Abstract:
A methodology was developed to perform economic and financial feasibility
for a precast concrete factory which is expected to produce beams, slabs,
columns and stairs. The aim was to find a low cost alternative to contribute in
solving the housing problem in Sudan. The methodology compromise twelve
steps to be followed in order to achieve the financial goals of the industry
owners. An organizational chart for the proposed factory was developed, and
the demand on housing within the study area (Khartoum State) was identified
considering the time period 2001 to 2006.
A sample project consisting of 8 blocks was considered assuming that it would
be constructed using precast concrete elements produced by the proposed
factory .The cost of such project was compared with that of a similar project
that is constructed using insitu reinforced concrete .
The study showed that the use of precast concrete resulted in considerable
saving range from 30% to 37% in the required concrete and almost half (44%-
50%) of the reinforcing bars required quantity. It was also evident from the
const analysis exercise that the cost of producing slabs is lessened by about
USD 13/m2 when precast concrete is used instead of the traditional insitu
concrete.
Thus the overall cost reduction for one unit of the proposed compared was
found to be 50% resulting from the cost savings as precast elements (beams and
columns) are used.
The financial analysis results have also confirmed that factory would have a
29% internal rate of return with a simple interest rate of 26% in the third year
of operation. The investment proposal has had a break-even point at 27% with a
2.8 year back pay period .The sensitivity analysis showed the project feasibility
would greatly be affected by any fluctuations in the cost of raw material.
