201,291.06
10.19 Knife switch 15 KV / 3phase 10-019 15KV/ 800A 2,990.62
10.21 Knife switch 6 KV 10-021 15KV/ 800A 3,156.77

24
10.22 Knife switch 0.4 KV 10-022 15KV/ 800A 3,156.77
Bus bar Type = T 11 3 X 15KV/ 800A
10.23 10-023 58 X 100 V 10X80mm 742,933.29
10.27 Power factor correction (Capacitor Bank) 10-027 Type = RBW 150 3phase / 500V / 500 A 247,021.38
1,100,645.29
Electric Cables
SUB TOTAL 4,974,535.42
Newly manufactured 1,500,000.00
19,834,885.24
TOTAL

Table 6 Mechanical Plant Machineries Specification and Cost

25
 2.7 Civil Bill of Quantity
Civil work buildings and structure BoQ
1 Building /Cement Mill House/ Area 340m2
Unit Unit of
S/No Description Weight Measure Quantity Unit Price Total Amount Remark
3
1 Excavation m 446.40 65.00 29,016.00 BoQ and Cost of material
is taken from IFRS
2 Mass Concrete (C15) m3 55.80 1,900.00 106,020.00
valuation
3 RCC (C25) m3 153.98 2,800.00 431,144.00
4 Rebar Kg 18,675.40 45.00 840,393.00
5 HCB 20cm m3 106.00 290.00 30,740.00
2
6 EGA sheet m 477.76 520.00 248,435.20
Chaqured Plate 3mm thick,
7 L=242.9m 24.02 Kg 5,834.46 68.72 400,944.09
8 I-Section (550x250mm, L=14m 112.00 Kg 1,568.00 68.72 107,752.96
9 I-Section (350x140)mm, L=9.5m 52.40 Kg 510.90 68.72 35,109.05
10 I-Section (300x140)mm, L=52m 46.00 Kg 2,392.00 68.72 164,378.24
I-Section (225x110)mm,
12 L=19.6m 31.10 Kg 609.56 68.72 41,888.96
13 I-Section (250x125)mm, L=20m 37.30 Kg 746.00 68.72 51,265.12
14 I-Section (200x100)mm, L=36.4 24.20 Kg 880.88 68.72 60,534.07
15 I-Section (225x110)mm, L=6 31.10 Kg 186.60 68.72 12,823.15
16 I-Section (200x200)mm, L=6 37.30 Kg 223.80 68.72 15,379.54
17 I-Section (150x150)mm, L=234 34.60 Kg 8,096.40 68.72 556,384.61
19 I-Section (175x85)mm, L=177 19.60 Kg 3,469.20 68.72 238,403.42
22 I-Section (150x75)mm, L= 590.4 15.00 Kg 8,856.00 68.72 608,584.32
26 I-Section (125x70)mm, L= 10.14 13.30 Kg 134.86 68.72 9,267.72
27 I-Section (100x50)mm, L= 10.8 8.90 Kg 96.12 68.72 6,605.37

26
 28 I-Section (75x50)mm, L= 200 6.10 Kg 1,220.00 68.72 83,838.40
29 C-Section (175x75)mm, L=196.6 19.60 Kg 3,853.36 68.72 264,802.90
30 C-Section (150x75)mm, L=32 16.80 Kg 537.60 68.72 36,943.87
32 C-Section (125x65)mm, L=437.4 13.10 Kg 5,729.94 68.72 393,761.48
33 C-Section (100x50)mm, L=60 9.56 Kg 573.60 68.72 39,417.79
34 C-Section (75x40)mm, L=170 7.14 Kg 1,213.80 68.72 83,412.34
35 L-Section (80x80x8)mm, L=224 9.60 Kg 2,150.40 68.72 147,775.49
36 L-Section (50x50x5)mm, L=594 3.80 Kg 2,257.20 68.72 155,114.78
37 L-Section (40x40x4)mm, L=64.5 2.40 Kg 154.80 68.72 10,637.86
Sub Total 5,210,773.72
2 Cable Duct /Length: 102m/
Unit Unit of
S/No Description Weight Measur. Quantity Uint Price Total Amount Remark
Cost of material is
1 Concrete (C15) m3 36.60 1,900.00 69540 taken from IFRS
2 Rebar Kg 1,862.10 45.00 83794.5
Sub Total 153,334.50

3 Belt Conveyor Approximately 30m length, (30*1.5) = Area 45m2

Unit of
S/No Description Measure Quantity Unit Price Total Amount Remark
Cost of material is
1 Excavation m3 117.18 65.00 7,616.70 taken from IFRS
3
2 RCC (C25) m 17.60 2,800.00 49,280.00
3
3 Mass Concrete (C15) m 8.40 1,900.00 15,960.00
5 Rebar Kg 200.00 45.00 9,000.00
6 EGA Sheet -300 m2 45.00 520.00 23,400.00

27
 Round Steel Pipe Ø 127mm Thick
7 4.5mm 13.59 Kg 2,215.17 90.00 199,365.30
8 Chaqured Plate 3mm, A=60 24.20 Kg 1,452.00 100.00 145,200.00
9 RHS (70*50*3)mm, L= 76.6 5.19 Kg 397.55 100.00 39,755.40
10 Angle Iron (50*50*5)mm, L= 51.0 3.80 Kg 193.80 100.00 19,380.00
11 I-Section (150*75)mm, L= 23.5 15.00 Kg 345.00 100.00 34,500.00
12 I-Section (200*100)mm,L= 54 24.20 Kg 1,306.80 100.00 130,680.00
13 C-Channel (300*90)mm, L= 69.45 36.30 Kg 2,521.04 100.00 252,104.00
Sub Total 926,241.40
4 Type of Asset: Cement Mill Foundation Basement No-1
Building ID No: B-
S/No Description Unit Unit of Quantity Uint Price Total Amount Remark
Weight Measur.
1 Excavation Pit 192.00 65.00 12,480.00 Cost of material is
3
m taken from IFRS
2 Cart away m3 192.00 100.00 19,200.00
3
3 Concrete (C30) m 126.75 3,500.00 443,625.00
4 Rebar Kg 4,246.86 45.00 191,108.70
5 Form Work m2 144.00 200.00 28,800.00
Sub Total 695,213.70
5 Hoper Foundation (4*3 area and 3m Depth
Isolated foundation column 40X40cm depth 50 cm and foundation 100x100cm and 50cm depth
S/No Description Unit Unit of Quantity Unit Price Total Amount Remark
Weight Measure.
1 Excavation Pit 9.00 65.00 585.00 Cost of material is
3
m taken from IFRS
2 Cart away m3 9.00 100.00 900.00

28
 3 Concrete (C30) m3 2.50 3,500.00 8,750.00
4 Rebar Kg 270.00 45.00 12,150.00
5 I-Section (400*140) mm, L=12 61.50 Kg 738.00 68.72 50,715.36
6 U-Chanel (250*80) mm, L=52.06 30.60 Kg 1,593.04 68.72 109,473.71
7 Form Work m2 10.00 200.00 2,000.00
Sub Total 184,574.07
6 Packer Foundation (2*2 area and 3m depth)

Isolated foundation column 40X40cm depth 50 cm and foundation 100x100cm and 50cm depth
Unit Unit of
S/No Description Weight Measure Quantity Unit Price Total Amount Remark
Cost of material is
1 Excavation Pit m3 9.00 65.00 585.00 taken from IFRS
3
2 Cart away m 9.00 100.00 900.00
3
3 Concrete (C30) m 2.50 3,500.00 8,750.00
4 Rebar Kg 270.00 45.00 12,150.00
5 I-Section (400*140)mm, L=12 61.50 Kg 738.00 68.72 50,715.36
6 U-Chanel (250*80)mm, L=16 30.60 Kg 489.00 68.72 33,604.08
7 Form Work m2 10.00 200.00 2,000.00
Sub Total 108,704.44
S/No Transformer room /15 KV/ 8x4
1 Site clearance m2 65.34 25 1,633.50
2 Excavation m3 51.62 65 3,355.30
3 Backfilling m 3
26.90 200 5,380.00
4 Compaction m2 26.90 200 5,380.00
5 Concrete work m3 21.26 3500 74,410.00 C-30

29
 6 Reinforcement kg 1,722.54 45 77,514.30
7 Block m2 88.50 290 25,665.00
8 Plastering m2 177.00 125 22,125.00
9 Gypsum m 2
177.00 80 14,160.00
10 Painting m2 88.50 45 3,982.50
11 Door m2 9.00 1000 9,000.00
12 Window m 2
3.60 1000 3,600.00
13 Electric installation -
14 Fluorescent lamp pcs 2 350 700.00 3x18W AC220V
10A
single Switch Pcs 2
15 97.9 195.80 250V(80X80X25mm)
13A 250V,
Socket point pcs 2
16 300 600.00 Size:80x80mm
17 Wire m 20.00 180 3,600.00 1x2.5 mm2
18 Form Work m2 481.40 200 96,280.00
Sub Total 347,581.40
Steel structure from existing 4,617,845.42
New civil work 3,008,577.81

Table 7 Civil work buildings and structure BoQ

30
 2.8 Summary ofInvestment Cost
S. No. Type of cost Investment purpose Cost

1 Loan in form of asset from Mugher Mechanical and electrical 18,334,885.24

Cement factory
Structure 4,617,845.42

Sub total 22,952,730.66

2 Additional cost incurred Civil work 3,008,577.81

Mechanical component 1,500,000.00

Sub total 4,508,577.81

Total 27,461,308.47

Table 8 Total investment cost

From total investment cost some of this cost will be paid back to Mugher in long term where
there are additional new costs in cash for newly constructing the plant.

31
 3. Market and Financial Analysis Summery
3.1 Productions to Meet Capacity
s.no Product Tone/year Per. (100%) Remark

1. Powdered lime 12,360 40 % *

2. Hydrated lime 9000 30 % **

3. Magnesium oxide 4635 15 % ***

4. precipitated calcium carbonate 4635 15 % ****

Total 30,630 100%

Table 9 Productions to Meet Capacity

NB:

*Currently higher demand but the capacity and fineness cannot meet by mill but if the
proposed mill is installed there is an opportunity even greater

**There is higher demand for this product however, the quick lime kiln capacity is
36.6t/day and slacker capacity is 2.5t/h, this wouldn’t feed the grinding mill capacity
12.5t/h.

***Dolomite, Raw material for magnesium oxide, is not available nearby but the grinding
mill will be able to produce the product.

**** Powdered precipitated calcium carbonate /PCC/ is about 48,000 m 3 near the factory
and does not need further transportation and processing except excavation and feeding to
mill, but the demand for this product is not further studied.

32
3.2 Market Study Summery
Calcium carbonate (CaCO3) is imported to the Ethiopian market from a number of countries. The
imported quantity and value of calcium carbonate covering the period 2006-2014 is 6,622
tone.Generally, during the period 2006-2014, import of calcium carbonate had an annual average
growth rate of 15.61%.

The demand projection of the above basic chemicals by considering the last three years
consumption is as follows.

2015 -2019 production

S.No. Products UOM
2015/16 2016/17 2017/18 2018/19
1. Hydrated lime ›› 151 246 262 268.00
2. Magnesium oxide ›› 80.5 --- -- ---
3. Precipitated calcium carbonate ››
4. Powdered lime
Table 10 demand projection

The annual demand of raw materials, auxiliary materials and their costs at full capacity operation is
depicted in table below.

S/No. Items UOM Qty. Unit Price Total Price

1 Quick Lime Ton 7200 4950 35,640,000

2 Lime stone Ton 12360 670 8,281,200

3 Precipitated calcium carbonate Tons 4635 0 0

5 Dolomite Tone 4635 2500 11,587,500

4 Packing Materials Pcs 576600 16 9,225,600

Total 64,734,300
Table 11 Annual demand of raw materials
Annual Utilities Consumption

S/No. Description UOM Consumption Unit Cost Total Cost(Birr)

1 Electric Power KWH 2,460,480.48 0.9969 2,452,852.99

33
2 Water M3 20,000 10.00 200,000

Total 2,652,852.99

Table 12 Annual Utilities Consumption

Estimated Selling Price

S/ Item UOM Quantity Unit Price (Birr) Total Price (Birr)

No.

1 Hydrated Lime Tons 9000 7,000.00 63,000,000.00

2 Magnesium oxide Tons 4635 11,000.00 50,985,000.00

3 PCC Tons 4635 3,000.00 13,905,000.00

4 Powdered lime Agri-Lime Tons 12,360 3000.00 37,080,000.00

24,000 164,970,000.00

Table 13 Estimated Selling Price

Capital Requirement (Project cost)

S/No. Items Cost (Birr)

1 Fixed Assets

1.1 Buildings & Civil works 7,626,423.23

1.2 Machinery &Electrical Equipment 18,334,885.24

1.3 Newly constructed machine component cost 1,500,000.00

Total Fixed Assets 27,461,308.47

2 Operating cost

2.1 Pre-operating expenses/reinstallation and sustainability 2,133,488.52

cost/
3 Working Capital

3.1 Value of local Raw Material 64,734,300.00

3.2 Total expenses per year* 43,029,839.40

Total Working Capital 107,764,139.4

34
 Grand Total 137,358,936.39

Table 14 Capital Requirement (Project cost)

*Total expenses include Total Selling & Marketing Expenses and General & Administrative
Expense. Considering there will be no need for additional man power and facility for operating
the grinding mill.

35
 Discounted cash flow total capital investment for 10 years (Birr)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 year 9 year 10

Sales 123,727,500.00 140,224,500.00 164,970,000.00 164,970,000.00 164,970,000.00 164,970,000.00 164,970,000.00 164,970,000.00 164,970,000.00 164,970,000.00
Total cash out -
flow 137,358,936.39
Total Cost of
Goods Produced 91,580,564.40 98,053,994.40 107,764,139.40 107,764,139.40 107,764,139.40 107,764,139.40 107,764,139.40 107,764,139.40 107,764,139.40 107,764,139.40

Profit bef. tax 32,146,935.60 42,170,505.60 57,205,860.60 57,205,860.60 57,205,860.60 57,205,860.60 57,205,860.60 57,205,860.60 57,205,860.60 57,205,860.60

Less: Income Tax 4,822,040.34 6,325,575.84 8,580,879.09 8,580,879.09 8,580,879.09 8,580,879.09 8,580,879.09 8,580,879.09
Add:Deprec.
expense 2,989,079.30 2,989,079.30 2,989,079.30 2,989,079.30 2,989,079.30 2,989,079.30 2,989,079.30 2,989,079.30 2,989,079.30 2,989,079.30
Increase in
-18,357,203.80 18,357,203.80 18,357,203.80 18,357,203.80 18,357,203.80 18,357,203.80 18,357,203.80 18,357,203.80 18,357,203.80 18,357,203.80 18,357,203.80
working capital
Discounted Cash -
flow 155,716,140.19 48,671,178.35 57,191,212.85 69,971,264.60 69,971,264.60 69,971,264.60 69,971,264.60 69,971,264.60 69,971,264.60 78,552,143.70 78,552,143.70
NPV(Birr)10% 527,078,126.04 (107,044,961.83) (49,853,748.98) 20,117,515.63 90,088,780.23 160,060,044.84 230,031,309.44 300,002,574.05 369,973,838.65 448,525,982.35 527,078,126.04
IRR (%) -13% 19%
Payback
Period(Years)@10
% 2.44

Table 15 Discounted cash flow total capital investment for 10 years

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 4. Estimated Schedule for Project Implementation

Overall Project progress and schedule FROM OCT 1 to Time period

Feb 30 2019 6 MONTHS
S. No. Item Description Wt in % S O N D J F

5.0%
1. Engineering & Design
20.0%
2. Transportation and mobilization to Site
30.0%
3. Civil Construction

10.0%
4. Manufacturing of Plant & Machineries

15.0%
5. Mechanical Erection

Electrical and Instrumentation 15.0%

6.
Installation
2.0%
7. No Load Trials
2.0%
8. Commissioning
1.0%
9. Training of Owner Personal
100.0%
Total

Table 16 Estimated Schedule for Project Implementation

Every project is required to be completed in a particular duration. Since delay in completion of
project means increase in construction cost due to rise in Prices, payment of Overhead expenses
include depreciation of equipment, supervisory expenses, accommodation expenses, light, water,
power and insurance expenses etc. so that to minimize cost of construction and to complete as
planed above CIC has to be set up project team that lead by project manager from the beginning
to completion of the project.

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 5. Environment and Social Soundness

An Environmental Impact Assessment is a formal method of judging the impact that any new
developmental project would have on the environment and its constituents. This can include
changes that the project would create in the physical aspects of existing geography, chemical
changes to the atmosphere including air and water, biological changes that affect plant, animal
and human life, cultural impact of a project on the society in the area, and other socio-economic
effects that the project can have.

This plant installation will be implemented only to grind the selected four products that MgO,
Powder lime, hydrated lime and Precipitated Calcium Carbonate in pre -existing factory
CausticSoda. Which have no such adverse impact that explained above that changes to the
environment like changes to existing geography,biological changes and dislocation of society at
all.

The proposed plant has no significant adverse impact to the environment. However, when
grinding mill is installed there will be dust emission from four selected products to the
environment, due to existing dust extractor is technologically outdated and not efficient so it may
need to upgrade this dust control system in the future.

Pcc /precipitated calcium carbonate by product of Caustic Soda now a day become pollutant and
take commercial place of Ziway city so that this study is also concerned on this to consume by
the factory and removing from the environment by changing it to commercial product to the
plant Caustic .By this it has positive advantage for the environment and by creating work for the
community has social benefit.

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 6. Conclusion and Recommendations

6.1 Conclusions

Generally, this proposal shows the proposed site for relocation has suitable area, access for utility
and infrastructure, most of mechanical and Electrical parts can be operational and reused
moreover, structural steels can be re used with replication of civil works. So that the project is
technically possible to relocate and re-install at proposed site Caustic Soda Factory even
thoughthere are limitations that can be addressed through proposed ways of mitigation so far in
the study. The stockholders (Mugher cement Factory, Caustic Soda Factory and Chemical
Industry Corporation) need to make an agreement with in common interest.

The financial assessment shows that re installation of the grinding mill is financially feasible and
economically viable from financial point of view.Since, there is positive Net Present Value
(NPV) and the investment's IRR is 19% which is higher than the current 11% available at Bank
for loan. Which is the rate that makes the present value of the investment's cash flows equal to
zero. From a purely financial standpoint.

6.2 Recommendations

Based on technical assessment the following unit can be upgraded in the future

1. Separator and classification technology and efficiency

2. Electrical control system to more automated system
3. Slacker unit efficiency and capacity improvement
4. Quick lime production capacity improvement

This recommendation needs farther study so that there will be an higher opportunity for untapped
market in lime products.

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Reference

1. CIC-Mugher Cement Factory IFRS documents, 2016-2019.

2. Caustic soda Factory June 30 2019 Financial Report
3. PPESA Feasibility Study For The Establishment Of A New Caustic Soda Manufacturing Plant
A.A

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