THE COSTING OF EDUCATIONAL PROJECTS A case study of a Science College

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THE COSTING OF EDUCATIONAL PROJECTS A case study of a Science College

  1. 1. THE COSTING OF EDUCATIONAL PROJECTS A case study of a Science College By Nasir Ahmad
  2. 2. Slide 2 Description of the project  SITE :- Islamabad (Ten Acers provided by CDA) Programme offers :- Four years (IX – XII) Two sections in each class (8 sections) Enrollment:- 40 students/section (Total students 320) Design:- Principal office 1 Typist office 1 Clerical office 1 Staff room 1 Library 1 Hall 1 W.C Blocks 2 Classrooms 6 Laboratories 2 Laboratory Stores 2
  3. 3. Slide 3 Construction Cost Total Construction Cost :- 1,749,000 ITEM Size/sq. ft Cost per sq.ft/ Rs. Cost per unit/ Rs. No. Units Total cost/Rs. Principal’s of. 180 150 27,000 1 27,000 Typist office 100 140 14,000 1 14,000 Clerical office 300 150 45,000 1 45,000 Staff room 600 150 90,000 1 90,000 Library 1100 175 192,500 1 192,500 Hall 1500 175 262,500 1 262,500 W.C Blocks 250 190 47,500 2 95,000 Classrooms 500 150 75,000 6 450,000 Laboratories 2 272,000 Lab Stories 2 38,000 Circulation 900 150 135 135,000
  4. 4. Slide 4 Cost of Furniture and equipment ITEM Furniture/Equipment Total cost/Rs. Principal’s offfice Furniture 7,000 Typist office Furniture 3,000 Staff room Furniture 6,000 Library Furniture/Books 50,000 Hall Furniture 50,000 Textbooks 12,00*8 96,000 Stationary 15,000 Classrooms Furniture 72,000 Laboratories Furniture/Gas installation/Equipme nt 265,000
  5. 5. Slide 5 Phasing the Cost • Capital Cost 1 site development 2 Construction of School building 3 Furniture and equipment • Phasing of construction Cost/ Rs.000 Item Y0 Y1 Y2 Total Site 130.0 130.0 Building 78.2 963 577.8 1619.0 Total 208.2 963.0 577.8 1749.0
  6. 6. Slide 6 Phasing the Cost (Continue) • Phasing of Furniture and Equipment cost/000 Item Y0 Y1 Y2 Total Heavy - 105.0 - 105.0 Light - - - 399.0 Total - 105.0 - 504.0
  7. 7. Slide 7 Recurring Cost • Recurring Cost (Salaries, maintenance and repair, rent etc) • Teacher cost/ooo (Pay scale 36000-2000-48000) Year Principal salary Teachers salary Total 3 1 40+12 8 288 348 4 12 508 508 5 532 6 556 7 580 8 604 9 628 10 636 11-22
  8. 8. Slide 8 Other recurring cost Year Rent Ancillary staff Maintenance Fixed Grant Total 0 30 30 1 30 30 2 30 30 3 30 111.5 40 181.5 4 30 84. 40 181.5 5 30 88 40 185.5 6 30 88 40 185.5 7 30 92 50 40 139.5 8 30 92 50 40 239.5 9 30 96 50 40 243.5 10 30 96 50 40 234.5 11-22 100 50 40 247.5
  9. 9. Slide 9 Appraising the Project The project will be appraised in two stages • Annual Statement of benefit and cost • Calculation of the NPV (Net Present value and IRR (Internal Rate of Return)  Annual Statement of benefit and cost i. Life of project (20 years i.e. from Y3- Y22) ii. Enrollment (From Y3) one class will be added each year Full capacity in Y6 iii Fee per 4000 annum per student
  10. 10. Slide 10 Annual Statement of benefit and cost year cost year cost 0 282.3 12 396.5 1 1098 13 396.5 2 1006.8 14 396.5 3 209.5 15 396.5 4 49.5 16 396.5 5 242.5 17 396.5 6 538.5 18 396.5 7 460.5 19 396.5 8 436.5 20 396.5 9 275.5 21 396.5 10 400.5 22 2542.5 11 396.5
  11. 11. Slide 11 Calculation of NPV and IRR NPV at 10 percent= (Bt-Ct) (1+r)t = 188.1 NPV at 14 percent = -530.6 IRR= ri + ru NPVi NPV-NPVu = 11.05 Conclusion:- we safely conclude that IRR is positive and all cost will be recovered during the period of 20 years, with compound interest rate of 11.05 percent .Thus the project is beneficial, hence it is acceptable
  12. 12. Slide 12 THANK YOU

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