Company name Sandi Tropical Fruit Processing Company LTD.Contact Person 洪一能 (Didier SANON)Title General ManagerAddress Bobo Dioulasso (Burkina Faso)Telephone 09 1952 4946 (temporarily in Taiwan)Faxe-mail sanondidier@yahoo.fr

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Project Summary

Subsector Agribusiness

Location Bobo Dioulasso, BURKINA FASO

Project Cost 308,581 $ US

Project Type Processing, Technical & Marketing, Services &

Direct investment in Agribusiness

Project Executing Firm/Agency SANDI TOPICAL FRUIT PROCESSING

COMPANY LTD.

Funding Agency Not Identified

1 INTRODUCTION

1.1. Project objectivesSANDI TROPICAL FRUIT PROCESSING COMPANY LTD. takes up the

following objectives:

From the local fruits as basic products, process juice, jam and later

intend to process woody plants, dried vegetable and fruits products

Local marketing and exportation of the products

Vulgarization and promotion of the processed local fruits products

Development of the farming potential and participate actively to the

fight for the “food self-sufficiency” in BURKINA FASO.

Support the research and training, then create employments

In general, exert any kind of activity such as agriculture, industrial,

commercial, financial, real estate, educational; all activity that is

tightly related to social aims, improvement of the life condition of

rural population and above all, contribute effectively to the

development of Burkina Faso.

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1.2 Proposed capacity

The proposed fruit Processing Unit has a maximum capacity of

processing 1 tons of fruit per hour. In the following table is summarized the

production capacity trend for the first five-year.

Five years estimates of the capacity of production

Designation 2007 2008 2009 20010 2011Capacity of production of juice (L) 728 000 728 000 728 000 728 000 728 000

Capacity of production of jam (Kg) 234 000 234 000 234 000 234 000 234 000

2 HUMAN RESOURCE REQUIREMENTS

The proposed Seed Processing Unit requires the following human resources/staff:

Positions Required Salary per Month

(US $)

Salary per Annum

(US $)

Chief executive officer 1 272.73 3,272.76

Accountant 1 154.55 1,854.60

Marketing Manager 1 163.64 1,963.24

Sales Officer 3 127.27 4,581.72

Plant Manager 1 145.45 1,745.40

Plant Operator 5 63.64 3,818.40

Store Keeper 1 127.27 1,527.24

Auxiliary (Peon/Office Boy) 1 63.64 763.68

Security Guard 2 45.45 1,090.80

Laboratory Technician 2 145.45 3,490.80

Total 18 2,009.09 24,109.04

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3 MACHINERY & EQUIPMENT DETAILSThe type of equipment needed for the fruit Processing Unit is as follow:

N0 Equipment Item/Capacity Q’ty Cost ($ US)

1 Rotary washer GHJ-01/1000 Kg/H 1 8,0002 Washing tank elevator GHJ-01/1000 Kg/H 1 1,5003 Trimming table GHC-06 1 4,5004 Crusher GHJ-03/1000 Kg/H 1 3,6005 Pulper-Finisher GHJ-06 /1000 kg/H 1 11,0006 Extractor GHJ-07/ 600 Kg/H 1 11,8007 Raw juice tank 1000 L 1 1,5008 Mixing tank 1000 L 3 sets 13,0009 Centrifugal separator GHJ-08/3HP 1 4,80010 Homogenizer GHJ-09 / 1000

L/10 HP1 12,000

11 Jacketed steam kettle GHC-19/ 2 HP 2 sets 11,00012 Tubular Type Flash Pasteurizer GHJ-10 (1000L/H) 1 11,50013 Stainless steel pump 2HP 4 sets 5,20014 Sanitary pipes, fitting and valves 38 mm Φ 1 9,00015 Automatic Bottle Rinser Filer and

Capper(*)GHB-06 37,500

16 Semi-automatic seamer GHC-11 / 20-30 cans/Min

7,500

17 Semi-automatic empty can washer 3,00018 Horizontal retort & Pressure cooler GHC-13 / 320 cans 1 12,50019 Automatic packing making machine

(*)GP-254/402/001T 3 sets 11,812

20 Automatic Label Making Machine GHC-21 1 25,000Jet coder GHM-03 1 8,400

Total 214,112 Mentions with the mark (*) are products from上海金步机械科技发展有限公司

(SHANGHAI JINBU MACHINERY SCL＆TECH DEVELOPMENT Co.,Ltd)ADD: No171 linsheng Road Tinglin town Jinshan District Shanghai China PC: 201505TEL: 0086-21-67232721 FAX: 0086-21-67232721

All the other machines are from喬泓實業股份有限公司 (GEO HON ENTERPRISES CO., LTD)

NO.9, 7 TH TAY YII ST., RENDE TOWNSHIP, TAINAN HSIEN, TAIWAN TEL: 886-6-2492325 FAX: 886-6-2492324

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The choice of the two companies stems from the accurate screening and

analysis of the offers made by several companies suppliers of fruit

processing machinery and equipments. GEO HON ENTERPRISES CO.,

LTD and SHANGHAI JINBU MACHINERY SCL＆TECH

DEVELOPMENT co., Ltd. appear as the best choice regarding the

combination of the price-quality of their products. These two factors are

considered fundamental for the completion of this project. Accordingly,

further decisions related to the purchase of machines or equipment will be

discussed with the said companies.

Hereby, I, Didier SANON, agree to keep all confidentiality of the prices

of the machines and equipments from

GEO HON ENTERPRISES CO., LTD and SHANGHAI JINBU

MACHINERY SCL＆TECH DEVELOPMENT co.,Ltd.

I guaranty not to use the following informations for any other

purpose than only the analysis of the offers for making further decisions

concerning this project, directly with the concerning companies. The

respect of the confidentiality is valid for the investors as well.

4 INFRASTRUCTURE REQUIREMENTSInfrastructure requirements Cost ($ US)

Production hall including quality control laboratory 11,200

Office 3,000

Storeroom 6,500

Boundary wall with gate 3,500

Land acquisition for fruit production 2,000

Total 26,200

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5. PROJECT ECONOMICS

5.1 Project cost

The cost of the project will be as follow

Head Amount (US $)

Fixed cost 1,818.18

Land & building 26,200

Machinery 214,112

Furniture & Fixture 918.18

Computer & Accessories 2,500

Vehicles 18,500

Working capital 44,532.95

Total capital cost 308,581

5.2. Project Return The payback period (years) of the project is estimated for five years

from the beginning of the activities of the company. The company is totally

opened to further discussions with the funding institute about the other

conditions related to the fund return.

Determination of the working capital (US $)

2007 2008 2009 2010 2011

Sales revenues 570,395.45 649,235.45 777,848.18 926,370.00 1,074,891.82

Working Capital

Fund (WCF) 44,532.95 108,205.91 129,641.36 154,395.00 179,148.64

Fluctuation of

the WCF

47,532.95 60,672.95 21,435.45 24,753.64 24,753.64

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5.3. Project status/TimelineIdeal time frame for the project is as follow:

2006 2007

1 Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2Approval applicationprocedures

3 Fund raising

4Construction of the processing plant

5 Purchasing of equipments

6Installation of equipments; training of the staff

Beginning of the activities

6 FINANCIAL ANALYSIS

Financing of investmentsEmployment Amount % Resources Amount %

Fixed assets 34,455.41 42,02 Social capital 1,818.18 2,22Working capital 47,532.95 57,98 Associated loan 22,778.33 27,78

Bank loan 57,391.86 70,0Total 81,988.36 100 Total 81,988.37 100

Fixed charge in the code of imposts for five years (US $)2007 2 008 2009 2 010 2011

Sales revenues TTC 570,395.45 649,235.45 777,848.18 926,370.00 1,074,891.82Fixed charge 1,036.36 1,130.91 1,281.82 1,458.18 900 000

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6.1. Operating account and treasury plan

2007 2008 2009 2010 2011

Total Sales revenues 570,395.45 649,235.45 777,848.18 926,370.00 1,074,891.82

Raw materials &

intermediate

products

175,.027.73 203,742.95 237,601.51 277,573.57 324,817.53

Profit margin 395,367.73 445,492.50 540,246.67 648,796.43 750,074.29

External services 6,266.46 6,565.10 6,884.55 7,213.80 7,565.51

Imposts & Taxes 1,817.18 2,398.44 2,563.84 2,749.93 2,942.89

Value-added 387,284.08 436,528.95 530,798.28 638,832.70 739,565.89

Labor cost 21,006.55 35,121.23 35,541.36 35,823.65 36,252.19

EBITDA 366,277.54 401,407.72 495,256.92 603,009.04 703,313.70

Financial interest 6,667.54 5,470.90 4,150.03 2,692.04 1,082.69

Depreciation cost 5,749.78 5,749.78 5,749.78 5,143.72 5,143.72

Result of ordinary

activities

353,860.21 390,187.04 485,357.11 595,173.29 6,970.872.95

Income tax (35%) 123,85.07 136,565.46 169,874.99 208,310.65 453,106.74

Net income 230,009.14 253,621.58 315,482.12 386,862.63 453,106.74

Cash flow 235,758.92 259,371.36 321,231.90 392,006.35 458,250.46

Amounts are expressed in $ US

EBITDA: Earning before interests, taxes, depreciation and amortization

The company will achieve a beneficial interest throughout all the

period of activity. The interest will increase from 357,272.73 $ US in 2007

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to 701,090.91 $ US during the last fiscal year. This result shows a

continuous growth. In addition, the operating of the activity will generate a

self-financing capacity of about 361,818.18 and 705,272.73 $ US from 2007

to 2011.

Treasury plan for five years (US $)

2007 2008 2009 2010 2011

Sales revenues (ATI) 673,066.63 649,235.45 777,848.18 926,370.00 1,074,891.82

Capital 1,818.18 - - - -

Associate loan 22,778.33 - - - -

Bank loan 57,391.86 - - - -

Total capital inflow 755,055.01 649,235.45 777,848.18 926,370.00 1,074,891.82

General charges 202,300.74 245,429.29 280,027.43 320,611.02 368,635.22

Refundable TVA 36,414.13 44,177.27 50,404.94 57,709.98 66,354.34

Purchasing of

equipments

214,112 - - - -

Profits tax 0 0 0 0 0

TVA 66,257.05 54,858.66 68,249.87 83,600.69 97,612.21

Associate refunding 4,555.67 4,555.67 4,555.67 4,555.67 4,555.67

Refunding 16,328.36 16,328.36 16,328.36 16,328.36 16,328.36

Total outflow 539,967.95 365,349.23 419,566.26 482,805.73 539,840.69

ATI: all taxes included

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6.2. Projected Income Statement

Summarization of the budget from 2007 to 2011 (US $)

2007 2008 2009 2010 2011

Treasury at

beginning of

year

0 394,743.65 678,629.87 1,036,911.79 1,480,476.07

Inflow 755,055.01 649,235.24 777,848.18 926,370.37 1,074,891.82

Outflow 360,311.36 365,349.23 419,566.26 482,805.73 539,840.69

Treasury at end

of year

394,743.65 678,629.87 1,036,911.79 1,480,476.07 2,015,527.19

Financing plan for five years

2007 2008 2009 2010 2011

$ US 326,111.03 398,896.38 494,096.36 603,343.05 705,284.95

Capital 1,818.18 - - - -

Associate loan 22,778.33 - - - -

Bank loan 57,391.86

Total 444,099.39 398,896.38 494,096.36 603,343.05 705,284.95

CAPEX

Investments 34,455.41 - - - -

47,532.95 60,672.30 21,435.45 24,753.64 24,753.64

Total 81,988.36 60,672.30 21,435.45 24,753.64 24,753.64

Gap

362,111.03 338,223.43 472,660.91 578,589.41 680,531.32

Cumulative

gap

362,111.03 700,334.45 1,172,995.37 1,751,584.78 2,432,116.10

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CAPEX: Capital expenditure6.3. Projected Cash flow Statement

Dead line of investments retrieval (US $)  2007 2 008 2009 2 010 2011

Cash flow 362,111.03 398,896.38 494,096.37 603,343.06 705,284.95CAPEX 47,532.95 60,672.95 21,435.45 24,753.64 24,753.64Net cash flow 314,578.07 338,223.43 472,660.91 578,589.41 680,531.32Cumulative cash flow 314,578.07 652,801.50 1,125,462.42 1,704,051.82 2,384,583.14

6.4. Projected Balance Sheet

Balance of cash flow (US $)

Cash inflow Cash outflow Cash balance

Purchasing of equipments 214,112 - 214,112

Exportation 57,039.55 57,039.55

Total 57,039.55 214,112 157,072.45

Tax differential in common & Agreement systems (US $)

Agreement system Common law system Loss recorded by

the government

Investments 2,991.78 9,389.05 6,397.27

Imposts & Taxes 0 12,472.29 12,472.29

Business profit tax 0 882,582.73 882,582.73

Total 2,991.78 904,444.07 901,452.29

The different rates applied for the calculation of customs taxes are as

follow:

In “agreement system”: 7.5%

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In “common law system”: 26.85%; 32.75 % and 44.55 %

Distribution of the value-added from 2007 to 2011 (US $)

2007 2008 2009 2010 2011 Total

Household 21,006.55 85,934.10 88,081.31 87,652.78 88,081.31 369,028.97

Company 362,111.03 348,083.52 443,283.50 551,513.92 653,455.83 2,358,447.80

Bank 5,983.69 4,909.78 3,724.39 2,415.93 971.64 18,005.44

Government 0 0 0 0 0 0

Total 389,101.26 438,927.40 533,362.12 641,582.63 742,508.79 2,745,482.20

(VA/SR)% 57.81 67.61 68.57 69.26 69.08 66.94

VA: value added

SR: sales revenue

7 GENERAL CONCLUSION & PERSPECTIVES

This study reveals positive economic results for SANDI TROPICAL

FRUIT PROCESSING COMPANY LTD. It shows the followings:

A total added-value more than 2,727,272.73 US $ during the five

years of study if the company operates in a agreement system

A creation of 18 employments at the beginning and 22 in 2011

A continuous growth of profit, throughout all the period of study.

In addition, the activities of SANDI ENTERPRISE CO., LTD. will

contribute significantly to reduce the poverty of populations in BURKINA

FASO, especially farmers. This project also aims to help the country to

reduce its dependency from the bordering countries, by promoting the high

potentiality of the fruit farm field.

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The project intend to have further cooperation with Taiwanese companies suppliers of

processing machines and equipments, raw material, juices concentrate or any other

ingredients involved in fruit juice processing. Equipment Specification No Total NT $

Preparatory EquipmentFruit & Vegetable Washer

1

Screen Washer 1Brush Washer 1Continuous Root Vegetable Peelers

1

Batch Type Peelers 1Screw Type Peelers 1Trolley & Trays 1

Fruit Processing EquipmentPulpers / De-stoner Coarse Pulper 1

Fine Pulper 1Fruit Mills Fruit Crusher / Chopper 1

Hot Brake & De-aeration System 1

Blanchers / ExhaustersScrew Type Blancher 1Conveyor Type Blancher 1Bucket Type Blancher 1

Extractors Screw Type Juice Extractors 1Hydraulic Press 1

Evaporating SystemsForced Circulation Evaporators 1Falling Film Evaporators 1Thin Film Evaporators 1

Evaporator PansVacuum Pan 450 Liter Capacity 1Vacuum Pan 750 Liter Capacity 1Vacuum Pan 1000 Liter Capacity 1

Pre-heatersScrew Type Pre-heater (Direct Injection Type)

1

Screw Type Preheater (Indirect Heating)

1

Blenders

Ribbon Screw Blenders 1Ribbon Screw Blenders with heating Arrangement

13

Double Cone blender 1

Dehydration Equipment Band Conveyor Dryer 1Shielded Drier 1Bin Drier 1

Pasteurizer / Heat Exchanger

Rotary Scrape surface Pasteurizer 1Plate Heat Exchanger 1Shell & Tube Heat Exchanger 1

Tanks & Kettles

TanksHolding Tanks (Round Shell /Conical Bottom)

1

Standardization / Blending Tank 1Balance Tank 1

Kettles

Steam jacketed kettle (Tilting Type) 1Steam jacketed Kettle (Fixed Type) 1Fixed Type Kettle with Stirrer 1Tilting Type Kettle with Tilting type Pan

1

Conveying Equipment

Inspection ConveyorsThree way Inspection Conveyor with Waste Chutes

1

Three Way Inspection Conveyor 1Three Tier Inspection Conveyor 1

Roller ConveyorsSS Roller Conveyor 1MS Roller Conveyor 1PVC Roller Conveyor 1

ConveyorsPlain Belt Conveyor 1Trough Type Belt Conveyor 1Slat Type Conveyor 1Wiremesh Belt Conveyor 1

TrolleysMS / SS Plain Top Trolleys 1MS / SS Drum Handling Trolleys 1MS / SS Crate Handling Trolleys 1

Filling, Seaming, Sealing, Capping Equipment

Rotary pump

Filler with Conveyor Track & Carriers

1

Omega Type Filler 1S Type Filler with Feed Screw 1Rotary Piston Filler 1

14

Piston filler Inline Piston Filler 1Bag filling machine 1Vacuum Filling Machine 1Wiremesh Feed / Discharge Conveyors

1

Sterilization equipment

Empty Can Washer / Sterilizer 1Horizontal Retort 1Trolleys for Horizontal Retorts 1Cooling tunnel 1Empty bottle depalletizer 1Glass bottle rinser filler capper 1Tunnel pasteurizing & cooling/warming

1

Packaging equipmentAutomatic shrinkable label inserting machine

1

Wrap around packaging machine 1Automatic weight inspection machine

1

Low level palletizer machine 1

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