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Folder Title: A Report on the Feasibility Study of the Prawn Culture Project of Hekou District - The Planning Committee of Hekou District - January 1988 - F28502
Folder ID: 30283655
Project ID: P003552
Dates: 1/1/1988 – 1/1/1988
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I\\\\II Ill II \III I 11111\I III Ill II Ill III ll III ll I1 111 30283665 R1992-249 Other#: 86 30560B A Report on the Feasibility Study of the Prawn Culture Project of Hekou District - The Planning Committee of Hekou District - January 1988 - F2B502
DECLASSIFIED WBG Archives Projects of the Agricultural Comprehensive Development, Shandong, China
A REPORT ON 'fl!E FEASIBILITY STUDY OF THE PRAWN CULTURE PROJECT OF HEKOU DISTRICT
. ..
Project Committee of Hekou District January, 1988 Nome for the pro,ject : l'1·F1w11 CulLurP Pr·o.lecL of ll e kou District Unit responsible for t he project : Aqua tic Cult ure Corporation of Hekou District Chief of the project: Wang ~a Lu Chief of technological and economic affairs: Liu Wen Lu Unit in charge of feasible study : Project Committee of Hekou District Personnel participating in: Leading group : Yu an Zhu , Wang Zhi !Vlei , Liu Wen Du , Bu Chi Hua , Zhang Guo Dong, Sun Chin Yi Writers : Bu Chi Hua , Zhang Shi ll ua , Zhang Guo Dong, Zhang Guang Xin, Zhang Xue Wu, Chen Yi G.uan, Ding Dong Sheng, Zhang Zhao Dong, Liu Wei Ting, Yao Cun Ling Revisers : Zhang Guo Dong, Sun Chin Yi, Chen Yi Guan, Zhang Xue Wu , Zhang lhao Dong, Yao Cun Ling . ... CONTEN'I'S
1 . A general outline 1.1 Background for the presentation of the project, its necessity and significance 1.2 Data for the feasibility study 2 . Calculation of market demand 3. Basic conditions of the project area and plans for spot selection 3 . 1 Basic conditions of the whole area and the project area 3.2 Natural conditions of the project a~ea 3.3 Social and economic conditions of the project area 3 . 4 Scientific and technological conditions of the pro- ject area 3.5 Spot-selection for the project area 4. Kesources, material, fuel and .public utilities 4.1 Local resources related to the project . " 4.2 Supply condition of other materials and fuels 4 . 3 Amount of water and power able to be suppled; con dition of highways and other public utilities 5. Project design pl an 5 .1 Scale and details of construction 5.2 Plan of products 5.3 Technological plan, production and technological process 5 . 4 Ecology and environmental protection plan 5 . 5 Calculation of construction plen and investment 5. 6 Purchasing plan of facilities and materials 6. Organization and manse;ement of the project 6 .1 Chart of management system of the project 6. 2 Organizational set- ups of various units of the pro ject and quota of personnel to be provided 6. 3 'l'raining plan and expenditure calculation 7. Rate of implementation of project progress 7 . 1 Rate of construction of project progress 7.2 Yearly investment plan 8 . Ways for raising funds ann for repaying 8 .1 Yearly plan for r aising funds and for me ans of in vestment 8 . 2 Yearly plan for repayment and for means of repayment 8 . 3 Plan of income for repayment 9 . Financial and economic evaluation of the project 9 . 1 Calculation of production cost and sales income 9 . 2 Analysis of financial profit of the project 9 . 3 Analysis of economic profit of the project 9 . 4 Evaluation of effect to National Economy 9. 5 Analysis of sensitiveness and risks of the project 10. Conclusion of the feasibility study
Appendixes
. ' I . GENERAL OUTLINE
1.1 Background for the presentation of the project, its ne cessity and significance 'l'he municipality of Dongying was eslablished in 1983 , governing three districts and three counties. Hekou is one of the three districts and is located in the north of Shan 1 dong Province, in the east longitude 118°05 '- 11 9 •15 , the north latitude 37 ° 15 ' -38°15 '. Hekou District is noted in the province for possessing the longest coastline ( 254km) and the largest beach area (64, 500 hectc1 res) . Total area of the distr ict reaches 260, 000 hec., including 18 , 880 hec . of ar able land. 'l'he whole distric~ depends on industry, agricul ture, village and town enterprises and fisheries as main economic resources. 'l'otal value of agr icultural output in . .. 1986 reached 27 , 68o, OOO Yuan (R. M. B., based on the fixed price of 1980, and so with the price below) , of which fi sher y output value takes up 730, 000 Yuan, equal to 2 . 64%. Prawn culture in the shallow sea and beaches in Hekou Dis trict h as been listed in the Spark Plan of the Science and Technology Program both by the state and by Shandong Pro vince. The Hekou District government has stressed the ex ploitation of the shallow sea and beaches and the increase of prawn culture as one of the i inportant measures to adjust fishery production structure anct to promote countryside eco nomy . The tendency to development is rising year by y~ar. Rekou District is rich in wheat, soyabean and peanut. Apart from tax grain to the state, grain ration to the re sidents, seeds and other needs, there is still 10 , 000 ton of grain left which can be invested in aquatic culture. Moreover, t he shal low sea and beaches are abundant in fishe ry r esources, and can provide 40 ,000 tons of l ow- value but fresh and live feed such as fish , shrimps and mollus ks .
• 1 • This, no doubt, lays a solid ma terial foundation for the de velopment of prawn culture.
The internal structure of this district's fishery cir cle has been readjusted to be more reasonable and efficient. In order to make good use of the natural resources of the shallow sea and beaches, the ctistrict government has provided protection reguletions for mollusk resourr;es. It has formulated guide lines for development of fishery, encouraging "exploita tion and utilization of its resources, with emphasis placed on prawn culture, which will grow to a streamline production involving culture, freezing storage , process ion and trans
11 port by the year 1990 • This policy will give the green light to prawn culture. As is clearly seen, prawn culture has the advantage of short cycle, moderate investment, quick result and high profit.
'rhe coast of Hekou District~ is located around the es .... tuary of the Yellow River on the south shore of the Bohai Gulf, and is the main spawning grounds and rearing grounds for Chinese prawns. Since industrial growth is we ak in this area, the shores are not polluted , providing an ideal ecolo gical environment for the culture and growth of prawns.
Since 1987 , the area for this project has been approved by the provicial government of Shandong as a major exploiting area for prawn culture. What is worth being specially pointed out is the abundant resources of fresh water as a result of the presence of the es tuary where the Yellow River rl:lns to the s ea . The inland of this district has been tapped for more than twenty years by the Shengli Oilfields and i'S equipped with a complete network of communic ation and sufficient power supply. All this opens up a wide prospect for marketing the product of this project.
Based on the above condition, the present project is proposed .
When the present project is completed, the total income
• 2 • will be 43 . 6 million yuan, profit of t he enterprise 13 . 4 mil lion yuan, tax 2 . 13 million yuan and foreign currency 4 . 8 US dollars . /1.s this project i s profitable to the state as well as to the enterprise and the society, the need for the in~ vestment is justified and its economic significance is be yond doubt.
1.2 Data for the feasibility study
The feasibility study of this project relies on data collected through investigations related t o the project. So the report is demonstrated from aspects of technology, f i~ nance, economy, organizational structure and society.
Data or materials based on are as follows : 1. Five Year Plan of Marine Culture Development of the Peo ple's Government of Shandqng ~rovince (1987 ) 2 . Proposals for the comprehensive argicultural exploitation ... program of Shandong Province (by Shandong plan commission, 1987 ) 3. The seventh Five Ye ar Pl an of national economy development of Hekou District, Municipality of Dongying ( by Hekou Dis trict Government, 1987 ) 4. Statistical data of National Economy of Hekou District (Hekou Statistical Bureau, 1987) 5. Land Resources of the Yellow River Delta (Land Planning Office of Municipality of Dongying, 1985) 6. Land Planning of the fellow River Delta (Land Planning Office of Municipality of Dongying, 1985) 7 . A r eport on the investigation of the comprehensive resour ces of the shallow sea and beaches at the estuary of the Yellow· Sea (Resources lnvestigation Office of the Yeilow Sea Estuary, 1986) 8 . A report on the investigation of biological resources in the tidal zone at t he Estuary of the Yellow Sea (Science Commission of the Municipality of Dongying) 9 . Program for the exploitation of the shallow sea and beaches
. 3 • for prawn culture at Hekou District ( Aquatic Culture Bu reau of Hekou District, 1985)
2. CALCULATION OF MARKET DEMAND
The final product of this project is the cult ured Chinese prawn. At present the prawn has a good market both in the country and abroad, and is in great demand in spite of the comparatively high price . According to investigation, t he current annual aver age trade volume of prawns in the world amounts to about 670 , 000 ton , with a rather steady sales market and s elling price . In recent years, the ex port of Chinese prawns makes up over 20 , 000 tons, that i s only a small proportion in the international market . The Dongfang (Oriental ) Prawn produced in this district is highly esteemed for i ts tender me at, delicions flavour and r ich nutrition. It i s t he main r~source of ' A A A' Brand cultured prawn, an export of Shanclong. l.lec,-.use of its f ine . " quality, ' A A At Br and prawn i s so warmly welcomed in the international market that its supply c annot meet the demand . As a result, prawns earn a high income of foreign currency, one ton of prawn c an exchange f or more than 3000 US dollars. Bigger prawns , 31 - 40 head/pound, c an exchange for over 10, 000 US dollars. Condition of international market is shown in Table 2- 1 .
Table 2-1 Three Big World Markets for Import of Prawns
Unit·. 10 . 000 tons t Japan The United States West Europe ~r 1975 11.37 9 .14 2 . 4 . 1980 14.33 9 . 95 - 1982 15 . 14 12.42 1983 14.87 15 . 48 1984 16 . 9 1 ·- 15. 53 5 . 6 1985 18 . 29 14 . 87
• 4 • Moreover, with the boom of tourist trade and the rise of people ' s living standprd, prawns are gr adually entering the homes of Chinese people , r e sulting in a great er demand in the domestic market. Cultured prawn' s production, sale and development plan in Ilekou District are shown in Table 2-2.
Table 2- 2 Production, Sale and Development Plan of Cultured prawn in Hekou District Unit : ton Item Total Total Dome stic s ale Export s ales Inside t he Percent age output Total Total r volume to tot al ~ province output 1985 11 11 11 1986 84 84 84 1987 295 295 2IJ7 88 29 1990 3000 199 1 3300 1992 3600 1993 3900 -- 199 4 4210 ' 1995 4510
3 . BASIC CONDITIONS OF THE PROJECT AREA AND PLANS FOR SPOT- SELECTION
3.1 Basic conditions of the whole area and the project area
Table 3-1 Basic Condition of Hekou District in 1()86 Total Towns Village House- Total Agricul- area ( No.) Cammi - holds popu- turel (1000 ttees (1000 lation popula~ - hec.) (No . ) house- ( 1000 t ion holds) persons) ( 1000 persons) '£he whole 260 5 170 17 . 6 140 . 71 district The project 1 r· 1 22 2 .11 8 . 57 8 . 2.6 area
• 5 (Table 3- 1 Continuation) Villages Village Fishery Average l abor l abor income (No . ) force force per head ( 1000 ( 1000 - ( yu2.n) persons) persons) The whole 170 . 20 0 . 84 365 district The project 22 2 .7 area
3 . 2 Natural conditions of the project area
Item Basic Cont.ition Length of coastline (km) 254 Area (hec . ) 21333 . 33 Area t o be exploited & utilized recently (hec . ) 3333 . 33 Area alread) exploited & utili- zed ( hec . 1333 . 33 l~urishing s 2.lt content (mg/L) nitrate 31 , sut,-ni trate 8 arr.inc acid 9 Bottom substrate- mud 75% , sand 25% Be2.ches: area (10 ,0'.)0 mu) 64,.466 . 67 Deserted above- tide area (hec . ) 45 , 333 . 33 Area t hat can be soon 16, 666. 67 exploited anc: used(hec . ) f..rea t nat h2s 2lread.y been 1,333. 33 eXPloited & usec. ('n ee . '1 Bottom substr2te rr.uc: 8') % s2:-1d ~o~; · R2.te of descent 1 : 10, 000
This district belongs to t he temperate continent2l. ~on- soon climate , without the effect of typhoon, 2nd is suitable for the culture of p!'a~ms. (See t2.bles 3 - 2 - 1 t o 3- 2- 4)
• • 6 • Table 3 - 2 - 1 ;.1eteorology and Sea Condition of the!)> Pro,ject region It2:n Data ?tsinf2.ll a:noun (mm) 550 Svaporation ( ;nm) 120') Hours of sunshine (h) 2800 ' '\ Frost free period ( cay 1 205 5 Flmv of fresh water (m /s) ' 150 ' Annual average temperature( "C) 12 Annual average temperat:.ire of sur ::ace 't.Jater ( ° C) above 12. 4 ' Sal inity of sea water 20- 30%• ---- Transpar ency ( m) 0 . 8 - 1 . 5 Hi ghest tidal level ( m) 2 . 77 Lowest tidal level ( :n) 1 . 99 Lar gest tidal current differ- ences (m) 3 . 1 3mal1.est tidal curr ent differ- 0 . 07 ences ( r:1) nighest tidal level in 100 years (m) 3 . 8 Dissolved oxygen (:ng/L) 4- 6 PH value 7 . 0 - 8 . 7 The greatest wind scale in 25 years 8
T·able 3- 2- '.2 Condition of Temperatur e in ~ekou District Annual -::otal a:nount of solar radiation ( kilo cal/cm) 125 .7 ?hotos(-nthesis ef::ective r adiation Kilo cal/cm) 61.5 Month of the lowest average temperat ure 1 The average lowest te!Tiperature of the month / 0 ,...) -4 . 3 . ' '-' iv!onth of the highest average temperatur e 7 The average highest t emperature of the ;nonth ( ~ C) 26. 6 Ex"t:::-eme highest temperature ( "C) 38. 3 ( on June 23 , 197: Extreme lowest temper ature ( OC) - 16 ( on Feb . 1 ' 1979 )
• 7 . Table 3-2-3 Monthl y average temp . (°C) of ppst years in Hekou District Name of Month annual period station 1 2 3 4 5 6 7 8 9 10 11 12 aver age of years
Wan Wan L1 2L1 . 20 . 6 14. 6 6 .1 - 0 . 6 1~ . 4 77 -80 Ditch -4 .3 -2 . 1 5. 2 12. 19 . 6 5 26. 6 25 . 5 Isolate 20 . 2 13 .7 5. 8 11 .7 59 -80 Island -4. 2 -2 . 2 4. 2 11 .7 18 . 7 23 .1 25 . 8 25 . 3 -1 . '+
Temperature statistics of Hekou District ( °C) 1 Item Annual Average Average AveragE Average Extreme Data ':i:xtrerne Data Period average h.i.p.;hest lowest annual annual highest of lowest of of temp. temp. temp. t emp . dail y temp . occur- temp . occur - years (X) Station (July) (Jan. ) dif fer- temp . ring ring ence difference !June 2~ Feb. 1 1977- wan Wan -7 . q 10 .1 38 . 3 - 16. 0 Ditch 1?. . 4 31 . 3 30 .9 1978 1979 1980 ,June 1~ Feb. 1 1959- Isolated. 30.0 10 . 4 39 . 1 - 19 .1 Island 11 .7 30 . 2 -8.7 1961, 1967 1980 June 6 Jan 27 1968 1972 .. -. ,~ .- . \.'
Table 3- 2- 4 Seasonal dis·tribution of r ainfall in Hekou District
Name ""' · Annu2.l Spring(Mar ~, May) Summer Autumn Wi nter Peri od average rel2tive A.mount to of Avera ge Average Amount to Average Amount to Average ,'...mount tc rainfall vari2- the year t he reer the year rthe )ear of stati on ( mm) tion(%) (%) (% ( ,,) (% vear s · wan w2n Ditch 504. 5 3 54. 3 11 349. 5 69 86. 4 17 14 . 2 3 77- 80 lsolated 611 . 3 21 74.1 Isl and 12 412 . 9 68 102. 9 17 21 . 6 4 59- 80
• Days of strong wind (speed 217m)s or power 28 scal e) in Hekou Distri ct Name of Month . The Maxi - Mini- Period stati on 1 2 3 4 5 6 7 8 9 10 11 12 whole of vear mum mum years Wan Wan Ditch 4 . 3 4 . 3 6. 5 6. 5 6. 3 3 . 5 4 .0 1. 0 2. 0 4 .0 3 . 0 7 . 8 48. 0 69 26 77- 80 The I so- lated 1 . 8 2. 5 3.8 4 . 2 2.7 1.7 0 .7 0 . 3 o.6 1 • 1 1 . 6 1 . 2 22. 1 45 8 . 59- 80 Isl and
" 3. 3 Social and economic condition of the projecit district
~ekou District governs 4 countryside r egions, a town , two administrative offices. and 170 villages . The total po pulation of the district is 145 , 909 people , among this numl}"' ber, 71 , 024 people are engaged in agr.iculture , making up 48 . 67% 0f the t otal population. Total agricultural output value of the district in 1986 was 27 , 680 , 000 yuan, of which fishery output value made up 730, 000 yuan, that i s 2. 64% of the t ota l agricultural output value . Ave r age income from agr iculture for each person was 365 yuan.
A summe r y of the present conditi on of prawn culture is described in 'l'able 3-3.
3 . 4 Scientific and technical conditions of the project area
There are fourteen technological personnel of fishery speciality in this district. Among them, four are engineers and t en are assistant engineers . A trai ning centre for aqua tic - culture technique has been set up to train aquaculture technici2ns regular ly. Up to the present, the centre has trained 300 members forthe production units . The district fishery bureau has set up s tations for popul arizing fishery production technique . These popularizing stations are engaged in experirnenting end populp.rizing new t echnique , new species and new products in the whole district. What is more, major fishery towns and villages have organized service station for fishery production and t echnique . Nearly all villages are provided with trained aquaculture t echnicians. There- fore , a ~ 1ree stage ( district- town -village) network of tech nique ser·vice i s formed . 'l'his district has cooper ated with ncean VnivP. rsity of Qingdao nnd Shcindong Marine Culture Insti tute in t he form of joint a ssociation for scientifi c r esearch and produ<' tion , resulting i n the signing of an ~gr eement for technologi-·al serv:Lce . This district started to culture prawns in 1975 . ln addition, in. the progress of productive operations, a number or workers received technical training and were able to handle a whole set of technical procedures, from parent
• 10 • prawn wintering, hntchinr,, lH'f~c·rlJ11L', to processing. vii th years of practical work, U1ey have 1.< ccu111u.lij ted valuable experience.
'li"ab le 3-3 A brief account of p 1·o
3 . 5 Spot- selection of t he project area The project area is located in the north of Sikou coun-
t r yside in Hekou Distri ct, with an area of 2000 hectares, in- · '7
• 11 • Plan of Culture Farm 1~ H~~~ u District
~ •. ,,._ ;t,. ,, i::l East Liouhe l 0
0 Qigu: S\0· CD
Yihe eservo
Oil dr} 'i!l\ l_l g 0 eluding 1333. 3 hectar es of wat er area f or r earing praw~, and shallow sea water and beaches along the two s ide s of the es tuary at Zhao Bridge Ditch. The choice for t he site of t he project was decided after repeated considerations discuss ions ba sed on local meteroroloy, geology, communications transpor tation, electric power and wat er supply, and other ser31:ices (see plan diagram 3- 5 ). 'l'he p roject ma ke s use of the rising tidal water of the river ( Zhao Bridge Ditch) as a source of " sea water. The l ar gest amount of current flow is 110m3/s, .. ... taking Zhezigu River as a dischar ging source , the l ar gest discharging amount being 100 m3/s . The project area' s fresh water is supplied t h rough a s luice gat ~ b y the upper r eaches of the Zhao Bridge Ditch which r eceives water from the Yell ow River and Yihou Heservoir. The rive rs courses for receiving water and disch8r ging water are separ Ated by a distance of 5 km. Asph;:il t highw a y, which' i s only 1 km ;:i.w ay from the pro j ect are a , makes traf f ic convenient. The proj ect i s 2 km . " .. distant from Yisen Subs t ot i on tha t supplies sufficient power • In the shallow seas and beaches , t here are affluent resources of feed which can be made u se of as much a s 40 , 000 tons in total annually. Being provided with a grand and rich source of feed, plus the lack of pollution because of few industries, the site chosen for t he proj ect;·· is feasible .
4. RESOURCES , MATERI AL, FUEL AND PUBLIC UTILITIES
4 .1 Local resource s related to the project
According t o inve sti e;ation of local r esources c1long the shore in 1984, pr esent 111 ollt1s k aLl,c.; l( nrnounts to 100, 000 ton, of which 20 , 000 t on e re of low-v1, I ue 1nol lus ks and can be used as f eed for pr awns . ln sll,1l luw w; Lc: r s , 20, 000 t on of l ow-value fish and shrimps c an be suppl ied annually ( see Table 4- 1) .
• 12 • Table 4 -1: Loc al Resources Related t o the Project Harn e Uuant ity I . Far m pr oducts 15, 690 T 1 • Wheat 5 , 485 T 2 . Soyabe an 709 T 3. Peanut II . Fishery product s 1 • Planktoni c plant 51,0 , 000 piece/ m3 2 . Pl anktonic an111i nl rng / in.) ----? ~10 - '.JOO 3. Shr imp~ and crahs 11!.i , OOO T i a . J apanese l ar ge - e ye CI'fJb L1 , 000 T b. Chi nese hairy shrimp 20 , 000 T c . Mysis 20, 000 T
4 . Mo l lusks . 7 1,000 T Clam 11,000 '1' 4-cor nered clam l10 , 000 '1' Blue clam . 20, 000 '1' 5 . Fishes 6 , 000 '1' Gold c arp 1 , 000 T Anchovies 1 , 000 'l' ,- Scaled sardine 2,000 T Gobies 2 , 000 T
4 . 2 Suppl y condition of other material s and fuel Ma t erials and fue l are l i s ted on the plan and supply c an be f ully assured , especi 8lly fuel , 2s the distric t is close to the Shengli Oilf i eld ( see Tabl e 4- 2 ) .
Tabl e 4- 2 Suppl y condition of material and f uel Ye ar Steel Lum~er Cement Coal Natur al Cr ude Di sel ( T) ( m ) (T) (T) gas ( m3) oi l (T) oil(T) 1986 10 00 800 3000 2000 10 , 000 50, 000 200cJ
• 13 . 4.3 Amount of water c1 11c'l power nble to be supplied , and con dition of highway and othe r public utili~ies.
L+ . 3 . 1 Wate r The Yellow River f l ows to the sea in this district, and annuol c-1·J01·3ge flow of water comes to over 35 billi on m3 /s . Fresh water supplied t o the project co111es from the Ye llow River through the slt:fice gate at t he Zhao Bridge Ditch . In addition, t here i r. the Yillou lteservoir ci t t he north which may be used as a supplement to the river . So , the source of water is ample and i s fully reliable.
Seawater r equired by t he project comes from rising t idal water north of sluice gate at L'..hao lJridge Dit ch . Maximum flow measured may reach 110 m3/s, which is quit e sufficient for the requirement of Eo m3/s of water c onsumpti on .
4 . 3 . 2 Power . ...
Cosumption of power i n the district i s supplied by power network of Wei111ing Dlstric t . J\n1 1ual power supply attains 15 . 1g 44 million ltWh. I n order to meet the powe r consumption of prawn r eFl ring in an sreci of 1333 . 3 hec . an 4 .. 3.3. Ei eh\·1ays Traffic i s hiGhlY developed in I·Iel 5 . PROJECT n r~sI G.N PLPJ" ! 5. 1 Scale and detnj l s of constructi on. 1 . 1 Scale: Pr arn1 culture pond, ,-,ith :-in n.r cn of 1333. 3 hcc and .-•lated· ~onv ey:mcc system. 1 . 2 Details: 1 . Pravm culture pond , 1 j jj. 3 h<..!c . in r\reu, consistinc; of 400 ponds , each covering 3.33 hec. of area. 2. Big dam fox,· protecting o.r oinst great tide. Average dam height 36 m, width on top G m, external slope 1 : 6, internal slop e 1 : 3 . 3. Ten channels for supplyine; onc1 di~charr;ine water , length 56, 200 m. Arn one t he 10 channel s , 4 for supplying water, with a length of 1n ,r·,on m, (; ror discharging water, with a lene.;th of 3'/ ,',or, 111 . Lr . Fifteen ::i 11 q1I, 1, .. :, ,1':•·: ··, ,1111 l,1· l•u.11 l.; for floodgate. 800 delivery ond ili::cli.u ·: .0 :,l. uJ. 1, l'.d Lc5 , one main woter dis- charge gate and L1 \·10.ter deli very checlc- e;o.te are to be constructed. 5. T,-10 pumping st ations, .pumping capacity 3 2 m3/s and . " 28 m3/ s respectively . 6. One prawn l orvac rcnrinr, room , \vi th 3 ,ooom3 of water. 7 . On e feed proces~~.ing factory , annu al production c apa city being 6 , 000 T. Base for fresh o.nd l i ve feed of prawns i s to be built . 8 . One cold storage , \·Ii.th quick freezing capacity 60 T/day. Cold stox,age volume : 1 , 000 T/once . Ice- making capacity 30 T/dayr. 9.· Power transmission o.nd distribution installation: Lay 20 ,ooo m of high voltage line and build a substati"on of 4 , 000 KW. 10. Truck, ship .:md tools : 11 truclcs need to be pr ovided, 2 as r efrieerator cors, 2 as . truclcs , 2 us tool vans ( wi'th bi·g head) , 3 are common cars , the oth er 2 are fork- lifts. 400 culture sampans .:md 1 collectinG ship are also in the plan. 11 . Traffic: build 20 km of. common roa d. 1 2 . Fresh Hater equipment: Lay 29, 000 m of fresh water pipe and build 2 pumping stations, eoch no m2 in area. • 15 • 13. Ruild one Technological Service Center, 1000m2 in area. 14. Attached buildings: Buildings for living amount to 6000m2 , buildings for production 2000m2 • Attached with Ta bles of calculation for main project construction and material: 5-1-1 to 5-1-4 • • 16. Table 5-1-1 Total Statement o! Construction Engineering !or Prawn Culture Desi git Earthwork Construction Engineering I te 111 scale 1 CllbiC aeter or earth Stone Concrete Na!aiua Eq uip11e n t Installation Other expense I Tota l Unit Uni t i Uni t in,:est - InTes t :n e nt in Unit Unit Total Unit Total u5t Unit Total Unit tJnit Unit Total Total ex~e nse sta,zes U!3t Total ! pr i ce aent per ( 10000 Re :na r ks ( 1000-3. price -3 ( 10000 ( ) fries (Juan) (. ) price (yuan) ( ,.3) orice rri ce (yuan) t he 1st the 2nd toe 3rd yuaD/ yuan) yuan (yuan/-3 yuan/11.3) (yuan) y:ian ) ( yuan) 'yuan ) I (yuan) un.1:t ( 10 yua n ) OOOyuan ) year year yea r I 3860CO .Prawn !arm 13.33.3 723 2.50 ,- 1 ao7.5 I 46 13 . 86 1. Cir culating I hect. I i I !"Rearing po nd 400 I capital is no t 52.3.04 2.50 1307.6 ., I I 273000 1R L..(.. .1 I I included in I I I : I ! Jrnlet &. out- 56200. I 74.16 127.59 9462.1 2.637 %-79 1336 ,4 1 600 600 ! i ; 7.10 4215 1 . 6324 l ... ',S I the total in- ·let caandl I ! i i I vestment I I i I ,I nlet S. out- I 800 75,08 127.59 9579.5 42,77 6401 .8 47.05 506 . 79 238".5 I I 15790 ,3 5.599 83,99 1149,68 I I I 2. Other ex- 1let gluice I I I I i -r:I ! ,ga te i ! /penses i nclude I i i I I ,- I I I 3 different Prod uc tion I .. I , 1000 I : 15 13. 44 2011. 7 15. 17 506 , 79 7538 3 I 3000 349S 2 L..20 5 , 8 10.623 42, 49 :bridge i I D15,92 1127.59 65826.2 1149,68 I ' ty pes I : ' i I I Che c k ga te I I ' ' I 4 , I I I I ! I I ' ! 13.,000 3 13.1 '. oam a gai nst I I I 115000,. 119.88 2.50 299.7 I ' ! . t i de i ! I I I I I ! I I I I ,·.water dis- I ' I 1 0.22 2.50 'I 0.55 143 ,127.59 18245.4 1123.6 149,68 1681 80.4 564,4 506.79 •2860.}2,3 6 ; 1600 9600 ,8700 65.44 .charging I [ 158141'.4 ,6 5 ,44 I : cul Tert i I I I i I I 1 i ! Pum ping sta- !6oa3/s ! I I I jtion , I 2277 127.59 290522.~ 4766 149,68 713374,4 302 506.79 153050,6 /2342000 ;113000 2443052.2 606 606 ; I I l I I I l I High Tfa.J !20000. 3. 20 1.0 I 3.20~0440'? 35 148 365000 15758. 91 68 l.346 000 asphalt 600 335000 ! 402000 I I ' I T 559.6T I I Total I I I S?4t> . 4 I I I I • 17 • Table 5-1 - 2 Amount of Major Work and Quantity of Materials Hequired Name of Amount of work (10000m3) Quantity of Material Item Unit Quan ti t l' cubicmeter stone concrete Hafnium cement rei nfor- asphalt. of earth T cing bar wood T m3 '! Dam against 10000 1.5 11 9. 88 tide m Rearing pond piece 400 723 Inlet/outlet 10000 5. 62 523.04 channel m • Inl et/outlet piece 800 5 . 933 0 . 211 6816 . 0 368 832 sluice gate • Produc t br idge piece 15 0.113 0 . 064 0. 071 505.1 124. 2 280.2 Water di &- · c har ging piece 1 0 . 22 0 . 014 o. 112 0 . 0056 471. 2 99.3 225. 6 Check gate piece 4 0.206 0 . 005 0 . 006 245.7 10. 7 24. 1 .Pumping, - station piece 2 0 . 228 0 . 477 0 . 03 1730 280 1 51 Highway 10000 2 3.2 559.6 m Total 1366. 14 6 . 494 0.658 0 . 374 9768 882.2 1512. 7 559.6 Table 5-1-3 Approximation and budget or target and main material Serie1 Name or Item Construc Total l Approiination and bude:et or t,.r.,.•t Main material InTe•t•ent No. 1 tio~area cost I 1.;1.T1.l. constructiOrt Tech.z iaue Electrici tv Feedin« •.cat.... steel woo"' Cement steel steel r t:i n1 .. ( 10000 ·. F" • , le quip ins- sum equip ins- sua equip,- ins- sum ·• the j the 1' the I yuan) unit .1 pri~e total ment tol- ment tol- ment tol- ('r) c-~Ir) (T) shapee) (T)tube 1st 2nd 3rd R.ema r ks la- la- la- _ (T ye, year year tion tion tion i / 1 • Seedling, 7120 330.2 205.9 10.5 5 15.5 20.5 16.2 36.7 18.3 53.8 72.1 250 450 2050 11 36 / Circulating rearing --r--I - l-2~.- h F,.-=-e-=e :::..:d =-:p::..::r~o-c_e_s _-+-- -42_8_0_+--20_2_._7_5--+-- -+--+-1-1-2-. o-5-+- 40- +-1-5-+-5-5- f----5-.-7+--8- .-3+ -1-4-+1-4- - f--7 . 7-t--2-1- . ,+--1-5-0-t-2-7_0_ ---t-_1_ 2_40---jr---o-. -6-t-- 1-.-8-r--,·, ,--,, ---tic a pital 18 I sing_ factory -J---+-- -+----l-- - -l---t--+--+ --+---+---+---J- -t---t-----t------~ - not in eluded! 1 1 1 1 ~ 3c--.--l...-R-e _!r_1·_ &e_ r_a_t-in- g--t-- 3- 2_0_0_---i-3- 11- .57 134.25 72.7 38 110. 7 17 .6, 15. 1 32. 72 19. 7 14. 2 33.5 250 180 I 1200 300 2000 I ll i n the in- l__ _j~P~l~a~n~t~ ----t-----t----+.-- --t--i_:... __-=_-t-~~~~ -t--- -t----t--+---11- -~-t---t--j-- --t-- -r---r- - ~!- --r---1- -, Testaen t 4. En l argeme nt 710 56.38 32.5 9.5 3.2 3.5 1.26 1.32 2.58 16 1.8 17.c 55 50 400 200 1000 j . or cold stor- L - -ta~g~e~h~ou~s~e~ - -+-----+---+-- +-+---J- - t----t-,- -1-- J---!----t1---h--+---l-----t1- - -f---i---1--,·- 1 ,'--11 1 5° Technique 1050 40.0 30.04 3..36 o.6 3.96 3 0.7 3.7 2 1 0-3 2-3 15.67 !52.23 111i.Q sern.ce center I J i I ~ I 6. n ec ticity 127 17.4 69,4 18 87.4 13. 2 2.5 15.8 I 4.9 , 1.5 6.4 3.3 f ! engi ne ering 1 1 , ' ' / Fres h wa ter I 29000 134 I 5.6i. 52 9.8 \ 61.8 ! I ! 49.86 16.'i 66.5b I ' 208,51 I 1 ( M2 ) 1 ' • ' 1 facilit i es 1 I 8. Cars 10 70 \ 70 1 70 \ I I ' I : 1 J 1 l~- [ ~ -----W(1pii~e~c~el)_~~~-f- - + -+---+~ ~ - - + ~ - t----t--- ~ ---t1---t1--f- -t--j ij - - J,-- , --11----,-1--T,- - ,/ 9. Sa•ban and 401 68.5 p8.5 68.5 1 i boat s (piece) 1 i / / 10 5 0 L___· -1~;~~~:;:::; ::_---,--- ~ - ~6~1~o~-4~2;06~.2~ --+ - ~~~0~8~.~s- + 5~·~4-+~2:_-+~7~.:4+:27~.~6=-f1~6~-=2-t4~3~.~8:___r4~1~.2~ -~5--t~4~6~.~2 3~8=--f3~6~.0~3~ ~6_ _ ___tl: ___ __ ~ r 1. ~uilding. ho use 2000 36 36 1 1 i j / 1I 1 L_1r:or~ fa~r~m __j__ _ __+--~~~- -+--+--+-- f--~- +1--t-- r - +--t-1-- , - ,-- r - T1e_46_._3_1r1I -··_Jr I :,i Total 1.582.6· 761.9'i}038. 2!P 464°9 11.6 _ • 19 • Table 5-1-4 Main Construction Materi als Series No. Name Spe cification Unit Quant i t y Re marks 1 • steel T 1644.17 z. steel T 11.6 I shape s I ' 3. steel 2 1/2 20000m tube 1/2 9000m T I 208. 51 Fres h wa ter pipe l i ne 5 I 4. Wood - M3 II 2550; 96 • 5 . Cor k 113 500 I\) 0 6 . Cement T 15232. 9 • 7. ·Aspha lt T 559 . 8 8 . urai n M-' 3000 hus k " r------·1 1 I !f!T ~I:!!., -.if- :JiJ l.f] . )iii· ,.fi:J k- I .. ~~-·-=-~-- . ·" -----~- Plan and Section of Prawn Pond ~-2-, ... "-c-----,-=-=--·----=--~=---=--·-·::.11--~- ::.:.··::.··=------=--= ::.:. . :___ - - - - ~ ."'"'1. . r 7' r -4- ..j ~ c3 -.,.j r------·- --·----·_ _ 4o -·- __ -·· ___ -·--- __ ----.. -- .JI V -···· - -·-..- a !? -· -- . ' .. ~~ .. -- .-- 1 net water s urface l i ne ~ ' .,~ >ie •" :} 11• i5 .tli 1'1 ill!: ji~ti; , axia l line :t~!~ .f --~~ ~r:,_i;;_~ - - r · --- - ·- fo T "'J ; ( . .L ~ -.. ··---- '1 ------ , ------I I I I I - \f, :1 ,'/', :, :.: 11 •1' .~ Water level of highes t / I tide ___ /./ ______I . . ~ .... _v.,-J__ _ in 1938 / lI I ______1~! i ,:; ·t= . ' I~ ,. - ~l Dam t op line .,' . r------~ L, - -, _ / 2. 1 '-----._ - - - _.,. I I, ~------I I I I I ~ L .----· ·-·------. I i Section of Dam Against T1de Design ,~.It j) r·, :~'I k_ ,~ 1iir ,iti t-:- Drawin g "- ~·l .. ·-- I_ - .. ~~aj:in 11. tili ltl ..... 5.2 Plan of production This district plans to culture prawn in an area of 1333.3 hec. with a yield of l500Kg/hec., and an annual 111Mrk etable yield of 2000T, which will be turned to 1000T of frozen and product with the heads off. The quality of prawn product shall conform to standard of expert commodity inspection. 5.3 Technological plan, productive and technological process The technological plan for the prawn-culture project in this district is as follows: 5.3.1 Each of the prawn ronds is 3 .33 hec. in area, with a depth above 2M. Another central ditch o.5M deep is installed. 5.3.2 The pumping station is designed with a flow of 60M3/s for net water surface of 1333.3 hec. 5.3.3 Seedling rearing room has a capacity of 3000M3 or water. 5.3.4 Feed processing factory is equipped on an annual yield of 6000T (at one time). 5.3.5 Cold storage factory is equipped for a capacity of 1000T (at one time), 60T/day for quick freezing, 30T/day for making, ice. 5.3.6 The prawn rearing farm carries out a system of contract of responsibility to the top organization. 5.3.7 Technological training course opens pe~iodically each year to train and educate key technological personnel from each prawn culture pond, seedling rearing room, feed processing factory and cold-storage factory to improve their technical know-how and their ability in management. Thia will help create condition for the achievement of economic targets of the project. ~he production process f or the r earing of adult prcnwns is shown in Table 5- 3-1; for the rear ing of seedling, in Table 5- 3- 2; for processing synthetic feed, in ~able 5-3-3; for cold storage process of prawns, in Table 5-3-4• • 21 • :'ig. 5 - 3 - 1 Prawn Produc-:ion Processing Drawing I v;ater drainec. from pond - .. ,,If . Sun:i.ng pond " - with g2te closed I take out I I r,. Cle ar up pond silt 2nd repair dam grow up anc finish \\iashing pr awn pond breec.ing T _____,....._ __ ---y - ~..------''------,l Install gate me s hl Put seedling i nt er medi2te of prawr. intc breeding 0:::'2wn Dond ----,.f'-~---J.-- L-----1'...------' ,/ t------'1..______--· Disinfection I ~ransfer seedling of prawn )\ . II i,et - in water Spread fertilizer f or ~resc~n6 tio / logi c2l ::eed • 22 . Fig. ::=, - 3- 2 Production. Processing o: Prawn Seedling Re~ring Imme rsion & disi nfection i n t he re2ring pond 'W Diseas e & preventi or. ~-: 12.::--vee '!'re2tment o:: w2ter for o: b reeding ,I Seedli ng leeving none ' =-.e t.-in ·1'1a1:er anc. fill cir to the none ',; ? r 2nspor-: o: seedlir.g ,v ?ut in the par ent prawn ir- controll ed te:::p . ,II Sp2,wning of pFre nt urawn [ Culture of young shri:np I ,I l\ 12shing egg r Cultur e of larvae o: husk S'.'l:'imD l LI :-1 2:~c hi ng of fertized i egg Ct. ,1 i L&rvae re2ring I C".J.l ture of lar v2e . I / ' v.·i thout junct'..lre ,. • 23 • l'i gure 5 -3 -3 l,r t.i f i ca 1 C 0<0posed l•'eed P rOce s sine Drawing raw materials \ abrc,s i ved r t o filter examination in· powd er r' with 100 mesh \ t' agitated mixed with to Weigh l 4 ~ water r &.w ma t e rials 1 [take f orJ..---{ dry ~ examination finished o! fil]-ished ~ product product . " into storage ,/ delivery • 24 . Fig. 5-3- ~ Pr awn Freezin[ Production Pr oces sing ·Drawing l~eep :-aw ma terial ..c- resD' Raw ma t er i al washing Refr iger2.ting \ Cut off heads p2.ci--::ing Wash p r awn (f~lled v:i t r. ice) 0lassi fic2tion ( ac.f ice) I"' • ,,+ uet O C.. V o: 2tor2ge l \iater c ont rol 2!1d off tray \'-! eighing i·; 2king ice co2-':i ilg ( :il l wat e:- the second time) ':'ray roc king Fillec. with ice l uic k freezing in w2ter c ol c. sto::-- 2.ge /( Ty,&y t urned over Ir:-ter::1ec i c te t e st ho -" ..... re -"'v,ppz; r, rr ....,. _ ...... _J -· -- -'- • .1 e:.. . ?r:;_ _., . ..,.,... : ~ .. ~...... 5.4 Ecological and e~vironmental protection plan In order to protect the ecological environment o! the project area from pollution, and to make sure that the health o! workers will not be damaged by dust, noise and other harm ful substances, the "Three wastes" produced from production must be eliminated. 5. 4.1 Synthetic feed factory In the process of material transferring, crushing. and separate packing of finished products in the workshop the machinery used must be of enclosed type as much as; possible, and dust-fan and like equipment must be instail..led. 5.4.2 Fresh live feed Resources of feed for prawns in the shallow seas must be reasonablJ made ues of. Indiscriminate catching and col lecting should be prevented. Measures of responsibility for protection in separate areas and for planned caitch can be adopted. 5.4.3 Puawn seedling rearin~ farm The circulating water for seedling rearing, production sewage, and rain water are mixed together and discharged through drainage to the sea, causing no pollution. The boiler adopts hot wat.er circulation and is equipped with dust re mover, conforming, to the standard for discharge of smoke. 5.4.4 Prawn culture farm The circula£ing water from the prawn farm flows to the sea, forming no pollution. 5.4.5 Engineering program and investment calculation Engineering progr.am and separate items of investment calculation are shown in Table 5-5 • • 26 . , Tabl e 5- 5 Cal culation of Pr oject lnTestment ' Unit: 10 '. 0001vu~n Num . Dtscription of Total Estim~ted inv . ~mo11,t sub-project CiTil Buil ding Equipment Instu- Other Exneneses e ngi- construe- purchase lation e:xpene-'-Total Design Emer - neering tion Infla- Ready ses gency tion money 1• praLwn farm 5849.85 3115.1 1042.28 50.2 59.37 192.3 190.6 56 . 6 134 1200 2. seedling rearing 435 . 2 room 205. 9 38.8 70 15.5 3 12. 5, 105 3. feed. plant 402 . 75 . 112. 05 49.7 33 8 2 6 200 4. refriger ating 447 . 95 plant 166 •.75 · 107 . 16 65.64 28.4 3.4 10 15 80 • 5. pumping station 606 121.41 234.2 11 • 3 193. 09 46 5. 6 17 23 . i; 6. tidal barrage 378.55 300.2 • 49 14. 85 14.5 3.5 11 7. power trans.mis- sion and dist ri- 127 bution enginee- 11.4 69. 4 19 21.2 1.2 13 7 ring 8 . general compy . 206 . 2 108 .8 18.6 18 . 6 45 · 5.5 1. 4 4. 1 9. technical ser- vice 40 30 7.7 2.3 0. 3 1 1 1o. road 148 3.2 104. 6 34. 7 15 .2 2 5. 4 7.8 1 I • purcbase of trucll and boat 138 . 5 138.5 12. freslrl water 134 4.2 1. 44 facility 52 58 . 46 7.6 1 4 2.6 total 8914 3422.7 1959.63 766.26 268 . 21 557.4 354. 8 80 218 56 .8 1585 ,__ 5.6 Plan of Equipment Purchases All equipment required in the project is in accordance · with preliminary design (see table 5-6). 6. ORGANIZATION AND MANAGEMENT OF THE PROJECT 6.1 Systematic aetwork of project management Organization of management is shown in network diagram 6-1-1. Organization of head company of aquatic product exploi tation see Fig. 6-1-2 Network system diagram. Method of Business: System of contract and economic responsibility of the prawn culture farm for the fulfilment of obligations to the head company is adapted. 6.2 The organizatiOllal ·structure of the various units of the pro ject and quota of personnel to be provided The organizational structure and quo ta of personnel re quired for the project are shown in table 6- 2-1, 6-2- 2, 6-2-4 and 6-2-5. 6.3 Training plan and expenditure calculation Since 1987, this district has started r earing, prawns and has acquired some experience in prawn culture, process and production management. Technicia11s and administrati·ve personnel required at present by the project can be chosen according to their merits from workers of this district who have already mastered the basic skill of prawn seedling r earing, feed processing, freezing and technique in culture and management. They are to be given special technical training in groups in . the training center. Teachers for the training, courses, apa,rt from hign-level technological personnel in this project,will come from Fishery School of Ocean University of Qingdao and from Marine Research Institute of Shandong Province, as we have estalished connections with them for technical aid. '£raining prograa and calculation of expense is shown in Table 6-3. • 28 . .·; Table 5- 6- 1 Equipme~t and Material List F'll1 ea' b v: p rawn f a r m Price( vuan) Serie s No l~ame Speci fic2tion Unit Quantity each sum Remarks 1 Hoisting gear 3 T piece 800 600 480, 000 ' 2 Hoisti ng gear 5 T piece 12 1000 12 , 000 3 Hoisting gear 10 T niece 6 1600 9 , 600 4 Truck 5 T piece 2 50,POO 100,000 5 Tool c 2r piece 2 120 , 000 • 60.000 6 Sampan piece 400 1. c;oo 600 , 000 7 Collecti ng b o2t uiece 1 8S.000 85, 000 • 8 Station wagon piece 3 1~0.. 000 I 260 , 000 9 Chemical fertili~ ton . zer 200 ·woo 200, 000 - : l t• Amount 1,866,600 Table 5- 6- 2 Equipment end Materi al List Unit: 10 , 000 yuan Filled by: Cold ~tornge and ProJ ns s i n [~- Fac tory Series No . Name Unit ~,pecifi cation Unit Quanti ty nrice Total 1 Ammonia c ompr essor S8- 12.5 piece 2 3.245 6.49 2 Ammonia compress or S6- 12 .5 piece 2 ?.178 4."356 3 Ammoni a compres s or 2AV- 1?. . 5 pi ece 1 1.08 1 .08 4 Boiler Bl S- 100 piece 1 3.5 "3 . 5 5 Water pump 4BA- 12 - piece 3 0 .105 0 . 315 6 Condense r WNA - 00 piece 2 1. 45 ~-9 • 7 Low pr essure stor age COC!\- 3 . 5, piece 2 0 .55 1 • 1 \),I --- COC/\- 1 L..S 0 8 High pr essure storage WCA- '2 250 piece 2 0 . 37 0 .74 • 9 Intermedi at e c on- oenser ?I /\- fi piece 1 0.5 0 . 5 10 Oil separ ator YFA-80 piece 2 o.os 0.1 6 11 Air s ep2r ator KF A- 32 piece 1 0 .05 0 .05 --- 1? 'l' r nnsf or me r 1001\V f\ , piece ~ 2?0KV !, 0 . 51 1 .O:? 13 Oil c ol lector J Y- 3?5 piece 1 0 .05 0 .05 Table 5- 6- 3 Equipment and Moterial List . Uni ·t . 10 • 000 vuan Series No. Name Specific2tion Unit Quantity Unit Tot~ orice 14 Liquid drainage bin PYA- 2 piece 1 o. 37 0 . 37 15 Circulpting bin oil collector DTY piece 2 0 .044 0 . 088 16 Amrnoni a pump 32p-40, 40p- 40 piece 4 0 . 275 1 . 1 --17 Axial - flow Venti- '1'30- 4 piece • lator 1 0 .039 0 . 039 18 Lubricating oil re- generating machine piece 1 0.242 0 . 242 • 19 AJKi.al - flow Venti- l at or T40 - 11#6 piece 15 0 .0506 0 .759 20 L·Bub'ba:e • sccreen DSG - 150 piece 4 0 .05 0.? 21 1t3UObJ..e $Creen DSS - 220 piece 2 0 .08 0 . 16 22 Ice-making pond 14346x5074x1206 piece 1 10 . 374 10 . ~74 23 Doubleeffect quick freezing cabin. t piece 2 4 8 .0 24 Refrigerator truck 5 T piece 2 7 14.o t 25 Forklift piece 2 4 8 Amount 65 . 593 Table 5- 6- 4 Equipment and Material List F ille d by: :05 KV substation Name i Speci fication Unit Quantity Price( I yuan) Remarks Series No e ach sum 1 . Power transfor mer SI7- 4000 35/10 piece 1 7~,000 72,000 27 2 Power transformer SI7 - 1000 35/ 10 piece 1 27 , 000 ,ooo 1 6, 000 6, 000 3 Power t r ansforme r S7 - 50 35/0 .4 piece 2, 500 4 Distribution transformer S7 - 30 10/0. 4 piece 1 2, 500 5 High voltage oil cut WD1 - 35D piece a 16,000 32, 000 breaker 6 Hi gh voltage disconnec- GW5 - 35 / E/JO/t set · 4 3,300 13 , 200 • ting switch 2 570 1. 140 7 Arreater ?Z- 35 . piece 1 900 900 • 8 High voltage fuse bl ock RW5 - 35/3A piece 9 High voltage switches- GG- 1 A-0 . 7Z( F ) piece 4 16, 000 64, 000 cabinet 10 High voltage switches- GG - 1A-0. 8Z( F) piece 2 17 , 000 34,000 cabinet 11 Hi gh voltage switches- GG- 1A- 11Z(F) piece 1 16, 500 16, 500 cabinet switches- 12 High voltage piece 2 6, 000 12, 000 cabinet GG- 1A- 54Z (F) 13 High voltage switches- GG- 1A- 101Z(F) piece 1 3 ,000 3, 000 cabinet 14 High voltage switches- GG - 1 A-95Z( F) piece 1 3,000 3,000 cabinet 15 Control p c1 nel PK-1/800 piece 4 3, 200 12, 800 Amount 300, 040 Table 5- 6- 5 Equ£pment and Materi ·a1 Li.st Fill ed by: 35 KV sub station Series No. Name Specification Unit Quantity Pr ice( yuan) Remarks each sum 16 Protection panel IK- 1/800 piece 5 5 ,700 28 ,500 17 D. c. panel GNPZ- 1- 20/220 piece 2 5 , 500 11 ,000 18 Station panel BSI- 1 piece 1 3 ,000 3 ,000 19 Condense:t> panel GBB11 - 10- 360/30 piece 2 2, 500 5 , 000 20 Condenser di·scharging • p arrel GFD-0 . 3 piece 1 4 ,000 L~ ,000 21 Terminal box XW1-1 piece 2 -- 800 1 , 600 • 22 Terminal box XW3- 1 piece 1 900 900 23 Potentail transf ormer DJJ- 35 piece 3 1 , 100 3,300 24 Power cable vv20- o . 1 3X10 • 400 10 4 .000 25 Sheated cable BIVV- 0 . 5 2:X4 piece 300 1 300 2t) control cable KVV- 0 . 5 L~X24 piece 600 12 7 . 200 2'( Copper plastic covered wire BV- 0 . 5 1X1 . 5 piece 300 0 . 3 90 I( 2 piece 500 28 Aluminium plastic e,ove,,,,r-eJ.. ,, BIV-0. 5 2. 5m/m 0 . 2 100 29 F..ighvoltage supporting insulator ZS- 35/400 piece 66 40 2, 6L+O 3C IIighvoltaGe supporting insulat or , ZA- 10T piece 50 8 400 Amount 7 2,030 Table 5- 6- 5 Equipment ill'ld Mater1·a1 Li·st Filled by: 35 KV sub station Series No . Nrune Specification Unit Quantity Pri·ce( yuan) Remarks each swm 16 Protection oanel lli-1/800 piece 5 5 ,700 28 ,500 17 D. c. panel GNPZ-1 - 20/220 piece 2 5, 500 11 ,000 18 Station panel BSI-1 piece 1 3 , 000 3 ,000 19 Condenser panel GBB11-1 0- 360/30 piece 2 2,500 , ,ooo 20 Condenser di:scharging .. • panBl GFD-0 . 3 piece 1 4 ,000 L~, 000 21 Terminal box XW1-1 piece 2 c 800 1 , 600 • 22 Terminal box XW3- 1 piece 1 900 900 23 Potentail transf ormer DJJ- 35 piece 3 1 , 100 3 , 300 24 Power cable vv20- o . 1 3X10 • 400 10 4.000 ~5 Sheo.ted cnble BIVV-0 . 5 '2XL1 pi e.ce 300 1 300 20 Control cable KVV- 0 . 5 L~X24 piece 600 12 7 . 200 27 Copper plastic covered wire- BV-0 . 5 1 X1 • 5 piece 300 0 . 3 90 2 pi ece 500 28 Aluminium plastic e,o~r~ I/ BIV-0. 5 2. 5m/m 0 . 2 100 29 Bi'gfivol tage supporting insulator ZS- 35/400 pfece 66 L~O 2, 6L~o 30 Highvoltage supporting insulatfOI?., ZA- 10T piece 50 8 400 !illlount 7 2 ,030 Tah.J ~ 5-6-7 l:ouinm...... ent ru:cl r;~._-tc r j_<1l Li st Seri Gs !To • l'.o.me ~.1) eci f ~ cation Unit c,uanti ty Price ( yuan) Remnr l~s e a ch sum I; 6 Coupl in.n; mo.c;netic niece 1 600 600 vm.vc r Jr- :-> 47 Hi gh frequency ,·mver GZ~- 200 pi e ce 1 1 , 300 1 , 300 Lis F1.o ~tin c; cell ( oil 'T'P D-11 piece 1 engine) 1 , 500 1 ,500 L~9 Radio s - tntion 1 50i1':! n i e ce 1 6 , 000 6 ,000 . . 6 50 Storage battery 1f15? 250 1 , 500 • set /Jnount 10 , 900 • Table 5-6-8 Equipment and Material Lis t by· Filled . 35KV substation J Series No. Name Specification Unit Quantity Price( yuan) Remarks each sum 51 Concrete pole ,S19ox15M piece 30 380 11,400 52 Concrete pole ,s19ox12M piece 65 330 21,450 53 Concrete pole ,S300X8M piece 10 320 3,200 54 Steel-cored alumin- LGJ-70m/m2 Kg 8,600 800 68,800 iu• stranded wire • Zine-coated steel 55 GJ-35m/m2 Kg 2,000 3.6 7,200 • stranded wire 56 Zine-coated steel 2 Kg 2,800 stranded wire GJ-70m/m 700 4.00 • 5·7 Fog-proof suspended xw1-4. 5 piece 76 120 9,120 insulator - · ·------~------·- 58 H.V. porcelain 110 cross arlll S-66KV piece 245 26 , 950 59 Zine- coated metal Kg - wares 8,000 2.40 19,200 60 Right angle auppor- ting plate Z-7 piece 50 3.5 175 61 li•iafarced wire grip NJ-3 piece 38 9.00 342 piece 2. 50 190 , 62 Ball-ring Q-7 76 63 Single bow W-7 piece 76 5.00 380 64 U-type ring Vl-20 piece 315 2.60 819 65 UT-type ring UT - 1 piece 285 7. 00 1. 995 Amount 174,021 ------·------~ Table 5-6-9 Equipment and Material List Filled by: 35KV substation Series No, Name Specification Unit Quantity Pr ice (yuan) Remarks each sum 66 UT-type grip UT-2 piece 36 9.00 324 67 Weage shaped grip XL-1 piec.e 285 5.00 1,425 68 Weage shaped grip XI-2 piece 36 5.50 198 69 Parallel slot grip ll-2 piece 96 6.00 576 70 Suspension grip XGY-2 piece 60 25 1,500 71 Vibration-proof ho.mmer FG,-5 piece 450 18 8.100 • 72 Lead-incased tape l OXl KR: t\O 9.00 90 7} Miscellaneous Zinc coated 4,000 • bolts • 74 Pole suporting disk 95 45 4,275 75 Suporting wire disk 321 35 11,235 76 Pole suporting wire hole 416 3.00 1,248 77 Miscellaneous work materials 5,000 Amount 37,971 Total , Amount 635,630 Table 5-6-10 Equipment and Material List Fi.lled by: Pumping station Se1ries No Name Specification 1 Unit Quantity Price vusan) Remarks each sum 1 Axial-flow -pump 402Ili-85 piece 24 20,000 480,000 2 a.v. Switch board GG-A-0.3D piece 26 4,000 104,000 3 H.V. Switch board GG-A-54 piece 2 4,000 B.ooo 4 H.V. Switch board GG-A-0.812 ... piece 2 4,000 8,000 5 Control panel piece 20 4,000 8QOOO 6 Electric motor JSI14-12210KW piece 24 25.000 600.000 7 Transformer SJ! 5000/35 piece 1 50,000 50.000 • 8 Oil switch DWT-10 piece 3 4,000 12,000 Tn1ount 1 • 342,000 . • Table 5-6-11 Equipment and Material List Fille d by: Fresh water equipment Series No. Name Specification U:ni t Quantity Price (yuan) Remarks I each sum 1 Tube 5 1/2 wall I thick 8mm 94m t on 116. 91 1 '500 175, 000 - ' 2 'rub.e 2 1/2 20, 000m ton 91.6 1, 500 137, 400 I I 3 'Nater pump DB-A - 10 pie~___ 4___ _j_ 2 , 000 4 , 000 · - '- I piece 400 500 200, 000 I 4 ~alve 2 1/2 5 1/2 piece 4 800 i 3 , 200 ~ 5 Valve - -- unt 520 , 000 _____L _____ ·--- Table 5-6-12 Equipment and Material List Filled by: Feed processing factory Uni t: 10, 000 yuan ------1 TSeries Name Specification Unit Quantity Unit price Total No.t -- Grind I 9FQ-55 piece 1 0.5 0.5 Rr.eaker 9FB piece 2 ---+------2.!5··"------0 !2___ _ 3 Granular machine 9KY-22 piece 2.0 2 . 0 4 ~orizontal mi~~ 9WJ-500 piece ----0.8 0.8 ~ . 5-- I vOCti~a~~;;.-- __ _2_~L-~~~--- piece -=~1_---~-- 1-·---o_._5~~-----+---o_._5__ _ 6 + Bucket skiphoist DT - 40~-- piece 6 0 .3_5____ --~ ·- i ______ ; 7 1 Convegor 91s-250 piece S O. 5 2. 5 1· 8_ 1 Cooling-tower·--1 .91900-123 --tiiece ------___ 1_7 _ __ 1.2 __ _l 1 ! 9 1 Water pump ~ iece 10 0.18 -~ ---~ 1- -,-0---r Boiler -t- KZ I-1-8 -~~~----1 f•_iece ------· -=- f:5=--=-----_- 3 •• 5_ __ --\ :- - rT I o-£1ner equipme nts·- ! r,iece 33 1 Eo u-n-t - L--- L ___1 - =r------48 0 5 Table 5-6- 13 Equipment and Material List Filled by : Seedling rearing farm Unit: yuan - ;is-N'J_. ---~! R_ _ _t__ -_-_~N-a-me------Specifii_':ti~~ -U. ni~~ant~· ty ' Unit price Total 0 0 8 blower Z32-15/0.5 I piece J 8 3 , 800 30, 400 2'- ··--r Roots bl-;--;;;---·--- . -- Z20-10/~~±' piece J 1 2..!.?_~_J_2, 600-- I 3 --- - i lla ter pump --- bBA-8 piece 8 1,810 I 14 , 480 1---l;f I Wate~ pum? T bJ 18X13 I piece 1 7 , 210 ·-- 7 , 2 -10- --!I ,--5 Boiler l --KZIZ-8 ___ ! piece J_ 2 60,0~_? _ ~20,000 1 I 6 I Transformer r 250K\TA r piece 1 1 I 6,600 6 , 600 I l-----;~--- ! -~_:::::::::_m::t --f --- ~~~~~A II :~::~J~---J~~~ l ~:~~~ J L~_.mo_u~~ ___L ______.. __ L__ _ I ___1 )41 , 890 Table '.;-6-14 Equipment and Matt1rlal List Filled by : Technological training center Unit : yuan ; Seri~~ No . T--Micro s:::: -- - -: Sp:_c ifica tion r ~:::e -~a~;ity I Un~~o~~ice -~~~~~ j -- r --i- ---+---~ ~---2 ___ ~ Chromatography __ ---+ piece 2 3 , 0 00 -r-· 6 !..900__ 3 4 000 r-----4-----i :~;:m:::~Ut-e r ______-- -==l :~~={ _L ;:~6~ -~ ' j r-- 5 ---·--r Dissoc tirrg mirror _ _ --- -I pie~e -~---2 ---+ 1, 000 G :~-~~--'r L_~_____ Analytica _l ba1~n~-e ____ ---+Y~-'~ce -c --~ _l ?,_o_o_o c_----; ,ooo 7 Nater- quality analyzer piece 3 3 , 000 1 9 , 000 I --1- 8 I Pr otein- amine acid analyzer ____ , piece 2 , 000 ; ,ooo - ____ l_ I --- - I~ ·1 L--Amo·1n t ---r -- ! 77 , 000 __L_ ___. ______, --- __ __.___ j ? i gur e E- - 1- 1 The .Block Di2.gr2rr. o.: t he ?reject ~dministr 2tion System Shanoong Y'u r 2! economic development anc, :..nvest- :-ie kou :S-i strict people 1 s government - . . -'- J.Ji s~~ic-c .JlSt:::'J..C 1., ple~.i~g 2qu2tic nY-oduc-: som:::it~e e 1::ur eau , i, l ? r ojec t !Tlen2 gemE::-:-'.:. I prod~ ct develo~ment geneY' e! c omp2ny f. • 43 . Figur~ 6- 1 - '2 ~::e 3 l oc1( Di2gr2m of the Or g2nizati1n of t~.e ;.,.c;_·.12.t.~c Prod'...!ct :ie-velopment .Jene r2.l Co:;1pany ..·1 anager I r,:anager Off ice I ?r~duc ~i :)n I cepart~e::.t Fi r.anc e ?rawn ~ulture de'?t. f ar :n ------· ------, ,- Service ' I or ga:1.i 2 2. ti on I I I ':'ec~:--iic_ue service I cent2r I I I I I :=- o ..&:- ...... ; a~-~ .: v, Q" ~ -..._ - .l ..a.. =I\ c:. '-' - ... -c :?eeci I rea r:'... :-:g pl 2.nt proc ess i r.g I :--oom ..__f 2.c-!::or~· ______.I I I I ------_J Capitc.l Sales construction dept. deDt. Gener al af :airs dept • . 44. Tabl e 6- 2- 1 The Organi z2tion anc Perscnnel l\u:nbe!"' I-cem De~-'c . 1~~~..--....:..:..::::.:.:.:.:::.;..:::..;;_.,..-.-=-~~--.~~~~-+-~~~~ r "."'o_ t al hanaginol- 9 Fixed Contract r'r&\ff_ Remarks nersonnel worker worker f2rmer Total 47 1175 95 186 800 Seedling re c: r.ing 7 19 25 f 2.!"m Feed ::r ocessing: ·.s 38 11 e 1c. ~· factor~i ne:r igsra- · I , r::. ting ple.nt 12 18 23 - ,/ ? !" av,.rn culture 10 905 23 20 62 200 f2rm General comp any 10 42 24 18 v: h ich includes : ::, nersons i n technicue ser vice center, and 5 uer sons i n t r ans former substa tion • 45 • T I I Table 6- 2 - 2 The Or ganization 2.nc Personnel Ser ie~ L,,r.ibe!' Oq;2.n . Dept . "":' - ,...&".&' 1-~0 . Engineeri::.g .:;, vC...L - :o:'l-::r-ac t techniciar_ me:nbe:-- workers '!'otcl Rem2.rk~ su:n 19 _?t:;_, SJ 1'.)L I , P.dmi nistra- t ion 1 • Director ? 2 >, 2 . Office 5 _,t; 1-4 0 II . Techni~ue +> 0 m2nagement cu ~ 1 • Produc ti or! t; bO 2nd tect.ni- .., c:: 5 "M cue dept. M r "O I II . Pr oduction Cl> (,. Cl> system ~ 1 • Prepe.ration room 2 15 17 2 . Fi nished ,· I product .., room i I L; -~ 3 . \\:orksh op I ? 2 T2bl e 6- 2- 3 The !~ umber of Personnel in the Organization Organ Series Dept. I~ o. Sum 18 68 86 I . h.d:ninistr2.tion 4 4 8 1 • Director 3 3 2 . Off ice 1 5 II . Technioue 3 6 m2.ne.gement r'rocuc-ci on ' • end technique 3 3 dept . 2 . s~ies dept . 3 3 . Finence dept. 7 3 i 1II . Production S9 I syste:n I 1 . Cold storaee 1 8 house I 2 . rrocessing sh op 2 15 17 i 3. ~uic~ freezinf 2 12 shop I ~. Refrigerating 1 8 shop 5. Engine room 2 15 17 b . Distribution subste. -tion 7 . Workshop 3 3 • 47 . Table 6- 2-4 The Number of Em;)loyees in the General Compa11.y Series l~umber o: e:nnlovees Denartme nt i1.e:narks No . Engineering S1;2.:.::- :or-t:-act ~otal technicians mer.ibe :-- worker To"tal 2L 13 &2 r a 1 • l'.anager 1 1 -? . Vice 'Tle.nager 2 "C. 3 . f.:an2 ger 1 s offic e 2 3 5 4 . : 2:>ital COrlS - -c::--uc -:i or. d.ep ~. 2 3 5 ? r oduction 5...... tec!".ni~ue aep ~. Cf"\.., , Q" p 6. Sales dept . '-- 8 '7 • + -;: i:: I • Fi nance aep ... . 2 , ' - 8 . Technic;_ue se::vice ce~1t e r 5 5 C., . General a::2i :::-- s dent . ? .,-:i:. 5 10 . Elect:-i c 2 3 5 subst:-ation I ,. • 48 . Table f.,- 2- 5 The Numb er o: E:nployees and Workers in t he Prawn Cultu re Parm · 1~:.1mber Serie!: Dept. I~ o . ::Sngineeri r.g S-c2ff :ontre.c~ i--rawri I-technician member worker fe.:::-- r.1er Total Remarks Total 25 23 62 800 9{u; 1 • Culturfarms 1 1 2. Vice C.h!le_" L' 2 2 3. Far m of:ice 2 2 2 6 4. ? r ociuction 10 1 'J anc techni- que dept. C, _,/ . ?inance dept. 1 2 3 E. Se.les dept. 1 2 3 ~ . Capital cons- i:; ' 2 ,/ tructi on dep t . 3 - A \.J . ? umuing st2"cion 2 3 40 45 0 ?_,,'"' ~ . Vl orks !:1 op 2 8 30 10 . :-re.wn !'armer 800 EO'.: 1. • 49. Table 6-3 Training Prognam and Expense Calculation Number ' Location Conten of Teachers Number Training i~ traines of content Expense Tim~ teacher; Aquatic tech- Local Ringdao Shandong Technique of Total nical training diBtrict Pceano- !Provincial prawn seed- center 2 250 graphy Marine Cul- ling and Univ. ture Re- 10 adults cul- 2 25000 search Inst. ture, p rawn ! ;processint:?; ') ') 4 ; l-gBg-1990 as above 500 3 4 10 as abo'Te 50000 • 5 \J1 1991-1992 as above 500 j 3 4 10 as above 50000 0 1992-1 994 as above 250 5 3 4 10 as above 25000 • 1995-2000 as above 1000 5 3 4 10 as above 100000 7. RATE OF PROG,RASS OF THE PROJECT 7.1 Construction schedule The schedule of the project is shown in Fig.7-1. 7.2 Yearly investment plan The project will be completed in two years. The first · year for the first half of the project, the second year for the later half, then the project will go into normal opera tion. For detail investment plan, see Fig. 7-2 8. WAYS FOR RAISING CAPITAL AND FOR REPAYING 8 .1 Yearly plan for raising capital and for ways of investment The total investment of this project is 89,140,000 yuan (RMB). The interest is drawn on an annual dividend of 7.9'2:/J. Proportion of cash distribution is shown in Table 8-1-1. Yearly plan for raising fund and for ways of investment is shown in Table 8-1 - 2 . 8.2 Yearly plan for repa~ment and for means of repayment. The same year when the project is put into operation, it will have the power to pay dividend. Capital and dividend will be paid in the course of 11 years according to the invest ment proportion of the project items. Plans and means for the repayment are shown in table 8-2. • 51 • Fig. 7-1 Dash-line Diagram of Project Schedule ~~~~~~;~ 1988 1989 1990 1991 ·~ ;~:::: tr-u c ~1---1-.---2-.--3---,-.-4--+-- 1--.---2.....---3--r--4-+--1---.--2--.--3--.-4-t-1--.-2----.--3-,--4-+------1 ~ - - - - ~------1 • Prawn pond -- - - _.... --- 2 . Tidal barrage ..-.- - i-.- _____ 3. Inlet/outlet ... ------~-~ ------brench ditch 4. Seedling ------1-- r--~- - - rearing room • \J1 5. Feed processing ------~ ------I\.) -- -- • !--- 6. Pumping station ~ - - - 1- - - - • 7. Refrigerating plant and cold storage ------· 8 . Auxiliary rooms ------ 9. Power transmission ,__ -~------1-- and distribution eng. 10. Traf~ic facilities t------·- - - .. . --- - .. - - i... · - - 11. Roads ------~ --- - 12. Drainage gates - - - 1-, ------t- - .. ------. .. 15. Sluice gates p-. -- --t------·-t- - 14. Fresh water equipment ~------Table 7- 2 Investment Schedule Uni t: 10 , 000 yuan Tot al The year of 1989 The year of 1990 Sub- Item proJect c1.rc ula t1.ng project circulating Remarks inves tment sum payment cash sum payment cash Pr awn farm 5849. 85 2845. 85 2645.85 200 3004 2004 1000 Seedling_, rearing 435. 2 217 . 2 167 . 2 50 218 163 55 room Feed processing 402 . 75 202. 75 172 .75 30 200 30 170 factory Refr igerating 447.95 227. 95 207 .95 20 220 160 60 plant • Pumping station 606 306 306 300 300 Tidal Dam 378. 55 188 . 55 188. 55 190 190 • Electric power 127 127 127 supply Class-4 asphalt 148 100 100 48 48 paved r oad Technique consul- 40 40 40 1 t ation cent.er General company 206. 2 106 . 2 106.2 100 100 Traf fie facili - 138. 5 38. 5 38-5 100 100 ties Fresh water 134 84 84 50 50 equipment Total 8914 4484 4184 300 4430 3145 1285 Table 8- 1-1 List of the Financial Resources Avail able for the Project Financial!. resources Proportion Amount ( 1 OOOOy uan ) Worl d Bank 33.46% 2983 Shandong municipal government 17 . 95% 1600 Hekou district organization 5. 3% 472 Hekou labor power service 33.31% 2969 • investment Dongying municipal government 9.98% 890 • 'Ilotal 8914 ------. . . -- I I I I 4 I Table 8-1-2 Money Raising Schedule Unit! 10.000 vuan Item of : Ready money 1989 (the first year) 1990 (the second year) construction investment Total Ready Total World ·Provin- Muni- District World Provin- Muni- Dis- amomnt money Bank cial cipal organi- Total Bank. cial cipal trict ' govern- govern- zation govern- govern- govern• ment ment ml'l!n t mont ... .,.n+ Prawn farm 5849-85 1200 e845. 85 1005 660 100 1080.85 3004 '/50 4uv 1854' Seedling 10 rearing 435.2 105 217 . 2 150 45 12.2 218 75 100 40 3 Feed proces- sing factory 402.75 200 202. 75 1 15 30 50 7.75 200 65 100 30 5 • Refrigerating 447.95 80 227. 95 110 70 30 17.95 220 90 120 10 \J1 Plant \J1 606 306 120 100 70 16 120 20 • Pumping station 300 150 10 Tidal Dam 378. 5S 188.55 60 50 50 28.55 190 50 50 90 Power trans- mission and 127 127 40 25 40 22 I distribution: engineering I I I Road 148 100 45 40 15 48 48 I Technical ser- 40 40 15 15 10 I vice i I General company 206.2 106.2 50 6. 2 ,oo 50 I 50 50 Traffic facili- 138. 5 38. 5 20 I 15 3.5 100 3 97 ties I I I Fresh water 134 84 50 30 4 50 50 equipment Total 8914 1585 4484 1780 980 500 1224 4430 1203 620 39-0 2217 '11able 8- 2 Program of Repaying the Capital with Interest Unit: 10, 000 yuan year amount - 1989 1990 1991 1992 1993 item 1994 1995 1996 1997 1998 1999 yearly total Profit 4484 8914 8914 8024 7067 60}4 loan 5160 4217 3199 2100 914 in which: World Bank loan 1729 2983 2983 2093 1136 10~ provincial capital 1000 1600 1600 1600 1600 1600 loan 829 • municipal financial 800 \J1 890 890 890 890 890 890 776 O'\ circulating capital other loans • 955 3441 3441 3441 3441 3441 3441 3441 3199 2100 914 yearly repayment 255 814 1596 1593 program 1593 1352 1352 1352 1352 1352 1352 1.n which: payabl e capital 890 957 1033 874 943 1018 lOQQ l l A?. a, 1. --payao~e interest 355 714 706 636 ··560 478 409 334 253 166 72 capi~al source of re- 255 814 1596 1593 payment 1593 1352 1352 1352 1352 1352 1352 1 • profit 210 719 1340 1340 1340; l 127 1127 1127 · ·1127 1127 1252 2 . depreciation in 24 21 131 128 128 cost 100 1,00 100 l 00 100 100 3 . interest in cost 21 74 125 125 125 125 125 125 - 125 125 8.3 Plan of capital repayment source The source of capital repayment is profit, part of the depreciation and other gains of the enterprise. See ta~le 8-3. 9. PROJECT FINANCE AND ECONOMIC EVALUATION 9.1 Calculation of production cost and sales amount. The annual production cost and annual sal~s amount of the individul program of the project are .calculated firstly on the properties, designed production capacities, and tech nological process of these individual programs, and secondly by referring to the related state regulations, the managing situations of other enterprises of the same trade and to the price of raw materials and the actual management in the pro ject district. For the result, please refer to 9-1-1 to 9-1-8. 9.2 Analysis of the project financial benifit 9.2.1 Analysed by the method of steady state actual value, the return period is 8.47 years (including period of cons truction 2 years). The annual return r~te is 14.05%, the dynamic investment return period is 12.4 years. Refer to table 9-2-1 to 9-2-4. 9.2.2 With the probing difference method, the inner return rate is 18.58%, refer to 9-2-1. 9.3 Analysis of the project economic benifit The prawn culture project is to be carried out in 1989, . and accomplished and put into operation within. two years. The benefit of the project will be remarkable ofterwards, see table 9-3:..1. When the project is put into operation and reaches the target, in normal years the total income will be 43,600,000 yuan and the aver. gross profit will be 13,400,000 yuan • • 57. Table 8- 3 Program of Repaying the ·Capital with Interest of the Prawn Culture Project Loan . . Uni t: 10 • 000 .V uan year I amount · ~ Ot&l 1990 1991 1992 1996 1997 1998 I 1989 1993 1994 1995 1999 1. loan amount at the begining of 591 27 4484 9014 89 14 8024 7067 6034 5160 4217 3199 2100 914 the year 2. l oan expenditure 8914 4430 in the year 4484 • 3. payable interest 4683 355 714 706 636 560 478 409., 334 253 166 72 \J1 in the year CP • 4. i nterest to be 4683 255 814 706 636 560 478 409 repai d in the yea r 334 253 166 72 5. capita l to be 8914 890., 957 1033 874 1018 repaid in the year - 943 1099 1186 914 6. loan ammount a t 49847 4583 8914 8024 7067 6034 5160 the end of the year 4217 3199 21 00 91 4 +366 in whi ch: interest re- 100 100 maining sum 7. e stimated inter- 4683 355 1069 1775 24 11 2971 est aggregate 3449 3858 4192 4445 4611 4683 8. capital and in- terest repaying 3963 255 814 1596 1593 1593 1352 1352 1352 1352 1352 1352 source ( 1 ) profit 1836 210 719 1340 1340 1340 11 27 1127 1127 1127 1127 12'1? (2) depreciation 1032 24 21 131. 125 128 100 l uu l UU 100 100 100 in thP cns::t. . 74 125 . 125 125 125 125 ( 3 )interest. i~ost 1095 21 125 125 125 TabJ.J> 9-1 - 1 Managing Profit Calculation of the Project in Normal "fears Uni t: T /1 ooao1·vuan Sales (process) amount Mana :ing, cost Item Gross Loan Pavable t 8X Pro- quantity unit amount. sales in w1ucn pr ofit inte- total i ndus - in- price cost wage aepre- 1nte- res( t rial come fit ci a t ion res t and · tax commer- <', cial tax 1. 3000M3 seedling 6X108 0 . 005 300 180 21 15 8 120 24 96 rear ing room heads • 2. 20000mu prawn 2000 1.5 3000 2000 182 113 95 1000 505 157.5 157 . 5 337. 5 culture farm • 3 . 6000T feed 6000 : 0 . 11 660 600 8 10 16 60 16 34. 5 34. 5 9 .5 processing plant 4 . 1000T refriger- a ting, and proce- 2000 0 . 2 400 240 2 1 22 6 160 35 21 21 104 ssing plant I 5. totals 4360 3020 232 160 125 1340 580 21 3 213 547 ·ncome Sales a~ount - Sales cost=( _ ); 1. Managing 1. rate of t he project in normal years= Sales amount 4360 3000 4360 =30.73% 2 Sales net profit rate of the proJ·ect in normal year- profit after tax paid_ 547 - 12 55% • - sales amount - 4360 - • • Prawn sales net profit rat e in nor- -~ ye r- profit a fter tax pa i d gross profit+ i nterest in 3 Uld,a. a - sales amount the cost - indus trial and commercial taxs= profit= ~6bo~= 31.25% profit after tax paid:grosa 4. Managing net profit rate of the complete project 111·.normal year= sales amount 1 252 ')Of_ profit+interest in the cost - industrial and commercial taxs:4360 =28.7,~ Table 9-1 - 2 Calculation of process and sales amount in normal years Uni t: 10000 vuan Item Calculating Uni t price Quantity Amount Remarks unit Prawn seedli ng 10000 50yuan 60000 300 heads Prawn T 15000 2000 3000 Feed T 1100 yuan 6000 660 l OOOT refrige-1 T 2000 yuan 2000 400 quick frozen 60T/day, ice- making 30T/day, rating plant • ci r cu la ting 2 times/ year, charge for process • Total 4360 .) Table 9- 1-3 Calculation of Production and Management of rrawn Project Unit: 10000 yuan Item Unit The first year: 1989 The second year: 1990 sa1.es amount sal.es cost sal~s amount sales cost Remarks q uan ti ty unit amount unit cost q uan tl. ty unit amount unit amount price price price I~ Prawn T 300 1 • 5 450 1 300 1300 1 • 5 1950 1 1300 i ncluding wage 8 and bonus, the Seedling 10 2 50 100 30 60 3 50 150 30 90 rearing, heads • first year is Feed T 1000 o. 11 1 10 0 .1 100 3000 0 . 11 330 300 800, 000 yuan, and the second • Refrigera- ting and T 300 0 . 2 60 0 . 17 50 600 0.2 120 0 . 15 90 year 2 , 800, 000 processing yuan, together Totals 720 510 2550 1780 3,600, 000 yuan, Table 9-1 -4 General Calcul a t ion of Sales Cost in Normal Years of the Prawn Culture Pr oject Unit: 10000 yuan Item of cost Total 1333. 3 hec. 3000 m-' seedling 6000T 1000T r efr i - prawn cost rearing cost f eed cost ger ating pr o- Remarks cess cost 1 • r.a w ma t e r ials 1522. 2 961 . 2 ' - 12 545 4 It 2 . auxil iar y mater ials 150. 8 60. 8 90 3. f uel and power 393. 2 258 16 23. 2 96 • in which: e lectricity 329. 2 224 1,0 11 • 2 84 4 . wage a nd bonus 331 260 30 1 1 30 • .? • wo rkshop expense 53. 8 7 . 8 46 6 . managing expense 227 167 15 ~ 42 7. depreciation 160- 113 15 10 22 8. sale s expense 30 30 9 . common pr oduction expens e 152 150 2 tot al 3020 2000 180 600 240 . I ( I I I I ! . t Table 9- 1- 5 Calculation t a ble o! 20,000 mu prawn f ield sales coat N.o. 8 1/4 Unit: 10. 000Yuan Item Uni t Normal annum cost Uni t cost(yuan) Remarks (10.000yuan) q uan tl. ty uni t sum quantity unit sum price n,..i rA , • seeu.1. .1. ng I vv l!il: llion 6 50 300 1,500 450011 heads or prawn seedling heads per hec. 2 . feed ton 6 , 000 0 .1 1 660 3 1, 100 3 , 300 4500Kg feed per hec. 3. fertilizer ton 20 0.06 1 . 2 0 . 01 600 6 1Kg for 6.67 hec . 4. auxilia ry 60.8 304 Lirtng feed, culture tools, ect. material 5. fuel and power · 258 1,290 among whi ch: power 10 , 000 1,600 0 .1 4 224 0 . 8 1,400 1, 120 666.67 hec. prawn pond consumes K'N-hr 800KW-hr of power. gasoline ton 36 0 . 11 4 o.or8 1,100 20 Diesel oil ton 260 0 .1 26 0 . 013 1, 000 130 6 . Salary and bonus 947 0 . 27 260 0 . 47 2,745 1,300 Basic wage 1700yuan in average per capita per annum. Bonus making up 30% or it, 340 yuan i n a ve r age. 7. Coamon production pumping station and expenses to~ expenses 150 750 s hared. 8 . managing 167 835 Extras, expenses !or travlling and expenses temperature cooling, truck serTice. amonge which: administration 38 190 Expenses or managing orgalzation, organization pumping station, service center,ect~ Serrtce 60 300 To mend the pond and clear of! the expenses s ilt every year, fixed assets majo~ overhaul charge. insurance 30 premium 150 150 yuan per hec. ot prawn pond,3QJi or fixed assets. r 9. deprecia- ~·. u 113 tion 765 Containing depreciation or general company and technical service and prawn pond !ac1llt1ea and pumping station. 10. Salee 30 expenaea 150 Estimation baaed on 1%- or the Talue ot s a les. Amount \ 2 .000 10 fV\n Sub- table of 9-1-5 Calc ulation o f Organiza tion expenses(in Cost o f 20000mu prawn) Un i t . 10000' YUa.D Item general compy . technical consult service quant l t y unit a mount quantl ty unit amount t otal Remarks Price price l • wage and bonus 32 0 . 3125 10 5 0 . 4 2 12 average basic wage 20000yuan per year, bonus make up 30%, q70 vuan f~r ga.P-1ta in r!ll,~ 2 . business expense 32 0 .1 06 3. lf 3 . 6 6 electrici y charge of service center, expense of offical business, temperature coolin~ ::tnrl l .A h r11 1r nrntocti nn • 3. propert y me.nding I charge 12 3 1 5 propert i big reEair ch~rge 4. rd>ad maintal n1 ng 10 6 6 to maintain t he road of • expense n.rawn_!arm 5 . loan in tere.st for 100 7 . 92% 8 8 temporary l oan c~pital cir culatir1g capital b . expense or 1 . 6 0 . 4 2 travel ling_ 7. low-value faci- 2 o . 6 2 . 6 to s ha re 50% of the current l ities expense purchase 8 . low-value expense 1 o. 3 1 • 3 to share 50% of the current to be shared purcha s e 9 . t r affic expense 2 0.5 2 . 5 expense of traffic fuel a.nd r e12ai r 10. insurance 1 0.6 1. 6 based on 2%oo f t he propert--y aO- O f'iA 1 1 • s torage charges 1 1 12. depr eciation 20 1 21 property facility deprecia- t ion renewal 5% t otal 68 12 80 ·, ! i . Table 9-1-6 Sales Cost Calculat ion of 3000m3 Item Unit Noraal aanua cost(10.000Yuan) Unit cost(yuan) Reaarks Quantity Unit price · Aaount Quantity Unit price Amount , l • Raw material 12 20,000 unit cost calculated 6 iri 10 beads. Artemia salina 20, 000 10, 000 e D'"'S 'Il 3 2 6 0. 5 feed T 30 0.13 4 5 1.33u b obb'/ medicine 2 3.333 2 . half- finished 108 300,000 150,000 30 yuan per pan•t material pur- beads 3 30 90 0.5 . chased -o· • , . prawn fuel and . CJ', 3 . 16 26,667 \JI Dower • coal T 300 : 0.014 4. 2 5.0 140 7,000 boiler consumed coal electricity ~o4 -; r,o 0 . 14 10 11. 7 1, 400 16,667 lWhr I gasoline T 10 I o. 1 1 1. 67 1,000 1.667 diesel oil T 10 I o . 1 1 1.67 1 ;ooo 1.667 4.wage and bonus per- 104 0.28 30 17.3 2.885 50,000 average basic wage SOD 1800yuan per person per annum bonus make I 11p 30%, 850yuan per :>erson in aver 5. common pro- - 2 - 3 . 333 including wat er c har - duction espense - ges, expenses to be shared 6 . managing 15 25,000 including expenses expense of business, traYel- ling,truck fuel,lo• ~alue to be shared in which: 10 16,667 big and current re- OYerhaul pair 5%, fixed capital c harges and facility capital, lO.:in interei::t insurance 1 1.007 insurance ~. 7 . depreciation 15 25,000 fixed capital 5% total 180 ~00,000 .. Table 9-1-7 Calculation of 6000T feed processing plant sales cost Item Unit Normal annum cost( l OOOOyuan) Unit cost (yuan) quantit y unit amount quanti ~j unit amount Remarks price price l • raw materials T 545 905. 5 bean cake T 2,4UO O. U'/ lbB U.4 /OU 250 prescrept1on 4v~ bran T 300 0.04 12 0.05 400 20 prescreption 5% flour 'IJ 600 0 . 07 42 . 0 . 1 700 70 prescreption 10% Prawn meal T 900 0.08 72 0 .1 5 800 120 prescreption 15% fish powder T 1, 200 0.15 180 0 . 2 1,500 300 prescreption 20% growth hormone T 70 0 . 5 35 0 . 012 5,000 58. 3 prescreption 1% fresh feed T 600 0.06 36 0.10 600 60 prescreption 10% • 2 • diesel oil T 35 0. 1 3 . 5 0.06 1,000 6 3 . coal '11 850 0 . 01 8 . 5 0.014 100 14 • 4. electricity 1o'+ 80 0 . 14 11. 2 0.013 1,400 18.7 ' KWhr 5. wage and bonus person 38 0 . 29 l 1 2, 900 18.3 aTer. wage 1800yuan per capi- ta, bonus 30% of the total amount, aTer. 870 yuan per capita 6. w.orksho p expense ; 1Q'+ 7.8 15 including labour protection, yuan expenses of overall, tern- perature cooling, test and chemical examination 7. managing 101+ expense yuan 3 5 including expenses of business travlling, circulate capital interest, low value to be ehRred insuranc 1off 1 1 • 7 21,"property yuan 8. fixed property 104 10 16.7 5%. property depreciation total 600 ... Table 9-1-8 Calculation of 1000T Refrigerating Plant Sales Cost Normal annum cost Unit cost (yuan) Remarks Item Unit quantity unit total quantity unit total price price ' 1 • Raw material 4 20 in which: liquic 'II 20 0 .1 5 a.or 1500 1s NH3 3 2 . Fuel and 480 power 96 in which: electricity 1 o, 000 600 0.14 84 0.3 1400 420 KW-hr gasoline T 70 o. 11 7 . 7 0.--035 1100 35.7 • diesel oil Tl 30 0 . 12 3.6 0 . 0 15 1200 18 other fuel 0 . 7 3.5 aver. basic wage 2000 yuan, bonus 30%, aver • l OOOyuan • per capita · 3. Wage and person 86 0 . 35 30 150 in which: circulate ca pital bonus interest 160,000 yuari1 , expense of research and test, ect. 4. Workshop 230 for workshop equipment expense 46 i.n which: lubricant 5 0 . 2 1 5 5. managing 42 210 in which: circulate capital expense interest 160, 000yuanp expense of business, tralling, low Yalue goods to be shared. in whic h: repair charge 22 1 10 property big repair j% , curren1 re~a.~ insura11ce 1 5 to a ,ialue of prope1ftyfaclTI-: ... ties and s t orai?e goods 2%c . 6 . depreciation 5% 1 22 110 fixed capital 5% Total 2. 40 I 2. oo ' '.'- ~ ,i ' • •. "' : - .. , ' ' ' • ~ ' " • ~ " • • K • "' - •-,, •• , • ~ • • • - ~ , r_ "' ' ,C 7'•l • ., , , .., ~; ~ , ••~ ~ • ,.,• ;;, , , I _ c a • C 1 1.0 SJ X .. ~ - - - . - - . - - 1 •-•. A . . Table 9-2-1 Cash Flow in the Total lnTestment ea the Prawn Culture Project Unit: 10,000 yuan I ; Amoun~~;;r 1989 1990 I' 1991 I 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total ~ l . _:;::=:-. 1:1.~_Q',/ 1 . sc:.es ir_,... o-:e 720 2550 4360 4360 4360 4360 4360 4360 4360 4360 4360 4360 4360 4360 4360 4360 4360 81750 1 RH=8 . 4% + 266Lh 3 X(30% - 8.4%) / ( 2664. 3 + 2989.4 ): 18.58% 12 + 173.7/438.7=12.4 ( year) ' ~-- . :~e2dJ i~v . 8 + 533/1127=8.47 (yea~ ) :--:>':Jr:1 ti -:-:e - .I. . :.-::::-c:·/ :"::'"t.:.J !""~~ -==-~=... ~~ ""::::e i ~. 1252/(7329 + 1585)X1 00~=14.05% '-[~;;~r~!:~e f~~!_ ___:427 4 f-7934 1-6594 ;-5254 1-3914, -2787 f1660 1-533 ' 5-94_...,_[_· _17_2_1_,_2_9_7_3 __._4_22__ 5 __L_ 5_4_77__ .L. 6_7_2_9_-''-7-9_8_1 ___._9_2_33_....__1_0__ 485 • 68. ~-· - .' I ' : ~- - ~ ' S <, - 0, '•./•>••fr, 't ••, \( -'::,:t,, \'.•-• ! • ~'J:.• • ,i..., • 'I • f -~ • •... • - ' Table 9- 2- 2 Ca sh Fl ow i n t he Inyest ment on th~ PraW1l · Cultuwe Project with 10% lllcrease of ~st I Year 2006 Tota Amoant or 1989 1990 199 1 1992 1993 1994 1995 19 96 1997 1998 1999 2000 2001 2002 2003 2004 2005 12;,, 6 -I 'I ~ I • :,• ·::- '=' _:__ >, : r. ·1 • r>:?':.. .i1 :·~ : 2.. -~.~ • 19 + 212. 8/355-4=19,6~ ( y ears ) ~~II , S:~2~/ !nv . r e ~urn tj Te 10 + 9 24/ 950= 10,97 ( y ears ) I:<. S-:e :·c' y re:'__) rn ~r-of: t ~c ~e ir1 950/(9329 + 1585)X100%= 10.66% r.o, ·:: ,· l /-er • 69. Table 9-i-J Cash Flow in the lnTest ment on t he Prawn Culture Project with 10% Decrease of Selling Price I nn -1 t,_. ,r . ()(){)v- n ... . ho:".~~ear 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 200~ 2004 2005 2006 2007 2008 Total l-~--=-==----__::::c'f----+---+----+---1f.------1-~--t------1r-----+-----1----1--- 1----+---+---+-- -+------+--+---t----r--:----r i I• Cash inflow 6 48 2295 3924 3924 3924 3924 3924 3924 3924 3924 3924_ 392~ _ 3924t-_3924I 392,. 1 . sales income __ _ -'1 39241 733 733 2. c oef:icient -=--if _:_1o·, to_:_r =-.·c_:_o:...:n:...: cashv:..:..e:_r_.=:_s_ P'-'30i.:::..n-=-g_:__-+- •--7-6_9_2_ +-·-5__ 9 _1_ 7_ 1-• 4_5_5_2_ -+·-3_5_0_1_+i-_2_6_9_3_ ier2- 0_7_2_ --t·-1_5_9_4_t-· _, 2_2_6__ --t1o_0 _9_4_3_t-· -0_7_25_--t·-0_5_5_8-t-·-o__ 4 _2_9--+-· 0_3_3_ ·1. 0254 l- net cash va l ue - 3342.9~2316.5 411.6 ~16.5 243.4 145 r11.6 85.8 66 50.8 46 3 5 .4 27.2 21 VI , Do mestic rate 1RR=8.4% + 951. 6X(30% - 8.4%)/(951.6. + 4039.9)=12.52% of rt: 1::1rn !VII. "'.ob i .'..e inv . 20 + 951.5/310.5=23 (years) :--eturn t irr:e ~ III, Ste2d y inv. 12 + 399/825=12.4e ( year s) r eturn tiine IX . Stea~ y return 8 25/(7329 + 1585 ) X100%=9.25% ;:irofi t r ete in :-.orm ,,l :,'e er 2 4 \~ -:: ~~g~;:_~_tb,;_! ___:~3~.6 _ J-=~~1I 2:J_~-~-~-:..~[5~J-~~ :~9·-1:~~~-:t~~L:_~_1_-_ ?__9 _ _8_04 9_J:~22 4- ~9 rL~~fz?~-==-r;~_0_7_6_i.;;. ,~ 1; ;;,~ 155 , ~ r;;~~1~9 34 L~ -, • '10 • -,,, .~.. Table 9-2-4 Calculation of Cash Balance on tho Prawn Culture Project Uni t : 10, 000 yuan l I I l••o~~:-;~ r ' 1989 I 1990 1 1991 I 1992 1993 199 4 1995 1996 I J 997 1998 1999 2000 2001 2002 2004 2005 2006 2007 2008 Total ~ ' I 1 1 1 1,so• urceAm o untof ofcash 4'"'141 5368 1625 1625 l 6 25 141-2 Ji 14 12 141 2 14 12 141 2 1412 1412 t-1412 1412 14 12 1412 1 4 12 1412 1'-,.12 1 41 2 ..;uz c. l 6 4 1-=-1 • Sale,; profit-- --2-.-, o- ---77_0__ 1_3 4_0-~1_3_4_0-+-13_4_0-,--1-1_2_7-,-1- 1_2_7---j- 1-12- 7--i-- 1-1-2--t7 - 1--12? 1252 125~ 1252 j 1252 1252 1252 __1 _~5_2___,._ 1_,_5_2_ 12-5=2=: =_1- 2=5=2======2=3=1=5-....,5 r z~reciatron__ _ 26 1 I 1 i of fix ed ass ets 94 160 160 160 160 I 160 160 160 160 I 160 160 ~ 60 160 ___1 6_0___ __16 _() 160 16u-+__ 16_ 0_!--_1....=.6_0_ -t---~30_00-t- 1- i -nc-=-1u-,-di'-ng- :·------~------..---+----\ I ~ I \ 1j 1 a. r e t 1rn of 24 21 21 131 28 \ 8 1 \ oo 03 I I loa n 1 1 1 2 i ~ 00 100 ~~:, 1 I i · 1 2 r o~- ren.i?warana--r---- ;::------,------t--~,-----J--r------r--~--i I i reform ___.--,-1. ____~__ __7 _3____ 2_ 9_+--_1 3_2--i__ 3_ 2 __6_ o___ 6_ 0 _ 60 _ 60 . 60 i ~___!_~~i___ ..].60L 1~~~ ~Q___!J_60 1---1.§9_-+-_1-=6'-0-+-·-'--16~0~--r--~1~9'~6~8 1 ~L-Oan- f o r J j I j ---r ,' ! ! 1, ,_ ~ 329 ; ci r e ula ti on in v. 1 4 l 84 3 45 I I --+----t------+---~----r-----+-----,- ---+- - i;~- -Loa_n_ f_o ;-~-i -r ~- r-30_0 ______-12 -85------r---\-- i -r I i =1~ I I , cula t ing capi tal ! I I i i 1~ _i 5 . Div-id:e:n_d--d~-~- -,--2-1____ 74 __ !_1_2_5___ 1_ 2_5_1 125 1;5 ' 125 ;-;; C 125 1 125 I ---=r-·--, -- ~ L 1095: 1 Distribution 1.JI • I · ~ : ~ · \ ~ I I of cas h ·, 4741 · 5368 _1 1625 1625 6 I ' 4 J~ 4 ,;,; 64 L . '----,---1 1_ _2_5_....,._1_4_1_2__ ,_ 1_4_12 41? _14.1 ;, 1 1, .12 ·,· 1412 1 12 1_1±.l_2 I 141 _~ _,_J_ ~412 1 _4_1_2__ ,__ 1~ 4_12_-r-1_4_12 1 1 2,=___--+-'1..1.'...1=-2--+---·.L.Y.-'-'1 ><.::r..,j I l l~penart ure I , I I I J i on c ons truction I 4184 , 3 11+5 I ' 7329 r project i ; I -! J :~ 2. Posses sior, of t--1 ,COO ! . -+------1-----;------i'r ,-----+------3 8 I circula t ing c ash ~ , l 2 5 1 1 SR<; ! ; 1 1 I G-: Re u;-;-~c~ ----r-- --·1---"- I'-----+----+----,----,---- \ rita~ o: ,ho boao I : I 890 I9 57 914 I l 1lfil. j In;f~f~~~~ I 2~ I 21 ! 13 1 128 128 I ,oo 00 ' "" J -· ----~---i---~----i-----f----10-:i;2 100 1 '::___]22_.:- 1--==-- 1~-i?e-turn-ofa1- I 11 2 I ~ lrldeod of t be 55 81 4 1 706 636 560 1478 ' 409 334 253 166 72 1,683 ~:::udiog , dirt- 21 i 74 l-----+------>-----1-----,-- ~- I - ---t- ~095 1 1 1 5 1 1 1 1 1 1 ::n~.:~ ~:•~=~· ·1 2 1 124 : _i;_:_~_;_:_ ~__: 0____,_ __: _: ___ :_; _ __ - _:_;__ ,_ :_~_ __,__4_2_6_·__.._14_ ,-2___ 1 4_ 1_-;-1_ ~ -~-4~1-~2~~~-1_4~1~2~~~~1-4_._-,_-2_-_-t_-_1~4~1~2~~~-1:4_-1_2~-~~~1~4~1-_2~~:~1_4 -1~2~~-_,____ 1_ 3_6_5_3--i • 7. 1 e Table 9-3 Economic Profit · Plan of Prawn Culture Project Investment Unil_;_]_O.._Q IQ_Qy_ua_ n - ve:ir Item Amount 1989 1990 1991 1992 1993 199 4-1998 1999- 2008 Total of 6-10 years Total of 11-20 years 1 • Total invest- ment 8914 4484 4430 a . Capital inv. 7329 4184 3145 loan ,~ b. Circulate capital loan 1585 300 1285 Sales amount 81750 720 2550 4360 4360 4360 4360X5=21800 4360X10=43600 • 2 • - 3020X5=15100 2895X10=28950 3 . Gross cost 55400 510 1780 3020 3020 3020 - 4. Fixed ca pital .3000· 160 l 60X5=800 160X10=1600 • depreciation 26 94 160 160 in which: listed 160 160 160X5=800 160X10=1600 cost depreciation 3000 26 94 160 5. Fixed capital 733 remain value 733 6. Tax 3195 213X5= 1065 213Xl0=2 130 7. Net profit 23 155 210 770 1340 1340 1340 11 27X5:r::5635 1252X l0=12520 J..fert decucti --m o: t he interest 1 , ? 5".i , ~:')~ :,r.J 2n, depY-eci2ti0n -; , G>cr , oo'l y-.1 2.r, and business tex 2 , 130,0:Y"' y.1 ar., 2 f oreign · ·rro~ c,• Q.t:" P.Q'J r V""'\() T" C l 'l..--- ... 1 ..... - 4· , - .... , .... JJ....., v . S • dollere ~ill be cre2ted . The uro- fit i s 1 1:, 580, 000 yue.n ir. ever. per e.nm::n . Refer to 9 - 3 - 2 9 . 4 Evalu2tion of n?tional econo:nics When the project is completed, 117:' persor.s i,,.;:.11 get exployment. The w2 ge plus t.onus is 2682 y·..;e.n in zver. per cap:.te per e.nnu~ . c. . i-.: atione.l inc ome net 2ccru2.l ( 20 years t otal v2.l ue) ?rofit + 7ax + W2ge=23 ~550000+31 950000~E31 80~00 =32668JOJO ( y02.n) b . l~etio:12.l income re.t e o: the proj ect investmer,t: enn~al net ?C~ rue.l x~ooc· 3?6EBO'XY)/?C' 1 total i nvest~ent • ~ = 39 ;1Z: 0000 c . Social i nvest~ent profit rate d . Result of sol ving the pro::lem rur2.l surplus labour can be expressed by the nu::iber of persons e:::pioye d through per 10 , 000 yuan invest ~ent: ~ mp 1 oyment Resul t 117~5 =0 . 13 ( heac / 10000 ~an ) 89 1 1 'l'he above shows that t h e proj ect is f eesit:le ot:viously e.nd it corr::orms to the result, c:: econo:nic evaluc:tion • • 73 . -~· Table 9-3-2 Pr ofit Calculation oC t he Prawn Culture Proj ect Uni t .· 10 • 000 yuan 20 year 1989 1990 199 1 1992 1993 1994 1995 1996 1997 1998 1999 to 2008 t o t al ~m 1. Sales amount 81 , 750 720 2,550 4, 360 4,360 4,360 4, 360 4,360 4, 360 4, 360 4, 360 4360X 10=43600 2. Sales cost 55, 400 510 1,780 3, 020 3, 020 3, 020 3,020 3,020 3,020 3,020 3, 020 2895X10=28950 i n which: deprecia- tion 3, 000 26 94 160 160 160 160 160 160 160 160 160X10=1600 • circulate capital 1, 095 21 74 125 125 125 125 125 125 125 125 interest • 3 . Sales tax 3, 195 213 213 213 213 213 213X 10=2 130 4. gross prof it 23 ,1 55 210 770 1,340 1, 340 1, 340 1, 127 1, 127 1, 127 1,1 27 1 , 12 7 1252X10= 12520 5. income tax - 6. profit 23, 155 210 770 l , 340 1,340 1, 340 1, 127 1, 127 1 , 127 1,1 27 1, 127 1252X 10=12520 7. tot.a l -- i nvestment 3, 588 334 640 58 1 511 435 353 284 209 128 41 72 8. net profi t 19, 567 -1 27 130 759 829 905 774 843 918 999 1, 086 12448 The above shows that the project is feasible, it com forms to the results of economic evaluation. 9.5 Analysis of Sensitivity and Risk 9.5.1 Calculation of bread even point By Calculation on an annual yield of 1.5 T per hec. in normal years when the project is completed, the annual yield is 2000T and the total sales cost is 20,000,000 yuan, in which: the fixed cost is 4,310,000 yuan, variable cost 15,690, 000 yuan, aver. price 7845 yuan/T, selling price 15000 yuan/T. Calculation Formula: · annual total cost 4310000 ------=----'------unit selling price - unit variable cost price 15000. ~ 7845 =602.4T This is, provided the annual prawn yield comes to 602.4T in normal years, there will be no profit and no loss in sales amount and sales cost. The revenue and expenditure will be balanced. 9.5.2 Sensitivity Analysis The internal rate of return in the design plan is ob tained by making. use of such basic data as income, cost, atnd expenditure in the caish flow of the construction project. Since many factors influence investment effect, involving numerous data and calculations, we shall analyze only th~ two main factors, namely ssles price and s ales cost. The result is shown as follows: ,. • 75. ~ate of variation Internal Rate Internal Rate of of Return% Return Compared with the original It~m .,' . -...... ___ ' I % I Initial state 18 . 58 10% increase of sales cost 9.09 - 9.49 10% decrease of mana- gement price 12. 52 - 6. 06 From the abo.ve :.able, it can be known that this project is comparatively sensitive t o sales price and sales cost • • 76. Table 9-5 Fixed .Cost Calcul ation of Prawn Culture Project Unit: 10,000yuan - Basic Fixed Low I nsurance Adverti- i efrige- Daily Mid and Daily Total ;~tam wage capital value sing fee rating illumi- lbngterm fixed fixed depre- to be equipment nation loan expense expense elation shared minimum elect ri- interest cost ting uni electri- city Ca L' city con- charges sumet ion 1. 20000mu 182 11 3 2 30 3 2 95 4 431 prawn farm 2 . 3000 m3 seedling 21 15 0 . 5 1 0.5 8 1 47 • rearing room 3. 6000T 8 10 0.5 1 e.5 16 1 37 • feed plant 4 . 10 T re- frigerating 21 22 1 1 14 1 6 1 67 plant Total 232 160 4 33 3 14 4 125 7 582 . fixed cost amount ( 1 ) proJect break even sales amoun t = t ax int erest/sales amount total amount of fixed cost 431 ( 2 ) prawn break even sales amount = tax interest/sal es amount= 100073000 =1293. 1 (10000yuan) Table 9- 5 Cost calculation of profit and loss of the pr awn culture pr oject Unit: 10, 000 yuan I tem Uni t Total sales Project cost Calculation f ormula amo unt total in which of the break even ppint cos t variable fixed cost cost prawn 2 , 000 431/( 1.50- 0 . 7845)=602 iff.T l • farm T 3 , 000 l , 569 431 • 2. seedling r ea- o . 1 bil- 300 180 133 47 47/(50- 22. 17)=1.688(0. lbillion ring room '..,lion heiads) heads I 3 . feed plant T 660 600 563 37 37/(0. 11 - 0 . 0938)=2284T 4. refrigerating • plant T 400 240 173 67 67/(0. 2- 0 . 0865)=590T I in which: prawn 1. 5T (1 , 569) (582) 582/(l . 50/7843)=813. 4T • Total 4 ,360 3 , 020 2, 438 582 582/(2. 18-1. 219)=605. 6T Description: (plea se r e fer t o above calculation formulas) 1. When the project is completed and put into oper ation, in each normal year 1333. 3 bee. of prawns will be cultured, wi th per hec . yield 1.5T , total yield 2000T. The t otal cost wi ll b1~ 20, 000, 000 yuan. in which: the fixed cost is 2155 yuan/'11, the total cost · 4,310,ooo yuan, the varialble cost 7845/T-yuan and the t otal cost 15, 690, 000 yuan. The br ead even point is 602. 4T . 2 . Calculated based on the total cost, f i xed cost and the variable cost, and t he prann selling price 15000 yuan/T, the break even point is 813. 4T . 3.By ealculated based on the t o tal sales amount, total cost, total variable cost a nd f:ixed cost, as well as the aver. unit price, the break even point is 605. 6T. The break even points of iindividul items a re listed in the table. Pr ovided the prawn yield is 602. 4T , ~here will be no pr ofit and no loss in the sales amount and the cost. The revenue and expenditure will be balanced. 9.5.3 Analysis of Risks T.his project area sometimes may be threatened by disas ters like drought, flood, hail storm and dry hot wind, but it is not affected by typhoon, and its sea area is free of pollu tion. This will result in less risks in culture of prawns. For the past 100 years, only occurred one stormy , tide of 3 . 8m in height (The Yellow Sea high scale). According to rese~rch con~ clusion given by oceanography experts after investigating the coast of the Yellow River Estuary Zone, the dam againest tide in the district is 4.8m high and is able to bear strong tide 3.8m high. 10. CONCLUSION OF THE FISIBILITY STUDY Through analysis and demonstration in part 9, we are of the opinion that the natural condition, economic condition and the condition of ecological environment and biological resources are all good, and merit the feasibility of this project. This is a systemati~ and comprehensive project of deve lopment, from seedling rearing, freezing, processing to selling. The intended project is to be 20 years in life span, and 89.14 milliom yuan in investment. Comprehensive internal rate of return is 18.58%. Time of investment return. is 12. 4 years We propose to be given the loan, and to be supervised on the progress of the project~ Fishery exploitation head company of the Rekou District has to strengthen supervision and .mana&ement of the project. We recommend that emphasis be placed on the construction of prawn culture base, on improving seedling, feed, cold storage system, as well as on consultation service so as to insure the quantity and quality of prawns <· cultured. At the same time, close watch is needed to under stand market trends and . market information so that better economic results of the project can be realized • • 79. Layout of 3000m3 seedling-rearing field s ource of -{pumping room~ sea water Maxin! de River I high l evel pond~ - - - --r----. di stri.bution boiler Artemi,'. S81ina station r om hatchin room • drain seedling- rearing 0:, room 0 • seedling-rearing lrain room ,~<-~!seedling- rearing room , seedling-rearing room j s tor_a_g_e_ _._ __d _o_r_m_i _t_o_r_y~ ·1...__f__ e_e_c_l~r-'-o -'-o_m__ J !dormitory office t edmic al.ts--.- ~------~ s ervice highwc=iy 1000 TON COLD STOR;...GE L .L.YOUT Distributio:- ~i2.nufac -t:ure stetion ar ez ~ori:!itory Quick frozen ice mal:ing ~ormitory 30 ton 1:: ton 1------~ transformer st2tion 40'J ton colc. s-:cra gel loffice towe:- distribution st2.tion quick frozen ice :-nal~i::-.§ 30 ton 10 ton \col d storage 600 t onl \ ..L.~~ ~v~~o C. V .,....··- y Jmanufactor y I • 81 • Layout of 40S'.) ton feed processing plz.nt i n Hekou District t hE ground to dry ~aterials i n thE sun v,:orksl:.op stor e for I. store for :finis!'1eci r aw m2.terie.ls J. n:--od~cts I of~ice / ..1---l --- · dormitor y .1 ..._1__a_v_2._t_o_r_")_r _ ___.] _ hi ghw2y • • 82 . GUARANTEE CERTIFICATE T,his district plans to make use of a loan of 29,,a30,ooo yuan from the World Bank to exploit 20,000mu of sea beaches for the culture or prawns. The project is to be put into production in the ye~r 1990. Return of the loan can be drawn from profit gained,and will be paid off in time according to circulating cash recovery. We are convined through investigation that the project is feasible: Our district already has some foundations about prawn culture, having a group of scientific and technological personnel and a complete system of management. By stressing on guidance, effective management, and making good use of the capital, we believe a more ideal economic income can be rea lized. The Finance Bureau, of Hekou has agreed to use the loan " . from the World Ba~k and will guarantee the repayment of the loan on ti me. • 83 • GUARAN~ EE CERTIFICATE OF ELECTRIC POWER SUPPLY Accoroting, to the electric load condition in our district, the electric company will guarantee the· power supply f or the foll owing cons umers: 60 m3/s Pumping station 3ooom3 Water seedling rearing room 6000T Feed processing factory 1000T Refri~rating pl ant and miscellaneour electric appliances for daily life. ~he total capacity of the a bove consumers is within 4000KW. The power i s solely used in the development project of 20000 mu sea prawn breeding along C,ao-Qiao-Gou, supported by the World Bank investment. Hekou Electric Company Jan. 13, 1988 • 84 . CERTIFICATE Our district is planni ng to exploit 20.000 mu of sea beaches along the two sides of Cao-Qiao-Gou RiTer for the culture of prawns. Cao-Qiao-Gou is located in the middle part of Hekou district. There is a fresh water reservoir in the upper reaches of Cao-Qiao-Gou a nd in the lower reaches a check gate is newly installed for water to pass through into the s ea. The organization will guarantee water of high quali ty and no pollution. The area is very suitable for prawn breeding. ' . tion • 85 . ANALYSIS OF QUALITY OP SEAWATER AT CAOOIAOGOU HEKOU DISTRICT According to the contract signed by the Plan Commission of Hekou District and the Environmental Watch Station of Dong~ ying city, the l at er had analyzed the quality of water sample taken from the place pointed out by the former. Based o~ na tional specificati ons for environmental survey, we report herewith the r esult of analysis as follows : 1 . Degree of color : l ess than 50 2 . Smell: without abnormal smell 3 . Floating matter: none 4. Dissolved oxygen: 9 . 1 5 mg/L 5. Biochemical need for oxygen in five days : 0 . 26 mg/L 6. Suspended substance : 8 . 65 mg/L 7 . Ph- value: 8 . 35 8 . Mercury: 0 .0005 mg/L 9 . Copper: <. 0 . 01 1.rig/L 10 . Lead : < 0 . 1 mg/L 11 . Zinc: <:.. 0 . 1 mg/L 12. Cadmium : , 0 . 0005 mg/L 1; . Arsenic: <.. 0 . 007 mg/L 14. Cyanide: <.0 . 004 mg/L 15 . Voltile phenols: ~ 0 . 001 mg/L 16. Sulphuret: ..::... 0 . 02 mg/L 17 . Chromium (VI) <:. 0 . 016 rng/L 18. Petroleum: 0 . 004 mg/L The above results of analysis from s amples show t hat t he water quality is good . Concentration of pollution source will not affect the pr awn culture quality. tion y Co~ments_on_Studt_and_Proving_of_~~~ Feasibiliti_for_the_Prawn_Farming_Pf~j~~~ in_Hekou_District_, _Don~yin~_Count y_ We have m~d e an investigation and proving on the Feasibil ity Research Report on Prawn Farming Project using· loans from the World Bank in Hekou Distr ict • 1 • On the basis of ' the Fi ve- year Programme of Devel op ment of Mar iculture of Shandong Province 'and ' the Seventh Five- Year Plan of Development of National Economy and Society Of ._ Hekou Distr ict ' , the Report was proposed • On t he principle of a practical & rea l istic , s uit ing measur es to l ocal conditi ons , giving play to superior ity and comprehensiv e develop ment ·as well as implementation step by step , the design plan , technological process and orga nization 1 man~gement were put forward after investigating and analysing the detailed conditions of marketing , social , natural and technical along with goods & materials . The analys is of f inancial & economic benefit , susceptibility and risk were made also , and the plan and measures of fund - raised & loan r epaid therefore were wor ked out , and so did the • 1 • construction implement plan . The Report is feasible because it contains wide contents , r ich materials and r ational procedure . 2 . The Report follows right guidline policy , which consider not only long - term programme , developing abundant resources and economic benefit of the project, but also current conditions , comprehensive exploiting utilization and making peasants richen and give consideration to national , collective and individual benefit • 3. The Report made a practical and r ealistic proof to the advantage and bad factors of the project site. The project site has a good natural situation with smooth t errain and it i s easy to construction . There are abundant nutritive salts and organic m~tt_ers in sea water. Local industrial & agr iculture prqduction don·'t poll~te sea water and there. is no epidemic infectious_. The project site , where the climate and water temperature is suitable for prawn farming , is of monsoon climate with bigger wind in w~nter and in spring .smaller wind in summer and in autumn . It is said that in history data no r isk wind appears • . 2. The sea tide is of r egular half - day tide which highest tide is 3 . 8 metres and its biggest tidal range is 3 .1 metres no dangerous to the project • In the project site ther·e are good social environment , convenient transportation & communication and plenty of labours as well as more fishery science & technology personnel who possess rich experience of prawn farming and establish technical coordinate relations with science research institutes~ Plenty of main goods & materials will be supplied , and there are advantage of water and electricity power. The analysis of the project r isk is r ational , too • The biggest wind in Hekou District is fore 8 wind • There is no violent $torm tide .so the project damage will be little , moreover, it is taken account of in the design programme . • 4 • The design programme in the Report is feasible . . . The .tide dam was designed aceording to the biggest . . . . tide level of 3.8 metres appeared one time in a century from history ctata anct no requirement of rock 0utsiae tide dam face due to its soil structure in Hekou D:L°strict ( see to tables 7 pag e ) • The prawn pond and pump station were designed accordance with .3. high standa rd , high qua lity and htgh benefit desibn norm promulgated by Shandong Province a nd pract ical conditions of. the project site , 2nd the hatchery , feed plant and cold-storage and so on were considered for the purpose of economy and requirement of subsidiary facilities. Therefore , the design programme is reasonable . 5 . The management suggestion from the Report .be scientific .and feasible . On the principle of simplify, the intentive plan of management is both to cut off management administr ative levels to strengthen . . technicians and labours and to give consideration to the whole works of General Corporation so as to become a high efficacy management organization. 6 . The technical programme , productive technological process in -the Report were put forward relying on pre.sent more advanced techniques and equipment in domestic and protection of environment • In a·word the prawn ·farming technology is feasible . 7 • Through analysing and verifying financial & economic and social benefit as ·well as financial .4. data of the project cost & pro1it. concerned carefully, it was considered that had theoretical proof and various list data is right and with well linking up relations. The domestic capital has been practicable. By both static state and dynamic analysis the economic benefit is much better and its repaying capital with interest of fund borrowed can be quaranteed. In point of national economy , the effect is better , too . In brief , the project has been analysed and pr oved on both _macroscopic and microcosmos respects and consider ed to be feasible . It will lay a good foundation for development of Yellow River Delta. So. the resear ch conclusion of the Report -was agreed. . 5. List of Feasibility Research Group in Hekou District I • 1 Name Unit Professional Title Signature ------ Shandong Mariculture Institute Researcher Zhang Jin Cheng Advisor Group of Prawn of Agriculture Ministry Fishery School of Qingda o Oceanic Associate Professor fang Ke Xing University I Ad~isor Group of Prawn of Agriculture I Ministry Huanghai Aquatic Products Research :ang Cong Hai -Deputy Researcher Institute of China Aquatic Products ______..__ A_c _a_d_e_m_,,y'------_____ . ______- ! ang Ru Cai I Fishery School of Qingdao Oceanic Associate Professor _...\ _ _ u_n_i _v_e_r_s_i_t y______. ------·------_ I I nen Da Gang Fishery School of Qing_dao Oceanic Associate Professor I I University I I _J ----..- systerr. Cl> ti) 1 • Seedling re2.r2.!1g 10 1 5 50 75 room ? Feed pr o- 1 10 1 "1 -· cessing room Sum 11 8 19 38 I . fa.dminist r e. - t ion ,.., 1 • :)irector 2 c.. >, 7 2 . Office 1 .-' 4 M 0 +> Il . Technique 0 management r 3 .,I 0 0 3 . Finance M 'i -::. ..,~ P., dept.